INTRODUCTION : This Internship Project Report will help the reader to gain the insights of the practical knowledge and practices carried out by the Organization with special reference to Angel Broking Ltd. In this Internship Report, an attempt is made to understand the working of an organization as a whole with the co-ordination of all the functional departments. The main objective of this Internship Project is to study the functional overview, Organizational Structure, Marketing strategies, core competence of an Organization and to perform SWOT analysis of the company under study.
This report is made based on the information provided by the official staff; however the study could not gather information from the consumers, other dealers & other stakeholders. The study was carried out within a very short span of time i. e. 4 Weeks. SCOPE OF THE STUDY : The main motive to undertake this Internship study was the growing Capital Market potential and lots of opportunities lying in the Market, as there is a lot of awareness being spread in the minds of a general Indian citizen.
Because of the opportunities available, many more Stock Brokers are coming into picture for last 3 to 4 years.
Organizational Functioning is an important factor for any organization to achieve the desired goals and objectives. This requires co-ordination at all levels to ensure smooth functioning.
OBJECTIVES OF THE STUDY : To understand the organization structure (Hierarchy) of the company To understand the working procedure of different departments To understand the various responsibilities given in each department To enable myself to gain an insight into corporate world BENEFITS OF THE STUDY : By doing this internship, it proved to be the good opportunity to understand about the capital markets of India. The intensive training to understand the Equity Markets was given by their Advisors, Managerial staff. This Internship Program allowed to interact with some Industry people also, this proved very helpful and informative to me.
SCHEME OF CHAPTERS : This table shows the list and guideline of the chapters consisting in this Project Report, which will help in going through the report.
The history of Indian capital market back to the 18th century when east India company securities were traded in the country. Until the end of the 19th century, Securities trading were unorganized and the main trading centers were Bombay and Calcutta. Of them too Bombay was the chief trading center and the bank shares were the major trading stocks. Trading was at that time limited to a dozen brokers their trading place was under a banyan tree in front of the Town hall Bombay. These stock brokers organized an informal association in 1875native shares and stock broker? association Bombay. The stock exchanges in Calcutta and Ahmedabad also have trading center came up later. The Bombay stock exchange was recognized in May 1927 under the Bombay securities contract control act 1925. The capital market was not well organized and develops during the British rule because the British government was not interested in the economic growth of the country. As a result many foreign companies depended on the London capital market for funds rather than on the Indian Capital Market. In the post-independence period also the size of the capital market remained small.
During the first and the second five year plan the government emphasis was on the development of the agricultural sector and public sector under takings. In the 1950s speculation became rampant; the stock market came to the known as “satta bazaar”. Despite speculation non-payment or defaults were not very frequent. The government enacted the securities contracts act in 1956 to regulate stock markets. The company? s act 1956 was also enacted. In 1960, Badla came in to existence. Badla provided a mechanism for carrying forward positions as well as for borrowing funds.
Financial institutions such as LIC and GIC helped to revive the Sentiment by emerging as the most important group investors. The first Mutual Funds of India, The Unit Trust of India came into existence in 1964. In the 1970s, Badla Trading was resumed under the disguised form of “Hand delivery contracts” this revived the market. July 6th, 1974 when the Government promulgated the dividend restriction ordinance, restricting the payment of dividend by companies to 12 % of the face value or 1/3 of the profits of the companies that can be distributed as computed under section 369 of the companies act whichever was lower.
This led to a slump in market Capitalization at the BSE by about 20 % over night and the stock market did not open for nearly a fortnight. A little known entrepreneur, Dhirubhai Ambani, tapped the Capital Market. The scrip, Reliance Textiles is Still a Hot favorite trading at all stock exchanges. The 1980s witnessed an explosive growth of the securities market in India. The government? s liberalization process, participation by small investors, speculation, default, Ban of Badla, and resumption of Badla continued. Convertible debentures emerged as a popular instrument in primary market.
The 1990s will go down as the most important decade in the history of capital market of India liberalization and globalization were the new terms coined and marketed during this decade. Major capital market scams took place in the 1990s. The securities scam of March 1992 involving Brokers as well as Bankers was one of the biggest scam in the history of capital market. In the subsequent years owing to free pricing, many unscrupulous promoters, who raised money from capital market, proved to be fly-by-night operators. The 1991-92 the Indian stock market witnessed a sea change in terms of technology.
Technology brought Radical changes in the trading mechanism. The Bombay stock exchange was subject to nationwide competition by two new stock exchange-National Stock Exchange set up in 1994 and over the counter Exchange of India set up in 1992. The National securities clearing corporation and National securities depository limited were set up in April 1995 and November 1996 respectively for improved clearing and settlement and dematerialized trading. Moreover, rolling settlement was introduced in January 1998 for all companies. The Indian capital market entered the 21st century with the Ketan Parekh scam.
As a result of the scam Badla discontinued from July 2001. Trading of futures commenced from June 2000 and Internet trading was permitted in February 2000. It has been a long journey for the Indian capital market. Now the capital market is organized, fairly integrate, mature more global and modernized. The primary function of the system is to provide a link between savings and investment for the creation of new wealth and to permit portfolio adjustment in the composition of the existing wealth. The progress of savings, finance and investment involves financial institutions, markets instruments, and services.
