BUSINESS STRATEGY PROJECT ON ADVANCE MARGIN DEPOSIT SCHEME

SUBMITTED BY PIYUSH KUMAR CHANDAK KARAN KAUSHIK PRERNA LUNKAR ABHISHEK SHANDALIYA PRAKHARDEEP RASTOGI

COMPANY PROFILE: BMA Wealth Creator Pvt ltd operates as financial services organisations in India. It provides individual and corporate financial investment solutions. BMA Stock Broking Pvt Ltd had changed its name in July 2007. The company was incorporated in 2004 and is based in Kolkata, India. A premier financial service organisation providing individual and corporate with customised financial solutions. They work toward understanding the financial goals and risk profile of their customers.

Our Objective of the Project: It is currently operating at a highly significant debt levels, our strategy project aims to launch an old scrapped out brokerage scheme with a refurbished image so as to attract new clientele and to retain their old base intact providing them better services at lower cost. From this project we intend to see what are major the implications of different variables which we will find in the course of our primary data collection and in relaunching our scheme and different ways we can overcome it. We will also by way of this project try and check the feasibility study of our proposal through different valuation techniques and arrive at whether this plan would be successful or not.

RATIO ANALYSIS OF BMA WEALTH CREATORS LTD: Current Ratio: The current ratio of a firm measures its short term solvency that is its ability to meet short term obligations. It represents the rupees of current assets available for each rupee of current liability payable. The current ratios of the three firms are as follows: 31.03.2009 31.03.2010 31.03.2011 Current Ratio 6.8182 11.5553 0.8246 The above ratios signify that the current ratio of in the FY10 is the highest which signifies that in that year the company had the largest amount of rupee available per rupee of current liability when compared to FY09 and FY11 Quick Ratio: The quick ratio is a rigorous measure of a firms ability to service short term liabilities. It is the best available test of the liquidity position of a firm. The quick ratio of FY09,10,11 are 6.0281, 11.5553 & 0.8246. This signifies that in the FY10 the companys current assets are not tied up in slow moving and unsalable inventories and it can meet its current liability obligation faster when compared to FY09 and FY11 Absolute Quick Ratio: Absolute liquidity ratio lays down very strict and exacting standard of liquidity, therefore, acceptable norm of this ratio is 50 percent. It means absolute liquid assets worth one half of the value of current liabilities are sufficient for satisfactory liquid position of a business. 31.03.2009 31.03.2010 31.03.2011 Absolute Quick Ratio 0.8092 3.1690 2.5388 This shows that the Absolute Quick ratio of BMA WC in FY10 is the highest which means that BMA WC has the most liquidity in its current assets in term of cash and marketable securities and hence can pay off its current liability obligation fastest in that year when compared to FY09 and FY11 Debt-equity Ratio: This ratio shows the relationship between borrowed funds and internal owner's funds. The Debt Equity ratio of the three years are given as follows:

DEBT-EQUITY RATIO

31.03.2009 1.0082

31.03.2010 2.8188

31.03.2011 2.4031

This shows that BMA WC is a high debt company it increased its debt to almost double in FY10 from its 09 levels but saw a slight decrease in debt in FY11. Proprietary Ratio: Establishes relationship between proprietor's funds to total resources of the unit. Where proprietor's funds refer to Equity share capital and Reserves, surpluses and Tot resources refer to total assets. The ratio of the last three years are as follows: PROPRIETARY RATIO 31.03.2009 0.4942 31.03.2010 0.2612 31.03.2011 0.2923

Capital Gearing Ratio: It is the ratio between the capital plus reserves i.e. equity and fixed cost bearing securities. Fixed cost bearing securities include debentures, long term mortgage loans etc. n a company form of organization, real risk is borne by equity shareholders because they are entitled to whatever residue is left after all others have been paid at the contracted rate. Highly geared mean lower proportion of equity. Low geared means high proportion of equity as compared to fixed cost bearing capital.

31.03.2009 CAPITALGEARING RATIO 0.1756

31.03.2010 0.1907

31.03.2011 0.2240

Fixed Assets Ratio: This ratio establishes the relationship between long term funds (equity plus longterm loans) and fixed assets. Since financial management advocates that fixed assets should be purchased out of long term funds only. FIXED ASSETS RATIO 31.03.2009 0.5101 31.03.2010 0.1806 31.03.2011 0.0794

Interest Coverage Ratio: The ratio measures debts servicing capacity of a business so far as interest on long-term loans is concerned. This ratio shows how many times the interest charges are covered by the earnings 31.03.2009 31.03.2010 31.03.2011 INTEREST COVERAGE RATIO 1.0890 1.6006 1.5369

Dividend Coverage Ratio: A coverage ratio that measures a company's ability to pay off its required preferred dividend payments. A healthy company will have a high coverage ratio, indicating that it has little difficulty in paying off its preferred dividend requirements. Since the company has a no 31.03.2009 31.03.2010 DIVIDEND COVERAGE RATIO 0.0000 0.0000 dividend paying policy as well as there is no preference shares of the company. 31.03.2011 0.0000

Debt-Service Coverage Ratio: The ratio measures debts servicing capacity of a business so far as interest on long-term loans is concerned. This ratio shows how many times the interest charges are covered by the earnings. The ratio signifies that the company BMA WC has enough cash to serve it debt throughout three years comfortably 31.03.2009 31.03.2010 31.03.2011

DEBT-SERVICE COVERAGE RATIO 1.0890 1.6006 1.5369 Inventory Turnover Ratio: Inventory turnover ratio or Stock turnover ratio indicates the velocity with which stock of finished goods is sold i.e. replaced. Insufficient level of inventory is also dangerous because it may be responsible for the loss of business opportunity. Thus for each item of stock minimum average and maximum levels should be fixed carefully. High turnover suggests efficient inventory control, sound sales policies, trading in quality goods, reputation in the market, better competitive capacity and so on. Low turnover suggests the possibility of stock comprising of obsolete items, slow moving products, poor selling policy, over investment in stock etc. 31.03.2009 31.03.2010 31.03.2011 INVENTORY TURNOVER RATIO 0 0 4.8850 BMA WC being a broking house where brokerage and trading income are its primary sources of revenue, hence it is not possible for the company to maintain any level of inventory. In 2011 however the company discloses to have some level of inventory held in the form of investments made in few of the shares of different companies. It was basically termed as inventory and not investments since some shares bought for trading purpose for a couple of days and it could not be termed as investments. Debtor Turnover Ratio: Ratio of net credit sales to average trade debtors is called debtors turnover ratio. Normally higher the debtors turnover ratio better it is. Higher turnover signifies speedy and effective collection. Lower turnover indicates sluggish and inefficient collection leading to the doubts that receivables might contain significant doubtful debts. Receivables collection period is expressed

in number of days. It should be compared with the period of credit allowed by the management to the customers as a matter of policy. Such comparison will help to decide whether receivables collection management is efficient or inefficient. 31.03.2009 DEBTOR TURNOVER RATIO 98.2727 31.03.2010 0.6059 31.03.2011 0.9649

