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Table Of Contents
Sr.
No TopicPage
No.
1
About Sushil Finance Pvt. Ltd1
2
About Chirag Share and Stock broking Pvt. Ltd3
3
Vision, Mission and Objectives4
4
Products and Services of Chirag Share5
5
Company Hierarchy System8
6
Various Departments within the company10
7
Human Resource Management13
8Marketing Management
17
9
Production Management20
10
Finance Management21
11
Current Status of the Firm and Its Working21
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About Sushil Finance Services Private Ltd
Introduction
Sushil Finance Services Private Ltd was established in 1982 as a Proprietary Concern
with focus on underwriting and marketing IPOs . The Company acquired membership
of the Stock Exchange, Mumbai in 1982. In the year 1986, the company started its
Secondary Market Division, and got itself empanelled on various Financial Institutions
viz. UTI, Canara bank Mutual Fund and the like. As on date the company is empanelled
with more than 40 Financial Institutions / Banks. In the year 1998, the BSE membership
was corporatized. It has evolved into a major brokerage house under the leadership of
Mr. Sushil Shah, the founder and driving force of the organization.
History of the Organization
1982 - 1986: The company developed a niche, in underwriting & marketing IPO's and
in a short time achieved a rank among the top 5 Brokers in the field. The company also
earned a reputation by mobilizing subscription through NRI's / PIO's and the company
was also among the first to reach out to various Gulf countries to promote investment
opportunities in India and to elucidate RBI guidelines with a view to make India a
preferred investment destination, such that Sushil Finance became a synonym for trust
with regards to Capital Market Investments.
1986 - 1992: Gauging the need of investors / sub-brokers, the company commenced
secondary market activities whereby it achieved recognition as an 'Investor - Friendly'
Broker. Further, it attained highest reputation amongst investors that can be attributed
to utilization of various in-house developed software and latest technologies for value
addition to investors. This activity gained momentum and forms an integral part of the
business even today.
1992 - 1996: Again a plethora of public issues flooded the market. During this period,
the company brought to play its expertise in marketing large number of Public Issues
hitting the Capital Market. In the year 1994 the company's associate Sushil Financial
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Services Private Limited acquired membership on the National Stock Exchange of India
Ltd (NSE) for Capital & Wholesale Debt market segments.
1996 - 2004: This period witnessed the spread of the Stock Market Trading System.
Moving in tandem with the development at the Stock Exchanges, the company
developed its sub-broker network across the country using VSAT / leased lines, etc. Net
Trading was also enabled during this period & also commenced Commodities Trading.
2004 - Till date: It now provides a wide range of Financial Services which are Online
Trading, Stock Broking, Commodity Trading, Portfolio Management, IPO, Depository
Services, Mutual Fund Management, NRI Services & Investment Advisory.
Group Companies: SFSPL serve the needs of investors through its Group of Companies
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Chirag Investments is Surats leading investment consulting & share broking firm since
1987. Mr. Arvindbhai K. Shah founded the company. Chirag Investments started as a
sole proprietary firm & was later converted into a corporate body Chirag Share &
Stock Broking Pvt. Ltd.
The company is a SEBI registered sub-broker for NSE & BSE Secondary market
operations. The company is affiliated with Sushil Financial Services Pvt.Ltd (SFCL), and
Sushil Stockbroker Pvt. Ltd., (SSPL) Mumbai.
The major services offered by the Company include investment and trading in stockmarket, Portfolio Management, commodity trading, and investment consulting services.
Principals of the Company
SFCL is member of BSE since 1982 & NSE from 1994. They are member in Cash, WDM &
Derivatives segments. They are having expertise in EQUITY RESEARCH & COMPANY
FUNDAMENTAL RESEARCH especially. They are having highly qualified & experienced
team for technical Analysis, to provide valuable investment option for the different typeof investors. Sushil group of companies have a strong base of clients from a wide cross
section of the investor community. They are one of the most preferred Brokers for NRI.
