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Transcript of Tejas Joshi Complete
Motilal Oswal Securities Limited
“A STUDY OF SATISFACTION LEVEL OF EQUITY SUB-
BROKERS”
AT
MOTILAL OSWAL SECURITIES LTD.,
(AHMEDABAD CITY)
A SUMMER PROJECT REPORT SUBMITTED IN THE PARTIAL
FULLFILLMENT OF AWARD OF MBA
(BATCH 2010-12)
SUBMITTED TO SUBMITTED BY
ANKIT SHAH TEJASH. JOSHI
(107240592052)
K.P PATEL SCHOOL OF MANAGEMENT & COMPUTER STUDIES
Kapadwanj, Gujarat, India
JULY 2011
Motilal Oswal Securities Limited
CERTIFICATE
Motilal Oswal Securities Limited
DECLARATION
Myself Tejas H. Joshi hereby declare that this project is the record of authentic work carried
out by me, in well reputed company MOTOLAL OSWAL SECURITIES LIMITED
during the academic year 2010-2011, under the guidance of. MR. ANKIT SHAH, faculty
member K P PATEL SCHOOL OF MGT &COMPUTER STUDIES KAPADWANJ.
This is my real work and has not been submitted to any other university or institute towards
the award of any degree.
YOURS FAITHFULLY
TEJAS H. JOSHI
Motilal Oswal Securities Limited
PREFACE
In order to achieve Perfection, theoretical knowledge must be supplemented with
practical knowledge and training. The basic objective of the summer internship is to
bridge between theoretical knowledge and practical knowledge.
I know that training is for the development and enhancement of the knowledge in a
particular field. It can never be possible to make a mark in today’s competitive era
only with theoretical knowledge when industries are developing at global level,
practical knowledge of administration and management of business is very important.
Hence, practical study is of great importance to M.B.A. student.
With a view to expand the boundaries of thinking, I have undergone summer
internship training program at MOTILAL OSWAL SECURITIES LTD. I have made
deliberate efforts to collect the required information and fulfill training objective.
I consider myself very fortunate that I got an opportunity to work with an esteemed
company like MOTILAL OSWAL SECURITIES LTD.
Place: KAPADWANJ TEJAS H. JOSHI Date: (107240592001)
Motilal Oswal Securities Limited
ACKNOWLEDGMENT
Guidance, cooperation, and inspiration are the important factors in the
accomplishment of an assigned task. I am most indebted to those mentioned below for
their moral and active support.
At the outset, I profoundly thank to our college KSMCS for providing us with this
opportunity and for all its cooperation and contribution. I also express my gratitude to
our honorable Head of the Department. Mr.AJAY TIWARI and are highly thankful to
my project guides Mr.ANKIT SHAH, and all others professors who helped me with
the project. I am also thankful to other college staff that helped in my project
I am very thankful to Mr. M. K. JAYAPRAKASH SIR [ A.V.P. ( Acquisition) OF
MOTILAL OSWAL SECURITIES LTD.] and Mr. PRATIK SANGHVI [ A.V.P
(B.A.D.) MOTILAL OSWAL SECURITIES LTD.] who has given me such a nice
opportunity to undergo the training and also very thankful to Mr. Hiral Raval [B.D.M
of MOTILAL OSWAL SECURITIES LTD.] who is our external guide of my project,
for giving me his valuable suggestions and guidance throughout the training period
and would also like to thank the whole MOTILAL OSWAL staff for helping me in
queries.
Finally, I am sincerely thankful to others who have directly or indirectly helped me in
the completion of the project.
Motilal Oswal Securities Limited
EXECUTIVE SUMMARY
As a part of our study, I did my project in “Motilal Oswal Securities Ltd.”. Basically,
MOSL is in the broking industry providing a varied products and services to their
clients. MOSL is one of the leading broking firms at National level.
In my summer internship I was given the project work on “A STUDY OF
SATISFACTION LEVEL OF EQUITY SUB-BROKERS”- wherein I found the
possibilities for MOSL’s business expansion via Franchisee in Ahmedabad city. For
which I have done my practical study on sub-brokers survey in Ahmedabad city.
During my internship at MOSL, I also engaged myself in the work of searching for
franchisee prospect. I found out address of various franchisees from NSE sub-brokers
list and from the lead given by the visited sub-brokers themselves.
After finding out the address of franchisee, my starting point of research was visit
them and took detailed information from them. I survey 150 sub-brokers and
questioned them relating to the products & services provided by their brokers,
departments with their present brokers, business development supports provided and
required by them for their business development and other personal information. I
also visited some of the leading regional brokers to make my selves more aware of the
market scenario. I also discussed this with our research guides (the assistant branch
manager and Business acquisition manager) and with also other staff of the branch.
From the data collected through questionnaire, I have found out the various marketing
strategies, possibilities that MOSL can use for acquiring business in the future; in the
other uncovered regions of Ahmedabad.
I have found that MOSL is enjoying good reported place in the market through its
varied products and services, various department desk, its unique business models.
Motilal Oswal Securities Limited
TABLE OF CONTENTS
S.No. Topic Page
No.
I Certificate
II Declaration
III Acknowledgment
IV Preface
V Executive Summary
Chapter 1 Introduction 1
1.1 Industry profile 4
1.1.1 Over the counter exchange of India 7
1.1.2 National Stock Exchange of India 7
1.1.3 Division of Share Market 8
1.1.4 Major Players in the broking Industry 11
1.2 Company Profile 12
1.2.1 Introduction 13
1.2.2 MOSL Four Companies 14
1.2.3 Organization Structure 15
1.2.4 Values 16
1.2.5 Management Team 17
1.2.6 Trading Department 22
1.2.7 H.R Department 22
1.2.8 Awards & Accolades 24
1.2.9 Services By MOSL 25
1.3 Product Profile 26
1.3.1 Products & Services 27
1.3.2 New Offering 34
Motilal Oswal Securities Limited
1.3.3 Stoke Market Review 36
1.4 Theoretical Aspects of Business 38
1.4.1 Percentage of Sub-broker in Each region 39
1.4.2 Business Model 40
Chapter 2 Research Methodology 45
2.1 Statement of Problem 46
2.2 Hypothesis 46
2.3 Objectives of Study 47
2.4 Utility of the Study 48
2.5 Research Design 48
2.6 Sample Design 49
2.7 Source Of Data 49
2.8 Limitation of the Study 49
2.9 Data Analysis & Interpretation 50
Chapter 3 Findings & Recommendation 68
Chapter 4 Conclusion 80
Chapter 5 Reference 82
Chapter 6 Annexure 84
Motilal Oswal Securities Limited
1
CHAPTER 1
INTRODUCTION
Motilal Oswal Securities Limited
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INTRODUCTION
Motilal Oswal Securities Ltd. (MOSL) was founded in 1987 as a small sub-broking
unit, with just two people running the show. Focus on customer-first-attitude, ethical
and transparent business practices, respect for professionalism, research-based value
investing and implementation of cutting-edge technology has enabled us to blossom
into an over 1600 member team.
Today Motilal Oswal has a well-diversified financial services firm offering a range of
financial products and services such as Wealth Management, Broking & Distribution,
Commodity Broking, Portfolio Management Services, Institutional Equities, Private
Equity, Investment Banking Services and Principal Strategies.
It has a diversified client base that includes retail customers (including High Net
worth Individuals), mutual funds, foreign institutional investors, financial institutions
and corporate clients. It‟s headquartered in Mumbai and as of March 31st, 2011, had a
network spread over 611 cities and towns comprising 1,644 Business Locations
operated by our Business Partners and us. As at March 31st, 2011, MOSL had
709,041 registered customers
MOSL is one of the best companies among Indian domestic broking houses enjoying
an unmatched and unparalleled brand recall. Motilal Oswal Securities Ltd. Is
financially sound and have an excellent track record of consistent market growth in all
key business segments.
Company is committed to give their customers the best services and holding to their
core values which always place their client's interests first. These values are reflected
in their business principles, which emphasize integrity, commitment to excellence,
innovation and teamwork
Motilal Oswal Securities Limited
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MOSL provide the solid research to their clients. As a part of project concern we are
studying the business models and for the growth of business which is the tools being
used and required by the sub-brokers.
So, this project aspires to know the competent market leaders, behavior of the
individual client. This also helps us to know the preferences of the Sub-brokers to
choose the main brokers so that they can provide good services according to the sub-
brokers requirements to make more and more sub-brokers, individual client and other
HNI clients
Motilal Oswal Securities Limited
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1.1. Industry Profile
Introduction:
The Indian financial services industry has experienced significant growth in the last
few years. The Indian financial markets have considerably broadened and deepened
due to various financial market reforms undertaken by the regulators. Introduction of
innovative and diverse financial instruments and entry of large domestic players and
sophisticated international players have triggered this growth.