Being in the business of share broking BMAWC need not worry about the debt recovery from debtors because of the rounding offsystem which exists. The entire broking firm operates on a system where the chances of bad debts is negligible or nil. So this ratio does not hold for any firm in the broking industry. Creditor Turnover Ratio: It is a ratio of net credit purchases to average trade creditors. Shorter average payment period or higher payable turnover ratio may indicate less period of credit enjoyed by the business it may be due to the fact that either business has better liquidity position; believe in availing cash discount and consequently enjoys better credit standing in the market or business credit rating among suppliers is not good and therefore they do not allow reasonable period of credit. The above two alternative conclusions are contradictory of each other therefore the ratio should be interpreted with caution. 31.03.2009 31.03.2010 31.03.2011 CREDITOR TURNOVER RATIO 0 0 0 But in the case of any broking firm for special reference BMA WC cannot have such a ratio as in the day to day operations of a broking firm there is no change for a broking firm to have creditors, as it is not in their business model. Fixed Assets Turnover Ratio: A financial ratio of net sales to fixed assets. The fixed-asset turnover ratio measures a company's ability to generate net sales from fixed-asset investments - specifically property, plant and equipment (PP&E) - net of depreciation. A higher fixed-asset turnover ratio shows that the company has been more effective in using the investment in fixed assets to generate revenues. 31.03.2009 FIXED ASSETS TURNOVER RATIO 0.51010 31.03.2010 0.1806 31.03.2011 0.0794

For BMA WC the fixed assets turnover is showing a declining trend. Total Assets Turnover Ratio: Asset turnover measures a firm's efficiency at using its assets in generating sales or revenue - the higher the number the better. It also indicates pricing strategy: companies with low profit margins tend to have high asset turnover, while those with high profit margins have low asset turnover. 31.03.2009 TOTAL ASSETS TURNOVER RATIO 0.3588 For BMA WC the ratio is showing an increasing trend. 31.03.2010 0.3436 31.03.2011 0.4085

Gross Profit Ratio: Gross profit ratio is the ratio of gross profit to net sales i.e. sales less sales returns. The ratio thus reflects the margin of profit that a concern is able to earn on its trading and manufacturing activity. It is the most commonly calculated ratio. It is employed for inter-firm and inter-firm comparison of trading results.

GROSS PROFIT RATIO

31.03.2009 16.74%

31.03.2010 19.79%

31.03.2011 20.75%

BMA WC shows an increasing trend in its GP ratio over the three years. Net Profit Ratio: Net profit ratio (NP ratio) expresses the relationship between net profit after taxes and sales. This ratio is a measure of the overall profitability net profit is arrived at after taking into accounts both the operating and non-operating items of incomes and expenses. The ratio indicates what portion of the net sales is left for the owners after all expenses have been met. Net profit ratio is used to measure the overall profitability and hence it is very useful to proprietors. The ratio is very useful as if the net profit is not sufficient, the firm shall not be able to achieve a satisfactory return on its investment. This ratio also indicates the firm's capacity to face adverse economic conditions such as price competition, low demand, etc. Obviously, higher the ratio the better is the profitability. But while interpreting the ratio it should be kept in mind that the performance of profits also be seen in relation to investments or capital of the firm and not only in relation to sales. NET PROFIT RATIO 31.03.2009 0.00 31.03.2010 4.13% 31.03.2011 3.51%

Operating Profit Ratio: Operating net profit ratio is calculated by dividing the operating net profit by sales. This ratio helps in determining the ability of the management in running the business. 31.03.2009 31.03.2010 31.03.2011 OPERATING PROFIT RATIO 16.74% 19.79% 20.75%

BMA WC shows an increasing trend in its Operating profit ratio over the three years.The operating profit for BMA WC is the same as its gross profit. Operating Cost Ratio: The operating ratio is determined by comparing the cost of the goods sold and other operating expenses with net sales. This ratio is a test of the efficiency of the management in their business operation. It is a means of operating efficiency. In normal conditions, the operating ratio should be low enough so as to leave portion of the sales sufficient to give a fair return to the investors. Lower the operating ratio, the better is the position because greater is the profitability and management efficiency of the concern. The higher the ratio, the less favourable is the situation, because there will be smaller margin of profit available for the purpose of payment of dividend and creation of reserves. 31.03.2009 OPERATING COST RATIO 0.8326 31.03.2010 0.8021 31.03.2011 0.7925

BMA WC shows a declining trend in the operating cost ratio over the period of three years which is a positive signal for the company. Return on Capital Employed: ratio that indicates the efficiency and profitability of a company's capital investments. ROCE should always be higher than the rate at which the company borrows; otherwise any increase in borrowing will reduce shareholders' earnings. 31.03.2009 0.1896 31.03.2010 0.1083 31.03.2011 0.1432

ROCE

Return on Net Worth: It is the ratio of net profit to share holder's investment. This ratio is one of the most important ratios used for measuring the overall efficiency of a firm. As the primary objective of business is to maximize its earnings, this ratio indicates the extent to which this primary objective of businesses being achieved. This ratio is of great importance to the present and prospective shareholders as well as the management of the company. As the ratio reveals how well the resources of the firm are being used, higher the ratio, better are the results. The inter firm comparison of this ratio determines whether the investments in the firm are attractive or not as the investors would like to invest only where the return is higher. 31.03.2009 0.00 31.03.2010 0.0825 31.03.2011 0.0808

Return on Net Worth

Return on Equity: The amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested. The ROE is useful for comparing the profitability of a company to that of other firms in the same industry. Return on Equity 0.00 0.0825 0.0808 Return on Total Assets: An indicator of how profitable a company is relative to its total assets. ROA gives an idea as to how efficient management is at using its assets to generate earnings. Calculated by dividing a company's annual earnings by its total assets, ROA is displayed as a percentage. Sometimes this is referred to as "return on investment". ROA tells you what earnings were generated from invested capital (assets). ROA for public companies can vary substantially and will be highly dependent on the industry. This is why when using ROA as a comparative measure, it is best to compare it against a company's previous ROA numbers or the ROA of a similar company.

