INTERNSHIP REPORT

Submitted by

GAURAV MOTWANI

Reg No: 2016MBA045

Under the guidance of

PROF. RAVI LAKHANI

Submitted in Partial Fulfillment of the requirements

of Jagran LakeCity unversity for the Award of the degree in

Master of Business Administration

Jagran LakeCity Business School

JAGRAN LAKECITY UNIVERSITY

BHOPAL-462001

2017

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 ACKNOWLEDGEMENTS

This project is not solitary effort of mine alone. Its successful accomplishment is the result of many distinct
people to whom I owe a debt beyond repayment. Therefore, I would like to extent my token of thanks to
those who have helped me directly or indirectly in making my project work an incredibly pleasant task and
giving it a final shape.

My sincere thanks towards my project guide Prof. ravi lakhani, Research Associate at Jagran Lakecity
University University for her constant guidance. Without her kind support this project would have never
been possible.

I offer my sincere thanks to Mr. sudeep singh , Director-Marketing, for giving me incredible opportunity
to do my project at Edelweiss broking limited and for his valuable inputs and guidance to encounter
upcoming challenges in the long run of my career.

Unfortunately, it wont be possible to acknowledge my indebtness individually to everyone. I owe a big

thank you to whole marketing team, and my friends who have been supportive throughout the journey of
this internship.

GAURAV MOTWANI

2016MBA045

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 ABSTRACT

Without practical training, management education is meaningless so long with

the theory; practical training is provided to management students to expose them to the
actual working environment of any organization. Such training provides a framework of
knowledge relating to the concepts and practices of the assigned topics in the
organization.

The summer training is an integral part of the course curriculum of Post

Graduate Diploma In Management. In this the student is in the position to analyze the
integral working of an organization with mature eyes and understand the dynamics in a
much better manner.

This particular project has been conducted at Edelweiss Broking Limited. In the
first phase of the research project, there is an introduction of Share Trading, company
profile and products of Edelweiss are given. After that a market research is performed with
a sample size of 100 customers. The research study was limited to Pune city only . Here, in
my survey, I have contacted the respondents through personal interviews with the help of
questionnaires.

The main objective of the research is to know the awareness among the
customers related to equity market which is done by Edelweiss by selling Financial
products of Edelweiss.

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 CONTENTS

CHAPTER NO. CONTENTS

1 Introduction

2 Research Methodology

3 Review of Literature

4 Profile of the company / Organization / System

5 Analysis of sector/Equity Market

5 Analysis and Interpretation of Data

6 Summary of Finding , conclusion and recommendations

7 Bibliography

8 Annexure

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 CHAPTER - INTRODUCTION

Money is better than poverty, if only for financial reason Woody Allen

India is a developing economy. Its prospering in all spheres. Share Market is a

compelling determination of the economy and the financial situation of a country. Share market is
an area which fascinates each and every individual who is craving for more money. Some
common phrases are If we want to earn just try with share market. This is a good start to start
education on investing putting your money where it can gain greater returns then just earning
interest in a high-interest account. Investments in shares or stock can be daunting as there is
vast and various amounts of information on investments and everyone is ready and willing to take
your money.

Steps are to be taken for start Share trading:-

As beginners we should understand one thing. If we are planning to invest in share market,
first we have to categorize our self.

Are we a long term investor?

Are we a sort term investor? (Daily trading).

Long term investor:-

Its here we invest. We are most secured in this case because we dont consider to be used
for emergency. Any company will one day have a growth curve for more we have more chances
to lose more.

Short term investor (Risky):-

Remember its here we play not invest.

1. Make investment break ups: If we have x RS in our hand dont get carried away to
buy shares for all x RS. Always we should have fifty percent in our hand.

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 2. Reinvest only when profits: Make the profit what we earn on the first trader (if so
happens) to buy extra share. Suppose if our stock didnt go up after first investment
wait till (may be months) till our holding goes up.

Since the liberalization, privatization and globalization, the foreign investment in our country is
booming. Share Market is a dear indicator of the developing trend prevailing in our country.
Statistics reveal that the trade volume has been increasing continuously, coupled with the ups &
downs which is a nature of share trading.

We are living in interlinked world. With growing volume of trade, it has become a necessity
that people are aware of the intricacies of the web world.

The Indian broking industry is one of the oldest trading industries that have been around
even before the establishment of the BSE in 1875. Despite passing through a number of changes
in the post Liberalization period, the industry has found its way towards sustainable growth.

History of broking house in India:-

Stock markets refer to a market place where investors can buy and sell stocks. The
price at which each buying and selling transaction takes is determined by the market forces (i.e.
demand and supply for a particular stock).

In earlier times, buyers and sellers used to assemble at Stock Exchanges to make a
transaction but now with the dawn of IT, most of the operations are done electronically and the
stock markets have become almost paperless. Now, investors do not have to gather at the
Exchanges, and can trade freely from their home or office over the phone or through
Internet.

A broker is a person or firm that facilitates trades between customers. A broker acts as
a go between and, in doing so, does not assume any risk for the trade.

The broker does, however, charge a commission. A broking firm acts as an intermediary
between NSE and Client.

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What is NSE & BSE?

1. NSE (National Stock Exchange):-

The National Stock Exchange (NSE) is a stock exchange located at Delhi, India. It is
the 9th largest stock exchange in the world by market capitalization and largest in India by daily
turnover and number of trades, for both equities and derivative trading. NSE has a market
capitalization of around US$1.59 trillion and over 1,552 listings as of December 2010. Though a
number of other exchanges exist, NSE and the Bombay Stock Exchange are the two most
significant stock exchanges in India, and between them are responsible for the vast majority of
share transactions. The NSE's key index is the S&P CNX Nifty, known as the
NSE NIFTY (National Stock Exchange Fifty), an index of fifty major stocks weighted by market
capitalisation.

