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INDUSTRY PROFILE
CAPITAL MARKET
Capital Markets play a major role in a country by providing finance to the companies for
operating their businesses. These markets also provide the liquidity option to the shareholders
to pay back the shares to take money out of the market. Any investor is willing to invest in
the stock, only if they have the option to liquidate and this is only provided through capital
market.
Capital Market is the market for securities, where companies and governments can
raise long-term funds. It provides financing to meet the denomination, liquidity, maturity, risk
(with respect to credit, interest rate, and market), and other characteristics desired by those
who have a surplus of funds and those who have a deficit of funds.
History of the Indian Brokerage Market
The Indian broking industry is one of the oldest trading industries that had been
around even before the establishment of the BSE in 1875. Despite passing through a number
of changes in the post liberalization period, the industry has found its way towards
sustainable growth. The evolution of the brokerage market is explained in three phases:
pre1990, 1990-2000, post 2000.
The equity brokerage industry in India is one of the oldest in the Asia region. India had an
active stock market for about 150 years that played a significant role in developing risk
markets as also promoting enterprise and supporting the growth of industry. Historical
records show that as early as 1864, there were about 1,000 brokers with the stock markets
functioning from three places in Mumbai; between 9 am to 7 pm at the junction of Meadows
Street and Rampart Row, from day break till 9 am and from 7 pm to early hours of next
morning at Bazargate. A Report on stock markets around that time indicates that an ordinary
broker in 1864 earned about Rs 200 per day, a huge sum in those days. The boom period
came to an abrupt end in 1865.
Indian brokerage industry dates back to 1850s, but started growing strongly in the
1990safter the creation of the regulatory body, the Securities Exchange Board of India (SEBI)
and incorporation of NSE. But competition is intense as there are far too many brokers -
almost double the number of Brokers in the US - competing for a much smaller market. The
brokerage market is largely retail and the retail investors are spread across the country (with
majority from Mumbai). Online trading channels can play an important part in catering to the
regional spread and has indeed shown good growth
In 1602, the Dutch East India Company became the first publicly traded company in
which shareholders could own a portion of the business. The stocks improved the size of
companies and became the standard bearer for the modern financial system.
During the 1900s, stock brokerage firms began to move in a direction of market makers.
They adopted the policy of quoting both the buying and selling price of a security. This
allows a firm to make a profit from establishing the immediate sale and purchase price to an
investor. The conflict with brokerage firms setting prices creates the concern that insider
trading can result from the sharing of information. Regulators have enforced a system called
Chinese Walls to prevent communication between different departments within the brokerage
company. This has resulted in increased profits and greater interconnection within the
financial industry.
India in Global Markets
The stature and significance of India is growing in the world capital markets. India is not only
attracting greater interest from world markets, but is also assuming increasing importance in
global finance.
India is a major recipient of foreign institutional flows amongst the emerging
markets. Since the opening up of domestic stock, markets to foreign investors,
cumulative net FII Investments reached Rs 517 Bn by 2008 end.
India is major destination of private equity flows into the emerging markets
India was host to the annual meetings/conference of the World Federation of
Exchanges (2005) and International Organization of Securities Commission
(IOSCO) (2007)
India emerged a trillion dollar market capitalization market in 2007, and was
among the top 10 stock exchanges in the world in terms of market capitalization
India is amongst the top fifteen stock exchanges in the world in respect of equity
turnover
India emerged as a leading player in commodities futures market
India is amongst the top five in the number of transactions
India is among the top five in respect of volume traded in Stock Index Futures and
Stock Futures
India is one of the few markets with extensive dematerialization of shares
India’s T+2 securities settlement cycle is at par with the global standards
Indian stock markets have the largest number of listings, with trading taking place
in about 2,500-3,000 stocks.
India’s most popular stock index (Sensex) is constructed on the basis of full float
methodology, one of the firsts in the Asian region and a global standard.
Indian market indices such as Sensex and CNX Nifty are listed in foreign
exchanges for trading as ETFs.
Recent Trends
Global risk aversion is unwinding and Confidence levels returning, being reflected
in performance of the indices.
