c


c 

The Indian financial services industry is witnessing up the trend, with strong growth
catalysts coinciding at an appropriate time. The growths catalysts are categorized into cultural,
demographic, economic and political developments have changed the perception of India as an
investment destination. With a GDP growth of 7.75% in 2009-10 India is one of the fastest
growing free market democracies in the world. A savings rate of 24.2% and service sector
contribution of more than 50% akin to the developed nations is improving the country¶s rating in
the world investing community.

The evolution in India¶s demographic setup with a median age of 24 years and higher
consumption expenditure is expected to have a virtuous cycle effect by improving economic
growth and per capita income which would result in total gross domestic savings of the country.
The deposits have reduced along with getting canalized to other investment avenues like equities
and insurance products.

Indian economy is passing through a phase wherein a large proportion of its population
will be in the 25-35 age groups. This segment will have potential to generate huge and rising
stream of saving and investments.

c
c 
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The Indian financial sector plays an important role in canalizing household saving to
corporate as well government sector primarily for investment in process of liberalization began
in 1991, the Indian financial services sector has instruments and relaxation of investment limits
for Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII) has helped
broaden the financial services sector.

There has been an introduction of new financial of new financial products over the years.
Many sectors have been opened up for new private players. The entry of new players has
resulted in a more sophisticated range of financial services being offered corporate and retail
customers which has forced the existing players to upgrade their products and distribution
channels. This is particularly witnessed in the non-banking financial services sector such as the
brokerage industry.
 

c  c

Organized financial markets have existed in India for more than a century. Today markets
of varying maturity exist in equity, debt, commodities and foreign exchange. Indian financial
market is one of the oldest in Asia. Its history dates back to nearly 200 years ago.

The East India Company was the dominant institution in those days and business in its loan
securities used to be transacted towards the close of the eighteenth centuries.

Financial market has been divided into two parts:

?  !

Financial market is sometimes classified as (direct) and secondary (indirect) market the
primary market deals in the new financial claims or new securities and therefore they are they are
also known as the new issue market. On the other hand secondary market deals in securities
already issued or existing or outstanding.

h? !"#

Very often financial market are classified as money market and capital market, although
there is no essential differences between the two because both perform the same function of
transferring resources to the procedures. Capital market deals with a long-term prospectus
whereas money market deals with a short-term prospectus.

1.? E.g.: of capital market- Stock market, Government bonds.

2.? E.g.: of money market- Treasury bill, Commercial bills.

The financial market plays a dominant role in many economies and government around the
world has long deemed it necessary to regulate certain aspects of these markets. The government
has greatly influenced the development government, market and institutions tend to behave
interactively and to affect one another action in certain way. Thus, it is not surprising to find that
a market¶s reaction to regulation often prompt a new response by the government, which can
cause the institution participation in a market to change their behavior further and so on.
 FINANCIAL SYSTEM

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The Indian capital markets have witnessed a significant transformation over the last few
years. The establishment and empowerment of SEBI, screen-based nationwide trading,
dematerialization and electronic transfer of securities, rolling settlement and derivatives trading
have greatly improved both the regulatory framework and efficiency of trading and settlement.
Recently, nation - wide on-line multi commodity exchanges have also been set-up there by
giving investors a wider range of instruments in invest in. The Indian stock exchanges have over
9000 listed companies. The average daily turnover of the BSE and the NSE has steadily
increased over a period of time. Currently the average daily turnover of both the exchanges is
approximately Rs.71,000 million in the cash segment.

c   

After the liberalization of the Indian insurance sector, many global insurance players
have entered the Indian market in the form of joint ventures with Indian companies. Some of the
prominent names being Prudential (UK), Standard life(UK), Sun Life Financial (Canada), AIG
(US), Group ING (Netherlands), Max New York, Aliens Old Mutual plc, amongst others.

The entry of new players and increased completion led the market leader life insurance
corporation (LIC) to responding by launching new products and improving service standards.
India, with a vast middle class population presents a huge untapped potential for insurance
players. Saturation of markets in many developed economies has made India an attractive
destination for global insurance majors.

cc c 

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The capital market essentially has four types of participants viz:

O? Issuer of securities
O? Financial intermediaries
O? Regulator and
 O? Investors

The Issuers and Investors are the consumers of services rendered by the intermediaries
and the investors are consumers (they subscribe for/ and trade in securities) of securities issued
by this Issuer as well. Those who deal in securities need an assurance that it is safe to do so and
the laws framed in relation to the capital market, which in turn are enforced by the regulator,
provide this reassurance. The regulator exercises control over the market and

Market practices through rule, regulation and guidelines for market participants and
intermediaries. Intermediaries play an important role in the capital market by providing a critical
link between the various market participants. The level of intermediation and efficacy of the
regulatory framework often determine the efficiency of the market.