None banking financial services sector, such as equities, derivatives and commodities
brokerage, residential mortgage and insurance services, where new innovative
products and expanding delivery channels have helped these sectors achieve high
growth rates. Retail segment has grown multi-fold due to Regulatory reforms, diverse
asset instruments, changing demographic profile, soft real interest rates and enhanced
foreign participation (FIIs).
Finance and investment industry is playing a vital role for the development of the
economy. Financial market in India is one of the oldest in the world and is considered
to be the fastest growing and best among all the markets of the emerging economies.
The history of Indian capital markets dates back 200 years toward the end of the 18th
century when India was under the rule of the East India Company. The development
of the capital market in India concentrated around Mumbai where no less than 200 to
250 securities brokers were active during the second half of the 19th century.
The financial market in India today is more developed than many other sectors
because it was organized long before with the securities exchanges of Mumbai,
Ahmedabad and Kolkata were established as early as the 19th century. By the early
1960s the total number of securities exchanges in India rose to eight, including
Mumbai, Ahmedabad and Kolkata apart from Madras, Kanpur, Delhi, Bangalore and
Pune. Today there are 21 regional securities exchanges in India in addition to the
centralized NSE (National Stock Exchange) and OTCEI (Over the Counter Exchange
of India).
Motilal Oswal Securities Limited
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The international financial market over the world has grown very fast in the recent
years. The private capital market is consistently improving since 1997. The buoyant
capital flows among the nation's boundaries have raised the existing strength of the
financial market domestically as well as internationally.
Trading Pattern of the Indian Stock Market
Trading in Indian stock exchanges is limited to listed securities of public limited
companies. They are broadly divided into two categories, namely, specified securities
(forward list) and non-specified securities (cash list). Equity shares of dividend
paying, growth-oriented companies with a paid-up capital of at least Rs.50 million
and a market capitalization of at least Rs.100 million and having more than 20,000
shareholders are, normally, put in the specified group and the balance in non-specified
group.
Two types of transactions can be carried out on the Indian stock exchanges:
Spot delivery transactions "for delivery and payment within the time or on the date
Stipulated when entering into the contract which shall not be more than 14 days
following the date of the contract": and
Forward transactions "delivery and payment can be extended by further period of
14 days each so that the overall period does not exceed 90 days from the date of the
contract". The latter is permitted only in the case of specified shares. The brokers who
carry over the outstanding pay carry over charges (can tango or backwardation) which
are usually determined by the rates of interest prevailing.
A member broker in an Indian stock exchange can act as an agent, buy and sell
securities for his clients on a commission basis and also can act as a trader or dealer as
a principal, buy and sell securities on his own account and risk, in contrast with the
practice prevailing on New York and London Stock Exchanges, where a member can
act as a jobber or a broker only.
Motilal Oswal Securities Limited
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The nature of trading on Indian Stock Exchanges are that of age old conventional
style of face-to-face trading with bids and offers being made by open outcry.
However, there is a great amount of effort to modernize the Indian stock exchanges in
the very recent times.
1.1.1 Over The Counter Exchange of India (OTCEI)
The traditional trading mechanism prevailed in the Indian stock markets gave way to
many functional inefficiencies, such as, absence of liquidity, lack of transparency,
unduly long settlement periods and benami transactions, which affected the small
investors to a great extent. To provide improved services to investors, the country's
first ring less, scrip less, electronic stock exchange - OTCEI - was created in 1992 by
country's premier financial institutions - Unit Trust of India, Industrial Credit and
Investment Corporation of India, Industrial Development Bank of India, SBI Capital
Markets, Industrial Finance Corporation of India, General Insurance Corporation and
its subsidiaries and Can Bank Financial Services.
Trading at OTCEI is done over the centers spread across the country. Securities traded
on the OTCEI are classified into: Listed Securities, Permitted Securities, Initiated
debentures.
OTC has a unique feature of trading compared to other traditional exchanges. That is,
certificates of listed securities and initiated debentures are not traded at OTC. The
original certificate will be safely with the custodian. But, a counter receipt is
generated out at the counter which substitutes the share certificate and is used for all
transactions.
Motilal Oswal Securities Limited
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1.1.2 National Stock Exchange (NSE)
With the liberalization of the Indian economy, it was found inevitable to lift the
Indian stock market trading system on par with the international standards. On the
basis of the recommendations of high powered Pherwani Committee, the National
Stock Exchange was incorporated in 1992 by Industrial Development Bank of India,
Industrial Credit and Investment Corporation of India, Industrial Finance Corporation
of India, all Insurance Corporations, selected commercial banks and others.
Trading at NSE can be classified under two broad categories:
1) Wholesale debt market 2) Capital market.
Wholesale debt market operations are similar to money market operations -
institutions and corporate bodies enter into high value transactions in financial
instruments such as government securities, treasury bills, public sector unit bonds,
commercial paper, certificate of deposit, etc.
There are two kinds of players in NSE:
1) Trading members and
2) Participants.
Recognized members of NSE are called trading members who trade on behalf of
themselves and their clients. Participants include trading members and large players
like banks who take direct settlement responsibility.
Trading at NSE takes place through a fully automated screen-based trading
mechanism which adopts the principle of an order-driven market. Trading members
can stay at their offices and execute the trading, since they are linked through a
communication network. The prices at which the buyer and seller are willing to
transact will appear on the screen. When the prices match the transaction will be
completed and a confirmation slip will be printed at the office of the trading member.
Motilal Oswal Securities Limited
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1.1.3 Basically, Share Market can be divided into two parts
Primary Market It is the market where new issues of securities are offered to the
investors.
Secondary Market An investor of a secondary market buys a security from another
participant of the same and not from any issuing corporation (as in case of Primary
Market
Difference between Primary and Secondary Markets
In the primary market securities are issued to the public and the proceeds go to the
issuing company. Secondary market is a term used for stock exchanges, where stocks are
bought and sold after they are issued to the public.
Company Owners
Company IPO
Individuals apply to
get shares of the
company
Companies share ownership by issuing share
Primary market
Companies allocate shares to individuals and those who get the shares
become part owners of the company.
Motilal Oswal Securities Limited
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Secondary Market
Company
Companies get themselves listed on popular stock exchanges like
BSE and NSE
Broker Stock
Exchange Individual
Investors
Motilal Oswal Securities Limited
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CUSTOMER SUPPORT
SMS
Live chat Relationship Manager
Call centre
Website
Multi Channel
Investment Option
Online Trading
Share Shops Dial n Trade
Multi Channel Access to the Stock Market
Motilal Oswal Securities Limited
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1.1.4 Major Players in the Broking Industry
Motilal Oswal Securities Limited
12
COMPANY
PROFILE
Motilal Oswal Securities Limited
13
1.2.1 Introduction of Motilal Oswal Securities Ltd
The story of Motilal Oswal Securities Ltd (MOSL) goes back many years, when Mr.
Motilal Oswal and Mr. Raamdeo Agrawal met each other as students in a Mumbai
suburban hostel in the early eighties. Both the young chartered accountants hailing
from a rural & an unpretentious background had a common dream viz 'to build a
professional organization with strong value systems, to provide reliable & honest
investment advice to investors'. Thus was born their first enterprise called "Prudential
Portfolio Services" in 1987. Motilal Oswal Securities Ltd. was founded in 1987 as a
small sub-broking unit, with just two people running the show. Focus on customer-
first-attitude, ethical and transparent business practices, respect for professionalism,
research-based value investing and implementation of cutting-edge technology has
enabled us to blossom into an almost 1600 member team.
Today MOSL is a well-diversified financial services firm offering a range of
financial products and services such as Wealth Management, Broking & Distribution,
Commodity Broking, Portfolio Management Services , Institutional Equities, Private
Equity , Investment Banking Services and Principal Strategies.
MOSL have a diversified client base that includes retail customers (including High
Net worth Individuals), mutual funds, foreign institutional investors, financial
institutions and corporate clients. MOSL‟s headquartered in Mumbai and as of March
31st, 2010, had a network spread over 611 cities and towns comprising 1,644
Business Locations operated by our Business Partners and us. As at March 31st,
2010, MOSL had 709,041 registered customers.
Motilal Oswal Financial Services is a well-diversified financial services group having
businesses in securities, commodities, investment banking and capital venture With
over 1,644 business locations and more than 709,041 customers in over 611 cities,
Motilal Oswal is well suited to handle all your wealth creation and wealth
management needs. These solutions are provided by a force of over 1600 employees
and over 808 Business Associates
Motilal Oswal Securities Limited
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1.2.2 Motilal Oswal Financial Services Ltd consists of four
companies
Motilal Oswal Investment Advisors Pvt. Ltd. is our Investment Banking arm with
collective experience of over 100 years in investment banking/corporate banking and
advisory services
Motilal Oswal Commodities Broker (P) Ltd. has been providing commodity trading
facilities and related products and services since 2004.
