Final Report Last

Equity Operation

This project is about analysing the current equity operations in Angel Broking Ltd and gathering software requirements for developing a web based system which would replace the existing system

Sourabh Chopra5/5/2011

A PROJECT FINAL REPORT

ON

“Equity Operations”

Submitted in Partial Fulfilment of the Requirement for the Award of the

Program of

PGPM

IN

Summer internship program

BY

SOURABH CHOPRA

(10BSP0791)

MUMBAI

Submitted to

PROF. Suresh Suralkar

DEPARTMENT OF

FINANCE

I B S

MUMBAI

(2010-2012)

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ACKNOWLEDGEMENT

I wish to express my sincere gratitude to innumerable people who have been associated with me throughout this project. I feel blessed to have the opportunity of expressing my hearty gratitude to the following personalities, without the help of whom my project would not have been possible.

Firstly , I would like to acknowledge my sincere thanks to Mr. Narendra Agarwal (AVP, Angel Broking Ltd, Mumbai), who gave me an opportunity to carry out this project.

I am grateful to my faculty guide Prof. Suresh Suralkar (Professor of Finance and Quantitative Methods, IBS MUMBAI) for the Summer Internship Project, for his regular guidance and support during the course of the project

I am also thankful to Ms. Rinki , Ms. Poonam (HOD, Angel Broking ) and the other staff members of Angel Broking ltd. for their continuous motivation throughout this program, which really helped me in completing this project.

Finally I want to thank all my internship colleagues for their constant co-operation, encouragement, help and support throughout the study without which this work would not have been possible.

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Table of ContentsINTRODUCTION.....................................................................................................................................8

KYC......................................................................................................................................................10

Introduction.....................................................................................................................................10

KYC – First point of contact for customer delight............................................................................10

KYC processes at Angel (CSO):.........................................................................................................10

Important points to be remembered.................................................................................................14

DEMAT/DP...........................................................................................................................................18

Introduction of Angle DP................................................................................................................18

Advantages of having DP A/C with Angel......................................................................................18

Different features of Angel’s DP.....................................................................................................20

Charges for Depository Services through CDSL W.E.F 01 JUL 2009‐ ‐ ................................................21

Points to be noted for Dematerialization of Shares..........................................................................21

Pay‐in shortage confirmation...........................................................................................................22

Auction Bills:..................................................................................................................................22

Corporate action:.............................................................................................................................23

BANKING OPERATION..........................................................................................................................24

1.Introduction..................................................................................................................................24

2. Banking operations at branches...................................................................................................24

2.1. Bank account opening:..........................................................................................................24

2.2. Collections:...........................................................................................................................24

2.3 Online funds Pay –In.............................................................................................................25

2.4. Bank reconciliation:..............................................................................................................26

2.5. Payments:.............................................................................................................................26

2.6. Online funds Payout for clients having accounts with HDFC & ICICI.................................26

2.7. Inter Segment Fund Transfer:...............................................................................................27

3. Cheque bouncing procedure:.......................................................................................................27

4. Essential reports to be viewed by the branches............................................................................27

4.1. Accounts Reports:.................................................................................................................27

4.2. Party Ledger:........................................................................................................................27

5. Process for requesting for a pay‐out............................................................................................28

Portfolio Management Services...........................................................................................................30

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Portfolio Management Services:......................................................................................................30

Portfolio Management Service (PMS) at Angel..............................................................................30

Key elements of Angel’s PMS.........................................................................................................30

PMS – Operational process flow.....................................................................................................30

Different products in PMS offered by Angel...................................................................................31

Angel – Oyster.............................................................................................................................31

Angel Blue-chip:.........................................................................................................................32

Angel – NRI................................................................................................................................32

Angel Growth..............................................................................................................................32

Angel Equities & Derivatives Fund.............................................................................................33

Fee structure:...................................................................................................................................33

PMS Operational Process at CSO:...................................................................................................34

Documents necessary for PMS........................................................................................................34

Mutual Funds (MF) & Initial Public Offer (IPO)....................................................................................35

Introduction.....................................................................................................................................35

Benefits of investing in Mutual Funds.............................................................................................36

Types and schemes of Mutual Funds...............................................................................................37

Mutual Fund Application Form Process Flow (CSO/Branch).........................................................38

Initial Public Offering (IPO)............................................................................................................38

PRE IPO PROCESSES...................................................................................................................38

Distributions of IPO Form...............................................................................................................39

Basic information of IPO to Branches.........................................................................................39