Liquidity and credit flows improving
Political stability and India re-rating
FII and Domestic Flows resuming, USD 7bn FII inflow in April & May
Secondary volumes showing early signs of uptrend, average daily volumes of Rs
800 bn vs. 620 bn in previous year
COMPANY PROFILE
Background and inception of the company
TRUSTLINE SECURITIES LTD was founded in the year 1995 as a K&A SECURITIES
PVT LTD by Dr. Mukesh Kansal at Noida in Uttar Pradesh and it was registered under the
company act of 1956. Trustline securities are professionally managed group headed by the
directors, having vast experience in the stock market. Beside the core promoters, the group is
having its full fledge teams headed by young and dynamic professionals like charted
accountants, company secretaries, MBAs, IT professionals etc to handle the various divisions
of the company.
Trustline securities is a Member of the National Stock Exchange (NSE), Trustline
security is a Member of the Multi Commodity Exchange (MCX), National Commodity and
Derivative Exchange (NCDEX), National Multi Commodity Exchange of India Limited
(NMCEIL), to trade in commodities market and it as also started currency trading after
becoming the Member of National Stock Exchange (NSC), (MCX-SX). Trustline has entered
into Depository services in the business participation with Central Securities Depository
Limited (CSDL), National Securities Depository Limited (NSDL) and it has also started the
Derivatives trading after becoming a Trading cum clearing Member of NSE in its Future and
Option segment.
Trustline have a worldwide vision and it along with its associates is currently
providing state of the art stock broking services through all the major stock exchanges, they
provide all the services are available under the one roof and they are fully equipped with all
modern infrastructures to carry on its activities and all branches are well connected through
the VPN, Lease line, ISDN, Internet and other network facilities. All of its operations are
computerised through the advanced technologies. All branches are ultra modern, hi-tech, well
furnished and fully computerized, driven by the well-qualified professionals. With its ability
to evolve with changing environment the company has been able to put itself to the forefront
of stock broking activities. With its network spreading across various parts of India, it has
made a distinct mark among the stock broking the stock broking houses and high net worth
corporate as well as individuals.
Nature of the business carried
The nature of the business carried by TRUSTLINE Securities ltd is related with the
various things like Portfolio Management Services, Mobilization of Mutual Funds, and
Commodities Broking, Marginal Funding as well as Equities Research and online media.
TRUSTLINE Securities Ltd plays a key role in India Capital Market by giving different
financial services to the investors. Securities broking is a core part of the Trustline Financial
Services Group offerings. Trustline offers broking and distribution of a range of financial
products and services.
Vision
“To provide world class investment solutions to the class of investors who believe in 'India
as a story whose time has come and empower them through technology'. To provide the most
Trustline securities ltd
Equity Trading
Commodities Trading
Currency Trading
Depository Services
Derivative tradingReal Estate Services
Insurance Advisory Services
Mutual Fund Trading
IPO Services
useful and ethical Investment Solutions - guided by values driven approach to growth, client
service and employee development.”
Mission
“To empower individual investors to take control of their financial lives, free from the high
costs and conflicts of traditional stock broking firms. And to guide all our investors to enlarge
their investments by systematic deployment of funds”
Objective
“We endeavor to be amongst the top ranking highly networked & fully integrated Broking
and Financial services house in the country”
Services offered by TRUSTLINE Securities Ltd
Equity
Derivatives
Insurance
Commodities
Mutual Funds
Currency Trading
IPO Services
Depository Services
Investment Advisory Services
AREA OF THE OPERATION
TRUSTLINE Securities Ltd was incorporated in 1995 at Noida in Uttar Pradesh.
Initially in 1995 Trustline became the member of NSE equity segment and also gained
membership in DSE. And in 2000 TRUSTLINE Securities Ltd became the member of future
and option segment in NSE and also became the member of NCDEX in 2004. TRUSTLINE
Securities Ltd became the member in BSE for feature and option segment in the year 2006.
And in 2007 it started online trading and became the member of NMCEIL. Membership in
currency trading was gained in the year 2008 and also TRUSTLINE Securities Ltd became
the participant of NSDL in year 2009. And in 2010 Trustline Ltd became the member of
MCX-SX.
TRUSTLINE Securities Ltd is performing its operation as a one whole organisation in
India. Total branches all over India is 510 branches which includes 80 Own Branches,430
Business Associates, 3500 Human work force, 1200 Trading Terminals, 80,000 Demat
Accounts, and70,000 Clients, some of the Prominent Institutional Clients are.
FIIs clients are Goldmansachs, Credit - Suisse, Indea Absolute Return Fund,
and KARMA Capital.
DIIs clients are Unit Trust of India (UTI), Reliance Mutual Fund, Punjab
National Bank (PNB), TAURUS Mutual Fund, Canara Robeco Asset
Management Company, National Insurance Company and CANBANK
Investment Management Services.
