A

Project Study Report

On
Training Undertaken at

“ANAND RATHI”

Titled
“FINANCIAL SERVICES PROVIDED BY ANAND RATHI”

Submitted in partial fulfillment for the

Award of degree of
Master of Business Administration

Submitted By Submitted to
Sourabh Golechchha Mrs. Meenakshi nagar
MBA (II Yr) (Lecturer)

-
(2009-2011)

Training is the essence for the practical orientation of the professional studies
undertaken and without practical training one can not understand the real basics
and theoretical applications in practice and everything just goes in vain. A

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Trainee come to face live problems in the industries and the field the institute
where one person pursues his studies cannot provide him that practical
knowledge on all aspects of learning often the studies of a subject is said to be
incomplete until the student has been expose to his practical.

In the equity market, ANAND RATHI SECURITIES is a growing name with the
rising users in its arm and I would be honored to say that it is going to push up
the growth of securities and equity market in the coming years to come as well as
financially viable for the upcoming market segment. Our performance area was
SALES AND MARKETING.

Under ANAND RATHI SECURITIES I made a deep understanding of share

market, opening of Demat accounts and growth opportunities in the sector since
people are getting aware and investing in the share and securities market which
we say equity market. With the feedback that we gathered from customers we
tried to provide fruitful information that would be important for the organization.

ACKNOWLEDGEMENT

The Project would not be completed without the mention of those who have
spared their valuable time and shared their rich experience in making this
project this success.

Research is the search of knowledge and searching knowledge is very

tedious job. Hence it is my responsibility to pay my thanks regard s that
has directly or indirectly helped out to solve the objectives.

First of all, I express my deep sense of gratitude and deep beholden to Mrs.

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 AARTI AGIWAL, Marketing Manager, Anand Rathi Securities Ltd. for
giving me the permission to undertake my project training in the company
and their valuable guidance and motivation in completing the assignment.

I am equally thankful to our , GECJ and to all those who have directly or
indirectly helped me in completing this project a reality

SOURABH GOLECHCHHA
MBA – II year

EXECUTIVE SUMMARY

In my summer internship I did project in marketing and finance stream

with ANAND RATHI at its office in jaipur (Rajasthan). Working with ANAND
RATHI as a summer trainee has been a real learning experience. My tenure at
ANAND RATHI was of 45 days. (From 16 june to 1 august, 2010).

During my internship, I worked on financial services project in the

organization. In my project I analysed the which type of services
company provide to its customer to achive the objective of the project.

I started the project from understanding project, defining its objective and divide it
into steps to achieve defined objective. These steps became helpful to me in
timely completion and acquiring information at required time.

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An insight view of the project will encompass – what it is all about,what it aims to
achieve, what is its purpose and scope, the various methods used for collecting
data and their sources, including literature survey done further specifying the
limitations of our study and in the last, drawing inferences from the learning so
far.

Under ANAND RATHI SECURITIES I made a deep understanding of share

market, opening of Demat accounts and growth opportunities in the sector since
people are getting aware and investing in the share and securities market which
we say equity market. With the feedback that we gathered from customers we
tried to provide fruitful information that would be important for the organization.

CONTENT

1. Introduction to the Industry

2. Introduction to the Organization

3. Research Methodology

3.1 Title of the Study

3.2 Duration of the project

3.3 Objective of the Study

3.4 Type of Research

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 3.5 Sample size and Method of Selecting Sample

3.6 Scope of the study

3.7 Limitations of the study

4. Facts and Findings

5. Analysis and Interpretation

6. SWOT

7. Conclusion

8. Recommendation and Suggestions

9. Appendix

10. Bibliography

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1.1 WHAT IS FINANCIAL SERVICE INDUSTRY

There is a potential source of confusion regarding careers in finance. On the

one hand there is a function called finance that is a common to all business
enterprises, in every industry. On the other hand, there is a financial service
industry. Our focus will be on the later definition. To add yet more potential
confusion, the finance functions but one of many possible career paths within
the financial service industry.

1.2 THE FINANCE FUNCTION

The finance function encompasses a variety of jobs categories. Degrees and / or
professional certification in accounting are necessary in only a minority of cases,
for the most part, fall into these three broad categories:

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 • Corporate controller staff

• Internal audit staff

• Corporate treasury staff

1.3 THE FINANCIAL SERVICE INDUSTRY

The financial services industry includes firms that are engaged in activities such
as investing, lending, insurance, securities trading and securities issuance. This
is not an exhaustive list, but these is companies can be characterized as being in
one or more of the following line of business:
• Banking

• Insurance

• Securities Brokerage

• Investment Banking

• Securities Trading

• Investment management (or money management)

• Securities Analysis

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2.1 ABOUT ANAND RATHI

AnandRathi (AR) is a leading full service securities firm providing the

entire gamut of financial services. The firm, founded in 1994 by Mr.
AnandRathi, today has a pan India presence as well as an international
presence through offices in Dubai and Bangkok. AR provides a breadth
of financial and advisory services including wealth management,
investment banking, corporate advisory, brokerage & distribution of
equities, commodities, mutual funds and insurance, structured products -
all of which are supported by powerful research teams. The firm's
philosophy is entirely client centric, with a clear focus on providing long
term value addition to clients, while maintaining the highest standards of
excellence, ethics and professionalism. The entire firm activities are
divided across distinct client groups: Individuals, Private Clients,
Corporates and Institutions and was recently ranked by Asia Money
2006 poll amongst South Asia's top 5 wealth managers for the ultra-rich.
In year 2007 Citigroup Venture Capital International joined the group as
a financial partner.

2.1.2 AR CORE STRENGTHS

Breadth of Services: In line with its client-centric philosophy, the firm

offers to its clients the entire spectrum of financial services ranging from
brokerage services in equities and commodities, distribution of mutual
funds, IPOs and insurance products, real estate, investment banking,
merger and acquisitions, corporate finance and corporate advisory.

Clients deal with a relationship manager who leverages and brings

together the product specialists from across the firm to create an
optimum solution to the client needs.

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2.1.3 MANAGEMENT TEAM

AR brings together a highly professional core management team that

comprises of individuals with extensive business as well as industry
experience.