Return on Total Assests

31.03.2009 0.00

31.03.2010 0.0216

31.03.2011 0.0236

Earnings Per Share: It shows the portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serve as an indicator of a company's profitability. Earnings per share are generally considered to be the single most important variable in determining a share's price. It is also a major component used to calculate the price-to-earnings valuation ratio. EPS 31.03.2009 0.00 31.03.2010 0.14 31.03.2011 0.16

LEVERAGES ANALYSIS Leverage is measured between two financial variables when the fixed charges are present. There is three types of leverage. Operating, financial and combined leverage. Operating Leverage: operating leverage explains the firms ability to use fixed operating costs to magnify effects of changes in sales on its EBIT. DOL exists when it is greater than 1. Greater the DOL the more sensitive is EBIT to a given change in unit sales. I.e. greater will be loss if sales become depressed. Kholer defines it as "The tendency of net income to vary disproportionately with sales. The operating leverage measure the relationship between the sale revenue and the EBIT. Financial Leverage: It is the tendency of net residual income to vary disproportionately with the net income. It measures the relationship between the EBIT and the EPS and it reflects the effect of change in EBIT on the level of EPS. The FL measures the responsiveness of the EPS to a change in EBIT. In other words, financial leverage measures the magnifying effect of change in EBIT on its EPS when fixed financial charges is present. DFL implies what will be the change in EPS with the 1% change in EBIT. Total Leverage: It shows the relationship between EPS and level of activity or volume of sales. Its the effect of change in sale level on the EPS. Combined leverage measure the total risk of firm i.e. operating + financial risk. BMA Wealth Creators Ltd: i) DOL:DOL of the company is increasing with increase in sale level which means the company is operating at sale level above Breakeven point{profit} and having MOS(margin of safety) because of which the fixed cost become relatively smaller as compared to total sale. An increase in DOL also indicates that business risk also increasing. ii) DFL:In first 3 yrs DFL of company starts from being negative to positive and showing an increasing trend which means company is operating at a level of EBIT which is higher than the financial breakeven point level{means company is having profit after paying interest on debt fund} and both EBIT and EPS will vary in same direction as EBIT changes. In first year DFL is negative means company is operating at a level lower than financial breakeven level which means it was not able to pay fixed interest charges and the resultant EPS change become negative means market price of company decreases. iii) DTL: In first 3 yrs company is having positive DTL means that leverage is being computed for sale level higher than breakeven level and both EPS and sales vary in same direction.

FUNDS FLOW STATEMENT Fund flow is a statement showing the significant financial changes which have occurred in the beginning and end of a Companys accounting period. It helps shareholders, creditors and others to evaluate the uses of fund by the organization. It also helps in the analysis of past trends and thus aid future expansion trends. It also helps financial managers in identification of problem, enabling detailed analysis and immediate action. The Fund Flow statement and changes of Working Capital has been compiled and an increase in the in the Working Capital has been noticed. The increase in the Working Capital is of Rs. 1, 19,701,434/The primary source of the Working Capital in the firm is its Retained Earnings it has developed over the years. The company has a no dividend paying policy therefore the entire earnings post tax is retained for further investment into working capital of the business. It has been noticed that over the years the company has also used external sources of financing parallel to that of internal financing. The company was seen issuing equity shares which are privately placed to the directors and the members of the company and their relatives since the company has not gone public. Increase in the amount of secured loan is also constantly seen rising up.

2011

2010 Debt 2009

Equity

2008

200000000

400000000

600000000

800000000

It has been seen over the years that BMA Wealth Creators heavily relies on Debt Financing more than Equity Financing. A continuous increase in its fund requirements is seen but except for 2009 the company has majorly financed its fund requirements by Secured Debt rather than Equity Financing.

Cost Revenue Structure:

The revenues as well as the operating cost over the years for BMA WC grew at a rapid pace. There was a continuous growth in the brokerage income of BMA WC and with the rise in the scale of operations the cost also grew

2011

2010

Total Operating Cost

2009 Total Revenue

2008

200000000

400000000

600000000

In 2009, the operating cost of the company grew by 4.9% in comparison to the revenues that grew at 1.40%. Whereas 2010 and 2011 saw an increase in the revenues by 41% and 38% respectively and the overall operating cost increased by 39.35% and 37% respectively.

Proposed Strategy
Advance Brokerage Deposit Scheme: Brokerage is a charge created by an agent or his company in lieu of facilitating transactions between the buyer and the seller. The fee is charged for service such as negotiation, sale, purchases, delivery or advice on the transaction An Illustration of Calculation of Brokerage is shown below:
For Cash For Cash & BTST Trades : Let us say Trade Amount is 30,000.00Amount & BTST Trades : Let us say Trade 1. 1. 2. 2. 3. 3. 4. 4. Brokerage = 30000=* 0.7530000 = 225.00 0.75 / 100 Brokerage * / 100 Service Tax = 225 * 12.24 / 100 = 27.54 Service Tax = 225 * 12.24 / 100 STT = 30000 *=0.125 / 100 = 37.50 STT 30000 * 0.125 / 100 Total = 225.00= 27.54 + 37.50 =+290.0427.54 + Total 225.00 + 37.50

is = = = = then

30,000.00 225.00 27.54 37.50 290.04 25.

