organizational study (2).docx

A

SUMMER TRAINING PROJECT REPORT

ON

Commodity Market Of India

AT

Submitted in partial fulfillment of the requirement

For the award of degree

Of

P.G.P.G.B.M

SESSION (2014-2016)

SUBMITTED TO: - SUBMITTED BY:-

XCELLON SCHOOL OF BUSINESS Name:- Nikunjsinh B Sodha

AHMEDABAD College Roll No:-M00(241)

DECLARATION

I, Sodha NIkunj B , student of MBA IInd Semester, studying at XCELLON School of Business, Ahmedabad, hereby declare that the summer training report on “Commodity market of india ” submitted to XCELLON School Of Business, Ahmedabad in partial fulfillment of Degree of PGPM is the original work conducted by me. The information and data given in the report is authentic to the best of my knowledge. This summer training report is not being submitted to any other University for award of any other Degree, Diploma and Fellowship.

Sodha NIkunj B

Acknowledgement

This project report bears the imprint of those who had rendered their

wholehearted support and encouragement without whose help this effort of

mine would be in vain. I express my deep sense of gratitude and sincere thanks

to my project guide Prof. BHAVIK SHAH for his directions, suggestion and

information provided which were of utmost importance for the successful

completion of the project. I am also thankful to Dr.JITENDRA SHARMA for

his proper guidance. I am thankful to the employees MARVADI SHARES

AND FIANCE LIMITED of for assisting me in the timely completion of

project.

At last, I also thank to my family and my friends those helped me in my

training period and in the completion of project.

PREFACE

To survive in a competitive environment, theoretical knowledge must be

supplemented with practical knowledge. Being a student, project study forms

an essential part of our course and bridges the gap between theoretical

knowledge and practical knowledge.

Financial market is most interesting and deep subject to study and analysis. It is

most fluctuated market so it creates suspense every movement. Mutual fund is

in emerging trend.

This motivated us to take up the study of financial market .This project deal

with various aspect of stock market like IPO, Online trading, Regulatory frame

work etc. .

This project gave me an opportunity to raise our level of knowledge about

financial market.

INDEX

CHAPTER -1 1.1-Industry analysis………………………..7-12 1.2-Commodity industry analysis………..…13-14 1.3-Need for commodity industry………….15 1.4-Portel five model ………………………16-19 1.5-Major player…………………………….20-23 1.6-Functioning of industry…………………24

CHAPTER-2

2.1-Company analysis.

2.2-Company detail………………………..25

2.3-History of marwadi ……………………26-28

2.4-Marwadi story…………..……………...29

2.5-Company philosophy………….………30

2.6-Mission &vision….…………………….31

2.7-Milestones………………………………32

2.8-Organisation structure …………………33

2.9-Branches…………………………………34

2.10-Highlights………………………………35-36

2.11-Company information………………….37

2.12-Board of directors……………………...38

2.13-Time keeping system & membership...39

CHAPTER-3 Detail of department

3.1-Opration department………………....41-44 3.2-Finance department…………………..45-47 3.3-Marketing department…….………….48-55 3.4-Humanresarch department……….…..56-58 3.5-Product&searvice…………….………59-74 3.6-Swot analysis …..……………………75-76

CHAPTER-4 4.1-Task assigned…………………………77 4.2-Sip learning ……..……………………79 4.3-Conclusion…..…………………….…80 4.4-Bibliography………………………….81

Chapter : 1

1.1-Commodity Industry Analysis

INTRODUCTION

Indian markets have recently thrown open a new avenue for retail investors and traders to

participate commodity derivatives. For those who want to diversify their portfolios beyond

shares, bonds and real estate, commodities are the best option.

Till some months ago, this wouldn’t have made sense. For retail investors could have done

very little to actually invest in commodities such as gold and silver or oilseeds in the futures

market. This was nearly impossible in commodities except for gold and silver as there was

practically no retail avenue for pumping in commodities.

However, with the setting up of three multi-commodity exchanges in the country, retail

investors can now trade in commodity futures without having physical stocks.

Commodities actually offer immense potential to become a separate asset class for market-

savvy investors, arbitrageurs and speculators. Retail investors, who claim to understand the

equity markets, may find commodities an unfathomable market. But commodities are easy to

understand as far as fundamentals of demand and supply are concerned. Retail should

understand the risk advantages of trading in commodities futures before taking a leap.

Historically, pricing in commodities futures has been less volatile compared with equity and

bonds, thus providing an efficient portfolio diversification option.

In fact, the size of the commodities markets in India is also quite significant. Of the

country’s GDP of Rs.13,20,730 crore( Rs.13,207.3 billion), commodities related ( and

dependent) industries constitute about 58 per cent.

Currently, the various commodities across the country clock an annual turnover of

Rs.1,40,000 crore ( Rs.1,400 billion). With the introduction of futures trading, the sizes of

the commodities market grow many folds here on.

DEFINITION OF COMMODITIES

Any product that can be used for commerce or an article of commerce which is traded on an

authorized commodity exchange is known as commodity. The article should be movable of

value, something which is bought or sold and which is produced or used as the subject or

barter or sale. In short commodity securities”.

In current situation, all goods and products of agricultural (including plantation), mineral

and fossil origin are allowed for commodity trading recognized under the FCRA. The

national commodity exchanges, recognized by the Central Government, permits commodities

which include precious (gold and silver) and non-ferrous metals: cereals and pulses; ginned

and un-ginned c otton; oilseeds, oils and oilcakes; raw jute and jute goods; sugar and

gur;potatoes and onions; coffee and tea; rubber and spices. Etc.includes all kinds of goods.

Forward Contracts (Regulation) Act (FCRA), 1952 defines “goods” as “every kind of

movable property other than actionable claims, money and

In the world of business, a commodity is an undifferentiated product whose market value

arises from the owner’s right to sell rather than to use. Example commodities from the

financial world include oil (sold by the barrel), wheat, bulk chemicals such as sulfuric acid

and even pork bellies.

1.2-NEED OF COMMODITY MARKET IN INDIA

Achieving hedging efficiency is the main reason to opt for futures contracts. For instance, in

February, 2007, India had to pay $ 52 per barrel more for importing oil than what they had to

pay a week ago. The utility of a futures contact for hedging or risk management presupposes

parallel or near-parallel relationship between the spot and futures prices over time. In other

words, the efficiency of a futures contract for hedging essentially envisages that the prices in

the physical and futures markets move in close unison not only in the same direction, but also

by almost the same magnitude, so that losses in one market are offset by gains in the other.

Of course, such a price relationship between the spot and futures markets is subject to the

amount of carrying or storage costs till the maturity month of the futures contract.

Theoretically ( and ideally), in a perfectly competitive market with surplus supplies and

abundant stocks round the year, the futures price will exceed the spot price by the cost of

storage till the maturity of the futures contract. But such storage cost declines as the contract

approaches maturity, thereby reducing the premium or contango commanded by the futures

contract over the spot delivery over its life and eventually becomes zero during the delivery

month when the spot and futures prices virtually converge. The efficiency of a futures

contract for hedging depends on the prevalence of such an ideal price relationship between

the spot and futures markets .

1.3-What can commodity market offer?

If you are an investor, commodities futures represent a good form of investment because of

the following reasons..

High Leverage – The margins in the commodity futures market are less than the F&O

section of the equity market.

Less Manipulations - Commodities markets, as they are governed by international price

movements are less prone to rigging or price manipulations.

Diversification – The returns from commodities market are free from the direct influence

of the equity and debt market, which means that they are capable of being used as

effective hedging instruments providing better diversification. If you are an importer or

an exporter, commodities futures can help you in the following ways…

Hedge against price fluctuations – Wide fluctuations in the prices of import or export

products can directly affect your bottom-line as the price at which you import/export is

fixed before-hand. Commodity futures help you to procure or sell the commodities at a

price decided months before the actual transaction, thereby ironing out any change in

prices that happen subsequently.

If you are a producer of a commodity, futures can help you as follows:

Lock-in the price for your produce – If you are a farmer, there is every chance that the

price of your produce may come down drastically at the time of harvest. By taking

positions in commodity futures you can effectively lock-in the price at which you wish to

sell your produce

Assured demand – Any glut in the market can make you wait unendingly for a buyer.

Selling commodity futures contract can give you assured demand at the time of harvest. If

you are a large scale consumer of a product, here is how this market can help you.

Control your cost – If you are an industrialist, the raw material cost dictates the final

price of your output. Any sudden rise in the price of raw materials can compel you to pass

on the hike to your customers and make your products unattractive in the market. By

buying commodity futures, you can fix the price of your raw material.

Ensure continuous supply – Any shortfall in the supply of raw materials can stall your

production and make you default on your sale obligations. You can avoid this risk by

buying a commodity futures contract by which you are assured of supply of a fixed

quantity of materials at a pre-decided price at the appointed time.

1.4-Commodities exchanges

A brief description of commodity exchanges are those which trade in particular commodities,

neglecting the trade of securities, stock index futures and options etc.,

In the middle of 19th century in the United States, businessmen began organizing market

forums to make the buying and selling of commodities easier. These central market places

provided a place for buyers and sellers to meet, set quality and quantity standards, and

establish rules of business. Agricultural commodities were mostly traded but as long as there

are buyers and sellers, any commodity can be traded.

