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PROJECT REPORT

ON
MICRO STUDY OF AN INDIAN BROKING HOUSE

AT
INDIA CAPITAL MARKETS PVT LTD., MUMBAI

2008-2010

Submitted to: Mr.Pravin Salvi


VP - E-Broking
India Capital Markets

Submitted by: Noman Agashiwala


Krutika Moorjani
Reshma Kalamkar

ACKNOWLEDGEMENT

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It gives us great pleasure to present before you, our summer training project report for the year 2008-
2010.

We express our sincere gratitude towards INDIA CAPITAL MARKETS Pvt. Ltd., for giving us an
opportunity to work on this report.

We take this opportunity to thank our respected project guide Mr. Pravin Salvi, VP – E-broking, for
giving us an opportunity to undertake this project. His guidance has been invaluable to us to while
preparing this report. He provided us with valuable suggestions and excellence guidance about this
industry, which proved very helpful to us and helped us to gain theoretical knowledge as well as
experience in the practical field.

Last but not the least, we are also thankful to Mrs. Priyanka Shelar, and all the staff at India Capital
Markets, my friends, to all known and unknown individuals who have given me their constructive
advise, suggestions, encouragement, co-operation and motivation to prepare this report.

– Krutika Moorjani
(Chetana’s R.K. Institute of Management and Research –MMS)
– Noman Agashiwala
(Thakur Institute of Management Studies and Research - PG)
– Reshma Kalamkar
(Chetana’s R.K. Institute of Management and Research –MMS)

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TABLE OF CONTENTS

COMPANY PROFILE.............................................................................................. ...............5

INDUSTRY PROFILE............................................................................................................6

ORGANIZATION CHART OF A BROKING HOUSE...............................................................12

BUSINESS STRATEGY DEPARTMENT................................................................................16

FINANCE DEPARTMENT............................................................................... .....................24

BUSINESS DEVELOPMENT DEPARTMENT........................................................................31

OPERATIONS DEPARTMENT.............................................................................................39

ADMINISTRATION SECTION..............................................................................................52

RESEARCH DEPARTMENT................................................................................................63

COMPLIANCE DEPARTMENT................................................................................ .............69

TECHNOLOGY DEPARTMENT.................................................................................... ........77

HUMAN RESOURCES DEPARTMENT.................................................................................86

CONCLUSION.......................................................................................... ..........................93

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COMPANY PROFILE

INDIA CAPITAL MARKETS


India Capital Markets Pvt.Ltd. is a leading financial intermediary established in 1999. India Capital
Markets Pvt.Ltd. is a Corporate member of National Stock Exchange of India Ltd.(NSE) and Bombay
Stock Exchange Ltd.(BSE). The firm offers broking services to their clients on Capital Market Segment
and Future and Option segment. It enjoys a large retail network comprising of 200+ terminals spread
across the country with client base of more than 25000+ satisfied clients. Moreover it also caters to a
host of High Networth Individuals, Corporates and Institutions, both domestic & foreign.

India Capital Markets provides a host of financial services under one roof following a ONE STOP
SHOP philosophy. It has a dedicated team of professionals to cater to the variety of services to
Individuals, Corporates and Institutions. The team updates its clients with opportunities - with a sense
of competitive urgency and risk management. What’s more, their special analysts design customized
services for HNI and Institutions.

Over the years India Capital Markets Pvt. Ltd. has played a successful role in client's wealth creation.
In the process India Capital Markets Pvt. Ltd. also refined itself, as an investment advisor and is poised
to provide complete Investment Management Solutions to its valued clientele.

The following is the product profile of the company.

• Equity Broking - BSE and NSE


• Derivatives Futures and Options
• Internet Broking- Online Trading
• Commodities Trading - NCDEX & MCX
• Institutional Broking
• Depository Services - NSDL & CDSL
• Arbitrage
• Portfolio Management Services

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• NRI Investments
• Initial Public Offerings (IPO)
• Mutual Fund Investment

INDUSTRY PROFILE

While regulation and reforms have made major improvements in the quality of the equity markets in
India, its rapid growth and development are largely due to strong and efficient market intermediation.
The robustness of the Indian markets today is attributable to a healthy blend of the quality of market
structure and efficient intermediation. Even as several countries are instituting procedures to commence
equity derivative markets, India ranks amongst the top five countries globally in this segment, in less
than five years of its introduction. This is an example of the proactive and progressive nature of the
Indian brokerage industry.

In the last decade, the Indian brokerage industry has undergone a dramatic transformation. From being
made of close groups, the broking industry today is one of the most transparent and compliance
oriented businesses. Long settlement cycles and large scale bad deliveries are a thing of the past with
the advent of T+2 settlement cycle and dematerialization. Large and fixed commissions have been
replaced by wafer thin margins, with competition driving down the brokerage fee, in some cases, to a
few basis points.

There have also been major changes in the way business is conducted. Technology has emerged as the
key driver of business and investment advice has become research based. At the same time, adherence
to regulation and compliance has vastly increased. The scope of services have enhanced from being
equity products to a wide range of financial services. Investor protection has assumed significance, and
so has providing them with education and awareness. Greater need for capitalization has induced
several firms to access the capital market; foreign firms are showing increasing interest in taking equity
stakes in domestic broking firms.

Major developments in equity brokerage industry in India:

➢ Corporate memberships
There is a growing surge of corporate memberships (92% in NSE and 75% in BSE), and the
scope of functioning of the brokerage firms has transformed from that of being a family run
business to that of professional organized function that lays greater emphasis on observance of
market principles and best practices. With proliferation of new markets and products, corporate
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nature of the memberships is enabling broking firms to expand the realm of their operations into
other exchanges as also other product offerings. Memberships range from cash market to
derivatives to commodities and a few broking firms are making forays into obtaining
memberships in exchanges outside the country subject to their availability and eligibility.

➢ Wider product offerings


The product offerings of brokerage firms today go much beyond the traditional trading of
equities. A typical brokerage firm today offers trading in equities and derivatives, most probably
commodities futures, exchange traded funds, distributes mutual funds and insurance and also
offers personal loans for housing, consumptions and other related loans, offers portfolio
management services, and some even go to the extent of creating niche services such as a
brokerage firm offering art advisory services. In the background of growing opportunities for
investors to invest in India as also abroad, the range of products and services will widen further.
In the offing will be interesting opportunities that might arise in the exchange enabled corporate
bond trading, soon after its commencement and futures trading that might be introduced in the
near future in the areas of interest rates and Indian currency.

➢ Greater reliance on research


Client advising in India has graduated from personal insights, market tips to becoming
extensively research oriented and governed by fundamentals and technical factors. Vast progress
has been made in developing company research and refining methods in technical and
fundamental analysis. The research and advice are made online giving ready and real time access
to market research for investors and clients, thus making research important brand equity for the
brokerage firms.

➢ Accessing equity capital markets


Access to reliable financial resources has been one of the major constraints faced by the equity
brokerage industry in India since long. Since the banking system is not fully integrated with the
securities markets, brokerage firms face limitations in raising financial resources for business and
expansion. With buoyancy of the stock markets and the rising prospects of several well organized
broking firms, important opportunity to access capital markets for resource mobilization has
become available. The recent past witnessed several leading brokerage firms accessing capital
markets for financial resources with success.

➢ Foreign collaborations and joint ventures

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The way the brokerage industry is run and the manner in which several of them pursued growth
and development attracted foreign financial institutions and investment banks to buy stakes in
domestic brokerage firms, paving the way for stronger brokerage entities and possible scope for
consolidation in the future. Foreign firms picked up stake in some of the leading brokerage firms,
which might lead to creating of greater interest in investing in brokerage firms by entities in India
and abroad.

➢ Specialized services/niche broking


While supermarkets approach are adopted in general by broking firms, there are some which are
creating niche services that attract a particular client group such as day traders, arbitrage trading,
investing in small cap stocks etc, and providing complete range of research and other support to
back up this function.

➢ Online broking
Several brokers are extending benefits of online trading through creation of separate windows.
Some others have dedicated online broking portals. Emergence of online broking enabled
reduction in transaction costs and costs of trading. Keen competition has emerged in online
broking services, with some of these offering trading services at the cost of a few basis points or
costs which are fixed in nature irrespective of the volume of trading conducted. A wide range of
incentives are being created and offered by online brokerage firms to attract larger number of
clients.

➢ Compliance oriented
With stringent regulatory norms in operation, broking industry is giving greater emphasis on
regulatory compliance and observance of market principles and codes of conduct. Many
brokerage firms are investing time, money and resources to create efficient and effective
compliance and reporting systems that will help them in avoiding costly mistakes and possible
market abuses. Brokerage firms now have a compliance officer who is responsible for all
compliance related aspects and for interacting with clients and other stake holders on aspects of
regulation and compliance.

➢ Focus on training and skill sets


Brokerage firms are giving importance and significance to aspects such as training on skill sets
that could prove to be beneficial in the long run. With the nature of markets and products
becoming more complex, it becomes imperative for the broking firms to keep their staff
continuously updated with latest development in practices and procedures. Moreover, it is
mandated for certain types of dealers/brokers to seek specific certification and examinations that

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will make them eligible to carry business or trade. Greater emphasis on aspects such as research
and analysis is giving scope for in-depth training and skills sets on topics such as trading
programs, valuations, economic and financial forecasting and company research.

➢ From owners to traders


A fundamental change that has taken place in the equity brokerage industry, which is a global
trend as well, is the transformation of broking from owners of the stock exchange to traders of the
stock market. Demutualization and corporatization of stock exchanges bifurcated the ownership
and trading rights with brokers vested only with the later and ownership being widely distributed.
Demutualization is providing balanced welfare gains to both the stock exchanges and the
members with the former being able to run as corporations and the latter being able to avoid
conflict of interests that sometimes came as a major deterrent for the long term growth of the
industry.

Emerging challenges and outlook for the brokerage industry

Brokerage firms in India made much progress in pursuing growth and building professionalism in
operations. Given the nature of the brokerage industry being very dynamic, changes could be rapid and
so as the challenges that emerge from time to time. A brief description on some of the prospects and
challenges of the brokerage firms are discussed below.

➢ Fragmentation
Indian brokerage industry is highly fragmented. Numerous small firms operate in this space.
Given the growing importance of technology in operations and increasing emphasis on regulatory
compliance, smaller firms might find it constrained to make right type of investments that will
help in business growth and promotion of investor interests.

➢ Capital Adequacy
Capital adequacy has emerged as an important determinant that governs the scope of business in
the financial sector. Current requirements stipulation capital adequacy in regard to trading
exposure, but in future more tighter norms of capital adequacy might come into force as a part of
the prudential norms in the financial sector. In this background, it becomes imperative for the
brokerage firms to focus on raising capital resources that will enable to give continuous thrust and
focus on business growth.