The group Pioneers in Marketing of IPOs, Mutual Funds, Bonds.
Contacts
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Corporate office : 106, B-wing, Tirupati plaza, Athawa Gate, Surat -1
Branch office : 204,sheetalbhojabhai Sheri, Mahidharpura Surat -3
Contact No. : +91 261 2464440 , +91 261 3014444
Website : www.susilfinance.com
Email Id : clientcare@chiragshare.com
Vision, Mission and Objectives
Vision
To be an ideal investor hub across the country for increasing the investors wealth
.
Mission
Increase investors wealth by providing the Best services & knowledge through our
transparent, trustworthy & investor friendly approach.
Objectives of Chirag Investment
The company aims to provide advisory services to its clients regarding investments, savings &
insurance in order to manage their clients funds successfully. The company aims to satisfy
financial needs of their clients and to provide effective returns on their investments in order to
maximize their wealth.
Milestones - Achievements
More than 5,000 Trading Accounts
4,000 Demat Accounts
17 Franchisee In South Gujarat
1,200 Clients Into Mutual Fund
Most Active Accounts - Award from SFCL in the Year 2007.
Highest E-Trading Accounts Award From SFCL In The Year Of 2009.
Highest PMS Corpus In 2009
Top 10 IMF (Mutual Fund) Across Surat
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Products and Services of Chirag Share
Continuous Research Support is available from to CSSPL (Chirag Investment) from its
Principal Brokers in the form of a variety of research products to facilitate sound
investments.
Products
The company has research support of 25 PRODUCTS for the INVESTMENT & TRADING.
These products are generated on a DAILY, WEEKLY, PERIODICAL Basis.
The research products include the following:
Early Signal, Value Picks, Jotha Pathak, Kal ke Liye, Khaane Ke Baad, Jara
Sambhalke, Techno Funda Open Recommendations, Portfolio Track, Daily
Bullets, Visual Aid, Sushil Bonanza etc.
All the different products are tailored to meet the requirement of different class of
Investors. All Research products guide investors to reap Opportunities.
Services provided by the company.
Equity Trading
E Trading
Commodity / Currency Trading
Mutual Funds
Depository Services
IPO
Insurance
Portfolio Management Services (PMS)
Fix Deposit and Bonds
Franchisee Development
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Equity Trading
CSSPL provides excellent environment and services for equity trader whether he is an
investor or a day trader. One can access and avail the benefits of over 25 research
products from day trading to long terms Investment calls which will help to create
wealth in any market conditions.
E- Trading
Chirag Share provides a service called Savashare on www.savashare.in- India's
premium online trading platform. It offers simple pricing, quality order execution,
outstanding tools.
Savashare is a swift, simple and secure online trading mechanism. It aims to leverage
the power of the internet to give you the facility of placing your own orders anywhere,
anytime.
Based on trading pattern and preferences, client has an option to choose from two
powerful trading accounts:
Swift Trade which is Web Based (Html), with no basic cost, accessible from any
corner of the world.
Power Trade which is software (exe) based, requiring a life time deposit of Rs. 500/-
which is refundable if brokerage in online trading exceeds Rs. 1000/-, accessible on
a particular pc where it is installed.
In online trade one can view online asset report, trade report, cash balance, technical
charts of scripts and many more things by login. Further the brokerage is less in online
trading. Online trading has all the benefits one can have, by trading through ODIN.
Type Of Trade Offline or dealer- through Trading Online Trading
Delivery Based 0.40 paisa per Rs 100/- 0.30 paisa per Rs 100/-
Intraday 0.04 paisa per Rs 100/- 0.03 paisa per Rs 100/-
Derivative Trading
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Derivatives (Futures & Options) are ideal instruments to protect your portfolio against
risk. One can trade with index movements, hedge and leverage ones portfolio by
limiting risk but keeping ones upside unlimited. CCSPL provides one of the best views
on how to trade in this segment.