BRANCH VISITS:.................................................................................................................................40

Software Requirements Specification (SRS).........................................................................................42

1.Introduction..................................................................................................................................42

1.1 Purpose.................................................................................................................................42

1.2 Scope....................................................................................................................................42

1.3 Definitions, Acronyms, and Abbreviations.............................................................................42

2. The Overall Description...............................................................................................................43

2.1 Product Perspective...............................................................................................................43

2.2 Product Functions.................................................................................................................52

2.3 User Characteristics...............................................................................................................53

2.4 Constraints.............................................................................................................................54

2.5 Assumptions and Dependencies............................................................................................54

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2.6 Apportioning of Requirements..............................................................................................54

3. Specific Requirements.............................................................................................................55

3.1 External Interfaces.................................................................................................................55

3.2 Functions...............................................................................................................................59

3.3 Performance Requirements...................................................................................................59

3.4 Logical Database Requirements.............................................................................................60

3.5 Design Constraints.................................................................................................................60

3.6 Software System Attributes...................................................................................................61

Copyright and intellectual properties..............................................................................................62

REFERENCES:-......................................................................................................................................62

ANNEXURE:-........................................................................................................................................63

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INTRODUCTION

ABOUT THE COMPANY

Angel Group has emerged as one of the top retail stock broking houses in India, having

membership of BSE, NSE and the two leading Commodity Exchanges in the country i.e.

NCDEX & MCX. Angel Broking is registered as a Depository Participant with CDSL.

Angel Broking was promoted by Mr. Dinesh Thakkar (Chief Managing Director) in 1987; he

started his operations as a Sub-Broker from a small office in Dalal Street with just 3

employees and client base of 25.

Angel Broking focuses only on Retail (Individual) Broking and has its presence in 830 cities

across the nation comprising of 18 Regional Offices, 200 Branches and 5000 Sub-Brokers &

Business Associates serving up to 7, 00,000 retail clients.

Angel Broking aims at providing Personalized Service & Value for Money which are the key

competitive differentiators thereby their tag line is SERVICE TRULY PERSONALIZED, it

has:

3.7% of the Market Share in value terms

4,00,000 custodial accounts which accounts for 6% Market share

Top Retail Broking House

Average Daily Volume : 35000 million in Equity Broking

15000 million in Commodities

Vision

To provide best value for money to investors through innovative products, trading/

Investment strategies & state of the art technology & personalized services.

Business Philosophy

Ethical practices & transparency in all our dealings

Customers interest above our own

Always deliver what we promise

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Effective cost management

Values of the Company

Passion and Commitment

Service Orientation

Entrepreneurship

Quality Market

Team Work

Integrity

Core Business

BROKING WEALTH MANAGEMENT & DISTRIBUTION

Equity (BSE/NSE) Life Insurance (Birla Sun Life Insurance)

Commodities (NCDEX/MCX) Personal Loans (HDFC Bank)

Currency Trading (NSE/ MCX) Mutual Funds

E – Broking IPO Advisory

Portfolio Management Service

Competitors Differentiators

Pioneer in web enabled back office software

Generate client orders in 24-48 hours

One of the lowest Transaction charges

Lowest clients attrition rate of less than 0.5%

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The operation at Angel Broking Ltd are mainly divided into six parts KYC (Know Your Client), Banking , DP , Modification , PMS and Runsheet. It becomes very necessary to know these process well both at the branch and regional office level. Following is a explanation of the processes.

KYC

Introduction

Know Your Client, popularly known as KYC, is a process mandated by SEBI which basically relates to carrying out due diligence by the Stock/Commodity brokers and/or DP participants, while opening up any new account. Whenever any entity wants to open a new account, various details like name, address, financial details, bank account details etc. are required to be furnished and the documentary proof in respect of such details is also required.

KYC – First point of contact for customer delight

With the main focus on Quality Assurance at Angel, and in the quest to provide Service Truly Personalized leading to Customer Delight for all clients and the investors, this Branch Manual includes brief details of KYC and requirements of documentation for the same, and is designed to help all our Branches. It is expected that this content, besides providing preliminary guidelines, would reduce the objections in the KYC applications at CSO. Thus, it would lead to administrative convenience and faster service to the clients associated with Angel, which in turn will result in Customer Delight at from the first point of contact.

KYC processes at Angel (CSO):Receipt of the KYC given to branches: On an average, 750 forms are received every day by the KYC department. Here the name of client, branch and sub‐broker information is first entered in the server from branch end and after the approval of CSO checker the same data would be approved by CSO, so that the branches (at their end) can check that the forms are received by the KYC department and approval of the inward entry done at CSO level.

