AN ORGANISATION STUDY OF

HEDGE EQUITIES LIMITED, COCHIN

Report Submitted in Partial Fulfillment of Requirement for

the Two year Full Time

Master of Business Administration

Program of M.G. University, Kottayam

By
AJU K RAJU
REG NO: 32722

Guided by
Dr. SONEY JOHN

MARIAN INTERNATIONAL INSTITUTE OF MANAGEMENT

KUTTIKANAM, IDUKKI
MBA (2011-2013)

1
 MARIAN INTERNATIONAL INSTITUTE OF MANAGEMENT
KUTTIKKANAM PO, PEERMADE-685531, KERALA

CERTIFICATE

This is to certify that the Organization Study Report entitled “AN

ORGANISATION STUDY OF HEDGE EQUITIES LIMITED, COCHIN.”
Submitted to M.G. University in partial fulfillment of the requirements for the
award of the MBA degree is a record of original work done by Mr. Aju K Raju
during the year 2012 under my supervision and guidance

Signature of the Signature of the

Director Faculty Guide (Dr. SONEY JOHN)

Date …………….

Viva – Voce Examination held on ……………………………….

Signature of the

Internal Examiner

2
 DECLARATION

I, AJU K RAJU MBA student , Marian International Institute of

Management, Kuttikkanam, do hereby declare that this report entitled

“AN ORGANISATION STUDY OF HEDGE EQUITIES

LIMITED,COCHIN ”, submitted in partial fulfillment for the degree of

Master of Business Administration, is a record of bonafide work done

by me under the guidance of Dr. SONY JOHN, Professor, MIIM,

Kuttikkanam. I further declare that this report has not previously

formed the basis for the award of any titles of recognition.

Kuttikkanam AJU K RAJU

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 ACKNOWLEDGEMENT

The success of a project depends upon framework and cooperation

of various people involved either directly or indirectly. I take this

opportunity to express my gratitude to all those who helped in this

project.

First and foremost I thank God the almighty for his blessing for the

successful completion of this work. I take this opportunity to

acknowledge my indebtedness to all persons who have me in completing

my work.

I would like to convey my sincere gratitude, and thanks Mr. Alex

Babu (MD) of hedge equities, for allowing me to undertake this study at

hedge equities and also like to thank to Mr.Benil Dani Alexander, Sr

.executive advisory help desk, hedge school of applied economics Cochin

for his support and valuable suggestion. I extend my sincere thank to all

staffs hedge equities ltd who helped me in this work.

I also thank all other staff of Hedge school of applied economics,

Kochi for their guidanance in conducting the study.

It is my privileges to express my sincere thanks to Dr. Soney john

associate professor of Marian international institution of management,

Kuttikkanam for his support and necessary guidance throughout my

endeavor.

Finally I wish to thank my family and friends and express my

sincere gratitude to them for their support; guidance, protection and

blessing those were showered upon me throughout the endeavor.

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 INDEX

SL NO CONTENTS PAGE NO
1 INTRODUCTION 1

2 SCOPE OF THE STUDY 2

3 OBJECTIVE OF THE STUDY 2

4 METHODOLOGY 2

5 INDUSTRY PROFILE 3

6 ORGANISATIONAL PROFILE 20

7 ORGANISATIONAL STRUCTURE 37

8 DEPARTMENTS AND THEIR FUNCTIONS 40

9 SWOT ANALYSIS 47

10 FINDINGS 48

11 SUGGESTIONS 49

12 CONCLUSIONS 50

13 BIBLIOGRAPHY 51

5
 LIST OF CHARTS

SLNO CONTENTS PAGE NO

1 ORGANIZATIONAL STRUCTURE 38

2 UNDER THE GM 38

3 REGIONAL ORGANIZATIONAL STRUCTURE 39

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 INTRODUCTION

In this economic era for tightening business, nuts and bolt of any company. Industries,
or enterprise, it is necessary to measure its market position in certain time interval with the ever
changing theories and concepts of market for this assessment and technical analysis is needed.
Although analysis dose not reveal the absolute solution of any objective, it provides the guide
towards a good output.

This study will give students a different experience where in they learn the practical side
of the business since the real life situations are in front of them and can be related to concepts,
principles, theories which were taken in classes. This would help the future managers to face the
upcoming challenges in the business life.

Hedge equities is one of the leading financial service company in India, specialized in
offering a wide range of financial product, tailor made to suit individual need, as a first step to
make their presence, Global Hedge equities is Kerala’s second largest financial institution .This
study help in creating managers who are equipped with the experience of linking the theoretical
input with those of practical exposure and come out with creative solutions/ideas in enhancing
the business.

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SCOPE OF THE STUDY

 To know the working and procedural steps in the organization

 Useful for the academic purpose and further reference
 To know the functioning of the financial services industry in India

OBJECTIVES OF THE STUDY

 To study the organizational structure of Hedge equities (P) Ltd

 To study about various departments and their functions
 To study about the day to day activities in the Hedge equities

METHODOLOGY

The data are collected from two sources namely primary and secondary sources.

Primary data

The primary data collected by providing questionnaires to the main department.

Personal interview also conducted in the organization to collect the required data

Secondary data

Magazines, company web site

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 INDUSTRY PROFILE

A financial market is a market in which people and entities can trade financial
securities, commodities, and other fungible items of value at low transaction costs and at prices
that reflect supply and demand. Securities include stocks and bonds, and commodities include
precious metals or agricultural goods.

There are both general markets (where many commodities are traded) and
specialized markets (where only one commodity is traded). Financial markets facilitate:

 The raising of capital (in the capital markets)

 The transfer of risk (in the derivatives markets)
 Price discovery
 Global transactions with integration of financial markets
 The transfer of liquidity (in the money markets)
 International trade (in the currency markets

Capital market

Capital market consists of primary market and secondary market. In primary market
newly issued stocks are exchanged and in secondary market buying and selling of already
existing bonds and stocks takes place. So, the capital market can be divided into bond market and
stock market. Bond market provides financing by bond issuance and bond trading. Stock market
provides financing by shares or stock issuance and by share trading. As a whole, capital market
facilitates rising of capital.

Money market

Money market facilitates short term debt financing and capital. The money market is a
subsection of the fixed income market. Money market securities are essentially IOUs issued by
governments, financial institutions and large corporations. These instruments are very liquid and
considered extraordinarily safe. Because they are extremely conservative, money market
securities offer significantly lower returns than most other securities.

9
 One of the main differences between the money market and the stock market is that most
money market securities trade in very high denominations. This limits access for the individual
investor. Furthermore, the money market is a dealer market, which means that firms buy and sell
securities in their own accounts, at their own risk. Compare this to the stock market where a
broker receives commission to acts as an agent, while the investor takes the risk of holding the
stock. Another characteristic of a dealer market is the lack of a central trading floor or exchange.
Deals are transacted over the phone or through electronic systems.

Derivatives market

Derivatives market provides instruments which help in controlling financial risk. The
derivative itself is merely a contract between two or more parties. Its value is determined by
fluctuations in the underlying asset. The most common underlying assets include stocks, bonds,
commodities, currencies, interest rates and market indexes. Most derivatives are characterized by
high leverage.

The first leap towards an organized derivatives market came in 1848, when the Chicago
Board of trade, the largest derivative exchange in the world, was established.

Derivatives markets broadly can be classified into two categories, those that are traded on
the exchange and the traded one to one or 'over the counter'. They are hence known as:

 Exchange Traded Derivatives

 OTC Derivatives (Over The Counter)
 OTC Equity Derivatives

The term "Derivative" indicates that it has no independent value, i.e. its value is entirely
"derived" from the value of the underlying asset.

