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AN ORGANISATION STUDY OF

HEDGE EQUITIES LIMITED, COCHIN

Report Submitted in Partial Fulfillment of Requirement for

the Two year Full Time

Master of Business Administration

Program of M.G. University, Kottayam

By

AJU K RAJU

REG NO: 32722

Guided by

Dr. SONEY JOHN

MARIAN INTERNATIONAL INSTITUTE OF MANAGEMENT

KUTTIKANAM, IDUKKI

MBA (2011-2013)

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MARIAN INTERNATIONAL INSTITUTE OF MANAGEMENT

KUTTIKKANAM PO, PEERMADE-685531, KERALA

CERTIFICATE

This is to certify that the Organization Study Report entitled “AN

ORGANISATION STUDY OF HEDGE EQUITIES LIMITED, COCHIN.”

Submitted to M.G. University in partial fulfillment of the requirements for the

award of the MBA degree is a record of original work done by Mr. Aju K Raju

during the year 2012 under my supervision and guidance

Signature of the Signature of the

Director Faculty Guide (Dr. SONEY JOHN)

Date …………….

Viva – Voce Examination held on ……………………………….

Signature of the

Internal Examiner

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DECLARATION

I, AJU K RAJU MBA student , Marian International Institute of

Management, Kuttikkanam, do hereby declare that this report entitled

“AN ORGANISATION STUDY OF HEDGE EQUITIES

LIMITED,COCHIN ”, submitted in partial fulfillment for the degree of

Master of Business Administration, is a record of bonafide work done

by me under the guidance of Dr. SONY JOHN, Professor, MIIM,

Kuttikkanam. I further declare that this report has not previously

formed the basis for the award of any titles of recognition.

Kuttikkanam AJU K RAJU

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ACKNOWLEDGEMENT

The success of a project depends upon framework and cooperation

of various people involved either directly or indirectly. I take this

opportunity to express my gratitude to all those who helped in this

project.

First and foremost I thank God the almighty for his blessing for the

successful completion of this work. I take this opportunity to

acknowledge my indebtedness to all persons who have me in completing

my work.

I would like to convey my sincere gratitude, and thanks Mr. Alex

Babu (MD) of hedge equities, for allowing me to undertake this study at

hedge equities and also like to thank to Mr.Benil Dani Alexander, Sr

.executive advisory help desk, hedge school of applied economics Cochin

for his support and valuable suggestion. I extend my sincere thank to all

staffs hedge equities ltd who helped me in this work.

I also thank all other staff of Hedge school of applied economics,

Kochi for their guidanance in conducting the study.

It is my privileges to express my sincere thanks to Dr. Soney john

associate professor of Marian international institution of management,

Kuttikkanam for his support and necessary guidance throughout my

endeavor.

Finally I wish to thank my family and friends and express my

sincere gratitude to them for their support; guidance, protection and

blessing those were showered upon me throughout the endeavor.

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INDEX

SL NO CONTENTS PAGE NO

1 INTRODUCTION 1

2 SCOPE OF THE STUDY 2

3 OBJECTIVE OF THE STUDY 2

4 METHODOLOGY 2

5 INDUSTRY PROFILE 3

6 ORGANISATIONAL PROFILE 20

7 ORGANISATIONAL STRUCTURE 37

8 DEPARTMENTS AND THEIR FUNCTIONS 40

9 SWOT ANALYSIS 47

10 FINDINGS 48

11 SUGGESTIONS 49

12 CONCLUSIONS 50

13 BIBLIOGRAPHY 51

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LIST OF CHARTS

SLNO CONTENTS PAGE NO

1 ORGANIZATIONAL STRUCTURE 38

2 UNDER THE GM 38

3 REGIONAL ORGANIZATIONAL STRUCTURE 39

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INTRODUCTION

In this economic era for tightening business, nuts and bolt of any company. Industries,

or enterprise, it is necessary to measure its market position in certain time interval with the ever

changing theories and concepts of market for this assessment and technical analysis is needed.

Although analysis dose not reveal the absolute solution of any objective, it provides the guide

towards a good output.

This study will give students a different experience where in they learn the practical side

of the business since the real life situations are in front of them and can be related to concepts,

principles, theories which were taken in classes. This would help the future managers to face the

upcoming challenges in the business life.

Hedge equities is one of the leading financial service company in India, specialized in

offering a wide range of financial product, tailor made to suit individual need, as a first step to

make their presence, Global Hedge equities is Kerala’s second largest financial institution .This

study help in creating managers who are equipped with the experience of linking the theoretical

input with those of practical exposure and come out with creative solutions/ideas in enhancing

the business.

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SCOPE OF THE STUDY

To know the working and procedural steps in the organization

Useful for the academic purpose and further reference

To know the functioning of the financial services industry in India

OBJECTIVES OF THE STUDY

To study the organizational structure of Hedge equities (P) Ltd

To study about various departments and their functions

To study about the day to day activities in the Hedge equities

METHODOLOGY

The data are collected from two sources namely primary and secondary sources.

Primary data

The primary data collected by providing questionnaires to the main department.

Personal interview also conducted in the organization to collect the required data

Secondary data

Magazines, company web site

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INDUSTRY PROFILE

A financial market is a market in which people and entities can trade financial

securities, commodities, and other fungible items of value at low transaction costs and at prices

that reflect supply and demand. Securities include stocks and bonds, and commodities include

precious metals or agricultural goods.

There are both general markets (where many commodities are traded) and

specialized markets (where only one commodity is traded). Financial markets facilitate:

The raising of capital (in the capital markets)

The transfer of risk (in the derivatives markets)

Price discovery

Global transactions with integration of financial markets

The transfer of liquidity (in the money markets)

International trade (in the currency markets

Capital market

Capital market consists of primary market and secondary market. In primary market

newly issued stocks are exchanged and in secondary market buying and selling of already

existing bonds and stocks takes place. So, the capital market can be divided into bond market and

stock market. Bond market provides financing by bond issuance and bond trading. Stock market

provides financing by shares or stock issuance and by share trading. As a whole, capital market

facilitates rising of capital.

Money market

Money market facilitates short term debt financing and capital. The money market is a

subsection of the fixed income market. Money market securities are essentially IOUs issued by

governments, financial institutions and large corporations. These instruments are very liquid and

considered extraordinarily safe. Because they are extremely conservative, money market

securities offer significantly lower returns than most other securities.

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One of the main differences between the money market and the stock market is that most

money market securities trade in very high denominations. This limits access for the individual

investor. Furthermore, the money market is a dealer market, which means that firms buy and sell

securities in their own accounts, at their own risk. Compare this to the stock market where a

broker receives commission to acts as an agent, while the investor takes the risk of holding the stock. Another characteristic of a dealer market is the lack of a central trading floor or exchange.

Deals are transacted over the phone or through electronic systems.

Derivatives market

Derivatives market provides instruments which help in controlling financial risk. The

derivative itself is merely a contract between two or more parties. Its value is determined by

fluctuations in the underlying asset. The most common underlying assets include stocks, bonds,

commodities, currencies, interest rates and market indexes. Most derivatives are characterized by

high leverage.

The first leap towards an organized derivatives market came in 1848, when the Chicago

Board of trade, the largest derivative exchange in the world, was established.

Derivatives markets broadly can be classified into two categories, those that are traded on

the exchange and the traded one to one or 'over the counter'. They are hence known as:

Exchange Traded Derivatives

OTC Derivatives (Over The Counter)

OTC Equity Derivatives

The term "Derivative" indicates that it has no independent value, i.e. its value is entirely

"derived" from the value of the underlying asset.