Motilal Oswal Venture Capital Advisors Private Limited has launched the India
Business Excellence Fund (IBEF); a US$100 mn India focused Private Equity Fund.
Motilal Oswal Securities Ltd. (MOSL) is a leading research and advisory based
stock broking house of India, with a dominant position in both institutional equities
and wealth management. Our services include equities, derivatives, e-broking,
portfolio management, mutual funds, commodities, IPOs and depository services.
Motilal Oswal Securities Limited
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1.2.3 Organizational Structure:-
Motilal Oswal Securities Limited
16
1.2.4 VALUES
Motilal Oswal Securities Limited
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Mr. Motilal Oswal CMD, MOSL
1.2.5 Management Team:-
Mr. Motilal Oswal is the Chairman and Managing Director of Motilal Oswal
Financial Services Ltd. (MOFSL). He is a Chartered Accountant and started the
business along with co-promoter, Mr. Raamdeo Agrawal in 1987.
Mr. Oswal has received the Rashtriya Samman Patra awarded by the Government of
India for being amongst the highest income tax payers in the country for a period of 5
years from FY95–FY99.
Mr. Oswal has served on the governing board of the Bombay Stock Exchange (BSE)
as well as IMC and also has served on many committees of BSE, NSE, SEBI and
CDSL. He is also a board member and a Director of Jain International Trade
Organisation (JITO).
Motilal Oswal Securities Limited
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The Indian Council of Management Executives (ICME) has awarded the Knight of
the Millennium to Mr. Oswal for the Capital Market
Recently, Mr. Oswal was conferred the “Udyog Rattan Award” for his outstanding
performance in the industrial development of the country by the Institute of Economic
Studies, New Delhi. He has also been inducted into The Hall of Fame for excellence
in Franchising by the Franchising World Magazine. He is also awarded as the
Champion of Arthshastra by the Rotary District and the Excellent Business Achiever
in Financial Services Award by the Institute of Chartered Accountants of India.
Motilal Oswal Financial Services group activities include Wealth Management,
Investment Banking, Institutional Broking, Private Equity and Asset Management
with operations in 1644 outlets in over 611 cities and more than 709,041 customers.
The company's employee‟s strength is about 1500 people including 600 MBAs,
Engineers and Chartered Accountants etc.
In the year 2006 and 2007, Asia Money Brokers Poll has rated Motilal Oswal
Securities as the country's Best Local Research Company. It was also ranked as the
Best Brokerage in the ET Now – Starmine Analysts Awards 2009 and among the top
2 Local Brokerages in the AsiaMoney and Institutional Investor Brokerage polls.
In the year 2008, NASCOM – CNBC – TV18 rated Motilal Oswal as the Best IT User
Award for the Financial Services Category. Franchisee World Magazine the most
coveted award in the retail and franchising industry rated Motilal Oswal as “The Best
Franchisee in Financial Services” for the second year in succession.
Motilal Oswal Securities Limited
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Mr. Raamdeo Agrawal JMD, MOSL
MD, MOSL
.
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Mr. Raamdeo Agrawal is the man behind the strong research capabilities at Motilal
Oswal Financial Services Ltd. He is an Associate of Institute of Chartered
Accountants of India and also a member of the National Committee on Capital
Markets of the Confederation of Indian Industry.
Mr. Agrawal specialises in equity research. He has been authoring the annual Motilal
Oswal Wealth Creation Study since its inception in 1996. In 1986, he wrote the book
„Corporate Numbers Game‟, along with co-author, Mr. Ram K Piparia. He has also
featured on 'Wizards of Dalal Street on CNBC TV 18'.
Mr. Agrawal has received the "Rashtriya Samman Patra" awarded by the Government
of India for being amongst the highest Income Tax payers in the country for a period
of 5 years from FY95–FY99.
Motilal Oswal Securities Limited
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Navin Agrawal Ashutosh Maheshvari
Director, MOFSL CEO, MOFSL
Motilal Oswal Securities Limited
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Motilal Oswal Securities Limited
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1.2.6 TRADING DEPARTMENT
Motilal Oswal is one of the broker who is acting as wholesalers and as a broker, it is
the duty of it to provide service of collecting funds and securities from the investors
and send it to clearing house and vice versa. According to SEBI investor has to open
trading account for trading in shares. Client can open an account in any depository.
Trading department is divided into three parts:
Pre-trading (A/c opening, Deposits, etc)
Trading (Dealing room, Sauda punching, conformation)
Post-trading (Payout process, Bills, Pay-in-process, Contract note)
1.2.7 HUMAN RESOURCE DEPARTMENT
MOFSL has grown at a scorching pace, not only in terms of business but also in terms
of its most valuable asset -people. They have an ever-growing employee strength of
2315 associates that operates out of a rapidly expanding Company network.
HR at Motilal Oswal, on the one hand strives to make every employee of the
organization its brand ambassador and on the other hand make the Motilal Oswal
brand stand for the best people practices.
The 3 pillars of HR strategy are:
(1) A clear and relentless (persistent) focus on leadership development
(2) Stringent (severe) focus on the identification and development of 'High
Potentials' at all levels
(3) Investment in technology to deliver state-of-the-art HR processes across the
organization in a time and cost efficient manner.
Motilal Oswal Securities Limited
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The key initiatives towards implementation of the strategy have been:
Balanced Scorecard and KRA implementation:
Leadership Development:
Style and competency assessment for the top tier management of the Company was carried
out and an intensive Executive Coaching programme based on Individual Development Plans
has been started for 13 of the top leaders of the organization.
Technology:
The recruitment process has been enabled and implemented using the existing HR software
of My Zone. This has been implemented in Mumbai during the current year and will be rolled
out across all regions during this year.
Motilal Oswal Securities Limited
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1.2.8 Awards and Accolades :
Motilal Oswal Securities Limited
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1.2.9 Services offering by MOSL:
International & local
International capital Acquisition finance
market arrangement, LBO etc,
International & domestic
SYNDICATION
STRUCTURED
FINANCE
DOMESTIC
IPOs
RESTRUCTURING
CORPORATE
FINANCE
ADVISORY
PRIVATE EQUITY
PLACEMENT
M&A ADVISORY
FCCBs & GDRs
Motilal Oswal Securities Limited
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PRODUCT
PROFILE
Motilal Oswal Securities Limited
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1.3.1 Product and services
In keeping with its tradition of personalized service, Motilal Oswal Securities Limited
provides Customized Equity Advisory Group to clients based on their profile. Equity
Research is an inherent strength of MOSL. Converting that research to advice is the main
function of Equity Advisory. Investors are presented with well researched opportunities in
companies which will grow in both market perceived value and growth. Along side, the
trading fraternity is catered to with ideas induced by Technical analysis and news flow
analysis. The investment ideas identified by the research team are presented and
communicated with conviction to our clients by our advisory team.
Our advisory team has highly trained equity professionals, who act as your Equity Advisor.
MOSL Equity Advisor proactively helps you take informed equity investment decisions and
build a healthy portfolio giving the best fit to your investment and trading needs.
The MOSL Equity Advisory Group is based in Mumbai at largest dealing and advisory floor
of India. This centralized advisory team caters to peculiar Investment need of every HNI &
MNI client and business partner; in a seamless, speedy and reliable manner using state-of-
the-art technology and telecommunication infrastructure.
MOSL Equity Advisors are equipped with the knowledge and prudence making sure that
every rupee deployed works the hardest it can. Your advisors play the part of a guide
ushering you on a swift wealth creation ride. The sheer strength of our advisory creates
synergy for seamless flow of Investment support.
To improve the overall experience while the clients interact with our advisors, MOSL have
implemented a contact center solution, Drishti, in our dealing room. Among other benefits,
this solution helps advisors to manage their client base more efficiently and effectively. The
system provides a single number contact to all our clients as well as a single click auto-dial
for advisors without having to remember their contact details.
Motilal Oswal Securities Limited
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1. Wealth Management and Broking & Distribution :
MOSL offer Wealth Management Services, Broking & third party products to retail
customers through MOFSL, MOSL and MOCBPL. MOSL also provide financing services,
investment advisory, financial planning and portfolio management services (PMS) to our
clients. As at June 30, 2009, MOSL had 5, 57,373 registered customers, to whom MOSL
provide equity & commodities brokerage and PMS.
As at June 30, 2010, MOFSL had a total of 4, 86,571 depository clients. MOSL classify our
clients into two segments - 'mass retail' and 'high net worth' (addressed by a separate offering
called 'Purple'). MOSL offer our clients investment products across the major asset classes
including equities, derivatives, and commodities and distribute third-party products such as
mutual fund schemes and primary equity offerings. MOSL distribute these products through
our business locations and our online channel.
Motilal Oswal Securities Limited
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Motilal Oswal Securities Limited
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2. Institutional Broking
MOSL offer equity broking services in the cash and derivative segments through MOSL to
institutional clients in India and overseas.
