3. Parameters Compound Annual Growth Rate
(2000-01 to 2009-10)
Resource Mobilisation in Primary Markets 17.15%
Resource mobilization through Euro Issues 43.89%
All-India Market Capitalisation 23.15%
All-India Equity Market Turnover* 19.94%
All-India Equity derivatives turnover 132.19%
Assets under Management of Mutual Funds 18.99%
Net Investments by Foreign Institutional Investors 30.53%
Net Investments by Mutual Funds 54.07%
Returns on Nifty 50 13.13%
4. COMPANY PROFILE
MISSION STATEMENT
• To be a well-respected &
preferred global financial
services organization enabling
wealth creation for all our
customers.
CORE VALUES
• Team work
• Meritocracy
• Passion & Attitude
• Integrity
7. BCG MATRIX OF MOSL
PMS
Investment Banking
Private Equity
MF
AMC
Online Broking
Offline Broking Insurance
GROWTH
RATE
MARKET SHARE
H
L
H L
8. SWOT ANALYSIS
Strengths Weakness:
Large and diverse
distribution network
High charges
Strong research and
sales teams
Most revenue from the
franchisee business
Brand recognition No strong establishment
as Mutual Fund
Experienced top
management
9. Opportunity Threats
Growing investment’s
share of disposal income
Execution risk.
Huge opportunity for
wealth management
Global Market condition
Greater participation by
all class of investors
Competition
Technology Economic condition
10. OBJECTIVE OF THE STUDY
PRIMARY OBJECTIVES :
• The aim of this research is
to study the risk
management system of the
firm.
• To check literacy level of
Derivatives & Commodities,
their potential market
among the people and
awareness about online
trading in Ahmedabad city
11. SECONDARY OBJECTIVES:
• To identify various risks involved in the broking firm.
• To identify various risk for the investors of the broking firm.
• To manage and reduce the identified risks.
• To know the awareness of Derivatives & Commodities.
• To know the investment habit of the people of Ahmedabad City.
• To know the purpose of investing in Derivative & Commodities.
• To know the influencing force behind the decision making while
trading in derivatives and Commodities.
• To find out the best pattern to educate about Derivatives &
Commodities.
• To find out the medium which is the best suitable for trading on
Derivatives & Commodities.
12. RESEARCH METHODOLOGY
Sample universe Ahmedabad city
Sampling Technique Stratified and Random
Sample size 300
Research design Exploratory & Descriptive
Sample Unit Professional
Business man
Government Employees
Employees working in private firms
13. WHAT IS RISK?
• Risk is the probability of
happening uncertain
events
• Type of risk
Systematic
unsystematic
15. RISK MANAGEMENT
• Risk management is a
structured approach to
managing uncertainty
related to a threat, a
sequence of human
activities including: risk
assessment, strategies
development to
manage it, and
mitigation of risk using
managerial resources
17. RISK MANAGEMENT
POLICY AT MOSL
• RMS policy has separate
parameters under NORMAL
& PANIC MARKET
• PANIC MARKET : If the
index movement is 6% in a
single day or a cumulative
movement of 10% ( Either
side movement) in
consecutive sessions, or is
declared specifically by
MOSL in case of emergency
for limited purpose of this
Risk Management Policy
18. PARAMETERES OF
CASH SEGMENT
• Exposure: means the aggregate of the
outstanding purchases and sales
• Risk Management System is based on End of
Day and not Real Time
20. EXPOSURE IN
OFFLINE SEGMENT
Base Capital
(Rs. lakhs)
Normal Market Limit
(No. of times)
Panic Market Limit
(No. of times)
0-2 4 Times 2 Times
2-10 5 Times 2 Times
10-15 6 Times 3 Times
Above 15 8 Times 3 Times
[Base Capital = Margin Ledger Credit +/- Ledger + Collateral Stocks
+ Debit Stock + Today Payout + Future Payout – Shortages + DP Stocks]