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The distribution of financial products has changed with the advent of private players into
the market. Newer and more innovative channels of distribution like the internet are now seen.
The players in distribution are

a.? Small local unorganized outlets

b.? Established distribution companies with pan India presence
c.? Distribution arms of banks/finance companies

As financial products become more complex, the role of financial advisor becomes
critical. The other emerging trend is the One Stop concept instead of dealing with multiple
specialists. Customers tend to have strong relations with one distributor who can satisfy all their
investment need from mutual funds to bonds to fixed deposits.


!!% &'("!')*#!"

 India is predominantly an agrarian economy. In spite of this, until very recently they did
not have world class multi commodity exchanges. The existing exchanges they are all single
commodities exchanges where trading was conducted using the open outcry system realizing the
potential, the government issued notifications for withdrawing all prohibitions and opening up
forward trading in all the commodities.

The emergence of three nation-wide commodity exchanges (MCX, NCDEX and NMCE)
has increased the awareness in commodities trading. The volume in these exchanges has
increased rapidly since their inception. Some of the commodities where trading takes place is
Gold, Silver, Copper, Caster Seed, Gram (China), Soya oil, Sugar, and Rubber etc.

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The model of Five competitive forces was developed by Michael E. Porter in his book
³Competitive Strategy: Techniques for analyzing industries and competitors´ in 1980. Since that
time it has become an important tool for analyzing an organization industry structure in strategic
processes.
Porter¶s model is based on the insight that a corporate strategy should meet the opportunities and
threats in the organizations external environment. Especially, competitive strategy should base
on and understanding of industry structures and the way they change.

Porter has identified five competitive forces that shape every industry and every market.
These forces determine the intensity of competition and hence the profitability and attractiveness
of an industry.

The objective of corporate strategy should be to modify these competitive forces in that
improve the position of the organization. Porter¶s model supports analysis of the driving forces
in an industry. Based on the information derived from the five forces Analyses Management can
decide how to influence or to exploit particular characteristics of their industry.

&
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!  

The Five Competitive Forces are typically described as followed:

a)? The threat of new entrants:

1.? /Economies of scale: Does the large volume firms enjoy significantly lower
production cost per unit?
2.? Product differentiation: How to overcome from the resulting brand loyalty?
3.? Capital requirement: Amount of investment required to enter an industry.
4.? Switching costs: Customer¶s psychological or financial cost to switch to new
products.
b)Bargaining power of suppliers:
1.? Discuss the number of suppliers and their dominance.
2.? Is there any concentration of suppliers than among buyers?
3.? Is the supplier¶s product so important to the buyers?
 4.? Is it costly for customer to switch over to any other brand?
c)Bargaining power of buyers:
1.? Threat of backward integration of buyers.
2.? Are your customers are price sensitive?
3.? Does a buyer in your industry have accurate information about suppliers?
4.? Are there few numbers of buyers in your industry?
d)Threat of substitutes:
1.? Invite comparison shopping.
E.g., eyeglasses vs. contact lenses
E.g., sugar vs. artificial sweeteners

e) The intensity of rivalry among competitors:

1? Equally balanced competitors.

2? Slow industry growth.
2.? Lack of differentiation or switching cost.
3.? High exit barriers.


