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CUSTOMER RELATIONSHIP MANAGEMENT (Summer Internship Project) For

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INDEX 1. 2. 3. 4.

Particular Introduction of the CRM Objective of the CRM Research Methodology Literature Review         

5.

Training Importance & Needs of Training Types of Training Methods of Training Recommendation & Conclusion Training Adopted by us at Angel Training Under Different Departments Problems Faced at the Time of Training Suggestions to Improve

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16 19 24 42 42 43 46 47 48 50 51

Industry Analysis 

Industry Analysis at Indian Level

 Past Performance   

SWOT Analysis Major Players in the Industry Products & Services

6. Data Analysis 7. Limitations 8. Findings 9. Suggestions 10.Bibliography

51 62 69 76 80 87 94 95 97 98

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Preface The Summer program offered by the XY College, is an enlightening course for those who are wishing to master their Business administration skills, with their knowledge. This is an unique course which is the collaboration of MBA. It not only developes your management talent but also develop your technical skill. It imparts the necessary theoretical knowledge about the field but also provides an opportunity to practically experience the application of the business administration fundamentals in the corporate as well as the noncorporate sector. I was unaware about the role of exchanges and depositories in the secondary market. Here I really got practical knowledge about the role of SEBI, NSE, and BSE etc. in the secondary market. Now I am aware about the buying and selling system in the secondary market through broking firm or sub-broker. I am very much thankful to Mr. Jicky Thomas, Branch & Product Head, main branch. I therefore have pleasure to present my training report, which, I hope as per the curriculum requirements.

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Acknowledgement “There is no such thing as a self made man, we all are made up thousands of others” – George Adams. I am indebted to my faculty, the Faculty of Social Work for providing the students an opportunity to experience the practical working of the knowledge imparted to us theoretically. I am grateful to Angel Broking Limited for allowing me to undertake my summer training in the organization. To mention, I would like to extend my gratitude towardsMr. XYZ (Business Development Head) Mr. XYZ (Business Development Manager) They helped me during my entire training program. I would also like to thank Mr. Jicky Thomas and Mrs. XYZ who facilitated me in my practical learning.

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Introduction to CRM Before we begin to examine the conceptual foundations of CRM, it will be useful to define, what is CRM? A narrow perspective of customer relationship management is database marketing emphasizing the promotional aspects of marketing linked to database efforts. Another narrow, yet relevant, viewpoint is to consider CRM only as customer retention in which a variety of after marketing tactics is used for customer bonding or staying in touch after the sale is made. Shani and Chalasani define relationship marketing as “an integrated effort to identify, maintain, and build up a network with individuals consumers and to continuously strengthen the network for mutual benefit of both sides, through interactive, individualized and value-added contacts over a period of time�. The core theme of all CRM and relationship marketing perspectives is its focus on cooperative and collaborative relationships between the firm and its customers, and/or other marketing actors. CRM is based on the premise that, by having a better understanding of the customers’ needs and desires we can keep them longer and sell more to them. Growth Strategies International (GSI) performed a statistical analysis of Customer satisfaction data encompassing the findings of over 7,000+ customer surveys conducted by Angel Broking Ltd. CRM (customer relationship management) is an information industry term for methodologies, software, and usually Internet capabilities that help an enterprise manage customer relationships in an organized way. For example, an enterprise might build a database about its customers that described relationships in sufficient detail so that management, salespeople, people providing service, and perhaps the customer directly could access information, match customer needs with product plans and offerings, remind customers of service requirements, know what other products a customer had purchased, and so forth.

The essence of the information technology revolution and, in particular, the World Wide Web is the opportunity to build better relationships with customers than has been previously possible in the offline world. By combining the abilities to respond directly to

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customer requests and to provide the customer with a highly interactive, customized experience, companies have a greater ability today to establish, nurture, and sustain long-term customer relationships than ever before. The ultimate goal is to transform these relationships into greater profitability by increasing repeat purchase rates and reducing customer acquisition costs. Indeed, this revolution in customer relationship management or CRM.1 as it is called, has been referred to as the new “mantra” of marketing. 2 Companies like Siebel, E.piphany, Oracle, Broadvision, Net Perceptions, Kana and others have filled this CRM space with products that do everything from track customer behavior on the Web to predicting their future moves to sending direct e-mail communications. This has created a worldwide market for CRM products and services of $34 billion in 1999 and which is forecasted by IDC to grow to $125 billion by 2004. 3 The need to better understand customer behavior and focus on those customers who can deliver long-term profits has changed how marketers view the world. Traditionally, marketers have been trained to acquire customers, either new ones who have not bought the product category before or those who are currently competitors’ customers. This has required heavy doses of mass advertising and price-oriented promotions to customers and channel members. Today, the tone of the conversation has changed from customer acquisition to retention. This requires a different mindset and a 3 different and new set of tools. A good thought experiment for an executive audience is to ask them how much they spend and/or focus on acquisition versus retention activities. While it is difficult to perfectly distinguish the two activities from each other, the answer is usually that acquisition dominates retention.

According to one industry view, CRM consists of:  Helping an enterprise to enable its marketing departments to

identify and target their best customers, manage marketing 6


campaigns with clear goals and objectives, and generate quality leads for the sales team. ďƒ˜ Assisting the organization to improve telesales, account, and

sales management by optimizing information shared by multiple employees, and streamlining existing processes (for example, taking orders using mobile devices) ďƒ˜ Allowing the formation of individualized relationships with

customers, with the aimof improving customer satisfaction and maximizing profits; identifying the most profitable customers and providing them the highest level of service. ďƒ˜ Providing employees with the information and processes

necessary to know their customers, understand their needs, and effectively build relationships between the company, its customer base, and distribution partners. CRM--Customer Relationship Management--has entered the mainstream. Despite the uncertainty of the economy, CRM is being thrust into corporate budgets and talked about as a critical initiative by hundreds of Fortune 1,000 and tens of thousands of other companies. It has gone from being an important edge in the business world to a necessary tool for survival. The notion of the customer as king or queen is once again the rule. How you treat this is a missioncritical business issue. But, what is CRM and how does it change the way companies do business? The changes in the world have been so dynamic and so dramatic that the path is not necessarily all that obvious. How CRM impacts that business path is a continuing source of debate in the world of corporate management. Managing relationships with customers has become a critical organizational competency. Get winning strategies for acquiring and retaining customers by leveraging the latest advanced technologies. This course will teach you how to select the right tools for your business-- so it can grow today--and on into the future. Lagging means lost customers, which means damage to the bottom line. But how do you not lag when customers are moving lightning fast to demand constant changes in the speed to complete their 7


transactions? How do you keep your customers when the move to another company is nothing more than a mouse click and a minute away? CRM is the answer. Customer Relationship Management, a strategy that leverages very advanced technologies is the way to cut to the 21st Century business chase.

History of CRM Customer Relationship Management (CRM) is one of those magnificent concepts that swept the business world in the 1990’s with the promise of forever changing the way businesses small and large interacted with their customer bases. In the short term, however, it proved to be an unwieldy process that was better in theory than in practice for a variety of reasons. First among these was that it was simply so difficult and expensive to track and keep the high volume of 8


records needed accurately and constantly update them. In the last several years, however, newer software systems and advanced tracking features have vastly improved CRM capabilities and the real promise of CRM is becoming a reality. As the price of newer, more customizable Internet solutions have hit the marketplace; competition has driven the prices down so that even relatively small businesses are reaping the benefits of some custom CRM programs. In the beginning… The 1980’s saw the emergence of database marketing, which was simply a catch phrase to define the practice of setting up customer service groups to speak individually to all of a company’s customers. In the case of larger, key clients it was a valuable tool for keeping the lines of communication open and tailoring service to the clients needs. In the case of smaller clients, however, it tended to provide repetitive, survey-like information that cluttered databases and didn’t provide much insight. As companies began tracking database information, they realized that the bare bones were all that was needed in most cases: what they buy regularly, what they spend, what they do. Advances in the 1990’s In the 1990’s companies began to improve on Customer Relationship Management by making it more of a two-way street. Instead of simply gathering data for their own use, they began giving back to their customers not only in terms of the obvious goal of improved customer service, but in incentives, gifts and other perks for customer loyalty. This was the beginning of the now familiar frequent flyer programs, bonus points on credit cards and a host of other resources that are based on CRM tracking 3333 customer activity and spending patterns. CRM was now being used as a way to increase sales passively as well as through active improvement of customer service. True CRM comes of age

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Real Customer Relationship Management as it’s thought of today really began in earnest in the early years of this century. As software companies began releasing newer, more advanced solutions that were customizable across industries, it became feasible to really use the information in a dynamic way. Instead of feeding information into a static database for future reference, CRM became a way to continuously update understanding of customer needs and behavior. Branching of information, sub-folders, and custom tailored features enabled companies to break down information into smaller subsets so that they could evaluate not only concrete statistics, but information on the motivation and reactions of customers. The Internet provided a huge boon to the development of these huge databases by enabling offsite information storage, where before companies had difficulty supporting the enormous amounts of information. The Internet provided new possibilities and CRM took off as providers began moving toward Internet solutions. With the increased fluidity of these programs came a less rigid relationship between sales, customer service and marketing. CRM enabled the development of new strategies for more cooperative work between these different divisions through shared information and understanding, leading to increased customer satisfaction from order to end product. Today, CRM is still utilized most frequently by companies that rely heavily on two distinct features: customer service or technology. The three sectors of business that rely most heavily on CRM -- and use it to great advantage -- are financial services, a variety of high tech corporations and the telecommunications industry. The financial services industry in particular tracks the level of client satisfaction and what customers are looking for in terms of changes and personalized features. They also track changes in investment habits and spending patterns as the economy shifts. Software specific to the industry can give financial service providers truly impressive feedback in these areas. In recent years however, several factors have contributed to the rapid development and evolution of CRM. These include: 1. The growing de-intermediation process in many industries due to the advent of sophisticated computer and telecommunication technologies that allow producers to directly interact with end10


customers. For example, in many industries such as airlines, banks insurance, software or household appliances and even consumables, the de-intermediation process is fast changing the nature of marketing and consequently making relationship marketing more popular. Databases and direct marketing tools give them the means to individualize their marketing efforts. 2. Advances in information technology, networking and manufacturing technology have helped companies to quickly match competition. As a result product quality and cost are no longer significant competitive advantages. 3. The growth in service economy. Since services are typically produced and delivered at the same institution, it minimizes the role of the middlemen. 4. Another force driving the adoption of CRM has been the total quality movement. When companies embraced TQM it became necessary to involve customers and suppliers in implementing the program at all levels of the value chain. This needed close working relationships with the customers. Thus several companies such as Motorola, IBM, General Motors, Xerox, Ford, Toyota, etc formed partnering relations with suppliers and customers to practice TQM. Other programs such as JIT and MRP also made use of interdependent relationships between suppliers and customers. 5. Customer expectations are changing almost on a daily basis. Newly empowered customers, who choose, how to communicate with the companies’ various available channels? Also nowadays consumers expect a high degree of personalization. 6. Emerging real time, interactive channels including e-mail, ATMs and call centre that must be synchronized with customer’s nonelectronic activities. The speed of business change, requiring flexibility and rapid adoption to technologies. 7. In the current era of hyper competition, marketers are forced to be more concerned with customer retention and customer loyalty.

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8. As several researches have found out retaining customers is less expensive and more sustainable competitive advantage than acquiring new ones. 9. On the supply side it pays more to develop closer relationships with a few suppliers than to develop more vendors. 10. The globalization of world marketplace makes it necessary to have global account management for the customers.