The underlying asset can be securities, commodities, bullion, currency, live stock or
anything else. In other words, Derivative means a forward, future, option or any other hybrid
contract of pre determined fixed duration, linked for the purpose of contract fulfillment to the
value of a specified real or financial asset or to an index of securities.

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Foreign exchange market

Foreign exchange market facilitates the foreign exchange trading. The foreign exchange
market (forex, FX, or currency market) is a form of exchange for the global decentralized trading
of international currencies. Financial centers around the world function as anchors of trading
between a wide range of different types of buyers and sellers around the clock, with the
exception of weekends

In a typical foreign exchange transaction, a party purchases a quantity of one currency by

paying a quantity of another currency. The modern foreign exchange market began forming
during the 1970s after three decades of government restrictions on foreign exchange transactions
(the Breton Woods system of monetary management established the rules for commercial and
financial relations among the world's major industrial states after World War II), when countries
gradually switched to floating exchange rates from the previous exchange rate regime, which
remained fixed as per the Breton Woods system.

Insurance market

Insurance market helps in relocation of various risk. Insurance is a form of risk

management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is
defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for
payment. An insurer is a company selling the insurance; the insured, or policyholder, is the
person or entity buying the insurance policy. The amount to be charged for a certain amount of
insurance coverage is called the premium. Risk management, the practice of appraising and
controlling risk, has evolved as a discrete field of study and practice.

The transaction involves the insured assuming a guaranteed and known relatively small
loss in the form of payment to the insurer in exchange for the insurer's promise to compensate
(indemnify) the insured in the case of a financial (personal) loss. The insured receives a contract,
called the insurance policy, which details the conditions and circumstances under which the
insured will be financially compensated.

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Commodity market

Commodity market organizes trading of commodities. Commodity markets are markets

where raw or primary products are exchanged. These raw commodities are traded on
regulated commodities exchanges, in which they are bought and sold in standardized contracts.

The trading of commodities consists of direct physical trading and derivatives trading.
Exchange traded commodities have seen an upturn in the volume of trading since the start of the
decade. This was largely a result of the growing attraction of commodities as an asset class and a
proliferation of investment options which has made it easier to access this market.

Commodity trading

Spot trading is any transaction where delivery either takes place immediately, or with a
minimum lag between the trade and delivery due to technical constraints. Spot trading normally
involves visual inspection of the commodity or a sample of the commodity, and is carried out in
markets such as wholesale markets. Commodity markets, on the other hand, require the existence
of agreed standards so that trades can be made without visual inspection.

Forward market

A forward contract is an agreement between two parties to exchange at some fixed future
date a given quantity of a commodity for a price defined today. The fixed price today is known
as the forward price. Early on these forward contracts were used as a way of getting products
from producer to the consumer. These typically were only for food and agricultural products

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Futures contracts

Futures contract has the same general features as a forward contract but is standardized
and transacted through a futures exchange. Although more complex today, early forward
contracts for example, were used for rice in seventeenth century Japan. Modern forward, or
futures agreements began in Chicago in the 1840s, with the appearance of the railroads. Chicago,
being centrally located, emerged as the hub between Midwestern farmers and producers and the
east coast consumer population centers.

Hedging
Hedging, a common practice of farming cooperatives, insures against a poor harvest by
purchasing futures contracts in the same commodity. If the cooperative has significantly less of
its product to sell due to weather or insects, it makes up for that loss with a profit on the markets,
since the overall supply of the crop is short everywhere that suffered the same conditions.

Delivery and condition guarantees

In addition, delivery day, method of settlement and delivery point must all be specified.
Typically, trading must end two (or more) business days prior to the delivery day, so that the
routing of the shipment can be finalized via ship or rail, and payment can be settled when the
contract arrives at any delivery point.

Stock exchange market

A stock exchange is a form of exchange which provides services for stock
brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide
facilities for issue and redemption of securities and other financial instruments, and capital
events including the payment of income and dividends. Securities traded on a stock exchange
include shares issued by companies, unit trusts, derivatives, pooled investment products
and bonds.

13
History of stock market
It has been suggested by Braudal about the History of Stock Market that during the 11 th
century in Cairo, the Jewish and Muslim merchants already had the notion of trade association
and had setup all the methods of credit as well as payments. This claim though destroys the calls
that the History of Stock Market originates with Italy. If we fall back upon the 12th century
France it can be seen that the courtier change was worried about handling and regulating the
debts on the bank’s behalf of the agricultural professions. As these men use to deal with debts
they can also be called as originators of brokerage business in the History of Stock Market.
During the end of 13th century traders of Bruges commodity accumulated inside the house of a
native named Van der Beurse. During the early 14th century they came to be known as the
Brugse Beurse. These people institutionalized their gatherings, which were known to be an
informal meeting until then. This concept did spread at a rapid pace around the European nations
and neighboring countries. In the countries like Amsterdam and Ghent its branches known as
Beurzen opened.

During the middle of 13th century the bankers of Venice started trading in government
securities. At this very time the government of Venice outlawed airing bruits which were
intentionally used to lessen the price of governmental funds. The bankers from Florence, Verona,
Genova during the 14th century also started trading with government securities. It were the
Dutch’s in the History of Stock Market who inaugurated the concept of joint stock exchanges
which led the people to buy shares and become share holders and invest money in various
businesses and get their part of profit and loss. The Dutch East India Company in the year 1602
brought out first shares on the Stock Exchange of Amsterdam and it was also the first Stock
Exchange to bring out bonds and shares in the history of Stock Market. The Stock Exchange of
Amsterdam is also known to be the first stock exchange in the History of Stock Market to
inaugurate continuous trade during the early part of 17th century. There are Stock Markets in
virtually every part of the world at this moment. Some of the important stock markets are located
in United States, United Kingdom, India, China etc.

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Major stock exchanges in various countries over the world are as follows:

o American Stock Exchange o Kuwait Stock Exchange

o Australian Stock Exchange o London Stock Exchange
o Colombo Stock Exchange o Nigerian Stock Exchange
o Chicago Stock Exchange o New York Stock Exchange
o Dhaka Stock Exchange o Philippines Stock Exchange
o Hong Kong Stock Exchange o Singapore Stock Exchange
o Jakarta Stock Exchange o Bombay stock Exchange
o Jamaica Stock Exchange o The National Stock Exchange of
India
o Toronto Stock Exchange

Indian Stock Exchanges – An Umbrella Growth

“Stock Exchange means anybody of individuals whether incorporated or not,

consolidated for the purpose of assisting, regulating and controlling the business of buying,
selling and dealing in securities. It is a market where stocks, shares and other securities are
bought and sold and also to provide avenue for disposal of securities when the owners feel like.
It is an essential component of the economy and indispensable for the proper functioning of
corporate enterprises.

In general, the financial market is divided into two parts, Money Market and Capital
Market. Securities market is an important, organized capital market where transaction of capital
is facilitated by means of direct financing using securities as a commodity. Securities market can
be divided into primary market and secondary market.

The working of stock exchanges in India started in 1875. BSE is the oldest stock market in
India. The history of Indian stock trading starts with 318 persons taking membership in Native
Share and Stock Brokers Association, which we now know by the name Bombay Stock
Exchange or BSE in short. In 1965, BSE got permanent recognition from the Government of

15
India. National Stock Exchange comes second to BSE in terms of popularity. BSE and NSE
represent themselves as synonyms of Indian Stock Market. The history of Indian Stock Market is
almost the same as the history of BSE.

