CHAPTER 1

INTRODUCTION

1.1 INDUSTRY BACKGROUND

The Indian broking industry is one of the oldest trading industries that have been around even before the establishment of the BSE in 1875. Despite passing through number of changes in the post liberalization period, the industry has found its way onwards sustainable growth. With the purpose of gaining a deeper understanding about the role of the Indian stock broking industry in the country’s economy, we present in this section some of the industry insights gleaned from analysis of data received through primary research.

The Indian Stock Market in India comprises of two stock exchanges:

● Bombay Stock Exchange (BSE)

● National Stock Exchange (NSE)

BOMBAY STOCK EXCHANGE (BSE)

The Bombay Stock Exchange (BSE) was established in 1875.The BSE India Stock

Exchange serves as the most important for companies to raise money. The chief function

of the Stock Market of India is to help raise money as capital for the growth and expansion

of various private and public sector enterprises. Besides, the Stock Market of India

provides able assistance to the individual investors through daily updates on current

position of the stocks of the respective companies that are enlisted in the Stock Index in

which the movement of prices in a section of the market are captured in price indices. The

popular acronym for Stock Index is Sensitive index or sensex. Moreover, the liquidity

provided by the exchange enables the investors to sell securities owned by them easily and

quickly.

Hence a person, who is subjected to sudden dearth of funds, can immediately sell his

shares for cash in India Stock Market. The BSE Sensex, also known as “BSE 30” is a

widely used market index not only in India but across Asia. In terms of volume of

transactions, it is ranked among the top five stock exchanges in the world.

NATIONAL STOCK EXCHANGE (NSE)

The National Stock Exchange of India Ltd. (NSE), set up in the year 1993, is today the

largest stock exchange in India and a preferred exchange for trading in equity, debt and

derivatives instruments by investors. NSE has set up a sophisticated electronic trading,

clearing and settlement platform and its infrastructure serves as a role model for the

securities industry. The standards set by NSE in terms of market practices; products and

technology have become industry benchmarks and are being replicated by many other

market participants.

NSE provides a screen-based automated trading system with a high degree of transparency

and equal access to investors irrespective of geographical location. The high level of

information dissemination through the on-line system has helped in integrating retail

investors across the nation.The exchange has a network in more than 350 cities and its

trading members are connected to the central servers of the exchange in Mumbai through a

sophisticated telecommunication network comprising of over 2500 VSATs.

NSE has around 850 trading members and provides trading in equity shares and debt

securities. Besides this, NSE provides trading in various derivative products such as index

futures, index options, stock futures, stock options and interest rate futures.

In addition to these organizations there are other organizations highlighting on the share trading

in the Indian Stock Market are:

● Securities and Exchange Board of India (SEBI)

● NSDL

● CDSL

1.2 OBJECTIVE OF THE STUDY

To know the Company Profile

To study the organizational functions.

To study functions of various departments.

To study internal dependence of these all departments.

To know about how company manage to sell and purchase products.

To study how they trail people on the job or off the job.

To understand the difference between theoretical & practical aspects of functioning

organization.

To get real time exposure of corporate world.

1.3 NEED FOR THE STUDY

Although INDIA INFOLINE LTD. is doing good business and business is flourishing,

there is further scope for improvement to make it a bigger player in this field. In order to

move into the big league this study was undertaken.

1.4 SCOPE OF THE STUDY

The study is being conducted for the INDIA INFOLINE LTD . This study tells us an

overall view of organization and functions carried out by different departments.

Organizational Functioning is an important factor for any Organization to achieve the

desired goals and Objectives. This requires Co-ordination at all levels to smooth

functioning. This study is to know the overall efficiency and performance of the company

As a part of two year MBA program at the end of 1st trimester, we had to carry on a project

in an organization in order to understand the organization structure and their functions. This

was a great opportunity to get the first hand information and understand the functioning of

the various departments

1.5 LIMITATIONS OF THE STUDY

he following are the limitations of the study,

As we had a limitation of time, the detailed report about the operations of the organization

was not possible.

The information given by the persons may not be complete because of their busy work

schedules

The information given by the persons may not be complete because of their busy work

schedules.

Only a overall view of the process was explained by each departmental heads.

CHAPTER 2

2.1 COMPANY PROFILE

IndiaInfoline founded in 1995 by Mr. Nirmal Jain (Chairman and Managing Director) as an independent business research and information provider. We gradually evolved into a one-stop financial services solutions provider. Our strong management team comprises competent and dedicated professionals.

It are a pan-India financial services organization across 1,361 business locations and a presence in 428 cities. Our global footprint extends across geographies with offices in New York, Singapore and Dubai. We are listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

It offer a wide range of services and products comprising broking (retail and institutional equities and commodities), wealth management, credit and finance, insurance, asset management and investment banking.

