Chapter-1: Geojit Financial Services, Thrissur

GEOJIT FINANCIAL SERVICES, THRISSUR
CHAPTER-1
INTRODUCTION
HOLY GRACE ACADEMY OF MANAGEMENT STUDIES MALA Page 1

INTRODUCTION
This report is an outcome of a study undertaken on the volatility of the
share markets in the financial year 2007-08, on the topic “How far the volatility of
share market affects Geojit’s turnover”. For this study, the turnover of Geojit
Thrissur branch in last two quarters of the financial year 2007-08 was selected.

SIGNIFICANCE OF THE STUDY
Indian markets third most volatile in 2007– 08
The Indian markets were the most volatile in the world after China
and Hong Kong in 2007-08. According to SEBI report the annualized volatility of the
BSE bench mark index Sensex increased to 30.6% in 2007-08 from 27.6% in the
previous year.
Similarly the NSE Nifty recorded annualized volatility 32.1% in 2007-08 compared to
28% in the previous year.
Annualized volatility is a measure of the amount by which an underlying index
fluctuates.
The BSE Sensex touched the yearly high of 21206.77 on January 10, 2008 and
the lowest level of 12425.52 on April 2, 2007, in 2007-08.
The BSE Sensex and NSE Nifty appreciated by 19.7% and 23.9% respectively,
on March 31, 2008, over March 31, 2007.
The BSE Sensex gained 2572 points to close at 15644 on March 31, 2008, from 13072
on March 31, 2007. The Nifty also added 913 points to close at 4735 at the end of
March 2008 over 3822 recorded at the end of March 2007.
India’s annual return on a point to point basis was the fourth highest in the
world after the Hermes index Egypt (56.3%) JCI of Indonesia (33.7%) and Ibov of
Brazil (33.1%).

OBJECTIVES OF THE STUDY
For the effectiveness of the study the objectives are separated under two heads
as follows;
1. Primary objective
2. Secondary Objective
PRIMARY OBJECTIVE
To find out how far the volatility affects Geojit’s turn over in Thrissur.
SECONDARY OBJECTIVE
1. To study about the share market.
2. To know about the volatility of share market.
3. To learn about the latest changes in this market.

METHOLDOGY
OUTLINE OF RESEARCH METHODOLOGY
Research in common parlance refers to a search for knowledge. According to

Clifford woody research comprises defining and redefining problems, formulating
hypothesis or suggested solution; collecting, organizing and evaluating data; making
deduction and reaching conclusions and at last carefully testing the conclusions to
determine whether they fit the formulating hypothesis.
A research methodology defines what the activity of research is, how to proceed,
how to measure progress, and what constitutes success research methodology is a way
to systematically solve the research problem. It may be understood as a science of
studying how research is done scientifically. Thus when we talk of research
methodology we not only talk about research methods but also consider the logic
behind the method we use in the context of our research study and explain why we are
using a particular method or technique and why we are not using others so that
research result are capable of being evaluated either by the research himself or by
others

Methodology
Data sources
Secondary data: It was collected for the study through
- Company record
- Companies publication
- Journal
- Books
- Websites
METHOD OF DATA ANALYSIS
 Analysis of the brokerage income during the period.
Type of research
The types of research used are
 Primary analytical research method
In this the available information or data are analyzed.

STUDY PERIOD
Study period has been limited to 2 weeks starting from august 18th 2008 for the
overall completion of the project. During the period the following step were taken:
 Objectives were set and finalized
 Data were collected and recorded
 Data were analysed and interrupted
 Report were generated
LIMITATION OF THE STUDY

Time factor is a major constraint due to which the study was not able to be
done in depth.

CHAPTER 2
LITERATURE REVIEW

INDIAN STOCK MARKET-AN INTRODUCTION

The Indian stock market has a long history going back 130 years. The Bombay
Stock Exchange, the iconic trademark of our securities market, is one of the oldest
stock exchanges in the world, having been set up in 1875. A pioneer in organized
stock broking activity, this exchange was a brainchild of a group of enterprising
brokers. Over the years, the Indian securities market has evolved gradually to become
one of the Asia’s most modern and efficient markets, setting international standards in
technology and settlement systems.
Stock markets have a stellar role to play in the economic growth of every
country. Needless to mention, the Indian stock market too is inextricably entwined in
the business fabric of our country. At the end of 2003, S & P has ranked the Indian
market 17th in terms of market capitalization on a global scale, 16th in terms of
turnover and 6th in terms of turnover ratio. India has the highest number of listed
securities in the world surpassing even the US which is the world’s largest equity
market in term of market capitalization
The Indian securities market has two fundamental segments- the primary
market and the secondary market. The primary market is the market for new issues
where resources get mobilized either through public issues or through private
placements.

