A

Project Study Report

On

Training Undertaken at

Motilal Oswal

Ranchi

"A STUDY OF CUSTOMER PERCEPTION TOWARDS EQUITY TRAINING"

submitted in partial fulfillment for the Award of degree of

Bachelor of Banking and Insurance (Hons.)2017-2020 of Vocational and

Management Studies

Submitted By

Kumari Sneha Singh

Declaration

I hereby declare that the project work entitled "Customer perception towards Equity

trading" is a genuine work done by me , and all the information collected is to the best of
my knowledge. The work done by others has been properly acknowledged.

Purpose

The objective which leads me to do this project was my strong desire to know about the

equity trading. How they are influenced by this!

It would be helpful to take stock of the prevailing trend of the investor public in any city.

The question that came into my mind at that time was from where will I learn all this and

the answer which I got for this question was in the form of my project title.

Since this has been a good opportunity for me so , I decided to take up this project.

Acknowledgement

I express my sincere thanks to my project guide Mrs. Binamrata Sengupta , Manager-HR ,

Motilal Oswal Financial Services Limited , Ranchi for guiding me right from the inception till

the successful completion of the project. I sincerely acknowledge her for extending their

valuable guidance , support for literature , critical reviews of project and the report and

above all the moral support she had provided to me with all the stages of this project.

I would also like to thank the CRM Department , Motilal oswal for their help and

cooperation throughout our project.

I express my sincere thanks to all my friends and colleagues for their support in completing
project on time.

I thank the God , Almighty and most benevolent for giving mr the courage and wisdom to

complete this project as per the schedule.

Broking Industry Overview

Broking Insights

The Indian broking industry is one of the oldest trading industries that has
been around even before the establishment of the BSE in 1875. Despite
passing through a number of changes in the post liberalization period, the
industry has found its way towards sustainable growth. With the purpose of
gaining a deeper understanding about the role of the Indian stock broking
industry in the country’s economy, we present in this section some of the
industry insights gleaned from analysis of data received through primary
research.
For the broking industry, we started with an initial database of over 1,800
broking firms that were contacted, from which 464 responses were
received. The list was further short listed based on the number of terminals
and the top 210 were selected for profiling. 394 responses, that provided
more than 85% of the information sought have been included for this
analysis presented here as insights. All the data for the study was collected
through responses received directly from the broking firms. The insights
have been arrived at through an analysis on various parameters, pertinent
to the equity broking industry, such as region, terminal, market, branches,
sub brokers, products and growth areas.

Some key characteristics of the sample 394 firms are:

 On the basis of geographical concentration, the West region has the
maximum representation of 52%. Around 24% firms are located in
the North, 13% in the South and 10% in the East.
 3% firms started broking operations before 1950, 65% between 1950-
1995 and 32% post 1995.
 On the basis of terminals, 40% are located at Mumbai, 12% in Delhi,
8% in Ahmedabad, 7% in Kolkata, 4% in Chennai and 29% are from
other cities.
 From this study, we find that almost 36% firms trade in cash and
derivatives and 27% are into cash markets alone. Around 20% trade
in cash, derivatives and commodities.
 In the cash market, around 34% firms trade at NSE, 14% at BSE and
52% trade at both exchanges. In the derivative segment, 48% trade at
NSE, 7% at BSE and 45% at both, whereas in the debt market, 31%
trade at NSE, 26% at BSE and 43% at both exchanges.
 Majority of branches are located in the North, i.e. around 40%. West
has 31%, 24% are located in South and 5% in East.
 In terms of s ub-brokers, around 55% are located in the South, 29%
in West, 11% in North and 4% in East.
  Trading, IPOs and Mututal Funds are the top three products offered
with 90% firms offering trading, 67% IPOs and 53% firms offering
mutual fund transactions.
 In terms of various areas of growth, 84% firms have expressed
interest in expanding their institutional clients, 66% firms intend to
increase FII clients and 43% are interested in setting up JV in India
and abroad.
 In terms of IT penetration, 62% firms have provided their website and
around 94% firms have email facil.