Definition: “CRM is concerned with creating improved shareholder value through the use of customer centric business processes and the development of appropriate relationships with consumers.” Implementing CRM: CRM requires an integration of a firm's resources; people, operations and marketing capabilities to deliver added value to the customers. CRM should provide businesses and organizations with a ‘single view’ of their customers and across irrespective of the interactive channel or medium through which the customer accesses the service or product. For example, a business (e.g. hotel) customer’s profile and personal references should be accessible to the business (or hotel) irrespective of channel i.e. whether the customer books online, calls in or walks into any location should not make a difference to the service provided based on the personal profile of the business client. It is enabled through:    

Information Processes Technology Applications

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A firm that wants to implement CRM must align it's business processes cross-functionally in the best possible way to allow increased customer focus with an aim to deliver added value to the customer. To implement CRM, the following steps must be followed:  Develop a CRM framework  Align current business processes  Design new cross-functional business processes (where required)  Develop Functional Specifications (client-side services)  Develop Technical Specifications  Match Technical Specifications to available technology (Systems, software, etc)  Product Configuration  Data Migration and Integration  Staff Training

 Customer Segmentation: For CRM to be effective, the organization’s customer base must be stratified into segments based on commonalities amongst groups’ of individuals and customers. This also requires the organization to have strategies to target consolidated customer segments.

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 Reduced Cost of Service: a customer relationship strategy should reduce the cost of service for both the organization and it’s customers and increase satisfaction levels.  Service as a differentiator: The more competitive a market becomes the more a business will need to rely on its superior product quality and quality of service to differentiate itself from other businesses and providers.  Tie-in’s over time: The greater the effort a customer spends on a relationship over time, the greater the customer’s stake in helping to ensure that the relationship works and the more convenient and loyal the customer becomes.

Pitfalls to avoid: Many CRM programs fail for two reasons: 1. Lack of supportive business processes: Because business processes and organizational goals are not part of a strategic CRM plan tied to organizational goals and objectives. 2. Lack of an enterprise perspective: For Relationship Marketing to be effective, it requires that the organization creates a seamless enterprise view. A lot of CRM programs fail because they are assembled with disparate components that aren't designed to work together as part of a complete CRM system designed to meet organizational objectives.

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Customer Relationship Management Model CREATE A DATA BASE

ANALYSIS CUSTOMER SELECTION CUSTOMER TARGETING

RELATIONSHIP MARKETING PRIVACY ISSUES

METRICS

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Customer Retention Programs

FREQUENCY/ LOYALTY PROGRAMS

CUSTOMIZATION

CUSTOMER SERVICE

CUSTOMER RELATIONSHIP MANAGEMENT SATISFACTION

REWARDS PROGRAMS

COMMUNITY BUILDING

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Objective of the study of CRM CRM, in its broadest sense, means managing all interactions and business with customers. This includes, but is not limited to, improving customer service. A good CRM program will allow a business to acquire customers, service the customer, increase the value of the customer to the company, retain good customers, and determine which customers can be retained or given a higher level of service. A good CRM program can improve customer service by facilitating communication in several ways:  Provide product information, product use information, and technical assistance on web sites that are accessible 24 hours a day, 7 days a week  Identify how each individual customer defines quality, and then design a service strategy for each customer based on these individual requirements and expectations.  Provide a fast mechanism for managing and scheduling followup sales calls to assess post-purchase cognitive dissonance, repurchase probabilities, repurchase times, and repurchase frequencies.  Provide a mechanism to track all points of contact between a customer and the company, and do it in an integrated way so that all sources and types of contact are included, and all users of the system see the same view of the customer (reduces confusion).  Help to identify potential problems quickly, before customer occur  Provide a user-friendly mechanism for registering customer complaints (complaints that are not registered with the 17


company cannot be resolved, and are a major source of customer dissatisfaction).  Provide a fast mechanism for handling problems and complaints (complaints that are resolved quickly can increase customer satisfaction).  Provide a fast mechanism for correcting service deficiencies (correct the problem before other customers experience the same dissatisfaction).  Use internet cookies to track customer interests and personalize product offerings accordingly  Use the Internet to engage in collaborative customization or real-time customization  Provide a fast mechanism for managing and scheduling maintenance, repair, and ongoing support (improve efficiency and effectiveness) Mechanism to evaluate Potential KOMs. To develop integrated Database. Assessing the need of Potential KOMs. Ways to meet those needs. Identify the softer elements. Devising a way to Retain and grow with those KOMs. Moving further ahead Satisfaction Delightment LOYALITY To develop Strategy and action plan on quarter & annual basis. To gain knowledge about consumer behaviour To know, how to maintain relationship with customer? To know, the needs analysis of customer To understand, with the help of feedback form that why customers are not trading with Angel  To know, the customer perception about company’s products & services  To know, the grievances among the customers about products & services            

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The CRM program can be integrated into other cross-functional systems and thereby provide accounting and production information to customers when they want it. ďƒ˜ Keeping Existing Customers Grading customers from very satisfied to very disappointed should help the organization in improving its customer satisfaction levels and scores. As the satisfaction level for each customer improves, so shall the customer retention with the organization. ďƒ˜ Maximizing Life time value Exploit up-selling and cross-selling potential. By identifying life stage and life event trigger points by customer, marketers can maximize share of purchase potential. Thus the single adults shall require a new car stereo and as he grows into a married couple his needs grow into appliances. ďƒ˜ Increase Loyalty Loyal customers are more profitable. Any company will like its mindshare status to improve from being a suspect to being an advocate. Company has to invest in terms of its product and service offerings to its customers. It has to innovate and meet the very needs of its customers so that they remain as advocates on the loyalty curve. Referral sales invariably are low cost high margin sales.

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Research Methodology for CRM Meeting and satisfying each customer’s need uniquely and individually. In the mass markets individualized information on customers is now possible at low costs due to the rapid development in the information technology and due to availability of scalable data warehouses and data mining products. By using online information and databases on individual customer interactions, marketers aim to fulfill the unique needs of each mass-market customer. Information on individual customers is utilized to develop frequency marketing, interactive marketing, and after marketing programs in order to develop relationship with high-yielding customers. In the context of business-to-business markets, individual marketing has been in place of quite sometime. Known as Key Account Management Program, here marketers appoint customer teams to husband the company resources according to individual customer needs. Continuity Marketing Programs Take the shape of membership and loyalty card programs where customers are often rewarded for their member and loyalty relationships with the marketers. The basic premise of continuity marketing programs is to retain customers and increase loyalty through long-term special services that has a potential to increase mutual value through learning about each other. Partnering Programs The third type of CRM programs is partnering relationships between customer and marketers to serve end user needs. In the mass markets, two types of partnering programs are most common: Cobranding and affinity partnering. Missing process of CRM Traditionally customer relationship management (CRM) revolves around the three functions of selling, marketing and support. Various process models have been built around how these functions are 20


integrated and operated in a customer oriented enterprise. There is however a fourth critical function that is lacking in most CRM models. The fourth function that often is the source of a competitive edge is that of innovation. Companies must continually reinvent themselves to deliver an improved and often a totally new value offering to their customer base. CRM must provide the customer intelligence that feeds information back into the enterprise’s knowledge management processes where it can trigger new innovation processes. When CRM is integrated into the innovation process, significant value can be derived from faster time to market cycle times and with new processes and services. Marketing automation must ensure that the innovation processes are actually market driven. A market driven innovation process must include both strategies that are focused on satisfying customer requirements as well as strategies focused at redefining customer requirements. Sales automation should be integrated with the innovation process by ensuring that all sales channels are prepared and ready to take new processes and services to market before competitive forces can react. Customer service automation must be designed to empower the customer with the option of assisting with the design of the value offering. Redefining CRM around innovation, sales, marketing and service can identify new competitive opportunities for an enterprise. The remaining question is whether companies are prepared to take the initiative and expand the definition of customer relationship management to include the process of innovation. The pressure to deliver results within the traditional definition of CRM already overwhelms companies. The dialog must start rather earlier than later because the competitive window of traditional CRM is decreasing and customer demands for a more innovative and responsive enterprise will increase Architecture of CRM There are three parts of application architecture of CRM: 1. Operational - automation to the basic business processes (marketing, sales, service) 2. Analytical - support to analyze customer behavior, implements business intelligence aliketechnology 21


3. Collaborative - ensures the contact with customers (phone, email, fax, web, SMS, post, in person) 1. Operational CRM Operational CRM means supporting the "front office" business processes, which include customer contact (sales, marketing and service). Tasks resulting from these processes are forwarded to resources responsible for them, as well as the information necessary for carrying out the tasks and interfaces to back-end applications are being provided and activities with customers are being documented for further reference. Operational CRM provides the following benefits: ďƒ˜ Delivers personalized and efficient marketing, sales, and service through multi-channel collaboration ďƒ˜ Enables a 360-degree view of your customer while you are interacting with them ďƒ˜ Sales people and service engineers can access complete history of all customer interaction with your company, regardless of the touch point. The operational part of CRM typically involves three general areas of business: Sales force automation (SFA) SFA automates some of the company's critical sales and sales force management functions, for example, lead/account management, contact management, quote management, forecasting, sales administration, keeping track of customer preferences, buying habits, and demographics, as well as performance management. SFA tools are designed to improve field sales productivity. Key infrastructure requirements of SFA are mobile synchronization and integrated product configuration. Customer service and support (CSS) CSS automates some service requests, complaints, product returns, and information requests. 22


Traditional internal help desk and traditional inbound call-center support for customer inquiries are now evolved into the "customer interaction center" (CIC), using multiple channels (Web, phone/fax, face-to-face, kiosk, etc). Key infrastructure requirements of CSS include computer telephony integration (CTI) which provides high volume processing capability, and reliability. Enterprise marketing automation (EMA) EMA provides information about the business environment, including competitors, industry trends, and macro-environmental variables. It is the execution side of campaign and lead management. The intent of EMA applications is to improve marketing campaign efficiencies. Functions include demographic analysis, variable segmentation, and predictive modeling occurs on the analytical (Business Intelligence) side. Integrated CRM software is often also known as "front office solutions." This is because they deal directly with the customer. Many call centers use CRM software to store all of their customer's details. When a customer calls, the system can be used to retrieve and store information relevant to the customer. By serving the customer quickly and efficiently, and also keeping all information of a customer in one place, a company aims to make cost savings, and also encourage new customers. CRM solutions can also be used to allow customers to perform their own service via a variety of communication channels. For example, you might be able to check your bank balance via your WAP phone without ever having to talk to a person, saving money for the company, and saving your time. 2. Analytical CRM In analytical CRM, data gathered within operational CRM and/or other sources are analyzed to segment customers or to identify potential to enhance client relationship. Customer analysis typically can lead to targeted campaigns to increase share of customer's wallet. Examples of Campaigns directed towards customers are: 23


 Acquisition: Cross-sell, up-sell  Retention: Retaining customers who leave due to maturity or attrition.  Information: Providing timely and regular information to customers.  Modification: Altering details of the transactional nature of the customers' relationship.  Analysis typically covers but is not limited to:  Decision support: Dashboards, reporting, metrics, performance etc.  Predictive modeling of customer attributes  Strategy and Research Analysis of Customer data may relate to one or more of the following analyses:  Contact channel optimization  Contact Optimization  Customer Acquisition / Reactivation / Retention  Customer Segmentation  Customer Satisfaction Measurement / Increase  Sales Coverage Optimization  Fraud Detection and analysis  Financial Forecasts  Pricing Optimization  Product Development  Program Evaluation  Risk Assessment and Management Data collection and analysis is viewed as a continuing and iterative process. Ideally, business decisions are refined over time, based on feedback from earlier analysis and decisions. Therefore, most successful analytical CRM projects take advantage of a data warehouse to provide suitable data. Business Intelligence is a related discipline offering some more functionality as separate application software. 3. Collaborative CRM Collaborative CRM facilitates interactions with customers through all channels (personal, letter, fax, phone, web, e-mail) and supports co-ordination of employee teams and channels. It is a 24


solution that brings people, processes and data together so companies can better serve and retain their customers. The data/activities can be structured, unstructured, conversational and/or transactional in nature. Collaborative CRM provides the following benefits:  Enable efficient productive customer interactions across all communications channels  Enables web collaboration to reduce customer service costs  Integrates call centers enabling multi-channel personal customer interaction  Integrates view of the customer while interaction at the transaction level