The underlying asset can be securities, commodities, bullion, currency, live stock or

anything else. In other words, Derivative means a forward, future, option or any other hybrid

contract of pre determined fixed duration, linked for the purpose of contract fulfillment to the

value of a specified real or financial asset or to an index of securities.

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Foreign exchange market

Foreign exchange market facilitates the foreign exchange trading. The foreign exchange

market (forex, FX, or currency market) is a form of exchange for the global decentralized trading

of international currencies. Financial centers around the world function as anchors of trading

between a wide range of different types of buyers and sellers around the clock, with the

exception of weekends

In a typical foreign exchange transaction, a party purchases a quantity of one currency by

paying a quantity of another currency. The modern foreign exchange market began forming

during the 1970s after three decades of government restrictions on foreign exchange transactions

(the Breton Woods system of monetary management established the rules for commercial and

financial relations among the world's major industrial states after World War II), when countries

gradually switched to floating exchange rates from the previous exchange rate regime, which

remained fixed as per the Breton Woods system.

Insurance market

Insurance market helps in relocation of various risk. Insurance is a form of risk

management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is

defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for

payment. An insurer is a company selling the insurance; the insured, or policyholder, is the

person or entity buying the insurance policy. The amount to be charged for a certain amount of

insurance coverage is called the premium. Risk management, the practice of appraising and

controlling risk, has evolved as a discrete field of study and practice.

The transaction involves the insured assuming a guaranteed and known relatively small

loss in the form of payment to the insurer in exchange for the insurer's promise to compensate

(indemnify) the insured in the case of a financial (personal) loss. The insured receives a contract,

called the insurance policy, which details the conditions and circumstances under which the

insured will be financially compensated.

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Commodity market

Commodity market organizes trading of commodities. Commodity markets are markets

where raw or primary products are exchanged. These raw commodities are traded on

regulated commodities exchanges, in which they are bought and sold in standardized contracts.

The trading of commodities consists of direct physical trading and derivatives trading.

Exchange traded commodities have seen an upturn in the volume of trading since the start of the

decade. This was largely a result of the growing attraction of commodities as an asset class and a

proliferation of investment options which has made it easier to access this market.

Commodity trading

Spot trading is any transaction where delivery either takes place immediately, or with a

minimum lag between the trade and delivery due to technical constraints. Spot trading normally

involves visual inspection of the commodity or a sample of the commodity, and is carried out in

markets such as wholesale markets. Commodity markets, on the other hand, require the existence

of agreed standards so that trades can be made without visual inspection.

Forward market

A forward contract is an agreement between two parties to exchange at some fixed future

date a given quantity of a commodity for a price defined today. The fixed price today is known

as the forward price. Early on these forward contracts were used as a way of getting products

from producer to the consumer. These typically were only for food and agricultural products

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Futures contracts

Futures contract has the same general features as a forward contract but is standardized

and transacted through a futures exchange. Although more complex today, early forward

contracts for example, were used for rice in seventeenth century Japan. Modern forward, or

futures agreements began in Chicago in the 1840s, with the appearance of the railroads. Chicago,

being centrally located, emerged as the hub between Midwestern farmers and producers and the

east coast consumer population centers.

Hedging

Hedging, a common practice of farming cooperatives, insures against a poor harvest by

purchasing futures contracts in the same commodity. If the cooperative has significantly less of

its product to sell due to weather or insects, it makes up for that loss with a profit on the markets,

since the overall supply of the crop is short everywhere that suffered the same conditions.

Delivery and condition guarantees

In addition, delivery day, method of settlement and delivery point must all be specified.

Typically, trading must end two (or more) business days prior to the delivery day, so that the

routing of the shipment can be finalized via ship or rail, and payment can be settled when the

contract arrives at any delivery point.

Stock exchange market

A stock exchange is a form of exchange which provides services for stock

brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide

facilities for issue and redemption of securities and other financial instruments, and capital

events including the payment of income and dividends. Securities traded on a stock exchange

include shares issued by companies, unit trusts, derivatives, pooled investment products

and bonds.

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History of stock market

It has been suggested by Braudal about the History of Stock Market that during the 11th

century in Cairo, the Jewish and Muslim merchants already had the notion of trade association

and had setup all the methods of credit as well as payments. This claim though destroys the calls

that the History of Stock Market originates with Italy. If we fall back upon the 12th century

France it can be seen that the courtier change was worried about handling and regulating the

debts on the bank’s behalf of the agricultural professions. As these men use to deal with debts

they can also be called as originators of brokerage business in the History of Stock Market.

During the end of 13th century traders of Bruges commodity accumulated inside the house of a

native named Van der Beurse. During the early 14th century they came to be known as the

Brugse Beurse. These people institutionalized their gatherings, which were known to be an

informal meeting until then. This concept did spread at a rapid pace around the European nations

and neighboring countries. In the countries like Amsterdam and Ghent its branches known as

Beurzen opened.

During the middle of 13th century the bankers of Venice started trading in government

securities. At this very time the government of Venice outlawed airing bruits which were

intentionally used to lessen the price of governmental funds. The bankers from Florence, Verona,

Genova during the 14th century also started trading with government securities. It were the

Dutch’s in the History of Stock Market who inaugurated the concept of joint stock exchanges

which led the people to buy shares and become share holders and invest money in various

businesses and get their part of profit and loss. The Dutch East India Company in the year 1602

brought out first shares on the Stock Exchange of Amsterdam and it was also the first Stock

Exchange to bring out bonds and shares in the history of Stock Market. The Stock Exchange of

Amsterdam is also known to be the first stock exchange in the History of Stock Market to

inaugurate continuous trade during the early part of 17th century. There are Stock Markets in

virtually every part of the world at this moment. Some of the important stock markets are located

in United States, United Kingdom, India, China etc.

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Major stock exchanges in various countries over the world are as follows:

o American Stock Exchange

o Australian Stock Exchange

o Colombo Stock Exchange

o Chicago Stock Exchange

o Dhaka Stock Exchange

o Hong Kong Stock Exchange

o Jakarta Stock Exchange

o Jamaica Stock Exchange

o Kuwait Stock Exchange

o London Stock Exchange

o Nigerian Stock Exchange

o New York Stock Exchange

o Philippines Stock Exchange

o Singapore Stock Exchange

o Bombay stock Exchange

o The National Stock Exchange of

India

o Toronto Stock Exchange

Indian Stock Exchanges – An Umbrella Growth

“Stock Exchange means anybody of individuals whether incorporated or not,

consolidated for the purpose of assisting, regulating and controlling the business of buying,

selling and dealing in securities. It is a market where stocks, shares and other securities are

bought and sold and also to provide avenue for disposal of securities when the owners feel like.

It is an essential component of the economy and indispensable for the proper functioning of

corporate enterprises.

In general, the financial market is divided into two parts, Money Market and Capital

Market. Securities market is an important, organized capital market where transaction of capital

is facilitated by means of direct financing using securities as a commodity. Securities market can

be divided into primary market and secondary market.

The working of stock exchanges in India started in 1875. BSE is the oldest stock market in

India. The history of Indian stock trading starts with 318 persons taking membership in Native Share and Stock Brokers Association, which we now know by the name Bombay Stock

Exchange or BSE in short. In 1965, BSE got permanent recognition from the Government of

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India. National Stock Exchange comes second to BSE in terms of popularity. BSE and NSE

represent themselves as synonyms of Indian Stock Market. The history of Indian Stock Market is

almost the same as the history of BSE.