NSE is mutually-owned by a set of leading financial institutions, banks, insurance

companies and other financial intermediaries in India but its ownership and management operate
as separate entities. There are at least 2 foreign investors NYSE Euronext and Goldman Sachs
who have taken a stake in the NSE As of 2006, the NSE VSAT terminals, 2799 in total, cover
more than 1500 cities across India NSE is the third largest Stock Exchange in the world in terms
of the number of trades in equities. It is the second fastest growing stock exchange in the world
with a recorded growth of 16.6%.

Markets:-

Currently, NSE has the following major segments of the capital market:

Equity

Futures and Options

Retail Debt Market

Wholesale Debt Market

Currency futures

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Mutual Fund

Stock Lending & Borrowing

2. BSE (Bombay Stock Exchange):-

The Bombay Stock Exchange (BSE) is a stock exchange located on Dalal Street,
Mumbai and is the oldest stock exchange in Asia. The equity market capitalization of the
companies listed on the BSE was US$1.63 trillion as of December 2010, making it the 4th largest
stock exchange in Asia and the 8th largest in the world. The BSE has the largest number of listed
companies in the world.

As of December 2010, there are over 5,034 listed Indian companies and over 7700 scraps on the
stock exchange, the Bombay Stock Exchange has a significant trading volume. The BSE
SENSEX, also called "BSE 30", is a widely used market index in India and Asia. Though many
other exchanges exist, BSE and the National Stock Exchange of India account for the majority of
the equity trading in India. While both have similar total market capitalization (about USD 1.6
trillion), share volume in NSE is typically five times that of BSE.

BSE Index Cell carries out the day-to-day maintenance of all indices and conducts research on
development of new indices. SENSEX is significantly correlated with the stock indices of other
emerging markets.

Demat Account:-

The term Demat, in India, refers to a dematerialized account for individual Indian citizens
to trade in listed stocks or debentures, required for investors by The Securities Exchange Board
of India (SEBI). In a demat account, shares and securities are held electronically instead of the
investor taking physical possession of certificates. A Demat Account is opened by the investor
while registering with an investment broker (or sub broker). The Demat account number is quoted
for all transactions to enable electronic settlements of trades to take place.

Access to the Demat account requires an internet password and a transaction

password as well as initiating and confirming transfers or purchases of securities. Purchases and
sales of securities on the Demat account are automatically made once transactions are executed
and completed.

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Objective of Demat System:-

India has adopted this system of electronic bookkeeping, eliminating the need for paper
when shares or securities are held in electronic form. Before the introduction of the depository
system by the Depository Act, 1996, the process of sale, purchase and transfer of shares was
difficult and there was a high risk of loss.

Basics of Stock Market:-

Investing in equity involves purchasing shares of a company listed on a stock exchange.

You can acquire these shares in two ways - either through the Primary Market, i.e., when a
company makes an offer to issue its equity for the first time (this is called Initial Public Offering
(IPO)) or through the secondary market, i.e. via a stock exchange. When you trade in equity
through a stock exchange, you have to make use of the services of a brokerage firm, which acts
as your agent whenever you buy or sell. Equity is considered a high risk-high return investment
avenue. This is because there is scope for considerable appreciation or loss of the capital that
you invest, depending on various factors such as the performance of the company that you have
invested in, general market conditions, the state of the economy, etc. However, it forms an
integral part of any well-balanced portfolio, since it is at one end of the risk-return spectrum.

How should I decide whether equity investing is right for me?

Equity is a must for any well-balanced portfolio. So, irrespective of whether you are a high
net worth investor or a small retail investor and irrespective of whether you have a large or timid
appetite for risk, you must hold some portion of your assets in equity. This is because it is the
only instrument that has the ability to truly deliver a high return, when held over a long period of
time. However, the amount of equity that you hold in your portfolio is a very subjective decision
and will depend upon various factors. These include your investment objectives, time horizon and
risk appetite. But as a general guideline, theres a rule of thumb that states that to decide upon
the proportion of your assets that should go into equities, reduce your age from 100 and thats

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the proportion of your money which should be put in equities. The remaining can be invested in
fixed income securities.

How should I study stocks before I make my selection?

Every investor must do some homework before investing money in equities

While recommendations and tips received from your broker, a friend, etc. may be the
starting point of your selection, let it not be the only reason that makes you purchase a
particular stock, even if these tips have come from market experts. Short list the shares
that you want to buy on the basis of your investment objective, risk profile and the stocks
fundamentals.
If you feel that the price of a stock is high, dont purchase it. Buy stocks that you believe
still have scope for appreciation.
Dont try to time your purchases. That could turn you into a speculator instead of an
investor.
Lastly, once you have purchased shares, if the business prospects of the company
change to its detriment, get rid of the stock. Dont hesitate to liquidate your portfolio before
your target time horizon if circumstances lead you to believe that its necessary.

How do I know whether I am paying the right price for the stock?

There are various factors that determine the value of a stock. Understanding these will
help you to pay a price that reflects the true value of a stock.

Demand and Supply:

In the short term, the basic economic theory of demand and supply determines a stocks
worth. So, when the demand for a stock exceeds its supply (that is, there are more buyers than
sellers), its price tends to rise. And, when supply overtakes demand (that is, sellers exceed
buyers), the stock loses value. However, these are short-term market trends, which tend to get
evened out over a period of time. In the medium to long-term, a stock is driven by the companys

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fundamental strength i.e. business potential, past performance, competence and credibility of its
promoters and management, etc.

Growth potential:

Investors are willing to pay a premium for stocks of companies that have the potential to
increase their revenues and net profits. The greater this growth potential, the higher the premium
given to the stock. If a company proves that it is capable of sustaining growth, the market will
continue to give it high valuations. And, thats likely to be the major driver for stock valuations.

Fundamentals: A companys growth outlook is linked to its business prospects and how
well its management is capitalizing on the existing opportunities. The quality of a companys
management is crucial. So, pay attention to the management practices of a company and its level
of corporate governance.