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Literature Review Company Profile: Angel Broking Limited is one of the leading and professionally managed stock broking firm involved in quality services and research. Angel Broking Limited is a corporate member of The Stock Exchange, Mumbai. The membership of the company with The Stock Exchange Mumbai was originally in the name of Mukesh R. Gandhi, which was eventually turned into a corporate membership in the name of Angel Broking Limited. Angel Broking Limited is managed by Mr. Dinesh Thakkar and he is well supported by Mr. Mukesh Gandhi, a fifteen years veteran in the market. The group is well supported by a professional and qualified research team and efficient operations and back office team, which comprises of highly dedicated and qualified individuals. Angel has an in-house, state of art research department. Angel believes in reaching out to the customer at the farthest end rather than by reaching out to them. The company in its Endeavour to give its client the best has opened up several branches all over Mumbai, which are efficiently integrated with the Head Office. Angel Broking Limited is primarily into retail stock broking, with a customer base of retail investors, which has been increasing at a compounded growth rate of 100% every year. The company has huge network sub-brokers in Mumbai and other places outside Mumbai, registered with SEBI, who act as channel partners for the company. The company presently has the total staff strength of around 150 employees who are spread accordingly across the head office and all the branches. 26


Angel has empowered its physical presence throughout India through various strategies which it has been adopting efficiently and effectively over a period of time, like opening up of branches at various places, tie-ups with various agencies and sales agents, buyouts of smaller regional outfits and appointment of sub-brokers and franchisees. Moreover, Angel Broking Ltd. has been tapping and including high net-worth and self-employed individuals to its vast array of clients. Angel has always strived in the direction of delivering ultimate client satisfaction and developing stronger bonds with its customers and chose partners. Angel has a vision to introduce new and innovative products and services regularly. Moreover Angel has been one among the pioneers to introduce the latest technological innovations and integrate it efficiently within its business. Angel Broking Ltd tryst with excellence in customer relations began in 1987. Today, Angel has emerged as one of the most respected Stock-Broking and Wealth Management Companies in India. With its unique retail-focused stock trading business model, Angel is committed to providing ‘Real Value for Money’ to all its clients. The Angel Group is a member of the Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and the two leading Commodity Exchanges in the country: NCDEX & MCX. Angel is also registered as a Depository Participant with CDSL

Angel’s Business        

Equity Trading Commodities Portfolio Management Services Mutual Funds Life Insurance Personal Loans IPO Depository Services Investment Advisory

Angel’s Presence 27


   

Nation-wide network of 21 Regional Hubs Presence in 124 cities Over 6810 Sub-Brokers & Business Associates More than 5.9 lakh Clients

Angel Group    

Angel Broking Ltd. Angel Capital & Debt Market Ltd. Angel Commodities Broking Ltd. Angel Securities Ltd.

Board of Directors:  Mr. Dinesh Thakkar Founder Chairman & Managing Director 28


The Angel Group of Companies was brought to life by Mr. Dinesh Thakkar. He ventured into stock trading with an intention to raise capital for his own independent enterprise. However, he recognized the opportunity offered by the stock market to serve individual investors. Thus India’s first retail-focused stock-broking house was established in 1987. Under his leadership, Angel became the first broking house to embrace new technology for faster, more effective and affordable services to retail investors. Mr. Thakkar is valued for his understanding of the economy and the stock-market. The print and electronic media often seek his views on the market trend as well as investment strategies.  Mr. Lalit Thakkar Director – Research

Mr. Lalit Thakkar is the motivating force behind Angel’s highly acclaimed Research team. He’s been a part of the senior management team since the Angel Group’s inception. His technical and fundamental outlook has provided impetus to Angel’s market research team. Research-based & personalized advisory services are Angel’s forte, and Mr. Lalit Thakkar has undoubtedly been the brain behind it. When it comes to analyzing the market, Mr. Lalit Thakkar is truly a genius. His hands-on experience and fundamental knowledge

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of the market can predict the market trend early. His views on the market trend are often quoted in the print and electronic media.  Mr. Amit Majumdar Chief Strategy Officer

A chartered Accountant by qualification, Mr. Amit Majumdar is a key member of Angel’s strategic decision-making process. He has been with the group since August 2004. He has handled several functions of the group like finance and operations, to name a few. He has rich experience in finance, investment banking, treasury, consultancy and advisory services. Mr. Majumdar has led many successful initiatives for the group. Before joining the Angel Group, Mr. Majumdar has been associated with Rabo India Finance, Ambit Corporate Finance and Ernst & Young.  Mr. Rajiv

Phadke Executive Communications

Director

HR

&

Corp.

Mr. Rajiv Phadke has actively contributed to the Group’s growth over the last four years. Holding a major in Finance, Mr. Rajiv Phadke is a strategic thinker with expertise in the field of corporate planning, international marketing, financial services, brand-building, HRD and quality management. With over 32 years of experience, Mr. Phadke has successfully led SBUs and financial companies from concept to commissioning. 30


His career horizon spans Motilal Oswal Securities, Times Guaranty Financials, Nagarjuna Securities and Tata Exports Ltd. He is also a well-known speaker in the HR and business development circuit and his views are featured on various electronic media as well.  Mr. Vinay Agrawal Executive Director – Equity Broking

Mr. Vinay Agrawal leads the Equity Broking business at Angel, which comprises Business Development, Operations, Product Development and E-broking initiative. He is actively involved in exploring new ways to adopt technology for business enhancement. A Chartered Accountant by qualification, Mr. Agrawal began his career with the Angel Group as Finance and Operations Consultant, and since then he’s quickly climbed up the corporate ladder.

 Mr. Nikhil Daxini Executive Director - Sales and Marketing

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With an MBA in finance, Mr. Nikhil Daxini has been instrumental in introducing the concept of professional marketing of broking services at Angel. His area of focus is Business Development, Risk Management and Operations. Mr. Daxini has immense experience in the marketing of financial products and services. He has been associated with HDFC Bank Ltd. in the past. ďƒ˜ Mr. Hitungshu Debnath Executive Director - Distribution &

Wealth Management

A marketing professional and a British Chevening scholar from the London School of Economics, Mr. Hitungshu Debnath leads the Distribution and Wealth Management business at the Angel Group. It includes the distribution of Insurance, mutual funds, IPOs, personal loans and other wealth management products. Mr. Debnath has over 18 years of industry experience. He has been associated with Times Guaranty Financial Ltd., Fortress Financial Services Ltd., Alliance Capital Asset Management and HDFC Asset Management Ltd. in the past. ďƒ˜ Mr. Mudit Kulshreshtha Executive Director - Business Intelligence & Analytic

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Mr. Mudit Kulshreshtha heads the advance analytics and strategic business intelligence division at Angel. With a Bachelor’s degree in Engineering and PhD in Economics, Mr. Mudit Kulshreshtha has more than 12 years experience in the field of strategy and business consulting. He has been associated with reputed consulting firms like Deloitte Consulting India, Ernst and Young, Arthur Andersen and WNS Global. He has advised several big clients in the U.S. and U.K. He is also a known speaker at public seminars and conferences organised by CII, NASSCOM, Indian School of Business and IIT.  Mr. Santanu Syam Executive Director – Operations

Mr. Syam brings with him over 18 years of experience in the field of Transaction Banking, Wholesale Banking, Treasury Banking, Consumer Banking and CBS. He started his career with ANZ Grindlays Bank and he was also associated with Standard Chartered Bank in India as Director Transactional Banking. Mr. Syam followed up his Engineering degree with an MBA. He has also attended Banking & Technology seminars organised by SCB Singapore, BSE India & Euro Finance.  Mr. Ketan Shah Associate Director - Information Technology

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IT is a strategic function at Angel. And Mr. Ketan Shah is involved in the designing of Angel’s IT policies and Strategies. Mr. Shah leads all IT-related activities from planning and budgeting to implementation and maintenance. Mr. Shah has over 18 years of industry experience. He has been involved in various aspects of Business Operations in his previous assignments.  Ms. Pinky Kothari Associate Director - Sales And Marketing

Ms. Pinky Kothari is responsible for development and expansion of the Angel Group’s business in Southern India. She started her career at Angel as Business Development Executive. She was then appointed the head of Surat Branch and the South Gujarat region, before assuming the role of Associate Director. A qualified Company Secretary and an MBA in Finance, Ms. Kothari has vast experience in business development in the financial services industry.

 Mr. Naveen Mathur Associate Director – Commodities Business

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A CFA of 1997, Mr. Mathur holds a Post Graduation degree in Financial Management and Business Finance. He brings with him over 14 years of experience in the financial markets. He had been associated with Religare Commodities, Karvy Consultants and with BLB Ltd in the past. He has been involved in several management activities, treasury operations, corporate and strategic planning, research activities in Futures and Options markets in his past assignments. Mr. Mathur is a regular speaker on all the prominent financial news channels.

Products and Services of Angel 35


We have been trained and introduced to Angel’s various product and services, which are as follows:

E-Broking: Angel offers several user-friendly services to customers so that they can manage their stock portfolio. Including, online capabilities linked to an information database to help customers invest, confidently. Our e-broking services are specially designed for the netsavvy traders and investors who prefer operating from their home or office, through the internet. There are two types of software. 1. Browser-Based  Angel Investor  Angel Trade 2. Application-Based  Angel Diet  Angel Anywhere USP’s of Angel E-broking  Multiple Exchanges on a single screen- BSE, NSE-F&O, MCX, NCDEX  Hot keys similar to broker’s terminal  Streaming quotes  Products/Software/Back office training for all E-broking clients  In-depth research & technical chart, intra-day calls  24x7 Back-office

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 Viewing ledger, Bills, Contracts, Sauda summary, Open Position, Holdings, DP Transactions, Auction Details.  Auto pay-in of shares & Online Securities Pay-Out  Instant transfer of fund & Online Funds pay-out request  Highly secure and confidential

Portfolio management service Successful investing in Capital Markets demands ever more time and expertise. Investment Management is an art and a science in itself. Professional Investment Management Services are no longer the privilege of only large institutional investors. Portfolio Management Services (PMS) is one such service that is fast gaining eminence as an investment avenue of choice for High Networth Investors like you. PMS is a sophisticated investment vehicle that offers a range of specialized investment strategies to capitalize on opportunities in the market. The Portfolio Management Service combined with competent fund management, dedicated research and technology, ensures a rewarding experience for its clients.