In-Depth Research: Our research expertise is at the core of the value

proposition that we offer to our clients. Research teams across the firm
continuously track various markets and products. The aim is however
common - to go far deeper than others, to deliver incisive insights and
ideas and be accountable for results.

Management Team:

Our senior Management comprises a diverse talent pool that brings

together rich experience from across industry as well as financial
services.

1. Mr. Anand Rathi - Group Chairman, Chartered Accountant, Past

President, BSE; Held several Senior Management positions with one

of India's largest industrial groups

2. Mr. Pradeep Gupta - Vice Chairman; Plus 17 years of experience in

Financial Services

3. Mr. Amit Rathi - Managing Director; Chartered Accountant & MBA;

Plus 11 years of experience in Financial Service

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 2.1.4 MILESTONES

1994: Started activities in consulting & Institutional equity sales with 15 staff.
1995: Set up a research desk and empanelled with major institutional investors
1997: Introduced investment banking businesses; Retail brokerage services
launched
1999: Lead managed first IPO and executed first M & A deal
2001: Initiated Wealth Management Services
2002: Retail business expansion recommences with ownership model
2003: Wealth Management assets cross Rs1500 crores; Insurance broking
launched; Launch of Wealth Management services in Dubai; Retail Branch
network exceeds 50
2004: Commodities brokerage and real estate services introduced; Wealth
Management assets cross Rs3000crores; Institutional equities business
relaunched and senior research team put in place; Retail Branch network
expands across 100 locations within India
2005: Real Estate Private Equity Fund Launched; Retail Branch network
expands across 200 locations within India
2006: AR Middle East, WOS acquires membership of Dubai Gold & Commodity
Exchange (DGCX); Ranked amongst South Asia's top 5 wealth managers for the
ultra-rich by Asia Money 2006 poll; Ranked 6th in FY2006 for All India Broker
Performance in equity distribution in the High Networth Individuals (HNI)
Category; Ranked 9th in the Retail Category having more than 5% market share;
Completes its presence in all States across the country with offices at 300+
locations within India
2009: Citigroup Venture Capital International picks up 19.9% equity stake; Retail
customer base crosses 100 thousand; Establishes presence in over 350 locations

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2.2 PRIVATE WEALTH MANAGMENT

2.2.1 Introduction

Affluent individuals need sophisticated advice and strategic guidance to

capitalize on opportunities to preserve, grow and transfer their wealth. In
addition, a desire exists within wealthy families to simplify the
management of multigenerational needs and lessen the profound
emotional impact of wealth on family members. AR offers the most
extensive platform of customized servicing, individual strategies and
products to help meet the requirements of the affluent private investor.
We provide comprehensive, integrated investment strategies to address
your wealth management needs. Working closely with specialists across
firm PWM offers an array of products & services, which includes AR's
highly-rated research.

2.2.2 Philosophy

We at AnandRathi try and understand your financial needs; to offer you

personal advice and expert analysis that you need to make your assets
go the Xtra mile. Our ability to think far ahead and formulate a long-term
strategy, coupled with long hours of practice and research are the key
drivers, which make your wealth work harder for you.

We believe that the key to build wealth lies in allocating assets across
various markets, financial instruments and industry sectors. Keeping this
in mind we leverage our expertise in scientific asset allocation, to help
you maximize returns and minimize risks.

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2.2.3 Process

We realize the need to simplify the complexities of the investment

strategies and we achieve this by offering highly customized wealth
management product - LaXmi TM (let your Assets go the Xtra Mile TM).
Our Personalized Relationship Managers along with the expert team of
analysts and advisors will assist you in analyzing all your investment
needs and advice you on specialized solutions created exclusively for
you. We have a dedicated research team who constantly screens the
market for investment prospects. The team provides support in fine-
tuning the investment strategy & suggests how to capitalize on these
opportunities.

2.2.4 Research

Our research expertise is at the core of the value proposition that we

offer to our clients. Research teams across the firm continuously track
various markets and products. The aim is however common - to go far
deeper than others, to deliver incisive insights and ideas and be
accountable for results. AR research processes incorporate quantitative
areas well as qualitative analyses. This multi-pronged approach helps us
to provide superior risk- adjusted returns for our clients. AR analysts
provide objective and decisive research that is designed to enable clients
to make informed investment decisions. The team covers entire
spectrum of financial markets from equities, fixed income, and
commodities to currencies. They also cover the global markets, to give
clients an unparalleled macro-view of the investment opportunities
across the globe.

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2.3.1 BROKERAGE & DISTRIBUTION SERVICES

1 Equity & Derivatives Brokerage: AnandRathi provides end-to-end

equity solutions to institutional and individual investors. Consistent
delivery of high quality advice on individual stocks, sector trends and
investment strategy has established us a competent and reliable
research unit across the country. Clients can trade through us online on
BSE and NSE for both equities and derivatives. They are supported by
dedicated sales & trading teams in our trading desks across the country.
Research and investment ideas can be accessed by clients either
through their designated dealers, email, web or SMS.

2. Mutual Funds: AR is one of India's top mutual fund distribution

houses. Our success lies in our philosophy of providing consistently
superior, independent and unbiased advice to our clients backed by in-
depth research. We firmly believe in the importance of selecting
appropriate asset allocations based on the client's risk profile. We have a
dedicated mutual fund research cell for mutual funds that consistently
churns out superior investment ideas, picking best performing funds
across asset classes and providing insights into performances of select
funds.

3. Depository Services: AR Depository Services provides you with a

secure and convenient way for holding your securities on both CDSL and
NSDL. Our depository services include settlement, clearing and custody
of securities, registration of shares and dematerialization. We offer you
daily updated internet access to your holding statement and transaction
summary

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 4. Commodities: Commodities broking - a whole new opportunity to
hedge business risk and an attractive investment opportunity to deliver
superior returns for investors. Our commodities broking services include
online futures trading through NCDEX and MCX and depository services
through CDSL. Commodities broking is supported by a dedicated
research cell that provides both technical as well as fundamental
research. Our research covers a broad range of traded commodities
including precious and base metals, Oils and Oilseeds, agri-commodities
such as wheat, chana, guar, guar gum and spices such as sugar, jeera
and cotton. In addition to transaction execution, we provide our clients
customized advice on hedging strategies, investment ideas and arbitrage
opportunities.