Commodity Trading
Investors looking for a fast-paced dynamic market with excellent liquidity can now
trade in Commodity Market.
Investment Advisory
Sushil has a team of qualified, trained and experienced investment advisors who have
in-depth knowledge of the financial markets mainly of Equities.
Currency Derivatives
Forex, being the worlds largest and the fastest growing industry in the fields of financial
services is now available at Sushil finance. There are several currency pairs which are
available for trading such as USD-INR / EUR INR / POUND INR / YEN INR.
Corporates, institutions, HNI, retail investors and traders can all participate and try to
capitalize the opportunities this segment offers. Currency derivates is also an efficient
and an alternative platform for exporters and importers to hedge their currency
fluctuation risk on the exchange futures platform.
Mutual Funds
Mutual Funds are a group of funds managed under one umbrella. The most basic fund
family would include a stock, bond and money market-portfolio, although many funds
have variants like sector funds, balanced funds.
NRI Services
A NRI can operate either on NRE (Repatriable) or on NRO (Non Repatriable) or on both
NRE & NRO status.
Depository Services
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Depository Services offered by Sushil Finance are Dematerialization of shares, Re-
materialization, Pledging of securities, Transfer of shares, Right issue, IPO, Statement of
Transaction & Electronic Access to Securities Information.
Portfolio Management Services - PMS
Portfolio Management Services is a customized wealth management solution for
investors seeking to enjoy flavor of equity as an asset class with a long term investment
objective. Portfolio Management Services (PMS) is an ideal vehicle for wealth creation
with the help of expert knowledge of focused fund managers blended with a customized
approach towards equity investments depending upon individuals risk appetite and
investment preferences.
Franchisee Development
Chirag share is master franchisee of Sushil Finance in South Gujarat, which is authorized
by Sushil Finance for the development of Franchisee in South Gujarat. It started
working in this segment in the year of 2007. Currently, CSSPL has about 17 Active
Franchisee under its own branch. CCSPL offers an enhanced level of services to build
and sustain long term relationships with its business associates. This enables it to
respond proficiently and pro-actively to their changing needs.
Company Hierarchy System
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The Company Hierarchy system starts with the founder of the company, Mr. Arvindbhai
Shah at the top, followed by the CEO of Company Mr. Chirag Shah, son of the founder.
Next come the functional divisions which include:
Divisions Divisional Head
Equity and Dealing Mr. Mitesh Jariwala
Mutual Fund, IPO, Insurance Mr. Manish Dudhwala
Back Office Mrs. Hiral Shah
Equity and Dealing is further bifurcated into Equity Dealing and team leaders,
Commodity and currency dealing, and Technical Department.
Under Equity and Team leaders there are 3 team leaders:
Under Commodity and Currency Dealing two persons are in-charge:
1.) Mr. Rajesh Patel
2.) Mr. Sameer Vasa
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The entire Equity and Dealing room is under the control of GM, Mr. Mitesh Jariwala.
MF/IPO/Insurance is further bifurcated into MF Executives which include Mr.
Dinesh Salunke and Mr. Nitin Surti, and Back Office Team. Company recently added
Insurance, LIC, to its portfolio which is handled by the divisions divisional head, Mr.
Manish Dudhwala.
Next is the Master Franchisee Development and Customer Care Division handled by
Mr. Sachin Pawar, a DBIM evening batch pass out student. The division includes Mr.
Sachin Pawar, Mrs. Divya Karimbath, and Mrs. Nima Gandhi. This division also handles
the marketing activities and is divided into mktg. executives and back office assistants.
