Internship Report

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Summer Internship Report 2014
First Capital Equities Limited (FCEL)
Internee name # Muhammad Arsalan Khan
Reg. No # 04151213035
Supervisor (QASMS)# Ma’am Humera
Supervisor (FCEL) # Mr. FaisalKamal (ManagerFinance & Accounts)

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Acknowledgement
I take this opportunity to express my gratitude and deep regards to my supervisor Miss
Humera Siddiqui for her exemplary guidance, monitoring and constant encouragement
throughout the internship. The blessing, help and guidance given by her, time to time
shall carry me a long way in the journey of corporate life.
I also take this opportunity to express my gratitude to my supervisor at First Capital
Equities Limited and thankful to all my firm’s staff for their valuable guidance in
preparing this report in a presentable fashion.
Lastly, I would like to say thanks to my parents for their constant encouragement
throughout the internship and during the preparation of this report without which this
assignment would not be possible.

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Executive Summary
This report is a thorough essence of my study which I conducted as an internee in a
period of two months in First Capital Equities ltd. Islamabad. It is also the head office
for the north region. I have exclusively studied and observed the organizational structure,
customer service, accounts & management and personnel administration of the company.
The purpose of this internship report is to overview my performance during internship as
well as to evaluate the performance of FCEL and give concrete recommendation for
further improvement. Although the brokerage firms are functioning satisfactory, even
then some drawbacks have been pointed out in the operation of the FCEL.
Two months period is too less to understand the operation of FCEL, but still it was a
great experience for me to have a feel of the practical world and keeping in view the
limitations of the study, this seems reasonable attempt.

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Abbreviations
FCEL………. First Capital Equities Limited
QASMS……. Quaid-I-Azam School of Management Sciences
ISE…………. Islamabad Stock Exchange
KSE………… Karachi Stock Exchange
JS…………… Jahangir Siddiqui group of companies

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Table of Contents
Organizational introduction………………………………… 5
Personal working…………………………………………….. 14
SWOT analysis……………………………………………….. 23
My Experience Vs. My Expectations………………………... 28
How Internship helps in future……………………………… 29
List of Competencies…………………………………………. 30
Conclusion & Recommendations……………………………. 31
References…………………………………………………….. 34

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Chapter # 1
Organizational introduction, departmental description
1.1 History of First Capital Equities Limited (FCEL):
First capital equities limited (FCEL) was incorporated in Pakistan
on January 26, 1995 as a private limited company, under the companies ordinance, 1984.
As the name suggest, FCEL is a brokerage firm and provide its services related to stock
exchange. The founder of FCEL is Mr. Salman Taseer, the late governor of Punjab. At
the time of incorporation, the company is private limited but almost two years of its
incorporation, that is on June 18, 1997, it is converted as a public limited company. It is
listed on Lahore stock exchange (Guarantee) limited. The company is a subsidiary of
First Capital Securities Limited. The whole group is now known as First Capital
Securities Corporation, which includes World Call, Business Plus network and many
other companies.
1.2 Introduction:
First Capital Equities Limited (FCEL) is also known as “The most
prominent brokerage house in Pakistan”. This is due to their vast network of branches
and brokers present all over the country and covering almost all the main cities of
Pakistan. The head office of FCEL is located in Karachi and it covers the entire province
through an extensive network of brokers sitting in interior Sindh. The registered office of

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the company is located in Lahore and it covers the Punjab province with the help of
Sargodha branch and other brokers. The Islamabad office, where I did my internship is
located in office # 221, 2nd floor, Islamabad Stock Exchange Tower, Jinnah Avenue
Islamabad. It handle and leads the entire north region, which comprises of KPK, AJK,
some cities of Punjab and the federal capital.
1.3 OrganizationalStructure & Company Information:
Organizational Structure and company information of FCEL is as follow:
1.3.1 Board of Directors:
1. Mian Ehsan Ul Haq (Chairman & CEO) ---- Executive Member
2. Farooq Bin Habib ------------------------------- Executive Member
3. Ashraf Liaquat Ali Khan ----------------------- Independent Member
4. Muhammad Junaid Godil ---------------------- Executive Member
5. Ahsan Zia ---------------------------------------- Executive Member
6. Mazhar Abbas ----------------------------------- Executive Member
7. Waseem Ul Hassan ----------------------------- Executive Member
1.3.2 Chief Financial Officer:
 Mazhar Abbas
1.3.3 Audit Committee:
I. Ashraf Liaquat Ali Khan (Chairman)
II. Farooq Bin Habib
III. Ahsan Zia