The secondary market provides liquidity to participant’s holdings by enabling

them to buy and sell securities according to their risk return assessments. This market
is further divided into the Over the Counter (OTC) market and the exchange trade
market. The OTC markets are informal markets where transactions are negotiated over
the telephone and/or computer network of dealers.
The two most/tracked indices in India are the BSE Sensex and the S$P CNX
Nifty. Originally complied in 1986, the Sensex is a basket of 30 constituent stocks of
companies that figure in the top 100 in terms of market capitalization. The S&P CNX
Nifty is an S&P endorsed index, owned and managed by the Indian Index Services Ltd
(IISL). It is an index of 50 stocks representing 24 sectors of the economy.
Apart from being a popular avenue of investments, Indian stock market is today
an important source of financing for both the industry as well as the government. It
registers the pulse of the Indian markets and is indeed the most publicized barometer
of the economy.

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ABOUT SHARE TRADING

Usually people invest in shares because of the high return that they expect
from the investment. In the year from 2000 to 2005 we have a return of 17% per
annum in the case of the nifty shares. They never want to make loss on their
investment. So they go through a lot of tips for analyzing the shares are given below:
1. Sales growth
2. Increase in profit of the company
3. Return on investment
4. Volume of shares traded
5. Company management
6. Debt-equity ratio(Up to 1.5 ok)
7. P/E ratio
But even after making investment with a lot of care, there is risk from the factors like:
 Politics
 Government policies………etc
Here comes the importance of financial derivatives in the hands of an investor

to reduce the risk associated with him. The National Stock Exchange and The Stock
exchange, Mumbai have commenced trading in derivatives market with Index Futures
being the first instrument. Now both the exchanges provide trading in Index Futures
and Options and Stock Futures and Options

CHAPTER-3
INDUSTRY PROFILE AND COMPANY PROFILE

INDUSTRY PROFILE
Financial Services Industry
Financial services organizations are striving to achieve increasingly ambitious

profit and growth targets against a background of heightened risk, regulation and
market pressures. As of 2004, the financial services industry represented 20% of the
market capitalization of the S&P 500 in the United States.
Financial services refer to services provided by the finance industry. The

finance industry encompasses a broad range of organizations that deal with the
management of money. Among these organizations are banks, credit card companies,
insurance companies, consumer finance companies, stock brokerages, investment
funds and some government sponsored enterprises.
Customer needs and expectations are evolving in the face of increasing personal
wealth, more private funding of pensions and healthcare and the desire for ever more
accessible and personalised financial products and services. In turn, intense
competition has squeezed industry margins and forced organisations to cut costs while
still seeking to enhance the quality of client choice and service. The battle for talent is
also heating up as companies seek to enhance innovation, customer loyalty and
investment returns.

The corollary of this market evolution is increasing risk as products become

more complex, organisations more diffuse and the business environment ever more
uncertain. Regulation is also tightening in the wake of public and government pressure
for improved governance, transparency and accountability.
In this environment, the winners will be companies that can turn the challenges
into opportunities to build stronger and more enduring customer relationships; sharpen
process efficiency; unlock talent and creativity; use improved risk management
processes to deliver more sustainable returns; and use new regulatory demands as a
catalyst for strengthening the business and enhancing market confidence.
Organisations will also need to identify and concentrate on core competencies

where they can exert maximum competitive advantage, be this a particular product,
service, process or geographical territory. For some this will require a strategic re-
orientation towards becoming a specialist niche provider. Even larger groups will need
to differentiate their offering and by implication the associated brand
In economics, a financial market is a mechanism that allows people to easily

buy and sell (trade) financial securities (such as stocks and bonds), commodities (such
as precious metals or agricultural goods), and other fungible items of value at low
transaction costs and at prices that reflect the efficient market hypothesis. Financial
markets have evolved significantly over several hundred years and are undergoing
constant innovation to improve liquidity.