The major commodity markets are in the United Kingdom and in the USA. In

India there are 25 recognized future exchanges, of which there are three national

level multi-commodity exchanges. After a gap of almost three decades, Government of India

has allowed forward transactions in commodities through Online Commodity Exchanges, a

modification of traditional business known as Adhat and Vayda Vyapar to facilitate better

risk coverage and delivery of commodities.

The three exchanges are

National Commodity & Derivatives Exchange Limited ( NCDEX)

Multi Commodity Exchange of India Limited ( MCX)

National Multi-Commodity Exchange of India Limited ( NMCEIL)

All the exchanges have been set up under overall control of Forward Market Commission

(FMC) of Government of India.

1.5-Forward market commission:-

The Forward Markets Commission (FMC) is the chief regulator of commodity futures

markets in India . As of July 2014, it regulated Rs 17 trillion[1] worth of commodity trades in

India. It is headquartered in Mumbai and this financial regulatory agency is overseen by

the Ministry of Finance. The Commission allows commodity trading in 22 exchanges in

India, of which 6 are national.

History

Established in 1953 under the provisions of the Forward Contracts (Regulation) Act, 1952, it

consists of not less than two but not exceeding four members appointed by the Central

Government, out of them one being nominated by the Central Government to be the

Chairman of the Commission.

Since futures traded in India are traditionally on food commodities, the agency was originally overseen by Ministry of Consumer Affairs, Food and Public Distribution (India).

https://en.wikipedia.org/wiki/Ministry_of_Consumer_Affairs,_Food_and_Public_Distribution_(India)

https://en.wikipedia.org/wiki/Commodity

https://en.wikipedia.org/wiki/Ministry_of_Finance_(India)

https://en.wikipedia.org/wiki/Financial_regulation

https://en.wikipedia.org/wiki/Mumbai

https://en.wikipedia.org/wiki/Forward_Markets_Commission_(India)#cite_note-1

https://en.wikipedia.org/wiki/Indian_rupee

https://en.wikipedia.org/wiki/India

The commission appeared in the news in March 2012 for their ban on guar gum futures trading after it said the price quadrupled due to its use in frocking causing food inflation.

In September 2013, the commission responsibility was moved to the Ministry of Finance to reflect that futures trading was becoming more and more a financial activity.

Responsibilities and functions:-

The functions of the Forward Markets Commission are as follows:

To advise the Central Government in respect of the recognition or the withdrawal of recognition from any association or in respect of any other matter arising out of the administration of the Forward Contracts (Regulation) Act 1952.

To keep forward markets under observation and to take such action in relation to them, as it may consider necessary, in exercise of the powers assigned to it by or under the Act.

To collect and whenever the Commission thinks it necessary, to publish information regarding the trading conditions in respect of goods to which any of the provisions of the act is made applicable, including information regarding supply, demand and prices, and to submit to the Central Government, periodical reports on the working of forward markets relating to such goods.

To make recommendations generally with a view to improving the organization and working of forward markets.

To undertake the inspection of the accounts and other documents of any recognized association or registered association or any member of such association whenever it considers it necessary.

It allows futures trading in 23 Fibres and Manufacturers, 15 spices, 44 edible oils, 6 pulses, 4 energy products, single vegetable, 20 metal futures, 33 others Futures.

https://en.wikipedia.org/wiki/Forward_Markets_Commission_(India)

https://en.wikipedia.org/wiki/Forward_Markets_Commission_(India)

https://en.wikipedia.org/wiki/Ministry_of_Finance_(India)

https://en.wikipedia.org/wiki/Guar_gum

1.6-National Commodities & Derivatives Exchange Limited (NCDEX)

National Commodities & Derivatives Exchange Limited(NCDEX) promoted by ICICI Bank Limited (ICICI Bank), Life insurance corporation of India (LIC), National Bank of agriculture and Rural Development (NABARD) and National Stock Exchange of India Limited(NSC). Punjab National Bank (PNB), Credit Ratting Information service of India Limited (CRISIL), Indian Farmers Fertilizer Cooperative limited (IFFCO),Canara bank and Goldman saches by subscribing to the equity shares have joined the promoters as a share holder of exchange. NCDEX is the only commodity exchange in the country promoted by nation institutions.

NCDEX is a public limited company incorporated on 23rd April 2003.NCDEX Is a national level technology driven on line commodity exchange with an independent board of Directors and professionals not having any vested interest in commodity markets. It is committed to provide a world class commodity exchange platform for market participants to trade in a wide spectrum of commodity derivatives driven by best global practices, professionalism and transparency. NCDEX is regulated by Forward Market Commission(FMC).NCDEX is also subjected to the various laws of land like the companies act, stamp act, contracts act, forward contracts regulation act and various other legislations. NCDEX is located in Mumbai and offers facilities to its members in more than 550 centres through out India. NCDEX currently facilitates trading of 60 commodities.

Commodities Traded at NCDEX:-

Bullion:- Gold KG, Silver, Brent

Minerals:- Electrolytic Copper Cathode, Aluminium Ingot, Nickel Cathode, Zinc Metal Ingot, Mild steel Ingots

Oil and Oil seeds:- Cotton seed, Oil cake, Crude Palm Oil, Groundnut (in shell),Groundnut expeller Oil, Cotton, Mentha oil, RBD Pamolein, RMseed oil cake, Refined soya oil, Rape seeds, Mustard seeds,Caster seed, Yellow soybean, Meal

Pulses:- Urad, Yellow peas, Chana, Tur, Masoor,

Grain:- Wheat, Indian Pusa Basmati Rice, Indian parboiled Rice (IR-36/IR-64), Indian raw Rice (ParmalPR-106), Barley, Yellow red maize

Spices:- Jeera, Turmeric, Pepper

Plantation:- Cashew, Coffee Arabica, Coffee Robusta

Fibre and other:- Guar Gum, Guar seeds, Guar, Jute sacking bags, Indian 28mm cotton, Indian 31mm cotton, Lemon, Grain Bold, Medium Staple, Mulberry, Green Cottons, , , Potato, Raw Jute, Mulberry raw Silk, V-797 Kapas , Sugar, Chilli LCA334

Energy:- Crude Oil, Furnace oil

1.7-Shareholder of NCDEX:-

Sr.No. Name of the shareholder Total no. of

shares% of total

capital

1. National Stock Exchange of India Limited (NSE) 76,01,377 15.00%

2. Life Insurance Corporation of India (LIC) 5,625,000 11.10%

3. National Bank for Agriculture and Rural Development (NABARD) 5,625,000 11.10%

4. Indian Farmers Fertiliser Cooperative Limited (IFFCO) 50,68,000 10.00%

5. Oman India Joint Investment Fund 5,067,600 10.00%6. Punjab National Bank (PNB) 3,694,446 7.29%7. Build India Capital Advisors LLP 3,091,236 6.10%8. Canara Bank 3,055,519 6.03%9. IDFC Private Equity Fund III 25,33,800 5.00%10. Shree Renuka Sugars Limited 25,33,700 5.00%11. CRISIL Limited 1,875,000 3.70%12. InterContinental Exchange (ICE) 1,500,000 2.96%

13. Goldman Sachs Investments (Mauritius) I Limited 1,500,000 2.96%

14. Jaypee Capital Services Limited 1,204,800 2.38%

15. Star Agriwarehousing and Collateral Management Ltd. 7,00,500 1.38%

16. Individuals 22 0.00%Total 50,676,000 100.00%

1.8-Multi Commodity Exchange of India Limited (MCX)

Multi Commodity Exchange of India Limited (MCX) is an independent and de-mutulized exchange with permanent reorganization from Government of India, having Head Quarter in Mumbai. Key share holders of MCX are Financial Technologies (India) Limited, State Bank of India, Union Bank of India, Corporation Bank of India, Bank of India and Cnnara Bank. MCX facilitates online trading, clearing and settlement operations for commodity futures market across the country. MCX started of trade in Nov 2003 and has built strategic alliance with Bombay Bullion Association, Bombay Metal Exchange, Solvent Extractors Association of India, pulses Importers Association and Shetkari Sanghatana.

MCX deals with about 55 commodities.

Commodities Traded at MCX:-

Bullion:- Gold, Silver, Silver Coins,

Minerals:- Aluminium, Copper, Nickel, Iron/steel, Tin, Zinc, Lead

Oil and Oil seeds:- Castor oil/castor seeds, Crude Palm oil/ RBD Pamolein, Groundnut oil, Mustard/ Rapeseed oil, Soy seeds/Soy meal/Refined Soy Oil, Coconut Oil Cake, Copra, Sunflower oil, Sunflower Oil cake, Tamarind seed oil,

Pulses:- Chana, Masur, Tur, Urad, Yellow peas

Grains:- Rice/ Basmati Rice, Wheat, Maize, Bajara, Barley,

Spices:- Pepper, Red Chili, Jeera, Cardamom, Cinnamon, Clove, Ginger,

Plantation:- Cashew Kernel, Rubber, Areca nut, Betel nuts, Coconut,Coffee,

Fiber and others:- Kapas Khalli, Cotton (long staple, medium staple,

short staple), Cotton Cloth, Cotton Yarn, Gaur seed and

Guargum, Gur and Sugar, Khandsari, Mentha Oil, Potato, Art

Silk Yarn, Chara or Berseem, Raw Jute, Jute Goods, Jute

Sacking,

Petrochemicals:- High Density Polyethylene (HDPE), Polypropylene (PP), Poly

Vinyl Chloride (PVC)

Energy:- Brent Crude Oil, Crude Oil, Furnace Oil, Middle East Sour

Crude Oil, Natural Gas

1.9-Shareholders of MCX:-

1.10-Sales of MCX:- (in Rs. Cr.)