5. Insurance Broking: As an insurance broker, we provide to our clients

comprehensive risk management techniques, both within the business
as well as on the personal front. Risk management includes
identification, measurement and assessment of the risk and handling of
the risk, of which insurance is an integral part. The firm deals with both
life insurance and general insurance products across all insurance
companies. Our guiding philosophy is to manage the clients' entire risk
set by providing the optimal level of cover the least possible cost. The
entire sales process and product selection is research oriented and
customized to the client's needs. We lay strong emphasis on timely claim
settlement and post sales services.

Our services:

 Risk Management

 Due diligence and research on policies available

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 Recommendation on a comprehensive insurance cover based on
clients needs

 Maintain proper records of client policies

 Assist client in paying premiums

 Continuous monitoring of client account

 Assist client in claim negotiation and settlement

6. IPO: We are a leading primary market distributor across the country.

Our strong performance in IPOs has been a result of our vast experience
in the Primary Market, a wide network of branches across India, strong
distribution capabilities and a dedicated research team. We have been
consistently ranked among the top 10 distributors of IPOs on all major
offerings. Our IPO research team provides clients with indepth overviews
of forthcoming IPOs as well as investment recommendations. Online
fillng of forms is also available.

TO NRIS

Introduction

AR is the perfect gateway to the wealth of investment opportunities in

India for Non-Resident Indians. With our dedicated NRI desk in India and
Relationship Managers in your own country, you get the best of both
worlds - real understanding of your investment needs as well on-the-
ground expertise.

Why choose AR?

Superior understanding of the Indian economy & markets

Ability to structure and manage your tax and regulatory compliances

Dedicated relationship team

Unparalleled product range - Indian and Global

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2.3.2 INSTITUTIONAL SERVICES

Institutional Equities: The Institutional sales and trading team provides

cutting edge market information and investment advice to clients,
coupled with excellent execution capabilities. A highly experienced and
reputed team of equity analysts supports the sales team. There is an
extensive focus on research on companies, sectors and macro-
economy. The institutional equity team tracks nearly 250 large and mid-
sized companies to give clients an unparalleled breadth of ideas. We
also provide Investment Advisory Services for institutional clients in India
and overseas for investment in the Indian equity markets.

Research: Our research expertise is at the core of the value proposition

that we offer to our clients. Research teams across the firm continuously
track various markets and products. The aim is however common - to go
far deeper than others, to deliver incisive insights and ideas and be
accountable for results. AR research processes incorporate quantitative
areas well as qualitative analyses. This multi-pronged approach helps us
to provide superior risk- adjusted returns for our clients. AR analysts
provide objective and decisive research that is designed to enable clients
to make informed investment decisions. The team covers entire
spectrum of financial markets from equities, fixed income, and
commodities to currencies. They also cover the global markets, to give
clients an unparalleled macro-view of the investment opportunities
across the globe.

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2.3.2 MANAGED INVESTMENT SERVICES

1. Portfolio Management Services (PMS): AR Portfolio Management

Service is a discretionary investment service created to meet the
demand for more targeted investment styles and opportunities. It offers a
range of specialized investment strategies designed to capture
opportunities across the market spectrum. The range of products varies
from the highly defensive, capital-protected to the most aggressive
strategies in the equities and derivatives markets. Our investment
process ensures that your strategy and portfolio are built on solid
foundations. Together you and your relationship manager select the
strategy in line with your individual goals. AR investment specialists then
construct and manage your portfolio in accordance with the chosen
investment strategy.

2. Real Estate Opportunities Fund: AR Real Estate Opportunities Fund

is a private equity fund for high net-worth individuals, corporates and
institutions, to invest in equity-linked instruments in the Indian real estate
and infrastructure sectors. As part of the structural reforms to further
boost India's economic growth, the government has recognized the need
for institutional finance in the real estate sector. In early 2005, the
government has relaxed the FDI guidelines in real estate and also
allowed the setting up of real estate investment funds under SEBI
guidelines. These developments are expected to provide much needed
capital to provide for the increasing demand for quality real estate in
major urban centers across the country. To capture this opportunity, AR
has brought together a team of specialists and advisors to guide the
fund's investments who bring together expertise in the areas of real
estate consulting, development, legal and financial structuring.

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2.3.4 INSTITUTIONAL WEALTH MANAGEMNET

Introduction

Corporate and Institutional treasuries need ever more sophisticated

advice that is backed by serious and credible research. AR IWM
provides its institutional clients integrated wealth management solutions
across global markets, which are backed by proprietary global economic
& investment research.

We understand that your needs could range from finding short-term

surplus management strategies to higher yielding and long term
investments. The IWM team brings together the highly-rated AR
research across fixed income, currencies and equities markets to provide
investment solutions that meet your complex needs - from simple
money-market mutual funds to complex arbitrage strategies in the
equities or commodities markets.

Products

Equity & Derivatives

Mutual Funds
Depository Services
Commodities
Insurance
IPOs

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 Client List

• ACC
• Bayer
• Tata Iron & steel
• Century Textiles
• Clariant
• CRISIL
• Crompton Greaves
• Dabur
• Datamatics
• GE Shipping
• Godrej
• Goodlass Nerolac
• Grasim
• Gujarat Ambuja Cements
• Gujarat Pipavav Port
• Heinz India
• Hindalco
• Hindustan Lever
• H&R Johnson
• IDFC
• Indian Rayon
• Jindal Group
• Larsen & Toubro
• Mastek
• Mahindra & Mahindra
• Raymonds
• Sterlite Group
• Syngen

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Research: Our research expertise is at the core of the value proposition that we
offer to our clients. Research teams across the firm continuously track various
markets and products. The aim is however common - to go far deeper than
others, to deliver incisive insights and ideas and be accountable for results. AR
research processes incorporate quantitative areas well as qualitative analyses.
This multi-pronged approach helps us to provide superior risk- adjusted returns
for our clients. AR analysts provide objective and decisive research that is
designed to enable clients to make informed investment decisions. The team
covers entire spectrum of financial markets from equities, fixed income, and
commodities to currencies. They also cover the global markets, to give clients an
unparalleled macro-view of the investment opportunities across the globe.