25.00 is charged IfIf Brokerage is less than 25.00 thenless Brokerage is than

25.00

For Margin & Margin Plus Trade : Let us say Buy Amount is 30,000.00 & Sell Amount is 31,000.00 1. Buy Brokerage = 30000 * 0.05 / 100 = 15.00 2. Buy Service Tax = 15 * 12.24 / 100 = 1.836 3. Total for Buying = 15.00 + 1.836 = 16.836 5. 6. 7. 8. Sell Brokerage = 31000 * 0.05 / 100 = 15.50 Sell Service Tax = 15.50 * 12.24 / 100 = 1.897 STT = 31000 * 0.025 / 100 = 7.75 Total for Selling = 15.50 + 1.897 + 7.75 = 25.147

9. Total Brokerage = 16.836 + 25.147 = 41.983 If Brokerage is less than 15.00 then 15.00 is charged

In the above scenario: a) The first scenario explains calculation of brokerage when you trade on cash market or Buy Today Sell Tomorrow basis (BTST) where you can settle your trade before T+2 settlement takes place for delivery realising increase in price of the stocks and not further waiting for it. b) The second scenario shows calculation of brokerage in case of simple Margin & Margin plus trade . MPT is the operation which is done during market hours and squared off at 3.15 pm Advance Brokerage Deposit Scheme is the one which was introduced by SHARE KHAN in 2009. As per this scheme customers had to pay Advance Brokerage for trading which enabled the customers to trade at a lower cost for a specific tenure specified in advance. It was more of a prepaid scheme which in a way reduces your transactional cost i.e, Brokerage cost . This scheme did not work well with the customers/clients of the Broking Companies due to many constraints which came in the way of its implementation. There were many individuals those who

had different negative views regarding this plan and this plan was boycotted by the investors at a large having a notion that this plan was a sham for the broking houses to loot its customers/clients. OUR PROPOSAL: We have decided to implement this idea of Advance Brokerage Deposit Scheme in one of a leading company in the Broking Industry- BMA WEALTH CREATORS LTD, KOLKATA. and look at how best can we refit this strategy into industry making this model a successful one. METHODOLOGY USED: We have conducted Primary Data from different sources: 1. Calls were made to 50 broking houses across country i.e., different geographical locations and different questions were asked to the agents of the broking houses so as to get the rough estimate of the overall market condition and the progress of the broking houses from an agents perspective because they are the people who are in closest contact to the clients.(Questions Included in the Annexure) 2. Focus Group Discussion Two (in numbers) FGD was conducted with students of IBS those who have experience or those who actively trade in stock markets and derive out factors which had led to the downfall of this scheme. 3. Interviews with Eminent People of the Industry: Interview with Eminent People from the Industry through telephonic interviews and through E-mails was conducted to know: a) The changes in Industry b) Major Challenges Faced By the Industry c) Major Growth Drivers of the Industry d) Opportunities for the Industry

OUR FINDINGS RELATED TO PRIMARY DATA COLLECTION

1. TELEPHONIC CONVERSATION WITH AGENTS OF 50 BROKING HOUSES:

An analysis of primary research was done to gain the Industry Insights. Research: Through different company sources and external sources database of about 50 broking firms were gathered and contacted, from which we received 46 responses which gave us more than 80% of the information which we had sought for, for the analysis. All responses for the study was collected directly from the broking firm. Results arrived at: 1. Western region has the major representation of broking houses of about 52% ,followed by Northern Region with 24% firms, Southern India representing 13% and Eastern India was represented by 10% of the total firms 2. Amongst the companies analysed 32 % of the firms started its operations post 1995, 65% of the firms started its operations in between 1950 to 1995, only 3% of the firms today existed before 1950. 3. Analysed on the basis of terminals results showed that about 40% terminals were located in Mumbai, 11% in Delhi, 9% in Ahmedabad , 8% in Kolkata,3 % in Chennai and the rest 29% in the other cities. 4. This study helped us to find that amongst the companies analysed 20% of them trade in cash, derivatives and commodities; 36% of the firms in cash and derivatives; 27% in cash markets alone. 5. Cash Markets registers 52% of its trade from the firms trading at both the exchanges,34 % firms trading only at NSE , 14% firms trading only at the BSE. 6. Derivatives Segment registers 45% of its trade from the firms trading at both the exchanges, 48 % firms trading only at NSE, 7% firms trading only at the BSE. 7. Branches of the firms are majorly located in South (55%), West (29%), North (11%), and East (5%) 8. Sub- Brokers are majorly located in South (52%), West (32%), North (8%), and East (7%) 9. The top three products of the industry is i) Trading ii) IPOs iii) Mutual Funds. 90% of the firms taken as sample for analysis provide Trading facility, 67% of the firms provides IPO facility and 53% firms provide mutual fund transactions. 10. For their expansion and sustainable growth 84% of the firms look at expanding their institutional clientele whereas 66% of the firms wants to look forward by way of increasing their FII clientele and 43% of the firms looks for expansion by setting up a Joint Venture in India and outside. 11. In terms of Information Technology Penetration 94% firms have e-mail facility and 63% of the firms have their website.

Cash Markets registers 52% of its trade from the firms trading at both the exchanges, 34 % firms trading only at NSE, 14% firms trading only at the BSE. Derivatives Segment registers 45% of its trade from the firms trading at both the exchanges, 48 % firms trading only at NSE, 7% firms trading only at the BSE.

Within the firms operating in the commodities markets 57% of them operate on both MCX and NCDEX, about 20% solely on NCDEX and 21% only on MCX. It was found that only 2% of the firms trade in all of the NCDEX,MCX and NMCE.

From the survey we also came to know that due to volatility in the markets and structural shifts in the broking house firms due to capital market slowdown the broking firms are diversifying their services from Trading activities which is and still remains to be the core activity of a broking house to offering IPO related services, mutual fund investment services, Asset Management services and Company Research. Amongst the sample 90% firms earn their major chunk of the revenue predominantly from trading activities, 67% of the firms are also engaged in IPO related services,50% of the firms deal in mutual fund investment services riding on the growth of the mutual fund industry. 48% average growth was registered in assets under management. 33% of the firms surveyed provide Company Research activities. Different services such as fundamental& technical analysis, arbitrage and Investment Banking services are also performed by different broking houses.

Future Growth Opportunities: Not all but 65% of the firms responded on what was preferred by them as their growth path for the future. Around 84% of the respondents to this question showed their interest in expanding their institutional client base. Since last few years Indian Stock Markets are the most preferred FII destination along with Korea and Taiwan. Around 66% of the firms look at expanding their FII base since sectoral friendly policies and rising market capitalisation helps the FII.

