Minor Project Sara R

“A
STUDY ON GEOJIT FINANCIAL SERVICES WITH SPECIAL REFERENCE TO

MARKETING DEPARTMENT”
Dissertation submitted to
MAHATMA GANDHI UNIVERSITY, KOTTAYAM
In partial fulfilment of the requirement for the
Degree of Bachelor of Business Administration
SUBMITTED BY
SARA RAJAN
(Registration no: 190021082303)
Under the supervision of
Asst. Prof. DRISHYA S RAJ
Assistant professor Department of BBA

DEPARTMENT OF BACHELOR OF BUSINESS ADMINISTRATION BHARATA MATA
COLLEGE, THRIKKAKARA
KOCHI, KERALA
2019-2022

BHARATA MATA COLLEGE
(AFFILIATED TO MAHATMA GANDHI UNIVERSITY, KOTTAYAM)
BONAFIDE CERTIFICATE
This is to certify that the study report entitled “A STUDY ON GEOJIT FINANCIAL
SERVICES WITH SPECIAL REFERENCE TO MARKETING DEPARTMENT” is a record of
original work done by SARA RAJAN (Registration no: 190021082303) in partial
fulfilment of the requirement for the degree of Bachelor of Business Administration
under the guidance of ASST. PROF. DRISHYA S RAJ. ASSISTANT PROFESSOR,
DEPARTMENT OF BACHELOR OF BUSINESS ADMINISTRATION. This work has not been
submitted for the award of any other degree or titled of recognition earlier.

Prof. Dr. Shibi B. Asst. Prof. Drishya S Raj

Head of the Department Assistant Professor, Project guide

Department of BBA Department of BBA

Place:

Date: (External Examination)
DECLARATION
This is to declare that this Bonafede record of the project work done by me entitled “A
STUDY ON GEOJIT FINANCIAL SERVICES WITH SPECIAL REFERENCE TO MARKETING
DEPARTMENT” in partial fulfilment of the BBA Programme of Mahatma Gandhi
University under the guidance of Asst. Prof. Drishya S Raj, and that the report has not
found the basis for the award of any Degree/Diploma or other similar titles to any
candidate of any other university.
Place:
Date:

ACKNOWLEDGEMENT
First and foremost, we thank GOD ALMIGHTY who helped us to complete this project
successfully.
We extend our sincere thanks to Prof. DR. SHINY PALATTY, Principal of Bharata Mata
College and Prof. Dr SHIBI B., Head of the Department and Asst. Prof. DRISHYA S RAJ,
for their guidance, assistance and moral support in the completion of our project. And I
also thank all the teachers of the Bachelor of Business Administration department for
their valuable suggestions.
Finally, we thank all our dear friends and our parents for their help and cooperation for
the completion of the project.

TABLE OF CONTENT

CHAPTER CONTENTS PAGE

NO/CONT NO
ENTS
1 COMPANY PROFILE 1
1.1 BRIEF HISTORY OF THE ORGANISATION AND CURRENT BOARD 2

OF DIRECTORS
1.2 MISSION/VISION STATEMENT AND QUALITY POLICY 5

FOLLOWED/QUALITY CERTIFICATE ATTAINED
1.3 BUSINESS PROCESS OF THE ORGANISATION-LEVEL OF 6

OPERATIONS(GLOBAL/NATIONAL/REGIONAL)
1.4 CUSTOMERS OF THE ORGANISATION-LEVEL OF 11

1.5 COMPETITORS OF THE COMPANY 14
1.6 STRATEGIES-BUSINESS, PRICING, MANAGEMENT 15
1.7 CSR ACTIVITIES 18
1.8 COLLABORATIONS AND EXPANSION PLANS 21
1.9 SWOT ANALYSIS OF THE COMPANY 21
1.10 ORGANISATION CHART 23
2 AN OVERVIEW OF THE INDUSTRY 25
2.1 BRIEF HISTORY OF THE INDUSTRY 26
2.2 BUSINESS PROCESS OF THE INDUSTRY 28

2.3 MARKET DEMAND AND SUPPLY-CONTRIBUTION TO GDP- 29
REVENUE GENERATION
2.4 LEVEL AND TYPE OF COMPETITION-FIRMS OPERATING IN THE 35

INDUSTRY
2.5 PRICING STRATEGIES IN THE INDUSTRY 38
2.6 INDUSTRIAL PERFORMANCE-GLOBAL, NATIONAL AND 42

REGIONAL BASES
2.7 PROSPECTS AND CHALLENGES IN THE INDUSTRY 48
3 DISCUSSION 56
3.1 OBJECTIVE ASSESSMENT-OBSERVATIONS BY THE CANDIDATE 57
3.2 SPECIFIC LEARNING OUTCOME 62
3.3 CONTRIBUTION BY THE STUDENT GROUP 63
4 FINDINGS 68
BIBLIOGRAPHY 73

GEOJIT FINANCIAL SERVICES LTD 1

CHAPTER-1
COMPANY PROFILE

BHARATA MATA COLLEGE, THRIKKAKARA

INTRODUCTION

Geojit is a leading investment services company in India with a growing presence in the
Middle East. The company rides on its rich experience in the capital market to offer its
clients a wide portfolio of savings and investment solutions. The gamut of value-added
products and services offered ranges from Equities and Derivatives to Mutual Funds, Life
& General Insurance and the third-party Fixed Deposits. The needs of around 10,56,800
clients are met via multichannel services - a countrywide network of over 460 offices,
phone service, dedicated Customer Care Centre and the Internet.

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

The company also has a strategic presence in the Middle East region in the form of joint
ventures and partnerships. Barjeel Geojit Financial Services LLC, its joint venture with
the Al Saud Group, is headquartered in Dubai, in the United Arab Emirates, and has
branches in Abu Dhabi, Al Ain, and Sharjah. Aloula Geojit Capital Company, the joint
venture with the Al Johar Group in Saudi Arabia is headquartered in Riyadh with a branch
in Dammam. BBK Geojit Securities KSC, located in Kuwait, is a joint venture with Bank of
Bahrain, Kuwait and JZA. QBG Geojit Securities LLC in Oman LLC is the joint venture with
QBG and National Securities Company and is based in Oman. In addition, the company
has a business partnership with Bank of Bahrain and Kuwait in Bahrain.

1.1- BRIEF HISTORY OF THE ORGANISATION AND CURRENT BOARD OF
DIRECTORS

HISTORY OF GEOJIT


Geojit Financial Services Ltd was founded by C.J.George in 1987 is an investment service
company in India headquartered in Kochi, Kerala. It is the first to begin commodity
futures trading and operates a network of offices across India and the Middle East. Geojit
was the first company in India to launch online-trading facilities, develop franchise
models of sub broking, form joint ventures in West Asia and pepper, cardamom, gold and
silver in India. The product offerings of the company include equities and derivatives to
mutual funds, life and general insurance, commodities derivatives and portfolio
management and associates the company has expanded Dammam, Bahrain and Kuwait.
Geojit has listed Services- 512 offices across the country, Through joint ventures its
presence globally with offices in Dubai, Abu Dhabi, Sharjah, Al Ain, Muscat, Riyadh, on the
National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). C J George,
founder and CEO of the company, set up M/s C.J George and Co. in 1987 with Ranajit
Kanjilal as a partner. However, a formal partnership was formed in 1988 after Kanjilal
acquired membership in the Cochin Stock Exchange. The firm was then renamed as Geojit
and Co. The name 'Geojit' was coined by conjoining the first and last three words in the
names of the partners who set up the organization - C J George and Ranajit Kanjilal. In
1992, Kanjilal left the organization, and Geojit became sole proprietorship. In 1993, the
company opened its first branch at Muvattupuzha in Ernakulam and followed it up with
another branch in Trichur in Kerala.

BOARD OF DIRECTORS

● Mr Ramanathan Bupathy(chairman)
Mr Ramanathan Bupathy is a fellow member and former President of Institute of
Chartered Accountants of India and has been on the Board of Geojit since January 2006.

● Mr C.J.George(Managing Director and Promoter)
The Company was founded by Mr C.J.George in 1987. He has over 31 years of professional
experience in the securities market. He has presented numerous papers related to the
industry in seminars at national and international fora.

● Mr Mahesh Vyas (Non-Executive Independent Director)

Mr Mahesh Vyas is the Managing Director and CEO of the Centre for Monitoring Indian
Economy Pvt. Ltd (CMIE). CMIE is India's leading business information company.

● Mr Radhakrishnan Nair (Non-Executive Independent Director)
Mr Radhakrishnan Nair has four decades of experience in the financial sector. He started
his career as Probationary Officer with Corporation Bank in 1976 and rose up to the level
of General Manager in 2005.

● Mr James Varghese(Non-Executive Independent Director)
Mr James Varghese, IAS, retired as the Additional Chief Secretary of the Government of
Kerala. An officer from Kerala cadre, he has served in various capacities such as District
Collector - Malappuram and Idukki; General Manager - Kerala Financial Corporation and
Principal Secretary to Government of Kerala.

● Mr Punnoose George (Non-Executive Director)
Mr Punnoose George is an industrialist of repute with interests in manufacturing
industries, plantations and educational institutions. He is the Executive Director of
Kottukulam Group - Kottayam, Executive Chairman - SAINTGITS Group of Institutions,
Director and Partner of M/s.

● Mr Harikishore Subramanian (Non-Executive Director (Nominee)
Mr Harikishore Subramanian IAS is the Managing Director of Kerala State Industrial
Development Corporation Ltd. (KSIDC) & Executive Director of Kudumbashree. He is a
Master of Engineering by Academics and got into Indian Administrative Services from
Kerala Cadre in the year 2008.

● Mr A Balakrishnan (Whole Time Director)
Mr A Balakrishnan was the Managing Director of Geojit Technologies (P) Ltd. He joined
Geojit in 1998 and has been instrumental in spearheading the transformation of Geojit
into a technology-driven retail financial service intermediary that has pioneered many
innovations over the years to enhance the client's trading experience.

● Mr Satish Menon (Whole Time Director)

Mr Satish Menon joined Geojit in 1999 and has been the Executive Director of the
Company since 2011. At Geojit, he has been a key player in driving the company’s
business and spearheaded several initiatives. He is a Director of BBK Geojit Securities,
Kuwait. In 2016, he was awarded "Manager of the Year" by Kerala Management

● Ms Alice Geevarghese Vaidyan(Non-Executive Independent Director)
Ms Alice Geevarghese Vaidyan joined New India Assurance Co. Limited in 1983 as a direct
recruit officer and rose to the level of Deputy General Manager in 2008. She then joined
as Deputy General Manager of General Insurance Corporation and was promoted to
Chairman & Managing Director in 2016. She retired from General Insurance Corporation
on July 31, 2019.

1.2- MISSION/VISION STATEMENT AND QUALITY POLICY
FOLLOWED/QUALITY CERTIFICATION ATTAINED

MISSION AND VISION OF GEOJIT

Mission
To be an organization of choice as a Technology Partner, Employer & Corporate citizen
by constantly investing in their Products, People and Process.

Vision
To enable their clients to become leaders in their ecosystem by helping them build
strategic, business and technological edge by delivering cost-effective, high quality and
quick time to market solutions; translating to higher client satisfaction and stronger
client relationships.

QUALITY POLICY

Right from inception Geojit Financial Services Ltd. has been carrying out its business in a
socially responsible manner. From carrying out extensive campaigns on financial literacy
on savings and investments to giving contributions to philanthropic and charitable

causes such as support for pursuing higher education, for treatment of chronic diseases
etc, the Company has been doing its bit to promote the welfare of the society. In 2005, a
more focused approach was adopted in supporting social causes and since then the
emphasis shifted to undertaking more long term and sustainable projects. These policies
and procedures are framed to streamline the CSR activities of Geojit Financial Services
Ltd and its subsidiaries (if any of the subsidiaries satisfy the criteria defined by the
Companies Act 2013) to be in line with the Companies Act 2013 and the Companies Rules
2014.
Geojit Financial Services Ltd and its affiliates are committed to protect their customers’
personal information and/or sensitive personal data and strive to maintain the privacy
of personal information of customers. They have created this Privacy Policy to help
customers to understand how they collect, use and protect customers information when
people visit geojit web and WAP sites and use their products and services.

1.3- BUSINESS PROCESS OF THE ORGANISATION-PRODUCT PROFILE

Business process, business method or business function is a collection of related,
structured activities or tasks by people or equipment in which a specific sequence
produces a service. A business process begins with a mission objective (an external
event) and ends with achievement of the business objective of providing a result that
provides customer value. Additionally, a process may be divided into subprocesses
(process decomposition), the particular inner functions of the process. Business
processes may also have a process owner, a responsible party for ensuring the process
runs smoothly from start to finish.

PRODUCT PROFILE

● Geojit Financial Services Limited, formerly Geojit BNP Paribas Financial Services
Limited, is a retail financial services company. The Company offers a portfolio of
savings and investment solutions. The Company's products and services include
equities, derivatives, custody accounts, mutual funds, life insurance and general
insurance, property services, loan against shares, initial public offerings (IPOs),
portfolio management services and margin trading. The Company offers other

services, such as stock brokering services, depository services, financial products

distribution, and software consultancy and development services. The Company
offers SELFIE, an online trading platform. SELFIE offers an integrated security
view with quotes, charts, news, recommendations and maximum benefits payable
(MBP) windows in a place. SELFIE is available on the Web, as well as tablets. The
Company also offers a platform for its clients to buy/sell/rent Office/Commercial
Spaces and Residential Flats/Villas.