When should I buy to minimize my costs and sell to maximize the profits?

Buy low and sell high is the ultimate guide to successful stock investing. It is also the
reverse of what many investors do, although they dont intend to. They tend to buy high and sell
low because they use price, and in particular, the price movement, as their only signal to buy or
sell.

Investors are tempted to buy stocks that have shot up and are basking in the media
spotlight just to get a part of the action. They jump at a stock that is already trading at a premium
thats how they buy high. Ironically, if a stock has had a good run up it may be time to sell, not
buy (sell high).

On the flip side, when a stock price is falling, most investors may want to sell in a panic,
although the company has not lost any intrinsic value and still remains a sound investment thats
how they sell low. In fact, when a stocks price has fallen, its a great time to buy (buy low), if your
research on the company suggests that it is a good long term buy.

Experienced traders can make money jumping in and out of a stock thats caught the
publics attention, but its not a game for the inexperienced and it can definitely not be called
investing, in the true sense of the word. There are risks involved and tax consequences that
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apply to such trading, along with other issues, which means that most investors should leave this
tricky activity to short-term traders.

What is Asset Allocation?

Asset allocation means diversifying your money among different types of investment
categories, such as stocks, bonds and cash. The goal is to help reduce risk and enhance returns.

This strategy can work because different categories behave differently, Stocks, for
instance, offer potential for both growth and income, while bonds typically offer stability and
income. The benefits of different asset categories can be combined into a portfolio with a level of
risk you find acceptable.

Establishing a well-diversified portfolio may allow you to avoid the risks associated with
putting all your eggs in one basket.

Right allocation for an investor:-

Asset allocation decisions involve tradeoffs among 3 important variables:

Investors time frame

Their risk tolerance
Their personal circumstances

Edelweiss is one of the leading financial services company in India. Its current businesses
include investment banking, securities and retail broking and investment management. The core
inspiring thought of ideas creating wealth and values protecting it is translated into an approach
that is led by entrepreneurship and creativity and protected by intellectual rigor, research and
analysis. At Edelweiss you can build a personal relationship with our investment professionals.
We see investing from your perspective, and offer recommendations based on your needs and
preferences. To all the investors - From access to top research to investment guidance and
portfolio planning, we offer it all!

Chairman, CEO and Founder of Edelweiss. Mr. Rashesh Shah has previously worked
for ICICI (now ICICI Bank, Indias largest private sector financial conglomerate) where he

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handled a World Bank aided program for export- oriented projects. He was subsequently with
Prime Securities as Head of Research.

Mr. Shahs relentless focus is on organization building and human capital development. He has
been featured in a variety of publications, including The Far Eastern Economic Review, Business
India, Business World and The Economic Times. Mr. Shah earned an MBA from the Indian
Institute of Management, Ahmedabad and a Bachelors degree in Science from the University of
Bombay.

Its Current Businesses Include:

Investment Banking,
Securities Broking, and
Investment Management.
Edelweiss also provides a wide range of services to:
Corporations,
Institutional Investors
High Net-Worth Individuals

Services offered by the company:

Investment Banking.
Institutional investment.
Asset management.
Wealth management.
Private client brokerage.
Insurance brokerage.
Wholesale financing.

Various Products Offered by the Company:

Products: Stocks, Derivatives, IPO, MF, Strategies
Trading Accounts with different features: Trader, Investor
Brokerage Plans: To suit needs of every client

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 Customized investment Strategies
Manage all asset classes under My Portfolio
Financial Research on your fingertips
Objective of Study:-

1. To know the condition of equity market.

2. To know Pros and Cons involve in share trading.

Chapter- Research Methodology

Research Methodology is the science of methods for conducting research work

Research methodology is a systematic way, which consists of series of action

steps, necessary to effectively carry out research and the desired sequencing to these steps.

Formulating the objective of the study

Designing the methods of data collection
Selecting the sample plan
Collecting the data
Processing and analyzing the data
Reporting the findings

Objective of Study

Research Design

Sample Design

Report of findings
DataCollection
Data Analysis

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Hypothesis:-

For research study, I have consider customers on the basis of their income level and
also customer like fresher on job, middle age people and government servant. So on the basis of
these consideration I find that fresher and people with high earning are more interested in share
trading than other people who have entered in their family life. And the case with government
employees is that they are happy with whatever they are earning and not interested in investing
in stock market due to the fear of losing their money. Companies are now concentrating more on
middle class families because Indias most population is middle class and they are more
concentrating on saving their money, so its big opportunity for any broking firm to grab the
market.

Scope of study:-

This study will help to understand psychology of customer towards share trading and
there advantages. This will also help companies to understand what facility exactly customer
wants from them. So that it will help in improving companys overall internal environment to
increase customer. Consumer satisfaction and facilities to them. This study will also help
consumer to know which is the best option they have through which they can invest their money
and get very good return on it.

Data Collection:-

The study was conducted through the use of the primary and secondary data. The
various sources of the data collection are mentioned below:-

Primary data:-
Through customer survey by means of a closed ended questionnaire.
Through the interviews with the company employees.
Secondary data:-
Through the journal and magazines
Through the internet sites and various search engines.
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 The first part of the questionnaire was given to the sample to fill it by him.

The second part of the questionnaire was hold by the interviewee and which was filled by
him after consulting the sample.

However some of the portion of the report required Secondary data. So it was also
collected from some other sources like internet, magazines, news paper.

Research Tool Applied:-

The study is conducted through following tools which help to get more important and
sufficient data to understand peoples psychology and also help to solve the research problems.