Above all, supervision control and regulation are equally significant. Thus financial management is in integer part of the financial system. On the basis of the empirical evidence we can defined inter relationship between varied segments of the economy are illustrated below: Fig. 2. 1. : Composition of Financial System ( Source : Article by D. Aruna Kumar “ An Overview of Indian Financial System” ) A financial system provides services that are essential in a modern world. The use of a stable, widely accepted medium of exchange reduces the costs of transaction.
It facilitates trade and, therefore specialization in production. Financial assets with attractive yield, liquidity and risk characteristics encourage saving in financial form. By evaluating alternative investments and monitoring the activities of borrowers, financial intermediaries increase the efficiency of resource use. Access to a variety of financial instruments enables an economic agent to pool, prize and exchange risk in the market. Stock exchange is a market in which securities are bought and sold and it is an essential component of a develop capital market.
The securities contracts (regulation) act , 1956, defines stock exchange as follows, “ it is an association, organization or body of individuals, weather incorporated or not , established for the purpose of assisting, regulating and controlling of business in buying, selling, and dealing in securities”. A stock exchange, thus, imparting marketability and liquidity to securities, encourage investments in securities and assist corporate growth stock exchange is regarded as “an essential concomitant of the capitalist system of economy. It is indispensable for the proper functioning of corporate enterprise.
It brings together large amounts of capital necessary for the economic progress of a country. It is the citadel of capital and the pivot of money market. It provides necessary mobility to capital and directs the flaw of capital into profitable and successful enterprises. It is the barometer of general economic progress in a country and exerts a powerful and significant influence as a depressant or stimulate of business activity. It may be defined as the place or market where securities of joint stock companies and of government or semi government bodies are dealt in.
STOCK EXCHANGES : India boasts of the oldest stock exchange in Asia — the Bombay Stock Exchange is 125 years old. There are 23 recognized exchanges spread across the country, but a process of consolidation is now under way. Many of the regional stock exchanges have started aligning themselves with one or both of the two large exchanges (the Bombay Stock Exchange and the National Stock Exchange) both of which have VSAT networks that give them a nationwide reach. The National Stock Exchange is an unlisted for-profit company set up by some of the leading financial institutions of India.
Most of the remaining stock exchanges are broker-owned (mutual) organizations, but the Bombay Stock Exchange is actively considering demutualization. The Securities and Exchange Board of India (SEBI), the apex regulator of the capital market has regulations that mandate a minimum number of outside directors on the governing board and provide greater autonomy to the professional executives in the day-to-day running of the exchange. Tab. 2. i. Recognized Stock Exchanges by SEBI as on 28th August, 2012 Name Ahmedabad Stock Exchange Ltd. Bangalore Stock Exchange Ltd.
Bhubaneswar Stock Exchange Ltd. Bombay Stock Exchange Ltd. Calcutta Stock Exchange Ltd. Cochin Stock Exchange Ltd. Coimbatore Stock Exchange Ltd. Delhi Stock Exchange Ltd. Gauhati Stock Exchange Ltd. Hyderabad Stock Exchange Ltd. Interconnected Stock Exchange of India Ltd. Jaipur Stock Exchange Ltd. Ludhiana Stock Exchange Ltd. Madhya Pradesh Stock Exchange Ltd. Madras Stock Exchange Ltd. Magadh Stock Exchange Ltd. MCX Stock Exchange Ltd National Stock Exchange of India Ltd OTC Exchange of India Pune Stock Exchange Ltd. U. P.
Stock Exchange Limited United Stock Exchange of India Limited The Vadodara Stock Exchange Ltd. ( Source : http://www. sebi. gov. in/investor/recog. html ) Trading and settlement : India? s stock exchanges are fully computerized order driven or order-cum-quote driven systems. The country has made rapid strides towards a dematerialized trading environment on the basis of a competing depository? s model. Investors have the choice of holding their stocks in physical or dematerialized form, but trading in the exchanges is in mandatory dematerialized mode in most important stocks.
As of October 2000, about 98per cent of the trading in the stock exchanges is in dematerialized mode. India has put in place a regulatory regime for internet trading of stocks. A large number of online brokers have started operations. More brokers are expected to follow when the exchanges put in place an ASP (Application Service Provider) model for online trading software. However, currently, the level of penetration of online trading is extremely small. The stock exchanges currently run two parallel settlement systems.
Practically all the trading takes place in the account period settlement system in which all trades during a weekly account period are netted off and the net obligations are settled five business days after the end of the period. The other unpopular system is that of rolling settlements where trades of each day are settled on a T+5 basis. SEBI is currently working on mandatorily shifting all stocks in a phased manner to the rolling settlement system. Further improvements in the settlement system to T+3 or beyond would have to wait for improvements in the payment system.