PRODUCT BOUQUET a- Angel Oyster Chief Investment Officer Mr. Rajen Shah Bottom up concentrated portfolio of Mid Cap & Small Cap Companies with emphasis on Value Investing. Investor Profile: • The scheme would be suited for investors with medium to high risk appetite having long term perspective Fees and Charges 2% Asset Management Charges 0.50% brokerage on transactions 37


b- Angel Blue-chip Fund Manager Mr. Phani Sekhar Diversified Equity portfolio of Large cap & Mid Cap Companies. Investor Profile: • The scheme would be suited for investors with medium to low risk appetite, having long term perspective. Fees and Charges • 2% Asset Management Fees • 0.50% Brokerage on transactions Angel Equity Derivatives Fund Fund Manager Mr. Siddarth Bhamre Bottom-Up concentrated portfolio with Equities & Derivatives, and emphasis on Hedging by using volatility in the Markets. Investor Profile: • The scheme would be suited for investors with low to medium risk appetite, having long term perspective. • Suitable for HNI Clients and Corporate who want to park money for consistent Return from the market even if market remained flat. Fees and Charges • 2% Asset Management Charges • 0.10% on Delivery and Rs.50 flat on options, 0.01% on futures c- Angel Growth Fund Manager Mr. Phani Sekhar Diversified Equity portfolio of Large cap & Mid Cap Companies with emphasis on growth Investment. Investor Profile: • The scheme would be suited for investors with moderate risk appetite. 38


• Recommended investment horizon is 15 to 18 months. Fees and Charges: • 2% Asset Management Charges • 0.5% brokerage on transactions PMS characteristics:           

Personalized Service Interaction with Fund Manager Regular feedback and reports Pro-active management of funds Holdings not impacted by entry/exit of big investors Can remain liquid for long periods Disciplined investment process Quality investments Limiting risk Low portfolio turnover Focus on generating Absolute returns rather than Relative Returns

Angel GoldProduct- Features of Angel Gold  A premium service for clients who needs professional guidance on  long term investments  Minimum funds or portfolio of Rs.1 Lakh and maximum of Rs.4 Lakhs will be eligible for Angel Gold..  Brokerage of 0.50%-0.75% for clients. 50% sharing of brokerage in case of Sub-broker’s clients.  No AMC, No Entry/Exit load and No profit sharing  Shares can be kept in Angel pool or can be transferred to the respective DP accounts  Intimation regarding transaction will be given to clients by evening of the day of transaction  No Lock-in period. Profits can be redeemed or re-investing based on client’s wish 39


 Existing client account can be used for Angel GOLD. Clients can do there own transactions in the same account as well.  Research Director Mr. Lalit Thakkar along with 12 senior analysts will take investment decisions  Investment will be done for a longer time horizon. (12-18 Months)  Browser based BO software for clients and branches  Monthly Newsletter will be released from Angel GOLD desk  Periodic meetings will be held in the branches POSITIONING  Angel GOLD is positioned as an equity investment option for all those investors who aim for realistic return from equity as an asset class on a long term perspective.  It is for the investors who, wishes to seek professional advice for their investments. Unique selling Preposition (USP)  A strong team of 11 sector specific analysts headed by Research director guiding the investments  No Entry/Exit load, No profit sharing, No Management fees  A corpus limit as low as Rs.1 Lakh.  A portfolio of growth stocks and not market capitalization bias.  Flexibility of reinvesting, redeeming and liquidating the portfolio  A low cost solution for investing. Product Segment  Angel GOLD is for the people who fall in middle class – higher middle class section of the society  People who are not risk averse and can understand the return  benefits vis-à-vis calculated risk taken  People who are new entrant to the equity markets, normally coming through the Mutual Fund route. 40


Target Customers  Young professionals earning salaries around Rs.3 Lacs to Rs.6 Lacs with one or two years experience  Middle aged professionals considering traditional ways of investing i.e. FDs, PPF, gold, bonds, etc.  Small scale businessmen who are not risk averse and will understand the importance of reasonable returns  Retired people who have taken hefty VRS or has savings of which 20-25% can be invested in equities

Margin Funding and prepaid brokerage Margin Funding “Margin Funding” allow you to take higher exposure on the funds as well as unlock the value of your existing portfolio & take advantage of investment opportunities in the market without the involvement of fresh funds. One can use the shares in his current portfolio to make fresh purchases in the market. If utilized prudently, this product can help unlock the value of Securities even during depressed Stock Market conditions and provide customers with the much-needed liquidity during pressing times. Advantages:      

Provide instant liquidity without having to sell your Securities. Allow you to grab investment opportunities instantly without any need to pay first. Leverage your funds available for investments. Benefits like bonuses and dividends continue to accrue to the borrower. Any appreciation in the value of the Securities given as margin would automatically allow enhancement in drawing power. Interest calculated on the amount utilized & the time for which it is utilized.

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Pre-Paid Brokerage Pre-paid brokerage is one of the best schemes for customers to take the advantages of less brokerage. Different pre-paid recharge are available with different validity. Some characteristics of pre-paid brokerage are as follows:      

Zero account opening charges Attractive Brokerage Rate Free DP AMC for 1 year Assured gifts worth thousands with every account. Easy & Fast Recharge Free Financial Investment Application with every account

Quality Assurance by Angel Angel Broking is the First Brokerage House to have a Quality Assurance Cell across Industry Dedicated QA teams at CSO & branches to resolve client queries/ complaints through telephone, email or visit. Quality assurance cell is one such significant milestone achieved by the company, which stands for its performance. Established in 2005,the cell was set up as the compelling need was felt to shift from ‘customer satisfaction to customer delight” Angel’s definition of Quality- Product and services that totally satisfy and often exceed customer needs and expectations in all respect to delight him. Simply put, Quality is achieving a high degree of excellence in all forms of activities from design, development, serving and documentation. “Right First Time and Right Every Time”. And to achieve that, they follow the 4 ‘P’ Quality model:  Problem solving-continuous improvement and learning  People and Partners-Respect, challenge, growth  Process-Standardized tasks for continuous improvement  Philosophy-Long term thinking 42


Research & Advisory The markets ended Monday marginally in the green, after opening weak due to concerns about Swine flu. The Indices were weak at the outset of the Tuesday ending the day in red. Markets surged on Wednesday on positive global cues and short covering in April 2009 derivatives contracts. The markets remained closed both on Thursday and Friday. The markets just ended the week positive, with the Sensex gaining 0.7% and the Nifty closing marginally lower by 0.2% Fundamental Analysis Fundamental analysis is one of the most useful tools that investors use when making decisions about which stocks they’re going to buy. It is a process of examining key ratios that show the current worth of a stock and the recent performance of a company. Fundamental analysis is used to determine the amount of money a company can make and the kind of earnings an investor can expect. Future earnings may be subject to interpretation but good earning histories create confidence among investors. The stock prices may increase and the dividends may pay out. Stock market analysts determine whether a company is meeting its expected growth by examining the earnings that are reported by the company on a regular basis. If the company doesn’t meet its expected growth, the prices of its stocks usually experience a downturn. There are a lot of tools that are used to determine the earnings and the value of a company on the stock market. Most of these tools rely on the financial statements released by the company. Details about the value of a company which include competitive advantages and ownership ratios between the management and the outside investors can be revealed through further fundamental analyses.

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Fundamental analysis is for the rational man

 To make financial forecasts  To conduct a company stock valuation & predict its probable price evolution  To make a projection on its business performance  To evaluate its management and make internal business decisions  To calculate its credit risk

Technical Analysis

The art and science of examining stock chart data and predicting future stock market movements is called technical analysis. This style of analysis is used by investors who are often concerned about the nature and the value of the companies where they trade their stocks in. The holdings are usually shortterm since the investors drop the stocks once they reach their projected profit. The belief that stock prices move in predictable patterns is the basis for technical analysis. The factors that influence the movement of the price are supposedly reflected in the stock market with great efficiency. These factors include company performance, economic status, and natural disasters. The efficiency, when coupled with historical trends, produces movements that can be analyzed and applied to the future movements of the stock market. Because the fundamental information about the potential growth of a company is not taken into account, technical analysis is not intended for long-term investments. Trades are entered and exited at precise times so technical analysts need to spend a lot of time watching the movements of the stock market. Investors can take advantage of both upswings and downswings in price by going either long or

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short. In the event that the market doesn’t move as expected, the losses can be limited by stop-loss orders. Hundreds of stock patterns have been developed over time. Most of these patterns rely on the basic concepts of “support” and “resistance.” The level where downward prices are expected to rise from is called the support while the level where the upward prices are expected to reach before falling again is called the resistance. Once they hit the support or the resistance levels, the prices tend to bounce.

Value Added Services       

NRI Service Desk for personalized Assistance Dedicated Offline Equity Dealing Desk Online Equity Trading Platform NRI Investment Advisory Desk PAN card Assistance Support for Banking & PIS Account Portfolio Management, Mutual Fund, IOP Services

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Training A training program can serve a range of diverse purposes, and organizations initiate training programs for many different reasons. One of the strongest need of training is to respond to challenges presented by new technology. Customer Relationship Management training at Angel Broking helped us to meet the challenges in current market scenario. We came to know about maintaining long lasting customer relationship. We were covered by Motivational speeches by Board of directors, Product and services, Role plays, Brain storming, Scrip designing, Back office, Different departments at Angel and the way they execute their tasks, Research and Advisory, Wealth management services, Value added services and healthy discussions ,Which are as follows in detail:

Importance & Needs of Training Optimum Utilization of Human Resources – Training helps in optimizing the utilization of human resource that further helps the employee to achieve the organizational goals as well as their individual goals. Development of Human Resources – Training helps to provide an opportunity and broad structure for the development of human resources’ technical and behavioral skills in an organization. It also helps the employees in attaining personal growth. Development of skills of employees – Training helps in increasing the job knowledge and skills of employees at each level. It helps to expand the horizons of human intellect and an overall personality of the employees. Productivity – Training helps in increasing the productivity of the employees that helps the organization further to achieve its long-term goal.

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Team spirit – Training helps in inculcating the sense of team work, team spirit, and inter-team collaborations. It helps in inculcating the zeal to learn within the employees. Organization Culture – Training helps to develop and improve the organizational health culture and effectiveness. It helps in creating the learning culture within the organization. Organization Climate – Training helps building the positive perception and feeling about the organization. The employees get these feelings from leaders, subordinates, and peers. Quality – Training helps in improving upon the quality of work and work-life. Healthy work-environment – Training helps in creating the healthy working environment. It helps to build good employee, relationship so that individual goals aligns with organizational goal. Health and Safety – Training helps in improving the health and safety of the organization thus preventing obsolescence. Morale – Training helps in improving the morale of the work force. Image – Training helps in creating a better corporate image. Profitability – Training leads to improved profitability and more positive attitudes towards profit orientation. Training aids in organizational development i.e. Organization gets more effective decision making and problem solving. It helps in understanding and carrying out organizational policies. Training helps in developing leadership skills, motivation, loyalty, better attitudes, and other aspects that successful workers and managers usually display.

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METHODS OF TRAINING The most widely used methods of training used by organizations are classified into two categories: On-the-Job Training & Off-the-Job Training. ON-THE-JOB TRAINING is given at the work place by superior in relatively short period of time. This type of training is cheaper & less time-consuming. This training can be imparted by basically four methods: Coaching is learning by doing. In this, the superior guides his subordinates & gives him/her job instructions. The superior points out the mistakes & gives suggestions for improvement. Job Rotation: - In this method, the trainees move from one job to another, so that he/she should be able to perform different types of tasks. E.g. In banking industry, employees are trained for both backend & front-end jobs. In case of emergency, (absenteeism or resignation), any employee would be able to perform any type of job. OFF THE JOB TRAINING is given outside the actual work place. Lectures/Conferences:- This approach is well adapted to convey specific information, rules, procedures or methods. This method is useful, where the information is to be shared among a large number of trainees. The cost per trainee is low in this method. Video Clips can provide information & explicitly demonstrate skills that are not easily presented by other techniques. Motion pictures are often used in conjunction with Conference, discussions to clarify & amplify those points that the film emphasized. Simulation Exercise: - Any training activity that explicitly places the trainee in an artificial environment that closely mirrors actual working conditions can be considered a Simulation. Simulation activities include case experiences, experiential exercises, vestibule training, management games & role-play. Cases: - present an in depth description of a particular problem an employee might encounter on the job. The employee attempts to find 48


and analyze the problem, evaluate alternative courses of action & decide what course of action would be most satisfactory. Experiential Exercises: - are usually short, structured learning experiences where individuals learn by doing. For instance, rather than talking about inter-personal conflicts & how to deal with them, an experiential exercise could be used to create a conflict situation where employees have to experience a conflict personally & work out its solutions. Vestibule Training: - Employees learn their jobs on the equipment they will be using, but the training is conducted away from the actual work floor. While expensive, Vestibule training allows employees to get a full feel for doing task without real world pressures. Additionally, it minimizes the problem of transferring learning to the job. Role Play: - Its just like acting out a given role as in a stage play. In this method of training, the trainees are required to enact defined roles on the basis of oral or written description of a particular situation. Management Games: - The game is devised on a model of a business situation. The trainees are divided into groups who represent the management of competing companies. They make decisions just like these are made in real-life situations. Decisions made by the groups are evaluated & the likely implications of the decisions are fed back to the groups. The game goes on in several rounds to take the time dimension into account. In-Basket Exercise: - Also known as In-tray method of training. The trainee is presented with a pack of papers & files in a tray containing, administrative problems & is asked to take decisions on these problems & are asked to take decisions on these within a stipulated time. The decisions taken by the trainees are compared with one another. The trainees are provided feedback on their performance.

