Nidhi 123

OPERATION MANAGEMENT AT JAINAM SHARE CONSULTANT Pvt
Ltd.
PROJECT REPORT
ON
“OPERATION MANAGEMENT IN STOCK MARKET”
AT
Jainam Share Consultants Pvt. Ltd., SURAT
Prepared By Year Roll No
NIDHI H. PARIKH MBA SEM II, 2009-2011
33
Project Report is submitted to
Gujarat Technological University
In partial fulfillment for the requirement of
Masters of Business Administration Degree.
Under The Guidance Of
Mr. VATSAL PATEL
Submitted To
C.K.PITHAWALA INSTITUTE OF MANAGEMENT
Nr. Malvan Mandir, Via: Magdalla Port, Dumas Road, Surat
For The Year
2009-2010

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CERTIFICATE
This is to certify that this summer training report titled “OPERATION

MANAGEMENT AT JAINAM SHARE CONSULTANT Pvt Ltd” has been completed
by Miss Nidhi Parikh based on her own work.
This project report incorporates the result of her study and analysis.
Training in charge
The project is forwarded for further evaluation to Gujarat Technological

University.
Place :
Date :
Director

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DECLARATION
I hereby, NIDHI H. PARIKH, declare that,
This Project Report entitled, “OPERATION
MANAGEMENT IN STOCK MARKET” is the result of my own work and that
the same has not been previously submitted neither by me to any institute nor for
any other degree. This report is based on my personal opinion hence cannot be
referred to legal purpose.
Place : SURAT SIGNATURE
(NIDHI H. PARIKH)
MBA 2nd Sem.

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THIS
PROJECT REPORT
IS
DEDICATED TO
MY BELOVED PARENTS,
FACULTY MEMBERS,
FRIENDS AND
TO THOSE WHO HAVE HELPED
ME.

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ACKNOWLEDGEMENT
Preservation, inspiration and motivation have always played a key role in

the success of any venture. In the present world of competition and success, training
is like a bridge between theoretical and practical working; willingly I prepared this
particular Project.
I have pleasure in grabbing the opportunity of expressing gratitude to all

those who have helped me directly or indirectly during the completion of my entire
project work.
First of all I would like to thank the supreme power, the almighty god, who
is the one who has always guided me to work on the right path of my life. I express
my sincere thanks to Dr. G. N. Joshi (Director), Mr. Vatsal Patel & others
faculty members of M.B.A. department, for the valuable suggestion and making this
project successful.
I have completed my training in a company named “ Jainam Share
Consultants Pvt. Ltd.” I extend heartiest gratitude to Mr. Nipun Shah for
granting me permission to undertake the training in their esteemed organization.
To make anything successful, needs help & co-operation from people involved
directly or indirectly. I would like to thank Ms. Jigisha Reliawala (Relationship
Manager), for spending her precious time and helping me in getting the information
about Jainam Company and valuable data related to my project and their wonderful
suggestions and guidance in completing my project work.
I would like to express my whole heartedly thanks to other employees of

Jainam Company who has helped me in my study and their guidance, suggestion and
constant encouragement throughout the course of the project and without their
support completion of the project is not possible.

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I wish to express my gratitude to my family and all my fellow trainees for
giving me their helping hand with full co-operation.
Executive Summary
“A good broker system must be able to cope with an extremely
complex and dynamic environment.”
This project report is related with basics information about

OPERATION MANAGEMENT IN STOCK MARKET.
The microstructure of the stock market in which brokers work is highly

dynamic and volatile. In the market, there are many stock broking companies.
To sustain in market for a long period of time, one need to work in a proper
manner. They need to work in right way to attract more and more customers
and expand their business. This can be possible through proper management
of their operations.
Operations Management explores the way organizations distribute their

services. When investor is ready to invest their savings in stock market, they
are giving their worth to broker and broker help them to make money form
that investment. It is not possible to manage all their clients and sub – brokers
without proper management. Thus, operation management help them to
manage all their clients as well as their sub – brokers.

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This project report will able to understand how broking company
manage their daily work efficiently and what are the basic requirements of
them.
Index:
Chapter Particulars Page No
No.
1 Industry Profile 7
2 Company Profile 27
3 Research Methedology 49
4 Operation Management in Stock Market 53
4.1 Introduction 54
4.2 KYC & DP Department 55
4.3 Customer Care Department 68
4.4 Security Department 72
4.5 Compliance Department 77
4.6 Surveillance Department 84
4.7 Research Department 90
4.8 System and Software Department 94
5 Conclusion 98
6 Reference 86
6.1 Annexture 101
6.2 Bibliography 106

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CHAPTER-1
IndustryProfile

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Introduction to the Industry:
Financial System:
The economy of each and every country in based on the sound financial system which
helps in production, capital and economic growth by encouraging savings habits, mobilizing
savings from house holds and other segments and allocating savings into productive usage
such as trade, manufacture, commerce etc.
Thus, financial system provides bridge for surplus of the savers to be utilized by the
deficit spending units.
The financial system includes three basic elements:
Financial
System
Financial
Financial
Markets
Instruments
Financial
Intermediaries
 Financial Market:
Credit Money
Market Market
Forex Capital
Market market

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Market Purpose Players Regulatory
Money market Short Term ( from Banks, FIs, FIIs, RBI

one day to one year) Corporates, MF,
Govt.
Capital market Long Term (above Corporates, Banks, SEBI

one year) FIs, FIIs, MF,
Individuals
Forex market Short Term Long Banks, Corporates, RBI

Term Foreign authorized forex
currency funds dealers
Credit market Short Term Long Banks, FIs, RBI

Term Rupee funds Corporates
 Financial Intermediaries
Development Financial Institutions

Commercial Banks
Non banking financial Institutions
Insurance Organisation
 Financial Instruments
Equity Shares
Preference Shares
Bonds
Debentures etc…
Initial Public Offering

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History of Stock Market:
The stock market has a long history. According to French historian Fernand Braudel, in
11th century Cairo, Islamic and Jewish traders had already established every form of
trade association. They were knowledgeable about credit and payment methods.
Braudel's suggestions negate the opinion that the Italians contrived these methods later.
In 12th Century France, the courratiers de change dealt with managing and regulating
the debts of agricultural communities on behalf of the banks. They can be referred to as
the first brokers, because they only dealt with debts. The people of Flanders and the
neighboring counties also implemented this idea, and Beurzen was soon introduced in
Ghent and Amsterdam.
In late 13th Century, commodity traders in Bruges gathered inside the house of a man
named Van Der Beurse. In 1309, they were named the "Brugse Beurse," and
institutionalized their unofficial meetings.
The Bankers of Venice started trading in government securities in the middle of the
13th century. In 1351, the Government of Venice prohibited the spread of rumors done with
the intention of decreasing government fund prices. During the 14th century, the Bankers of
Pisa, Verona, Genoa, and Florence also started trading in government securities. This was
possible because these independent city-states were governed by a group of influential
citizens, and not by a duke.
Later, joint stock companies were started in the Netherlands. This provided
shareholders the opportunities to invest in business ventures and get a contribution of their
profits or losses. In 1602, the Dutch East India Company issued their first shares through the
Amsterdam Stock Exchange, and it was the first company to issue stocks and bonds. A stock
exchange in London started trading stocks in 1688. The Amsterdam Stock Exchange was the
first stock exchange to introduce continuous trading in the earlier part of the 17th Century.

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According to Murray Sayle, the Dutch were the originators of short selling, option
trading, debt-equity swaps, merchant banking, unit trusts, and other speculative instruments.
Stock markets are currently present in every developed and most developing countries, but
the biggest stock markets are present in the United States, Canada, China (Hong Kong),
India, UK, Germany, France, and Japan.
Broking industry in India:
The Indian retail brokerage industry consists of companies that primarily act as agents
for the buying and selling of securities (e.g. stocks, shares, and similar financial instruments)
on a commission or transaction fee basis. It has two main interdependent segments: Primary
market and the Secondary market.
Some of the main characteristics of the brokerage industry include growth in e-broking,
decline in brokerage fees, growing derivative market and growing derivative market and
many more.
There are several national as well as local players in stock trading services which are
providing various services to their customers like online trading, portfolio management
system, stock broking etc. They are helping the investors to take decision about where to
invest because there is lots of Investment Avenue available with investors. Some of them are
Motilal Oswal, India Infoline, Anandrathi, India bulls etc
Lot of brokerage companies is moving towards consolidation with the smaller ones
becoming either franchisee for the larger brokers or closing operations. There is an increasing
demand for online trading due to consumer’s growing preference for Internet as compared to
approaching the brokers.
New forms of trading including T+2 settlement system, dematerialization etc are
strengthening the retail brokerage market and attracting foreign companies to enter the Indian
industry Various alternative forms of investment including fixed deposits with banks and post
offices etc act as substitutes to retail broking products and services.

