Geojit Project

GEOJIT FINANCIAL SERVICES, THRISSUR

CHAPTER-1

INTRODUCTION

HOLY GRACE ACADEMY OF MANAGEMENT STUDIES MALA Page 1


INTRODUCTION

This report is an outcome of a study undertaken on the volatility of the

share markets in the financial year 2007-08, on the topic “How far the volatility of

share market affects Geojit’s turnover”. For this study, the turnover of Geojit

Thrissur branch in last two quarters of the financial year 2007-08 was selected.



SIGNIFICANCE OF THE STUDY

Indian markets third most volatile in 2007– 08

The Indian markets were the most volatile in the world after China

and Hong Kong in 2007-08. According to SEBI report the annualized volatility of the

BSE bench mark index Sensex increased to 30.6% in 2007-08 from 27.6% in the

previous year.

Similarly the NSE Nifty recorded annualized volatility 32.1% in 2007-08 compared to

28% in the previous year.

Annualized volatility is a measure of the amount by which an underlying index

fluctuates.

The BSE Sensex touched the yearly high of 21206.77 on January 10, 2008 and

the lowest level of 12425.52 on April 2, 2007, in 2007-08.

The BSE Sensex and NSE Nifty appreciated by 19.7% and 23.9% respectively,

on March 31, 2008, over March 31, 2007.

The BSE Sensex gained 2572 points to close at 15644 on March 31, 2008, from 13072

on March 31, 2007. The Nifty also added 913 points to close at 4735 at the end of

March 2008 over 3822 recorded at the end of March 2007.

India’s annual return on a point to point basis was the fourth highest in the

world after the Hermes index Egypt (56.3%) JCI of Indonesia (33.7%) and Ibov of

Brazil (33.1%).



OBJECTIVES OF THE STUDY

For the effectiveness of the study the objectives are separated under two heads

as follows;

1. Primary objective

2. Secondary Objective

PRIMARY OBJECTIVE

To find out how far the volatility affects Geojit’s turn over in Thrissur.

SECONDARY OBJECTIVE

1. To study about the share market.

2. To know about the volatility of share market.

3. To learn about the latest changes in this market.



METHOLDOGY

OUTLINE OF RESEARCH METHODOLOGY

Research in common parlance refers to a search for knowledge. According to

Clifford woody research comprises defining and redefining problems, formulating

hypothesis or suggested solution; collecting, organizing and evaluating data; making

deduction and reaching conclusions and at last carefully testing the conclusions to

determine whether they fit the formulating hypothesis.

A research methodology defines what the activity of research is, how to proceed,

how to measure progress, and what constitutes success research methodology is a way

to systematically solve the research problem. It may be understood as a science of

studying how research is done scientifically. Thus when we talk of research

methodology we not only talk about research methods but also consider the logic

behind the method we use in the context of our research study and explain why we are

using a particular method or technique and why we are not using others so that

research result are capable of being evaluated either by the research himself or by

others



Methodology

Data sources

Secondary data: It was collected for the study through

- Company record

- Companies publication

- Journal

- Books

- Websites

METHOD OF DATA ANALYSIS

Analysis of the brokerage income during the period.

Type of research

The types of research used are

Primary analytical research method

In this the available information or data are analyzed.



STUDY PERIOD

Study period has been limited to 2 weeks starting from august 18th 2008 for the

overall completion of the project. During the period the following step were taken:

Objectives were set and finalized

Data were collected and recorded

Data were analysed and interrupted

Report were generated

.

LIMITATION OF THE STUDY

Time factor is a major constraint due to which the study was not able to be

done in depth.



CHAPTER 2

LITERATURE REVIEW



INDIAN STOCK MARKET-AN INTRODUCTION

The Indian stock market has a long history going back 130 years. The Bombay

Stock Exchange, the iconic trademark of our securities market, is one of the oldest

stock exchanges in the world, having been set up in 1875. A pioneer in organized

stock broking activity, this exchange was a brainchild of a group of enterprising

brokers. Over the years, the Indian securities market has evolved gradually to become

one of the Asia’s most modern and efficient markets, setting international standards in

technology and settlement systems.

Stock markets have a stellar role to play in the economic growth of every

country. Needless to mention, the Indian stock market too is inextricably entwined in

the business fabric of our country. At the end of 2003, S & P has ranked the Indian

market 17th in terms of market capitalization on a global scale, 16th in terms of

turnover and 6th in terms of turnover ratio. India has the highest number of listed

securities in the world surpassing even the US which is the world’s largest equity

market in term of market capitalization

The Indian securities market has two fundamental segments- the primary

market and the secondary market. The primary market is the market for new issues

where resources get mobilized either through public issues or through private

placements.



