THE MANAGEMENT THESIS REPORT

ON

INDIA INFOLINE LIMITED

Submitted To:

G. A. Narasimham

PROJECT GUIDE

VIGNAN UNIVERSITY

Submitted By:

SRIKANTH.D

091FC01008

FOR

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 CONTENTS

S. No Description Page No

   

1 Industry 3-9

2 3CETT 10 – 41

a) Company 10 -26

b) Customer 27 - 29

c) Competitor 30 – 33

d) Environment 34

e) Technology 35

f) Terminology 36 – 47

3 Business Objective 48

4 SWOT Analysis 49 - 50

5 Who is Who 51

6 About Orientation Program At SIP 52

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 INDUSTRY PROFILE

While regulation and reforms have made major improvements in the quality of the equity
markets in India, its rapid growth and development are largely due to strong and efficient
market intermediation. The robustness of the Indian markets today is attributable to a healthy
blend of the quality of market structure and efficient intermediation. Even as several
countries are instituting procedures to commence equity derivative markets, India ranks
amongst the top five countries globally in this segment, in less than five years of its
introduction. This is an example of the proactive and progressive nature of the Indian
brokerage industry.

In the last decade, the Indian brokerage industry has undergone a dramatic transformation.
From being made of close groups, the broking industry today is one of the most transparent
and compliance oriented businesses. Long settlement cycles and large scale bad deliveries are
a thing of the past with the advent of T+2 settlement cycle and dematerialization. Large and
fixed commissions have been replaced by wafer thin margins, with competition driving down
the brokerage fee, in some cases, to a few basis points.

There have also been major changes in the way business is conducted. Technology has
emerged as the key driver of business and investment advice has become research based. At
the same time, adherence to regulation and compliance has vastly increased. The scope of
services have enhanced from being equity products to a wide range of financial services.
Investor protection has assumed significance, and so has providing them with education and
awareness. Greater need for capitalization has induced several firms to access the capital
market; foreign firms are showing increasing interest in taking equity stakes in domestic
broking firms.

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Major developments in equity brokerage industry in India:

➢ Corporate memberships
There is a growing surge of corporate memberships (92% in NSE and 75% in BSE), and the
scope of functioning of the brokerage firms has transformed from that of being a family run
business to that of professional organized function that lays greater emphasis on observance
of market principles and best practices. With proliferation of new markets and products,
corporate nature of the memberships is enabling broking firms to expand the realm of their
operations into other exchanges as also other product offerings. Memberships range from
cash market to derivatives to commodities and a few broking firms are making forays into
obtaining memberships in exchanges outside the country subject to their availability and
eligibility.

➢ Wider product offerings

The product offerings of brokerage firms today go much beyond the traditional trading of
equities. A typical brokerage firm today offers trading in equities and derivatives, most
probably commodities futures, exchange traded funds, distributes mutual funds and insurance
and also offers personal loans for housing, consumptions and other related loans, offers
portfolio management services, and some even go to the extent of creating niche services
such as a brokerage firm offering art advisory services. In the background of growing
opportunities for investors to invest in India as also abroad, the range of products and services
will widen further.

In the offing will be interesting opportunities that might arise in the exchange enabled
corporate bond trading, soon after its commencement and futures trading that might be
introduced in the near future in the areas of interest rates and Indian currency.

➢ Greater reliance on research

Client advising in India has graduated from personal insights, market tips to becoming
extensively research oriented and governed by fundamentals and technical factors. Vast
progress has been made in developing company research and refining methods in technical
and fundamental analysis. The research and advice are made online giving ready and real
time access to market research for investors and clients, thus making research important
brand equity for the brokerage firms.

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➢ Accessing equity capital markets
Access to reliable financial resources has been one of the major constraints faced by the
equity brokerage industry in India since long. Since the banking system is not fully integrated
with the securities markets, brokerage firms face limitations in raising financial resources for
business and expansion. With buoyancy of the stock markets and the rising prospects of
several well organized broking firms, important opportunity to access capital markets for
resource mobilization has become available. The recent past witnessed several leading
brokerage firms accessing capital markets for financial resources with success.

➢ Foreign collaborations and joint ventures

The way the brokerage industry is run and the manner in which several of them pursued
growth and development attracted foreign financial institutions and investment banks to buy
stakes in domestic brokerage firms, paving the way for stronger brokerage entities and
possible scope for consolidation in the future. Foreign firms picked up stake in some of the
leading brokerage firms, which might lead to creating of greater interest in investing in
brokerage firms by entities in India and abroad.

➢ Specialized services/niche broking

While supermarkets approach are adopted in general by broking firms, there are some which
are creating niche services that attract a particular client group such as day traders, arbitrage
trading, investing in small cap stocks etc, and providing complete range of research and other
support to back up this function.

➢ Online broking
Several brokers are extending benefits of online trading through creation of separate
windows. Some others have dedicated online broking portals. Emergence of online broking
enabled reduction in transaction costs and costs of trading. Keen competition has emerged in
online broking services, with some of these offering trading services at the cost of a few basis
points or costs which are fixed in nature irrespective of the volume of trading conducted. A

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wide range of incentives are being created and offered by online brokerage firms to attract
larger number of clients.

➢ Compliance oriented
With stringent regulatory norms in operation, broking industry is giving greater emphasis on
regulatory compliance and observance of market principles and codes of conduct. Many
brokerage firms are investing time, money and resources to create efficient and effective
compliance and reporting systems that will help them in avoiding costly mistakes and
possible market abuses. Brokerage firms now have a compliance officer who is responsible
for all compliance related aspects and for interacting with clients and other stake holders on
aspects of regulation and compliance.

➢ Focus on training and skill sets

Brokerage firms are giving importance and significance to aspects such as training on skill
sets that could prove to be beneficial in the long run. With the nature of markets and products
becoming more complex, it becomes imperative for the broking firms to keep their staff
continuously updated with latest development in practices and procedures. Moreover, it is
mandated for certain types of dealers/brokers to seek specific certification and examinations
that will make them eligible to carry business or trade. Greater emphasis on aspects such as
research and analysis is giving scope for in-depth training and skills sets on topics such as
trading programs, valuations, economic and financial forecasting and company research.

➢ From owners to traders

A fundamental change that has taken place in the equity brokerage industry, which is a global
trend as well, is the transformation of broking from owners of the stock exchange to traders
of the stock market. Demutualization and corporatization of stock exchanges bifurcated the
ownership and trading rights with brokers vested only with the later and ownership being
widely distributed.

Demutualization is providing balanced welfare gains to both the stock exchanges and the
members with the former being able to run as corporations and the latter being able to avoid
conflict of interests that sometimes came as a major deterrent for the long term growth of the
industry.