MOSL history and milestones

The story of MOSl goes back many years, when Mr. Motilal Oswal and Mr.

Raamdeo Agrawal met each other as students in a Mumbai suburban hostel in the

early eighties. Both the young chartered accountants hailing from a rural & an

unpretentious background had a common dream ’to build a professional

organization with strong value systems, to provide reliable &

honest investment advice to investors’. Thus was born their first enterprise called

"Prudential Portfolio Services" in 1987.

• 2009
• Motilal Oswal Securities Ltd. enters 'Limca Book of Records' for creating India's

largest dealing room in Mumbai

• MOSL was 'Rated No.1 – Best recommendations Mid & Small Caps' and won

awards in 3 out of 4 categories at the Starmine India Broker Rankings 2009 from

Thomson Reuters

• 2008
• MOSL awarded the prestigious Nasscom - CNBC TV 18 IT User Award – 2008

• MOSL awarded 'The Best Franchisor in Financial Services' by Franchisee World

Magazine 2008 for the second consecutive year

• MOSL creates one of India's largest Equity Dealing & Advisory rooms, spread over

26,000 sq ft in Malad, Mumbai

• Motilal Oswal's India Business Excellence Fund raised USD 125 million, 25%

higher than the initial target of USD 100 million

• D & B survey rates MOSL as India's top Broking House in terms of total number of

trading terminals. MOSL alliance with IDBI Bank to offer Online Trading Services

• AsiaMoney Brokers poll 2007 rates Motilal Oswal Securities Ltd. - Best Overall

Country Research - Local Brokerage

• 2007
• The Strategic partnership between MOSL and SBI - EZtrade - reaches an

importantmilestone i.e. In less than a year it has managed to sign up more than

10,000 customers

• Starts Knowledge First campaign

• Motilal Oswal was perceived as the most Research driven stock trading player –

Starcom Mediavest Survey

• Introduces a separate brand for Private Client Group – Purple

• Motilal Oswal Commodities Broker Pvt Ltd (MOCBPL) bagges Globoil India's

prestigious 'Outstanding Commodity Broking House 2007' Award

• Motilal Oswal Financial Services ltd. gets listed on the BSE & NSE

• Mr. Motilal Oswal - Chairman and Managing Director has been appointed as a

member of the Managing Committee of Indian Merchant Chambers.

•Motilal Oswal Financial Services Ltd files RHP with SEBI for an IPO

• Motilal Oswal Financial Services Ltd. features as a case study in Harvard

Business School

• Motilal Oswal Financial Services Ltd ties up with Punjab National Bank to offer

online trading to its customers

• 2006
• Motilal Oswal Financial Services Ltd ties-up with State Bank of India to offer online

trading.

• Motilal Oswal Financial Services Ltd was declared as the Best Research House

for Indian Stocks in 2006 as per AQ Research.

• AsiaMoney Brokers poll 2006 rates Motilal Oswal Securities – Most Independent

Research- Local Brokerage

• Introduces unique 1 paisa trading scheme for online Derivatives trading

• Launches the India Business Excellence Fund (IBEF), a US$ 100 mn India

focused Private Equity Fund.

• Investment banking business advises Aban in their majority controlling stake of

Sinvest ASA – one of the largest investment banking deals of 2006.

• Places 9.48% with two leading private equity investors - New Vernon Private

Equity Limited and Bessemer Venture Partners.

• Issues about 13% of company’s equity to employees as ESOPs.

• Acquires a leading south Indian brokerage firm - Peninsular Capital Markets. Also

acquires 1 more brokerage firms in UP.

• Enters Private Equity and Investment Banking businesses.

• Value PMS gives 390% returns to its investors between Feb 2003 and March

2006.

• Another milestone in distribution – 1160 Business locations, over 360 cities,

serving over 200,000 customers.