The 30 stock sensitive index or Sensex was first compiled in 1986. The Sensex is compiled

based on the performance of the stocks of 30 financially sound benchmark companies. In 1990

the BSE crossed the 1000 mark for the first time. It crossed 2000, 3000 and 4000 figures in 1992.

The up-boat mood of the market was suddenly lost with Harshad Mehta scam. It came to

public knowledge that Mr. Mehta, also known as the big bull of Indian stock market diverted

huge funds from banks through fraudulent means. He played with 270 million shares of about 90

companies. Millions of small scale investors became victims to the fraud as the Sensex fell flat

shedding 570 points.

To prevent such fraud the Government formed The Securities and Exchange Board of

India, through an act in 1992. SEBI is the statutory body that controls and regulates the

functioning of stock exchanges, brokers, sub-brokers, portfolio managers, investment advisors

etc. SEBI oblige several rigid measures to protect the interest of investors. Now with the

inception of online trading and daily settlements the chances for a fraud is nil, says top officials

of SEBI.

Sensex crossed the 5000 mark in 1999 and the 6000 mark in 2000. The 7000 mark was

crossed in June and the 8000 mark in September 8 in 2005. Many Foreign Institutional Investors

(FII) are investing in Indian stock markets on a very large scale. The liberal economic policies

pursued by successive Governments attracted Foreign Institutional Investors to a large scale.

Experts now believe that the Sensex can soar past 20000 marks very soon.

The unpredictable behavior of the market gave it a tag – ‘a volatile market’. The factors

that affected the market in the past were good monsoon, Bharatiya Janatha Party’s rise to power

etc. The result of a cricket match between India and Pakistan also affected the movements in

Indian stock markets. The National Democratic Alliance led by BJP, during 2004 public elections unsuccessfully tried to ride on the market sentiments to power. NDA was voted out of

power and the Sensex recorded the biggest fall in a day amidst fears that the Congress-

Communist coalition would stall economic reforms. Later Prime Minister Man Mohan Singh’s

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assurance of reforms with a human face cast off the fears and market reacted sharply to touch the

mark of 8500.

India, after United States hosts the largest number of listed companies. Global investors

now ardently seek India as their preferred location for investment. Once viewed with scepticism,

stock market now appeals to middle class Indians also. Many Indian working in foreign countries

now divert their savings to stocks. This recent phenomenon is the result of opening up of online

trading and diminished interest rates from banks. The stock brokers based in India are opening

offices in different countries mainly to cater the needs of Non Resident Indians. The time factor

also works for the NRIs. They can buy or sell stocks online after returning from their work

places.

The bullish run of the stock market can be associated with a steady growth of around 6% in

GDP, the growth of Indian companies to MNCs, large potential of growth in the fields of

telecommunication, mass media, education, tourism and IT sectors backed by economic reforms

ensure that Indian stock market continues its bull run.

Primary Market

The primary market is that part of the capital market that deals with the issue of new

securities. Companies, governments or public sector institutions can obtain funding through the

sale of a new stock or bond issue. This is typically done through a syndicate of securities dealers.

The process of selling new issue to investors is called underwriting. In the case of a new stock

issue, this sale is an Initial Public offering (IPO). Dealers earn a commission that is built into the

price of the security offering, though it can be found in the prospectus. Primary market creates

long term instruments through which corporate entities borrow from capital market.

Features of primary market:

This is the market for new long term equity capital. This primary market is the market

where the securities are sold for the first time. Therefore it is also called the new issue

market (NIM)

In a primary issue, the securities are issued by the company directly to investors.

The company receives the money and issue new security certificates to investors.

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Primary issue is used by companies for the purpose of setting up new business or for

expanding or modernizing the existing business.

The primary market performs the crucial function of facilitating capital formation in the

economy.

The new issue market does not include certain other sources of new long term external

finance, such as loan from financial institutions. Borrowers in the new issue market may

be raising capital for converting private capital into public capital; this is known as “gong

public”.

The financial assets sold can only be redeemed by the original holder.

Methods of issuing securities in the primary market are:

Initial public offering

Right issue ( for existing companies)

Preferential Issue

Secondary Market

The secondary market is an ongoing market, which is equipped and organized with a

place, facilities and other resources required for trading securities after their initial offering. It

refers to a specific place where securities transaction among many and unspecified persons is

carried out through intermediation of the securities firms, i.e. a licensed broker, the exchanges, a

specified traditional organization in accordance with the rules and regulations established by the

exchanges.

With regard to the history of stock exchanges, they say it was under a tree when it was

started back in the year 1875. Bombay Stock Exchange (BSE) was the major exchanges in India

till 1994. National Stock Exchange (NSE) started operations in 1994. NSE was floated by major

banks and financial institutions. It same as a result of Harshad Mehta scam of 1992. Contrary to

popular belief the scam was more of a banking scam than a stock market scam.

The old methods of trading in BSE were people assembling on what was called a ring in the

BSE building. They had a unique language to communicate apart from all the shouting. Investors

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were not allowed access and the system was opaque and misused by brokers. The shares were in

physical form and prone to duplication and fraud.

NSE was the first stock exchange to introduce screen based trading. BSE was forced to

follow suit. The present day trading platform is transparent and gives investors prices on a real

time basis. With the introduction of depository and mandatory dematerialization of shares

chances of fraud reduced further. The trading screen gives top 3 buy and sell quotes on every

scrip. A typical trading day starts at 10 and ends at 3:30 during week days. BSE has 30 stocks

which makes the Sensex. NSE has 50 stocks in its index called Nifty. FIIs, banks, financial

institutions and mutual funds are biggest players in the market. Then there are the retail investors

and speculators. The last ones are the ones who follow the market from morning till evening.

Market can be very addictive like blogging through stakes are higher in the former.

Origin of Indian Stock Market

The origin of stock market in India goes back to the eighteenth century when long term

negotiable securities were first issued. However for all practical purposes, the real beginning

occurred in the middle of nineteenth century after the enactment of the Companies Act in 1850,

which introduced the features of limited liability and generated investor interest in corporate

securities.

An important early event in the development of stock markets in India was the formation of

the Native Share and Stock Brokers Association at Bombay in 1875, the precursor of the present

day Bombay Stock Exchange. This was followed by the formation of associations/exchanges in

Ahmedabad (1894), Calcutta (1908) and Madras (1937). In addition, a large number of

ephemeral exchanges merged mainly in buoyant periods to recede into oblivion during

depressing times subsequently.

Stock exchanges are intricacy inter-woven in the fabric of a nation’s economic life.

Without a stock exchange, the saving of the community – the sinews of economic progress and

productive efficiency would remain underutilized. The task of mobilization and allocation of

savings could be attempted in the old days by a much less specialized institution than the stock

exchanges. But as business and industry expanded and the economy assumed more complex

nature, the need for permanent finance arose. Entrepreneurs needed money for long term

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whereas investors demanded liquidity – the facility to convert their investment into cash at any

given time. The answer was a ready market for investments and this was how the stock

exchanges came into being.

Stock exchange means anybody of individuals, whether incorporated or not, constituted for

the purpose of regulating or controlling the business of buying, selling or dealing in securities.