2011 2012 2013 20140

100

200

300

400

500

600

0

0 0

0

Series 1

http://economictimes.indiatimes.com/multi-commodity-exchange-of-india-ltd/stocks/companyid-16571.cms

http://www.moneycontrol.com/financials/multicommodityexchangeindia/profit-loss/MCE#MCE

1.11-Limitations of commodity future market:-

Commodity market is very difficult to predict. Commodity prices depend upon region,

monsoon, transportation cost, demand-supply theory, import/ export policies & Global

market trends. So commodity market experience volatility that cannot be predicted

easily.

Without knowing the spot market for commodities it is very difficult to play with Future

market. In capital market it depends upon Companies performance, decisions, long run

plans, mergers, etc. there are definite regions to move up & down in the market, but in the

case of Commodity market there are so many regions for the market movement, it is like

a game of luck to the investor.





Customer has to deposit the margin amount that is based on volatility of commodity plus

brokerage that is deducted from total losses made. So if at all there is a loss, the total loss

amount will be very huge. In this aspect it is very risky market.

Commodity market not yet developed in India so it is less reliable.

Commodity market gives high return but with multiplier of high risk.

1.12-PORTER FIVE MODEL

INDUSTRY ANALYSIS USING PORTER’S 5 FORCES MODEL

POTENTIAL ENTERANT

InvestmartVarious Banks

GeojitCpher

UTI Securities Ltd.Refco Group Ltd.

IDBI Capital Mt Services Ltd.

COMPETITORS

ICICI Web Trade Ltd5paisa.com

Kotak Securities LtdIndia Bulls

Motilal Oswal Securities Ltd

HDFC Securities LtdAngle Broking

BUYERS

Small InvestorsFranchise/Business

PartnersMF Companies

HUFInstitutional Investors

SUPLERS

Web maintainers NSDLCDSLNSEBS

MCXNCDE

SUBSTITUTES

Mutual FundsInsuranceBank FD

1.13-MAJOR PLAYERS

CHAPTER-2.

2.1-COMPANY DETAIL

Marwadi Group is a widely renowned financial services group in Saurashtra. It had its

genesis in the year 1992 with the incorporation of Marwadi Shares & Finance Pvt. Ltd.

(MSFPL). In the year 1996, it became a corporate member of National Stock Exchange of

India Ltd. (popularly known as NSE), which was then an untested platform for securities

trading. MSFPL’s perspicacity had it that in future this new platform – which was highly

leveraged on technology – would be the main liquidity purveyor in securities business.

Marwadi Group’s Vision now stands proven with NSE now at the commanding heights of

Indian securities market.

Marwadi Group therefore has an established history of making the right move in an intuitive

manner. Later in the year 1999, MSFPL became a Depository Participant of National

Securities Depository Ltd. (NSDL) – which was the first Depository launched in Saurashtra

after Depositories Act was legislated in the year 1997. In deciding to become a DP, what

guided was once again MSFPL intuitive feel for what the future would unfold, when skeptics

stood apart, MSFPL took the plunge and brought the depository services to retail investor’s

door-step in Saurashtra, bringing into MSFPL fold a retail mass of 60,000 plus customers.

Marwadi Group is driven by its three founder directors Shri. Ketan Marwadi, a Civil

Engineer by profession and the major brain behind Marwadi Group, Shri Deven Marwadi an

expert at risk management systems and Shri Sandeep Marwadi who is guiding the technology

and systems in the Company. Having started out on sound principles of proprietary enterprise

and laid a robust foundation in terms of financial and network, the promoters have now

handed over the reins to professional mangers. The three promoter-directors now lay out the

broad policy framework and future growth strategy for the group. Day-to-day management is

vested in professional managers, who are invested with both authority and accountability.

Today MSFPL have a corpus of managers who handle their respective departments and

follow a systemic feedback of inputs to the higher management, which then improves upon

the existing practices and standards.

2.2 HISTORY

Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years

ago. The earliest records of security dealings in India are meager and obscure.

By 1830's business on corporate stocks and shares in Bank and Cotton presses took place in

Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers

recognized by banks and merchants during 1840 and 1850. The 1850's witnessed a rapid

development of commercial enterprise and brokerage business attracted many men into the

field and by 1860 the number of brokers increased into 60.

In 1860-61 the American Civil War broke out and cotton supply from United States of

Europe was stopped; thus, the 'Share Mania' in India begun. The number of brokers increased

to about 200 to 250. However, at the end of the American Civil War, in 1865, a disastrous

slump began (for example, Bank of Bombay Share which had touched Rs 2850 could only be

sold at Rs. 87). At the end of the American Civil War, the brokers who thrived out of Civil

War in 1874, found a place in a street (now appropriately called as Dalal Street) where they

would conveniently assemble and transact business.

In 1887, they formally established in Bombay, the "Native Share and Stock Brokers'

Association" (which is alternatively known as "The Stock Exchange"). In 1895, the Stock

Exchange acquired a premise in the same street and it was inaugurated in 1899. Thus, the

Stock Exchange at Bombay was consolidated.

Thus in the same way, gradually with the passage of time number of exchanges were

increased and at currently it reached to the figure of 24 stock exchanges.

An important early event in the development of the stock market 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 emerged mainly in buoyant periods to recede into oblivion

during depressing times subsequently.

In order to check such aberrations and promote a more orderly development of the stock

market, the central government introduced a legislation called the Securities Contracts

(Regulation) Act, 1956. Under this legislation, it is mandatory on the part of a stock exchange

to seek government recognition. As of January 2002 there were 23 stock exchanges

recognized by the central Government. They are located at Ahmedabad, Bangalore, Baroda,

Bhubaneswar, Calcutta, Chennai,(the Madras stock Exchanges ), Cochin, Coimbatore, Delhi,

Guwahati, Hyderabad, Indore, Jaipur, Kanpur, Ludhiana, Mangalore, Mumbai(the National

Stock Exchange or NSE), Mumbai (The Stock Exchange), popularly called the Bombay

Stock Exchange, Mumbai (OTC Exchange of India), Mumbai (The Inter-connected Stock

Exchange of India), Patna, Pune, and Rajkot. Of course, the principle bourses are the

National Stock Exchange and The Bombay Stock Exchange, accounting for the bulk of the

business done on the Indian stock market.

While the recognized stock exchanges have been accorded a privileged position, they are

subject to governmental supervision and control. The rules of a recognized stock exchanges

relating to the managerial powers of the governing body, admission, suspension, expulsion,

and re-admission of its members, appointment of authorized representatives and clerks, so on

and so forth have to be approved by the government. These rules can be amended, varied or

rescinded only with the prior approval of the government. The Securities Contracts

(Regulation) Act vests the government with the power to make enquiries into the affairs of a

recognized stock exchange and its business, withdraw the recognition the task of regulating

the stock exchange to the Securities Exchanges Board of India .

2.3-MARWADI STORY

Marwadi is a Gujarat based financial service group dealing in equities/commodities broking

and portfolio management services. In the last 15 years we have grown into a network of

more than 47 branches with 650+ committed professional people and 475+ channel partners

across India. MARWADI has kept the faith of over 1.35 lakh investors and its growing. After

establishing supremacy in Gujarat:

We are now expending National wide and to fuel our growth plans, we recently raised

capital from U.K. - based investment companies.

Gujarati-Marwadi

Ketan Marwadi

Sandeep Marwadi

(Managing Director) (Whole Time Director)

Gujarati by birth: Marwadi by surname they have got the best of both cultures. An

entrepreneurial streak: a never- say-die spirit: a deep sense of brotherhood and all too well-

known sharp money senses drive our business.

2.4-COMPANY PHILOSOPHY

TRADITIONAL IN VALUES: NOT IN BUSINESS

What makes Marwadi Group different from any other broking firm is our ability to borrow

from the wisdom and values of our past while keeping an eagle eye on the future. This is why

u will find the latest in processes: infrastructure, and technology bundled together is served

you at your doorstep: but more than that you will find a personal touch. While we value your

money (trust us we will do everything to make it grow). But we value your relationship more.

All our clients feel at home while trading with us, knowing fully well that there financial

aspiration is being handled with care. We hope you will let us have the honors of serving you

soon.

2.5-MISSION & VISION

"To be a world-class financial services provider by arranging all conceivable financial

services under one-roof at affordable costs through cost effective delivery systems, and

achieve organic growth in business by adding newer lines of business.”

2.6-MILESTONESThe company crossed the following milestones to reach its present position as the leading

retail broking house in India

2.7-ORGANISATIONAL STRUCTURE

MANAGING DIRECTOR

1992...Marwadi Shares And Finance Pvt. Ltd. was incorporated.

