Professional Documents
Culture Documents
Rudrakshi SIP
Rudrakshi SIP
Indore
(An Autonomous Institution Established in 1994, Accredited with Grade ‘A++’ NAAC(UGC) ISO
9001: 2008 Certified Institute, AICTE / UGC Approved Programs affiliated to DAVV, Indore)
MBA IB Semester - II
Scholar no. - 1121412937
STUDENT DECLARATION
I also confirm that the report is prepared only for my academic requirements and
not for any other purpose. It must not be used with the interest of opposite party of
the corporation.
I also hereby declare that I have read and understood the evaluation method (rubric) of
summer internship project.
…………………………..
RUDRAKSHI SAPRA
(Signature)
…………………………..
DR. ABHISHEK PRATAP SINGH SACHAN
Prestige Institute of Management and Research,
Indore
ACKNOWLEDGEMENT
I would like to thank DR. YOGESHWARI PATHAK (DIRECTOR OF PIMR) for her
guidance and moral support in our academic persuasion.
I would like to thank MANDOT SECURITIES PVT. LTD., INDORE and specially
MR. VIJAY JAIN (INTERNSHIP MENTOR) for providing me the required
knowledge, information and support.
I would like to extend our heartfelt gratitude to CS DR. PRATIMA JAIN (FACULTY
MENTOR) for her guidance throughout the project, without her support and
cooperation I would have failed in my endeavors and targets in this project.
Last but not the least; I would like to thank all our friends for their valuable support during the
project directly and indirectly.
Indore
7 Appendices 33
8 References 34
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.
The Securities and Exchange Board of India (SEBI) is the authorized body, which regulates the
operations of stock exchanges, banks and other financial institutions. The past performances in
the capital markets especially the securities scam by Harshad Mehta has led to tightening of the
operations by SEBI. In addition the international trading and investment exposure has made it
imperative to better operational efficiency. With the view to improve, discipline and bring
greater transparency in this sector, constant efforts are being made and to a certain extent
improvements have been made.
1. STOCK-BROKERS
A broker is an intermediary who arranges to buy and sell securities on behalf of the clients (The
buyer and the seller).
According to Rule 2 of SEBI Rules 1992, a stockbroker means a member of a recognized Stock
exchange or stock exchanges of which he or she is admitted as a member.
Stock market transactions are carried out on computerized systems and deals are recorded for
inspection at any time.
➢ Some brokers act only as dealers (client investment managers) while others are
principally advisors (equity sales advisors).
➢ Some brokers provide services for portfolio management and constantly review
Investments in the light of trends and developments in the market.
➢ Securities brokers work on behalf of firms with private clients to understand the
investment, plans and objectives of the client i.e. expectation for returns and
interest in risk taking. They are representatives of brokerage firms and execute
orsers to buy and sell securities. They are equipped with both knowledge and
experience to give advice on the sale and purchase of scrips and management of
financial investments.
➢ The financial services in firms’ concerns pre-sales, sales and after sales services.
These firms have departments to manage the sales and trading for the owners of
securities, investment banking for firms and the government for the issue of
securities and capital markets which form an essential arm for trading activities.
□ Stock Broking Analyst – Investment Analysts work with firms which provide advice on
Buying and selling of shares and also with those firms which have funds to be managed. Fund
Managers in merchant banks, insurance and pension funds are involved with huge investments
made by millions of investors. The funds are eventually disbursed as insurance claims, pensions
etc. They are specialized financial advisors who provide advice on the how and where of details
concerning investment. Investment Analysts study the company’s annual report; visit the
organization, interview senior executives to assess statistical information, profits and import and
export figures for the industry as a whole. Institutional analysis involves studying the entire
2. TRANSACTION CYCLE
Placing Order
Decisions to Trade
Trade Execution
Funds or Clearing of
Securities Trade
Settlement of
Trade
A person holding assets (Securities/Funds), either to meet his liquidity needs or to reshuffle his
holdings in response to changes in his perception about risk and return of the assets, decides to
buy or sell the securities. He selects a broker and instructs him to place buy/sell order on an
exchange. The order is converted to a trade as soon as it finds a matching sell/buy order. At the
end of the trade cycle, the trades are netted to determine the obligations of the trading members
‘securities/funds as per settlement cycle. Buyer/seller delivers funds/securities and receives
securities/funds and acquires ownership of the securities. A security transaction cycle is
presented above.