These clients include companies, mutual funds, banks, financial institutions, insurance
companies, and FIIs. As at June 30, 2009, MOSL were empanelled with over 300
institutional clients including 200 FIIs.
MOSL service these clients through dedicated sales teams across different time zones.
3. Investment Banking
MOSL offer financial advisory services relating to mergers and acquisitions (domestic and
cross-border), divestitures, restructurings and spin-offs through MOIAPL.
MOSL also offer capital raising and other investment banking services such as the
management of public offerings, private placements (including qualified institutional
placements), rights issues, share buybacks, open offers/delisting and syndication of debt and
equity.
MOIAPL has closed 48 transactions in 2008-09.
Motilal Oswal Securities Limited
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4. Private Equity
In 2006, our private equity subsidiary, MOPEAPL was appointed as the investment manager
and advisor to a private equity fund, India Business Excellence Fund, which was launched
with a target of raising US$100 million. The fund is aimed at providing growth capital to
small and medium enterprises in India, with investments typically in the range of US$3
million to US$7 million. In its final closing, in December 2007, the fund obtained
commitments of US$125 million (Rs.4, 875 million) from investors in India and overseas.
US$31 million of these funds have already been deployed across six deals and the fund is in
advanced stages of closing three more deals, aggregating to US$30 million.
MOFSL is sponsoring India Reality Excellence Fund (”IREF”), an INR 750 crores Private
Equity Real Estate Fund. MOPEAPL will be the investment manager and advisor to the fund.
Motilal Oswal Securities Limited
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5. Asset Management
Our Portfolio Management Services (PMS) are offered through MOSL. As on 30th June,
2009, assets under management for this business were Rs. 6.8 bn. For the PMS business,
MOSL have a 5 member fund management team; they are supported by MOSL Research
Team of 27research analysts.
MOSL have received an in-principle approval from Securities Exchange Board of India
(SEBI) to set up a mutual fund business in India, through our promoter company, Passionate
Investment Management Private Ltd.
MOSL feel that there is a huge opportunity for new entrants as the industry is still in its
nascent stage in terms of AUM size, number of players and number of schemes, when
analyzing and comparing it with countries like Brazil and other emerging economies. MOSL
will grow our asset management business by leveraging our existing investment management
capabilities in managing funds, our strong research and a large in-house retail franchise
network to spread our reach and capture the investment potential in India and abroad.
6. Broking & Distribution services
Equity (cash and derivatives)
Commodity Broking
Portfolio Management Services
Distribution of financial products
Financing
Depository Services
IPO distribution
MOSL offer these services through our branches, Business Partner locations, the internet and
mobile channels. MOSL also have strategic tie-ups with State Bank of India and IDBI Bank
to offer our online trading platform to its customers.
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7. Commodity Broking
Through Motilal Oswal Commodities Broker (P) Ltd our fully owned subsidiary; we provide
commodity trading facilities and related products and services on MCX and NCDEX.
Besides access to the best of research in the form of Daily Fundamentals & Technical
Reports on highly traded commodities, our clients also get access to our exclusive
Customized Trading Advice on both the trading platforms. MOSL offer these services
through our branches, Business Partner locations, the internet and mobile channels.
8. Mutual Fund
At Motilal Oswal Securities Ltd, they understand the importance of financial goals of their
privileged clients and provide them comprehensive solutions to all your financial needs.
Through their tailor made portfolios, they serve clients needs better and help them and make
informed investment decisions. Their dedicated Mutual fund desk gives clients Solid advice
backed services thus giving them the edge that they always wanted.
9. IPO’s
Book Building and Fixed Price Issue are the two types of Initial Public Offerings (IPO‟s)
through which a public company can raise money in the capital market.
10. My Broker
Motilal Oswal Securities Limited provides a platform of becoming our own broker with
complete research support from MOSL which helps us to make right decision at right time.
MOSL can choose our trading a/c which suits our trading habit‟s & preference and trade
anywhere, anytime. Buying and selling is as easy as click of a button.
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1.3.2 NEW OFFERINGS:
MOST SHARES M 50 (Act like funds and trade like shares)
Motilal Oswal has launched India‟s first fundamentally weighted ETF based on S&P CNX
NIFTY Index – An open ended exchange traded fund.
MOST Shares M 50 takes the NIFTY 50 constituents and remixed them in a different
proportion using Motilal AMC‟s pre-defines methodology; based on fundamental
performance and valuation
MOST Share M 50 is an open ended exchange traded fund giving the investors the benefits of
investing in a mutual fund that trade like a share i.e. a diversified blue chip portfolio, real
time liquidity and prices.
Exchange Traded Fund:
ETFs are just what their name implies: baskets of securities that are traded, like
Individual stocks, on an exchange. Unlike regular open-end mutual funds, ETFs can be
bought and sold throughout the trading day like any stock.
Advantages of Most M50:
Higher allocation to stocks with superior fundamentals and reasonable valuation.
Combines the benefits of passive allocation and active execution
Lower cost structure (apprx 1% against 2%) as compared to the traditional investment
product.
No entry/exit load
Tax efficient exposure to the “market”.
Complete transparency with daily portfolio exposure.
Available at low denomination of less than Rs. 100/-
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Uses of Most Shares M50:
All types of investors i.e. Retail or Institutional, Long term or short term can use the Most
shares M50 for the following strategies:-
1. Investing
2. Trading
3. Hedging
4. Arbitrage
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1.3.3 STOCK MARKET REVIEW
MOSL is known for its equity research ideas. Asia Money Broker's Polls have
consistently rated our research as one of the best in the industry. Our annual Study on
Wealth Creation , authored by Mr. Raamdeo Agrawal, is keenly awaited by investors
across the globe. While „Winner Category and Category Winners‟ was the theme for
the 2009 study, the 2010 study talked about „Creating Wealth from the Unknown and
Unknowable‟.
Bargains are found when markets are blind to large business opportunity, positive
changes or sustained growth; losses are guaranteed when one grossly overpays
India‟s next trillion dollar journey will see distinctly buoyant corporate profits, and
boom in savings and investment
At current valuations, margin of safety in the market is low. However, very high
liquidity can lift the market to rich levels of valuation for quite some time
Our Quarterly Results Preview Compendium, which MOSL also publish in the form
of a pocket size book, is immensely popular. Published well before the first results
announcements hit the market, it serves as a useful guide through the results season.
Some of the noteworthy features that make it a unique product offering are:
A clearly spelt-out India Strategy
Updates on all the sectors under our coverage
Quarterly and annual estimates on all companies under MOSL coverage
Tear-away ready reckoners
MOSL Results Updates are amongst the most comprehensive on the street and are yet
amongst the quickest to reach MOSL clients.
MOSL have a universe of over 225 stocks. While MOSL service our clients regularly
through updates on each company under MOSL coverage, MOSL have also been
helping them create wealth by identifying trends early and uncovering interesting
wealth creation ideas. MOSL have analysts covering 25+ sectors and commodities.
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Thematic Sector Company Market Analysis
Regular Expert Speak Industry Update Initiating Coverage
EcoScope Travelog Company Updates
Ground Reality Wall of Worry
Re-initiating Coverage
Conferences /
Events Corner Office
Elections
InSites
Policy Maker
Annually Budget
Annual Report Update
Wealth Creation
Study
Quarterly India Strategy
Report Results Preview
Results Update /
Review
Holding Report
Monthly
MPower AMC Holdings MOSL Wealth
Auto Dasboard
Derivatives Roll Over
Tele Talk Time
Indian Airports
Ports
Power
Generation
Gasoline
Weekly Pivot Metals Weekly MOSL 3X3 Commodity Weekly
Week in a Nutshell
Valuation Guide MOSL LongShort
MOSL Weekly
Daily
MOSL Derivatives Daily
Margin Update
Commodity Daily
Corporate News
Market Diary
MOSL Market Action
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THEORITICAL
ASPECT OF
STUDY
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1.4.1 Percentage of sub – brokers present in each region
Interpretation
Here the above graph indicates the presence of sub-brokers in Ahmedabad region. MOSL
can see that here 60% of the sub-broker are in south region, 31% of the sub-broker are in
west region, 8% of the sub- broker are in north region, and 1% of the sub-broker are in
east region.
