CHAPTER

INTRODUCTION
INDUSTRY PROFILE
Background to the stock exchange:
The securities contracts regulation act, 1956 defines it as an association organization or body of
individual, whether incorporated or nor established for the purpose of assisting, regulation and
controlling business in buying, selling and dealing in securities. The working of stock exchange
in India is regulated by the securities contracts (regulation) rule1957 &exchange in India act
1992(SEBI act). Stock exchange is a organized market for trading of stocks and bonds. Such
markets are open to all, but at present only members of the owing association may buy or sell
directly. Members or stock brokers buy and sell for themselves or for others, charging
commissions for their services. A stock may be bought or sold only if it is listed on an exchange
or it may not listed unless it meets certain requirements set by the exchanges board of
governors. There are stock exchanges in all important financial centers of the world. The New
York stock exchange (NYSE) which had a trading volume of $7.3 trillion in 1998 is largest in
the world. Tokyo, London and Frankfurt also have major facilities and euro next, an inter
European. By providing centralized, ready market for the exchange of securities, stock
exchanges greatly facilitate the financing of business of though floatation of stocks and bonds.
However, speculation in stock can sometimes accentuate the instability of an economy.
World scenario
The first public issued security can be traced back to the 14
th
century in Venice where the
government made the first known issue of bonds. Merchants and land owners as investments
purchased these government securities. In and around 1950s in inland, traders in the shares of
early companies would commonly meet in Jonathans coffee house to trade shares and make
business deals. Early share bids and offers were written on the coffee house walls and the trading
process was highly unregulated with insider trading forming the basis for most investment
decisions. By 1773, trading clubs had formed, and 1801 a group of traders raised 20 thousand
pounds to build the London stock exchange in chapel court. The similar process occurred in
America. By the early 1790s many merchants had began trading shares
By late1990s, most of the stock exchanges had been automated and the open outcry
method of trading was the thing of past. Most stock exchange began to use computers to replace
floor traders. Floor traders take phone and computers orders from brokers and negotiate a trade
with stock specialist at trading stations on the trading floor. The internet orders placed by the
clients are first processed and authorized through the stock brokers computer system before
being automatically placed on the stock exchanges computer systems.
SECURITIES MARKET
Securities Markets is a place where buyers and sellers of securities can enter into
transactions to purchase and sell shares, bonds, debentures etc. Further, it performs an important
role of enabling corporate, entrepreneurs to raise resources for their companies and business
ventures through public issues. Transfer of resources from those having idle resources (investors)
to others who have a need for them (corporate) is most efficiently achieved through the securities
market. Stated formally, securities markets provide channels for reallocation of savings to
investments and entrepreneurship. Savings are linked to investments by a variety of
intermediaries, through a range of financial products, called Securities.

SEBI and its role
The Securities and Exchange Board of India (SEBI) is the regulatory authority in India
established under Section 3 of SEBI Act, 1992. SEBI Act, 1992 provides for establishment of
Securities and Exchange Board of India (SEBI) with statutory powers for (a) protecting the
interests of investors in securities (b) promoting the development of the securities market and (c)
regulating the securities market SEBI has been obligated to perform the aforesaid functions by
such measures as it thinks fit





COMPANY PROFILE
Financial world a stock broking company was established in by Mr. STEPHEN
MUKKATH in the year 2003, a NRI from Canada. Finance world has followed a consistent
growth path and has established itself as one of the leading broking houses of the country with
the support and confidence of its clients, investors, employees and associates. Company pride it
selves on its independence and continuous service since inception.It is a stock broking company,
with exposure to shares, Mutual funds and Insurance. Our company is driven by a group of
Management Professionals with specialization in Financial Management with about 6 years
experience in the financial Market in India.
The growing Indian financial market demands constant up gradation of knowledge and
technology. With the financial markets being systematic and competitive, the need for expertise
has increased rapidly. Few would have believed the current position of the market a few years
ago and the same can be said for the future. The pace at which the economy is growing indicates
very clearly that the future is bright for the financial markets for the next many years.
Business principles
Our clients' growth is our primary objective. We believe that our clients growth is
strongly correlated to our growth.We believe that our clients deserve the best. Our idea is
not simply offering a product or service, but it is building a relationship with clients
based on trust, reliability, understanding and respect.
We believe that righteousness is very important in every sphere of life, including
business. We therefore strive to be open and honest with ourselves, our colleagues and
our shareholders. The core assets of our business are our people, customers, capital and
reputation. We are dedicated to complying fully with the bye- laws, rules and ethical
principles that govern us. Our continued success depends upon constant adherence to this
standard.
We offer our people the opportunity to move ahead. We foster an environment of respect
and inclusiveness amongst our people.
NATURE OF THE BUSINESS
Finance world is one of the leading providers of broking services to individuals and
institutions in the equity, derivatives and commodities segment in India. Finance World
proactively delivers the full depth and breadth of our broking services to clients through a
network of more than 15 branches and franchises across India.
Excellent research support, state-of-the-art tools, smart risk management, capital
requirements, excellent order routing and efficient operational practices are key components of
our offerings. We provide superior pre- and post-trading services to clients through robust
technical architecture.