MAJOR PLAYERS IN THE INDUSTRY
• Zerodha
• Upstock
• Angel Broking
• ICICIdirect
• Groww
• 5Paisa
• HDFC Securities
• Kotak Securities
• Sharekhan
• Motilal Oswal
• Axis Direct
• SBI Securities
• IIFL Securities
• Geojit
• Edelweiss
• SMC Global
• Alice Blue
• Paytm Money
• Religare
• Reliance securities
• Arihant Capital
• Swastika Invest mart
• Anand Rathi
• Karvy
• Nirmal Bang
INDUSTRY ANALYSIS
1. SUPPLIERS
NSDL & CSDL are the regulatory bodies for Depository Participants like SSKI, SHCIL,
ICICIdirect.com, etc. Also these regulatory bodies have got an upper hand as the
bargaining power stock broking houses like SSKI, etc. would be less.
▪ NSE & BSE are playgrounds where common an investor trade through stock
broking houses, for which they have to take permission from NSE/BSE.
▪ NSE & BSE are under the purview of SEBI, that’s why stock broking houses like
SSKI, have low bargaining power. But here there is one advantage that NSE/BSE
have i.e. they cannot go for forward integration.
▪ MCX & NCDEX are stock exchanges which trade in commodities and derivatives.
Here again stock broking houses have to follow rules and regulation of the same.
▪ Web maintainers are companies which maintain web sites & technical aspects of
the same. Here stock broking houses like SSKI can have more bargaining power
due to tough competition among web maintaining companies.
▪ Web maintainers are companies who make and maintain software’s for stock
broking houses. If say for example stock broking houses switches over to other
web maintainers then that company cannot understand the mechanisms of
software’s. So it is quite high switching cost.
2. BUYERS
▪ There are various types of investors who trade through stock broking houses like
SSKI, which includes investors like small investors, medium net worth investors,
Business partners, institutional investors and mutual fund companies.
▪ Here the bargaining power of stock broking houses depends on how big the
investor is.
▪ So here we can say that bargaining power of stock broking houses is high in case
of small investors & HUF.
▪ While the bargaining power is moderate in case of HNI (High New Worth
Investors)/MNI’s (Medium Net worth Investors) and business partners.
▪ But the in case of mutual fund companies and institutional investors bargaining
power is less.
▪ There is competitive buzz in stock broking industry; competitors are offering low
brokerage and best services with added feature. So switching cost is pretty much
less. So the buyer can easily switch over to competitors product.
3. ENTRY BARRIERS
▪ Huge Capital: - Capital is necessary not only for fixed facilities but also for
customer’s credit and absorbing start up losses. To start a stock broking house, one
needs huge capital for technology up gradation and skilled manpower.
▪ Technology: - Technology for stock broking houses is life saving device. Stock
broking requires huge capital to make their products user friendly, which in turn
requires capital to employ skilled manpower. Thus, technology could be one of the
entry barriers.
▪ Experience curve: - The core competency in this industry is the services which
are provided to the end-users and the research based activities which includes
“TIPS”, fundamental as well as technical script analysis. Also the most important
thing which helps already established firms is-“TRUST” this is very difficult for
new companies to imitate.
▪ Network: - The “Reach” to the customer is the key factor in the industry. The
network of the companies like Angel, Motilal Oswal, Angel Broking, and ICICI is
very efficient and spreader all over India. It will take time for a new entrant to
establish such a huge network (e.g. Marwari), which say that,” Network can come
up as most difficult entry barrier to overcome.”
▪ Expected Retaliation: - Whenever a new player comes in the industry, the old
companies have an option to reduce the prices of their product. This kind of
practice is called expected Retaliation which is also possible in this industry in
terms of less brokerage rates and reduced account opening charges. E.g. before the
entry of so many mew companies, Angel Broking was having two types of
accounts viz. speed trade speed trade plus, which were costing 1000 & 1500
account opening charges respectively. But due to competition, they have come up
with only one account i.e. speed trade plus with the account charges of Rs.1000.