Research Design:-

A research design is the arrangement of conditions for collection and analysis of the data
in a manner that aims to combine relevance to the research purpose with economy in procedure.
The research design used for this study is of the descriptive type. Descriptive research studies
are those studies which are concerned with describing the characteristics of a particular
individual or a group Research design is broadly classified into three types as

Exploratory Research Design

Descriptive Research Design
Causal Research Design
For the purpose of the present project the Descriptive type of research design can be said
to be most effective and most suitable, because in descriptive type of study the main emphasis is
laid down over the existing situations and not over the causes which determine such effects.
Thus for that purpose Descriptive type of study has been selected as it seems to be most
appropriate to fulfill the objective of the project.

Sample Size:-
The sample size consisting of 100 respondents were selected for the study. These are
people who are in working in good companies, some of them are government employees, some
of them are fresher on job, some are student, and some of them high earning salary. So on the
basis of these different factors their views are totally different.

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Sample Design:-

In the present survey study the sample design contained the list of the Stock dealers
and Stock brokers. Later on in the project certain other persons were contacted who were holding
useful information regarding the concerned field of study. Since it is difficult to contact the entire
population, sampling technique was adopted. The employees were interviewed using
convenience sampling techniques.
Plan of Analysis:-

The activity of data analysis should move according to following sub heads:_

Editing: The first task in data processing is the editing. (Errors and Omissions).
Coding: Coding is the process of classifying the information into meaningful categories.
(Tabulating and Analyzing data.)
Tabulation: Tabulation comprises sorting of the data into different categories and
counting the number of cases that belong to each category.
Analysis: Under this step various techniques and methods are applied for finding out the
desired meaning from the data that has been collected from the survey.

Limitations of the study:-

The information regarding the investors is being collected through market survey where
there are some discrepancies on the part of the clients who do not deliver the right
information.
The questionnaire model sometimes does not suit all the clients.
There are changes happening in the industry every time and due to this some of the
information collected becomes obsolete or irrelevant for the study.
Some of the secondary data collected becomes outdated with the passage of time but
overall the information so collected is relevant for the study.

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Chapter Review of Literature

The purpose of the literature review was to examine research in the following areas like
importance of the selection of client, questions characteristics, training to me, demographic
characteristics such as sex, race, and age of customer and the relationship between company
and them, suggestions and improvement of facilities.
Doing training was really an opportunity before me when I could convert my theoretical
knowledge into practical and of real world type. Fortunately, the company I got is a true follower
of the various principles of management and also one of the leading companies in its segment of
the industry. The working environment that I was being provided was extraordinary and help me
a lot in delivering my work properly and with full potency of mine. Edelweiss Financial Services
Ltd. is one of the famous names in the broking and financial service sector of financial service
industry.
The graph of sales of product is best in industry as compared to their competitors. I did
my summer training project at Edelweiss Financial Services Ltd. pune, where I found all the
professionals are very much committed to their work as well as they were all professional
enough. This helped me a lot in getting a good deal of exposure. As I had to consult the channel
partner, I felt myself, in the beginning, in a bit problem. But the cooperation of my superior at the
work induced confidence in me to deal with my problems whenever they came.
During my training program I saw how company works actually. My work was to open new
Demat Account for new customer and I was successful in that. During my training there were
some problems with customer satisfaction. They said that brokerage is too high, they are having
problem in trading, nobody there to solve their problem, and sometimes no one gives respond to
their queries.

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 Problem Formulation Stage:-

In this stage I found out the problem like where company is lacking behind, Why
customer are not satisfied with service, What are pros and cons of trading, what is problems
faced by customer during trading. So this stage is very important during formulation of problem.

1. Literature Research:-

During this stage, I found many data to know the problem of study like, past report, past
data, existing customer phone calls, peoples view during questionnaire towards trading and
towards company, during whenever I went to field work. So there are many things that help to do
this study and I started my search on it.

2. Data Evaluation:-

In data evaluation literature review help me to understand organizational culture, how to

solve problems of customer because in todays world Customer is King. Understanding what
makes customer satisfied. I analyse all the activities in company and their data so it helped me to
understand problem and do research on it.

3. Analyze and Interpret findings:-

From above Literature I can conclude that, organization behavior, customer satisfaction is most
important to survive any organization. That helps company and their employee to learn and grow
along with organization. What are the importance of customer satisfaction and pros and cons of
study?

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 Chapter Profile of The Company

Introduction:-
Edelweiss Capital Limited (www.edelcap.com), incorporated on 21st November 1995,
today has emerged as one of Indias leading diversified financial services group. The Edelweiss
Group offers one of the largest range of products and services spanning varied asset classes and
diversified consumer segments. The Groups product offerings are broadly divided into
Investment Banking, Brokerage Services, Asset Management and Financing. The companys
research driven approach and consistent ability to capitalize on emerging market trends has
enabled it to foster strong relationships across corporate, institutional and HNI clients. Edelweiss
Group now employs around 2575 employees after Anagram acquisition, leveraging a strong
partnership culture and unique model of employee ownership. It now operates through 327
offices, 33 franchise led offices and over 1300+ sub brokers in all major cities in India after the
recent acquisition of Anagram Capital. The Edelweiss Group is a conglomerate of 48 entities
including 43 Subsidiaries and 4 Associate companies (December 10), which are engaged in the
business of providing diverse financial services. It is a listed company since December 2007
under the symbols NSE: EDELWEISS, BSE: 532922 and Bloomberg: EDEL.IN.

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Evolution of Edelweiss:-

Business Overview:-

Edelweiss operations are broadly divided into Agency and Capital business lines. The
Agency business line includes Investment Banking, Broking - Institutional, HNI and Retail, Asset
Management and Investment advisory and distribution services. The Capital business line
includes Financing and Treasury Operations. The strategies employed ensure that there is a

21
balanced mix of revenues among the three revenue streams viz., Agency fee & commission,
Treasury operations income and Interest income, thereby achieving the intended diversification in
revenue streams.

