A

SUMMER TRAINING PROJECT REPORT

ON
Commodity Market Of India
AT

Submitted in partial fulfillment of the requirement

For the award of degree
Of
P.G.P.G.B.M
SESSION (2014-2016)

SUBMITTED TO: -

SUBMITTED BY:-

XCELLON SCHOOL OF BUSINESS

Name:- Nikunjsinh B Sodha

AHMEDABAD

College Roll No:-M00(241)

Page
1

DECLARATION

I, Sodha NIkunj B , student of MBA IInd Semester, studying at XCELLON School

of Business, Ahmedabad, hereby declare that the summer training report on
Commodity market of india submitted to XCELLON School Of Business,
Ahmedabad in partial fulfillment of Degree of PGPM is the original work conducted
by me. The information and data given in the report is authentic to the best of my
knowledge. This summer training report is not being submitted to any other
University for award of any other Degree, Diploma and Fellowship.

Sodha NIkunj B

Page
2

Acknowledgement

This project report bears the imprint of those who had rendered their wholehearted
support and encouragement without whose help this effort of mine would be in vain. I
express my deep sense of gratitude and sincere thanks to my project guide Prof.
BHAVIK SHAH for his directions, suggestion and information provided which were
of utmost importance for the successful completion of the project. I am also thankful
to Dr.JITENDRA SHARMA for his proper guidance. I am thankful to the
employees MARVADI SHARES AND FIANCE LIMITED of for assisting me in
the timely completion of project.

At last, I also thank to my family and my friends those helped me in my

training period and in the completion of project.

Page
3

PREFACE
To survive in a competitive environment, theoretical knowledge must be
supplemented with practical knowledge. Being a student, project study forms an
essential part of our course and bridges the gap between theoretical knowledge and
practical knowledge.
Financial market is most interesting and deep subject to study and analysis. It is most
fluctuated market so it creates suspense every movement. Mutual fund is in emerging
trend.
This motivated us to take up the study of financial market .This project deal with
various aspect of stock market like IPO, Online trading, Regulatory frame work etc.
.
This project gave me an opportunity to raise our level of knowledge about financial
market.

Page
4

INDEX
CHAPTER -1
1.1-Industry analysis..7-12
1.2-Commodity industry analysis..13-14
1.3-Need for commodity industry.15
1.4-Portel five model 16-19
1.5-Major player.20-23
1.6-Functioning of industry24
CHAPTER-2
2.1-Company analysis.

2.2-Company detail..25
2.3-History of marwadi 26-28
2.4-Marwadi story.....29
2.5-Company philosophy.30
2.6-Mission &vision..31
2.7-Milestones32
2.8-Organisation structure 33
2.9-Branches34
2.10-Highlights35-36
Page
5

 2.11-Company information.37
2.12-Board of directors...38
2.13-Time keeping system & membership...39
CHAPTER-3
Detail of department
3.1-Opration department....41-44
3.2-Finance department..45-47
3.3-Marketing department..48-55
3.4-Humanresarch department...56-58
3.5-Product&searvice.59-74
3.6-Swot analysis ..75-76
CHAPTER-4
4.1-Task assigned77
4.2-Sip learning ..79
4.3-Conclusion...80
4.4-Bibliography.81

Page
6

Chapter : 1
1.1-Commodity Industry Analysis
INTRODUCTION
Indian markets have recently thrown open a new avenue for retail investors and traders to
participate commodity derivatives. For those who want to diversify their portfolios beyond shares,
bonds and real estate, commodities are the best option.
Till some months ago, this wouldnt have made sense. For retail investors could have done very
little to actually invest in commodities such as gold and silver or oilseeds in the futures market.
This was nearly impossible in commodities except for gold and silver as there was practically no
retail avenue for pumping in commodities.
However, with the setting up of three multi-commodity exchanges in the country, retail investors
can now trade in commodity futures without having physical stocks.
Commodities actually offer immense potential to become a separate asset class for market-savvy
investors, arbitrageurs and speculators.

Retail investors, who claim to understand the equity

markets, may find commodities an unfathomable market. But commodities are easy to understand
as far as fundamentals of demand and supply are concerned. Retail should understand the risk
advantages of trading in commodities futures before taking a leap.

Historically, pricing in

commodities futures has been less volatile compared with equity and bonds, thus providing an
efficient portfolio diversification option.
Page
7

In fact, the size of the commodities markets in India is also quite significant. Of the countrys GDP
of Rs.13,20,730 crore( Rs.13,207.3 billion), commodities related ( and dependent) industries
constitute about 58 per cent.
Currently, the various commodities across the country clock an annual turnover of Rs.1,40,000
crore ( Rs.1,400 billion). With the introduction of futures trading, the sizes of the commodities
market grow many folds here on.

DEFINITION OF COMMODITIES
Any product that can be used for commerce or an article of commerce which is traded on an
authorized commodity exchange is known as commodity. The article should be movable of value,
something which is bought or sold and which is produced or used as the subject or barter or sale. In
short commodity securities.
In current situation, all goods and products of agricultural (including plantation), mineral and
fossil origin are allowed for commodity trading recognized under the FCRA.

The national

commodity exchanges, recognized by the Central Government, permits commodities which include
precious (gold and silver) and non-ferrous metals: cereals and pulses; ginned and un-ginned c otton;
oilseeds, oils and oilcakes; raw jute and jute goods; sugar and gur;potatoes and onions; coffee and
tea; rubber and spices. Etc.includes all kinds of goods.

Forward Contracts (Regulation) Act

(FCRA), 1952 defines goods as every kind of movable property other than actionable claims,
money and
In the world of business, a commodity is an undifferentiated product whose market value arises
from the owners right to sell rather than to use. Example commodities from the financial world
include oil (sold by the barrel), wheat, bulk chemicals such as sulfuric acid and even pork bellies.

Page
8

1.2-NEED OF COMMODITY MARKET IN INDIA

Achieving hedging efficiency is the main reason to opt for futures contracts. For instance, in
February, 2007, India had to pay $ 52 per barrel more for importing oil than what they had to pay a
week ago. The utility of a futures contact for hedging or risk management presupposes parallel or
near-parallel relationship between the spot and futures prices over time. In other words, the
efficiency of a futures contract for hedging essentially envisages that the prices in the physical and
futures markets move in close unison not only in the same direction, but also by almost the same
magnitude, so that losses in one market are offset by gains in the other.
Of course, such a price relationship between the spot and futures markets is subject to the amount of
carrying or storage costs till the maturity month of the futures contract. Theoretically ( and ideally),
in a perfectly competitive market with surplus supplies and abundant stocks round the year, the
futures price will exceed the spot price by the cost of storage till the maturity of the futures contract.
But such storage cost declines as the contract approaches maturity, thereby reducing the premium or
contango commanded by the futures contract over the spot delivery over its life and eventually
becomes zero during the delivery month when the spot and futures prices virtually converge. The
Page
9

efficiency of a futures contract for hedging depends on the prevalence of such an ideal price
relationship between the spot and futures markets .

1.3-What can commodity market offer?

If you are an investor, commodities futures represent a good form of investment because of the
following reasons..
High Leverage The margins in the commodity futures market are less than the F&O section
of the equity market.
Less Manipulations - Commodities markets, as they are governed by international price
movements are less prone to rigging or price manipulations.
Diversification The returns from commodities market are free from the direct influence of the
equity and debt market, which means that they are capable of being used as effective hedging
instruments providing better diversification. If you are an importer or an exporter, commodities
futures can help you in the following ways
Hedge against price fluctuations Wide fluctuations in the prices of import or export products
can directly affect your bottom-line as the price at which you import/export is fixed beforehand. Commodity futures help you to procure or sell the commodities at a price decided months
before the actual transaction, thereby ironing out any change in prices that happen subsequently.
If you are a producer of a commodity, futures can help you as follows:
Lock-in the price for your produce If you are a farmer, there is every chance that the price
of your produce may come down drastically at the time of harvest. By taking positions in
commodity futures you can effectively lock-in the price at which you wish to sell your produce
Page
10

 Assured demand Any glut in the market can make you wait unendingly for a buyer. Selling
commodity futures contract can give you assured demand at the time of harvest. If you are a
large scale consumer of a product, here is how this market can help you.
Control your cost If you are an industrialist, the raw material cost dictates the final price of
your output. Any sudden rise in the price of raw materials can compel you to pass on the hike to
your customers and make your products unattractive in the market. By buying commodity
futures, you can fix the price of your raw material.
Ensure continuous supply Any shortfall in the supply of raw materials can stall your
production and make you default on your sale obligations. You can avoid this risk by buying a
commodity futures contract by which you are assured of supply of a fixed quantity of materials
at a pre-decided price at the appointed time.