   
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!!/& !" 
Circa 1995.A group of professionals formed a company called µProbity
Research & Service Pvt. Ltd.¶. The name was later changed to India Infoline Ltd. The objective
was to provide unbiased and independent information to market intermediaries and investors.
The quality of research soon caught the imagination of all major participants in the financial
market. In a span of 2 to 3 years the client list read like the who¶s who of Indian financial
market. The list included consulting firms like Mckensey, companies like Hindustan unilever,
Banks like Citibank, Rating agencies like CRISIL,D&B, FIs, FIIs, foreign brokers as well as
leading Indian brokers. The going was smooth but not exciting!
One fine morning in early 1999, a colleague had a crazy idea that if the company made all
the research available free on the web, the number of users may well jump from 250 to 2.5
million! To make it true, the business required a reincarnation. And the pre-requisite was a death.
It meant that the company put up all the information free on the website and let go of all the
revenues and profits. Worse, if the new avatar failed, there would be µno comebacks¶.
The idea was too compelling to worry about the consequences. Probity took a whole-
hearted plunge. The advertisement along side, said it all. The new avatar business model took
off. And it took off like a rocket! All employees, angel investors and well wishers were ecstatic.
India infoline raised US $ 1Million in the first round and complete the second round at the peak
of dotcom euphoria around March 2000 and raised US $ 5 Million.

 Cisca 2001, the internet bubble started bursting faster than anybody could have imagined.
The dot com suffix, which was the sexiest tail to any business name, suddenly became the worst
stigma to have. The key business lines that emerged were mutual funds, life insurance and e-
broking.

The company became heavily dependent on its e-broking business for survival. The odds
were against them. There was no money available from the private equity investors at any
valuation. All competitors were backed by institutions or had abundant capital. The core
promoters of the company had little experience of broking. To add to it, the market was hit by a
scam. They also had their share of price to pay the lessons to learn. It was difficult to retain
people. Although devastating for morale, but not surprising, most market observers had written
them off.

There was a core group who never lost hope. They cut all possible costs and worked on a
bare bones structure. They survived against all odds and started capturing market share. Not
broking along but mutual funds and life insurance business also grew strongly. The company
rose for strength to strength to become the leading corporate agent in life insurance and among
the top retail players in mutual fund and broking space.

Then the story took an interesting turn. They raised capital by way of an IPO. In India,
investment advisory is a sunrise industry, with tremendous long term promise. The young
µearning and saving¶ class of population is growing rapidly. Falling interest rates are compelling
people to look around for advised investment. The industry is consolidating as smaller players
find it difficult to meet strict compliance standards and service customers with research and
technology. The landscape is changing everyday and the road ahead is less traveled by India
infoline Ltd. along with its subsidiaries is a unique one stop investment shop which offers
everything from information and advice to execution and service to the retail customers for the
entire gamut of investment products from risk free RBI Bonds to high-risk, high-reward equities
and also mutual funds and life insurance. They also forayed into portfolio management services
and commodities broking, again leveraging upon their core competencies in research and
technology.

c/!#/%." -01&
India Infoline Ltd. has fixed its issue price at Rs 76 per equity share. The 100% book-
building issue offering 1.19 Crore shares in a price band of Rs 70-80 closed on April 27, 2005
and was oversubscribed 7.22 times. While the QIB portion was oversubscribed 10.49 times, the
non-institutional investors segment was oversubscribed 5.64 times.
There a number of opportunities on the horizon and with availability of capital, temptation
abound. The management is fully conscious of the fact that with public money, it is in a fiduciary
relationship with heightened responsibilities to ensure optimum use of capital. There is no hurry
to take shortcuts. Being a listed company quarterly performance has to be reported; which is then
reviewed, analyzed and compared against expectation and competition. In the last 10 years, India
infoline ltd. has faced numerous ups and downs, but has never compromised on integrity. They
continue to ensure highest standards of corporate governance.
$- .!/&2.  
 India Infoline is a wealth management company. It is a one stop shop for all investment
needs for the Indian retail investors, from advice to execution online as well as offline. India
infoline provides terminal for the investors for buying and selling of equities, bonds, mutual
funds, commodities trading, and portfolio management with the technical support. India infoline
also advices that in which financial instrument the investor should invest by which he/she can
maximize their returns. A customer who wants to do trade, Company provides the online trading
portal to them. Company also sells the life insurance policies that may be government (LIC) as
well as private (Metlife, Tata AIG, Birla sunlife, Bajaj Allianze etc.). India infoline ltd. advices
to the clients by purchasing which policy he/she will get maximum tax advantage. The experts of
India infoline regularly analyze the market ie. Fundamental and technical analysis and forecast
the future of particular equity. India Infoline ltd. also involve in the merchant banking for any
IPO. By providing the service of portfolio management, company makes the ratios of total
investment to a investor between risky as well as risk free instrument for the risk lovers and risk
adverse investors. For the purpose of commodity trading investors trade with www.5paisa.com,
which has membership in both leading exchanges ie. MCX and NCDEX.