The secondary market provides liquidity to participant’s holdings by enabling

them to buy and sell securities according to their risk return assessments. This market

is further divided into the Over the Counter (OTC) market and the exchange trade

market. The OTC markets are informal markets where transactions are negotiated over

the telephone and/or computer network of dealers.

The two most/tracked indices in India are the BSE Sensex and the S$P CNX

Nifty. Originally complied in 1986, the Sensex is a basket of 30 constituent stocks of

companies that figure in the top 100 in terms of market capitalization. The S&P CNX

Nifty is an S&P endorsed index, owned and managed by the Indian Index Services Ltd

(IISL). It is an index of 50 stocks representing 24 sectors of the economy.

Apart from being a popular avenue of investments, Indian stock market is today

an important source of financing for both the industry as well as the government. It

registers the pulse of the Indian markets and is indeed the most publicized barometer

of the economy.




Stock market organisation in India

Stock Broking

Brokers

Sub-Brokers

Trading&Clearin

g/Self-

Clearing

Members

Custodial ServicesDepository System

Depositori

es Act

SEBI Depositori

es and Participan

ts Regulation

Securities

Lending

Scheme


ABOUT SHARE TRADING

Usually people invest in shares because of the high return that they expect

from the investment. In the year from 2000 to 2005 we have a return of 17% per

annum in the case of the nifty shares. They never want to make loss on their

investment. So they go through a lot of tips for analyzing the shares are given below:

1. Sales growth

2. Increase in profit of the company

3. Return on investment

4. Volume of shares traded

5. Company management

6. Debt-equity ratio(Up to 1.5 ok)

7. P/E ratio

But even after making investment with a lot of care, there is risk from the factors like:

Politics

Government policies………etc

Here comes the importance of financial derivatives in the hands of an investor

to reduce the risk associated with him. The National Stock Exchange and The Stock

exchange, Mumbai have commenced trading in derivatives market with Index Futures

being the first instrument. Now both the exchanges provide trading in Index Futures

and Options and Stock Futures and Options



CHAPTER-3

INDUSTRY PROFILE AND COMPANY PROFILE



INDUSTRY PROFILE

Financial Services Industry

Financial services organizations are striving to achieve increasingly ambitious

profit and growth targets against a background of heightened risk, regulation and

market pressures. As of 2004, the financial services industry represented 20% of the

market capitalization of the S&P 500 in the United States.

Financial services refer to services provided by the finance industry. The

finance industry encompasses a broad range of organizations that deal with the

management of money. Among these organizations are banks, credit card companies,

insurance companies, consumer finance companies, stock brokerages, investment

funds and some government sponsored enterprises.

Customer needs and expectations are evolving in the face of increasing personal

wealth, more private funding of pensions and healthcare and the desire for ever more

accessible and personalised financial products and services. In turn, intense

competition has squeezed industry margins and forced organisations to cut costs while

still seeking to enhance the quality of client choice and service. The battle for talent is

also heating up as companies seek to enhance innovation, customer loyalty and

investment returns.


http://en.wikipedia.org/wiki/Government_sponsored_enterprise

http://en.wikipedia.org/wiki/Investment_management

http://en.wikipedia.org/wiki/Investment_management

http://en.wikipedia.org/wiki/Stock_broker

http://en.wikipedia.org/wiki/Insurance

http://en.wikipedia.org/wiki/Credit_card

http://en.wikipedia.org/wiki/Bank

http://en.wikipedia.org/wiki/Service_(economics)

http://en.wikipedia.org/wiki/S%26P_500

http://en.wikipedia.org/wiki/Market_capitalization


The corollary of this market evolution is increasing risk as products become

more complex, organisations more diffuse and the business environment ever more

uncertain. Regulation is also tightening in the wake of public and government pressure

for improved governance, transparency and accountability.

In this environment, the winners will be companies that can turn the challenges

into opportunities to build stronger and more enduring customer relationships; sharpen

process efficiency; unlock talent and creativity; use improved risk management

processes to deliver more sustainable returns; and use new regulatory demands as a

catalyst for strengthening the business and enhancing market confidence.