Investment Banking:-

Edelweiss has one of the most extensive product offerings in Investment Banking in India,
catering to different market and client segments. The verticals within Investment Banking include
Equity Capital Markets which include IPOs/FPOs, QIPs, Rights and Open Offers, and Advisory
services which offer Mergers & Acquisitions Advisory, Private Equity Syndication, Structured
Finance Advisory and Infrastructure Advisory. Edelweiss also offers full bouquet of products in
Debt Capital Markets including Debt Syndication and broking.

HNI Broking:-
Edelweiss offers dedicated broking services to high net-worth individuals with a strong
emphasis on building long-term relationships with clients. Product offerings include specialized
trading execution for active trading clients and structured products backed by high quality
execution and reporting.

Retail Broking & Distribution:-

Retail Broking and Distribution are the new initiatives of the Group under its Retail
Business strategy. The organic Retail broking business is through the online portal
www.edelweiss.in and provides advisory and research based broking services supported by high
quality execution platform and best in class reporting. It currently has over 90,000 clients under
the online broking. Edelweiss has also completed the acquisition of Anagram Capital Limited in
July 10. This adds arounds 220,000 clients, over 1300 sub-brokers, 138 own offices and 33
franchise led offices to Edelweiss group.

Wealth Advisory & Investment Services:-

The Primary focus is on understanding each client's profile including life style, risk
appetite, growth expectations, current financial position and income requirements to create
comprehensive and tailored investment strategies. The broad range of offerings includes a truly

22
multi-asset class allocation advisory to Structured Products, Portfolio Management, Mutual
Funds, Insurance, Derivatives Strategies, Direct Equity, Private Equity, and Real Estate Funds
etc.

Asset Management:-
Alternative Asset Management currently focuses largely on offshore institutional
investors offering advisory/management expertise for India focused Multi-Strategy Fund, Real
Estate Fund and a Special Opportunities Fund.
Treasury:-
The Treasury operations in Edelweiss are similar to that of a Treasury in a Commercial
Bank and focus on liquidity management and capital preservation. This business adopts a multi
strategy/multi-book approach to diversify and grow its portfolio while imparting liquidity in the
balance sheet.

Growth Initiatives:-
Edelweiss has entered into an agreement with Tokio Marine Holdings, Inc., one of the
worlds leading insurance groups headquartered in Japan, to establish a Life Insurance Joint
Venture in India subject to regulatory approvals. It has also completed the acquisition of
Anagram Capital and it has also launched home loans business recently. It also has received the
RBI approval for setting up an asset reconstruction company. These initiatives would lead to long
term investment opportunities for the Group in the financial services industry while enlarging its
retail footprint.

Corporate Structure:-

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Edelweiss Capital Limited has 100% holding in its subsidiaries unless specifically mentioned in
parenthesis, as on 31st December 2010.

Shareholding Pattern:-

24
Board of Directors:-
The Edelweiss Board comprises of three independent directors and one non-independent
non-executive director out of a total of six directors, each of whom brings in his own expertise in
diverse areas. The focus is on strong corporate governance. The directors of the company are:

Financial Performance at a Glance:-

Edelweiss over the past years has delivered strong operating and financial performance
since its inception. It has consistently demonstrated a strong track record of high growth and
profitability. Its Revenues and PAT have grown at an 11-year CAGR of 80% and 75%
respectively till FY10. As at the end of 31st December 2010 Edelweiss Groups Net worth
excluding minority interest stood at over `23.05 billion (`27.90 billion including minority interest),
indicating a strong balance sheet. Equity capital is the primary source of funding for the group
besides debt. The leverage as on 31st December 2010 is 1.93 times including the Minority
Interest indicating a healthy position whereby the balance sheet can be further levered easily.

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26
Product of edelweiss :-

1.Edelstar:- it is the most popular product of edelweiss. Its comes in every Friday of week.

Every Friday one company is suggested by edelweiss to buy.

3 month is a time limit of every edelstar.
Edel star is suggested on basis of fundamental as wel as
technical analysis..

Edelstar provides information like:-

Balance sheet of 10 years

Balance sheet of 5 competitor of 5 year
Information about their product and services
Internal and external news .like swot analysis, media news etc
Merger and acquisition.
Research and strategy like current share price, target price
,stop loss.

Edelstar has edelscore which is base on past performance.

Score- 1to 5- Average performance

6 t0 7-good performance
7 to 10-excellent performance.

On an average one edelstar provide minimum 5 to 6% return.

Why edel star launch on Friday?

27
Edel star launch on Friday because Saturday and Sunday market are close so investor will get
more time to study market .

Technical weekly pics:- it is the popular product of edelweiss. Three company is suggested by
edelweiss to buy.

3 month is a time limit of every Twp

Twp is suggested on basis of fundamental as wel as technical
analysis..

Twp provides information like:-

Balance sheet of 10 years

Balance sheet of 5 competitor of 5 year
Information about their product and services
Internal and external news .like swot analysis, media news etc
Merger and acquisition.
Research and strategy like current share price, target price
,stop loss.

Twp has edelscore which is based on past performance.

Score- 1to 5- Average performance

6 t0 7-good performance
7 to 10-excellent performance.

On an average one Twp provide approx 8%.

Edel tracker :- edel tracker for those individual who are interested to trade in delivery (long
term)mode.

More than three company is suggested by edelweiss to buy.

1 t0 6 month is a time limit of every edel tracker.
Edel tracker is suggested on basis of fundamental as well as
technical analysis..

Twp provides information like:-

Fundamental and technical analysis

28
 Balance sheet of 10 years
Balance sheet of 5 competitor of 5 year
Information about their product and services
Internal and external news .like swot analysis, media news etc
Merger and acquisition.
Research and strategy like current share price, target price,
stop loss.

Edel tracker has edelscore which is based on past performance.

Score- 1to 5- Average performance

6 t0 7-good performance
7 to 10-excellent performance.

On an average edel tracker share are those share which give less return in comparison to edel
star and Twp. It gives maximum 6% of return.

Quant basket:- quant basket is a product which provide group of company.