-,!3!4.#!#  

,! 

O? To be the most respected company in the financial service space.

O? To be the leading investment intermediary for transaction through both online and
offline medium.
O? To be the premier provider of investment advisory and financial planning services in
India.
!
 ³One stop shop for all financial requirements´.

4.#"!# 
Excellence is all about the quality of work. We strive for delivery that is 100% error free
and yet at lightning speed. Excellence deals with the quality of work.


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The services thus provided as follows:
O? 6.
O? !!
O? c. 
O? !''
O? ï#&'
O? !/!#!'
O? c*..#
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O? 
O? $!
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6. 

 India infoline provided the prospect of researched investing to its clients, which was
hitherto restricted only to the institutions. Research for the retail investor did not exist prior to
India infoline. India infoline leveraged technology to bring the convenience of trading to the
investor¶s location of preference (residence or office) through computerized access. India
infoline made it possible for clients to view transaction costs and ledger updates in real time.
!! 
 The Company¶s commodities business provides a contra-cyclical alternative to equities
broking. The Company was among the first to offer the facility of commodities trading in India¶s
young commodities market (the MCX commenced operations only in 2003). Average monthly
turnover on the commodity exchanges increased from Rs 0.34 billion to Rs 20.02 billion. The
commodities market has several products with different and non-correlated cycles. On the whole,
the business is fairly insulated against cyclical gyrations in the business.
c.  
 To ensure maximum reach to customers across India, we have employed a multi pronged
approach and reach out to customers via our Network, Direct and Affiliate channels. Following
the opening of the sector in 1999-2000, a number of private sector insurance service providers
commenced operations aggressively and helped grow the market.
!'' 
 India infoline acquired a 75% stake in Money tree Consultancy Services to mark its foray
into the business of mortgages and other loan products distribution. The business is still in the
investing phase and at the time of the acquisition was present only in the cities of Mumbai and
Pune. The Company brings on board expertise in the loans business coupled with existing
relationships across a number of principals in the mortgage and personal loans businesses. India
infoline now has plans to roll the business out across its pan-Indian network to provide it with a
truly national scale in operations.
ï#&'
 A world-leading wealth management company that sits down with you to understand your
needs and goals. We offer you a dedicated group for giving you the most personal attention at
every level.

!/!#!'*  
 Company¶s Portfolio Management Service is a product wherein an equity investment
portfolio is created to suit the investment objectives of a client. We at India infoline invest your
resources into stocks from different sectors, depending on your risk-return profile. This service is
particularly advisable for investors who cannot afford to give time or don't have that expertise for
day-to-day management of their equity portfolio.

c*..#
. 
 India infoline offers you a host of mutual fund choices under one roof, backed by in-depth
research and advice from research house and tools configured as investor friendly.
 ! !&
The trader of today, you are constantly on the move. But how do you stay connected to the market
while on the move? Simple, subscribe to India infoline's Stock Messaging Service and get Market on your
Mobile.
&&"!. .*  

O? Market on the move.

O? Best of the lot.
O? VAS (Value Added Service )

$!
%
"!
RBI Bonds for supreme safety with sovereign guarantee. ICICI/IDBI bonds will save tax if
you are not in a high-income bracket, Capital Gain Bonds, a cool way to escape long-term capital
gain tax on property etc.

Company fixed deposits were earlier popular investment options which are now losing
their charm owning to taxable interest income coupled with questionable credit worthiness of
some companies-

-!/ "! 
 The India Infoline group, comprising the holding company, India Infoline Limited and its
wholly-owned subsidiaries, straddle the entire financial services space with offerings ranging
from Equity research, Equities and derivatives trading, Commodities trading, Portfolio
Management Services, Mutual Funds, Life Insurance, Fixed deposits, GOI bonds and other small
savings instruments to loan products and Investment banking. India Infoline also owns and
manages the websites www.indiainfoline.com and www.5paisa.com. The Company has a
network of 976 business locations (branches and sub-brokers) spread across 365 cities and
towns. It has more than 800,000 customers.





cc/!#7!.".2
1.? India Infoline Media and Research Services Limited
2.? India Infoline Commodities Limited
3.? India Infoline Marketing & Services
4.? India Infoline Investment Services Limited
5.? IIFL (Asia) Pte Limited

7#!2# 
China, Brazil, Dubai, Russia, Singapore, UK, USA








- )&""
1.? Promoter¶s share
2.? Institutional investor share (if any)
3.? Foreign institutional investor¶s share (if any)
4.? Share of retail investor (if any)
5.? Government¶s share (if any)
1-? Others
Our promoters and promoter group together holds 33.75% of post issue Equity shares. As a
result of their shareholding they will have the ability to influence most matters, which require the
approval of our shareholders. In addition the collectively have the ability to block any special
resolution by shareholders.