COMPANY VISION, MISSION AND QUALITY POLICY
Vision
We believe in setting standards fro quality and stakeholder satisfaction and strive to
create wealth for customer.
Mission
Our mission is to make you happy. Reach your financial goals with our range if
investment products ans services, unmatched research and leading edge tools.

Quality policy
Finance world Quality Policy Statement
ISO 9001:2008
At finance world, our aim is to continue to achieve high levels of satisfaction for our
clients and help them achieve their financial goals through right investment advice and excellent
service. It aims to make financial products easily accessible and understandable to all. We are
committed to delivering the highest quality solutions to meet our clients investment needs.
To realize this, it is the policy of the Company to continually review and update our
processes, improve the competence of human resources and effectiveness of quality management
systems, ensure compliance with all regulatory requirements, optimize technology and
infrastructure, thereby enhancing customer satisfaction.

PRODUCTS AND SERVICES
Equity (NSE and BSE)
Derivatives
Online Trading (NSE, BSE, F&O, IPO)
Commodities (NCDEX, MCX)
Depository (NSDL, CDSL)
Mutual Funds and IPO
HNI Services (PCG and PMS)
AREA OF OPERATION
Finance world being a private brokerage firm operates well in the national market. The
company branch offices are scattered all over the country (India). The branches across nation are
in Mumbai, Bangalore, Mysore, Kolar, and many other places. The company commenced its
operation in 2003 and exposed its trading facility in Equity, Derivatives, and commodities.



OWNERSHIP PATTERN
Finance world is a private organization founded by Mr. Stephen Mukkath in the year
2003. Finance world is a private limited company completely owned by the founder. Its a
private limited company having master franchising from arihant capital for south indian
operations and completely own by Mr.Stephan Mukkath.

COMPETITORS
The major competitors are-
1. ICICIDirect.
2. Share khan.
3. India bulls.
4. Motilal Oswal Securities.
5. HDFC Securities
6. Reliance Money and Etc.
7. 5paise
8.India Infoline
9. Edliweisse
10.Angle Broking etc


INFRASTRUCTURE FACILITIES
Research facilities
Finance world customer get access to a wide range of research resources and tools to help
them make right investment decisions. Its team of finest financial analysts bring customer
intensive research reports on how the stock markets are faring, winning investment ideas, entry
and exit strategies, sector and economic outlook. It provide fundamental, technical, mutual fund
and derivative research reports among others.
Training facilities
At finance world, group of terminal operator provide the training for individual investor
for their own trading activity.


ACHIEVEMENT AND AWARDS

Finance World has ISO 9001 and ISO 2001 certification signifying its reputation
About its quality of service towards its customers .

finance world received Best Database Management Solutions in stock brokering , from
Cybase for its excellence in data management process.

Finance world has recently adopted ODELIN SOFTWARE for its applications of stock related
activities like analysis and research.

Transactional Work Flow Model:

places orders or

gives instructions



executes the order given by the client









THE CLIENT


THE DEALER
BUY SELL
The client makes the payment
either directly via online transfer
or pays by cheque to the dealer.
The dealer takes the delivery of
the shares to be sold from the
client.
The A/cs Back Office transfers
the amount to the sellers
broker.
The dealer receives the amount of
the shares sold from the buyers
broker.
The A/cs
back office
credits the
amount in
the sellers
trading a/c,
or pays out a
cheque.
Simultaneously,
the depository
then makes the
delivery of the
shares to the
buyers broker.
The shares are received from the
seller, to the Brokers pool
account, from the sellers broker.
Transaction is settled.
FUTURE GROWTH AND PROSPECTS
Expansion plans
Finance world having master franchise from Arihant Capital for the southern parts of
India for Andhra Pradesh, Tamil Nadu, Goa, Karnataka ant Kerla and is in expansion plan after
this economic downturn
Finance world aims to expand its branches all over the country to minimum of 100 in numbers
with in the end of year Mar-30
th
-2011 and by the end of 2015 it has a plan to open up to650
branches for stock brokering and investment advisors for both individuals and High Net Worth
Individuals along with Corporate Investments.
It has a diversified business plans in the area of Private Equity, Mergers and Acquisitions along
with Recruitment process in finance industry that is expected to grow.












CHAPTER 2

MCKINSEYS 7-S MODEL:

Introduction:
McKinseys 7S Framework is developed in late 1970s at the McKinsey and Company which is a
reputed Management Consultancy firm in US. The model is based on the theory that, for an
organization to perform well, the seven elements (7S); Strategy, System, Structure, Style, Skills,
Staff and Shared Values; need to be aligned and mutually reinforcing.

Strategy
Adopted sub broker ship for expansion of business in order to grow fast in this fast moving
industry after recession. To Venture foot prints using existing customers and also to attract new
customers through its brokers and sub brokers. Company has focused on diversified portfolio
with more number of financial products. Measures have been taken to convert it into private
limited and technology up gradation for cost effectiveness in long term

Structure
Finance World is a decentralized system of organization structure where in it has Decoupled
every department according to its financial products and services. Every department has a
manager associated with him is responsibilities and authority delegated for decision making for
the benefit of the company. Every department works like independent divisions of the company
as sole and separate units.
Assistant Managers for different financial products as well as terminal people along with
marketing executives report to him periodically and tasks are assigned to every person in the
department including manager for co-ordinate activities well.