Verification of Documents: The proofs submitted are matched with the information given by the client on the forms. If the information does not match, the registration form is put in objection.

Allotment of code: A specific and unique client code is selected according to norms of Angel and is written on the form. Here, the client can also mention any specific numbers he wants in his code.

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Checking of the PAN number: The client code is generated on the server and again the client information is verified. The PAN number is also checked with the income‐tax site. If the details match, then the form is forwarded; otherwise it is put in objection.

Back Office Software: The client details are entered in the back office software.

Verification in back office: The back office data entry is again verified and approved to ensure if everything is correct.

Uploading on server: The client information is uploaded on the server and again an approval is given only after the information is cross checked on the server. Here the information can be edited. Once the approval is given, no information can be edited after that.

Franking: The client’s form is then franked and details are filled in the form and checked. The franking charges (Rs100) are debited to the client’s account.

Scanning: Scanning and filling of all the documents and forms of the client is done and then kept in folders, which are arranged serial wise.

Documents required:

1.1 Having a pan card is mandatory for all the a/c opening entities.Checklist for individual clients – KYCPermanent Address:(Note: Proof submitted by client must contain residential portion & the same should be legible & reflected on the form).Valid Passport.Voter ID.Valid Driving License.Bank Pass Book (with bank attestation & seal or on a bank letter head).Ration Card.Latest (two month) Telephone Bill.Latest (two month) Electricity Bill.

Letterhead of EmployerAddress proof on employer’s letterhead is not a valid address proof.In case of married women, Marriage Certificate & Old permanent address &Document in name of Husband (Driving License, Passport copy, previous year’s I.T return).Correspondence address:(Note: Only correspondence address is not valid / permanent address should also be there)All the proofs mentioned in permanent address proofs are valid as correspondence address.Rent agreement ‐ Notarised Copy only for Correspondence.

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Note: The above Proof of Address should be in the name of CLIENT ONLYBank proof:Passbook should be printed with bank logo on it.If hand written, then bank stamp is required on it or /and cancel cheque with printedname & account number on it.

Demat proof:Client should be first holder in Demat a/c.Client Name, DP id & client id should be printed and visible with DP logo on it.Important for DP KYCThe DP KYC form should be filled up in CAPITAL letters only.PAN Card must be compulsorily obtained for all categories of BO Accounts.The account‐holder name should be same as in the PAN card.Please ensure that information like Telephone no, Pin code, Occupation, Category,residential status, income details, date of birth, other broker details, e‐mail addressetc. are properly mentioned.All the holders should sign across the photograph.If there is any correction in the form, all holders should sign it.Ensure all the holders sign in all the relevant places.

For details which are not relevant to a client, “N.A.” should be mentioned in DP KYC forms. The witness signature should be there in a) POA agreement b) Client and DP agreement c) Nomination form. The nominee details part of the form should be duly filled.

The first 2 pages of DP KYC forms should be photocopied and kept in a file for your record.For HUF clients a) Karta stamp required with signature b) HUF agreement/Deed copyc) Details of family members/coparceners

For Minor clients a) Birth certificate b) Proof of address and identity of guardian. For NRI/NRO clients a) foreign address and RBI approval date b) Attested copy of PIS letter.

For Proof of Identity, either of following documents can be furnished a) Passportb) PAN card with photograph c) Voters ID d) Driving License. Apart from this, branch can consult the CSO for any other eligible/valid proof

For Proof of Residence, either of following documents can be furnished a) Passport b) Voters ID c) Driving License d) Bank passbook e) Ration card f) Electricity or Telephone bill (not more than 2 months old). Apart from this, branch can consult the CSO for any other eligible/valid proof.

The identity of the person who intends to open a DP a/c needs to be verified in person and a stamp stating ‘Identity verified in person’ needs to be affixed on the KYC form. In case this

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activity is carried out by sub‐brokers / franchisees / business associates, then an authorization letter needs to be issued to them. POA (auto paying) agreement is mandatory in all types of account.

1.2. Checklist for individual clients: For opening DP a/cThe DP form should be filled up in CAPITAL letters only and black ink only Please ensure that information likes Telephone no, Pin code, Occupation, category, residential status, income details, date of Birth, other bank details, e‐mail address etc. is properly mentioned. Ensure all the holders sign in all the relevant places on the DP form with black ink only. For details which are not relevant to a client, ‘N.A.” should be mentioned in the DP forms.