These securities include:

a. Shares, scrip, stocks, bonds, debentures stock or other marketable securities of a like

nature in or of any incorporated company or other body corporate;

b. Government securities; and

c. Rights or interest in securities

The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) are the two

primary exchanges in India. In addition there are 22 Regional Stock Exchanges. However the

BSE and NSE have established themselves as the two leading exchanges and account for about

80 percent of the equity volume traded in India. The NSE and BSE are equal in size in terms of

daily traded volume. The average daily turnover at the exchanges has increased form Rs. 851

crore in 1997-98 and further to Rs. 2273 crore in 1990-2000 (April – August 1999). NSE has

around 1500 shares listed with a total market capitalization of around Rs. 9, 21,500 crore.

The BSE has over 6000 stock listed and has a market capitalization of around Rs. 9, 68,000

crore. Most key stocks are traded on both the stock exchanges and hence the investor could buy

them on either exchange. Both exchanges have a different settlement cycle, which allows

investors to shift their positions on the bourses. The primary index of BSE is BSE Sensex

comprising 30 stocks. NSE has the S&P NSE 50 index (Nifty) which consists of fifty stocks. The

BSE Sensex is the older and more widely followed index.

Both these indices are calculated on the basis of market capitalization and contain the

heavily traded shares from key sectors. The markets are closed on Saturdays and Sundays. Both

the exchanges have switched over from the open outcry trading system to a fully automated

computerized mode of trading known as BOLT (BSE Online Trading) and NEAT ( National

Exchange Automated Trading) system.

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It facilitates more efficient processing, automatic order matching, faster execution of trades

and transparency; the scrip’s traded on BSE have been classified into ‘A’, ‘B1’, ‘B2’, ‘C’, ‘F’

and ‘Z’ groups. The ‘A’ share represents those, which are in the carried forward system (Badla).

The ‘F’ group represents the debt market (fixed income securities) segment. The ‘Z’ group scrips

are the blacklisted companies. The ‘C’ group covers the odd lot securities in ‘A’, ‘B1’ & ‘B2’

groups and rights renunciations. The key regulator governing Stock Exchanges, Brokers,

Depository participants, Mutual Funds, FIIs and other participants in Indian secondary and

primary market is the Securities and Exchange Board of India (SEBI) Ltd.

Brief History of Stock Exchanges

The world’s foremost marketplace, New York Stock Exchange (NYSE), started its trading

under a tree ( now known as 68 Wall Street) over 200 years ago. Similarly, India’s premier stock

exchange Bombay stock Exchange (BSE) can also trace back its origin to as far as 125 years

when it started as a voluntary non-profit making association.

News on the stock market appears in different media every day. We hear about it every time it

reaches a new high or new low, and we also hear about it daily in statements like ‘The BSE

sensitive Index rose 5% today’. Obviously, stocks and stock markets are important. Stocks of

public limited companies are bought and sold at a stock exchange. But what really are stock

exchanges? Known also as the stock market or bourse, a stock exchange is an organized market

place for securities (like stock, bonds, options) featured by the centralization of supply and

demand for the transaction of orders by member brokers, for institutional and individual

investors.

The exchange makes buying and selling easy. For example, we do not have to really go to an

exchange, say, BSE – we can contact a broker, who does business with the BSE, and he or she

will buy or sell his stock on our behalf.

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Trading Pattern of the Indian Stock Market

Trading in Indian Stock Exchange is limited is limited to listed securities of public limited

companies. They are basically developed into two categories namely, specified securities

(forward list) and non specified securities (cash list). Equity shares of dividend paying, growth

oriented companies with a paid up capital of at least Rs. 50 million and market capitalization of

at least Rs. 100 million and having more than 20,000 shares are normally put in the specified

group and balance in non-specified group.

Two types of transactions can be carried out on the Indian Stock Exchanges

Spot delivery Transaction

For delivery and payment within the time or on the date stipulated when entering into the

contract which shall not be more than 14 days following the date of the contract.

Forward Transaction

Delivery and payment can be extended further by a period of 14 days each so that the overall

period does not exceed 90 days from the contract. The latter is permitted only in the case of

specified shares.

Stock Exchanges in India

National Stock Exchange (NSE)

National Stock Exchange (NSE) of India commenced its operation in the Indian Capital

Market on 3rd November 1994 in Mumbai. The recommendations of Pherwani committee led to

the beginning of NSE.

Players in NSE

Trading members

Participants

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The recognized members of NSE are called trading members who trade on behalf of themselves

and their clients. Participants include trading member and large players like bank who take direct

settlement responsibility.

Promoters of NSE

IDBI, ICICI, LIC, GIC, SBI, Canara Bank, Corporation Bank, Indian Bank, Orient Bank of

Commerce, Union Bank of India, Punjab National Bank, Infrastructure leasing and financial

services and SBI.

Trading system of NSE

The software used in the NSE trading system is known as National Exchange for Advanced

Trading. The trade takes place through computers. The trading member’s computer is connected

with the central computers at the NSE through leased lines and VSAT. The price at which the

buyer and the seller are willing to transact will appear on the screen. When the price match the

transaction will be completed and a confirmation slip will be printed at the office of the trading

member.

OTC Exchange of India (OTCEI)

The OTC e of India (OTCEI) has been setup to provide a cost effective and convenient plat

forms for raising finance from the capital market. OTCEI was promoted by a consortium of

financial institutions sated its operations in 1992. It is a ring less, electronic, nation wider stock

exchange committed to providing entrepreneurs with a smooth economical vehicle for going

public and investors with a fair, sable and efficient market. Thus the OTCEI brings investors and

promoters closer together.

Bombay Stock exchange (BSE)

The stock exchange, Mumbai is popularly known as ‘BSE’. It is oldest one in 1875 as “The

Native Share and sock Brokers Associations of People (AOP) and is engaged in the process of

converting itself into demutualised and corporate entity. It has evolved over the years into its

present status as the premier Stock Exchange in the country to have obtained.

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Permanent recognition in 1956 from the Govt. of India under the securities contracts

(Regulation) Act, 1956.

Market Size and Characteristics:

The Indian retail brokerage is showing phenomenal growth. The total trading volume of

brokerage companies has increased fromUS$1239.1 billion in 2004 to US$1492.1 billion in

2005, and is expected to reach US$6535.7 billion by 2015. Some of the main characteristics of

the brokerage industry include growth in e-broking; growing derivatives market, decline in

brokerage fees etc.

Today, as per NSDL statistics, we have only 2.4million investors with demat account in

the country. Considering various investor combinations that are holding accounts, we can

presume the country has roughly 5-7.5 lakh active investors now. This figure is unbelievably

small compared to the potential number of investors, which is anything between 200 million and

250 million. When we take into consideration the way transaction risk and cost in the Indian

capital market is coming down, there will be a massive surge in the number of investors and also

in volumes. The only way to manage this kind of potential growth is to adopt state-of-the-art

trading techniques.

The growth of the Internet-based trading as a mass trading technique in the country is

unstoppable, going by the indicators available and the signals for the future. When it ultimately

gathers momentum, the biggest beneficiary will be the investor, who will be able to trade with

greater speed and transparency, and at lower costs.

Major players in Indian share broking industry are follows

ICIC Securities Ltd.

Kotak Securities Ltd

Indiabulls Financial Services Limited

India Infoline

IL&FS investmart Limited

25

SSKLI Ltd. Motilal Oswal securities

Fortis Securities

Karya securities

Geojit BNP Paribas

HDFC Securities

Hedge equities

JRG Securities

India Infoline

26

ORGANIZATIONAL PROFILE

27

HEDGE EQUITIES (P) LTD

Hedge equities is one of the leading financial services company in India ,established in

2008 and officially inaugurated in may 2008.they are specialized in offering a wide range of

financial products, tailor made to suit individual need. As a first step hedge equities made their

presence global the company had initiated their operations in middle –east to cater to the vast

Nonresident Indian (NRI) population in that region. Ever since their inception, they have

spanned their presence all over India through their meticulous research, high brand awareness,

intellectual management and extensive industry knowledge .hedge equities believe in creating a

new breed of investors who take judicious decisions through them. Team Hedge is a balanced

mix of more than 15 years of experience cutting across various industries with a strong

background in financial markets.