2. FOCUS GROUP DISCUSSION: Our findings through FGDs were, Group 1 of the FGD participants had heard of the the plan but none of the participants had a clear cut idea about it. Some had notions that n number of trades was possible when you opt for this brokerage plan. There were notions of the Return On Investment coming down amongst participants by opting for this plan. FGD of the Group 2 consisted of 95% of the participants were not even aware about the plan We could find the following variables amongst many more which could be probable reason for the failure of the Scheme: Lack of awareness/ Lack of Understanding Lack of flexibility Promotion failure/Not Marketed Well Transparency of system Focus on the plan Increased questions about ROI Improper Implementation

3. INTERVIEWS WITH EMINENT PERSONALITIES OF THE INDUSTRY: Mr. Harsh Vardhan Bolia, Senior Compliance Officer, NSE INDIA. Mr. Rajesh Kumar Singhi, ACA, ACS, Sub-Broker, Ashika Securities Ltd Mr. Sandeep Patni, Director, TransScan Securities Pvt ltd Mr. Anirban Dasgupta, Vice-President Dealing, BMA WEALTH CREATORS The above mentioned gentlemen were graceful to help us moving ahead with the project. The below mentioned questions were asked to them regarding the Industry: 1. Kindly comment on the changes that have taken place in the broking industry in the past five years? 2. What are the major challenges faced by the broking industry? 3. What are the major growth drivers of the Indian equity market? 4. What opportunities do you see in the Indian broking industry in the next three years? What strategies has the company adopted to explore these opportunities?-5. Do you think there is a need for consolidation in the Indian broking industry? And their replies helped us at arriving at the following variables about Industry as a whole:

Changes that have taken place in the broking industry:

a) Increase in derivative volume and particularly Options. STT is changing the composition of the market and shifting the market towards options as STT applicable is lower. b) Brokerage rates are coming down. Presently around 25% of the brokerage rate were applicable 5 years earlier. c) Large network of franchisee / branches of the brokers d) Increased focus on marketing by the brokers e) Operational and compliance cost are increasing substantially f) Commodity market is growing at much higher rate and at par with equity and future market g) Currency market were launched and having a good pace. Options have also been introduced. Likely to be a major volume driver in future. h) Broking firms are well- equipped to manage the risk under highly volatile markets i) Substantial part of the volume coming from Algo Trading / System Trading.

Challenges faced by the broking industry:

a) Getting right marketing employees b) Productivity of the marketing employees c) Keeping the operating overheads low d) Low participation of Retail Investors in Equity Market e) Continuous investment in technology, trading platform f) Competition from foreign firms g) Continuously declining brokerage rate h) Risk Management System to take care of increased volatility in the market

The major growth drivers of the Indian equity market: E-Broking Multiple exchanges on single screen Intra-day calls & flash news Historical charts with technical tools Screen based Trading, Electronic matching and paperless execution Research Daily services Technical services Fundamental services

Commodities State-of-the-art Internet trading platform Trading & educational seminar Efficient risk management

Demat Services Hassle free automated pay-in Wide branch coverage Centralized billing & accounting

Value Added Back Office Services Web enabled centralized back-office Centralized help desk services E-contract notes cum bills

Market Outlook At 9:30 PM A crisp pre-market report that arms our clients with sensitive information before the opening bell. Key corporate developments, policy announcements, geo-political news and views are analyzed for their impact on the market. Investment In Technology

Customer Expectation Management

Benefit of Scales in case of low margin

EXISTING PRICING STRATEGY OF BMA WC Currently BMA WC provides its services at nominal brokerage rates are: Intra - day trading Activities @ 0.05 paise per trade Delivery of shares @ 0.50 paise per trade Futures & Option @ both sides Rs 50 each. i.e., while buying Rs.50 per trade and while selling Rs 50 per trade Taxes such as Service Taxes, Turnover Taxes, Sebi Tax (0%), Stamp duty, STT are extra.

Currently BMA WC also runs an Unlimited Trading Scheme:

Unlimited Trading Scheme

Cash Trading(only)

Cash & Futures

The Scheme charge is Rs 8427/payable in Advance which enables you to do unlimited trading for three (3) months. The brokerage is 1 paise per trade. The scheme charges are specifically for scheme to be activated.The scheme is validy for 3 months after which the amount gets forfeited if not used or subject to renewal. In this you can only trade in cash activities and no F&O.

The Scheme charge is Rs 16854/payable in Advance which enables you to do unlimited trading for three (3) months. The brokerage is 1 paise per trade. The scheme charges are specifically for scheme to be activated.The scheme is validy for 3 months after which the amount gets forfeited if not used or subject to renewal. In this you can trade in cash activities as well as futures and options. Rs1 under this scheme is chargeable for per lot of option traded

We propose to implement the new refurbished plan of ADVANCE BROKERAGE DEPOSIT SCHEME in our Company (BMA WEALTH CREATORS). We have the current pricing structure designed for the company. Through analysis of different ratios we can find out that the companys If you are a consistent investor in the stock market and would like to take the advantage of your consistent trading then we offer you Advance Fee Account. As a benefit of your consistent trading, we offer you extremely low charges during the validity period.

Benefits of the Scheme: Maximize your investments with the advance fee plan Example: if you opt for an Rs.10000 advance fee plan and brokerage generated during Validity period = Rs. 50000, amount reversed to your a/c will be rs.10000 (Maximum amount reversible to you = advance fee plan ) Note: If no brokerage is generated during the validity period the advance fee will not be reversed. Free Account Opening Low brokerage rates, The brokerage will be exhausted from the advance fee

Complete utilisation of validity period where you can continue trading inspite of exhaustion of advance fee at low brokerage.

For example, you opted for the plan with Advance fee of Rs. 1000 which is valid for 6 months, your advance fee is exhausted in the 1st month itself but here you can get the same brokerage rate for balance 5 months as well

Advance fee reversible upto the plan value Reversal Illustration - Suppose you choose plan with Rs.1000 for 6 months validity and generate a brokerage of Rs.800 during the validity period, then Rs. 800 would be reversed to your account. If the brokerage generated is Rs.4000, then only Rs.1000 is reversible because the maximum amount reversible is the upto the advance fee. If no brokerage is generated during the validity period the advance fee will not be reversed. Additional Benefits after going in this scheme(From Our Research Desk) News and market updates Call & Trade facility Trade in Currency Derivatives IPO and MF Research Reports SMS Alerts KEAT Pro After Market Orders

1) 2) 3) 4) 5) 6) 7) 8)

After Proper drafting of the Scheme along with the rates and formalities which will have to be complied with the scheme a proper forecasting exercise was done. Forecasting was done in two ways: 1) Forecasting on the basis of current market situation without implementing the Advance Brokerage Scheme 2) Forecasting on the basis of current market situation with implementing the Advance Brokerage Scheme With Underlying Assumptions we had moved forward with the Valuation Process: It is assumed that after accounting for and rectifying all variable we found out through our Primary Data Collection we would launch this scheme. We have removed all the barriers of communication and dissatisfaction of service between BMA WC and its clients in the form of a toll free number which promises to settle the issues within an hour. Proper use of marketing techniques to overcome lack of visibility in the market People are more aware about the entire idea of the scheme than they earlier were.