1.4-Commodities exchanges
A brief description of commodity exchanges are those which trade in particular commodities,
neglecting the trade of securities, stock index futures and options etc.,
In the middle of 19th century in the United States, businessmen began organizing market forums to
make the buying and selling of commodities easier. These central market places provided a place
for buyers and sellers to meet, set quality and quantity standards, and establish rules of business.
Agricultural commodities were mostly traded but as long as there are buyers and sellers, any
commodity can be traded.
The major commodity markets are in the United Kingdom and in the USA. In
India there are 25 recognized future exchanges, of which there are three national
level multi-commodity exchanges. After a gap of almost three decades, Government of India has
allowed forward transactions in commodities through Online Commodity Exchanges, a
modification of traditional business known as Adhat and Vayda Vyapar to facilitate better risk
coverage and delivery of commodities.
Page
11

The three exchanges are

National Commodity & Derivatives Exchange Limited ( NCDEX)
Multi Commodity Exchange of India Limited ( MCX)
National Multi-Commodity Exchange of India Limited ( NMCEIL)
All the exchanges have been set up under overall control of Forward Market Commission (FMC) of
Government of India.

1.5-Forward market commission:The Forward Markets Commission (FMC) is the chief regulator of commodity futures markets
in India. As of July 2014, it regulated Rs 17 trillion[1] worth of commodity trades in India. It is
headquartered in Mumbai and this financial regulatory agency is overseen by the Ministry of
Finance. The Commission allows commodity trading in 22 exchanges in India, of which 6 are
national.

Page
12

History
Established in 1953 under the provisions of the Forward Contracts (Regulation) Act, 1952, it
consists of not less than two but not exceeding four members appointed by the Central Government,
out of them one being nominated by the Central Government to be the Chairman of the
Commission.

Since futures traded in India are traditionally on food commodities, the agency was originally
overseen by Ministry of Consumer Affairs, Food and Public Distribution (India).
The commission appeared in the news in March 2012 for their ban on guar gum futures trading after
it said the price quadrupled due to its use in frocking causing food inflation.
In September 2013, the commission responsibility was moved to the Ministry of Finance to reflect
that futures trading was becoming more and more a financial activity.

Responsibilities and functions:The functions of the Forward Markets Commission are as follows:
To advise the Central Government in respect of the recognition or the withdrawal of recognition
from any association or in respect of any other matter arising out of the administration of the
Forward Contracts (Regulation) Act 1952.
To keep forward markets under observation and to take such action in relation to them, as it may
consider necessary, in exercise of the powers assigned to it by or under the Act.

To collect and whenever the Commission thinks it necessary, to publish information regarding
the trading conditions in respect of goods to which any of the provisions of the act is made
applicable, including information regarding supply, demand and prices, and to submit to the
Central Government, periodical reports on the working of forward markets relating to such
goods.
Page
13

 To make recommendations generally with a view to improving the organization and working of
forward markets.

To undertake the inspection of the accounts and other documents of any recognized association
or registered association or any member of such association whenever it considers it necessary.
It allows futures trading in 23 Fibres and Manufacturers, 15 spices, 44 edible oils, 6 pulses, 4
energy products, single vegetable, 20 metal futures, 33 others Futures.
https://en.wikipedia.org/wiki/Forward_Markets_Commission_(India)

1.6-National Commodities & Derivatives Exchange Limited (NCDEX)

National Commodities & Derivatives Exchange Limited(NCDEX) promoted by ICICI Bank
Limited (ICICI Bank), Life insurance corporation of India (LIC), National Bank of agriculture and
Rural Development (NABARD) and National Stock Exchange of India Limited(NSC). Punjab
National Bank (PNB), Credit Ratting Information service of India Limited (CRISIL), Indian
Farmers Fertilizer Cooperative limited (IFFCO),Canara bank and Goldman saches by subscribing to
the equity shares have joined the promoters as a share holder of exchange. NCDEX is the only
commodity exchange in the country promoted by nation institutions.
NCDEX is a public limited company incorporated on 23rd April 2003.NCDEX Is a national level
technology driven on line commodity exchange with an independent board of Directors and
professionals not having any vested interest in commodity markets. It is committed to provide a
world class commodity exchange platform for market participants to trade in a wide spectrum of
commodity derivatives driven by best global practices, professionalism and transparency. NCDEX
is regulated by Forward Market Commission(FMC).NCDEX is also subjected to the various laws of
land like the companies act, stamp act, contracts act, forward contracts regulation act and various
other legislations. NCDEX is located in Mumbai and offers facilities to its members in more than
550 centres through out India. NCDEX currently facilitates trading of 60 commodities.

Commodities Traded at NCDEX:Page

14

 Bullion:Gold KG, Silver, Brent

Minerals:Electrolytic Copper Cathode, Aluminium Ingot, Nickel Cathode, Zinc Metal Ingot, Mild
steel Ingots
Oil and Oil seeds:Cotton seed, Oil cake, Crude Palm Oil, Groundnut (in shell),Groundnut expeller Oil,
Cotton, Mentha oil, RBD Pamolein, RMseed oil cake, Refined soya oil, Rape
seeds, Mustard seeds,Caster seed, Yellow soybean, Meal
Pulses:Urad, Yellow peas, Chana, Tur, Masoor,
Grain:Wheat, Indian Pusa Basmati Rice, Indian parboiled Rice (IR-36/IR-64), Indian raw Rice
(ParmalPR-106), Barley, Yellow red maize
Spices:Jeera, Turmeric, Pepper
Plantation:Cashew, Coffee Arabica, Coffee Robusta
Fibre and other:Guar Gum, Guar seeds, Guar, Jute sacking bags, Indian 28mm cotton, Indian 31mm
cotton, Lemon, Grain Bold, Medium Staple, Mulberry, Green Cottons, , , Potato, Raw Jute,
Mulberry raw Silk, V-797 Kapas , Sugar, Chilli LCA334
Energy:Crude Oil, Furnace oil

1.7-Shareholder of NCDEX:-

Page
15

Sr.No. Name of the shareholder

Total no. of
shares

% of total
capital

1.

National Stock Exchange of India Limited (NSE)

76,01,377

15.00%

2.

Life Insurance Corporation of India (LIC)

5,625,000

11.10%

3.

National Bank for Agriculture and Rural

Development (NABARD)

5,625,000

11.10%

4.

Indian Farmers Fertiliser Cooperative Limited

(IFFCO)

50,68,000

10.00%

5.

Oman India Joint Investment Fund

5,067,600

10.00%

6.

Punjab National Bank (PNB)

3,694,446

7.29%

7.

Build India Capital Advisors LLP

3,091,236

6.10%

8.

Canara Bank

3,055,519

6.03%

9.

IDFC Private Equity Fund III

25,33,800

5.00%

10.

Shree Renuka Sugars Limited

25,33,700

5.00%

11.

CRISIL Limited

1,875,000

3.70%

12.

InterContinental Exchange (ICE)

1,500,000

2.96%

13.

Goldman Sachs Investments (Mauritius) I Limited

1,500,000

2.96%

14.

Jaypee Capital Services Limited

1,204,800

2.38%

15.

Star Agriwarehousing and Collateral Management

Ltd.

7,00,500

1.38%

16.

Individuals

22

0.00%

50,676,000

100.00%

Total

1.8-Multi Commodity Exchange of India Limited (MCX)

Multi Commodity Exchange of India Limited (MCX) is an independent and de-mutulized
exchange with permanent reorganization from Government of India, having Head Quarter in
Mumbai. Key share holders of MCX are Financial Technologies (India) Limited, State Bank of
India, Union Bank of India, Corporation Bank of India, Bank of India and Cnnara Bank. MCX
facilitates online trading, clearing and settlement operations for commodity futures market across
the country. MCX started of trade in Nov 2003 and has built strategic alliance with Bombay Bullion
Association, Bombay Metal Exchange, Solvent Extractors Association of India, pulses Importers
Association and Shetkari Sanghatana.
MCX deals with about 55 commodities.
Commodities Traded at MCX:Page
16

 Bullion:Gold, Silver, Silver Coins,

Minerals:Aluminium, Copper, Nickel, Iron/steel, Tin, Zinc, Lead
Oil and Oil seeds:Castor oil/castor seeds, Crude Palm oil/ RBD Pamolein, Groundnut oil, Mustard/
Rapeseed oil, Soy seeds/Soy meal/Refined Soy Oil, Coconut Oil Cake, Copra, Sunflower oil,
Sunflower Oil cake, Tamarind seed oil,
Pulses:Chana, Masur, Tur, Urad, Yellow peas
Grains:Rice/ Basmati Rice, Wheat, Maize, Bajara, Barley,
Spices:Pepper, Red Chili, Jeera, Cardamom, Cinnamon, Clove, Ginger,
Plantation:Cashew Kernel, Rubber, Areca nut, Betel nuts, Coconut,Coffee,
Fiber and others:Kapas Khalli, Cotton (long staple, medium staple,
short staple), Cotton Cloth, Cotton Yarn, Gaur seed and
Guargum, Gur and Sugar, Khandsari, Mentha Oil, Potato, Art
Silk Yarn, Chara or Berseem, Raw Jute, Jute Goods, Jute
Sacking,
Petrochemicals:High Density Polyethylene (HDPE), Polypropylene (PP), Poly
Vinyl Chloride (PVC)
Energy:Brent Crude Oil, Crude Oil, Furnace Oil, Middle East Sour
Crude Oil, Natural Gas

Page
17

1.9-Shareholders of MCX:-

1.10-Sales of MCX:- (in Rs. Cr.)