Mission

To create an ethical and sustainable financial services platform for our customers and

partner them to build business, to provide employees with meaningful work, self-development

and progression, and to achieve a consistent and competitive growth in profit and earnings for

our shareholders and staff.

Vision

Hedge equities have been a household name among the masses owing our success to

timely Professional financial assistance to our clients. This aptly articulates our vision of

‘Evolving into a financial supermarket which will be a one stop shop for all financial solutions’.

Social Corporate Responsibility

Being a responsible corporate citizen, Hedge equities has initiated a non-profit movement,

“Hedge Yuva”, which focuses on educating the masses about Stock Market. The movement has

also formulated various scholarship programs for young and dynamic youth.

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Promise

To our Customers: We exist to serve and meet your needs. Our focus is to create an

ethical and sustainable financial services platform that places your unique needs over

and above everything else.

To our Employees: We will provide our employees with a meaningful and rewarding

career with emphasis on self development and career progression.

To our Shareholders: We will spare no efforts to achieve a consistent and competitive

growth in earnings and profitability.

Hedge Advantage

At Hedge Equities, the needs of Customers stand before everything else.

SEBI Registered Portfolio Manager with a dedicated Wealth Management Services desk

that aims to provide objective guidance tailored to meet each customer’s individual

needs.

Strong Research Team backed with best of breed data mining and analysis.

Industry leading technology solutions that make portfolio administration simpler and cost

effective.

A Global Outlook blended with a Local Flavor and backed with a growing network of

over 120 service outlets.450 qualified employees, and over 200 support associates.

The Trust and Goodwill of over 20,000 satisfied customers.

Member of BSE, NSE, MCX, MCXSX,NMC, and Depository Participant in CDSL

Rated as the top brand by the investor community of Asianet channel

Growing overseas presence with operations in Middle East and an expanding presence in

the European region and North America.

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About Hedge Equities

Hedge equities is one of the leading Financial services company in India, specialized in

offering a wide range of financial products, tailor made to suit individual needs. As a first step to

make their presence Global, Hedge equities have initiated operations in Middle East to cater to

the vast Non Resident Indian (NRI) population in that region. Ever since their inception, they

have spanned their presence all over India through their Meticulous Research, High Brand

awareness, Intellectual Management and Extensive Industry knowledge. Hedge believe in

creating a new breed of investors who take judicious decisions through them.

Team Hedge is a balanced mix of more than 15 years experience cutting across various

industries with a strong background in the financial markets. The board comprises of six power

houses in their respective fields- FedEx Securities, Baby Marine Exports, Thakker Developers,

Smart financial, SM Hedge (CFO, Videocon Industries) and Padmashree Mohan Lal.

Fedex securities Managed by a team of ex-bankers, Fedex is a SEBI registered category 1 merchant

banker. The company concentrates on non-fund based activities like structuring, tie up of project

financing, financial restructuring investment banking, corporate and advisory services. The core

management team consists of bankers with rich experience of decades and exposure to volatile

situations in commercial and investment banking. With offices at Nariman point and Vile Parle

east, Mumbai, state of the art infrastructure and qualified manpower to conduct the business,

Fedex securities envisages a phenomenal growth in this sector for its clients.

Baby Marine Exports Baby Marine Group, started its operation in 1977 from Kozhikode and through

innovations and hard work has grown into three unit and related industries spanning both the

west and east coast of Indian.

Baby Marine Exports, B.M Products and Baby Marine(Eastern ) Exports are efficiently aided by

preprocessing units, ice factories and a fleet of insulated and refrigerated trucks for sea food

transportation. Due to constant upgrading of machinery, state-of-the-art infrastructural facilities,

better links with raw materials suppliers, and an established network of purchasers have

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obviously made Baby Marine Group a leading exporter of processed marine products to various

international markets.

Smart financial Smart financial entered the financial market only in 1992 but over this brief span has

covered a niche for itself by becoming the leading financial provider. The company offer

guidance to investors as equities, commodities, mutual fund’s portfolio management services and

insurance. It offers complete range of financial solutions that encompasses every sphere of life

Thakker group Starting off as a land developer and builder in 1962, Thakker groups diversified into

commercial production of agricultural and horticultural products, housing real estate marketing

plantation etc. They have provided shelter to more than 40000 families by offering residential

plots and premises .Thakker developers is the flagship company of the group. It was established

as private limited in 1987 and later went on to become the only public limited company in North

Maharashtra engaged in housing ,commercial construction and land development. The company

is also a Class1 contractor registered with the Public Work Department, Govt. of Maharashtra.

SM Hedge Mr. S.M Hedge, a chartered accountant by profession is the Chief Finance Officer of the

Indian Multinational Videocon International and has been at the helm of affairs for the last 20

year.

Padmashree Bharat Mohanlal Mohanlal, the south Indian movie superstar has become a legend, a brand and cultural

ambassador owing to various factors. Versatility and natural flair for donning complex characters

have won him numerous accolades not to speak of some unforgettable films contributed by him.

A multifaceted personality, he has some business ventures also which include Vismaya MaxFilm

Post Production Studio, College for Dubbing Artists at the Kinfra film and Video Park

Thiruvananthapuram. He is the also the director of Uni Royal Marine Exports; a Kozhikode

based major Seafood Export Company. Intellectual and knowledge arbitrage is the mantra of

modern day business. The same holds true for the financial markets. With the breadth and depth

of knowledge of modern day business that the Board of Hedge brings to the table, you can be

rest assured that some of the best minds in the business are taking care of your investments.

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Management

Alex. K. Babu, Managing Director

Alex Babu is the Founder and Managing Director of Hedge Equities. He has over 9 years

of experience in equity research and fund management with considerable experience across all

market capitalizations. He is a specialist in mid-cap and infra stock selection. Ever since joining

the Hedge Family, he has been designing, developing and implementing the strategic plan for the

company in the most cost effective and time efficient manner. He was also instrumental in

establishing and assembling a strong research team with equal emphasis on macroeconomic,

industrial, and company level research. Prior to joining Hedge Equities, Alex was at the helm of

Baby Marine Exports, a leading Seafood exports firm handling all aspects of finance and

marketing. Alex Babu is a graduate in Engineering from Cochin University of Science and

Technology.

N. Bhuvanendran, Chief Executive Officer

Professionalism augmented by profound vision” is a perfect phrase to describe

Bhuvanendran. His rich experience spanning 20 years with the leading names in the Indian

financial services industry, is often camouflaged by his youthful appearance, till

Mr.Bhuvanendran opens up his favorite subject-Money matters. Bhuvanendran is a talented and

introspective writer whose creativity has been capitalized by various financial journals. He is

also in the limelight for a market related show which aims at quenching the financial queries of

professionals and investors in a leading Malayalam television channel. He is one of the few

investments professional who have experience across both listed and unlisted equity space. He is

an epitome of the fact that honesty, transparency and moral integrity are not at variance with

Business acumen.