➢ Global Opportunities
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Broking in the future will increasingly become international in character with the stock markets
being open for domestic and international investors including institutions and individuals, as also
opportunities for investing abroad. Keeping abreast with developments in international markets as
also familiarization with global standards in broking operations and assimilating major practices
and procedures will become relevant for the domestic brokerage firms.

➢ Opportunities from regional finance


Regional economic integration such as that under the European Union and the ASEAN have
greatly benefited businesses in the individual countries with cross border opportunities that helped
to expand the scope and significance of the business. Initial measures to promote South Asian
economic integration is being made by governments in the region first at the political level to be
followed up in regard to financial markets. South Asian economic integration will provide greater
opportunities for broking firms in India to pursue cross border business. In view of several of
common features prevailing in the markets, it would be easier to make progress in this regard.

➢ Product Dynamics
As domestic finance matures and greater flow of cross border flows continue, new market
segments will come into force, which could benefit the domestic brokerage firms, if they are well
prepared. For instance, in the last three to four years, brokerage firms had newer opportunities in
the form of commodities futures, distribution of insurance products, wealth management, mutual
funds etc, and as the market momentum continues, broking firms will have an opportunity to
introduce a wider number of products.

➢ Competition from foreign firms


Surging markets and growing opportunities will attract a number of international firms that will
increase the pace of competition. Global firms with higher levels of capital, expertise and market
experience will bring dramatic changes in the brokerage industry space which the local firms
should be able to absorb and compete. Domestic broking firms should always give due focus to
emerging trends in competition and prepare accordingly.

➢ Investor Protection
Issues of investor interest and protection will assume centre stage. Firms found not having
suitable infrastructure and processes to ensure investor safety and protection will encounter
constraints from regulation as also class action suits that investors might bring against erring
firms. The nature of penalties and punitive damages would become more severe. It is important
for brokerage firms to establish strong and streamlined systems and procedures for ensuring
investor safety and protection.

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ORGANIZATION CHART OF A BROKING HOUSE

Chairman

Secretary

Board of Directors

CEO/ MD

CTO/ COO/ CCO/


CSO/ CMO/ CRO/ CFO/ VP- Human
VP- VP- VP-
VP- Business VP- Business VP- Research VP- Finance Resources
Technology Operations Compliance
Strategy Development

Principal
Officer

The above is a simple basic organization chart of a typical Indian broking house. The broking house
like any other company has a Board of directors, headed by a Chairman. The Board provides the vision
and the mission to the broking house. The Board plans and formulates the goals for the broking house,
and directs the Chief Executive Officer or the CEO. The main responsibility of the CEO is to achieve
the goals and the mission formulated by the Board through specialized teams under him. These
specialized teams are departments in a broking house. He provides executive directions to around eight
departments that include:

• Business strategy
• Business development
• Technology
• Research
• Finance
• Operations
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• Compliance
• Human resources

Each of the above department is headed by a chief officer and has various managers to perform
specialized functions. A more detailed structure till the lowest level of management is given below:

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CHAIRMAN Secretary

BOARD OF DIRECTORS

CHIEF EXECUTIVE OFFICER

CSO/ CCO/
PRINCIPAL OFFICER
VP - Business Strageties VP - Compliance

Manager - Operations
Manager - MIS
Compliance

Manager - Corporate
Assistant’s
Compliance

Manager - Corporate Manager - Business


Communication Development Compliance
Executive Corporate Communication
Manager - Legal
CMO/
VP - Business Development
Manager - Audit
Manager-Lead Management
Audit Officer

Manager-Sales
CTO/
Sales Executive VP - Technology

Manager-Marketing Manager-IT Support

Business Development Executive Manager-Data security and


backup
Product Head
Manager-IT Operations
COO/
VP - Operations Manager-Software
development

Manager-Settlement Software Development Officer

Manager-Risk Management CFO/


VP - Finance

Manager-Customer Service Manager - Corporate


Investment

Manager-Admin Manager-Accounts

Manager-Account Opening Executive -General accounts

Executive - Corporate accounts


Manager-Dealing

CRO/
VP - Human Resources
VP - Research

Manager-Mutual Fund
Research Manager-HR Operations

Executive-HR Operations
Manager-Currency Research
Manager-Staff benefits and
Manager-Derivatives PR
Research
Executive -PR

Manager-Equity Research Manager-Recruitment and


Training
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Manager-Commodity Executive-Recruitment
Research
The above tree shows us key departments under a VP and enlists his key functions.

Each Vice President formulates the goals and the targets for his department, on the basis of the
objectives of the organization. These goals are communicated to each manager in each department, who
further plans the working of his team.

The processes followed by each department in order to achieve their objectives and the key
responsibilities of each person in a department, till the lowest levels of hierarchy are given below.

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BUSINESS STRATEGY DEPARTMENT

“If you fail to plan, you plan to fail.” So goes the famous saying. This sentence aptly highlights
the importance of business strategy department. This department comes directly under the CEO
and provides strategic vision and direction to the organization. This department in co-ordination
with CEO drafts and oversees the overall strategy planning and implementation in the
organization.

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Organization chart for Business Strategy department

CSO/
VP- Business Strategy

Manager –
Corporate Manager - MIS
Communications

Corporate
Communication Assistant
Team

Processes flow in Business strategy department

As seen above, the business strategy department has three distinct teams working under the Chief
Strategy Officer – Corporate communications and MIS. The processes followed in these
departments are depicted below using flow charts.

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Corporate Communications process

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Corporate Communications process

Determine what is to be
communicated

Designing the
Evaluate the
communication process
requirement of Arrange the resources
as per department
resources
needs

Check and verify Design the


Sample ok
the sample communication material

Yes No

Execute the process Monitor the success END process

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Strategy implementation process

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New strategy drafted
by CSO/CEO as per
directions of BOD

Delegate new
Determine strategy process/targets/
Study the new
implementation polocies to
strategy
procedure concerned
departments

No

Solve queries of
employees on Arrange training
Queries solved
strategy for staff
implementation

Yes No

Request and Implementation as


Implement strategy
examine MIS reports per procedure

Yes

END process Report to CSO

MIS process
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MIS department process flow

Collection of data Sorting and


from various segregation of
departments data

Database

Request for data


Write query for the Report is
from a
data generated
department

Present data as per


No
requirement

Send report to the


Information need is
concerned
fulfulled
department

END process Yes

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KRA Guidelines for Business strategy department

 CSO/VP – Business Strategy

The VP – Business Strategy is the right hand of the CEO. The Business Strategy Department
provides strategy-based planning, consulting and advisory services that enable the company, its
subsidiaries and divisions to develop, align, communicate and execute strategies.
The Vice President within the Corporate Strategy and Planning Group, partners with senior
management to address a variety of corporate strategic issues, with a focus on disciplined
management of long term profitable growth, diversification of the markets and products in which
we compete, relationship strategies with customers and business partners, and definition of
strategies related to cross – segment business issues.
Primary responsibilities include:
➢ Corporate strategy project-based research and analysis
➢ Corporate strategic plan development and support
➢ Scoping, planning and executing research and analysis to support corporate strategy
decisions
➢ Contributing to building and managing the long term corporate strategic vision and plan
➢ Building and managing relationships with senior executives
➢ Supporting alignment and communication around the corporate strategy
➢ Performing special projects on corporate strategy issues
➢ Making presentations to management regarding analysis, findings, and recommendations
➢ Special projects

 Manager-Corporate Communications

A Corporate Communications Manager creates implements and oversees communication


programs that effectively describe and promote the organization and its products. They often
assist in the preparation of presentations and/or speeches geared toward employees and
consumers. It's not uncommon for them to provide supervision and direction to staff. The
Corporate Communications manager would:
➢ Develop and manage a direct relationship with key local and industry media editors,
writers and reporters
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➢ Prepare or edit organizational publications for internal and external audiences, including
employee newsletters, company background and brand messaging
➢ Manage all internal and external communication
➢ Develop and maintain a proprietary media database complete
➢ Coordinate PR coverage for key events
➢ Support Design Services with editorial and copywriting and editing
➢ Manage the collection and archiving of press clips and media coverage
➢ Collaborate with the marketing managers in the development of communication plans and
strategies to help achieve objectives
➢ Provide guidelines and message points for corporate personnel authorized to with the media
➢ Manage business relationships with external communication resources
➢ Manage working relationship with licensor and key partner PR resources
➢ Establish policies, standards and overall brand message points to maintain consistency
across all communications
➢ Work with VP - Marketing and Marketing Managers to execute marketing initiatives
➢ Develop public relations strategies that will influence public opinion or promote ideas,
products and services
➢ Prepare and deliver speeches to further public relations objectives
➢ Work with marketing research resources to gauge public opinion of the company and the
brand

 Corporate Communications team

The function of the Corporate Communications team is to assist the Corporate Communications
manager to perform his duties efficiently. This team performs the following functions:
➢ Assist the work of the corporate communications manager
➢ Proved support to the manager to perform his duties such as strategy planning, analyzing
market environment and conditions, suggesting ways and means to tap the market etc
➢ Work out all the plans of the manager – Corporate Communication and implement the plans
on his behalf

 Manager - MIS

The role of MIS manager includes coordinating and centralizing all group demands, preparing
status reports, supervising your standards, procedures, policies, work instructions and
methodologies adopted during the implementation phase.

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He will be in charge of the making sure that the modules are delivered on time, and informing the
management about any obstacles faced.
The MIS manager is responsible for the following tasks:
➢ Supervise the safe use of the system by the various operators, with respect of the procedures
of the company as per the accounting rules and principles
➢ Edit and print frequently the appropriate management reports while checking and inspecting
the results; these reports must be programmed on a daily, weekly or monthly basis and
distributed the concerned departments
➢ Submit on regular basis a set of reports to the management and head of departments (Weekly,
Monthly, Quarterly etc) while checking and auditing the results
➢ Organize and customize the training of the remaining users in all locations according to their
profile
➢ Consolidate from all the branches and departments, the new requirements, needs or
problems. In case some new demands are to be charged, he will debate the matter with the
management prior to giving his final approval. Consequently, this coordinator will sign the
delivery forms and will approve / testify the time sheets submitted in our “service reports”.
➢ Make sure adequate backups are done properly and regularly require a monthly backup from
the branches data to be stored in the head office server for financial consolidation purposes
and part of the end of month reports that need to be audited and controlled

 Assistant to CSO

The assistant to the Chief Strategy Officer primarily assists the CSO in performance of his duties
and responsibilities. His duties include the following:

➢ Works as a Secretary to the CSO


➢ Manages all the paper work for the CSO
➢ Prepares the presentations for the CSO on his behalf
➢ Answers the calls of the CSO on his behalf

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FINANCE DEPARTMENT

Importance of a finance department cannot be over-emphasized. It is, indeed, the key to successful
business operations. Without proper administration of finance, no business enterprise can reach its
full potentials for growth and success. The finance department looks after overall financial
activities in the organization. Maintaining accounts, preparing budgets, finding new avenues of
raising capital and investing opportunities, and ensuring proper financial health of the organization,
are some of the responsibilities of this department.