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Emerging challenges and outlook for the brokerage industry
Brokerage firms in India made much progress in pursuing growth and building
professionalism in operations. Given the nature of the brokerage industry being very
dynamic, changes could be rapid and so as the challenges that emerge from time to time. A
brief description on some of the prospects and challenges of the brokerage firms are
discussed below.

➢ Fragmentation
Indian brokerage industry is highly fragmented. Numerous small firms operate in this space.
Given the growing importance of technology in operations and increasing emphasis on
regulatory compliance, smaller firms might find it constrained to make right type of
investments that will help in business growth and promotion of investor interests.

➢ Capital Adequacy
Capital adequacy has emerged as an important determinant that governs the scope of business
in the financial sector. Current requirements stipulation capital adequacy in regard to trading
exposure, but in future more tighter norms of capital adequacy might come into force as a
part of the prudential norms in the financial sector. In this background, it becomes imperative
for the brokerage firms to focus on raising capital resources that will enable to give
continuous thrust and focus on business growth.

➢ Global Opportunities
Broking in the future will increasingly become international in character with the stock
markets being open for domestic and international investors including institutions and
individuals, as also opportunities for investing abroad. Keeping abreast with developments in
international markets as also familiarization with global standards in broking operations and
assimilating major practices and procedures will become relevant for the domestic brokerage
firms.

➢ Opportunities from regional finance

Regional economic integration such as that under the European Union and the ASEAN have
greatly benefited businesses in the individual countries with cross border opportunities that
helped to expand the scope and significance of the business. Initial measures to promote
South Asian economic integration is being made by governments in the region first at the

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political level to be followed up in regard to financial markets. South Asian economic
integration will provide greater opportunities for broking firms in India to pursue cross border
business. In view of several of common features prevailing in the markets, it would be easier
to make progress in this regard.

➢ Product Dynamics
As domestic finance matures and greater flow of cross border flows continue, new market
segments will come into force, which could benefit the domestic brokerage firms, if they are
well prepared. For instance, in the last three to four years, brokerage firms had newer
opportunities in the form of commodities futures, distribution of insurance products, wealth
management, mutual funds etc, and as the market momentum continues, broking firms will
have an opportunity to introduce a wider number of products.

➢ Competition from foreign firms

Surging markets and growing opportunities will attract a number of international firms that
will increase the pace of competition. Global firms with higher levels of capital, expertise and
market experience will bring dramatic changes in the brokerage industry space which the
local firms should be able to absorb and compete. Domestic broking firms should always give
due focus to emerging trends in competition and prepare accordingly.

➢ Investor Protection
Issues of investor interest and protection will assume centre stage. Firms found not having
suitable infrastructure and processes to ensure investor safety and protection will encounter
constraints from regulation as also class action suits that investors might bring against erring
firms. The nature of penalties and punitive damages would become more severe. It is
important for brokerage firms to establish strong and streamlined systems and procedures for
ensuring investor safety and protection.

The broking house like any other company has a Board of directors, headed by a Chairman.
The Board provides the vision and the mission to the broking house. The Board plans and
formulates the goals for the broking house, and directs the Chief Executive Officer or the

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CEO. The main responsibility of the CEO is to achieve the goals and the mission formulated
by the Board through specialized teams under him. These specialized teams are departments
in a broking house. He provides executive directions to around eight departments that
include:

· Business strategy
· Business development
· Technology
· Research
· Finance
· Operations
· Compliance
· Human resources

INDIA INFOLINE LIMITED

The India Infoline group, comprising the holding company, india infoline limited and its
wholly-owned subsidiaries, straddle the entire financial services space with offerings ranging
from equity research, equities and derivatives trading, commodities trading, portfolio
management services, mutual funds, life insurance, fixed deposits, GOI bonds and other
small savings instruments to loan products and investment banking.
India Infoline also owns and manages the websites www.indiainfoline.com and
www.5paisa.com the company has a network of over 2100 business locations (branches and
sub-brokers) spread across more than 450 cities and towns. the group caters to approximately
a million customers.

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Vision Statement :

Our vision is to be the most respected company in the financial services space.

HISTORY

We were founded in 1995 by Mr. Nirmal Jain (Chairman and Managing Director) as an
independent business research and information provider. We gradually evolved into a
one-stop financial services solutions provider. Our strong management team comprises
competent and dedicated professionals

We are a pan-India financial services organization across 1,361 business locations and a
presence in 428 cities. Our global footprint extends across geographies with offices in
New York, Singapore and Dubai. We are listed on the Bombay Stock Exchange (BSE)
and the National Stock Exchange (NSE).

We offer a wide range of services and products comprising broking (retail and
institutional equities and commodities), wealth management, credit and finance,
insurance, asset management and investment banking.

We are registered with the BSE and the NSE for securities trading, MCX, NCDEX and
DGCX for commodities trading, CDSL and NSDL as depository participants. We are
registered as a Category I merchant banker and are a SEBI registered portfolio manager.
We also received the FII license in IIFL Inc. IIFL Securities Pte Ltd received approval
from the Monetary Authority of Singapore to carry out corporate advisory and dealing in

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securities operations. Two subsidiaries – India Infoline Investment Services and
Moneyline Credit Limited – are registered with RBI as non-deposit taking non-banking
financial services companies. India infoline Housing Finance Ltd, the housing finance
arm, is registered with the National Housing Bank.

MILESTONES
1995

Incorporated as an equity research and consulting firm with a client base that included
leading FIIs, banks, consulting firms and corporates.

1999

Restructured the business model to embrace the internet; launched

archives.indiainfoline.com mobilised capital from reputed private equity investors.

2000

Commenced the distribution of personal financial products; launched online equity

trading; entered life insurance distribution as a corporate agent. Acknowledged by
Forbes as ‘Best of the Web’ and ‘...must read for investors’.

2004

Acquired commodities broking license; launched Portfolio Management Service.

2005

Listed on the Indian stock markets.

2006

Acquired membership of DGCX; launched investment banking services.

2007

Launched a proprietary trading platform; inducted an institutional equities team; formed

a Singapore subsidiary; raised over USD 300 mn in the group; launched consumer
finance business under the ‘Moneyline’ brand.

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 2008

Launched wealth management services under the ‘IIFL Wealth’ brand; set up India
Infoline Private Equity fund; received the Insurance broking license from IRDA;
received the venture capital license; received inprinciple approval to sponsor a mutual
fund; received ‘Best broker- India’ award from FinanceAsia; ‘Most Improved
Brokerage- India’ award from Asiamoney.