Based on these assumptions Main assumptions taken for valuation was: There is a growth of revenue of 10 % in excess to that of normal growth since this scheme with itself entails a lot of investor awareness, satisfaction measure as well as public attraction due to lowest broking commission in the country It is assumed that 60% of the revenues come from this scheme and in advance, which thus reduces the reliability on debt and henceforth the cost of the company as well. GRAPHICAL REPRESENTATION OF THE FINDINGS:

Comparison of Revenues With & Without ABDS

INCREMENTAL REVENUE FROM THE ABDS SCHEME
2E+09 1.8E+09 1.6E+09 1.4E+09 1.2E+09 1E+09 800000000 Revenues Forecasted with ABDS Revenues Forecasted without ABDS

600000000
400000000 200000000 0 2011-2012 2012-2013 2013-2014

Comparison of EPS With and Without Scheme Implementation

0.3 0.25 0.2 Forecasted EPS( without ABDS) 0.15 0.1 0.05 0 2011-2012 2012-2013 2013-2014 Forecasted EPS( with ABDS)

2013-14

Comparison of Debt that will be availed by the Pre and Post Scheme Implementaion

2012-13

Debt after the scheme Debt Before the Scheme

2011-12

0 2E+09 4E+09

Hence this shows that this plan will be successful if implemented taking into consideration all the variables.

MARKETING OF ADVANCE BROKRAGE PLAN ON THE BASIS OF DIFFERENT VARIABLES

This works similar to the 'pay as you trade' option. But you have to pay a lump sum towards brokerage in advance. The money you paid has a validity period like mobile talk-time. If you don't use it in that stipulated period, it is not carried forward. But the advantage is - more you pay in advance, lower will be the brokerage rate. As the product is new to market it needs different kind of handling in term of benefit it will be deliver to Investor. So the following channel can be adopted by B M A WEALTH CREATOR. 1. FINANCIAL MAGZINES like OutlookMoney, MoneyToday, MoneyLife, BusinessWeek or BusinessWorld can be used as it will target people who are directly or indirectly interested in market. When we advertise in specialised magazines like in this case financial magazine, we are reaching a specific target market; every reader is a potential "qualified lead". Our company is also exposed to potential new customer (in our case investor) that can help us in expanding our product. Target-specific magazines offer higher image quality than both online and newspaper sources. 2. BUSINESS NEWS CHANNEL:-like CNBC, ET NOW, CNBC Awaaz, NDTV Profit etc potential in term of is its ability to communicate with a very large audience can be used as another medium to promote the product. Considered a form of mass media, TV ads work well to attract attention, generate awareness and establish preference for products and services. TV has always been able to appeal to multiple senses through its combination of text, images, sound and motion. It is its multi-sensory appeal that allows TV advertising to remain a viable option for many advertisers. A disadvantage of advertising on cable television is the cost, means it will ask for large budget. 3. NEWSPAPER, a medium for mass advertisement can be used. At a time when TV and radio audiences are fragmented and direct mail costs are rising, nothing beats a daily newspaper for reach, affordability, flexibility and impact. An average issue of a daily or Sunday newspaper reaches more adults than an average half-hour of prime-time television. 4. DIRECT MAIL to existing customer or potential customer can be sent elaborating the plan and benefit associated with it. Company (BMA Wealth Creator) can purchase mailing lists of potential customers through a mailing list distributor such the Direct Marketing Association. Direct marketing can be highly individualized. Computer programs allow small companies to address consumers by name in direct-mail campaigns. Therefore, the message of the sales letter, for example, is directed at a particular person as if the owner is

speaking directly to them. Company can include as much information as it desires in a direct-mail campaign, depending on how much she wants to spend. 5. HOARDING/BILLBOARDS:-we can place advertisement at busy intersection of city. Since it is in the public domain, Outdoor Advertising assuredly reaches its audience. People can't "switch it off" or "throw it out." People are exposed to it whether they like it or not. In this sense, we can at least tell the people that our company BMA Wealth Creator is in market with new product. 6. INVESTOR AWARENESS PLAN:- BMA Wealth Creators will conduct an investor awareness campaign in leading B-schools. The objective of this program will be to educate the budding entrepreneurs and management students about investment opportunities in equity, commodity and other various forms. They will be taught how to trade in the stock market and will be given a chance to open free DMAT accounts with our company. With this account, they will be allowed to do free trading for 6 months. This exercise will help us increase our customer base and brand equity. 7. BMA grievance cell:- we shall also open a 24-hour grievance cell which will deal with solving all queries and problems related to trading and stock markets within 1 hour. The toll free number will be 1800-1897-1897.

ANNEXURES
INTERVIEW WITH MR. HARSH VARDHAN BOLIA CIO, NSE INDIA Kindly comment on the changes that have taken place in the broking industry in the past five years? A. The past 5 years have been quite defining in the Broking industry. The heady markets pre 2007 were followed by the unprecedented financial crisis of 2007-08 with the subsequent sharp pull back and back to the current scenario where most of the developed world faces fiscal crises. The market has witnessed a structural change with Futures & Options now ruling the roost. From a daily F&O turnover of ` 295.43 bn in 2006, the volumes have now increased almost 5 times in 20011-12 to ` 1255.02 bn a day with no signs of this trend changing in future as well. While Online Broking is still small, the number of clients and number of brokers providing access to online trading is growing rapidly. While retail participation post the financial crisis has remained muted, investors are much more aware today, thanks to the advent of 24/7 business channels and knowledge initiatives by Broking houses and SEBI. The Broking industry has seen the introduction of Currency Options in August 2008 which now clocks a turnover of nearly ` 450 bn a day. Also becoming increasingly popular are the Global ETFs like Hang seng Bees and Nasdaq 100 ETF. It is important to mention here that all along SEBI has played an anchoring role in ensuring that investor protection is paramount. What are the major challenges faced by the broking industry? A. India is probably the most fragmented broking market in the world with the top 25 players accounting for a market share of just 42%. This has led to intense competition. Add to this the sharp rise of low yielding F&O Volumes resulting in a steep decline in the broking yields. For instance, the market share of options back in 2006 stood at a mere 6% of the total turnover, which in FY11 has risen to 58% of the total turnover causing the broking yields to drastically come down from 6 basis points in FY07 to 3.5-4 basis point levels in FY11. Also the more lucrative cash market volumes have seen a major decline in its total share from an average of 40% back in FY07 to a quarterly average of 10% in FY11. Thus only the most cost efficient brokers with very sound business models can survive over the long term. The other challenge is the absence of retail investors post 2007 since they dont want to deal with the intense volatility that the market has seen over the last 3 years. What are the major growth drivers of the Indian equity market? A. Growth in the Indian equity markets will be driven by broadbasing the investor base and reaching out to clients, through online and other channels. Currently, pan-India there are close to 27,170 branches/franchisees of brokers (that has doubled since 2007 when there were only 12,873 outlets). India is where the US was in the early 1980s in terms of retail participation. The onus is on the industry, SEBI and the Government to ensure that the concept of equity and its importance in the growth of an exciting market is propounded to investors in India. The 3% share of Equities (of the total investible surplus) has to move up to double digits and the number of investors through Mutual Funds and direct equity route needs to take a quantum jump for this to happen. What opportunities do you see in the Indian broking industry in the next three years? What strategies has the company adopted to explore these opportunities? A. The Indian broking industry will evolve and needs to reinvent itself in the next few years. Currently broking income contributes to around 54% of the total income component for the