 )&" 
Promoters 33.75 %

Mutual Funds / UTI 20.36 %

FI/Bank 0.05 %

Insurance 0.00 %

Others 0.51 %

Govt 0.00 %

FII 18.88 %

Non-Institutions 26.95 %

Depository Receipts 0.00 %

!# 100.00 %

7-!"!c/!! 
1.? Bajaj Capital

2.? Geogit

3.? Indiabulls Securities Ltd.

4.? Religare

5.? Motilal Oswal

6.? Sharkhan
c2.## is one of the top Indian business houses with business interests in real estate,
infrastructure, financial services, securities, retail, multiplex and power sectors. Indiabulls Group
companies are listed in Indian and overseas financial markets. Indiabulls was founded by Sameer Gehlaut,
Rajiv Rattan and Saurabh Mittal who are engineering graduates from the Indian Institute of Technology
in Delhi. The group companies are listed on important Indian and Overseas markets. Indiabulls has been
conferred the status of a ³Business Superbrand´ by The Brand Council, Superbrands India.
c2.##
 #*  is an integrated financial services powerhouse providing Consumer
Finance, Housing Finance, Commercial Loans, Life Insurance, Asset Management and Advisory services.
Indiabulls Financial Services Ltd is amongst 68 companies constituting MSCI - Morgan Stanley India
Index. Indiabulls Financial is also part of CLSA¶s model portfolio of 30 Best Companies in Asia.
Indiabulls Financial Services signed a joint venture agreement with Sogecap, the insurance arm of Societé
Generale (SocGen) for its upcoming life insurance venture. Indiabulls Financial Services in partnership
with MMTC Limited, the largest commodity trading company in India, is setting up India¶s 4th Multi-
Commodities Exchange. c2.## . is India¶s leading capital markets company with
All-India Presence and an extensive client base. Indiabulls Securities possesses state of the art trading
platform, best broking practices and is the pioneer in trading product innovations. Power Indiabulls, in-
house trading platform, is one of the fastest and most efficient trading platforms in the country. Indiabulls
Securities Limited is the first and only brokerage house to be assigned the highest rating BQ ± 1 by
CRISIL.

7!8 $  2
 # *  started in the year 1987 when Mr. C.J. George
and Mr. Ranajit Kanjilal founded Geojit as a partnership firm. In 1993, Mr.Ranajit Kanjilal
retired from the firm and Geojit became the proprietary concern of Mr. C .J. George. In 1994, it
became a Public Limited Company named Geojit Securities Ltd. The company sells a range of
savings and investment products. The value-added products and services offered range from
equities and derivatives to Mutual Funds, Life and General Insurance and third party Fixed
Deposits.

The needs of over 475 000 clients are met via multichannel services - a countrywide
network of 500 offices, phone service, Customer Care centre and the Internet. Geojit BNP
Paribas has membership in, and is listed on, the National Stock Exchange (NSE) and the
Bombay Stock Exchange (BSE). BNP Paribas is the Eurozone¶s leading bank in terms of
deposits, and one of the 10 most important banks in the world in terms of net banking income,
equity capital and market value. Furthermore, it is one of the 6 strongest banks in the world
according to Standard & Poor's. With a presence in 85 countries and more than 205,000
employees, 165,200 of which in Europe. The Group benefits from its four domestic markets:
Belgium, France, Italy and Luxembourg. BNP Paribas also has a significant presence in the
United States and strong positions in Asia and the emerging markets.

 #',a diversified financial services group with a pan-India presence and presence in
multiple international locations, Religare Enterprises Limited ("REL") offers a comprehensive
suite of customer-focused financial products and services targeted at retail investors, high net
worth individuals and corporate and institutional clients.REL, along with its joint venture
partners, offers a range of products and services in India, including asset management, life
insurance, wealth management, equity and commodity broking, investment banking, lending
services, private equity and venture capital. Religare has also ventured into the alternative
investments sphere through its holistic arts initiative and film fund.