Organisations will also need to identify and concentrate on core competencies

where they can exert maximum competitive advantage, be this a particular product,

service, process or geographical territory. For some this will require a strategic re-

orientation towards becoming a specialist niche provider. Even larger groups will need

to differentiate their offering and by implication the associated brand

In economics, a financial market is a mechanism that allows people to easily

buy and sell (trade) financial securities (such as stocks and bonds), commodities (such

as precious metals or agricultural goods), and other fungible items of value at low

transaction costs and at prices that reflect the efficient market hypothesis. Financial

markets have evolved significantly over several hundred years and are undergoing

constant innovation to improve liquidity.


http://en.wikipedia.org/wiki/Market_liquidity

http://en.wikipedia.org/wiki/Efficient_market_hypothesis

http://en.wikipedia.org/wiki/Transaction_cost

http://en.wikipedia.org/wiki/Commodity

http://en.wikipedia.org/wiki/Trade

http://en.wikipedia.org/wiki/Economics


Both general markets (where many commodities are traded) and specialized

markets (where only one commodity is traded) exist. Markets work by placing many

interested buyers and sellers in one "place", thus making it easier for them to find each

other. An economy which relies primarily on interactions between buyers and sellers

to allocate resources is known as a market economy in contrast either to a command

economy or to a non-market economy such as a gift economy

In finance, financial markets facilitate--

The raising of capital (in the capital markets);

The transfer of risk (in the derivatives markets);

International trade (in the currency markets)

--and are used to match those who want capital to those who have it.

Typically a borrower issues a receipt to the lender promising to pay back the

capital. These receipts are securities which may be freely bought or sold. In return for

lending money to the borrower, the lender will expect some compensation in the form

of interest or dividends.


http://en.wikipedia.org/wiki/Interest

http://en.wikipedia.org/wiki/Security_(finance)

http://en.wikipedia.org/wiki/Receipt

http://en.wikipedia.org/wiki/International_trade

http://en.wikipedia.org/wiki/Derivatives_market

http://en.wikipedia.org/wiki/Risk#Risk_in_finance

http://en.wikipedia.org/wiki/Capital_market

http://en.wikipedia.org/wiki/Capital_(economics)

http://en.wikipedia.org/wiki/Finance

http://en.wikipedia.org/wiki/Gift_economy

http://en.wikipedia.org/wiki/Market_economy


Definition of financial market

The term financial markets can be a cause of much confusion.

Financial markets could mean:

1. Organizations that facilitate the trade in financial securities. i.e. Stock Exchanges

facilitate the trade in stocks, bonds and warrants.

2. The coming together of buyers and sellers to trade financial securities. i.e. stocks

and shares are traded between buyers and sellers in a number of ways including:

the use of stock exchanges; directly between buyers and sellers etc.

In academia, students of finance will use both meanings but students of economics

will only use the second meaning.

Financial markets can be domestic or they can be international

Types of Financial Markets

The financial markets can be divided into different subtypes:

Capital Market which is the market for securities, where companies and

governments can raise long term funds. The capital market includes the stock

market and the bond market. Financial regulators, such as the U.S. Securities

and Exchange Commission, oversee the capital markets in their designated

countries to ensure that investors are protected against fraud. The capital

markets consist of the primary market, where new issues are distributed to

investors, and the secondary market, where existing securities are traded.


http://en.wikipedia.org/wiki/Secondary_market

http://en.wikipedia.org/wiki/Primary_market

http://en.wikipedia.org/wiki/U.S._Securities_and_Exchange_Commission

http://en.wikipedia.org/wiki/U.S._Securities_and_Exchange_Commission

http://en.wikipedia.org/wiki/Bond_market

http://en.wikipedia.org/wiki/Stock_market


http://en.wikipedia.org/wiki/Government

http://en.wikipedia.org/wiki/Corporation

http://en.wikipedia.org/wiki/Security_(finance)

http://en.wikipedia.org/wiki/Market

http://en.wikipedia.org/wiki/Economics

http://en.wikipedia.org/wiki/Academia


CAPITAL MARKETS WHICH CONSIST OF:

1. Stock Markets , which provide financing through the issuance of shares

or common stock, and enable the subsequent trading thereof.

2. Bond Markets , which provide financing through the issuance of Bonds,

and enable the subsequent trading thereof.

Commodity Markets , which facilitate the trading of commodities.

Money Markets , which provide short term debt financing and investment.

Derivatives Markets , which provide instruments for the management of

financial risk.

1. Futures Market s , which provide standardized forward contracts for

trading products at some future date; see also forward market.

Insurance Markets , which facilitate the redistribution of various risks.

Foreign Exchange Markets , which facilitate the trading of foreign exchange.