● Geojit, a member of NSE and BSE, has a network of around 460 branches in India
and abroad, rendering quality equity trading services. Geojit not only has a strong
offline presence but also provides automated online trading services.

● Geojit also provides a Call & Trade facility to its customers wherein they can place
and track their orders through our dedicated Call Centre Desk by calling the toll-
free number 1800-425-5501 or 91-484-2405822 (Standard Rates Apply).

● Geojit' retail spread caters to the needs of individual investors. Trading in equities
is made simple, safe and interesting with smart advice from the research desk
through daily SMS alerts, market pointers, periodical research reports, stock
recommendations and customer meets organized frequently.

● The online trading platform SELFIE, allows customers to access the markets by
setting up their own market watch, receiving research tips, stock alerts, real-time
charts and news and many more features enable the customer to make informed
decisions. SELFIE’s mobile edition allows customers to access the stock market on
their mobile phones.

• Geojit Commodities was a registered member of MCX & NCDEX and NMCE till
December 2008, after that it came out of commodity business. The main reason of
coming out from commodity business was merger with BNP Paribas which is a
financial institution. Financial Institutions and banks are not allowed to
participate in commodity futures.


• Geojit offers discretionary Portfolio Management Services (PMS) to HNIs (High

Net Worth Individuals) who seek customized solutions for their investment goals.
Geojit professional Portfolio Managers create an investment portfolio for you in
Equities, Fixed income, Bonds, Debt, cash and structure products to meet unique
needs.

• Geojit EzeeWill is a part of Financial Planning tool, where one can assign their
WILL of wealth via online tools. The uncertainty of life makes it very important to
have one's wealth reach those whom they wish and feel deserving in one's
absence.

Types of trading

● Geojit Equity Trading
Geojit is a registered member of NSE and BSE, you can trade in Equity Cash and
Equity Derivatives with Geojit using an online or offline (branch/sub-brokers)
network. Geojit equity research team is there for you to give daily research
reports, weekly research reports, latest market updates and news and intraday
stock tips.

● Geojit Commodity Trading
Geojit Commodities was a registered member of MCX & NCDEX and NMCE till
December 2008, after that it came out of commodity business. The main reason
for coming out from commodity business was the merger with BNP Paribas
which is a financial institution. Financial Institutions and banks are not allowed
to participate in commodity futures.

Geojit Portfolio Management Services (PMS)

Geojit offers discretionary Portfolio Management Services (PMS) to HNIs (High Net
Worth Individuals) who seek customized solutions for their investment goals. Geojit
professional Portfolio Managers create an investment portfolio for you in Equities, Fixed
income, Bonds, Debt, cash and structure products to meet your unique needs. The

investment decisions rest solely with the Portfolio Manager. The minimum investment
in PMS Scheme is Rs 25 lac. Currently, Geojit offers two products:

1. Advantage Portfolio: Investment in stocks of Mid and Small-cap companies that have
a soundtrack record, quality management, earnings and growth potentials and strong
fundamentals.
2. Freedom Portfolio: investment in undervalued stocks with high growth potential and
available at reasonable valuations.

● Geojit Investment Advisory Service
With Geojit Investment Advisory Services you can get Online Financial Planning,
Mutual Fund Advisory, Online Execution of buying into funds and Estate
Planning Services in association with NSDL e-Governance.

● Geojit Online Financial Planning
Geojit’s online financial planning service is a paid service. With this service, you
can plan for disciplined saving and informed decision making on personal
finances.
The module will offer you an objective, analytical perspective on key aspects of
your financial health.
The Geojit's Financial Planning platform will take you input your personal
details, understand your risk profile, analyze net worth, perform financial
wellness check, plan your life goals and retirement and to generate a financial
plan and periodically monitor your financial goals.

● Geojit Profiled Investment Tool
This is part of the Financial Planning service, where an investor wants to go for
long term investment for wealth accumulation. Profiled Investment Tool is an
online mutual fund, gold fund investment planning platform that will help you
analyze right funds for you after assessing your risk profile and identifying fund
categories that suits your profile. Geojit Financial Services Ltd has a two-step
process:

● Risk profiling
Recommending category of funds that suits your profile and selecting funds from
the recommended list.

● Geojit EzeeWill
Geojit EzeeWill is a part of the Financial Planning tool, where you can assign the
WILL of your wealth via online tools. The uncertainty of life makes it very
important to have your wealth reach those whom you wish and feel deserving in
your absence.

Geojit BNP Paribas NRI Service

If you are a Non-Resident Indian residing in the U.A.E, Saudi Arabia, Bahrain,
Kuwait or Oman, then you can become an NRI client of Geojit BNP Paribas. NRI
services by Geojit are not offered to US-Based NRIs.Geojit has joint ventures with
Middle East countries to facilitate NRI Trading to Middle East Investors in India.
Barjeel Geojit, a joint venture between the Sharjah based Sheikh Sultan Bin Al
Sooud Al Qassemi and Geojit BNP Paribas Financial Services Ltd. to facilitates NRIs
and investors from across the globe to invest in the Indian stock and derivative
markets of NSE/BSE along with a wide range of investment funds for effective and
efficient portfolio diversification.
Aloula Geojit Capital Co is Geojit BNP Paribas's joint venture in Saudi Arabia with
the Al Johar Group. The Saudi national and the NRI would be able to invest in the
Saudi capital market. The NRI would also be able to invest in the Indian stock
market and in Indian mutual funds. This joint venture makes Geojit BNP Paribas
the first Indian stock broking company to commence domestic retail brokerage
operations in any foreign country.
NRI Brokerage: That you have to find out with the broker at the time of account
opening.

● Geojit Mutual Fund Service
With Geojit you can invest in a major mutual fund. Project Mutual fund service
helps you to diversify your portfolio. Geojit Mutual Fund research service is

available for you free of cost.

● Geojit IPO Investment
With Geojit you can invest in an IPO. Please refer to more details on how to
invest in an IPO with Geojit. IPO Research and updates are available for you free
of cost.

1.4- CUSTOMERS OF THE ORGANISATION-LEVEL OF

LEADING FINANCIAL SERVICES PROVIDER

Geojit is a leading investment services company in India with a growing presence in the
Middle East. The company rides on its rich experience in the capital market to offer its
clients a wide portfolio of savings and investment solutions. products and services offer
wide ranges from Equities and Derivatives to Mutual Funds, Life & General Insurance and
the third-party Fixed Deposits. Geojit has membership in and is listed on, the National
Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

EXPANSION OF ONLINE PRODUCTS AND SERVICES

A trendsetter and pioneer in the capital markets, Geojit has proven expertise in providing
online services. Currently, clients can trade online in equities, derivatives, currency
futures, mutual funds and IPOs, and select from multiple bank payment gateways for
online transfer of funds. Strategic B2B agreements with South Indian Bank, Andhra Bank,
Oriental Bank of Commerce, CSB Bank, Corporation Bank, The Shamrao Vithal Co-
Operative Bank and Federal Bank to enable the respective bank’s clients to open
integrated 3-in-1 accounts to seamlessly trade via our sophisticated Online Trading
platform.

A GROWING FOOTPRINT


the company’s network of offices presently covers 19 States and 2 Union Territories:
Andhra Pradesh, Goa, Gujarat, Haryana, Jammu & Kashmir, Karnataka, Kerala, Madhya
Pradesh, Maharashtra, New Delhi, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh,
Uttarakhand, Jharkhand, Telangana and West Bengal, Pondicherry and Chandigarh.

Common activities in client service support for operational roles:

The career in the division of operations in the finance industry is growing for both
experienced as well as entry-level finance professionals. The role in operations includes
assisting in across all divisions of investment products, to ensure a smooth flow of
information both from the front and back-office processes. The support and the role of
analyst are the most common positions for operations. The main responsibility of
operation support role is to assist in trading desks and client servicing teams with
administration and other processing activities. The operations analyst role is also
involved in processing activities but instead looks more into research that how
information moves throughout the organization and work to improve its efficiency and
effectiveness. The analyst role is involved with how information is stored and physically
processed within the company’s internal system as well as to ensure that how it is
communicated and reported to external parties.

Operational roles
● Communicating directly with clients
● Responding to client requests
● Investigative inquiries
● Data entry
● Monitoring document processing Gathering information from clients
● Client onboard activities
● Ensure all internal and industry
● standards are upheld on a daily basis

Investment management process function

Front office Asset management Trade execution

● Investment ● Finance
research information
● Portfolio and risk exchange(fix)
management connectivity
● Sales and client ● Trade order
relationship management
management and execution
● Product
development
Middle office Investment

operations

● Billing ● Corporate ● Performan
● Cash actions ce and
administrative processing analytics
● Client data ● Data ● Portfolio
warehouse management recordkeep
● Client reporting ● OTC derivatives ing and
processing accounting
● Reconciliat
ion
processing
● Transactio
n
manageme
nt
Back office Fund accounting Global custody Transfer

agency
● Daily monthly ● Asset’s
reporting safekeeping ● Shareholde
● General ledger ● Cash availability r servicing
● NAV calculation ● Failed trade
● Reconciliation reporting
● Security pricing ● income/tax
● Reclaims
● Reconciliation
● Trade
settlement

1.5- COMPETITORS OF THE COMPANY

Following are the list of companies which are competitors against Geojit-financial-
services-ltd
● Aditya Birla Capital Ltd.
● Baid Leasing and Finance Company Ltd.
● Bajaj Finserv Ltd.
● Capri Global Capital Ltd.
● Edelweiss Financial Services Ltd.
● IIFL Finance Ltd.
● IIFL Wealth Management Ltd.
● Industrial Investment Trust Ltd.
● L&T Finance Holdings Ltd.
● Magma Fincorp Ltd.
● Mas Financial Services Ltd.
● Motilal Oswal Financial Services Ltd.
● Muthoot Capital Services Ltd.
● Reliance Capital Ltd.
● Religare Enterprises Ltd.
● Shriram City Union Finance Ltd.

● SREI Infrastructure Finance Ltd.

● Sundaram Finance Ltd.
● The Investment Trust of India Ltd.
● VLS Finance Ltd.

1.6- STRATEGIES-BUSINESS, PRICING, MANAGEMENT

BUSINESS STRATEGY

● DIFFERENT STRATEGIES OF INDEX TRADING:
An investor having a portfolio of scrips can use index futures in an attempt to reduce his
portfolio risk. As an owner of the script, the investor is exposed to firm-specific and
market-specific risk. By diversifying his investment into different companies covering
different industries, the investor can minimize his firm-specific risk. To minimize the
market-specific risk, Index futures is an alternative.

● PRACTICAL ASPECTS OF THE STRATEGY:

One has to ascertain how much position one must take in Index Futures contract so that
he has optimally hedged the market risk, which his stock market position is exposed to.
A normal measure of a stock market risk is the stock's beta. The beta of the stock shows
how the market price of that stock is likely to change relative to a change in the value of
the stock index

BASIC STRATEGIES OF INDEX FUTURES TRADING
1. HEDGING STRATEGY
2. SPECULATIVE STRATEGIES
3. ARBITRAGE STRATEGIES

● HEDGING STRATEGY

When an investor is long in the Stock Market, he should take a short position in an Index
futures contract to obtain a hedge. This is because, when the market falls, the value of his
portfolio also decreases. The fall in the value of the index is accompanied by the fall in the
value of index futures. Thus, even though the investor incurs a loss in the cash market his
position is hedged by taking an offsetting position in the index futures contract.

● SPECULATIVE STRATEGIES:
In the absence of the Derivatives Market, when an investor is bullish about the market,
he immediately assumes a long position in any of the scrips thinking that the script will
definitely reflect the market trend.
With Index Futures Contract in place when an investor thinks the market is bullish, he
can buy the market itself by going long in the Futures Index. Similarly, if he is bearish
about the market, he can sell the market by going short in the Futures Index.

● ARBITRAGE STRATEGIES:
In the liquid market, one can get an attractive bid and offer and trade can take place at
less impact cost. By taking into account the bid price, offer price and the duration of the
contract, one can at any point of time analyse and see if one can lend money at an
attractive interest rate or if one can receive money from the market by lending securities
in the market.

SPREAD TRADING
NSE and BSE offer another attractive trading method involving less risk and thereby
attracting less initial margin of nearly 1%. An investor can assume the spread position.
Taking simultaneously two opposite positions in two different expiry months creates a
calendar spread having:
1. A long position in Nifty Index futures in any calendar month
2. A short position in Nifty Index future in the different calendar month


Example of Calendar Spreads-Long in June Nifty Futures and Short in August Nifty
Futures.

PROCEDURE INVOLVED:
The investor can assume a calendar spread position today. After some days or before one
of the Index Futures gets expired, the investor would close out the spread position by
reversing both the legs simultaneously.
Receiving the spread involves buying near month futures and simultaneously selling far
month futures and Paying spread position means selling near month futures and buying
far month futures.
When spread received is greater than spread paid the investor gets profit and when
spread received is lesser than spread paid, he incurs a loss.

FEES
They offer highly competitive brokerage rates that provide great value for money for
their clients
Clients have access to an online as well as a mobile platform, Selfie, as well as other value-
added services such as research reports platform, Selfie, as well as other value-added
services such as research reports.