We are registered with the BSE and the NSE for securities trading, MCX, NCDEX and DGCX for commodities trading, CDSL and NSDL as depository participants. We are registered as a Category I merchant banker and are a SEBI registered portfolio manager. We also received the FII license in IIFL Inc. IIFL Securities Pte Ltd received approval from the Monetary Authority of Singapore to carry out corporate advisory and dealing in securities operations. Two subsidiaries – India Infoline Investment Services and Moneyline Credit Limited – are registered with RBI as non-deposit taking non-banking financial services companies. India infoline Housing Finance Ltd, the housing finance arm, is registered with the National Housing Bank.

HSTORY OF INDIA INFOLINE

India Infoline originally incorporated on October 18, 1995 as PROBITY RESEARCH AND SERVICES PVT LTD. at Mumbai under the Companies Act, 1956 with Registration No. 1193797.and became a public limited company on April 28, 2000. The name of the Company was changed to India Infoline.com Limited on May 23, 2000 and later to India Infoline Limited on March 23, 2001. It is the first Company in India to foray into the online distribution of Mutual Funds.

It is a one-stop financial services shop, most respected for quality of its advice, personalized service and cutting-edge technology.The company has a network of 976 business locations (branches and sub-brokers) spread across 365 cities and towns. It has more than 800,000 customers. It is registered with NSDL as well as CDSL as a depository participant. Providing a one-step solution for clients trading in the equities market.

VISION

India Infoline vision is to be the most respected company in the financialservices space.

COMPANY PHILISOPHY

The IndiaInfoline Group is committed to placing the Investor First, by continuously striving to

increase the efficiency of the operations as well as the systems and processes for use of corporate

resources in such a way so as to maximize the value to the stakeholders. The Group aims at

achieving not only the highest possible standards of legal and regulatory compliances, but also of

effective management.

KEY EXECUTIVES

S.No Name Designation

1 Mr. Nirmal Jain Chairman and Managing director

2 Mr. A K Purwar Director

3 Mr. R Venkataraman Executive Director

4 Mr. Nilesh Vikamsey Independent Director

5 Mr. Kranti Sinha Independent Director

6 Mr. Sat Pal Khattar Non Executive Director

COMMITTEE

Audit Committee

Terms of reference & Composition, Name of members and Chairman: The Audit committee

comprises Mr Nilesh Vikamsey, Chairman of the Committee, Mr Sat Pal Khattar, Mr Sanjiv

Ahuja and Mr Kranti Sinha, three of whom are independent Directors. The top Executivess and

Internal Auditors are invitees to the Meeting. The Terms of reference of this committee are as

under: - To investigate into any matter that may be prescribed under the provisions of Section

292A of The Companies Act, 1956 - Recommendation and removal of External Auditor and

fixation of the Audit Fees. - Reviewing with the management the financial statements before

submission of the same to the Board. - Overseeing of Company’s financial reporting process and

disclosure of its financial information. - Reviewing the Adequacy of the Internal Audit Function.

Compensation/ Remuneration Committee

Terms of reference & Composition, Name of members and Chairman: The Compensation /

Remuneration Committee comprises Mr Sanjiv Ahuja, Chairman of the Committee, Mr Nilesh

Vikamsey and Mr Kranti Sinha, all of whom are independent Directors. The Terms of reference

of this committee are as under: - To fix suitable remuneration package of all the Executive

Directors and Non Executive Directors, Senior Employees and officers i.e. Salary, perquisites,

bonuses, stock options, pensions etc. - Determination of the fixed component and performance

linked incentives alongwith the performance criteria to all employees of the company - Service

Contracts, Notice Period, Severance Fees of Directors and employees. - Stock Option details:

whether to be issued at discount as well as the period over which to be accrued and over which

exercisable. - To conduct discussions with the HR department and form suitable remuneration

policies.

Share Transfer and Investor Grievance Committee

Details of the Members, Compliance Officer, No of Complaints received and pending and

pending transfers as on close of the financial year. The committee functions under the

Chairmanship of Mr Kranti Sinha, a Non-executive independent Director. The other Members of

the committee are Mr Sanjiv Ahuja, Independent Director and Mr R Venkataraman, Executive

Director. Ms Komal Parikh, Company Secretary is the Compliance Officer of the Company.

India Infoline Groups

The India Infoline group, comprising the holding company, India Infoline Limited and its wholly-owned subsidiaries, straddle the entire financial services space offerings ranging from Equity research, Equities and derivatives trading, Commodities trading , portfolio Management Services, Mutual Funds, Life Insurance, Fixed deposits, Gold, bonds and other small savings instruments to loan products and investment banking. India Infoline also owns and manages the websites www.indiainfoline.com and www.5paisa.com. The company has a network of 596 branches spared across 345 cities and towns. It has more than 500,000 customers.