1996...Became a corporate member of National Stock Exchange Of India - (NSE)

1998...Became a member of Saurashtra Kutch Stock Exchange (SKSE)

1999...Launched Depository services of Depository Participant under National

Depository Security Ltd. (NSDL)

2000...Commenced Derivative Trading after obtaining registration as Clearing and

Trading Member in NSE.

2003... (MCBPL) Became a corporate member of the National Commodity and

Derivatives Exchange of India Ltd.

2003... (MCBPL) Became a corporate member of The Multi Commodity Exchange of

India Ltd.

2004...Became a corporate member of Bombay Stock Exchange Ltd. (BSE)

2004...Launched Depository Services of Depository Participant under Central

Depository Services (India) Ltd.

2005...Launched Portfolio Management Services

2006...MSFPL converted to Public Limited (Marwadi Shares And Finance Limited)

2007…The Company raised further private equity from Caledonia Investment plc.

DIRECTORS

CHIEF EXECUTIVE OFFICER

DEPUTY GENERAL MANAGER

SENIOR MANAGERS

MANAGERS

ASSISTANT MANAGERS

SENIOR OFFICERS

SENIOR EXECUTIVES

CLERKS

Thus, like any other formal organization Marwadi Shares & Finance Limited follows a

professionalized organizational structure than a hotchpotch structure, in which there is no

clear idea about the hierarchy patterned followed .

2.8-BRANCHESThere are Mainly 52 branches of Marwadi in different cities like…..

Ahmedabad Jamnagar

Amreli Junagadh

Anand Keshod

Baroda Manavadar

Bhavnagar Mithapur

Bhuj Mumbai

Delhi Okha

Dhoraji Porbandar

Dhangadhra Surat

Gondal Surendranagar

Gandhidham Veraval

Ankleshwar Jetpur

Barmer Khambhaliya

Bharuch Kodinar

Disha Kolhapur

Hyderabad Kolkata

Indore Mahuva

Jamshedpur Manavadar

Mandvi Morbi

Mangrol Nadiad

Mehsana Nasik

Navsari Okha

Palanpur Pune

Savarkundla Una

Unjha Valsad

Vapi Ranavav

2.9-HIGHLIGHTS OF MARWADI GROUP:

MSFPL is among the top 25-broking houses of India, because of its focus on the fast-

growing retail brokerage segment.

MSFPL has a wide reach with a network of 48 branches, 400 sub-brokers who

together services 75,000 plus trading customers and 1000 plus commodity customers.

MSFPL wide client base gives an excellent opportunity to cross-see third party

products such as Mutual Fund, and Insurance.

In the Insurance Sector, we have major presence in Saurashtra as exclusive Corporate

Agents of TATA-AIG both for life and non-life business.

MSFPL have a reputation for being first movers in adoption new products and putting

it to the customers.

MSFPL have robust risk management system, which is proven by the fact of very low

recoverable outstanding at any point of time.

MSFPL service delivery systems are leveraged by technology and therefore MSFPL

have established global reach at optimal cost. MSFPL recognize that the ultimate in

bottom line is the efficiency of delivery system. It is therefore MSFPL motto to

continuously upgrade delivery systems through state-of-art technology.

In the heart of Rajkot city MSFPL have 10,000 sq. ft. of built-up area in which

MSFPL have housed latest state of the art artifacts and gadgets for communication

and networking. MSFPL have 300 plus computers in this building running on the

back bone of leased data circuit lines, ISDN lines and V-sat in order to facilitate

delivery of MSFPL products to remote location customers on real-time basis .

MSFPL have made foray into commodities trading, as is the wont of the Marwadi

group, in this business. True to MSFPL motto, as on day, MSFPL are clocking a daily

trading volume of Rs. 50 Crore, by just having taken it to Saurashtra region only.

MSFPL are gradually penetrating the market outside Saurashtra in commodities too.

MSFPL have strong distribution network which has been primarily responsible for

MSFPL ever enhancing volumes and therefore profitability. MSFPL use Channel

Partners (such as sub-brokers, franchisees, remises etc.) to reach out to retail segment.

MSFPL in the process provide livelihood to many people who would have otherwise

hit the job-market. MSFPL have generous revenue sharing arrangement with Channel

partners.

MSFPL average daily trading volume in all segments of both NSE and BSE put

together amount to Rs. 220 Crore. The total daily trading volume on NSE and BSE

put together around Rs. 220 thousand Crore, therefore amount of 1% to the National

Average Daily Trading volume.

2.10-CURRENT SCENARIO

Servicing more than 1, 00,000 clients.

Ranked among top-50 broking houses.

Servicing more than 698 pin codes.

Having more than 400 Franchisee/Sub-brokers & authorized person’s network.

More than 300 employee’s strength.

Infrastructure spreading 10000 Sq. Ft. into 5 storied building.

2.11-COMPANY INFORMATION

NAME : Marwadi Shares & Finance Pvt. Ltd.

REGISTERED OFFICE &

CORPORATE OFFICE : Marwadi Financial Centre

Nr. Kathiawad Gymkhana

Dr. Radhakrishnana Road

Rajkot – 360 001

HEAD OFFICE : Marwadi Financial Center

Nr. Kathiawad Gymkhana

Dr. Radhakrishnana Road

Rajkot – 360 001

PHONE NO : 248 13 13

WEB SITE : www.marwadionline.com

www.msfpl.com

DIRECTORS : Mr. Ketan Marwadi

Mr. Deven Marwadi

Mr. Sandeep Marwadi

C.E.O : Jeyakumar.A.S.

DEPUTY GENERAL MANAGER : Mr. Haresh Maniar

COMPANY SECRETERY : Mr. Tushit Mangukiya

EMAIL : [email protected],

Piyush.marwadi@marwadionline.

2.12- BOARD OF DIRECTORS

MANAGING DIRECTOR : Mr. Ketan Marwadi

WHOLE TIME DIRECTORS : Mr. Deven Marwadi

&

Mr. Sandeep Marwadi

CEO : Mr. K. S. Jay kumar

GENERAL MANAGER : Mr. Paras Maniar

COMPANY SECRETERY : Mr. Tushit Mangukiya

DY. MANAGER : Mr. Haresh Maniar

DP MANAGER : Mr. Arvind Gamot

H R MANAGER : Mr. Akshay Goswami

ACCOUNT MANAGER : Mr. Jayant and Mr. Bhargav

MARKETING MANAGER : Mr. Mihir Kothari

2.13-TIME SYSTEM KEEPING

There are numbers of employes working in this company. Marwadi has a shift of work and

they follow the system of punching card system. Marwadi has only one shift of 8 hours

starting from 9.30 A.M. to 7.30 P.M. during working hours they have lunch break of one hour

start from 1.00 P.M. to 2.00 P.M. The following are the benefits of the timekeeping system.

1. It helps in nothing of presence and absence of employess.

2. It helps in recording arrival time of employess.

3. It helps in nothing of employess leave the organisation during or before duty time.

4. It also makes the note of employees who do work for overtime.

This informations are also given to wage and salary admisistration.

2.14-MEMBERSHIP

Trading cum clearing members for cash & derivative segment

National Stock Exchange of India Ltd.

Bombay Stock Exchange

Saurashtra – Kutch Stock Exchange.

Over the Counter Exchange India

CHAPTER-3

3.1 - OPERATION DEPARTMENT

INTRODUCTION Operation management, which was formerly considered as manufacturing management

only, now it, is known as operations management. Many non-manufacturing organizations

providing services like hospitals, banks, transportation, farming, warehousing etc. are now

covered by operation management.

An operation by formal definition is a process of changing inputs into outputs, with the

creation or adding of value to some entity. The processes of alteration or transportation or

storage or inspection or any combination thereof add value to an entity is rightly called

operations. The growth of service industry has brought with it the term ‘Operations

Management’.

MARWADI SHARES is a services sector industry has some unique features, different from

those, which has manufacturing base. These are:

Non-inventorial output of service, since generally no stock is produced.

Variable demand.

Labour-intensive operations mostly.

Location of service is dictated by the location of the users.

Location Details

Site selection is an important activity, which decides the fate of the business. A good location

may, reduce the cost of service and distribution helps in elevating either the competitive

strength or the profit margin of the business.

MARWADI SHARES has Location is in the heart of the city where service is easily

available for all customer and easy access compare with other place that available in city.

Location has major impact on success or failure of operation.

Advantages of this type of location compare to competitors:

Less service cost and

It helps to reduce distribution cost

Layout details

There has an optimum arrangement of planning and has a proper flow of man and material,

operating equipment like PC, storage space, material handling equipment and all other

supporting service along with the design of best structure to contain all these facilities.

Maintenance

Information Security has emerged vital in today’s fast moving, technically fragile business

environment. The knowledge/awareness of security measures is very critical and can’t be

compromised on. The policy has been framed to safeguard against all possible threats

(viruses, bugs, spam’s etc.) that pose a major threat to their work processes.

The security policy is a plan outlining the methods adopted to project the company’s critical

assets. This addresses the following:

1. Do not run any files without first scanning them, no matter what the file extension

(e.g. .exe, .bat, .com, .doc etc.)

2. Do not download any files from unknown sources. Do not open attachments, not even

those sent by a friend, without scanning them.

3. Do not run any program you have found on diskettes/CDs around your desk if you are

not completely sure that they are yours.