2.3.5 CORPORATE ADVISORY SERVICES:

Introduction: AnandRathi Advisors assists companies in realizing tangible

improvements in various facets of their businesses by providing a range of
corporate advisory services that includes the entire gamut from financial,
organizational and operational restructuring, to profit improvement and
business turnaround strategies. Highly qualified and thoroughly professional,
our specialists, experts and associates assist you in conceptualising
problems and devising effective solutions, whatever be your need.

Successful assignments undertaken for leading organisations in India as well

as overseas bear ample testimony to our wide-ranging capabilities, utilising
our unparalleled business know-how to give you the competitive edge. We
have successfully handled various assignments under industry segments like
refinery, cement, mining, power, paper, metals, airlines and optic fibre.
 Services

1. Performance Improvement and Cost Reduction

2. Business Strategy and Re-engineering

3. Financial, Business & Organizational restructuring

4. Business Turn-around Strategies

5. Management Systems: MIS, Review & Control Mechanism

2.4 INVESTMENT BANKING AND CORPORATE FINANCE

2.4.1 Investment Banking: AR Investment Banking provides

comprehensive services to clients including raising money in the equity
capital markets to identifying strategic alliances, mergers and acquisition
opportunities and debt financing & restructuring advisory.

2.4.2 Corporate Finance: The AR Corporate Finance team helps clients

manage their debt-financing needs by profiling business and cash-flow
risks, defining the alternative sources of funding, building in multiple
variables such as currencies, fixed-floating, tenure, collateral etc. in a
comprehensive manner and finally negotiating with the prospective
lenders / buyers. The team has also built an impressive track-record in
debt restructuring based on its superior understanding of business needs
and relationships with key lenders. The Corporate Finance team has
handled assignments in businesses like paper, hospitality, telecom,
textiles and sugar.

Services

Investment Banking :

Merchant Banking

A highly experienced equity capital markets team, a pan-India

distribution presence and a high level of quality and integrity in executing
client's transactions has enabled us to provide tangible value to our
clients' businesses.

We bring quality independent advice and excellent execution capabilities

to create landmark transactions for clients. Our track record of
successfully lead managed IPOs includes Tips Industries, Emami, HCL
Infosystems and Provogue.
 M&A, Private Equity

Our Mergers & Acquisition team works with clients in creating lasting
stakeholder value through advice on mergers, acquisitions, divestitures
and private equity financing.The team leverages on the firm's superior
understanding of businesses and tax and regulatory environments as
well as a deep network of relationships across the professional and
corporate world. We have worked extensively with clients in industries
like cement, sugar, chemicals, power and textiles for mergers and
acquisition deals, valuation and business restructuring.

Corporate Finance :

 Raising Cost-effective debt resources in Rupee and Foreign

Currency for Projects, Working Capital and Specific needs.

 Financial Restructuring, CDR, OTS, Interest Cost Reduction, Long-

term Corporate Loans for Working Capital Margins.

 Financial products and services in hedging of interest and currency

risks.

Distribution Capabilities

1. Strong pan- India distribution network, with presence at over 130

locations across India.

2. Leading distributor of equity related products including IPOs & mutual

fund

3. Have been consistently amongst the top 8 brokers, inspite of not

being a lead manager.

4. 50000 plus captive Institutional clients and HNIs

5. Strong after market support

2.5 ANAND RATHI – HISTORY FILE

1994: Started activities in consulting and Institutional equity sales with

staff of 15

1995: Set up a research desk and empanelled with major institutional

investors

1997: Introduced investment banking businesses

Retail brokerage services launched

1999: Lead managed first IPO and executed first M & A deal

2001: Initiated Wealth Management Services

2002: Retail business expansion recommences with ownership model

2003: Wealth Management assets cross Rs1500 crores

Insurance broking launched

Launch of Wealth Management services in Dubai

Retail Branch network exceeds 50

2004: Commodities brokerage and real estate services introduced

Wealth Management assets cross Rs3000crores

Institutional equities business relaunched and senior research team put

in place

Retail Branch network expands across 100 locations within India

2005: Real Estate Private Equity Fund Launched

Retail Branch network expands across 200 locations within India

2006: AR Middle East, WOS acquires membership of Dubai Gold &

Commodity Exchange (DGCX) Ranked amongst South Asia's top 5
wealth managers for the ultra-rich by Asia Money 2006 poll Ranked 6th
in FY2006 for All India Broker Performance in equity distribution in the
High Net worth Individuals (HNI) Category Ranked 9th in the Retail
Category having more than 5% market share

Completes its presence in all States across the country with offices at
300+ locations within India

2009: Citigroup Venture Capital International picks up 19.9% equity

stake

Retail customer base crosses 100 thousand

Establishes presence in over 350 locations

 When any corporate event such as rights or

bonus or dividend is announced for a particular security, the Depositories
will give all the details of the clients having electronic holdings of that
security as of record date / book closure to the Registrars and Transfer
Agents of the Company who will then calculate the corporate benefits due
to all the share holders. The disbursement of cash benefits such as
dividend / interest will be done by the Company whereas the distribution
of securities / entitlements will be done by the Depositories based on the
information provided by the Registrars and Transfer Agents of the
Company. Thus, bonus / rights shares, if any, will be credited to your
account electronically.

 Well, in case of those corporate events where

you can exercise your option such as rights issue or optional conversion
of debentures to shares, you do have a choice of either physical or
electronic mode of holdings. However, corporate entitlements such as
bonus will be made in the same form as of your original holdings.

 You can approach your DP who in turn will

contact the Registrars and Transfer Agents of the Company for
clarifications regarding allotment of securities. In case of discrepancies in
cash benefits you will have to contact the Registrars and Transfer Agents
of the Company.
2.6.1 Equity

Equity is a share in the ownership of a company. It represents a claim on the

company's assets and earnings. As you acquire more stock, your ownership
stake in the company increases. The terms share, equity and stock mean the
same thing and can be used interchangeably.