The 30 stock sensitive index or Sensex was first compiled in 1986. The Sensex is compiled
based on the performance of the stocks of 30 financially sound benchmark companies. In 1990
the BSE crossed the 1000 mark for the first time. It crossed 2000, 3000 and 4000 figures in 1992.

The up-boat mood of the market was suddenly lost with Harshad Mehta scam. It came to
public knowledge that Mr. Mehta, also known as the big bull of Indian stock market diverted
huge funds from banks through fraudulent means. He played with 270 million shares of about 90
companies. Millions of small scale investors became victims to the fraud as the Sensex fell flat
shedding 570 points.

To prevent such fraud the Government formed The Securities and Exchange Board of
India, through an act in 1992. SEBI is the statutory body that controls and regulates the
functioning of stock exchanges, brokers, sub-brokers, portfolio managers, investment advisors
etc. SEBI oblige several rigid measures to protect the interest of investors. Now with the
inception of online trading and daily settlements the chances for a fraud is nil, says top officials
of SEBI.

Sensex crossed the 5000 mark in 1999 and the 6000 mark in 2000. The 7000 mark was
crossed in June and the 8000 mark in September 8 in 2005. Many Foreign Institutional Investors
(FII) are investing in Indian stock markets on a very large scale. The liberal economic policies
pursued by successive Governments attracted Foreign Institutional Investors to a large scale.
Experts now believe that the Sensex can soar past 20000 marks very soon.

The unpredictable behavior of the market gave it a tag – ‘a volatile market’. The factors
that affected the market in the past were good monsoon, Bharatiya Janatha Party’s rise to power
etc. The result of a cricket match between India and Pakistan also affected the movements in
Indian stock markets. The National Democratic Alliance led by BJP, during 2004 public
elections unsuccessfully tried to ride on the market sentiments to power. NDA was voted out of
power and the Sensex recorded the biggest fall in a day amidst fears that the Congress-
Communist coalition would stall economic reforms. Later Prime Minister Man Mohan Singh’s

16
assurance of reforms with a human face cast off the fears and market reacted sharply to touch the
mark of 8500.

India, after United States hosts the largest number of listed companies. Global investors
now ardently seek India as their preferred location for investment. Once viewed with scepticism,
stock market now appeals to middle class Indians also. Many Indian working in foreign countries
now divert their savings to stocks. This recent phenomenon is the result of opening up of online
trading and diminished interest rates from banks. The stock brokers based in India are opening
offices in different countries mainly to cater the needs of Non Resident Indians. The time factor
also works for the NRIs. They can buy or sell stocks online after returning from their work
places.

The bullish run of the stock market can be associated with a steady growth of around 6% in
GDP, the growth of Indian companies to MNCs, large potential of growth in the fields of
telecommunication, mass media, education, tourism and IT sectors backed by economic reforms
ensure that Indian stock market continues its bull run.

Primary Market

The primary market is that part of the capital market that deals with the issue of new
securities. Companies, governments or public sector institutions can obtain funding through the
sale of a new stock or bond issue. This is typically done through a syndicate of securities dealers.
The process of selling new issue to investors is called underwriting. In the case of a new stock
issue, this sale is an Initial Public offering (IPO). Dealers earn a commission that is built into the
price of the security offering, though it can be found in the prospectus. Primary market creates
long term instruments through which corporate entities borrow from capital market.

Features of primary market:

 This is the market for new long term equity capital. This primary market is the market
where the securities are sold for the first time. Therefore it is also called the new issue
market (NIM)
 In a primary issue, the securities are issued by the company directly to investors.
 The company receives the money and issue new security certificates to investors.

17
  Primary issue is used by companies for the purpose of setting up new business or for
expanding or modernizing the existing business.
 The primary market performs the crucial function of facilitating capital formation in the
economy.
 The new issue market does not include certain other sources of new long term external
finance, such as loan from financial institutions. Borrowers in the new issue market may
be raising capital for converting private capital into public capital; this is known as “gong
public”.
 The financial assets sold can only be redeemed by the original holder.

Methods of issuing securities in the primary market are:

 Initial public offering

 Right issue ( for existing companies)
 Preferential Issue

Secondary Market

The secondary market is an ongoing market, which is equipped and organized with a
place, facilities and other resources required for trading securities after their initial offering. It
refers to a specific place where securities transaction among many and unspecified persons is
carried out through intermediation of the securities firms, i.e. a licensed broker, the exchanges, a
specified traditional organization in accordance with the rules and regulations established by the
exchanges.

With regard to the history of stock exchanges, they say it was under a tree when it was
started back in the year 1875. Bombay Stock Exchange (BSE) was the major exchanges in India
till 1994. National Stock Exchange (NSE) started operations in 1994. NSE was floated by major
banks and financial institutions. It same as a result of Harshad Mehta scam of 1992. Contrary to
popular belief the scam was more of a banking scam than a stock market scam.

The old methods of trading in BSE were people assembling on what was called a ring in the
BSE building. They had a unique language to communicate apart from all the shouting. Investors

18
were not allowed access and the system was opaque and misused by brokers. The shares were in
physical form and prone to duplication and fraud.

NSE was the first stock exchange to introduce screen based trading. BSE was forced to
follow suit. The present day trading platform is transparent and gives investors prices on a real
time basis. With the introduction of depository and mandatory dematerialization of shares
chances of fraud reduced further. The trading screen gives top 3 buy and sell quotes on every
scrip. A typical trading day starts at 10 and ends at 3:30 during week days. BSE has 30 stocks
which makes the Sensex. NSE has 50 stocks in its index called Nifty. FIIs, banks, financial
institutions and mutual funds are biggest players in the market. Then there are the retail investors
and speculators. The last ones are the ones who follow the market from morning till evening.
Market can be very addictive like blogging through stakes are higher in the former.

Origin of Indian Stock Market

The origin of stock market in India goes back to the eighteenth century when long term
negotiable securities were first issued. However for all practical purposes, the real beginning
occurred in the middle of nineteenth century after the enactment of the Companies Act in 1850,
which introduced the features of limited liability and generated investor interest in corporate
securities.

An important early event in the development of stock markets in India was the formation of
the Native Share and Stock Brokers Association at Bombay in 1875, the precursor of the present
day Bombay Stock Exchange. This was followed by the formation of associations/exchanges in
Ahmedabad (1894), Calcutta (1908) and Madras (1937). In addition, a large number of
ephemeral exchanges merged mainly in buoyant periods to recede into oblivion during
depressing times subsequently.

Stock exchanges are intricacy inter-woven in the fabric of a nation’s economic life.
Without a stock exchange, the saving of the community – the sinews of economic progress and
productive efficiency would remain underutilized. The task of mobilization and allocation of
savings could be attempted in the old days by a much less specialized institution than the stock
exchanges. But as business and industry expanded and the economy assumed more complex
nature, the need for permanent finance arose. Entrepreneurs needed money for long term

19
whereas investors demanded liquidity – the facility to convert their investment into cash at any
given time. The answer was a ready market for investments and this was how the stock
exchanges came into being.

Stock exchange means anybody of individuals, whether incorporated or not, constituted for
the purpose of regulating or controlling the business of buying, selling or dealing in securities.
These securities include:

a. Shares, scrip, stocks, bonds, debentures stock or other marketable securities of a like
nature in or of any incorporated company or other body corporate;
b. Government securities; and
c. Rights or interest in securities

The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) are the two
primary exchanges in India. In addition there are 22 Regional Stock Exchanges. However the
BSE and NSE have established themselves as the two leading exchanges and account for about
80 percent of the equity volume traded in India. The NSE and BSE are equal in size in terms of
daily traded volume. The average daily turnover at the exchanges has increased form Rs. 851
crore in 1997-98 and further to Rs. 2273 crore in 1990-2000 (April – August 1999). NSE has
around 1500 shares listed with a total market capitalization of around Rs. 9, 21,500 crore.

