Project with Edelweiss Broking


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Project with Edelweiss Broking

  1. 1. REPORT ON SUMMER INTERNSHIP PROJECT WITH EDELWEISS BROKING LIMITEDPrepared by:Sudeep Mitra (UnitedWorld School of Business)Roll No. 040101021 1. 1|P a g e
  2. 2. ACKNOWLEDGEMENTAn endeavor over a period can be successful only with the advice and support of Ill wishers. I take thisopportunity to express my gratitude and appreciation to all those who encouraged me to complete thisproject.I am deeply indebted to Prof: H.P Goel (Faculty of finance) for my successful completion of the projectand provided with me with valuable guidance in every step of my internship. His knowledge of this fieldproved to be very beneficial to me during my internship.I express my profound and sincere thanks to Mr.Ashish Kumar Pandey (Team Leader) who acted as amariner’s compass and steered me throughout my project voyage through his excellent guidance andconstant inspiration. He gave me lots of encouragement and motivation to help me delivery to the bestof my abilities.I shall be failing in my duty if I don’t acknowledge my debt to Mr.Chandan Kumar (Sales Manager)Edelweiss Broking Ltd for his valuable guidance and support, which helped me in giving a shape to mystudy. His clear understanding of every aspect of the stock market proved to be very beneficial for me.His experience in this field proved to be very helpful to me during my internship and his knowledge wasalso very beneficial to me whenever I faced and sort of problem.I would also like to thank Mr. Amjad Khan, Regional Head, Edelweiss Broking Ltd, for giving me anopportunity to work in the organization and help in fulfilling the objectives of the project and all thevaluable lessons that I have learnt on the way.Last but not the least I would like to thank my colleagues in Edelweiss Broking Ltd, who have alsocontributed in the project by giving me valuable feedback from time to time. 1. 2|P a g e
  3. 3. Table of Content 1. Executive Summary 2. About Edelweiss Broking Limited 2.1 Profile 2.2 Overview 2.3 Approach 2.4 Senior Management Team 2.5 Financial Performance 3. Product and Services 3.1 Investment Banking 3.2 Institutional Equities 3.3 Asset Management 3.4 Wealth Management 3.5 Private Client Brokerage 3.6 Financing 4. History of Indian Stock markets 5. Current scenario in Indian Stock markets 6. Competition for Edelweiss 7. Comparison table of brokerage plans 8. Advantages of Edelweiss over its competitors 9. My scope of work during SIP 10. Challenges faced during SIP 11. Recommendations and Suggestions 12. My learning from SIP 13. Conclusion 1. 3|P a g e
  4. 4. 1. Executive SummaryEdelweiss is one of the leading names in the field of financial services with relation to stock marketsand related financial services. Edelweiss has a variety of financial products to cater to the need ofthe customers. Edelweiss is a research driven company which prides on the research that it providesto its client for safe investment in the stock markets. Before entering into retail Edelweiss used toprovide research to different companies working in this field. Edelweiss is relatively new in themarket as compared its competitors but is rapidly making progress and catching up with them. Themain area that Edelweiss gets most of its revenue is through its advisory services in the area ofMerger and Accusation.India is one of the fastest growing economies in the world and there is lots of potential to grown inthe market. The Indian market is largely untapped as only a small section of the population investsin the stock market. There is very little awareness of the stock market among the population. Peoplehave a negative perception about the stock market and the stigma attached to it.My main aim during the internship was to convince people to invest in the stock market and answerall there queries and take them into confidence. My job was to generate business by openingdemats account for the company and generating leads for them.I did a variety of activity to generate business for the company through tele calling, market visits,setting up canopy, corporate activity. During this various activities my job was to interact withpeople provide them with knowledge about investment opportunities in the stock market whichwould earn them handsome returns.I faced a number of difficulties during my internship period but was able to overcome them throughmy knowledge and guidance of my seniors. I also learned a great deal about how to sell a productand convince people to buy it by solving all there queries. I also learned a great deal about the stockmarket and how it works. I also learned a great deal about the stock market and its various aspects,they way it functions and how to make investments. 1. 4|P a g e