However, account period settlement does not give rise to significant systemic risks in India because of stringent end of day and intra-day margining systems. Put simply, the weekly settlement is regarded as akin to a one-week futures contract, and the systemic risk is taken care of by using futures style margining. The exchange imposes daily mark to market and initial margins on the brokers to eliminate settlement risk. Exchanges also have clearing houses to guarantee settlements on the exchange. As a result, there have been no settlement failures in the principal stock exchanges during the last five years.
Challenges of Indian Capital Market : The investing story in India has not been always that smooth. Pitfalls are sure to co-exist. The main hurdle on India’s growth now is its infrastructure. On the other hand, infrastructure is India’s biggest opportunity as well. The fiscal deficit of India also poses a big threat to the investment industry in India. For an emerging economy like India, it is recommended that an investor always balances the unique risks against the potential for high long-term growth. Accordingly the decision for investment should be made.
Foreign Direct Investments in India has been gearing up momentum every passing day. So, to view an economy which is entirely open to the global markets, the investment industry in India should be groomed in a manner that the maximum returns are achieved. It is advisable that the investment industry’s potential should neither be overestimated nor underestimated. We should know how to deal with the complexities of the investment industry and grow along with it. Decisions like whether you should buy or sell when trading in the share market is a difficult task to do.
It requires split-hair analysis of the market. To do so one also needs to have excellent understanding of the market. Equity analysis forms an integral part of the share trading experience. Equity analysis decides the stance one would take in the share trading industry. Finding out the highs and lows in the market and analyzing the equity is of utmost importance before making any sort of investment. Technical analysis, fundamental analysis and others form a part of the equity analysis.
Regulatory Environment Details : Legislation :
The four main legislations governing the securities market are: (a) The Securities Contracts (Regulation) Act, 1956, preventing transactions in securities by regulating the business of dealing insecurities (b) The Companies Act, 1956, which is a uniform law relating to companies throughout India (c) The SEBI Act, 1992 for the protection of interests of investors and for promoting development of and regulating the securities market, and (d) The Depositories Act, 1996 which provides for electronic maintenance and transfer of ownership of dematerialized securities.
REGULATORS : The regulators ensure that the market participants behave in a desired manner so that the securities market continues to be a major source of finance for corporate and government and the interest of investors are protected. The responsibility for regulating the securities markets shared by Department of Economic Affairs (DEA), Department of Company Affairs (DCA), Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI) and Securities Appellate Tribunal (SAT). List of Registered Stock Brokers as per ICRA as on 20th July, 2011 : 1. Anand Rathi Shares and Stock Brokers Ltd. . Anand Rathi Commodities Limited 3. Angel Global Capital Pvt Ltd (formerly known as Angel Infinn Pvt Ltd)
- Bonanza Commodity Brokers Pvt Ltd.
- Bonanza Portfolio Limited
- CD Integrated Services Ltd.
- Crosseas Capital Services Pvt. Ltd.
- Dalmia Securities Private Limited
- Dimensional Seurities Private Limited
- East India Securities Limited
- Edelweiss Capital Limited
- Emkay Global Financial Services Ltd.
- Gandhi Securities and Investment Private Limited
- Gupta Equities Private Limited
- HDFC Securities Limited
- IDBI Capital Market Services Ltd.
- IDFC-SSKI Securities Private Limited
- IL&FS Securities Services Ltd.
- India Infoline Limited
- Infinity. Com Financial Securities Limited
- Intime Spectrum Securities Limited
- Inventure Growth & Securities Limited
- Investsmart Financial Services Ltd.
- Jhaveri Securities Ltd.
- Joindre Capital Services Pvt. Ltd.
- Kantilal Chhaganlal Securities Pvt Ltd.
- Karvy Stock Broking Limited
- KIFS Securities Limited (erstwhile KIFS Securities Private Limited)
- Kotak Commodities Services Limited
- Kotak Securities Limited
Angel habitually generates value added features without the cost burden being passed on to the clients as they strongly believe that better understanding of client? s needs and wants is their top priority. Their e-broking facility is one such effort, which gives the client a platform to access state of the art trading facility at the click of a button. Angel has always strived for delivering customer delight and developing strong long term bonds with its clients as well as channel partners. Angel thrives on a vision to introduce new and innovative products and services constantly.