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RECOMMENDATIONS & CONCLUSION No doubt Training is a very powerful tool for the smooth functioning of the organization, but it needs to be used with care in order to derive all the benefits. Here are seven recommendations for getting the best out of this tool: 1. Learn about the needs and proficiency of each and every employee before an organization invests its effort, time & money on training. Its better to identify the needs & shortcomings in an employee before actually imparting training to him/her. 2. Experienced & skilled trainer, who possesses good amount of knowledge & understanding about the organization's objectives, individual abilities & the present environment, should give training. 3. Active participation from the trainees should be encouraged. There should be a two-way communication between the trainer & trainee. 4. Feedback should be taken from the trainees after the training is over, so that the organization comes to know about the deficiencies in the training program & also suggestions to improve upon the same. 5. Focus of training should be on priority development needs and to produce strong motivation to bring change in employees. 6. The cost incurred on the training program should not exceed its benefits. 7. The method or type of training should be very cautiously selected by the organization depending upon the organizations' resources & an employee's individual need for training. Thus, training is a vital tool to cope up with the changing needs & technologies, & ever-changing environment. It benefits both the organization as well as the employees.

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Training adopted by us at AngelWe adopted a procedural training to execute our given tasks. A procedure is a sequence of steps that must be followed to accomplish a task. These steps may be required a certain level of knowledge or have mental or physical skills associated with them. A procedure may be linear, that is, progress from one step to the next until the task is completed, or a procedure may have one or more decision points where the student will have to decide which branch of the procedure to follow next. For short, simple, linear procedures, the following method of explanation and demonstration is recommended: a. The instructor demonstrates the entire procedure and explains each step as it is done. b. The instructor repeats the demonstration but has the trainee explain what actions are occurring. c. The trainee demonstrates the procedure and explains what he/she is doing at each step. d. The trainee demonstrates the procedure again so that the instructor can check for full mastery. The instructor continues this "progressive parts" approach until the entire procedures is explained. It is sometimes appropriate to combine several simpler steps during the training or address a more complex step individually before combining it with the entire training. For procedures that have decision points, an overview of the entire procedure is a good starting point. After that the procedure should be broken up into segments for further instruction. The decision points within a procedure are good break points for the segments. An instructor can talk about the sequence of steps prior a decision point, or the steps between decision points. Depending upon whether the segments are simple or complex, the methods outlined above can be used for each segment. The information needed to make

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the decisions also needs to be covered at the appropriate point in the lesson. For more complex decision points, it is recommended that all segments be explained and demonstrated before discussing the decision points. It is easier for a person to make a more complex decision when they understand the steps that make up the alternative branches of the procedure.

Training Under Different DepartmentWe have been trained under following departments1-Commodities Commodity markets are markets where raw or primary products are exchanged. These raw commodities are traded on regulated commodities exchanges, in which they are bought and sold in standardized contracts.  Commodities are easy to Understand and have positive correlation with Inflation.  The Commodity market are global in nature , hence less risk for manipulation.  Every commodity have separate market in Itself and hence many such market is simulated at one single screen.  The trend in one commodity not necessarily have correlation with the trend of other.  Historically Commodities have outperformed the Stock Market .  Diversification through a different asset class.  Low Margins – 5% - 10% only

Commodities Segment wise (MCX & NCDEX) 52


Metals Oils Energy Agri.Comm. Gold Crude palm Oil Brent crude Pepper Silver Mustard Seed Sweet Crude Guar seed Steel Castor oil Furnace oil Soy Bean Copper Jeera Zinc Chili Nickel Turmeric Lead & Aluminum etc.

Softs Cotton Sugar Guar

Problems faced at the time of training 53


Though we successfully executed our tasks in our training, we had to face few problems also and they are Client Data Sheet was not updated, most of them had been shown with wrong information.  Most of the clients were not giving appointments and some of them did not even talk on phone.  Many of the time when we went to meet the clients with whom appointments was fixed, after reaching the client’s place they said we are not available and not even interested.  A big problem was transportation, Most of the students are out of the state and not having vehicle, We faced lot many problems to meet the clients at different corners of Ahmedabad.  At angel while calling to the customers, it happened that we did not have sufficient phone available.  Training room was pre-occupied by full time joined fresher employee. We faced this problem only 2 to 3 times.  Variable strategy to execute the tasks  Wastage of time because of a poor time management by Angel

Suggestions to Improve 54


 There should be a fixed strategy for SIP training.  Team work should be there.  Data should be up to date, so that we can save the time.  Participation should be there.  We should utilize every second.  The MIS Procedure of company was not proper.

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Industry Analysis Industry Analysis at Indian level 1. Introduction There are two types of market in India. MONEY MARKET Money market is a market for debt securities that pay off in the short term usually less than one year, for example the market for 90days treasury bills. This market encompasses the trading and issuance of short term non equity debt instruments including treasury bills, commercial papers, bankers acceptance, certificates of deposits, etc. In other word we can also say that the Money Market is basically concerned with the issue and trading of securities with short term maturities or quasi-money instruments. The Instruments traded in the money-market are Treasury Bills, Certificates of Deposits (CDs), Commercial Paper (CPs), Bills of Exchange and other such instruments of short-term maturities (i.e. not exceeding 1 year with regard to the original maturity) CAPITAL MARKET Capital market is a market for long-term debt and equity shares. In this market, the capital funds comprising of both equity and debt are issued and traded. This also includes private placement sources of debt and equity as well as organized markets like stock exchanges. Capital market can be divided into Primary and Secondary Markets. Primary Market In the primary market, securities are offered to public for subscription for the purpose of raising capital or fund. Secondary market is an 56


equity trading avenue in which already existing/pre- issued securities are traded amongst investors. Secondary market could be either auction or dealer market. While stock exchange is the part of an auction market, Over-the-Counter (OTC) is a part of the dealer market. Secondary Market Secondary Market refers to a market where securities are traded after being initially offered to the public in the primary market and/or listed on the Stock Exchange. Majority of the trading is done in the secondary market. Secondary market comprises of equity markets and the debt markets. For the general investor, the secondary market provides an efficient platform for trading of his securities. For the management of the company, Secondary equity markets serve as a monitoring and control conduit—by facilitating value-enhancing control activities, enabling implementation of incentive-based management contracts, and aggregating information (via price discovery) that guides management decisions.

Difference between the primary market and the secondary market In the primary market, securities are offered to public for subscription for the purpose of raising capital or fund. Secondary market is an equity trading avenue in which already existing/pre- issued securities are traded amongst investors. Secondary market could be either auction or dealer market. While stock exchange is the part of an auction market, Over-the-Counter (OTC) is a part of the dealer market.

Main financial products/instruments dealt in the secondary market  Equity: The ownership interest in a company of holders of its common and preferred stock. The various kinds of equity shares are as follows –  Equity Shares:

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 An equity share, commonly referred to as ordinary share also represents the form of fractional ownership in which a shareholder, as a fractional owner, undertakes the maximum entrepreneurial risk associated with a business venture. The holders of such shares are members of the company and have voting rights. A company may issue such shares with differential rights as to voting, payment of dividend, etc.  Rights Issue/ Rights Shares: The issue of new securities to existing shareholders at a ratio to those already held.  Bonus Shares: Shares issued by the companies to their shareholders free of cost by capitalization of accumulated reserves from the profits earned in the earlier years.  Preferred Stock/ Preference shares: Owners of these kind of

shares are entitled to a fixed dividend or dividend calculated at a fixed rate to be paid regularly before dividend can be paid in respect of equity share. They also enjoy priority over the equity shareholders in payment of surplus. But in the event of liquidation, their claims rank below the claims of the company’s creditors, bondholders / debenture holders.  Cumulative Preference Shares: A type of preference shares on which dividend accumulates if remains unpaid. All arrears of preference dividend have to be paid out before paying dividend on equity shares.  Cumulative Convertible Preference Shares: A type of preference shares where the dividend payable on the same accumulates, if not paid. After a specified date, these shares will be converted into equity capital of the company.  Participating Preference Share: The right of certain preference shareholders to participate in profits after a specified fixed dividend contracted for is paid. Participation right is linked with the quantum of dividend paid on the equity shares over and above a particular specified level.

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 Security Receipts: Security receipt means a receipt or other security, issued by a securitisation company or reconstruction company to any qualified institutional buyer pursuant to a scheme, evidencing the purchase or acquisition by the holder thereof, of an undivided right, title or interest in the financial asset involved in securitisation.  Government securities (G-Secs): These are sovereign (credit

risk-free) coupon bearing instruments which are issued by the Reserve Bank of India on behalf of Government of India, in lieu of the Central Government's market borrowing programme. These securities have a fixed coupon that is paid on specific dates on half-yearly basis. These securities are available in wide range of maturity dates, from short dated (less than one year) to long dated (upto twenty years).  Debentures: Bonds issued by a company bearing a fixed rate of interest usually payable half yearly on specific dates and principal amount repayable on particular date on redemption of the debentures. Debentures are normally secured/ charged against the asset of the company in favour of debenture holder.  Bond: A negotiable certificate evidencing indebtedness. It is normally unsecured. A debt security is generally issued by a company, municipality or government agency. A bond investor lends money to the issuer and in exchange, the issuer promises to repay the loan amount on a specified maturity date. The issuer usually pays the bond holder periodic interest payments over the life of the loan. The various types of Bonds are as follows Zero Coupon Bond: Bond issued at a discount and repaid at a face value. No periodic interest is paid. The difference between the issue price and redemption price represents the return to the holder. The buyer of these bonds receives only one payment, at the maturity of the bond.  Convertible Bond: A bond giving the investor the option to convert the bond into equity at a fixed conversion price.

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ďƒ˜ Commercial Paper: A short term promise to repay a fixed amount that is placed on the market either directly or through a specialized intermediary. It is usually issued by companies with a high credit standing in the form of a promissory note redeemable at par to the holder on maturity and therefore, doesn’t require any guarantee. Commercial paper is a money market instrument issued normally for a tenure of 90 days. Treasury Bills: Short-term (up to 91 days) bearer discount security issued by the Government as a means of financing its cash requirements.

2. SEBI Security Exchange Board of India SEBI & Its Role In Secondary Market The SEBI is the regulatory authority established under Section 3 of SEBI Act 1992 to protect the interests of the investors in securities and to promote the development of, and to regulate, the securities market and for matters connected therewith and incidental thereto. Securities and Exchange Board of India constituted under the Resolution of the Government of India in the Department of Economic Affairs No.1 (44)SE/86, dated the 12th day of April, 1988; The Board shall consist of the following members, namely:1. A Chairman 2. Two members from amongst the officials of the Ministry of the Central Government dealing with Finance (and administration of the Companies Act, 1956;) 2 of 1934 3. One member from amongst the officials of [the Reserve Bank 4. Five other members of whom at least three shall be the whole-time members

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BOMBAY STOCK EXCHANGE OF INDIA LIMITED Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich heritage. Popularly known as "BSE", it was established as "The Native Share & Stock Brokers Association" in 1875. It is the first stock exchange in the country to obtain permanent recognition in 1956 from the Government of India under the Securities Contracts (Regulation) Act, 1956. The Exchange's pivotal and pre-eminent role in the development of the Indian capital market is widely recognized and its index, SENSEX, is tracked worldwide. Earlier an Association of Persons (AOP), the Exchange is now a demutualised and corporative entity incorporated under the provisions of the Companies Act, 1956, pursuant to the BSE (Corporatization and Demutualization) Scheme, 2005 notified by the Securities and Exchange Board of India (SEBI). With demutualization, the trading rights and ownership rights have been de-linked effectively addressing concerns regarding perceived and real conflicts of interest. The Exchange is professionally managed under the overall direction of the Board of Directors. The Board comprises eminent professionals, representatives of Trading Members and the Managing Director of the Exchange. The Board is inclusive and is designed to benefit from the participation of market intermediaries. In terms of organization structure, the Board formulates larger policy issues and exercises over-all control. The committees constituted by the Board are broad-based. The day-to-day operations of the Exchange are managed by the Managing Director and a management team of professionals. The Exchange has a nation-wide reach with a presence in 417 cities and towns of India. The systems and processes of the Exchange are designed to safeguard market integrity and enhance transparency

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in operations. During the year 2004-2005, the trading volumes on the Exchange showed robust growth. The Exchange provides an efficient and transparent market for trading in equity, debt instruments and derivatives. The BSE's On Line Trading System (BOLT) is a proprietary system of the Exchange and is BS 7799-2-2002 certified. The surveillance and clearing & settlement functions of the Exchange are ISO 9001:2000 certified. Bombay Stock Exchange Limited (BSE) which was founded in 1875 with six brokers has now grown into a giant institution with over 874 registered Broker-Members spread over 380 cities across the country. Today, BSE's Wide Area Network (WAN) connecting over 8000 BSE Online Trading (BOLT) System Trader Work Stations (TWS) is one of the largest of its kind in the country. With a view to provide efficient and integrated services to the investing public through the members and their associates in the operations pertaining to the Exchange, Bombay Stock Exchange Limited (BSE) has set up a unique Member Services and Development to attend to the problems of the Broker-Members. Member Services and Development Department is the single point interface for interacting with the Exchange Administration to address to Members' issues. The Department takes care of various problems and constraints faced by the Members in various products such as Cash, Derivatives, Internet Trading, and Processes such as Trading, Technology, Clearing and Settlement, Surveillance and Inspection, Membership, Training, Corporate Information, etc.