  5. 5. 2. About Edelweiss Broking Limited2.1 ProfileEDELWEISS started its journey in Mumbai in the year 1995, by two IIM graduates, Mr. Rashesh Shah andMr. Venkat Ramaswami. Edelweiss was incorporated on November 21, 1995 as a public limited companyand received its certificate for commencement of business on January 16, 1996. It commencedinvestment banking activities & registered with SEBI as a Category I Merchant Banker [as defined underthe Securities and Exchange Board of India [Merchant Bankers] Rules, 1992s] and thereafter as aPortfolio Manager [as defined under the Securities & Exchange Board of India [Portfolio Managers]Rules, 1993s] & as an underwriter under the Securities & Exchange Board of India [Underwritings]Regulations, 1993. Entered the business of securities broking in the year 2002 by acquiring RooshnilSecurities Private Limited which was later changed to Edelweiss Securities Private Limited & is presentlyknown as Edelweiss Securities Limited. The year 2004 witnessed the foray of Comp. into the businessesof insurance advisory as well as commodities broking and trading. The business of insurance advisory iscarried through the subsidiary, Edelweiss Insurance Brokers Limited. The subsidiary, ECAL AdvisorsLimited carries on the business of commodities broking & trading. The Comp. also has its presence innon banking financial activities through its subsidiaries, Crossborder Investments Private Limited[acquired in the year 2000s] and ECL Finance Limited [incorporated in the year 2005s] which is NBFCs.Edelweiss Real Estate Advisors Private Limited, which was previously our subsidiary and our subsidiaryEdelweiss Trustee Services Private Limited, were incorporated in the year 2006, for launching thecompany first real estate fund which was registered with the SEBI as a Venture Capital Fund [as definedunder the SEBI [Venture Capital Funds’] Regulations, 1996s] 1. 5|P a g e
  6. 6. 2.2 OverviewThe company practice this core thought of “Create Ideas, Create Values” that has led to Edelweissbecoming one of the leading financial services company in India. Its current businesses includeinvestment banking, securities broking, and investment management. It provides a wide range ofservices to corporations, institutional investors and high net-worth individuals. The core inspiringthought of ‘ideas creating wealth and values are protecting it’ is translated into an approach that is ledby entrepreneurship and creativity and protected by intellectual rigor, research and analysis. Thecompany is leading provider of financial services products and solutions to many HNI around thecountry.2.3 Approach  Client Focus Edelweiss is driven by the emphasis I place on building long-term relationships with our clients. We work closely with our clients to equip them with the ability to address large, fast- growing market opportunities.  Execution Orientation focuses obsessively on delivering high quality execution through our experienced team of professionals. Each team is led by senior personnel and is highly research and ideas driven. It places strong emphasis on confidentiality and integrity in a sensitive business environment.  Culture Edelweiss fosters a culture that is entrepreneurial and results-driven and that emphasizes teamwork and intellectual rigor. Our team is encouraged to display higher levels of initiative, drive, and hunger for learning and taking on additional responsibility.  Professional Integrity it place a strong emphasis on confidentiality, honesty and integrity in our business dealings. We expect our people to maintain high ethical standards, both in their professional and personal lives. We strive to be fair in all our dealings. I respect our competitors.  Research Driven All our businesses are built on a research and analytics foundation. Our understanding of underlying market trends and strong analytical expertise has resulted in a demonstrated ability to identify emerging trends and themes early. We seek to provide the highest quality research and investment opinions to our clients. 1. 6|P a g e
  7. 7. 2.4 Senior Management Team Rashesh Shah Venkat Ramaswamy Chairman & CEO Executive Director Deepak Mittal Himanshu Kaji CEO, Edelweiss Tokio Life Insurance President & Group COO Company Limited Naresh Kothari Rujan Panjwani President & Head, Equities Capital Market President & Head, Treasury Vikas Khemani Ravi Bubna President & Head, Institutional Equities President & Head, Wholesale Financing2.5 Financial Performance at a glance 1. 7|P a g e