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Organization chart for Finance department

CFO/
VP - Finance

Manager - Manager –
Accounts Corporate
Investments

General Corporate
Accounts Team Accounts Team

Process flow for Finance department

The finance department comprises of two primary teams – accounts and corporate investments. The
accounts team is further divided into two sub-groups – one maintains corporate accounts for the
broking house and the other maintains general accounts of the clients and the business associates.
The work flow of these teams is depicted in the diagrams below.

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Corporate Investment process flow

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Determine amount
of funds for
investment

Define objectives and Evaluation of


Find out various
risk tolerance level for options in terms
areas of investment
investment of objectives

Execute the
Yes Approval from CFO Design a portfolio
portfolio strategy

No

Monitor the Determine if it


investment in terms of achieves the Yes
return and risk objective

No END process

Adjust portfolio

Accounts process flow


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Transaction takes
place

Record
Post entries in
transaction in
ledger
journal

Trading of Reconcile bank


shares by clients accounts

Record
Record receipt/
transaction in
payment of cash
client ledger

Record receipt
Credit dividend
of dividend on
to client
behalf of
accounts
clients

Maintain
Prepare trial
statement of Record earnings
balance
accounts

Prepare final
accounts as per
No
regulatory
requirements

Send to Accounts
Yes Approved manager for
approval

Send financial
statements to END process
CFO

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KRA Guidelines for Finance department

 CFO / VP-Finance

The Chief Financial Officer is the top financial position in any organization. He is in charge of the
overall finances of the firm and is responsible for the inflow as well as the outflow of funds in the
firm. He advises on any decision that has financial implications. His primary responsibilities
include:

➢ Directing and controlling all aspects of financial administration in line with the strategy of
the firm
➢ Ensuring compliance of all statutory requirements and best accounting and business practice
➢ Developing, managing and implementing the budgets
➢ Determining the Capital structure of the firm and the Capital requirements
➢ Anticipating the requirements of funds and making arrangements for the same through
banks, financial institutions etc
➢ Deciding the areas where the funds of the firm would be invested
➢ Evaluating the financial activities in the firm and ensuring profitability
➢ Ensuring that appropriate controls and systems are in place for the managing and monitoring
all aspects of cash flow, budgetary procedures
➢ Advising the Board of Directors regarding any areas of concern
➢ Ensure that the annual statutory accounts are prepared and completed in line with the SEBI
regulations and are of the highest standard

 Manager-Accounts

The accounts manager has two teams to support him – general accounts team and corporate
accounts team. The general accounts team primarily deals with the accounts maintenance with
respect to clients-individuals as well as business associates. The corporate accounts team, on the
other hand deals with the accounting requirements of the organization. Thus, the basic duty of the
accounts manager is to handle and manage the two teams.

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 General accounts team

The General accounts manager is primarily responsible for handling the funds of the clients. All
the transactions related to margin amount, cash receipts and payments to clients are recorded by
the general accounts team. The responsibilities of the general accounts revolve around the
transactions of the clients and business associates and include the following:

➢ Manage the Client pay-in/pay-out procedures


➢ Maintain client ledgers and verify the books of accounts
➢ Ensure that statement of accounts are sent periodically to clients
➢ Maintain proof of statement of accounts and margin details of clients
➢ Verify details of cash receipts and payments to clients
➢ Maintain records of dividend receipts on behalf of clients and credit them to the respective
client accounts
➢ Maintain client-wise scrip-wise record of transactions

 Corporate accounts team

The Corporate accounts team, unlike the general accounts team would be involved in handling
accounts of the broking house. All transactions entered into by the broking house would be
recorded by this team in the books of accounts. The responsibilities of the corporate accounts
team are as follows:

➢ Reconcile the firm’s bank accounts


➢ Maintain accounting records and prepare financial statements
➢ Finalize the financial statements for use of external parties like government, suppliers,
creditors, shareholders etc
➢ Analyze financial statements and prepare reports
➢ Maintain books of accounts, registers, and records as per regulatory requirements
➢ Maintain exchange wise books of accounts
➢ Ensure working capital needs are met by maintaining relationships with banks, financial
institutions etc
➢ Maintain tax information to assist in tax planning
➢ Make payments related to day-to-day expenses, periodic salary payments etc.

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 Manager – Corporate Investments

The Corporate investment manager handles the overall investments made by a firm, in
consultation with the CFO/VP – Finance. Decisions related to investment of the surplus generated
by a firm are made by him. His profile includes constant study and research on the following
areas:

➢ Make and review investment plan for the firm periodically


➢ Finding out various areas where the funds of the firm can be invested
➢ Evaluating and deciding the various options of investment
➢ Ensuring that the invested funds produce a satisfactory return for the firm
➢ Maintaining a healthy balance sheet for the firm by ensuring preservation of capital and
maintenance of sufficient profit fund
➢ Deciding on the return to be given to stakeholders in the form of dividends etc.
➢ Maintain investment transactions of the firm like mergers, acquisitions, takeovers and advice
the management accordingly

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BUSINESS DEVELOPMENT DEPARTMENT

The main function of the Business development department, as the name suggests, is to develop the
business of the broking house and increase its client base. No doubt, it is one of the most important
departments for the firm as it a strong business development team directly translates into revenues
for the firm. The function of this department does not is not just to acquire new clients but to also
maintain good relationship with existing clients and encourage them to do more business with the
firm.

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Organization chart for Business development department

CMO/
VP – Business
Development

Manager - Lead Product Head


Manager - Sales
Marketing Management

Marketing Team Sales Team

Process flow of Business development team

The business development department comprises of three divisions, namely marketing, sales and
lead management. Although they are three distinct divisions, their work is highly inter-related and
hence their work process is cannot be separate from each other. The combined process followed by
this department is given in the process chart below.

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Marketing, Sales and Lead Management process flow

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Marketing & Sales Department
Database Automated Data Update

Corporate Lead Sales


Lead Data Sales
Communication Management Data

Prospects
Process raw data Team Leader/
Organizing - Generate various Automated
according to – Manager
Events, MIS Using central Data Updater
Location, Client segregates the
Promotions & Database for Top
Matrix, Product & data and provides
Advertising Management
Priority to his team of
Sales Executive
also takes the feed
Colleting Data Allocate the back form them
with Sales MIS Server processed data to
Dept Tele-Sales Dept

Sales Executive
Maintaining Web Allocate Data to Tele -Sales Dept
Site (Contents), Lead Manager &
Designing & take Feedabck Response Meeting/ Follow-Up
Structuring –
Promotional Calls on the Data
Material

Feed Comment & Capture Capture


If - ve
End responce responce

+ ve
If + ve
Sales Data is Update the
Start Account Opening
automatically response to Tele-
procedure
updates Caller & reporting
Here; Tele – Caller need supervisor
The Blue Lines Shows the to Follow Up with
Sales Executive & Submit Documents
one way flow and the Red Up date the status & Form to A/c
Lines Show the two way Opening Dept

flow.
End Process End Process Follow-up and
inform the status to
client; maintain
healthy relation
with client

40
KRA Guidelines for Business Development department

 Chief Marketing Officer/VP-Marketing

The Chief Marketing Officer plans the activities for developing the business of the broking house.
He undertakes activities to generate new business for the firm as well as maintain relationships
with new and existing clients. The CMO works in close co-ordination with the Corporate
Communications manager with respect to the marketing activities. His profile of responsibilities
includes the following:

➢ Responsible for transitions' overall brand company’s focused on building brand awareness
and equity globally
➢ Responsible for elevating and expanding the brand to the consumer in order to achieve and
sustain brand awareness
➢ Drive strategies to ensure the brand becomes aspirational and educational vis-à-vis the
consumer via an integrated marketing plan utilizing all elements of the traditional and non-
traditional marketing mix
➢ Responsible to influence professional-specific communications and initiatives so that they
also represent transitions as both an aspirational and educational brand that helps the
professional audience becomes true advocates of transitions lenses to their patients, resulting
in greater recommendations, prescriptions, and thus higher conversion rates and penetration
➢ Develop programs and initiatives to achieve the above strategies. In turn, he/she must then
effectively collaborate with the regional general managers and marketing directors toward
global brand consistency and ensuring the effectiveness of the marketing programs within the
regions
➢ Assist the regions in the development of the overall communication strategy and branded
communications based on brand metrics. This includes TVC, Consumer and Trade print
campaigns, and global advertising (media) or promotional campaigns
➢ Provide brand guidance to the regions with respect to retail marketing as they customize their
programs for the respective retailers
➢ Assist the regions in the development of education programs for retailers
➢ Oversees the management of department budget and budget reporting

41
 Manager-Sales

The sales manager is responsible of the sales of the products and the services of the broking
house. He is supported by a team of sales executives. His duties include:

➢ Lead the sales team to achieve short term and long term sales objective
➢ Strengthen distribution set up
➢ Identify new markets for growth
➢ Strengthen depth and width of distribution
➢ Analyze financial requirements of customer and match with company's product offerings
➢ Develop sales plan for each financial product of company
➢ Set objectives and goals with targeted date of achievements
➢ Prepare and execute action, plan to achieve these objectives
➢ Allocate sales resources to optimize sales and profit targets
➢ Recruit advisors and achieve sales targets through them
➢ Achieve expected minimum sales target on a consistent basis
➢ Continuously review performance and set new targets
➢ Manage relationship and provide services to existing and new clients
➢ Ensure acquisition of HNI clients
➢ Motivate and train sales team

 Sales team (Sales executive)

➢ Maximize the sales of a company's financial products and services.