Holding a company''s stock means that you are one of the many owners
(shareholders) of a company, and, as such, you have a claim (to the extent
of your holding) to everything the company owns. Yes, this means that
technically, you own a portion of every piece of furniture; every trademark;
every contract, etc. of the company. As an owner, you are entitled to your
share of the company's earnings as well as any voting rights attached to the
stock Another extremely important feature of equity is its limited liability,
which means that, as a part-owner of the company, you are not personally
liable if the company is not able to pay its debts.

In case of other entities such as partnerships, if the partnership goes

bankrupt, the partners are personally liable towards the creditors/lenders and
they may have to sell off their personal assets like their house, car, furniture,
etc., to make good the loss. In case of holding equity shares, the maximum
value you can lose is the value of your investment. Even if a company of
which you are a shareholder goes bankrupt, you can never lose your
personal assets.
2.6.1.1 Characteristics of equity

1. Equity is unsecured and a high risk-return investment: When you

invest your money in a debt investment such as a bank deposit,
bonds, etc., you are promised a fixed amount of interest on your
investment and return of capital. This isn't the case with an equity
investment. By becoming an owner, you bear the risk of the company
not being successful. However, the rewards for bearing this risk are
high. Equity shareholders are entitled to a share in the profits of the
company’s business as well as any appreciation in the perceived
value of the shares. The risks and rewards of investing in equity are
clearly apparent from the Bombay Stock Exchange Sensitive Index
(BSE Sensex), which is a popular stock market index.

2. Equity remains in perpetual existence: The perpetual existence of

a company implies that the death, disability, retirement or termination
of a shareholder, director or officer, will not affect the existence of the
company. For an equity shareholder, this is convenient since he does
not need to renew/renegotiate the terms of his investment (like in the
case of a fixed tenure debt investment). He also has the option to sell
his equity holding through the stock exchange if he no longer wants to
remain invested in the company.

3. Limited liability: Another extremely important feature of equity is its

limited liability, which means that, as a part-owner of the company,
you are not personally liable if the company is not able to pay its
debts. In case of other entities such as partnerships, if the partnership
 goes bankrupt the partners are personally liable towards the
creditors/lenders and they may have to sell off their personal assets
like their house, car, furniture, etc., to make good the loss

4. Income from equity investing

Capital appreciation: Equity shares of companies are listed and traded on a

stock exchange (the Bombay Stock Exchange or the National Stock
Exchange). The market prices of these shares are continuously moving up or
down depending on the interest in the company’s stock, it’s business
potential, etc. As an equity shareholder, you can profit/lose from the market
price rise/fall.

Bonus shares: When you purchase shares of a company, you become a

shareholder of the company. When the company is doing well, it may declare
a ‘bonus issue’. This means that the company will issue fresh equity shares
to its existing shareholders, for free. As a shareholder, you will be entitled to
receive bonus shares in proportion to your holding in the company. When
you sell your bonus shares in the stock market, the market price at which you
sell your bonus, minus brokerage charges and necessary taxes (Service Tax,
Securities Transaction Tax, etc.), will be your profit i.e. capital appreciation.
In this case, there will be no cost of purchase since you have received the
bonus for free.

Rights shares: Another way a company offers benefits to its shareholders is

by offering ‘rights shares’. This means that the company will offer fresh equity
shares to its existing shareholders at a price, which is lower than the current
market price of the share.
Dividend income: Companies report their profits earned on a quarterly
basis. Based on the quantum of profits, companies declare dividends to
distribute a portion of these profits to their shareholders. Dividends are
declared as a percentage of the share’s face value. As a shareholder, you
will be entitled to dividend to the extent of your share holding.

5. Stock Selection Guidelines

1. Know the business: Warren Buffett, one of the world’s most successful
investors, follows the philosophy of buying stocks of only those businesses
that he understands. Select companies in businesses that you already have
an idea of and find interesting. One of the businesses that could be of
interest to you would be the one, which you are affiliated to because of your
employment. For instance, if you are working in a pharma company, you may
understand this business well.

2. Assess the past performance: All companies present details of their

financial performance in their Annual Reports. In case of a company having
its Initial Public Offering – IPO (when a company offers its shares to the
public for the first time, it is called Initial Public Offering), it is required to
publish its past performance in its IPO offer document. There are also a vast
number of research reports published by research and brokerage houses,
and company analysis done by the media, which is worth reading, to assess
a company’s past performance and future potential. ‘Ratio Analysis’ is widely
used to assess a company’s past performance.

3. Know the promoters: The promoters and management team of a

company are the key people who drive its business. Their integrity dictates
whether the business benefits or they benefit personally. Also, their
experience and business competence is crucial for business growth.
Evaluate the company’s promoters and management on the basis of four Cs:
Competence, Credibility, Corporate governance and Concern for
shareholders.

4. Assess the future prospects of the company: Although a company may

have performed well in the past, it is not necessary that it will continue
performing well in the future. All companies go through business cycles of
ups and downs. It is important that you form a view on the future trends of
the business the company is a player in.

5. Assess the stock price: As mentioned earlier, the share price of all
companies continuously fluctuate on the stock markets with investors buying
and selling the shares. The price at which an investor is willing to buy or sell
a share of a company is the perceived value of the share of the company
taking into consideration the company’s present business and future
business growth. In addition to this, investor sentiment plays a large role in
pricing of stocks. To help you assess this, you could use a popular stock
market ratio called the Price/Earning ratio (P/E ratio) & is based on the
following formula: P/E ratio = Market price of the share; Earning per share
(EPS); *EPS = Profit After Tax (PAT) The P/E ratio helps judge by how many
times the company’s share is traded based on its earnings. In this case, the
company’s stock is available at a multiple of 15 times its earnings. The higher
the P/E ratio, the higher is the stock’s valuation. Usually market prices of
well-established companies with a good past track record and reputed
promoters command a high P/E ratio.
2.6.2 Equity Investing Strategies

There are various methods and strategies one can adopt while investing in
equity. Some of the popular ones are enumerated below

1. Value investing: Value investing means investing in companies that are

believed to be currently undervalued but whose worth will be recognized by
the market eventually. These companies’ intrinsic or fundamental values are
higher than their market values. This strategy implies investing in such
rcompanies before the markets recognize their true values and push up their
share prices accordingly.