The witness name, address, signature should be there in a) POA agreement b) Client DP agreement c) Nomination form. The first 2 pages of DP forms should be photocopied and kept in a file for your record. The account‐holder name should match with all the proofs provided.

1.3. Checklist for HUF client: For KYC and DP a/c openingPhoto copy of HUF PAN Card needed to open trading a/c in HUF status and a PAN card copy of Karta is mandatory to open a HUF account. Rubber stamp required wherever signature appears.For HUF clients, HUF family Declaration is required along with the PAN card of Karta. HUF status should be mentioned in the Bank & Demat A/C. POA (auto paying) agreement page should be duly signed by all the co‐partners.

1.4. Checklist for partnership firms: Copy of Partnership Deed. Copy of Pan Card of Partnership Firm & all partners. Bank Statement of Partnership firm & Dominating Partner (51 % sharing). Demat Proof of Dominating Partner (Highest 51% Sharing) or joint account of Partners whose jointly holding should be more than 51%). Undertaking letter is required if the partner has the lowest percentage and wants to operate the partnership account e.g. C (in case A–50%, B–30%, C–

20%),

Copy of Residence Proof of all partners along with photograph of all the partners. (Separate photo page for each segment). All Signature(s) of the Client must be sealed with the stamp of the Partnership Firm.

1.5. Checklist for proprietor:

Rubber stamp required where ever signature appears. BANK PROOF (Bank proof shouldbe in the name of the firm). All other proofs & details same as individuals.

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1.6. Checklist for a Limited Company: For opening KYC & DP a/c Copy of PAN card of the company. PAN card copy + residence proof & Details of Promoters / Partners /Key managerial Personnel of the Company/Firm in specified format. Bank and Depository Account Details of company. Copies of the balance sheet for the last 2 financial years (copies of annual balance

sheet to be submitted every year).

Last two years IT returns (if the company is newly formed, then NETWORTH certificate of the company is required on original letterhead of the C.A. & it should be duly attested by C.A).

Copy of latest share‐holding pattern including list of all those holding more than 5% in the share capital of the company, duly certified by the Company Secretary/ Whole time Director/MD (Copy of updated shareholding pattern to be submitted every year). Certified True Copies of the Memorandum and Articles of Association. If not as per MOA, form 32 is required. Copy of the Resolution of board of directors' approving participation in equity / derivatives / debt trading and naming authorized persons for dealing in securities. Photographs of Whole time directors / Authorized persons / individual promoters holding 5% or more, either directly or indirectly, in the shareholding of the company and of persons authorized to deal in securities. If registered with any other broker, then the name of broker and concerned Stock exchange and Client Code Number.

1.7. Check list for NRIs: For KYC & DP a/c Photocopy of PAN card copy is required. Must have separate client codes for NRE A/C and NRO A/C of NRI clients. For Proof of residence – Passport copy. Copy of Power of Authority (POA) issued in favour of the person who will act on

behalf of NRI along with proof of identity of POA holder (if applicable).

Demat Account proof. Local address for communication (if any). For NRE/NRO clients a) foreign address and RBI approval date b) Compulsory PIS

letter from bank.

All the documents should be self‐attested by the client and stamped, wherever required.and no NRI account will be opened without obtaining the PIS letter (Issued by the bank)from the client.

Important points to be rememberedTRIPARTITE AGREEMENT ‐grey in colour ‐ at the end of the KYC form, and is to be fill up by a registered sub broker only, & signed by the client & the sub broker. Please ensure that information like telephone no, pin code, email address, occupation, category, residential status, income details, date of birth, other bank details etc. is properly mentioned.

While sending client registration form to CSO, kindly ensure that all the segments of client registration form are kept together and are sent with a covering letter with all the details in it

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for each client. Ex: branch SB tag, client name, segments & sign of the KYC person of the branch. Do not dispatch any other document not related KYC with client registrationform. Ex: client cheque, documents address for other departments.

For changes in client details in the back office: Provide (last 2 months) clear, visible proof and it should be in client’s name only, and it should contain the client’s Branch and SB tag (stamp) including the client code.It has been noticed that trades take place under the codes, which are not open in the respective segments. This creates a mismatch in the trade file and the updating gets delayed and is hampered by such codes.For instance the mismatch happens due to following reasons:• Punching error from the dealer’s end.• Account open in one segment and traded where not opened. Ex: A code is opened ONLY in BSE Cash but traded in Futures and Options.• No code exists at Angel but traded and/or the code is of another branch. General

Stamp In case of Partnership or Proprietorship accounts, Client should not affix any‐ rubber stamp of the Firm’s name on DP AOF.