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1.3.4 Human Resource & Remuneration Committee:
1. Ashraf Liaquat Ali Khan (Chairman)
2. Main Ehsan Ul Haq
3. Waseem Ul Hassan
1.3.5 Company Secretary:
 Arshad Ali
1.3.6 Auditors:
 Aslam Malik & Co. Chartered Accountants.
1.3.7 Legal Advisors:
 Tassawur Ali Hashmi Advocates, Karachi.
1.3.8 RegisteredOffice:
 2nd floor, Pace Shopping Mall, Fortress Stadium, Lahore Cantt. Lahore Pakistan.
Tel: (042) 36623005/6/8. Fax: (042) 36623121-36623122
1.3.9 Corporate Office:
 4th floor B, C & D. Lakson Square Building No. 1 Sarwar Saheed Road, Karachi.
Tel: (021) 111 226 226. Fax: (021) 35656710, 35656725
1.3.10 Registrar & Shares Transfer Office:
 Corpline (Pvt.) Limited, Wings Arcade, 1-K, Commercial Model Town, Lahore.
Tel: (042) 35839182

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1.3.11 Bankers:
1. Askari Bank Limited
2. Bank Alfalah Limited
3. Bank Al Habib Limited
4. Faysal Bank Limited
5. Habib Metropolitan Bank Limited
6. JS Bank Limited
7. KASB Limited
8. MCB Limited
9. NIB Limited
10. Silk Bank Limited
11. Soneri Bank Limited
12. Standard Chartered Bank (Pakistan) Limited
13. United Bank Limited
1.4 Our Mission:
To maintain our high profile and continue providing premium quality service to
our clients.
1.4.1 Dedicated to make it happen:
1.4.1.1 Clients:
We will offer every client: Fast & Friendly service, Commitment,
Cleanliness, Dedication, Excellence, & Trust.

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1.4.1.2 Associates:
We will offer every associate: Development, Loyalty, Opportunities, Open-
Door, Teamwork, Training, & Benefits.
1.4.1.3 Image:
We will operate every facility: Professionally, Helpfully, Positive, Bright,
Clean, & Consistent.
1.4.1.4 Community:
We will offer every community: Involvement, Support, Stability, Respect,
Assistance & Environmental Awareness.
1.4.1.5 Standards:
We will operate our business: Ethically, Competitively, Safely, Innovative
with high expectation, & Quality products.
1.5 Our Vision:
To be the number 1 broker for all retail, institutional and international investors
investing in Pakistan’s stock markets.
1.6 Our Strategy:
To constantly assess and monitor our client’s need and provide premium quality
services to meet their needs.

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1.7 Our Corporate Objective:
To develop and provide financial products and services with excellent front and
back office execution to all our clients and quality system automation with best of
information technology.
1.8 Services:
We offer a modern systems and a powerful platform that provides investors with a
comprehensive range of solutions. We operate in an advanced and hi-tech environment
where our experienced executive and efficient systems provide customized solutions and
access to the range of facilities including trading, underwriting and corporate finance.
1.8.1 Equity Brokerage:
Supported by an extensive experience of capital markets, FCEL is one of
the pioneers in Pakistan Equities Brokerage. We offer a modern and powerful equities
trading system that provides investors with a comprehensive range of solutions.
Execution is processed through advanced trading tools including Karachi Automated
Trading System (KATS) and broker net.
1.8.2 Corporate Finance:
Our corporate finance services encompass advising and developing
customized financial, corporate structuring and project evaluation solutions for our
valued clients. Our know-how of the local industry and ability to evaluate global impacts
on domestic parameters is our distinguishing factors.