Angel Commodities Broking (P) Ltd. Angel Securities Ltd. Member on the BSE Depository Participant with CDSL Membership on the NSE Cash and Futures & Options Segment Member on the NCDEX & MCX Member on the BSE NETWORK OF REGIONAL OFFICES : Tab. 3. ii. Regional Offices Network Name of the State Andhra Pradesh Name of the City having Regional Office Guntur, Hyderabad, Rajahmundry, Secunderabad, Vijaywada, Visakhapatnam, Warangal Goa Gujarat Panjim Ahmedabad, Amreli, Anand, Ankleshwar, Baroda, Bhavnagar, Deesa, Gandhidham, Gandhinagar, Godhra, Gondal, Himmatnagar, Jamnagar, Junagarh, Kalol, Keshod, Mehsana, Nadiad, Palanpur
Haryana Karnataka Kerala Madhya Pradesh Maharashtra Ambala, Chandigarh, Gurgaon Bengaluru, Hubli, Mangalore, Mysore Cochin Bhopal, Indore Ahmednagar, Andheri, Aurangabad, Bandra, Bhandup, Borivali, Chembur, Churchgate, Fort, Ghatkopar, Girgaon, Goregaon, Jalgaon, Kalbadevi, Kandivali, Kolhapur, Mahim, Malad, Masjid Bander, Mulund, Nagpur, Nashik, Nerul, Powai, Pune, Sion, Solapur, Thane, Vashi, Vile Parle, Wadala New Delhi Punjab Rajasthan Tamil Nadu Uttar Pradesh
Faridabad, Ghaziabad, Janakpuri, New Delhi, Noida Amritsar, Jalandhar, Ludhiana Ajmer, Alwar, Bhilwara, Bikaner, Jaipur, Jodhpur, Kota, Udaipur Chennai, Coimbatore, Erode, Madurai, Salem, Tirupur, Trichy Agra, Allahabad, Bareilly, Dehradun, Kanpur, Lucknow, Meerut, Varanasi West Bengal Kolkata Angel’s Presence : Presence in 14 States & 101 cities 5. 9 lakh+ clients 6800+ sub brokers &business associates Milestones : ? Angel Broking bagged the Dun & Bradstreet Equity Broking Awards 2011 for ‘Best Retail Broking House’ and ‘Fastest Growing Equity Broking House’ (Large Firms) at Dun & Bradstreet Equity Broking Awards 2011. March, 2011, Angel Broking was awarded with ‘Best in Contribution Investor Education & Category Enhancement of the year’ and ‘Best Commodity Research of the year’. ? ? ? November,2010, Angel Broking bags the coveted „Major Volume Driver? Award by BSE for 2009-10 October,2009, Angel Broking bags the coveted „Major Volume Driver? Award by BSE for 2008-09 May,2009,Angel Broking wins two prestigious awards for ‘Broking House with Largest Distribution Network’ and ‘Best Retail Broking House’ at Dun & Bradstreet Equity Broking Awards ? ? August, 2008 Crossed 500000 trading accounts November, 2007 ‘Major Volume Driver’ for 2007 Page 18
Acharya’s Bangalore B- School December, 2006 Created 2500 business associates October, 2006 ‘Major Volume Driver’ award for 2006 September, 2006 Launched Mutual Fund and IPQ business July, 2006 Launched the PMS function October, 2005 ‘Major Volume Driver’ award for 2005 September, 2004 Launched Online Trading Platform April, 2004 Initiated Commodities Broking division April, 2003 First published research report November, 2002 Angel’s first investor seminar March, 2002 Developed web-enabled back office software November, 1998 Angel Capital and Debt Market Ltd.
Incorporated December, 1997 Angel Broking Ltd. Incorporated The Unique Features of Angel : Efficient uptime and greater stability for high speed Customized solutions as per client? s requirements Personalized Advisory services for HNI clients Call and Trade at 70 branches across the country State of the art Technology and Infrastructure DP with CDSL with automated pay-in facility Instant Online technical support for clients Angel’s Logo Angel’s Vision Acharya’s Bangalore B- School
Wealth preservation applies to day-to-day financial life which includes managing cash flow and overall risk management.
OBJECTIVE OF ANGEL INVESTMENT PHILOSOPHY : Angel? s objective at all time is to protect and then grow client? s portfolio. The primary aim is to avoid the thoughts of the declining market and not necessarily out-perform the rapidly rising market but to consolidate both the periods, which would result in outperforming the market along with wealth creation. Angel? s investment philosophy is outlined by in-depth focus on a disciplined long term investment approach in potential multi-baggers.
Angel leveraged technology to bring the convenience of trading to the investors? location of preference (residence or office) through computerized access. Angel made it possible for clients to view transaction costs and ledger updates in real time. Over the last ? ve years, Angel sharpened its competitive edge through the following initiatives:
Multi-channel delivery model : The Company is among the few ? nancial intermediaries in India to offer a complement of online and offline broking. The Company? network of branches also allows customers to place orders on phone or visit branches for trading. Integrated Back Office : The customer can trade on the BSE and NSE, in the cash as well as the derivatives segment all through the available multiple options of Internet, phone or branch presence. Multiple-trading options : The Company harnessed technology to offer services at among the lowest rates in the business. Technology : The Company provides a prudent mix of proprietary and outsourced technologies, which facilitate business growth without a corresponding increase in costs.
Content : The Company has leveraged its research capability to provide regular updates and investment picks across the short and long term. Service : Clients can access the customer service team through various media like toll-free lines, emails and Internet- messenger chat for instant query resolution. The Companies customer service executives proactively contact customers to inform them of key changes and initiatives taken by the Company.