  8. 8. 3. Product and Services3.1 Investment Banking3.1.1 OverviewOur Investment Banking business is dedicated to providing corporations, entrepreneurs and investors,the highest quality independent financial advice and transaction execution. Our professionals offer a fullrange of services and transaction expertise, including private placements of equity, capital raisingservices in public markets, mezzanine and convertible debt, mergers and acquisition and restructuringadvisory services. We have a track record of successfully closing more than 100 transactions to date.3.1.2 Offerings  Private Equity Advisory - We have been a leading Private Equity advisor for over a decade and have developed a strong expertise across industries which enable us to recognize emerging industry themes and position transactions within the context.  Structured Finance Advisory - Over the years, we have built up significant expertise in structuring appropriate financing solutions for client specific situations and identifying and placing the transaction with institutional investors. Our portfolio of solutions comprises the following Promoters Funding and Acquisition Financing.  Mergers and Acquisitions Advisory - Edelweiss’ M&A team provides insights into how companies can grow and enhance their value. The M&A team are engaged in turnkey transaction management and advise a diverse range of clients in medium to large transactions. Our key strengths include independent advice, deep sector knowledge backed by professionals with a range of training and experience that spans across multiple cross-border deals and our relationships with large corporate.  Real Estate Advisory - Our advisory solutions are primarily focused on capital rising and cover the optimal financing mix, project valuation, investment structuring and accomplishing capital raising at either the enterprise level or the asset level. We manage Real Estate IPOs, QIPs, advise enterprise level private equity financings, and enterprise level mezzanine financing and structured debt. We have completed over $ 700 million in capital rising in the last 18 months across multiple formats. 1. 8|P a g e
  9. 9.  Equity Capital Markets - We are in the vanguard of equity capital markets having brought to the market a large number of successful and path breaking transactions. We advise leading Indian companies, banks, institutions and businesses which are seeking to mobilize capital from investors in India and overseas. Within the practice, we provide opportunities for clients to raise funds through the following – Initial Public Offering (IPOs) Follow-on Public Offerings(POs) Qualified Institutional Placements(QIP) Rights Issues Preferential Allotments Foreign Currency Convertible Bonds(FCCBs) Global Depository Receipts(GDRs)  Infrastructure Advisory - A critical ingredient for sustainable development in India is the pressing need for Infrastructure creation on a commercially viable basis. This signifies immense opportunities and challenges for the sector. Recognizing this, Edelweiss’ new Infrastructure practice has been formed to provide innovative solutions tailored to the unique financing and advisory requirements of Indian infrastructure projects and developers. Our team has a dedicated focus on the infrastructure sector, with considerable experience, a deep understanding and a vast network of key relationships. We provide Infrastructure project companies and developers the full range of capital and advisory services.  Debt Restructuring Advisory - At Edelweiss we have a very competent team offering comprehensive debt restructuring solutions, both under the formal Corporate Debt Restructuring (CDR) mechanism as well as negotiations with lender/consortium of lenders. Our team of senior ex-bankers and restructuring specialists have unparalleled experience of restructuring debts worth over Rs. 75,000 crores, and an ability to provide complete solutions and support to the Corporate.3.2 Institutional EquitiesEdelweiss Capital’s Institutional Equities Business (IE) has become one of the top five domesticbrokerage houses and top three derivatives desks. It is the only brokerage on the Street with a quantdesk that provides a wide product range, servicing all investor categories. The innovative mindset,unparalleled research, agile sales teams, and intensive execution systems have enabled us to relentlesslyservice our clients in different ways. It caters to a wide clientele comprising leading domestic andinternational institutional investors, including Pension Funds, Hedge Funds, Mutual Funds, insurancecompanies, and banks. 1. 9|P a g e
  10. 10. 3.3 Asset Management3.3.1 OverviewEdelweiss Asset Management offers a range of investment products and advisory services across the riskreturn spectrum to individual and institutional investors. Our close focus on client requirements is ourinspiration in designing products which offer the best opportunity for asset growth with a constant focuson risk and preservation of capital.3.3.2 Offerings  Portfolio Management - Edelweiss offers the discerning investor an opportunity to access its asset management expertise through its portfolio management service (PMS). The basic objective of this product is to provide unbiased investment management strategy based on rigorous fundamental analysis while taking cognizance of market conditions and movements.  Mutual Funds - Edelweiss Asset Management Limited follows a research based and process oriented investment approach. Edelweiss Asset Management Limited is committed to observe the highest ethical standards while deploying investors’ monies, servicing investors and dealing with business partners.3.4 Wealth Management3.4.1 OverviewIt is a specialized profession where our experts combine their efforts to meet the wealth planning,investment, and financial management needs of individuals, families, family offices, or corporate.Edelweiss Wealth Management takes one step closer to you, by providing an "all-in-one approach”.Advice on asset allocation and thereby creating customized financial solutions for HNWIs, NRIs, Trustsand Corporate. We offer advisory services on Structured Products, Portfolio Management, MutualFunds, Insurance, Derivative Strategies, Direct Equity, IPOs, Real Estate Funds and Art Funds. 1. 10 | P a g e
