A PROJECT REPORT

ON

CLIENT INTERACTION,
ANALYSIS
&
DEALING IN STOCK MARKET
FOR PRODUCT OF
MOTILAL OSWAL SECURITIES LTD.
SUBMITTED TO:

Singhad institute of business administration and research

Kandhwa, PUNE
PROJECT GUIDE:

Deepali kulkarni
SUBMITTED BY:

GIRIMALLIKA DEURI(PGDM, FINANCE)

YEAR: 2009-2011

(A)

DECLARATION
I, the undersigned Girimallika deuri hereby declare that the Project
Work entitled client interaction, analysis & dealing in stock
market for
Product Of Motilal Oswal Securities Ltd. undertaken during
the
Period from 21st May 2010 to 10th August 2010, is the result of my
Own efforts and the same has not been previously submitted to any
Examination of the singhad institute of business administration and
reserch, Pune or any other
University.
Signature
Date:

18th August 2010

Place:

Pune

(GIRIMALLIKA DEURI)

(B)

ACKNOWLEDGEMENT
I would like to express my sincere thanks courses for giving me an
opportunity to work with Motilal Oswal Securities Limited for my
Summer Internship Program. I would also like to thank Mr. Hemal Raval,
Business Development Manager of Motilal Oswal fo for his guidance
during the course of my project for his suggestions which has lead to a
successful completion of my Summer Internship Program. Last but not the
least I would also like to acknowledge contributions of various official
websites and books named in the references for helping me with the data
collection and analysis which have provided me with the relevant
information for me to successfully complete my Project Report.
GIRIMALLIKA DEURI
(C)

CONTENTS
SR. NO

PARTICULAR

1.

Introductory profile of company &the

2.

area which it covers.

Introduction To Project subject &

3.

Products
Research Methodology

4.

Market Segmentation

5.

Market Target

6.

Market Positioning

7.

Comparative Study/Response

8.

SWOT Analysis

9.

Conclusion

10.

Suggestion

11.

Bibliography

12.

Annexure

PAGE NO.

(D)

Introductory Profile
of the Company
& the area which it
covers

Motilal Oswal Securities Ltd.

Motilal Oswal Securities is a leading research and advisory based stock

broking house of India, with a dominant position in both institutional and
retail broking. Asia money Brokers Poll 2005 has ranked us the best Indian
brokerage firm. There are various other categories where we have been rated
number one most independent research, sales and service etc by the
Brokers Poll.
The company was founded in 1987 as a small sub-broking unit, with just
two people running the show. Focus on customer-first-attitude, ethical and
transparent business practices, respect for professionalism, research-based
value investing and implementation of cutting-edge technology have enabled
us to blossom into an almost two thousand-member team.
Our institutional business unit has relationships with several leading foreign
institutional investors (FIIs) in the US, UK, Hong Kong and Singapore. In a
recent media report we were rated as one of the top-10 brokers in terms of
business transacted for FIIs.
We provide advice-based broking (equities and derivatives), portfolio
management services (PMS), e-Broking, depository services, commodities
trading, IPO and mutual fund investment advisory services.
Our unique Wealth Creation Study, authored by Mr Raamdeo Agrawal,
Managing Director, is now in its eleventh year. Investors keenly await this
annual study for the wealth of information it has on how companies created
wealth during the preceding five years.
The organization finds its strength in its team of young, talented and
confident individuals. Qualified professionals carry out different functions
under the able leadership of its promoters, Mr.Motilal Oswal and
Mr. Raamdeo Agrawal Stringent employee selection process, focus on
continuous training and adoption of best management practices drive the
quest to achieving our Vision.

MOSt Vision

MOSt Guiding Principles & Core Values

Customer interest is paramount
Ethical and transparent business practices
Respect for professionals,associates and business partners
Research based value investing
Cutting edge technology to ensure world-class customer service
People behind the organization
Mr. Motilal Oswal
Chairman and Managing Director

Mr. Motilal Oswal is the promoter of Motilal Oswal Securities Ltd. He is an member of
Institute of Chartered Accountants of India and started the business along with the copromoter Mr. Raamdeo Agarwal in 1987.
Business Administration is his forte, Honesty, transparency and client goodwill form the
core of his business practice.
Service is required in everything, in research, in execution and in settlement. It is
going to be the key to survival. If you give good service and value to your clients, it will
translate into good business.
This has been a strong belief of Mr. Motilal Oswal and he has not only practiced it
himself but also made efforts to inculcate similar values in the employees of the
organization.
He had been elected as a Director of BSE and joined its governing board in 1998. He is
currently a member of various committees of CDSIL and SEBI.