Membership on the Bombay Stock Exchange Limited and the National Stock Exchange Registered with the NSDL as well as CDSL as a depository participant, providing a onestop solution for clients trading in the equities market Broking services in cash and derivative segments, online as well as offline. Provision of free and world-class research to all clients. Commodities Broking : Angel? s extension into commodities trading reconciles its strategic intent to emerge as a one stop solution for ? nancial services intermediary. Its experience in securities broking has empowered it with requisite skills and technologies, increased offering.
The Company? s commodities business provides a contra cyclical alternative to equities broking. On the whole, the business is fairly insulated against cyclical gyrations in the business. Angel distinguished its business through the interplay of knowledge and technology : Complete solution : The Company provides a complete advice to execution solution facilitated by information and advice on likely commodity trends in the Indian and international environment. Technology : The Company has extended the trading terminal to the investors home/work place reinforced with real time commodity information and ledger position.
Rates : The Company harnessed technology to offer services at among the lowest rates in the business.
Insurance Distribution : An entry into this segment helped complete the client? s product basket; concurrently, it graduated the Company into a one stop retail ? nancial solutions provider. To ensure maximum reach to customers across India, they have employed a multipronged approach and reach out to customers via the strong Network, Direct and Affiliate channels. Over the last 5 years, Angel sharpened its competitive edge in this business segment through the following initiatives:
Hands on training : Invested aggressively in training its ? eld force more than 100 hours a year in product attributes across the insurance sector – highlighting various product details and marketing skills apart from regular meets where best practices are shared. Technology : The Company provides a prudent mix of proprietary and outsourced technologies, which facilitate business growth without a corresponding increase in costs. Research and advice : Provided clients with advice on diverse investment products based on the customers? existing and prospective ? nancial pro? le. Portfolio Management Service :
Angel Portfolio Management Service is a product wherein an equity investment portfolio is created to suit the investment objectives of a client. At Angel, they invest your resources into stocks from different sectors, depending on your risk-return pro? le. This service is particularly advisable for investors who cannot afford to give time or don? t have that expertise for day-to-day management of their equity portfolio. It is all about your money, being managed by the experts, while you continue with your routine life. Isn? t it simple and totally hassle free.
What? s more, you can keep track of your dividends / bonus / rights issues with paperless tracking. So you always know how fast your investment is growing. It basically means assigning the right job to the right person. Salient Features of Angel PMS : ? ? ? ? Expert team of Research Analysts Stock Picking done by the Investment Committee Dedicated Relationship Manager Technology and Service driven Back-O? ce Wealth Management Services : The key to achieving a successful Investment Portfolio is to have a carefully planned ? nancial strategy based on a thorough understanding of the client investment needs and risk appetite. The Angel Private Wealth Management Team of ? nancial experts will recommend an appropriate nancial strategy to effectively meet your investment requirements. Financial Advisor will analyze: Cash-? ow requirements Your risk appetite Desired investment horizon Long-term goals
ORGANIZATIONAL STRUCTURE : Fig. 4. 1. Organizational Structure The core Organization structure consists of the Regional Offices, and under every R. O. , there will be Branches and Franchise (Sub-brokers) Network according to the suitability of area.
And from all the fingers, the thumb is the most important part, without which, no finger will be able to work properly, in an Organization, the guidance of Top Level Management, Goals set by the Organization play the role of the Thumb. Here, we can infer that because of having too wide network, the cross-communication among the departments become very much tough, and Angel is also having the same problem, if all the department heads will not be able to get in touch with every other employee working in company, it will be too difficult to carry the operations properly.
Angel Products are positioned as an equity investment option for all those investors who aims for realistic return from equity as an asset class. It is for the investors who wishes to seek professional advice for their investments. Unique selling Preposition (USP) ? ? A strong team of 11 sector specific analysts headed by Research director guiding the investments. A low cost solution for investing. Product SegmentAngel Products are for the people who fall in middle class – higher middle class section of the society. People who are not risk averse and can understand the return benefits vis-a-vis calculated risk taken.
Monthly newsletter will be issued by the Desk and Regular meetings also will be conducted at the branches. A marketing kit will have Angel Products broacher, performance report FAQs, Consent letter and KYC forms.
PLACEMENT : Distribution Channel Bright marketing persons should be used for this product. Product Training along with some investment ideas will be provided to personnel Existing B2C as well as B2B channels can be explored. Proper data mining and segmentation should be the basis of marketing Marketing Strategies The primary marketing strategy for all products is low rokerage charges. Low cost is the basis for attracting the customers. Another marketing strategy is the corporate scheme of Angel which does not charge any fees for opening trading account if there are more than 10 persons opening account in a group.
PROMOTION : Fundamental workshops to be conducted at the branch on weekends. Promotional activities such as stalls and exhibitions to be held at select housing colonies, clubs and companies. Free SMS service. Here a client will receive our fundamental calls free of cost for a limited period.