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1.4.2 BUSINESS MODELS
Hybrid Models:
At MOSL MOSL believe in treating their sub-brokers business as if were their own. In
this true spirit of partnership MOSL have set up a dedicated team of Business
Development Manager (BDM) who function as part of the sub-broker team.The BDM
would help sub-brokers in the following ways:-
- Joint sales meeting for acquiring HNI customers
- Establishing Systems & Processes
- Conducting Seminars & Investors meet
- Business Plan Preparation
- Dealers - Relationship Managers - MOSL Business Development officers - Customer Service - Infrastructure - Dealing Terminals - Connectivity - Regional MOSL support Team
-Brand -Marketing Support - Advisory Support -Dedicated Advisors -Investment Ideas -Inactive to Active -Business Development -Sales Support -Training -Systems & Process Dev -Performance Training -Back office -Centralized RMS
Cu
sto
me
r
Products offered: - Equity, Commodity, PMS and Mutual Fund
MOSL Franchise
e
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A person with good track record &
reputation in financial services/other
business/social circles with a good client
base
Minimum 2-3 years’ experience in
selling financial products as main
broker/sub broker/Remise/Mutual fund
distributor/Insurance advisor/Financial
planner or an employee of existing
broker/sub broker
Capacity to invest minimum 5-10 lacs
initially and ability to invest continuously
in infrastructure and people.
Willingness to design office premises in
accordance with the policies laid down by
MOSL
A person with a good track record & reputation
in financial services/other business/social
circles with a good client base
Minimum 2-3 years of experience in selling
financial products
Capacity to invest minimum 2 lacs
Sub broker Remisier/sub
broker
Business model
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BSE,NSE,NSE F&O, BSE
F&O, NCDEX, NDSL,
CDSL, E trading PMS
Mutual fund
One relationship manager
will be assigned to you for
your regular research advice
& market updates through
chat –phone-emails
Marketing and business
development support on a
regular basis
Start up kit comprising of
glow sign flex, visiting
cards, marketing broachers
etc will be provided by
MOSL to help kick start the
business.
One customer service
executive will be assigned
to you for your routine
queries through chat-phone-
emails
Centralized web based
back office access will be
provided
Offerings to
sub broker
Product support Marketing & sales
support
Service support
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BSE,NSE,NSE
F&O, BSE F&O,
NCDEX, NDSL,
CDSL, E trading
PMS Mutual fund
Trading terminal with
Orion
software(BSE/NSE)
Dealing desk
Direct Landline Phone
Conference room
Research advice &
market updates
through chat phone
emails
Issuing contract
notes/bills to end
clients
Online risk
management software
& back office
software
Unique offerings for a special partnership
Multiple Products BSE,NSE,NSE F&O,BSE F&O,NCDEX,NSDL,CDSL,e broking,
PMS,MF(direct & exchange traded),Private
equity, margin funding**, distribution of IPO**,distribution of
insurance**
Infrastructure
Support
State of the art offices with experienced managers
Trading terminal NSE & BSE
Dealing desk
Direct landline phone
Conference facilities
Research Morning calls
Interaction with research desk
Sector specific reports
Research access thorou7gh uppermost portal
Advisory support Centralized advisory support
Dedicated advisor
Offerings to
Remisier
Product support Infrastructure
Support
Sales support Back office
support
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Trading software Equity CTCL Id- orion
E broking CTCL Id: My broker
Commodities CTCL: ODIN
Business
development support
Dedicated team of business development managers who assist your
business growth
Business conversion
support
Dedicated team to provide operational training & helps in converting
business
Service support One customer executive will be assigned to you for your routine
queries through phone – emails
RMS Online risk management software & back office software
Single rms software for online and offline clients
Connectivity Thorough VPN
Through VSAT
Idea dashboard Unique online platform for daily dissemination of research
recommendation
Quarterly business
review
Comprehensive business review to under stand your business
progress and suggest suitable action points
Mini admin terminal clients Limits can be directly set by BA (Deposit based)
Digital services digital contract notes, Auction bills, Leon and SSTT Certificates
Rewards and
recognition
Unique business partner Fraternity Program- UPPERMOST
Technical analysis
software
Falcon Charting Software
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CHAPTER 2
RESEARCH
METHODOLOGY
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2.1 STATEMENT OF PROBLEM
What can be done towards sub-broker satisfaction and sub-broker loyalty?
How to capture new market segments and what are the needs and expectations of
these segments?
Despite of having well drawn plan on sub broker by qualified management team why
such kind of the problems arises between the sub-broker & Broker.
What do the existing franchisees feel about the overall product?
2.2 HYPOTHESIS
Ho: The number of years in a broking firms are not depended on revenue growth.
H1: The number of the years in a broking firms are depended on revenue growth
YEARS
REVENUE GROWTH TOTAL
LEAST
PREFERED
MOST
PREFERED
< 5 Years 17 75 92
6 to 10 Years 3 35 38
11 to 15 Years 3 7 10
>15 Years 3 7 10
TOTAL 26 124 150
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Chi-Square Tests
Pearson Chi-
Square
Value Df
Asymp. Sig. (2-
sided)
4.686a 3 0.196
CONCLUSION
Here chi-square value is 0.196 , Which is greater than 0.05 ( P value)
So, 0.196 > 0.05
So, Here There is a significant relation between number of years in broking firm and revenue
growth.
So Ho is not rejected.
2.3 OBJECTIVE OF STUDY
To study the preferences of sub-brokers in Ahmedabad city, regarding wide range of
the products, services and support tools.
To understand whether sub-brokers are satisfied with the business developments and
supports being provided to them by their present main brokers in Ahmedabad.
To understand the gap between sub-brokers‟ expectations & main brokers‟
perceptions.
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2.4 SIGNIFICANCE OF STUDY
This will also help MOSL to select right tools for approaching the prospects, to give
knowledge of the products & services and other business development supports.
This will also help MOSL to make out the brand awareness at regional level.
This study will provide the knowledge to MOSL to reframe the policies as per
requirements of the regional sub-brokers.
This study also helps MOSL to get knowledge of competitors strategy towards their
sub-brokers.
2.5 RESEARCH DESIGN
A research design is defined, as the specification of methods and procedures for acquiring the
Information needed. It is a plant or organizing framework for doing the study and collecting
the data. Designing a research plan requires decisions all the data sources, research
approaches, Research instruments, sampling plan and contact methods.
DESCRIPTIVE STUDIES
Descriptive research in contrast to exploratory research is marked by the prior
formulation of specific research Questions.
The investigator already knows a substantial amount about the research problem.
Descriptive research is also characterized by a Preplanned and structured design.
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2.6 SAMPLING DESIGN
Sample size : 150
Sampling method: Convenient Sampling:
Because of limited time and money, I have selected convenient sampling method
(Non Random Sampling) But, MOSL have not found much difference in findings
gained from different areas. So it shows enough validity of the research.
Research Instruments : Questionnaire (attached in Annexure)
Geographical Scope: Ahmedabad city
Population: Equity Sub-Broker in Ahmedabad city
2.7 SOURCE OF DATA:
Primary: Primary data is collected by visiting various persons who are
connected with broking industry through surveys/questionnaires,
interviews.
Secondary: Company material, websites, research reports, yellow pages
2.8 Limitation of the study
People not give good response
We have to work under the company guidelines & task which has given to me
Only 150 people was as a sample size from actual population ,so it is may be wrong
decision to take.
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2.9 DATA ANALYSIS & INTERPRETATION
1) Number of years of sub-broker in broking Business.
INTERPRETATION
The above graph indicates that 99 respondents out of 150 are from less than 5 years in this
business and only 8 respondents are in this business from last 15 years.
0
20
40
60
80
100
120
140
160
180
< 5 years 6 - 10 year 11 - 15 year > 15 years
99
36
7 8
0.66 %
0.24 %
0.045 % 0.05 %
No. of years of current setup
NO. OF YEARS RESPONDENT %
< 5 years 99 66
6 - 10 year 36 24
11 - 15 year 7 4.67
> 15 years 8 5.33
TOTAL 150 100
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2) Products & Services provided to Sub-Broker by their main Broker.
PRODUCTS AND SERVICES RESPONDENT %
Equity 146 26.35
Commodity 82 14.80
Insurance 58 10.47
IPO 91 16.426
PMS 48 8.66
Currency 48 8.66
mutual fund 59 10.65
marin of funding 15 2.71
any other 7 1.27
TOTAL 554 100
INTERPRETATION
Out of 150 respondents 146 Sub-Broker were provided equity product by their broker.
And also only 15 Sub-Brokers are provided Margin of funding.
So, Motilal has the opportunity to focus on the products which are less popular products like
margin of funding, this provides MOSL potentials for acquiring more and more business.
0
20
40
60
80
100
120
140
160
180
146
82
58
91
48 48 59
15 7
26%
14.8%
10%
16%
9% 9% 11%
3% 1.2%
Product and services provided by broker
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3) Services/facilities provided to sub-broker by their broker.
12%
9%
11%
6%
3% 3%
3% 8%
13%
12%
8%
3% 1%
3% 5%
Facilities provided by broker Different account openingscheme Depository services
Different online tradingsoftwareInvestment advices
Risk management desk
Account opening within 24hoursMutual fund research desk
Business DevelopmentsoftwareSMS configuration to franchisee’s clients
SERVICES AND FACILITIES RESPONDENT %
Different account opening scheme 124 12.01
Depository services 89 8.62
Different online trading software 111 10.75
Investment advices 61 5.91
Risk management desk 34 3.29
Account opening within 24 hours 30 2.90
Mutual fund research desk 35 3.39
Business Development software 80 7.75
SMS configuration to franchisee’s clients 138 13.37
CDSL-rights 123 11.91
Investment banking 81 7.84
Branding materials 31 3.00
online mutual fund platform 13 1.25
Customer service desk 32 3.10
HNI desk 50 4.84
TOTAL 1032 100
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INTERPRETATION
From the 150 respondents almost 89 respondents were provided Depositary services
by their broker.