➢ Ensure the commercial success of a diverse range of company's financial products and
services
➢ Identify new markets and business opportunities
➢ Responsible for increasing and developing sales in allotted areas
➢ Visit potential customers to prospect for new business
➢ Act as a contact between a company and its existing and potential markets
➢ Negotiate the terms of an agreement and closing sales
➢ Gather market and customer information
➢ Record sales and order information and send copies to the sales office
➢ Generate sales through leads given by the lead management team

42
 Manager-Marketing

➢ Responsible for developing the marketing strategy that will be put into place by a business or
firm.
➢ Oversee the work of other employees like market research manager, research manager,
product development manager in order to accomplish the marketing objective
➢ Determine the demand for the company’s product or service and attempt to identify the target
market like wholesalers, business firms, government agencies, retailers, or the general public
➢ Responsible for developing a pricing strategy in order to help the firm get the most profits
while also making sure customers are satisfied.
➢ Monitors trends in order to determine when new products or services should be introduced
by working collaboratively with product development specialists, sales and other managers
➢ Responsible for working with promotion managers and advertising managers in order to help
promote the product or services and to attract new customers.
➢ Evaluate the financial aspects of product development, such as budgets, expenditures,
research and development appropriations, and return-on-investment and profit-loss
projections
➢ Formulate, direct and coordinate marketing activities and policies to promote products and
services, working with advertising and promotion managers
➢ Direct the hiring, training, and performance evaluations of marketing and sales staff and
oversee their daily activities
➢ Develop and manage relationships with company’s clients at all levels
➢ Conduct in-depth financial products demonstrations, working closely with sales reps who
manage the account
➢ Cultivate relationships with key opinion leaders in pathology
➢ Develop and execute campaigns to educate the market on various financial products and
services offered by company
➢ Develop commercial launch and marketing plans with budgets to support the overall business
plan and strategy through integrated campaign techniques
➢ Work closely with Product Managers to ensure the benefits and features of the products are
well articulated as per the needs and preference of consumers

 Marketing team (Business development executive)

➢ Responsible for areas such as selling financial services and products


➢ Maintaining relationship with clients and providing business leads, client interaction, team
building, follow up with clients

43
➢ Understanding the requirements of the clients & positioning an appropriate solution.
➢ Would be able to travel on demand as per the Company Policy
➢ Provide company's products and services that best suit customers' planning
➢ Use the sales process and deliver excellent service
➢ Work as part of a team and contribute to their success and minimize risk by following
procedures
➢ Ability to handle corporate presentations, documents, proposals, and managing the
expectations of the customers
➢ Ability to manage the relationship at various levels in the clients
➢ Driving the Sales revenues & achieving them
➢ Identify potential customers, manage existing account/customer relationships
➢ Resolve/coordinate customer complaints effectively
➢ Control and achieve prescribed sales budget
➢ Monitor competitor’s offering, prices and sales

 Lead management

➢ Generating leads for the company


➢ Passing on the leads to the sales department
➢ Keeping follow up of leads

 Product Development Head

The product development head is responsible by designing and introducing new products and
services for its customers as per the market and customer requirements. His key duties include the
following:

➢ Analyze market trends and identify potential markets


➢ Ensure effective new product launch
➢ Research, analyze and recommend opportunities to develop and launch new products for the
brokerage firm
➢ Regularly undertake industry analysis, company analysis, and product analysis
➢ Identification and segregation of potential market Segments
➢ Constantly monitor market, competitor and product developments to identify opportunities
that provide competitive advantage
➢ Development of products in the brokerage firm like risk management products, insurance
products, mortgage products and other lending activity related products

44
➢ Define and document all products requirements and tasks
➢ Providing inputs on product features and help define product specifications
➢ Measuring product performance and identify key factors of improvement like product design
➢ Act as a link between research, marketing and sales to evaluate and identify new products
that will meet the needs of the customer
➢ Revenue generation through new account development and key account management
➢ Arrange pre-sales development discussions with other product development and sales
personnel and third-parties to understand their business models and requirements
➢ Provide training to field staff for product knowledge, proper planning and implementation of
decided strategy
➢ Deliver weekly reports on status of the schedule, missed tasks, targets achieved and
identified risks
➢ Keep the CMO updated on product status and potential issues
➢ Work closely with the CMO to identify gaps in core product functionality and content
offerings as well as to assign priority to key product areas for development
➢ Develop, manage and maintain a strong, competitive product portfolio to support business
objectives

45
OPERATIONS DEPARTMENT

The operations department looks after the daily operations and day-to-day working activities of the
company. The people working in this department come directly in contact with the clients of the
firm; hence the efficiency of the people working in this department directly reflects the efficiency
and the service of the firm. The activities of this department range from collecting documents for
account opening, providing efficient customer service to managing risk and maintaining relations
with business associates.

46
Organization chart for Operations department

COO/
VP- Operations

Manager – Account Manager – Risk Manager - Manager – Manager -


Manager - Dealing
Opening Management Administration Customer Service Settlement

Account Opening Client Service Business Associate


Dealer
Team Team Service Team

Associate Risk Risk Operations Funds Settlement Security Settlement


Client Risk Team Team Team
Team Team

Funds pay in & pay Security pay in &


out team pay out team

Process flow of Operations department

The operations department has the most varied nature of functions. Right from opening the demat
account of the client, managing the risk, providing him customer service to dealing and advising
him on investing and settling the orders; all these form a part of this department. Various process
charts below depict the functioning of this department and its members.
47
Account opening process

48
Account Opening Department

Receive Forms form


Marketing Dept or from
Dispatch Dept. (courier)

Contact Client/ Marketing


Document & Form
Send Forms & Documents Exe and clear the objection
Rejection Scrutiny as per KYC Objection
back to source in 3-7 days else mark as
Norms
rejection

Data Entry in Back Office


Software's ERROR

Note:
Opens Demat A/c,
The Verification in done between3
Mentions the DP Client ID
on the Form, Generates Verification Records;
Client Master and attaches 1. Document Submitted
it in Documents 2. Details Entered in Form &
3. Details Entered in Back Office Software's
All OK

Demat: Account Opening Does Client has a


NO
Department Demat A/c

YES

The Verification
Department authorizes the
software to Open Account
IF the UCC/ UCI
reports comes with
a error then; with
the error details The Authorized accounts are picked up
the forms are send for UCC & UCI upload (EOD)
back to scrutiny
Team

UCC/ UCI status report


Error
from Exchange

If Report is OK

The UCC/ UCI team marks the Client Physical Form


Status Active Storage

A Automated Welcome Tele-Sales Dept gives a Details are forwarded to IT


RMS department is
SMS/ Email is send . Also, Welcome call to Client departments to create &
informed so that the limits
Welcome Letter is Printed informing that this A/c is activate Client in Trading
are Set
and given to Dispatch Dept Open and he can start Software/ Dealing Terminal
trading/ investing.
49
Risk Management process

50
Risk Management

Create the Upload the


Pre Market

limit file as limit file on


Start
per policy the ODIN
norms terminals

Debit in end Approval for debit Monitor debits


client > No limit for any branch/ of sub-brokers
5 days? sub broker ?

Yes
Yes
Check Market
conditions
Approval
Live Market

Square off Increase from


position limit higher
authority

Market highly
No
volatile

No Yes

In case of loss
Warning call
square off
to the clients
open position
Post Market

Phone calls to
sub brokers and End
end clients

51
Dealing process

52
Pre Market Check for any
latest events
and updates Study the
fresh market
Update your
conditions
knowledge by
reading daily Take and
reports execute pre-
market
orders

Incoming Voice Call

Customer Verification:
Client Code
Mobile Number
Email Address END CALL
Date of Birth

RE VERIFY
Client Data Give appropriate Transfer to Customer
NO
Verified answer Service Department

YES

Accept & Place


Limit Order Market Order
the Order

Inform Client &


Order FAILED/ Inform the Client & transfer FAILED/ Order
PENDING act as per his
Status ERROR the Call to CSE with Error Log ERROR Status
Request
CONFIRMED EXECUTED
Inform Client Inform Client
EXACT Order EXACT Trade
Details Details
END CALL
Post Market

Make client
confirmation
calls Communicate
updates to
clients Find out error
trades and make
changes, if any Execute option
exercise orders

53
Settlement process

54
Settlement Cycle

Sell A Investor Places Order Buy

Trade
Date = T
Credit In Client Debit In Client
Ledger A/c Ledger A/c

Does Client has Broker Intimates Does Client has


Broker arranges
Shares in his Demat NO Exchange – “Short NO sufficient Funds in
fund on his behalf
A/c PayIn” his A/c
T+1 T+1
YES YES
Shares are
Funds are Paid to
arranged in PayIn
the Exchange
Pool A/c

Process of Settlement of Funds & Shares in Clearing House

T+2

Exchange will Credit


Is there a Short Exchange will Credit
Funds in Broker NO NO
PayIn Shares in Broker Pool A/c
Settlement Pool A/c

Broker will check Clients


YES Ledger A/c

Exchange Call for Auction Credit Debit

T+3
Exchange will Shares are Broker will
Broker will Dr. Broker will
Auction penalty +
collect Auction T+5 Did Exchange arranged in PayIn maintain Sh
penalty from sell the Sh.
Credit given received required Sh. YES Pool A/c in Pool A/c & Cr. Clients
broker of Seller & till the client
against Sale of In Auction A/c
pay to Auction T+5 clears Dr.
Sh to Client A/c
Seller
NO
T+6
Exchange will call for
Replacement of Bad Delivery

Did Exchange
received required Sh.
In this Auction
T+8

NO
Exchange will pay back
Exchange will collect Close Exchange will process
PayIn Funds + Close Out
Out Penalty from Broker “CLOSEOUT”
Penalty to Broker
T+9
T+9
Broker will Cr. Clients A/c
Broker will Dr. Close Out with funds received from
penalty + Cr. against sale of Exchange
Sh to Client A/c

END Process

55
Customer service process

56
Queries

Through Email/ Through Tele-


Live Chat Service
Website Phone

Customer Verification:
Client Code
Mobile Number
Email Address
Date of Birth

Queries
Database
Forward to
Client Data Marketing
NO YES Marketing
Verified Related
Department

NO
YES
Give appropriate
END
answer
Data Update Accept & Document Query

Informative Action Required

Provide the
Forward to
Required
Approprate Dept.
Information

END
Follow up with
Dept & keep the
client informed
NO

Escalate to higher
Is the Query
authorities & After 48Hrs
Solved
Data Update Follow UP

END

57
KRA Guidelines for Operations department

 Chief Operations Officer/VP-Risk Management

The COO / VP- Operations plans, directs, and coordinates operational activities at the highest
level of management with the help of subordinate managers. He/ she is responsible for handling
various procedures adopted by the different departments under his/her control which includes
account opening, dealing, settlement, admin, risk management and customer service. The duties
are:
➢ Within the Investor Dimension
• Profitably manage rapid recent growth and future expansion plans
• Plan and execute for the short/medium and long range horizons
• Consolidate all business units and shared services into one cohesive unit
• Integrate newly acquired entities and capabilities into one organization
• Lower cost through optimization of people, processes, technologies
• Squarely meet and overcome operational challenges
• Replicate best practices across business units/entities/acquisitions
• Succession Planning for CEO (when CEO is closer to retirement)
• Succession Planning for CEO (for crises that cannot be planned for)