Both general markets (where many commodities are traded) and specialized
markets (where only one commodity is traded) exist. Markets work by placing many
interested buyers and sellers in one "place", thus making it easier for them to find each
other. An economy which relies primarily on interactions between buyers and sellers
to allocate resources is known as a market economy in contrast either to a command
economy or to a non-market economy such as a gift economy
In finance, financial markets facilitate--
 The raising of capital (in the capital markets);

 The transfer of risk (in the derivatives markets);
 International trade (in the currency markets)
--and are used to match those who want capital to those who have it.
Typically a borrower issues a receipt to the lender promising to pay back the
capital. These receipts are securities which may be freely bought or sold. In return for
lending money to the borrower, the lender will expect some compensation in the form
of interest or dividends.

Definition of financial market
The term financial markets can be a cause of much confusion.
Financial markets could mean:
1. Organizations that facilitate the trade in financial securities. i.e. Stock Exchanges
facilitate the trade in stocks, bonds and warrants.
2. The coming together of buyers and sellers to trade financial securities. i.e. stocks
and shares are traded between buyers and sellers in a number of ways including:
the use of stock exchanges; directly between buyers and sellers etc.
In academia, students of finance will use both meanings but students of economics
will only use the second meaning.
Financial markets can be domestic or they can be international
Types of Financial Markets
The financial markets can be divided into different subtypes:
 Capital Market which is the market for securities, where companies and
governments can raise long term funds. The capital market includes the stock
market and the bond market. Financial regulators, such as the U.S. Securities
and Exchange Commission, oversee the capital markets in their designated
countries to ensure that investors are protected against fraud. The capital
markets consist of the primary market, where new issues are distributed to
investors, and the secondary market, where existing securities are traded.

CAPITAL MARKETS WHICH CONSIST OF:

1. Stock Markets, which provide financing through the issuance of shares
or common stock, and enable the subsequent trading thereof.
2. Bond Markets, which provide financing through the issuance of Bonds,
and enable the subsequent trading thereof.
 Commodity Markets, which facilitate the trading of commodities.

 Money Markets, which provide short term debt financing and investment.
 Derivatives Markets, which provide instruments for the management of
financial risk.
1. Futures Markets, which provide standardized forward contracts for

trading products at some future date; see also forward market.
 Insurance Markets, which facilitate the redistribution of various risks.

 Foreign Exchange Markets, which facilitate the trading of foreign exchange.
The capital markets consist of primary markets and secondary markets. Newly
formed (issued) securities are bought or sold in primary markets. Secondary markets
allow investors to sell securities that they hold or buy existing securities.

Raising Capital
To understand financial markets, let us look at what they are used for, i.e. what
is their purpose?
Without financial markets, borrowers would have difficulty finding lenders

themselves. Intermediaries such as banks help in this process. Banks take deposits
from those who have money to save. They can then lend money from this pool of
deposited money to those who seek to borrow. Banks popularly lend money in the
form of loans and mortgages.
More complex transactions than a simple bank deposit require markets where
lenders and their agents can meet borrowers and their agents, and where existing
borrowing or lending commitments can be sold on to other parties. A good example of
a financial market is a stock exchange. A company can raise money by selling shares
to investors and its existing shares can be bought or sold.
The following table illustrates where financial markets fit in the relationship
between lenders and borrowers:
Relationship between lenders and borrowers
Lenders Financial Intermediaries Financial Markets Borrowers
Interbank Individuals
Banks
Stock Exchange Companies
Individuals Insurance Companies
Money Market Central Government
Companies Pension Funds
Bond Market Municipalities
Mutual Funds
Foreign Exchange Public Corporations

Analysis Of Financial Markets
Much effort has gone into the study of financial markets and how prices vary
with time. Charles Dow, one of the founders of Dow Jones & Company and The Wall
Street Journal, enunciated a set of ideas on the subject which are now called Dow
Theory. This is the basis of the so-called technical analysis method of attempting to
predict future changes. One of the tenets of "technical analysis" is that market trends
give an indication of the future, at least in the short term. The claims of the technical
analysts are disputed by many academics, who claim that the evidence points rather to
the random walk hypothesis, which states that the next change is not correlated to the
last change.
The scale of changes in price over some unit of time is called the volatility. It
was discovered by Benoît Mandelbrot that changes in prices do not follow a Gaussian
distribution, but are rather modeled better by Levy stable distributions. The scale of
change, or volatility, depends on the length of the time unit to a power a bit more than
1/2. Large changes up or down are more likely than what one would calculate using a
Gaussian distribution with an estimated standard deviation.