4. Please ensure that your system is scanned at least once a week with the scanning

software that is being used by the company.

STORE MANAGEMENT

In this department information regarding customer KYC (Know Your Client) a form which is

registration form to join MARWADI SHARES AND FINANCE LTD also information of

that client’s ID and password addresses, contact no. , type of product using, etc.

For this company has CIS (Customer Information System) a computer based programming

system which handle all this information with the help of this system it is easy for company

to solve query of customer like forget password. It also helpful to make be active relationship

with customers so that they can remain with the company and also helpful to generate lead or

reference which work as an advertising of Marwadi in their group.

Company keep with copy of form called KYC called (Know Your Customer) with its head

office minimum 7 years so it will be useful as and when it requires.

3.2-FINANCE DEPARTMENT

As MARWADI is a Service provider firm and it is also private company. So according to the

company policy they do not provide the financial details of the company and hence not much

information is available in this department from the company.

INTRODUCTION

Financial management is that managerial activity which is concerned with the planning and

controlling of the firm’s financial resources. It is an integrated decision making process

concerned with acquiring, financing and managing assets to accomplish the overall goal of a

business organization. It can also be stated as the process of planning decisions in order to

maximize the shareholder’s wealth.

“Financial management deals with the procurement of funds and their effective utilization in

the business.”

“Financial management comprises of forecasting, planning, organizing, directing,

Co-coordinating and controlling of all activities relating to acquisition and application of the

financial resources of an undertaking in keeping with its financial objective.”

IMPORTANCE

Financial management is all about managing expenditure within a limited budget. It is about

allocating money to the necessary items first. If after that having some money left, it must be

used to pay off the debts. If there is still some money left it can be used according to the

liking of the firm.

Finance management means management of all matters related to an organization’s finances.

Financial management is useful in determining the size of the enterprise, the composition of

assets of the enterprise, the mix of enterprise’s financing and analyzing planning and control

of financial affairs of the enterprise.

ACQUISITION OF FUNDS

The main activity of “MARWADI SHARES” is that of the Stock Broking, Commodities

trading and Demat Services. The main acquisition of firm is that of the brokerage and the

NSDL charges in the company.

UTILIZATION OF FUNDS

The utilization of fund is mainly in the salaries, miscellaneous expenses and maintenance

expenses of the branch. Company also spends lots on IT. Company believes that IT provides

competitive advantage. Company purchase many advance software for facilitates the research

department.

3.3-MARKETING DEPARTMENT

INTRODUCTION

“A market may be considered as a convenient meeting place where buyers gather and sellers

gather for exchange of goods and services.”

Market may be defined as the process of exchange between seller and buyer. It involves a

number of inter-related activities designed to plan, promote, distribute. And price a product or

service in order to meet the wants and needs of both the parties in exchange transaction viz,

consumer and producers. In short, marketing deals with identifying and meeting human and

social needs. One of the shortest definitions of marketing is “meeting needs profitably”

MARKETING SCENARIO

Segmenting means to identify the group of people who have similar needs, wants, demand.

Which helps company to determine the product portfolio. Segmenting also facilitates to provide

customize services to the customers. Proper segmenting leads company to higher productivity.

Segmenting provides competitive advantage in the market.

Indian stock market is one of the highest volatile markets in the world. Stock market fluctuates

very much in intraday season. This volatility of the market leads to loss and profit of the

investor. Normally this volatility affects the daily traders rather than long term investors.

There are many types of investors in the market like long term investors: medium term or short

term that what different type of advice for investment. Short-term investor or what we can call

daily trader wants’ tips for daily trading. MARWADI SHARES has own research department.

There are many researchers are working in this department they daily collect information

through internet, T.V., newspapers, etc. and generate daily reports investment.

MARWADI is looking for those investors who seek advice for investment for long term as well

as daily trading. MARWADI is also looking for those investors who want to study the market.

For that type of investors MARWADI provides various research reports.

Their research is based on in-depth research done in collaboration with the renowned marker-

expert Mr. Rajesh Jain. “HABIT”- our stock market research periodicals, has made sound

investing a habit with their clients.

Segmentation of Market

Market segmentation is the process of dividing / sub dividing a potential market into distinct

sub market of consumer with common needs and characteristics. Market segmentation is

done with a view to enable the organization to cater to their customers need more effectively.

Market segmentation is starting the step in applying the marketing strategy.

Purpose of Market Segmentation

To understand the varying and specific needs of the customer of the different sections.

To understand the motivation that promotes the customer to buy.

To understand the behavioral attitude and habits of different groups of customers.

To develop suitable product / services for each segment.

To understand the strategies being applied by competitors.

Characteristic of Market SegmentationMeasurable

Accessible

Differentiable

Actionable

Approaches of Market SegmentationFor segmenting a market in effective manner marketers adopt approaches: -

Mass Marketing

Target Marketing

Customized Marketing

Personalized Marketing

In Broking House, earlier the products were designed keeping in view the concept of mass

marketing. But as a competition appeared brokers are forced to design products in such away,

which will take care of, there target market or even individual’s customers. For the purpose

of marketing of broking products in India market can be segmented in a way that will take

care of customer of different sections.

Market Segmentation for purpose of Marketing Broking

Products

Agriculture Sector

Farmers

Industrial Sector

Large Industries

Medium Industries

Small Scale Industries

Trade & Commerce Sector

Whole Seller

Retailers

Transporters

Exporters

Service Sector

Self Employed

Doctors

Chartered Accountant

Lawyers

Institutions

Trust

Companies

House Hold

Salaried Persons

Pensioner

Factors Influencing Market

Demographic Factors

Psycho-graphic Factors

Economics Factors

Technological Changes

Legal, Cultural, Political Factors

Demographic Factors

Population Growth Rate

Level of Literacy

Social lass

Psycho-graphic FactorsLife Style

Personality

Values

Economics FactorsLevel of Economics Activity

Income

Level of Consumption

Pattern of Saving and Investment

Technological ChangesProduction Process

Changes in needs and preferences

Offering offered

Legal, Cultural, Political FactorsEmergence of New Competitors

New Products

Changes in Political System / Legal System

Above Said factors influence market. Marketers should thing of the above said factors before

developing marketing strategies and should develop strategies in such a way, which will take

care of all the changes, which will occur due to the above factors. In recent time’s

technological changes / products are effecting marketing of broking products in a great

manner, so marketer should take care of this while developing strategies for marketing of

broking products.

TARGET MARKET

Target market is the second step after segmentation. In MARWADI company try to provide

customize information to their customers. They are focusing on those customers who are ready

to invest in the market and want trading and investment indication. Company provides tips to

their customers by various mediums like through chat, SMS, mail, etc. Clients also call for

query. Intraday trading, the investors who do not want to invest but want to earn profit in very

short period through intra-day trading are getting daily trading advice for research dept. As soon

as clients receive call immediately they pick up this stock & sell it at higher level by that way

they earn profit.

POSITIONING

MARWADI are providing enough reward for your investment. Company claims that they are

providing best advice for investment. For that company is very much conscious about the

research department which is handled by the marketing expert Mr. Rajesh Jain. Company

focuses on client’s specific product.

While Marwadi offers recommendations for investment company observes the investors ability

to take risk, their investment objectives, personal financial situation, investment time horizon.

AMC

Individual Agents Banks and Large Distribution Companies Institutional

Brokers

Corporate Investors

Retail Investors HNIs

Customer Segments

CHANNEL OF DISTRIBUTION

DISTRIBUTION MODELMARWADI SHARES use multi-level marketing channel for investment product distribution.

MARWADI provides franchisees at the various regions. Broker works intermediaries between

investors and company. Company also opens its branches in the key centers. Company has both

forward and backwards flow of activity through the channel. Company distributes stationary,

brokerage and information forward to its sub-broker. The sub-broker sends filled forms, queries,

and amount of investment, etc. back to the company.

Allover 475 franchises and over top 25 broking houses more than 650 employees strength,

serving about 1.35 lakh clients and serving more than 1100 pin codes.

PRICING POLICY

Pricing policy of the company is one of the most important functions of the management.

Pricing has its own importance in the marketing.

At MARWADI SHARES the price of the product is decided by the top management.

Marwadi product pricing are competitive for their competitors.

3.4-HUMAN RESOURCE DEPARTMENT

Today every company understand the importance of HR Dept. in the org whether it is big or

small. Every organization need human effort to convert in put into output or in other words we

can say to done the organization activity we need human power. A good Human Resource Dept.

leads to higher productivity and higher profitability. HR Dept. facilitates right number of people,

at right time, and right person to complete the tasks.

Anagram has also HR Dept. who plays a key role in the organization to provide

People for various jobs. HR manager is continuously in contact with the various depts.

According to the department needs he appoints the person for the jobs. HR dept. has the

following functions.

Manpower Planning

Manpower planning is the basic function of HR. In the manpower planning HR dept

Recognize the need of the employee at the various levels in the organization. In Anagram the

manpower planning is take the shape with the help of various dept. head, or he key person in

the dept. Dept. head or the key person arrange meeting with the HR manager. They are

discussing about which type of person they want for their dept.

Manpower planning also done on the basis of the future plan of the company if the company

has future expansion plan according to it manpower planning has been done. For example

how many new branches of the company are likely to be open in this year? To open a new

branch minimum there are three to four people are required including the branch manager.