Mr. Raamdeo Agrawal

Joint Managing Director
Mr. Raamdeo Agrawal is the co-promoter of Motilal Oswal Securities Ltd. A member of
the Institute of Chartered Accountants of India & an equity research stalwart, he is the
man behind the strong research capability at MOSt.
He is respected by all in the research and broking industry for his valuable insights on
issues related to equity research. His firm belief in Value-Investing, as practiced by the
legendary Warren Buffett and Charlie Munger, forms the core of MOSt investment
philosophy.

Management Team
MOSt management team is regularly engaged in finding ways to improve operational
efficiencies and customer satisfaction.
You will find CAs, CFAs, ICWAs, CSs, MBAs and IT professionals managing crucial
functions, to bring you best products and services - from research & advice to trade
execution & settlement. At MOSt we practice meritocracy and each of the team members
is provided extensive training.

Training & Manpower Development

MOSt conducts various training and development programs regularly to enhance the
capabilities of its team. As much as 5% of the salary bill is spent on such programs,
which is amongst the highest for a broking organization in India. MOSt is truly a learning
organization with lead being taken by the Directors, who regularly participate in top
management learning programs like Strategic Management Program at Indian School of
Business, Hyderabad, Strategy Summits with Management Gurus like Tom Peters and Dr.
Lester Thurow, Dean, Sloan School of Management, (MIT) and Brand Management
Seminar by Al Ries etc.
MOSt History & Milestones
The story of MOSt goes back many years, when Mr. Motilal Oswal and Mr. Raamdeo
Agrawal met each other as students in a Mumbai suburban hostel in the early eighties.
Both the young chartered accountants hailing from a rural & an unpretentious
background had a common dream viz 'to build a professional organization with strong
value systems, to provide reliable & honest investment advice to investors'. Thus was
born their first enterprise called "Prudential Portfolio Services" in 1987.

Introduction to Project
Subject
&
Products

Motilal Oswal Securities Ltd. was founded in 1987 as a small sub-broking unit, with
just two people running the show. Focus on customer-first-attitude, ethical and
transparent business practices, respect for professionalism, research-based value investing
and implementation of cutting-edge technology has enabled us to blossom into an almost
2000 member team.
Today we are a well diversified financial services firm offering a range of financial
products and services such as

Wealth Management

Broking & Distribution

Commodity Broking

Portfolio Management Services

Institutional Equities

Private Equity

Investment Banking Services and

Principal Strategies

We have a diversified client base that includes retail customers (including High Net
worth Individuals), mutual funds, foreign institutional investors, financial
institutions and corporate clients. We are headquartered in Mumbai and as of
December 31, 2014, had a network spread over 519 cities and towns comprising
1,727 Business Locations operated by our Business Partners and us. As on December
31, 2014, we had 829,974 registered customers.

Research is the solid foundation on which Motilal Oswal Securities advice is based.
Almost 10% of revenue is invested on equity research and we hire and train the best
resources to become our advisors. At present we have 30 research analysts researching
over 200 companies across 20 sectors. From a fundamental, technical and derivatives
research perspective, Motilal Oswal`s research reports have received wide coverage in the
media. Our consistent efforts towards quality equity research have reflected in an increase
in the ratings and rankings across various categories in the AsiaMoney Brokers Poll over
the years

Our Business Streams

Our businesses and primary products and services are:
Wealth Management
Financial planning for individual, family and business wealth creation and management
needs. These are provided to customers through our Wealth Management service called
Purple
Broking & Distribution services

Equity (cash and derivatives)

Commodity broking

Portfolio Management Services

Distribution of financial products

Financing

Depository Services

IPO distribution

We offer these services through our branches, Business Partner locations, the internet and
mobile channels. We also have strategic tie-ups with State Bank of India and IDBI Bank
to offer our online trading platform to its customers.
Commodity Broking
Through Motilal Oswal Commodities Broker (P) Ltd our fully owned subsidiary; we
provide commodity trading facilities and related products and services on MCX and
NCDEX. Besides access to the best of research in the form of Daily Fundamentals &
Technical Reports on highly traded commodities, our clients also get access to our
exclusive Customized Trading Advice on both the trading platforms. We offer these
services through our branches, Business Partner locations, the internet and mobile
channels
Portfolio Management Services
Motilal Oswal Portfolio Management Services offer a range of investments solutions
through discretionary services. We at Motilal Oswal have helped create wealth for our
customers through our Portfolio Management Services. Our knowledge of the markets
together with our understanding of our customers and their risk profiles has helped us
design a range of portfolio offerings for our clients. These include the Value PMS, Bulls
Eye PMS, Trillion Dollar Opportunity and Focused Portfolio Series I. As of June 30th,
2008, the assets under management of our various portfolio schemes stood at Rs.6.92 bn.
Motilal Oswal group has applied to the regulatory bodies for a license to operate as a
Domestic Asset Management Company (Mutual Fund) and we expect to begin operations
soon.
Institutional Equities
We offer equity broking services in the cash and derivative segments to institutional
clients in India and overseas. These clients include companies, mutual funds, banks,
financial institutions, insurance companies, and FIIs. As at March 31, 2008, we were
empanelled with over 300 institutional clients including 191 FIIs. We service these clients
through dedicated sales teams across different time zones.
Investment Banking
We offer financial advisory services relating to mergers and acquisitions (domestic and
cross-border), divestitures, restructurings and spin-offs through Motilal Oswal Investment
Advisors Private Ltd. (MOIAPL)
We also offer capital raising and other investment banking services such as the
management of public offerings, private placements (including qualified institutional
placements), rights issues, share buybacks, open offers/delistings and syndication of
debt and equity.
Private Equity
Potential Unlocked - Growth Uncapped