The BSE has over 6000 stock listed and has a market capitalization of around Rs. 9, 68,000
crore. Most key stocks are traded on both the stock exchanges and hence the investor could buy
them on either exchange. Both exchanges have a different settlement cycle, which allows
investors to shift their positions on the bourses. The primary index of BSE is BSE Sensex
comprising 30 stocks. NSE has the S&P NSE 50 index (Nifty) which consists of fifty stocks. The
BSE Sensex is the older and more widely followed index.

Both these indices are calculated on the basis of market capitalization and contain the
heavily traded shares from key sectors. The markets are closed on Saturdays and Sundays. Both
the exchanges have switched over from the open outcry trading system to a fully automated
computerized mode of trading known as BOLT (BSE Online Trading) and NEAT ( National
Exchange Automated Trading) system.

20
 It facilitates more efficient processing, automatic order matching, faster execution of trades
and transparency; the scrip’s traded on BSE have been classified into ‘A’, ‘B1’, ‘B2’, ‘C’, ‘F’
and ‘Z’ groups. The ‘A’ share represents those, which are in the carried forward system (Badla).
The ‘F’ group represents the debt market (fixed income securities) segment. The ‘Z’ group scrips
are the blacklisted companies. The ‘C’ group covers the odd lot securities in ‘A’, ‘B1’ & ‘B2’
groups and rights renunciations. The key regulator governing Stock Exchanges, Brokers,
Depository participants, Mutual Funds, FIIs and other participants in Indian secondary and
primary market is the Securities and Exchange Board of India (SEBI) Ltd.

Brief History of Stock Exchanges

The world’s foremost marketplace, New York Stock Exchange (NYSE), started its trading
under a tree ( now known as 68 Wall Street) over 200 years ago. Similarly, India’s premier stock
exchange Bombay stock Exchange (BSE) can also trace back its origin to as far as 125 years
when it started as a voluntary non-profit making association.

News on the stock market appears in different media every day. We hear about it every time it
reaches a new high or new low, and we also hear about it daily in statements like ‘The BSE
sensitive Index rose 5% today’. Obviously, stocks and stock markets are important. Stocks of
public limited companies are bought and sold at a stock exchange. But what really are stock
exchanges? Known also as the stock market or bourse, a stock exchange is an organized market
place for securities (like stock, bonds, options) featured by the centralization of supply and
demand for the transaction of orders by member brokers, for institutional and individual
investors.

The exchange makes buying and selling easy. For example, we do not have to really go to an
exchange, say, BSE – we can contact a broker, who does business with the BSE, and he or she
will buy or sell his stock on our behalf.

21
Trading Pattern of the Indian Stock Market

Trading in Indian Stock Exchange is limited is limited to listed securities of public limited
companies. They are basically developed into two categories namely, specified securities
(forward list) and non specified securities (cash list). Equity shares of dividend paying, growth
oriented companies with a paid up capital of at least Rs. 50 million and market capitalization of
at least Rs. 100 million and having more than 20,000 shares are normally put in the specified
group and balance in non-specified group.

Two types of transactions can be carried out on the Indian Stock Exchanges

 Spot delivery Transaction

For delivery and payment within the time or on the date stipulated when entering into the
contract which shall not be more than 14 days following the date of the contract.

 Forward Transaction

Delivery and payment can be extended further by a period of 14 days each so that the overall
period does not exceed 90 days from the contract. The latter is permitted only in the case of
specified shares.

Stock Exchanges in India

National Stock Exchange (NSE)

National Stock Exchange (NSE) of India commenced its operation in the Indian Capital
Market on 3rd November 1994 in Mumbai. The recommendations of Pherwani committee led to
the beginning of NSE.

Players in NSE

 Trading members
 Participants

22
The recognized members of NSE are called trading members who trade on behalf of themselves
and their clients. Participants include trading member and large players like bank who take direct
settlement responsibility.

Promoters of NSE

IDBI, ICICI, LIC, GIC, SBI, Canara Bank, Corporation Bank, Indian Bank, Orient Bank of
Commerce, Union Bank of India, Punjab National Bank, Infrastructure leasing and financial
services and SBI.

Trading system of NSE

The software used in the NSE trading system is known as National Exchange for Advanced
Trading. The trade takes place through computers. The trading member’s computer is connected
with the central computers at the NSE through leased lines and VSAT. The price at which the
buyer and the seller are willing to transact will appear on the screen. When the price match the
transaction will be completed and a confirmation slip will be printed at the office of the trading
member.

OTC Exchange of India (OTCEI)

The OTC e of India (OTCEI) has been setup to provide a cost effective and convenient plat
forms for raising finance from the capital market. OTCEI was promoted by a consortium of
financial institutions sated its operations in 1992. It is a ring less, electronic, nation wider stock
exchange committed to providing entrepreneurs with a smooth economical vehicle for going
public and investors with a fair, sable and efficient market. Thus the OTCEI brings investors and
promoters closer together.

Bombay Stock exchange (BSE)

The stock exchange, Mumbai is popularly known as ‘BSE’. It is oldest one in 1875 as “The
Native Share and sock Brokers Associations of People (AOP) and is engaged in the process of
converting itself into demutualised and corporate entity. It has evolved over the years into its
present status as the premier Stock Exchange in the country to have obtained.

23
 Permanent recognition in 1956 from the Govt. of India under the securities contracts
(Regulation) Act, 1956.

Market Size and Characteristics:

The Indian retail brokerage is showing phenomenal growth. The total trading volume of
brokerage companies has increased fromUS$1239.1 billion in 2004 to US$1492.1 billion in
2005, and is expected to reach US$6535.7 billion by 2015. Some of the main characteristics of
the brokerage industry include growth in e-broking; growing derivatives market, decline in
brokerage fees etc.

Today, as per NSDL statistics, we have only 2.4million investors with demat account in
the country. Considering various investor combinations that are holding accounts, we can
presume the country has roughly 5-7.5 lakh active investors now. This figure is unbelievably
small compared to the potential number of investors, which is anything between 200 million and
250 million. When we take into consideration the way transaction risk and cost in the Indian
capital market is coming down, there will be a massive surge in the number of investors and also
in volumes. The only way to manage this kind of potential growth is to adopt state-of-the-art
trading techniques.

The growth of the Internet-based trading as a mass trading technique in the country is
unstoppable, going by the indicators available and the signals for the future. When it ultimately
gathers momentum, the biggest beneficiary will be the investor, who will be able to trade with
greater speed and transparency, and at lower costs.

Major players in Indian share broking industry are follows

 ICIC Securities Ltd.

 Kotak Securities Ltd
 Indiabulls Financial Services Limited
 India Infoline
 IL&FS investmart Limited

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 SSKLI Ltd.
 Motilal Oswal securities
 Fortis Securities
 Karya securities
 Geojit BNP Paribas
 HDFC Securities
 Hedge equities
 JRG Securities
 India Infoline

25
ORGANIZATIONAL PROFILE

26
HEDGE EQUITIES (P ) LTD

Hedge equities is one of the leading financial services company in India ,established in
2008 and officially inaugurated in may 2008.they are specialized in offering a wide range of
financial products, tailor made to suit individual need. As a first step hedge equities made their
presence global the company had initiated their operations in middle –east to cater to the vast
Nonresident Indian (NRI) population in that region. Ever since their inception, they have
spanned their presence all over India through their meticulous research, high brand awareness,
intellectual management and extensive industry knowledge .hedge equities believe in creating a
new breed of investors who take judicious decisions through them. Team Hedge is a balanced
mix of more than 15 years of experience cutting across various industries with a strong
background in financial markets.