Last is the Back Office Division, being handled by Mrs. Hiral K Shah. This division is
includes:
1. Mrs. Hiral K Shah
2. Sagufta Shaikh
3. Nima Gandhi
4. Ashok Kadam
5. Sushil Patel
6. Hitendra Patel
Companys Departmental Introduction Departmentalization
The departmentalization of the company is done on a functional basis. Thus on the
departments are formed on the basis of various functions:
Various Departments within the company
FINANCIAL SERVICES
DEALING
BACK OFFICE
FRANCHISEE DELVELOPMENT
CUSTOMER CARE
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Financial Services
This department performs activities related to financial services like dematerialization,
demat and/or trading account depository services, margin funding, IPO/Mutual
Funds/Insurance, PMS, Equity trading, E- Trading, Commodity and Currency Trading,
Company Fixed Deposits and Bonds etc.
Dealing
This department performs activities of Equity Dealing, Currency and Commodity
Dealing, Gold and Bullion Dealing, IPO and Mutual (SIP) Dealing, Derivatives Dealing.
Back Office Division
The back office division is concerned with accounting and operational activities,
confirming trades of all clients, receiving files from parent broker, balance tallying,
funds and stocks transfers, managing auctions, printing contract notes and statement of
holdings, managing IPOs subscription of clients, depository services, Its work picks up
after the market closes after 3.30 p.m.
The Back Office division includes the following functions:
Risk Management System
Here every client is given an intra-day limit of trading up to 70% of his total liquid
money. This RMS calculation is given by the principal broker, Sushil Finance.
Work Profile of RMS
It includes: Limit System, Payment Collection and Entries, Different type of Reports
uploading like Mercantile, Ageing, Margin Summery etc, Brokerage Structure, Different
Charges and Taxes in Bill/Contract, Hold Stock System and Charges, 7 day square off.
Accounts
This includes: opening trading and demat accounts, handling the fund-stock transfer-
pay-in-pay-out-auctions and still other queries of different accounts.
Courier
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Courier services are required to dispatch the statement of holdings-ledger-contract
notes to each client.
Customer Care
This includes handling customer (client) queries, calling the clients in case of inactive
demat or trading account etc. It also includes marketing & allied activities.
Work Profile of Customer Care Division
It includes calling for client reactivation, handling online trading, daily SMS service,
daily e-mail service, updating the website, calling for new registrations, client care.
DP
Depository Services offered by CSSPL are Dematerialization of shares, Re-
materialization, Pledging of securities, Transfer of shares, Right issue, IPO, Statement of
Transaction & Electronic Access to Securities Information.
Work Profile of DP Division
It includes:
New Accounts Opening [Types Of Accounts (Individual, Currency, Commodity, Demat,
LAS, Partnership, Corporate, HUF, NRI, PMS)], Different Schemes For Demat Account
Opening, Knowledge Of Agreements And Charges, Handling Pay-In Pay-Out, Collateral
System,Registration Process And Formalities After Registration, Modification Process,
DRF Work (Physical Share Demat), Renew Accounts Calling, Client Queries Regarding
Stock, Physical Share And Registration Process.
Office- Assistance
Office Assistant includes the peons and persons concerned with dispatch work, pantry
work, cleansing activities and other miscellaneous activities.
Work Profile of Office Assistance Division
It includes:
Daily Courier Dispatch, Daily Courier Receipt, Cheque Deposit, Payment to Clients,
Handle Reception Area, Attend walk-in Clients and Incoming Calls, CleaningAll Office,
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Office - Outside Work, ONGC Visit and Collection, Ledger, Stock detail and Bills
Printing/Distribution.
Franchisee Development
Chirag share is authorized bySushil Finance, for the development of Franchisee into
South Gujarat. One can become Franchisee partner in 3 ways:
Channel Partners- having their own office, assets etc
Introducing Partners
Standing Partners- sharing the office and assets of CSSPL
One can own a franchisee and become a partner by paying Rs. 75000/- for a single cash
segment, and Rs. 1, 50,000/- for all the segments including NSE Cash, BSE Cash and NSE
F&O, and some processing and renewals charges. All one needs to be a franchisee is a
certification of NCFM CAPITAL MARKET DEALERs MODULE from NCFM for NSE Cash
Segment and NSE Equity Derivatives Dealers Module.