Brokerage rates applicable for Online Retail Trading with Geojit Financial Services Ltd.
are as follows:

Cash Market :
● Delivery-based Trading : 0.3 %
● Intra-day Trading : 0.03 %

Futures & Options :
● Futures : 0.03 %
● Options Index: Rs.50 per lot
● Options Stock: Rs.75 per lot


This is applicable to Ordinary Resident account only

These rates are subject to the minimum brokerage as under:
1. Rs.20 per Contract or 1 paisa per share whichever is higher subject to a maximum
of 2.5% per share.
2. In case the contract note is delivered by post then Rs.20/- per Contract or 5 paisa
per share whichever is higher subject to a maximum of 2.5% per share.
3. Both subject to a maximum of Rs.0.25 per share/debenture or 2.5% of the contract
price per share/debenture whichever is higher.
4. Taxes, levies and other statutory charges shall be charged extra.

* These rates are not applicable for the customers of Geojit Joint Ventures.

1.7- CSR ACTIVITIES

Geojit Financial Services Ltd. has been carrying out its business in a socially responsible
manner. From carrying out extensive campaigns on financial literacy on savings and
investments to giving contributions to philanthropic and charitable causes such as
support for pursuing higher education, for treatment of chronic diseases etc, the
Company has been doing its bit to promote the welfare of the society.

Objective and applicability

It is to convey to all the stakeholders of the Company the CSR focus areas adopted by the
Company and how it proposes to utilize its funds to achieve results in those areas. The
company that has a net profit of Rs. 5 crores or more consistently for the last many years,
the CSR Policy as envisaged under the Act is currently applicable to Geojit Financial
Services Ltd.

Company’s commitment

● Comply with the statutory CSR obligations

● Strive to carry out CSR activities that will bring direct benefits to the
marginalized, disadvantaged, poor and deprived sections of the community
● Identify CSR activities that will bring about sustainable development
● Encourage employees to be active participants in the CSR initiatives of the
Company
● Reach out to the larger public Support/Complement Government
programs/initiatives ensuring that there is no duplication
● Carry out its business in a socially responsible manner and not resort to any unfair
business practices.
● Not carry over surplus from CSR activities or treat it as part of the business profits
of the Company

CSR activities

The Company shall undertake such CSR activities, as stated in this CSR policy. The
Company intends to focus upon education, health, environment and social inclusion. The
CSR activities to be undertaken shall be approved by the respective CSR Committees.

● Education
Education is considered to be the backbone of any society. It brings about powerful social
change and is the key to building a society that can develop in a sustainable manner. In
our society, education is still unaffordable for many families and children miss out on this
crucial developmental tool due to this. It is to bridge this gap, even in a small way, that
the Company wants to focus on Education while implementing its CSR activities

● Health
The Company aims at focusing part of its CSR activities to providing health care to those
living in and around the location of its offices and are affected by chronic diseases. To
make matters worse, a large segment of people is not covered by medical insurance. Many
times, such expenses drive families to revert to distress financing which impoverishes
them and ultimately drives them to poverty. the Company will provide health care

support to such persons. The Company believes in the adage that a healthy society is a
happier and more productive society and a key driver of economic growth.

● Environment
When the economy prospers and cash flow increases, the pace of urbanization,
industrialization and use of resources, too, witness a steady rise and India is no exception.
This has been evident as issues like environmental pollution, water scarcity and rising
temperatures have caught national attention, calling for immediate action to adopt a
more sustainable economic model. It is, therefore, a critical need to protect our flora and
fauna and reduce the harm that is done to our ecosystem. Corporates with the resources
available to them can undertake this responsibility in a highly organized manner. The
Company has felt this as an acute need and plans to support environmental protection
activities such as maintenance of public parks. Open Parks with recreational facilities that
are accessible to persons of all ages and for those with disabilities provide health,
enjoyment and well-being and provide a sense of public pride and cohesion.

● Social inclusion
It is defined as the process of improving the ability, opportunity and dignity of the
marginalized and disadvantaged such as the differently-abled people and senior citizens.
As per the Ministry of Statistics, 8.6% of the population in India are senior citizens above
the age of 60 and 2.21 % are differently-abled. Even though there are various social
welfare schemes and programs, still most of the population are not integrated into
society. In this context, Corporates can play a significant role in the upliftment of this
population either directly or indirectly. Considering this, the Company intends to support
the institutions engaged in their upliftment and also through NGOs, so that they can lead
to a better quality of life.

● Territory for CSR activities
The Company shall utilize the amount earmarked for CSR activities only in India and the
Company shall give preference to the local areas in and around its Head Office and also in
States where it has large operations.

1.8-COLLABORATIONS AND EXPANSION PLANS

COLLABORATIONS OF GEOJIT

Today’s digitally powered enterprises are relying on technology more than ever for every
aspect of their operations. The rapidly changing business models demand the
applications which form their heart to change as well. Their realistic agile model
combines the spirit of agile as embodied in the agile manifesto with a discipline
associated with their CMMI high maturity which makes it agnostic to uncertainties
typically associated with pure agile. Right from agile planning to continuous delivery,
their service delivery model powered by their industry best practices and leveraging
state of the art communication infrastructure ensures a collocated team experience even
as one work with their offshore teams. They ensure close interaction with customers all
through the project lifecycle and use the latest agile project management tools to provide
real-time dashboards to customers.

EXPANSION
Geojit launches new portfolio `Dakshin’ to focus on 25 South Indian companies Geojit
Financial Services, as part of its portfolio management services (PMS), has launched a
new multi-cap portfolio– Dakshin – that will invest only in stocks of 25 growth companies
that are headquartered in the five South Indian states. This portfolio is based on the
customized index -- MSCI South India Domestic High Quality 25 Index constructed by
global agency MSCI Inc, for Geojit. Each stock included in the fund will carry equal weight.
This is the first of its kind portfolio offered in India. Dakshin will be a diversified equity-
based, open-ended multi-cap growth portfolio with a minimum subscription limit of Rs
25 lakh. The portfolio will be benchmarked against broader index Nifty 500. The custom
index designed by MSCI specifically for Geojit is constructed from a universe of select
corporations headquartered in Karnataka, Kerala, Andhra Pradesh, Telangana and Tamil
Nadu out of the MSCI India Domestic IMI Index.
1.9- SWOT ANALYSIS OF THE COMPANY


SWOT ANALYSIS

SWOT Analysis is a proven management framework which enables a brand like Geojit
BNP Paribas to score its business & performance as compared to the competitors and
industry. SWOT analysis of Geojit BNP Paribas analyses all its company strengths,
weaknesses and also its opportunities & threats for the betterment of its functions and
results.

SWOT Analysis of Geojit BNP Paribas:

Strengths
● International expertise of BNP Paribas
● Multichannel Services to help customers like internet, phone, branch etc.
● Has over 550 offices in over 300 cities across India
● Works for over 600000 clients
● Has always been an initiator thereby using the first-mover advantage in financial
services

Weaknesses

● Less penetration in some regions of the country
● Low publicity causes a lack of awareness amongst investors

Opportunities

● Growing rural market through customized and cheaper services
● Investments by Earning Urban Youth

Threats

● Stringent economic measures by Government and RBI
● The entry of foreign financial firms in the Indian Market


1.10- ORGANISATION CHART
finance service
Chairman
Mr Ramanathan Bupathy
Non-Excutive Indipendent
Director
Non-Excutive Director Whole Time Dirctor
Managing Director & Promoter Mr Mahesh Vyas
Mr Punnoose George Mr A Balakrishnan
Mr C.J George Mr Radhakrishnan Nair
Mr Harikishore Subramanian Mr Satish menon
Mr james Varghese
Mr Alice Geevarghese
Excutive Director
Chief Financial Officers Chief Of Human Resoruces
Mr Satish Menon
Mr Sajeev Kumar Rajan Mr Kamal Mampilly
Mr A Balakrishnan

Organizational charts (or hierarchy charts) are the graphical representation of an
organization’s structure.
By looking at the company organizational chart, people can gain a quick understanding
of how the organization is designed, its number of levels, and where each employee fits
into the organization.
From the organizational chart given above,
● Mr. Ramanathan Bupathy, the Chairman of Geojit Financial Services Ltd is the
executive elected by a company's board of directors who is responsible for
presiding over board meetings.
● Mr. C J George, managing director and Promoter, holds the share of the company
and manages the day-to-day operations of the company.

● Mr. Mahesh Vyas, Mr. Radhakrishnan Nair, Mr. James Varghese and Mr. Alice
Geevarghese constitute the non-executive independent directors. They provide
independent oversight and constructive challenge to the executive directors.
● Mr. Punnoose George and Mr. Harikrishnan Subramaniam are the Non executive
directors. Their responsibilities include the monitoring of the executive directors
and acting in the interest of the company stakeholders.
● Mr. A Balakrishnan and Mr. Satish Menon comprises the Whole-Time directors.
● Mr. Satish Menon and Mr. A Balakrishnan constitute the Executive Directors. They
are the members of the board and also have management responsibilities.
● Mr. Sajeev Kumar Rajan is the Chief Financial Officer. He is the senior executive
responsible for managing the financial actions of a company.
● Mr. Kamal Mampilly is the Chief of Human Resources who oversees the company's
HR management and labor relations policies, practices and operations.



CHAPTER-2
AN OVERVIEW OF THE INDUSTRY


INTRODUCTION

Financial Services is concerned with the design and delivery of advice and financial
products to individuals and businesses in the area of Banking and insurance, personal
financial planning, investment in real and financial assets etc. Financial Services
constitute an important component of the financial system. Financial services companies
are present in all economically developed geographic locations and tend to cluster in
local, national, regional and international financial centers such as London, New York
City, and Tokyo.

2.1- BRIEF HISTORY OF THE INDUSTRY

Today Indian economy is developing at a rapid pace of which its financial system forms
an indispensable part. India’s economy is second only to China in Asia whereas it is among
the four fastest developing nations in the world namely Brazil, Russia, China and India.
The liberalization policy adopted by the Government set loose the economy which was
waiting to be utilized to the fullest as per its efficiency and Liberalization which is the
process of making policies less constraining of economic activity under Indian financial
system amidst economic reforms of 1991-1992.
The financial sector India dates back with the establishment of British rule in India. Since
the historic time period, India has always been an agrarian country which is mainly
because of its geographic conditions and its resources which have been the interests of
various people who have tried to take hold of it. The first stock exchange was established
in Mumbai in 1875, then in Ahmedabad in 1894, Calcutta 1908 and then in Madras in
1937. Though Britishers looted our country and left us in a miserable state, they
established a financial system which had “clearly defined rules governing listing, trading
and settlements, a well-developed equity culture if only among the urban rich, a banking
system with clear lending norms and recovery procedures, and better corporate laws
than most other erstwhile colonies. The 1956 Indian Companies Act, as well as other
corporate laws and laws protecting the investors’ rights, were built on this foundation.
After independence, the policymakers adopted a ‘socialist’ economy to be practised in
order to drive India to the path of development. ‘Socialist’ economy meant that though
the private sector will be present the public sector will be the major player in the

economy. The Indian financial system remained a relatively free but unsophisticated
market system until the seventies. This included a private banking sector, fragmented but
active stock markets, active commodity spot and futures markets. The first milestone of
India’s socialism was in the 1950s with the closing of the capital account. More changes
came in the 1960s and 1970s, with the nationalization of financial service providers. This
changed the structure of the financial services industry from a fairly competitive sector
to one dominated by large public sector monopolies. There were huge flaws in the
financial system at that point in time. “Most banks were state-owned and had negligible
equity capital. Basic concepts of accounting, asset classification, and provisioning were
absent. The largest of the local stock exchanges, Bombay Stock Exchange (BSE), was a
closed market. The exchange focused on the interests of broker members, did not have
outreach across the country, and did not have appropriate structures for governance and
regulation. Financial transactions were controlled by the RBI and the Ministry of Finance.
Apart from the financial sector, other sectors seemed to be equally constrained due to
economic policies. The public sector grew very large and the irony was that it couldn’t
generate enough income to meet the requirements of the country as a result we had large
borrowings.
The new economic policy was adopted which focused on three main aspects:
liberalization, privatization and globalization. There was a complete drift in economic
policies i.e., basis on which the economic policies were earlier drafted were no longer in
existence and liberal policies were adopted. This also brought about a sea change in the
financial system of the country. Due to ease of operation more private players entered
the market. There was no more ‘license’ which acted as a stimulus for foreign direct
investment. More and more commercial banks and asset management institutions
started emerging and also utilized the opportunity to raise debt with the backing of the
insurance sector. Reforms implemented include the establishment of statutory regulator
promulgation of rules and regulations governing various types of participants in the
capital market and also activities like insider trading and takeover bids, the introduction
of electronic trading to improve transparency in establishing prices and
dematerialization of shares to eliminate the need for physical movement and storage of
paper securities. Effective regulation of stock markets requires the development of
institutional expertise, which necessarily requires time, but a good start has been made
and India’s stock market is much better regulated today than in the past. To keep a check

on the functioning of the stock market and also due to the scam of 1992, in 1992 SEBI
(securities exchange board of India) was established. Though it was established in 1988
but in 1992 it became a separate body. Establishment of SEBI had put a check on illicit
activities such as insider trading etc. and also provided a sense of security among
investors. It provided a uniform code of discipline to be followed by the exchanges. It was
a major transformation that took place because of the reform. In India, the capital market
has undergone a revolutionary change in recent years following the launching of the new
economic policies in 1991.

2.2- BUSINESS PROCESS OF THE INDUSTRY

Geojit's product includes equities and derivatives to mutual funds, life and general
insurance, commodities derivatives and portfolio management services.The company
has 512 offices across the country.[Through joint ventures and associates, the company
has expanded its presence globally with offices in Dubai, Abu Dhabi, Sharjah, Al Ain,
Muscat, Riyadh, Dammam, Bahrain and Kuwait. Geojit is listed on the National Stock
Exchange (NSE) and the Bombay Stock Exchange (BSE).