2009

Received registration for a housing finance company from the National Housing Bank;
received ‘Fastest growing Equity Broking House - Large firms’ in India by Dun &
Bradstreet.

Company Structure

India Infoline Limited is listed on both the leading stock exchanges in India, viz. the
Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and is also a
member of both the exchanges. It is engaged in the businesses of Equities broking,
Wealth Advisory Services and Portfolio Management Services. It offers broking services
in the Cash and Derivatives segments of the NSE as well as the Cash segment of the
BSE. It is registered with NSDL as well as CDSL as a depository participant, providing
a one-stop solution for clients trading in the equities market. It has recently launched its
Investment banking and Institutional Broking business.

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A SEBI authorized Portfolio Manager; it offers Portfolio Management Services to
clients. These services are offered to clients as different schemes, which are based on
differing investment strategies made to reflect the varied risk-return preferences of
clients.

India Infoline Media and Research Services Limited

The content services represent a strong support that drives the broking, commodities,
mutual fund and portfolio management services businesses. Revenue generation is
through the sale of content to financial and media houses, Indian as well as global.

It undertakes equities research which is acknowledged by none other than Forbes as

'Best of the Web' and '…a must read for investors in Asia'. India Infoline's research is
available not just over the internet but also on international wire services like Bloomberg
(Code: IILL), Thomson First Call and Internet Securities where India Infoline is amongst
the most read Indian brokers.

India Infoline Commodities Limited

India Infoline Commodities Pvt Limited is engaged in the business of commodities

broking. Our experience in securities broking empowered us with the requisite skills and
technologies to allow us offer commodities broking as a contra-cyclical alternative to
equities broking. We enjoy memberships with the MCX and NCDEX, two leading
Indian commodities exchanges, and recently acquired membership of DGCX. We have a

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multi-channel delivery model, making it among the select few to offer online as well as
offline trading facilities.

India Infoline Marketing & Services

India Infoline Marketing and Services Limited is the holding company of India Infoline
Insurance Services Limited and India Infoline Insurance Brokers Limited.

(a) India Infoline Insurance Services Limited is a registered Corporate Agent with the
Insurance Regulatory and Development Authority (IRDA). It is the largest Corporate
Agent for ICICI Prudential Life Insurance Co Limited, which is India's largest private
Life Insurance Company. India Infoline was the first corporate agent to get licensed by
IRDA in early 2001.

(b) India Infoline Insurance Brokers Limited is a newly formed subsidiary which will
carry out the business of Insurance broking. We have applied to IRDA for the insurance
broking licence and the clearance for the same is awaited. Post the grant of license, we
propose to also commence the general insurance distribution business.

India Infoline Investment Services Limited

Consolidated shareholdings of all the subsidiary companies engaged in loans and

financing activities under one subsidiary. Recently, Orient Global, a Singapore-based
investment institution invested USD 76.7 million for a 22.5% stake in India Infoline
Investment Services. This will help focused expansion and capital raising in the said
subsidiaries for various lending businesses like loans against securities, SME financing,
distribution of retail loan products, consumer finance business and housing finance
business. India Infoline Investment Services Private Limited consists of the following
step-down subsidiaries.

(a) India Infoline Distribution Company Limited (distribution of retail loan products)

(b) Moneyline Credit Limited (consumer finance)

(c) India Infoline Housing Finance Limited (housing finance)

IIFL (Asia) Pte Limited

IIFL (Asia) Pte Limited is wholly owned subsidiary which has been incorporated in
Singapore to pursue financial sector activities in other Asian markets. Further to

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 obtaining the necessary regulatory approvals, the company has been initially capitalized
at 1 million Singapore dollars.

MANAGEMENT TEAM

Mr. Nirmal Jain

Chairman & Managing Director

India Infoline Ltd.

Nirmal Jain, MBA (IIM, Ahmedabad) and a Chartered and Cost Accountant, founded India’s
leading financial services company India Infoline Ltd. in 1995, providing globally acclaimed
financial services in equities and commodities broking, life insurance and mutual funds
distribution, among others. Mr. Jain began his career in 1989 with Hindustan Lever’s
commodity export business, contributing tremendously to its growth. He was also associated
with Inquire-Indian Equity Research, which he co-founded in 1994 to set new standards in
equity research in India.

Mr. R Venkataraman

Executive Director

India Infoline Ltd.

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R Venkataraman, co-promoter and Executive Director of India Infoline Ltd., is a B. Tech
(Electronics and Electrical Communications Engineering, IIT Kharagpur) and an MBA (IIM
Bangalore). He joined the India Infoline board in July 1999. He previously held senior
managerial positions in ICICI Limited, including ICICI Securities Limited, their investment
banking joint venture with J P Morgan of USA and with BZW and Taib Capital Corporation
Limited. He was also Assistant Vice President with G E Capital Services India Limited in
their private equity division, possessing a varied experience of more than 16 years in the
financial services sector.

The Board of Directors

Apart from Nirmal Jain and R Venkataraman, the Board of Directors of India Infoline Ltd.
comprises:

Mr Nilesh Vikamsey

Independent Director

India Infoline Ltd.

Mr. Vikamsey, Board member since February 2005 - a practising Chartered Accountant and
partner (Khimji Kunverji & Co., Chartered Accountants), a member firm of HLB
International, headed the audit department till 1990 and thereafter also handles financial
services, consultancy, investigations, mergers and acquisitions, valuations etc; an ICAI study
group member for Proposed Accounting Standard — 30 on Financial Instruments —
Recognition and Management, Finance Committee of The Chamber of Tax Consultants
(CTC), Law Review, Reforms and Rationalization Committee and Infotainment and Media
Committee of Indian Merchants’ Chamber (IMC) and Insurance Committee and Legal
Affairs Committee of Bombay Chamber of Commerce and Industry (BCCI). Mr. Vikamsey is
a director of Miloni Consultants Private Limited, HLB Technologies (Mumbai) Private
Limited and Chairman of HLB India.

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Mr Sat Pal Khattar

Non Executive Director

India Infoline Ltd.

Mr Sat Pal Khattar, - Board member since April 2001 - Presidential Council of Minority
Rights member, Chairman of the Board of Trustee of Singapore Business Federation, is also a
life trustee of SINDA, a non profit body, helping the under-privileged Indians in Singapore.
He joined the India Infoline board in April 2001. Mr Khattar is a Director of public and
private companies in Singapore, India and Hong Kong; Chairman of Guocoland Limited
listed in Singapore and its parent Guoco Group Ltd listed in Hong Kong, a leading property
company of Singapore, China and Malaysia. A Board member of India Infoline Ltd, Gateway
Distriparks Ltd — both listed — and a number of other companies he is also the Chairman of
the Khattar Holding Group of Companies with investments in Singapore, India, UK and
across the world.