Page
18

Column2

http://economictimes.indiatimes.com/multi-commodity-exchange-of-india-ltd/stocks/companyid16571.cms
http://www.moneycontrol.com/financials/multicommodityexchangeindia/profit-loss/MCE#MCE

1.11-Limitations of commodity future market: Commodity market is very difficult to predict. Commodity prices depend upon region,
monsoon, transportation cost, demand-supply theory, import/ export policies & Global market
trends. So commodity market experience volatility that cannot be predicted easily.
Without knowing the spot market for commodities it is very difficult to play with Future market.

In capital market it depends upon Companies performance, decisions, long run plans, mergers,
etc. there are definite regions to move up & down in the market, but in the case of Commodity
market there are so many regions for the market movement, it is like a game of luck to the
investor.
Page
19

 Customer has to deposit the margin amount that is based on volatility of commodity plus
brokerage that is deducted from total losses made. So if at all there is a loss, the total loss
amount will be very huge. In this aspect it is very risky market.

Commodity market not yet developed in India so it is less reliable.

Commodity market gives high return but with multiplier of high risk.

Page
20

1.12-PORTER FIVE MODEL

INDUSTRY ANALYSIS USING PORTERS 5 FORCES MODEL
POTENTIAL
ENTERANT
Investmart
Various Banks
Geojit
Cpher
UTI Securities Ltd.
Refco Group Ltd.
IDBI Capital Mt Services
Ltd.

SUPLERS

COMPETITORS

BUYERS

Web maintainers
NSDL
CDSL
NSE
BS
MCX
NCDE

ICICI Web Trade Ltd

5paisa.com
Kotak Securities Ltd
India Bulls
Motilal Oswal Securities
Ltd
HDFC Securities Ltd
Angle Broking

Small Investors
Franchise/Business
Partners
MF Companies
HUF
Institutional Investors

SUBSTITUTES
Mutual Funds
Insurance
Bank FD
Page
21

1.13-MAJOR PLAYERS

Page
22

CHAPTER-2.
2.1-COMPANY DETAIL
Marwadi Group is a widely renowned financial services group in Saurashtra. It had its genesis in
the year 1992 with the incorporation of Marwadi Shares & Finance Pvt. Ltd. (MSFPL). In the year
1996, it became a corporate member of National Stock Exchange of India Ltd. (popularly known as
NSE), which was then an untested platform for securities trading. MSFPLs perspicacity had it that
in future this new platform which was highly leveraged on technology would be the main
liquidity purveyor in securities business. Marwadi Groups Vision now stands proven with NSE
now at the commanding heights of Indian securities market.
Marwadi Group therefore has an established history of making the right move in an intuitive
manner. Later in the year 1999, MSFPL became a Depository Participant of National Securities
Depository Ltd. (NSDL) which was the first Depository launched in Saurashtra after Depositories
Act was legislated in the year 1997. In deciding to become a DP, what guided was once again
MSFPL intuitive feel for what the future would unfold, when skeptics stood apart, MSFPL took the
plunge and brought the depository services to retail investors door-step in Saurashtra, bringing into
MSFPL fold a retail mass of 60,000 plus customers.
Marwadi Group is driven by its three founder directors Shri. Ketan Marwadi, a Civil Engineer by
profession and the major brain behind Marwadi Group, Shri Deven Marwadi an expert at risk
management systems and Shri Sandeep Marwadi who is guiding the technology and systems in the
Company. Having started out on sound principles of proprietary enterprise and laid a robust
foundation in terms of financial and network, the promoters have now handed over the reins to
professional mangers. The three promoter-directors now lay out the broad policy framework and
Page
23

future growth strategy for the group. Day-to-day management is vested in professional managers,
who are invested with both authority and accountability. Today MSFPL have a corpus of managers
who handle their respective departments and follow a systemic feedback of inputs to the higher
management, which then improves upon the existing practices and standards.

2.2 HISTORY

Page
24

Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years ago.
The earliest records of security dealings in India are meager and obscure.
By 1830's business on corporate stocks and shares in Bank and Cotton presses took place in
Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers
recognized by banks and merchants during 1840 and 1850. The 1850's witnessed a rapid
development of commercial enterprise and brokerage business attracted many men into the field and
by 1860 the number of brokers increased into 60.
In 1860-61 the American Civil War broke out and cotton supply from United States of Europe was
stopped; thus, the 'Share Mania' in India begun. The number of brokers increased to about 200 to
250. However, at the end of the American Civil War, in 1865, a disastrous slump began (for
example, Bank of Bombay Share which had touched Rs 2850 could only be sold at Rs. 87). At the
end of the American Civil War, the brokers who thrived out of Civil War in 1874, found a place in a
street (now appropriately called as Dalal Street) where they would conveniently assemble and
transact business.
In 1887, they formally established in Bombay, the "Native Share and Stock Brokers' Association"
(which is alternatively known as "The Stock Exchange"). In 1895, the Stock Exchange acquired a
premise in the same street and it was inaugurated in 1899. Thus, the Stock Exchange at Bombay
was consolidated.
Thus in the same way, gradually with the passage of time number of exchanges were increased and
at currently it reached to the figure of 24 stock exchanges.
An important early event in the development of the stock market in India was the formation of the
Native Share and Stock Brokers Association at Bombay in 1875, the precursor of the present-day
Bombay Stock Exchange. This was followed by the formation of associations /exchanges in
Ahmedabad (1894), Calcutta (1908), and Madras (1937). In addition, a large number of ephemeral
exchanges emerged mainly in buoyant periods to recede into oblivion during depressing times
subsequently.
Page
25

In order to check such aberrations and promote a more orderly development of the stock market, the
central government introduced a legislation called the Securities Contracts (Regulation) Act, 1956.
Under this legislation, it is mandatory on the part of a stock exchange to seek government
recognition. As of January 2002 there were 23 stock exchanges recognized by the central
Government. They are located at Ahmedabad, Bangalore, Baroda, Bhubaneswar, Calcutta, Chennai,
(the Madras stock Exchanges ), Cochin, Coimbatore, Delhi, Guwahati, Hyderabad, Indore, Jaipur,
Kanpur, Ludhiana, Mangalore, Mumbai(the National Stock Exchange or NSE), Mumbai (The Stock
Exchange), popularly called the Bombay Stock Exchange, Mumbai (OTC Exchange of India),
Mumbai (The Inter-connected Stock Exchange of India), Patna, Pune, and Rajkot. Of course, the
principle bourses are the National Stock Exchange and The Bombay Stock Exchange, accounting
for the bulk of the business done on the Indian stock market.
While the recognized stock exchanges have been accorded a privileged position, they are subject to
governmental supervision and control. The rules of a recognized stock exchanges relating to the
managerial powers of the governing body, admission, suspension, expulsion, and re-admission of its
members, appointment of authorized representatives and clerks, so on and so forth have to be
approved by the government. These rules can be amended, varied or rescinded only with the prior
approval of the government. The Securities Contracts (Regulation) Act vests the government with
the power to make enquiries into the affairs of a recognized stock exchange and its business,
withdraw the recognition the task of regulating the stock exchange to the Securities Exchanges
Board of India .

Page
26

2.3-MARWADI STORY
Marwadi is a Gujarat based financial service group dealing in equities/commodities broking and
portfolio management services. In the last 15 years we have grown into a network of more than 47
branches with 650+ committed professional people and 475+ channel partners across India.
MARWADI has kept the faith of over 1.35 lakh investors and its growing. After establishing
supremacy in Gujarat:
We are now expending National wide and to fuel our growth plans, we recently

raised capital

from U.K. - based investment companies.

Gujarati-Marwadi

Ketan
Marwadi
Sandeep Marwadi
(Managing Director)

(Whole Time Director)

Gujarati by birth: Marwadi by surname they have got the best of both cultures. An
entrepreneurial streak: a never- say-die spirit: a deep sense of brotherhood and all too well-known
sharp money senses drive our business.

Page
27

2.4-COMPANY PHILOSOPHY
TRADITIONAL IN VALUES: NOT IN BUSINESS
What makes Marwadi Group different from any other broking firm is our ability to borrow from the
wisdom and values of our past while keeping an eagle eye on the future. This is why u will find the
latest in processes: infrastructure, and technology bundled together is served you at your doorstep:
but more than that you will find a personal touch. While we value your money (trust us we will do
everything to make it grow). But we value your relationship more. All our clients feel at home while
trading with us, knowing fully well that there financial aspiration is being handled with care. We
hope you will let us have the honors of serving you soon.

Page
28

2.5-MISSION & VISION

"To be a

world-class

financial

services provider

by

arranging

all

conceivable financial services under one-roof at affordable costs through cost effective delivery
systems, and achieve organic growth in business by adding newer lines of business.

2.6MILESTONES
The company crossed the following milestones to reach its present position as the leading retail
broking house in India
Page
29

Page
30

1992...Marwadi Shares And Finance Pvt. Ltd. was incorporated.