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1.8.3 Underwriting:
If you want to expand and want to mobilize funds through public
offerings, we are always there to help you. Our underwriting facilities not only limit it to
providing conventional “throw-commitments” but also extend its help in improving your
projects feasibility and private placement of funds.
1.9 Research:
Comprehensive investment research to its institutional investors and individual
clients. FCEL has a strong research team specialized in fundamental research and
provides a complete range of services, understand local and international clients need,
and is aware of the prevalent trend and opportunities.
The research team produces publications and studies on various sectors covered, as well
as on individual companies. FCEL’s research is published regularly and is made available
on Bloomberg, Reuters and Thomson publishers.
1.9.1 FCEL research has various products:
1.9.1.1 Researchreport: Comprehensive sector and stock reports provide
meticulous explanations backing our strategy and investment advice.
1.9.1.2 Morning buzz: On a daily basis, our clients receive coverage of the latest
developments in stock with their detailed analysis, market impact and our
recommendations for an optimum stock portfolio.

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1.9.1.3 Market analysis: On a daily basis, our clients receive coverage of the latest
developments in stock with their detailed analysis, market impact and our
recommendations for an optimum stock portfolio.
1.9.1.4 Flash notes: Follow whenever our analysts feel the need to convey any
significant stock information to our patrons.
1.9.1.5 Call presentations: Our research team is there to promptly service our
clients’ personalized investment queries. All this mean that our clients receives a
constant stream of information from our research facilities.
1.9.1.6 Comp sheet: A summary of valuation matrix sent to specific clients. It
illustrates various multiples on the forecasted values. Our universe represent 80% of
KSE 100 index.
1.10 Departments at FCEL:
There are five departments in FCEL. One in the front office, named as Sales
department. The other four are in back office. These are: Account & Finance department,
Settlement, Operations, and Risk management department. Here, I will explain these
departments in few sentences but explain their working and responsibilities thoroughly in
CH # 2.
1.10.1 Sales department:
This is the department which generate revenue for FCEL. It consist of four
members and all of them are traders. They help investors in buying and selling of

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shares in stock market. It directly comes under the Accounts & Finance department
and the chief of the branch (Mr. Ahsan Zia).
1.10.2 Accounts & Finance department:
It is the most important department and is headed by Mr. Faisal Kamal. This
department have full control over the company accounts and cash related activities.
1.10.3 Operations department:
It opens, control and manages the client accounts. It prepare and send the
monthly reports to all the clients. This department is headed be Mr. Muzammil.
1.10.4 Settlement department:
It deals with the central depository company (CDC) and minimize the risk
of fraud. Moreover, they also try to recover bad debts. This department is headed by
Mr. Inthikhab.
1.10.5 Risk Management department:
The main purpose of this department is to continuously monitor the future
accounts and sale the holdings of clients after the given time or the given limit. Mr.
Shafiq is the head of this department.

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Chapter # 2
Personal working & learning experience
During my internship, I worked in five different departments but in my view, the most
important department is accounts & finance department. The main reason behind this is
that the kind of work I did in this department is more relevant to my studies. Due to this,
it became easy for me to quickly understand it and after that implementing it on my own
as well. My office timings were closely linked with the trading time in KSE (Karachi
Stock Exchange). The environment at FCEL is very friendly and co-operative and helps
positively in learning at workplace. In the following lines, I will explain my personal
experience and learning outcomes as department wise.
2.1 Accounts & Finance Department:
My supervisor at FCEL, Mr. Faisal Kamal is head of this department
and he put a great effort to teach me all the functions theoretically as well as practically.
This is the most important and the busiest department and there is a variety of functions
to perform in daily routine by this department. I will illustrates all the functions which I
perform in this department in the following lines.
2.1.1 Ledgers:
As I mentioned earlier that my firm is a brokerage firm which act as a
mediator between investors and stock exchange. That is, they help in buying and selling
of shares. Due to this, there is a constant need to upgrade the ledgers of every client for
the purpose of recording and documentation of their daily transactions. No doubt, all this