COMPANY PROFILE

Introduction
Mr. C.J. George and Mr. Ranajit Kanjilal founded Geojit as a partnership firm
in the year 1987. In 1993, Mr. Ranajit Kanjilal retired from the firm and Geojit
became a proprietary concern of Mr. C .J. George. In 1994, it became a Public Limited
Company by the name Geojit Securities Ltd. The Kerala State Industrial Development
Corporation Ltd. (KSIDC), in 1995, became a co-promoter of Geojit by acquiring 24%
stake in the company, the only instance in India of a government entity participating in
the equity of a stock broking company. Geojit listed at The Stock Exchange, Mumbai
(BSE) in the year 2000. In 2003, the Company was renamed as Geojit Financial
Services Ltd. (GFSL). The board of the company consists of professional directors;
including a Kerala government nominee with 2/3rd of the board members being
Independent Directors. With effect from July 2005, the company is also listed at The
National Stock Exchange (NSE). Geojit is a charter member of the Financial Planning
Standards Board of India and is one of the largest DP brokers in the country.

Overseas Joint Ventures
Barjeel Geojit Securities, LLC, Dubai, is a joint venture of Geojit with Al Saud
Group belonging to Sultan bin Saud Al Qassemi having diversified interests in the
area of equity markets, real estates and trading. Barjeel Geojit is a financial
intermediary and the first licensed brokerage company in UAE. It has facilities for off-
line and on-line trading in Indian capital market and also in US, European and Far-
Eastern capital markets. It also provides Depository services and deals in Indian and
International Funds. An associate company, Global Financial Investments S.A.O.G
provides similar services in Oman.
Aloula Geojit Brokerage Company, is Geojit’s recently promoted joint venture

in Saudi Arabia with the Al Johar Group. Saudi is home to the world’s single largest
NRI population. The new venture is expected to start operations in the latter half of
2008. The Saudi national and the NRI would be able to invest in the Saudi capital
market. The NRI would also be able to invest in the Indian stock market and in Indian
mutual funds. This joint venture makes Geojit the first Indian stock broking company
to commence domestic retail brokerage operations in any foreign countr

Overseas Business Association
Bank of Bahrain and Kuwait (BBK), one of the largest retail banks in Bahrain
& Kuwait through its NRI-Business, and Geojit entered into an exclusive agreement in
September 2007. This association will provide the bank’s sophisticated client base ,
the opportunity to diversify their holdings through investments in the Indian stock
market. Services offered are- Investment Advisory, Portfolio Management, Mutual
Funds, Trading in Indian Equity Market, DEMAT and Bank account, Offline Share
Transactions and PAN Card.

PRODUCT AND SERVICES
EQUITY:
Geojit, a member of NSE and BSE, has a network of over 300 branches in India
and abroad, rendering quality equity trading services. Geojit not only has a strong
offline presence but also provides automated online trading services. Geojit’s retail
spread caters to the need of individual investors. Trading in equities is made simple,
safe and interesting with smart advice from the research desk through daily SMS
alerts, market pointers, periodical research reports, stock recommendations and
customer meets organized frequently. The online trading system allows customers to
track the markets by setting up their own market watch, receiving research tips, stock
alerts, real time charts and news and many more features enable the customer to
take informed decisions. The brokerage structure makes Geojit’s online trading all
the more attractive:
 0.03% for day trading (applicable on both sides)
 0.30% for delivery

Futures and Options
The national stock exchange and the stock exchange, Mumbai have
commenced trading in derivatives market with index futures being the first
instruments. Now both the exchanges provide trading in index futures and options
and stock futures and options. A derivative is financial contract, between two or
more parties, which is derived from the future value of an underlying asset. At any
point of time there will always be available near three months contract periods. For
e.g. in the month of Jan.2006 one can enter into Jan, Feb or Mar contracts. The last
Thursday of each month is the expiry day for that month’s contract. When one
contract expires, a new contract is introduced. For instance, on expiry of Jan 2006
contract, April contract shall get activated. Currently, settlements of all derivatives
trades are in cash. There is daily as well as final settlement. As long as the position is
open, the same will be marked to market at the daily settlement price, the difference
will be credited or debited accordingly and the position shall be brought forward to
the next day at the daily settlement price. Any position which remains open at the
end of the final settlement day (i.e., last Thursday) shall be closed out by the
exchange at the final settlement price, which will be the closing spot value of the
underlying. There are four types of Members in the Futures and Options Segment:
 Trading members
 Trading cum clearing members
 Professional Clearing Member
 Self Clearing Members

DEPOSITORY:
A depository can be compared to a bank. It holds securities such as shares,

debentures, bonds, government securities, units etc. of investors in electronic form.
There are two depositories in India, The National Securities Depository Limited
(NSDL) and Central Depository Services Limited (CDSL). An individual who decides to
avail the depository services can approach a Depository Participant (DP). Banks,
financial institutions, custodians, brokers or any other entity eligible as per SEBI
(Depositories and Participants) Regulations, 1996 can apply to the Depository to
become a Depository Participant. As on 31 st December2005 there were 221
Depository Participants in India.

Commodity
Geojit Commodities, a subsidiary of Geojit Financial Services Limited is

mainly engaged in the business of Commodities Futures Trading. Geojit Commodities
is a member of:
1. National Multi – Commodity Exchange of India limited (NMCE)

2. National Commodity and Derivative Exchange Limited (NCDEX)
3. Multi-Commodity Exchange (MCE)
4. India Pepper and Spice Trade Association (IPSTA)
5. Singapore Commodity Exchange (SICOM)
6. Dubai Gold Commodity Exchange (DGCX).
PORTFOLIO MANAGEMENT SERVICES
Geojit, a SEBI registered Portfolio Manager Offer’s discretionary portfolio

management services. Geojit has a team of experts who carefully take investment
decisions based on the clients’ objectives. The Portfolio Management team has a
successful track record of more than 10 years in the capital market. The team has
access to Geojit’s strong Equity Research, and Fundamental and Technical Analysis.

DISTRIBUTION
Geojit undertakes the distribution of variety financial instruments such as

mutual funds, bonds, life insurance products, fixed deposits etc. The wealth centre
team understands the universe of investment options analyzes the risk and return
from these options and recommends investment options to clients to help them
achieve their financial goals. Geojit has a tie up with all the Mutual Funds across
the country. Geojit offers life insurance products of the following life insurance
companies:
1. MetLife India Life Insurance Company
2. LIC of India
3. ICICI Prudential
For general insurance, Geojit has partnered with the following:
 Bajaj Alliance General Insurance Company

 National Insurance Company Ltd.

Milestones
The company crossed the following milestones to reach its present position as a
leading retail broking house in India.
1986
 Geojit becomes a member of the Cochin Stock Exchange.
1994
 The Kerala State Industrial Development Corporation (KSIDC), an arm of the
Government of Kerala, becomes a co-promoter of the company by acquiring
24% equity stake in Geojit Financial Services Ltd., based on the evaluation
report of Ernst & Young. This is the only venture in India where a state
owned development institution is participating in the equity of a stock
broking company. Geojit becomes a corporate broking house.
1995
 Geojit comes out with a small Initial Public Offer (IPO) of Rs.9.5 million,
which was oversubscribed by 15 times. Geojit's issued and subscribed equity
capital increased to Rs.30 million and KSIDC's equity stake comes down to
17%.
 Geojit becomes a member of the National Stock Exchange (NSE) and installs
its first trading terminal in Cochin, Kerala.
1996
 The company launches Portfolio Management Services after obtaining

required registration (Portfolio Management) from Securities Exchange
Board of India (SEBI).
1997
 Geojit becomes a Depository Participant under National Securities
Depository Limited (NSDL) and begins providing Depository Services
through its branches.
1999
 Geojit becomes a member of The Stock Exchange, Mumbai (BSE) and
activates Bombay Online Terminals (BOLT) in different branches.
 The customer base of Geojit crosses the 50,000 mark.
2000
 Geojit becomes the first broking firm in the country to offer online trading
facility. The then SEBI Chairman, Mr. D.R.Mehta inaugurates the facility on
1st February, 2000.
 Commences Derivative Trading after obtaining registration as a Clearing and
Trading Member in NSE.
 Establishes the first Bank Gateway in the country for Internet Trading.
2001

 Geojit's customer base crosses 100,000.

 Becomes India's first DP to launch depository transactions through Internet.
 Establishes Joint Ventures in the UAE for serving NRI clients.
 The company issues bonus shares in the ratio of 1:1.
2002
 Geojit ties up with MetLife for the marketing and distribution of insurance
products across the country.
 The company becomes the first online brokerage house to launch integrated
internet trading system for both cash and derivatives segments.
 Sheikh Sultan Bin Saud Al Oassemi, a member of the ruling family of
Sharjah, UAE, joins the Board of Directors of Geojit.
2003
 Geojit Commodities Limited, a wholly owned subsidiary of Geojit, becomes
member of National Multi-Commodity Exchange of India Ltd., National
Commodity & Derivatives Exchange Ltd., and Multi Commodity Exchange
and launches Commodity Futures Trading in rubber, pepper, gold, wheat and
rice.
 Geojit Commodities Limited launches Online Futures Trading in multiple
commodities namely, agri-commodities, precious metals like gold and silver,
other metals like steel, aluminium, etc. and energy futures namely, crude oil
and furnace oil.
 Geojit rises more than Rs.100 million through issue of preferential shares.