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An agent that charges a fee or commission for executing buys and sells orders
submitted by an investor. The firm that acts as an agent for a customer, charge the customer
the commission for its service. Roles similar to that of a stockbroker include investment
advisor, financial advisor and probably many others. A stockbroker may or may not be also
an investment advisor.
A broker works for a brokerage firm (a sell-side institution). A trader works for a buy-
side institution (mutual fund, investment advisory firm, insurance company, etc.) or for
himself. Brokers don't care what they sell and at what prices, as long as they get to sell a lot
of it. Trades (professional ones anyway) work to make sure that they are transacting at the
best possible price at the lowest possible cost.
Indian Capital Market:
The Indian Capital Market is one of the oldest capital market in Asia which evolved
around 200 years ago. The working of stock exchanges in India started in 1875. BSE is the
oldest stock market in India. The history of Indian stock trading starts with 318 persons
taking membership in Native Share and Stock Brokers Association, which we now know by
the name Bombay Stock Exchange (BSE).
The National Stock Exchange of India Limited (NSE) is the largest stock exchange
established in 1992 by Industrial Development Bank of India, Industrial Credit and
Investment Corporation of India, in terms of daily turnover and number of trades, for both
equities and derivative trading. The NSE's key index is the S&P CNX Nifty, known as the
Nifty50, which is an index of fifty major stocks weighted by market capitalization. BSE and
NSE represent themselves as synonyms of Indian stock market.
To prevent frauds, the Government formed The Securities and Exchange Board of
India, through an Act in 1992. SEBI is the statutory body that controls and regulates the

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functioning of stock exchanges, brokers, sub-brokers, portfolio manager’s investment

advisors etc. SEBI oblige several rigid measures to protect the interest of investors. Now with
the inception of online trading and daily settlements the chances for a fraud is nil, says top
officials of SEBI.
Structure of Capital Market:
Capital
Capital
market
market
Equity
Equity Debtmarket
Debt market
market
market
Primarymarket
Primary market
Derivatives
Derivatives
-publicissues
-public issues
Secondary
Secondary market
market Primary
Primary Secondary
Secondary
market segment segment
segment
-private
-private market segment
-exchange
-exchange
placement
placement
NSE,BSE,
BSE, traded
traded
NSE,
OTCE I, ISE,
OTCEI, ISE,
Regional
Regional
Domestic
Domestic International
International Stock Futuresand
Futures and
market Stock
Market
Market market Exchanges options
options
Exchanges
Stock
Stock
Index
Index

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Primary Market:
For corporate enterprises, expansion, modernization, reorganization, and mergers

require long-term funds to be raised through the issue of shares, debentures and bonds, all of
which find their way to the secondary market through the new issue market. The term does
not necessarily refer to newly issued stocks, although initial public offerings are the most
commonly known new issues. Essentially, the function of the New Issue market lies in
facilitating the transfer of investible funds to corporate organization. Initial issue of shares by
new enterprises may substantially account for volume of activities in the new issue market
and it has been so during the eighties and earlier at various times.
Secondary Market:
The market where securities are traded after they are initially offered in the primary
market. Most trading is done in the secondary market. To explain further, it is trading in
previously issued financial instruments. An organized market for securities examples are the
New York Stock Exchange(NYSE), Bombay Stock Exchange(BSE), National Stock
Exchange(NSE), bond market, over the counter markets, residential mortgage loans,
governmental guaranteed loans etc.
Role and Functions of Stock Exchange:
1. Established for the purpose of assisting, regulating and controlling business of buying,
selling and dealing in securities.
2. Provides a market for the trading of securities to individuals and organizations
seeking to invest their saving or excess funds through the purchase of securities.
3. Provides a physical location for buying and selling securities that have been listed for
trading on that exchange.
4. Establishes rules for fair trading practices and regulates the trading activities of its
members according to those rules.
5. The exchange itself does not buy or sell the securities, nor does it set prices for them.
6. The exchange assures that no investor will have an undue advantage over other
market participants.

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7. This means that orders are executed and transactions are settled in the fastest possible
way.
8. Investors make informed and intelligent decision about the particular stock based on
information.
9. Listed companies must disclose information in timely, complete and accurate manner to the
Exchange and the public on a regular basis.
Broking industry in India:
The Indian retail brokerage industry consists of companies that primarily act as agents
for the buying and selling of securities (e.g. stocks, shares, and similar financial instruments)
on a commission or transaction fee basis. It has two main interdependent segments: Primary
market and the Secondary market.
Some of the main characteristics of the brokerage industry include growth in e-broking,
decline in brokerage fees, growing derivative market and growing derivative market and
many more.
There are several national as well as local players in stock trading services which are
providing various services to their customers like online trading, portfolio management
system, stock broking etc. They are helping the investors to take decision about where to
invest because there is lots of Investment Avenue available with investors. Some of them are
Motilal Oswal, India Infoline, Anandrathi, India bulls etc
Lot of brokerage companies is moving towards consolidation with the smaller ones
becoming either franchisee for the larger brokers or closing operations. There is an increasing
demand for online trading due to consumer’s growing preference for Internet as compared to
approaching the brokers.
New forms of trading including T+2 settlement system, dematerialization etc are
strengthening the retail brokerage market and attracting foreign companies to enter the Indian
industry Various alternative forms of investment including fixed deposits with banks and post
offices etc act as substitutes to retail broking products and services.
An agent that charges a fee or commission for executing buys and sells orders
submitted by an investor. The firm that acts as an agent for a customer, charge the customer

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the commission for its service. Roles similar to that of a stockbroker include investment
advisor, financial advisor and probably many others. A stockbroker may or may not be also
an investment advisor.
A broker works for a brokerage firm (a sell-side institution). A trader works for a buy-
side institution (mutual fund, investment advisory firm, insurance company, etc.) or for
himself. Brokers don't care what they sell and at what prices, as long as they get to sell a lot
of it. Trades (professional ones anyway) work to make sure that they are transacting at the
best possible price at the lowest possible cost.
National Stock Exchange (NSE)
National Stock Exchange of India (NSE) is India's largest Stock Exchange & World's
third largest Stock Exchange in terms of transactions. Located in Mumbai, NSE
was promoted by leading Financial Institutions at the behest of the Government of
India, and was incorporated in November 1992 as a tax-paying company.
In April 1993, NSE was recognized as a Stock exchange under the Securities Contracts
(Regulation) Act-1956. NSE commenced operations in the Wholesale Debt Market (WDM)
segment in June 1994. Capital Market (Equities) segment of the NSE commenced operations
in November 1994, while operations in the Derivatives segment commenced in June 2000.
NSE's markets
NSE provides a fully automated screen-based trading system with national reach in the
following major market segments:-
• Equity OR Capital Markets {NSE's market share is over 65%}

• Futures & Options OR Derivatives Market {NSE's market share over 99.5%}
• Wholesale Debt Market (WDM)
• Mutual Funds (MF)
• Initial Public Offerings (IPO)

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Bombay Stock Exchange (BSE)
Bombay Stock Exchange is the oldest stock exchange in Asia with a rich heritage, now
spanning three centuries in its 133 years of existence. What is now popularly known as BSE
was established as "The Native Share & Stock Brokers' Association" in 1875.
BSE is the first stock exchange in the country which obtained permanent recognition
(in 1956) from the Government of India under the Securities Contracts (Regulation) Act
1956. Over the past 133 years, BSE has facilitated the growth of the Indian corporate sector
by providing it with an efficient access to resources. There is perhaps no major corporate in
India which has not sourced BSE's services in raising resources from the capital market.
Today, BSE is the world's number 1 exchange in terms of the number of listed
companies and the world's 5th in transaction numbers. The market capitalization as on
December 31, 2007 stood at USD 1.79 trillion. An investor can choose from more than 4,700
listed companies, which for easy reference, are classified into A, B, S, T and Z groups. The
number of companies listed on the BSE at the end of December 1994 was 4,702.

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Rapid Growth:
The last decade has been exceptionally good for the stock markets in India. In the back
of wide ranging reforms in regulation and market practice as also the growing participation of
foreign institutional investment, stock arkets in India have showed phenomenal growth in the
early 1990s.
The stock market capitalization in mid-2007 is nearly the same size as that of the gross
domestic product as compared to about 25 percent of the latter in the early 2000s. Investor
base continued to grow from domestic and international markets. The value of share trading
witnessed a sharp jump too. Foreign institutional investment in Indian stock markets showed
continuous rise reaching about USD 10bn in each of these years between FY04 to FY06.
Stock markets became intensely technology and process driven, giving little scope for
manual intervention that has been the source of market abuse in the past. Electronic trading,
digital certification, straight through processing, electronic contract notes, online broking
have emerged as major trends in technology. Risk management became robust reducing the
recurrence of payment defaults. Product expansion took place in a speedy manner. Indian
equity markets now offer, in addition to trading in equities, opportunities in trading of
derivatives in futures and options in index and stocks. ETFs are showing gradual growth.
Within five years of introduction of derivatives, Indian stock markets now are ranked first in
stock futures and fourth in index futures.
Indian stock markets are transaction intensive and thus rank among the top five
markets in this regard. Stock exchange reforms brought in professional management
separating conflicts of interest between brokers as owners of the exchanges and
traders/dealers.
The demutualization and Corporatisation of all stock exchanges is nearing completion

and the boards of the stock exchanges now have majority of independent directors. Foreign
institutions took stake in India’s two leading domestic stock exchanges. While NYSE Group
led consortium took stake in the National Stock Exchange, Deutsche Börse and Singapore
Stock Exchange bought equity in the Bombay Stock Exchange Ltd.

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The Indian broking industry is one of the oldest trading industries that has 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. With the purpose of gaining a deeper understanding about the role of the Indian stock
broking industry in the country’s economy, we present in this section some of the industry
insights gleaned from analysis of data received through primary research.
For the broking industry, we started with an initial database of over 1,800 broking
firms that were contacted, from which 464 responses were received. The list was further
short-listed based on the number of terminals and the top 210 were selected for profiling. 394
responses, that provided more than 85% of the information sought have been included for this
analysis presented here as insights. All the data for the study was collected through responses
received directly from the broking firms. The insights have been arrived at through an
analysis on various parameters, pertinent to the equity broking industry, such as region,
terminal, market, branches, sub brokers, products and growth areas.
Some key characteristics of the sample 394 firms are:
On the basis of geographical concentration, the West region has the maximum
representation of 52%. Around 24% firms are located in the North, 13% in the South and
10% in the East 3% firms started broking operations before 1950, 65between1950-
19an32%post1995 On the basis of terminals, 40% are located at Mumbai, 12% in Delhi, 8%
in Ahmedabad, 7% in Kolkata, 4% in Chennai and 29% are from other cities. From this
study, we find that almost 36% firm’s trade in cash and derivatives and 27% are into cash
markets alone.
Around 20% trade in cash, derivatives and commodities In the cash market, around
34% firm’s trade at NSE, 14% at BSE and 52% trade at both exchanges. In the derivative
segment, 48% trade at NSE, 7% at BSE and 45% at both, whereas in the debt market, 31%
trade at NSE, 26% at BSE and 43% at both exchanges Majority of branches are located in the
North, i.e. around 40%. West has 31%, 24% are located in South and 5% in East In terms of
sub-brokers, around 55% are located in the South, 29% in West, 11% in North and 4% in
East Trading, IPO’s and Mutual Funds are the top three products offered with 90% firms
offering trading, 67% IPO’s and 53% firms offering mutual fund transactions In terms of

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various areas of growth, 84% firms have expressed interest in expanding their institutional
clients, 66% firms intend to increase FII clients and 43% are interested in setting up JV in
India and abroad In terms of IT penetration, 62% firms have provided their website and
around 94% firms have email facility.
Branches & Sub-Brokers:
The maximum concentration of branches is in the North, with as many as 40% of all
branches located there, followed by the Western region, with 31% branches. Around 24%
branches are located in the South and East constitutes for 5% of the total branches of the total
sample.
In case of sub-brokers, almost 55% of them are based in the South. West and North
follow, with 30% and 11% sub-brokers respectively, whereas East has around 4% of total
sub-broker.