Mission

To create an ethical and sustainable financial services platform for our customers and
partner them to build business, to provide employees with meaningful work, self-development
and progression, and to achieve a consistent and competitive growth in profit and earnings for
our shareholders and staff.

Vision

Hedge equities have been a household name among the masses owing our success to
timely Professional financial assistance to our clients. This aptly articulates our vision of
‘Evolving into a financial supermarket which will be a one stop shop for all financial solutions’.

Social Corporate Responsibility

Being a responsible corporate citizen, Hedge equities has initiated a non-profit movement,
“Hedge Yuva”, which focuses on educating the masses about Stock Market. The movement has
also formulated various scholarship programs for young and dynamic youth.

27
Promise

 To our Customers: We exist to serve and meet your needs. Our focus is to create an
ethical and sustainable financial services platform that places your unique needs over
and above everything else.
 To our Employees: We will provide our employees with a meaningful and rewarding

career with emphasis on self development and career progression.

 To our Shareholders: We will spare no efforts to achieve a consistent and competitive

growth in earnings and profitability.

Hedge Advantage

 At Hedge Equities, the needs of Customers stand before everything else.

 SEBI Registered Portfolio Manager with a dedicated Wealth Management Services desk

that aims to provide objective guidance tailored to meet each customer’s individual
needs.
 Strong Research Team backed with best of breed data mining and analysis.

 Industry leading technology solutions that make portfolio administration simpler and cost

effective.
 A Global Outlook blended with a Local Flavor and backed with a growing network of

over 120 service outlets.450 qualified employees, and over 200 support associates.
 The Trust and Goodwill of over 20,000 satisfied customers.

 Member of BSE, NSE, MCX, MCXSX,NMC, and Depository Participant in CDSL

 Rated as the top brand by the investor community of Asianet channel

 Growing overseas presence with operations in Middle East and an expanding presence in

the European region and North America.

28
About Hedge Equities

Hedge equities is one of the leading Financial services company in India, specialized in
offering a wide range of financial products, tailor made to suit individual needs. As a first step to
make their presence Global, Hedge equities have initiated operations in Middle East to cater to
the vast Non Resident Indian (NRI) population in that region. Ever since their inception, they
have spanned their presence all over India through their Meticulous Research, High Brand
awareness, Intellectual Management and Extensive Industry knowledge. Hedge believe in
creating a new breed of investors who take judicious decisions through them.

Team Hedge is a balanced mix of more than 15 years experience cutting across various
industries with a strong background in the financial markets. The board comprises of six power
houses in their respective fields- FedEx Securities, Baby Marine Exports, Thakker Developers,
Smart financial, SM Hedge (CFO, Videocon Industries) and Padmashree Mohan Lal.

Fedex securities
Managed by a team of ex-bankers, Fedex is a SEBI registered category 1 merchant
banker. The company concentrates on non-fund based activities like structuring, tie up of project
financing, financial restructuring investment banking, corporate and advisory services. The core
management team consists of bankers with rich experience of decades and exposure to volatile
situations in commercial and investment banking. With offices at Nariman point and Vile Parle
east, Mumbai, state of the art infrastructure and qualified manpower to conduct the business,
Fedex securities envisages a phenomenal growth in this sector for its clients.
Baby Marine Exports
Baby Marine Group, started its operation in 1977 from Kozhikode and through
innovations and hard work has grown into three unit and related industries spanning both the
west and east coast of Indian.
Baby Marine Exports, B.M Products and Baby Marine(Eastern ) Exports are efficiently aided by
preprocessing units, ice factories and a fleet of insulated and refrigerated trucks for sea food
transportation. Due to constant upgrading of machinery, state-of-the-art infrastructural facilities,
better links with raw materials suppliers, and an established network of purchasers have

29
obviously made Baby Marine Group a leading exporter of processed marine products to various
international markets.
Smart financial
Smart financial entered the financial market only in 1992 but over this brief span has
covered a niche for itself by becoming the leading financial provider. The company offer
guidance to investors as equities, commodities, mutual fund’s portfolio management services and
insurance. It offers complete range of financial solutions that encompasses every sphere of life
Thakker group
Starting off as a land developer and builder in 1962, Thakker groups diversified into
commercial production of agricultural and horticultural products, housing real estate marketing
plantation etc. They have provided shelter to more than 40000 families by offering residential
plots and premises .Thakker developers is the flagship company of the group. It was established
as private limited in 1987 and later went on to become the only public limited company in North
Maharashtra engaged in housing ,commercial construction and land development. The company
is also a Class1 contractor registered with the Public Work Department, Govt. of Maharashtra.
SM Hedge
Mr. S.M Hedge, a chartered accountant by profession is the Chief Finance Officer of the
Indian Multinational Videocon International and has been at the helm of affairs for the last 20
year.
Padmashree Bharat Mohanlal
Mohanlal, the south Indian movie superstar has become a legend, a brand and cultural
ambassador owing to various factors. Versatility and natural flair for donning complex characters
have won him numerous accolades not to speak of some unforgettable films contributed by him.
A multifaceted personality, he has some business ventures also which include Vismaya MaxFilm
Post Production Studio, College for Dubbing Artists at the Kinfra film and Video Park
Thiruvananthapuram. He is the also the director of Uni Royal Marine Exports; a Kozhikode
based major Seafood Export Company. Intellectual and knowledge arbitrage is the mantra of
modern day business. The same holds true for the financial markets. With the breadth and depth
of knowledge of modern day business that the Board of Hedge brings to the table, you can be
rest assured that some of the best minds in the business are taking care of your investments.

30
Management

 Alex. K. Babu, Managing Director

Alex Babu is the Founder and Managing Director of Hedge Equities. He has over 9 years
of experience in equity research and fund management with considerable experience across all
market capitalizations. He is a specialist in mid-cap and infra stock selection. Ever since joining
the Hedge Family, he has been designing, developing and implementing the strategic plan for the
company in the most cost effective and time efficient manner. He was also instrumental in
establishing and assembling a strong research team with equal emphasis on macroeconomic,
industrial, and company level research. Prior to joining Hedge Equities, Alex was at the helm of
Baby Marine Exports, a leading Seafood exports firm handling all aspects of finance and
marketing. Alex Babu is a graduate in Engineering from Cochin University of Science and
Technology.

 N. Bhuvanendran, Chief Executive Officer

Professionalism augmented by profound vision” is a perfect phrase to describe

Bhuvanendran. His rich experience spanning 20 years with the leading names in the Indian
financial services industry, is often camouflaged by his youthful appearance, till
Mr.Bhuvanendran opens up his favorite subject-Money matters. Bhuvanendran is a talented and
introspective writer whose creativity has been capitalized by various financial journals. He is
also in the limelight for a market related show which aims at quenching the financial queries of
professionals and investors in a leading Malayalam television channel. He is one of the few
investments professional who have experience across both listed and unlisted equity space. He is
an epitome of the fact that honesty, transparency and moral integrity are not at variance with
Business acumen.

 Bobby J Arakunnel, Chief Operating Officer

Mr. Bobby has been responsible for the entire operations of Hedge Equities ever since its
inception. He has proved his versatility by showcasing excellent Man-Management and
Marketing Activities and is well versed in all aspects of Indian Financial Markets. In the last 12

31
years, he has worked with all the major players in the financial service sector of the country
which has added oodles to his workmanship.