There are minimum 6 baskets in quant basket.

In quant basket profit is evaluate in monthly basis.

Two types of provide information:-

Quant basket is suggested on basis of fundamental as well as technical analysis..

Twp provides information like:-

Balance sheet of 10 years

Balance sheet of 5 competitor of 5 year
Information about their product and services
Internal and external news .like swot analysis, media news etc
Merger and acquisition.
Research and strategy like current share price, target price
,stop loss.

Twp has edelscore which is based on past performance.

Score- 1to 5- Average performance

29
 6 t0 7-good performance
7 to 10-excellent performance.

On an average every company provide minimum 4% of return and total return become 24%.

Analysis of equity market

Equity market is a public entity for the trading of company stock (shares) and derivatives at an
agreed price; these are securities listed on a stock exchange as well as those only traded
privately.

The total world derivatives market has been estimated at about $791 trillion face or nominal value
when the objective of the analysis is to determine what stock to buy and at what price, there are
two basic methodologies

1. Fundamental analysis maintains that markets may misprice a security in the short run but
that the "correct" price will eventually be reached. Profits can be made by trading the
mispriced security and then waiting for the market to recognize its "mistake" and reprise
the security.
2. Technical analysis maintains that all information is reflected already in the stock price.
Trends 'are your friend' and sentiment changes predate and predict trend changes.
Investors' emotional responses to price movements lead to recognizable price chart
patterns. Technical analysis does not care what the 'value' of a stock is. Their price
predictions are only extrapolations from historical price patterns.

Fundamental analysis involves financial statements and health, its management and competitive
advantages, and its competitors and markets. It focuses on the overall state of the economy,
interest rates, production, earnings, and management.

Fundamental analysis is performed on historical and present data, but with the goal of making
financial forecasts. There are several possible objectives:

To conduct a company stock valuation and predict its probable price evolution,
To make a projection on its business performance,
To evaluate its management and make internal business decisions,
To calculate its credit risk.

Technical analysis term used to denote a security analysis discipline for forecasting the direction
of prices through the study of past market data, primarily price and volume
30
 Behavioral economics and quantitative analysis incorporate technical analysis.

Chapter Analysis and Interpretation of Data

Data analysis is the next step after the field survey is over. This portion of the research
requires a lot of attention and patience, as the project may be distracted from its objectives very
easily if the analysis has not been performed with due care and diligence. In this process all the
information received is transformed in to some meaningful form of presentation such as tables or
charts.

31
 As I took sample size of 100 people. According to their gender, age, salary,
professionalism, interest of invest, which firm they would like to invest and further questions
asked according to need of research study.

As Sample size 100 out of which 90 are male and 10 are female:-

Male Female

90 10

10
%

male
female

90 %

Following graph shows the age of respondents and the target respondents were only
those individuals whose age is above 25 years:-

>25 yr 25-30 yr 30-40 yr 40-50 yr <50 yr

10% 20% 25% 30% 15%

32
 > 25 years
< 50 years
10%
15%
25-30 years
20%

40-50 years
30%
30-40 years
25%

Following
graph shows the occupation of the Respondents:-

Self Employed Businessman Salaried Professionals

9% 20% 54% 17%

OCCUPATION
Self Employed
Businessman
9%
20%
Professionals
17%

Salaried
54%

Graph

below shows the annual income of the respondents. Only those respondents are
considered whose annual income is above 3 lakh rupees per annum. Even the target

33
customers for the company were only those individuals whose annual income is above
Rs. 300000

>300000Rs. 3-6 lac 6-10lac <10 lac

7% 56% 35% 3%

ANNUAL INCOME
< 1000000
Rs. 600000- Rs. > 300000 Rs.
100000 0 3% 7%
35%

Rs. 300000-
600000
56%

Graph below shows the preferred sectors for investment in equities. The most preferred
sector is financial sector as it is expected that this sector will grow very fast. The second
most preferred sector is Oil & Gas sector because in this sector the major players are the
Government owned industries and as the economy will develop the consumption of oil
and gas will increase. The third most preferred sectors are FMCG and TELECOM sectors.
FMCG sector stocks are the defensive stocks and TELECOM sector is one of the fast
growing sectors.

IT Telecom FMCG Pharma Oil & Real Power Financial

Gas Estate

8% 13% 12% 10% 12% 10% 10% 25%

34
 Preferred Sector to invest in Equities
DIVERSIFIED
0%

TELECOM FMCG
IT 13% 12% PHARMA
8% 10%

FINANCIAL
25% REAL ESTATE
10% OIL & GAS
12%

POWER
10%

Following graph shows the different preferred tools of investment by the individuals. The
most preferred tool is the Mutual Funds. After the financial crisis and the collapse of stock
market many investors had lost their money and their confidence is shacked. Moreover
mutual funds are more safer investment instruments in comparison to others and also the
rate of return on them is high and even the risk is lower than equities and they are
preferred because investing in them exempted from taxation. Mutual funds are followed by
the bonds which are risk free and also the rate of return is good.

Derivatives Mutual Funds Bonds Insurance Equity

10% 3% 20% 15% 18%

35
 PREFERRED TOOL OF INVESTMENT IN
CAPITAL MARKET
Derivatives
10%
Equity Mutual Funds
18% 37%

Bonds
20%

Insurance
15%

Share Khan is the most preferred broking house followed by the India Bulls and then
MotilalOswal broking house. Edelweiss is least preferred because it has just entered into
retail segment in March 2008, and it will take some time for it make its presence felt in the
retail segment. Earlier it was catering only to the HIGH NET WORTH INDIVIUALS (HNIs).

Edelweiss
Religare 4%
6% Sare Khan
Kotak Mahindra 22%
6%

India Infoline
10%

MotilalOswal
ICICIDirect.com 18%
14%

Indial Bulls
20%

36
The following chart shows the reason for the collapse of Sensex. Most of the respondents
believed that subprime crisis was the main reason for the downfall of Sensex as it forced
the FIIs to withdraw their money from Indian markets back to their parent countries. The
second most believed reason is the bankruptcy of the financial institutions.