Mr Kranti Sinha

Independent Director

India Infoline Ltd.

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Mr. Kranti Sinha — Board member since January 2005 — completed his masters from the
Agra University and started his career as a Class I officer with Life Insurance Corporation of
India. He served as the Director and Chief Executive of LIC Housing Finance Limited from
August 1998 to December 2002 and concurrently as the Managing Director of LICHFL Care
Homes (a wholly owned subsidiary of LIC Housing Finance Limited). He retired from the
permanent cadre of the Executive Director of LIC; served as the Deputy President of the
Governing Council of Insurance Institute of India and as a member of the Governing Council
of National Insurance Academy, Pune apart from various other such bodies. Mr. Sinha is also
on the Board of Directors of Hindustan Motors Limited, Larsen & Toubro Limited, LICHFL
Care Homes Limited, Gremach Infrastructure Equipments and Projects Limited and Cinemax
(India) Limited.

Mr Arun K. Purvar

Independent Director

India Infoline Ltd.

Mr. A.K. Purvar – Board member since March 2008 – completed his Masters degree in
commerce from Allahabad University in 1966 and a diploma in Business Administration in
1967. Mr. Purwar joined the State Bank of India as a probationary officer in 1968, where he
held several important and critical positions in retail, corporate and international banking,
covering almost the entire range of commercial banking operations in his illustrious career.
He also played a key role in co-coordinating the work for the Bank's entry into the field of
insurance. After retiring from the Bank at end May 2006, Mr. Purwar is now working as
Member of Board of Governors of IIM-Lucknow, joined IIM–Indore as a visiting professor,
joined as a Hon.-Professor in NMIMS and he is also a member of Advisory Board for
Institute of Indian Economic Studies (IIES), Waseda University, Tokyo, Japan. He has now
taken over as Chairman of IndiaVenture Advisors Pvt. Ltd., as well as IL & FS Renewable
Energy Limited. He is also working as Independent Director in leading companies in
Telecom, Steel, Textiles, Autoparts, Engineering and Consultancy.

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 Company’s philosophy on Corporate Governance

The India Infoline Group is committed to placing the Investor First, by continuously striving
to increase the efficiency of the operations as well as the systems and processes for use of
corporate resources in such a way so as to maximize the value to the stakeholders. The Group
aims at achieving not only the highest possible standards of legal and regulatory compliances,
but also of effective management.

COMMITTEE

Audit Committee

Terms of reference & Composition, Name of members and Chairman: The Audit committee
comprises Mr Nilesh Vikamsey, Chairman of the Committee, Mr Sat Pal Khattar, Mr Sanjiv
Ahuja and Mr Kranti Sinha, three of whom are independent Directors. The Managing
Director, the Executive Director along with the Statutory and Internal Auditors are invitees to
the Meeting. The Terms of reference of this committee are as under: - To investigate into any
matter that may be prescribed under the provisions of Section 292A of The Companies Act,
1956 - Recommendation and removal of External Auditor and fixation of the Audit Fees. -
Reviewing with the management the financial statements before submission of the same to
the Board. - Overseeing of Company’s financial reporting process and disclosure of its
financial information. - Reviewing the Adequacy of the Internal Audit Function.

Compensation/ Remuneration Committee

Terms of reference & Composition, Name of members and Chairman: The Compensation /
Remuneration Committee comprises Mr Sanjiv Ahuja, Chairman of the Committee, Mr
Nilesh Vikamsey and Mr Kranti Sinha, all of whom are independent Directors. The Terms of
reference of this committee are as under: - To fix suitable remuneration package of all the
Executive Directors and Non Executive Directors, Senior Employees and officers i.e. Salary,
perquisites, bonuses, stock options, pensions etc. - Determination of the fixed component and
performance linked incentives alongwith the performance criteria to all employees of the
company - Service Contracts, Notice Period, Severance Fees of Directors and employees. -

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Stock Option details: whether to be issued at discount as well as the period over which to be
accrued and over which exercisable. - To conduct discussions with the HR department and
form suitable remuneration policies.

Share Transfer and Investor Grievance Committee

Details of the Members, Compliance Officer, No of Complaints received and pending and
pending transfers as on close of the financial year. The committee functions under the
Chairmanship of Mr Kranti Sinha, a Non-executive independent Director. The other
Members of the committee are Mr Sanjiv Ahuja, Independent Director and Mr R
Venkataraman, Executive Director. Ms Komal Parikh, Company Secretary is the Compliance
Officer of the Company.

Overview of products and services

We are a one-stop financial services shop, most respected for quality of its advice,
personalised service and cutting-edge technology.

Equities

Indiainfoline provided the prospect of researched investing to its clients, which was
hitherto restricted only to the institutions. Research for the retail investor did not exist
prior to Indiainfoline. Indiainfoline leveraged technology to bring the convenience of
trading to the investor’s location of preference (residence or office) through
computerized access.

Indiainfoline made it possible for clients to view transaction costs and ledger updates in
real time.

APPLY IN IPOs
You could also invest in Initial Public Offers (IPO’s) online without going through the
hassles of filling ANY application form/ paperwork.

PMS

Our Portfolio Management Service is a product wherein an equity investment portfolio is

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created to suit the investment objectives of a client. We at Indiainfoline invest your resources
into stocks from different sectors, depending on your risk-return profile. 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.

Research

Sound investment decisions depend upon reliable fundamental data and stock selection
techniques. Indiainfoline Equity Research is proud of its reputation for, and we want you to
find the facts that you need. Equity investment professionals routinely use our research and
models as integral tools in their work.
They choose Ford Equity Research when they can clear your doubts.

Commodities

Indiainfoline’s extension into commodities trading reconciles its strategic intent to emerge as
a one-stop solutions financial intermediary. Its experience in securities broking has
empowered it with requisite skills and technologies. The Company’s commodities business
provides a contra-cyclical alternative to equities broking. The Company was among the first
to offer the facility of commodities trading in India’s young commodities market (the MCX
commenced operations only in 2003). Average monthly turnover on the commodity
exchanges increased from Rs 0.34 bn to Rs 20.02 bn. The commodities market has several
products with different and non-correlated cycles. On the whole, the business is fairly
insulated against cyclical gyrations in the business.