Financial process

There is a list of finance processes that can be automated to run everything smoothly and
efficiently. Finance process automation is key to ensuring that your organization is up to
the task of growing and scaling for the future.
• Budget Approval: Get yearly or quarterly budgets approved and applied to
spend.
• Capital Expenditure: Get approval, financing, and funds to make a capital
investment.
• Travel Reimbursement: Approve and release funds quickly for any
qualified travel requests.
• Employee Timesheets: Quickly review and approve timesheets to release
payment faster.
• Purchase Order: Give the procurement team the documentation to make a
purchase.

• Cheque Requests: Arrange payment to a vendor, supplier, or

business partners.

Most companies handle any financial business process manually. This means a human is
responsible for collecting/entering data, knowing whom to pass it onto next, pasting the
data into the financial management tool, sending an email to get finance approval, and
giving notifications to the initiator when that instance of the finance process is complete.
When you automate a financial process, you separate the process into those tasks best
done by humans and those best done by a system.

Advantages of having automated finance processes:

1. More Transparency
A well-defined finance workflow ensures that everyone involved in the process knows
what the next step is. Every change is documented and everyone stays informed.

2. Increased Compliance
When you define guidelines clearly and communicate that with all employees, there’s
little chance that they stray from the organization’s policies. This can save you a lot of
time in approvals.

3. Improved Efficiency
The overall efficiency of the organization increases because everyone knows what the
next step is. Tasks are not stalled or identified promptly when stalled.
Restructure the same

2.3- MARKET DEMAND AND SUPPLY

The financial services sector provides financial services to people and corporations. This
segment of the economy is made up of a variety of financial firms including banks,
investment houses, lenders, finance companies, real estate brokers, and insurance
companies. The financial services industry is probably the most important sector of the
economy, leading the world in terms of earnings and equity market capitalization. Large

conglomerates dominate this sector, but it also includes a diverse range of smaller
companies.
Companies in the financial services industry manage money. For instance, a financial
advisor manages assets and offers advice on behalf of a client. The advisor does not
directly provide investments or any other product, rather, they facilitate the movement
of funds between savers and the issuers of securities and other instruments. This service
is a temporary task rather than a tangible asset.
India has a diversified financial sector undergoing rapid expansion, both in terms of
strong growth of existing financial services firms and new entities entering the market.
The sector comprises commercial banks, insurance companies, non-banking financial
companies, co-operatives, pension funds, mutual funds and other smaller financial
entities. The banking regulator has allowed new entities such as payment banks to be
created recently, thereby adding to the type of entities operating in the sector. However,
the financial sector in India is predominantly a banking sector with commercial banks
accounting for more than 64 percent of the total assets held by the financial system.
The Government of India has introduced several reforms to liberalise, regulate and
enhance this industry. The Government and Reserve Bank of India (RBI) have taken
various measures to facilitate easy access to finance for Micro, Small and Medium
Enterprises (MSMEs). These measures include launching a Credit Guarantee Fund
Scheme for MSMEs, issuing guidelines to banks regarding collateral requirements and
setting up a Micro Units Development and Refinance Agency (MUDRA). With a combined
push by the Government and private sector, India is undoubtedly one of the world's most
vibrant capital markets. In 2017, a new portal named 'Udyami Mitra' was launched by
Small Industries Development Bank of India (SIDBI) with an aim to improve credit
availability to MSMEs in the country. India has scored a perfect 10 in protecting
shareholders' rights on the back of reforms implemented by the Securities and Exchange
Board of India (SEBI).

Market Size

Mutual Fund industry’s AUM grew from Rs 10.96 trillion (US$ 156.82 billion) in October
2014 to Rs 23.93 trillion (US$ 339.55 billion) in April 2020. Inflow in India's mutual fund

schemes via the Systematic Investment Plan (SIP) route reached Rs 82,453 crore (US$
11.70 billion) in 2019. Equity mutual funds registered a net inflow of Rs 8.04 trillion (US$
114.06 billion) by the end of December 2019. Another crucial component of India’s
financial industry is the insurance industry. The insurance industry has been expanding
at a fast pace. The total first-year premium of life insurance companies reached Rs 2.59
lakh crore (US$ 36.73 billion) in FY20. Along with the secondary market, the market for
Initial Public Offers (IPOs) has also witnessed rapid expansion. In 2019, US$ 2.5 billion
was raised across 17 IPOs. Furthermore, India’s leading bourse, Bombay Stock Exchange
(BSE), will set up a joint venture with Ebix Inc to build a robust insurance distribution
network in the country through a new distribution exchange platform.

Road Ahead

India is expected to be the fourth largest private wealth market globally by 2028.
India is today one of the most vibrant global economies on the back of robust banking and
insurance sectors. The relaxation of foreign investment rules has received a positive
response from the insurance sector, with many companies announcing plans to increase
their stakes in joint ventures with Indian companies. Over the coming quarters, there
could be a series of joint venture deals between global insurance giants and local players.
The Association of Mutual Funds in India (AMFI) is targeting nearly five-fold growth in
AUM to Rs 95 lakh crore (US$ 1.47 trillion) and more than three times growth in investor
accounts to 130 million by 2025. India's mobile wallet industry is estimated to grow at a
Compound Annual Growth Rate (CAGR) of 150 per cent to reach US$ 4.4 billion by 2022,
while mobile wallet transactions will touch Rs 32 trillion (USD $ 492.6 billion) during the
same period. The Indian financial services industry comprises several key subsegments.
These include, but are not limited to- mutual funds, pension funds, insurance companies,
stock-brokers, wealth managers, financial advisory companies, and commercial banks-
ranging from small domestic players to large multinational companies. The services are
provided to a diverse client base- including individuals, private businesses and public
organizations.

10 Types of Financial Services:


• Banking
• Professional Advisory
• Wealth Management
• Mutual Funds
• Insurance
• Stock Market
• Treasury/Debt Instruments
• Tax/Audit Consulting
• Capital Restructuring
• Portfolio Management

The developed financial system promotes growth in the real sector of the economy, which
ultimately widen the horizon of economic opportunities available across the entire
spectrum of the population including the vulnerable sections of society. In fact, financial
development facilitates the creation of an environment for providing better access to
economic opportunities wider population, including the weaker section of the society.
However, to ensure equal access, it is necessary to strengthen the human capacity to
exploit economic opportunities. Enhancement of capabilities would inculcate the demand
for financial services. If there is no usage of credit because of lack of capability
inducement, then the growing up of credit intensity could also lead to greater risk on the
part of borrowers because of greater indebtedness (Mohan, 2004). On the other hand, the
growing demand for financial services provides an additional incentive for banks to
implement the strategy of the inclusive financial system. Any effective intervention in this
direction would spill-over the demand to the formal financial institutions. Advancing of
the financial sector would facilitate the adequate supply of financial services to
supplement the demand for financial products.

Association between Demand for and Supply of Financial Inclusion in India

According to the values of IFI from supply and demand side suggest that states like
Kerala, Pondicherry and Maharashtra have a high level of demand-side financial
development but have attained medium level in supply-side financial inclusion. States
having a medium level of financial inclusion regarding both demand and supply point of

view are Gujarat, Punjab, UP, Haryana, Karnataka, Uttaranchal, Jammu & Kashmir, Tamil
Nadu and Sikkim. On the other hand, states like Meghalaya, Jharkhand, Orissa, Rajasthan,
Mizoram, Tripura,
Assam, Nagaland, Bihar, Manipur, and Arunachal Pradesh belong to the category of the
low level of financial inclusion both from the demand and supply-side perspectives. The
mismatch between the demand for financial services and the supply of financial services
is observed in states like Chandigarh, Goa and Delhi, Andhra Pradesh, West Bengal,
Madhya Pradesh, Uttar Pradesh.

Financial services contribution to GDP

Today Indian economy is considered as the fastest-growing economies in the world.
Contributing to its high growth are many critical sectors, amongst which ‘financial
services sector’ is unarguably one of the most distinguished sectors of Indian economy.

The role of the financial sector in shaping fortunes for the Indian economy has been even
more critical, as India since independence lacked prowess of a resilient industrial sector.
This prompted India to depend on other sectors for its sustenance. These other sectors
mostly constituted the ‘financial service sector and ‘agricultural sector’.

India’s watershed decision to nationalize 14 commercial banks in 1969 validated how
critical was ‘financial sector’. Its importance after economic reforms of 1992 has grown
only manifolds to the extent that today it presently contributes to over 6% of India’s GDP.
It is the dynamic growth of the financial services sector during the post-reform age that
has helped it in assuming such an important place in the Indian economy. Unlike in past
when financial services sector mainly constituted of the banking sector, today financial
sector has broadened its reach to include sectors like insurance services, non-banking
financial services, co-operatives, pension funds, mutual funds, capital market etc.

Financial sector’s contribution comes across even more strongly when we look at the
sheer number of employment and tax revenue it generates. Especially employment
generated by the banking and insurance sector every year runs in millions. Equally,
revenue generation through tax and dividend collection by the government surpasses
billions of rupees every year. While revenue and employment generation are two very

important contributions, successfully maintaining a healthy credit line to the industrial

sector as well as to the overall economy is another important contribution of the financial
sector. Banks and non-banks in India have been discharging credit in billions to big,
medium/small industries, entrepreneurs etc every financial year. With improved
availability of credit, the Indian economy during the past two decades has managed to
march towards higher economic growth. Reforms within the banking sector during the
post-liberalization era have especially proven to be prudent for credit disbursement in
the country. The advent of private sector banks, in particular, opened a new chapter for
Indian economy. The enormous success of private sector banks helped large corporations
pave the way for consolidated growth in the industrial sector encompassing MSME.

Crisis due to coronavirus pandemic

All the financial sub-sectors recorded a decline in their growth rates in the immediate
past fiscal year (FY 2019-20). The sub-sector (monetary intermediation) had the worst
time in many years. Overall, the financial sector's contribution to the gross domestic
product (GDP), however, dropped only nominally during the period under review. The
ongoing Covid-19 pandemic did cause disruptions to the sector in the final quarter of the
year. But loan scams, soaring non-performing loans (NPLs), problems with interest rates
and low demand for funds from the private sector, among others contributed to the
substantial decline in the growth of the financial sector, according to experts. According
to the Bangladesh Bureau of Statistics (BBS) data, the financial sub-sectors growth dipped
to 4.46 per cent in FY 2020 from that of 7.38 per cent in FY 2019. Its contribution to GDP
was 3.39 per cent in FY 2020, which was 3.42 per cent in FY 2019. The economists said
the ongoing coronavirus pandemic hit hard the banking sector transactions in the last
quarter of FY 2020, but the sector's growth should not have dropped by such a big margin.
The service sector's growth also dropped by 1.46 percentage points to 5.32 per cent in
FY 2020. But the same in the financial intermediation sub-sector fell sharply by 2.92
percentage points. Economist Dr Ahsan H Mansur told the FE that the overall economic
scenario had not been that satisfactory during the last three years. Declining export and
import, falling revenue receipts, lower credit flow, higher NPLs, and bad condition of the
capital market are the major reasons for the fall. With erosion in people's confidence in
the financial sector, the economy did fail to expand at the expected rate over the years,

Dr Mansur, also Executive Director of the Policy Research Institute told the FE. Had the
government been able to good governance following the scams involving the Hall-mark,
Bismillah Group, Crescent Shoes, Farmers' Bank, and the central bank's reserve heist etc,
public engagement in the financial market would have increased further. Since the
previous scams were not addressed properly, many people could not keep their trust on
the banks, which has been reflected in their annual growth trend over the last three years,
he added.

Dr Sajjad Zohir, Executive Director of the Economic Research Group, said the GDP
calculation is an accounting exercise, measuring value additions from market-based
economic activities in a year.
Generally, GDP in financial services closely follows the size of activities in real sectors,
production and trade. Since GDP growth in Bangladesh's real economy decreased last
year, it was expected that GDP growth in the financial sector would also decline during
that year.
He also added that poor loan recovery in the banking sector may have led to huge write-
offs that reduced financial assets, without necessarily reducing income in that sector by
the same proportion.
Current policy to push credit under the stimulus packages without guarding against risk
may further undermine the performance of the banking sector, he added.
The FE analysis has found that the GDP growth at the financial intermediations had
started experiencing the decline since FY 2018, which also persisted until FY 2020.
In FY 2017, the performance of the banking sub-sector was the best in recent years, as it
expanded at 9.12 per cent rate from that of 7.74 percent in FY 2016, the BBS data showed.
The growth rate of the insurance sub-sector also recorded a fall by 0.91 percentage points
to 4.05 per cent in FY 2020 from that of 4.96 per cent in the previous fiscal.
Similarly, the growth rate of the other financial auxiliaries’ sub-sector also dropped by
2.07 percentage points to 9.48 per cent in the last fiscal compared to that of 11.55 per
cent in FY 2019.