No doubt if the branch opened in big city manpower will be more. So according to branch

size manpower planning is done.

Recruitment

Recruitment is the first step of hiring people. After manpower planning completes

recruitment process is started. In Anagram recruitments are done on various methods.

Following are the source of the recruitment.

Through consultant

Direct from colleges

Referent of the employees

Through jobs websites

Advertising in leading newspapers

Anagram usually takes the help of various HR consultants. At the same time they are

recruiting from the colleges like som-lalit institute of managements, B.K.School of

management, H.L.Inst. Of Management Etc.

Selection:

Selection is the second step for hiring people. In selection the application which are come

into the recruitment are sort out here. The candidates, who are not matching with the job

profile, are rejecting here. Then from appropriate candidates are called for interview. In

interview there are different persons sit to take interview, In fact a panel is made for it. The

panel includes the HR manager, respective dept head, one expert of their field, & some time

board member for the higher-level job in the org. When the candidate selected into the

interview, then he has to provide various references. HR manager checks the references if

they are adequate, he sends the final order to the candidate. Then candidate has to sign the job

agreement.

Training:After selection when he comes to join the organization, Marwadi arranges the induction

program for the new employees. By that way new person come to know the organization

people, its environment, and organization culture. New person tries to adjust with the

organization environment. The introduction with the board of directors, head of the dept,

superior, and colleagues are the part of the induction program. The purpose of the induction

program is to simply introduce the new person to his/her working environment.

Marwadi believes in on job training new employees directly go to their job. When he/she

faces any difficulty they can ask their superior or their colleagues. By that way anagram

believes employees learn fast and get the practical experience of the job helps to improve the

knowledge. It facilitates employee to adjust with the working condition quickly.

Performance Appraisal:Performance appraisal is the important function in HR. In anagram there is annual program is

arrange for the performance appraisal of the employee. For performance appraisal there are

certain formats in anagram. The appraisal is done on the basis of employee’s different

attributes, his/her superior assessment their colleagues opinion, and their behavior in the

organization. Appraisal is also done by regional basis. Sometime board of directors assesses

the top manager’s performance. The performance appraisal concerned with the employee’s

initiative at the work place, his/her attendants, teamwork, and his /her behavior with his

superior and their colleagues.

Latest practices:

With the changing business environment any business organization has to adopt the change.

As the new HR theory and principles are coming anagram also modify the recruitment policy.

Now they are focused on the “knowledge assessment of employees”, how much employee is

aware from the latest knowledge. Anagram considers the experience and knowledge equally.

3.5-PRODUCTS

COMMODITIES EQUITY

http://images.google.co.in/imgres?imgurl=http://www.smith.umd.edu/smithbusiness/spring2005/images/cover.title.gif&imgrefurl=http://wearewealthy.blogspot.com/2008/01/mastering-mutual-funds-lifecycle-mutual.html&usg=__37S-SeCsa7Pw5VQx8rmke3L-o78=&h=367&w=350&sz=88&hl=en&start=2&tbnid=9yqWltN4bq3daM:&tbnh=122&tbnw=116&prev=/images?q=mutual+fund+segment&gbv=2&ndsp=20&hl=en&sa=N

It is absolutely necessary for any company to have distinct product in the portfolio. This

strategy provides competitive advantage. Today market is become

Global so it is increased competition in the market. A client wants different service together

so company offers different services to client.

In this competitive market MARWADI SHARES offers various products together.

MARWADI provides product like trading of equity shares, F & Os, and commodities.

1. EQUITY AND F & O SEGMENT

Retail

Institutional

2. COMMODITIES SEGMENT

Retail

Corporate(Institutional)

3. DEPOSITORY PARTICIPANT

For Equity

For Commodities

4 MUTUAL FUND:

EQUITY AND F & O SEGMENT

In this segment company offers trading facility for equity and future & options (F &

O). For the trading purpose a client has to open a trading account in the company. After

opening a trading account in the company, company provides the particular ID for trading.

When client want to buy or sell the stock he/she has to give ID to the operator. According to

ID operator buy or sell the stocks. A client can contact operator through mobile or telephone.

Client also gives prior instructions for the transaction. When the transaction take place same

day in the evening the bill of the contract generates.

In this segment, there are two types of accounts:

1. Retail Investors

2. Institutional Investors

1. Retail Investors

Retail Investors means individual investors who are not comes for any organization they

transact at their own.

2. Institutional Investors

Institutional Investors include any firms, banks, companies, and trust. In short any a

person who invest on behalf of any organization or invest on the name of the organization

called institutional investors.

COMMODITIES SEGMENT

Commodities market is booming right now. Commodities market includes different types of

commodities like guar, cotton, aluminum, metal, copper, zinc, etc. There are basically two

type’s exchanges for trading of commodities one is MCX (Multi Commodities Exchange Of

India Ltd) and second is NCDEX (National Commodities and Derivatives Exchange of

India). MARWADI commodity brokers pvt. ltd. (MCBPL) is a member of both the

exchanges. At MCBPL, we note only have sound global information and knowledge based

but also combined this with excellent local knowledge when it comes to commodities. With

their extensive national wide presence and network, their product and market knowledge

encompasses diverse commodities and markets.

DEPOSITORY PARTICIPANT

Depository participant is described as an agent of depository. They are intermediaries

between the depository and the investors. MARWADI SHARES in the DP member of NSDL

(National Securities Depository Ltd). So MARWADI is the recognized member of the

NSDL. In MARWADI client can open their demat accounts. Company opens demat of equity

as well as commodities.

SERVICES OFFERED BY THE COMPANY

Cash Market Derivative trading

Internet trading

Commodity

broking Initial Public Offerings

Portfolio Management Services

1. STOCK BROKING

CASH MARKET:

Marwadi facilitates buying and selling of securities on National Stock Exchange, Mumbai.

They try and make it seamless for their customers by offering the services to transfer

securities through their Demat services. Customers are also offered the facility of trading

through --, thereby making it a doorstep taking our service to customer's doorstep. They offer

integrated -- services by bundling all peripheries services together thereby making securities

broking a seamless experience

DERIVATIVE TRADING:

Derivatives are one of the most complex instruments. Delivery contracts, stating what is to be

delivered for a fixed priced at a specified place on a specified date. These contracts were

undertaken between farmers & merchants to element the risk arising out of uncertainty future

prices of grains. A derivative is a contract whose value is derived from value of another

assets, known as the underlying, which could be a share, a stock market index, and interest

rate, a commodity or a currency.

erivatives are very similar to insurance. Insurance protects against specific risks, such as fire,

floods, theft & so on. Derivatives on the other hand take care of market risks –volatility in

interest rates, currency rates, commodity prices, & share prices. Derivatives offer a sound

mechanism for insuring against various kinds of risks arising in the world of finance.

INTERNET TRADING:

The organization also provides the facility of trading through Internet. Now days it is the

fastest and the rapid form of dealing in all the sectors. The company provides the facility of

net trading through:-

Application based &

Software based. Systems

Company is planning to start the Browser based trading in short span.

Marwadi helps their customer in knowing the complete details about their Bank, Demat and e-

broking account which will be available to the customers 24 hours a day through the Internet.

Also the customer will be able to access all the details regarding their orders and trades, trading

conformation, financial statements, transaction statements, holding statements, online.

Moreover, NRI, Overseas corporate bodies and FIIs, including all Indian Residents/corporate

can avail this facility from any corner of the world .

2. COMMODITY BROKING:-

Sug

Commodity market in India is growing. India, being an agro-based economy, has market

for most of the agro-based commodities. India is the largest consumer of gold in the world,

which implies a huge market for the yellow metal. India has huge spot markets for all these

commodities. Indoor for huge market for Soya, Ahmedabad for castor seed and

Surendranagar for cotton etc.

India has a long history of commodity futures trading, extending over 125 years. In mid

1960s, due to wars, natural calamities and consequent shortages, futures trading in most

commodities were banned. After liberalization policy GATT agreement in the early nineties,

the government realized the need for futures trading to strengthen competitiveness of Indian

agriculture and the commodity trade and industry

Commodity derivative market:

As name suggest, commodity derivatives markets trade contracts for which the underlying

asset is a commodity. We can sub divided in following meaner

A. Agricultural commodity like wheat, soybeans, rapeseed, cotton etc.

B. Precious commodity like gold and silver etc.

C. Other metal commodity like steel etc.

D. Energy commodity like coal etc.

Organized market:

In organized market all the transaction done through structure form so it is safer and more

convenient. In organized derivative commodity market there are well known exchanges such

as NCDEX, MCX and etc.

Marwadis are providers of broking services in Capital Market. With the opening up of

commodities sector and the consequent felt need to provide price stabilization services, the

Govt. mandated host National level Commodity Exchanges, as part of our effort to broad

base services to our customers; we have taken membership of National level commodity

exchanges.

A new investment option is commodities. Until a few months ago this would not have made

sense, as there was no avenue for trading in commodities. Marwadis have taken the

pioneering step of bringing this to your doorstep. Good ness met historically prices in

commodities are less volatile than equities and bonds, thus providing an efficient

diversification option.