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activity is done by software’s but someone is responsible to operate them. When any
client need cash, I have to check his/her ledger balance and then make payments. I also
have to attach the copy of his/her ledger so that no one can raise a question. Only that
balance is appeared in ledger, which received by selling of collateral sold two working
days ago. For example, if client sold his/her shares on Monday, then the payment is made
possible on Wednesday. We call this as T+2 (trade plus 2 days).
2.1.2 Vouchers:
When any of our client with draw their investment or increase their
investment, I have to up-grade their accounts in software. This software is oracle based. I
up grade this in the software so that our traders also come to know that which client have
how much investment and then they move accordingly. This software requires bank name
& account number, client account at FCEL and at their banks also along with other
details too. Again I draw a print just like ledgers for the purpose of maintaining
documented records.
2.1.3 Cheques:
After ledger and voucher making, finally the stage of preparing the
cheques reaches. This stage of writing the cheques is simple but one important thing is
that FCEL have two authorized signatory. If there is only one authorized signature on
cheque, the cheque become bounced from the bank. So for internal check and balance,
and to minimize the chance of fraud, company uses two authorized signatory. One is the
manager accounts &finance and other one is the chief of the branch.

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2.1.4 Bank Position:
One of my daily routine activity includes the preparation of bank
position. My branch have bank accounts in six different banks. The reason behind these
six different bank accounts is our clients. Our clients have accounts in different banks and
we have to make their payments according to their will. One more reason is that the
cheque of one bank say Askari bank is cleared more quickly in Askari bank. Thus, it help
us to save time. Our main bank is MCB, while our other banks are HBL, Askari Bank,
Summit Bank, Standard Chartered Bank, and Bank Alfalah. Bank position includes the
detail of cash receipts and cash payments completed on the previous day. It also include
the detail of company’s bank accounts. Then we sent it to Karachi head office. If they
need funds, then company online transfer funds to them, and if our branch require funds,
then they transfer it through MCB.
2.1.5 Bank Reconciliation Statements:
At the beginning of every month, there is a need to prepare bank
reconciliation statements. The purpose for preparing the statement is to check whether
there is any outstanding cheque or not. Each of our bank sent their respective bank
statements about our accounts to us. Here in the software, company also have their own
records. I compare both of the statements and then find out the presence of outstanding
cheques. If there is any outstanding cheque, then I make adjustment of this cheque in our
record.

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2.1.6 Receivables & Payables:
Receivables and payables were being upgraded at the end of each
month or at the beginning of each month. The basic theme behind the up gradation of
receivables and payables, other than for record purpose is to check the possible future
cash inflows and outflows. Here, we find out the amount which we have to receive from
the clients and the amount of liability on us. In doing all this, I also find out that this
branch have bad debts worth more than Rs. 110 million. When I ask a question from my
supervisor about these huge amount of bad debts, he replied to me that these were created
during the financial crises of 2007-08. The investors were ran away and didn’t come
back. We were unable to catch them because the laws at that time were very flexible.
2.1.7 Expense Payments:
Every company incurred expenses. Same is the case with FCEL.
Company provide different facilities to its employees like free mobile usage, free fuel,
EOBI (employee old age benefit program) etc. Despite of that there are some other
expenses too. These expenses include internet bills, telephone bills, electricity bills,
security expenses and many more. Company made all the payments through cheques and
I think this is a good step to minimize corruption because amount/money directly goes
into the accounts of other party. If they use cash, there are likely chances of corruption
and due to this the company and its credibility might suffer.
2.1.8 Protocol to our main clients:
Our brokerage house is one among the top five trading firms in
Pakistan. Only our ISE branch have thousands of clients and no other brokerage house in