2.4-LEVEL AND TYPE OF COMPETITION-FIRMS OPERATING IN THE
INDUSTRY


Level of competition in financial services

Competition in the financial sector matters for a number of reasons. As in other
industries, the degree of competition in the financial sector can affect the efficiency of the
production of financial services. Also, again as in other industries, it can affect the quality
of financial products and the degree of innovation in the sector. Specific to the financial
sector is the link between competition and stability that has long been recognized in
theoretical and empirical research and, most importantly, in the actual conduct of
prudential policy towards banks. Importantly, it has also been shown, theoretically as
well as empirically, that the degree of competition in the financial sector can affect the
access of firms and households to financial services and external financing. The direction
of the latter relationship is, however, unclear. Less competitive systems may lead to more
access to external financing since banks are more inclined to invest in information
acquisition and relationships with borrowers. Competition in the financial sector, as in
other sectors, matters for allocative, productive, and dynamic efficiency. Systems with
greater foreign entry and fewer entry and activity restrictions tend to be more
competitive, confirming that contestability—the lack of barriers to entry and exit—
determines effective competition. It expresses the competition policy in the financial
sector has generally been conducted and how changes in competition in the financial
services industries should affect competition policy going forward. In part based on
comparison with other industries, it is provided that some suggestions on how
competition policy in the financial sector could be better approached as well as what
institutional arrangements best fit a modern view of competition policy in the sector. The
specific competition challenges for developing countries is also highlighted. The
conclusions are made such that practices today fall far short of the need for better
competition policy in the financial sector.

Type of competition in financial services

Competition between two or more companies where all companies produce similar (but
not exactly the same) products, but all leave some excess production capacity so that total
supply for the market does not meet demand. This results in product prices remaining
artificially high and therefore larger profits for the companies involved. Monopolistic

competition, when it is the result of collusion between companies, can be illegal under
some circumstances. It contrasts with perfect competition.

A monopolistically competitive market is one that is characterized by:
• many firms and buyers: that is, the market comprises a large
number of independently acting firms and buyers.
• differentiated products: that is, the products offered by competing
firms are differentiated from each other in one or more respects. These differences
may be of a physical nature, involving functional features, or maybe purely
‘imaginary’ in the sense that artificial differences are created through advertising
and sales promotion.
• free-market entry and exit: that is, there are no barriers to entry
preventing new firms entering the market or obstacles in the way of existing firms
leaving the market. Apart from the product-differentiation aspects, monopolistic
competition is very similar structurally to perfect competition.
The analysis of individual firm equilibrium in monopolistic competition can be presented

in terms of a ‘representative’ firm, that is, all firms are assumed to face identical cost and
demand conditions and each is a profit maximizer, from which it is then possible to derive
a market-equilibrium position. Competition in the financial sector, as in other sectors,
matters for allocative, productive, and dynamic efficiency. Theory suggests, however, that
unfettered competition is not necessarily best given the special features of financial
services. It is shown that competitiveness varies greatly across countries, in perhaps
surprising ways, and that it is not driven by financial system concentration. Rather,
systems with greater foreign entry and fewer entry and activity restrictions tend to be
more competitive, confirming that contestability—the lack of barriers to entry and exit—
determines effective competition. As in other industries, the degree of competition in the
financial sector matters for the efficiency of production of financial services, the quality
of financial products and the degree of innovation in the sector. Specific to the financial
sector is the effect of excessive competition on financial stability, long recognised in
theoretical and empirical research and, most importantly, in the actual conduct of policy
towards banks. It has been shown, theoretically and empirically, the degree of

competition in the financial sector can matter for the access of firms and households to
financial services, in turn affecting overall economic growth.
2.5-PRICING STRATEGIES IN THE INDUSTRY

For all advantages businesses pursue, there is one powerful advantage that is
accessible to virtually every business - but realized by very few. That advantage
is the price advantage. Pricing is far and away, the most sensitive profit level that
managers can influence. minimal changes in the average price translate into huge changes
in operating profit, yet few companies are as disciplined and deliberate about pricing as
they should be.
The second P of relevance to marketing is pricing. Ideal pricing should be a the price
which buyers want to buy and a price which sellers to sell. Policies relating to pricing
assume much relevance owing to the fact that on the one hand, they affect the demand
for the product and on the other hand, they determine the profitability of the company’s
operations. Pricing theories are appropriately balanced between what the customers are
willing to pay and the rate at which the firm can make a profit. In a service industry, as
different from the manufacturing industry, apart from the product cost, the servicing cost
involved in providing the service would also be substantial. To the extent that costing and
pricing have to be viewed together. While costing relates to a technique of accounting,
pricing relates to the objectives of the business enterprise and the philosophy.
Price is at the top of the marketing managers’ worry scale. Experts believe it is possible
that, in the long term, about 40% of all financial transactions will be conducted
exclusively online. This development has forced the big banks to start investing heavily
in e-banking. With improved technical infrastructure and growing customer acceptance
of the Internet, the variety of products that can be offered online has increased
substantially. While a few years ago e-offers were confined to current accounts, online-
brokerage and even finance lease offers are now available. This opens up opportunities
for new banks and, simultaneously, increases price competition. Additionally, customers
have become more price-sensitive. The Internet allows customers to obtain an overview
of the market much quicker and easier than just ten years ago. Increasing market
transparency is making well-informed

customers less and less willing to pay high management or transaction fees. The result of
this transparency is lower customer loyalty. Such aggressive price advertisements make
customers even more price-sensitive. Another reason why the Internet tends to drive
down prices is that it is much easier to communicate price than value. Price is very easily
and effectively communicated over the Internet. It is just a number or a set of numbers.
Value, on the other hand, is a much more complex construct.
A commercial bank can be described as a departmental store of finance or a fully-fledged
bank service center which constitute one of the strategies of banks to improve customer
services and retain market share. In order to provide financial services required by
customers, all banks now are engaged in developing a spectrum of financial services.
Wide-ranging financial services provided by banks include fund-based services like
deposit account services, loan-related services, non-fund services such as remittances,
foreign exchange, discount and brokerage services, trustee services, safe custody
services, utility payment services etc. The crucial management role in the present
environment is to develop an efficient pricing mechanism as it is one of the critical
elements affecting financial performance of the banks.
Variables to be considered for the Retail Services pricing Value of a retail financial service
is the true barometer of price. Pricing of service must ultimately be equal to the utility of
the product. Understanding how current and potential customers value their products is
an important variable to be considered. Accessing the customer’s sensitivity to various
pricing options specially to measure elasticity as well as cross elasticity of demand and
supply of products. The pricing of products varies in case of complementary demand and
supply as well as price determination under various market situations such as
monopolistic
market, monopoly market, oligopoly market and duopoly market. The Banking Industry
is commonly found in monopolistic or oligopoly markets. It is the product differentiation
observed in oligopoly market and delivery costs and various rules of the game among the
competitors which substantially influence the pricing of retail banking services. It is very
difficult to generalize the nature of banks' financial services market because of branch
banking system operation. For example, a banking firm with a widespread network of
branches operating simultaneously in different types of the market such as monopolistic,
duopoly and oligopoly. In this type of market, there cannot be a single approach to the

pricing of financial services. Multiple approaches are necessary to arrive at an

appropriate pricing system for a bank as a whole.
In a situation where there are a few banking firms under single ownership like
government or under the ownership of a private sector, there is likely to be
collusion, syndication or cartel or association of banks. The bank with this kind of natural
monopoly position could adopt a discriminatory pricing policy. Price discrimination
refers to charging different prices for different customers in
the same market or in different markets. This can be done fruitfully by exploiting
opportunities like the customer’s feelings and price sensitivity of the market.

Pricing of new services

Banks in India have come to recognize the need for increasing the non-fund business for
improving their profitability. They are on the lookout for new and diversified banking
services. In the case of non-public sector banks, pricing decisions would have to take in
to account both cost considerations and market-related factors. Public sector banks to
have the freedom to stipulate rate schedules in respect of those activities which are not
covered by the uniform schedules. Pricing of services relating to new areas such as
merchant banking, consultancy and counselling, sophisticated mechanized services etc,
will have to be based on commercial considerations. The extent to which each of these
services would contribute to the net earnings of the bank has to be carefully assessed.
Whether the price should be kept low, so as to discourage the entry of competitors or the
prices should be kept high, so as to make hay while the sun shines is a matter to be
decided on the basis of a conscious assessment of various relevant factors.

Customer service and customer education

Studies in banks abroad, as well as the recent experience of public sector banks, have
shown that customers view the changes in price skepticism. At the same time, with
effective customer communication and education, it should be possible to bring down the
level of resistance and criticism. It is also a good marketing strategy to introduce new
product features and additional customer convenience while revising the schedules and
give adequate publicity to such measures. Banks in the public sector are perceived to

enjoy a monopolistic position in fixing service charges, largely in view of their

overwhelming market share, and this makes it even more incumbent upon them to seek
out customer understanding. It would be desirable for banks to clearly bring out and
publicize the circumstances leading to hikes in service charges. As a matter of a good
strategy, there could be a direct dialogue and interface session with the depositor’s
associations, chamber of commerce etc., bankers club could also play a major role in this
field.

Branch level approach

In promoting good practices in the Indian banking system, branch level
functionaries have an important role to play.
● it is necessary to clearly recognize the fact that total returns for any business is
conditioned by three relevant factors.
1. Range of services
2. Volume of business
3. The price structure. In the past, oblivious of the below-cost pricing, banks were
known to promote low return or even loss-making services.
● it is necessary to have a clear understanding of the total range, of services offered
and the extent to which each of them covers the cost and brings in a net return.
● it is necessary to have a clear idea of the schedule of rates relating to various
services and equally importantly the rationale behind pricing.
● it is necessary to make informed use of the discretion available to them in
deviating from the prescribed schedules.
● Finally, to the extent counters at the branch level constitute the face of banking;
branch level functionaries have to make conscious efforts to promote their clients a better
appreciation of their pricing policies. Pricing is a key variable in customer retention as
well as customer attraction. The main thing in pricing decisions is to make ways for
profitability and therefore the bank professionals need to formulate such a strategy that
paves avenues for generating profits. To be successful in the long term, banks have to
focus on explaining the value of a banking service rather than concentrating on price,
because the willingness-to-pay of the customer depends on the perceived value of the

product. Therefore, the only way out of the price trap is to offer value-based e-pricing
offers.

2.6-INDUSTRIAL PERFORMANCE-GLOBAL, NATIONAL AND REGIONAL
BASIS

It has been over a decade since there has been serious deliberation of Asia’s regional
integration, especially from the financial and monetary perspectives. Because of various
domestic economic and financial issues, the progress of regional integration in financial
services has been slow. However, with improved macroeconomic conditions and
relatively stable markets, Asia is at an ideal juncture in which to revisit the subject and
propose pragmatic avenues to follow if regional integration in financial services is to take
place.

Industrial Performance: Regional Level

The dynamism of regional integration is not globally uniform, and is strongly dependent
on common philosophies being developed and various infrastructures being established
within the region. The worldwide proliferation of customs unions, free trade areas and,
eventually, common markets, indicates that regional integration efforts are being
pursued widely to boost the economic capacity of the market and gain competitive
advantage through close economic alliances.
For any of these efforts to bear fruit, however, there needs to be a presumption on the
part of the participating states that competition policy will be applied actively and that
the market is being used to determine the distribution of resources. Market enlargement
is one of the major benefits of regional integration, enabling the region to capitalize on
economies of scale and scope. Regional financial integration assumes that participating
states will allow market forces to align demand for and supply of financial services in the
region, creating a larger market that selects services and distributes capital according to
efficiency and cost. In general, an integrated regional financial market should be better
able to provide the necessary financial services and capital to those sectors and entities
in need within the region, as compared to a smaller local market with a limited number
of players, fewer investment opportunities and a meagre savings pool.

Thus, a precondition for regional integration in financial services is that financial markets
are being gradually but steadily liberalized, both de jure and de facto, vis-à-vis other
economies in the region. While the active engagement of economies in financial services
trade is essential for meaningful integration, it is probably equally important to have
economies
liberalized within each jurisdiction, so as to maintain a competitive and innovative

Global Level

It's difficult to know the precise size of the global financial services sector. The World
Bank itself only collects data from 189 countries and estimates the rest.12 Meanwhile,
the definition and scope of industries that fall within the financial services sector are not
consistent among data sources.

Furthermore, reporting is not that readily available on a regular basis or compiled on a
global scale in specific financial sector terms.
The global banking sector is in better shape than it was 10 years ago, after the recession;
the sector is expected to grow and shift to mobile and online banking as Millennials and
Generation Z grow as participants in that sphere. A Growing, Shifting Sector
Market estimates believe that by 2022, the financial services market is expected to reach
$26.5 trillion, growing at a rate of 6% during the forecasted period.3 Asia-Pacific is the
largest financial sector globally, followed by North America.

To be sure, the global financial sector is in better shape than it was 10 years ago, after the
recession. The sector is expected to grow and shift to mobile and online banking as
Millennials and Generation Z grow as participants in that sphere. This growth has led to
an increase in startups and fintech companies looking to compete for a share of that
business. In fact, fintech funding went up by 82% from 2017 to 2018.4

Banking Sector
Global market capitalization in 2019 was estimated to be approximately $90
trillion.5 The market capitalization of the global banking sector as of October 2019 was
$7.9 trillion. This is the market cap for global banks but the metric will mainly measure

publicly traded banks. It will not include information on private banks, smaller
institutions, or fintech companies.

Insurance Sector
Regarding insurance companies, they have continued to see growth, particularly in the
Eastern part of the world. Global premiums in 2018 reached $5.2 trillion.7 It is expected
that by 2029, Asia-Pacific will account for 42% of global premiums, with China making
up 20% of that figure.8 As of 2018, the U.S. makes up 28% of world premiums and China
makes up 11%.9

GDP

Global gross domestic product (GDP) as of October 2019 was $90 trillion. Global GDP is
broken down into three sectors for analysis: agriculture, industry, and services. In 2018,
when global GDP was nearly $86 trillion, the breakdown by sector was 65% services,
25% industry, and 3% agriculture.10

The Bottom Line

Although it is difficult to obtain specific figures on the size of the global financial services
sector, the sector is a large part of any nation's economy. It consists of banks, investment
firms, and insurance companies—all of which play a large role in the workings of an
economy—and the sector will only continue to grow through technological innovation
and as developing countries continue to advance in how they structure these services for
their countries.
accounting for more than 64 percent of the total assets held by the financial system.