➢ Within the Client Dimension:


• To accomplish market dominance from present market leadership
• To be the executive owner for major clientele
• To plan, build and deliver even greater value to customers/partners
• To improve profitability of existing client contracts thru price revisions
• To win new profitable business in new markets/new geographies

➢ Within the Employee Dimension:


• Provide inspirational people leadership for the management & employees
• Integrate people through vision, mission, values and organizational structure
• Manage day to day operations through effective action oriented approach
• Ability to build managers, domain competencies and unleash innovation

➢ Within the Management Team:


• Ability to build a trust based relationship with the CEO
• Ability to collaborate with a Founder CEO if CEO is Founder or

58
• Ability to collaborate with a Professional CEO (as the case may be)

 Manager-Account opening

The Manager – account opening is responsible for the supervision of the entire procedure of
account opening which includes procuring a client, getting the documents duly filled, verification
of the documents, as well as updation of new information. For this he/she has a team working
under him. His duties include the following:
➢ Verify whether KYC, MCA/ TPA, RDD are executed in the prescribed formats and the same
is executed before execution of trades for the client
➢ Verifies all the financial details of the clients and checks whether all the fields in the KYC
are filled as per SEBI norms
➢ Checks whether proper proof of identity, PAN and proof of address are taken
➢ Checks whether person verification of the clients are done by the employees working in the
team under him
➢ Checks whether date of verification, name and signature of the official who has done in-
person verification and the member’s stamp is incorporated in the client registration form
➢ Checks whether all the details of the client including financial details are updated
periodically

 Account opening team

The account opening team works in assistance with the manager – account opening. This team
assists the manager in client registration and documentation process. The responsibilities of the
account opening team are:
➢ Ensures and checks whether the documents like Know Your Client (KYC), Member
Constituent Agreement (MCA)/ Tripartite Agreement (TDA) and Risk Disclosure Document
(RDD) are in place
➢ Verifies the formats in the documents along with the attachments and also checks the clauses
mentioned
➢ Maintains the system of storage of client registration documents and its retrieval
➢ Explains the procedures to acquaint the new client
➢ Periodic review of the client information and its updation
➢ Helps the Manager in procuring new clients
➢ In- person verification of the clients
➢ Assists in the procedure of delivery of the client registration details to the clients

59
 Manager – Risk Management

Risk Management is an important function for a broking firm. The duties of the manager are as
follow:
➢ Planning, organizing, reviewing and evaluating the work of the staff based on risk
management practices
➢ Ensuring sound guidelines for risk management capabilities based on market risk, credit risk,
operational risk
➢ Work with subject matter experts in key areas of risk management across buy-, and sell-side
clients, as well as brokerage
➢ Define critical gaps in capability, design a recommended future state, and outline an
implementation strategy
➢ Prepare and obtain bids based on sound insurance benefits
➢ Prepare strategies to hedge risk for the clients

 Client Risk Team

These are the direct clients with the broking house without having any associates. Sometimes the
clients want their credit limit to be increased for trading that is when this team comes into the
picture. Their duties include:
➢ Check the credit history of the client and determine whether the limit can be increased for the
client.
➢ Keep a check on the trading pattern of the client once the limit is increased
➢ Responsible for collection work from these clients

 Associate Risk Team

➢ Managing the risk of associates like brokers, sub-brokers etc.


➢ Keep a check for cases where the broker may default on the customer
➢ Keep a check on the deposits from the sub – brokers and the brokerage

60
 Risk Operations team

➢ Develop and direct the implementation of goals, objectives, policies, procedures, and work
standards for the risk Management department
➢ Plan, organize, assign, review, and evaluate the work of assigned staff
➢ Perform comprehensive review and analysis, and develop recommendations regarding the
Company’s insurance needs;
➢ Develop insurance specifications and prepare all statistical data to provide prospective
underwriters with specifics for rating premiums and analyze and recommend appropriate
levels of self-insurance retention and policy limits
➢ Monitor insurance or risk management-related legislation, legal cases, and court decisions in
order to evaluate their impact on the company
➢ Develop recommendations or implement technical, policy and procedural modifications as
necessary
➢ Confer with and provide professional assistance to various company departments on risk
management related matters and makes presentations to management staff or other
departments
➢ Develop and recommend programs relating to reducing and/or preventing company liability
➢ Review procurement and contracting documents and activities and identifies appropriate
indemnification tenders and insurance requirements to mitigate areas of liability

 Manager – Dealing

His key responsibilities include:

➢ Analyze the quality of research


➢ Monitor the functioning of the dealing department
➢ Ensure that the staff in the dealing department are well aware and conscious of the market
conditions and changes

 Dealer

Dealer is the face of the broking house to the market. Hence it is very important that he is well
educated and aware about the market. Every dealer has to be registered with the SEBI. The
primary responsibilities of a dealer include:

61
➢ Execute the trades for his/her firms accounts i.e. those clients who have an account with the
particular broking firm
➢ Interact with the clients in real time since online broking services are now available
➢ Send e- mails, fax to the clients for day to day communication
➢ Acquire an understanding of products and services required by the client

 Manager-Customer Service

The Customer service manager has two teams-a client service team and a business associate
service team. Business associates include the brokers and sub-brokers and are like partners to the
business. The duties of the customer service manager include:

➢ Responsible for handling two teams, one for addressing the client’s complaints and the other
team for addressing complaints of business associates
➢ Ensure that the complaints from both of these teams are answered as soon as possible
➢ Scrutinize the complaints to check their validity
➢ Organize a system to report the complaints
➢ Organize a procedure to resolve the complaints
➢ Maintain an periodicity for complaints registered
➢ Maintain an online 24 hour customer help system

 Client Service Team

➢ Answers all the complaints of the client and solves them


➢ Maintenance of a complaint register
➢ Create a designated email id for grievances of the investors/clients
➢ Keep a check on the periodicity for handling the clients grievances

 Business Associate Service Team

➢ Solve the complaints of the business associates efficiently as they are partners to the business
➢ Maintenance of a complaint register
➢ Check whether the complaints are received from the branch/sub broker
➢ Create a designated email id for grievances of the branch/sub brokers
62
➢ Keep a check on the periodicity for handling the sub brokers grievances

 Manager – Settlement

The manager – settlement scrutinizes the funds and settlement teams.

➢ Oversee self-administration of all liability claims and recommends and authorizes settlement
amounts on all claims and litigation against the company.
➢ Ensure timely settlement of trade for the client
➢ Meeting out the delivery obligations & settlement of all trades
➢ Smooth flow of all pay-in and pay-out for clients
➢ Passing information to the finance department
➢ Taking the trade files from the exchanger and inputting into the system

 Funds and security settlement team

This department works in tandem with the finance department because it has to keep a check on
the funds pay-in and pay-out of the clients.

➢ Check whether pay-in and pay-out is received from or delivered to the respective clients
➢ Check whether clients funds/ securities are transferred to respective clients within one
working day of pay-out from exchange
➢ Registration of the securities to be provided
➢ To check whether pay-in and pay-out was received from or made to account other than the
respective clients and also ensure the compliance in this regard
➢ To check whether bank book and register of securities are in alignment with bank statements
and transaction statements provided by banks

63
ADMINISTRATION SECTION

Administration department provides clerical and administrative support to an organization, either as


a team or individually. This department is responsible for co-coordinating and implementing office
procedures and specific projects, providing training to junior staff for proper implementation of
administration policy. It is also involved in dealing with telephone and email enquiries, creating and
maintaining filing systems, keeping diaries and taking appointments for staff. It looks after the
dispatch of important documents from the firm and segregates and sends incoming documents to
the relevant department. Most work of this department is clerical in nature and requires
communication and word processing skills.
64
65
Organization chart for Administration section

Manager -
Administration

In charge – In Charge -
Housekeeping Maintenance In charge -Security In charge- Logistics

Housekeeping
Maintenance Team Security Staff
Team

Process flow of Administration section

Work performed by the administration section may not be regarded very highly, but is equally
important for the proper functioning of the organization. However, this work is usually outsourced
to an outside agency.

66
Housekeeping process

67
Housekeeping process

Reporting 1hr before Cleaning the Desks Clean the dustbins


office opens and Floors

Clean and Refill


water bottles

Ensure that
conference rooms
In case of meetings Serve Refreshments
are clean and
maintained properly

Reporting inventories Maintaining


requirement to House- cleanliness in
keeping Incharge washroom

END

68
Maintenance process

69
Maintenance process

Check all office


Complaint received from
Infrastructure is
Department/employees
maintained properly

Check /verify what is the


No Properly maintained
problem

Replace/Repair any Check whether it is


Yes
Infrastructural problem working properly

Report to Manager-
END process
Admin

70
Security process

71
Security process

Open office 1hr before Check entire premises


office time for security breach

Ensure proper security


in premises

Scan & Register Monitor the


movement of movement of
people in &out vehicle

Respond to
Emergencies
Effectively

Check all entry and


exit after all
employees leave at
the end of the day

Close the office


premises

END

72
Logistics process

73
Logistic Storage Process Flow Chart
Request

Internal
Departments

Logistic Team On the Basis of;


1. Department
2. Bulk
3. Frequency
4. Importance
Collection Center

Receives
Segregation Dispatch to
Documents Scanning of Initial Location
of Storage
from Documents Marking
Documents Location
Departments

Excel Data
Base

Excel Data
Base
Storage Center

Final Location
Receipt
END Marking & Entry
Confirmation
in Database

74
Logistic Retrival Process Flow Chart

Document
Demand’s by
R eq u es t

External Auth

Internal
Departments

Receives request Queries the


Forwards the
from Department’s Database to
Logistic Team Request to Storage
for retrieving find the
Center
documents Loaction
C ollect io n C en te r

Excel Data
Base

Excel Data
Base
S to ra ge C e n te r

Send’s to the
Confirms the Search the
Collection Center
END Receipt and Required
or Required
Maintains Track Document
Location

75
KRA Guidelines for Administration section

 Manager-Administration

➢ Responsibility for the overall work performance of a company


➢ Management of office environment
➢ Gathering, adapting, storing and distributing information within the company
➢ Providing specialized support to other departments and managers
➢ Providing document and telecommunication management
➢ Planning, organizing, providing leadership and controlling all administrative functions
➢ Managing quality and cost control
➢ Rendering a service to other functions within the organization
➢ Providing training and development for your own staff
➢ Ensuring that human and material resources are correctly utilized
➢ Oversee facilities planning and maintenance and support operations

 In-charge – Housekeeping

The main responsibilities of the housekeeping in-charge include:

➢ To ensure that agreed standards of cleanliness and hygiene are maintained in organization
with correct procedures and administration
➢ Organize day-to-day work requirements and set required standards against which work will
be checked, in accordance with correct procedures and administration on an as and when
required basis
➢ To ensure that all equipment, furniture and furnishings are maintained, checked and kept in
good working order in accordance with correct procedures and report all relevant faults
➢ Assign workers their duties and inspect work for conformance to prescribed standards of
cleanliness
➢ Investigate complaints regarding housekeeping service and equipment, and takes corrective
action
➢ Coordinate work activities among departments
➢ Conduct orientation training and in-service training to explain policies, work procedures, and
to demonstrate use and maintenance of equipment
➢ Evaluate records to forecast department personnel requirements
➢ Make recommendations to improve service and ensure more efficient operation
➢ Purchase, re-order and maintain housekeeping supplies and inventory
76
➢ Maintain the housekeeping budget, providing billing summaries and expenses for all pre and
post events

 Housekeeping staff

➢ Clean rooms, hallways, lobbies, lounges, restrooms, corridors, elevators, stairways, locker
rooms and other work areas so that health standards are met
➢ Clean rugs, carpets, upholstered furniture
➢ Empty wastebaskets, empty and clean ashtrays, and transport other trash and waste to
disposal areas
➢ Sweep, scrub, wax, and/or polish floors, using brooms, mops, and/or powered scrubbing
➢ Dust and polish furniture and equipment
➢ Keep storage areas and carts well-stocked, clean, and tidy
➢ Replace tube-lights and bulbs
➢ Replenish supplies such as drinking glasses, linens, writing supplies, and bathroom items
➢ Wash windows, walls, ceilings, and woodwork
➢ Move and arrange furniture, and turn mattresses

 Incharge – Maintenance

➢ Ensure all assets and equipment are in place and working effectively to ensure asset
reliability
➢ Manage and direct staff by providing ongoing training, recruiting, and counseling
➢ Provide overall project management for all initiatives using either internal or external
resources
➢ Ensure inventory of spare parts is adequate to support good equipment reliability, and also
maintain cost
➢ Ensure smooth co-ordination with other department
➢ Analyze trends and identify continuous improvement opportunities
➢ Establish organization-wide standards and best practices including developing policies,
procedures, and work flows
➢ Supervise and assigns the work of maintenance employees
➢ Determine material, equipment, and supplies to be required
➢ Supervise and maintain routine records

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 Maintenance Staff

➢ Look after the maintenance of the office infrastructure like office furniture, plumbing,
electric points, telephone connection etc
➢ Manage the entire arrangement in case of any conference, meeting or event like checking
whether the projector is functioning properly, the seating arrangement is proper etc

 In-charge – Security

➢ To lead and manage the security department and staff ensuring the safety and security in of
the firm
➢ Manage the day-to-day operations of the security department and direct the activities of the
security staff
➢ Operate the security department within budgetary guidelines and in response to actual
business conditions
➢ Develop and implement policies and controls on issues relating to security operations to
include patrol schedules and procedures, emergency procedures, key control, package
inspections, security reporting, handling of disturbances and suspicious activity, etc.
➢ Ensure that all security employees consistently adhere to uniform, grooming and appearance
standards
➢ Develop and conduct effective training programs geared to educate staff on specific job skills
and to the enhance expertise of personnel
➢ Establish goals for the security department and implement procedures to achieve such goals
➢ Maintain effective communication within security department and other departments
➢ Ensure that staff is kept aware of issues relating to security in the organization
➢ Ensure that relevant reports are completed in a clear, professional manner
➢ Maintain accurate documents on all security reports & review all security reports daily
➢ Maintain adequate supply of all materials used in department
➢ Ensure security staff performs their respective duties effectively & monitors and verify the
attendance record of the staff

 Security Staff

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The security staff is basically responsible for the overall security of the premises of the firm. In
India, this service is usually outsourced, not just in broking firms but in any industry. The basic
duties and responsibilities of the security staff include:

➢ Opening and locking/closing of the office premises at the start and end of day respectively
➢ Keep a check and maintain records of all the people entering and leaving the office premises
➢ Prevent unapproved or unlawful entry and control the movement of people at entrances
➢ Monitor the movement of vehicles and their parking, operate the gate and examine vehicle
contents, monitor remote entrances
➢ Respond to emergencies such as medical and bomb threats and to alarms such as fire and
follow emergency response proceedings

 In-charge-Logistics

➢ Monitoring the quality, quantity, cost and efficiency of the movement and storage of relevant
documents
➢ Coordinating with other departments for smooth flow of activities and information
➢ Analyzing data to monitor performance and plan improvements and demand
➢ Allocating and managing staff resources according to changing needs
➢ Proper storage of departmental documents
➢ Optimum utilization of infrastructure effectively
➢ Implementing health and safety procedures
➢ Managing staff training issues
➢ Motivating other members of the team

79
RESEARCH DEPARTMENT

The research department deals with primary and secondary research activities for the firm. The
research undertaken by a broking house forms an important constituent of the service provided by

80
it. Hence it is very important for a broking house to have a good research team. The importance of
this department cannot thus be underestimated.

Organization chart for Research department

CRO /
VP - Research

Derivatives Mutual Fund Currency Research


Manager Manager Research Team Research Team Team

Assistant Manager Assistant Manager

Trainee Trainee

Equity Research Team Commodity Research


Team

Process flow of Research department

Typically, a research department has many sub-teams in it who research on various areas like
equity, mutual funds, derivatives etc. Since the core area of functioning is research, the process
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followed by all the sub-teams is similar. The process followed by a research department is shown in
the chart below.

82
Research process flow

Research based on Daily researching


fundamental and via internet,
technical analysi s journals, etc.

Develop the
various tools

Generate reports for


the portfolio team

Support the research


on all investments

END process

83
KRA Guidelines for Research department

 VP-Research

➢ Ensure that the research team conducts in-depth analysis of the industry and publicly-traded
companies in the main sectors
➢ Responsible for the overall administration for developing, coordinating, and stimulating
research
➢ Ensure compliance with all applicable laws and regulations
➢ Develop deep understanding of the sector trends and individual company performance within
the sector by leveraging primary research, publications, website, conferences and seminars
and personal contacts
➢ Prepare an accessible database for data pertaining to the relevant universe of companies
➢ Develop conviction on ‘buy’, ‘sell’ or ‘hold’ positions, and articulate investment opinions to
fund managers and dealing department
➢ Understand the specific business needs of the front office in respect of the market and direct
research activities to support the requirements
➢ Provide management information to the management on a periodic and ad hoc basis.
➢ Liaise with other staff within the on all market related issues
➢ Manage the relationship with the external providers of research and analysis
➢ Motivate the research team to ensure that the research is of the best quality
➢ Make plans and schedule the activities of the department
➢ Provide regular feedback to the research team so that it helps them improve the quality of
their research

 Manager-Equity

➢ Primarily responsible for company and industrial research


➢ Create concise reports upon which the portfolio management team will look into for
reference and support and to provide advice to clients
➢ Daily researching industry data via the internet, journals and periodicals
➢ Supporting research on all investments across all industrial sectors
➢ Responsible for developing and maintaining data capture tools and stores

84
 Manager – Commodity

➢ Research on the commodity market and come up with new strategies which can benefit the
clients in this market
➢ Prepare timely reports on his findings and research and then submit it to the brokers who
advice the clients
➢ Constantly work to acquire in depth knowledge about the commodities market and its
functioning

 Manager – Mutual Funds

➢ Analyze the mutual fund market, the needs of the customers and prepare reports based on
this analysis
➢ Keep himself abreast of the latest schemes launched by mutual funds
➢ Study the existing schemes available so as to give advice to clients

 Manager – Currency

➢ Study and acquire in depth knowledge about the currency market and its functioning
➢ Research on this market and come up with new strategies which can benefit the clients in this
market
➢ Prepare timely reports on his findings and research and then submit it to the brokers who
advice the clients

 Manager-Portfolio Management Services/Wealth Management

➢ Daily management of client risk contact


➢ Financial reporting and managing client funding and related reporting
➢ Liaise with an underwriting team to review credit limits
➢ Maximize collections through holds and minimize the risk of loss
➢ Working closely with debt recovery team
➢ Mitigate the risk of loss by taking relevant actions like reduce or cancel credit limits, block
customers, set up payment plan, take legal actions
➢ Attend cash calls with client and communicate portfolio performance
85
 Research Associate

➢ Duties include financial data gathering, fact checking, firm and industry analysis, etc
➢ Data Entry and Analysis, MIS Reports, Inter & Intra Department coordination, making
presentations
➢ Reports preparation by analyzing entity & assignment of credit rating
➢ Compiling of data
➢ Checking accuracy of report
➢ Perform complex analysis & work on financial / industry research based reports

 Research Trainee

➢ Carrying out department daily functions & processes


➢ Collection and analysis of data
➢ Demonstrating skill with basic software used to analyze data
➢ Write summaries, abstracts, documentations of files, and verify whether other written
materials are clear, logical and concise
➢ Write simple programs; conducts relatively simple statistical and other analysis after
receiving basic instructions
➢ Plans, organizes and accomplishes assignments to meet established deadlines
➢ Demonstrate a clear understanding of the assignments and the purpose of the research and
can effectively convey ideas

86
COMPLIANCE DEPARTMENT

The compliance department is responsible for establishing, implementing, administrating and


overseeing company’s compliance program. It monitors day-to-day compliance issues and
implements compliance policies and procedures in the firm. It thus attempts to promote an
awareness and understanding of positive ethical principals consistent with organizational policies
and goals as well as those required by law. This department works in close coordination with the
legal counsel and seeks it advice with appropriate. It provides quarterly reports to the board
regarding the operation and status of company’s compliance program.

87
88
Organization chart for Compliance department

CCO /
VP - Compliance
Principal
Officer

Manager - Audit Manager - Legal Compliance Team

Manager – Manager – Manager –


Audit Officer Corporate Operations Business
Compliance Compliance Development

Process flow of Compliance department

This department is one of the most important departments in a broking house. The department looks
after the compliance procedures as per rules laid down by the regulatory authorities from time to
time. It also has to look after the audit and the legal law of the land. However, the audit and the
legal functions are usually out-sourced. The compliance team follows a certain procedure which is
given below.