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Islamabad is standing in front of us. Despite of all these facts, the major part of our profit
comes from the few main clients. These clients are less than 50 but their investment is
much high. Due to this, I as well as other members try their level best to provide special
treatment to them. Company gave them attention and respect, fulfill there all needs and
forget rule of T+2 for them. Company did all this to increase their loyalty and their
commitment and in return receive commissions from them and that commission is our
profit.
2.1.9 Deposit slips:
One of my daily routine work is to fill deposit slips. It’s a simple
process. I only have to put emphasis on minor things in filling these slips like the carbon
copy is placed perfectly beneath the original slip. Place the slip on hard surface and then
write. Make sure that I have enter correct name of clients branch as well as our banks
branch. One more thing is at the end of the slip, don’t forget to write cell phone number
or the contact number of your office.
2.1.10 Statement of financial position:
I practically prepared the balance sheet or the statement of
financial position at FCEL. Here, I find out that there is no objections or limitations on
using any specific format. The company needs work and want it to be done in efficient
manner. One thing, I noted in the statement of financial position of FCEL is that their few
assets like cars are fully depreciated yet they were using them and not willing to replace
their autos.

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2.1.11 Journal Vouchers:
I entered JV (Journal Voucher) entries, when anything gets wrong.
Like when I enter some wrong entry and if we are unable to reverse it, then we go for
JV’s. We only put some of these entries during the internship, this shows the efficiency
of this department and the commitment with work.
2.1.12 Commissions:
In stock market, there are both extremes. Prices of shares are
ranging from Rs. 1.5 to Rs. 15000. Due to this we deduct commission accordingly. We
have slabs for commission deduction. It is less for the low price shares and more for the
bigger shares. We have four traders, who were selling and purchasing the shares of their
clients. We also gave incentive to them other than their pay, if they perform well. That
incentive is that if someone made commission more than 5 times of his pay, he will
receives 10% of that amount as an incentive. We done this to motivate them.
Despite of all that, I also perform some other functions in this department. These
functions are as follows:
2.1.13 Pay orders
2.1.14 Closing of accounts
2.1.15 Notes to the account
2.1.16 Photocopy
2.1.17 Print
2.1.18 Scan

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2.1.19 Envelope printing
2.1.20 Courier
2.1.21 Employee attendance
2.1.22 Explore KSE website
2.1.23 MS Excel
2.2 Risk ManagementDepartment:
As the name suggest, the duty of this department is to
minimize the level of risk associated with the clients. This department is headed by Mr.
Shafiq and I also work under his supervision. The type of risk which I have to deal while
working in this department is related to future trading. It is one dimension of stock
market or in other words a facility provided to the investors. In future trading, if investors
is earning profit, there is no problem. But if investor is facing a loss, then I have to check
and monitor those accounts and take some precautionary measures. Like, if investor is
facing continuous loss and not willing to sell his collateral. Then in order to recover our
company’s amount, company sold his collateral. For example, if person A invest Rs.
100,000/- then he can invest Rs. 300,000/- in future trading, and if he faces loss, it’s our
right to recover our money by selling his collateral. The time limit for future trading is 30
days. More profit is associated with future trading than regular. Similarly, more loss is
also associated. So, we can say that, higher the risk, higher will be the profit. This check
and balance also help firm to stop further creation of bad debts.

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2.3 Settlement Department:
This department is headed by Mr. Inthikhab. Here I learned
the relationship between trading firms and Central Depository Company (CDC). There
are some clients who also have accounts with CDC. The fee for this account is Rs. 1000.
When these clients purchase shares, those shares will go into their respective CDC
accounts. If they want to sell them, first they transfer those shares to their account at
brokerage house and then sell it. This settlement department ensures that no one can sale
more than their holdings. CDC is the branch of ISE. Its purpose is to protect investors
from any fraud. Sometimes, people at the brokerage house sold the shares of clients and
ran away. CDC prevent this. When shares of investors were recorded at CDC, then the
brokerage firms cannot sell them on their own. Hence, it helps in preventing corruption.
So in this department I learned how to transfer shares in CDC and how to call them back.
Other than that, I also paid the fee of CDC accounts of our clients. Moreover, I also
provide necessary information and documents to our clients present in the sales
department and remove their queries.
2.4Operations Department:
Mr. Muhammad Muzammil is the head of this department.
As the name indicates, this department deals with the general operations of the company.
In this department, I learned the process of account opening for investor. I satisfy them
and answer to their questions and try to entertain them in best possible way. Account
opening fee is Rs.25, 000/- and this amount is available for you to do trading. In other