#' operates from seven domestic regional offices, 43 sub-regional offices, and has a
presence in 498* cities and towns controlling 1,837* business locations all over India. To make a
mark in the global arena, REL acquired UK-based Hichens, Harrison & Co. in 2008 which was
subsequently re-named as Religare Hichens Harrison PLC ("RHH"). Hichens, Harrison & Co.
was incorporated in London in the year 1803 and is believed to be one of the oldest firms of
stockbrokers in the City of London. Pursuant to expansion of REL's business, the company has
grown from largely an equity trading company into a diversified financial services company.
With the addition of RHH the REL group now operates out of multiple global locations, other
than India, (the UK, the USA, Brazil, South Africa, Dubai and Singapore).

!## )# .. (MOSL) 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 MOSL is 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.
Co. has 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 31st, 2009, had a network spread
over 581 cities and towns comprising 1,293 Business Locations operated by our Business
Partners and us. As at December 31st, 2009, we had 6,05,986 registered customers.
- &*5) 
O? Incorporated on October 18, 1995 as Probity Research & Services.
O? Launched Internet portal www.indiainfoline.com in May 1999.
O? Commenced distribution of personal financial products like Mutual Funds and RBI Bonds
in April 2000.
O? Launched online trading in shares and securities branded as www.5paisa.com in July 2000.
O? Standard life insurance agency business in December 2000 as a Corporate Agent of ICICI
Prudential Life Insurance.
O? Became depository participants of NSDL in September 2001.
O? Launched stock messaging service in May 2003.
O? Acquired commodities broking license in March 2004.
O? Launched portfolio management services in August 2004.
O? Listed on NSE and BSE on May 17, 2005.
O? Acquired NBFC license in May 2005.
O? Acquired 75% stake holding in Money tree Consultancy Services, which is a distribution of
Mortgages and other Loan products, in October 2005.
O? Acquired 100% equity of Marchmont Capital Advisors Pvt. Ltd. in December 2005 through
which we have ventured in to Merchant Banking.
O? DSP Merrill Lynch Capital subscribed to convertible bonds aggregating Rs. 80 crores in
December 2005.
O? Bennett Coleman & Co Ltd. (BCCL) invested Rs. 20 crores in India Infoline by way of
preferential allotment in December 2005.
O? Became a depository participant of CDSL in June 2006.
O? Merger of India Infoline Securities Private Limited with India Infoline in January 2007.
O? Entered into an alliance with Bank of Baroda for Baroda e-trading in February 2007.
O? CLSA Institutional equities team joined us in 2007.
O? Formed Singapore subsidiary IIFL (Asia) Pte Ltd. in 2007.
O? Mr. Arun K. Purvar joined as independent director in March 2008.
O? Received µBest Broker of India¶ award by Finance Asia in June 2008.
O? Received Venture Capital license from SEBI in September 2008.
 O? Received in-principle approval from SEBI for sponsoring Mutual Funds in November 2008.
O? Received Insurance broking license from IRDA in December 2008.
O? Received registration for Housing Finance Company from NHB in February 2009.
O? Entered into a strategic agreement with Interactive Brokers, LLC (USA) to provide our
client direct market access to over 80 global exchanges in 18 countries in July 2009.

c
c/. .
 #




India infoline outlets are designed to be places where retail investors can come in touch

with Investment opportunities in an atmosphere of convince and comfort. The look and feel of

the offices across India projects a consistent branch image for the company. The features that

enable a unique facility for retailing financial service include among others.

;-ï!/#!)!#

The process to examining how work creates or adds value to the ongoing process in a
business. (Discuss the work flow from acquiring raw materials for the production to selling
finished product to the consumer. Each step should be explained with a flowchart).