The capital markets consist of primary markets and secondary markets. Newly

formed (issued) securities are bought or sold in primary markets. Secondary markets

allow investors to sell securities that they hold or buy existing securities.


http://en.wikipedia.org/wiki/Secondary_market

http://en.wikipedia.org/wiki/Primary_market


http://en.wikipedia.org/wiki/Foreign_exchange_market

http://en.wikipedia.org/wiki/Foreign_exchange_market

http://en.wikipedia.org/wiki/Insurance

http://en.wikipedia.org/wiki/Forward_market

http://en.wikipedia.org/wiki/Forward_contract

http://en.wikipedia.org/wiki/Futures_exchange

http://en.wikipedia.org/wiki/Finance

http://en.wikipedia.org/wiki/Derivatives_market

http://en.wikipedia.org/wiki/Money_market

http://en.wikipedia.org/wiki/Bond_(finance)

http://en.wikipedia.org/wiki/Bond_market

http://en.wikipedia.org/wiki/Stock




Raising Capital

To understand financial markets, let us look at what they are used for, i.e. what

is their purpose?

Without financial markets, borrowers would have difficulty finding lenders

themselves. Intermediaries such as banks help in this process. Banks take deposits

from those who have money to save. They can then lend money from this pool of

deposited money to those who seek to borrow. Banks popularly lend money in the

form of loans and mortgages.

More complex transactions than a simple bank deposit require markets where

lenders and their agents can meet borrowers and their agents, and where existing

borrowing or lending commitments can be sold on to other parties. A good example of

a financial market is a stock exchange. A company can raise money by selling shares

to investors and its existing shares can be bought or sold.

The following table illustrates where financial markets fit in the relationship

between lenders and borrowers:

Relationship between lenders and borrowers

Lenders Financial Intermediaries Financial Markets Borrowers

Individuals

Companies

Banks

Insurance Companies

Pension Funds

Mutual Funds

Interbank

Stock Exchange

Money Market

Bond Market

Foreign Exchange

Individuals

Companies

Central Government

Municipalities

Public Corporations


http://en.wikipedia.org/wiki/Financial_intermediary

http://en.wikipedia.org/wiki/Stock_exchange

http://en.wikipedia.org/wiki/Mortgage_loan

http://en.wikipedia.org/wiki/Money

http://en.wikipedia.org/wiki/Bank


Analysis Of Financial Markets

Much effort has gone into the study of financial markets and how prices vary

with time. Charles Dow, one of the founders of Dow Jones & Company and The Wall

Street Journal, enunciated a set of ideas on the subject which are now called Dow

Theory. This is the basis of the so-called technical analysis method of attempting to

predict future changes. One of the tenets of "technical analysis" is that market trends

give an indication of the future, at least in the short term. The claims of the technical

analysts are disputed by many academics, who claim that the evidence points rather to

the random walk hypothesis, which states that the next change is not correlated to the

last change.

The scale of changes in price over some unit of time is called the volatility. It

was discovered by Benoît Mandelbrot that changes in prices do not follow a Gaussian

distribution, but are rather modeled better by Levy stable distributions. The scale of

change, or volatility, depends on the length of the time unit to a power a bit more than

1/2. Large changes up or down are more likely than what one would calculate using a

Gaussian distribution with an estimated standard deviation.


http://en.wikipedia.org/wiki/Standard_deviation

http://en.wikipedia.org/wiki/Power_law

http://en.wikipedia.org/wiki/Beno%C3%AEt_Mandelbrot

http://en.wikipedia.org/wiki/Volatility_(finance)

http://en.wikipedia.org/wiki/Random_walk_hypothesis

http://en.wikipedia.org/wiki/Market_trends

http://en.wikipedia.org/wiki/Technical_analysis

http://en.wikipedia.org/wiki/Dow_Theory

http://en.wikipedia.org/wiki/Dow_Theory

http://en.wikipedia.org/wiki/The_Wall_Street_Journal

http://en.wikipedia.org/wiki/The_Wall_Street_Journal

http://en.wikipedia.org/wiki/Dow_Jones_%26_Company

http://en.wikipedia.org/wiki/Charles_Dow


COMPANY PROFILE



Introduction

Mr. C.J. George and Mr. Ranajit Kanjilal founded Geojit as a partnership firm

in the year 1987. In 1993, Mr. Ranajit Kanjilal retired from the firm and Geojit

became a proprietary concern of Mr. C .J. George. In 1994, it became a Public Limited

Company by the name Geojit Securities Ltd. The Kerala State Industrial Development

Corporation Ltd. (KSIDC), in 1995, became a co-promoter of Geojit by acquiring 24%

stake in the company, the only instance in India of a government entity participating in

the equity of a stock broking company. Geojit listed at The Stock Exchange, Mumbai

(BSE) in the year 2000. In 2003, the Company was renamed as Geojit Financial

Services Ltd. (GFSL). The board of the company consists of professional directors;

including a Kerala government nominee with 2/3rd of the board members being

Independent Directors. With effect from July 2005, the company is also listed at The

National Stock Exchange (NSE). Geojit is a charter member of the Financial Planning

Standards Board of India and is one of the largest DP brokers in the country.