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words, we can say that, there is no fee for account opening. Other than that, individual
investor records were also being maintained by the software throughout the month. In the
beginning of month, I Sent this performance record to every client through courier, no
matter where he/she is living. Company done all this to create a good impression in
investor’s mind. Thus, customer might feel that their company is customer oriented and it
is expected that they market us through word of mouth.
2.5 Sales Department:
There is no head in this department. This department
include four traders. Their duty is just to sell and purchase shares on client’s instructions.
They generate revenue for company in the form of commission. Here, I learn to do
trading practically. Here, I find out the reasons behind the investors decision and which
factors affect their decision making. I have no work in this department. I just have to sit
there and watch the investors sitting there and making decisions.
I learn all these things during my internship including the use of oracle and java soft
wares. These are my learning outcomes. One important thing is that, they give respect to
me and really make effort and uses best ways to teach me. I also respond accordingly. As
a result, in last four weeks, my supervisor gave me his own computer system and I do all
activities on my own which are otherwise only associated with my supervisor. I think that
it’s a great achievement for me to earn their trust and respect.

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Chapter # 3
SWOT Analysis
In 1960’s Albert Humphrey is said to have developed this strategic planning tool using
data from the top companies of USA. The SWOT analysis looks at the strengths,
weaknesses, opportunities and threats that are relevant to an organization in a new
venture. A SWOT analysis is a tool which allow users to look at the direction, an
organization or company may wish to move forward in the future. A SWOT analysis is a
useful tool, which help in summarizing the current state of a company and helps to devise
an informed plan for the future. That plan must circled around the existing strengths,
redresses existing weaknesses, exploits opportunities and defends against threats. One
important thing to mention is that in SWOT analysis, strengths and weaknesses are comes
from the company’s internal environment while threats and opportunities are due to
external factors.
3.5 SWOT analysis of FCEL
First capital equities limited (FCEL) is a service business. They have no products to
manufacture or distribute, they only provide services and they must have to survive in
this short range. FCEL is a trading firm and like them, there are hundreds of brokerage
houses in Islamabad, Lahore and Karachi. Due to this, the competition is immense and
they must have to take measures to survive in this market. The complete SWOT analysis
of First Capital Equities Limited is discussed in the following lines.

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3.5.1 STRENGTHS
3.5.1.1 Talented & Experienced Staff:
FCEL Islamabad branch is equipped with an experienced staff. No
single member of the company have work experience less than 10 years at FCEL. Due to
this, an emotional attachment is established between the members and the company. They
even willing to serve the company in the days of crises, as happened during the financial
crises of 2007-08. The staff worked for almost 8 months without pay. Their four
departments except sales department are solely dependent upon the managers because
there is no other person in these departments. The managers fulfill their own
responsibilities and also work in place of subordinates. This shows their skills,
competency and emotional attachment with the company.
3.5.1.2 No. of clients:
FCEL is now almost 20 years old. During this period, the company work
hard to attract investors with their best services and competent staff. Now they have
thousands of clients. The Islamabad branch have highest number of clients than any other
trading firm in the north region. This shows the level of trust and interest of investors on
FCEL.
3.5.1.3 Low brokerage commission:
Unlike other trading firms, FCEL is offering a wide range of brokerage
commission to its clients. This commission starts from Rs. 0.05 per share and increases
according to the prices of shares.