Commodities

Information   „
 Execution

and advice 
 
Insurance

Equities

-
..'!)&"!"  
 The asset base will continue to grow at an annual rate of about 30 to 35% over the next few
years as investor¶s shift their assets from banks and other traditional avenues. Some of the older
public and private sector players will either close shop or be taken over. Out of ten public sector
players five will sell out, close down or with stronger players in three to four years. In private
sector this trend has already started with two mergers and one takeover. Here too some of them
will down their shutters in the near future to come.
 But this does not mean there is no room for other players. The market will witness a flurry
of new players entering the arena. There will be a large number of offers from various asset
management companies in the time to come. Some big names like Fidelity, Principal and Old
Mutual etc. are looking at Indian market seriously. One important reason for it is that most major
players already have presence here and hence these big names would hardly like to get left
behind.
The mutual fund industry is awaiting the introduction of derivatives in India as this would
enable it to hedge risk and this in turn would be reflected in its Net Asset Value (NAV).
SEBI is working out the norms for enabling the existing mutual fund schemes to trade in
derivatives. Importantly, many market players have called on the regulator to initiate the process
immediately, so that the mutual funds can implement the changes that are required to trade in
Derivatives.
Reforms have marked the entry of many of the global insurance measures into the Indian
market in the form of joint ventures with Indian companies. Some of the key names are: AIG,
New York Life, Allianze, Prudential, Standard Life, Sun Life Canada and Old Mutual. The entry
of new player has rejuvenated and monopoly player LIC, which has responded to the
competition in an admirable fashion by launching new product and improving service standard.
O? The ability to successfully implement our growth strategy and expansion plan.
O? The ability to respond to technological changes.
O? Changes in laws and regulations relating to the industry in which we operate.
O? Changes in political and social condition in India.
O? The ability to successful launches the new products.




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Mckinsey's 7S framework of the 7 S's the first three that is strategy, Structure and System
are considered as the 'Hard S's' and the remaining four ie. Staff, Style, Skills and Subordinate
goals are considered as 'Soft S' s' since they are less tangible and more cultural in nature.

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A company's structure affects its strategic planning and its ability to change. A company's
structure may have a customer or geographical focus. It contains the salient features of the
organizational chart and interconnections within the organization.
 Nirmal Jain Chairman & managing Director

S. Sriram,

H)!


Harshad Apte,
Head -Marketing

Kalpesh Shah R.Venkataraman

Head-Risk/Compliance Executive Director

Seshadri Bharathan Dharmesh Pandya Mukesh Singh

Head-Distribution & Insurance Head Commodities *)

 Anil Mascarenhas Sandeep Vig Arora Toral Munshi
Head-News *)+

   
 VP- Reserch

Upendra Jaiswal
Head -Accounts
Sanjay Nayak
Head-Back Office Depository service
Komal Parikh
Company Secretary








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K. Sridhar
South India Manager

Andhra Pradesh Karnataka Tamil Nadu Kerala

Manager Manager Manager Manager

Divisional Manager, Rest of Karnataka

Bangalore Manager
 Karnataka Head

Territory Manager

Branch Manager

Assistant Manager

Front Office Executive

 Back Office Executive



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The skill is closely related to staff are the distinctive abilities and talents that a company
possesses. Skills may range from ability of a staff to speak Spanish to an understanding of the
statistics to computer literacy etc.
Their management team has hands on experience in financial services, especially targeted
at retail sales and relationship management. They have a strong technical team comprising of
qualified engineers and trained personnel. The in house team has been responsible for developing
several MIS software and requirements. They believe that they have put in place a working
environment that brings out their people's entrepreneurial energy.

;#  '<!#.#.
 The Culture or Style is the aggregate of behaviors, thoughts, beliefs and symbols that is
conveyed to the people throughout an organization over time. Since it is very hard to change a
company's ingrained culture, it is important to bear in mind when developing a new strategy.
They have developed a team of Customer Relationship Managers across India to handle
customer accounts. These people are experienced in financial services and have undergone in-
house training. This allows them to offer unbiased advice on not only equities but also on other
investment products like mutual funds ensure that the customer has a single point contact with
us.

(' $.'
Strategy refers to those actions that a company plans in response to or in anticipation of
changes in its external environment, its customers and its competitors. It is a plan or course of
action leading to the allocations of an organization's finite resources to reach identified goals.
Our business plan is to become the leading investment advisor and intermediary for
financial services in India. The key driver is to increase our customer base in all our products,
give them a platform of choice to transact and support them with quality research. The elements
of our strategy include: ³One Stop Shop´ from advice to transactions. We have emerged as one
of the India's leading financial information Internet Portal in India. We distribute mutual funds
and life insurance products through our branches as well as directly through our sales team.