  11. 11. 3.5 Private Client Brokerage3.5.1 OverviewThe Private Client Services Group at Edelweiss is focused on providing products, strategies and servicesto High Networth Individuals and Corporate Clients. We have geographic reach through our Branches,Channel Partners & Investment Consultants in over 19 locations in India. The PCG team has highlytrained equity professionals, who act as your Equity Advisor. Our ESL Equity Advisor proactively helpsyou take informed investment decisions and build a healthy portfolio. We draw on our strong presenceand industry leadership to develop a portfolio of offerings designed to serve the spectrum of financialneeds. Our main objective is to provide clients with all the tools and services they need to reduce theadministrative burdens of managing money and focus on what you do best - maximizing your tradingperformance, building your business, and attracting new sources of capital.3.5.2 Offerings  Cash Equity - Providing research based advice on select stocks from across sectors to meet client’s investment requirement ranging from positional trading to long term investment goals. For our clients I provide ongoing portfolio consultation with a dedicated relationship manager as one point contact for all day-to-day execution of trades and other service requirements such as advisory on investments.  Derivatives - Edelweiss being a pioneer in Quantitative & Alternative Research, I leverage this strength for our derivatives strategies focused towards short-term / medium investments of clients in PCG. Derivative Strategy group, through its dedicated research team provides seamless execution for its clients with trading view. The stock ideas generated are enhanced by combination of technical view and derivative strategy along with the statistical data. Based on the Quantitative Research products such as Pair Trades & Alpha Trades are also initiated whenever I identify the opportunity.  Financing - I offer various products and services to individuals and corporates with a close focus on client requirements while designing our products. Over a period of time I have been offering short term loans against securities and/or to buy new securities. I also provide finance for investment in primary market issues. I help promoters by financing against their share holding to meet their business requirements, expansion of businesses and diversification of the lines of 1. 11 | P a g e
  12. 12. business. I possess expertise in financing short and long term loan facility, risk analysis, transfer and assessment besides a broad spectrum of services.3.6 Financing3.6.1 OverviewEdelweiss Housing Finance Limited (EHFL) is a Housing Finance Company incorporated under the aegis ofthe National Housing Bank (NHB). It is part of the Edelweiss Group of Companies. EHFL has an array ofloan solutions which can be tailored to your requirements. If you’re looking for a Home Loan, do applyto EHFL for the highest loan amount in the shortest time.3.6.2 Offerings  Home Loans  Loan against property  25 year loan - The Newly launched 25 year Home loans help you purchase a property and repay in lower / easily manageable installments  Refinancing - If you have already purchased a property and used your own funds or borrowed from friends or relatives for the same, I could re-finance the same.  Balance transfer & top up - If you already have a Home loan or a Loan against Property running with any Bank or other financier, you could move the same to EHFL a better rate of interest and a longer tenor, giving you the advantage of a lower EMI. You can also avail of an additional ("Top-Up") loan against same property. 1. 12 | P a g e
  13. 13. 4. History of Indian Stock MarketThe Bombay Stock Exchange is the oldest exchange in Asia. It traces its history to the 1850s, when 4Gujarati and 1 Parsi stockbroker would gather under banyan trees in front of Mumbais Town Hall. Thelocation of these meetings changed many times, as the number of brokers constantly increased. Thegroup eventually moved to Dalal Street in 1874 and in 1875 became an official organization known asThe Native Share & Stock Brokers Association. In 1956, the BSE became the first stock exchange to berecognized by the Indian Government under the Securities Contracts Regulation Act. The Bombay StockExchange developed the BSE SENSEX in 1986, giving the BSE a means to measure overall performance ofthe exchange. In 2000 the BSE used this index to open its derivatives market, trading SENSEX futurescontracts. The