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Financial Markets in India:
The financial markets have been classified as cash market, derivatives market, debt
market and commodities market. Cash market, also known as spot market, is the most sought
after amongst investors. Majority of the sample broking firms are dealing in the cash market,
followed by derivative and commodities. 27% firms are dealing only in the cash market,
whereas 35% are into cash and derivatives. Almost 20% firms trade in cash, derivatives and
commodities market. Firms that are into cash, derivatives and debt are 7%. On the other
hand, firms into cash and commodities are 3%, cash & debt market and commodities alone
are 2%. 4% firms trade in all the markets.
In the cash market, around 34% firms’ trade at NSE, 14% at BSE and 52% trade at
both exchanges. In the equity derivative market, 48% of the sampled broking houses are
members of NSE and 7% trade at BSE, while 45% of the sample operate in both stock
exchanges. Around 43% of the broking houses operating in the debt market, trade at both
exchanges with 31% and 26% firms uniquely at NSE and BSE respectively.

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Of the brokers operating in the commodities market, 57% firms operate at NCDEX
and MCX. Around 20% and 21% firms are solely in NCDEX and MCX respectively,
whereas 2% firms trade in NCDEX, MCX and NMCE.
Current Scenario:

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The current consensus on India is very positive, and it is easy to find a real bull among
major market participants. Investment by private corporate accountant for 41% of total
investment in Indian economy in 2007-08. A significant proportion of corporate investment
was financed by equity raised from domestic and overseas markets. To that extent total
investment in Indian economy is directly influenced by the behavior of capital market. Total
financial savings of India’s household were Rs. 5,53,000 crore in 2007-08, accounting for
48% of their total savings.
Impact of budget 2009 on Indian capital market assumes specific significance. Average
level of Sensex increase sharply from 9540 in January 2006 to 19,827 in December 2007.
Indian company successfully raised equity resources of Rs. 1,31,000 crore from the capital
market in 2007, while FIIS pumped in U.S. $ 18 billion in Indian equity market in 2007.
As against this in 2008, Indian corporate could raise only Rs. 29,000 crore, while FIIs
withdrew $ 12 billion from Indian market due to the serve global financial crisis. This has
adversely affected total corporate investment in 2008, which has in turn lead to a significant
slow down in industrial growth. Fortunately second quarter of 2009 has witnessed a
remarkable recovery of global equity markets and, in this process of market recovery Indian
equity market has outperform almost all leading global markets. During March to June 2009,
Sensex has increased by 75% as compared to 39% growth in china and 23% in U.S.
Indian market continues to outperform global capital markets, during the rest 2009,
would succeed in attracting huge inflows of both foreign direct investment as well as FIIs
investments. This would have a significant impact on short-term as well as long term
prospects for the overall development of Indian economy. It would also enable the
government to maximize resource mobilization through an aggressive disinvestment
programme.

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Future of Indian Market:
India just keeps getting better and better. The economy is growing rapidly
surpassing some of Asia’s biggest economies. India is now becoming the third largest country
in Asia economically. India has created the best growth story that happen over a long time.
Although India is growing, there can still be corrections in the market. No matter how well a
country is doing, there is always something that can be fixed. They would like to wait until
the market is fixed to invest.
When thinking about all of the bad things in the news that can affect the market in a
negative way, think about the things that affect it in a positive way as well. You need to look
at a market in the long-term. When seeing it in the short-term every market will look bad due
to recent news. An investor needs to look past that. It is never guaranteed that you will make
a lot of money when investing in market, including an emerging one. However, India is said
to be number one in the world right now for investment opportunities.
Remember, that even with India doing so well, there are always going to be flaws in
the market, just like every market. Many things can happen in which India can lose the things
it relies on. Any news related event that happens in any country will affect that countries
market and sometimes other countries as well. India, having a very rapid growing economy is
also a very expensive country in Asia. Many have high hopes for India and if investors invest
in India, they would be buying into a country that has an excellent opportunity to make
money over long-term.

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Major Players of Brokers:
NATIONAL PLAYERS REGIONAL PLAYERS
ANGEL BROKING R.WADIWALA SECURITIES
RELIANCE MONEY JAINAM
INDIA BULLS CONCEPT
INDIA INFOLINE MONARCH
RELIGARE SECURITIES
MOTILAL OSWAL
ANAND RATHI SECURITIES
SHAREKHAN
ICICI DIRECT
KARVY STOCK BROKING LIMITED
KOTAK SECURITIES
HDFC SECURITIES

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CHAPTER-2
COMPANYPROFILE
2.1 Jainam Share Consultants Pvt. Ltd.
History:

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Jainam Share Consultants Pvt. Ltd. was incorporated on 10th November 2003 and it is
mainly carrying on the broking business in the equity market. The company has acquired
memberships of the two major stock exchanges of India; National Stock Exchange of India
Ltd. (NSE) and Bombay Stock Exchange Ltd. (BSE). The company is also registered as a
Depository Participant (DP) with Central Depository Services (I) Ltd. (CDSL).
The company’s registered office is situated at,
M-5/6, Malhar Complex,
Dumas Road, Ichchanath,
Surat 395007.
The company commenced its BSE operations from 4th October 2004 and its NSE
operations from 17th March 2005. Since incorporation the company has been consistently
growing with the present client base of around 39000+ clients in Know Your Client( KYC)
and 21000+ clients in Depository Participants (DP). The company has approximately 250
outlets to cater to the needs of the investors for their equity trading in the stock exchanges.
And they have total 18 their own branches in India.
Jainam Share Consultants Pvt. Ltd. has also started trading in Currency Derivative
Segment with memberships in MCX Stock Exchange Ltd (MCX-SX), National Stock
Exchange of India (NSE) and Bombay Stock Exchange Limited (BSE) in the year 2008.
Jainam Commodities Pvt. Ltd.

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Jainam Commodities Pvt. Ltd. was incorporated on 1st June 2005 & is mainly carrying
on the broking business in the commodity market with a client base of around 600 clients.
The company has acquired memberships of the two major commodity exchanges of India viz.
National Commodity & Derivatives Exchange Ltd. (NCDEX) & Multi-Commodity Exchange
of India Ltd. (MCX).
Board of Directors:
1 Dr. Jitendra Shah

2 Mr. Chirag Shah
3 Mr. Milan Parikh
4 Mr. Nipun Shah
5 Mrs.Purna Shah
Business Network:
 Head Office: At registered address, Surat.

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 Local Branches: 13 Branches in Surat city.
 Regional Branches:
 Ahmedabad
 Baroda
 Bhavnagar
 Bharuch
 Mumbai
 Navsari
Jainam Organisation Hirearchy

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Board of Directors
Operation Finance HRM

Marketing &
Business
Development
General Account &

Banking
KYC
& IT Distributi
Surveillan Equity
DP Dep on
ce Resear
t
ch
Back Softwar IPO

Complian FD
Offic e Dept
ce
e Custom
er Care Insuran
ce
Chann
el
Partner Mutu
s al
Fund

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Mission:
“TO PROVIDE WORLD CLASS SERVICES AND CREAT WEALTH FOR EVERY ONE”
Vision 2015:
“TO BE THE MOST PREFERRED ORGANIZATION PROVIDING ALL FINANCIAL

SERVICES ACROSS THE COUNTRY”
Five CORE VALUES of company:
1. Change
2. People Development
3. Security
4. Team Work
5. Integrity

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 Jainam Share Consultants Pvt. Ltd.
 Member: Bombay Stock Exchange Ltd. (BSE)
Trading Member ID: 2001
SEBI Registration No: INB011211639 (CM Segment)
 Member: National Stock Exchange of India Ltd. (NSE)
SEBI Registration No: INB231216939 (CM Segment)
SEBI Registration No: INF231216939 (Derivatives Segment)
 Member: Central Depository Services (I) Ltd. (CDSL)
DP ID: 41500
SEBI Registration No: IN-DP-CDSL-322-2005
 Jainam Commodities Pvt. Ltd.
 Member: Multi-Commodity Exchange of India Ltd. (MCX)
FMC Registration No: MCX/TCM/CORP/0924
 Member: National Commodities & Derivatives Exchange Ltd. (NCDEX)
FMC Registration No: NCDEX/TCM/CORP/0723

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Core Strength of Jainam:
• Dr. Jitendra Shah is highly regarded by society for his contribution in various field.
• Milan Parikh is well experienced having clear cut goal of customer’s delight in
mind.
• Nipun Shah a master engineer in bringing technology.
• Mr. Chirag Shah a visionary, powerful in leading team of Jainam.
• Mr. Bharat Parikh with full focus to give good investment support to customers.
Even the name ‘Jainam’ derived from the first letter of the above three directors.
Strategy:
• Build long term relationship with customer by winning their trust.