Distribution of Angel Pamphlets to target customers Attracting the customers through Canopy marketing Promotional activities are also carried out through Investor Camp Acharya’s Bangalore B- School
OPERATIONS DEPARTMENT : COMPANY LOCATION : The location problem is an important strategic level decision making for an organization. The selection of location is a key decision as large investment is made. It is not advisable or sometimes not possible to change the location very often. So an improper location may lead to waste of all the investments. The location of the company is based on company? expansion plan and policy, changing market conditions. At present the company is situated at 244-246, Upper Ground Floor, Sahara Centre, Faizabad Road, Lucknow. In order to find a good location the company followed three stages : First stage – Selection of a region: this refers to the selection of a particular geographical zone taking into consideration such factors as nearness to market. Second stage- Selection of a community: this refers to the selection of the specific locality within the region. The factors that influence the selection of community are community attitude and service facilities.
Third stage- Selection of specific site: this refers to the selection of specific site within the community. The factors that influence the site location are the cost of the land, availability and suitability of the land. The factors that the Company considered while selecting location are : Infrastructure facilities Availability of power Community attitude Municipal and other Civil amenities
LAYOUT : Layout refers to physical arrangement of facilities. It is the configuration of departments, work centers, etc.
The primary goal of layout is to maximize the profit by arrangement of all facilities to the best advantage. The Company has divisions such as : Branch Manager s Cabin Conference Room Trading Rooms Back Office Risk Management Desk KYC (Know Your Client) Desk IT Division The Branch Manager s Cabin and the Conference Room are near to each other so that conference can be held immediately when required. The two Trading Rooms are placed together so that any problem during the trading sessions can be handled easily. The Back Office, Risk Management Desk and KYC Desk are placed in a line so that they can communicate whenever required nd the queries of the customer can be solved. The IT Division is kept separately with server and all the necessary connections.
PLANNING AND CONTROLLING : Planning is useful for effective utilization of resources, to achieve organization goal and objectives with respect to quality service, cost control and timely service. Other objective is to co-ordinate with other departments to ensure continuous quality service. There is proper planning of how various activities would be carried out like opening of account, dealing while trading sessions, issuing contract notes, etc.
There is also co-ordination among various divisions like back office, Risk Management Desk, KYC Desk, etc so that proper service can be provided to customers.
MAINTENANCE : Maintenance of facilities in good working condition is essential to achieve desired levels. If the company ignores the maintenance than they have to pay heavy price for that. The Company has designed the Quality Assurance Policy which maintains the service of the Company as per the desire level of the customer. The Quality Assurance Policy helps the Company to fulfill the expectations of the customers and retain them.
PROCUREMENT : As Angel Broking is the Service Sector Industry, so procurement of computer machinery and other useful stationery such as stamp, papers, files and other stationery useful for form filling is done. Procurement of computer machinery and other stationery is done through local distributors. STORAGE : There are various cupboards for various files like contract notes cupboard, account opening forms cupboard, sub brokers files cupboard and general stationary cupboards are kept for easy availability of files and stationery whenever required.
FINANCE DEPARTMENT : Finance is the life blood of any organization. Basic requirement for an organization for existence and survival is found or finance. Financial Management is concerned with the management decisions that results in the acquisition & financing long term and short term. It deals with the acquisition of specific assets the selection of specific liability as well as size and growth of an enterprise. The function and activities carried out by this department include finance management and maintaining books of accounts, records and other supporting document. Objective: Avoiding capital blocking Maintaining adequate funds Minimizing risk Profit maximization Searching efficient sources of funds Role of Finance Manager: Annual Budgeting Monthly budgeting Statutory audits Internal audits Directing and controlling funds Minimizing losses to the company. Responsibilities and Duties: Arranging and disbursement of funds: inter group, inter unit, head office, suppliers, governmental and statutory payments etc. , Cash management Working capital management Maintenance of books of accounts and records Internal and external audit Final reports presentation
HUMAN RESOURCE DEPARTMENT : Human resource management policies are vital for organizations that are serious about resolving personnel issues and finding HR solutions. Absolute HR solutions provide clients with professional human resource advice, human resource policy solutions and job description writing and evaluation services. Human Resource Management serves these key functions :
- Hiring (Recruitment)
- Evaluation and Management (of Performance)
- Managing Relations
It is the responsibility of human resource managers to conduct these activities in an effective, legal, fair and consistent manner. The objective of Human Resource is to maximize the return on investment from the organization s human capital.
RECRUITMENT :Angel takes pride in appointing dynamic individuals who would share their vision and philosophy of ‘providing the best value to all our customers. They believe that a professional, determined and focused approach towards the task at hand would enable all their aspirants to learn, groom and grow with them.
They offer the perfect blend of stimulus in the form of an attractive compensation package and a stimulating work environment. Prospective candidates being appointed will serve a probationary period of three months. Staff appointed as trainees will be confirmed in the services, on completion of the required training period subject to his / her performance being satisfactory during the training period. Confirmation will be formalized only when a confirmation letter is issued to the trainee. If considered necessary, training period will be liable to be extended / terminated.
During the probation period employee may terminate his/her employment, without stating any reasons, by giving one week s notice of termination. Employees wanting to terminate their employment, at any time after successfully serving the probationary period, will have to give one month s notice of termination, stating the reasons for termination in writing. The new joinee will be attending a two day Induction Programme in order to acquaint him/her with the Angel World (Its People, Culture, Business Processes, Products & services & New Initiatives).