Bobby J Arakunnel, Chief Operating Officer

Mr. Bobby has been responsible for the entire operations of Hedge Equities ever since its

inception. He has proved his versatility by showcasing excellent Man-Management and

Marketing Activities and is well versed in all aspects of Indian Financial Markets. In the last 12

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years, he has worked with all the major players in the financial service sector of the country

which has added oodles to his workmanship.

Mr. Mohanlal – Director

This Honorary Lieutenant Colonel's brand image and brimming popularity has helped

Hedge Equities to create awareness amongst small investors in retail segment to invest in stocks.

Versatility and a natural flair for donning complex characters have won him numerous accolades

not to speak of some unforgettable films contributed by him. A Multifaceted personality, whose

inspiring attitude, has helped him to take up Business world with a storm.

Dr.Samuel George

He is a doctor and an entrepreneur and runs the successful and well reputed "City Clinic" in

Abudhabi since the 1970's. Having completed his Bachelors in Medicine from the Calcultta

Medical College, Dr. George commenced his career in government service and then

subsequently moved to Abu Dhabi in the 1970s. Today, their clinic offers specialized services in

General Medicine and Pediatrics. Dr.George also nurtures a dream and a vision to make quality

healthcare affordable and accessible to all and to this end, he is pursuing the development of a

multi-specialty hospital at Changanassery in Kerala to serve the growing health care needs of the

state.

Mr. Pradeep Kumar C, Director

Director A leading Textile exporter of Kerala whose 20 years of experience in this field

has made him a veteran we all look up to. His vision, augmented by his hard work and

commitment has helped him to be a strong player in the field of Exporting.

Starting from a root level, he has travelled the hard way to reach this phenomenal position in

Garment Industry which has supplemented him to expand his domain to foreign locations as

well.

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SERVICES PROVIDED BY THE HEDGE EQUITIES

1. Equity Trading

Equity gives you the opportunity to have a partnership with all the leading Business

tycoons around the globe. Total capital contribution for a company comprises of investments

through equity share holdings by small and big investors. The investors who have a stake in a

company are referred to as shareholders.

Power of Equity shareholders lies in the optimum selection of the Industry, have a strong

belief in the Company's fundamentals and also having a confidence in the profit making

capability of the company.

Equity Market, at present, is a rewarding field for the investors and investing in Indian

stocks are profitable for not only the long and medium-term investors, but also the position

traders, short-term swing traders and also very short term intra-day traders. Fundamentally, stock

market is an avenue for business people to meet shareholders. Other than bank loans, they now

have another option to finance their businesses. They did it by offering their company's equities

in exchange of shareholders cash. The company is never required to repay the capital, but the

new shareholders have a right to future profits distributed by the company. For shareholders,

they have alternatives to where they should put their money into. In the same time, they get the

opportunity to participate in capital intensive businesses at an affordable price. Equity is an

investment area which you can capitalize on with proper assistance regardless of the market

circumstances. Hedge Equities opens the door to this highly lucrative investment opportunity

that could provide a feasible solution to all your financial queries.

2. Commodities Trading

Commodity "futures" are contracts to buy or sell certain goods at set prices at a

predetermined time in the future. Futures trading plays a key role in the marketing of a number

of important agricultural and nonagricultural commodities as it provides the industrial and

farming communities with a transparent price discovery platform, which also enables them to

hedge their price risk and price volatility. The growth of Indian commodities futures trading

towards an efficient, transparent and well-organized market has thrown open a window of

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benefits and opportunities to Indian producers and traders. Besides the primary benefits of its

twin economic functions of price discovery and price risk management, commodity futures

trading has also played an instrumental role in integrating various fragmented components of the

commodity ecosystem, thus developing the overall infrastructure of agricultural commodities

marketing in the country.

At present, 24 commodity futures exchanges are operational in India, which include 21regional

bourses and the three national-level players, with another three proposed exchanges on the cards.

With the state-of the-art technology-powered secure and efficient operational infrastructure,

these national exchanges are creating a near-perfect market situation with a much wider

participation from the ecosystem stakeholders in a large number of domestic and global

commodities during local and international timings.

While the trade in non-agricultural commodities, especially bullion and crude, has increased in

the past two financial years, the same in agricultural commodities has declined. The share of

agricultural commodities almost halved during 2008-09, due to the continued ban on several

commodities. The clients can trade in commodity futures like gold, silver, crude oil, rubber etc.

And take advantage of the extended trading hours (10 am to 11pm) in commodities trading.

3. Currency Trading

Investments in Currency Derivatives can help you to diversify your portfolio from

traditional asset classes. Currency derivatives can be described as contracts between the sellers

and buyers, whose values are to be derived from the underlying assets, the currency amounts.

These are basically risk management tools in force and money markets used for hedging risks

and act as insurance against unforeseen and unpredictable currency and interest rate movements.

Any individual or corporate expecting to receive or pay certain amounts in foreign currencies at

future date can use these products to opt for a fixed rate - at which the currencies can be

exchanged now itself. Currency derivative serve the purpose of financial risk management

encompassing various market risks. An upfront premium is payable for buying a derivative.

Currency Futures will bring in more transparency and efficiency in price discovery, eliminate

Counterparty credit risk, provide access to all types of market participants, offer standardized

products and provide transparent trading platform.

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4. Mutual Funds

A Mutual Fund is a trust that pools the savings of a number of investors who share a

common financial goal. The money thus collected is invested by the fund manager in different

types of securities depending upon the objective of the scheme. These could range from shares to

debentures to money market instruments. The income earned through these investments and the

capital appreciations realized by the scheme are shared by its unit holder. Thus a Mutual Fund is

the most suitable investment for the common man as it offers an opportunity to invest in a

diversified, professionally managed portfolio at a relatively low cost. Mutual fund is also called

unit trust or open ended trust a company that invests the funds of its clients in diversified

securities and in turn represent those holdings. They make continuous offering of new shares at

NAV (Net Asset Value) determined daily by the market values of the securities they hold. In

Hedge Equities the clients can select from a wide range of Mutual Funds and Bonds available in

the markets today.

5. Online trading

Hedge Equities has a large network of branches with online terminals of NSE and BSE

in the Capital market and derivative segments. The clients are assured of prompt order execution

through dedicated phones and expert dealers at our offices.

6. Internet trading

Hedge Equities offers Internet trading through this site. You can trade through the

Internet from the comforts of your office or home, anywhere in the world. The dedicated IT

systems ensure service up time and speed, making Internet broking through Hedge Equities

hassle-free. Using the easiest facility provided by NSDL, the clients can transfer the shares sold

by them online without delivery instruction slips. Additionally, digitally signed contract notes

can be sent to clients through E-mail.

7. Depository services

Hedge Equities is a member of the National Securities Depository Limited (NSDL),

offer depository services with minimum Annual Maintenance Charges and transaction charges.

Account holders can view their holding position through the Internet. They also offer the

36

‘easiest’ facility provided by NSDL (electronic access to securities information and execution of

secured transaction) through which clients can give delivery instructions via the Internet.

8. Derivative trading

Hedge offer trading in the futures and options segment of the National Stock Exchange

(NSE).Through the present derivative trading an investor can take a short-term view on the

market for up to a three months perspective by paying a small margin on the futures segment and

a small premium in the options segment. In the case of options, if the trade goes in the opposite

direction the maximum loss will be limited to the premium paid.

9. Knowledge Centre

Knowledge Centre activities are intended to provide systematic and structured services

mainly to new investors and also to young aspirant aiming for a career in financial markets. The

centre has three functional areas: the Publication Division, the Training Centre, and Wealth

Management Advisory Service which provides complete investment solutions to investors

through knowledge based personalized service.