Banks are PNB, PNB GIITS, OBC, Central Bank, Canara Bank, Dena Bank,
Bank ofIndia.
The primary focus of TRUSTLINE Securities Ltd. is to cater to services in Capital
Market Operations to Institutional Investors. The Company is a member of the National
Stock Exchange (NSE) and OTCEI. Trustline operates from 80 own branches with 430
business associates about 510 locations across India and has a presence in 510* cities and
towns controlling 1200* business locations all over India.
Branches of TRUSTLINE Securities Ltd is as given below
OWNERSHIP PATTERN
The ownership pattern means the management level people who hold and lead the business
activities like Board of Director, Company Secretary Etc.
TRUST LINE is one of the fast growing financial service providers, which act as an
intermediate between the clients and the company and selling of securities. Trustline is now
been converted to Ltd company from Pvt Ltd. Dr. Mukesh Kansal is the chairman of the
company at present and owns all shares of the company. By the end of this year they will
issue IPO.
Trust line Securities Pvt. Ltd: Promoters, Management Team and Business partner
Promoters
Dr. Mukesh Kansal Chairman & Managing Director
Management Team
Mrs. Sarika Kansal Director
Mr. Vinay Gupta Director
Mr. Siddhartha Chatterjee Country Head
Mr. Sanjay Verma Strategy and Operations
Mr. Rajiv Kapoor Head Commodities
Mr. Amit Goel Head Compliance
Mr. Mayank Goel Head Finance
Our Business Partner
Mr. P N Vijay
Competitors Information
There are several financial security companies playing their roles in Indian equity market.
TRUST LINE is one of the fast growing financial service providers, which act as an
intermediate between the clients and the company and selling of securities. Since the growth
of stock trading is tremendously increasing in recent years, so most of the financial
institutions are been established in India. Due to this growth most of the investment centers
faces competition from may investment firms both domestically and internationally. And here
are some of the companies TRUSTLINE face competitions.
India bulls financial services ltd.
Blue diamond securities and finance ltd.
Fortune financial services India ltd
Peerless financial services ltd
Bonanza financial services ltd
India info line ltd
JM financial.
Infrastructural Facilities
Trustline Securities Pvt. Ltd has good infrastructure facilities towards the technical and
fundamental activities to customer and employees. The company has offices located at prime
location in Mumbai, New Delhi, Kolkata, Bangalore and Chennai. The offices are centrally
located to cater to the requirements of institutional and corporate clients and retail clients, and
for ease of operation due to proximity to stock exchange and banks. Today they are located in
more than 1200 branches all over India.
There are air- conditioners, proper lighting and ventilation and Tele communication
facilities.
Good network: TRUSTLINE Securities Ltd is using the servers manufactured by
IBM its own server to store the datas related to their clients and also to have a better
network facility.
Proper accommodation for its employees: Employees has been provided with better
seating facility for their work, along with the better desktop to trade.
Client support through remote control: Clients are intimated immediately about
any negative or positive movements in their trade, they are intimated through instant
messages and by calling the clients.
Excellent back office software: Back office software is the most required for a
broking house to provide service efficiently, TRUSTLINE Securities Ltd in well
equipped by best back office software to comfort their employees and clients.
In - House Call Centre: Quick & Efficient Client Support Each and every branch of
TRUSTLINE Securities Ltd is having call centre with well trained and efficient
employees to support client.
Research centres: There are separate research team forms each city locations across
India, to facilitate the customers.
Employees are provided with cafeteria to refresh themselves and the organization
gives utmost importance to o\preserve the interests of their employees. There are
proper ventilation, air conditioners, and telecommunication facilities.
Televisions are screened all around the office to facilitate their customers and
employees to know about the financial situation of different stocks and country.
Seating facilities have been done for their clients, and they are also provided with
magazines, and newspapers.