National Level

The Government of India has introduced several reforms to liberalize, regulate and
enhance this industry. The Government and Reserve Bank of India (RBI) have taken
various measures to facilitate easy access to finance for Micro, Small and Medium
Enterprises (MSMEs). These measures include launching the Credit Guarantee Fund
Scheme for MSMEs, issuing guidelines to banks regarding collateral requirements and
setting up a Micro Units Development and Refinance Agency (MUDRA). With a combined
push by the Government and private sector, India is undoubtedly one of the world's most
vibrant capital markets. In 2017, a new portal named 'Udyami Mitra' was launched by
Small Industries Development Bank of India (SIDBI) with an aim to improve credit
availability to MSMEs in the country. India has scored a perfect 10 in protecting
shareholders' rights on the back of reforms implemented by the Securities and Exchange
Board of India (SEBI).

accounting for more than 64 percent of the total assets held by the financial system. The
Government of India has introduced several reforms to liberalize, regulate and enhance
this industry. The Government and Reserve Bank of India (RBI) have taken various
measures to facilitate easy access to finance for Micro, Small and Medium Enterprises
(MSMEs).

Market Size

Mutual Fund industry’s AUM grew from Rs 10.96 trillion (US$ 156.82 billion) in October
2014 to Rs 23.93 trillion (US$ 339.55 billion) in April 2020. Inflow in India's mutual fund

schemes via the Systematic Investment Plan (SIP) route reached Rs 82,453 crore (US$
11.70 billion) in 2019. Equity mutual funds registered a net inflow of Rs 8.04 trillion (US$
114.06 billion) by the end of December 2019.
Another crucial component of India’s financial industry is the insurance industry. The
insurance industry has been expanding at a fast pace. The total first-year premium of life
insurance companies reached Rs 2.59 lakh crore (US$ 36.73 billion) in FY20.
Along with the secondary market, the market for Initial Public Offers (IPOs) has also
witnessed rapid expansion. In 2019, US$ 2.5 billion was raised across 17 IPOs.
Furthermore, India’s leading bourse, Bombay Stock Exchange (BSE), will set up a joint
venture with Ebix Inc to build a robust insurance distribution network in the country
through a new distribution exchange platform.

Investments/Developments

● Value of Unified Payments Interface (UPI) transactions was valued at Rs 2.06 lakh
crore (US$ 29.22 billion) in March 2020, recording 1.25 billion transactions.
● In March 2020, ClearTax, an online tax filing platform, acquired GST software and
services business of Karvy Data Management Services for an undisclosed amount.
● In April 2020, Axis Bank acquired an additional 29 per cent stake in Max Life
Insurance.
● Turnover from derivatives segment reached Rs 3,453.9 lakh crore (US$ 49.41
trillion) in FY20 and stood at US$ 5.09 trillion in FY21 (till May 2020).
● In 2019, FPI investment in Indian equities touched a five-year high of Rs 101,122
crore (US$ 14.47 billion).
● Merger and Acquisition (M&A) worth US$ 25.162 billion was recorded in the first
ten months of 2019.
● Total value of private equity (PE)/venture capital (VC) investment grew 44 per
cent over the past three years in value terms to reach US$ 48 billion in 2019.
● In October 2019, ICICI Lombard General Insurance Company acquired Unbox
Technologies for an aggregate cash consideration of Rs 225 crore (US$ 32.19
million).

● There were 9,659 non-banking financial companies (NBFCs) registered with the
Reserve Bank as on March 31, 2019.
Government Initiatives

● In November 2019, the Government allocated Rs 10,000 crore to set up AIFs for
the revival of stalled housing projects.
● Under the Interest Subvention Scheme for MSMEs, Rs 350 crore (US$ 50.07
million) was allocated under Union Budget 2019-20 for 2 per cent interest
subvention for all GST registered MSMEs on fresh or incremental loans.
● In December 2018, Securities and Exchange Board of India (SEBI) proposed direct
overseas listing of Indian companies and other regulatory changes.
● Bombay Stock Exchange (BSE) introduced weekly futures and options contracts
on Sensex 50 index from October 26, 2018.
● In September 2018, SEBI asked for recommendations to strengthen rules which
will enhance the overall governance standards for issuers, intermediaries or
infrastructure providers in the financial market.
● The Government of India launched the India Post Payments Bank (IPPB) to
provide every district with one branch, which will help increase rural penetration.
As of August 2018, two branches out of 650 branches were already operational.

Road Ahead

● India is expected to be the fourth largest private wealth market globally by 2028.
● India is today one of the most vibrant global economies on the back of robust
banking and insurance sectors. The relaxation of foreign investment rules has
received a positive response from the insurance sector, with many companies
announcing plans to increase their stakes in joint ventures with Indian companies.

Over the coming quarters, there could be a series of joint venture deals between
global insurance giants and local players.
● The Association of Mutual Funds in India (AMFI) is targeting nearly five-fold
growth in AUM to Rs 95 lakh crore (US$ 1.47 trillion) and more than three times
growth in investor accounts to 130 million by 2025.
● India's mobile wallet industry is estimated to grow at a Compound Annual Growth
Rate (CAGR) of 150 per cent to reach US$ 4.4 billion by 2022, while mobile wallet
transactions will touch Rs 32 trillion (USD $ 492.6 billion) during the same period.
2.7-PROSPECTS AND CHALLENGES IN THE INDUSTRY
Future Prospects of Financial Services
With increased competition in the banking Industry, the net interest margin of banks has
come down over the last one decade. Liberalization with Globalization will see the
spreads narrowing further to 1-1.5% as in the case of banks operating in developed
countries. Banks will look for fee-based income to fill the gap in interest income. Product
innovations and process re-engineering will be the order of the day. The changes will be
motivated by the desire to meet the customer requirements and to reduce the cost and
improve the efficiency of service. All banks will therefore go for rejuvenating their costing
and pricing to segregate profitable and non-profitable business. Service charges will be
decided taking into account the costing and what the traffic can bear. From the earlier
revenue = cost + profit equation i.e., customers are charged to cover the costs incurred
and the profits expected, most banks have already moved into the profit =revenue - cost
equation.1
This has been reflected in the fact that with cost of services staying nearly equal across
banks, the banks with better cost control are able to achieve higher profits whereas the
banks with high overheads due to underutilization of resources, unremunerative branch
network etc., either incurred losses or made profits not commensurate with the capital
employed. The new paradigm in the coming years will be cost = revenue - profit. As banks
strive to provide value added services to customers, the market will see the emergence
of strong investment and merchant banking entities. Product innovation and creating
brand equity for specialized products will decide the market share and volumes. New
products on the liabilities side such as forex linked deposits; investment-linked deposits,
etc. are likely to be introduced, as investors with varied risk profiles will look for better
yields. There will be more and more tie-ups between banks, corporate clients and their
retail outlets to share a common platform to shore up revenue through increased
volumes. Similarly, Banks will look analytically into various processes and practices as
these exist today and may make appropriate changes therein to cut costs and delays.
Outsourcing and adoption of BPOs will become more and more relevant, especially when
Banks go in for larger volumes of retail business. However, by increasing outsourcing of
operations through service providers, banks are making themselves vulnerable to
problems faced by these providers. Banks should therefore outsource only those
functions that are not strategic to banks ‘business. An important outcome of globalization
apart from FDI and FIIs is the growing outsourcing industry. If in developed countries,
outsourcing is opposed by some sections of the political system and labor unions, it is a
similar experience with domestic situations as well. Outsourcing as a subject is spilling
into the social arena as well, since it is creating significant spending power for the youth
and the very young, sometimes is causing some concerns about the living styles and
patterns. Notwithstanding these causes and concerns, banking organizations are
beginning to love and like outsourcing very much and we hope to see strong growth in
this segment in the years to come. Obviously, when we see so much growth in this
segment, it is natural to look at threats and opportunities. The Financial outsourcing
service providers have given impetus to inflow of foreign exchange and creating job
opportunities in India. The financial services sector has emerged as a key domain for
outsourcing.
Work Flow and Growth Prospects
Banking, financial services and insurance (BFSI) comprise 38 per cent of the outsourcing
industry in India (worth $47.8 billion in 2007). Most of the work outsourced comes from
the US followed by Europe. According to a report by Mc Kinsey and NASSCOM, India has
the potential to process 35 percent of the banking transactions in the US by the year 2011.
Future prospects for the network bank "Outsourcing" are currently one of the most

popular topics of discussion in the banking community. This term is used to describe the
distribution of value chain activities among partners. Against a background of
increasingly deregulated markets, changing customer behavior and a steady decline in
profit margins, one of the pivotal challenges is to manage and configure value added
correctly. Banks are faced with having to improve their cost-income ratios on a long-term
basis while securing a lasting competitive edge that will help them position themselves
in the marketplace. But this challenge offers a massive opportunity: the outsourcing of
service processes is an ideal means of achieving future-oriented value added. From the
various discussions with the various bankers, Management Group, and head of the
"Sourcing in the Finance Industry", explains the key factors in this new development. the
centralized clearinghouses and exchanges) and standards to ensure the system-
supported interchange of information (e.g. SWIFT, Financial EDI, FIX Protocols). This
process has been facilitated by the intangible nature of financial products. At the same
time, it is clear that fragmentation of the value chain is at a much less advanced stage than
in the automotive industry, for example. Full-service banks, in particular, have integrated
numerous business processes (retail, processing, product and support processes)
vertically in order to meet customer requirements. Although there are misgivings about
the measurement of real net output ratios (i.e. the depth of value added), it is a fact that
the banking sector, at 50-80 percent, is well ahead of the electronics or automotive
industries, with just 15-25 percent. A study of more than 20 bank branches and Local
Head Office of SBI, ICICI, Bank of Baroda, and Axis Bank undertaken shed more light on
this situation. It reveals that there are three distinct categories here. The real net output
ratio of 57 percent for the sourcing of infrastructure services is an indication that
collaboration with outside partners is already commonplace as regards the operation of
computer centers and the maintenance of IT systems and equipment. Another study in
which sourcing practices in Public Bank and Private Bank were compared showed that
the proportion of in-house development of IT applications is still relatively high in Public
Bank, whereas the real net output ratio for service processes, such as the management of
securities, is lower than in Private bank.
Opportunity Knocks

Retail financial-services businesses—such as mortgages, personal loans, wealth

management, and asset management—have enormous potential in India today, given
their relatively low levels of penetration. Retail lending, for example, at about $40 billion
in 2004 and growing at roughly 30 percent per year, still represents only about 20
percent of industry advances and less than 7 percent of GDP—a much lower percentage
than in Thailand (18 percent), Malaysia (33percent), and South Korea (55 percent). India
‘s demographic profile makes it likely that this rate of growth will continue for the
foreseeable future. Consider India ‘s mortgage business. Bolstered by low interest rates,
mortgages currently account for half the retail asset market. And there is significant room
for further development, with volume rising possibly to $50 billion within the next few
years. Or take the wealth management sector. India is among the top six Asian countries
in terms of net investable assets (NIA). According to various estimates, there are around
400,000 Indian households with NIA above$250,000, 150,000 households with NIA
above $500,000, and more than 60,000 households with NIA above $1 million. In the
broader asset-management arena, the roughly $35 billion in assets being professionally
managed in India is quite low, representing just under 6 percent of GDP. What makes the
opportunity especially attractive is that many private institutions above a certain critical
mass are earning a return on equity of more than 30 percent.22 India ‘s billion-strong
population, demographic profile, and rising degree of affluence also bode well for other
retail products currently in their infancy, such as credit cards and life insurance. India ‘s
Credit-card base has risen to about 10 million, for example, but only two players are
earning appreciable returns. Yet penetration still lags that of most emerging markets, and
life insurance is just beginning to shed its image as solely a tax shelter.
Challenges Faced in the Industry
Financial industry challenges are largely generational. The late 1800s were marked by
notorious gangs that plundered banks throughout the American Wild West. The 1900s
witnessed women struggling to enter the male-dominated banking industry. And now?
Well, now we have digital banking.

The long-held promise of digital technology to transform financial institutions has not
been broken. It just hasn’t been fully kept. The digitization of the financial industry was
supposed to solve problems. And it has. It has also created some new ones in the process.
Challenges faced by financial sectors
• Cybercrime in Finance
Reports of data breaches by financial services companies, Data breaches involving

financial service firms increased by 480% from 2017 to 2018. With each attack costing
financial institutions millions, innovative solutions are needed if we are to avoid a repeat
of the lawless days of the Wild West.
Whatever cybercrime solutions emerge to protect financial services, blockchain

technology must be the foundation. Period.
As more and more institutions adopt distributed ledger technology (DLT), blockchain will
become the de facto solution to keeping financial data secure while at rest.
Integrating DLT with existing financial infrastructures poses some serious obstacles that
must be overcome. Even so, they are past the point of asking whether blockchain is the
holy grail of financial data security. It is:
• Regulatory Compliance in Finance
The ever-changing regulatory environment poses a constant challenge for financial

institutions of all types. Regtech is an emerging industry that can help ease the burden of
compliance. By using the latest FinTech technologies to address regulatory compliance,
RegTech startups are bridging the gap between regulators and the financial service
industry.
• Bcc and obstacles for financial service providers.
Tapping into social media, consumer databases, and even news feeds can help banks
better serve their customers, while better protecting their own interests.