financial market companies. The fee income, namely from investment banking, distribution and PMS etc, is at 16%, which we feel would increase drastically with the increasing awareness and overall financial needs of the investors. This in turn will only be possible by increasing the investor interest through the right technology platforms, access to products, advice based on the risk profiling of clients, trained advisors and strong operational controls. We at Religare Securities have already put in place systems, training, and processes to provide a single-window solution for the clients looking to invest in equity, derivatives, currency, Mutual Funds, and other wealth products. We have invested in up skilling our dealers so that they have a wider perspective of the markets from a knowledge and risk viewpoint, thereby enabling them to serve the customers better. Do you think there is a need for consolidation in the Indian broking industry? A. The fragmentation of the market, the changed structure in the composition in the market, the constant pressure of downward broking yields, the rising cost of compliance and controls will make consolidation a necessity in the industry. Weaker players will get merged with stronger ones and this is essential to grow the industry.

INTERVIEW WITH MR. RAJESH SINGHI, SUB BROKER,KOLKATA, ASHIKA BROKING LTD Kindly comment on the changes that have taken place in the broking industry in the past five years. Five years back, the Indian broking industry was in the midst of a bull run. More and more retail and institutional investors were drawn into the markets and they were getting good returns from the market. The brokers were expanding workforce and distribution presence to take care of the increasing demand. New broking houses were entering the markets and PE funding was easy to get. As the financial crisis hit in the FY09, the broking industry was hit hard. The equity markets were in a bear markets in FY09. The investors who had made money in the previous bull market lost most of their gains. Since then, the markets have become highly volatile and directionless. The retail investor confidence has not come back and as a result their participation is low. The revenues of the brokers have been impacted due to a lowering of yields and reduced number of transactions in the cash markets. The trend in the last few quarters is more towards the low yield derivatives markets. Due to falling revenues, some of the brokers who had entered the markets and had made significant investments in the infrastructure had to scale back and some had to close their operations. The FIIs have also been investing heavily into the Indian capital markets but their investments have been highly volatile. The medium and long term prospects for the industry however is good and many large players with long term vision are also entering the markets. What are the major challenges faced by the broking industry? The investors have not been participating in the current markets due to the macroeconomic uncertainty and risk aversion. The markets have become highly volatile and investors have not been able to generate good returns. As a result, the turnovers have been falling in the high yield cash segment and this has negatively impacted the revenue stream of the brokers. As of now many brokers are scaling down the excess capacity that they had created during the bull run in 20062007. There is intense competition in this highly fragmented broking industry and achieving a critical scale of operations in such a market to sustain profitability is a challenge. What are the major growth drivers of the Indian equity market? As Indian GDP grows at around 8%, companies would require resource mobilisation through the IPOs and FPOs to finance the expansion plans. The gross domestic savings rate as a percentage of GDP in India is quite high at 33.7% in FY10 which has helped to fuel the cycle of higher growth, higher income and higher savings. However, most of this savings goes in unproductive physical assets and in bank deposits and very little goes in equities. This is expected to improve due to greater customer awareness drives being taken by various institutions. The market regulation has also undertaken a lot of initiatives towards greater investor protection and for bringing transparency in the markets. Technologic advancements will help in expanding the market and make it easier for participants to trade. The initiatives taken by the exchanges like the proposed SME exchange will go long way in broadening the market. What opportunities do you see in the Indian broking industry in the next three years? What strategies has the company adopted to explore these opportunities? The commodity broking market is still in nascent stage in India and is expected to see an explosive growth in the coming years. The Indian commodity broking turnover has already increased by approx. 53% to ` 119,000 bn in FY11. The commodities prices have been increasing due to the increased demand from the developing economies and easy monetary policies adapted by the

western economies. Similarly, the exchange traded currency derivative market has shown good growth in the last year and is expected to grow substantially in the coming years. We have been increasing our presence in these segments and they have started contributing significantly to our topline. Do you think there is a need for consolidation in the Indian broking industry? A. The Indian broking industry is facing challenging times due to low investor participation and falling yields. The current scenario is not encouraging for the industry as many broking houses are barely profitable. Some of them have also ready scaled down their operations and distribution network. Some have also diversified into other businesses. However, the long term prospect for the industry is good and many large Indian and foreign players have entered in the industry with a long term vision.