4. COMPETITORS
▪ The company is facing the competition from local as well as national level
players. The local players provide facility for off-line trading while the national
player’s likeICICIdirect.com and Kotakstreet.com, HDFC Security provides
online trading services.
▪ There are also other big names like India bulls, Motilal Oswal, 5paisa and
Marwari encircles the company from both the sides by providing online and
offline trading with competitive services.
5. POTENTIAL ENTRANTS
▪ The potential entrants in like Investment, Jeojit and Cipher which are coming in
near future to Rajkot City.
▪ Nationalized banks are also thinking to enter in this field by tying up with
broking houses.E.g. Bank of Baroda.
6. SUBSTITUTES
▪ Here substitutes are such instruments which can be used instead of investing in
shares.
▪ The instruments like Bank FD, insurance, mutual funds are the substitutes.
▪ If the use of this instruments increase this may be disadvantage for the stock
broking houses.
▪ The companies and banks which are having these instruments can plunge into
this industry.
BSE (THE STOCK EXCHANGE OF MUMBAI)
The stock exchange, Mumbai, popularly known as “BSE” was established in 1875 as “The
Native Share and Stock Broker’s Association”. It is the oldest one in Asia, even older than the
Tokyo Stock Exchange, which was established in 1878. It is a voluntary non-profit making
Association of Persons (AOP) and is currently engaged in the process of converting itself into
demutualized and corporate entity. It has evolved over the years into its present status as the
premier Stock Exchange in the country. It is the first Stock Exchange in the country to have
obtained permanent recognition in 1956 from the Govt. of India under the Securities Contracts
(Regulation) Act, 1956.
The Exchange while providing an efficient and transparent market for trading in securities, debt
and derivatives upholds the interests of the investors and ensures redressed of their grievances
whether against the companies or its own member-brokers. It also strives to educate and
enlighten the investors by conducting investor education program and making available to them
necessary informative inputs.
A Governing Board having 20 directors is the apex body, which decides the policies and
regulates the affairs of the Exchange. The Governing Board consists of 9 elected directors, who
are from the broking community (one third of them retire ever year by rotation), three SEBI
nominees, six public representatives and an Executive Director & Chief Executive Officer and a
Chief Operating Officer.
NSE (NATIONAL STOCK EXCHANGE)
NSE was incorporated in 1992 and was given recognition as a stock exchange in April 1993. It
started operations in June1994, with trading on the Wholesale Debt Market Segment.
Subsequently it launched the Capital Market Segment in November 1994 as a trading platform
for equities and the Futures and Options Segment in June 2000 for various derivative
instruments.
NSE has been able to take the stock market to the doorsteps of the investors. The technology has
been harnessed to deliver the services to the investors across the country at the cheapest possible
cost. It provides a nation-wide, screen-based, automated trading system, with a high degree of
transparency and equal access to investors irrespective of geographical location. The high level
of information dissemination through on-line system has helped in integrating retail investors on
a nation-wide basis. The standards set by exchange in terms of market practices, products,
technology and service standards have become industry benchmarks and are being replicated by
other market participants. Within a very short span of time, NSE has been able to achieve all the
objectives for which it was set up. It has been playing a leading role as a change agent in
transforming the Indian Capital Market to its present form. The Indian Capital Markets are a far
cry from what they used to be a decade ago in terms of market practices, infrastructure,
technology, risk management, clearing and settlement and investor service.
ABOUT THE ORGANISATION
PERSONS
BEHIND
➢ Brief Profile
➢ We offer
▪ Currency Derivatives
▪ IPO Investments
▪ Insurance Services
▪ Online/Mobile Trading
1. Started From Ground Level – Our biggest strength is that we started our broking
business from ground level, as a Sub-Broker and then took membership; hence we
understand the need of our clients and our business partners very well.