Only 13 Sub-Broker were provided Online Mutual Fund Platform. That is only a
1.25% in the research.
Motilal Oswal has to focus on the various services & facilities which is available In
the market & also which are having a less percentage in the survey like branding
materials, Account opening within 24 hours, online Mutual funds platform etc.
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4) Main sources for getting new clients by Sub-Broker.
SOURCES NO. RESPONDENT %
Reference 148 64.63
Advertisement 35 15.28
Sales team 19 8.30
Others 27 11.79
TOTAL 229 100
INTERPRETATION
Main source of getting new clients for sub-broker is reference, Sub-brokers getting
information about the clients through references like existing clients,
65%
15%
8%
12%
Sources for getting client
Reference
Advertisement
Sales team
Others
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5) Percentage of client dealing in following.
% CASH FUTURE OPTION COMMODITY
0 to 20 5 43 44
21 to 40 21 28 12
41 to 60 30 21 4
61 to 80 26 3 0
81 to 100 48 1 4
TOTAL 130 96 64
INTERPRETATION:
The above graph indicates that 20% of the Clients are dealing in cash 5 sub-brokers, dealing
in Future option with 43 sub-broker, dealing in commodity with 44 sub.broker.
0
20
40
60
80
100
0 to 20 21 to 40 41 to 60 61 to 80 81 to 100
5 21
30 26
48 43 28
21
3
1
44
12 4
0
4
CASH FUTURE OPTION COMMODITY
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6) The qualities that attributed for Sub-broker to be a successful sub –
broker.
QUALITIES NO. OF
RESPONDENT %
The brand value of the company you are associated
with.
99 36.80
Higher ratio of successful trading calls generated. 96 35.69
A culture of properly researched Ideas coupled with
good infrastructure & client servicing.
70 26.02
Other please specify... 4 1.49
TOTAL 269 100
INTERPRETATION
36% of the respondents thinks that higher ratio of successful trading calls given to the
customer is the key to become a successful broker. Motilal Oswal being best for its Equity
research in the industry can approach these clients as they would like to take the research
services of Motilal Oswal Securities in order to give more successful calls to their customers.
And also almost 37% of the respondents thinks that‟s the brand value of the co. you are
associated with are concerned.
37%
36%
26%
1%
Qualities attributes to be a successful sub-broker
The brand value of the companyyou are associated with.
Higher ratio of successful tradingcalls generated.
A culture of properly researchedIdeas coupled with goodinfrastructure & client servicing.
Other please specify...
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7) Factors according to Sub-Broker for having a satisfied client.
FACTORS NO. OF RESPONDENT % Prompt & timely addressing of client queries 79 43.41
Best technology in place 48 26.37
Thinking ahead of time 51 28.02
Any others…. 4 2.20
TOTAL 182 100
INTERPRETATION
From the 150 respondents, almost 43.4 % of the respondents think that mostly clients are
looking for prompt & timely services from them.
020406080
100120140
Prompt &timely
addressing ofclient queries
Besttechnology in
place
Thinkingahead of time
Any others….
79
48 51
4
43.4%
26.4% 28%
2.2%
Factors needed to satisfy clients
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8) The immediate challenges for this industry & Sub-Broker’s plan
to tackle that challenges.
IMMEDIATE CHALLENGES RESPONDENT %
Lack of interest in the stock markets in the retail
category
97 44.09
Source for fresh capital drying up from both domestic
& foreign investors
60 27.27
Cut costs & wait for good times to come 58 26.36
Any other 5 2.27
TOTAL 220 100
INTERPRETATION
From the 150 respondents, the higher value is 44% into the lack of interest in the stock
market in the retail category, where the other is 26 % & 28% for the both cut cost and wait
for good time to come and also for the sources for the fresh capital drying up from both
domestic and foreign investors respectively.
This will mostly helpful to know the problems and also the challenges that will be tackle in
the share market
44%
28%
26%
2%
Immediate challenges
Lack of interest in the stockmarkets in the retail category
Source for fresh capital dryingup from both domestic &foreign investors
Cut costs & wait for goodtimes to come
Any other
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9) The importance of following development criteria for
business. (Circle the one that is most suitable to your
Preference. Consider 5 as most preferred and 1 as the least
preferred)
[Note – Here consider 1 as not at all important and same as the 5 as the very important and
also 3 as the neutral]
INTERPRETATION
Client satisfaction is a most important development criteria for the business. The other
leading important factors or the criteria are revenue growth, client base, active ratio, etc
IMPORTANT OF BUSSINESS
DEVELOPMENT
NOT AT ALL IMPORTANT
NOT IMPORTANT
NEUTRAL IMPORTANT VERY IMPORTANT
TOTAL
Client Acquisition
5 8 26 50 61 150
Client base 5 2 10 75 58 150
Active Ratio 2 4 22 58 64 150
Client satisfaction
2 0 6 37 105 150
Revenue Growth 2 1 23 67 57 150
NOT AT ALLIMPORTANT
NOT IMPORTANT NEUTRAL IMPORTANT VERYIMPORTANT
5 8
26
50 61
5 2 10
75
58
2 4
22
58 64
2 6
37
105
2 1
23
67 57
Chart Title
Client Acquisition Client base Active Ratio Client satisfaction Revenue Growth
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10) Please rank the following business development support as per their
importance in your business. (Rank from 1 as most imp. to 8 as least imp.)
INTERPRETATION
From the above table, it is said that the no. of the respondents are high into the centralize
customer services and same as the least one is the easy acess to the senior management.
The most of the respondents like the customer support, local marketing, etc.
This will let MOSL to know the requirement and support required by the sub-brokers for
their business development, which in other hand will be very helpful for future
correspondence with their prospects.
16.5 17.125 16.75 14.625
17.375
13.375 16.5 16.375
No. of responses
No. of responses
Business development Support No. of responses Rank
Centralized Advisory & Research Support 16.5 5.5
Local area Marketing & Business Support 17.125 2
Initial Training & Business migration 16.75 3.5
Easy access to senior management 14.625 8
Centralized customer services 17.375 1
Office look & feel 13.375 5.5
Seminar & Investor Meet 16.5 7
B-Plan Preparation & other support 16.375 3.5
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11) What kind of support you require which will lead to next level.
(Please give rating from 1 to 4; first priority will be ranked 1 and so
on).
Supports Require To Lead The Next Level No. Of Resp. Rank
Marketing and business development support 33 2.5
Brand value of broker 33 2.5
Successful calls given by broker 33.25 1
Back office/customer care support 32.75 4
INTERPRETATION
From the above table, MOSL can see that the red line shows the rank and the blue one is for
the no. of respondents.
Here, the most of the respondents preferred the successful calls given by the broker and like
wise to all.
This will helpful to know or to go to the next level of the business and increase the growth.
33 33 33.25 32.75
2.5 2.5
1
4
Marketing and businessdevelopment support
Brand value of broker Successful calls given bybroker
Back office/customercare support
support require to lead the next level
no. of resp. rank
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12) Please rate the importance of following criteria while selecting a broker
for Franchisee… (Circle the one that is most suitable to your preference.
Consider 5 as most preferred and 1 as the least preferred)
Criteria’s for Franchisee
Acquisition
NOT AT ALL IMPORTANT
NOT IMPORTANT
NEUTRAL IMPORTANT VERY IMPORTANT
TOTAL
Growth Opportunities 0 6 16 65 63 150
Revenue Sharing ratio 0 5 16 74 55 150
Brand Name 4 5 39 37 65 150
Business Model 2 3 35 37 73 150
Research Analysis 10 11 18 47 64 150
Products & services 0 10 33 63 44 150
Initial Deposit 4 8 31 79 28 150
Growth Opportunities
Revenue Sharing ratio
Brand Name
Business Model
Research Analysis
Products & services
Initial Deposit
4
2
10
4
6
5
5
3
11
10
8
16
16
39
35
18
33
31
65
74
37
37
47
63
79
63
55
65
73
64
44
28
Criteria’s for Franchisee Acquisition
NOT AT ALL IMPORTANT NOT IMPORTANT NEUTRAL IMPORTANT VERY IMPORTANT
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INTERPRETATION
Out of 150 respondents, 74 have given “top importance” to Revenue sharing ratio; growth
opportunity and research analysis are marked as “important” by 65 and 64 respondents.
Business model, product & Services and Initial deposit are being marked as neutral by 37, 63,
79 respondents respectively.