WORK FLOW MODEL
Search for new client
Gather client information
Approach to the client
If the client is interested to open a Demat Account and trade
If the client is not interested to open a Demat Account and trade
Collect the client details and required documents
Stop here and return to
Sending the details to the head office for registration
Registration process
Call to the client from Head office
Client will call to the local branch
The equity trading procedure at Trustline starts from the process of searching of new
clients by employing the agents appointed by HR manager, and also by taking the references
from the existing clients including other data base like online. After collecting the
information regarding the prospective clients like Business clients, retired persons and other
personals. The step after searching new clients is to collect the information of clients related
to their economic status and capacity of the client to invest. The further step after collect
client based information is to contact the client either through telephone conversation or in
person to convince the client to invest in particular area. Information regarding the
investment procedure is explained before entering the contract. If client is not interested,
agent has to return back, or if client is interested the next procedure is to collect all required
documents like PAN card, Address proof, two passport size photos, and blank cheque from
the client. After collecting the required documents the next step is to send all the documents
of the client to the head office for verification and registration purpose which will take a time
period of seven days. If the confirmation received from head office is negative it has to be
reconfirmed from the client, if the confirmation is positive client will be informed regarding
this and then client is intimated to start trading if he has online account or if client has offline
account the trading is done by the broker of the company, by offering various incidental
services at the concerned branch. Clients may approach local branch in personal or call the
branch to trade.
FUTURE GROWTH AND PROSPECTS
The company is exploring all steps to improve business through extensive efforts.
Since growth of capital market in general has opened up increased opportunities. Trustline is
planning to expand its distribution network across India. And Trustline is planning on to
focus insurance advisory services and currency trading. Trustline is planning to build strong
foundation for Trustline academy and Trustline real estate service. Trustline is aiming to
focus on retail and institutional investors by providing more services and building strong
research team in technical and fundamental analysis. Trustline is focusing on satisfying client
Start trading
needs by providing innovative products which satisfies specific needs of customers. Trustline
is dedicated on providing best services for their customers by using best available technology.
MCKINSEY’S 7’S MODEL
INTRODUCTION
A framework for Strategic Management, which has received substantial attention of
management consultants and strategists, is McKinsey 7-S framework developed in the late
70’s by McKinsey Company, a reputed Management Consultancy firm in US. The 7-S
frameworks first appeared in “The Art of Japanese management” by Richard Pascale and
Anthony Athos in1981. It was born at a meeting of the four in 1978. The framework rests on
the proposition that effective organizational changes is best understood in terms of the
multipart relationship between strategy, structure, systems, style, skills, staff, and shared
values.
The proposition of the 7-S model suggests that there are multiple factors which
influence an organization’s ability to change and its proper mode of change. Since the
variables are interconnected, significant progress cannot be made in one area unless
corresponding progress is made in other areas too. The relevance of the model to strategic
management is based on the 7-S which stands for policy areas vital to long terms
organizational success.
The McKinsey 7S model involves seven interdependent factors which are categorized
as either "hard" or "soft" elements. "Hard" elements are easier to define or identify and
management can directly influence them: These are strategy statements; organization charts
and reporting lines; and formal processes and IT systems. ."Soft" elements, on the other hand,
can be more difficult to describe, and are less tangible and more influenced by culture.
However, these soft elements are as important as the hard elements if the organization is
going to be successful.
Hard Elements Soft Elements
Strategy
Structure
Systems
Shared
Values
Skills
Style
Staff
Strategy
Strategy sets out vision, mission, objectives, major action plans and policies of the
entire enterprises. These set out the picture of the strategy, the Strategic Business Unit (SBU)
strategy and the functional strategies. This set out a broad frame work to guide managers at
all levels in all functions in their specific short term objectives. The 7-S framework
emphasizes hat in practice, the development of strategies poses less of a problem than their
execution.
There are different types of strategy followed by Trustline and some of them are explained
below:-
Cost strategy
The strategy of Trustline Securities Ltd is to provide best possible services to their
customers at lower cost. Trustline provided brokerage charges for their clients’ minimum of
0.03% for intraday and 0.05% for delivery. So this cost strategy has made Trustline more
effective which helps them to attract more number of customers and to achieve cost
leadership.
Trustline Securities Ltd is charging lower fees for opening accounts for trading when
compared with other brokerage houses. Trustline charges Rs 300 for creating offline account
and Rs 400 for online account, so this has empowered Trustline efficiency and thus achieve
its goal more effectively.
Innovation Strategy
It is strategy where the companies’ competitive advantage lies with its new findings
and methods. The company outperforms its competitors by offering products and service by
using its innovation and new creation.
Trustline main focus is on concentrating on customer needs, so Trustline is
improving its product menu, by increasing number of different products. Trustline is
concentring on product that satisfies specific need of customers. And as so Trustline has
bought the scheme of making demat accounts at lower costs and offering special discounts to
create demat accounts during special occasions.
Trustline Securities Ltd has got insurance broking, and other insurance related
services which are effectively satisfying specific needs of customers.