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3.5.1.4 Resources:
Company have enough resources to meet the demands of the clients as
well as satisfy the employees. Their office is located at the ideal place in the ISE
building. Moreover, company gave cars to all its employees and bikes to office boys. Due
to this, employee satisfaction is at its optimum level and the turnover rate is negligible.
3.5.2 Weaknesses
3.5.2.1 High Expenses:
Company bear heavy expenses in their operations as well as in satisfying
employees. They provide different services like health, insurance, pension and few
others. Despite of that, other operational expenses are there, which could be minimized.
Otherwise, it keep on effecting the company’s performance.
3.5.2.2 Commission other than pay:
When our traders make brokerage commission more than 5 times of
their salary, company offer them 10-12% of that amount to them. Interesting thing is that,
these brokers receive their monthly pays as well and also receives commission. So, in
order to increase profits, these practices must be minimized.

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3.5.2.3 Bad debts:
The only thing which has more worth in the statement of financial
position over assets of the company is bad debts. FCEL Islamabad branch have bad debts
more than 110 million Pak. Rupees. While overall bad debts of the company is in
billions. Company must try to cover these bad debts and take steps to stop further
creation of bad debts.
3.5.3 Opportunities
3.5.3.1 New Markets;
Each passing day attract peoples toward the world of stock exchange.
With the growing number of investors, the need of brokerage houses is also increases in
other cities of the country. The current situation indicates that the number of investors
from Peshawar and Mir Pur is increasing. So, there is a need of brokerage houses in these
cities. Though the company have their traders in both the cities but in order to fully grab
the new markets, company must have to open its branches in both the cities. Other than
that, company also took measures to facilitate and encourage the foreign investors.
Moreover, if the company make possible to monitor the trading of commodity market
(gold, crude oil, platinum etc.) all the time, it would be an extra edge.
3.5.3.2 New Technology:
Company must have to make sure that it keeps on upgrading its
technology. Make possible that their internet connections were available at every time. If

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they start providing terminals even client needs it or not, it also create an impact and
increase their reputation in the mind of clients.
3.5.4 THREATS
3.5.4.1 Competition:
Approximately there are 250,000 investors in Pakistan and there
number is increasing very slowly. On the other hand, more and more brokerage firms
start their operations in the country. Due to this, the competition between the firms to
attract new clients as well as to retain their previous ones is dramatically increased. FCEL
also analyze this danger and now they took steps to retain their customers by offering
them good offers like low brokerage commission and good customer care services.
3.5.4.2 Political Environment:
Our political environment has direct impact on stock market. When
there is any political unrest in the society, stock exchange directly seem under attack. The
investors with draw their capital from the market and not ready to invest back for few
days. When the activity from the investors become limited, the commission of the firms
also goes down. So, we can say that political environment lower down the profits of the
brokerage houses.

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My Experience Vs. My Expectations
Before joining FCEL for internship, I have many expectations about the company, its
environment and people working there. During the internship of two months, I came to
realize that in some cases my expectations were fulfilled and in some cases, it will not.
Before internship I expected that the company has a large office with a large number of
employees working there. But when I reach there I find out that their office is small with
only 11 people working there. I expecting that during internship, mostly I have to do
photocopy and become an office boy but the reality is totally different. I learned a lot
during internship, doing many different and difficult task and that feeling of office boy
couldn’t appeared in my mind even for once. I expecting that that the behavior of people
working there might not be good or friendly but the reality is totally different. Their
behavior is very much encouraging and they help me in a friendly manner even if I
commit any mistake. Other than that through experience, I learned to behave well in
formal organizational setting. I learned to defend our company as well as our selves
without offended the other person. These are the things which I can’t expected before
internship. So in concluding remarks, I would like to say that my expectations or
assumptions about FCEL are very much negative but during the internship I find out that
the reality is not which we listen from others. In fact reality is that which we observe
through experience, just like in my case, my expectations were totally changed when
working at FCEL.