India Infoline Ltd.

India Infoline Limited is listed on both the leading stock exchanges in India, viz. the stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and is also a member of both the exchanges. It is engaged in the businesses of Equities broking, Wealth Advisory Services and Portfolio Management Services. It offers broking services in the Cash and Derivatives segments of the NSE as well as the Cash segment of the BSE

India Infoline Group subsidiaries:

Infoline Media and Research Services Limited India Infoline Commodities Limited India Infoline Marketing & Services India Infoline Investment Services Limited IIFL (Asia) Pvt Limited

2,2 COMPANY STRUCTURE

India Infoline Media and Research Services Limited. The content services represent a strong support that drives the broking, commodities, mutual fund and portfolio management services businesses. Revenue generation is through the sale of content to financial and media houses, Indian as well as global. It undertakes equities research which is acknowledged by none other than Forbes as 'Best of the Web' and '…a must read for investors in Asia'. India Infoline's research is available not just over the internet but also on international wire services like Bloomberg (Code: IILL), Thomson First Call and Internet Securities where India Infoline is amongst the most read Indian brokers.

India Infoline Commodities Limited. India Infoline Commodities Pvt Limited is engaged in the business of commodities broking. Our experience in securities broking empowered us with the requisite skills and technologies to allow us offer commodities broking as a contra-cyclical alternative to equities broking. We enjoy memberships with the MCX and NCDEX, two leading Indian commodities exchanges, and recently acquired membership of DGCX. We have a multi-channel delivery model, making it among the select few to offer online as well as offline trading facilities.

India Infoline Marketing & Services. India Infoline Marketing and Services Limited is the holding company of India Infoline Insurance Services Limited and India Infoline Insurance Brokers Limited. (a) India Infoline Insurance Services Limited is a registered Corporate Agent with the Insurance Regulatory and Development Authority (IRDA). It is the largest Corporate Agent for ICICI Prudential Life Insurance Co Limited, which is India's largest private Life Insurance Company. India Infoline was the first corporate agent to get licensed by IRDA in early 2001. (b) India Infoline Insurance Brokers Limited is a newly formed subsidiary which will carry out the business of Insurance broking. We have applied to IRDA for the insurance broking licence and the clearance for the same is awaited. Post the grant of license, we propose to also commence the general insurance distribution business.

India Infoline Investment Services Limited. Consolidated shareholdings of all the subsidiary companies engaged in loans and financing activities under one subsidiary. Recently, Orient Global, a Singapore-based investment institution invested USD 76.7 million for a 22.5% stake in India Infoline Investment Services. This will help focused expansion and capital raising in the said subsidiaries for various lending businesses like loans against securities, SME financing, distribution of retail loan products, consumer finance business and housing finance business. India Infoline Investment Services Private Limited consists of the following step-down

subsidiaries. (a) India Infoline Distribution Company Limited (distribution of retail loan products) (b) Moneyline Credit Limited (consumer finance) (c) India Infoline Housing Finance Limited (housing finance)

IIFL (Asia) Pvt Limited. IIFL (Asia) Pvt Limited is wholly owned subsidiary which has been incorporated in Singapore to pursue financial sector activities in other Asian markets. Further to obtaining the necessary regulatory approvals, the company has been initially capitalized at 1 million Singapore dollars.

BRANCHES & SUB-BROKERS

The maximum concentration of branches is in the North, with as many as 40% of all branches located there, followed by the Western region, with 31% branches. Around 24% branches are located in the South and East constitutes for 5% of the total branches of the total sample. In case of sub-brokers, almost 55% of them are based in the South. West and North follow, with 30% and 11% sub-brokers respectively, whereas East has around 4% of total sub-brokers.

2.3 PERFORMANCE OF THE COMPANY

1995: Incorporated as an equity research and Consulting firm with a client base that included

leading FIIs, banks, consulting firms and corporate.

1999: Restructured the business model to embrace the internet; launched

www.indiainfoline.com; mobilized capital from reputed private equity investors.

2000:Commenced the distribution of personal financial products; launched online equity trading; entered life insurance distribution as a corporate agent. Acknowledged by Forbes as ‘Best of the Web’ and‘..must read for Investors’.

2004:Acquired commodities broking license; launched Portfolio Management Service.

2005:Listed on the Indian stock Markets.

2006:Acquired Membership Of DGCX; launched investment banking Services.