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COMMODITY EXCHANGES There are three categories:  NCDEX  MCX

.  NMCE 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 marketplaces 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. In 1872, a group of Manhattan dairy merchants got together to bring chaotic condition in New York market to a system in terms of storage, pricing, and transfer of agricultural products. In 1933, during the Great Depression, the Commodity Exchange, Inc., was established in New York through the merger of four small exchanges – the National Metal Exchange, the Rubber Exchange of New York, the National Raw Silk Exchange, and the New York Hide Exchange. 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. 63


The three exchanges are:

1. National Commodity & Derivatives Exchange Limited (NCDEX) 2. Multi Commodity Exchange of India Limited (MCX) 3. 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. National Commodity & Derivatives Exchange Limited (NCDEX) National Commodity & Derivatives Exchange Limited (NCDEX) located in Mumbai is a public limited company incorporated on April 23, 2003 under the Companies Act, 1956 and had commenced its operations on December 15, 2003.This is the only commodity exchange in the country promoted by national level institutions. It is promoted by ICICI Bank Limited, Life Insurance Corporation of India (LIC), National Bank for Agriculture and Rural Development (NABARD) and National Stock Exchange of India Limited (NSE). It is a professionally managed online multi commodity exchange. NCDEX is regulated by Forward Market Commission and is subjected to various laws of the land like the Companies Act, Stamp Act, Contracts Act, Forward Commission (Regulation) Act and various other legislations. 2. Multi

Commodity

Exchange of India Limited(MCX)

Headquartered in Mumbai Multi Commodity Exchange of India Limited (MCX), is an independent and de-mutulised exchange with a permanent recognition from Government of India. Key shareholders of MCX are Financial Technologies (India) Ltd., State Bank of India, Union Bank of India, Corporation Bank, Bank of India and Canara Bank. MCX facilitates online trading, clearing and settlement operations for commodity futures markets across the country. 64


MCX started offering trade in November 2003 and has built strategic alliances with Bombay Bullion Association, Bombay Metal Exchange, Solvent Extractors’ Association of India, Pulses Importers Association and Shetkari Sanghatana.

4. National Multi-Commodity Exchange of India Limited (NMCEIL)

National Multi Commodity Exchange of India Limited (NMCEIL) is the first de-mutualzed, Electronic Multi-Commodity Exchange in India. On 25th July, 2001, it was granted approval by the Government to organize trading in the edible oil complex. It has operationalised from November 26, 2002. It is being supported by Central Warehousing Corporation Ltd., Gujarat State Agricultural Marketing Board and Neptune Overseas Limited. It got its recognition in October 2000. Commodity exchange in India plays an important role where the prices of any commodity are not fixed, in an organized way. Earlier only the buyer of produce and its seller in the market judged upon the prices. Others never had a say. Today, commodity exchanges are purely speculative in nature. Before discovering the price, they reach to the producers, end-users, and even the retail investors, at a grassroots level. It brings a price transparency and risk management in the vital market. A big difference between a typical auction, where a single auctioneer announces the bids, and the Exchange is that people are not only competing to buy but also to sell. By Exchange rules and by law, no one can bid under a higher bid, and no one can offer to sell higher than someone else’s lower offer. That keeps the market as efficient as possible, and keeps the traders on their toes to make sure no one gets the purchase or sale before they do.

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NSE - A New ideology The broad objective for which the exchange was set up has made it to play a leading role in enlarging the scope of market reforms in securities market in India. During last one decade it has been playing the role of a catalytic agent in reforming the markets in terms of market microstructure and in evolving the best market practices keeping in mind the investors. The Exchange is set up on a de-mutual zed model wherein the ownership, management and trading rights are in the hands of three different sets of people. This has completely eliminated any conflict of interest. This has helped NSE to aggressively pursue policies and practices within a public interest framework. NSE's nationwide, automated trading system has helped in shifting the trading platform from the trading hall in the premises of the exchange to the computer terminals at the premises of the trading members located at different geographical locations in the country and subsequently to the personal computers in the homes of investors and even to hand held portable devices for the mobile investors. It has been encouraging corporation of membership in securities market. It has also proved to be instrumental in ushering in scrip less trading and providing settlement guarantee for all trades executed on the Exchange. Settlement risks have also been eliminated with NSE's 66


innovative endeavors in the area of clearing and settlement viz., establishment of the clearing corporation (NSCCL), setting up a settlement guarantee fund (SGF), reduction of settlement cycle, implementing on-line, real-time risk management systems, dematerialization and electronic transfer of securities to name few of them. As a consequence, the market today uses state-of-the-art information technology to provide an efficient and transparent trading, clearing and settlement mechanism. In order to take care of investors interest, it has also created an investors protection fund (IPF), that would help investors who have incurred financial loss due to default of brokers.

Ownership and Management the NSE The day-to-day management of the Exchange is delegated to the Managing Director and CEO who is supported by a team of professional staff. Therefore, though the role of trading members at NSE is to the extent of providing only trading services to the investors, the Exchange involves trading members in the process of consultation and participation in vital inputs towards decision making.

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Market Segments and Products NSE provides an electronic trading platform for of all types of securities for investors under one roof - Equity, Corporate Debt, Central and State Government Securities, T-Bills, Commercial Paper, Certificate of Deposits (CDs), Warrants, Mutual Funds units, Exchange Traded Funds, Derivatives like Index Futures, Index Options, Stock Futures, Stock Options, Futures on Interest Rates etc., which makes it one of the few exchanges in the world providing trading facility for all types of securities on a single exchange. The Exchange provides trading in 3 different segments viz.  Wholesale debt market (WDM)  Capital market (CM) segment and  The futures & options (F&O) segment.

4. NSE FAMILY

NSCCL National Securities Clearing Corporation Ltd. (NSCCL), a wholly-owned subsidiary of NSE, was incorporated in August 1995 and commenced clearing operations in April 1996. It was the first clearing corporation in the country to provide notation/settlement guarantee that revolutionized the entire concept of settlement system in India. It was set up to bring and 9 sustain confidence in clearing and settlement of securities; to promote and maintain short and consistent settlement cycles; to provide counter-party risk guarantee, and to operate a tight risk containment system. It carries out the clearing and settlement of the trades executed in the equities and derivatives segments of the NSE.

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IISL India Index Services and Products Limited (IISL), a joint venture of NSE and Credit Rating Information Services of India Limited (CRISIL), was set up in May 1998 to provide indices and index services. It has a consulting and licensing agreement with Standard and Poor's (S&P), the world's leading provider of invest able equity indices, for co-branding equity indices. IISL pools the index development efforts of NSE and CRISIL into a coordinated whole. It is India's first specialized company which focuses upon the index as a core product. It provides a broad range of products and professional index services. It maintains over 70 equity indices comprising broadbased benchmark indices, sectoral indices and customized indices. Many investment and risk management products based on IISL indices have been developed in the recent past. These include index based derivatives on NSE, a number of index funds and India's first exchange traded fund.

NSDL Prior to trading in a dematerialized environment, settlement of trades required moving the securities physically from the seller to the ultimate buyer, through the seller's broker and buyer's broker, which involved lot of time and the risk of delay somewhere along the chain.

NSE.IT NSE.IT Limited, a 100% technology subsidiary of NSE, was incorporated in October 1999 to provide thrust to NSE’s technology edge, concomitant with its overall goal of harnessing latest technology for optimum business use. It provides the securities industry with technology that ensures transparency and efficiency in the trading, clearing and risk

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management systems. Additionally, NSE.IT provides consultancy services in the areas of data warehousing, internet and business continuity plans. NCDEX NSE joined hand with other financial institutions in India viz., ICICI Bank, NABARD, LIC, PNB, CRISIL, Canara Bank and IFFCO to promote the NCDEX which provide a platform for market participants to trade in wide spectrum of commodity derivatives. Currently NCDEX facilitates trading of 37 agro based commodities, 1 base metal and 2 precious metal.

5. LISTING OF SECURITIES The stocks, bonds and other securities issued by issuers require listing for providing liquidity to investors. Listing means formal admission of a security to the trading platform of the Exchange. It provides liquidity to investors without compromising the need of the issuer for capital and ensures effective monitoring of conduct of the issuer and trading of the securities in the interest of investors. The issuer wishing to have trading privileges for its securities satisfies listing requirements prescribed in the relevant statutes and in the listing regulations of the Exchange. It also agrees to pay the listing fees and comply with listing requirements on a continuous basis. All the issuers who list their securities have to satisfy the corporate governance requirement framed by regulators.

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6. MEMBERSHIP ADMINISTRATION The trading in NSE has a three tier structure-the trading platform provided by the Exchange, the broking and intermediary services and the investing community. The trading members have been provided exclusive rights to trade subject to their continuously fulfilling the obligation under the Rules, Regulations, Byelaws, Circulars, etc. of the Exchange. The trading members are subject to its regulatory discipline. Any entity can become a trading member by complying with the prescribed eligibility criteria and exit by surrendering trading membership. There are no entry/exit barriers to trading membership.

7. INVESTOR GRIEVANCES Investors are the backbone of the securities market. Protection of their interests is paramount for NSE. In furtherance of their interests, NSE has put in place systems to ensure availability of adequate, up-to-date and correct information to investors to enable them to take informed decisions. It ensures that critical and pricesensitive information reaching the exchange is made available to all classes of investor at the same point of time. Such price-sensitive information as bonus announcements, mergers, new line of business, etc. received from the companies is disseminated to all the market participants through the network of NSE terminals all over India. Action is initiated by the Exchange whenever any kind of price sensitive information is not provided to the Exchange at the prescribed time by companies listed on the Exchange.

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8. DEMATERIALISATION & REMATERIALISATION DEMATERIALISATION Meaning Dematerialisation is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form and credited into the investor's account with his/her DP. Dematerialising securities (physical holding into electronic holding) In order to dematerialise physical securities one has to fill in a DRF (Demat Request Form) which is available with the DP and submit the same along with physical certificates one wishes to dematerialise. Separate DRF has to be filled for each ISIN Number. The complete process of dematerialisation is outlined below:  Surrender certificates for dematerialisation to your depository participant.  Depository participant intimates Depository of the request through the system.  Depository participant submits the certificates to the registrar of the Issuer Company. Registrar confirms the dematerialisation request from depository.  After dematerialising the certificates, Registrar updates accounts and informs depository of the completion of dematerialisation.  Depository updates its accounts and informs the depository participant.  Depository participant updates the demat account of the investor.