Motilal Oswal Private Equity Advisors Private Ltd is in the business of managing and
advising funds in the Growth Capital as well as the Real Estate space. Motilal Oswal
Private Equity Advisors Private Ltd spots & invests in mid market enterprises in India
with superior growth potential to generate alpha returns for its various funds under
management.
The strong knowledge based investment culture within the Motilal Oswal Group of
identifying companies with sustainable business models and a strong management team
with an entrepreneurial mindset has helped Motilal Oswal Private Equity Advisors
Private Ltd identify companies which we believe can deliver good returns for our
stakeholders. Motilal Oswal Private Equity Advisors Private Ltd also has a professional
team with a grounded understanding of the Indian business environment and the Indian
way of doing business. It uses this expertise to advise mid market enterprises, and helps
them to scale-up to the next level of growth. This coupled with infusion of capital in these
businesses at the right stage, helps in creating superior returns.
Motilal Oswal Private Equity Advisors Private Ltd is currently managing and advising
the following funds:
1. Private Equity Growth Capital Fund for mid-market companies
550 crore India Business Excellence Fund (IBEF)I fully deployed
900 crore India Business Excellence Fund (IBEF) II in the process of
raising funds
2. Real Estate Fund focusing on residential projects in metros and tier-1 cities
200 crore India Realty Excellence Fund (IREF) I substantially deployed
The track record established through successful management of the above funds gives us
the confidence to grow the private equity businesses to a much bigger scale in the coming
years.
Principal Strategies Group
For effective management of treasury operations and to capitalize on market
opportunities, the Group has set up a 30 member team which would be responsible for
effective deployment of funds into different trading and arbitrage strategies.

Research
Methodology

Focus on Research
Research is the solid foundation on which Motilal Oswal Securities advice is based.
Almost 10% of revenue is invested on equity research and we hire and train the best
resources to become advisors. At present we have 28 equity analysts researching over 27
sectors. From a fundamental, technical and derivatives research perspective; Motilal
Oswal's research reports have received wide coverage in the media (over a 1000 mentions
last year). Our consistent efforts towards quality equity research has reflected in an
increase in the ratings and rankings across various categories in the AsiaMoney Brokers
Poll over the years
Our unique Wealth Creation Study, authored by Mr. Raamdeo Agrawal, Managing
Director, is now in its 13th year. Investors keenly await this annual study for the wealth of
information it has on the companies that created wealth during the preceding five years.
Strong Management Team
The organization finds its strength in its team of young, talented and confident
individuals. Qualified professionals carry out different functions under the able leadership
of its promoters, Mr. Motilal Oswal and Mr. Raamdeo Agrawal. Our talented pool of
people comprises qualified and experienced professionals with an established track
record. We believe that our management's entrepreneurial spirit, strong technical
expertise, leadership skills, insight into market/customer needs provide us with a
competitive strength which will help us implement our business strategies.
Motilal Oswal Financial Services Ltd. (MOFSL) is a well-diversified, financial services
company focused on wealth creation for all its customers, such as institutional and
corporate clients, HNI and retail customers. Our services and product offerings include
equity broking, commodity broking, distribution of third party products, investment
banking and venture capital management.
Mr. Motilal Oswal and Mr. Raamdeo Agrawal laid the foundation for MOFSL and
initially conducted business as a sub-broking firm. Thus, began the expedition of
building a professional organisation with strong value systems, to provide investment
advice to investors.
Today, Motilal Oswal Financial Services Ltd. is a well-established brand among retail
and institutional investors in India, with a presence in over 1430 business locations across
over 430 cities.
From a sub-broking firm, Motilal Oswal Financial Services Ltd. has today become a solid
financial services company straddling a spectrum of businesses in the financial services
space. These businesses include Wealth Management, Institutional Equities, Investment
Banking and Venture Capital Management.
Motilal Oswal Financial Services Limited is the holding company of the following five
subsidiaries:

Market Segmentation

Market Target

Market Positioning

2006 2005 2004 2003

1990 1987

2002

2001 2000 1999 1998 1996 1995 1994

Places 9.29% with two leading private equity investors - New Vernon Private
Equity Limited and Bessemer Venture Partners
Issues 14% of companies equity to employees as ESOPs
Acquires a leading south Indian brokerage firm - Peninsula Capital Markets
Enters Private Equity and plans entry into Investment Banking businesses
Value PMS gives 390% returns to its investors between Feb 2003 and March
2006
2006
Relaunches its e-Broking service through a nationwide campaign. First
advice-based online trading proposition in the Indian markets
Another milestone in distribution - 1017 outlets, 375 cities, serving 1.61 lakh
clients
Has a 1400 member team working to achieve the company's vision
Asiamoney Brokers Poll 2005 rates Motilal Oswal Securities - Best Local
Brokerage, Most Independent Research House, Best in Sales and Service
Launches two new Portfolio Management Schemes - Value Hedging for
derivatives and Discover Value for the Rs5 lakh to Rs50 lakh category
2005
Acquires local brokerage Gayatri Capitals from Andhra Pradesh and Varghese
from Bangalore
Deepest distribution in the stock broking segment with 700 outlets in 320
cities and 1.2 lakh clients
Presence expanded to 270 outlets in 150 cities and 20 states
Value PMS delivers a whopping 160% post tax returns for the period ended
2004 April 2004
Bulls Eye PMS - A momentum based PMS launched
Start of the Solid Research Solid Advice campaign
MOSt Portfolio Management Services launched with Mr. Raamdeo Agrawal
as the Portfolio Manager. Uniquely structured performance related fees.
Inquire team is successful in capturing the uptrend in Banking, Auto and
Infrastructure sectors.
2003 15,000 Depository clients acquired.
9 own branches setup at 7 cities to provide Equity Advisory Services. More in
the pipeline.
150 outlets in 110 cities across 18 states & one Union Territory in India
manned by 1000 people servicing over 15,000 Retail and Institutional Investors.

 Mr. Navin Agarwal, Head of Equity Research & Institutional sales, is inducted
in the Board of Directors
MOSt consolidates its retail operations & upgrades its IT / Back Office
infrastructure to cater to its growing network of branches, Franchisees and
2002
Channel Partners.
Retail network completes coverage of 100 cities in India.
Direct servicing of HNI clients is initiated.
10,000 Depository clients acquired.
Legendary marketing guru Shunu Sens services taken to revitalise retail
marketing strategy and branding efforts.
2001
Starts offering Derivatives products and advisory services on both BSE as well
as NSE
Both Mr. Motilal Oswal and Mr. Raamdeo Agrawal receive Rashtriya
Samman Patra from Central Board of Direct Taxes for being amongst the top 50
tax payers in India from FY94-FY98
2000 Acquires its 100th Franchisee / Channel Partner and emerges as a leading
player in the Indian Broking Sector
Becomes a Depository Participant of Central Depository Services Limited
(CDSIL)
Mr. Raamdeo Agrawal starts attending legendary billionaire investor Warren
Buffetts Annual General Meetings of Berkshire Hathway Inc. He still continues
to attend it every year.
The Wealth Creation Study started in 1996 culminates into Wealth Creation
Seminar and Awards function in 1998.
First Stock Broking house to brand its services as a research and advise based
broker.
1999
Wealth Creation Campaign started.
www.MotilalOswal.com launched. First broking house in India to go on the
web.
Becomes a Depository Participant of National Securities Depository Limited
(NSDL).
Inducts Mr. Ivan Mathias, former country head of Watson Wyatt Worldwide,
on its Board to Directors to shape HR initiatives.
1998

Mr. Motilal Oswal joins the Governing Board of The Stock Exchange,
Mumbai.

1996

Wealth Creation Study started. First of its kind study initiated to identify
biggest and fastest wealth creating companies in Indian Stock markets.

1995 Motilal Oswal gets incorporated as Motilal Oswal Securities Ltd.

1994 MOSt acquires NSE Membership and plans for major expansion of its retail

network.
Inquire (Indian Equity Research) is formally created at a 2500 sq. ft office in
South Mumbai with bigger and better quality infrastructure than the corporate
office. Since then nearly 20% of revenue is allocated to research. First Domestic
Stock broking house to have such a strong Research focus
Motilal Oswal enters Institutional Broking business.
After just three years in the business, Motilal Oswal is formed through
1990 acquisition of membership on The Bombay Stock Exchange (BSE). Three more
memberships taken in later years.
Mr. Motilal Oswal and Mr. Raamdeo Agrawal lay the foundation of a great
1987 partnership by starting a sub-broking firm. The venture stands out from the rest
due to their approach of Research-based broking even when sub-brokers.

Comparative Study
&
Response

SWOT Analysis

Conclusion

Suggestion

Bibliography

Annexure