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How this internship helps me in future?
This internship at FCEL is a great opportunity for me to implement my knowledge and
skills into some practical work. I think that I also succeed to a greater extent in achieving
my goal. I think that this internship help me in future in number of ways. For example,
my personal inclination is towards specialization in Finance. FCEL is also a financial
institution. When in future, I go for a job in any financial institution, this internship will
count because that company might think that this individual have some sound knowledge
regarding financial institutions. So it might benefit me there. Moreover this internship
also helps in some finance courses in later semesters. Despite of helping me in future, this
internship immediately helps me. For example, during internship my supervisor offer me
two jobs. One as his assistant at FCEL. The other one is to work on a project at KHIVA
restaurant. But I refused to take either of them because of the strict schedule at QAU. My
supervisor then says to me that after completion of degree, came here and you will might
get a reasonable job. Hence, I think that this internship provides me a great help in
present and surely it will provide help in future too.
List of Competencies
Following are the list of some competencies or skill, which were being developed during
my internship.
 Customer dealing
 Trading

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 Forecasting the future impact of government decision on stock market
 Oracle & Java based soft wares
 MS Excel

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Chapter # 4
Conclusion & Recommendations
During my internship at First Capital Equities Limited (FCEL), I find out an entire new
world of business. That business contain a lot of profit as well as a lot of risk. It is like a
game and investors play this game with the help of their mind. Before joining FCEL, I
think that there is no business where common sense doesn’t work. But when I join FCEL,
I simply come to know that this business of stocks require no common sense. If someone
relying on common sense, than he or she will end their day with lots of loss. I also find
out that the return associated with stock market is much larger than those of banks. Banks
offer 10-12% return to their customers after a fixed time interval but stock market gave a
return much more than that of banks. The only difference in between the two financial
institution is the level of risk.
In order to earn profit from brokerage houses and to attract investors, you must have
enough resources and a good reputation. People do not go for a company, whose
operations are limited and running capital is low. This mind set is developed after a few
incidents in which brokerage houses take the capital of investors, close their operations
and ran away. Due to this, now the investor is much more conscious. They were willing
to pay high brokerage commissions and not willing to start business with new or small
firms. As a result, new firms were remain at their position. On the other hand, the top
firms of this industry are part of the large business groups of Pakistan. People have trust

33
on them and these firms are their first choice. The few top brokerage houses like Jahangir
Siddiqui, Arif Habib and FCEL are part of Jahangir Siddiqui group of companies, Arif
Habib group of companies and First Capital Securities Corporation respectively. These
are the listed groups and people have no doubt about their credibility.
In Pakistan, people have no or very little knowledge about stock exchange and the
business associated with it. As a result, new investors were not coming in the market.
There is no specific institution in the country which guide people towards it. On the other
hand, in Europe, there are institutions which guide people toward stock exchanges. Due
to this, the number of investors in these countries is very high. The benefit of more
investors is that capital is always in a moving condition. It does not remain intact with in
few hands. This in turn increases economic activity which in turn create jobs in the
market. New jobs will result in new investors and the cycle continues. In this way,
European countries took benefit from their stock exchanges.
At FCEL, our trading hall is small. It only have a seating capacity of almost 20 people at
a time. I think that the company must increase the area of trading hall. Insert more LCD’s
and use latest multimedia technology. Our clients need ledgers, daily activity and other
things on regular basis and for that they go in the back office. This activity effect the
working in the back office and also the satisfaction level of client is decreases. I
recommended that company must take steps to provide each and every thing with in the
trading hall. So that the client feel that their working cares for them.
Our company does not use advertisement to attract new customers. On the other hand,
other groups like Arif Habib group of companies use advertisements to attract new

34
investors. So in order to become a market leader, FCEL must have to go for promotional
techniques to attract new customers.
I also recommended that the company must take steps to control their expenses as well as
start establishing relations with legal departments for the recovery of bad debts.
The above are some recommendations which developed in my mind during internship
and I think that company prosper quickly by working on them.

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References
1.1 http://firstcapital.com.pk/about/
1.8 http://firstcapital.com.pk/services/
1.9 http://firstcapital.com.pk/research/
http://www.slideshare.net/vikvini1604/internship-report-14223944
http://dost.gov.pk/research-repositry-details.php?ID=225&T=BS
http://projectsinmba.blogspot.com/2011/08/internship-report-on-financial.html

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