89
90
Introduction of a Change in existing
new policy by policy by regulatory
regulatory authority authority

Study the new policy

Delegate new
Build new
policies and norms Arrange training
compliance policy
to concerned for staff
and procedure
departments

No

Solve queries of
employees
Yes Queries solved
regarding new
policies

Monitor
Send copy of new
Implement new compliance by
policy to internal
policy conducting
auditor
periodic audit

Implementation
Report to CCO Yes complying with new
policy

No

Identify deviations
END process
and recitify

91
KRA Guidelines for Compliance department

 Chief Compliance Officer

➢ Implementing written policies, procedures, and standards of conduct


➢ Establishing a compliance committee
➢ Developing effective lines of communication
➢ Enforcing standards through well-publicized disciplinary guidelines and developing policies
addressing dealings with sanctioned individuals
➢ Conducting periodic risk assessments and response plans
➢ Conducting internal monitoring and auditing and
➢ Responding promptly to detected offenses, developing corrective action, and reporting
findings to the government via established channels
➢ Ensuring that the activities of regulated companies are monitored to ensure that they are
complying with their legal and regulatory obligations
➢ Making determinations in relation to issues or allegations of non-compliance by company as
part of the compliance management process
➢ Ensuring, as part of the issues management process, that regulated companies understand
their legal and regulatory obligations. This supports one of the key goals of the compliance
office, which is to create a culture of compliance in the company

 Principal Officer

The objective of appointing a Principal Officer (PO) is to create a vigilance person whose
responsibility will be to find suspicious financial transactions in ordinance to PMLA and to
prevent the organization from facilitating money laundering unknowingly. The duties of the
principal officer include:
➢ Monitoring transactions
• Daily – At the end of the day, the PO will generate a report of all the transactions
done in the clients’ account whose value is more than 10 lacs. Once the report is
generated, it is analyzed to find any suspicious transactions like if the client is trading
beyond the declared income of his financial status which does not justify the trade
value.
• Weekly – Possibly on Saturday or before Monday noon, the PO generates a report
mentioning the names of all the clients who have done a cumulative transaction over
10 lac or who have deposited funds of more than 10 lacs within a week.

92
• Monthly – Before the 5th working day of every month, a report is generated by the PO
mentioning the names of all the clients who have done a cumulative transaction of
over 10 lacs or who have deposited funds of more than 10 lacs within a week and the
cumulative family-wise data. This report is then analyzed for abnormalities.
• Quarterly - Before the 10th working day of April, July, October and January, a report
is generated by the PO mentioning the names of all the clients who have done a
cumulative transaction of over 10 lacs or who have deposited funds of more than 10
lacs within a week and the cumulative family-wise data. This report is then analyzed
for abnormalities.
• Any suspicion found is immediately reported as per the PMLA to the immediate
supervisor.
➢ Demat Transaction Monitoring
• A report is generated every fortnight by the demat department and forwarded to the
PO. The report contains all the transactions done differentiated on the basis of
account transfers (OFF market and FOR market), inter depository, demat, remat,
repurchase and pledge.
• The PO needs to take the average 15 days price of the security and generate the value
of the transaction. The report is then sorted individual client-wise, family-wise and
group company-wise.
• The transactions are monitored according to the value of the transaction over and
above the declared income or financial status of the client and any repeated circular
transactions.
• Any suspicion found is immediately reported as per the PMLA to the immediate
supervisor.
➢ Organizing training programs on Anti-Money Laundering Act for the staff who are involved
in daily activities, financial transactions and KYC like dealing team, settlement team, demat
and account opening teams, etc
➢ Verifying and scurrility of the documents of the clients, families or groups and especially
large corporate (listed and non-listed), NRI’s during client account opening process
➢ Personally interviewing clients who have declared wealth above 10 lac or intend to trade
(intraday) above 1 Cr in a month or who have given initial margin of Rs. 5 lac and above in
the form of monies or securities
➢ Personally interviewing clients who are NRIs or corporate/trust who promote NRIs. The
interview may be done through telephone but it is preferred to meet the client in person.
➢ Try to find out the risk appetite of the client – high, medium or low in the interview process
so that it helps in finding out any suspicious trading or transactions in the future
➢ Personally interview and scrutinize the documents of the clients including income documents
of the employee involved in maintaining and updating critical information about the
transactions of the client and also of the employees who facilitate transactions of the clients
like dealers, settlement officer, etc
93
 Manager-Legal

➢ Vetting of Property documents and liaise with Law firms in getting title certificates,
drafting/vetting of Leave & License/Lease Agreement, Amenities Agreement for branch and
sales office
➢ Handle investor grievances/complaints filed by clients with Investor grievances committee of
Stock Exchanges NSE, BSE, MCX, SEBI and other regulators
➢ Draft suitable response /reply to the Investors grievances/complaints after coordinating with
respective branches, customer relationship team and other departments
➢ To attend the hearing at Investors Grievances Committee/Arbitration hearing to argue/defend
the matter
➢ Drafting of documents, Statement of case, reply, rejoinder, sur-rejoinder and other
application for arbitration proceedings filed by or against the company and investigating the
matters
➢ Conduct execution for enforcing awards in arbitration referenes
➢ Draft replies to Adv. Notices from clients and regulatory and other authorities
➢ Issue statutory notices under Negotiable Instruments Act and debt recovery notices to clients
➢ Handling litigation such as consumer cases, cheque bouncing cases, civil and criminal cases
etc., regular follow up on service of summons & warrants to the accused
➢ Drafting and vetting of Financing/Loan Documents and security documents
➢ Drafting and vetting of borrowing documents such as Working Capital Agreement, Loan
Documents, Trust Deed, CP Agreement and to create securities in favour of the Lender
➢ Review of all existing documents on a periodic basis and modify the same at regular
intervals to strengthen the documents and also to comply with the amendment as may be
proposed by the regulators / internal policies of the company from time to time
➢ Draft, negotiate and finalize Service Level Agreement, Vendor Agreement, Non Disclosure
Agreement, Confidentiality Agreement, etc
➢ Assist business in developing deal structures for new transactions
➢ Advise various departments across the company on legal issues raised by them

 Manager-Audit

➢ Examine and evaluate the effectiveness of financial controls


➢ Make key decisions on a regular basis within department and influence across organization
➢ Manage the development of systems to measure and engage policies and procedures
following the process upon implementation with continual influence
➢ Conduct departmental evaluations for operational performance
➢ Conduct compliance audits
94
➢ Oversee the evaluation and presentation of internal audit results for presentation to other key
positions
➢ Constant interface with senior management
➢ Perform financial and operational audits of organizational and functional activities, in order
to verify accuracy of financial information, ensure proper accountability and evaluate
compliance with plans, policies and procedures
➢ Plan and executive internal audits, utilizing risk assessment methodologies to assess
financial, accounting, and operational risks
➢ Identify, assess, evaluate, and document internal controls over processed audits
➢ Recommend additional controls to strengthen internal and operational controls

 Audit Officer

The job profile of an audit officer includes the following:


➢ Internal audit and risk assessment based on verification of records and end to end processes
➢ Implementation of audit plan given by Sr. audit manager
➢ Assessing, analyzing and verifying data collected
➢ Physical verification of data, if required
➢ Preparation of the audit report with observations and recommendations, and submitting to
audit manager
➢ Preparation of presentations for audit committees

 Manager-Corporate compliance

➢ Implementing a central repository/application to track all compliance requirements


➢ Monitoring all enterprise-wide compliance activities and staying abreast of compliance
issues
➢ Establishing an annual compliance review/audit plan
➢ Performing and coordinating independent reviews/audits
➢ Identify compliance weaknesses and assist departmental areas with enhancing related
controls and processes
➢ Establishing formal reporting process for keeping the risk management committee, senior
officers, and the audit committee informed regarding compliance matters
➢ Managing processes designed to ensure that all board policies and key management-level
policies are reviewed and updated annually

95
➢ Periodically reviewing and updating the company’s code of conduct to ensure continuing
currency and relevance in providing guidance to management and associates

 Manager-Operations Compliance

➢ Plans, organizes, and conducts complex operational, financial, compliance and IT related
audits of business operations
➢ Develops test plans to evaluate internal control design
➢ Assists Coordinating Auditors and audit manager in performing and/or leading audits of
business operations, IT environments including reviews of general IT controls and
application controls
➢ Assists the audit director with risk assessment, annual audit plan development, and
department process improvement initiatives
➢ Assists with quality assurance/peer review of audit work papers to ensure compliance with
professional standards, drafts audit reports, management action plans and conducts exit
interviews with auditees and senior management

 Manager-Business development

➢ Oversee compliance as regulatory guidelines and company’s policies


➢ Oversee compliance as per privacy regulation
➢ Develop policies & procedure to support privacy compliance
➢ Design privacy training programs

96
TECHNOLOGY DEPARTMENT

With quick changes in technology today, the technology department has started gaining more
importance recently. Also, since many services given by a broking firm are now based on the use of
technology and the internet, the need for a full-fledged department has been felt now. This
department mainly provides the much needed technology support to the services offered by a
broking firm.

97
98
Organization chart for Technology department

CTO/ VP -
Technology

Manager –
Manager – Data Manager – IT Manager – IT
Software
Security & Backup Operations Support
Development

Development Team

Process flow of Technology department

The technology department looks after the technology needs of the broking house, right from
developing software and maintaining backup of data to providing IT support to the clients as well
as employees of the organization. Hence, the processes followed by this department are varied. The
following charts depict the process flows followed by each sub-team within the technology
department.

99
Software development

100
Identify software
requirement

Preliminary Prepare project


Project study
documentation proposal

No

Project
specification and Yes Approval by CTO
design

Software Test the


Test successful
development software

No Yes

Maintenance and
Install software
support Feedback from users

END process

101
Data security

102
Check whether
Study the Check whether
firewalls are
information flow in antivirus program
functioning
the organization is proper
properly

Check for any


security breach

Assess processes in
Is there any security
terms of potential Yes
threat to data?
risk and threats

Determine security
Yes No
requirements

Make changes to
the data security Report to CTO
policy

Implement the
END process
policy

Data Backup

103
104
Backup process flow

Identify data for Classify data Take backup of


which backup is to which is critical critical data as per
be taken and important Backup policy

Label the media


Send copy of Store the media
according to type
backup to disaster at the designated
of data stored and
recovery centre place
server name

Update database
Randomly restore and Record test results
with details of
test backup to avoid tampering
backup taken

Report to CTO No Backup is up -to-date

Find out reasons for


deviations and take Yes
corrective action

END process

105
IT Operations/Support

106
Check whether all the
network components
Check whether all the are working properly
employees are • Lease lines
working as per the IT • Server
policy • LAN network
• Internet service
etc.

All components are


IT policy violations Yes No
functioning properly

No Yes

END process

Query received from


an employee

Identify the network


IT Operations/Support
component and the Take corrective action
team
error

END process Report to CTO

KRA Guidelines for Technology department

107
 Chief Technology Officer/VP-Technology

The Chief Technology Officer will provide the strategic vision for enhancing our publishing
products and our infrastructure. He will be a member of the senior management team and will
work with the team to set company priorities and implement processes that will help improve our
product development.