INTERVIEW WITH THE VICE PRESIDENT,TRANSSCAN SECURITIES Kindly comment on the changes that have taken place in the broking industry in the past five years. A. The broking industry has gone through a rapid pace of changes over the past 5 years. From increased participation of retail investors through the online platforms to introduction of STT, a lot has happened in the industry. Some of the changes have been for better and some otherwise. The distribution channels of the industry have also increased and have reached the hinterlands of the country which could not access the Indian capital markets due to lack of such channels. In the last 5 years, Algo trading has also became very popular and its share in overall trading volume has increased substantially. New instruments have also been made available ranging from currency trading, option contact currency, interest rate derivatives and trading in foreign indices S&P and Dow Jones. The broking houses have become more techsavy and their spending on technology and infrastructure has increased substantially. Hosting server in co-location i.e. in exchange premises coupled with tic by tic broadcast has also resulted in reducing the latency and now high frequency trading as happen in developed exchanges has found its way in Indian exchanges also. What are the major challenges faced by the broking industry? A. The industry faces quite a lot of challenges. The biggest of them is the fall in volumes due to lack of conviction on part of the investors in the Indian market. This is especially true for the Spot market more popularly known as the Cash market. Falling brokerage rate due to increase in competition is also another challenge. Compliance level has also increase substantially with the stringent regulation with regards to collection of margin from clients & penalty provision on change of quotes & other legal & compliance issue. The second round of reforms which were used to take our financial market to the next level also not happened. Even the cost of trading into equity is very high on account of STT which is hampering volumes. So, higher STT is also one of the bigger challenges. Varying rates of stamp duty from state to state is another problem and need to be uniform. What are the major growth drivers of the Indian equity market? A. The major growth driver of the Indian equity market in the future shall be the increased focus of RBI on financial inclusion leading to more individuals with access to banking channels. The initial focus for them shall be to improve their savings, but the next step for them shall be to grow their wealth by investing in various asset classes including equity markets. Another growth driver is increase in the flow of investments by FIIs and opening of our markets for foreign nationals to make investment through Indian mutual funds. Also availability of more Instruments & global products in Indian exchanges will increase local participation. Reduction of STT and uniform stamp duty will also play critical role in the growth of equity market. What opportunities do you see in the Indian broking industry in the next three years? What strategies has the company adopted to explore these opportunities? A. The biggest challenge for the Indian broking industry in the next three years shall be to serve the increasing investor base (especially from low income groups) in a cost effective manner. This can be done by partnering with various banking institutions to avoid duplication of distribution channels, especially in rural areas. Introduction of innovative products like SIPs for investing in equity markets can be other ways to reach out to such customers. More FIIs participation in the

future as Indian currency is still undervalued also India has low external debt to GDP ratio. As Indian economy is strengthening more participation in Equity market is expected. Do you think there is a need for consolidation in the Indian broking industry? A. In the current scenario, there does seem a need for consolidation in the broking industry as the revenues and the profit margins of the whole industry have taken a beating due to the intense nature of competition.

INTERVIEW WITH THE VICE PRESIDENT DEALING, BMA WEALTH CREATORS,LTD. Kindly comment on the changes that have taken place in the broking industry in the past five years. A. The changes that have taken place in the broking industry in the past five years are as follows: a) Increase in derivative volume and particularly Options. STT is changing the composition of the market and shifting the market towards options as STT applicable is lower. b) Brokerage rates are coming down. Presently around 25% of the brokerage rate were applicable 5 years earlier. c) Large network of franchisee / branches of the brokers d) Increased focus on marketing by the brokers e) Operational and compliance cost are increasing substantially f) Commodity market is growing at much higher rate and at par with equity and future market g) Currency market were launched and having a good pace. Options have also been introduced. Likely to be a major volume driver in future. h) Broking firms are well- equipped to manage the risk under highly volatile markets i) Substantial part of the volume coming from Algo Trading / System Trading. What are the major challenges faced by the broking industry? A. The major challenges faced by the broking industry are a s follows: a) Getting right marketing employees b) Productivity of the marketing employees c) Keeping the operating overheads low d) Low participation of Retail Investors in Equity Market e) Continuous investment in technology, trading platform f) Competition from foreign firms g) Continuously declining brokerage rate h) Risk Management System to take care of increased volatility in the market What are the major growth drivers of the Indian equity market?

A. The major growth driver of the Indian Equity Market are Favourable Demographic Profile, Strength in Indian Economy delivering consistent growth, Lower investments in Financial Assets vis-vis Physical Assets What opportunities do you see in the Indian broking industry in the next three years? What strategies has the company adopted to explore these opportunities? A. a) There is going to be substantial increase in the volume of commodity and currency segment besides Equity. The moment the Equity market stabilizes , we expect much higher retail participation. b) Cross selling of other financial products to the existing clients through the large network that have been already created by broking houses, will be the main focus area. Other investment products like Mutual Funds, Insurance, Real Estate Units, will play an important role. c) Fund Management with the route of PMS will play a vital role to meet the requirement of different risk profile of the investors, particularly HNIs. It would be advisable to allocate the funds to different asset class through Gold ETFs as well as SPOT Bullion Contracts like E-Gold, E-Silver etc. d) Broking houses need to upgrade the skill set/move up the value chain to tap the HNI segment by delivering wealth management and financial planning services. e) Algo-Trading will play an important role in all markets and sophisticated softwares shall be deployed by such trade clients. Such trading platforms will require high speed trading and will need co-located Servers with the Exchanges. This activity will increase particularly with the introduction of S&P Indices in India which will provide an opportunity to do pair trading vis--vis NIFTY. f) There is likely to be increase in the demand by Indians for investment in foreign Equity markets to tap the best possible returns available as well as to diversify the risk. Do you think there is a need for consolidation in the Indian broking industry? A. We feel that the consolidation is imminent in Indian Broking industry though there is enough scope of growth for business. Many regional brokers who have not added new business segments like commodities, currencies and other financial products may find it difficult to flourish in current business environment. The need for consolidation may increase due to declining brokerage rates and increasing cost on research, technology, compliance, operation, etc.

VARIABLES DERIVED FROM FGD 1: Duration 10 mins WHAT THEY THOUGHT ABOUT THE SCHEME: N no. Of trades free of cost and one time payment WHY IT FAILED: n no. Of trades even without customers knowing from there account pushing them to losses Lack of flexibility Not Possible to invest huge amount upfront Why should i pay in advance when i dont know how much will i trade? Notion of ROIS coming down FAILURE REASONS: Lack of awareness Lack of flexibility Impractical Plan Implementation should be at retail level Promotion failure Best plan is pay as you use Strategies suggested to attract more clients: Attract Hnis Different plans for different customer base Show proper calculation of plan Understand the plan Different plan for different people Failure in Marketing strategy IDEAS: TECHNOLOGICAL ADVANCEMENT CUSTOMER RELATIONSHIP SHOULD BE STRENGTHENED EDUCATE INVESTOR TRANSPERENCY

VARIABLES FROM FGD 2: Duration 6.00 mins

Not marketed well Reason for putting my money in advance Transperency of system Investors knowhow 95% of participant being unaware about the scheme Increased questions about ROI Improper Implementation Not marketed well Lack of Understanding Focus on the plan