2005
 Barjeel Geojit Securities LLC becomes a member of Dubai Gold Commodity
Exchange.
 Customer base of Geojit crosses 250,000.
 Geojit's reach spreads through a network of more than 300 branches.
 The company issues bonus shares in the ratio of 1:1.
 Geojit Credits, a subsidiary of Geojit Financial Services Ltd. registers with
Reserve Bank of India as a Non-Banking Financial Company (NBFC).
 The company gets listed on National Stock Exchange of India Limited.
 The company implements Employees Stock Option Scheme.
 The company opens a first of its kind - all women's branch in Cochin.
2006
 Geojit relaunches Internet trading on Reuters TIB Mercury Platform.
2007
 On March 13, 2007 the formation of Geojit BNP Paribas Financial Services
Ltd., was announced in Mumbai and Paris. Through a preferential allotment,
BNP Paribas had taken 27% stake in Geojit, which will eventually increase to
34.35%. With this final step, the French banking major has become the
largest shareholder in Geojit Financial Services Limited. BNP Paribas has
one of the largest international banking networks with significant presence in
Asia and the United States. With presence in more than 85 countries the bank
has a headcount of more than 1,38,000.

Departments in the corporate office
Geojit financial services Ltd.
1. Depository
2. Client registration
3. Operations
4. Barjeel operations
5. Nline operations
6. Customer care center
7. Portfolio management services
8. Risk and settlement
9. Systems and MIS
10.Distribution
11.Legal and compliance
12.Finance
13.Human resources
14.Administration
15.Corporate communications
16.Secretariat

Geojit commodities Ltd
1. Operations
2. Research
3. Risk
4. Finance
5. Administration
6. Distribution
Geojit credits Ltd.
1. Operations
2. Finance
Geojit technologies Ltd.
1. Software development –Broking Business

2. Software development-Shipping Business
3. Software development – Overseas
4. Online Trading Products and Services

Company Memberships
Geojit is Member of
 National Stock Exchange of India Ltd. (NSE)
 Bombay Stock Exchange Ltd. (BSE)
 Multi-Commodity Exchange of India (MCX)
 National Commodity and Derivatives Exchange of India Ltd. (NCDEX)
 National Multi- commodity Exchange of India Ltd. (NMCE)
 National Securities Depository Limited(NSDL)
 Central Depository Services Ltd.(CDSL)
 India Pepper and Spice Trade Association(IPSTA)
 Singapore Commodity Exchange(SICOM)
 Dubai Gold Commodity Exchange (DGCX)
 Geojit Financial Services Ltd is a DEBI Registered Portfolio Manager
 Geojit Credits Pvt. Ltd; is a registered Non-Banking Finance Company(NBFC)
with RBI

Key Managers
Mr. C.J. George Managing Director

Mr. Satish Menon Chief Operating Officer
Mr. Binoy .V. Samuel Chief Financial officer
Mr. A.Balakrishnan Chief Technology Officer
Mrs. Jaya Jacob Alexander Chief Human Resources
Mr. K. Venkitesh Head (Distribution)
Mr. C.P. Krishnan Sr. VP (Commodities)
Ms.Farzana KhanVP (online Products, Services &
Operations)
Mr. M. Balachandran VP (Credits)
Mr. Sanil Kumar K.V. AVP (Chennai)
Company Publications
 Geodata – Monthly
 Barjeel Market Digest –Monthly
 Online Research reports for the use of employees
 Research reports to daily newspapers in Malayalam and English
GEOJIT BNP PARIBAS

March 13th 2007 will remain etched in the annals of the history of Geojit BNP
Paribas financial Services Ltd. It was on this day that two entities from across the
globe tied knots with the aim of providing a strong Trading and distribution platform
for the investors in India and abroad. BNP Paribas, Paris based international banking
giant.
BNP Paribas
The manger of two companies BNP and Paribas on May 23 rd 2000, resulted in
BNP Paribas, the French Banking Major.
On BNP Group
No. of employees: 1, 40,000 as on 31st December 2006, working in 85 countries
Core Businesses of the Group:
o Retail Banking (France, Europe, North Africa & Middle East, US)
o Corporate & Investment Banking
o Asset Management & Services