INDUCTION : This program is for new members entering the organization.
TRAINING : Angel has undertaken a campaign to strengthen the staff s Customer Relationship Management skills across the organization, by planning highly interactive training sessions with the aim of providing effective services to the clients.
The programs will be conducted by the HR team with assistance from an outsourced Trainer & will be held at the in house training center at Akruti. The training programs will have sessions like; Effective Customer Service Skills, Effective Business Communication, Telephone Etiquette, E-Mail Etiquette, Time Management, Interpersonal Skills, Effective Selling Skills, Handling Customer Complaints effectively. etc. They expect serious commitment and participation from the staff members for all the training initiatives.
These people development programmes are an integral part of the performance appraisal process and those excelling in these programs can look forward to be suitably rewarded. e-Learning : They have initiated e-Learning for making training more accessible through video conferences & through their Employee portal. e-learning also makes the transfer of knowledge more effective & consistent. Along with a host of other training programs, their Induction program too is to be delivered across Angelites through our e-learning platform.
DEVELOPMENT : “Do not ask what will happen if we train people and they leave Instead ask what will happen if we do not train people and they stay on. ” – Zig Ziegler As they are steadily moving up in the Customer Value Chain by providing Advice Based Broking & becoming a Knowledge Leader in the Retail Broking Business, they encourage all Angelites to upgrade their knowledge about the Dealing and advisory Process by obtaining NCFM Certifications. Apart from this they have advanced training modules in core functional areas such as marketing / sales, corporate services, research & advisory etc. or Angelites. They believe in offering careers & not jobs, hence they recruit fresh graduates / post-graduates. They develop their skills & competencies which helps them create a niche for themselves & achieve professional development.
PERFORMANCE APPRAISAL SYSTEM : At ANGEL, increments will be based only on annual appraisals and will be strictly bench marked with the relative importance of the role and specific contributions of each employee. Annual Appraisals are reviewed twice in a year i. . in July and December. New employees who have at least completed 9 months of service (6 months of confirmed service) by July or December will be eligible for an annual increment, depending on their performance & contribution to the company. The Performance Management System Links employees performance to the Corporate Goals through well Defined Key Performance Areas (KPAs) & measurable targets, reviewed every quarter. Focuses on defining & rating all Managers on Key Competencies relevant for our business.
Ensures an objective Performance Appraisal of employees through a meaningful dialogue with them about their performance and decide on measures to improve their contribution and rewards. Identifies key strengths of employees & builds a Training-cum-Career Development Plan for them. Provides opportunity for senior employees to make a Self-Appraisal of their performance based on their KPAs and Targets, thereby minimizing areas of differences. Aligns the compensation of each employee with his performance & successful completion of NCFM modules related to their job profiles. Downward revisions in compensation are also possible.
Performance Related Rewards (PRR) / Bonus : The company pays bonus or Performance Linked Incentives to deserving employees who have contributed more than their defined performance standards & targets. The company plans to progressively increase the variable pay component in the compensation structure to ensure greater accountability and performance orientation. Personal Loans and Advances against Salaries : Personal Loans : All employees who have completed 1 year of continuous service with the organisation are eligible to avail personal loans from the Company only in case of dire need of finance. Loans availed by the employees during year will have to be repaid within 10 installments and the same will be deducted from the salary each month. The loan can be availed only if any previous loan taken is repaid wholly. Loans shall be provided at the absolute discretion of the Management and will be decided on a case to case basis depending on the urgency, need and criticality of the subject. Advances: Advance is generally given once in 4 months against one months salary after requisite deductions.
The entire amount given as advance will be adjusted against the next months salary.
SWOT ANALYSIS : SWOT is an acronym for the internal strength and weakness of the firm and the environment opportunities and threats facing that firm. SWOT analysis is a widely used technique through which manager create a quite overview of a company s strategic situation. It is based on the assumption that an effective strategy derives from a sound fit between firm internal resources (strength & weakness) and its external situation (opportunities & threats).
A good fit maximizes a firm strength and opportunities and minimizes its weakness and threats. Strength are internal competence of a firm, particularly in comparison with that of its competitors. Strength may encompasses the company image, brand, business synergies and functional area such as marketing, finance , HR, IT etc.
STRENGTHS : Large and Diversified Distribution Network : Angel brokers have large network coverage. The business has grown from a single location to a nationwide network spread across.
Today the angel group is managed by a team of 1937 direct employees and has a nationwide network comprising of 14 Regional hubs, 100+ branches and 6800+ sub brokers & business associates. Experienced Top Level Management : It is very difficult for any of the organization to survive in the market without having experienced and dedicated top management. A lot of problems arise, when Management has not got the skills to tackle the situation, but with Angel, because of their Top Management having 20-30 years of pre-business experience, they prove every time that their decisions are better and will lead to the Bright Future of the Company.