3. DEPOSITORY PARTICIPANTS: -

Marwadi were the first corporate DP in Saurashtra. As on date it services approximately

65000 clients through a well-equipped branch network. It offers online services offered by

NSDL / CDSL. They are affiliate to both NSDL and CDSL in order to give optimum cost

solution to our clients keeping in view the investor’s needs. It place a high premium our

customer service and prompt reporting in order to ensure integrity of transactions. Its

customer centric schemes have been designed to address the investor’s needs relative to

element (such as trade execution dematerialization and re materialization) economical prices.

We are giving following services without any charges:

Demat Confirmation

Remat Confirmation

Rejection of Instruction

Special Transaction Statement as our desire

Allotment of Shares under IPO

Every quarter we send the Ledger to each Client

We inmates the renewal of account

Speed - e services client without any additional charges

We are offering special retention service under which client does not need to give the trade

and charges per trade 13 Rs.

NSDL offers web-enabled facility of (1) viewing latest balances and transactions that have

taken place in the last five days and also download of the screen (through IDEAS –Internet

based Demat account statement) and (!!) submitting delivery instruction slips (in paper form)

The users of Speed-e can also monitor the status of their instructions However for availing of

these facilities both the DP and the client have to you pay up certain one time and recurring

charges.

4. IPO SUBSCRIPTION SERVICES: -

Marwadi Shares & Finance Ltd. also provides the service of subscribing IPO’s. The IPO’s of

all but the smallest of companies are usually offered to the public through an "underwriting

syndicate," a group of underwriters who agree to purchase the shares from the issuer and then

sell the shares to investors. Only a limited number of broker-dealers are invited into the

syndicate as underwriters and some of them may not have individual investors as clients.

Moreover, syndicate members themselves do not receive equal allocations of securities for

sale to their clients.

The underwriters in consultation with the company decide on the basic terms and structure of the

offering well before trading starts, including the percentage of shares going to institutions and to

individual investors. Most underwriters target institutional or wealthy investors in IPO

distributions. Underwriters believe that institutional and wealthy investors are better able to buy

large blocks of IPO shares, assume the financial risk, and hold the investment for the long term.

By their nature, investing in an IPO is a risky and speculative investment. Brokerage firms

must consider if the IPO is appropriate for individual investors in light of their income and

net worth, investment objectives, other securities holdings, risk tolerance, and other factors.

A firm may not sell IPO shares to an individual investor unless it has determined the

investment is suitable for that particular investor.

Even if the firm decides that an IPO is an appropriate investment for an individual investor,

the brokerage firm may sell the IPO only to selected clients. For example, before you can

purchase an IPO, some firms require that you have a minimum cash balance in your account,

are an active trader with the firm, or subscribe to one of their more expensive or "premium"

services. In addition, some firms impose restrictions on investors who "flip" or sell their IPO

shares soon after the first day of trading to make a quick profit. If you flip your IPO shares,

your firm may refuse to sell you other IPO’s altogether or prevent you from buying an IPO

for several months. You can often find these restrictions on the firm's website.

5. PORTFOLIO MANAGEMENT SERVICES: -

If one earns money in bagfuls, but don't have the time or inclination to manage it. If this

description fits one, do consider entrusting your money to a professional portfolio

management service (PMS). In return for a fee, portfolio managers offer to craft a basket of

stocks, bonds or even mutual funds that would fit your personal investment goals and risk

preferences.

Though a few portfolio managers offer standardized packages for a sum as small as Rs 5-10

lakh, it may take a minimum investment size of Rs 25-50 lakh to fetch you a customized

portfolio. Apart from cash, you can also hand over an existing portfolio of stocks, bonds or

mutual funds to a PMS that could be revamped to suit your profile.

PMS OR MFs:

But why should you opt for PMS instead of a mutual fund? Here are a few aspects on which

portfolio managers say they score over the standardized products offered by mutual funds:

Asset allocation: You may know what stocks, equity funds or bonds you would like

to own, but do you know how much of your savings you should allocate to each of

these? The decision on asset allocation will be crucial in determining investment

returns over the long term. With PMS, an asset allocation plan is tailor-made for you,

after a detailed check on your investment goals, savings pattern and appetite for risk.

Timing: Have you ever kicked yourself for switching your entire portfolio into

equities just before they tanked? If you have, you probably need help with regard to

timing of investments. Once you hire a portfolio manager, you can expect assistance

on when you should be investing more money into equities and when you should be

bailing out. A portfolio manager may also switch a portion of your portfolio into cash,

if he perceives a big risk to stock prices. The focus is on preserving value.

Flexibility: You are bullish on FMCG stocks, but find that equity funds have

marginal exposures to the sector. In a PMS, you can expect the portfolio manager to

accommodate your sector preferences when he invests. But don't expect to completely

dictate what stocks or sectors your portfolio manager will buy for you, as he will be

the best judge of that.

Also, portfolio managers do not have to stick to any rigid rules on what proportion of

your money will be invested in each sector or stock. They can also use liberal doses of cash

or derivative instruments to pep up your returns. Mutual fund managers have their hands tied

on these aspects by SEBI regulations.

Value added services:

Company provides various value added services to their clients:

1. Company Research Reports: based on in-depth study and analysis of a

company’s business.

2. Sectors Reports: Regular, Detailed reports covering all sectors.

3. Famous Five: Weekly selection of five companies for medium-to long term

investment.

3.6- SWOT ANALYSIS

During this training at Marwadi, I had come to know the Strengths – Weaknesses

– Opportunities – Threats for the company and it is very useful for a company to

analyze them. Therefore, the SWOT analysis is presented here and the suggestions for

maintaining strengths and removing weaknesses are explained.

STRENGTHS:

Well-maintained infrastructure.

Dedicated, Intelligent and Loyal staff.

On-line trading products.

Lowest brokerage and other charges less than. Competitors.

The best investment advice correct up to 70-90 % through dedicated

Research and reports.

Wide product range to enable the clients to choose the best alternative.

One of the best DPs in India.

A positive image in the existing clients.

WEAKNESSES:

Less awareness in the market.

Time consuming process for account opening, resolving the problems of the

customers, etc.

Service quality is not maintained accordingly how they are promoted.

OPPORTUNITIES:

Slope of stock market towards delivery based transaction.

Large potential market for delivery and intra-day transactions.

Open interest of the people to enter in stock market for investing.

Attract the customers who are dissatisfied with other broker & DPs.

An indirect opportunity generated by the market from its bullishness.

Large untapped market in the Saurashtra region of Gujarat.

THREATS:

Decreasing rates of brokerage in the market.

Increasing competition against other brokers & DPs

Poor marketing activities for making the company known among the

customers.

A threat of loosing clients for any kind of weakness of the company.

Loosing the untapped market with the entry of the

Competitors.

CHAPTER-4

4.1-TASK ASSIGNED

Define commodity Commodity Derivative Commodity exchanges:-ICX MCX NCDEX

There is 2 types of trading involved

Future Trading

It involve national broker,local broker like Marwadi share & finance ltd. And his client are like HUF etc.

Physical Trading

It involve APMC(Agriculture product market committee)mundi,National mundies they supply to wholeseller and wholeseller supply to retailer and retailer to household

Forward market

It is the informal over-the-counter financial market by which contracts for future delivery are entered into. Standardized forward contracts are called futures contracts and traded on a futures exchange

.

https://en.wikipedia.org/wiki/Futures_exchange

https://en.wikipedia.org/wiki/Futures_contract

https://en.wikipedia.org/w/index.php?title=Forward_contracts&action=edit&redlink=1

https://en.wikipedia.org/wiki/Financial_market

https://en.wikipedia.org/wiki/Over-the-counter_(finance)

To visit different web site of Global exchanges

COMEX (Commodities Exchange) NYMEX(New York Mercantile Exchange) CBOT(Chicago Board of Trade) LME(London Metal Exchange) Kitco.com Bloomberg.com Foxstreet.com Moneycontrol.com Netdania.com ACTION

Govt. of India

Financial Ministry

Forward Market Commisson

All Exchanges like MCX NCDEX NMC

National broker Local borker

client

4.2- RESEARCH METHODOLOGY

Research is a careful investigation or inquiry especially through search for new facts in branch of knowledge: market research specifies the information. Required to address these issues: designs the method for collecting information: manage and implements the data collection process analyses the results and communicates the finding and their implications.

Research problem is the one which requires a researcher to find out the best solution for the given problem that is to find out the course of action, the action the objectives can be obtained optimally in the context of a given environment.

RESEARCH DESIGN

A framework or blueprint for conducting the research project . It specifies the details of the

procedures necessary for obtaining the information needed to structure and/or solve research

problems. A good research design lays the foundation for conducting the project. A good

research design will ensure that the research project is conducted effectively and efficiently.

Typically, a research design involves the following components, or tasks:

Define the information needed.

Design the research.

Specify the measurement and scaling procedures.

Construct and present a questionnaire or an appropriate form for data collection.

Specify the sampling process and sampling size.

Develop a plan of data analysis.

Data Collection: - The objectives of the project are such that both primary and secondary data is required to achieve them. So both primary and secondary data was used for the project. The mode of collecting primary data is various magazines, books, newspapers, & websites etc.

Primary Data: The primary data was collected by means of questionnaire and analysis was done on the basis of response received from the customers. The questionnaire has been designed in such a manner that the consumer’s satisfaction level can be measured and consumer can enter his responses easily.