Marketing and Customer Care
This includes handling customer (client) queries, telecalling clients in case of inactive
demat or trading account etc. It also includes marketing & allied activities like
telecalling clients, sms services, e-mailing clients.
Work Profile of Customer Care Division
It includes:
Tele Calling for Client Reactivation, Handling Online Trading, Daily SMS Service, Daily
E-mail Service, Site Updation, Tele Calling for new Registration, Client Care
Human Resource Management
The company, CSSPL, runs with a staff of 30 people located at 2 different branches:
One at Tirupati Plaza, Athwagate and the other at Mahidharpura.
The companys HR Policy is as follows:
Employment
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employee performance is found unsatisfactory during the probation period, they can be
terminated by the organization, any time during or on expiry of said period.
During this period, concerned senior will typically review employees performance on
completion of probation period. During first three months of employment, employee isnot eligible for sick or vacation pay, and they will not be granted a leave of absence.
Leave/Holidays
Employees are entitled to get weekly off and gazetted holidays observed by the
organization in a Calendar year. Employee will get 10 leaves during the whole year.
Employee will inform in two days before, by Leave Application form in writing for
getting leave. Balanced leaves would be encashed in salary at the end of calendar year.
Termination Period
In case of Permanent job, employees have the right to terminate their employment at
any time, for any reason with 30 days notice period but Organization can also terminate
the employment with 30 days notice period, but in case of misconducts done by
employees, company can terminate employee with cause and without notice, and they
will be relieved subject to This Handbook does not constitute a contract between the
Organization and the employee. All policy statements, procedures, manuals ordocuments as well as statements by an employee or representative shall not in any way
modify this at will status.
BreakIn Service
If employee terminates prior to one year of regular employment, no service will be
credited.
If they return to regular employment at a later date, prior service will be credited if they
return to regular employment within one calendar year of the prior date of termination.
Personal Life
Every person owns his or her private life. The firm respects employees personal life
and problems but they have to ensure that they do not spend unreasonable time in
carrying out activities of purely personal matter. Firm will try to extend all possible
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assistance in case of personal exigency. Please do not hesitate to approach concerned
head. Employee welfare is of firms concern.
Regular Working Hours
The normal hours of work for offices are 09:00 a.m. to 06:00 p.m.; however, there are
some departments whose work day may begin end at different timings. All offices are
expected to be staffed during office hours.
The normal work schedule is 9-hour day and a half an hour for lunch. Employees may
be required to work beyond their regular schedules, depending upon the needs of their
department.
A 15-minute rest period or coffee break is allowed to administrative employees in the
morning. There must be adequate coverage of the phones and the office at break times.
Overtime
In our organization no over time is encouraged. If at all it required overtime work must
have the prior approval of concerned senior.
Employee will be paid for any hours worked beyond their normal workweek schedule
up to 25 hours at their normal hourly rate. If they work beyond 25 hours, they will be
paid at time and one-half their regular hourly rate.
If employees are required to work on one of the organizations scheduled holidays and
because of departmental needs they are not given a different day off within the same
workweek. They will be paid straight time for hours worked on the holiday in addition
to pay or will be offered comp off leave.
Performance Appraisal
Performance appraisal is carried out in the month of January each year. Terms and
Conditions of Performance Appraisal change as per market conditions. Appraisal
Reward would be carried out quarterly. A reward for extra ordinary performance by
any employee would be subject to management decisions or non monetary rewards.
Pay
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The pay scale is based on a fixed pay scale plus a commission of a fixed percentage if the
results achieved exceeds the targets set for.
Thus,
Salary = Fixed Salary + A Variable, Commission-Based Pay.