 Mr. Mohanlal – Director

This Honorary Lieutenant Colonel's brand image and brimming popularity has helped
Hedge Equities to create awareness amongst small investors in retail segment to invest in stocks.
Versatility and a natural flair for donning complex characters have won him numerous accolades
not to speak of some unforgettable films contributed by him. A Multifaceted personality, whose
inspiring attitude, has helped him to take up Business world with a storm.
 Dr.Samuel George

He is a doctor and an entrepreneur and runs the successful and well reputed "City Clinic" in
Abudhabi since the 1970's. Having completed his Bachelors in Medicine from the Calcultta
Medical College, Dr. George commenced his career in government service and then
subsequently moved to Abu Dhabi in the 1970s. Today, their clinic offers specialized services in
General Medicine and Pediatrics. Dr.George also nurtures a dream and a vision to make quality
healthcare affordable and accessible to all and to this end, he is pursuing the development of a
multi-specialty hospital at Changanassery in Kerala to serve the growing health care needs of the
state.

 Mr. Pradeep Kumar C, Director

Director A leading Textile exporter of Kerala whose 20 years of experience in this field
has made him a veteran we all look up to. His vision, augmented by his hard work and
commitment has helped him to be a strong player in the field of Exporting.
Starting from a root level, he has travelled the hard way to reach this phenomenal position in
Garment Industry which has supplemented him to expand his domain to foreign locations as
well.

32
SERVICES PROVIDED BY THE HEDGE EQUITIES

1. Equity Trading
Equity gives you the opportunity to have a partnership with all the leading Business
tycoons around the globe. Total capital contribution for a company comprises of investments
through equity share holdings by small and big investors. The investors who have a stake in a
company are referred to as shareholders.
Power of Equity shareholders lies in the optimum selection of the Industry, have a strong
belief in the Company's fundamentals and also having a confidence in the profit making
capability of the company.
Equity Market, at present, is a rewarding field for the investors and investing in Indian
stocks are profitable for not only the long and medium-term investors, but also the position
traders, short-term swing traders and also very short term intra-day traders. Fundamentally, stock
market is an avenue for business people to meet shareholders. Other than bank loans, they now
have another option to finance their businesses. They did it by offering their company's equities
in exchange of shareholders cash. The company is never required to repay the capital, but the
new shareholders have a right to future profits distributed by the company. For shareholders,
they have alternatives to where they should put their money into. In the same time, they get the
opportunity to participate in capital intensive businesses at an affordable price. Equity is an
investment area which you can capitalize on with proper assistance regardless of the market
circumstances. Hedge Equities opens the door to this highly lucrative investment opportunity
that could provide a feasible solution to all your financial queries.

2. Commodities Trading
Commodity "futures" are contracts to buy or sell certain goods at set prices at a
predetermined time in the future. Futures trading plays a key role in the marketing of a number
of important agricultural and nonagricultural commodities as it provides the industrial and
farming communities with a transparent price discovery platform, which also enables them to
hedge their price risk and price volatility. The growth of Indian commodities futures trading
towards an efficient, transparent and well-organized market has thrown open a window of

33
benefits and opportunities to Indian producers and traders. Besides the primary benefits of its
twin economic functions of price discovery and price risk management, commodity futures
trading has also played an instrumental role in integrating various fragmented components of the
commodity ecosystem, thus developing the overall infrastructure of agricultural commodities
marketing in the country.
At present, 24 commodity futures exchanges are operational in India, which include 21regional
bourses and the three national-level players, with another three proposed exchanges on the cards.
With the state-of the-art technology-powered secure and efficient operational infrastructure,
these national exchanges are creating a near-perfect market situation with a much wider
participation from the ecosystem stakeholders in a large number of domestic and global
commodities during local and international timings.
While the trade in non-agricultural commodities, especially bullion and crude, has increased in
the past two financial years, the same in agricultural commodities has declined. The share of
agricultural commodities almost halved during 2008-09, due to the continued ban on several
commodities. The clients can trade in commodity futures like gold, silver, crude oil, rubber etc.
And take advantage of the extended trading hours (10 am to 11pm) in commodities trading.

3. Currency Trading
Investments in Currency Derivatives can help you to diversify your portfolio from
traditional asset classes. Currency derivatives can be described as contracts between the sellers
and buyers, whose values are to be derived from the underlying assets, the currency amounts.
These are basically risk management tools in force and money markets used for hedging risks
and act as insurance against unforeseen and unpredictable currency and interest rate movements.
Any individual or corporate expecting to receive or pay certain amounts in foreign currencies at
future date can use these products to opt for a fixed rate - at which the currencies can be
exchanged now itself. Currency derivative serve the purpose of financial risk management
encompassing various market risks. An upfront premium is payable for buying a derivative.
Currency Futures will bring in more transparency and efficiency in price discovery, eliminate
Counterparty credit risk, provide access to all types of market participants, offer standardized
products and provide transparent trading platform.

34
4. Mutual Funds
A Mutual Fund is a trust that pools the savings of a number of investors who share a
common financial goal. The money thus collected is invested by the fund manager in different
types of securities depending upon the objective of the scheme. These could range from shares to
debentures to money market instruments. The income earned through these investments and the
capital appreciations realized by the scheme are shared by its unit holder. Thus a Mutual Fund is
the most suitable investment for the common man as it offers an opportunity to invest in a
diversified, professionally managed portfolio at a relatively low cost. Mutual fund is also called
unit trust or open ended trust a company that invests the funds of its clients in diversified
securities and in turn represent those holdings. They make continuous offering of new shares at
NAV (Net Asset Value) determined daily by the market values of the securities they hold. In
Hedge Equities the clients can select from a wide range of Mutual Funds and Bonds available in
the markets today.

5. Online trading
Hedge Equities has a large network of branches with online terminals of NSE and BSE
in the Capital market and derivative segments. The clients are assured of prompt order execution
through dedicated phones and expert dealers at our offices.

6. Internet trading
Hedge Equities offers Internet trading through this site. You can trade through the
Internet from the comforts of your office or home, anywhere in the world. The dedicated IT
systems ensure service up time and speed, making Internet broking through Hedge Equities
hassle-free. Using the easiest facility provided by NSDL, the clients can transfer the shares sold
by them online without delivery instruction slips. Additionally, digitally signed contract notes
can be sent to clients through E-mail.

7. Depository services
Hedge Equities is a member of the National Securities Depository Limited (NSDL),
offer depository services with minimum Annual Maintenance Charges and transaction charges.
Account holders can view their holding position through the Internet. They also offer the

35
‘easiest’ facility provided by NSDL (electronic access to securities information and execution of
secured transaction) through which clients can give delivery instructions via the Internet.

8. Derivative trading
Hedge offer trading in the futures and options segment of the National Stock Exchange
(NSE).Through the present derivative trading an investor can take a short-term view on the
market for up to a three months perspective by paying a small margin on the futures segment and
a small premium in the options segment. In the case of options, if the trade goes in the opposite
direction the maximum loss will be limited to the premium paid.

9. Knowledge Centre
Knowledge Centre activities are intended to provide systematic and structured services
mainly to new investors and also to young aspirant aiming for a career in financial markets. The
centre has three functional areas: the Publication Division, the Training Centre, and Wealth
Management Advisory Service which provides complete investment solutions to investors
through knowledge based personalized service.