• Give decided services to all customers by protecting their investment in volatile
circumstances and adding value to their wealth.
• Integrate the best in technology, research and analysis into the business model
ensuring growth not only in business but also in customer relationship.
Jainam Strengths:
• Every customer is provided one stop solution for trading in the equity market and
commodity market.
• Provisions of free, state of art research to all clients.
• Dedicated and experienced team for any type work,
• Inspiring and powerful leadership.
• Customer base of more than 35000+

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Products and services of the company:
• Equity & Derivatives
• Commodity
• Currency
• Re(defining) Search
• DP Services
• IPO
• Mutual Fund
• Fixed Deposit

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2.2 About Department:
2.2.1 Human Resource Department

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Human Resources Department Structure:
Managing Director
Department Head
Senior Executive
Junior Executive Junior Executive

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Introduction:
The Organization’s HR department plays a significant role in day to day life

activities. Its activities and functions are related with other departments. They are running
with near by 120 employees in H.O. branch. And approx 225 employees in total branches.
While they are performing their task of HRM, they are considering mainly two factors
- GOAL and ACTIVITY. They are giving importance to each goal and activity.
Activities carried by HRD:
 Attendance Management
 Personal file updating
 Leave Management
 Contract Management for labour
 Maintaining Attendance
 Statutory Compensation
 Salary & Bonus
 Welfare Activity
 Medical
 Education
 Health check up
 ISO Documentation
 HR Budget
 MIS Report
 Training and development
 Recruitment & Selection
 Induction and Orientation

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 Performance Appraisal
 Separation
 Transfer
 Resignation
Human Resource Systems support the mentioned driving forces in the following
manner at Jainam Shares Consultant pvt. ltd:
 Salary and basic needs

 Competitive with the industry
 Parity within the organisation
 Providing growth compared to the industry
 Compensation strategy concentrated towards Retention of Employees
 Work Environment
 Employee engagement measurement
 Policy formulation and its strict adherence
• Administration policies
• Performance management policies
 Clarity of Job, Role, responsibility and accountability
 Growth prospects
 Career planning
 Learning need identification
 Opportunities to gain knowledge
 Opportunities apply the knowledge gained.

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Job Analysis:
Definition of Job Analysis:
The procedure for determining the duties and skill requirements of a job and the kind
of person who should be hired for it. They have suggest me a below uses of job analysis for
their organization.

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Uses of Job Analysis

Information
Job Analysis
Job Description
And
Job Specification
Recruiting and Performance Job Evaluation— Training
Selection Appraisal Wage and Salary Requirements
Decisions Decisions
(Compensation)
Recruitment and Selection:
After doing Job analysis and HRP, they recruit and select the person as per job
requirement. The below diagram shows how Job analysis and HRP helpful in Recruiting and
Selection. Every firm can hire a person after the Job analysis and HRP has been done.

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Recruiting and
Selection
Decisions

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2.2.2 Marketing & Sales Department:
Marketing & Sales Department:
Introduction:
Marketing is so basic that it cannot be considered as a separate function. Marketing has

been defined in various ways. The definition that serves our purpose best is as follows:
“marketing is a social and managerial process by which individuals and groups

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obtain what they need and want through creating, offering and exchanging
products of value with others.”
This definition of marketing rests on the following core concepts, needs, wants &
demands, products, value, cost & satisfaction, exchange and transactions, relationship and
networks, markets and marketers and prospects.
“Marketing management is the process of planning and executing the conception,

pricing, promotion & distribution of ideas, goods and services to create exchanges that
satisfy individual and organizational goals.” This definition recognizes that marketing
management is a process involving analysis, planning, implementation and control; that it
covers goods, services and ideas; that it rests on the notion of exchange, and that the goal is
to produce satisfaction of the parties involved.
Marketing management takes place when at least one party to a potential exchange
thinks about the means of achieving the desired responses from the other parties. Marketing
management has the task of influencing the level; timing and composition of demand in a
way that will the organization achieve its objectives. Marketing management is essentially
demand management.
 Functions of department:
1. Taking reverences from sub brokers.

2. Making call for appointment to explain detailed information.
3. Fixing meeting with client and sharing information.
4. Problem solving of clients and sub brokers.
5. Meeting with existing sub brokers in 15 days.
6. Meeting with new clients in every week.
7. For potential consumers they are appointing one special guide
 Advertisement:
When I asked her about advertisement and its rules, she told me that if the firm wants
to put single banner they need to take permission from SEBI. If there are any change in the
matter immediately they have to inform to SEBI about changes.

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 Strategy:
JAINAM has a strategy to stabilize their firm in this competitive environment. They
believed that “If they think that other big firms are their competitors then they will not be
able to survive in the market. So they believe that they, themselves are competitors of the
firm”
 Promotion Method:
1. Telephone & E-mail:
 Customer Satisfaction Measures.

 E-mail and Telephonic Complaint.
 By appointing employee to special customers.
 Order Conformation.
 By Giving daily reports about market and industry to customers.
Distribution Channel:
Zero Level:
Jainam Shares consultant

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Direct Indirect
customer customer
(Sub-brokers)
One level:
Jainam Shares
consultant
Direct customer
(Sub-brokers)
Indirect customer
(Clients)

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2.2.3 Finance Department
Finance Department:
Introduction:
The primary purpose of any business is to earn profits. To earn profit, the business has
to produce goods or render services. To do either, management of business must have

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adequate supply of funds. It is the responsibility of the finance department to ensure the
supply of the needed funds.
Financial management is the application of planning and control to the finance function
of a business to ensure that the funds needed are raised and used effectively for its benefits.
Financial management means procurement of funds at minimum cost and its effective use in
order to maximize the wealth of shareholders.
The company’s Finance department is divided into two parts:
 Account Department
 Banking Department
Functions of Account Department:
 Payment of expenses.
 Final accounts.
 All types of taxes.
 Auditing and statutory auditing. (Quarterly)
 Daily or time to time banking match.
 Pay in pay out.
 Collection of check and entry maintenance.
 Enquiry and third party check.
Apart from above activities, this department prepare different types of expenses to
know how much overheads are occurred during a period of time. Following are the
details of electricity expenses for the year 2009-2010 of Jainam Company.
April 203730.97

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May 226685
June 228232.51
July 204936.61
August 211546.84
September 221290
October 237652.08
November 217813.63
December 226681.59
January 187513.14
February 207587.9
March 296912
With the help of this data, they get clear cut idea about company’s expenses for
specific period of time. And through which they can reduce their expenses where they can do.
This department maintain all the expanses for all branches and their head office.
Functions of Banking Department:
 Capital Structure maintenance
 Pay in pay out of checks with exchanges.
 Maintenance of OD

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 Fulfillment of necessary requirement of department of financial needs.
CHAPTER-3
ResearchMethedology

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OBJECTIVESOFPROJECT
 To know in depth the exact concept of the Operation Management in Stock

Market.
 Understanding the fundamentals of stock market and share trading.
 To find out how stock broking companies working with their clients and their sub-
brokers.
 To know the various activities of broking company i.e, how do they manage their
clients record, how they solve their clients and sub-brokers query, how they do
research.
 How to manage risk by setting limit for the clients.
 Understanding the procedure of opening of new trading account and its requirements
demanded by exchange board.

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LIMITATIONSOFPROJECT
 The major limitation of the study is that it was not possible to collect all the data and
information necessary for the deep study as certain data and documents were
confidential.
 6 weeks is not sufficient for gathering and understanding the each and every aspect of
Operation Management in Stock Market.

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RESEARCHMETHEDOLOGY
Research Methodology means the researcher uses the methodology to study and
prepare the report. Here I have taken the following Research Methodologies :
 Internal Information :
The internal sources of information are collected from company’s Brochure,

documents and internal staff members of the company.
 External Information :
The external sources of information are the websites, magazines, books.

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CHAPTER-4
Operation Department

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Introduction :
In stock market, people buy and sell shares. When price of a share is low, buyer buy
share and sell it when price goes up. Few years ago, there was a physical market system. But
now trading is done online.
Person who wants to buy share will come into market with low price and seller will
come into market with high price. Intermediate party comes between both the party and help
them to execute trade. In market term they are known as broker. Buyer has his trading
account with broker company. Buyer will contact broker and give them his client code, name
of scrip, quantity and price. Broker will punch an order into computer and when an order
matches on price and on time basis, trade will execute at buying price. Same procedure is
done for selling.
Money Money
Buyer Broker Seller
Brokerage Brokerage
Shares Shares
For above procedure, how Jainam company deals with their Clients and Exchanges
are mentioned below.

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4.1 KYC (know your client) department & DP:

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KYC (know your client) department :
This is the 1st step of process of enter into the stock market where new client will come
and open his/her account for trading.
Meaning of kyc
Know your customer (KYC) is the due diligence and bank regulation that financial
institutions and other regulated companies must perform to identify their clients and ascertain
relevant information pertinent to doing financial business with them. Know your customer
policies are becoming increasingly important globally to prevent identity theft fraud, money
laundering and terrorist financing.
Beyond name matching, a key aspect of KYC controls is to monitor transactions of a

customer against their recorded profile, history on the customers account(s) and with peers.
Kyc in stock market
Know Your Customer - The US rules of fair practice for dealers in stocks recommend
that before dealing with a customer the stockbroker must find out the client’s other
stockholdings and his financial situation and needs. The customer’s risk – bearing ability, his
investment horizon, his financial liquidity, are important factors in a good broker – client
relationship.
Just as the stockbroker should know about his client the investor must know about
himself thoroughly and have his investment objectives defined clearly, as also know exactly
how far he is wiling hand bale to bear risks.
Importance

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Know Your Customer (KYC) is the due diligence and bank regulation that financial
institutions and other regulated companies must perform to identify their clients and ascertain
relevant information pertinent to doing financial business with them. Know Your Customer
policies have becoming increasingly important globally to prevent identity theft fraud, money
laundering and terrorist financing. In a simple form these rules may equate to answering a
few questions, but this is the tip of the iceberg and regulators now expect much more. KYC
should not be thought of as a form to be filled – it is a process to be undergone from the start
of a customer relationship to the end.
Ensure full compliance with KYC guidelines while also enhancing the equity of
customer experience, with VolkSoft’s tried and tested web-based KYC module.
With its comprehensive coverage of customer information and interface to back office
systems, the KYC module puts you in control. In today’s securities and financial market,
KYC is very important for those who are serious about protecting their business from
becoming a conduit for illegal or terrorist activities.
JAINAM KYC module has been designed from the ground up to to meet and exceed
the specifications of SEBI, NSE and BSE with valuable inputs from some of the most
respected stock brokers in the country.
The KYC module can be deployed on a web server on the Internet or your corporate
intranet, and scales well to accommodate large number of concurrent users. It is ideally suited
for corporates with several geographically distant offices. Finally, it takes into consideration
the practical aspects of day to day operations and includes all conceivable features needed to
make paperless KYC a reality. The KYC module reduces manpower requirements and
provides enormous savings in cost and effort.
KYC PROCESS