Mortgages

During the year under review, Indiainfoline acquired a 75% stake in Moneytree Consultancy
Services to mark its foray into the business of mortgages and other loan products distribution.
The business is still in the investing phase and at the time of the acquisition was present only
in the cities of Mumbai and Pune. The Company brings on board expertise in the loans
business coupled with existing relationships across a number of principals in the mortgage
and personal loans businesses. Indiainfoline now has plans to roll the business out across its
pan-Indian network to provide it with a truly national scale in operations.

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Home Loans
Personal Loans
Get expert advice that suits your needs
Freedom to choose from 4 flexible options to

Loan against residential and commercial repay

property
Expert recommendations
Expert recommendations
Easy documentation
Easy documentation
Quick processing and disbursal
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No guarantor requirement
No guarantor requirement

Invest Online

Indiainfoline has made investing in Mutual funds and primary market so effortless. All you
have to do is register with us and that’s all. No paperwork no queues and No registration
charges.

INVEST IN MF
Indiainfoline offers you a host of mutual fund choices under one roof, backed by in-depth
research and advice from research house and tools configured as investor friendly.

Stay connected to the market

The trader of today, you are constantly on the move. But how do you stay connected to the
market while on the move? Simple, subscribe to Indiainfoline's Stock Messaging Service and
get Market on your Mobile!

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There are three products under SMS Service:

 Market on the move.

 Best of the lot.
 VAS (Value Added Service )

Insurance

An entry into this segment helped complete the client’s product basket; concurrently, it
graduated the Company into a one-stop retail financial solutions provider. To ensure
maximum reach to customers across India, we have employed a multi pronged approach and
reach out to customers via our Network, Direct and Affiliate channels. Following the opening
of the sector in 1999-2000, a number of private sector insurance service providers
commenced operations aggressively and helped grow the market.

The Company’s entry into the insurance sector derisked the Company from a predominant
dependence on broking and equity-linked revenues. The annuity based income generated
from insurance intermediation result in solid core revenues across the tenure of the policy.

Wealth Management Service

Imagine a financial firm with the heart and soul of a two-person organization. A world-
leading wealth management company that sits down with you to understand your needs and
goals. We offer you a dedicated group for giving you the most personal attention at every
level.

Newsletters

The Daily Market Strategy is your morning dose on the health of the markets. Five intra-day
ideas, unless the markets are really choppy coupled with a brief on the global markets and
any other cues, which could impact the market. Occasionally an investment idea from the
research team and a crisp round up of the previous day's top stories. That's not all. As a
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research team on a priority basis.

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 The Indiainfoline Weekly Newsletter is your flashback for the week gone by. A weekly
outlook coupled with the best of the web stories from Indiainfoline and links to important
investment ideas, Leader Speak and features is delivered in your inbox every Friday evening

Asset Management

India Infoline is a leading pan-India mutual fund distribution house associated with
leading asset management companies. It operates primarily in the retail segment
leveraging its existing distribution network to reach prospective clients. It has received
the in-principle approval to set up a mutual fund.

The group recently commenced its offshore asset management business under the ‘IIFL
Capital’ brand. Also, IIFL Securities Pte Ltd received approval from the Monetary
Authority of Singapore to carry out global asset management operations. The Singapore
arm can now offer broking, asset management and investment banking services.

IIFL Inc received an FII license, thereby facilitating the investment of dedicated funds in
India.

With offices in New York, Singapore and Dubai, IIFL Capital aims to offer India-
focused equity products, fund management and advisory services for offshore and
domestic wealth management customers.

CUSTOMERS

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Customers of the mutual funds are divided based on their life cycles:

While working on a comprehensive financial plan, it is useful to have a perspective on the

Life Cycle and Wealth Cycle of the investor.

Life Cycle

These are the normal stages that people go through, viz.:

Childhood: -

During this stage, focus is on education in most cases. Children are dependents, rather than
earning members. Pocket money, cash gifts and scholarships are potential sources of income
during this phase. Parents and seniors need to groom children to imbibe the virtues of
savings, balance and prudence. Values imbibed during this phase set the foundation of their
life in future.

Young Unmarried: -

The earning years start here. A few get on to high paying salaries early in their career. Others
toil their way upwards. Either way, the person needs to get into the habit of saving. The
fortunate few who start off well have to avoid falling into the trap of unsustainable life styles.
Equity SIPs and ELSS are great ways to force the young unmarried into the habit of regular
savings, rather than lavish the money away.

This is the right age to start investing in equity. Personal plans on marriage, transportation
and residence determine the liquidity needs. People for whom marriage is on the anvil, and
those who wish to buy a car / two wheeler or house may prefer to invest more in relatively
liquid investment avenues. Others have the luxury of not having to provide much for liquidity
needs. Accordingly, the size of the equity portfolio is determined.

Young Married:-

A cushion of assets created during the early earning years can be a huge confidence booster
while taking up the responsibilities associated with marriage. Where both spouses have
decent jobs, life can be financially comfortable. They can plan where to stay in / buy a house,
based on job imperatives, life style aspirations and personal comfort. Investment growth is
required.

Where only one spouse is working, life insurance to provide for contingencies associated
with the earning spouse are absolutely critical. In case the earning spouse is not so well
placed, ability to pay insurance premium can be an issue, competing with other basic needs of

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food, clothing and shelter. Term insurance (where premium is lower) possibilities have to be
seriously explored and locked into.

Depending on the medical coverage provided by the employer/s, health insurance policy
cover too should be planned. Even where the employer provides medical coverage, it would
be useful to start a low value health insurance policy, to provide for situations when an
earning member may quit a job and take up another after a break Further, starting a health
insurance policy earlier and not having to make a claim against it for a few years, is the best
antidote to the possibility of insurance companies rejecting future insurance claims / coverage
on account of what they call “pre‐existing illness”.

While buying an insurance policy, there has to be clarity on whether it is a cashless policy i.e.
a policy where the insurance company directly pays for any hospitalization expenses. In other
policies, the policy‐holder has to bear the expense first and then claim re‐imbursement from
the insurer. This increases the liquidity provisions that need to be made for contingencies. All
family members need to know what is covered and what is not covered in the policy, any
approved or black listed health services provider, and the documentation and processes that
need to be followed to recover money from the insurer. Many insurance companies have
outsourced the claim settlement process. In such cases, the outsourced service provider, and
not the insurer, would be the touch point for processing claims.

Married with Young Children:-

Insurance needs – both life and health increase with every child. The financial planner is well
placed to advise on a level of insurance cover, and mix of policies that would help the family
maintain their life style in the event of any contingency.

Expenses for education right from pre-school to normal schooling to higher education is
growing much faster than regular inflation. Adequate investments are required to cover this.