1. Private Banking: Nr1 in France, Nr 3 in western Europe, Nr 7 in Asia

2. Mutual Funds: Euros 326 Bn under management (1793000 Cr
Rupees)
3. Life Insurance: Nr. For ULIPs in France, Nr2 World wide for Creditor
Insurance
4. Securities Services: Nr1 in France & Europe, Nr 5 world wide, Euro 3
614Bn under custody (12/06)
5. Online Brokerage & Distribution: 1.1 Million clients, Nr 1 in Europe
Key financials:
1. Net Banking Income Jan- Dec2006 – Euros 28 Bn (Rs. 1,54,000

Crores)
2. Net Profit –Euros 7.3 Bn (Rs. 40,150 Crores) (2006-07 SBI profit was
only 6620 Crores and ICICI Bank was 3110 Crores

Awards and Rankings:
o Ranks 17th amongst the worlds 2000 largest Companies,6 th in the Banking
sector and 1st in the Euro Zone by sales, profits, assets and market value-
Survey by Forbes Magazine.
o Ranks 34th among the global 500 firms by revenue – Survey by Fortune
Magazine
o Ranks 3rd in the top 30 french Brands after Louis Vuittion and L’oreal
Presence in India since 1860 and is mainly active in:
 Corporate &Investment Banking

 Private Banking
 Through joint Ventures
o SBI Life (JV between SBI and Cardiff a full subsidiary of BNP Paribas)
o Sundaram BNP Paribas AM
o Geojit BNP Paribas
o Sundaram BNP Paribas Home Loans (agreement signed in May 2007 still
subject to regulatory approvals)

GEOJIT ANTHEM
DRIVEN BY TRUST
“With trust, our driving force,

Transparent in daily chores,
Passionate, compassionate,
We keep Geojit on course
Respectful of our call
We care for our patrons’ all.
Grateful for our growth before
We seek blessings to grow tall
** Shanti ho baraabar Shakti ho

Sayyam, Samriddhi, Swaasthya ho,
Geojit Jahaan ho!
Expanding far and wide,
And serving the world with pride,
Loyalty, inspiring us
To go beyond the high tide;
A brighter world to make
Unfurling the flag we take;
“All for one and ne for all,”
With love to last above al.

CHAPTER-4
DATA ANALYSIS AND INTERPRETATION

ANALYSIS
ANALYSIS OF THE TURNOVER
TABLE NO: 1
Turnover details of Geojit in third quarter of 2007-08

Total NO. of
NSE trade NSE BSE Trade BSE F&O Trade F&O turn clients
MONTH volume Brokerage volume Brokerage volume Brokerage over traded
October 53617327 167452 35677909 91095 212356687 78253 336800 132
Novembe
r 63312250 189912 34480464 107696 80839644 27600 325208 195
December 79605590 194189 31060155 61168 85621037 26944 290301 174

CHART NO: 1
Total turnover
336800
325208
290301
Octobar November December

CHART NO: 2
Percentage of income from NSE, BSE& F&O in third quarter.
23%
NSE Brokerage
50% BSE Brokerage
F&O Brokerage
27%

INTERPRETATION:
From the above table it is clear that, from October to December the brokerage
income is almost steady for Geojit. The future and options trade volume is declined in
this period. Because of this the total turnover showed a decline trend. The BSE and
NSE trade volume increased in this period. Sensex shot up by 3000 points in this
period and touched 20000 mark at the end of December. The third quarter of 2007-08
financial year saw a less volatility in the share markets. We can see the turnover also
not volatile for this period.

TABLE NO: 2
Turnover details of Geojit in fourth quarter of 2007-

08
Total NO. of
NSE trade NSE BSE Trade BSE F&O Trade F&O turn clients
MONTH volume Brokerage volume Brokerage volume Brokerage over traded
January 83737820 194295 63875854 116180 94360009 33382 343857 207
February 31053344 50641 56473228 73543 12559859 4194 128379 122
March 81747975 120994 76129959 140969 8033724 3110 265073 179

CHART NO: 3
Total turnover
343857
265073
128379
January February March

CHART NO: 4
Percentage of income from NSE, BSE& F&O in third quarter.
10%
NSE Brokerage
BSE Brokerage
34% F&O Brokerage
57%

INTERPRETATION:
From the above table and graph it is clear that the turnover of the company was
highly volatile in the last quarter of the financial year 2007-08. This is because of the
high volatility in the share market. In January 10, 2008 Sensex reaches 21206.77 and
in March 31, 2008 Sensex close at15644. From January to February the income falls
62.66% and in March it was rose 106.47% compared to February.