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To open an account, there are four type of forms i.e, individual, HUF, commodity and
non-individual. Client can choose any of them as per their requirement. To open an account
client need to submit required proof.
In individual form, BO need to fill up name, marital status, Father’s/Husband’s
name,pan card no, date of birth, gender, telephone no, mobile no, fax, E-mail address. BO’s
photograph is required and cross signature on that is must. Bank details should be filled by
BO. In bankdetails bank name, address, account type, account no, micr code, IFSC code
should be filled.
In demat details, if DP proof is given, then CDSL/numeric no and NSCDL – IN and 6
digit no should be filled. In case of second holder, his/her name, pan card no, address and
cross signature on photograph is required. In tariff sheet, in which BO need to select scheme
name. there are different schemes. Client can choose any of them.
Services Scheme Name

Investor Trader Lifetime Deposite IPO
Deposit - - - 2000/- -
One time Maintenance Charges - - Rs. 900/- - -
Annual Maintenance Charges Rs. 200/- Rs. - - -
600/-
Receipts(Market & Off-Market) Nil
Delivery (Debit) To Jainam
per transaction Pool with Rs. 10/- Nil Rs. 10/- Rs. 10/- Rs. 25/-
Auto Payin
To Jainam Rs. 12/-
Pool Rs. 25/-
without
Auto Payin
To other 0.01% 0.01%
Pool & Off Min.Rs.15/- Min.Rs.25/-
Market
Pledge Creation, Closure & Rs. 25/- per request
Invocation
Dematerialization Rs. 50/- per DRF
Rematerialization

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As per CDSL Actuals
In declaration form, client is ready to deal with company’s rules and regulations. In
that, holder, sub holder’s name and signature is required. In nomination form, nominee
details like name, address, photograph is needed. In case of minor nominee, guardian details
are required. Guardian’s pan card and address proof is required. Guardian’s cross signature is
must on photograph. Details of witness like name, address, signature is required in case of
nominee. In DP-BO Agreement, client’s name, address, cross signature is required. In case of
second and third holder, their name, address and signature is also needed.
After filling all the details in form, data should be transferred in software for further
process. To open a demat account, entry is done in CDSL. To open a trading account, Tech-
Excel software is used. Once you transferred all details in software you will get UCC i.e,
unique client code. After that mapping is done in admin. Client can only do transactions after
mapping.
ACCOUNT OPENING
Introduction
An entity that wants to keep its cash safe in a bank has to open an account with a bank
as a first step and maintain cash in book entry form. Similarly, an investor has to open a
demat account with any DP of CDSL as a first step to hold securities in demat form in the
depository system. The investor can open an account with any DP of CDSL. CDSL system
facilitates opening of demat accounts for different categories of investors.
Demat accounts opened with CDSL are referred as ‘Beneficial Owner Accounts’ or
‘BO account’. When securities are held in physical form name of the investor is recorded in
the books of the company as ‘Registered owner’. When the same securities are converted into
electronic form and held in a demat account, the depository becomes registered owner of the
securities. Since depository is acting as a custodian of the securities, original investor is
legally entitled for all rights as well as liabilities attached with securities and hence is called

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‘Beneficial Owner’. All accounts opened on CDSL system are beneficiary accounts
irrespective of the type of account.
A demat account may be opened and maintained in the name(s) of one person (sole
holder) or more than one persons (joint holders). All the joint-holders have to sign the
application form and the agreement. Though the beneficial ownership of jointly held
securities vests equally in all joint-holders, communications about the joint demat account are
provided only to the first holder. The dividend and interest warrants, annual reports and
notices for meetings are also issued to the first holder only.
Documents to be submitted while opening a demat account
DPs are required to obtain a copy of one of the following documents as Proof of
Identity and Proof of Address. Proof of identity is to be obtained for all the holders. For First
holder proof of correspondence address as well as permanent address is to be obtained. For
joint holders proof of only permanent address is to be obtained. In addition, obtaining PAN
Card details of all the holders is compulsory for all categories of demat account holder(s).
The DP official accepting the account opening form should verify the photocopy of the
PAN Card against the original, sign and stamp the copy and write: “VERIFIED WITH
ORIGINAL” on the copy. The documents / information to be submitted by various categories
of investors are as follows:
Investor can different types of account like individual account, minor account, HUF
account, NRI account, and so on. Investor need to submit different documents for different
types of accounts.

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Details of trading account opened during last year in Jainam Company.

April 320
May 405
June 669
July 478
August 500
September 443
October 533
November 489
December 524
January 480
February 892
March 1871

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DP department:
Introduction:
Just as one have to open an account with a bank if he/she want to save his/her money,
make cheque payments etc, one need to open a demat account if one want to buy or sell
stocks. So it is just like a bank account where actual money is replaced by shares.
One have to approach the DPs to open one’s demat account. Let's say one’s portfolio of
shares looks like this: 40 of Infosys, 25 of Wipro, 45 of HLL and 100 of ACC. All these will
show in one’s demat account. So don’t have to possess any physical certificates showing that
one own these shares. They are all held electronically in your account.
As one buy and sell the shares, they are adjusted in one’s account. Just like a bank
passbook or statement, the DP will provide you with periodic statements of holdings and
transactions.
Nowadays, practically all trades have to be settled in dematerialised form. Although the
market regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of
upto 500 shares to be settled in physical form, nobody wants physical shares any more. So a
demat account is a must for trading and investing.
Depository Participants

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As per Depositories act and SEBI regulations, a depository cannot interact directly with
BOs and has to deal through its agents called Depository Participant. Every DP, before
commencement of its operation, has to obtain a certificate of registration from SEBI. The
entities have been classified by CDSL in to six types for customization of the CDSL
application. The six types are as given below:
DP Description Can Open Accounts

Type
1 Clearing house / Clearing corporation For in house activities only
2 Clearing Member For all categories of Investors
3 Regular DP such as Banks, NBFC etc. For all categories of Investors
4 Registrar and Transfer Agents Not allowed to open accounts
5 Depository Not allowed to open accounts
6 Custodian For all categories of Investors
Process to start DP:
Look for a DP to have an account with most banks are also DP participants, as are
many brokers. One can choose your very own DP. A broker is separate from a DP. A broker
is a member of the, who buys and sells shares on his behalf and on behalf of his clients.
A DP will just give you an account to hold those shares. One do not have to take the
same DP that your broker takes. You can choose your own. But many brokers offer special
incentives in the form of lower charges for opening demat accounts with their DPs. One must
fill up an account opening form and sign an agreement with one’s DP. The DP will ask for
some documents as proof of one’s identity and address.
Check with them what they require. For instance, some may accept a driver's license,
others may not.
Here is a broad list (One won't need all of them though):

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• PAN card
• Voter's ID
• Passport
• Ration card
• Driver's license
• Photo credit card
• Employee ID card
• Bank attestation
• IT returns
• Electricity/ Landline phone bill
While they only ask for photocopies of the documents, they will need the originals for
verification. One shall have to submit a passport size photograph on which you sign across.
When opening an account with a bank, one need a minimum balance.
Not so with a demat account. A demat account can be opened with no balance of
shares. And there is no minimum balance to be maintained either. You can have a zero
balance in your account.
Charges for it:
The charges for account opening, annual account maintenance fees and transaction
charges vary between DPs.
After starting Dp:

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When one open an account, the DP will allot a unique BO ID (Beneficial Owner
Identification) Number, which one need to quote for all future transactions. If you want to
sell your shares, you need to place an order with one’s broker and give a 'Delivery
Instruction' too one’s DP.
The DP will debit one’s account with the number of shares sold. One will receive the
payment from one’s broker. If one want to buy shares, inform one’s broker about your
Depository Account Number, so that the shares bought are credited into one’s account.
Difference between a depository and a depository participant:
A depository is a place where the stocks of are held in electronic form. The depository
has agents who are called depository participants (DPs). There are only two depositories in
India -- the National Securities Depository Ltd (NSDL) and the Central Depository Services
Ltd (CDSL). There are over a 100 DPs.
Changes of Bank account details:
Since in the depository system monetary benefits on the security balances are paid as
per the bank account details provided by you at the time of account opening, you must ensure
that any subsequent change in bank account details is informed to your DP immediately.
Dematerialization :
Dematerialization is the process by which a BO can get his physical securities

converted into electronic form. The BO submits a request to the DP in the Dematerialization
Request Form (DRF) along with the certificates. The DP verifies the information on the DRF
and physical certificates and enters the details in the system to setup a request electronically.
The DP sends the physical documents to the concerned Issuer/ RTA. If the Issuer/ RTA finds
the DRF and certificates in order, it registers CDSL as the registered holder of the securities

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and confirms the DRN electronically to CDSL. On receiving such confirmation, CDSL credits
the BO account.
Rematerialization :
Rematerialisation is the process of converting securities, held in a demat account (i.e

electronic form) to physical form. A BO intending to convert the securities into physical form
submits a remat request to the DP in a Rematerialisation Request Form (RRF). DP verifies the
information on the RRF and enters the details in the system to setup a request electronically.
The system generates a unique serial number called as Rematerialisation Request Number
(RRN), which can be used for future reference. The DP sends the RRF to the concerned Issuer/
RTA. If the remat request is in order, the Issuer/ RTA approves the same and confirms the
RRN electronically to CDSL. On receiving such confirmation, CDSL debits the BO account.
Physical certificates are sent by the Issuer / RTA directly to the investor.
Pledge / Unpledge / Invocation
As per section 12 of the Depositories Act, 1996, securities in demat mode can be
pledged. When securities are to be pledged for advance / loan, two entities are involved in this
transaction viz. the pledgor and the pledgee. The entity-taking loan against securities is called
‘pledgor’ and the entity that gives the loan is called pledgee. Pledgee may be a financial
institution or any other entity providing advance / loan against securities. The ownership of
securities continues to remain with the pledgor but the pledgee has a lien on them.
For creating pledge in depository system, the pledgor as well as the pledgee should have
demat accounts. For the securities in demat form, the pledgor may be able to get higher loan
amounts, with reduced margins and lower rate of interest as compared to securities in physical
form.
Bankers, share brokers, investors and other entities dealing in securities make frequent
use of the pledge facility in the normal course of their business. CDSL system permits creation
of pledge against such securities held in demat mode.