development of SENSEX options along with equity derivatives followed in 2001 and 2002,expanding the BSEs trading platform. Historically an open outcry floor trading exchange, the BombayStock Exchange switched to an electronic trading system in 1995.The two popular exchanges were majority of stocks are traded are:-  Bombay Stock Exchange (BSE)  National Stock Exchange (NSE)The Bombay Stock Exchange also referred to as BSE 30 is a free-float market capitalization-Iighted indexof 30 Ill-established and financially sound companies listed on Bombay Stock Exchange. The 30component companies which are some of the largest and most actively traded stocks are representativeof various industrial sectors of the Indian economy. Published since January 1, 1986, the SENSEX isregarded as the pulse of the domestic stock markets in India. The base value of the SENSEX is taken as100 on April 1, 1979, and its base year as 1978-79. 1. 13 | P a g e
  14. 14. The National Stock Exchange (NSE) is Indias leading stock exchange covering various cities and townsacross the country. NSE was set up by leading institutions to provide a modern, fully automated screen-based trading system with national reach. The Exchange has brought about unparalleled transparency,speed & efficiency, safety and market integrity. It has set up facilities that serve as a model for thesecurities industry in terms of systems, practices and procedures. The NSEs key index is the S&P CNXNifty, known as the NSE NIFTY (National Stock Exchange Fifty), an index of 50 major stocks Iighted bymarket capitalization. The products that are traded in the National Stock Exchange are:-  Equity or Share  Futures (both index and stock)  Options (Call and Put)  Wholesale Debt Market  Retail Debt Market 5. Current scenario in Indian Equity/Stock MarketThe Indian Equity Market is more popularly known as the Indian Stock Market. The Indian equity markethas become the third biggest after China and Hong Kong in the Asian region. According to the latestreport by ADB, it has a market capitalization of nearly $600 billion. As of March 2009, the marketcapitalization was around $598.3 billion (Rs 30.13 lakh crore) which is one-tenth of the combinedvaluation of the Asia region. The Indian equity market depends on three factors -  Funding into equity from all over the world  Corporate houses performance  Monsoons5.1 Opportunities in Indian Equity MarketIndian has emerged as one of fastest growing economies in the past decade along with China. India hasthe largest number of people in the young section of the population. The Indian equity market is largelyuntapped with currently less than 5% of the population investing in the stock market. With incomes ofpeople increasing there is huge potential in the Indian market for it to grow further more people areattracted towards the equity market and are moving towards it. Also since the economy is growing at arapid pace more and more FII are attracted towards the Indian markets and are investing heavily into it. 1. 14 | P a g e
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  16. 16. 6. Competition for Edelweiss 1. 16 | P a g e
  17. 17. 7. Comparison table of brokerage plansCompany Name Delivery Charges in % Intraday Charges in %India Infoline 0.10 0.05ICICI Direct 0.25 – 0.75 0.125 – 0.375Angel Broking 0.10 – 0.60 0.05 – 0.30Indiabulls 0.20 – 0.50 0.10 – 0.30SMC 0.15 – 0.60 0.125 – 0.35Religare 0.15 – 0.50 0.05 – 0.20Sharekhan 0.05 – 0.50 0.05 – 0.25Kotak Securities 0.10 – 0.50 0.05 – 0.305 0.10 – 0.55 0.05 – 0.20HDFC Secutities 0.25 – 0.75 0.20 – 0.40Motilal Oswal 0.25 – 0.45 0.05 – 0.30Edelweiss 0.5 - 0.55 0.05 – 0.30 8. Advantages of Edelweiss over its competitors  Actionable research and strategies relevant to your current stock holdings and investment goals.  An easier way to trade with simplified trading pages, brokerage plans based on your trading patterns, live terminal experience and single click execution. The web pages are very easy to navigate and to do transactions.  Intelligent portfolio tracking by creating multiple sub portfolios according to financial goals, track investment across assets and personalized advice based on your financial goals.  24 x 7 access through mobile services and desktop tools stay updated on stocks portfolios strategies.  Secured site to make investments, robust systems to handle traffic.  Xtreme trader the next generation online trading platform with Dow Jones newswires. 1. 17 | P a g e