2007:

Launched a proprietary trading platform; inducted an institutional equities team; formed a Singapore subsidiary; raised over USD 300mn in the group; launched consumer finance business under the ‘Money line’ Brand.

2008:Launched wealth management services under the ‘IIFL Wealth’ brand; set up India Info line Private Equity fund; received the Insurance broking license from IRDA; received the venture capital license; received in principle approval to sponsor a mutual fund; received ‘Best broker- India’ award from Finance Asia; ‘Most Improved Brokerage- India’ award from Asia money.

2009:Received registration for a housing finance company from the National Housing Bank; received ‘Fastest growing Equity Broking House Large firms’ in India by Dun & Bradstreet.

2.4 PRODUCT & SERVICES OFFERINGS

1.EquitiesIndia infoline provided the prospect of researched investing to its clients, which was hitherto restricted only to the institutions. Research for the retail investor did not exist prior to India infoline. India infoline leveraged technology to bring the convenience of trading to the investor’s location of preference (residence or office) through computerized access. India infoline made it possible for clients to view transaction costs and ledger updates in real time.

India Infoline provided the prospect of researched investing to its clients, which was hitherto

restricted only to the institutions. Research for the retail investor did not exist prior to India

Infoline. India Infoline leveraged technology to bring the convenience of trading to the

investor’s location of preference (residence or office) through computerized access. India

Infoline made it possible for clients to view transaction costs and ledger updates in real time.

Over the last five years, India Infoline sharpened its competitive edge through the

following initiatives:

Multi-channel delivery model:

The Company is among the few financial intermediaries in India to offer a complement of

online and offline broking. The Companies network of branches also allows customers to place

orders on phone or visit our branches for trading.

Integrated middle and back office:

The customer can trade on the BSE and NSE, in the cash as well as the derivatives segment all

through the available multiple options of Internet, phone or branch presence.

Multiple-trading options: The Company harnessed technology to offer services at among the lowest rates in the business.

Membership: The Company widened client reach in trading on the domestic and international exchanges.

Technology:The Company provides a prudent mix of proprietary and outsourced technologies, which

facilitate business growth without a corresponding increase in costs.

Content:The Company has leveraged its research capability to provide regular updates and investment

picks across the short and long-term.

Service: Clients can access the customer service team through various media like toll-free lines, emails

and Internet- messenger chat for instant query resolution. The Companies customer service

executives proactively contact customers to inform them of key changes and initiatives taken

by the Company. Business World rated the Companies customer service as Best in their survey

of online trading sites carried out in December 2003.

Key features :

1.Membership on the Bombay Stock Exchange Limited and the National Stock Exchange

2.Registered with the NSDL as well as CDSL as a depository participant, providing a one-stop solution for clients trading in the equities market

3. Broking services in cash and derivative segments, online as well as offline.

4.Presence across 350 cities and towns with a network of over 850 business locations Equity client base of over 500,000 clients

5.Provision of free and world-class research to all clients

2.APPLY IN IPOs

You could also invest in Initial Public Offers (IPO’s) online without going through the hassles of filling ANY application form/ paperwork.

Know more about IPO Get in-depth analyses of new IPOs issues (Initial Public Offerings) which are about to hit the market and analysis on these recent IPO listings, prospectus/offer documents, and IPO reports are few of the features, which help you, keep on top of the IPO markets.

3.PMS

Our Portfolio Management Service is a product wherein an equity investment portfolio is created to suit the investment objectives of a client. We at India infoline invest your resources into stocks from different sectors, depending on your risk-return profile. This service is particularly advisable for investors who cannot afford to give time or don't have that expertise for day-to-day management of their equity portfolio.

4.RESEARCH

Sound investment decisions depend upon reliable fundamental data and stock selection techniques. India infoline Equity Research is proud of its reputation for, and we want you to find

the facts that you need. Equity investment professionals routinely use our research and models as integral tools in their work.

5.COMMODITIES

India infoline’s extension into commodities trading reconciles its strategic intent to emerge as a one-stop solutions financial intermediary. Its experience in securities broking has empowered it with requisite skills and technologies. The Company’s commodities business provides a contra-cyclical alternative to equities broking. The Company was among the first to offer the facility of commodities trading in India’s young commodities market (the MCX commenced operations only in 2003). Average monthly turnover on the commodity exchanges increased from Rs 0.34 bn to Rs 20.02 bn. The commodities market has several products with different and non-correlated cycles. On the whole, the business is fairly insulated against cyclical gyrations in the business.

India Infoline distinguished its business through the interplay of knowledge and

technology:

Complete solution: The Company provides a complete - advice to execution solution facilitated by information and

advice on likely commodity trends in the Indian and international environment.