But sorting through torrents of unstructured data for useful information is no small
undertaking. It requires powerful data analytics technology if institutions are to reap a
benefit.
Fortunately, data analytics solutions are emerging with the potential to transform asset
management, trading, risk management, and other financial services.
• AI Use in Finance
Industry experts believe that AI will transform nearly every aspect of the financial service
industry. Automated wealth management, customer verification, and open banking all
provide opportunities for AI solution providers.
Powerful advances in deep learning technology are paving the way for AI. In fact, if you
have been alerted by your bank of suspicious activity on your account, you have likely
already benefited from AI. The challenge that financial services face is learning how to
benefit from the power of AI, without being victimized by it. In R&D labs across the world,
that question is being pondered at this very moment.
• Fintech Disruption of The Financial Service Industry
Penetration of Fintech among the US Financial Sector (a sample of 1300 companies)
Those pesky little FinTech companies that appeared less than a decade ago have not gone
away, as many in the banking industry had hoped. On the contrary. Many have matured
into formidable rivals for customers and the cash they bring to the table.
• Customer Retention in The Financial Services Industry
Competition for financial service clients has never been fiercer. While brand loyalty may
not be dead, it is definitely on life support.
What matters to most customers in this year is greater personalization, more automated
services, and easier access to services. Institutions that can deliver all three will capture
their share of the market.

Key to not losing the battle is recognizing that customers are less concerned with brand
familiarity than getting the services they want. Providing customers those services is key
to client retention.
• Employee Retention in The Financial Service Industry
Today’s financial service companies not only find it difficult to attract customers, but they
are also finding it difficult to attract employees.
A lack of qualified talent to fill new IT roles, and a millennial workforce that shuns long-
term employment, are leading factors in finding good help.
Institutions that want to attract and retain a qualified workforce must change their
philosophy. No longer is it enough to offer good pay and benefits; workers now expect
employers to nurture a culture that is accommodating to the values and lifestyles of the
employee.
Change is necessary if stable and qualified workforces are to be achieved. But don’t expect
it to come easy.
• Blockchain Integration in Finance
We talked earlier about blockchain as a key component in the battle against cybercrime.
But data security is not the only application for blockchains in the financial sector.
Far from it, cases across the globe are already proving the value of blockchain in a wide
variety of banking and investment applications. From solving challenges faced by
investment banks to helping customers make safer payment transactions, the list is
growing daily.
• Customer Experience in The Financial Services Industry
CX isn’t just a buzzword, it is one of the most important issues facing firms in the financial
services industry. Banking customers, today, expect banking to be mobile, with a la carte

services, and they don’t care if the bank is a FinTech no one ever heard of. Changing old-
age traditions will take time and money, but mostly open mindedness.
• Crossing the Digital Divide in Financial Services Marketing
Success in the era of digital banking means more than having a mobile app. It means
digitizing your entire brand, shifting your advertising campaigns from conventional ad
media to digital channels. Which is another way of saying you reach your target audience
where they are today, rather than where they were yesterday.
Of course, social media exposure is necessary, but you need more than a Facebook ad.
You must tap big data and AI to help locate potential customers, and to deliver customized
offers in real time.
Conclusion
According to a recent survey, only 7% of financial companies have implemented a cloud-

based technology stack. The reluctance to adopt technological solutions is
understandable. After all, banking did quite well for hundreds of years without them.
But the digital banking revolution has begun, and it will not end till the last institution has
crossed the digital divide.


CHAPTER-3
DISCUSSION


INTRODUCTION

Geojit is a leading Indian investment services company with a strong presence in the Gulf
Cooperation Council countries. As a pioneer in the industry, Geojit continues to innovate
and make the markets accessible to individual investors. This chapter deals with the
marketing activities, objective assessments and observations by the candidate about
Geojit financials.

3.1- OBJECTIVE ASSESSMENT- OBSERVATIONS BY THE CANDIDATE.

Marketing department in Geojit Financial

Marketing is the action or business of promoting and selling products or services,
including market research and advertising.
A marketing department promotes your business and drives sales of its products or
services. It provides the necessary research to identify your target customers and other
audiences. Depending on the company's hierarchical organization, a marketing director,
manager or vice president of marketing might be at the helm.
Geojit Financials is one of the leading financial service sectors, which is popular in
trading activities. They provide online trading platforms.
Geojit, a member of NSE and BSE, has a network of around 460 branches in India and
abroad, rendering quality equity trading services. Geojit not only has a strong offline
presence but also provides automated online trading services.
Geojit' retail spread caters to the needs of individual investors. Trading in equities is
made simple, safe and interesting with smart advice from the research desk through
daily SMS alerts, market pointers, periodical research reports, stock recommendations
and customer meets organized frequently.
The online trading platform SELFIE, allows customers to access the markets by setting
up their own market watch, receiving research tips, stock alerts, real-time charts and
news and many more features enable the customer to make informed decisions.
SELFIE’s mobile edition allows customers to access the stock market on their mobile
phones.


● Cash Market:

A discount of 20 % from the existing offline brokerage is applicable for trades
executed through Customer Care.
This is applicable to Ordinary Resident account only.
These rates are subject to the minimum brokerage as under: Rs.20 per Contract
or 1 paisa per share whichever is higher subject to a maximum of 2.5% per
share.
In case the contract note is delivered by post then Rs.20/- per Contract or 5 paisa
per share whichever is higher subject to a maximum of 2.5% per share.
Both subject to a maximum of Rs.0.25 per share/debenture or 2.5% of the
contract price per share/debenture whichever is higher.
Taxes, levies and other statutory charges shall be charged extra.

Online trading features

● Pioneer
In the year 2000, Geojit pioneered the simple concept of providing individuals
with the facility to trade online. Ten years later, the state-of-the-art Mobile
Trading platform, FLIP-ME was launched for real-time Market Watch, Quotes,
Market-by-Price, etc. This revolution gave the company a first-mover advantage
in online & mobile trading.

● Security
Every client is provided with a Username and Password with 128-bit encryption
along with a virtual keyboard to provide the highest level of security.

● Multiple bank payment gateways
Transfer money online real-time to benefit from price movements in the market.
Current payment gateways: Catholic Syrian Bank, HDFC Bank, Axis Bank, State
Bank of India, ICICI Bank, Federal Bank & Oriental Bank of Commerce.


● Automated NEFT Facility through HDFC Bank

Buying power is updated automatically once the amount is received in the bank
account.

● UPI Transfer
Enjoy the benefit of instant credit using UPI transfer facility which is available
across all major banks.

● Reduced Brokerage
Brokerage fees are very competitive and fair.

● Aftermarket Hour Orders
If you are unable to participate in the market, place your orders after the market
has closed. It will be sent to the Exchange on the next working day.

● Other Investment Products
Access to IPOs, Mutual Funds & Bonds in a single click.

● Equity Exposure
Day Trading
Exposure against Holdings

● 7-day credit facility
Margin Trading Facility

● Customer Care Website
Provided to all clients

● Provision to apply for IPO/ Bonds online.
Access to Ledger, Demat holding, Portfolio tracker, Contract notes etc.
Transaction details of Cash, Derivatives, Commodity & Currency
Facility to subscribe for SMS.
Information related to support, the resistance of each security.

Facility for Payout request, details of FAO rollover and Margin Requirement.
Information regarding securities available for intraday and margin applicable for
each scrip.

Margin Trading Facility

Geojit Financial Services Ltd. offers Margin Trading Funding facility to all customers
under the scheme of Margin Funding approved by SEBI.
Key features of the scheme are as follows:
● No need of signing agreements, the customer just need to accept a T&C online.
No need of separate DP, MTF DP will be henceforth a pool DP.
No worry of AMC as there is no requirement for a separate DP.
Exposure against holdings will be available for purchasing shares under MTF.
The customer has the choice to go for OWN DP or pool DP for keeping shares
bought through MTF.
Registration Procedure:
Currently, customers who have an online/offline trading account with Geojit
Financial Services can avail the Margin Trading Funding facility.
Clients desirous of registering for Margin Trading Funding Scheme can log in to
any of the Selfie platforms/use the direct link of new GCC and accept the T&C and
rights and obligations.

Following are the trading platforms offered by Geojit Financials:

1.SELFIE GOLD

Powered by the latest web technologies and designed to maximize user experience.
Selfie Gold combines a wide range of features such as Customizable dashboards and
views with widgets basket, uniform experience across multiple platforms and devices,
Integrated Security view with quotes, charts, news, recommendations, MBP, F&O Chains
& Order windows all at one place. They provide Real-time News aggregation and
visualization engine. Market intelligence & Research calls. One-click to trade is available.
Open access area that offers general information for all users.

Selfie Gold also offers among other things an Advanced Charting platform which enables
a user to Trade directly from Charts, advanced chart types like Heiken-Ashi, Kagi, Point
& Figure, Renko & Line Break, 90 + Studies and indicators. The trading platform’s
feature-rich F&O Analytics and Visualization Engine, incorporates Sectoral heat maps,
Futures and options chains, Option Greeks charting and VWAP Screeners.

2.SELFIE PLATINUM

The platinum platform is a virtual dealer terminal. It is best suited for active traders,
who take advantage of minor movements in the price. This EXE program can be
downloaded on the client’s computer.

Key Features:
Platinum is similar to a dealer terminal. They provide flexibility to customize screen
layout and setting. Professional, Classic, Customized Market Watches are provided. Fast
trade execution with instant trade confirmation through the pop-up. View Cash, F&O
and Currency quoted in a single market watch screen Real-time updating of Index &
Tick by Tick updating of index chart. Online Fund transfer facility is a key feature. They
place orders in the Post-Close session of the exchanges. Aftermarket hours orders can
also be placed in both the exchanges. Sophisticated studies such as Technical indicators
can be performed by using appropriate parameters.

3.SELFIE MOBILE

Geojit Mobile Trading Platform Selfie Mobile (formerly known as Flip Me), Geojit’
mobile trading platform, was the first of its kind in India. Since its launch in 2010, it has
won wide acclaim from their clients and the industry. Over the years, they have
continued to update it, add additional functionalities and ensure that it is accessible
across a wide range of operating systems. Selfie Mobile, in fact, offers cutting edge
technological solutions for the benefit of their clients.

KEY FEATURES OF SELFIE MOBILE


• Streaming Market Watch, MBP & Portfolio.
• Grid & Line style view.
• Order book & Trade book.
• Multiple exchanges - NSE, BSE, FAO, Currency, Mutual Funds in all one screen.
• Multiple Products-Cash, Intraday, MTF.
• Tick by Tick Intraday charts.
• Automated call flow facility to customer care. • Research ideas, orders & trades as a
popup.
• Online Paying & payout.
• Customized settings.

3.2-SPECIFIC LEARNING OUTCOME

Geo Data is a monthly research report covering most financial instruments. It is quite
comprehensive, and provides in-depth information on stocks to watch out for,
recommended Mutual Funds, performance of schemes, Futures and Options update and
a review of the commodities markets. Geojit has a team of experts who track the
markets and related events very closely. Sophisticated tools are used for technical
analysis and research to offer recommendations, technical analysis and research
reports. Each day the Geojit Research team brings to table information that helps to get
profit from it.

• Daily Market View:
Technical Analysis - Market, a daily report on markets gives a clear picture on
the expected market movements (NSE and BSE). It also covers the key support
and resistance levels. It also provides clues on market direction and the expected
profit booking levels.

• Daily Stock View:
Technical Analysis - Stocks, a daily report on the stocks for the day. These are
prepared with "Departure Oscillators" tool that has a high degree of accuracy on

stock readings; which in turn helps investors, day traders, High Networth
Individuals with stock ideas that may benefit them

• F&O Analysis: F&O Analysis is a daily report that gives near 100% accurate
reading on both Futures and Options. Tools such as PC ratios, Open Interest and
volatility combined with RSI indicators are used for this purpose. It is helpful for
day traders, long-term holders and HNI clients

• SMS: SMS alerts are sent to those who have registered for the service. These are
prepared with utmost care, ensuring that it is suitable for both the Bulls and the
Bears. It provides instantaneous buy/sell/hold recommendations purely on
technical. It also provides option strategies with the use of Implied/Historical
Volatility study. SMS is especially handy for Index Traders.
•
Geo Data: Geo Data is a monthly research report covering most financial
instruments. It is quite comprehensive, and provides in-depth information on
stocks to watch out for, recommended Mutual Funds, performance of schemes,
Futures and Options update and a review of the commodities markets.

3.3- CONTRIBUTIONS BY THE STUDENT GROUP

Unfortunately, trading systems often get discarded early on after a couple of poor back-
test results. Sometimes it is better to improve an existing system than to start afresh
with something new.

1.Take it Live
One of the best ways to improve a trading system is to trade it live. Too many traders
get stuck in the back-testing loop where they spend all their time tweaking and
optimizing their systems on historical data. However, back-testing can only get you so
far because you will always be limited to the past data you have available. You also run
the risk of over-fitting.

2. Compete with It

Once you have a trading system in the market, either live or demo, find a way to
compete with it.

3. Try Different Markets
An obvious way to improve a trading system is to try it in different markets. Developed
markets are more liquid and efficient than emerging markets. S&P 100 stocks are more
liquid and efficient than micro-cap stocks. Commodity markets trend more often than
the currency and equity markets.

4. Try Different Timeframes
Another obvious choice is to implement your trading system on different timeframes.
Short timeframes like 5-minute or 30-minute are noisier than longer timeframes like
daily or weekly. Daily timeframes show better trends but they will also lead to fewer
opportunities. There may be a balance that suits your trading system best.