  18. 18. 9. My scope of work during SIPMy scope of work during internship was to generate business for the company by way of openingdemats account. I was given intensive training during the starting of our internship about the productand the details about it like the different brokerage plans, various value added services provided by thecompany, extensive research done by the company to provide the customers with accurate informationand provide the customers with opportunities to earn handsome returns on their investments.During my internship I was given the task of calling customers and trying to convince, them to opendemat account and investing in the stock market. I also have the task of convince the customers thatinvesting in the stock market is a better option than investing money in FD, Post office schemes etc. Theaverage return from the stock market during the past five years is about 15% p.a. Once I had convincedthe client over the phone then the next task was to ask for a meeting where I would clear any remainingdoubts that the client may have and do the necessary paper work that is required to open an demataccount.Apart from tele calling other ways of generating leads for the company was by way of talking to peoplein the market and getting them to invest in the stock market. Taking to them about ways by which theycould start investment in the stock market.Another way of generating leads way by visiting corporate houses and making presentation to group ofpeople about how to go about investing in the stock market. How they can minimize their risk andmaximize their returns.Another activity that I did was to set up canopy in strategic places like CP, Karol Bagh, Jhandelewanwhere there is lots of activity and often visited by people of different background. Where I could get tospeak with people from different profession and get to know there perspective about stock markets.Our task was to interact with people and provide them with basic knowledge about investmentopportunities in the stock market. Our primary goal was to generate leads for the company and gettingpeople to invest in the stock markets and clear there misconception that investment in the stockmarkets is risky and they would suffer losses. 1. 18 | P a g e
  19. 19. 10. Challenges faced during my SIPThe challenges that I faced during our SIP was from two different sets of people, first sets of peoplewhere those who have very little or no knowledge of the stock markets and how it works, the second setof people where those who are already active in the stock markets and are not ready to switch to adifferent company. I had to tackle these two different sets of people very differently; our approachwould have to very different in these two cases.The main challenge that I faced was to convince new people to invest and get involved in the stockmarket. In India only a very small percentage of the population invest in the stock markets. There is verylittle awareness about investment opportunities that exists. I had to start from the scratch in order forthem to understand how the stock markets works and that there investment are absolutely safe andsecure. People also have the preconceived opinion that investment in the stock markets is a riskybusiness, they are happy to invest in various other sources like banks, property, jewellary etc. They areof the opinion that once you have invested your money in the stock markets it will never come back.Also they are not ready to trust a private company that would manage their investments. They prefer toinvest in public sector banks and other govt. companies. They are not at all comfortable with the idea ofinvestment in the stock markets even if it could earn them better returns. They are comfortable withwhatever they are earnings are not ready to explore new areas.To get people who are already active in the stock markets to switch to a new company was equallychallenging if not more. Here the problem was to convince people to try out our company and how Iwould offer products and services to them than they are already getting form their existing brokingcompany. It would take a lot of persuasion and convincing, many round of meeting where I wouldpresent our products and let them compare with their existing products. Also there would be lots ofnegotiation about the different brokerage plans and brokerage rates. I would have to offer the clientsvery low brokerage rates and multiple benefits to get them to switch. They would demand very lowbrokerage rates and various other facilities some of those would not be possible for us to give.My seniors provided me with guidance and motivation that helped me in my interaction with the clientsand clearing their doubts. They explained to me in detail the various benefits of the product and howthe customer would benefit from it. 1. 19 | P a g e
  20. 20. 11. Recommendations and SuggestionsThe two months that I spend in the company and having closely observed the working I would suggestthe following points that I feel would benefit the company and help them attract more clients towardsit. Following are the recommendations:-  The company only concentrates on getting advance brokerage the different brokerage plan that they have are only about advance brokerage. If somebody is not ready to give advance brokerage than there is nothing that the company could offer them. There is no alternate plan with them so they lose out on customers. Also each plan comes with a predefined turnover volume, which I feel should not be there and the client should be free to trade as much as he/she wants without any precondition.  