4. Quality Market Updates – Wide range of daily, weekly & special market updates.
5. Use of Advance Technology – Mandot Securities believes that technology is the key to
provide efficient, timely and quality services to clients, that’s why we use the latest and
best hardware & software technology to ensure uninterrupted services.
6. Trading Limits – We provide sufficient trading limits in all segments with trained dealer
support.
8. Wide Range of services under one Roof- We are offering Equities, Equities Derivatives,
Currency Derivatives, Investment Advisory Services, Depository Services,
IPO, Mutual fund, Insurance etc all under one name. We have best Support to customer
24/7 hours.
▪ To provide our clients with in-depth research and investment facilities under one roof.
▪ To understand investor’s needs and to provide a financial solution best suited to them
with a view to maximize their long term financial gains.
BUSINESS PHILOSOPHY
VALUES
▪ Integrity
▪ Teamwork
▪ Quality Mindset
▪ Service Orientation
MILESTONE
▪ In 2015 become Member of NSE & BSE under F & O Segment , Currency Segment
& Cash Segment with in 6 month from Date of Incorporation
▪ We are having wide Network with our Branches and Authorized Persons across India.
▪ Indore
▪ Rajkot
▪ Ratlam
▪ Neemuch
▪ Mumbai
OBJECTIVES
▪ Providing an adequate environment to ensure the interaction of supply and demand forces
for trading in securities, according to the clear, proper and fair trading practices.
▪ Raising the awareness of investing in the financial markets, and developing the
knowledge related to financial markets, and the services provided by the ASE Company.
ORGANISATION STRUCTURE
DEPARTMENTAL DISCRIPTION
Finance Department:
The finance department is also responsible for management of the organization's cash flow and
ensuring there are enough funds available to meet the day-to-day payments. Where there are cash
needs beyond the day to day working capital, the finance department is responsible for advising
and sourcing longer term financing
Recruitment Process: The HR recruiter calculates the workforce velocity and the project scope
on the basis of which it defines the requirement the organization have or not. If requirement is
found, the HR researched the skills required for the process and how much experience is required
to successfully run the project. This research is done by conducting meeting with the Team
Leads and Managers and also the Finance managers to define the budget for the new recruitment.
After having all required details, the HR posts the job over LinkedIn and other Job portals.
Productions/Operations:
In company, the operations department is responsible for processing all of the paperwork
Generated by the firms other departments, most of it having to do with “clearing” firms trades.
The department also handles all of the client’s bills and statements. The operation flow is very
simple.
Marketing Department:
In company, the major marketing tactics is decided by the manager and the team leads with 25
small refinements to it through us.
The manager through his contacts evaluate the competitors working and standings and after deep
study conducts a meeting with the team leads to discuss about the strategy and evaluate how can
we achieve the target (Target decided with CEO). Then the team leads works on their contacts
old and new and the new are assigned to us and the old one are taken by team leads because of
maintaining the relationship. We use Face book, what Sapp more as a Sales Promotion platform
to get new users engaged with our organization.
Trading Department:
The trading department is responsible for executing clients' securities orders. This department
Affects the actual purchases and sales of securities, in accordance with the clients' instructions.
In addition, the trading department tries to buy and sell securities Profitably with the firm's own
money.
STRENGTHS:
▪ Well-maintained infrastructure.
▪ Wide product range to enable the clients to choose the best alternative.
WEAKNESS:
Monday 19 July 2021 Created a collage of all interns and discuss about promoting activities
Tuesday 20 July 2021 Poster making for the company’s promotion and checking of aadhar
linking status.