These factors allow us to provide our customers with an integrated online as well as offline
solution to fulfill all their financial information and transaction needs. We believe that our ability
to offer multiple products across broking to insurance to mutual funds to commodities to small
savings differentiates us from our competition. This also offers significant cross selling
opportunities which will help in improving margins as incremental revenue will entail lower
customer acquisition and promotion costs.

O? .# &##*!#
We intend providing a single convenient and reliable platform from which our users can
obtain information, trade online or purchase offline a wide range of personal financial products.
Our branches have been opened in cities after a detailed study of demographics and investment
patterns in different cities.
 O? %"!.#)!
We have a retail branch network of 976 branches at 365 locations across India to provide
an alternative channel for our customers to transact with us and to support our online services. It
has more than 8,00,000 customers.
These branches allow our customers the opportunity to purchase personal financial
products and trade at such branches with the assistance of our staff. We propose to set up
additional 25 branches in 14 cities across India to have a network of 1000 branches strengthen
our geographic reach.

O? *'!. !*'/!*#.!//'
We believe that the key to successful investment is research. We have invested
considerable resource in building our research domain skills. Our top management has hands on
experience in equity research. We will continue to expand the breadth and depth of research and
content on Indian business and finance.
This research advantage will enable us to acquire customers in high value added product
offerings especially PMS.

O? !.!.* &!#!'"#/!
We have leveraged the power for technology to offer an integrated platform to the
customer to transact. We will continue to invest in such technologies that could enhance
customer experience while interacting with us. We have facilitated integrated trading and
depositary accounts for the customer, payment gateways with multiple banks, online Internet
enabled back office and MIS. We believe that our technology investments will be key driver in
scaling of the business.

O?  6.!!*
We strongly believe that to become a market leader in the investment advisory and
intermediation space, we have to expand our business. In our endeavor to do so and as per our
business strategy we may pursue inorganic growth.

=-  "
 The procedures both formal and informal, by which an organization operates and gathers
information constitutes the system of the company. This model is concerned with the systems
that allocate the control money and materials as well as gather information.
They manage the risk associated with their broking operations through use of internally
developed credit algorithms implemented through fully automated risk management software
and selective direct monitoring of certain operating parameters. Their automated risk
management procedures rely primarily on internally developed risk management system and
system provided by their vendors.
They have developed a team of customer Relationship Managers across India to handle key
customer account. These people are experienced in financial services and have undergone in-
house training. This allows them to offer unbiased advice on not only equities but also on other
investment products like mutual funds and insurance.
They intend providing a single convenient and reliable platform from which their can
obtain information, trade online or purchase offline a wide range of personal financial products.
Their offline network today increased by 45.9% to Rs 13,947 crore from the level of Rs 9,559
crore account for trading in the NSE cash market as on December 2009 and The average
monthly derivative trading in terms of value, on the NSE has increased by 86.6% to Rs 72,618
crore in December 2009 from Rs 38,906 crore recorded in January 2009.
1-// 
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Staff means the human resource systems which include appraisal, training, wages and
the intangibles such as employee motivation, morale and attitude. With a motivation workforce
companies are able to adapt well and compete. 
Their Human Resource Policy on the philosophy of ³Owner Mindset´. They believe that
the key to their continued growth lied in unleashing the entrepreneurial energy of their
employees. They encourage all employees to behave more as owners of their departments rather
than employees. Their people are highly driven and work towards increasing India Infoline¶s
brand and market share across product lines.
They have developed extensive in-house training modules. In addition, various Asset
Companies and ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED train their
staff. They lay emphasis on ³on the job training´ where an experienced and senior person
mentors a junior executive.
In addition to salary, their employees get performance-based incentives on a quarterly
basis. They have also implemented an employee stock option plan. India Infoline Ltd has
informed BSE that the Compensation/ Remuneration Committee of the Board at its meeting on
December 10, granted 10,45,000 Employee Stock Options to the identified employees under the
ESOP Scheme, 2008 of the company through circular resolution.
As on December 31, 2009 the total employee strength of the company and their subsidiaries was
15,600.

0-&,#. 
,! 
 ³To be the most respectable company in the financial space.´
!
³One stop shop for all financial requirements.´

India Infoline believes in building an entrepreneurial workforce and wants to inculcate the
essentials of an entrepreneur in all team members. 5 essentials of an entrepreneur are: Energy,
Execution, Efforts, Ethics, and Excellence.

.