➢ Responsible for overseeing our current technology team and our current platform
➢ Build relationships with vendors, contractors and external companies for all our technology
related initiatives
➢ Responsible for ensuring that the company’s information technology investments are aligned
with its strategic business objectives
➢ Designing and recommending the appropriate technology solutions to support the policies
and directives issued and to satisfy the information needs of the firm
➢ Provide the company with an executive-level subject matter expert on the issues surrounding
the technologies that the firm must employ in order to achieve the company’s strategic
objectives
➢ Develop the technology solutions needed to meet the goals of a modern business.
➢ Responsible for the oversight management of such office automation tasks as desktop
architecture and support, network implementation, software development, and information
management
➢ Evaluate the newest and most innovative technologies and determine how these can help
their organization
➢ Manage and plan technical standards and tends to the daily information technology issues of
the firm
➢ Constantly lookout for developments that could benefit their organization, especially with the
rapid pace of technological change
➢ Demonstrate to a company how information technology can be used as a competitive tool
that not only cuts costs, but also increases revenue and maintains or increases competitive
advantage

108
 Manager – Software development

The Software development manager must help with the development of the organization and be a
key driver for building a great strategy for developing software efficiently and driving strategy for
continued development projects. His responsibilities include the following:

➢ Perform a analysis of the requirements of the broking house


➢ Make a feasibility and cost-benefit analysis, including the choice of application architecture
and framework, leading to the budget and schedule for the project
➢ Update development standards research, new development, modification, reuse, re-
engineering, maintenance, or any other activities that result in software products
➢ Responsible for web site development
➢ Manage existing team of developers
➢ Providing network connections to servers, sub brokers & exchange
➢ Optimizing/enhancing network performance
➢ Continue building the R&D team to attract, train, grow, mentor, and retain talents at all
levels.

 Software development team

The development team would execute the instructions given by the software development
manager and help him to achieve the objectives of their team. Their primary duties include:

➢ Designing and implementing product features and developing tests.


➢ Designing the software applications and the user interfaces as per instructions received
➢ Prepare specification of new software designed
➢ Design and implement the designed software (e.g. installation, configuration,
programming/customization, integration, data migration)
➢ Maintenance of software in use
➢ Authoring of documentation needed by users and implementation partners etc.
➢ Testing, including defining/supporting acceptance testing and gathering feedback from pre-
release testers
➢ Participation in software release and post-release activities, including support for product
users such as developing demonstrations
➢ Analyze the functioning of the current software for subsequent product build/release cycles

109
 Manager – Data backup and security

➢ Ensure that the system security is always maintained to the maximum


➢ Manage user access administration
➢ Leading the team of data & security consultant
➢ Responsible for installation & configuration of security hardware like switches and routers
and software programs like firewalls, anti-virus, anti-spam programs
➢ Ensure co-ordination & integration with customers on network/security related issues
➢ Maintain and test back up for the data stored in the server from time to time as per the
policies of the company
➢ Responsible for keeping the computer network secure
➢ Analyze networks for potential problems and troubleshooting to identify possible security
threats ahead of time
➢ Develop new Internet protocol procedures to deal with viruses
➢ Protect the company's information and projects by developing and implementing data
encryption methods and programs

 Manager – IT Operations

➢ Monitoring, troubleshooting problems of leased lines


➢ Co ordination with service providers of internet services
➢ Troubleshooting of NSDL, CDSL Server and client Terminals.
➢ Handling BSE (Bombay Stock Exchange) and NSE (National Stock Exchange) through
ISDN
➢ Handling day to day problems

 Manager-IT Support

➢ Solve online client's queries, by co-coordinating with the concerned dept


➢ Solve the problems on different client's locations
➢ Maintenance of modems, scanners, printers, Internet mail setups for employees
➢ Attending day-to-day calls related with networks and computer software
➢ Co-coordinating the entire customer support work and ensuring effective functioning of the
system
110
HUMAN RESOURCES DEPARTMENT

The existence of a human resources department is vital to overall productivity and efficiency of the
strong workforce in any thriving company. In most professional organizations, the role of the
human resources department is not sidelined or eclipsed by other departments. In fact, good human
resources can be one of the most valued and respected departments in an organization; their job is
people, and people are the company’s most important asset.

Human resource management is concerned with the people dimension in management. Every
organization is made up of people and thus acquiring their services, developing their skills,
motivating them to high levels of performance, and ensuring that they continue to maintain their
commitment to the organization are essential to achieving organizational objectives. This function
gains even greater importance due to the nature of the industry – service.

111
Organization chart for Human Resources department

VP- Human
Resource

Manager –
Manager – HR Manager – Staff
Recruitment &
Operations Benefits & PR
Training

HR Executive HR Executive HR Executive

Process flow of Human Resources department

The human resources department comprises of a number of sub-teams that handle various tasks
related to the welfare and maintenance of employee relations. The sub-teams in this department
include recruitment and training, HR Operations and Staff benefits and PR. The processes followed
by each of these teams are shown in the diagrams that follow.

112
Recrutiment

113
Receive recrutiment
request

Prepare advertisement
and advertise in various
media

Prepare Job description


HR recruitment team Scan resumes
and specifcation

Conduct a resume
search – internal or
external

Send list of
Organize interview with Call shortlisted
shortlisted
concerned department candidates for Shortlist resumes
candidates to the
head interview
concerned dept.

Call successful
Conduct interview
Decision making Yes candidates for HR
process
round of interview

No Yes Decision making Conduct HR interview

Check references
Decision making
and documentation

Convey decsion to
unsuccessful Make offer
candidates

Confirm appointment
END process Yes Accepted No
and DOJ

114
Public Relations

115
Query / problem
Introduction of Organize outings
raised by an
new rules for staff for staff
employee

Finalize details like


Understand and
venue, date,
identify the problem
transport etc

Formulate a
Arrange resources
solution to the
for the outing
problem

No

Take approval from


VP-HR, if necessary

Determine
Yes message to be
communicated

No

Send draft to
Draft the message
VP-HR for
Draft approved to be
approval, if
communicated
necessary

Yes

Communicate the
message to
Collect feedback END process
concerned
employees

KRA Guidelines for Human Resources department


116
 VP-Human Resources

➢ Provide leadership and coordination of company Human Resource functions


➢ Develop and implement corporate Human Resource strategy and programs.
➢ Create company strategic recruitment and selection plan
➢ Coordinate company equal opportunity programs to achieve diversity goals
➢ Create company strategic training and organizational development plan to meet personal,
professional, and organizational needs of company employees
➢ Oversee compensation programs to ensure regulatory compliance and competitive salary
levels
➢ Oversee the design and development of compensation strategy and programs.
➢ Direct the administration of benefit programs to include health, retirement, death, disability,
and unemployment.
➢ Evaluate and recommend improvements to benefit programs
➢ Recommend and maintain an organizational structure and staffing levels to accomplish
company goals and objectives
➢ Evaluate company culture and provide recommendations on changes to accomplish company
goals and objectives
➢ Evaluate and recommend human resource outsourcing opportunities and identify potential
vendors
➢ Recommend and establish company policies and procedures
➢ Serve on planning and policy-making committees

 Manager - Recruitment and Training

➢ Prepare the Job Description


➢ Identify the Competencies required
➢ Identify the source for hiring
➢ Interview the candidate
➢ Coordinate the interview with the respective department
➢ Ensure that the documentation process is completed when the candidate is hired
➢ Evaluate the training requirements of the hired candidates and arrange their training

 HR Executive – Recruitment
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➢ Assisting the recruitment manager in the recruitment process
➢ Searching the resumes of the probable candidates according to the identified sources of
hiring
➢ Short listing the CVs as per required openings
➢ Scheduling the interviews
➢ Collecting the relevant documents on the selection

 Manager – Staff benefits and PR

➢ Investigate, review and resolve complaints/disputes/issues quickly and efficiently, in an


impartial manner and to the mutual agreement of all parties
➢ Continually review Board policies and procedures to ensure that they reflect the needs of
employee community
➢ Prepare information for management to use during collective bargaining agreement
negotiations
➢ Responsible for planning, developing and implementing PR strategies
➢ Interpret and administer the contract with respect to grievances, wages and salaries,
employee welfare, health care, pensions, union and management practices, and other
contractual stipulations
➢ Advising line managers on staff relations policy and negotiation with unions
➢ Writing and editing in-house magazines, case studies, speeches, articles and annual reports
➢ Managing the PR aspect of a potential crisis situation
➢ Monitor the performance of line and other staff departments to ensure that they conform to
established staff relations policy, procedures and practices
➢ Review Board decisions and provides comments as requested

 HR Executive – PR

➢ Assisting the Public Relations Officer in handling staff disputes and grievances
➢ Arranging staff picnics & other social events in the organization
➢ Looking after the layoff procedure
➢ Provide regular updated data and information to the manager to assist in decision-making

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 Manager -HR Operations

➢ Ensure that proper records of leaves and holidays taken by employees are maintained
➢ Ensure that payroll records are properly maintained so remove any possibility of errors in
making salary calculations periodically
➢ Oversee documentation processes like issue of offer letter, entry forms, opening salary
accounts etc

 HR Executive – Operations

➢ Maintain day to day HR records


➢ Look after salary processing
➢ Print the offer letter and maintain all relevant documents
➢ Open up salary bank account of new employees
➢ Maintain proper leave records

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CONCLUSION

The equity market in India is expanding at a rapid pace, leading to expansion of the broking
industry. Creation of new markets and products has become the norm of the day. The size of the
firm has assumed importance, reach and access have emerged as importance metrics for growth and
there have been major changes in the delivery and distribution channels and processes.

The objective of the report “Micro study of an Indian stock broking firm” was to understand the
working of this industry with respect to the organizational structure of an Indian broking firm. The
aim was to bring out a model that explains how a firm in this industry operates and functions. The
processes followed by each department in a broking firm have helped us to understand the working
of this industry, the impact of the regulators like SEBI, RBI, the government etc on its functioning,
and the importance of this industry to the Indian economy.

The project covered various aspects of a broking house at a micro level like the following:

• General Hierarchy of a brokerage firm


• KRAs of the people working in the organization
• Process flow of the key departments of the brokerage firm

This project has provided a learning of the organizational structure right from the topmost level of
hierarchy i.e. board of directors to the lowest level of hierarchy i.e. junior officer. Along with this, it
has given us an insight on the functioning of the all the departments. This helps us to analyze the
flow of work in a brokerage firm. It also highlights the Key Result Areas of different corporate
profiles in a brokerage firm. Thus, it has been a thorough learning experience.

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