Married with Older Children:-

The costs associated with helping the children settle i.e. cost of housing, marriage etc are
shooting up. If investments in growth assets like shares and real estate, are started early in
life, and maintained, it would help ensure that the children enjoy the same life style, when
they set up their independent families.

Pre Retirement:-

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By this stage, the children should have started earning and contributing to the family
expenses. Further, any loans taken for purchase of house or car, or education of children
should have been extinguished. The family ought to plan for their retirement – what kind of
lifestyle to lead, and how those regular expenses will be met.

Retirement:-

At this stage, the family should have adequate corpus, the interest on which should help meet
regular expenses. The need to dip into capital should come up only for contingencies – not to
meet regular expenses. The availability of any pension income and its coverage (only for the
pensioner or extension to family in the event of death of pensioner) will determine the corpus
requirement

COMPETITORS

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 Last Price Market Cap. Sales Net Profit Total Assets
(Rs. cr.) Turnover

Indiabulls 132.90 4,123.30 1,420.81 264.16 9,577.56

Edelweiss Cap 422.65 3,172.91 245.53 34.21 1,865.28

HSBC Invest 395.70 2,792.33 14.41 -1.49 667.45

Motilal Oswal 159.80 2,287.89 51.13 42.38 433.49

Network 18 156.65 1,791.15 32.96 -44.53 862.11

Future Capital 158.20 1,005.01 55.29 17.32 1,216.75

Geojit BNP 33.65 757.98 261.71 56.80 276.06

Delta Corp 31.90 533.24 54.10 13.57 356.87

Nalwa Sons Inv 970.65 498.54 12.02 9.13 270.90

INDIABULLS SECURITIES LIMITED:

Indiabulls Securities Limited is a leading brokerage house in the Indian stock markets. It is
the pioneer in introducing online stock trading in India. Indiabulls Securities is the first stock
broker in India to be assigned the highest rating BQ – 1 by CRISIL. Indiabulls Securities Ltd
is listed on NSE, BSE & Luxembourg stock exchange.

MOTILAL OSWAL SECURITIES LIMITED:

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Motilal Oswal Securities Ltd. (MOSL) was founded in 1987 as a small sub-broking unit, with
just two people running the show. Focus on customer-first-attitude, ethical and transparent
business practices, respect for professionalism, research-based value investing and
implementation of cutting-edge technology has enabled them to blossom into an almost 2000
member team.

Today it is a well diversified financial services firm offering a range of financial products and
services such as Wealth Management , Broking & Distribution , Commodity Broking,
Portfolio Management Services , Institutional Equities, Private Equity , Investment Banking
Services  and Principal Strategies.

RELIGARE SECURITIES LIMITED:

Religare Securities Limited (RSL), a 100% subsidiary of Religare Enterprises Limited is a

leading equity and securities firm in India. The company currently handles sizeable volumes
traded on NSE and in the realm of online trading and investments; it currently holds a
reasonable share of the market. The major activities and offerings of the company today are
Equity Broking, Depository Participant Services, Institutional Broking and Research
Services. To broaden the gamut of services offered to its investors, the company offers an
online investment portal armed with a host of revolutionary features.

GEOJIT BNP PARIBAS:

Geojit BNP Paribas today is a leading retail financial services company in India with a
growing presence in the Middle East. The company rides on its rich experience in the capital
market to offer its clients a wide portfolio of savings and investment solutions. The gamut of
value-added products and services offered ranges from equities and derivatives to Mutual
Funds, Life & General Insurance and third party Fixed Deposits. The needs of over 495,000
clients are met via multichannel services - a countrywide network of over 500 offices, phone
service, dedicated Customer Care centre and the Internet.

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Geojit BNP Paribas has membership in, and is listed on, the National Stock Exchange (NSE)
and the Bombay Stock Exchange (BSE). In 2007, global banking major BNP Paribas joined
the company’s other major shareholders - Mr. C.J.George, KSIDC (Kerala State Industrial
Development Corporation) and Mr.Rakesh Jhunjhunwala – when it took a stake to become
the single largest shareholder.

FUTURE CAPITAL HOLDINGS:

Future Capital Holdings was conceptualized as a new age capital management and investing
business that could play a vital role in the development of the consumption-led economy in
India. As a company with an investing mindset, we view India as an attractive long-term
investment opportunity across asset classes.

Future Capital Holdings combines the entrepreneurial skills of world-class professionals from
reputed international and domestic companies with the national scale and reach of the Future
Group.

Future Group has pioneered and established a nation-wide chain of over 12 million of retail
space in 71 cities and 65 rural locations across the country.

HSBC INVEST DIRECT:

HSBC InvestDirect (India) Limited (HIDL) is listed on the Bombay Stock Exchange Limited
and National Stock Exchange Limited. HIDL through its Subsidiaries offer a comprehensive
range of value-added products and services backed by a professional service orientation for
retail and corporate customers. The business activities undertaken by HIDL through its
subsidiaries include (i) Securities Broking; (ii) Investment Advisory; (iii) Distribution of
financial products; (iv) Portfolio Management Services and (v) Securities related financing
(NBFC).

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 ENVIRONMENT

There are two type of environment that is:

a) Micro Environment.

b) Micro Environment.

Micro Environment

 Employer and employee relationship is very good.

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  All the level of employees are allowed to participate in decision making.

 FA’s are also allowed to be in contact with the higher authorities.

 Recognition is not biased.

 High level of interaction between employees.

 Customer Oriented.

Macro Environment

 It is one of the best professionalized financial services company.

 Company provides good benefit to the employees as well as customers.

 The products and plans that are offered by the company are very good and beneficial
to the customers.

 As the brand value of the company is increasing day by day it shows a positive
environment.

TECHNOLOGY

Over the last five years, India Infoline sharpened its competitive edge through the
following initiatives: Multi-channel delivery model :
The Company is among the few financial intermediaries in India to offer a complement of
online and offline broking. The Company’s network of branches also allows customers to
place orders on phone or visit our branches for trading.

Integrated middle and 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.

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Multiple-trading options :
The Company harnessed technology to offer services at among the lowest rates in the
business.Membership: The Company widened client reach in trading on the domestic and
international exchanges.

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 Company’s customer
service executives proactively contact customers to inform them of key changes and
initiatives taken by the Company. Business World rated the Company’s customer service as
‘Best’ in their survey of online trading sites carried out in December 2003.

TERMINOLOGY

Active Portfolio Management

Is a systematic and proactive approach to investment with the goal of beating the market.
This strategy is based on the premise that markets are not efficient and that there is scope to
earn abnormal profits through an active investment strategy.

Annualized Return

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The return a fund would have generated over a year on a compounded basis. This method is
the best indicator to measure the performance of a fund.