Technology: The Company has extended the trading terminal to the investors home/workplace reinforced

with real-time commodity information and ledger position.

Rates: The Company harnessed technology to offer services at among the lowest rates in the business.

Membership: The Company widened client reach in trading on the domestic and international

exchanges.

Key Features :

Enjoys memberships with the MCX and NCDEX, two leading Indian commodities exchanges

Recently acquired membership of the DGCX

Multi-channel delivery model, making it among the select few to offer online as well as offline trading facilities

Extended commodity trading to retail investors, among the few Indian financial intermediaries to do so

Online business at 80% of revenues dominates commodities trading revenues

Provides regular commodity updates pertaining to the Indian and international environment

6.MORTAGES

During the year under review, India infoline acquired a 75% stake in Money tree Consultancy Services to mark its foray into the business of mortgages and other loan products distribution. The business is still in the investing phase and at the time of the acquisition was present only in the cities of Mumbai and Pune. The Company brings on board expertise in the loans business coupled with existing relationships across a number of principals in the mortgage and personal loans businesses. India infoline now has plans to roll the business out across its pan-Indian network to provide it with a truly national scale in operations.

7.LOANS

They say you mustn't trust a man till you know his house. Everyone likes hearing people say

Wow, what a beautiful house you have! From cave dwelling, we have evolved and now a house

provides far more than just shelter...it also becomes a source of pride. A Housing Loan is used as

finance to help you buy or modify that perfect home.

The different Housing Loan products can be classified as:

Home Loans & Home Extension Loans

NRI Loans

Land Loans

Home Equity Loans

8,INVEST ONLINE

India infoline has made investing in Mutual funds and primary market so effortless. All you have to do is register with us and that’s all. No paperwork no queues and No registration charges.

9.INVEST IN MF

India infoline offers you a host of mutual fund choices under one roof, backed by in-depth research and advice from research house and tools configured as investor friendly.

10.SMS

Stay connected to the marketThe trader of today, you are constantly on the move. But how do you stay connected to the market while on the move? Simple, subscribe to India infoline's Stock Messaging Service and get Market on your Mobile!

There are three products under SMS Service: Market on the move. Best of the lot. VAS (Value Added Service)

11.INSURANCE

An entry into this segment helped complete the client’s product basket; concurrently, it radiated the Company into a one-stop retail financial solutions provider. To ensure maximum reach to customers across India, we have employed a multi pronged approach and reach out to customers via our Network, Direct and Affiliate channels. Following the opening of the sector in 1999-2000, a number of private sector insurance service providers commenced operations aggressively and helped grow the market.

The Company’s entry into the insurance sector de-risked the Company from a predominant dependence on broking and equity-linked revenues. The annuity based income generated from insurance intermediation result in solid core revenues across the tenure of the policy.

Key features :

India Infoline was the first corporate in India to get the agency licence in early 2001

The Company is the biggest corporate agency in India for life insurance products

The Company operates multiple channels, namely branch network, preferred client group, direct marketing, corporate tax advisory, walk-ins and seminars, to reach out to customers.

12.Newsletters

The Daily Market Strategy is your morning dose on the health of the markets. Five intra-day ideas, unless the markets are really choppy coupled with a brief on the global markets and any other cues, which could impact the market. Occasionally an investment idea from the research team and a crisp round up of the previous day's top stories. That's not all. As a subscriber to the Daily Market Strategy, you even get research reports of India infoline research team on a priority basis.

The India infoline Weekly Newsletter is your flashback for the week gone by. A weekly outlook coupled with the best of the web stories from India infoline and links to important investment ideas, Leader Speak and features is delivered in your inbox every Friday evening.

2.5 MARKETING STRATEGY OF INDIA INFOLINE

Market Positioning:

Market positioning statements of India Infoline are “At India Infoline we give you single

window service” and “We also ensure your comfort”. So, India Infoline focus on the consumers

who prefer almost all investment activities at same place by providing number of various

financial services. At India Infoline a person can purchase or sell shares, debentures etc. and at

the same place also demat it. India Infoline also provides other investment option to the same

person at same place like Mutual Fund, Insurance, Fixed Deposit, and Bonds etc. and help the

person in designing his portfolio. By this way India Infoline provides comfort to its customers.

Target Market:

India Infoline uses demographic segmentation strategy and segment people based on their

occupation. India Infoline uses selective specialization strategy for market targeting. Target

person for the India Infoline Stock Broking and India Infoline Investment Service are persons

who can work as sub-broker for the companies. Companies focus on Advisors of Insurance and

post office, Tax consultants and CAs for making sub-broker

Marketing channel System:

India Infoline uses one level marketing channel for investment product distribution. Sub-

brokers work as intermediary between consumer and company. Company has both forward and

backward flow of activity through channel. Company distributes stationery, brokerage, and

information forward to its sub-broker. The sub-brokers send filled forms, queries, amount of

investment etc. back to the company.