MOSL has to give high importance to the “Revenue sharing ratio” followed by the other
criteria like Research Analysis and Growth Opportunity for acquiring the franchisee and for
future business expansion.
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13) What kind of research analysis is provided by your broker?
INTERPRETATION
The majority of the respondent is in the daily email through. The least one is the daily &
weekly physical reports.
It helps to know the current situation and how to boost up the business.
Daily Weekly Monthly Quarterly Annually
0 0 7 5
21
89
13 4 0 0
15 24
11 0 0
Providing research reports
Physical Email Uploaded on Website
TIME Physical Email Uploaded on Website
Daily 0 89 15
Weekly 0 13 24
Monthly 7 4 11
Quarterly 5 0 0
Annually 21 0 0
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14) Have ever change your sub-brokership in the past ?
ANSWER RESPONDENT %
Yes 19 12.67
No 131 87.33
TOTAL 150 100
INTERPRETATION
Out of the 150 respondents, the majority is NO.
Almost 87 % were not changing their broking business into the past.
The remaining 13 % have changed their sub – brokership into the past.
Yes
13%
No
87%
Changing of sub-brokership in the past
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15) What is your initial investment for starting your business?
INITIAL INVESTMENT NO.RESPONDENT %
Less than 100,000 20 13.33
100,000 to 300,000 73 48.67
300,000 to 500,000 34 22.67
More than 500,000 23 15.33
TOTAL 150 100
INTERPRETATION
Out of 150 respondents, the most of the respondents are invest Rs. 100,000 to 300,000 as
initial investment. The Percentage is 49%
The least one is into the less than 100,000. The percentage is almost 13 %
0
20
40
60
80
100
120
140
Less than100,000
100,000 to300,000
300,000 to500,000
More than500,000
20
73
34 23
13%
49%
23%
15%
Initial investment
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16) Please rate your satisfaction level with the services provided by your
present broker…
INTERPRETATION
From the above information, it is stated that the most of the respondent of 110 out of 150 feel
the satisfaction level high.
73%
20%
6%
0% 1%
Satisfication level
Verry satisfied
Satisfied
Neutral
Not satisfied
Not at all satisfied
Satisfactory level No. of respondent % Very satisfied 110 73.33
Satisfied 30 20
Neutral 9 6
Not satisfied 0 0
Not at all satisfied 1 0.67
TOTAL 150 100
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CHAPTER 4
FINDINGS
&
RECOMMENDATON
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RECOMMENDATIONS
MOSL have examined that different investors are giving priorities to investment instrument
as per their need. Accordingly, as per the needs of the client, a product can be recommended
to him. Motilal Oswal Financial Services Limited (MOSL) has strength in Top Quality
Research, Internet Trading, Investment Advisory Services, Value Added Back office services
and DP Services. The firm also deals in commodities and mutual funds to add more number
of clients.
Motilal Oswal should increase its promotional activities and it should make aware
people of Ahmedabad city about its product and services.
Motilal Oswal should turn the existing customer to trade or invest in other product,
which they are not aware about, or not investing in them.
Motilal Oswal should organize seminars and presentation of highly experienced
person. It should provide classroom training and literature to those who are eager to
learn about share market. It should distribute documents about product information.
Initial deposit, which quite high, should be reduced up to a considerable level. If not
possible than that should be an easy installment scheme option available.
One of the most important aspect while selecting a Broking firm is „Revenue Sharing
Ratio‟.
In fact many times just because of the above two factors (i.e. Initial deposit &
Revenue Sharing Ratio) a prospect remove the name of MOSL from the list while
choosing a broker.
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FINDINGS
From the study carried out and the analysis of the result obtain from the survey, the following
suggestions and recommendations were made to help the firm improve upon its product.
On the basis of my analysis MOTILAL OSWAL‟S best USP (Unique selling product
is their advice and research report provided to the clients in a weekly and monthly
form.
The time to time services for the clients like Account opening sms, daily research
report after the working hours of share market and before the opening bell of share
market for Sub-Brokers.
The brokerage charges also very reasonable for the clients, MOSL charges only 0.3%
for the intraday and 30% for the delivery base.
Providing technical software free of cost to the sub-broker is one of the main feature
of Motilal Oswal Securities Ltd.
Motilal Oswal Securities Ltd providing an UPPERMOST card to the employees to
motivate them.
Motilal Oswal Securities Ltd has invested 100 crores in just research programme
The nearest competitor of Motilal Oswal Securities Ltd is Kotak Securities Ltd in
terms of the revenue sharing ratio, brokerage, franchise acquisition etc.
Motilal Oswal Securities Ltd having strategy to keep only one franchise in one
territory.
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STRATEGIC TOOLS
SWOT ANALYSIS OF MOTILAL OSWAL SECURITIES LIMITED
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Strengths:
Large and diverse distribution network
MOSL‟s financial products and services are distributed through a pan-India network. Its
business has grown from a single location to a nationwide network spread across 1568
business locations operated by their business associates or directly by us in 595 cities and
towns.
Strong research and sales teams
MOSL research teams are focused on cash equities, equity Derivatives and commodities. It
has been awarded „Asia Money Polls 2007‟ with 'Best Overall Country Research – Local
Brokerage'
Brand recognition
'Motilal Oswal' is a well-established brand among retail and institutional investors in India.
MOSL have been able to leverage its brand awareness to grow its businesses, build
relationships and attract and retain talented individuals.
Weakness:-
Very less exposure towards the retail business.
Most revenue generation from the franchisee business only.
No Establishment as Mutual Fund though have a strong research base.
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Opportunities:-
Growing Financial Services industry‟s share of wallet for disposable income.
Huge market opportunity for wealth management service providers as Indian
wealth management business transforming from mere wealth safeguarding to
growing wealth.
Regulatory reforms would aid greater participation by all class of investors.
Leveraging technology to enable best practices and processes.
Increased appetite of Indian corporate for growth capital.
Threats:-
Execution risk.
Slowdown in global liquidity flows.
Increased intensity of competition from local and global players.
Unfavorable economic conditions
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BCG Matrix of MOSL products
1. Stars = (high growth, high market share):
Use large amounts of cash and are leaders in the business so they should also generate
large amounts of cash.
Frequently roughly in balance on net cash flow. However if needed any attempt
should be made to hold share, because the rewards will be a cash cow if market share
is kept.
In the MOSL PMS, Investment banking & Private equity all are falling under the star.
Because they create high growth and high market share with more and more revenue.
PMS
Investment Banking
Private Equity
MF
AMC
Online Broking
Offline Broking
Insurance
Gro
wth
Ra
te
H
L
H L
Market Share
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2. Cash Cows = (low growth, high market share):
Profits and cash generation should be high, and because of the low growth,
investments needed should be low. Keep profits high
Foundation of a company
MOSL‟s offline broking falls under the cash cow covering high market share and low
growth.
3. Dogs =(low growth, low market share):
Avoid and minimize the number of insurance company.
Beware of expensive „turn around plans‟.
Deliver cash, otherwise liquidate
Insurance fall under the dog so, MOSL expands the product otherwise liquidate the
insurance.
4. Question Marks (= high growth, low market share):
Have the worst cash characteristics of all, because high demands and low returns due
to low market share
If nothing is done to change the market share, question marks will simply
Absorb great amounts of cash and later, as the growth stops, a dog.
Either invests heavily or sells off or invests nothing and generates whatever cash it
can. Increase market share or deliver cash
MOSL MF, AMC, Online broking fall under the Question Mark category.
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Porter’s Five Force Model
Porter's five forces analysis is a framework for the industry analysis and business
strategy development developed by Michael E. Porter of Harvard Business School in
1979. It uses concepts developed in Industrial Organization (IO) economics to derive
five forces which determine the competitive intensity and therefore attractiveness of a
market. Attractiveness in this context refers to the overall industry profitability. An
"unattractive" industry is one where the combination of forces acts to drive down
overall profitability. A very unattractive industry would be one approaching "pure
competition".
Porter refers to those forces close to a company that affect its ability to serve its
customers and make a profit. A change in any of the forces normally requires a
company to re-assess the marketplace. The overall industry attractiveness does not
imply that every firm in the industry will return the same profitability. Firms are able
to apply their core competences, business model or network to achieve a profit above
the industry average.
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Bargaining power of Buyers:
It is also described as the market of outputs. The ability of customers to put the
firm under pressure and it also affects the customer's sensitivity to price changes.
There are various types of investors who trade through stock broking houses like
MOSL, which includes investors like small investors, medium net worth
investors, business partners, institutional investors and mutual fund companies.
Here the bargaining power of stock broking houses depends on how big the
investor is. So here MOSL can say that bargaining power of stock broking houses
is high in case of small investors.
While the bargaining power is moderate in case of HNI (High New Worth
Investors)/ MNI‟s (Medium Net Worth Investors) and business partners.