1996...Became a corporate member of National Stock Exchange Of India - (NSE)
1998...Became a member of Saurashtra Kutch Stock Exchange (SKSE)
1999...Launched Depository services of Depository Participant under National Depository
Security Ltd. (NSDL)
2000...Commenced Derivative Trading after obtaining registration as Clearing and Trading
Member in NSE.
2003... (MCBPL) Became a corporate member of the National Commodity and Derivatives
Exchange of India Ltd.
2003... (MCBPL) Became a corporate member of The Multi Commodity Exchange of India
Ltd.
2004...Became a corporate member of Bombay Stock Exchange Ltd. (BSE)
2004...Launched Depository Services of Depository Participant under Central Depository
Services (India) Ltd.
2005...Launched Portfolio Management Services
2006...MSFPL converted to Public Limited (Marwadi Shares And Finance Limited)
2007The Company raised further private equity from Caledonia Investment plc.

2.7-ORGANISATIONAL STRUCTURE
Page
31

MANAGING DIRECTOR
DIRECTORS
CHIEF EXECUTIVE OFFICER
DEPUTY GENERAL MANAGER
SENIOR MANAGERS
MANAGERS
ASSISTANT MANAGERS
SENIOR OFFICERS
SENIOR EXECUTIVES
CLERKS
Thus, like any other formal organization Marwadi Shares & Finance Limited follows a
professionalized organizational structure than a hotchpotch structure, in which there is no clear idea
about the hierarchy patterned followed .

2.8-BRANCHES
There are Mainly 52 branches of Marwadi in different cities like..
Ahmedabad
Amreli
Anand
Baroda
Bhavnagar
Bhuj
Delhi
Dhoraji

Jamnagar
Junagadh
Keshod
Manavadar
Mithapur
Mumbai
Okha
Porbandar
Page
32

Dhangadhra
Gondal
Gandhidham

Surat
Surendranagar
Veraval

Ankleshwar

Jetpur

Barmer

Khambhaliya

Bharuch

Kodinar

Disha

Kolhapur

Hyderabad

Kolkata

Indore

Mahuva

Jamshedpur

Manavadar

Mandvi

Morbi

Mangrol

Nadiad

Mehsana

Nasik

Navsari

Okha

Palanpur

Pune

Savarkundla

Una

Unjha

Valsad

Vapi

Ranavav

2.9-HIGHLIGHTS OF MARWADI GROUP:

MSFPL is among the top 25-broking houses of India, because of its focus on the fastgrowing retail brokerage segment.
MSFPL has a wide reach with a network of 48 branches, 400 sub-brokers who together
services 75,000 plus trading customers and 1000 plus commodity customers.
MSFPL wide client base gives an excellent opportunity to cross-see third party products
such as Mutual Fund, and Insurance.
In the Insurance Sector, we have major presence in Saurashtra as exclusive Corporate
Agents of TATA-AIG both for life and non-life business.
Page
33

 MSFPL have a reputation for being first movers in adoption new products and putting it to
the customers.
MSFPL have robust risk management system, which is proven by the fact of very low
recoverable outstanding at any point of time.
MSFPL service delivery systems are leveraged by technology and therefore MSFPL have
established global reach at optimal cost. MSFPL recognize that the ultimate in bottom line is
the efficiency of delivery system. It is therefore MSFPL motto to continuously upgrade
delivery systems through state-of-art technology.
In the heart of Rajkot city MSFPL have 10,000 sq. ft. of built-up area in which MSFPL have
housed latest state of the art artifacts and gadgets for communication and networking.
MSFPL have 300 plus computers in this building running on the back bone of leased data
circuit lines, ISDN lines and V-sat in order to facilitate delivery of MSFPL products to
remote location customers on real-time basis .
MSFPL have made foray into commodities trading, as is the wont of the Marwadi group, in
this business. True to MSFPL motto, as on day, MSFPL are clocking a daily trading volume
of Rs. 50 Crore, by just having taken it to Saurashtra region only. MSFPL are gradually
penetrating the market outside Saurashtra in commodities too.
MSFPL have strong distribution network which has been primarily responsible for MSFPL
ever enhancing volumes and therefore profitability. MSFPL use Channel Partners (such as
sub-brokers, franchisees, remises etc.) to reach out to retail segment. MSFPL in the process
provide livelihood to many people who would have otherwise hit the job-market. MSFPL
have generous revenue sharing arrangement with Channel partners.
MSFPL average daily trading volume in all segments of both NSE and BSE put together
amount to Rs. 220 Crore. The total daily trading volume on NSE and BSE put together
around Rs. 220 thousand Crore, therefore amount of 1% to the National Average Daily
Trading volume.

Page
34

2.10-CURRENT SCENARIO

Servicing more than 1, 00,000 clients.

Ranked among top-50 broking houses.
Servicing more than 698 pin codes.
Having more than 400 Franchisee/Sub-brokers & authorized persons network.
More than 300 employees strength.
Infrastructure spreading 10000 Sq. Ft. into 5 storied building.

Page
35

2.11-COMPANY INFORMATION

NAME
REGISTERED OFFICE &
CORPORATE OFFICE

: Marwadi Shares & Finance Pvt. Ltd.

: Marwadi Financial Centre

Nr. Kathiawad Gymkhana
Dr. Radhakrishnana Road
Rajkot 360 001
HEAD OFFICE
: Marwadi Financial Center
Nr. Kathiawad Gymkhana
Dr. Radhakrishnana Road
Rajkot 360 001
PHONE NO
: 248 13 13
WEB SITE
: www.marwadionline.com
www.msfpl.com
DIRECTORS
: Mr. Ketan Marwadi
Mr. Deven Marwadi
Mr. Sandeep Marwadi
C.E.O
: Jeyakumar.A.S.
DEPUTY GENERAL MANAGER : Mr. Haresh Maniar
COMPANY SECRETERY
: Mr. Tushit Mangukiya
EMAIL
: smarwadi@hotmal.com,
Piyush.marwadi@marwadionline.

Page
36

2.12- BOARD OF DIRECTORS

MANAGING DIRECTOR

: Mr. Ketan Marwadi

WHOLE TIME DIRECTORS

: Mr. Deven Marwadi

&
Mr. Sandeep Marwadi

CEO

: Mr. K. S. Jay kumar

GENERAL MANAGER

: Mr. Paras Maniar

COMPANY SECRETERY

: Mr. Tushit Mangukiya

DY. MANAGER

: Mr. Haresh Maniar

DP MANAGER

: Mr. Arvind Gamot

H R MANAGER

: Mr. Akshay Goswami

ACCOUNT MANAGER

: Mr. Jayant and Mr. Bhargav

MARKETING MANAGER

: Mr. Mihir Kothari

Page
37

2.13-TIME SYSTEM KEEPING

There are numbers of employes working in this company. Marwadi has a shift of work and they
follow the system of punching card system. Marwadi has only one shift of 8 hours starting from
9.30 A.M. to 7.30 P.M. during working hours they have lunch break of one hour start from 1.00
P.M. to 2.00 P.M. The following are the benefits of the timekeeping system.
1.
2.
3.
4.

It helps in nothing of presence and absence of employess.

It helps in recording arrival time of employess.
It helps in nothing of employess leave the organisation during or before duty time.
It also makes the note of employees who do work for overtime.
This informations are also given to wage and salary admisistration.

2.14-MEMBERSHIP
Trading cum clearing members for cash & derivative segment
National Stock Exchange of India Ltd.
Bombay Stock Exchange
Saurashtra Kutch Stock Exchange.
Over the Counter Exchange India

CHAPTER-3
3.1-OPERATION DEPARTMENT
INTRODUCTION
Page
38

Operation management, which was formerly considered as manufacturing management only, now
it, is known as operations management. Many non-manufacturing organizations providing services
like hospitals, banks, transportation, farming, warehousing etc. are now covered by operation
management.
An operation by formal definition is a process of changing inputs into outputs, with the creation or
adding of value to some entity. The processes of alteration or transportation or storage or inspection
or any combination thereof add value to an entity is rightly called operations. The growth of service
industry has brought with it the term Operations Management.
MARWADI SHARES is a services sector industry has some unique features, different from those,
which has manufacturing base. These are:
Non-inventorial output of service, since generally no stock is produced.
Variable demand.
Labour-intensive operations mostly.
Location of service is dictated by the location of the users.

Location Details
Site selection is an important activity, which decides the fate of the business. A good location may,
reduce the cost of service and distribution helps in elevating either the competitive strength or the
profit margin of the business.
MARWADI SHARES has Location is in the heart of the city where service is easily available for
all customer and easy access compare with other place that available in city. Location has major
impact on success or failure of operation.

Advantages of this type of location compare to competitors:

Less service cost and

It helps to reduce distribution cost

Layout details

Page
39

There has an optimum arrangement of planning and has a proper flow of man and material,
operating equipment like PC, storage space, material handling equipment and all other supporting
service along with the design of best structure to contain all these facilities.

Maintenance
Information Security has emerged vital in todays fast moving, technically fragile business
environment. The knowledge/awareness of security measures is very critical and cant be
compromised on. The policy has been framed to safeguard against all possible threats (viruses,
bugs, spams etc.) that pose a major threat to their work processes.
The security policy is a plan outlining the methods adopted to project the companys critical assets.
This addresses the following:
1

Do not run any files without first scanning them, no matter what the file extension (e.g. .exe,

.bat, .com, .doc etc.)

Do not download any files from unknown sources. Do not open attachments, not even those
sent by a friend, without scanning them.

Do not run any program you have found on diskettes/CDs around your desk if you are not

completely sure that they are yours.

Please ensure that your system is scanned at least once a week with the scanning software
that is being used by the company.

STORE MANAGEMENT
In this department information regarding customer KYC (Know Your Client) a form which is
registration form to join MARWADI SHARES AND FINANCE LTD also information of that
clients ID and password addresses, contact no. , type of product using, etc.
For this company has CIS (Customer Information System) a computer based programming system
which handle all this information with the help of this system it is easy for company to solve query
of customer like forget password. It also helpful to make be active relationship with customers so
that they can remain with the company and also helpful to generate lead or reference which work as
an advertising of Marwadi in their group.
Page
40

Company keep with copy of form called KYC called (Know Your Customer) with its head office
minimum 7 years so it will be useful as and when it requires.

3.2-FINANCE DEPARTMENT

Page
41

As MARWADI is a Service provider firm and it is also private company. So according to the
company policy they do not provide the financial details of the company and hence not much
information is available in this department from the company.

INTRODUCTION

Page
42

Financial management is that managerial activity which is concerned with the planning and
controlling of the firms financial resources. It is an integrated decision making process concerned
with acquiring, financing and managing assets to accomplish the overall goal of a business
organization. It can also be stated as the process of planning decisions in order to maximize the
shareholders wealth.
Financial management deals with the procurement of funds and their effective utilization in the
business.
Financial management comprises of forecasting, planning, organizing, directing,
Co-coordinating and controlling of all activities relating to acquisition and application of the
financial resources of an undertaking in keeping with its financial objective.

IMPORTANCE
Financial management is all about managing expenditure within a limited budget. It is about
allocating money to the necessary items first. If after that having some money left, it must be used
to pay off the debts. If there is still some money left it can be used according to the liking of the
firm.
Finance management means management of all matters related to an organizations finances.
Financial management is useful in determining the size of the enterprise, the composition of assets
of the enterprise, the mix of enterprises financing and analyzing planning and control of financial
affairs of the enterprise.

Page
43

ACQUISITION OF FUNDS
The main activity of MARWADI SHARES is that of the Stock Broking, Commodities trading
and Demat Services. The main acquisition of firm is that of the brokerage and the NSDL charges
in the company.

UTILIZATION OF FUNDS
The utilization of fund is mainly in the salaries, miscellaneous expenses and maintenance expenses
of the branch. Company also spends lots on IT. Company believes that IT provides competitive
advantage. Company purchase many advance software for facilitates the research department.

Page
44

3.3-MARKETING DEPARTMENT
INTRODUCTION
A market may be considered as a convenient meeting place where buyers gather and sellers gather for
exchange of goods and services.
Market may be defined as the process of exchange between seller and buyer. It involves a number of
inter-related activities designed to plan, promote, distribute. And price a product or service in order to
meet the wants and needs of both the parties in exchange transaction viz, consumer and producers. In
short, marketing deals with identifying and meeting human and social needs. One of the shortest
definitions of marketing is meeting needs profitably

MARKETING SCENARIO
Segmenting means to identify the group of people who have similar needs, wants, demand. Which
helps company to determine the product portfolio. Segmenting also facilitates to provide customize
services to the customers. Proper segmenting leads company to higher productivity. Segmenting
provides competitive advantage in the market.
Indian stock market is one of the highest volatile markets in the world. Stock market fluctuates very
much in intraday season. This volatility of the market leads to loss and profit of the investor. Normally
this volatility affects the daily traders rather than long term investors.
There are many types of investors in the market like long term investors: medium term or short term
that what different type of advice for investment. Short-term investor or what we can call daily trader
wants tips for daily trading. MARWADI SHARES has own research department. There are many
researchers are working in this department they daily collect information through internet, T.V.,
newspapers, etc. and generate daily reports investment.
MARWADI is looking for those investors who seek advice for investment for long term as well as
daily trading. MARWADI is also looking for those investors who want to study the market. For that
type of investors MARWADI provides various research reports.
Page
45

Their research is based on in-depth research done in collaboration with the renowned marker-expert
Mr. Rajesh Jain. HABIT- our stock market research periodicals, has made sound investing a habit
with their clients.

Segmentation of Market
Market segmentation is the process of dividing / sub dividing a potential market into distinct sub
market of consumer with common needs and characteristics. Market segmentation is done with a
view to enable the organization to cater to their customers need more effectively. Market
segmentation is starting the step in applying the marketing strategy.

Purpose of Market Segmentation

To understand the varying and specific needs of the customer of the different sections.
To understand the motivation that promotes the customer to buy.
To understand the behavioral attitude and habits of different groups of customers.
To develop suitable product / services for each segment.
To understand the strategies being applied by competitors.

Characteristic of Market Segmentation

Measurable
Accessible
Differentiable
Actionable

Approaches of Market Segmentation

For segmenting a market in effective manner marketers adopt approaches: Mass Marketing
Target Marketing
Customized Marketing
Personalized Marketing
In Broking House, earlier the products were designed keeping in view the concept of mass
marketing. But as a competition appeared brokers are forced to design products in such away, which
will take care of, there target market or even individuals customers. For the purpose of marketing
Page
46

of broking products in India market can be segmented in a way that will take care of customer of
different sections.

Market Segmentation for purpose of Marketing Broking Products

Agriculture Sector
Farmers
Industrial Sector
Large Industries
Medium Industries
Small Scale Industries
Trade & Commerce Sector
Whole Seller
Retailers
Transporters
Exporters
Service Sector
Self Employed
Doctors
Chartered Accountant
Lawyers
Institutions
Trust
Companies
House Hold
Salaried Persons
Pensioner

Factors Influencing Market

Demographic Factors
Psycho-graphic Factors
Economics Factors
Technological Changes
Legal, Cultural, Political Factors

Demographic Factors
Population Growth Rate
Level of Literacy
Social lass
Page
47

Psycho-graphic Factors
Life Style
Personality
Values

Economics Factors
Level of Economics Activity
Income
Level of Consumption
Pattern of Saving and Investment

Technological Changes
Production Process
Changes in needs and preferences
Offering offered

Legal, Cultural, Political Factors

Emergence of New Competitors
New Products
Changes in Political System / Legal System
Above Said factors influence market. Marketers should thing of the above said factors before
developing marketing strategies and should develop strategies in such a way, which will take care of
all the changes, which will occur due to the above factors. In recent times technological changes /
products are effecting marketing of broking products in a great manner, so marketer should take
care of this while developing strategies for marketing of broking products.

TARGET MARKET
Target market is the second step after segmentation. In MARWADI company try to provide customize
information to their customers. They are focusing on those customers who are ready to invest in the
market and want trading and investment indication. Company provides tips to their customers by
various mediums like through chat, SMS, mail, etc. Clients also call for query. Intraday trading, the
investors who do not want to invest but want to earn profit in very short period through intra-day
Page
48

trading are getting daily trading advice for research dept. As soon as clients receive call immediately
they pick up this stock & sell it at higher level by that way they earn profit.

POSITIONING
MARWADI are providing enough reward for your investment. Company claims that they are
providing best advice for investment. For that company is very much conscious about the research
department which is handled by the marketing expert Mr. Rajesh Jain. Company focuses on clients
specific product.
While Marwadi offers recommendations for investment company observes the investors ability to take
risk, their investment objectives, personal financial situation, investment time horizon.

Page
49

AMC

Individual
Institutional
Banks and Large Distribution Companies
Agents
Brokers

Retail
HNIs
Investors

Corporate
Investors

Customer Segments

CHANNEL OF DISTRIBUTION
DISTRIBUTION MODEL
MARWADI SHARES use multi-level marketing channel for investment product distribution.
MARWADI provides franchisees at the various regions. Broker works intermediaries between
investors and company. Company also opens its branches in the key centers. Company has both
forward and backwards flow of activity through the channel. Company distributes stationary,
brokerage and information forward to its sub-broker. The sub-broker sends filled forms, queries, and
amount of investment, etc. back to the company.

Page
50

Allover 475 franchises and over top 25 broking houses more than 650 employees strength, serving
about 1.35 lakh clients and serving more than 1100 pin codes.

Page
51

PRICING POLICY
Pricing policy of the company is one of the most important functions of the management.
Pricing has its own importance in the marketing.
At MARWADI SHARES the price of the product is decided by the top management.
Marwadi product pricing are competitive for their competitors.

3.4-HUMAN RESOURCE DEPARTMENT

Page
52

Today every company understand the importance of HR Dept. in the org whether it is big or small.
Every organization need human effort to convert in put into output or in other words we can say to
done the organization activity we need human power. A good Human Resource Dept. leads to higher
productivity and higher profitability. HR Dept. facilitates right number of people, at right time, and
right person to complete the tasks.
Anagram has also HR Dept. who plays a key role in the organization to provide
People for various jobs. HR manager is continuously in contact with the various depts. According to
the department needs he appoints the person for the jobs. HR dept. has the following functions.

Manpower Planning
Manpower planning is the basic function of HR. In the manpower planning HR dept Recognize the
need of the employee at the various levels in the organization. In Anagram the manpower planning
is take the shape with the help of various dept. head, or he key person in the dept. Dept. head or the
key person arrange meeting with the HR manager. They are discussing about which type of person
they want for their dept.
Manpower planning also done on the basis of the future plan of the company if the company has
future expansion plan according to it manpower planning has been done. For example how many
new branches of the company are likely to be open in this year? To open a new branch minimum
there are three to four people are required including the branch manager. No doubt if the branch
opened in big city manpower will be more. So according to branch size manpower planning is done.

Recruitment
Recruitment is the first step of hiring people. After manpower planning completes recruitment
process is started. In Anagram recruitments are done on various methods. Following are the source
of the recruitment.
Page
53

Through consultant
Direct from colleges
Referent of the employees
Through jobs websites
Advertising in leading newspapers
Anagram usually takes the help of various HR consultants. At the same time they are recruiting
from the colleges like som-lalit institute of managements, B.K.School of management, H.L.Inst. Of
Management Etc.

Selection:
Selection is the second step for hiring people. In selection the application which are come into the
recruitment are sort out here. The candidates, who are not matching with the job profile, are
rejecting here. Then from appropriate candidates are called for interview. In interview there are
different persons sit to take interview, In fact a panel is made for it. The panel includes the HR
manager, respective dept head, one expert of their field, & some time board member for the higherlevel job in the org. When the candidate selected into the interview, then he has to provide various
references. HR manager checks the references if they are adequate, he sends the final order to the
candidate. Then candidate has to sign the job agreement.

Training:
After selection when he comes to join the organization, Marwadi arranges the induction program
for the new employees. By that way new person come to know the organization people, its
environment, and organization culture. New person tries to adjust with the organization
environment. The introduction with the board of directors, head of the dept, superior, and colleagues
are the part of the induction program. The purpose of the induction program is to simply introduce
the new person to his/her working environment.
Marwadi believes in on job training new employees directly go to their job. When he/she faces any
difficulty they can ask their superior or their colleagues. By that way anagram believes employees
learn fast and get the practical experience of the job helps to improve the knowledge. It facilitates
employee to adjust with the working condition quickly.
Page
54

Performance Appraisal:
Performance appraisal is the important function in HR. In anagram there is annual program is
arrange for the performance appraisal of the employee. For performance appraisal there are certain
formats in anagram. The appraisal is done on the basis of employees different attributes, his/her
superior assessment their colleagues opinion, and their behavior in the organization. Appraisal is
also done by regional basis. Sometime board of directors assesses the top managers performance.
The performance appraisal concerned with the employees initiative at the work place, his/her
attendants, teamwork, and his /her behavior with his superior and their colleagues.

Latest practices:
With the changing business environment any business organization has to adopt the change. As the
new HR theory and principles are coming anagram also modify the recruitment policy. Now they
are focused on the knowledge assessment of employees, how much employee is aware from the
latest knowledge. Anagram considers the experience and knowledge equally.

3.5-PRODUCTS
COMMODITIES

EQUITY

Page
55

Page
56

It is absolutely necessary for any company to have distinct product in the portfolio. This strategy
provides competitive advantage. Today market is become
Global so it is increased competition in the market. A client wants different service together so
company offers different services to client.
In this competitive market MARWADI SHARES offers various products together. MARWADI
provides product like trading of equity shares, F & Os, and commodities.
1

EQUITY AND F & O SEGMENT

Retail
Institutional

COMMODITIES SEGMENT
Retail
Corporate(Institutional)

DEPOSITORY PARTICIPANT
For Equity
For Commodities

MUTUAL FUND:

EQUITY AND F & O SEGMENT

In this segment company offers trading facility for equity and future & options (F & O). For
the trading purpose a client has to open a trading account in the company. After opening a trading
account in the company, company provides the particular ID for trading. When client want to buy or
sell the stock he/she has to give ID to the operator. According to ID operator buy or sell the stocks.
A client can contact operator through mobile or telephone. Client also gives prior instructions for
the transaction. When the transaction take place same day in the evening the bill of the contract
generates.
In this segment, there are two types of accounts:
1
2

Retail Investors
Institutional Investors
1

Retail Investors
Page
57

Retail Investors means individual investors who are not comes for any organization they
transact at their own.
2

Institutional Investors

Institutional Investors include any firms, banks, companies, and trust. In short any a person who
invest on behalf of any organization or invest on the name of the organization called
institutional investors.

Page
58

COMMODITIES SEGMENT
Commodities market is booming right now. Commodities market includes different types of
commodities like guar, cotton, aluminum, metal, copper, zinc, etc. There are basically two types
exchanges for trading of commodities one is MCX (Multi Commodities Exchange Of India Ltd)
and second is NCDEX (National Commodities and Derivatives Exchange of India). MARWADI
commodity brokers pvt. ltd. (MCBPL) is a member of both the exchanges. At MCBPL, we note
only have sound global information and knowledge based but also combined this with excellent
local knowledge when it comes to commodities. With their extensive national wide presence and
network, their product and market knowledge encompasses diverse commodities and markets.

DEPOSITORY PARTICIPANT
Depository participant is described as an agent of depository. They are intermediaries between the
depository and the investors. MARWADI SHARES in the DP member of NSDL (National
Securities Depository Ltd). So MARWADI is the recognized member of the NSDL. In MARWADI
client can open their demat accounts. Company opens demat of equity as well as commodities.

Page
59

SERVICES OFFERED BY THE COMPANY

Cash Market

Derivative trading

Internet trading

Page
60

Commodity
broking

Initial Public Offerings

Portfolio Management Services

Page
61

Page
62

1. STOCK BROKING
CASH MARKET:
Marwadi facilitates buying and selling of securities on National Stock Exchange, Mumbai. They try
and make it seamless for their customers by offering the services to transfer securities through their
Demat services. Customers are also offered the facility of trading through --, thereby making it a
doorstep taking our service to customer's doorstep. They offer integrated -- services by bundling all
peripheries services together thereby making securities broking a seamless experience
DERIVATIVE TRADING:
Derivatives are one of the most complex instruments. Delivery contracts, stating what is to be
delivered for a fixed priced at a specified place on a specified date. These contracts were undertaken
between farmers & merchants to element the risk arising out of uncertainty future prices of grains.
A derivative is a contract whose value is derived from value of another assets, known as the
underlying, which could be a share, a stock market index, and interest rate, a commodity or a
currency.
erivatives are very similar to insurance. Insurance protects against specific risks, such as fire,
floods, theft & so on. Derivatives on the other hand take care of market risks volatility in interest
rates, currency rates, commodity prices, & share prices. Derivatives offer a sound mechanism for
insuring against various kinds of risks arising in the world of finance.
INTERNET TRADING:
The organization also provides the facility of trading through Internet. Now days it is the fastest and
the rapid form of dealing in all the sectors. The company provides the facility of net trading
through: Application based &
Software based. Systems
Company is planning to start the Browser based trading in short span.
Marwadi helps their customer in knowing the complete details about their Bank, Demat and e-broking
account which will be available to the customers 24 hours a day through the Internet. Also the
Page
63

customer will be able to access all the details regarding their orders and trades, trading conformation,
financial statements, transaction statements, holding statements, online.
Moreover, NRI, Overseas corporate bodies and FIIs, including all Indian Residents/corporate can
avail this facility from any corner of the world .

Page
64

2. COMMODITY BROKING:Sug
Commodity market in India is growing. India, being an agro-based economy, has market for most
of the agro-based commodities. India is the largest consumer of gold in the world, which implies a
huge market for the yellow metal. India has huge spot markets for all these commodities. Indoor for
huge market for Soya, Ahmedabad for castor seed and Surendranagar for cotton etc.
India has a long history of commodity futures trading, extending over 125 years. In mid 1960s, due
to wars, natural calamities and consequent shortages, futures trading in most commodities were
banned. After liberalization policy GATT agreement in the early nineties, the government realized
the need for futures trading to strengthen competitiveness of Indian agriculture and the commodity
trade and industry
Commodity derivative market:
As name suggest, commodity derivatives markets trade contracts for which the underlying asset is
a commodity. We can sub divided in following meaner
A Agricultural commodity like wheat, soybeans, rapeseed, cotton etc.
B Precious commodity like gold and silver etc.
C Other metal commodity like steel etc.
D Energy commodity like coal etc.
Organized market:
In organized market all the transaction done through structure form so it is safer and more
convenient. In organized derivative commodity market there are well known exchanges such as
NCDEX, MCX and etc.
Marwadis are providers of broking services in Capital Market. With the opening up of
commodities sector and the consequent felt need to provide price stabilization services, the Govt.
mandated host National level Commodity Exchanges, as part of our effort to broad base services to
our customers; we have taken membership of National level commodity exchanges.

Page
65

A new investment option is commodities. Until a few months ago this would not have made sense,
as there was no avenue for trading in commodities. Marwadis have taken the pioneering step of
bringing this to your doorstep. Good ness met historically prices in commodities are less volatile
than equities and bonds, thus providing an efficient diversification option.

3 DEPOSITORY PARTICIPANTS: Marwadi were the first corporate DP in Saurashtra. As on date it services approximately 65000
clients through a well-equipped branch network. It offers online services offered by NSDL / CDSL.
They are affiliate to both NSDL and CDSL in order to give optimum cost solution to our clients
keeping in view the investors needs. It place a high premium our customer service and prompt
reporting in order to ensure integrity of transactions. Its customer centric schemes have been
designed to address the investors needs relative to element (such as trade execution
dematerialization and re materialization) economical prices.
We are giving following services without any charges:
Demat Confirmation
Remat Confirmation
Rejection of Instruction
Special Transaction Statement as our desire
Allotment of Shares under IPO
Every quarter we send the Ledger to each Client
We inmates the renewal of account
Speed - e services client without any additional charges
We are offering special retention service under which client does not need to give the trade and
charges per trade 13 Rs.
NSDL offers web-enabled facility of (1) viewing latest balances and transactions that have taken
place in the last five days and also download of the screen (through IDEAS Internet based Demat
account statement) and (!!) submitting delivery instruction slips (in paper form) The users of Speede can also monitor the status of their instructions However for availing of these facilities both the
DP and the client have to you pay up certain one time and recurring charges.
Page
66

4 IPO SUBSCRIPTION SERVICES: Marwadi Shares & Finance Ltd. also provides the service of subscribing IPOs. The IPOs of all but
the smallest of companies are usually offered to the public through an "underwriting syndicate," a
group of underwriters who agree to purchase the shares from the issuer and then sell the shares to
investors. Only a limited number of broker-dealers are invited into the syndicate as underwriters
and some of them may not have individual investors as clients. Moreover, syndicate members
themselves do not receive equal allocations of securities for sale to their clients.
The underwriters in consultation with the company decide on the basic terms and structure of the
offering well before trading starts, including the percentage of shares going to institutions and to
individual investors. Most underwriters target institutional or wealthy investors in IPO distributions.
Underwriters believe that institutional and wealthy investors are better able to buy large blocks of IPO
shares, assume the financial risk, and hold the investment for the long term.
By their nature, investing in an IPO is a risky and speculative investment. Brokerage firms must
consider if the IPO is appropriate for individual investors in light of their income and net worth,
investment objectives, other securities holdings, risk tolerance, and other factors. A firm may not
sell IPO shares to an individual investor unless it has determined the investment is suitable for that
particular investor.
Even if the firm decides that an IPO is an appropriate investment for an individual investor, the
brokerage firm may sell the IPO only to selected clients. For example, before you can purchase an
IPO, some firms require that you have a minimum cash balance in your account, are an active trader
with the firm, or subscribe to one of their more expensive or "premium" services. In addition, some
firms impose restrictions on investors who "flip" or sell their IPO shares soon after the first day of
trading to make a quick profit. If you flip your IPO shares, your firm may refuse to sell you other
IPOs altogether or prevent you from buying an IPO for several months. You can often find these
restrictions on the firm's website.

5 PORTFOLIO MANAGEMENT SERVICES: Page

67

If one earns money in bagfuls, but don't have the time or inclination to manage it. If this
description fits one, do consider entrusting your money to a professional portfolio management
service (PMS). In return for a fee, portfolio managers offer to craft a basket of stocks, bonds or even
mutual funds that would fit your personal investment goals and risk preferences.
Though a few portfolio managers offer standardized packages for a sum as small as Rs 5-10 lakh, it
may take a minimum investment size of Rs 25-50 lakh to fetch you a customized portfolio. Apart
from cash, you can also hand over an existing portfolio of stocks, bonds or mutual funds to a PMS
that could be revamped to suit your profile.
PMS OR MFs:
But why should you opt for PMS instead of a mutual fund? Here are a few aspects on which
portfolio managers say they score over the standardized products offered by mutual funds:

Asset allocation: You may know what stocks, equity funds or bonds you would like to own,
but do you know how much of your savings you should allocate to each of these? The
decision on asset allocation will be crucial in determining investment returns over the long
term. With PMS, an asset allocation plan is tailor-made for you, after a detailed check on
your investment goals, savings pattern and appetite for risk.
Timing: Have you ever kicked yourself for switching your entire portfolio into equities just
before they tanked? If you have, you probably need help with regard to timing of
investments. Once you hire a portfolio manager, you can expect assistance on when you
should be investing more money into equities and when you should be bailing out. A
portfolio manager may also switch a portion of your portfolio into cash, if he perceives a big
risk to stock prices. The focus is on preserving value.
Flexibility: You are bullish on FMCG stocks, but find that equity funds have marginal
exposures to the sector. In a PMS, you can expect the portfolio manager to accommodate
your sector preferences when he invests. But don't expect to completely dictate what stocks
or sectors your portfolio manager will buy for you, as he will be the best judge of that.
Page
68

Also, portfolio managers do not have to stick to any rigid rules on what proportion of your
money will be invested in each sector or stock. They can also use liberal doses of cash or derivative
instruments to pep up your returns. Mutual fund managers have their hands tied on these aspects by
SEBI regulations.
Value added services:
Company provides various value added services to their clients:
1 Company Research Reports: based on in-depth study and analysis of a companys
2
3

business.
Sectors Reports: Regular, Detailed reports covering all sectors.
Famous Five: Weekly selection of five companies for medium-to long term
investment.

3.6-

SWOT ANALYSIS
During this training at Marwadi, I had come to know the Strengths Weaknesses
Opportunities Threats for the company and it is very useful for a company to analyze

them.

Therefore, the SWOT analysis is presented here and the suggestions for maintaining

strengths and removing weaknesses are explained.

STRENGTHS:

Well-maintained infrastructure.
Dedicated, Intelligent and Loyal staff.
On-line trading products.
Lowest brokerage and other charges less than. Competitors.
The best investment advice correct up to 70-90 % through dedicated
Research and reports.
Wide product range to enable the clients to choose the best alternative.
One of the best DPs in India.
A positive image in the existing clients.

WEAKNESSES:
Less awareness in the market.
Page
69

 Time consuming process for account opening, resolving the problems of the customers,
etc.
Service quality is not maintained accordingly how they are promoted.

OPPORTUNITIES:

Slope of stock market towards delivery based transaction.

Large potential market for delivery and intra-day transactions.
Open interest of the people to enter in stock market for investing.
Attract the customers who are dissatisfied with other broker & DPs.
An indirect opportunity generated by the market from its bullishness.
Large untapped market in the Saurashtra region of Gujarat.

THREATS:

Decreasing rates of brokerage in the market.

Increasing competition against other brokers & DPs
Poor marketing activities for making the company known among the customers.
A threat of loosing clients for any kind of weakness of the company.
Loosing the untapped market with the entry of the
Competitors.

CHAPTER-4

Page
70

4.1-TASK ASSIGNED
Define commodity
Commodity Derivative

Commodity exchanges:-ICX MCX NCDEX

There is 2 types of trading involved

Future Trading
It involve national broker,local broker like Marwadi share & finance ltd. And his client are like
HUF etc.

Physical Trading
It involve APMC(Agriculture product market committee)mundi,National mundies they supply to
wholeseller and wholeseller supply to retailer and retailer to household

Forward market
It is the informal over-the-counter financial market by which contracts for future delivery are
entered into. Standardized forward contracts are called futures contracts and traded on a futures
exchange
.

Page
71

Govt. of India
Financial Ministry
Forward Market Commisson
All Exchanges like MCX
NCDEX NMC
National
broker Local
borker
cli
en
t

To visit different web site of Global exchanges

COMEX (Commodities Exchange)

NYMEX(New York Mercantile Exchange)
CBOT(Chicago Board of Trade)
LME(London Metal Exchange)
Kitco.com
Bloomberg.com
Foxstreet.com
Moneycontrol.com
Netdania.com
ACTION

Page
72

4.2-RESEARCH METHODOLOGY
Research is a careful investigation or inquiry especially through search for new facts in branch of
knowledge: market research specifies the information. Required to address these issues: designs the
method for collecting information: manage and implements the data collection process analyses the
results and communicates the finding and their implications.
Research problem is the one which requires a researcher to find out the best solution for the given
problem that is to find out the course of action, the action the objectives can be obtained optimally
in the context of a given environment.

RESEARCH DESIGN
A framework or blueprint for conducting the research project . It specifies the details of the
procedures necessary for obtaining the information needed to structure and/or solve research
problems. A good research design lays the foundation for conducting the project. A good research
design will ensure that the research project is conducted effectively and efficiently. Typically, a
research design involves the following components, or tasks:
Define the information needed.
Design the research.
Specify the measurement and scaling procedures.
Construct and present a questionnaire or an appropriate form for data collection.
Specify the sampling process and sampling size.
Develop a plan of data analysis.

Data Collection: - The objectives of the project are such that both primary and secondary data is
required to achieve them. So both primary and secondary data was used for the project. The mode
of collecting primary data is various magazines, books, newspapers, & websites etc.
Primary Data: The primary data was collected by means of questionnaire and analysis was done
on the basis of response received from the customers. The questionnaire has been designed in such
a manner that the consumers satisfaction level can be measured and consumer can enter his
responses easily.
Page
73

Sample size
100 customers were selected
Sampling Unit
Ahmadabad
Sampling Technique
Convenient sampling.
Analysis and Interpretation
After the data collection, it was compiled, classified and tabulated manually and with help of
computer. Then the task of drawing inferences was accomplished with the help of percentage and
graphic method.

Page
74

Q. 1 Do you aware with exchange trade mechanism ?

Frequency

Percent

Yes

15

NO
Total

10.0

85

85.0

100

100.0

30
Yes
No
70

Very few people heard of commodity market. Vast majority of people are unaware about
Commodity Market.

Page
75

Q. 2 Which of the following exchange do you aware of ?

Frequency
MCX

Percent
11

11.0

NCDEX

2.0

NMCE

2.0

Other

85

85.0

Total

100

100.0

Exchanges

11

MCX
2

NCDEX
NMCE
System

85

Very few people heard of commodity exchanges. Vast majority of people are unaware about
Commodity exchanges.
Page
76

Q.3. Have you traded anytime in the any of above exchange ?

Frequency

Percent

Yes

15

15.0

NO

85

85.0

100

100.0

Total

Trade

15
Yes
No

85

Page
77

Q. 4.If yes, what product ?

Frequency

Percent

Bullions

6.0

Metals

3.0

Agriculture
Energy

1
1

1.0
1.0

Other

4.0

Total

15

15.0

System

85

85.0

100

100.0

Page
78

Product

6%

Bullions
3% 1%

Metals
Agriculture

1%

Energy

4%

Other
System

85%

Above data revels that majority of commodity investors like to invest in Bullion (Gold & Silver).

Q.5.What is your experience with commodity market ?

Frequency

Percent

Less than 1 year

1 to 5 year

8
5

8.0
5.0

5 to 10 year

1.0

1
15

1.0
15.0

More than 10 year

Total

Page
79

System

85

85.0

100

100.0

Experience

less than 1 year

5

1 to 5 year
1

5 to 10 year
More than 10 year
system

85

After asking about the duration of attachment I know that most of investor is connected with
commodity market about 1 to 5 years but not satisfied change in present figure. so first of all try to
aware the investor about commodity.

Q.6.Are you satisfied with Exchange trade mechanism ?

Page
80

Frequency
Highly Satisfied
Satisfied
Indifference

Percent
1

1.0

11

11.0

3.0

Total

15

15.0

System

85

85.0

100

100.0

Satisfaction

1 11
3

Highly Satisfied
Satisfied
Indifference
System

85

Very rare people doing trade through commodity exchange, but those people who doing trade
through commodity exchange are mostly satisfied.

Q.7. In which of the company you would like to deal more and more time?
Page
81

Frequency

Percent

Marwadi

1.0

Motilal Oswal

3.0

Others

11

11.0

Total

15

15.0

System

85

85.0

100

100.0

Compnay

1.2

Marwadi
Motilal Oswal

Others
System

11

Page
82

Q. 8. Are you planning to buy commodity through exchange mechanism in near future ?
Definitely will buy
will buy
Indifferent
will not buy
Definitely will not buy
Total

2
3

2.0
3.0

4.0

90
1

5.0
1.0

100

100.0

123
4
Definitely will buy
will buy
Indifferent
will not buy
Definitely will not buy
90

Mostly people do not want to trade through exchange mechanism and they do not even have plan
to trade. so it needs to make more awareness among investors about exchange mechanism.

Page
83

Q.9 Are you aware about hedging ?

Frequency

Percent

Yes

14

14.0

NO

1.0

Total

15

15.0

System

85

85.0

100

100.0

Hedging

14
1

Yes
No
System

85

Mostly people who doing trading through exchange mechanism are aware about hedging.

Page
84

Q.10 Have you ever done Badla trading(Arbitrage) ?

Frequency

Percent

Yes

6.0

NO

9.0

15

15.0

Total
System

85

85.0

100

100.0

Arbitrage

Yes
No
System

85

Page
85

Q.11.Are you interested in understanding Hedging or Badla trading ?

Frequency

Percent

Yes

12

12.0

NO

3.0

Total

15

15.0

System

85

85.0

100

100.0

12
3
Yes
No
System

85

Page
86

(12) Occupation:
Frequency

Percent

Jewellers

9.0

Others

6.0

Total

15

15.0

System

85

85.0

100

100.0

Page
87

OCCUPATION

13%

Income Level
1,00,000-2,00,000
Total
25%

63%

13 income
Frequency

Percent

Income Level

3.0

1,00,000-2,00,000

6.0

2,00,000 5,00,000

6.0

Total

15

15.0

System

85

85.0

100

100.0

Page
88

Income

3 6
<100000

100000-200000

6
200000-500000

System

85

14 Age
Frequency

Percent

18-21

1.0

22-34

10

10.0

35-44

3.0

Page
89

45-54

1.0

Total

15

15.0

System

85

85.0

100

100.0

AGE

18-21

1% 10%
3%
1%

22-34
35-44
45-54
System

85%

4.3- questionnaire
Page
90

QUESTIONNAIRE

Q. 1 Do you aware with exchange trade mechanism ?

Yes

No

Q. 2 Which of the following exchange do you aware of ?

MCX

NCDEX

NMCE

Other (Please Mentioned)..................................................................................

Q.3. Have you traded anytime in the any of above exchange ?

YES

NO

Q. 4.If yes, what product ?

Bullions(Gold and Silver)
Agri(Soya Bean, Wheat)

Metals (Copper, Lead)

Energy(Crude oil, Gasoline)

Other (Please Mentioned)..................................................................................

Q.5.What is your experience with commodity market ?

Less than 1 year

1 to 5 year

5 to 10 year

More than 10 year

Q.6.Are you satisfied with Exchange trade mechanism ?

Highly
Dissatisfied

Dissatisfied

Indifference

Page
91

Satisfied

Highly
Satisfied

Q. 7. Are you planning to buy commodity through exchange mechanism in near future ?
Definitely will buy

will buy

Indifferent

will not buy

Definitely will not buy

Q.8 Are you aware about hedging ?

Yes

No

Q.9. Have you ever done badla trading(Arbitrage) ?

Yes

No

Q.11.Are you interested in understanding Hedging or Badla trading ?

Yes

No

Personal Information:
Name: __________________________________________________________
Area ____________________________________________________
Phone No: (M): ____________________ (R): ___________________
E-mail: ____________________________________________________
Age:

18-21

22 - 34

35 44

45 - 54

Occupation:
Jewellers

Agriculture

Metal

Gender:

Female

Male

Education:

Under Graduate

Income Level (Yearly):

<100000
1,00,000-2,00,000

Graduate

55 64
Others

Post Graduate

2,00,000 5,00,000

Page
92

< 65

>5,00,000

4.4-SIP LEARNING
Task 1
Read about the commodity gold at MCX

Learning

India is world`s largest market for gold jewellery. London is the world`s biggest clearing house.
Trading session Monday to Friday 10 a.m. to 11:55 p.m. Maximum order size 10 kg. Different types
of gold are there like Gold m, Gold Petal. Factors influence the market is Hedging interest of
producers and Macroeconomic factor such as US $,interest rate.
Task 2
Attended meeting with my guide

Learning

Mr. Bhavik sir told me about what question to be add in questionnaire like do you with exchange
trade mechanism, if yes then which of the following exchange you prefer like MCX, NCDEX,
NMCEIL. What products have you traded on this exchange like Bullions, Agro, Metals. What is
your experience with commodity market. In which of the company you would like to deal more and
more time? like Marwadi, Kotak street , India bulls
Task 3
Attended meeting with my guide

Learning

Discussed about from where I can get investors like for for agri commodity, 25 manak chawk.Some
question regarding like are aware about Hedging Bullions 25 shops at C.G. road, 25 APMC market.
Have you ever done Badla trading. Badla trading is also known as arbitrage.
Task 4
Observe trading terminal
SLearning
I learn about how to dill in trading terminal
Task 5
Page
93

Prepared questioner about customer view about commodity market

learning
Learnt different makenitsom about commodity market
Task 6
Visit jewelers on c.g road and other area

Meet different different people and and ask question about commodity market
and commodity trading

Page
94

4.5- CONCLUSION
This Project Report is undertaken at MARWADI SHARES AND FINANCE LTD as a part of
the P.G.P.G.B.M programme. Marwadi is mainly involved in the brokerage business. Company
offers various services to their clients like Trading in BSE and NSE. Company also provides trading
in NCDEX and MCX. Marwadi is also Depository Participant of NSDL.
This project contains the details about the Marwadi and its functioning. Marwadi is spread all over
India. Marwadi has around 475 franchises and 25 top broking houses. This project covers the
broking industry growth and its future ideas. Project contains the concept of the capital market. I
learnt many things through this project which I did not know before. I came to know that how
trading is done, how to buy or sell the shares, how to fill up the forms, what are the necessary
formalities and so on.

Page
95

4.6-BIBLIOGRAPHY
Books:
1
2
3
4
5

Work book of AMFI mutual fund testing program.

Kotler P. (2003). Marketing Management, New Delhi: Tata Mc Grow Hill, 11th edition.
NCFM book of Capital Market.
Times Of India and Business Standard newspapers.
Research Methodology book of C.R. Kothari.

WEBSITES:

www.marwadionline.com

www.google.com

www.amfiindia.com

www.moneycontrol.com

www.stockmarket.com

www.bseindia.com

Page
96