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Unpledging (Closure of the pledge)
CDSL system allows unpledging i.e. release the pledged securities when the pledge
obligation is fulfilled or as agreed between the pledgor and the pledgee. CDSL system provides
two options to unpledge the securities. IN the first option, the unpledge request can be set-up
by pledgor and the same is approved by the pledgee. In the second option, pledgor need not set-
up the unpledge request, Pledgee will set-up the unpledge request unilaterally.
Closing or Transfer:
One can submit account closure request to your DP in the prescribed form. The DP
will transfer all the securities lying in the account, as per the instruction, and close the demat
account.
Facilities provided by JAINAM :
Jainam Share Consultants Pvt. Ltd. (a member of CDSL) provide service to customer
by efficient management of securities in electronic form through demat accounts.
 Latest technologies used for security, smooth & quick operations

 Multi-location services across the city of Surat, Mumbai, Bhavnagar, Rajkot, Baroda,
Ahmedabad.
 Information by phone regarding opening of Demat Account & Demat Confirmation
 Competitive charges
 Viewing facility of your holdings, transactions, bills & ledgers on our website
 High value transactions/DORMANT Account transactions verified with account
holder.
 Automated pay-in facility for trade through Jainam broking division.
Value Added Services Available at Jainam DP:

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SMART : SMS Facility
e-reports : Facility to view all the reports on your mail ID
easi : Facility to view the holding with valuation
easiest : Facility to upload transactions through internet from your desktop
Details of DP account opened in Jainam Company
APRIL 186
MAY 242
JUNE 456
JULY 347
AUG 364
SEPT 314
OCT 441
NOV 464
DEC 451
JAN 445
FEB 810
MAR 2018

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4.2 Customer Care Department:

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Customer Care Department:
Definition:
Customer Care is a heart of an organization. Customer will come first in this

department only. Our executive are solving queries of clients, Giving sauda summary – debit
credit - ledgers etc, Handling calls of clients etc. It is the processing of meeting (and
exceeding) your customer expectations of service.

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Mission of the department:
“One satisfied customer is more valuable than 5 lakh rs, Advertisement”.
Objectives of Customer Care
• create a culture of customer focus

• creating rapport and building loyalty
• achieving customer satisfaction
They are committed to providing customers with efficient, local, support them to
achieve the maximum benefit from their solution. They have structured their business so that,
no matter where customers are located, they have direct access to local sales, support and
management to ensure they are responsive to all customers' needs - not just product
maintenance.
The objectives/functions of the Customer Relations Strategy are to:
• Provide customers and staff with clear standards and expectations

• Ensure all customer contact reaches an appropriate conclusion
• Minimise incidences of repeat contact
• Seek to provide a seamless service for customers
• Provide equal and easy access to our services at a time, place and channel that meet
the needs of residents, businesses and other stakeholders
• Cater for customers needs irrespective of age, gender, physical or financial ability,
ethnic origin, race, religion or geographical location
• Provide a prompt, courteous and knowledgeable response to all customer enquiries.
• Equip our staff to provide customers with an excellent standard of service
• Enable our customers to provide feedback easily, through complaints, customer
surveys, etc
• Use customer compliments, comments and complaints to drive improvements to
service

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• Improve the speed, quality and consistency of response to enquiries by having our
information in a format that can be easily accessed
• Integrate customer care into mainstream service provision
• Continually increase the level of resources going into front line services
It is their belief that by meeting these objectives they will:
• Delight the customer by providing excellent standards of service

• Maximize satisfaction with the quality of the service provided
Developing Customer Care strategies:
Customer Care Department do survey to know their client as well as their internal staff
satisfaction. Head of that department prepare questionnaire and distribute it to their clients
and company’s employee. With the help of that data, they can have idea about client
satisfaction level.

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4.3 Security Department:
Introduction :
System Department support clerical operation but do not include, the trading of stocks
and other securities. All written confirmation and settlement of trades, record keeping, and

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regulatory compliance happen in the back office. The back office departments handle
compliance with government regulations, legal matters, settlements, and clearing services.
While they do not generally deal with clients, they are necessary for the smooth function of
the office.
Functions of System Department :
The main function of this department is to doing Pay-In and Pay-Out of Shares. Other
functions are like:
1) Corporate Action – Dividend, Bonus, Split, Scheme of arrangement, Reduction of

capital etc.
2) Client pay out
3) Handling Auction
4) Billing of BSE and NSE
Clearing & Settlement :
Clearing & Settlement cycle is working on T+2 basis in all securities. When a clients
are doing transaction, they need to settle their account accordingly. If client is buying, he has
to pay money and if he is selling his shares, he has to give shares at mentioned time.
There are 2 depository through which settlement is done.
• NSCCL for NSE and
• CDSL for BSE
When trading is done in NSE, settlement is done through NSCCL(National Securities

Clearing Corporation Limited) and when trading is done in BSE, settlement is done through
CDSL (Central Depositories Services Ltd) .

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For NSE, broker need to open 1 Pool account through which exchange and broker can
do transaction. Following is the settlement cycle of NSE.
CLIENT
Pay – in Pay – out
POOL A/C
Pay – in Pay – out
NSCCL
For BSE, broker need to open 3 account for pay - out.
1. Client account
2. Beneficiary account
3. X factor
– If there is debit of client, transfer it to beneficiary account and
– If there is credit of client, transfer it to client account.
CLIENT
A/C

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PAY - IN PAY – OUT

PRINCIPAL POOL
CISA A/C
BOISL BOISL
Daily work of System Department :
 In Monday morning, around 9 am, they first prepare shortage report and inform their
clients who has sold shares on Thursday and not give shares yet.
 At 10:30 am, Exchange take shares from Jainam DP A/c. It is called pay-in. If any
client transfer shares after 10:30 am from his DP A/c, it can not be transferred to
Exchange and Jainam prepare auction file for that.
 At 12 o’ clock, Exchange send one another file to Jainam. In that file, Auction file,
Normal short file, trade to trade file are included. It is basically file of shortages –
pay – in / pay – out short file.
 At 1:30 pm, Exchange send shares pay – out file which is also known as RCBDL and
at 2:30, Exchange send auction pay-out file which is also known as ARBDL. Once
they receive these two files, they bifurcate all details as client wise.
 At 4:10 pm, Exchange send Brokerage Query Report. In that report, Exchange
aggregate all transactions of Jainam Company during a day.
– How many transactions are done on that particular day
– How many shares are sold
– How many shares are bought
– Whose account is in debit position

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– Whose account is in credit position
 After that, they are doing intra settlement.
For example :
A client has bought 100 shares on Monday.
Sold 50 shares on Tuesday and
Sold 30 shares on Wednesday.
Then on Thursday settlement is done of remaining 20 shares.
 Some client has gives Power of Attorney (POA) to Jainam. On settlement day, if
client has not transfer shares into Jainam Account and Jainam has POA of that client,
he can directly transfer shares from client account to Jainam account.

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4.4 Compliance department:
Introduction :
Department set up by brokers and all organized stock exchanges to oversee market
activity and make sure that trading and other activities comply with Securities and Exchange
Commission and exchange regulations. A company that does not adhere to the rules can be
delisted, and a trader or brokerage firm that violates the rules can be barred from trading.

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Compliance Department of Jainam :
Compliance departments will take into account both governmental standards that apply
as well as any regulations that are created and followed within the specific brokerage or stock
exchange. This department ensures that all transactions are legal, ethical, and are in the best
interests of the clients involved. The compliance department will be primarily focused on
making sure all transactions are in line with regulations laid out by the Securities and
Exchange. The compliance department functions with the purpose of ensuring that fair play
takes place at all times. Along with the orderly and legal processing of orders from clients,
the compliance department will also analyze transactions that are made on behalf of the
investment portfolio of the firm.
By evaluating various incidences of trading, it is possible to ensure that all activity is

being conducted in a manner that is acceptable and within the guidelines provided by the
local jurisdiction. This can help to minimize the incidence of such unfair practices as insider
trading, as well as make it possible to identify investors who are employing trading practices
that are questionable. In this sense, the compliance department of Jainam protects all the
participating investors from incurring a loss due to illegal and unethical practices on the part
of a few.
Criteria of Compliance Department :
(1) Order Management System and Internal Controls
• Procedures to be put in place for receipt of orders, recording the same and placing the
orders in the trading system of the Exchange.

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• Client-wise and security-wise limits on exposure, open position, etc. to be set up.
• Risk mitigation measures to be documented and made accessible to clients.
• Documentation of internal controls on areas like order modification / cancellation,

client code changes and post-trade activities.
(2) Contract note
• Trading Member has to ensure that contract notes are issued in the prescribed format
within 24 hours of execution of trades on the Exchange. Copies of contract notes and
proof of Delivery / Despatch to be maintained.
• To be issued on pre-printed stationary and signed by an Authorised Signatory

mentioning name.
• Unique Client Code and PAN of the Constituent to be printed.
• With running serial number (reset to one at the beginning of the Financial Year).
• Dealing office details and PAN of the Trading Member to be printed.
• Trade price and brokerage to be mentioned separately.
• Electronic Contract note (ECN)
• Delivery of ECNs to be made by sending e-mail to the mail id provided by client.
• Client to consent that non-receipt of bounced back mail by trading member amounts
to delivery of contract notes.
(3) Charging of Brokerage
• Brokerage rate is subject to a maximum of 2.5% of the transaction amount. However,

in Capital Market segment, trading member can charge brokerage up to 25 paise per
share if the market value of the scrip is less than Rs 10/-.