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REMATERIALISATION The process of re-materialisation is used to convert the electronic holding into physical holdings. If one wishes to get back his securities in the physical form one has to fill in the RRF (Re-mat Request Form) and request his DP for re-materialisation of the balances in his securities account. The process of re-materialisation is outlined below:  One makes a request for dematerialisation.  Depository participant intimates depository of the request through the system.  Depository confirms dematerialisation request to the registrar.  Registrar updates accounts and prints certificates.  Depository updates accounts and downloads details to depository participant. Registrar dispatches certificates to investor.

9. Broker & Sub-Broker Broker A broker is a member of a recognized stock exchange, who is permitted to do trades on the screen-based trading system of different stock exchanges. He is enrolled as a member with the concerned exchange and is registered with SEBI. Sub Broker A sub broker is a person who is registered with SEBI as such and is affiliated to a member of a recognized stock exchange.

10. PAY-IN DAY AND PAY- OUT DAY Pay in day is the day when the brokers shall make payment or delivery of securities to the exchange. Pay out day is the day when the exchange makes payment or delivery of securities to the broker.

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Settlement cycle is on T+2 rolling settlement basis w.e.f. April 01, 2003. The exchanges have to ensure that the pay out of funds and securities to the clients is done by the broker within 24 hours of the payout. The Exchanges will have to issue press release immediately after pay out.

11. Auction What is an Auction? The Exchange purchases the requisite quantity in the Auction Market and gives them to the buying trading member. The shortages are met through auction process and the difference in price indicated in contract note and price received through auction is paid by member to the Exchange, which is then liable to be recovered from the client.

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Major Players of the Industry S. S. Kantilal Ishwarlal Securities Pvt. Ltd. (sharekhan.com): Sharekhan, India’s leading stock broker is the retail arm of SSKI, and offers you depository services and trade execution facilities for equities, derivatives and commodities backed with investment advice tempered by decades of broking experience. A research and analysis team is constantly working to track performance and trends. That’s why Sharekhan has the trading products, which are having one of the highest success rates in the industry. Sharekhan is having 240 share shops in 110 cities; the largest chain of retail share shops in India is of Sharekhan. In future, Sharekhan is planning to enter in Mutual funds, Insurance sector and banking sector to expand beyond the market currently covered by it. And it has started MF (Mutual Funds) on priority basis but wants to grow in it.

ICICI Web Trade Ltd. (ICICIdirect.com) ICICIdirect.com was the first entrant into e-broking. ICICdirect.com provides the 3-in-1 to the users which ties in their saving bank account and their Demat account to their brokerage account electronically. This integration ensures that money is transferred to/from their bank account and the shares are transferred from/to their Demat account automatically without writing any cheques or transfer instructions while carrying out their trades in shares. ICICIdirect.com has the option of trading in shares in cash, margin or spot segments. An investor can also invest in 14 Mutual Funds (Prudential ICICI MF, Franklin Templeton India MF, Alliance Capital MF, JM MF, Birla Sun Life MF, Sundaram MF, IL&FS MF, 78


Principal MF, HDFC MF, Standard Chartered MF, Reliance Capital MF, Kotak Mahindra MF, TATA MF and DSP MERRILL LYNCH MF) through their trading account.

5Paisa.com: 5paisa is the trade name of India Infoline Securities Private Limited (5paisa), member of National Stock Exchange and The Stock Exchange, Mumbai. 5paisa is a wholly owned subsidiary of India Infoline Ltd, India’s leading and most popular finance and investment portal. 5paisa has emerged as one of leading players in ebroking space in India. The company’s brokerage is one of the lowest in the industry. It also provides the research on commodities. Investors can benefit from its analysis and advice available at the click of the mouse. For those who prefer to trade the traditional way, India Infoline investor points are available across the country. India Infoline was founded by a group of professionals in 1995. Its institutional investors include Intel Capital, one of the leading technology companies in the world promoted by the UK government, ICICI, TDA and Reeshanar. The company offers a slew of products such as stock and derivatives broking, commodities broking and mutual funds.

Kotak Securities Limited (kotakstreet.com) Kotak Securities Ltd., a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25% - one of the world’s leading investment banks and brokerage firms) is India’s leading stock broking house with a market share of 5 - 6 %. Kotak Securities Ltd. has been the largest in IPO distribution - It was ranked number One in 2003-04 as Book Running Lead Managers in public equity offerings by PRIME Database. It has also won the Best Equity House Award from Finance Asia - April 2004. Kotak Securities Ltd is also a depository participant with 79


National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the company for executing the transactions and the depository services for settling them. The company has 42 branches servicing around 1, 00,000 customers. Kotakstreet.com the online division of Kotak Securities Limited offers Internet Broking services and also online IPO and Mutual Fund Investments. Kotak Securities Limited manages assets over 1700 crores under Portfolio Management Services (PMS) which is mainly to the high end of the market. Kotak Securities Limited has newly launched “Kotak Infinity� as a distinct discretionary Portfolio Management Service which looks into the middle end of the market.

India Bulls Indiabulls is India's leading retail financial services company with 77 locations spread across 64 cities. Its size and strong balance sheet allows providing varied products and services at very attractive prices, our over 750 Client Relationship Managers are dedicated to serving your unique needs. Indiabulls is lead by a highly regarded management team that has invested crores of rupees into a world class Infrastructure that provides real-time service & 24/7 access to all information and products. The Indiabulls Professional Network offers real-time prices, detailed data and news, intelligent analytics, and electronic trading capabilities, right at your finger-tips. This powerful technology is complemented by our knowledgeable and customer focused Relationship Managers. Indiabulls offers a full range of financial services and products ranging from Equities, Derivatives, Demat services and Insurance to enhance wealth and to achieve the financial goals.

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Motilal Oswal Securities Ltd. (MOSt): One of the top-3 stock-broking houses in India, with a dominant position in both institutional and retail broking, MOSt is amongst the bestcapitalized firms in the broking industry in terms of net worth. MOSt was founded in 1987 as a small sub-broking unit, with just two people running the show. Focus on customer-first-attitude, ethical and transparent business practices, respect for professionalism, research-based value investing and implementation of cutting-edge technology have enabled it to blossom into a thousand-member team. The institutional business unit has relationships with several leading foreign institutional investors (FIIs) in the US, UK, Hong Kong and Singapore. In a recent media report MOSt was rated as one of the top-10 brokers in terms of business transacted for FIIs. The retail business unit provides equity investment solutions to more than 50,000 investors through 270 outlets spanning 150 cities and 22 states. MOSt provides Advice-Based Broking, Portfolio Management Services (PMS), E-Broking Services, Depository Services, Commodities Trading, and IPO and Mutual Fund Investment Advisory Services. Its Value PMS Scheme gave a 160% post-tax return for the year ended March 2004. In Asia Money Brokers Poll 2003 MOSt has been rated as the Best Domestic Research House- Mega Funds ,while in 2000 and 2002 it has been rated as the Best Domestic Equity Research House and Second best amongst Indian Brokerage firms respectively.

HDFC Securities Ltd (HDFCsec) HDFCsec is a brand brought to you by HDFC Securities Ltd, which has been promoted by the HDFC Bank & HDFC with the objective of providing the diverse customer base of the HDFC Group and other investors a capability to transact in the Stock Exchanges & other financial market transactions. The services comprise online buying and selling of equity shares on the National Stock Exchange (NSE). Buying and selling of select corporate debt and government securities on the NSE would be introduced in a subsequent phase. In a few months, they will also start offering the following online trading services on the BSE and NSE: 81


1. Buying and selling of shares on the BSE 2. Arbitrage between NSE & BSE 3. Trading in Derivatives on the NSE 4. Margin trading products. They are also planning to include buying and selling of Mutual Funds, IPO subscriptions, Right issues, purchase of Insurance policies and asset financing.

Different types of company involved in online trading:         

HDFC SECURITIES LIMITED ICICI WEB TRADE LIMITED KOTAK STREET LIMITED FIVE PAISA SECURITIES LIMITED INDIABULLS SECURITIES LIMITED MONEYPORE SECURITIES LIMITED SHARE KHAN SECURITIES LIMITED GEOJIT SECURITIES OTHERS.

5PAISA.COM       

Trade in BSE,NSE Trade in multicommodity exchange Trade in national commodity exchange Access to research and technical analysis V-SAT, internet connectivity Online back office, software & support Liberal deposit, margin & exposure terms

KOTAK STREET.COM  Easy equities 82


     

Easy mutual fund Derivatives Research on sms Margin finance Call & trade Easy IPO over phones

SHAREKHAN.COM  Classic account  Trading on NSE  Speed trade  Speed trade plus  Single screen trading terminal  Real-time streaming quotes  Live tic-by-tic intra-day charting  Instant order/trade confirmations in the same window  Hot keys similar to a broker’s terminal  Back-up facility to place trades on direct phone lines INDIABULLS.COM  Trade in equity  Trading through terminal  Trade in derivatives  Back-up facility to place trades on direct phone lines  Speed trade plus

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 Offline support through messenger  Access research and technical research  Own transaction engine  High transaction speed HDFC SECURITIES.COM  Trading on NSE  Mutual fund  Online back office, software & support  Live quotes update system Market share of online trading portals at present Indiabulls 10% 3% 5%

5paisa.com

20%

Moneypore.com Hdfcsec.com

10%

10%

ICICIDirect.com Kotakstreet.com

29%

10% 3%

IL&FS Sharekhan.com others

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SWOT Analysis

Introduction SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. An example of a strategic planning technique that incorporates an objective-driven SWOT analysis is Strategic Creative Analysis (SCAN). Strategic Planning, including SWOT and SCAN analysis, has been the subject of much research. ďƒ˜ Strengths: attributes of the person or company that are helpful to achieving the objective. ďƒ˜ Weaknesses: attributes of the person or company that are harmful to achieving the objective.

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ďƒ˜ Opportunities: external conditions that are helpful to achieving the objective. ďƒ˜ Threats: external conditions which could do damage to the business's performance.

Identification of SWOT is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOT. First, the decision makers have to determine whether the objective is attainable, given the SWOT. If the objective is NOT attainable a different objective must be selected and the process repeated. The SWOT analysis is often used in academia to highlight and identify strengths, weaknesses, opportunities and threats. It is particularly helpful in identifying areas for development.

Use of SWOT Analysis The usefulness of SWOT analysis is not limited to profitseeking organizations. SWOT analysis may be used in any decision-making situation when a desired end-state (objective) has been defined. Examples include: non-profit organizations, governmental units, and individuals. SWOT analysis may also be used in pre-crisis planning and preventive crisis management. SWOT analysis may also be used in creating a recommendation during a viability study.

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SWOT-landscape analysis

The SWOT-landscape grabs different managerial situations by visualizing and foreseeing the dynamic performance of comparable objects according to findings by Brendan Kitts, Leif Edvinsson and Tord Beding (2000). Changes in relative performance are continuously identified. Projects (or other units of measurements) that could be potential risk or opportunity objects are highlighted. SWOT-landscape also indicates which underlying strength/weakness factors that have had or likely will have highest influence in the context of value in use

SWOT Analysis of angel broking ltd. During this training at ANGEL BROKING LTD, we 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.

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Strengths:  Well-maintained infrastructure.  Dedicated, Intelligent and Loyal staff.  On-line Trading products.  Lowest brokerage and other charges w.r.t. 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.  Large retail customer base  Best online software Odin which within 5 second  management information system is quite good as compare to competitors Weaknesses:  Less awareness in the market.

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 Time consuming process for account opening, resolving the problems of the customers, etc.  Service quality is not maintained accordingly how they are promoted.  Concentrate more on HNI (High Net-worth Individual) client  employee attrition rate is high especially B.D.O. & Dealers  all branches are not working in a synchronized way

Opportunities:  Large primary market to sit as a book runner for the other companies just like Kotak securities ltd. that runs the books of share holdings for many companies  Slope of stock market towards delivery based transactions.  there are only 2 % to 3% peoples are investing in share market so huge opportunities are there  Large potential market for delivery and intra-day transactions.