21. DEFAULT EXPOSURE LIMIT
WITHOUT MARGINS
Franchisee Deposit Exposure
0-2 Lakhs Nil
2-3 Lakhs 10000- This limit will be given for all clients having debit
unto Rs. 1000
3-5 Lakhs 25000- this limit will be given for all clients having debit
unto Rs.. 5000
5+ 50000 this limit will be given for all clients having debit
unto Rs. 10000
22. F & O SEGMENT
cash credit will be updated for limits in derivatives
subject to the following conditions:-
• Client should have traded in derivatives segment in last one
year
• Client should have PoA
• Cash ledger amount will be credited in derivatives to the
extent of PoA or cash ledger balance whichever is lower. If
ledger credit required in cash segment then request needs to
be placed online
23. EXPOSURE LIMITS
Offline Online
Cash NOT MANDATORY NOT MANDATORY
Shares Upto 100% after
appropriate haircut
Upto 100% after
appropriate haircut
Normal Market
Offline Online
Cash 100% for fresh positions
and incremental margins
on existing positions
100% for fresh positions
and incremental margins
on existing positions
Shares NA NA
Panic Market
24. Process for clients who are
in Risk due to
market conditions
• Offline: When the Mark to Market reaches 80% of the
deposit action can be taken even before the above stipulated
dates
• Online: MTM is 85% of Deposit, position will be squared
off
25. Scrip wise Limit in Offline
as well
as in Online cash segment
Buying Limit Set Selling Limit Set
A Group Unlimited Limit Unlimited Limit
All F & O scrips Unlimited Limit Unlimited Limit
B + S + T + ST
Group
Avg .Volume > = 50001 =
Unlimited
Unlimited
Avg. Volume < 50000 : -
20% of Average Market
Volume of Last 10 Days
Unlimited
Avg. Volume = < 1000 - No
Buying Limit
Unlimited
Z Group Zero Buying Limit Qty. No restriction but to
Rs. 2400000 PerScrip at
MOSL level ( As per the
Exchange Norms)
26. OVERALL ANALYSIS
To decide the limit they take following factors into
consideration :
• Current market condition
• Past record of client
• Current position of his account
• Risk profile of individual
• Annual income
• Company standards
27. INVESTMENT PATTERNS
Securities Nos. Percentage
Bank FD 231 14
Mutual Fund 138 8
Shares/ Equity 186 11
Postal Scheme 207 13
Insurance 231 14
Real Estate 162 10
G-secs 114 7
Bonds/Debentures 138 8
Jewellery 231 14
14%
9%
11%
13%
14%
10%
7%
8%
14%
investment pattern
Bank FD Mutual Fund
Shares/ Equity Postal Scheme
Insurance Real Estate
30. CONSTRAINTS
Obstacles Nos. Percentage (%)
Risk Taking Ability 69 30
Fund Facilities 69 30
Lack of Knowledge 45 20
Non Availability of Option with
the Broker
- -
Regulatory Constraints - -
Still in “wait & see” 24 10
Lack of Guidance 24 10
Risk Taking
Ability
30%
Fund
Facilities
30%
Lack of
Knowledge
20%
Non
Availability of
Option with
the Broker
0%
Regulatory
Constraints
0%
Still in “wait
& see”
10%
Lack of
Guidance
10%
Constraints
31. FACTORS TAKEN INTO
CONSIDERATON
Factors percentage Rank
Risk Reduction 28.4 1
Investment 24.6 2
To Increase Leverage 21.9 3
Speculation 13.7 4
Arbitrage 11.4 5
28.4
24.6
21.9
13.7
11.4
1
2
3
4
5
Risk Reduction
Investment
To Increase Leverage
Speculation
Arbitrage
factors taken into
consideration
Rank percentage
33. TOOLS PREFERRED FOR
LEARNING
Tools Nos.
Percentage
(%)
Classroom Teaching 114 19
Literature 114 19
Self-Experience 207 35
Internet 93 16
Documentaries 0 0
Seminars 69 12
19%
19%
35%
16%
0%
11%
tools preferred for learning
Classroom
Teaching
Literature
Self-
Experience
Internet
Documentari
es
Seminars
34. LEARNING TIME
Time( in a week) Nos.
Percentage
(%)
1 day 45 15
2 days 93 31
3 days 24 8
>3 days 45 15
Can’t say 93 31
15%
31%
8%
15%
31%
learning time
1 day 2 days 3 days
>3 days Can’t say