The margin account that the company has were the client do not have to pay advance brokerage, the brokerage will be charged when the client does an transaction, the brokerage that the company charges is very high compared to other companies. The brokerage part should be looked at by the company.  The brokerage plans that the company has been designed according to the needs of the people who are already investing in the stock markets. There is nothing for the people who are new to the market and want to start with small amount of money initially. The brokerage plans are designed keeping in mind the HNI clients.  The company is also very rigid in its approach; they are not ready to give discounts beyond a certain point even if it means losing a client. The company should be flexible in its approach and brokerage plans in order to get new clients.  I believe that the Xtreme trader platform that is provided to only those people who have taken the advance brokerage plans should be made available to those clients also who have taken the margin account plan. It should be standardized across all plans.  The company should try to concentrate on tier B and C town which are rapidly growing and are the new emerging markets. There is lots of potential in these markets. The company should tray and expands in these markets by of branch offices or franchisees.  The brand awareness of the company among people is very low as compared to its competitors; the company has to take steps to create awareness among the people. This can be done by spending more on advertisements, sponsorship, promotions etc. 1. 20 | P a g e
  21. 21. 12. My Learning from SIPI learned a great deal about the stock market and its functioning during my two months of internship.Earlier I had very little knowledge about the stock market and how it works. I had no knowledge abouthow to invest in the stock market. I was only aware about the existence of the Bombay Stock Exchange, Iwas not even aware of the National Stock Exchange i.e Nifty.During my internship I learned a great deal about the stock market and how to invest in it. I also gainedknowledge about two basic types of trading in stocks i.e delivery and intraday. In delivery you have tohold the stock for more than one day and in intraday you have buy and sell the stocks on the same day. Ialso gained fair knowledge of how brokerage is calculated and the different brokerage plans that thecompany has to cater to the needs of clients. The clients can choose the plans according to hisinvestment pattern and volume. I also gained fair knowledge of various other forms of trading likeFuture and Options (F&O), derivatives, Debt market, Currency, Commodities etc. I also learned abouthow lot size for F&O is calculated and what types of taxes are levied on it.My major learning was constant interaction with different people and trying to sell demat account tothem. I had to put my best foot forward in order to convince people to invest in the market. There wasalso constant pressure from my team leader to generate business for the company. I was given stifftargets by our team leader which I had to achieve. I was made to work under constant pressure which Ibelieve will help me in the future. I got to know firsthand what pressure is all about and how to workunder constant pressure, how to answer all the queries raised by the client.During my internship period I also had the opportunity to test my selling skills and my ability toconvince people. During my internship I got experience about how to talk people and convert them intoclients for the company. I got to test my skills to be patient and my ability to listen what the client wantsand how I would be able to convert the prospect into client. I got to understand as to how portfolio(basket of shares from different sectors of the industry) is created keeping in mind the clientspreferences and his appetite to take risk.I also got fair knowledge about how the company is gearing up to face stiff competition from othersimilar companies and its vision for the future. 1. 21 | P a g e
  22. 22. 13. ConclusionThe two months that I have spent in my internship period would be a golden period of my life in which Ilearned a great deal about the stock market and its functioning. Earlier I had very little knowledge aboutthe stock market but now I can say that I have fair knowledge about the company and the stock market.I got fair knowledge about how to work in a corporate environment and how to absorb pressure.I learned things that are not found in books and those can only be learned when you are out in the field,talking to people. I believe this will help me in the future. The best part was the training sessions thatwere taken by senior persons in the company to let us know about the various products of the companyand how to approach the customers with these products.Overall I would say that the two months of my internship was full of learning and wonderful experiencewill I will always keep in mind through my life. 1. 22 | P a g e