Negative
Market
REASON FOR THE DOWNFALL OF SENSEX FROM
Sentiments 21k TO 8k Adverse Capital
9%
Shock
4%
Credit Crunch Constant
7% Depreciation of
Home Currency
14%

Bankruptcy of Big
Financial Institutions
Sub Prime Crisis
22%
44%

EXPECTATAION OF MARKET RECOVERY

Above 24 months
5%
Within 1 month
0% 1-6 months
21%
12-24 months
29%

6-12 months
45%

Questionnaire through which I came to know Psychology of people towards Share

37
 Trading.

Q. Through which of the channels do you usually buy a financial product?

Internet Broker Direct from Company

5% 75% 20%

Internet Broker Direct From Company

5%

20%

75%

When it comes to channels of buying a financial product most of the people prefer to buy it
from a broker as it is the most trusted source and they have a good market and product
knowledge. Many people like to inquire themselves directly from the company while 5% of the
people look for internet as a medium. This graph shows that broking business is a profitable
one as it attracts the large volume of potential customers.

Q. How Do You Come Know About Edelweiss?

Internet Print & electronic Reference Group By Chance

13% 21% 27% 39%

38
 45

40

35

30

25

20

15

10

0
Internet Print & Electronic Reference Group By Chance

The above responses shows that most of the people came to know about Edelweiss by
chance while many through reference group. This shows that the company needs to work a
lot towards creating Brand Awareness. Reference group is a good source of information
about the company.

Q. Are you aware of broking facilities given by Edelweiss Financial Services Ltd.?
Yes No

40 60

60
50
40
30
20
10
0
Yes
No

39
60 % of people are not aware of the share market facilities given by the Edelweiss Company
and 40% of people are aware of it.
Q. Are you using Demat Account from Edelweiss?
Yes No

75% 25%

80%
70%
60%
50%
40%
30%
20%
10%
0%

Yes
NO

People who knows Demat Account facilities of Edelweiss, out of which 75% people are using
these facility and 25% are not and moving towards other companies.
Q. Best company in Broking according to you?
ICICI Share Motilal India India Religare Edelweiss
Direct Khan Info line Bulls

30 15 15 12 11 9 8

40
 30%
25%
20%
15%
10%
5%
0%

According to survey carried by me through questionnaire ICICI direct is more preferable for most
of the people. When it comes to the option they slightly move towards companies which are well
known to them.
Q. Factors affecting the choice of company?

30%
25%
20%
15%
10%
5%
0%

Through this question we can say that Brand image of any company that does matters for
customer. After that customer will go with low broking charges by any company. And third and
most important factor is Research & Development department of company.
Analysis of questionnaire with existing clients:-
Same questions were asked to the existing clients of the company. And following is their
analysis.
Association with the company

41
 6 Months 1 Year 2Year More than 2yr

8%
11%
43%

38%

Most of the customers are new to the company. It can be conclude that company has done good
job in case of sales.
Satisfaction Level of Customer

50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Extreamly Satisfied Neutral Not satisfied
satisfied

49% of the customers are satisfied and 8% dissatisfied. The company needs to work on these
customers and minimize their dissatisfaction.

Expectation of Customer

42
 Reduction of brokrage charge Improve Serviece Quality
Customer Frendly Norms Other Tips

13%
34%
22%

31%

Most of the customers want the brokerage to be reduced and services to be

improved.

43
 SWOT Analysis of Edelweiss Financial Services Ltd..

Strengths:-
Large Workforce
Diversity in Experience
Young and Energetic
Ownership of New Technology

Weakness:-
Limited Facilities
Poor coordination
Low Productivity
Lack of Competency and Skill
Unrealistic Contract Duration
Labor Problem

Opportunities:-
Utilization of Latest Construction Technology Method
Association with Large Projects Like Real Estate
Geographical Focus

Threats:-
Defects in Design
Changes in Specification
Slow Verification
Late Issue of Instruction
Delay of Work Approval
Proceeding Pending
Any Failure will affect company

44
 Loss of Key people

Pros:-

1. Sure money returns

People can benefit from better returns from an active stock trading that just buying and
holding the investment.

2. Popularity
Before choosing one or another trading stock, you must be popular with it. Try to find as
much information as you can in order to understand each of them. Then, choose.

3. A variety of choices
There is a variety of stocks people may choose between but the most important is how to
make the best choice. Try to find stocks that have moving prices.

Cons:-

1. Leverage
Leverage means a flaw of stock trading. The flaw for this trading is lower than compared
with future trading or with Forex.

2. The costs
While the price cannot be compared to other types of trading, the stock trading virtually
becomes impossible for those people who dont get some money before they can start
investing.

3. Rule on short selling

The traders have to wait for a quite long time before the stock price ticks up and theyll get
a chance to short selling it. This way, the profits of a trader will be limited. The Forex
trading does not have such a policy.

45
 But, remember that all of the trading systems like Forex, Stock or Future also have their
advantages and disadvantages.

Conclusion: So if you are a wise trader, then its just up to you to think about these aspects.
It would be better if you can estimate it properly before choosing any of those systems.

Online trading benefits:-

1) fees and commissions are much lower in comparison with traditional ways of trading;
2) an opportunity to act on price movement immediately;
3) direct access to information on real time prices and charts;
4) absence of broker gives any trader an opportunity to take his/her own decisions without hurry;
5) completing or denying a trade can be performed within a few seconds so it's easier to manage
your investments and shorten your losses.