10. Equity Research

Hedge Equities constantly strive to deliver insightful research to enable pro-active

investment decisions. The research department is broadly divided into two divisions-

Fundamental Analysis Group (FAG) and Technical Analysis Group (TAG). The fundamental

analysts are continuously scanning the entire economy for discovering what they call the hidden

gems in stock market terminology and present it to the clients for profitable investments. Timing

the market has always been the most difficult task for all analysts and their Technical Analysis

Group has emerged to predict the market movements well in advance using complex Analytical

methods including Eliot Wave Theory. They are equipped with cutting edge technologies for

technical charting which assist the technical analysts to predict both upside and downside

movements efficiently for the benefit of clients.

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11. Portfolio Management Service

Hedge Equities is a SEBI-approved portfolio manager offering discretionary and non-

discretionary schemes to its clients. Hedge Equities portfolio management team keeps track of

the markets on a daily basis and is exposed to a lot of information and analytic tools which an

investor would not normally have access to. Other technicalities pertaining to shares like

dividends, rights ,bonus ,buy-back, mergers and acquisitions are also taken care of by them.

12.Hedge school of Applied economics

Hedge school of applied economics is a distinguishing school instituted on the sturdy

premises of quality , with a singular objective of creating credentialed professionals for the

financial markets. The focus is on grooming students to have a cutting edge in hare trading

banking, insurance or wealth management by implementing innovative solution .it is also

considered as an ideal branch of hedge equities.

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Branches of Hedge Equities

Hedge equities has 130 branches in India and 1 branch in Dubai, UAE

106 branches in Kerala

6 branches in Karnataka

7 branches in Maharashtra

1 branch in Tamilnadu

Hedge Equities Registered Office is in Nariman Point, Mumbai and corporate office is in

Kaloor, Kochi and their regional offices are in Bangalore, Shimoga, and Hyderabad. There are

117 employees in their Head Office., 8-10 employees in their Regional Offices and 4-5

employees in each branch.

39

Main Competitors

GEOJIT BNP PARIBAS

JRG SECURITIES

RELIGARE

MUTHOOT SECURITIES

SHAREWEALTH

MOTILAL OSWAL

ANANDRATHI

Geojit BNP Paribas

Geojit BNP Paribas today is a leading retail financial services company in India with a

growing presence in the Middle East. The company rides on its rich experience in the capital

market to offer its clients a wide portfolio of savings and investment solutions. The gamut of

value-added products and services offered ranges from equities and derivatives to Mutual Funds,

Life and General Insurance and third party Fixed Deposits. The needs of over 576,000 clients are

met via multichannel services - a countrywide network of over 540 offices, phone service,

dedicated Customer Care centre and the Internet. Geojit BNP Paribas has membership in, and is

listed on, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). In 2007,

global banking major BNP Paribas joined the company’s other major shareholders -

Mr.C.J.George, KSIDC (Kerala State Industrial Development Corporation) and Mr.Rakesh

Jhunjhunwala – when it took a stake to become the single largest shareholder.

At the forefront of the many fruitful associations between Geojit BNP Paribas and BNP Paribas

is their joint venture, namely, BNP Paribas Securities India Private Limited. This JV was created

exclusively for domestic and foreign institutional clients. An industry first was achieved when

Geojit BNP Paribas became the first broker in India to offer full Direct Market Access (DMA)

on NSE to the JV’s institutional clients.

JRG Securities

JRG Securities Ltd. is one of India’s leading financial services providers with strong

presence in South India. It was incorporated in 1994 and over the years it acquired a name of

40

trust through Equity and Commodity Broking businesses. In 2007, Baring India Private Equity

Fund II Ltd., a leading private equity firm of international repute acquired a majority stake in the

Company. With the investment of BIPEF came fresh inflow of talent and a focused team

committed to taking this company to greater heights. Since then JRG has undergone several

transformations - expanding into new geographies, adopting state-of-the-art technology,

strengthening credit and risk management systems, creating new products and strengthening

client relationships through service focus. The company is committed to fully compliant with all

regulatory compliances with the exchanges, SEBI, IRDA, FMC and RBI. JRG is listed on the

Bombay Stock Exchange and has a diverse set of public shareholders.

Religare

Religare is an emerging markets financial services group with a presence across Asia, Africa,

Middle East, Europe, and the Americas. In India, Religare’s largest market, the group offers a

wide array of products and services including broking, insurance, asset management, lending

solutions, investment banking and wealth management. With 10,000-plus employees across

multiple geographies, Religare serves over a million clients, including corporate and institutions,

high net worth families and individuals, and retail investors.

Muthoot Securities

The Muthoot Group has emerged as one of the India's largest financial group of its kind with

business interests in 17 diverse fields, a network of over 2000 branches nationwide and serving

750 million customers across the country. The Muthoot Group with its pan-Indian presence and

varied bouquet of products serves over 50000 customers every day. Following the tradition, this

multi-farious organization with more than 16000 employees representing almost every culture

and state in the country, shall continue to provide supreme quality of service and earn the trust of

millions of people with its constant innovation and dynamism in the times to come. With trust

built over 123 years of unblemished services to the community and with values driving its

business process, the group is now on a critical diversification journey.

41

Share Wealth

Share wealth Securities Ltd is the first corporate member of National Stock Exchange of

India Ltd, Bombay Stock Exchange Ltd and MCX Stock Exchange Ltd(MCX-SX) from

THRISSUR, the Cultural Capital of Kerala. Sharewealth is also a Depository Participant with

CDSL (Central Depository Services (India) Ltd).Sharewealth Securities Ltd has two group

companies, Sharewealth Commodities Pvt Ltd (Member: MCX, NCDEX, NMCE ,ICEX and

NSEL) and Sharewealth Financial Services Ltd (AMFI Registered Mutual Fund Distributor).

Sharewealth has a group (Overseas Joint Venture) company at Abu Dhabi; Sharewealth

Financial Consultancy LLC.Registered and Corporate offices of Sharewealth Group of

companies are at Thrissur.

Motilal Oswal

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 over 1600 member

team. Today they are a well diversified financial services firm offering a range of financial

products and services such as Wealth Management, Broking and Distribution, Commodity

Broking, Portfolio Management Services, Institutional Equities, Private Equity, Investment

Banking Services and Principal Strategies.

Anandrathi

Anand Rathi is a leading full service investment bank founded in 1994 offering a wide range

of financial services and wealth management solutions to institutions, corporations, high–net

worth individuals and families. The firm has rapidly expanded its footprint to over 350 locations

across India with international presence in Hong Kong, Dubai and London. Founded by Mr.

Anand Rathi.

42

Angel Brocking

Angel Booking’s tryst with excellence in customer relations began in 1987. Today, Angel

has emerged as one of the most respected Stock-Broking and Wealth Management Companies in

India. With its unique retail-focused stock trading business model, Angel is committed to

providing ‘Real Value for Money’ to all its clients.

The Angel Group is a member of the Bombay Stock Exchange (BSE), National Stock Exchange

(NSE) and the two leading Commodity Exchanges in the country: NCDEX and MCX. Angel is

also registered as a Depository Participant with CDSL. They mainly deals with Equity trading,

Commodity Trading, Portfolio management services, Mutual Funds, Life Insurance, IPO’s,

Depository Services, Investment Advisory services .