Training Channel Members:

India Infoline provides training to the sub-brokers because they will be viewed as the

company by the investors. The executives of India Infoline explain various new schemes of

investment to the sub-brokers with its objective, risk factors and expected return. Company also

periodically arrange seminar to guide sub-brokers.

Advertising and Promotion:

The objective of advertising of India Infoline is to create awareness about services of

India Infoline among investors and sub-brokers.

India Infoline also publishes its weekly Stock Market Newsletter ‘Market Mantra’.

2.6 HUMAN RESOURCES The India Infoline Group’s Human Resources policy is based on the philosophy of “Owner

Mindset”. We believe that the key to our continued growth lies in unleashing the entrepreneurial

energy of our employees. We encourage all employees to behave more as 51owners of their

departments rather than employees. Our people are highly driven and work towards increasing

India Infoline’s brand and market share across product lines.

We have developed extensive in-house training modules. In addition, our staff is trained by

various Asset Management Companies and ICICI Prudential Life Insurance Company Limited.

They lay emphasis on “on the job training” where an experienced and senior person mentors a

junior executive.

In addition to salary, our employees get performance-based incentives on a quarterly basis.

They have also implemented an Employee Stock Option Plan.

As on December 31, 2009, the total employee strength of our company and our subsidiaries was

1200.

Structure :

HR department is an important functional department .it faces the challenges posed by the ever

changing dynamic environment of today.

This company analyses the need for new/ additional human resources and provides this based on

the requirement.

It also ensures that its personnel are competent having appropriate education, training, skills and

experience to perform their work which effects product quality.

The future of the company hinges on its ability to –

Select and recruit persons

Train and upgrade skill sets

Extract and retain talent

Robust performance appraisal and reward system

Evolve performance parameters with respect to key result areas

Managing

DirectorGM – HRD

Manager HR

Executives

MARKET SHARES OF COMPANY

Retail broking:

India Infoline has around 3 lakh customers. It has a tie-up with Bank of Baroda

for e-broking.

Institutional broking: 

India Infoline has roped in Bharat Parajia, director of sales at CLSA in Singapore,

H Nemkumar, CLSA's country head for India, Aniruddha Dange, CLSA's head of

research in India, and Vasudev Jagannath, CLSA's head of sales in India. While Parajia

will join as head of institutional sales at India Infoline, Dange will be head of research

and Nemkumar head of investment banking. 

Each one of them is bringing in more than 10 years of experience with a top

institutional brokerage in Asia. The CLSA foursome will also pick up stakes in India

Infoline through the preferential allotment route. Their collective stake would add up to

around 15%. Parajia already holds a 2.88% stake in India Infoline. He will subscribe to

25 lakh equity warrants at Rs 440 each.Nemkumar will pick up another 25 lakh, while

Jagannath and Aniruddha Dange will subscribe to 20 lakh warrants each. The preferential

allotment includes the four men buying 90 lakh equity warrants at a price of Rs 440 each,

of which 10% will be paid up front as their sign-on bonus. The remaining will be payable

at the end of eighteen months when the warrants will be convertible into shares. That is,

all these guys will have to cough up about Rs 360 crore to convert their warrants into

shares. Currently, the company's institutional equities team has 35 people, including

research analysts and dealers.

Consumer Finance:

During the quarter, it managed a book size of Rs 25 crore and has suffered a loss of Rs

5.5 crore. It expects to break even in 2-3 quarters. NIM of 6-8% on personal loans and 3-

4% on home refinancing. It is looking at a Rs 200 crore private-equity funding for

its consumer finance subsidiary. It intends to leverage its extensive branch network to

expand its consumer finance division to tier-II and tier-III cities in the coming quarters.

IndiaInfoline is going slow as it has just started this business with a robust risk

management system. The company has roped in experts from Citi Financial and other

banks.