10. Equity Research

Hedge Equities constantly strive to deliver insightful research to enable pro-active
investment decisions. The research department is broadly divided into two divisions-
Fundamental Analysis Group (FAG) and Technical Analysis Group (TAG). The fundamental
analysts are continuously scanning the entire economy for discovering what they call the hidden
gems in stock market terminology and present it to the clients for profitable investments. Timing
the market has always been the most difficult task for all analysts and their Technical Analysis
Group has emerged to predict the market movements well in advance using complex Analytical
methods including Eliot Wave Theory. They are equipped with cutting edge technologies for
technical charting which assist the technical analysts to predict both upside and downside
movements efficiently for the benefit of clients.

36
11. Portfolio Management Service
Hedge Equities is a SEBI-approved portfolio manager offering discretionary and non-
discretionary schemes to its clients. Hedge Equities portfolio management team keeps track of
the markets on a daily basis and is exposed to a lot of information and analytic tools which an
investor would not normally have access to. Other technicalities pertaining to shares like
dividends, rights ,bonus ,buy-back, mergers and acquisitions are also taken care of by them.

12.Hedge school of Applied economics

Hedge school of applied economics is a distinguishing school instituted on the sturdy
premises of quality , with a singular objective of creating credentialed professionals for the
financial markets. The focus is on grooming students to have a cutting edge in hare trading
banking, insurance or wealth management by implementing innovative solution .it is also
considered as an ideal branch of hedge equities.

37
Branches of Hedge Equities

Hedge equities has 130 branches in India and 1 branch in Dubai, UAE

 106 branches in Kerala

 6 branches in Karnataka

 7 branches in Maharashtra

 1 branch in Tamilnadu

Hedge Equities Registered Office is in Nariman Point, Mumbai and corporate office is in
Kaloor, Kochi and their regional offices are in Bangalore, Shimoga, and Hyderabad. There are
117 employees in their Head Office., 8-10 employees in their Regional Offices and 4-5
employees in each branch.

38
Main Competitors

GEOJIT BNP PARIBAS

JRG SECURITIES
RELIGARE
MUTHOOT SECURITIES
SHAREWEALTH
MOTILAL OSWAL
ANANDRATHI

 Geojit BNP Paribas

Geojit BNP Paribas today is a leading retail financial services company in India with a
growing presence in the Middle East. The company rides on its rich experience in the capital
market to offer its clients a wide portfolio of savings and investment solutions. The gamut of
value-added products and services offered ranges from equities and derivatives to Mutual Funds,
Life and General Insurance and third party Fixed Deposits. The needs of over 576,000 clients are
met via multichannel services - a countrywide network of over 540 offices, phone service,
dedicated Customer Care centre and the Internet. Geojit BNP Paribas has membership in, and is
listed on, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). In 2007,
global banking major BNP Paribas joined the company’s other major shareholders -
Mr.C.J.George, KSIDC (Kerala State Industrial Development Corporation) and Mr.Rakesh
Jhunjhunwala – when it took a stake to become the single largest shareholder.

At the forefront of the many fruitful associations between Geojit BNP Paribas and BNP Paribas
is their joint venture, namely, BNP Paribas Securities India Private Limited. This JV was created
exclusively for domestic and foreign institutional clients. An industry first was achieved when
Geojit BNP Paribas became the first broker in India to offer full Direct Market Access (DMA)
on NSE to the JV’s institutional clients.

 JRG Securities

JRG Securities Ltd. is one of India’s leading financial services providers with strong
presence in South India. It was incorporated in 1994 and over the years it acquired a name of

39
trust through Equity and Commodity Broking businesses. In 2007, Baring India Private Equity
Fund II Ltd., a leading private equity firm of international repute acquired a majority stake in the
Company. With the investment of BIPEF came fresh inflow of talent and a focused team
committed to taking this company to greater heights. Since then JRG has undergone several
transformations - expanding into new geographies, adopting state-of-the-art technology,
strengthening credit and risk management systems, creating new products and strengthening
client relationships through service focus. The company is committed to fully compliant with all
regulatory compliances with the exchanges, SEBI, IRDA, FMC and RBI. JRG is listed on the
Bombay Stock Exchange and has a diverse set of public shareholders.

 Religare

Religare is an emerging markets financial services group with a presence across Asia, Africa,
Middle East, Europe, and the Americas. In India, Religare’s largest market, the group offers a
wide array of products and services including broking, insurance, asset management, lending
solutions, investment banking and wealth management. With 10,000-plus employees across
multiple geographies, Religare serves over a million clients, including corporate and institutions,
high net worth families and individuals, and retail investors.

 Muthoot Securities

The Muthoot Group has emerged as one of the India's largest financial group of its kind with
business interests in 17 diverse fields, a network of over 2000 branches nationwide and serving
750 million customers across the country. The Muthoot Group with its pan-Indian presence and
varied bouquet of products serves over 50000 customers every day. Following the tradition, this
multi-farious organization with more than 16000 employees representing almost every culture
and state in the country, shall continue to provide supreme quality of service and earn the trust of
millions of people with its constant innovation and dynamism in the times to come. With trust
built over 123 years of unblemished services to the community and with values driving its
business process, the group is now on a critical diversification journey.

40
  Share Wealth

Share wealth Securities Ltd is the first corporate member of National Stock Exchange of
India Ltd, Bombay Stock Exchange Ltd and MCX Stock Exchange Ltd(MCX-SX) from
THRISSUR, the Cultural Capital of Kerala. Sharewealth is also a Depository Participant with
CDSL (Central Depository Services (India) Ltd).Sharewealth Securities Ltd has two group
companies, Sharewealth Commodities Pvt Ltd (Member: MCX, NCDEX, NMCE ,ICEX and
NSEL) and Sharewealth Financial Services Ltd (AMFI Registered Mutual Fund Distributor).
Sharewealth has a group (Overseas Joint Venture) company at Abu Dhabi; Sharewealth
Financial Consultancy LLC.Registered and Corporate offices of Sharewealth Group of
companies are at Thrissur.

 Motilal Oswal

Motilal Oswal Securities Ltd. (MOSL) was founded in 1987 as a small sub-broking unit,
with just two people running the show. Focus on customer-first-attitude, ethical and transparent
business practices, respect for professionalism, research-based value investing and
implementation of cutting-edge technology has enabled us to blossom into an over 1600 member
team. Today they are a well diversified financial services firm offering a range of financial
products and services such as Wealth Management, Broking and Distribution, Commodity
Broking, Portfolio Management Services, Institutional Equities, Private Equity, Investment
Banking Services and Principal Strategies.

 Anandrathi

Anand Rathi is a leading full service investment bank founded in 1994 offering a wide range
of financial services and wealth management solutions to institutions, corporations, high–net
worth individuals and families. The firm has rapidly expanded its footprint to over 350 locations
across India with international presence in Hong Kong, Dubai and London. Founded by Mr.
Anand Rathi.

41
  Angel Brocking

Angel Booking’s tryst with excellence in customer relations began in 1987. Today, Angel
has emerged as one of the most respected Stock-Broking and Wealth Management Companies in
India. With its unique retail-focused stock trading business model, Angel is committed to
providing ‘Real Value for Money’ to all its clients.

The Angel Group is a member of the Bombay Stock Exchange (BSE), National Stock Exchange
(NSE) and the two leading Commodity Exchanges in the country: NCDEX and MCX. Angel is
also registered as a Depository Participant with CDSL. They mainly deals with Equity trading,
Commodity Trading, Portfolio management services, Mutual Funds, Life Insurance, IPO’s,
Depository Services, Investment Advisory services .