Asset Management Company (AMC)

A Company registered with SEBI, which takes investment/ divestment decisions for the
mutual fund, and manages the assets of the mutual fund. e.g. for Sun F&C mutual fund , the
AMC is Sun F&C Asset Management (India) Pvt. Ltd.

Asset Allocation

It is the process of allocating the overall corpus to different assets like equities, bonds, real
estate, derivatives etc.

Back-end Load

A kind of redemption charge that an investor has to pay for withdrawing his money from the
mutual fund. It is basically imposed to discourage investors from exiting the fund. It is also
popularly referred to as an Exit Load.

Balanced fund

A fund that invests substantially both in debt and equity.

Closed-ended fund

A fund where investors have to commit their money for a particular period. In India these
closed-ended funds have to necessarily be listed on recognized stock exchanges which
provides an exit route.

Contingent deferred sales charge (CDSC)

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An exit charge permitted under the regulations for a no-load scheme

Continuous Offer Period

Is the date from which the units are available for sale and repurchase at a price linked to NAV
of the scheme.

Corpus

The total investable funds available with a mutual fund scheme at any point of time.

Credit Risk

It is the risk that the issuer of a fixed income security may default on payment of interest and
repayment of principal. It is also referred to as default risk.

Dated Security

A debt instrument that is long term in nature and has a fixed date of redemption.

Debt fund

A fund that invests in debt securities like Government securities, Treasury Bills, corporate
Bonds etc. These funds are generally preferred by investors wanting steady income and not
willing to take higher risks.

Dematerialization

The process of converting the physical /paper shares in Electronic form. SEBI had made it
compulsory to get the shares of some companies dematerialized. In this process the investor

35
opens an account with a Depository Participant (DP) and the number of shares the investor
holds is shown in this account.

Depository Participant

An authorized body who is involved in dematerialization of shares and maintaining of the

investors accounts.

Discount/Premium to (Net Asset Value) NAV

It is the difference between the unit price and NAV. If the price is higher than the NAV, the
units are trading at premium: if the price is lower, the units are trading at a discount.

Diversification

It is the investment strategy of not putting all one’s eggs in one basket. By diversifying a
portfolio across different industries, overall risk of the portfolio is reduced.

Efficient Portfolio

A portfolio which ensures maximum return for a given level of risk or a minimum level of
risk for an expected return.

Factor Fund

It is a mutual fund that has a core philosophy of investing in a particular factor or style in the
market. They are also referred to as Style Funds. Examples of factor funds are Mid-cap funds,
Low P/E funds, Growth funds etc.

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Financial Pyramid

An investment plan in the shape of a pyramid structure where the safest investments are at the
base and the riskiest investments at the peak.

Fixed Income Security

A type of security that pays fixed interest at regular intervals. These comprise gilt-edged
securities, bonds (taxable and tax-free), preference shares and debentures. Less risky than
equity shares and have little scope for capital appreciation.

Front-End Load

An initial amount charged by a fund for its administrative expenses or for paying
commissions to brokers. If the charge is made at the termination or redemption, it becomes a
back-end load.

Gilt-edged Security

Government securities and bonds, usually with a low interest rate. Considered safest
investments, as the government security is free from default risk. Originally such certificates
were edged with gold and hence the name.
Gilt fund

Funds that invest predominantly in government securities and treasury bills. It is good for
investors who desire safety of principal and adequate liquidity.

Equity/Growth fund

A fund that invest primarily in equities and has capital appreciation as its investment
objective

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Fund Manager

A professional manager appointed by the Asset Management Company to invest money in

accordance with the objects of the scheme.

Fundamental Analysis

A method of investment analysis based on the fundamentals like turnover, net profit, growth,
and vision of a company. The boom or depression of the stock markets are not considered in
this analysis.

Income Fund

A fund that usually invests in debentures, bonds, and high dividend shares. Preferred by
investors who wants regular income. It pays dividends to the investors out of its earnings.

Index Fund

A fund whose portfolio is benchmarked against a popular index like the BSE Sensex or the
BSE Natex. Such an investment philosophy reflects the belief that the market is efficient and
trying to beat the market over the long term is futile

Initial Offer Period

The dates on which the initial subscription to the units of the scheme can be made. It is
similar to the IPO of an equity issue. This initial offer period is followed by a continuous
offer period.

Interest Rate Risk

The change in the price of a debt security due to changes in the market interest rates is the
interest rate risk. For debt oriented mutual fund schemes, this interest rate risk affects the

38
NAV of the fund. A rise in the interest rates leads to a fall in the price of a fixed income
security.

Interim Dividend

An advance installment of the dividend finally declared. More often one, but sometimes two
such payments are made. The final dividend is often at least equal, and sometimes more. The
interim dividend is a fair indication of a company's profitability, during the working year.

Liquid Fund

A fund that invests its corpus in short term instruments like call markets, treasury bills,
Commercial Paper (CP), Certificate of Deposit (CD).

Liquidity Risk

It is the risk in a fixed income security as well as in equities that these securities may not be
sold in the market at close to their value. Liquidity risk is characteristic of narrow markets
like India.

Load

A charge by the fund when an investor buys (entry load) or sells (exit load) units in the fund.

Market Capitalization

Represents the market value of the company. It is a product of the current market price and
the number of shares outstanding.

Market Instrument

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A fully negotiable instrument for short-term debt.

Market Lot

A fixed minimum number of shares, in which or in multiples of which, shares are bought and
sold on the stock exchange. The advent of dematerialization of shares will do away the
significance of market lot.

Net Asset Value (NAV)

This is calculated as total assets minus all expenses and divided by the number of outstanding
units. This is the main performance indicator for a mutual fund, especially when viewed in
terms of appreciation over time.

No-Load Fund

Shares of an open-ended fund, which can be bought directly from the fund without any sales
charge or brokerage. US-64 is an example of a no-load fund.

Offer Price

The price at which units can be bought from a fund.

Offshore Fund

A fund domiciled outside the country where investments are made. It is often a tax haven, not
subject to the tax laws of the holder's country.

Passive portfolio management

Exactly the reverse of active portfolio management. The portfolio manager assumes that
markets are efficient and all information is already analyzed and reflected in the prices of

40
shares. This strategy is based on the premise that it is impossible to consistently beat the
market.

Rating

Evaluation of credit risk in fixed income securities. This evaluation is specific to the security
rated and is done in India by Crisil, Icra, Care and Duff & Phelps.

Record Date

It is the date announced by the company/mutual fund, which is a cut-off date for corporate
benefits like dividends, rights, bonus etc. Only investors whose names appear in the
company’s registers on that date are eligible for the said benefits.