Sample size –

100 customers were selected

Sampling Unit –

Ahmadabad

Sampling Technique –

Convenient sampling.

Analysis and Interpretation

After the data collection, it was compiled, classified and tabulated manually and with help of computer. Then the task of drawing inferences was accomplished with the help of percentage and graphic method.

Q. 1 Do you aware with exchange trade mechanism ?

Frequency PercentYes 15 10.0

NO 85 85.0

Total 100 100.0

85%

15%

YesNo

Very few people heard of commodity market. Vast majority of people are unaware about Commodity Market.

Q. 2 Which of the following exchange do you aware of ?

Frequency PercentMCX 11 11.0

NCDEX 2 2.0

NMCE 2 2.0

Other 85 85.0

Total 100 100.0

11%2%2%

85%

Exchanges

MCXNCDEXNMCESystem

Very few people heard of commodity exchanges. Vast majority of people are unaware about Commodity exchanges.

Q.3. Have you traded anytime in the any of above exchange ?


NO 85 85.0

Total 100 100.0

15%

85%

Trade

YesNo

Q. 4.If yes, what product ?

Frequency PercentBullions 6 6.0

Metals 3 3.0

Agriculture 1 1.0Energy 1 1.0

Other 4 4.0

Total 15 15.0

System 85 85.0

100 100.0

6%3%

1%1%

4%

85%

Product

BullionsMetalsAgricultureEnergyOtherSystem

Above data revels that majority of commodity investors like to invest in Bullion (Gold & Silver).

Q.5.What is your experience with commodity market ?

Frequency PercentLess than 1 year 8 8.01 to 5 year 5 5.0

5 to 10 year 1 1.0

More than 10 year 1 1.0Total 15 15.0

System 85 85.0

100 100.0

8

5 11

85

Experience

less than 1 year1 to 5 year5 to 10 yearMore than 10 yearsystem

After asking about the duration of attachment I know that most of investor is connected with commodity market about 1 to 5 years but not satisfied change in present figure. so first of all try to aware the investor about commodity.

Q.6.Are you satisfied with Exchange trade mechanism ?

Frequency PercentHighly Satisfied 1 1.0

Satisfied 11 11.0

Indifference 3 3.0

Total 15 15.0

System 85 85.0

100 100.0

1

11

3

85

Satisfaction

Highly SatisfiedSatisfiedIndifferenceSystem

Very rare people doing trade through commodity exchange, but those people who doing trade through commodity exchange are mostly satisfied.

Q.7. In which of the company you would like to deal more and more time?

Frequency PercentMarwadi 1 1.0

Motilal Oswal 3 3.0

Others 11 11.0

Total 15 15.0

System 85 85.0

100 100.0

1

3

11

1.2

Compnay

MarwadiMotilal OswalOthersSystem

Q. 8. Are you planning to buy commodity through exchange mechanism in near future ?

Definitely will buy 2 2.0will buy 3 3.0

Indifferent 4 4.0

will not buy 90 5.0Definitely will not buy 1 1.0

Total 100 100.0

2 34

90

1

Definitely will buywill buyIndifferentwill not buyDefinitely will not buy

Mostly people do not want to trade through exchange mechanism and they do not even have plan to trade. so it needs to make more awareness among investors about exchange mechanism.

Q.9 Are you aware about hedging ?


NO 1 1.0

Total 15 15.0

System 85 85.0

100 100.0

141

85

Hedging

YesNoSystem

Mostly people who doing trading through exchange mechanism are aware about hedging.

Q.10 Have you ever done Badla trading(Arbitrage) ?


NO 9 9.0

Total 15 15.0

System 85 85.0

100 100.0

6

9

85

Arbitrage

YesNoSystem

Q.11.Are you interested in understanding Hedging or Badla trading ?


NO 3 3.0

Total 15 15.0

System 85 85.0

100 100.0

12

3

85

YesNoSystem

(12) Occupation:

Frequency PercentJewellers 9 9.0

Others 6 6.0

Total 15 15.0

System 85 85.0

100 100.0

13%

25%

63%

OCCUPATION

Income Level1,00,000-2,00,000Total

13 income

Frequency PercentIncome Level 3 3.0

1,00,000-2,00,000 6 6.0

2,00,000 – 5,00,000 6 6.0

Total 15 15.0

System 85 85.0

100 100.0

3 6

6

85

Income

<100000

100000-200000

200000-500000

14 Age

Frequency Percent18-21 1 1.0

22-34 10 10.0

35-44 3 3.0

45-54 1 1.0

Total 15 15.0

System 85 85.0

100 100.0

1%

10%

3% 1%

85%

AGE

18-2122-3435-4445-54System

4.3- questionnaire

QUESTIONNAIRE

Q. 1 Do you aware with exchange trade mechanism ?

Yes No

Q. 2 Which of the following exchange do you aware of ?

MCX NCDEX NMCE

Other (Please Mentioned)..................................................................................

Q.3. Have you traded anytime in the any of above exchange ?

YES NO

Q. 4.If yes, what product ?

Bullions(Gold and Silver) Metals (Copper, Lead)

Agri(Soya Bean, Wheat) Energy(Crude oil, Gasoline)

Other (Please Mentioned)..................................................................................

Q.5.What is your experience with commodity market ?

Less than 1 year 1 to 5 year

5 to 10 year More than 10 year

Q.6.Are you satisfied with Exchange trade mechanism ?

Highly Dissatisfied

Dissatisfied Indifference Satisfied HighlySatisfied

Q. 7. Are you planning to buy commodity through exchange mechanism in near future ?

Definitely will buy will buy Indifferent will not buy Definitely will not buy

Q.8 Are you aware about hedging ?

Yes No

Q.9. Have you ever done badla trading(Arbitrage) ?

Yes No

Q.11.Are you interested in understanding Hedging or Badla trading ?

Yes No

Personal Information:

Name: __________________________________________________________

Area ____________________________________________________

Phone No: (M): ____________________ (R): ___________________

E-mail: ____________________________________________________

Age: 18-21 □ 22 - 34 □ 35 – 44 □ 45 - 54 □ 55 – 64 □ < 65

Occupation:□ Jewellers □ Agriculture □ Metal Others

Gender: □ Female □ Male

Education: □ Under Graduate □ Graduate □ Post Graduate

Income Level (Yearly): □ <100000 □ 1,00,000-2,00,000 □ 2,00,000 – 5,00,000 □ >5,00,000

4.4-SIP LEARNING

Task 1

Read about the commodity gold at MCX

Learning

India is world`s largest market for gold jewellery. London is the world`s biggest clearing house. Trading session Monday to Friday 10 a.m. to 11:55 p.m. Maximum order size 10 kg. Different types of gold are there like Gold m, Gold Petal. Factors influence the market is Hedging interest of producers and Macroeconomic factor such as US $,interest rate.

Task 2

Attended meeting with my guide

Learning

Mr. Bhavik sir told me about what question to be add in questionnaire like do you with

exchange trade mechanism, if yes then which of the following exchange you prefer like

MCX, NCDEX, NMCEIL. What products have you traded on this exchange like Bullions,

Agro, Metals. What is your experience with commodity market. In which of the company

you would like to deal more and more time? like Marwadi, Kotak street , India bulls

Task 3

Attended meeting with my guide

Learning

Discussed about from where I can get investors like for for agri commodity, 25 manak

chawk.Some question regarding like are aware about Hedging Bullions 25 shops at C.G.

road, 25 APMC market. Have you ever done Badla trading. Badla trading is also known as

arbitrage.

Task 4

Observe trading terminal SLearning

I learn about how to dill in trading terminal

Task 5

Prepared questioner about customer view about commodity market learning

Learnt different makenitsom about commodity market

Task 6

Visit jewelers on c.g road and other area

Meet different different people and and ask question about commodity market and commodity trading

4.5- CONCLUSION

This Project Report is undertaken at “MARWADI SHARES AND FINANCE LTD” as a

part of the P.G.P.G.B.M programme. Marwadi is mainly involved in the brokerage business.

Company offers various services to their clients like Trading in BSE and NSE. Company also

provides trading in NCDEX and MCX. Marwadi is also Depository Participant of NSDL.

This project contains the details about the Marwadi and its functioning. Marwadi is spread all

over India. Marwadi has around 475 franchises and 25 top broking houses. This project

covers the broking industry growth and its future ideas. Project contains the concept of the

capital market. I learnt many things through this project which I did not know before. I came

to know that how trading is done, how to buy or sell the shares, how to fill up the forms, what

are the necessary formalities and so on.

4.6-BIBLIOGRAPHY

Books:

1. Work book of AMFI mutual fund testing program.

2. Kotler P. (2003). Marketing Management, New Delhi: Tata Mc Grow Hill, 11 th

edition.

3. NCFM book of Capital Market.

4. Times Of India and Business Standard newspapers.

5. Research Methodology book of C.R. Kothari.

WEBSITES:

www.marwadionline.com

www.google.com

www.amfiindia.com

www.moneycontrol.com

www.stockmarket.com

www.bseindia.com

organizational study (2).docx

Documents

project study

project deal

project guide

company analysis

study of financial market

timely completion of

fluctuated market

theoretical knowledge