Overseas Joint Ventures

Barjeel Geojit Securities, LLC, Dubai, is a joint venture of Geojit with Al Saud

Group belonging to Sultan bin Saud Al Qassemi having diversified interests in the

area of equity markets, real estates and trading. Barjeel Geojit is a financial

intermediary and the first licensed brokerage company in UAE. It has facilities for off-

line and on-line trading in Indian capital market and also in US, European and Far-

Eastern capital markets. It also provides Depository services and deals in Indian and

International Funds. An associate company, Global Financial Investments S.A.O.G

provides similar services in Oman.

Aloula Geojit Brokerage Company, is Geojit’s recently promoted joint venture

in Saudi Arabia with the Al Johar Group. Saudi is home to the world’s single largest

NRI population. The new venture is expected to start operations in the latter half of

2008. The Saudi national and the NRI would be able to invest in the Saudi capital

market. The NRI would also be able to invest in the Indian stock market and in Indian

mutual funds. This joint venture makes Geojit the first Indian stock broking company

to commence domestic retail brokerage operations in any foreign countr



Overseas Business Association

Bank of Bahrain and Kuwait (BBK), one of the largest retail banks in Bahrain

& Kuwait through its NRI-Business, and Geojit entered into an exclusive agreement in

September 2007. This association will provide the bank’s sophisticated client base ,

the opportunity to diversify their holdings through investments in the Indian stock

market. Services offered are- Investment Advisory, Portfolio Management, Mutual

Funds, Trading in Indian Equity Market, DEMAT and Bank account, Offline Share

Transactions and PAN Card.



PRODUCT AND SERVICES

EQUITY:

Geojit, a member of NSE and BSE, has a network of over 300 branches in India

and abroad, rendering quality equity trading services. Geojit not only has a strong

offline presence but also provides automated online trading services. Geojit’s retail

spread caters to the need of individual investors. Trading in equities is made simple,

safe and interesting with smart advice from the research desk through daily SMS

alerts, market pointers, periodical research reports, stock recommendations and

customer meets organized frequently. The online trading system allows customers to

track the markets by setting up their own market watch, receiving research tips, stock

alerts, real time charts and news and many more features enable the customer to

take informed decisions. The brokerage structure makes Geojit’s online trading all

the more attractive:

0.03% for day trading (applicable on both sides)

0.30% for delivery



Futures and Options

The national stock exchange and the stock exchange, Mumbai have

commenced trading in derivatives market with index futures being the first

instruments. Now both the exchanges provide trading in index futures and options

and stock futures and options. A derivative is financial contract, between two or

more parties, which is derived from the future value of an underlying asset. At any

point of time there will always be available near three months contract periods. For

e.g. in the month of Jan.2006 one can enter into Jan, Feb or Mar contracts. The last

Thursday of each month is the expiry day for that month’s contract. When one

contract expires, a new contract is introduced. For instance, on expiry of Jan 2006

contract, April contract shall get activated. Currently, settlements of all derivatives

trades are in cash. There is daily as well as final settlement. As long as the position is

open, the same will be marked to market at the daily settlement price, the difference

will be credited or debited accordingly and the position shall be brought forward to

the next day at the daily settlement price. Any position which remains open at the

end of the final settlement day (i.e., last Thursday) shall be closed out by the

exchange at the final settlement price, which will be the closing spot value of the

underlying. There are four types of Members in the Futures and Options Segment:

Trading members

Trading cum clearing members

Professional Clearing Member

Self Clearing Members



DEPOSITORY:

A depository can be compared to a bank. It holds securities such as shares,

debentures, bonds, government securities, units etc. of investors in electronic form.

There are two depositories in India, The National Securities Depository Limited

(NSDL) and Central Depository Services Limited (CDSL). An individual who decides to

avail the depository services can approach a Depository Participant (DP). Banks,

financial institutions, custodians, brokers or any other entity eligible as per SEBI

(Depositories and Participants) Regulations, 1996 can apply to the Depository to

become a Depository Participant. As on 31st December2005 there were 221

Depository Participants in India.



Commodity

Geojit Commodities, a subsidiary of Geojit Financial Services Limited is

mainly engaged in the business of Commodities Futures Trading. Geojit Commodities

is a member of:

1. National Multi – Commodity Exchange of India limited (NMCE)

2. National Commodity and Derivative Exchange Limited (NCDEX)

3. Multi-Commodity Exchange (MCE)

4. India Pepper and Spice Trade Association (IPSTA)

5. Singapore Commodity Exchange (SICOM)

6. Dubai Gold Commodity Exchange (DGCX).

PORTFOLIO MANAGEMENT SERVICES

Geojit, a SEBI registered Portfolio Manager Offer’s discretionary portfolio

management services. Geojit has a team of experts who carefully take investment

decisions based on the clients’ objectives. The Portfolio Management team has a

successful track record of more than 10 years in the capital market. The team has

access to Geojit’s strong Equity Research, and Fundamental and Technical Analysis.