• Employee base crosses 2000 and Business Associate base crosses 780.

• 2005
• AsiaMoney Brokers Poll 2005 rates Motilal Oswal Securities - Best Local

Brokerage, Most Independent Research Brokerage, Best in Sales and Service.

• Launches two new Portfolio Management Schemes - Value Hedging for

derivatives and Discover Value for the Rs. 5 lakh to Rs. 50 lakh category.
• Acquires Capital Deal Stock and Share Brokers, (a proprietary concern based in

Karnataka).

• Deepest distribution in the stock broking segment with about 700 Business

locations in 296 cities and about 1, 50,000 customers.

• 2004
• Value PMS delivers a whopping 160% post tax returns for the period ended April

2004. Bulls Eye PMS - A momentum based PMS launched.

• Start of the Solid Research Solid Advice campaign.

• 2003
• Enters the mutual fund and IPO distribution business.

• MOSt Portfolio Management Services launched with Mr. Raamdeo Agrawal as the

Portfolio Manager. Uniquely structured performance related fees.

• Inquire team is successful in capturing the uptrend in Banking, Auto and

Infrastructure sectors.

• Crossed 15,000 Depository accounts.

• About 200 Business locations in 124 cities servicing over 15,000 Retail and

Institutional Investors.

• 2002
• MOSt consolidates its retail operations & upgrades its IT / Back Office

infrastructure to cater to its growing network of business locations.

• Received the AsiaMoney Award - 2nd best among Indian Brokerage firms.

• Retail network completes coverage of 75 cities in India.

• Direct servicing of HNI clients is initiated. Crosses 10,000 Depository accounts.

• 1999
• Mr. Raamdeo Agrawal starts attending legendary billionaire investor Warren

Buffett’s Annual General Meetings of Berkshire Hathway Inc. He still continues to

attend it every year.

• The Wealth Creation Study started in 1996 culminates into Wealth Creation

Seminar and Awards function in 1998.

• First Stock Broking house to brand its services as a research and advice based

broker.

• “Wealth Creation” Campaign started.

• www.MotilalOswal.com launched. First broking house in India to go on the web.

• Becomes a Depository Participant of National Securities Depository Limited

(NSDL).

• Inducts Mr. Ivan Mathias, former country head of Watson Wyatt Worldwide, on its

Board to Directors to shape HR initiatives.

• 1998
• Mr. Motilal Oswal joins the Governing Board of The Stock Exchange, Mumbai.

• 1995-96
• “Motilal Oswal” gets incorporated as Motilal Oswal Securities Ltd.

• Wealth Creation Study started. First of its kind study initiated to identify biggest

and fastest wealth creating companies in Indian Stock markets.

• 1994
• MOSt acquires NSE Membership and plans for major expansion of its retail

network. Inquire (Indian Equity Research) is formally created at a 2500 sq. ft office

in South Mumbai with bigger and better quality infrastructure than the corporate

office. Since then nearly 20% of revenue is allocated to research. First Domestic

Stock broking house to have such a strong Research focus. “Motilal Oswal” enters

Institutional Broking business.

• 1990
• After just three years in the business, “Motilal Oswal” is formed through acquisition

of membership on The Bombay Stock Exchange (BSE). Three more memberships

taken in later years.

• 1987
• Mr. Motilal Oswal and Mr. Raamdeo Agrawal lay the foundation of a great

partnership by starting a sub-broking firm. The venture stands out from the rest due

to their approach of Research-based broking even when sub-bro

 Company Profile

Introduction:

They are a premier Financial Services Company who are also an exclusive partner to Molital

Oswal Financial Services Limited (Jharkhand and Bihar). Value Management Solution Private

Limited is a Non-govt company, incorporated on 15 Oct, 2009. It's a private unlisted

company and is classified as 'company limited by shares'. They are majorly in Financial

Services business from last 10 years. However our association with MOFSL started in

November 2018. The parent partner, Motilal Oswal Financial Services Ltd. is a reputed

name in Financial Services with group companies providing services such as Private Wealth

Management, Retail Broking and Distribution, Institutional Broking, Asset Management,

Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal

Strategies & Home Finance.

It has a diversified client base that includes retail customers (including High Net worth

Individuals), mutual funds, foreign institutional investors, financial institutions and

corporate clients. The core purpose is to be well respected and preferred global financial

services organization enabling wealth creation for all our customers. Research is the solid

foundation on which VCap Money, advice is based on. They give utmost importance to

research and use cutting-edge technology to disseminate it to our customers. The parent

partner, MOFSL’s research has received wide media coverage and consistently won awards,

showcasing our strong research capabilities. This includes being awarded 'Best Performing
National Financial Advisor - Equity Broker' for four years in a row at the UTI-CNBC TV18

Financial Advisor Awards.

As a retail broking customer one can trade in Equity, Derivatives, Commodities, Currencies,

Mutual Funds, IPOs, Bonds, and Insurance through us. Trade on BSE, NSE, NCDEX & MCX

through the Web, Mobile, Desktop or Call-n-trade. From a share trading company to a

diversified financial services company our journey of wealth creation for all our customers

continues.

*Motilal Oswal Securities Limited ("MOSL") has been amalgamated with Motilal Oswal

Financial Services Limited ("MOFSL") w.e.f. Augu

st 21, 2018, pursuant to the order dated July 30, 2018 issued by Hon'ble National Company

Law Tribunal, Mumbai Bench. The existing registration no(s) of MOSL would be used until

receipt of new MOFSL registration numbers. Whereas our company is registered in Patna

(Bihar) with CIN: U74140BR 2009PTC014917.

Mission and Vision:

At Value Management, their mission is to be a leading global financial services firm

providing investment banking, securities and investment management services to a

substantial and diversified client base that includes corporations, financial institutions,

governments and high-net-worth individuals.

Their clients' interests always come first. Our experience shows that if we serve our clients
well, our own success will follow.

Their assets are our people, capital and reputation. If any of these is ever diminished, the

last is the most difficult to restore. We are dedicated to complying fully with the letter and

spirit of the laws, rules and ethical principles that govern us. Our continued success

depends upon unswerving adherence to this standard.

Work Culture:

They have a culture where we are incredibly self critical, they don't get comfortable with

our success. However having said that, they encourage taking independent decisions and

do not mar or bog them with criticism. Their believe is that company’s growth is the

accumulative growth of each and every individual who believe in our culture .

Team:
 Chairman – Motilal Oswal
 Co-Founder – Raamdeo Agrawal
 Broking and Distribution – Ajay Menon
 CEO : Vikash R. Sahay
 Head Research : Abu Shahbuddin
 Head Operation : Dilshad Anwar
RMS
Compliance
MIS
Franchisee
IT
IP : Mutual Funds , Insurance , PMS

 Finance : Jyotindra Prasad

  HR : Binamrata Sengupta
 Business Development : Santosh Raj
CRM
PCG
Retail
Branches –
 Dhanbad
 Giridih
 Bokaro
 Kolkata

Equity : Trend Reversal

Indian equity market outlook remained robust despite concerns

on globle growth following Coronavirus outbreaks. This is on the
back of positive flow of recent activity –IPs , railway traffic ,
electricity and auto sales. Further , manufacturing PMI jumped to
an 8 year high of 55.3 in Jan. Union Budget , presented on 1st Feb
provides a more transparent set of fiscal accounts , focuses on
improving quality of expenditure and raising resources through
assets sales.

FII recorded net inflows of $2 bn inJan vs $862 mn last month

taking YTD inflows to $16.2 bn. January is the 5th consecutive
month of FII inflows in Indian equities. DIIs turned net buyers with
inflows of $316 mn in Jan vs $756 mn in December taking YTD
tally to inflows of $6.3 bn.
Mutual funds were net equity buyers at $214 mn while insurance
funds were net equity seller of $475 mn in January . YTD , mutual
funds were net equity buyers at $ 7.6 bn while insurance funds
remained net equity sellers oat $1.9 bn.

Mid and small cap indices outperformed the large cap Nifty index
in Jan. Gold was also on the back of uncertainity created by the
Coronavirus. Large cap Nifty index PE valuation is at a 20%+
premium to its long-term average Nifty but Yield Gap ratio is close
to the attractive zone.

Even though mid cao and small cap have corrected severely , they
remain fundamentally strong. Capturing an opportunity is what
investment is about. Therefore , focus remains on mid and small
caps PMS.
Definition

Equity is a term whose meaning depends very much upon the

context. In general , You can think of equity as ownership in any
asset after all debts associated with that asset are paid off. For
example , a car or house with no outstanding debt is considered
the owner’s equity since he or she can readily sell the items for
cash. Stocks are equity because they represent ownership of a
company , whereas bonds are classified as debt because they
represent an obligation to pay and not ownership of assets.

To support its investment , a firm must find means to finance

them. Equity and debt represent two broad sources of finance for
a business firm.

Why Equities?
 Long-term wealth creation

Investing in equities for a long term has many advantages. Here is why equity

investments have an edge over simply saving money in your bank account:
 One of the best avenues to fight inflation

Inflation drives up the cost of living and eats away the value of your savings.

Traditional investment avenues like Fixed Deposits, Bonds, etc. have a

limited upside of 8 to 10 %, whereas equities as an asset class have given an

average annual return of about 13 % in the last 10 years. Hence, when it

comes to beating inflation, equities are undoubtedly your best bet

 Source of Long term wealth creation

Our philosophy of "Buy Right Sit Tight " has helped a lot of investors in long

term wealth creation. Investing in good businesses and growth stories at an

early stage provides unlimited upside potential. For example, your

 investment of Rs. 1,000 in the Infosys IPO in 1993, would have fetched you

Rs. 30 Lakhs today. Not participating in growth stories would certainly be an

opportunity missed

 One of the most Liquid investment options

Equities also provide you the flexibility of quickly changing your holding

patterns to suit your requirements and also convert your holdings into cash

instantly. This makes it the most suitable option compared to other asset

classes for investors who are looking for liquidity

Why invest with Motilal ?

At MOSL, equity trading gets easier, more predictable, and more rewarding for the

customers. Whether customers are a long-term value investor or a day trader; a

beginner or a professional investor looking to trade on leverage, it provide access to

various investment and trading products, sound research and advice and secure tools

to help them achieve their goals with ease.

Products
 Cash & Margin Plus products allowing to get the maximum on your
stocks
 Flexibility to trade across all exchanges - BSE, NSE & MCX-SX
  Ability to invest in Stock SIPs in 300+ companies providing benefit of
price averaging
 Option to invest in Exchange Traded Funds to benefit from
diversification and lesser volatility.
 Loan against Shares facility to help the customers buy more stocks by
providing cash or stock collaterals.

Technology
 Secured trading experience across all devices through a single access
(Desktop, Web, Mobile, Tablet, Smartwatch) and dedicated advisory
desk to ensure you never miss an opportunity!
 All platforms integrated with trade-track-review capabilities and in
built research and advice
 Access to MO Trader platform and MO Investor platform crafted
thoughtfully as per the requirement of Trader and Investor
 Fully Integrated Desktop Trading Application with super-fast trade
execution and 1-second rate refresh *.
 Superior Investor Web & Trader Web Platform with simple and quick
order placement capabilities
 Integrated view of your holdings and transactions across all asset
classes with advanced analytics available 24X7 in all platforms
 In built Robo Wealth tool to offer you customized recommendations
on your portfolio backed with our Solid Research.
 Real time tracking with our all new handy smart watch

Research
 Award winning actionable research trusted by over 591 FIIs/DIIs and
over 10,00,000 customers
 Extensive research covering 80 % of market capitalization & 260+
companies across 21 sectors
  Single click access to 30,000+ research reports archive categorized by
theme and frequency
 Dedicated Fundamental and Technical research teams to help you in
worry-free investing
 Daily, weekly, monthly, quarterly and annual reports for timely and
comprehensive coverage of companies & markets
 All of this available across all platforms - Desktop, Web, Mobile &
Tablet

Advice
 Customized advice across all asset classes - Equities, Derivatives,
Commodities, Currencies and Mutual Funds
 Active calls across all time horizons ranging from hours, days, weeks,
months and years
 Wide range of calls and strategies to suit different styles of investing
and risk profiles
 You name it and we have it - Investment Ideas, Delivery Ideas,
Momentum Calls, Quantitative Strategies, Positional Calls & much
more
 Dedicated Relationship Managers and advisory team to provide
timely recommendations (on select a/c 's)
 Integrated view of our advice across all platforms - Desktop, Web,
Mobile & Tablet, Smart Watch

More Reasons to invest with Motilal

 India 's first broker to offer 15 min, 100 % paperless trading and
demat account
 Dedicated customer service team with a 6 hour query resolution TAT
  Attractive customized brokerage plans to suit your needs and risk
appetite
 Bagged 'Best Performing Equity Broker (National) at the CNBC TV18
Financial Advisor Awards ' - four years in a row
 30 years of wealth creation driven by our philosophy of 'Solid
Research, Solid Advice '
 Pan India coverage across 2,200+ locations in over 500+ cities
 Trusted by over 10,00,000 plus customers having Rs. 69,561 Cr. plus
depository assets

Introduction to customer perception

Perception (from the Latin perceptio , percipio) is the process by which an
organism attain awareness or understanding of its environment by
organizing and interpreting sensory information. Today’s world is very fast
and people are forced to run towards their life styles. Plenty of industries
grows very fast among that share market industry is one of the booming
one in the present environment. As individual we come across numerous
product and service every day. Thus, different people hold different
opinions about the same things and events. This is because each person has
a specific way of looking at things. Every individual thus has a “perception”
of the world around him or her. Perception is defined as “the process by
which the individual selects, organizes and interprets stimuli into a
meaningful and coherent picture of the world”. As individual we come
across numerous products and service ever days. Thus, different people
hold different opinions about the same things and events. This is because
each person has a specific way of looking at thing.
Objectives of the study
 To identify the perception of the customers regarding equity
trading.
 To analyze the Balance of relative importance of customer
expectations.
 To compare the customer response to company perceptions.
 To reassess the priorities of company products as per customer
needs.
 To analyze the level of awareness of customers transacting
business through Motilal Oswal.
 To offer suggestion for increasing the levelof awareness of
customers.
 Various services offered by Motilal Oswal.
 To understand the giant market by predicting the customers.
 To learn the world of opportunities.
 Customer friendly firm.

Research Methodology
Research design adopted for this research is “Descriptive Research “. It
includes surveys and fact-finding enquiries of different kinds. The
population is finite and “Simple random sampling method” will be adopted
for selecting samples from the Infinite one. Structured Questionnaire
Conducting Perception of the customers required the preparation of a
detailed questionnaire which could capture all possible areas of their
agreed levels. Prior to preparation of questionnaire I circulated a
questionnaire to all India info line customers regarding the objectives of my
study. The questionnaire included eighteen questions. There were
questions on a 7 point scale, where 1 was the least agreed level and 7 was
the most agreed level. The statistical tool like Multiple Correspondence
Analysis was used to interpreting the data.

Multiple Correspondences Analysis

The data collected from the customers were systematically applied and they
are presented under various headings . They are also arranged in such a
way that a detailed analysis can be made so as to present suitable
interpretations for the same.
Inducing Factors 1