CHART NO: 5
Turnover from Oct.07-Mar.08
336800 343857
325208
290301
265073
128379
Octobar November December January February March

INTERPRETATION:
From the above graph which showing turnover of October 2007 to March
2008 we can identify the difference in two quarters. From October to December it was
shown a less variation because the market is less volatile. But in January to Mach
there is a high fluctuation. A 62.66% fall in February and a 106.47% rise in March.
This indicates the high fluctuations in the turnover because of the market volatility.

CHAPTER-5
FINDINGS AND CONCLUSIONS

FINDINGS
1. The volatility of the share market affects Geojit’s turnover.
2. The turnover was high volatile in fourth quarter compared to the third quarter.
3. In February 2008 the turnover is decreased 62.66% from January’s turnover.
4. In March there is 106.47% increase from February’s turnover.

CONCLUSION
As a part of my MBA programme, minor project undergone by me in Geojit

financial services Thrissur during the 3rd semester was very fruitful, apart from the
theoretical knowledge. Geojit financial service ltd is one of the major financial service
organizations. The study is done to analyze how far the volatility of share market
affects Geojit’s turnover. In the course of my study, I found that the turnover of Geojit
in the fourth quarter of 2007-08 was affected by the volatility of the share market.
During the study I understand that in a volatile market Geojit has the capacity to meet
the challenges and make use of the opportunities profitably.


Chapter-1: Geojit Financial Services, Thrissur

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GEOJIT FINANCIAL SERVICES, THRISSUR

HOLY GRACE ACADEMY OF MANAGEMENT STUDIES MALA Page 1

HOLY GRACE ACADEMY OF MANAGEMENT STUDIES MALA Page 2

SIGNIFICANCE OF THE STUDY

Indian markets third most volatile in 2007– 08

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OBJECTIVES OF THE STUDY

1. To study about the share market.

2. To know about the volatility of share market.

3. To learn about the latest changes in this market.

HOLY GRACE ACADEMY OF MANAGEMENT STUDIES MALA Page 4

OUTLINE OF RESEARCH METHODOLOGY

Research in common parlance refers to a search for knowledge. According to

HOLY GRACE ACADEMY OF MANAGEMENT STUDIES MALA Page 5

METHOD OF DATA ANALYSIS

 Analysis of the brokerage income during the period.

The types of research used are

 Primary analytical research method

In this the available information or data are analyzed.

HOLY GRACE ACADEMY OF MANAGEMENT STUDIES MALA Page 6

 Data were collected and recorded

 Data were analysed and interrupted

 Report were generated

LIMITATION OF THE STUDY

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INDIAN STOCK MARKET-AN INTRODUCTION

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The secondary market provides liquidity to participant’s holdings by enabling

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HOLY GRACE ACADEMY OF MANAGEMENT STUDIES MALA Page 11

ABOUT SHARE TRADING

Here comes the importance of financial derivatives in the hands of an investor

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INDUSTRY PROFILE AND COMPANY PROFILE

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Financial Services Industry

Financial services organizations are striving to achieve increasingly ambitious

Financial services refer to services provided by the finance industry. The

HOLY GRACE ACADEMY OF MANAGEMENT STUDIES MALA Page 14

The corollary of this market evolution is increasing risk as products become

Organisations will also need to identify and concentrate on core competencies

In economics, a financial market is a mechanism that allows people to easily

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In finance, financial markets facilitate--

 The raising of capital (in the capital markets);

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Definition of financial market

The term financial markets can be a cause of much confusion.

Financial markets could mean:

Financial markets can be domestic or they can be international

Types of Financial Markets

The financial markets can be divided into different subtypes:

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CAPITAL MARKETS WHICH CONSIST OF:

 Commodity Markets, which facilitate the trading of commodities.

1. Futures Markets, which provide standardized forward contracts for

 Insurance Markets, which facilitate the redistribution of various risks.

HOLY GRACE ACADEMY OF MANAGEMENT STUDIES MALA Page 18

Without financial markets, borrowers would have difficulty finding lenders

Relationship between lenders and borrowers

Lenders Financial Intermediaries Financial Markets Borrowers

HOLY GRACE ACADEMY OF MANAGEMENT STUDIES MALA Page 19