DISTRIBUTION

Geojit undertakes the distribution of variety financial instruments such as

mutual funds, bonds, life insurance products, fixed deposits etc. The wealth centre

team understands the universe of investment options analyzes the risk and return

from these options and recommends investment options to clients to help them

achieve their financial goals. Geojit has a tie up with all the Mutual Funds across

the country. Geojit offers life insurance products of the following life insurance

companies:

1. MetLife India Life Insurance Company

2. LIC of India

3. ICICI Prudential

For general insurance, Geojit has partnered with the following:

Bajaj Alliance General Insurance Company

National Insurance Company Ltd.



Milestones

The company crossed the following milestones to reach its present position as a

leading retail broking house in India.

1986

Geojit becomes a member of the Cochin Stock Exchange.

1994

The Kerala State Industrial Development Corporation (KSIDC), an arm of the

Government of Kerala, becomes a co-promoter of the company by acquiring

24% equity stake in Geojit Financial Services Ltd., based on the evaluation

report of Ernst & Young. This is the only venture in India where a state

owned development institution is participating in the equity of a stock

broking company. Geojit becomes a corporate broking house.

1995

Geojit comes out with a small Initial Public Offer (IPO) of Rs.9.5 million,

which was oversubscribed by 15 times. Geojit's issued and subscribed equity

capital increased to Rs.30 million and KSIDC's equity stake comes down to

17%.

Geojit becomes a member of the National Stock Exchange (NSE) and installs

its first trading terminal in Cochin, Kerala.

1996



The company launches Portfolio Management Services after obtaining

required registration (Portfolio Management) from Securities Exchange

Board of India (SEBI).

1997

Geojit becomes a Depository Participant under National Securities

Depository Limited (NSDL) and begins providing Depository Services

through its branches.

1999

Geojit becomes a member of The Stock Exchange, Mumbai (BSE) and

activates Bombay Online Terminals (BOLT) in different branches.

The customer base of Geojit crosses the 50,000 mark.

2000

Geojit becomes the first broking firm in the country to offer online trading

facility. The then SEBI Chairman, Mr. D.R.Mehta inaugurates the facility on

1st February, 2000.

Commences Derivative Trading after obtaining registration as a Clearing and

Trading Member in NSE.

Establishes the first Bank Gateway in the country for Internet Trading.

2001



Geojit's customer base crosses 100,000.

Becomes India's first DP to launch depository transactions through Internet.

Establishes Joint Ventures in the UAE for serving NRI clients.

The company issues bonus shares in the ratio of 1:1.

2002

Geojit ties up with MetLife for the marketing and distribution of insurance

products across the country.

The company becomes the first online brokerage house to launch integrated

internet trading system for both cash and derivatives segments.

Sheikh Sultan Bin Saud Al Oassemi, a member of the ruling family of

Sharjah, UAE, joins the Board of Directors of Geojit.

2003

Geojit Commodities Limited, a wholly owned subsidiary of Geojit, becomes

member of National Multi-Commodity Exchange of India Ltd., National

Commodity & Derivatives Exchange Ltd., and Multi Commodity Exchange

and launches Commodity Futures Trading in rubber, pepper, gold, wheat and

rice.

Geojit Commodities Limited launches Online Futures Trading in multiple

commodities namely, agri-commodities, precious metals like gold and silver,

other metals like steel, aluminium, etc. and energy futures namely, crude oil

and furnace oil.

Geojit rises more than Rs.100 million through issue of preferential shares.



2005

Barjeel Geojit Securities LLC becomes a member of Dubai Gold Commodity

Exchange.

Customer base of Geojit crosses 250,000.

Geojit's reach spreads through a network of more than 300 branches.

The company issues bonus shares in the ratio of 1:1.

Geojit Credits, a subsidiary of Geojit Financial Services Ltd. registers with

Reserve Bank of India as a Non-Banking Financial Company (NBFC).

The company gets listed on National Stock Exchange of India Limited.

The company implements Employees Stock Option Scheme.

The company opens a first of its kind - all women's branch in Cochin.

2006

Geojit relaunches Internet trading on Reuters TIB Mercury Platform.