42
ORGANIZATION STRUCTURE

43
ORGANIZATION STRUCTURE

CORE MANAGEMENT

CEO MD COO

STATE HEAD HEDGE RMS

SALES SCHOOL

KNOWLEGE & EQUITY &

ONLINE MARKETING OPERATIONS
WEALTH MGHT COMMODITY

BUSINESS PMS TRANING IT

DEVELOMENT
OVERSEAS
OPERATION ACCOUNTS

RESEARCH FRANCHISE
OPERATIONS

GM

UNDER THE GM

GM

ADMIN HR DP COMPLAINCE KYC

MANGER MANAGER MANAGER MANAGER MANAGER

44
REGIONAL ORGANISATIONAL STRUCTURE

REGIONAL
MANAGER

BRANCH
MANAGER

SUPPORT DEALER EQUITY RELATIONSHIP

STAFFS COMMODITY ADVISOR MANAGER

45
DEPARTMENTS OF HEDGE EQUITES

46
DEPARTMENTS OF HEDGE EQUITES

 Client Relation Department

 Finance Department

 Marketing Department

 Business associate development

 Brand promotion
 Investment promotion

 Systems Department

 Human Resources Department

 Training
 Wages and Salary
 Performance Appraisal

 Trading Department

 Online Trading
 Internet Trading

 Delivery And Depository Department

 Power of attorney
 Depository function
 Dematerialization
 Pledging

47
 Equity Research Department

 Fundamental analysis
 Technical analysis

48
 Client Relation Department

The client relation department assists the client or customer top open an account in
HEDGE EQUITIES (p) Ltd securities. This department is also known as the front office. A
client has to open two types of accounts to trade and own securities in the NSE and BSE.

Finance Department

Thus a department, to organize financial activities may be created under the direct control
of the board of directors. Finance manager will decide the major financial policy methods. Lower
levels can delegate the other routine activities.

Marketing Department

The major functions of marketing department are:

a. Business associate development: The Company takes up the marketing activities

of the various branches. It ensures an efficient marketing arena at its various
branches. The company encourages better relations in its branches and promotes
for the development of various marketing strategies.
b. Brand promotion: An important function of marketing department is to promote
the name of the company. HEDGE EQUITIES (P) LTD does it through the
different promotional activities. The name of HEDGE EQUITIES (P) LTD as a
stock broking firm is made known to the outside world.
c. Investment promotion: The main clients of HEDGE EQUITIES (P) LTD were its
investors. Hence the marketing department tries to capture as many investors as
possible to encourage them to invest.
d. Delivery promotion: Intraday trading is not always profitable and might involve a
lot of risk hence HEDGE EQUITIES (P) LTD promotes for delivery were the
shares are kept to be sold for a later date analyzing the profitability factors.

49
 Systems Department

The systems department is playing a vital role in the day operations of the company. It
is through the systems department that the clients can avail the facilities of Internet trading. Optic
fibre cables and high bandwidth connections from the HEDGE EQUITIES (P) LTD office to the
ISP, a dedicated server and back-up ISDN connections were maintained directly by the systems
department. For the purpose of trading they have made use of two software namely ODIN (Open
Dealers Integrated Network)

Human Resources Department

Human resource is often considered as the back bone of an organization even in this age of
advanced automation and mechanization. Since virtual organizations are not very much popular
in our part of the world, it is very important to any organization to have a HR department. The
presence of an excellent HR department increases the efficiency of an organization considerably.
Human resource management is defined as asset of practices, policies and programmes designed
to maximize both personal and organizational goals.

a. Training and induction

The selected employees will undergo three days continuous induction. During this period, he
will undergo training with all the department of HEDGE EQUITIES (P) LTD Securities (India)
Pvt. Ltd. There will also be classroom induction also within 3 months.

b. Wages and Salary Administration

The wages and salaries of the employees were fixed and granted by the HR department with
consent of the finance department.

c. Performance Appraisal

It was human resources department which gives the promotion to all employees, making
transfers and taking disciplinary actions if needed.

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d. Grievance Handling

The grievance of employees were received only through proper channels i.e., through the
particular department heads. The HR department will make solutions to the complaints as per the
rules and regulations of the company.

Trading Department

The department deals with the trading related activities of the company. The trading refers to
the buying and selling of shares. This department is the most important part of the organization.
There are two types of trading. They are

a. Online Trading:

These are the trading terminal of the organization. The each computer of the department is
termed as the trading terminal. The each terminal is assigned with NCFM certified dealers, who
is in charge of each portal will do the trade according to the client request. The terminal is
managed by either NEAT (National Exchange for Automated Trading) software or ODIN (Open
Dealers Integrated Network) software. The client can also place his through written request or
through the telephone, in this the order will be place d by the dealer.

b. Internet Trading:

The internet trading is a facility provides by the company in order to trade the securities from
his convenient place like his office, home etc. the order will be placed by the client itself, and he
can make changes before the trade is done for changing the price, cancellation of the order.

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 Delivery And Depository Department

Delivery refers to the share that bought on particular day are not sold on that day itself and
holding of the share for an appreciation in the value of the security and to trade it on a future
date. Deliver Instruction Slip: it is a slip the client should fill and gave to the dealer regarding the
purchase of the share.

There are two procedures to move the share namely

a. Power of attorney

This is which the client signs at the time of opening a trading account and depository
participant account. If the client has given the power of attorney, HEDGE EQUITIES (P) LTD
will have the power to transact the clients stock without pay –in slips.

b. Easiest

It is secured internet enabled service which means Electronic Access to Securities

information and Execution of Secured Transaction. This is facility wherein the clients can give
delivery instructions via internet. Easiest is a facility provided by CDSL.

The activities related with the depository department

a) Depository function
b) Dematerialization
c) Pledging

Equity Research Department

The function of the department is to study the details regarding the share or securities and to
make prediction regarding the future performance of the company. The following types of
approaches done through this department:

a. Fundamental analysis
b. Technical analysis

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SWOT ANALYSIS

STRENGTH

 New technology implemented for influencing customers

 Brokerage charges are less compared to competitors
 Research reports are updated and provided to the client regularly
 1:4 exposures is provided to the customers
 Hedge maintains a good product service image
 Complaints are rectified immediately
 Hedge stands second in Kerala after geojit BNP Paribas

WEAKNESS

 Lack of internal communication

OPPORTUNITY

 Good customer base

 Growing IPO issues
 Positive outlook of people towards financial product
 Attraction of new investors

THREATS

 Entering of banks into stock brokering industry

 High competition
 Unethical market practices
 Government policies

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FINDINGS

 Management is giving adequate recognition for achievements

 The company provides sufficient training in a separate institute called “ hedge school of
applied economics’
 Majority of the employees agree that working environment is comfortable and sufficient
resources are available
 There is a good relation between the management and employees
 The company has high attrition rate
 Welfare facilities are adequate for the employees
 Separate departments for looking into customer queries are established in the
organization
 Customer satisfaction is the main objective of the organization

SUGGESTIONS

 Improve internal communication

 Implement strategies to control attrition rate
 Increase promotional activities to compete in the market
 Give awareness about ethical market practices

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CONCLUSION

The objective of the programme was to gain practical knowledge on the overall functioning of
the Organization and its various departments .during the study ,a lot of practical knowledge have
been gained about the financial service industry .this study proved to be helpful in gaining idea
about the various activities undergone in a real life business situation .also it helped me to gain
more information about the present condition prevailing in the financial service industry and
their strategies that will prove beneficial for me in future ventures

This report give an insight about the company and its various functions ,the objective of the
company and how the company tries to achieve these objectives .it was a great experience to do
my organizational study in an organization like Hedge equities (P) ltd.

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BIBLIOGRAPHY

Websites

www.hedgeequities.com

www.nseindia.com

www.bseindia.com

www.investopedia.com

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