Reinvestment Plan

It is a plan where the earnings of a mutual fund scheme are reinvested back in the fund.

Reinvestment Risk

It is the risk that the interest on fixed income instruments cannot be reinvested at the same
rate. This problem becomes pronounced in a falling interest rate scenario.

Sector fund

Such funds invest only in stocks belonging to a specific industry usually aimed at growth. For
e.g. Kothari Pioneer Infotech Fund. Sector funds are generally considered to be risky in

41
nature.

Sinking Fund

Money regularly set aside in a separate fund and invested by a company for the repayment of
debt instruments (fixed deposits, debentures, other loans) or the redemption of preference
shares, or for replacement of assets.

Sponsor

Sponsor is the parent organization that contributes the initial capital of the asset management
company (AMC). e.g. Kotak Mahindra Finance is the sponsor for Kotak Mahindra Mutual
Fund.

Switching

Transferring from one scheme to another in a group of schemes operated by a Mutual Fund,
where the rules so permit. A switching fee may or may not be charged.

SWOT Analysis

A type of fundamental analysis of the health of a company by examining its strengths(S),

weakness (W), business opportunity (O), and any threat (T) or dangers it might be exposed
to.

Systematic Risk

This is the market risk that a security faces and is essentially non-diversifiable in nature. This
risk is caused by macro level factors like changes in inflation, interest rates, budget
announcements etc.

42
Technical Analysis

A method of prediction of share price movements based on a study of price graphs or charts
on the assumption that share price trends are repetitive. Since investor psychology follows a
certain pattern, what is seen to have happened before is likely to be repeated. The technical
analyst is not concerned with the fundamental strength or weakness of a company or an
industry; he only studies price and volume behavior.

Top-Down Investment

An approach to stock selection which evaluates the prospects of the economy first, then the
prospects of the industry and then finally the prospects of a particular company to take an
investment decision. It is the opposite of a bottom-up approach to investing.

Transfer Agents

Professional firms, now mostly computerized, which maintain the records of shareholders of
their client companies.

Treasury Bills

These are bills of exchange, i.e., IOUs, issued by the Reserve Bank of India for short-term
loans, 91 days to 364 days.

Trustee

The trustee is the legal owner of the mutual fund. The trustee takes into custody or under its
control all the capital and property of every scheme of the mutual fund and hold it in trust for
the unitholders of the scheme.

Unsystematic Risk

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This is the proportion of risk that is specific to a particular company. This diversifiable risk
could arise due to company specific factors like operational factors, financial factors, labor
unrest etc.

Value Investment

Investment in shares whose intrinsic value is above their market price. Fundamental analysts
often make recommendations of value investment, as they can spot undervalued shares.

Venture Capital Fund

A limited company formed to provide venture or risk capital to new industries.

Zero Coupon Bond

A coupon is an interest warrant attached to a debt instrument, and the coupon rate is the rate
of interest. A zero-coupon bond carries no interest, but is sold at a discount to its face value,
which is the maturity value. The difference between the discounted price and the maturity
value represents the interest on the bond.

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 BUSINESS STRATEGIES & OBJECTIVES

BUSINESS STRATEGY:

 Focus on core competence in financial services space.

 Multiple products and diverse revenue schemes ensure de-risked business.

 Asset heavy or long gestation businesses of through separate JV’s or group

companies.

CUSTOMER STRATEGY:

 Drive customer stickiness through quality advice, best value and a delightful
experience.

 Cutting edge proprietary technology for execution, back office and customer service.

 Wide, multimodal network serving as one stop shop to customers.

BUSINESS OBJECTIVES:

 Follow company code of ethics and leverage standards.

 Focus on attracting the best talents and giving them superior environment and
training them.
 Focus on personalized skilled service and use of technology to give the best
experience.
 Focus on perfecting process and leveraging technology.
 Focus on sharpening research capabilities and training and development of
human resources.

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 SWOT ANALYSIS

STRENGTHS

MANAGERIAL DEPTH:

•Promoted by first generation professional entrepreneurs.

•Management team unmatched in terms of professional credentials,

experience as well as academic background.

WELL CAPITALISED:

•Net worth approximately Rs 16 bn with negligible debt.

•Well‐funded to not just weather but take advantage of downturn.

DISTRIBUTION REACH:

•Present at 1,616 business locations, with over 500 own branches.

•Effectively cover 445 cities across India.

OWNER MINDSET:

•The top management is driven by pride and reward of ownership.

•To think and work like an owner is part of organization’s DNA.

TECHNOLOGY EDGE:

•Only player with proprietary trading platform.

•Effectively harnessed technology to facilitate processes and provide

superior customer experience.

46
 WEAKNESSES

 There are no promotional activities in rural areas.

 Too much competition faced in the Indian Market even from the banking entities.

 Customers are much interested to take services of the banks directly rather than
contacting private financial houses.

 Customers are not much aware about the brand value of the company.

 The mind set of customers that private companies do not provide good financial
advices.

OPPORTUNITIES

 Increasing customer awareness

 Developed relationships with quality equity analysts.
 Change in economic environment.
 Changes in customer attitude towards his income savings.

THREATS

 Increase in no. of Competitors.

 Limited awareness.
 Competitors providing more value added services.

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 WHO IS WHO

BRANCH MANAGER

RELATIONSHIP MANAGER

ASST. RELATIONSHIP
MANAGER

FINANCIAL ADVISORS

ORIENTATION PROGRAM IN SIP COMPANY

48
 A three day training program was conducted and mediated by D.N.Kishore (Company
Guide), at India Infoline Ltd, Bangalore. The training sessions mainly dealt with preparing
the trainees with product knowledge, company exposure, and behavioral skills. The sessions
were very interactive and informative and provided all round support. One the first day of the
training we were informed about the company profile, which included company market share
in India and abroad, its main products, benefit of being part of the organization, Then we
started with the mutual funds industry training.

We were trained on the products for ten days and the the most important part was that it was
just not one side speech or class. We were also asked to give presentation on what we have
learned so far about the products. We were also motivated to do hard work and how we can
get recognition in the company as a whole.

It was a session that is going to help us in the whole Internship Program. We were also
addressed by the Branch Manager, Mr.D.N.Kishore He wished us all the best and gave
examples of some of the top performers of the last batch. He also mentioned that they have
some high expectations from us. All the words of the Company Guide were very motivating
and knowledge giving. We were asked to be free and were asked to grab as much as
knowledge that we can from this Internship Program in the Company.

It can be concluded that all together the orientation in the company was very motivated and
also knowledge giving, which will surely help us not only in this Internship Program but also
in future life.

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