Well-established Brand : Today, because of the Dedicated Research and the Customer Service staff, which is not comparable with any of the competitor, Angel has become a renowned and very much wellknown Brand among the investors throughout India. Some more strengths are as follows : Wide range of financial products and services Healthy Financial Market Excellent Infrastructure One of the top brokers in the country Understanding the needs of a channel partner and retail investor very well. Deriving inspiration from their vision of providing the best value for money to their clients. Strict adherence to compliance norms. Timely research based advice to their clients. 50 member research / advisory team comprising of experienced fundamental and technical analysis, sector specialties, derivative strategist and commodity analysts Strong Communication Network. Good Image and strong back ground.
WEAKNESSES : The main concern with the brokerage business is cyclicality. Trading volumes drop sharply during a downturn.
When the Indian stock market enters the bear phase, angel broking will be affected. Leading firms are better placed to weather a downturn and may even be able to accelerate industry consolidation by rolling up smaller firms that have been affected to a much larger extent. High Employee Turnover No lifetime facility for Demat A/c No funding facility
OPPORTUNITIES : Good customer base. Rising consumer incomes will translate into disproportionately higher allocation of these funds into equities.
Right now, under 3% of India’s retail assets are invested in stock markets. So, there is much more untapped market, which Angel has to grab to make more business. Further, the stock broking industry is highly fragmented and seeing a gradual consolidation. Growing IPO issues can use of sustained growth in retail segment of financial product. Economic growth in India Growing consumer awareness about equity related products. To get into the segment of such investors who are less risky. Marketing at rural and semi-urban areas.
THREATS : Existing Competitors Market Uncertainty Political instability or changes in the government could delay the liberalization of the Indian economy and adversely affect economic conditions in India generally, which could impact our financial results and prospects. Broad economic factors like inflation etc. We have reputational risks in respect of our distribution of third party products Downturns or disruptions in the securities markets could reduce transaction volumes, and could cause a decline in the business and impact profitability.
Past Image of Stock Market
FINDINGS, SUGGESTIONS AND RECOMMENDATIONS : FINDINGS : If properly marketed, the concept of e-Broking can be penetrated in the minds of people. For this the benefits of e-Broking should be conveyed to those who are not aware of it. Training should be given regarding the use of software. People should be educated regarding the easiness of trading while using online trading. The users of online trading are mostly businessmen. Other persons falling in the category of employee, govt. ervants or professionals are either not aware or are not mentally prepared for using e-Broking concept. Such people can be made aware about the benefits of e-Broking and its uses and benefits should be properly conveyed so that people become ready to use this concept. Major Stock Exchanges of India i. e. BSE & NSE, are innovating their products on a regular basis, but the normal investor cannot be made aware of these developments, at Angel, they keep on transferring such communication, but it is the lack of Financial Literacy among the investors, who ignore such things.
The potential customer for Angel Broking House consist of professionals, employees and govt. servants because these persons are either not investing or investing through other broking houses. The persons investing from other broking houses can be converted to the customers of Angel Broking by conveying its unique features and the low brokerage cost and the rest can be educated about stock market.
SUGGESTIONS : To make the concept of e-Broking powerful, the Company must educate the people regarding the benefits of e-Broking.
The company should reduce the Brokerage rates for all classes of people to attract more new customers from middle class. The Company can give training to the customers regarding e-Broking and keep seminars for the customers. A person having sound knowledge about using the software can be appointed to solve the queries of customers. The benefits of e-Broking must be marketed properly in order to make people use eBroking. Through this the Company can increase the awareness of e-Broking. The features of online trading can be used by the Company to convert offline traders to online traders.
CONCLUSION : Investors have preferred equity for investment and after that they had preferred Postal savings, Bank and then Commodity, Mutual Funds. There are few investors who have preferred to deal in commodity market once in a while but mostly preferred frequently and regular dealing in stock market. Most of the investors prefer to do investment for the purpose of capital appreciation and profit respectively and there were very few investors who were investing for the purpose of dividend.
Investors had preferred to do medium term investment as compared to monthly investment. Mostly all the investors were aware and investing in the commodities. Mostly all the investors not believe that commodity gives higher return and it can also be used for diversification. It has also found that most of the investors are positive for Metals as especially in Gold & Silver. Most of the investors believe that investment in commodity is good. By analyzing the clients practically in Angel Broking Ltd. I came to understand that there is a lot of potential of Indian Stock Markets as well as Securities Markets, as the Investors are very much concerned on investing in safe and secure markets, which the Indian Regulators ensure to the customers by the means of Corporate Governance.
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- D. Aruna Kumar Assistant Professor (Finance & Accounting Area) Lokamanya Tilak P G College of Management Ibrahimpatnam, Hyderabad-501 506 E-mail: [email protected] com http://www. indianmba. com/Faculty_Column/FC177/fc177. html
- Physical Papers : Angel Broking Ltd. Brochures and Pamphlets given by Trainers WEBSITES : www. angelbroking,com www. angelcommodities. com www. sebi. gov. in www. icra. in Acharya’s Bangalore B- School Page 54
Cite this Angel Broking
Angel Broking. (2016, Oct 02). Retrieved from https://graduateway.com/angel-broking/