2.7 SWOT Analysis:

Strengths • Integrated technology platform • “One Stop” shop • Pan - India distribution network • “India Infoline.com” and “5paisa.com” have developed into brands

Weaknesses

• Lack of a banking arm to complete the bank-broker-depository chain • Insignificant presence in institutional Segment

Opportunities

• Changing demographics with higher disposable income and increasingly complex financial instruments will drive demand for investment advisory services

• Rapid penetration of Internet and computers means that technology enabled financial services will gain market share

Threats

• Economic slowdown • Volatile movement in indices events like May 17, 2004 • Stock markets falls will have a cascading effect on our mutual fund mobilization • Increase/decrease in interest rate can affect our debt/ income fund mobilizations • Future changes in personal taxation rules can impact insurance sales • Increasing competition from large and particularly foreign players

2.8 COMPETATIVE ANALYSIS

COMPETITORS(ACCORDING TO VOLUME)

LAST PRICE

MARKET CAP.(Rs.cr)

SALES TURNOVER

NET PROFIT

TOTAL ASSET

INDIABULLS 135.20 4188.09 2003.09 99.451 14722.36INDIA INFOLINE 141.30 4004.44 571.57 103.59 1049.99EDELWEISS CAP 470.00 3,525.20 191.39 26.39 1,865.28

MOTILAL OSWAL F 170.80 2,443.58 57.26 45.31 433.49HSBC INVEST 264.00 1,843.68 24.31 -15.21 667.45

FUTURECAPITAL 230.50 1,464.32 132.44 9.31 1,216.75NETWORK 18 90.20 865.07 94.50 -19.41 862.11GEOIIT BNP 37.80 847.03 140.56 14.39 276.06

DELTA CORP 43.30 723.81 42.73 8.31 356.87NALWASONS INV 1,210.00 621.48 14.78 11.26 270.90

This table represents the comparison between the India infoline and other share broking firms or investment organization, which includes last price of share, market capital, sales turnover, net profit and total assets.

INDIAINFOLIN

E

INDIABULLS

EDELW

EISS C

AP

MOTILAL O

SWAL

HSBC IN

VEST

FUTU

RECAPITA

L

NETWORK 18

GEOIIT

BNP

DELTA CORP

NALWASO

NS INV

0

200

400

600

800

1000

1200

1400

Last Price

Series 1

This graph shows the last share price of the organization, in this we can see that Nalwasons

investment has the highest share price, as compare to others it is very high. The India infoline

stand very short in this.

INDIA INFO

LINE

INDIABULLS

EDELW

EISS C

AP

MOTILAL O

SWAL

HSBC IN

VEST

FUTU

RE CAPITA

L

NETWORK 18

GEOIIT

BNP

DELTA CORP

NALWASO

NS INV

0500

10001500200025003000350040004500

Market capital

Market capital

When it comes to market capital the India bulls has the highest market capital, and second is

India infoline just behind of India bulls and rest other are no ware in this graph.

INDIA INFO

LINE

INDAIBULLS

EDELW

EISS C

AP

MOTILAL O

SWAL

HSBC IN

VEST

FUTU

RE CAPITA

L

NETWORK 18

GEOIIT

BNP

DELTA CORP

NALWASO

NS INV

0

500

1000

1500

2000

2500

SALES TURNOVER

SALES TURNOVER

When we talk about sales turnover of the broking firm, or investment organization again the

india bulls has the highest sales turnover, as compare to other its very high, other stand no ware

in front of him, but still india infoline manages second position.

INDIA INFO

LINE

INDAIBULLS

EDELW

EISS C

AP

MOTILAL O

SWAL

HSBC IN

VEST

FUTU

RE CAPITA

L

NETWORK 18

GEOIIT

BNP

DELTA CORP

NALWASO

NS INV

0

20

40

60

80

100

120

NET PROFIT

NET PROFIT

The profit is the main aim of each and every origination. In other factore indiabulls is ahead of

all and India infoline but here India infoline beats all others including indiabulls. India infoline’s

profit is just ahead of indiabulls.

There are two vacant place which indicates no profit, but it is Not like that, here it means loss

both HSBC and NETWORK 18 has suffered a loss of 15.21 and 19.41 respectively.

INDIA INFO

LINE

EDELW

EISS C

AP

MOTILAL O

SWAL

HSBC IN

VEST

FUTU

RE CAPITA

L

NETWORK 18

GEOIIT

BNP

DELTA CORP

NALWASO

NS INV

0200400600800

100012001400160018002000

TOTAL ASSETS

TOTAL ASSETS

. From this table the column of india bulls has been removes just me make this take appropriate

and attractive, because the total assets of India bulls is more then 14700 (NOT SHOWN IN

GRAPH) where as the total of all others is 6996 only

But finally we can conclude that the India infoline has managed to get the highest net profit

among all his competitors.