2007

On March 13, 2007 the formation of Geojit BNP Paribas Financial Services

Ltd., was announced in Mumbai and Paris. Through a preferential allotment,

BNP Paribas had taken 27% stake in Geojit, which will eventually increase to

34.35%. With this final step, the French banking major has become the

largest shareholder in Geojit Financial Services Limited. BNP Paribas has

one of the largest international banking networks with significant presence in

Asia and the United States. With presence in more than 85 countries the bank

has a headcount of more than 1,38,000.



Departments in the corporate office

Geojit financial services Ltd.

1. Depository

2. Client registration

3. Operations

4. Barjeel operations

5. Nline operations

6. Customer care center

7. Portfolio management services

8. Risk and settlement

9. Systems and MIS

10.Distribution

11.Legal and compliance

12.Finance

13.Human resources

14.Administration

15.Corporate communications

16.Secretariat



Geojit commodities Ltd

1. Operations

2. Research

3. Risk

4. Finance

5. Administration

6. Distribution

Geojit credits Ltd.

1. Operations

2. Finance

Geojit technologies Ltd.

1. Software development –Broking Business

2. Software development-Shipping Business

3. Software development – Overseas

4. Online Trading Products and Services



Company Memberships

Geojit is Member of

National Stock Exchange of India Ltd. (NSE)

Bombay Stock Exchange Ltd. (BSE)

Multi-Commodity Exchange of India (MCX)

National Commodity and Derivatives Exchange of India Ltd. (NCDEX)

National Multi- commodity Exchange of India Ltd. (NMCE)

National Securities Depository Limited(NSDL)

Central Depository Services Ltd.(CDSL)

India Pepper and Spice Trade Association(IPSTA)

Singapore Commodity Exchange(SICOM)

Dubai Gold Commodity Exchange (DGCX)

Geojit Financial Services Ltd is a DEBI Registered Portfolio Manager

Geojit Credits Pvt. Ltd; is a registered Non-Banking Finance Company(NBFC)

with RBI



Key Managers

Mr. C.J. George Managing Director

Mr. Satish Menon Chief Operating Officer

Mr. Binoy .V. Samuel Chief Financial officer

Mr. A.Balakrishnan Chief Technology Officer

Mrs. Jaya Jacob Alexander Chief Human Resources

Mr. K. Venkitesh Head (Distribution)

Mr. C.P. Krishnan Sr. VP (Commodities)

Ms.Farzana KhanVP (online Products, Services &

Operations)

Mr. M. Balachandran VP (Credits)

Mr. Sanil Kumar K.V. AVP (Chennai)

Company Publications

Geodata – Monthly

Barjeel Market Digest –Monthly

Online Research reports for the use of employees

Research reports to daily newspapers in Malayalam and English

GEOJIT BNP PARIBAS



March 13th 2007 will remain etched in the annals of the history of Geojit BNP

Paribas financial Services Ltd. It was on this day that two entities from across the

globe tied knots with the aim of providing a strong Trading and distribution platform

for the investors in India and abroad. BNP Paribas, Paris based international banking

giant.

BNP Paribas

The manger of two companies BNP and Paribas on May 23 rd 2000, resulted in

BNP Paribas, the French Banking Major.

On BNP Group

No. of employees: 1, 40,000 as on 31st December 2006, working in 85 countries

Core Businesses of the Group:

o Retail Banking (France, Europe, North Africa & Middle East, US)

o Corporate & Investment Banking

o Asset Management & Services



1. Private Banking: Nr1 in France, Nr 3 in western Europe, Nr 7 in Asia

2. Mutual Funds: Euros 326 Bn under management (1793000 Cr

Rupees)

3. Life Insurance: Nr. For ULIPs in France, Nr2 World wide for Creditor

Insurance

4. Securities Services: Nr1 in France & Europe, Nr 5 world wide, Euro 3

614Bn under custody (12/06)

5. Online Brokerage & Distribution: 1.1 Million clients, Nr 1 in Europe

Key financials:

1. Net Banking Income Jan- Dec2006 – Euros 28 Bn (Rs. 1,54,000

Crores)

2. Net Profit –Euros 7.3 Bn (Rs. 40,150 Crores) (2006-07 SBI profit was

only 6620 Crores and ICICI Bank was 3110 Crores



Awards and Rankings:

o Ranks 17th amongst the worlds 2000 largest Companies,6th in the Banking

sector and 1st in the Euro Zone by sales, profits, assets and market value-

Survey by Forbes Magazine.

o Ranks 34th among the global 500 firms by revenue – Survey by Fortune

Magazine

o Ranks 3rd in the top 30 french Brands after Louis Vuittion and L’oreal

Presence in India since 1860 and is mainly active in:

Corporate &Investment Banking

Private Banking

Through joint Ventures

o SBI Life (JV between SBI and Cardiff a full subsidiary of BNP Paribas)

o Sundaram BNP Paribas AM

o Geojit BNP Paribas

o Sundaram BNP Paribas Home Loans (agreement signed in May 2007 still

subject to regulatory approvals)



GEOJIT ANTHEM

DRIVEN BY TRUST

“With trust, our driving force,

Transparent in daily chores,

Passionate, compassionate,

We keep Geojit on course

Respectful of our call

We care for our patrons’ all.