43

ORGANIZATION STRUCTURE

44

ORGANIZATION STRUCTURE

UNDER THE GM

CORE MANAGEMENT

CEO

ONLINE

STATE HEADSALES

MARKETING

BUSINESSDEVELOMENT

MD

HEDGE SCHOOL

PMS TRANING

KNOWLEGE & WEALTH MGHT

OVERSEASOPERATION

RESEARCH

COO

RMS

EQUITY &COMMODITY

OPERATIONS

IT

ACCOUNTS

FRANCHISEOPERATIONS

GM

GM

ADMINMANGER

HRMANAGER

DPMANAGER

COMPLAINCEMANAGER

KYCMANAGER

45

REGIONAL ORGANISATIONAL STRUCTURE

REGIONALMANAGER

BRANCHMANAGER

SUPPORT STAFFS

DEALERCOMMODITY

EQUITY ADVISOR

RELATIONSHIPMANAGER

46

DEPARTMENTS OF HEDGE EQUITES

47

DEPARTMENTS OF HEDGE EQUITES

Client Relation Department

Finance Department

Marketing Department

Business associate development

Brand promotion

Investment promotion

Systems Department

Human Resources Department

Training

Wages and Salary

Performance Appraisal

Trading Department

Online Trading

Internet Trading

Delivery And Depository Department

Power of attorney

Depository function

Dematerialization Pledging

48

Equity Research Department

Fundamental analysis

Technical analysis

49

Client Relation Department

The client relation department assists the client or customer top open an account in

HEDGE EQUITIES (p) Ltd securities. This department is also known as the front office. A

client has to open two types of accounts to trade and own securities in the NSE and BSE.

Finance Department

Thus a department, to organize financial activities may be created under the direct control

of the board of directors. Finance manager will decide the major financial policy methods. Lower

levels can delegate the other routine activities.

Marketing Department

The major functions of marketing department are:

a. Business associate development: The Company takes up the marketing activities

of the various branches. It ensures an efficient marketing arena at its various

branches. The company encourages better relations in its branches and promotes

for the development of various marketing strategies.

b. Brand promotion: An important function of marketing department is to promote

the name of the company. HEDGE EQUITIES (P) LTD does it through the

different promotional activities. The name of HEDGE EQUITIES (P) LTD as a

stock broking firm is made known to the outside world.

c. Investment promotion: The main clients of HEDGE EQUITIES (P) LTD were its

investors. Hence the marketing department tries to capture as many investors as

possible to encourage them to invest.

d. Delivery promotion: Intraday trading is not always profitable and might involve a

lot of risk hence HEDGE EQUITIES (P) LTD promotes for delivery were the

shares are kept to be sold for a later date analyzing the profitability factors.

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Systems Department

The systems department is playing a vital role in the day operations of the company. It

is through the systems department that the clients can avail the facilities of Internet trading. Optic

fibre cables and high bandwidth connections from the HEDGE EQUITIES (P) LTD office to the

ISP, a dedicated server and back-up ISDN connections were maintained directly by the systems

department. For the purpose of trading they have made use of two software namely ODIN (Open

Dealers Integrated Network)

Human Resources Department

Human resource is often considered as the back bone of an organization even in this age of

advanced automation and mechanization. Since virtual organizations are not very much popular

in our part of the world, it is very important to any organization to have a HR department. The

presence of an excellent HR department increases the efficiency of an organization considerably.

Human resource management is defined as asset of practices, policies and programmes designed

to maximize both personal and organizational goals.

a. Training and induction

The selected employees will undergo three days continuous induction. During this period, he

will undergo training with all the department of HEDGE EQUITIES (P) LTD Securities (India)

Pvt. Ltd. There will also be classroom induction also within 3 months.

b. Wages and Salary Administration

The wages and salaries of the employees were fixed and granted by the HR department with

consent of the finance department.

c. Performance Appraisal

It was human resources department which gives the promotion to all employees, making

transfers and taking disciplinary actions if needed.

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d. Grievance Handling

The grievance of employees were received only through proper channels i.e., through the

particular department heads. The HR department will make solutions to the complaints as per the

rules and regulations of the company.

Trading Department

The department deals with the trading related activities of the company. The trading refers to

the buying and selling of shares. This department is the most important part of the organization.

There are two types of trading. They are

a. Online Trading:

These are the trading terminal of the organization. The each computer of the department is

termed as the trading terminal. The each terminal is assigned with NCFM certified dealers, who

is in charge of each portal will do the trade according to the client request. The terminal is

managed by either NEAT (National Exchange for Automated Trading) software or ODIN (Open

Dealers Integrated Network) software. The client can also place his through written request or

through the telephone, in this the order will be place d by the dealer.

b. Internet Trading:

The internet trading is a facility provides by the company in order to trade the securities from

his convenient place like his office, home etc. the order will be placed by the client itself, and he

can make changes before the trade is done for changing the price, cancellation of the order.

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Delivery And Depository Department

Delivery refers to the share that bought on particular day are not sold on that day itself and

holding of the share for an appreciation in the value of the security and to trade it on a future

date. Deliver Instruction Slip: it is a slip the client should fill and gave to the dealer regarding the

purchase of the share.

There are two procedures to move the share namely

a. Power of attorney

This is which the client signs at the time of opening a trading account and depository

participant account. If the client has given the power of attorney, HEDGE EQUITIES (P) LTD

will have the power to transact the clients stock without pay –in slips.

b. Easiest

It is secured internet enabled service which means Electronic Access to Securities

information and Execution of Secured Transaction. This is facility wherein the clients can give

delivery instructions via internet. Easiest is a facility provided by CDSL.

The activities related with the depository department

a) Depository function

b) Dematerialization

c) Pledging

Equity Research Department

The function of the department is to study the details regarding the share or securities and to

make prediction regarding the future performance of the company. The following types of

approaches done through this department:

a. Fundamental analysis

b. Technical analysis

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SWOT ANALYSIS

STRENGTH

New technology implemented for influencing customers

Brokerage charges are less compared to competitors

Research reports are updated and provided to the client regularly

1:4 exposures is provided to the customers

Hedge maintains a good product service image

Complaints are rectified immediately

Hedge stands second in Kerala after geojit BNP Paribas

WEAKNESS

Lack of internal communication

OPPORTUNITY

Good customer base

Growing IPO issues

Positive outlook of people towards financial product

Attraction of new investors

THREATS

Entering of banks into stock brokering industry

High competition

Unethical market practices

Government policies

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FINDINGS

Management is giving adequate recognition for achievements

The company provides sufficient training in a separate institute called “ hedge school of

applied economics’

Majority of the employees agree that working environment is comfortable and sufficient

resources are available

There is a good relation between the management and employees

The company has high attrition rate

Welfare facilities are adequate for the employees

Separate departments for looking into customer queries are established in the

organization

Customer satisfaction is the main objective of the organization

SUGGESTIONS

Improve internal communication

Implement strategies to control attrition rate

Increase promotional activities to compete in the market

Give awareness about ethical market practices

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CONCLUSION

The objective of the programme was to gain practical knowledge on the overall functioning of

the Organization and its various departments .during the study ,a lot of practical knowledge have

been gained about the financial service industry .this study proved to be helpful in gaining idea

about the various activities undergone in a real life business situation .also it helped me to gain

more information about the present condition prevailing in the financial service industry and

their strategies that will prove beneficial for me in future ventures

This report give an insight about the company and its various functions ,the objective of the

company and how the company tries to achieve these objectives .it was a great experience to do

my organizational study in an organization like Hedge equities (P) ltd.

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BIBLIOGRAPHY

Websites

www.hedgeequities.com

www.nseindia.com

www.bseindia.com

www.investopedia.com