Focus Strategy
Trustline securities Ltd mainly believes in its performance and hence it concentrates
more in making its performance more effective and thus achieves its goal more efficiently.
They undergo market research process before they start up a new branch and also in the
existing branch areas, in order to avoid any future losses and also analyse what actually the
customers prefer in that particular area and thus fill in those loop holes which the other
brokers have.
Trustline focus on customers like business professionals, software professionals and
students concentrates on satisfying their needs. Trustline securities have adopted many
promotional strategies to attract customers in order to gain market leadership.
Structure
In the context of 7-S framework structure is an addition to the organizational tool kit.
It is comparable with the super-structure of an organization, which indicates to why extent
the activities are specialized and the ways in which the organizational tasks are integrated and
coordinated.
Organizational Structure of Trustline Securities Ltd is as follow
Chairman and Managing Director
Executive Director
Non Executive Director
Company Secretary
Chief Operating Officer
Chie Financial Officer
Chief Compliance Officer
Chief Technology
Officer
Regional Manager
Branch Manager
AutomationFinance Accounts
DEMATAccount Opening
MarketingTrade CRM
Zonal Manager
Regional Managers’ for compliance, Financial,
Operating, Technology, Marketing, Human resource and R&D
Executives Front Office Back Office
System
A system means all the procedures, formal and informal, that make the organization go
day-by-day, year-by-year. The organization is an open system organization because they
interact with environment. The developments in Information System are working wonders in
all fields of activity. It becomes possible to send and receive information almost
instantaneously. Rapid strides have been made by Trustline Securities Pvt. Ltd in the field of
computerization Mini-Computers, Online Computerization of product dispatch and finance
and give product details to customers.
Accounting System:
Financial statements are prepared under the cost convention on an accrual basis and
comply with the accounting standards refer to section 211(3c) of the companies Act 1956.
Organized set of manual and computerized accounting methods, procedures, and controls
established to gather, record, classify, analyse, summarize, interpret, and present accurate and
timely financial data for management decisions.
Broadridge is the software application used by Trustline securities Ltd to maintain
financial data’s. Broadridge's Securities Industry Software’s (SIS) Brokerage Accounting
System (BAS) is a real-time, integrated processing system that automates brokerage
accounting and back office functions.
Following are the major components of the BAS System:
Account Master
BO
Manager Manager
FO
Manager
Dispatch
BOFOBOFO
FO BO
Used to establish and maintain accounts within the SIS system. Each account type has
a specific account range associated with it. Many different types of accounts can be set up,
such as customer, broker/dealer, clearing, inventory, vendor, and transfer agent and
reconciliation accounts.
ACH
The ACH (Automated Clearing House) module allows Trustline customers to
electronically transfer funds to their checking or savings accounts.
Tax Reporting
Broadridge/SIS systems provide extensive tax reporting capabilities, at the state,
federal and global levels. Reporting choices are widely parameterized, and can be customized
to meet the needs of the firm, clients, and products.
System Control
Provides various security-related, parameter-driven functions which allow Trustline
to customize the system to suit operation and management needs.
Staff
The term “staff” carries a specific meaning in the 7-S framework. It refers to the way
organizations induct young recruits into the mainstream of activities and the manner in which
they manage their product as the new entrants develop into managers.
TRUSTLINE Securities Ltd follows centralised recruitment process, which is most
beneficial to the organisation. It reduces the average cost of recruitment per candidate will be
relatively less due to economies of scale. This method has gained TRUSTLINE Securities
Ltd to have skilled employees with good knowledge and talent. It helps interchange ability of
staff among various units/zones. It enables the organisation to have centralised selection
procedure, promotional and transfer procedure, etc. It ensures the most effective and suitable
placement of candidates.
At present Trustline comprises of 3000 employees around India. At present Trustline
Malleshwaram head office there are 42 skilled workers and 6 unskilled workers, along with 7
research analysts, 1 branch manager and 2 Assistant managers.
Skill
‘Skills’ refers to the ‘distinctive competence’ which reflects the dominant skills of an
organization, and may consist of competence in terms of engineering skills, or competence in
the area of new product development, customer service, quality commitment, market power,
and so on. Trust line Securities Pvt. Ltd has personnel with a variety of skill like technical
and non technical for different field.
The company Stock Broker is trained and provided with skills to deal with customers
personally to know their needs and wants. Employees of Trust line are evaluated based on
passion, ambition, innovation, diligence, team work. In order to assess the same, company
uses a combination of interviews and psychometric assessment as part of section process.
