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SVKM’s Narsee Monjee Institute of Management Studies
Mukesh Patel School of Technology Management and
Engineering
EXECUTIVE SUMMARY
ON
RISK ASSESSMENT IN INSTITUTIONAL
TRADING AND BLOCKS: INTELLIGENCE AND
ANALYTICS
By
Chinmayy Purohit
Roll Number: C-028
SAP Number
71210120029
Faculty Mentor
Prof. Vanishree Mundewadi
Industry Mentor
Mr. Abhijit Tare

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ABSTRACT
I was part of the Institutional Equities department which deals with Institutional Investors. The
transaction done here are of huge amount and quantities and thus trading in them is called Block (Total
number of shares of about 10000 or value of 5 Crore plus) or Bulk trades (0.5% of total number of shares
of the stock). A big requirement for execution of Block/Bulk trade is that they require a counter- party for
the trade to get executed.
As mentioned above, to find the counter party the traders had to rely on various platforms like
Bloomberg, Reuters and Internal Data. This was time consuming and a slow process. Thus the first
project was to combine Business Intelligence and Analytics and provide a solution which reduces the
time and effort. The objective was to narrow down the counterparty prospects to 10-15 clients so that the
trader may contact them first and this increases the hit ratio and optimizes the process. For deriving
intelligence I referred to various reports like EOD Report, Shareholder List, Insider Trade report, AMC
Report and Internal Report. Some were available on BSE site while some were taken from Bloomberg
Terminal. Next some algorithms were developed like Big Buyer/Seller, Fresh Buyer/Seller, Persistent
Buyer/Seller and Likely Buyer/Seller and these algorithms served as the basis on which analysis was
done and correspondingly results were obtained. This way the system was created and hit ratio improved
significantly.
The second project was to focus on risk assessment in Institutional Trading. The scope of the project was
limited to IT risks. The idea was to work with traders and IT team. Our objective was to understand from
the traders that what hurdles they were facing. After categorising the on the basis of severity we conveyed
them to the IT team. The entire project was divided into three phases: Phase I was to sit with traders and
understand the potential risks or hurdles, Phase II was to categorize these risks and Phase III was to
convey it to IT Team and get the solution implemented.
Apart from the two projects I was also involved in AGIC (Annual General Investor Conference). My job
was to ensure that the AGIC APP Development was in schedule which included suggesting changes and
getting it implemented. Apart from the APP I was also involved into handling Customer Relationship
Management (CRM) Software which included to interact with clients and take their requirements for
meetings and convey it to scheduling team. CRM handling was predominantly client interaction and was
responsible for getting their requirement fulfilled.

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INTRODUCTION:
About Motilal Oswal Financial Services
Motilal Oswal Financial Services Limited (MOFSL) is an India-based Non-banking Financial Company.
The Company is engaged in lending and related activities. The Company offers a range of products and
services, such as Broking and Distribution, Institutional Equities, Wealth Management, Investment
Banking, Private Equity and Asset Management. The Company’s broking business comprises of two
units: Retail Broking and Distribution, and Institutional Equities. The Services offered under the Retail
Broking and Distribution business include equities, derivatives, commodities, currency, depository
services, and distribution of portfolio management services, mutual funds, primary equity offerings and
insurance products. They offer Institutional Broking services in cash and derivatives segment to a large
institutional clientele in India and abroad.
About Institutional Equities
In Institutional Equities (IE), Institutional Broking services in the Cash and Derivatives segments are
provided. Here the clients include the who’s who among Domestic Institutional Investors (mutual funds,
banks, financial institutions, insurance companies) and Foreign Institutional Investors (FIIs).It also comprises
of a Corporate Broking desk that caters to the specialized broking needs of ultra-high net worth clients.
WORK PROFILE OF INSTITUTIONAL EQUITIES DEPARTMENT
Broad categorisation on the basis of functionality
Institutional
Trading
Institutional
Sales
Institutional
Research