System
Finance world follows a clearly well defined system for itc co-ordination activities also the
Management information system(MIS) adopted in computerized form identifies the problems in
between the departments and managing the problem with interrelated processes. All the
departments are computerized which helps to interact with one department to another also
automated.
Each employee will get compensation and benefits depending upon client investment from his
side and company follows open door policy where each individual employee are free to take his
own decision for the well fare of customers.

Style
Since Top-level management has adopted participative style of management, top level
management has the ability to engage all work groups in co-ordinate manner, which enhances
productivity in all the departments.
Style of leadership refers to the manner in which an individual uses his or her talents, values,
knowledge, to lead and relate to others. company is having number of skilled employees, which
jointly and effectively produces the end result. Most of the employees are multi-skilled. This
makes the company to work without any intervention. The employees in the manufacturing
department are skilled to their own operation. The supervisors in the administrative department
are having high attitude to motivate the employees to achieve the organizational goals.
The middle level management in the company are highly dedicated. All the middle level
management people are professionals and are capable of taking decision whenever it is required.

Staff
Company has around 180 employees across all branches in india for their operations. In
specific R & D team consists of around 15 employees who constantly analyze the market
with technical tools to know about the market movements and is the least number of
employees in that branch. It as well experienced terminal operator of around 60 working as
brokers and sub brokers. Marketing department has 105 employees for clients interactions,
looking for investors and High Net Worth Individuals along with Corporate investors.


Skills
Company having highly qualified and skilled staffs working together to achieve the
organizational goal. From the day one, each employee is to develop some of the job required
behavior skills such as: Communication skills, Reporting skills, Learning and listening skills,
Leadership skills, Analytical skills , Personality development, Continuous improvement and
Zero error Control of wastage and re-work Companys marketing department is well versed
and provide good customer service Company terminal operator are well experienced and they
know how to trade logically Marketing department personal as got good marketing skills and
Employees have good business development skills.






Shared values

Customer satisfaction is centrally shared value of the company and continual up gradation of
technology. Respecting individuals across the organization, Optimizing the competence of
our people through training and development. Motivating our people through involvement &
empowerment. Working to designed systems & procedures. Respect & care for all our
people. Professional expertise, Regional standard technology streamlined efficiency of
service, meticulous cleanliness, courteous personal attention etc are certain highlights of the
company.












CHAPTER 3

SWOT ANALYSIS

SWOT analysis is an auditing of an organization and its environment. It is the analysis of
organizations strength, weakness, opportunities and threats. Strength and weakness are internal
in an company; opportunities and threats are external of the company.

Strengths-
1. Individuals with strong analytical, logical brain, imagination, pleasure in solving
complicated problems, tact in dealing with clients/ colleagues, business sense.
2. Ability of individuals to visualize the implication of present policies and actions
for future in practical terms, and a fair for figures.
3. Highly sophisticated and advanced research team makes it possible for the clients
to earn good returns and people driven relationship.
4. Well experienced and dedicated employees in organization.


Weakness-
1. very Few global reach
2. Less physical presence of terminals
3. Operation is carried out mainly in south India.
4. Lack of funds for advertisement



Opportunity-
1. Around 2% of Indian total populations are invested in stock market and it as been
anticipated that it rises to 5% by next year.
2. Decrease in brokerage charges, attracts large number on investors.
3. Due to inflation, increase in price of commodities increases the trade volume of
commodity market.

Threats-
1. Increased competition by rival firms and entry of new players to the market.
2. Disinvestment by customers.
3. Decrease in brokerage charges by other players.
4. Customer retention is regarded as most important due to their fluctuations.












CHAPTER 4

LEARNING EXPERIENCE

The organization has helped me to understand my subject matter both conceptually and
practically. The atmosphere was extremely cooperative. The entire term of the project was a
learning experience in the true sense because for the first time I was exposed to the competition
in the market. I have learnt that a lot more is demanded out of a novice student and that I as a
student I need to learn a lot more to be capable enough to compete in the market.
Some of the few things that I got learn are:
Stock watching and its trading in organization.
Use of technical analysis in practical applications
Need of qualities of a trader.
The internship gave me practical exposure to the stock market and how an organization
functions I have also learnt that successful trading takes time, patience, discipline, proper risk
management and specialized knowledge.
Learning from market:
Stock market being highly volatile market, one should invest carefully.
One should seriously consider technical factors but even as well a fundamental factors while
trading or investing long term
A investor should be ready to even accept losses since one cannot always achieve profit.
Trading is a practice that requires knowledge, skill and tremendous amount of patience.
Prices of the stocks are affected by various external factors.

The software used for trading is Odin clients. A highly sophisticated software called Spider
software is used for analyzing technical charts in greater depth. Intra-day trading closes at 3.30
whereas commodity trading closes at 11.30 pm equity trading is carried out on BSE, NSE and
other stock exchanges whereas commodity trading occurs on MCX and NCDX exchanges.