Recruitment is not based solely on academic achievements. Company is seeking to
appoint candidates who satisfy a broad range of criteria in terms of their ability to make a
positive and on-going contribution to the organisation.
The Trust line Securities Pvt. Ltd has personnel with varied skills. The sales
department needs personnel with technical skill. The marketing department needs sale skill,
communication skill, convincing capacity. The Agency Manager and Sales Manager should
have the managerial skill. They should have the ability to take right decisions. They should
manage the personnel and make them to carry out their responsibility.
Style
Style is another variable, which may determine the effectiveness of organizational
change effort. The style of an organization becomes evident through the patterns of action of
the top management team over a period of time, the emphasis laid on aspects of business,
reporting relationships and aspects of organizational culture.
The Trustline Securities Pvt. Ltd is basically a participating and democratic type of
leadership style. Before taking any decision a meeting is conducted and the final decision is
taken with the consent of all. Every employee gets chance to file his/her opinion. Every
employee can participate in decision making of the organization. The final decision is taken
with consent of all. It does not take any decision unilaterally.
Since every employee’s ideas and opinions are taken by the managers before arriving at
a final decision effective decisions can be taken. Managers are evaluated on the basis of
quality of their decision making.
Leadership style of managers in Trustline Securities Limited is to treat customers with
dignity, respect and care and consistent efforts to improve our skill and services to serve the
customers better. Managers of Trustline mainly focus on maintain discipline in the company
and give orders and instructions to their subordinate. Managers maintain unity and
communication in organization and also quickly respond to customer’s needs and their query.
Shared Values
Shared values in the Mc Kinsey’s model refer to the set of values and aspirations that
go beyond the formal statement of corporate objectives. In other words, these are
fundamental idea around which a business is built and which constitute its main values.
Shared values are also known as super ordinate goals.
All the members of the organization share the common fundamental idea and the
guiding principles around which the business is built. The fundamental idea is to make profit
by achieving excellence in the filled of security trading. These values and common goals
keep the employs working towards a common destination as a coherent team in satisfying the
customer.
Value system of Trustline is to conduct the business fairly, with honesty and
transparency. The most important in value system of Trustline is they show respect,
compassion and humanity towards colleagues and customers around the work and always
work for the communities they serve. All employees work cohesively with their colleagues
across the group and with the customers and building a strong relationship based on
tolerance, understanding and mutual co-operation. Trustline provides valuable guidelines to
their customers according to their specific needs.
SWOT ANALYSIS
SWOT analysis refers to the analysing the strengths, weakness, opportunities and
threats of the organization (company). SWOT is a compound of two factors namely external
factors and internal factors. Strength and weakness are the internal factors. Strengths and
weakness are the internal factor which can be controlled by the technical and personnel
departments. Opportunity and threats are the external factors which cannot be controlled by
the company. External factors may include political factors, socio-cultural factors. Technical
factors, Demography, Environmental factors etc.
STRENGTHS:
Company has good range of product and service caters to various financial
segments.
Good research team to provide information to clients
Latest technology is used to maintain quality to the fullest like Trustline uses
services from Broadridge to maintain accounting system, and also uses trading
software application from Omen sis which allows customers themselves to
recover their password.
Trustline securities ltd and K&A securities.com have developed into brands.
Dedicated and expertise staff.
Company has good management system, by retaining management
professionals having many years of experience in the financial sector.
WEAKNESS:
Lack of a banking arm to complete the bank-broker-depository chain.
Insignificant presence in institutional segment.
To the present market, the technology being used is not up to the standard.
There are strict and stringent SEBI procedures.
OPPORTUNITIES:
Changing demographics with higher disposable income and increasingly complex
financial instruments will drive demand for investment advisory services.
Rapid penetration of Internet and computers means that technology enabled financial
services will gain market share.
Target the rural and sub urban areas.
Company is planning to enter into Foreign Trade Markets
Changing mindset of customers towards stock market trading.
Phenomenal growth in secondary market volumes.
Technological improvement are been contributing to attract more personals towards
trading. (e.g. Mobile Trading)
THREATS:
Volatile movement in indices and events.
Increasing competition with respect to decreasing brokerage charges, (Ex: Reliance
capital entered with least brokerage in the industry)
Company survival mainly depends on client’s atmosphere and market trend.
Global competitors entering Indian markets.