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ABOUT THE PROJECT
1. Blocks: Intelligence and Analytics (Project Insight)
The project named “Insight” is a trading analytics project which involves using market data to bring out
intelligence in predicting block and bulk deals that happen in Institutional equities. The system is be
capable of predicting the likely buyers and sellers which could be part of the deal. This involves analysis
of various End of Day reports, fund flows, shareholding patterns of companies, research reports and
domestic Asset management Company Reports. After analysis of these reports, intelligent data is thrown
which helps in predicting potential bulk/block deals that could happen and likely buyers and sellers.
Logics and validations are written for the historical data, trends are found out in order to make future
predictions for likely block and bulk deals.
The four logics created are:
 Fresh Buyer/Seller
 Big Buyer/Seller
 Persistent Buyer/Seller
 Likely Buyer/Seller
My job was to understand the entire process as to how the block trading was done, use various reports as
a database and sit with traders and work on creating algorithm for finding the counterparty. First few
weeks of my Internship were spent in understanding the process of Block Trade. For this I used to sit with
Traders, observe the process as to how they used to find a counterparty. Three main sources which were
used to find counterparty were: Bloomberg. Internal Files of Company and their own Intuition. After
extensive observation and discussion I summarized that above mentioned four logics could be used to
find counter party for Block Trade. These logics were the algorithms which were used to analyze the data
of reports (Business Intelligence) which focused on reports like how much a fund has traded, which stock
they have been bearish or bullish on and sectors interested. This helped to find a counter party more
efficiently. Overall the task of finding a needle in haystack was reduced to finding that needle among 10-
15 options. These logics were approved by Head of Trading and after that the project was commissioned.
By July End the software was created and a Beta version was released. For this a campaign was
conducted by me and my colleagues. Sessions with traders were conducted and they were acquitted with
necessary information to use the software. By the end of the Internship some traders had started using this
software while others used to verify the data output after the trading hours to increase their confidence in
the system. Overall the hit ratio increased by 14% which was a huge achievement for us.

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2. Risk Assessment in Institutional Trading (Project Ting)
Project ting was initiated with the motive that all the process in IE trading floor which cause barrier for
servicing customer should be identified and rectified which will lead to smooth functioning of the system
and ultimately lead to customer satisfaction, so with this thought in mind all the things that are barrier for
smooth functioning of the system should be eliminated.
So for the achieving the above stated objective the project is carried out in 3 phases
1. Identifying the problems.
2. Detail Study about how to overcoming the problems.
3. Implementing the problems.
The above project also helps in assessing any risk persisting in trading technologies which can be
overcome by implementing solutions proposed by the traders.
Initially I used to observe what the traders used to do with their system and figure out how much was
automated and how much tasks were manual. After this various meetings with traders were held to
understand what problems they faced with their systems and what improvements they preferred to be
done. This was the first phase of Project. In the second phase, Categorization was done of the various
problems and suggestions into severity of importance (Low, Medium, High, and Critical). Various
suggestions of the traders were bucketed under different heads for effective categorization.
In the third phase, a meeting was done with Head of Trading and Head of IT Department and discussion
was done as to which requirements were important and which were not. After considering various factors
like cost, time in hand and feasibility the objectives were set and the approved changes were done by the
IT Team which resulted in reduced risk and improved systems.

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Additional Projects
1. Annual General Investor Conference (AGIC APP)
There are two apps for Annual Global Investor Conference (AGIC’16).
First one is RM View App which is only for Sales RM’s of Institutional Equities Department of Motilal
Oswal Financial Services Ltd who directly contact with the clients of different funds used during AGIC.
Second one is Motilal Oswal Conference app for AGIC’16 used by all the clients who will be attending
the conference using their own passcodes.
My job was redesigning the whole app by communicating with the IT team, getting them know about our
new design would be which we had made since they will be then coding it and embedding in the app.
Then I had to provide various images to the IT Team such as banners for the app, small AGIC logos which
I got created from the Marketing team. Primary challenge was to coordinate with multiple departments
and move ahead with all of them.
2. Customer Relationship Management (CRM)
Customer Relationship Web Application is an application which is used to maintain the registrations and
contact information of the clients and corporates.
Every year Motilal Oswal Securities Ltd. hosts Annual Global Investor Conference (AGIC). This
conference is attended by many clients and corporates all over the globe. Hence they have a software
application which provides the following functionality:
 Maintain client, corporate and company contact details.
 Can be used to send conference invitation to multiple contacts at one go.
 Can be used to manage various conference events.
I was responsible for interacting with clients, taking their meeting requests, updating the CRM and
conveying it to scheduling team. Interactions used to be on mail while additions were done on CRM.
This played a very crucial role in successful scheduling as the requirements of the clients were taken
care off. Over 3000 meetings were scheduled in a span of 3 days while the total meeting requests were
about 9500.