2. Investing in dividend yield stocks: Dividend yield is a ratio, which

divides the dividend paid out by a company with the current market price. For
instance, if a company pays out Rs 5 per share as dividend and its current
market price is Rs 55, its dividend yield is about 9 per cent (Rs 5 / Rs 55 x
100). Companies, which offer high dividend yields, are usually ‘value’
companies, which ‘value investors’ look for.

3. Diversification: Diversification means spreading your money over a

number of investments. In other words, you don’t concentrate your money
over just one or two, or only over a few investments. For instance, if you
have an investible surplus of Rs 1 lakh, you can diversify into two ways.
Firstly, don’t invest the entire Rs 1 lakh in just one asset class.

Diversification benefit and pitfall. Diversification is a well-established risk

management investment strategy. It helps spread your risks over investment
options offering different risk-return levels. Diversification especially help
when one invests in investment options with complementary risk-return
profiles.
However, by investing in both, debt and equity, a portion of your portfolio,
which is invested in debt, will offer profits during this time to reduce the
losses on your equity investments, resulting in either an overall lower loss, or
even a marginal gain depending on the level of investment in debt. The
reverse will hold true if the equity markets are moving upwards and the debt
markets are stagnant. However, diversification also results in lower profits.

Diversification methods: Diversification can be done across different asset

classes (equity, debt, mutual funds, gold, property, etc.) as well as across
different investment options (say, in case of equity – investment in
companies with different market capitalisations, in different sectors, etc.). The
amount of investment made in each asset class and investment option will
depend on your investment risk profile and expected investment returns.

4. Growth investing: Growth investing means investing in companies,

whose turnover and profits are expected to grow significantly, which will
result in appreciation in their share prices. These companies are in a phase
of rapid growth and expansion of their businesses.

5. Rupee cost averaging / value averaging

To buy ‘low’ and sell ‘high’ is very difficult to do, especially in volatile markets
(where prices rise and fall significantly over very short periods of time). One
investment strategy that helps overcome this volatility and take advantage of
it by averaging out cost of investment, is ‘Rupee cost averaging’ (RCA) or
‘Value averaging’.

Procedure Of Investing In Equity: In the past, investing in equity involved a

high cost (high brokerage charges of about 2 per cent of the transaction
value) and a number of hassles (shares were traded in the physical form,
which involved a lot of paperwork and often resulted in bad deliveries due to
signature mis-matches, forgery, etc.). Today, the entire scenario of equity
investing has changed for the better. Shares are now traded in the electronic
(dematerialized) form and costs of investing have reduced dramatically. All
this will be done without the investor having to make efforts at every stage for
the necessary action

3-step process of investing in equity:

Step 1: Open the necessary accounts

Before you start investing in equity, you need to open the following accounts:

Broking account: This is an account you open with a broker. You will need
to fill in an application form, which will require you to submit details such as
your full name, address, Permanent Account Number (PAN), etc. Once your
application has been processed, you will receive a broking account number.

Demat account: This is the account, which will hold shares purchased by
you, in electronic form. This works like a bank account. In case of a bank
account, you deposit and withdraw your money and receive a bank
statement periodically, which shows you how much money is remaining in
your account. Similarly, in case of a demat account, shares purchased by
you are deposited into your account and shares sold by you are withdrawn
from your account, and you receive a statement periodically, showing the
shares remaining in your account. A demat account can be opened with a
depository participant. It is preferable to have your demat account maintained
with your broker or an entity affiliated to your broker.
This ensures prompt transfers to and from your demat account of shares
purchased and sold by you without any effort required to be made by you
(you simply need to issue necessary one-time instructions to your broker).

Bank account: You can use an existing bank account for your equity
investments.

Step 2: Decide your mode of transacting – in cash or with margins

You have two options of investing in equity:

1. By making purchases in cash and taking delivery of the shares or

2. By undertaking margin trading (you pay only a portion of the cost for
purchases and your broker funds the balance) and squaring off your
positions (you don’t take delivery of the shares. You simply book your profit
or loss).

If you decide to undertake cash purchases, you need to have sufficient funds
in your bank account to make the purchases. If you decide to undertake
margin trading, you need to pay the broker the margin amount and start your
trading.

Step 3: Deciding on which mediums to use for transacting

There are a number of mediums you can use to transact in equity. These
are:

Visits to the broker’s office/branches: You can simply visit your broker’s
office or closest branch and undertake your transaction by interacting with a
counter representative.
Via telephone: This is the traditional way of transacting. You simply call your
broker and place your order. This facility is available in the form of call
centres.

The Internet: Register yourself with your broker’s internet portal and use the
equity-trading platform available to conduct your trades.

Kiosks: Kiosks are like booths or cabins placed at prominent locations

across the city. Simply enter a kiosk and execute your trade. A kiosk is used
for trading through the internet. The only difference is that instead of using
your home computer, you can use the kiosk located outside your home.

2.6.2 DERIVATIVES

Derivatives, as the name suggests, are financial instruments that derive their
value from an underlying security or asset. The underlying could be equity
shares or an index, a commodity, a currency or the exchange rate, bonds,
etc. Sounds complicated? In a way, it is. But once you are clear about how a
derivative product derives its value from an underlying asset and yet has a
price and an identity of its own, it will become just another financial product to
you. Then again, derivative products have more variants than any other
financial products since they have been created to meet a variety of niche
needs. There are various derivative products, which derive their value from
equity shares or an index, a commodity, a currency or the exchange rate,
bonds, etc. These derivative products vary according to their structure and
terms and conditions. The most popular derivative products are Forwards,
Futures, Options, Warrants and Swaps. Some of these are short term in
nature while others are long term. For example stock and index options that
can be traded on stock exchanges are short term in nature, while options like
warrants and rights have a longer term.
Derivative products have been around for a long, long time. In fact, as early
as the 1650s, dealings resembling present day derivative market
transactions were seen in rice markets in Osaka, Japan. The first leap
towards an organized derivatives market came in 1848, when the Chicago
Board of Trade (CBOT), the largest derivative exchange in the world, was
established.

Today, equity and commodity derivative markets are rapidly gaining in size in
India. In terms of popularity too, these markets are catching on like a forest
fire. So, what are these markets all about? What are the products that they
trade in? Why do people feel the need to trade in such products and what
sort of traders benefit from such trades? Do these markets hold scope for
retail investors too? And if so, how exactly can you go about trading in them?

2.6.1.1 Derivative markets in India

Globally, the last four decades have seen phenomenal growth in derivative
markets. In the process, many new products have been developed and this
has also led to a sharp rise in volumes over the years. Today, derivative
markets have become an integral feature of financial markets in developed
countries and this phenomenon is gaining momentum in developing
countries, too.

Since the introduction of futures and options in the Indian equity markets, the
turnover in this segment has increased manifold. For instance, in the case of
the National Stock Exchange (NSE), the average daily turnover in the futures
and options segment stood at Rs 410 crore for the financial year 2001-02. By
fiscal 2004-05, it increased 24 times over to more than Rs 10,000 crore!
Since the introduction of futures and options in the Indian equity markets, the
turnover in this segment has increased manifold. For instance, in the case of
the National Stock Exchange (NSE), the average daily turnover in the futures
and options segment stood at Rs 410 crore for the financial year 2001-02. By
fiscal 2004-05, it increased 24 times over to more than Rs 10,000 crore!.
3. RESEARCH METHODOLOGY

3.1 Research: - is a process of collecting, analyzing, interpreting and

summarizing in a significant manner for the purpose of framing out
necessary conclusion and findings of data perceived and formulated for
deriving out the meaningful information. To carry our research necessary
telephonic calls needed to be done, suitable appointments were to be
fixed and therefore market survey is to be followed.

3.2 Process: Methodology or process involving in the Research followed

during the course of summer training is as follows: -

a) Collection of data: - This is an important aspect in formulating the

objective of research process where the data is collected via two
process: - i) Primary Sources and ii) Secondary sources

i) Primary sources: - Where the data is collected primarily by

interviewing and personal observation and is original in nature and accurate
to the considerable extent.\

ii) Secondary sources: -Where the data is obtained from some

published and printed sources such as newspaper, magazines, websites and
so on.

b) Analyzing of collected data: - The data collected through market

survey and published sources is then processed to obtained necessary
inferences and findings for the purpose of achieving the objective as well
as to derive necessary conclusion. A considerable skill and knowledge is
involved in analyzing the data for the purpose of interpreting thereof.
c) Interpreting of data: - it is the significant step where the data
collected and analyzed is interpreted in the forms of graphs and figures
is depicted in the report called Project report.

d) Summarizing of data: - Thereby necessary summary is prepared

which is essential in the project report of the summer training being done
under an organization.

3.3 Helpful Arms of Research Methodology: -

3.3.1 Questionnaire: - Questionnaire is a set or group of questions

being framed for the purpose of obtaining market perspective about a
particular aspect or topic. There are two types questionnaire bing carried
necessary for the market survey of the summer training being
undertaken and put for the by the trainee to the sample people taken as
a base for entire population:

a) Open ended Questionnaire: - where the people (also called

respondents) are required freedom to present their views and
suggestions for the benefits and success of the organization.

b) Close ended questionnaire: - where the respondents is limited to the

choice of answer being delivered by the interviewer itself so that quick
and fast means of responses be derived out without wasting much time.
Here close ended questionnaire being followed by me during the course
of the summer training market survey.
 3.3.2 Sampling: - Sampling is a process of obtaining a number of
individuals taken a base for the entire population since entire population
can not be asked about the necessary objective upon which a
questionnaire is put forth needed for the responses to be derived for the
purpose of generation of facts and customer view point regarding their
perception of particular product or services.

There are two type of sampling – i) Random Sampling and ii) Systematic
sampling.

i) Random sampling: - Random sampling is a process of selecting the

sample size randomly and no choice or preference to be made about the
selection of respondents for the market survey and questionnaire to be put
forth against him. Here, Random sampling being adopted by me.

ii) Systematic sampling: - it is a sampling where the limited number of

selected respondents is figured out based on some criteria so that only those
respondents can be asked for the purpose of filing questionnaire.

3.4 Sample Size: - 75 respondents

.
5.FINDINGS AND ANALYSIS

1 HEARD ABOUT ANAND RATHI SECURITIES LTD

Responses in favor of Yes were 24 [34%] and the respondents who hadn’t
heard of it were 46 [66%] as inferred from the survey.

34%
Yes
No
66%

2. AWARENESS WITH THE SERVICES OF THE COMPANY

Awareness in respect to the services of the company from the responses

who know the name of the company were 10 and who didn’t knew of the
services of the company were 14 out of the total 24 respondents.

42% Yes
58% No
3. EVER DEALT WITH ANAND RATHI

From the 10 responses that are aware with the services of the company, 3
have dealt with the company and rest 7 hadn’t but keen to deal with it.

30%
Yes
No
70%

4 TYPE OF FINANCIAL SERVICES YOU PREFERRED MOST?

Following is the distribution of the services respondents preferred most:

Equity & Derivatives [28], Mutual Funds [10], Depository Services [5],
Commodities [4], Insurance [7] and IPO [6]

Equity &
Derivatives
10% Mutual Funds
12%
Depository
7% 46% Services
Commodities
8%
17% Insurance

IPOs
5 LIKE TO GET ASSOCIATED WITH FINANCIAL SERVICES:

Yes were 33 [47%]

No were 37 [53%] out of the total 70 responses surveyed.

47% Yes
53% No

6 LIKE TO BE INFORMED WITH THE SERVICES OF ANAND RATHI

SECURITIES LTD. EXTENSIVELY?

Yes were 45 [75%]

No were 15 [25%] out of the total 70 responses that were surveyed.

25%
Yes
No
75%
Q.7 OPENED DEMAT ACCOUNTS & DEALING WITH MARKET SECURITIES?

a) Yes 59% [41]

b) No 41% [29] out of the total 70 responses surveyed.

41% Yes
59% No

Q.8 WISH TO OPEN DE-MAT ACCOUNTS WITH ANAND RATHI SECURITIES

Near about 7 positive agreed and wished to open de-mat accounts with
Anand Rathi Securities which takes care of your all-financial services to
the maximum satisfaction. Rest said ‘No’.

10%

Yes
No

90%
Q.9 PRIVATE PLAYERS IN FINANCE SECTORS HAVE GIVEN A
SIGNIFICANT CONTRIBUTION

94% of the respondents believed that private players like MNCs, FIIs etc
in finance sectors have given a significant contribution boom to the entire
sector by considerable margin over the last decade

6%

Yes
No

94%

Q.10 PREFERRED OPPORTUNITY BESIDES EQUITY MARKET

Following is the distribution show the preferable investment opportunity of

respondents besides Equity Market: In Mutual Fund [27], In Insurance
[17], In Bank (FD/SB/CA) [16] and In PPF/NSC/RDs [10]

In Mutual Fund
14%
39% In Insurance

23% In Bank
(FD/SB/CA)
In PPF/NSC/RDs
24%
5. SWOT ANALYSIS
 5.1 STRENGTHS

1. The Company has a good reputation with the bulk of financial services
under its arm to offer to the customers at large.

2. The firm offers to its clients the entire spectrum of financial services
ranging from brokerage services in equities and commodities, distribution of
mutual funds, IPOs and insurance products, real estate, investment banking,
merger and acquisitions, corporate finance and corporate advisory.

3. The management of the company is consisting of highly trained and

skilled professionals

5.2 WEAKNESSES

1. Since the company is reaping the benefits of its high level

performance still due to the low network there is a low customer base being
foreseen as compare to other competing companies in Indian stock and
security market.
5.3 OPPORTUNITIES

Immense opportunities in Indian Stock market since very few investors

have turned up as compared to the past years.

Still few competitors fighting for the vast securities market.

Increasing knowledge of DEMAT inspiring hesitant investors to deal with

Indian stock market without any issue of being loss of their money.

5.4 THREAT

1. Since there is a wide speculation involved in securities and stock

market, people prefer to invest in mutual fund, insurance and in banks for
their safety of money.

2. Competitors are rising and making their tremendously and many other
FIIs and MNCs are planning to come in to field of securities and
investment since rising finance sector is attracting them a lot.
6. CONCLUSION

At the conclusion of the summer training project in ANAND RATHI Securities

Ltd., I would like to conclude my opinion that there is a vast untapped potential
for a emerging and rising company like ANAND RATHI to grow in business of
securities with other supporting financial services being provided by the
company.

Since a highly enriched corporate environment is being provided in the company

I gained a tremendous knowledge and experience in respect to learning the
concept of Dematerlisation and its significance to the shareholders and every
new prospects applying for the existing shares and/or any new public offer (NPO)
without any hesitation and with all legal procedures so that the amount invested
could be remain secure and safe legally.

Thereby I came to realize the growth of the financial sector as it is reaping

success since the major rising sector being notified as per my knowledge is
finance since company are establishing their business entities in securities,
mutual fund, insurance and many others.

The experience of summer training was indeed a worth in utilizing my

professional approaches under the prestigious like company ANAND RATHI
Securities Ltd.
 7. RECOMMENDATIONS & SUGGESTION

1. This is recommended that there should be an aggressive

promotional measures need to be adopted for capturing the market nation
wide.

2. Further, it is suggested that knowledge base campaign be

organized near various corporate offices so that young professionals may be
educated the benefit of investing via ANAND RATHI Securities and the future
benefits which may be conducive for strengthen their financial position.

3. The Company should locate more offices in the time to come so

that the customers living at different areas and not reachable to the main
areas would be able to access through sub offices or centers.

4. Since investors are sometimes find them selves in the position to

Demat their account, ANAND RATHI should pave measures for such
investors to ease them in dealing and opening DEMAT account at their
comfort charging reasonable brokerage and commission.
8. QUESTIONNAIRE

Name: - …………………………………………………

Location: - ………………………………………………………

Contact No.: ……………………………………

Q.1 Do you know about ANAND RATHI SECURITIES LTD?

a) Yes

b) No

Q.2 If yes, are you aware with the services of it?

a) Yes 

b) No 

Q.3 If yes, have you ever dealt with it?

a) Yes 

b) No 

Q.4 What type of financial services you preferred most?

a) Equity & Derivatives

b) Mutual Funds

c) Depository Services

d) Commodities

e) Insurance

f) IPOs

Q.5 If No, Would you to get associated with it?

a) Yes

b) No
Q.6 Would you like to be informed with the services of ANAND RATHI
SECURITIES LTD. extensively?

a) Yes 

b) No 

Q.7 Have you opened your De-Mat account in dealing with market securities?

c) Yes 

d) No 

Q.8 Do you wish to open De-Mat accounts with ANAND RATHI Securities which
takes care of your all-financial services to the maximum satisfaction?

a) Yes 

b) No 

Q.9 Do you agree that private players in finance sectors have given a significant
boom to the entire sector by considerable margin over the last decade?

a) Yes 

b) No 

Q.10 Where you preferably invest your money besides Equity Market

a) In Mutual Fund 

b) In Insurance 

c) In Bank (FD/SB/CA) 

d) In PPF/NSC/RDs 

Suggestions for ANAND RATHI Securities Ltd.: -

1.………………………………………………………………………………

2.…………………………………………………………………………….

3……………………………………………………………………………….
4. ……………………………………………………………………………
9. BIBLIOGRAPHY

Following sources have been referred for the completion of the Summer Training
Project Report successfully.

1. BOOKS & MAGZINES: -

a) Business world
b) Business today
c) Journal of finance
d) Business today
e) Dalal street
f) Money today

2. NEWSPAPER: -
a) Economic times
b) Business line
c) Business standard

3. WEBSITES: -

a) www.anandrathi.com
b) www.sebi.gov.in
c) www.thehindubusinessonline.com
d) www.capitalmarket.com
e) www.theeconomicstimes.com