5. Simplify It
Often, the reason why a trading system fails when taken live is that it is overly complex.
Too many moving parts may have led to curve-fitting in the back-testing phase. Thus, a
very good way to improve a trading system is to simplify it. Strip it back to its most
crucial elements and see if it has any real impact on performance.

6. Use Better Data
Sometimes the reason a trading system performs badly has nothing to do with the
system itself but the data that was used to build it. If the data is biased or has holes in it,
you will end up with a biased system. That’s why it’s important to use high-quality data
service.

7. Use Walk-forward Analysis
The whole point of back-testing is to simulate the live trading environment as closely as
possible so you can find a persistent, profitable edge. The problem is that financial data
is not stationary. A back-test by itself does not do a great job of imitating the ever-
changing nature of markets.


8. Reduce Your Trading Costs

Since financial markets are very efficient, the success of a trading system can rest on a
very thin margin. High-frequency trading models require lower transaction costs than
slower models. So try to find a way to reduce your trading costs. For example, by using a
different broker, using different order types or trading at different times.

9. Automate It
Sometimes a trading system fails not because it is mediocre but because it is not being
executed correctly. This may be due to difficulties involved in execution. By automating
a trading system, you can remove human error and execute trades far more accurately.
This article shows the steps to automating a trading system in Excel.

10. Use Optimization
Too much optimization of a trading system can be dangerous because it can lead to
curve fitting very quickly. This is true if you are searching hundreds of trading
parameters for the holy grail system. However, optimisation has a very important use
for observing the robustness of trading parameters. To test for robustness, you simply
need to look at the system performance of neighboring parameters.

11. Combine It
As I detailed in another article, combining trading systems together is one of the easiest
and best ways to improve a single trading system. If two trading systems are not
correlated, combining them together usually leads to smaller drawdowns and therefore
better risk-adjusted returns.

12. Make It More Dynamic
A problem with your trading system might be that it is too static. Financial data is
dynamic and ever-changing so the best system is one that stays in tune with the market.
Walk-forward analysis, optimisation, and machine learning are ways to re-tune the
system to current market conditions.

13. Use Better Money Management
Even a profitable trading system will blow up if you bet too much on every trade.

Conversely, if you bet too little, you won’t make enough money for it to be worthwhile.
As I wrote in a previous article, the Kelly formula provides a mathematical answer to
calculating the best trade size.

14. Introduce A Filter
Filters, in general, are mechanisms designed to remove unwanted or unnecessary
components. This can be applied to trading system design as well, however, this must be
done carefully so as not to introduce curve fitting or data-mining bias.

15. Introduce Fundamentals
Along similar lines, a trading system might be improved by introducing fundamental
data. In stocks, fundamental data may include PE ratios, earnings per share, free cash
flow or insider transactions. For an investing model that utilises fundamental data in
this way see the Marwood Value Model.

16. Use More Sophisticated Ideas
The concept of Occam’s razor suggests that simple trading strategies should be
preferred over complex systems (if they achieve similar results that is). However,
outdated, overly simplistic rules may be the reason why a trading system stops working.

17. Try To Capture Long Tail Moves
If your trading system uses profit targets it may miss out on a potentially big payout
during a long tail or black swan type of event. Thus, your profit targets might be
reducing the profit potential of your strategy. Unless they provide value, profit targets
might be better switched to different types of exits.

18. Abandon ‘Financial Astrology’
In the book Quantitative Technical Analysis, Dr. Howard Bandy advises that you should
abandon financial astrology. If your trading system relies on phases of the moon,
Fibonacci, wave theory or other dubious schemes, abandoning them may be the best
step forward to improve your trading system.

19. Introduce Human Elements

Improvements in technology have very much levelled the playing field when it comes to
quantitative investing and trading. Now it is easy for anyone to run a back-test and see
what would have happened if a certain scenario had played out. With so many traders
using the same methods, it’s likely that potentially profitable trades will be arbitraged
out at the same time. However, just like computer-human teams can beat advanced
computers at chess and other games, there is a strong argument for introducing human
elements to a trading system setup.

20. Look at The Impact Of News Events
Stock markets in particular are very susceptible to news events like earnings reports.
These events are difficult to manage during the back-testing phase because you typically
don’t know when they take place.

21. Give It Time
Sometimes a trading system simply needs to be accepted for what it is instead of
searching for a holy grail system and looking for unrealistic returns. If a system has a
profitable edge, then it has value. The value which can be unlocked further through
leverage, trade frequency or in combination with other trading systems. Thus, you can
improve your trading system by giving it the time and space it needs to succeed.



CHAPTER-4
FINDINGS


INTRODUCTION

A leading Indian investment services company, Geojit has presence across India and in
the Gulf Cooperation Council countries. A rich heritage of providing effective financial
solutions has made Geojit a trusted partner of over a million people. They provide a wide
array of products and services such as distribution of mutual funds & insurance, equity
and derivatives, commodity, PMS and financial planning. Along with traditional offerings,
they have also built a comprehensive portfolio of digital products and services. Their
multi-channel distribution network consisting of branches, online portal, dedicated.
Customer care and phone service caters to all the investment needs of the clients. This
chapter deals with findings and suggestions of Geojit Financials

FINDINGS

● Geojit is a leading investment services company in India with a growing presence
in the Middle East. The company rides on its rich experience in the capital market
to offer its clients a wide portfolio of savings and investment solutions. The gamut
of value-added products and services offered ranges from Equities and
Derivatives to Mutual Funds, Life & General Insurance and Financial Planning.

● Geojit allows the trader to trade in equity derivative options and future markets.
Offer their customers to invest in mutual funds and SIP. They are well-known to
offer one of the best products for PMS or portfolio management.

● Geojit is a SEBI registered intermediary that is a Depository Participant of NSDL &
CDSL.

● The minimum brokerage charged by Geojit BNP Paribas is Rs 20 per Contract or 1
paisa per share whichever is higher subject to a maximum of 2.5% per share.

● Bank of Bahrain and Kuwait (BBK), one of the largest retail banks in Bahrain &
Kuwait through its NRI-Business, and Geojit entered into an exclusive agreement
in September 2007. This association will provide the bank’s sophisticated client

base, the opportunity to diversify their holdings through investments in the Indian
stock market. Services offered are- Investment Advisory, Portfolio Management,
Mutual Funds, Trading in Indian Equity Market, DEMAT and Bank account, Offline
Share Transactions and PAN Card.

● Geojit offers a great work environment with plenty of learning opportunities. I
believe that we have a positive atmosphere to work in and the company
encourages a healthy work-life balance. Our company cares about the community
and the environment and this encourages us, the staff, to do the same. Sparsh–
Community Health Project of Geojit is much appreciated and I am sure it has
touched many needy lives.

● Geojit offers prospective applicants a chance, not only to leverage its rich heritage
of over 30 years in the Indian Capital Markets but also to make the most of its fresh
outlook and contribute tangibly to the company’s success.

● To reach out to people from all walks of life and create awareness about the
benefits of investing in the capital markets, Geojit launched a national Financial
Literacy campaign in 2005.

● Aloula Geojit Capital Co is Geojit's joint venture in Saudi Arabia with the Al Johar
Group. Saudi Arabia is home to the world’s largest NRI population. The Saudi
national and the NRI would be able to invest in the Saudi capital market. The NRI
would also be able to invest in the Indian stock market and in Indian mutual funds.
This joint venture makes Geojit the first Indian stockbroking company to
commence domestic retail brokerage operations in any foreign country.

● Barjeel Geojit Financial Services, LLC is a licensed Financial Intermediary set up in
the UAE in 2001 as a joint venture between the Sharjah based Sheikh Sultan Bin
Al Sooud Al Qassemi and Geojit Financial Services Ltd. with Mr K.V. Shamsudheen
as the founder Director. It offers a wide range of financial products and services to
cater to the varied investment needs that suit investors’ multiple risk appetite.


● If the customers are Non-Resident Indian and residing in the U.A.E, Saudi Arabia,
Bahrain, Kuwait or Oman, then customs can become an NRI client of Geojit. It will
give customers the opportunity to invest in and benefit from the India growth
story. As an intermediary geojit will be able to offer clients an unparalleled range
of products and services that will enhance customers' investing experience.

SUGGESTIONS

● Geojit can access to accurate, up-to-date and consistent information to employees
● Immediate answers to customers questions (without having to lean on other
employees)
● Providing consistent and accurate information across channels is a constant
challenge for banks and financial services.
● The concept of educating potential and current customers on financial literacy is
important.
● The company can Explore advances in mobile payment options.
● Geojit can use biometrics, such as voice identification and eye scanning, to
increase security.
● The company can integrate systems and convert old data to new formats.
● The company can install a drive-through video teller device.
● Geojit can take advantage of customer data and social media (that banks have but
are not using to its full potential) to enhance bank marketing and geographically
targeted customer offers.
● Provide data back to customers

CONCLUSION

• Geojit has the honor of being one of the first pure broking firms in India to go for
a public issue. Further, it was the first to start online trading facilities. More
importantly, it was also the first to embark on the franchise model of sub-
broking. It was also the first to have a joint venture with countries in West Asia,
and a pioneer in starting online commodities exchanges to trade in pepper,
cardamom, silver and Gold.

Geojit is a trusted broker and ensures full transparency up to the client level.
Overall procedures for getting Geojit franchise are simple and in-line with the
guidelines set by the Securities and Exchange Board of India. Revenue sharing
structure of the firm ensures that sub-brokers get due to their hard work and
client acquisition. All these features together make Geojit one of the preferred
brokers to take the franchise from.
• Geojit is in retail finance for over 30 years now and has survived the high and low
of the market. The company boasts of about 9,00,000 clients and around ₹34,900
crores of assets under management. Geojit offers the sub-brokership with a string
of services such as internet, phones, and emails and so on for its stockbroking
business.
• For all trading purposes, Geojit has its internal application. Also, they are equipped
with their own marketing team. Further, research and advisory services are
offered free-of-cost to the sub-brokers.
• Geojit Franchise business has relatively limited geographical coverage and a huge
room to grow if we speak from the industry perspective. The broker has done well
overall, especially after acquiring Sharekhan, however, there are bits and pieces
where some restructuring and overhauling may be required.
As far as the offline presence is concerned, the broker is present in 70% of the
Indian states and does that through a couple of business models it has to offer.



BIBLIOGRAPHY


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“A

STUDY ON GEOJIT FINANCIAL SERVICES WITH SPECIAL REFERENCE TO

MAHATMA GANDHI UNIVERSITY, KOTTAYAM

In partial fulfilment of the requirement for the

Degree of Bachelor of Business Administration

(Registration no: 190021082303)

Under the supervision of

Asst. Prof. DRISHYA S RAJ

Assistant professor Department of BBA

(AFFILIATED TO MAHATMA GANDHI UNIVERSITY, KOTTAYAM)

CHAPTER CONTENTS PAGE

1.1 BRIEF HISTORY OF THE ORGANISATION AND CURRENT BOARD 2

1.2 MISSION/VISION STATEMENT AND QUALITY POLICY 5

1.3 BUSINESS PROCESS OF THE ORGANISATION-LEVEL OF 6

1.4 CUSTOMERS OF THE ORGANISATION-LEVEL OF 11

1.5 COMPETITORS OF THE COMPANY 14

1.6 STRATEGIES-BUSINESS, PRICING, MANAGEMENT 15

1.7 CSR ACTIVITIES 18

1.8 COLLABORATIONS AND EXPANSION PLANS 21

1.9 SWOT ANALYSIS OF THE COMPANY 21

1.10 ORGANISATION CHART 23

2 AN OVERVIEW OF THE INDUSTRY 25

2.1 BRIEF HISTORY OF THE INDUSTRY 26

2.2 BUSINESS PROCESS OF THE INDUSTRY 28

2.4 LEVEL AND TYPE OF COMPETITION-FIRMS OPERATING IN THE 35

2.5 PRICING STRATEGIES IN THE INDUSTRY 38

2.6 INDUSTRIAL PERFORMANCE-GLOBAL, NATIONAL AND 42

2.7 PROSPECTS AND CHALLENGES IN THE INDUSTRY 48

3.1 OBJECTIVE ASSESSMENT-OBSERVATIONS BY THE CANDIDATE 57

3.2 SPECIFIC LEARNING OUTCOME 62

3.3 CONTRIBUTION BY THE STUDENT GROUP 63

BHARATA MATA COLLEGE, THRIKKAKARA

BHARATA MATA COLLEGE, THRIKKAKARA

BHARATA MATA COLLEGE, THRIKKAKARA

BHARATA MATA COLLEGE, THRIKKAKARA

BHARATA MATA COLLEGE, THRIKKAKARA

BHARATA MATA COLLEGE, THRIKKAKARA

services, such as stock brokering services, depository services, financial products

BHARATA MATA COLLEGE, THRIKKAKARA

• Geojit offers discretionary Portfolio Management Services (PMS) to HNIs (High

BHARATA MATA COLLEGE, THRIKKAKARA

BHARATA MATA COLLEGE, THRIKKAKARA

BHARATA MATA COLLEGE, THRIKKAKARA

available for you free of cost.

BHARATA MATA COLLEGE, THRIKKAKARA

BHARATA MATA COLLEGE, THRIKKAKARA

Front office Asset management Trade execution

Middle office Investment

Back office Fund accounting Global custody Transfer

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BHARATA MATA COLLEGE, THRIKKAKARA

● SREI Infrastructure Finance Ltd.

● PRACTICAL ASPECTS OF THE STRATEGY:

BASIC STRATEGIES OF INDEX FUTURES TRADING

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● Comply with the statutory CSR obligations