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• In case of option contract, brokerage is to be charged on option premium amount and
shall not exceed 2.5% of premium amount or Rs. 100/- per lot whichever is higher.
(4) Quarterly statement of accounts
• Send statement of accounts for funds and securities to all the clients in such
periodicity not exceeding three months (calendar quarter) within a month of the
expiry of the said period.
• The statements should have an account of all receipts and deliveries / payments
during the relevant period and not simply, the details of holdings as at the end of the
period.
• Maintain proof of dispatch / delivery for the same.
• An error reporting clause giving 30 days time is to be incorporated
(5) Banking and Demat account operations
• Maintenance of separate client bank account and constituent beneficiary account for
keeping clients’ funds and securities respectively.
• Segregate own and clients’ funds / securities in separate accounts.
• Funds / securities of clients not to be deposited in own accounts.
• No payments towards expenses / levies can be made from client bank account.
• Receipts from / transfer to third parties, of funds and securities should not be effected
in client bank account and constituent beneficiary account
(6) Dealing with clients’ funds & securities
• Ensure that funds / securities are received from respective clients’ accounts only.
• Ensure that pay-out of funds / securities is made to respective clients within one
working day of pay-out by Exchange.

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• Clients’ funds / securities are not used for any purpose other than meeting the
respective client’s margin / pay in obligations.
• Clients’ securities should not be pledged to bank / financier for raising funds.
• Ensure that no cash dealings are made with clients.
(7) Margin Requirements
• Ensure to collect initial margin and maintenance margin in the approved mode
(funds / bank fixed deposits / bank guarantee / approved securities with appropriate
hair cut) from the clients.
• Ensure to put in place risk management system regarding the amount of margin
collection and the mode of collection from other clients in Capital Market segment.
• Ensure to collect initial margin in the approved mode from clients in F & O segment
on an upfront basis.
• Trading member is required to report margin actually collected from clients, to

NSCCL on a daily basis.
• In the computation of margin collection from the clients for the purpose of reporting
to the Exchange.
• Margins taken in the form of securities in the approved list should be valued as per the
closing rate on the previous trading day and not the trading day, with an appropriate
hair-cut.
(8) Internet Trading
• Ensure reliability, security and confidentiality of internet trading system.

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• Client specific user id and password to be used for execution of trades by the
respective client.
• Password policy to be adhered (secrecy, periodic change and other aspects).
• Internet clients shall trade through internet trading system and only in case of
connectivity problems, their orders can be entered through back up system (like
call and trade facility) after proper identification of the client.
• Ensure that clients do not deal on behalf of others.
• Trading Members providing internet based trading facility are required to submit
SSL certificate, for year ending June every year.
(9) Display of Notice Board / SEBI registration certificate
• Trading Members shall display, in all their offices / offices of their registered sub
brokers where trading terminals are located, notice boards/plates at prominently
visible locations, painted / printed in a permanent manner, in a font and colour which
enables easy reading of the subject matter and containing prescribed details.
• Display copy of SEBI registration certificate in the above said offices.
(10) Issue of advertisement
• Before releasing any advertisement for business promotion, a copy of the

advertisement has to be submitted to the Exchange at least seven days in advance and
written permission of the Exchange is to be obtained before the advertisement is
published.
• Ensure to abide by the code of advertisement given by the Exchange.
• The trading members may apply for approval of advertisement as per the
prescribed format.
(11) Due diligence in employee activities

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• Trading Member shall establish and enforce procedures to supervise its business and
the activities of its employees that are reasonably designed to achieve compliance
with all the relevant regulatory requirements.
• Trading Member shall specifically authorise in writing persons, who may be

authorised to transact on behalf of the member and do such acts which the member
delegates to such persons.

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4.5 SurveillanceDepartment
Introduction :

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With a view to avoid any kind of market failures, the broker have developed a
comprehensive risk management system. This system is constantly monitored and upgraded.
It encompasses capital adequacy of members, adequate margin requirements, limits on
exposure and turnover, indemnity insurance, on-line position monitoring and automatic
disablement, etc. They also administer an efficient market surveillance system to detect and
prevent price manipulations. The clearing corporation has also put in place a system which
tracks online real time client level portfolio based upfront margining.
What is Risk Management?
Risk management is the process of measuring, or assessing risk and then developing
strategies to manage the risk while attempting to maximize returns. Typically involves
utilizing a variety of trading techniques, models and financial analyses.
The potential return from any investment is generally depending to the amount of risk
the investor is willing to assume. Investors will not take on greater risks without the
possibility of higher earnings. This is called the risk premium.
Importance :
Risk management can objectively evaluate and express the acceptability of the
inherent risk exposure and can explicitly state their intent regarding the continued acceptance
of, or alterations to, the inherent risk exposure relative to a commonly understood reference
point. It can also immediately separate the suitability of instruments, positions, strategies, and
tactics into some action groups.
A stock brokerage firm must identify factors that can trigger operational, market, credit
and regulatory risks. It needs to establish procedures so that risk management begins at the
point nearest to the assumption of risks. This means adapting trade-entry procedures,
customer documentation, client engagement methods, trading limits, and other normal

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activities to maintain management control, generate consistent data, and eliminate needless
exposure to risk.
Risks which are faced by borking company :
Stock brokerages face operational, market, credit and regulatory risks. Securities firms
engage in various financial activities, particularly serving as brokers between two parties in
transfers of financial securities, and as dealers and underwriters of these securities.
Operational risk is the risk of monetary loss resulting from inadequate or failed internal
processes, people and systems or external events.
For the stock broker, operations risk is essentially counter-party risks such as
nonpayment, non-delivery of scrip, denial of matched order by client/s, trading errors, and
sudden closure of banks where funds are deposited. The main risk arising from securities
activities is the market risk associated with proprietary holdings and collateral obtained or
provided for specific transactions. Market risk refers to the possibility of incurring large
losses from adverse changes in financial asset prices such as stock prices or interest rates.
This risk entails the erosion of value of marketable securities and assets, due to factors
beyond an enterprise’s control. There are two common risks that investors should notice them
well:
Market Risk : The possibility that the value of financial markets rise or fall.
Inflation Risk: The risk that rising prices of goods and services over time, Inflation risk is
also known as 'purchasing-power risk' and it is one of the most important factors for long-
term investing.
One can't control the inflation risk, but with a good strategy one can manage and
control the affect of market risk on your stocks.
Survelliance Department of Jainam is setting automatic limit on consideration of ledger

balance, margin account balance, cash collaterals, share collaterals, demat account holding
under power of attorney and beneficiary / pool account holding with haircut.

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Objective
• To automatically set limits of individual clients as well as clients of groups, family,

branch
• Consideration of ledger balance and margin account balance while setting limits
• Consideration of cash collaterals as well as share collaterals while setting limits
• Consideration of demat account holding under power of attorney while setting limits
• Consideration of beneficiary / pool account holding with haircut
Functions of Surveillance Department :
• File uploading of limit setting

• Selling of client stock
• handling HNI clients.
• Providing and managing ongoing limit setting
Company has bifurcated all their clients into four category – A, B, C & D. Those
clients who are in A category are trust worthy people and their past records are good. If in
any case, client comes into debit, company shows their past records, their ledger accounts,
market position and decide whether to give them credit or not. Clients who are coming in D
category, are not liable and company do not allow them to work till they clear their debit. All
this work is done through software.
Following is the ledger account of a client.
Date Voucher No Code Settlement Ch R Debit Credit Balance

q Date

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no
532139.00 432952.00
Summary Ageing In/Out Money 897520.00 DR
Col.
Scrip Ben.Qty Soh.Qty Net Cl.Price Amount
Qty
ASHOK LEYLAND LTD 0 0 100.000 100.000 71.50 7150
BARTRONICS INDIA
0 0 200.000 200.000 149.05 29810
LIMITED
ESSAR OIL LTD 0 0 800.000 800.000 139.55 111640
FACOR STEELS 0 0 2000.000 2000.000 2.18 4360
IDEA CELLULAR LIMITED 0 0 100.000 100.000 64.05 6405
INTENS TECH 0 0 17001.000 17001.000 8.82 149949
JAIPRAKASH POWER
0 0 1050.000 1050.000 72.45 76073
VENTURES LIMITED
JINDAL STEEL 0 1000.000 0 1000.000 630.80 630800
JUPITER BIOS (BSE
0 4000.000 0 4000.000 87.15 348600
INDONEXT)
MOSER-BAER (I) LTD 0 0 300.000 300.000 68.50 20550
NTPC LTD 0 0 100.000 100.000 198.90 19890
PRAJ INDUSTRIES LTD 0 0 50.000 50.000 81.00 4050
Ramco Systems Limited 0 1000.000 0 1000.000 120.85 120850
RELIANCE POWER LTD. 0 0 27.000 27.000 175.10 4728
RELIGARE ENTER. LTD. 0 0 20.000 20.000 416.35 8327
TATA CHEMICALS LTD 0 0 200.000 200.000 325.00 65000
TATA
0 0 400.000 400.000 21.95 8780
TELESERV(MAHARASTRA)
UCO BANK 0 0 500.000 500.000 83.25 41625
Total 0 6000.000 28848 28848 1658586

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From the above table, company can check how much amount is debit or credit and in
case of debit, they check how much stock is there in their beneficiary account. In the above
case, client is in debit of Rs. 8,97,520.00 but company has stock of that client in their
beneficiary account of Rs. 11,00,250.00. So, company will give him limit of Rs. 2,02,730.00
Rs.