46
 Chapter Summary of Findings, Conclusions and Recommendations

Summary of Findings:-

The Management Efficiency ratios indicate that since Edelweiss moved into retail in 2007,
it has been doing well in terms of profit but after 2008 due to recession profit of Edelweiss
has reduced but still the company is in a better position than some of its competitors.
Edelweiss hasnt been financially stable according to the financial stability ratios. The
assets of Edelweiss increased in the year 2008 and then immediately decreased to a great
extent in 2009.The funds borrowed have reduced in 2009 in comparison to 2008 which
shows a slight improvement for Edelweiss.
According to the profitability ratios, Edelweiss displays a trend of reducing net profit
through the three years. This is due to increase in the shareholders funds and also due to
recession which affected the net profit of Edelweiss in 2009.
Taking into account all three years, Edelweiss has been efficient with respect to certain
ratios but hasnt been up to the standards. Till 2008, it has been able to collect it debts
efficiently but then due to recession this ability suppressed. Also the market price per
share of Edelweiss had a reducing trend which lowered the earnings per share and the
price earning ratio. But at the same time Edelweiss increased the dividend and reduced
the debts making it efficient in certain areas.
Even though companies net profit has been decreased than also there is a increase in
Dividend Per Share over a period of time, which means company is attracting its
shareholders.
The debt equity ratio doesnt show much variation. This indicates that every year the
increase of decrease in the debt and equity has more or less been proportionate.
Current ratio is on a brighter side though it has declined as compared to 08 in 09. This
brings the company in a better position as far as the creditors are concerned.
Debtors ratio had increased in 08 but came down in 09, this is result of the declined
sales of the company.

47
 A decline in interest coverage ratio is an indicator of the facts that the profit before interest
and tax of the company has reduced. Though it has improved in 09 as compared to 08,
the improvement is not substantial.
An obvious impact of decline in sales is on the profits ratios of the company. Inspite of a
17.18% decline in sales in 09 as compared to 08, the company has been able to maintain
a positive and a reasonably good profit position.
Return on capital employed by the company is showing reducing trend. The capital base
of the company has increased in 08 and has remained constant in 09. However, the ROE
ratio has been reduced by 50%. This is not good news for the owners of the company, as
profitability of their investment in the company has been reduced dramatically. Similar
analysis can be made for net worth ratio as it has also declined drastically.
Despite of not so favorable result in 09 as compared to 07 and 08, the company has
declared a good divided for the shareholders. This shows that the company is more
interested in pleasing the shareholders than accumulating funds for the future plans of the
company. This policy is further indicated by an improved dividend payout ratio of the
company.
A decline in the earning per share is as a result of decline in the profits of the company.
Thus amount of profit available per share has gone down.
Increase in the debt collection ratio is not a good sign, as it means that the companys
collection department is taking more time to recover funds from the debtors. This is even
worse as the companys sales have reduces. Thus the company has not been able to
manage the debtors properly, despite of reduction decline in sales.
Proprietary ratio is showing an improvement. This indicates that the company has enough
assets to cover the proprietary funds (owners fund).
Capital gearing ratio indicates the risk taking capacity of the company. Higher ratio is risky,
but profitable for the equity shareholders. On the other hand lower ratio is safe, but not
preferred by the equity shareholders. In the present case a decline in this ratio indicates
that the risk to the company has reduced, but this might not go well with the shareholders.
Recommendation:-

48
 Edelweiss has been doing well for quite some time now but lately due to recession its net
profit has been affected, so certain measures much be taken by Edelweiss to cut down on
its expenses.
Edelweiss has been repaying the debts borrowed efficiently, therefore it must continue to
do so even in tougher times when the funds borrowed are of higher amount.
Through retail Edelweiss is doing average profit, hence Edelweiss can think about going in
for new ventures. They can introduce mutual funds and allow it be handled online like their
other features on the online trading portal.
Attracting customers is more of a concern for Edelweiss because of lot of competition, so
they need to come up with various schemes and plans which will pool in more customers.
These plans must be beneficial for the customers which will make them give more
references, thus increasing customers for Edelweiss which in turn gives the company
more revenue.
The companys customer service is very poor, as their main focus is attraction of
customers. The company prefers only target rather than welfare for employees.
The companys stock price once reached to a peak height of Rs.1,500 per share but at
present it down to Rs.520 per share it shows the company has doing well in past but
because of recession the FIIs (Foreign Institutional Investors) pull out lot of money, still it
was able to sustain its market image.
There are many facilities provided by Edelweiss to improve its market value and it is more
helpful for customer in satisfaction point of view.
As Edelweiss team is doing well to get the business and why this happening because their
more intention towards satisfaction of customer. Customer is a person where ever he gets
satisfaction he will go towards it and that what Edelweiss is doing.
If Edelweiss is continue with this performance, It will not take much time to be a famous
broking firm.

Conclusion:-

49
 Edelweiss Capital Ltd. as a company has been successful since it moved into retail in
2007 but post recession in 2008 the company suffered a setback as a result of reduction in
profit. On a positive note the company always focuses on long term goals and more focus
on customer satisfaction that helped Edelweiss to grow in market.
In the last three years the earnings per share of Edelweiss Capital Ltd has shown very
good growth due to aggressive and passionate sales trading team, they are able to
seamlessly execute complex trades, across the entire spectrum off trading strategies.
Their more concentration towards customer satisfaction and they are doing it brilliantly.
Edelweiss Capital Ltd. has been performing well when compared with some of its
competitors. Some of the products and services offered by Edelweiss are quite unique
which gives them an upper edge over other competitors. And this is the reasoned why
they are successful in broking market. They came to know what customer wants and how
can they satisfied them
There are many pros and cons and customer now understand importance of share trading
through which they can earn money by doing easy task whether it is online or off line.

References and bibliography

50
Resources and facilities which I would like to use these are listed below:

Concerned facultys guidance

Internet like www.edelweiss.in, Wikipedia
Magazine
Newspaper like Economic Times
My knowledge about stock market and experience with customer in Edelweiss Financial
Services Ltd.

All the data which I have collected from company and customer perception, thinking
towards share trading.

51