Grateful for our growth before

We seek blessings to grow tall

** Shanti ho baraabar Shakti ho

Sayyam, Samriddhi, Swaasthya ho,

Geojit Jahaan ho!

Expanding far and wide,

And serving the world with pride,

Loyalty, inspiring us

To go beyond the high tide;

A brighter world to make

Unfurling the flag we take;

“All for one and ne for all,”

With love to last above al.



CHAPTER-4

DATA ANALYSIS AND INTERPRETATION



ANALYSIS

ANALYSIS OF THE TURNOVER

TABLE NO: 1

Turnover details of Geojit in third quarter of 2007-08

MONTH

NSE trade

volume

NSE

Brokerage

BSE Trade

volume

BSE

Brokerage

F&O Trade

volume

F&O

Brokerage

Total

turn

over

NO. of

clients

traded

October 53617327 167452 35677909 91095 212356687 78253 336800 132

November 63312250 189912 34480464 107696 80839644 27600 325208 195

December 79605590 194189 31060155 61168 85621037 26944 290301 174



CHART NO: 1

Octobar November December

336800

325208

290301

Total turnover



CHART NO: 2

Percentage of income from NSE, BSE& F&O in third quarter.

50%

27%

23%

NSE BrokerageBSE BrokerageF&O Brokerage



INTERPRETATION:

From the above table it is clear that, from October to December the brokerage

income is almost steady for Geojit. The future and options trade volume is declined in

this period. Because of this the total turnover showed a decline trend. The BSE and

NSE trade volume increased in this period. Sensex shot up by 3000 points in this

period and touched 20000 mark at the end of December. The third quarter of 2007-08

financial year saw a less volatility in the share markets. We can see the turnover also

not volatile for this period.



TABLE NO: 2

Turnover details of Geojit in fourth quarter of 2007-

08

MONTH

NSE trade

volume

NSE

Brokerage

BSE Trade

volume

BSE

Brokerage

F&O Trade

volume

F&O

Brokerage

Total

turn

over

NO. of

clients

traded

January 83737820 194295 63875854 116180 94360009 33382 343857 207

February 31053344 50641 56473228 73543 12559859 4194 128379 122

March 81747975 120994 76129959 140969 8033724 3110 265073 179



CHART NO: 3

January February March

343857

128379

265073

Total turnover



CHART NO: 4

Percentage of income from NSE, BSE& F&O in third quarter.

57%34%

10%

NSE BrokerageBSE BrokerageF&O Brokerage



INTERPRETATION:

From the above table and graph it is clear that the turnover of the company was

highly volatile in the last quarter of the financial year 2007-08. This is because of the

high volatility in the share market. In January 10, 2008 Sensex reaches 21206.77 and

in March 31, 2008 Sensex close at15644. From January to February the income falls

62.66% and in March it was rose 106.47% compared to February.



CHART NO: 5

Octobar November December January February March

336800 325208290301

343857

128379

265073

Turnover from Oct.07-Mar.08



INTERPRETATION:

From the above graph which showing turnover of October 2007 to March

2008 we can identify the difference in two quarters. From October to December it was

shown a less variation because the market is less volatile. But in January to Mach

there is a high fluctuation. A 62.66% fall in February and a 106.47% rise in March.

This indicates the high fluctuations in the turnover because of the market volatility.



CHAPTER-5

FINDINGS AND CONCLUSIONS



FINDINGS

1. The volatility of the share market affects Geojit’s turnover.

2. The turnover was high volatile in fourth quarter compared to the third quarter.

3. In February 2008 the turnover is decreased 62.66% from January’s turnover.

4. In March there is 106.47% increase from February’s turnover.



CONCLUSION

As a part of my MBA programme, minor project undergone by me in Geojit

financial services Thrissur during the 3rd semester was very fruitful, apart from the

theoretical knowledge. Geojit financial service ltd is one of the major financial service

organizations. The study is done to analyze how far the volatility of share market

affects Geojit’s turnover. In the course of my study, I found that the turnover of Geojit

in the fourth quarter of 2007-08 was affected by the volatility of the share market.

During the study I understand that in a volatile market Geojit has the capacity to meet

the challenges and make use of the opportunities profitably.




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