Comparative Analysis of charges and facilities provided by different companies

Company AccountOpening

MarginMoney

Brokerage Intra-Delivery(%)

AMC Exposure(for intra)

branches

India infoline 0/- 2555/- 0.05-0.50 250/- 8 times 607

Kotak securities 750/- 5000/- 0.06- 0.59 360/- 4 times 890

ICICI direct 500/- 975/- 0.075- 0.05 450/- 5 times 2124

Motilal oswal 415/- Not Restricted

0.03- 0.30 300/- 4 times 430

Religare 299/- 5000/- 0.025-0.25 Nil 20 times 1837

Angel broking 731/- 5000/- 0.03- 0.30 300/- 4 times 120

Geojit 650/- Nil 0.03- 0.30 Nil 20 times 500

India bulls 900/- Nil 0.03- 0.30 Nil 20 times 718

Reliance money 750/- Not Restricted

0.05- 0.25 50/- 5 times 10000

Share khan 750/- 5000/- 0.03- 0.30 500/- 4 times 250

Hdfc 799/- 5000/- 0.05-0.50 500/-from 2 nd yr

5 times NA

This is comparative study based on the charges made by India infoline and other broking firms.

In this it take lowest charge to open an account and providing an appropriate brokerage to his

clients as compare to few others. And low margin money and it has a total of more than 600

branches all over India, which is very good in number and very less as compare to Reliance,

kotak securities, ICICI securities and Religare, so that they can provide a proper attention

towards his clients and manages than in better was, that’s the reason we have seen about they

have good amount of net profit with less investment. That’s the reason they have a line “ITS

ALL ABOUT MONEY, HONEY”

Results on the Basis of charges

There are the two type of the transaction:-1. Intra-day based2. Delivery based

PERFORMANCE HIGHLIGHT IN 2008-09

Business Division Business Highlights

Broking

Market share of equities increase from 3.4% in 2007-08 to 3.76% in 2008-09.

Customer base for retail equities increased 35.8% from .44 ml in 2007-08 to .06 ml in 2008-09.

Published in-depth and thematic reports on INCH, politics, rural India, infrastructure, self commodities, utilities and India worming.

Insurance

Receive Insurance Broking License. Forged alliances with major insurance

companies for the distribution of life and nonlife products.

Alter the product mix in favor of traditional products like Endowment Products.

Credit and Finance

Proactively suspended personal loans and mortgages business from September 2008, while the personal loan business is still suspended, the mortgages business has been Re-Started.

Revenue at Rs.2654.1 ml in 2008-09 against Rs.1937.5 ml in 2007-08.

Registered the Housing Finance Subsidiary with NHB.

Wealth and asset Management Introduce the family office platform. Raised around Rs.1.8 bl in the largest

single day debenture listing of its kind. Received in principle approval for

sitting up of Mutual Funds. Establish the infrastructure and

knowledge capital for Office Store Asset Management Services.

3.1 FINDINGS

1. According to the survey most of the customers of “Infoline Ltd” says that it is pocket friendly.

2. Coming to faith 70% say India Infoline Ltd is better than others stock brokers due to customers satisfaction.

3. Lack of promotional activities undertaken by India Infoline securities Ltd.

4. Main purposes of investments are returns & liquidity.

5. Investors take risk as well as returns into their mind while making the investment.

6. Businessmen are more interested in the stock market than the Others.7. Commodity market is less preferred by the investors, might because of less awareness about commodity market.

8. People want to invest their money in the security market but they have not the proper knowledge.

9. People pay more emphasis on brokerage than service provided by brokerage houses.

10. 3 elements which affect the economy of any country:-

1) GOLD, 2) CRUDE OIL, 3) U.S DOLLAR

3.2 RECOMMENDATION

1. Commitment should be equalized for every person.

2. Provide the facility of free demonstrations for all.

3. Improvement in the opening of De-mat & contract notice procedure is required.

4. There should be a limited number of clients under the relationship manger. So that he can handle new as well as old customer properly.

5. Some promotional activities are required for the awareness of the customer.

6. People at young age should be encouraged to invest in stock market.

7. Seminars should be held for providing information to prospective and present customers.

3.3 CONCLUSIONS

On the basis of the study it is found that India Infoline Ltd is better services provider than the other stockbrokers because of their timely research and personalized advice on what stocks to buy and sell. Infoline Ltd. provides the facility of Trade tiger as well as relationship manager facility for encouragement and protects the interest of the investors. It also provides the information through the internet and mobile alerts that what IPO’s are coming in the market and it also provides its research on the future prospect of the IPO.

Study also concludes that people are not much aware of commodity market and while it’s going to be biggest market in India.

The company should also organize seminars and similar activities to enhance the knowledge of prospective and existing customers, so that they feel more comfortable while investing in the stock market.

3.4 BIBLIOGRAPHY

WEBSITE:

http://WWW.MONEYCONTROL.COM http://WWW.CAPITALINE.COM http://WWW.SHAREKHAN LTD.COM http://WWW.INDIAINFOLINE.COM http://WWW.ICICIDIRECT.COMhttp://WWW.KARVY.COMhttp://WWW.NSC-INDIA.COM