Marketing Management
The goal of marketing function of the firm is:
new demat and trading accounts opening,
making new clients,
retaining the old ones,
trading and dealing in different financial instruments,
increasing volumes and trades per client,
increasing the number of clients,
franchisee development,
selling online trading software to clients, requiring a one life time deposit of Rs. 500.
cross selling. For e.g. A Equity Dealer selling LIC Insurance or Mutual Funds and
Vice-Versa.
The following activities are performed in the area of marketing:
handling customer (client) queries,
Tele Calling for Client Reactivation,
Handle Online Trading,
Daily SMS Service,
Daily E-mail Service,
Site Updation,
Tele Calling for new Registration,
Client Care.
To achieve these goals the following tools are used by the firm:
Telecalling clients in case of inactive demat or trading account etc.
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Telecalling clients and insist them to trade in lucrative stocks and ventures.
Telecalling to unknown client database to open up their demat and trading account
with the firm, taking their appointments, making them understand the schemes of
account opening and other policies,
Insisting clients to deal in other instruments like LIC Insurance, Mutual Funds
through core selling as well as cross selling,
Using Mobile SMS technology to reach a number of clients and people,
Using Email Internet Technology to reach a number of clients and people.
Using Newspaper & Television as a medium of adverts of the firm & its services.
Using the Word Of Mouth channel and Personal Selling to reach, attract and make
new customers, the two most important tools in this field.
Personally meeting HNI clients & guiding & directing them towards lucrative
investments.
Meeting Individuals interested in owning a franchisee or interested in becoming a
channel partner.
Insisting existing Clients to access at home online trading through net Trading
Platform, Savashare Online Trading.
Service (Product) Mix of Chirag Investments
The 7 Ps of Chirag Investments are as follows:
1. Product
The Products (services) offered by Chirag share are Depository Services, Demat and
Trading Account opening, LAS, MF, Equity-Commodity-Currency-Bullion trading,
Research Products, PMS, etc.
2. Place
The services refer to the distribution network. Since it is a service firm the distribution
and discharge of the services is done by following modes:
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At the firm in the dealing room, on phones / mobiles, SMS mobile technology, Email
Internet Technology, Online Trading etc.
3. Price
The prices charged by the company for its various services are on cost plus basis. Demat
and trading account opening charges and brokerage charges charged by the company
are shown in the following two tables:
Brokerage Charges
Type Of Trade Offline or dealer- through Trading Online Trading
Delivery Based 0.40 paisa per Rs 100/- 0.30 paisa per Rs 100/-
Intraday 0.04 paisa per Rs 100/- 0.03 paisa per Rs 100/-
Demat and Trading Charges
Account
Details
Investor Economy Classical
One-time payment Rs 100 + taxes
& notary charge
Rs 250 + taxes
& notary charge
Rs 999 plus taxes
& notary charges
Charge on Mkt trading Rs. 25 min or 4% Rs.15 min or 4% Nil
4. Promotion
To reach the masses the company uses the following tools to promote its product and
services:
Interactive Media (via Websites, Emails), SMS Technology, Personal Selling, Word Of
Mouth Channel, Seminars.
5. People
CSSPL has a dedicated-qualified-competent staff of 30 personnels who are always ready
to serve the customers in the best manner, solve their queries with minimum
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Finance Management
In this firm, Finance section is kept under back-office division so Finance Management
is done from this division.
The finance management includes risk management system, pay-in and pay-out system,
LAS/MF, accounting and ledger posting, trade confirmations and balance tallying,
managing share and fund transfers, managing short sale and auctions of clients etc. The
entire topic is covered previously under the back office topic.
Current Status of the Firm and Its Working
The company recently added Insurance to its portfolio of services by tying up with
LIC.
The company also started a new activity as a part of creating eco-friendly
environment. Previously it used to provide trade confirmation in physical form via
printed contract notes. Now it has decided to go paperless by providing ECN i.e.