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 Open interest of the people to enter in stock market for investing.  Attract the customers who are dissatisfied with other brokers & DPs.  An indirect opportunity generated by the market from its bullishness. 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.  Indirect threat from instable stock market, i.e., low/no profit of Sharekhan’s clients would lead them to go for other broker/DP.

Past Performance of Angel Broking Ltd  June, 2008

‘Major Volume Driver’ for 2007

 August, 2008

Crossed 5000000 Trading Accounts 90


 November, 2007 ‘Major Volume Driver’ for 2007  March, 2007

Crossed 2000000 Trading Accounts

 December, 2006

Created 2500 Business Associates

 October, 2006

‘Major Volume Driver’ for 2006

 September 2006

Launched Mutual Fund and IPO Business

 July, 2006

Launched the PMS Function

 March, 2006

Crossed 100000 Trading Account

 October, 2005

‘Major Volume Driver’ for 2005

 September, 2004 Launched Online Trading Platform  April, 2004

Initiated Commodities Broking Division

 April, 2003

First Publish Research Report

 November, 2002 Angel’s First Investor Seminar  March, 2002

Developed Web-Enabled Back Office Software

 November, 1998 Angel Capital & Debt Market Ltd. Incorporated  December, 1997

Angel Broking Ltd. Incorporated

Products & Services

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Our intensive research process  Industry wise specialized team  Bottom-up approach: Identifying under valued stock with sound management  Top -down Approach: identifying promising sector & then companies with good valuations  Company visits and interaction with top & second line manager  Thorough analysis of company’s financial data , promise vs performance & industry trends  Estimates for future years’ earnings based on industry trends & company business plans Our Research & Advisory Products Market outlook  Provides price-sensitive information just before opening bell and analysis its impact on the market in terms of :

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 Key corporate development  Policy announcement  Geo-political news & views Technical Analysis  Analysis trading patterns and a view on the market position of key stocks/sectors for the next trading session  Short term (1-5 days) & medium term (10-20 days) views  Tracks individual scrip, the sensex & Nifty & other indices Derivatives analysis report  FII activity in the F&O Segment  Change in open market  Put call ratio  Cost of carrying cost  Index- based derivative products

E-Broking E-broking Unique Online Trading products customized to suit different Investment / Trading needs 

Angel Investor

Angel Trade

Angel Diet

Angel Anywhere

Unique Online Trading Products Customized to suit different investment/Trading needs

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Angel Investor  User-friendly browser for investors  Easy online trading platform  Works in proxy and firewall system set up  Integrated Back office: Access account information – anytime, anywhere  Streaming quotes  Refresh static rates when required  Multiple exchanges on single screen  Online fund transfer facility Angel Trade  User-friendly browser-based online trading platform.  Streaming quotes  Can be used in proxy as well as firewall environments.  Advantage to access your account from anywhere. Angel Diet  Application-based platform for day traders  Hi-speed trading terminal on your desktop  Streaming quotes for real time rate updates  Multiple exchanges on single screen  Online fund transfer facility  Integrated Back office: Access account information – anytime, anywhere Angel Anywhere

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 Application-based platform for day traders  Trading based on historical charts and technical tools  Streaming quotes for real time rate updates  Online fund transfer facility  Integrated Back office: Access account information – anytime, anywhere Back-Office Online client details includes  Ledger Balance  Cash Deposits with Angel  Securities Holdings  Charges levied/Paid in the client’s account  Last auction/close-outs offered  DP Holding for the last 3 transactions

Portfolio Management Services  Managed by our prominent Fund Manager who are regularly fetched by TV media for their views on stocks  Understanding client’s risk & return profile  Offering the right blend of sector and stock exposures  Giving dedicated investement Advisors  Giving a choice of different schemes to suit every individual investor preferences  Catering to individuals, HUFs, Corporate, NRIs, Trusts

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Angel Currency Future  Comprehensive Coverage on currencies  Reports covering in-depth fundamentals of the currencies  Latest economics data releases with their likely impact, along with “Technical Levels”  Comprehensive reports on currencies ideally suited for any investors / Trader

Depository Services  No physical instruction required for the client’s sell obligations  Lowest transaction charges in the country  Acceptances & execution of instruction on fax  A combined monthly “Bill Transaction. Holding cum Ledger statement  Efficient Pledge Mechanism

Angel gold  Personalized investment advisory  Portfolio Restructuring and continuous monitoring  Guidance experienced research team  Periodic Group meeting with investors .

Pre-Paid Brokerage 96


 Zero Account opening charges  Attractive Brokerage rates  Free DP AMC for 1 year  Assured gifts worth thousands with every account  Easy and fast recharge  Free Financial investment Application with every account

Specialized Products Margin Funding  facility to allow clients to take higher exposer  instant liquidity for clients  margin is deposited in cash as well as collaterals  Enabling clients grab Earning Opportunity.

Value Added Services NRI Services  NRI Services Desk for personalized Assistance.  Dedicated offline Equity Dealing Desk.  Online Equity dealing Desk  NRI Investment Advisory Desk  PAN Card Assistance

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 Support for banking-PIS Accounts  Portfolio Management, Mutual Fund, IPO services.

Insurance Angel Offers  Products to meet the objectives of risk coverage .investment and tax planning.  Assessment of your insurance needs after proper risk profiling.  A wide array of individual life cover plans to meet your protection, savings,and retirement needs.

Mutual funds  An integrated platform for online /offline mutual funds  Tie-up with all major AMCS  Dedicate Relationship Manager for Business Partners  Exclusive MF Research Reports by angel{daily,weekly,monthly,mutual fund reports}. Loans, IPO and fixed Deposits  Products distributed by angel include  Unsecured loans  personal/business loans against properties  Secured loans.

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 home loans/loan against properties  loan against securities/gold, IPO-Distribution , Advisory and help desk , Fixed Deposits ,NHB term Deposits. Risk management at angel  An efficient risk management system which enables the customer to effectively monitor the positions.  The client report can be accessed from any place and gives categorical display of the ledger balance deposits and holdings.

Data Analysis The first and simplest analytical step in data analysis is to describe the data — for example, summarize its statistical attributes (such as means and standard deviations), visually review it using charts and graphs, and look at the distribution of values of the fields in your data. But data description alone cannot provide an action plan. You must build a predictive model based on patterns determined from known results, then test that model on results outside the original sample. A good model should never be confused with reality (you know a road map isn’t a perfect representation of the actual 99


road), but it can be a useful guide to understanding your business. Data analysis can be used for both classification and regression problems. In classification problems you’re predicting what category something will fall into – for example, whether a person will be a good credit risk or not, or which of several offers someone is most likely to accept. In regression problems you’re predicting a number such as the probability that a person will respond to an offer.

Indian Brokerage Industry Introduction With the fall in the turnover in the Equity segment by over 30 per cent since April, revenue of broking houses have taken a major hit. Compared with the previous few quarters, the net profits of many leading broking houses have nearly halved despite the revenues declining marginally. The results posted by broking firms have been extremely poor in line with the market conditions, having reported either a fall in net profit or, at best, only a marginal rise in their bottom line for the period. The worst-hit seems to be the broking firms which are facing challenges in their declining business apart from stringent reluctance of financial institutions to lend them money for working capital. Broking firms had an excellent rally in the previous fiscal and thus had extravagant plans of increasing their foothold across nation, and some of them even globally. With the current financial meltdown worldwide, most of them have not only put their expansion plans on hold but also are slowing down in current businesses. These firms were on a growth spree, adding branches and people across cities. The augmentation was also driven by the infusion of funds by the big private equity and foreign players wanting to invest in these broking outfits. The smaller broking outfits took a greater hit, as they struggled to meet their margin requirements due to liquidity constraints. Recently, trading terminals of 95 broker members were deactivated in the F&O segment and 29 deactivations occurred in the cash segment. In September, the terminals of 36 broker members were deactivated whereas in August it was only 11. There were 885 active trading members in the F&O 100


segment and 984 in the cash segment on NSE in October. The market scene appears bleak for the securities firms. Quite expected, these negative sentiments are reflecting in the stock prices of broking firms. Most of them have fallen by more than 75% from their highs early this year. After banking stocks, broking outfits have faced the brunt in the current financial turmoil. When the macro conditions were fine, invariably stock markets did perform well. Similarly, the downtrend in the economy is also reflected in the stock market.

Derivative Report  0.93%, while Minify future’s open interest decreased by 3.48%, as market closed at 3046.75 levels.  • Nifty January future is trading at premium of 6.85 points against premium of 10.25 points in previous trading session. While February future is trading at premium of 17.30 points.  • PCR-OI is at the same levels of 1.11. Due to build up in call as well as put options.  • IV of at the money option is 40.35%. Historical volatility has reduced from 56.95% to 55.24%.  • Stocks which are trading at decent positive cost of carry are RAJESHEXPO, FSL, BINDALAGRO, IFCI and CHAMBLFERT .

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Data Analysis of Customers Different customers have the different objectives/purpose for opening the account in Angel Broking Ltd., as per the survey done by us is as follow: Objective for A\C opening Commodity Investment IPO Trading Investment & Trading Investment Trading & IPO IPO & Trading Investment & IPO Others

No. of Customers 1 137 45 245 57 26 31 7 39

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Financial Restructuring Angel Broking Ltd. provides the service of Restructuring. As per the survey the chart is as follows:

Financial

900

800

700

600

500

400

S eries1

300

200

100

0 Interes ted in F inancial P lanning/ P ortfolio R estructuring

Y es

No

T otal

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Limitations Definition of perfection differs from individuals to individuals. No matter how meticulous one is, the study that is completely based on responses from a vast variety of people cannot be free from limitations. Though the present study aimed to achieve the abovementioned objectives in full earnest and accuracy, it was hampered due to certain limitations. Some of the limitations of this study may be summarized as follows:  Selection of the people who are under consideration as sample for the study may not be the best sample selected.  Sample size was limited due to the limited period allocated for the

survey.

 The selection of people to cover the various types of commodity trading ranging from agro products to energy and metals like gold and silver was tedious and time consuming.  Getting accurate responses from the respondents due to their inherent Problems, personality traits and mood fluctuations was a very difficult task.  Some respondents had to be re-contacted as per their convenience of time.  Some of the area in which the survey is carried out was very un –hygienic and over crowded.

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 Some data of customer is not proper. Like their contact number & address.

Findings  In are, which we ware given out of 800 clients we have mostly found that they are not interested in the financial portfolio restructuring. We found 90.7% no interested and 9.3% are interested in the city.  Most of the clients whom, we met Government employees, businessman, Hotels, malls, restaurants and chaiwala also. What about their interested in trading.  Most of the clients invested in the IPO, Trading, Investment, future and options and commodity markets. Out of 800 Most of the clients Interested in trading.

Awareness about angels new services

No. of respondents

Online trading Margin funding PMS ANGEL GOLD PREPAID BROKERAGE LIFE INSURANCE (BIRLA SUN LIFE) MUTUAL FUND FIXED DEPOSIT BOND

300 50 100 30 20 20 200 500 400

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Suggestion: From the above chart we can see that various customer are about online trading, on the other hand few people aware about angel gold and its prepaid brokerage services. Company should give focus on online customer and try to give more information about angel gold and prepaid to these existing clients and create interest among them to take advantage of these new services.

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BIBLIOGRAPHY BOOK Marketing Management Research Methodology Human Resource Production and Operation

Phillip Kotler Kooper Aswathapa Adam & Abert

Magazine Value Line Eagle Eye Business World NSDL

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Web Site

• • • • • • •

www.Angelbroking.com www.sski.com www.bseindia.com www.nseindia.com www.wikipedia.com www.researchandmarket.com www.scribd.com www.coolavenue.com www.hindubusinessonline.com www.investopedia.com www.moneybhai.com

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Customer-Relationship-Management for Angel Broking