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4.6 Research Department:
Introduction:

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In the firm of share broking organization research department plays crucial role for
time to time updates and other technical services for clients as well as internal purpose.
Jainam believe that companies with good fundamental can yield better returns on investment.
With this perspective in mind, Jainam has established an excellent research that is backed by
professionally trained persons. They have best research tools that are updated on regular
basis. This helps them to track major events in markets as and when they occur, thus giving
them advantage of faster execution on any important information that would lead to wealth
creation for their clients.
Jainam is providing various facilities like :
(1)Technical Services:
Intra-day Calls : For day traders’ Jainam provides intraday calls with entry, exit
and stop loss levels during the market hours and their calls are flashed on their
terminals. Their analysts continuously track the calls and provide the
recommendations according to the market movements. Past performance of these calls in
terms of profit/loss is also available to their associates to enable them to judge the success
rate.
Posting Trading Calls : Jainam’s “Position Trading Calls” are based on a

thorough analysis of the price movements in selected scripts and provides calls
for taking positions with a 10 - 15 days time span with stop losses and targets.
These calls are also flashed on their terminals during market hours.
Derivative strategies : Their analyst take a view on the NIFTY and selected scripts
based on derivatives and technical tools and devise suitable “Derivative Strategies” ,
which are flashed on their terminals and published in their derivative reports.
(2) Daily Services:

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Market Outlook at 9:30 AM

A crisp pre-market report that arms their clients with sensitive information before the
opening bell. Key corporate developments, policy announcements, geo-political news and
views are analyzed for their impact on the market.
Technical Report at 6:00 PM
This report analyses trading patterns, historical background, market position of key
stocks and offer short term (1 to 5 days) as well as medium term (10 to 20 days) views.
Tracking individual scripts as well as the Sensex and Nifty, its insight cuts through the
market maze.
Derivative Analysis Report

This report provides FII activity in derivative segments, change in open interest, put
call ratio, cost of carry of stock and index based derivative products. Their derivative analysts
use the above tolls to project the movement during the next trading sessions.
(3) Fundamental Research

• Daily Morning News Letter
• Market Mirror
• Weekly Maalamaal
• Weekly & Monthly Outlook(English & Gujarati)
• Fundamental Equity analysis & Reports
• Special Market Reports
• IPO Analysis
• Results Previews

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(4) Investment Advisory Services
• Live Information Desk
• Portfolio Restructuring
• Market Knowledge Seminar
• Value Added HNI services

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4.7 System (IT) & Software department:

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System (IT) Department
System department is the heart of the company. This department have to maintain
100% uptime for all type of connectivity, Networking and other technology. Handling
Hardware and Connectivity related problems of all department and Branches.
Introduction :
Information Technology has transform the stock exchange by adding value to the
secondary market for effective performance of stock buyers secuirity.
It is true that in modern time, the stock exchange market cannot function effectively
without the use of information technology. Information technology has helped the stock
exchange market in being more dynamic and productive. People and companies can make
investments in stocks with the click of a mouse. Companies can see the exact position of
their stocks in a very short time with the help of IT. In the stock exchange itself, everything is
computer recorded. This helps in keeping the database current and uptodate.
System Department in Jainam Company :
Today India can boast that almost 100% trading take place through electronic order
matching.
Technology was used to carry the trading platform from the trading hall of stock
exchanges to the premises of brokers. Exchanges carried the trading platform further to the
PCs at the broker through the Internet.
Jainam System Department is divided into three categories :
System
Department

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Hardware ODIN Network
Jainam Company is having internet facility of many companies like Reliance,

Hathway, TATA, Bharti, BSNL etc. Main work of this department is to managing network of
company, their sub-brokers as well as their clients. Employees are working in shifts. They
are having hardware engineer who are taking care of company’s machines.
All branches of Jainam company are connected with at least two connectivity. If there
is a problem in one line they can continue their work with another connectivity.
Software Department :
Jainam has their own In-House Software development department. This department
developing new software as per the requirement. They are creating only in house software.
The main objective of this department is to make work easy.
Jainam is dealing with BSE, NSE, MCX,NCDEX. All exchanges have their own
softwares. It becomes very difficult for Jainam to set different PCs for different exchange.
Thus they made agreement (tie-up) with a company named Financial Technology Co. Ltd.
which is providing them ODIN software. With this software, all exchanges are covered in 1
screen. When they felt that they need reports like activity log, brokerage report they have
prepared softwares which are included in ODIN software.
This department is not required in allbroking companies. But Jainam has established
this department to make their work fast and easy.

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Products / Services offered by IT and Software Department :
Jainam company is purchasing softwares from other companies as well as they are having
their inbuild softwares also. They are as follows :
 Back – Office software : Tech Excel
 Spark Messenger
 net.net software
 Jainam is providing connectivity facility through VSAT and VPN.
 FTP software
 Risk Management software
 IT department is solving problems regarding ODIN Terminal Connectivity
 Jainam is having their own mail service.
Reasons for establishment of the department:
1. To build, stabilize, and deploy IT services, applications, and infrastructure

improvements in the most efficient way possible.
2. Software service problem was in very high degree
3. To become self dependent in making software for the business
4. In future to apply for innovations and creative ideas in business for growth and
expansion of the firm
5. To facilitate the A/C & trading department

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6. To solve it problems quickly.
7. Reliability and security of business plan
8. Asset protection
9. Restoration of a service to health when things go wrong
CHAPTER-5
Conclusion

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The activities which are undertaken in operations of stock market are taken here under
this project.
Operation Management is the most important part of any broking firm. Without it,
broker cannot run his business efficiently. It is the most important department in any business
which gives the clear picture about an organization day to day operation. Operation
Management is concerning with how company actually deals with their clients and sub-
brokers and follows rules and regulations of Exchange.
It is not only limited to dealing with the clients but also carrying the internal activities
efficiently within the organization and providing excellent customer service to their clients. If
there is a proper Operational Management, broker can handle their thousands of clients
efficiently and guide them, solve their problems and give them proper direction regarding
stock market activities and maintaining sub – brokers and clients data. By having a proper
operational management, the organization can experience tremendous increase in their
number of clients due to increase in customer satisfaction and cost- savings which further
leads to the success of the organizations.
However, in order to improve the business operations, all employees within the organization
need to be involved. The key thing to improve the operational management in any
organization is to identify where the error initially occurred, what caused it, and how can we
prevent it from reoccurring. If we don’t resolve it the problem is likely to continue.
Therefore, it is necessary to train our employees on those particular errors that occur
throughout the process. .

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CHAPTER-6

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Reference
Bibliography :
 Website:
 http://www.bseindia.com/
 http://www.nseindia.com/
 https://www.jainam.in/

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 http://www.enewhorizons.net/industries/Solutions_for_Stock_Brokers/Risk_Manage
ment_System.html/
 http://www.enewhorizons.net/industries/Solutions_for_Stock_Brokers/Online_Backof
fice.html/
 Reference Books :
 BSE’s Certification on Securities Market (BCSM)
 BSE’s Certification on Central Depository (BCCD)
 NSE’s Certification in Financial Markets
 Brouchers by Jainam Share Consultants Pvt. Ltd.

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OPERATION MANAGEMENT AT JAINAM SHARE CONSULTANT Pvt

“OPERATION MANAGEMENT IN STOCK MARKET”

Jainam Share Consultants Pvt. Ltd., SURAT

Prepared By Year Roll No

NIDHI H. PARIKH MBA SEM II, 2009-2011

Project Report is submitted to

Gujarat Technological University

In partial fulfillment for the requirement of

Masters of Business Administration Degree.

Under The Guidance Of

Mr. VATSAL PATEL

C.K.PITHAWALA INSTITUTE OF MANAGEMENT

Nr. Malvan Mandir, Via: Magdalla Port, Dumas Road, Surat

For The Year

C.K.PITHAWALA INSTITUTE OF MANAGEMENT

This is to certify that this summer training report titled “OPERATION

The project is forwarded for further evaluation to Gujarat Technological

C.K.PITHAWALA INSTITUTE OF MANAGEMENT

I hereby, NIDHI H. PARIKH, declare that,

This Project Report entitled, “OPERATION

MANAGEMENT IN STOCK MARKET” is the result of my own work and that

referred to legal purpose.

Place : SURAT SIGNATURE

MBA 2nd Sem.

C.K.PITHAWALA INSTITUTE OF MANAGEMENT

C.K.PITHAWALA INSTITUTE OF MANAGEMENT

Preservation, inspiration and motivation have always played a key role in

I have pleasure in grabbing the opportunity of expressing gratitude to all

I would like to express my whole heartedly thanks to other employees of

C.K.PITHAWALA INSTITUTE OF MANAGEMENT

This project report is related with basics information about

The microstructure of the stock market in which brokers work is highly

Operations Management explores the way organizations distribute their

C.K.PITHAWALA INSTITUTE OF MANAGEMENT

4 Operation Management in Stock Market 53

4.2 KYC & DP Department 55

4.3 Customer Care Department 68

4.4 Security Department 72

4.5 Compliance Department 77

4.6 Surveillance Department 84

4.7 Research Department 90

4.8 System and Software Department 94

6.1 Annexture 101

6.2 Bibliography 106

C.K.PITHAWALA INSTITUTE OF MANAGEMENT

C.K.PITHAWALA INSTITUTE OF MANAGEMENT

The financial system includes three basic elements:

C.K.PITHAWALA INSTITUTE OF MANAGEMENT

Money market Short Term ( from Banks, FIs, FIIs, RBI

Capital market Long Term (above Corporates, Banks, SEBI

Forex market Short Term Long Banks, Corporates, RBI

Credit market Short Term Long Banks, FIs, RBI

Development Financial Institutions

C.K.PITHAWALA INSTITUTE OF MANAGEMENT

History of Stock Market:

C.K.PITHAWALA INSTITUTE OF MANAGEMENT

Broking industry in India:

C.K.PITHAWALA INSTITUTE OF MANAGEMENT

Indian Capital Market:

C.K.PITHAWALA INSTITUTE OF MANAGEMENT

functioning of stock exchanges, brokers, sub-brokers, portfolio manager’s investment

Structure of Capital Market: