A

GENERAL MANAGEMENT PROJECT

ON

A STUDY ON STOCK BROKER COMPANY MOTILAL OSWAL

IN PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE OF

MASTER OF MANAGEMENT STUDIES (MMS)

(UNDER UNIVERSITY OF MUMBAI)

SUBMITTED BY:

DHIRAJ SINGH

CLASS: MMS FINANCE

ROLL NO: 181011

UNDER THE GUIDANCE OF

PROF. CHRISTINA SIJU

BATCH: 2018-2020

PILLAI INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

NEW PANVEL, NAVI MUMBAI – 410206

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 CERTIFICATE

This is to certify that project titled “A STUDY ON STOCK BROKER COMPANY MOTILAL

OSWAL” is successfully completed by MR. Dhiraj Singh during the IV Semester, in partial

fulfillment of the Master's Degree in Management Studies recognized by the University of

Mumbai for the academic year 2016-2018 through Pillai Institute of Management Studies and

Research, New Panvel. This project work is original and not submitted earlier for the award of

any degree / diploma or associate ship of any other University / Institution.

Name: PROF. CHRISTINA SIJU

Date: (Signature of the guide)

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 DECLARATION
I hereby declare that this Project Report submitted by me to the Pillai Institute of Management
Studies & Research is a bonafied work undertaken by me and it is not submitted to any other
University or Institution for the award of any degree diploma/ certificate or published any time
before.

Name : Dhiraj Singh

Roll No. : 181011 Signature of the student

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 ACKNOWLEDGEMENT

The perfect way to document this project would be to start with acknowledging all those
people who directly or indirectly encouraged, supported me with their value added inputs
without them this project would not have been this better.

I would also like to thanks Dr. Satish K. Nair director of Pillai Institute of Management
Studies and Research, New Panvel and Prof. Chiristina Siju my faculty guide without
whom this project report could not be successfully completed.

Finally I would like to owe my sincere appreciation to all the Employees of the organization
who provided a friendly environment and supported throughout my project.

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 TABLE OF CONTENT

SR.N TITLE PAGE

O NO

1. Chapter no 1
Industry analysis
1.1 Introduction to stock broking business
1.2 History of the stock broking industry 7-17
1.3 PESTEL Analysis
1.4 Porter five forces Analysis

2. Chapter no 2
Company analysis
2.1 Introduction
2.2 History
2.3 Vision & Mission
18-27
2.4 SWOT Analysis
2.5 7S Model
2.6 BCG Matrix
2.7 ANSOFF Matrix

3. Objective 28

4. Limitations 28

5. Research & Methodology 28-29

6. Data analysis and interpretation 30-41

7. Result and discussion 42-43

7. Recommendation & Suggestion 44

8. Conclusion 45

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9. Bibliography 46

10. Annexures and Questionnaire 47-48

CHAPTER NO: 1

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 INDUSTRY ANALYSIS

1.1 INTRODUCTION TO STOCK BROKING BUSINESS

Stock exchanges to some extent play an important role as indicators, reflecting the
performance of the country’s economic state of health. Stock market is a place where
securities are bought and sold transparency in this sector, constant efforts are being made
and to a certain extent improvements have been made. . It is exposed to a high degree of
volatility; prices fluctuate within minutes and are determined by the demand and supply of
stocks at a given time. Stock brokers are the ones who buy and sell securities on behalf of
individuals and institutions for some commission. The Securities and Exchange Board of
India (SEBI) is the authorized body, which regulates the operations of stock exchanges,
banks and other financial institutions. The past performances in the capital markets
especially the securities scam by Harshad Mehta has led to tightening of the operations by
SEBI. In addition the international trading and investment exposure has made it imperative
to better operational efficiency. With the view to improve, discipline and bring greater

1. Stockbrokers

A broker is an intermediary who arranges to buy and sell securities on behalf of the clients
(the buyer and the seller). According to Rule 2 of SEBI Rules 1992, a stockbroker means a
member of a recognized stock exchange or stock exchanges of which he or she is admitted
as a member. Stock market transactions are carried out on computerized systems and deals
are recorded for inspection at any time.

• Stock brokers independently may deal with the following: Operations for private clients
and institutional clients.

Some brokers act only as dealers (client investment managers) while others are principally
advisors (equity sales advisors).

Some brokers provide services for portfolio management and constantly review
investments in the light of trends and developments in the market.

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Financial services brokers specialize in bond issues, handling institutional accounts or
mutual funds.

In large firms, stock brokers work in the following areas:

Deal with, and advise, smaller firms Securities brokers work on behalf of firms with
private clients to understand the investment plans and objectives of the client i.e.
expectation for returns and interest in risk taking. They are representatives of brokerage
firms and execute orders to buy and sell securities. They are equipped with both knowledge
and experience to give advice on the sale and purchase of scrips and management of
financial investments. Advise for investments. Carry out market transactions. The
financial services in firms’ concerns pre-sales, sales and after sales services. These firms
have departments to manage the sales and trading for the owners of securities, investment
banking for firms and the government for the issue of securities and capital markets which
form an essential arm for trading activities.

As Securities Analysts – Brokers may be required to advise on floatation of shares in

conjunction with the merchant banks. They are expected to have knowledge of the market
to be able to anticipate certain trends and make predictions.

As Investment Analysts – The Investment Analyst provides accurate information to

investors and fund managers. There are two major roles as an analyst.

Institutional Analyst – The process of analysis involves making predictions of the

company’s future based on its past and present financial status.

Stock Broking Analyst – Investment Analysts work with firms which provide advice on
buying and selling of shares and also with those firms which have funds to be managed.
Fund managers in merchant banks, insurance and pension funds are involved with huge
investments made by millions of investors. The funds are eventually disbursed as insurance
claims, pensions etc. They are specialized financial advisors who provide advise on the how
and where of details concerning investment. Investment Analysts study the company’s
annual report; visit the organization, interview senior executives to assess statistical

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information, profits and import and export figures for the industry as a whole. Institutional
analysis involves studying the entire sector.

2. Transaction cycle

A person holding assets (Securities/Funds), either to meet his liquidity needs or to reshuffle his
holdings in response to changes in his perception about risk and return of the assets, decides to
buy or sell the securities. He selects a broker and instructs him to place buy/sell order on an
exchange. The order is converted to a trade as soon as it finds a matching sell/buy order. At the
end of the trade cycle, the trades are netted to determine the obligations of the trading members’
securities/funds as per settlement cycle. Buyer/seller delivers funds/securities and receives

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securities/funds and acquires ownership of the securities. A security transaction cycle is
presented above.
MAJOR PLAYERS IN THE INDUSTRY

1. ANGEL BROKING LIMITED

2. S S KANTILAL ISHWARLAL SECURITIES PVT LTD.

3. ICICI WEB TRADE LTD. (www.icicidirect.com)

4. 5 PAISA.COM (www.5paisa.com)

5. KOTAK SECURITIES LTD. (www.kotakstreet.com)

6. INDIABULLS (www.indiabulls.com)

7. MOTILAL OSWAL SECURITIES LTD.

8. HDFC SECURITIES LTD. (www.hdfcsec.com)

9. UTI SECURITIES LTD.

10. IDBI CAPITAL MARKET SERIVICES LTD.

11. REFCO SIFY SECURITIES PVT LTD.

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1.2 HISTORY OF THE STOCK BROKING INDUSTRY

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

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1.3 PESTEL Analysis on Brokerage Firms:

A PESTEL analysis is a framework or tool used by marketers to analyze and monitor the macro-
environmental (external marketing environment) factors that have an impact on an organization.
The result of which is used to identify threats and weaknesses which is used in a SWOT
analysis.

PESTEL stands for:

 P – Political

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 E – Economic
 S – Social
 T – Technological
 E – Environmental
 L – Legal

PESTEL should be repeated at regular stages (6 monthly minimum) to identify changes in

the macro environment. Organizations that successfully monitor and respond to changes in
the macro-environment are able to differentiate from the competition and create a
competitive advantage.

1. Political:

Post GST in 2017 the brokerage firms had asked government to reduce tax from 18% to 12% as
the taxation led to inflate the cost of transaction. Brokerage firms also faced losses over
differences in the application of GST laws to trading members (brokers) and clearing members
(banks) of stock exchanges. Budget 2019 amendment also had proposed to make it mandatory
for individuals and HUF's (Hindu Undivided Family) to deduct TDS (Tax Deduction at Source)
from high value payments. As per this provision, individuals and HUF's whose accounts were
not compulsorily required to be audited for tax purposes, would have to deduct tax at source @
5% from payments exceeding Rs. 50 lakh.

2. Economic:
The financial industry faced numerous stock market crashes and slow down due to various
reasons like the crash of 2018 due to the Finance Minister's proposal in the budget speech to
introduce a 10% long term capital gains tax on equities shares sold after 12 months. The Market
crash of 2016 because of demonetization by Modi government.

3. Socio- Cultural:

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Investors today have become more aware and conscious about their investment plans. The old
financial planning's of only investing in traditional insurance policies and bank deposits are
gone. Investors today are ready to invest in IPO's, Mutual Funds as well as crypto-currencies.
The young savers today are better informed and they don't make decisions irrationally based on
family pressure or any other peer influence.
4. Technological:
Indian stock markets have changed widely because of the various technological changes it went
through over the years. From conducting trades under banyan trees to moving onto Dalal street
and then entering into Electronic trading (BOLT). The internet and smart-phone revolution
further changed the way of people participation in stock markets. The technologies made the
investors more self-dependent. Also Smartphone based applications brought markets to the
fingertips of the traders and made the participation affordable for all.

5. Environmental:
Various climatic changes that affect the agriculture indirectly has a greater impact on the
financial sector immensely. Conditions like drought, floods etc. which leads to huge lose of
agricultural goods like rice , wheat , etc., effects the export and import trading thereby causing
volatility in the derivatives market. Even the introduction of DEMAT account has led to less
paperwork to save environment. Also the budget 2019, showcased more encouragement towards
E-Cars, this will lead to more and more investors investing into electronic vehicles and
companies who are into such production. This will be the step towards protecting the Mother
Nature.

6. Legal & Regulatory:

The financial industry in regulated by regulators like RBI, SEBI, IRDA, etc. These regulators
makes laws which needs to be fulfilled or strictly followed by their respective markets. Like the
SEBI's introduction to dematerialization of shares in 1996 led to prevention of delay in
transactions, thefts, frauds like issue of fake share certificates, etc. Bombay Stock Exchange
(BSE) introduced weekly futures and options contracts on Sensex 50 index from October 26,
2018. The Government of India has taken various steps to deepen the reforms in the capital

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markets, including simplification of the Initial Public Offer (IPO) process which allows qualified
foreign investors (QFIs) to access the Indian bond markets.

1.4 PORTER'S FIVE FORCES ANALYSIS :

SUPP

LIERS:

 NSDL & CSDL are the regulatory bodies for Depository Participants like SSKI, SHCIL,
ICICIdirect.com, etc. Also these regulatory bodies have got an upper hand as the bargaining
power stock broking houses like SSKI, etc. would be less.
 NSE & BSE are playgrounds where common an investor trade through stock broking
houses, for which they have to take permission from NSE/BSE.
 NSE & BSE are under the purview of SEBI, that’s why stock broking houses like SSKI,
have low bargaining power. But here there is one advantage that NSE/BSE have i.e. they
cannot go for forward integration.
 MCX & NCDEX are stock exchanges which trade in commodities and derivatives. Here
again stock broking houses have to follow rules and regulation of the same. Web maintainers

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 are companies which maintain web sites & technical aspects of the same. Here stock broking
houses like SSKI can have more bargaining power due to Tuff competition among web
maintaining companies.
 Web maintainers are companies who make and maintain software’s for stock broking
houses. If say for example stock broking houses switches over to other web maintainers then
that company cannot understand the mechanisms of software’s. So it is quite high switching
cost.

BUYERS:
 There are various types of investors who trade through stock broking houses like SSKI, which
includes investors like small investors, medium net worth investors, business partners,
institutional investors and mutual fund companies.
 Here the bargaining power of stock broking houses depends on how big the investor is.
 So here we can say that bargaining power of stock broking houses is high in case of small
investors &HUF.
 While the bargaining power is moderate in case of HNI (High New Worth Investors)/ MNI’s
(Medium Net Worth Investors) and business partners.
 But the in case of mutual fund companies and institutional investors bargaining power is less.
 There is competitive buzz in stock broking industry; competitors are offering low brokerage
and best services with added feature. So switching cost is pretty much less. So the buyer can
easily switch over to competitors product

ENTRY BARRIERS
HUGE CAPITAL: - Capital is necessary not only for fixed facilities but also for customer’s
credit and absorbing startup losses. To start a stock broking house, one needs huge capital for
technology up gradation and skilled manpower
TECHNOLOGY: - Technology for stock broking houses is life saving device. Stock broking
requires huge capital to make their products user friendly, which in turn requires capital to
employ skilled manpower. Thus, technology could be one of the entry barriers.
Regulatory Constraints: - Obtaining a license is a tedious job for a stock broking house. It
should comply with the regulation of the governing bodies like SEBI, NSDL, etc. For a stock

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broking houses to plunge into the stock broking industry, it needs to have some kind of financial
background and expertise. Thus, regulators constraints could be an entry barrier.
Experience curve: - The core competency in this industry is the services which are provided to
the end-users and the research based activities which includes “TIPS”, fundamental as well as
technical script analysis. Also the most important thing which helps already established firms
is-“TRUST” which people would be having on firms like SSKI , Angel, Motilal Oswal, etc. this
is very difficult for new companies to imitate.
Network: - The “Reach” to the customer is the key factor in the industry. The network of the
companies like Angel, Motilal Oswal, Angel Broking, and ICICI is very efficient and spreaded
all over India. It will take time for a new entrant to establish such a huge network (e.g. Marwadi),
which say that,” Network can come up as most difficult entry barrier to overcome.”
Expected Retaliation: - Whenever a new player comes in the industry, the old companies have
an option to reduce the prices of their product. This kind of practice is called expected
Retaliation which is also possible in this industry in terms of less brokerage rates and reduced
account opening charges. E.g. before the entry of so many mew companies, Angel Broking was
having two types of accounts viz. speed trade speed trade plus, which were costing 1000 & 1500
account opening charges respectively. But due to competition, they have come up with only one
account i.e. speed trade plus with the account charges of Rs.1000.

COMPETITORS:
 The company is facing the competition from local as well as national level players. The local
players provide facility for off-line trading while the national players like ICICIdirect.com and
Kotakstreet.com, HDFC Security provide online trading services.
 There are also other big names like Indiabulls, Motilal Oswal, 5paisa and Marwadi encircles
the company form both the sides by providing online and off-line trading with competitive
services

SUBSTITUTES:
 Here substitutes are such instruments which can be used instead of investing in shares.
 The instruments like Bank FD, insurance, mutual funds are the substitutes.
 If the use of this instruments increase this may be disadvantage for the stock broking houses.

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 The companies and banks which are having these instruments can plunge into this industry.

CHAPTER NO: 2
COMPANY ANALYSIS
2.1 INTRODUCTION
Motilal Oswal Securities is a leading research and advisory based stock broking house of India,
with a dominant position in both institutional and retail broking. Asiamoney Brokers Poll 2005
has ranked us the best Indian brokerage firm. There are various other categories where we have
been rated number one – most independent research, sales and service etc by the Brokers Poll. In
March 2006, AQ Research, a firm that analyses the accuracy of a broker’s research call, declared
Motilal Oswal Securities the best research house for Indian stocks. Motilal Oswal Securities has
witnessed rapid organic growth due to favorable market conditions as well as efforts put in by
the company itself. FY05 and FY06 saw the company grow inorganically through acquisition of
three significant regional broking firms from Andhra Pradesh, Karnataka and Kerala. Over a
period of time many more regional broking firms may be acquired to gain solid footing in
various regions of India. The company was founded in 1987 as a small sub-broking unit, with
just two people running the show. Focus on customer-first-attitude, ethical and transparent
business practices, respect for professionalism, research-based value investing and
implementation of cutting-edge technology have enabled us to blossom into an almost two
thousand-member team. Our institutional business unit has relationships with several leading
foreign institutional investors (FIIs) in the US, UK, Hong Kong and Singapore. In a recent media
report we were rated as one of the top-10 brokers in terms of business transacted for FIIs. The
retail business unit provides equity investment solutions to more than 1,61,000 investors through
1017 outlets spanning 375 cities and 24 states. We provide advice-based broking (equities and
derivatives), portfolio management services (PMS), e-Broking, depository services, commodities
trading, IPO and mutual fund investment advisory services. Its Value PMS Scheme gave a
402.74 % return since inception ( Feb 2003) , ( Sensex is 270.69% & Nifty is 245.11%). The
perfomance of Value Hedging since inception ( Oct 2005) is 32.76%. Such an outstanding
performance can be only attributed to our single-minded focus on research-based value
investing. Motilal Oswal Securities invests almost 5-10% of its revenue on equity research and
hires and trains the best resources to become advisors to its valued clients. Our unique Wealth

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Creation Study, authored by Mr Raamdeo Agrawal, Managing Director, is now in its eleventh
year. Investors keenly await this annual study for the wealth of information it has on how
companies created wealth during the preceding five years.
Mr. Motilal Oswal is the promoter of Motilal Oswal Securities Ltd. He is an member of
Institute of Chartered Accountants of India and started the business along with the copromoter
Mr. Raamdeo Agarwal in 1987. Business Administration is his forte, Honesty, transparency and
client goodwill form the core of his business practice. “Service is required in everything, in
research, in execution and in settlement. It is going to be the key to survival. If you give good
service and value to your clients, it will translate into good business.” This has been a strong
belief of Mr. Motilal Oswal and he has not only practiced it himself but also made efforts to
inculcate similar values in the employees of the organization. He had been elected as a Director
of BSE and joined its governing board in 1998. He is currently a member of various committees
of CDSIL and SEBI.
Mr. Raamdeo Agrawal is the co-promoter of Motilal Oswal Securities Ltd. A member of the
Institute of Chartered Accountants of India & an equity research stalwart, he is the man behind
the strong research capability at MOSt. He is respected by all in the research and broking
industry for his valuable insights on issues related to equity research. His firm belief in “Value-
Investing”, as practiced by the legendary Warren Buffett and Charlie Munger, forms the core of
MOSt investment philosophy.
2.2 HISTORY:
The story of Most 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
viz '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.

Motilal Oswal Financial Services Ltd (MOFSL) was set up by Motilal Oswal and Raamdeo
Agarwal as a broking house in 1987. 

The company entered into investment banking in 2005, followed by private equity fund in 2006.

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On February 2006, Motilal Oswal Financial Services Ltd. acquired Peninsular Capital Markets,
a Cochin, Kerala based broking company for Rs. 35 crore. The company tied up with State Bank
of India in 2006 , Punjab National Bank in 2007 and Axis Bank in 2013 to offer online trading to
its customers.

On January 2010, Motilal Oswal Financial Services Ltd. set up Mutual fund business named as
Motilal Oswal Asset Management Company (MOAMC).

On 2013, Motilal Oswal Financial Services Ltd. laid foundation of Aspire Home Finance
Corporation Limited (AHFCL). The company offers loans for home, construction, composite,
improvement, and extension in India.

2.3 VISSION & MISSION

VISSION:

To provide opportunities for children and their families to move from poverty and dependence to
self-reliance

MISSION:

Invest all resources and energies in delivering high quality Products and services through
Innovation, capability, Enhancement & people Initiatives, based on the foundation of our core
values

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 2.4 SWOT Analysis.

Strengths:
1. Wide range of financial products and focus on premium traders
2.  Emphasis is on efficient execution of trades
3. Strong private equity operations
4. Have over 1500 offices in India
5. Financial products and services such as Wealth Management, Broking & Distribution,
Commodity Broking, Portfolio Management Services, Institutional Equities, Private Equity,
Investment Banking Service.

Weakness:
1.  Less penetration in developing cities
2.  Lack of advertising causes low awareness amongst investors

Opportunities:

1. Growing rural market

2. Earning Urban Youth looking for investments

Threats:

1.  Stringent Economic measures by Government and RBI

2.  Entry of foreign finance firms in Indian Market

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2.5 7'S Model of Motilal Oswal:

The McKinsey 7S Framework is a management model developed by business

consultants Robert H. Waterman, Jr. and Tom Peters former consultants at McKinsey &
Company. The framework can be used to examine the likely effects of future changes in the
organization, or to align departments and processes during a merger or acquisition.
You can also apply the McKinsey 7-S model to elements of a team or a project. The three "hard"
elements are strategy, structures such as organization charts and reporting lines, and systems
such as formal processes and IT systems. These are relatively easy to identify, and management
can influence them directly. The four "soft" elements, on the other hand, can be harder to
describe, less tangible, and more influenced by your company culture. But they're just as
important as the hard elements if the organization is going to be successful.
We can use the 7-S model to help analyze your current situation (Point A in the worksheet), your
proposed future situation (Point B in the worksheet), and to identify gaps and inconsistencies
between them.

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Structure:
Motilal Oswal is flexible in terms of its structure. It has a simple working structure wherein
temporary changes can be made easily for carrying out strategic task without any confusions.
Strategy:
In order to compete in the market the company is implementing strategies to capture more
customers and clients in the market by pitching them through trainees and offering them various
services like Dial-n-trade, Sip's,etc.
Systems:
Motilal Oswal has its own research team which regularly publishes investment advice, stock tips,
quarterly company result analysis and news alerts to its customers through email, sms and on
Motilal Oswal website.
Style:
Motilal Oswal has a simple organizational structure which is not rigid. Employees are placed
under teams under a mentor/leader who guide them and train them on how to achieve their
targets on a monthly basis.
Staff:

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Motilal Oswal believes in the motto that it's all about their team and considers its employees as
the most important assets and therefore they have HR teams an mentors to carefully train,
motivate and ensure that the new recruits are well settled in their respective teams and get all the
help they need at the right time.
Skills:
Skills refers to the competitive advantage of a company through which they can prove
themselves better than their competitors. Motilal Oswal is known for it's direct approach to it's
customers and also for their research papers and research analyst. People who are active
participants in the share market join Motilal Oswal only for their research papers and analysis of
the share market.
Subordinate Goals:
Motilal Oswal strongly believes in customer satisfaction and pays attention to their customer
complaints efficiently. They believe in giving the maximum of services what they have to fulfill
their customer requirements.

2.6BCG Matrix:

BCG matrix is a framework created by Boston Consulting Group to evaluate the strategic
position of the business brand portfolio and its potential . BCG Matrix or growth-share
matrix is a corporate planning tool which uses relative market share and industry growth rate
factors to evaluate the potential of business brand portfolio and suggest further investment
strategies. The matrix is designed to help with long-term strategic planning, to help a
business consider growth opportunities by reviewing its portfolio of products to decide
where to invest, to discontinue or develop products. he Matrix is divided into 4 quadrants
based on an analysis of market growth and relative market share. Following is the matrix
with respect to products of Motilal Oswal.

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STAR:
Stars operate in high growth industries and maintain high market share. Stars are both cash
generators and cash users. They are the primary units in which the company should invest its
money, because stars are expected to become cash cows and generate positive cash flows. In
Motilal Oswal the products and services highest market share and cash generators are PMs,
Investment banking and Private Equity.

Cow:
Cow is where a company has high market share in a slow-growing industry. These units typically
generate cash in excess of the amount of cash needed to maintain the business. They are regarded
as staid and boring, in a "mature" market, yet corporations value owning them due to their cash-
generating qualities. They are to be "milked" continuously with as little investment as possible,

25
since such investment would be wasted in an industry with low growth Product are Offline
Broking

DOG:
Dog is where a company has high market share in a slow-growing industry. These units typically
generate cash in excess of the amount of cash needed to maintain the business. They are regarded
as staid and boring, in a "mature" market, yet corporations value owning them due to their cash-
generating qualities. In Motilal Oswal Dog product is Insurance

Question Mark:
Here businesses operating with a low market share in a high-growth market. They are a starting
point for most businesses. Question marks have a potential to gain market share and become
stars, and eventually cash cows when market growth slows. If question marks do not succeed in
becoming a market leader, then after perhaps years of cash consumption, they will degenerate
into dogs when market growth declines. Question marks must be analyzed carefully in order to
determine whether they are worth the investment required to grow market share. In Motilal
Oswal Question Mark product is MF, AMC and Online Broking.

2.7 ANSOFF MATRIX

The Ansoff Matrix is a strategic planning tool that provides a framework to help executives,

senior managers, and marketers devise strategies for future growth .This matrix proposes that
product marketing strategy is a joint work of four growth areas: market penetration, market
development, product development, and diversification. Below is the classification of Motilal
Oswal products and services with respect to this matrix.

Increasing Risk

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MARKETS EXISTING PRODUCTS NEW PRODUCTS
EXISTING

In
Market Penetration Market
cr
Development
ea
NEW MARKETS

Product si
Development Diversification
ng

Market Penetration:
Motilal Oswal launched it's first online trading platform in 2000 and started opening
Motilal Oswal demat account's for trading thus entering the wave of digitization in 2002. It
then started creating brand awareness through campaigns like Motilal Oswal Ignite to
create awareness among people about online trading. It further used social media platforms
like e-mails and print media like newspapers to gain further penetration in the market.  

Product Development:
Online Trading are platforms of Motilal Oswal enhanced for carrying out the transactions
of clients in a more effective way. Speed Trade is an online platform for active traders so
that they can execute their trade online on their personal computers. Whereas, trade tiger is

27
 similar to speed tiger along with additional features of executing trades in derivative
markets as well. It also introduced Motilal Oswal Mini a mobile based application which
can be used even on 2G connection.

Market Development:
Motilal Oswal has now entered the international industry by opening it's branches in UAE
and Oman as well it also provides services for it's NRI Clients. It provides products like
Equity trading, Derivatives trading, IPO subscription, Mutual Fund investment, PMS to it's
NRI clients. This has led to target the clients who are in foreign countries as well.

Diversification:
Motilal Oswal offers it's products and services as per customer requirements .It offers
services like SIP's, Loan against securities, Margin Funding, Dial-n-trade ,etc to cater to
the needs of it's large customers according to their preference and risk taking abilities.
Motilal Oswal has thus diversified its customer services to a great extent.

OBJECTIVES
 To study the facilities provided by the Motilal Oswal.
 To analyse the products, services and technology of the Motilal Oswal.
 To study the various benefits available to the advisor in an organization.

LIMITATIONS
 The analysis could not be made that comprehensive due to time constraints.
 The data collected is Secondary data.
 Personal Bias: People may have personal bias towards particular investment option so
they may not give correct information and due to which conclusion may be derived.
 Time Limit: The time duration of the research is short that’s why the information is not
covered fully.

28
  Sample Size: The last limitation is Sample size, taken by us is of 50 only; due to which
we may not get the proper results.

Research and Methodology

SECONDARY DATA

When data are collected and compelled from the published nature or any other’s primary data is
called secondary data. So far as our research is concerned, we have not collected any information
from any sources. So, we have not used secondary data for our research

PRIMARY DATA

The data which is collected directly from the respondent to the base of knowledge and belief of
such research are called primary data.

Types of Research design:

Historical Research design- The purpose is to collect verify synthesize evidence to establish
facts that defend or refute your hypothesis. It uses primary sources, secondary sources and lots of
qualitative data sources such as logs, diaries, official responds, reports etc.

Case and Field Research Design- Also called ethnographic research, it uses direct observation
to give a complete snapshot of a case that is being studied. It is useful when not much is known
about a phenomenon. Uses few subject.

Descriptive or Survey Research Design: It attempts to describe and explain conditions of the
present by using many subject and questionnaire’s to fully describe a phenomenon. Survey
research design/ Survey methodology is one of the most popular for dissertation research. There
are many advantages.

Sampling:

29
Sampling Procedure: The sample is selected in a random way, irrespective of them being
investors or not or availing services or not. It was collected through personal visits to the known
person, by formal and informal talks and through filling up the questionnaire prepared.

Sample Size: The sample size of my project is limited to 50 only.

Sample design: Data has been presented with the help of pie charts.

DATA ANALYSIS AND INTERPRETATION

1. Gender Ratio:
Male ( ) Female ( )

30
 Gender

30%

Male
Female

70%

Interpretation:
In the above diagram I find that from the whole sample size, 70% Male have respond and
30% are Female Respond.

2. AGE GROUP

PARTICULARS NO.OF PERSONS

18-25 22

31
 25-35 18
Above 35 10

Chart Title

25

20

15

10

0
AGE 18-25 25-35 ABOVE 35

Interpretation:
In the above diagram I find that from the whole sample size, in the age group of 18-25
number of respond is 22, age group of 25-35 is 18 and above 35 is 10 people have
responded.

3. Are you employed?

Yes ( ) No ( )

32
 Percentage of Employed person

46%
54%

yes no

Interpretation:

In the above diagram, the whole sample size 54% of the people are employed person, while
46% of the people are unemployed person. Out 46% person some are students and some are
businessman included.

4. Have you invested / are you interested to invest in share trading?

Yes ( ) No ( )

33
 Percentage of Person interested / invested

34%
Yes
No

66%

Interpretation:
In the above pie chart the total sample size 66% of them said yes they are interested to
invest money in the share market while other 34% are not interested to invest money in
share market because maybe already engaged in banking and insurance sector to invest
money or may they are not employed.

5. Do you have Demat Account?

Yes ( ) No ( )

34
 Person having Demat account

30%

Yes
No

70%

Interpretation:

In the above pie chart, 70% of the person having their Demat account in any stock
broking company while 30% are those person who have no Demat account due to lack
of knowledge about share trading business or lack of affordable money to invest in the
share market.

6. In which company you have a Demat Account?

Motilal Oswal ( ) Reliance Money ( )

35
 Zerodha ( ) Trade Tiger ( )
Angle Broking ( ) Other ( )

Number of person having demat account

other
10% Motilal Oswal
18%

Angle Broking
16%
Reliance money
12%

Trade Tiger
20%
Zerodha
24%

Interpretation:
In the above diagram out of 50 people sample size 12 no of people having their demat
account in Zerodha while 10 number of person having their demat account with Trade
Tiger. Person having demat account with Motilal oswal are 9 while 8 number of person
having their account in Angle broking and 6 number of person in reliance money and 5
number of person with other broking company.

7. What is the most important reason for not investing in share trading?
Lack of knowledge about share trading activities ( )
Enjoy investing in others ( )

36
 Its benefits are not enough to drive you for investment ( )

Reason for not investing in share market

28% Lack of knowledge about share

trading activities
44% Enjoy investing in others
Its benefits are not enough to
drive you for investment

28%

Interpretation:
From the above mentioned diagram able to understand that 44% of the people are
willing to enjoy investing in other like Life insurance, Mutual Fund service, IPO etc.
Apart from this 28% of the people do not prefer share trading investment because of
they perceive that the benefit are not enough to drive you for investment and rest 28% of
the customer having lack of perfect Knowledge about share trading activites.

8. Do you Like Motilal oswal brokerage Demat account?

Yes ( ) No ( )

37
 People view of interest for Motilal Oswal Demat account

34%

Yes
No

66%

Interpretation:
In the above diagram 66% of people like Motilal Oswal demat account as per their own
perception while other 34% of the existing people prefer other companies demat account
as per there view of interest.

9. What is your opinion regarding the stock broking services provided by Motilal
Oswal?
Good ( ) Average ( ) Poor ( ) Excellent ( )

38
 People opinion regrading stock broking service by Motilal Oswal

6%
14%

Good
46%
Average
Poor
Excellent

34%

Interpretation:
As per the above figure we see that out of 100 percent 46% of the people are in favour
of motilal oswal broking service and they categories it service facility in good range
while 34% categories motilal oswal broking service in an average. Only 14% of the
people ranked motilal oswal facility in poor range and rest 6% said that provide
excellent stock broking service.

10. How much you are in supporting of demat account AMC charge applied by Motilal
Oswal?
Good ( ) Average ( ) Poor ( ) Excellent ( )

39
 Percentage of customer opinion regarding AMC Charge

24%

Good
44%
Average
Poor
Excellent

32%

Interpretation:
As per the above diagram most of the people have given poor ranking on the Demat
account AMC charge applied by Motilal Oswal because it is much higher than the
competitors. Approximate 44% of the people opined poor support regarding AMC
charge facilitated by Motilala Oswal apart from it 32% of the people have ranked
Motilal Oswal average regarding AMC charges and 24% said that Motilal Oswal demat
account AMC is some Circumstances.

11. What is your opinion relating to the rate of interest of margin funding facility of
Motilal Oswal?

40
 Good ( ) Average ( ) Poor ( ) Excellent ( )

Percentage of customer opinion regarding margin funding facility

6%
4%

Good
46%
Average
Poor
44% Excellent

Interpretation:
In the above figure see that 46% of people said that the Motilal Oswal is good to provide
margin funding facility while 44% of the people has given average to Motilal Oswal
regarding margin funding facility. Only 4% of the people ranked poor on the basis of
this facility provided.

12. How much you are in favor of demat account opening charge for share trading
purpose by Motilal Oswal?

41
Good ( ) Average ( ) Poor ( ) Excellent ( )

Percentage of people opinion regarding demat account opening charge

26%
Good
Average
Poor
60% Excellent
14%

Interpretation:
In the above figure mentioned that approximate 60% of the people are dissatisfied
regarding charged applied during opening demat account and they ranked Motilal Oswal
as poor on the basis of charges applied for opening demat account. A little portion of the
people ranked Motilal Oswal good as 26% and 14% of the people have given average
ranking as compared to their competitor.

RESULT AND DISCUSSION

42
In online trading “Motilal Oswal” have mainly competition with Reliance money, Zerodha,
Trade Tiger, angle broking and other Motilal Oswal comes at no. 4 retail broker. It has an
advantage of being in this industry for more than 3 decades. It has launched its website in 1500
and was among the third player in the online share trading. The “Motilal Oswal” has decided to
spend its advertisement budget through four media i.e. Television, Print, Web and Outlets. From
the above analysis we can point out some points:-

1. Motilal oswal account opening charges are little higher than other competitors. Motilal oswal
is less flexible to cut down its account opening charges on the some of the brokers are offering
free account opening to High Net Worth customers.

2. The charges of Demat account are reasonable at 300 p.a. but Zerodha are offering pool
account with no Annual Maintenance charges.

3. Motilal oswal provides trading in NSE, BSE and Derivatives. It also launched online Mutual
Funds & Online IPO Bidding. Arbitrage facility is not available to customers.

4. Motilal oswal is the only one that does not have any Demat transaction charges either on
buying or selling.

5. Unlimited toll free calls service is not provided to customer in Motilal Oswal

6. IPO Online service is better provided in Motilal oswal as compared to others.

7. Motilal oswal is only broker in which no margin needs to keep.

8. In brokerage, Zerodha have an edge on others with lowest brokerage .25% on delivery and .
05% on intraday

9. For better service providing Motilal oswal should have to increase the number of terminals so
that maximum no of transaction can be executed in a short span of time and thus it would help in
increasing the customer satisfaction.

10. Due to higher AMC charges and demat account opening charges most of the customers are
allowed to choose another companies rather than Motilal oswal it is necessary for the company

43
to evaluate market condition and based on that take appropriate step in order to attract the
potential customer through providing low charges for opening of demat account.

11. If charges can‘t be reduced because of costs involved, make the services customized, so that
services are provided to only those customers who are willing to pay the price for services they
are getting and let the other customers enjoy costs benefits without getting services.

To sum up, we can say that computerization and automation are not to be avoided. Technology
has been able to make the stock markets accessible to every individual. It has also led to positive
developments in terms of reduced costs and fewer errors. But, as some experiences have
indicated, IT cannot be applied as a panacea for all problems. Regulation and knowledge
dissemination are still important. The use of technology should be preceded by a detailed study
and assessment of all other alternatives. The key to successful use to technology is the
appreciation of its constraints.

44
 Recommendations and Suggestion

1. Try to reduce cost, so that benefits can be passed on to customers keep on telling that it is

difficult to reduce cost, because of services we provide. But the fact is, India being a

price sensitive market; people at times go for monetary benefits rather than for long-term

non- monetary benefits.

2. If charges can’t be reduced because of costs involved, make the services customized, so

that services are provided to only those customers other customers enjoy costs benefits

without getting services.

3. Concept of margin funding should be introduced, as more and more people are asking for

it.

4. Motilal Oswal should contact with their clients regularly for knowing the problems faced

by them. This will help Motilal Oswal in providing best services to customers. This will

result in additional customer base by getting further references from satisfied clients.

5. To launch slab wise brokerage structure as Motilal Oswal has fixed brokerage structure,

which cannot be negotiated. But other players in the market offer launch slab wise

brokerage structure, which motivate customers to increase to their volume

45
 Conclusion

Motilal Oswal, one of the leading stock broking companies is able to perform well in the

market. It is trying to extend its customer base through attracting the customers. It is also

trying to give the best to the customers so that they can have a trust in the company. It

has many new technologies such as the online trading facility, which helps the clients to

access the market themselves. Its research team is also analyzing all the day to day

activities, so that proper and right news can be provided to the customers. The efficient

Relationship managers try to provide efficient services to its clients so that they can

build a trust and a mutual relation with them, which will help them to get a good

customer reference. But it also has to work on many grounds. The research news

provided each time is not correct for which they will have to have a keen eye on every

step of the market and provide all the news as soon as possible. With regard to the online

trading it also has to work for providing efficient and speedy software which is able to

tell them about every change happening as soon as possible. The stock market volatility

cannot be predicted at any point of time so it is essential for the customers to know that

they have to invest at a good time and come out by making good returns. The client’s

queries should be resolved as fast as possible. The individuals should be educated about

the market so that they do not hesitate in entering in the market. They should be told

about the correct time to enter and get out of the market. The market do not work on the

fundamentals especially, the Indian market, so it is really important that the uneducated

clients should be taken care of. The clients should be told about the importance of demat

46
 account as it can be used for filling the returns also. These benefits should be told to

them and should be encouraged to open demat accounts.

Bibliography

Books

 Kothari C.R., Research Methodology, New Delhi, Vikas Publishing House pvt.Ltd. 1978

 Pathak Bharti v Indian Financial System,Delhi,Person Education(Singapore) pvt.Ltd.

Website

1 www.motilaloswal.in

2 www.economictimes.com

2 www.nseindia.com

3 www.bseindia.com

4 www.moneycontrol.com

47
 ANNEXURES AND QUESTIONNARIE

1. Gender :
Male ( ) Female ( )
2. AGE GROUP
18-25 ( )
25-35 ( )
Above 35 ( )
3. Are you employed?
Yes ( ) No ( )
4. Have you invested / are you interested to invest in share trading?
Yes ( ) No ( )
5. Do you have Demat Account?
Yes ( ) No ( )
6. In which company you have a Demat Account?
Motilal Oswal ( ) Reliance Money ( )
Zerodha ( ) Trade Tiger ( )
Angle Broking ( ) Other ( )
7. What is the most important reason for not investing in share trading?
Lack of knowledge about share trading activities ( )
Enjoy investing in others ( )
Its benefits are not enough to drive you for investment ( )
8. Do you Like Motilal oswal brokerage Demat account?
Yes ( ) No ( )
9. What is your opinion regarding the stock broking services provided by Motilal
Oswal?
Good ( ) Average ( ) Poor ( ) Excellent ( )
10. How much you are in supporting of demat account AMC charge applied by Motilal
Oswal?

48
 Good ( ) Average ( ) Poor ( ) Excellent ( )

11. What is your opinion relating to the rate of interest of margin funding facility of
Motilal Oswal?
Good ( ) Average ( ) Poor ( ) Excellent ( )
12. How much you are in favor of demat account opening charge for share trading
purpose by Motilal Oswal?
Good ( ) Average ( ) Poor ( ) Excellent ( )

49