Wednesday 21 June 2021 Promotion of refer and earn scheme, checking of aadhar linking
status and download of KYC Venue app
Monday 21 June 2021 Install best app and registration in it, and learn how to invest in IPO
and weekly task assigned (group coordinator)
Tuesday 22 June 2021 Discussed about secondary market
2nd Week
Wednesday 23 June 2021 Promotional video making task assigned and learnt about primary
market
Monday 28 June 2021 Discussion on demat account and its new news regarding linking of
demat with real estate
Wednesday 30 June 2021 Follow up of previous task and doubt clearing secession
Thursday 1 July 2021 Discussion of morning market highlights and connecting with
Mandot Research and discussed about documents required in
opening of dmat account
Friday 2 July 2021 Discussion of morning market highlights and learnt about the
working of Best app
Monday 5 July 2021 Refer and earn scheme promotion, discussion on last IPO
performances, learned about stop loss and calculating of profit
and loss
Tuesday 6 July 2021 Learnt about how to invest in IPO and an exercise to calculate
profit and loss with proper format
Wednesday 7 July 2021 Analysis of GR infra and Clean Science IPO and discussed
trading account
Friday 9 July 2021 Learnt calculation of brokerage with an exercise and received a
break for examination
Monday 19 July 2021 Resume with daily analysis of morning highlight of last days
and last IPO performances
Thursday 22 July 2021 Discussed about NSE, BSE and MCX, and understanding a call
of coffee day
Friday 23 July 2021 Revised Demat account opening and discussed IPO allotment of
Tatva Chintan
Monday 26 July 2021 Learnt sales training, introduction of derivatives of future and
forward brokerage and taxes on trading and investing
Tuesday 27 July 2021 Learnt about margin and lots
Assignment given – Importance of dmat and trading account
with scheme comparison with at least 5 stock brokers
Wednesday 28 July 2021 Discussion on IPO Rolex review and Glenmark Life Sciences,
learnt about trade in future
Friday 30 July 2021 Quiz on financial markets and investments, subscribe the
YouTube channel if the organization, and learnt about trade in
option
Saturday 31 July 2021 Discussed about Devyani International IPO and some tutorial
video on opening of dmat account and how to trade
Monday 2 August 2021 Group Task assigned- Analysis of different share brokering
companies with Mandot Securities
Tuesday 3 August 2021 Discussion on IPO of krsnaa diagnostic and windlass biotech
limited and learnt about commodity market
Wednesday 4 August 2021 Discussed about minimum investment, mutual funds and
advised to trade through Best app
Thursday 5 August 2021 Clearing of doubts like password resetting, payment request
through website back office option etc and learnt about NAV
Monday 9 August 2021 Deciding of trading strategy to get maximum profit, and
analysis of car trades IPO
Tuesday 10 August 2021 Discussed NFO period 4th august,2021- 13th august,2021
Thursday 12 August 2021 Learnt how to add funds in Best app and how to check limit in
Best app
Friday 13 August 2021 Suggestion of betterment along with new name for a new app
of trading to be launched
After going through this internship, I am sure that I can make my career in the Financial Services
Industry and Definitely, I will be able to do justice with what my company would expect from
me. I have learnt that It is really very important to be patient while we are trading in this market,
because it takes time to understand things and we should not react impatiently or else we may
lose money.
In a nutshell, this internship has been an excellent and rewarding experience. I can conclude that
there have been a lot I’ve learnt from my work at organization. I can safely say that my
understanding of the job environment has increased greatly. However, I do think that there are
some aspects of the job that I could have done better and that I need to work on. I need to build
more confidence while trading. I realized that I could have completed the work earlier than I did.
Also, the technical parts of the job were a bit flawed and I was asked multiple times to correct it.
The two main things that I learned after my experience in this firm are the importance of time
management and being self-motivated.
I have learnt a lot from this company whether in terms of forex market, various indicators, when
to use which indicator, Is the market following bullish or bearish trend etc or the importance of
time management because Even if I miss 1 price movement, I might incur loss for my clients
which will give negative image to my company and me as trader also.
I also agree with the fact that Technical Analysis only predicts a range not an exact number, so
the investors who are new to this market should not bet their whole money in trading solely
being dependent on this analysis even if someone is promising him/her 100% returns on
investment.
In the last, I would like my heartiest gratitude to my Industry Mentor (Mr. Vijay Jain) and my
SIP Faculty Mentor (Dr. Abhishek Pratap Singh Sachan) for helping me a lot during the
completion of the project.
SUGGESTIONS
It is difficult to write this part of the project as everything is up-to date in this organization. But
still some negative areas are there on which the organization can work to make the company
better. They are as follows –