Electronic Contract Notes to all the clients which will include their trade details for that
date. For this the company now asks for email IDs of clients and those clients who dont
have email IDs or who do not have an access to PC or internet at their residence, email
IDs are created by the firm so that the clients can access their trade reports at CSSPL,
after the market hours. The company also provides trade confirmation and balance via
SMS.
Due to changes in NSE-BSE timings in 2009 the office now stars at 8.00 A.M. Since
the firm also runs commodity dealing terminal, the office runs late till midnight.
Brokerage Schemes
Type Of Trade Offline or dealer- through Trading Online Trading
Delivery Based 0.40 paisa per Rs 100/- 0.30 paisa per Rs 100/-
Intraday 0.04 paisa per Rs 100/- 0.03 paisa per Rs 100/-
Demat and Trading Account Schemes
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Account
Details
Investor Economy Classical
One-time payment Rs 100 + taxes
& notary charge
Rs 250 + taxes
& notary charge
Rs 999 plus taxes
& notary charges
Charge on Mkt trading Rs. 25 min or 4% Rs.15 min or 4% Nil
Account Opening Schemes
Following types of accounts can be opened in the firm: Individual, Currency,
Commodity, Demat, LAS, Partnership, Corporate, HUF, NRI, and PMS.
Opening of any kind of account requires some basic documents like identity card, PAN
card, Permanent Address proof, original but cancelled cheque, signature verification,
passbook bank transaction details not older than 4 months etc. All the documents must
be true copies and they must be self attested.
Some other documents are also required for different type of accounts. Like:
y In case of individual account nomination is required if it is not a joint account.
y NRI account opening requires NRI address proof as well Indian residence address
proof, RBI approval, foreign bank transaction details.
y Partnership account requires partnership deed, PAN card of all the partners. Demat
will be individualized for each partner, whereas trading will be centralized in the name
of partners firm.
y Joint stock companies are required to give a board resolution, accounts statements of
corporate not older than 2 years, MOA-AOA, to open up an account. In addition
corporate accounts are required payment of Rs. 500 p.a, as an additional charge, not
applicable to any other type of accounts.
y HUF requires HUF pan card and details
y PMS account requires a minimum investment of Rs. 10 lacs. The client has the option
of selecting one of the two plans and is charged on the following basis:
Plan 1: Variable fee Plan
Fixed Management Fees 1.5% p.a.
Performance Fees 15% sharing above 12% hurdle rate
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Plan 2: Fixed Fee Plan
Fixed Management Fees 2.5% p.a. irrespective of profit or loss
Loan Against Shares (LAS) v/s Margin Funding (MF)
Though both the terms sound similar, there is a wide difference between LAS and MF.
y LAS, is a Sushil finances standardized form while MF is Chirag Investments
personalized form.
y For LAS a special type of account is required to be opened up with Sushil / Chirag,
whereas Margin funding can be availed on an existing account.
y The amount provided by LAS and MF differ widely because LAS is based on Sushils
standardized formulae and calculations whereas MF is based on Chirags personalized
formulae and calculations..
For e.g. If an investor has investment in shares amounting to Rs. 1 lac, then under LAS
first it will be observed that what amount of total stock is invested in BSE A Group
companies. Suppose it amounts to Rs. 50,000. Than after deducting 25% for
adjustments and multiplying it by 2, the resultant is the amount of LAS will be,
(100000-50000) * (1-.025) * 2 = Rs 75,000
Now if the same investors avails facility of MF then the amount of MF will be jus double
of liquid money.
1, 00,000 * 2 = Rs 2, 00,000
y The amount of LAS is provided by Sushil Finance whereas the amount of MF is
provided by CCSPL from their personal equity/debt.
y The period for which these two are given also differs. LAS can last long till the clients
account is active, whereas MF is given for 21 days and after that period one has to
square off his position by repaying the debt.
On both; LAS as well as MF 17-18% yearly interest is charged.
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