But the in case of mutual fund companies and institutional investors bargaining
power is less.
There is competitive buzz in stock broking industry; competitors are offering low
brokerage and best services with added feature and switching cost is pretty much
less. So the bargaining power is more inclined towards the investors and they can
easily switch over to competitors product.
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The Intensity of Competitive Rivalry:
For most industries, this is the major determinant of the competitiveness of the
industry. Sometimes rivals compete aggressively and sometimes rivals compete in
non-price dimensions such as innovation, marketing, etc
The company is facing the competition from local as well as national level players.
The local players provide facility for off-line trading while the national players like
ICICIdirect.com and Kotakstreet.com, HDFC Security provide online trading
services.
There are also other big names like Indiabulls, Angel broking, Sharekhan, Marwadi
etc. encircles the company form both the sides by providing online and off-line
trading with competitive services.
As in broking and typically financial industry product innovation is not the major
determinant of competition as product can be easily imitate by other players the price
factor plays a major role in this industry.
Threat from Potential Entrants:
Profitable markets that yield high returns will attract new firms. This results in many
new entrants, which will effectively decrease profitability. Unless the entry of new
firms can be blocked by incumbents, the profit rate will fall towards a competitive
level (perfect competition).
Nationalized banks are also thinking to enter in this field by tying up with broking
houses. E.g. Bank Of Baroda.
The entry barriers to this industry are huge capital, Technological awareness,
regulatory constraints, Experience curve required, Network connectivity and Expected
Retaliation.
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Threat from Substitutes:
The existence of close substitute products increases the propensity of customers to
switch to alternatives in response to price increases (high elasticity of demand).
The instruments like Bank FD, post office etc. are major competitors for this
broking house and their products.
The companies and banks which are having these instruments can plunge into this
industry.
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CHAPTER 3
CONCLUSION
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CONCLUSIONS
Even though MOSL has less number of franchisees in Ahmedabad, it is considered a well-
reputed broking firm in the market. It has established itself as one of the leading brokerage
firm of India.
Motilal has the opportunity to focus on the products which are less popular products
like Private equity. Investment Banking too is lacking behind, this provides MOSL
potentials for acquiring more and more business.
When asked about support services 40% of respondents wants centralized advisory &
research reports support, 20% of respondents need easy access to centralize customer
service and 266% office look & feel, as primary requirements.
Equity with 26% & IPO 16% with & Commodity with 15% are the major trading
offering & contribute highly to gross brokerage
MOSL has to focus on the prospects from view point of services they are been
rendered by their present broker. This strategy will increase the market potential for
their business expansion.
MOSL has to focus on the prospects who are not satisfied with the services like
Business Development Software, Online mutual fund Platform, Different trading
software, MF research desk, Account opening within 24 hours etc.
MOSL has all the varied departments it will be easy for them to focus on the
competitors sub broker, prospects for business expansion.
MOSL to know the requirement and support required by the sub-brokers for their
business development, which in other hand will be very helpful for future
correspondence with their prospects.
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CHAPTER 5
REFERENCE
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BIBLIOGRAPHY
BOOKS:
D.R.COOPER and P.S Schindler, (2006). “Business Research Methods”, Tata
McGraw-Hill, New Delhi.
Kothari C.R, Research Methodology (2001) “Tata McGraw-Hill, New Delhi.
Ken Black, “Business Statistics”(2004) 4th
Edition, John Wiley & sons (Asia) Pte.
Ltd.
Newspapers:-
The Economic Times
Mint
The Business Standard
Websites:-
http://www.motilal.com/knowledge_center
http://www.nseindia
http://www.monycontrol.com
www.angelbroking.com
www.icicidirect.com
www.kotaksecurities.com
www.religaresecurities.com
www.shahinvestments.com
www.wikipedia.com
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CHAPTER 6
ANNEXURE
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ANNEXURE
AN STYDY OF SATISFACTION LEVEL OF EQUITY SUB-BROKER
QUESTIONNAIRE
Disclaimer :-
I am an MBA student and as a part of our curriculum, we are here to analysis of sub-brokers and
financial products & services provided to sub-brokers by main brokers in Ahmedabad. We ensure
you that the data given by you would be totally confidential and will be used for project purpose
only. So kindly help us by giving your valuable time for filling this questionnaire.
Q-1 From how many years you are into the broking business ?specify ___________
< 5 years [ ], 6-10 years [ ], 11-15 years [ ], > 15 years [ ]
Q-2 Which are the products and services are provided to you by your broker/company ?
□ Equity [ ] □ Currency [ ]
□ Commodity [ ] □ Mutual fund [ ]
□ Insurance [ ] □ Margin funding [ ]
□ IPO [ ] □ Any other [ ]
□ PMS [ ]
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Q-3 Which of the following services/facilities are provided to you by your
broker/company?
[Please point out relevant options]
□ Different account opening scheme [ ] □ CDSL-rights [ ]
□ Depository services [ ] □ Investment banking [ ]
□ Different online trading software [ ] □ Branding materials [ ]
□ Investment advices [ ] □ online mutual fund platform [ ]
□ Risk management desk [ ] □ Customer service desk [ ]
□ Account opening within 24 hours [ ] □ HNI desk [ ]
□ Mutual fund research desk [ ]
□ Business Development software [ ]
□SMS configuration to franchisee’s clients[ ]
Q-4 which are your main sources for getting new clients ?
Reference [ ]
Advertisement [ ]
Sales team [ ]
Others [ ]
Q-5 what are the percentage of clients dealing in the followings…?
Cash ________, F/O _________, Commodity ________________
Q-6 what do you think are the qualities that attributed for you to be a successful sub - broker?
o The brand value of the company you are associated with. [ ]
o Higher ratio of successful trading calls generated. [ ]
o A culture of properly researched Ideas coupled with good infrastructure
& client servicing. [ ]
o All the above [ ]
o Other please specify... [ ]
__________________________________________________________
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Q-7 What are the factors according to you for having a satisfied client?
o Prompt & timely addressing of client queries [ ]
o Best technology in place [ ]
o Thinking ahead of time [ ]
o 1st and 2nd one [ ]
o 2nd and 3rd [ ]
o 1st and 3rd [ ]
o All the above [ ]
o Any others…. [ ]
___________________________________________________________
Q-8 What are the immediate challenges for this industry & your plan to tackle this?
o Lack of interest in the stock markets in the retail category [ ]
o Source for fresh capital drying up from both domestic & foreign
Investors [ ]
o Cut costs & wait for good times to come [ ]
o All of the above [ ]
o Any other , ___________________________________________[ ]
Q-9 Please rate the importance of following development criteria for your
business. (Circle the one that is most suitable to your preference. Consider 5 as
most preferred and 1 as the least preferred)
Client Acquisition 1 2 3 4 5
Client base 1 2 3 4 5
Active Ratio 1 2 3 4 5
Client satisfaction 1 2 3 4 5
Revenue Growth 1 2 3 4 5
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Q-10 Please rank the following business development support as per their importance
in your business. (Rank from 1 as most imp. to 8 as least imp.)
Q-11 What kind of support you require which will lead to next level.
(Please give rating from 1 to 4; first priority will be ranked 1 and so on)
o Marketing and business development support [ ]
o Brand value of broker [ ]
o Successful calls given by broker [ ]
o Back office/customer care support [ ]
Q-12 Please rate the importance of following criteria while selecting a broker for
Franchisee…
(Circle the one that is most suitable to your preference. Consider 5 as most preferred
and 1 as the least preferred)
Growth Opportunities 1 2 3 4 5
Revenue Sharing ratio 1 2 3 4 5
Brand Name 1 2 3 4 5
Business Model 1 2 3 4 5
Research Analysis 1 2 3 4 5
Products & services 1 2 3 4 5
Initial Deposit 1 2 3 4 5
Business Development Support Rank Business Development Support Rank
Centralized Advisory & Research Support Centralized customer services
Local area Marketing & Business Support Office look & feel
Initial Training & Business migration Seminar & Investor Meet
Easy access to senior management B-Plan Preparation& other support
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Q-13 What kind of research analysis is provided by your broker?
□ Daily □ Weekly □ Monthly □ Quarterly □ Annually
In which form is it provided?
□ Physical □ Email □ Uploaded on Website
Q-14 Have ever change your sub-brokership in the past ?
Yes [ ], _____________________________________
No [ ],
Q-15 What is your initial investment for starting your business?
Less than 100,000 [ ]
100,000 to 300,000 [ ]
300,000 to 500,000 [ ]
More than 500,000 [ ]
Q-16 Please rate your satisfaction level with the services provided by your present
broker…
High 1 2 3 4 5 Low
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Name :- ____________________________________________________________
Address :- __________________________________________________________
___________________________________________________________________
___________________________________________________________________
Contact no :-________________________________________________________
E-mail Id :- _________________________________________________________
Company name :-_________________________________________________
Personal Details