Affidavit ‐ In case of any kind of name mismatches, affidavit would not be accepted. Only an additional/alternate identity proof can be accepted for minor mismatch such as Pramitaand Prameeta. In case of major mismatch in name such as Mina and Tina, both are two different names and in such case the document submitted has to be rectified.

Agreement date Date should not be affixed on any agreement page of AOF. The‐ samewill be stamped at CSO only.

In person verification In person verification stamp of ABL employee should be‐ ‐ affixedadjacent to the photograph in DP AOF.

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Accepting form at branch office

NO

YES

NO

YES

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Scrutiny of Documents

VERIFIED

Receive form at regional office

Verification of form and document

VERIFIED

Receive scanned copy of form at Hyderabad

VERIFIED NO

YES

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Receive hard copy at Hyderabad

VERIFIED

Generation of client code

Account activated

A

A

DEMAT/DP

Introduction of Angle DP Angel provides its DP services through CDSL.

The depository services are offered to create a seamless transaction platform to execute Trades through the Angel Group of Companies and to settle these transactions through Angel Depository Services.

As a DP, we have always worked to anticipate and full fill the changing needs of ourEsteemed customers.

Our efforts in this direction have gradually started Paying off, as we have grown by leaps And bounds, and have been able to provide DP services to 3, 10,000 clients spread over 119 branches.

Initiatives like strict adherence to compliances, ethical business practices, pro‐activeServices and innovative products have helped us to stand tall amongst our competitors.

With the help of steady growth in the investor base, we are able to service our DP clients’ At the most competitive rates.

We aim to continually serve our clients’ needs by providing quality services in a timely Fashion at cost effective rates.

Advantages of having DP A/C with Angel

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The channel partners during the course of interaction with existing or prospective clients should highlight the benefits of holding DP services with Angel which are as given below:

Angel is in a better position to know the requirements of its clients on an instant basis.

No physical instructions are required for client’s selling obligations – as we provideautomated pay‐in facility to our clients for trades done through Angel BrokingLimited/Angel Capital & Debt Market Ltd. (POA)

The transaction charges are the lowest in the industry and have been kept so to ensurethat our clients get more value for their money.

We provide the clients with options which have unique features like:‐

Viewing, downloading and printing the holdings of the Demat account along with valuation of holding on a real time basis. This facility can be accessed anytime/anywhere and is sourced directly from the CDSL database, if you subscribe to the Easy facility offered by CDSL.

SMART (SMS Alerts Related to Transactions) is CDSL's SMS alert facility in which registered clients will receive alerts for all types of debits and for credits due to IPO allotments and corporate actions in their Demat account. Thus, SMART acts as an effective risk control mechanism for monitoring the Demat account for the client

On subscription to Easiest offered by CDSL the client can submit his own deliveryinstructions on the internet without the intervention of his DP. Thus gets the leverage of delivering his own instruction at his leisure from anywhere.

Following are some of the important reports mentioned below which can be viewed by the clients:i. Pay‐in & Pay‐out shortage reportii. Report of Holding, Ledger & transaction in Demat and Trading A/ciii. Client profileiv. Settlement Calendarv. ISIN Master Etc.

Further, the clients can download the DP form formats e.g. Account Modification, SMS facility form etc.

directly from our website www.angeltrade.com under Depository services > Download DP forms.

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Different features of Angel’s DP

No risk of loss, wrong transfer, mutilation or theft of share certificates.

Efficient Demat mechanism.

Hassle‐free automated pay‐in of sell obligation by the Clearing Member.

Reduced paper work.

Speedier settlement process. Increase in liquidity of your securities because of fastertransfer and registration of securities in Client’s account.

On‐time disbursement of non‐cash benefits like bonus and rights into client’s own account.

Efficient pledge mechanism.

Wide Branch coverage.

Personalized / attentive services of a trained Help Desk.

Centralized billing & accounting.

All in one combined monthly ‘Bill‐cum‐Transaction‐Cum‐Holding‐cum‐Ledger’ statement.

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Charges for Depository Services through CDSL W.E.F 01 JUL 2009‐ ‐

Points to be noted for Dematerialization of Shares Ensure that only the scrip’s eligible for Dematerialization are sent to CSO for further

processing. The details of the scrip’s which are under Demat are available in the cross‐net as well as on www.cdslindia.com .

Before dispatch, ensure that the DRF copies sent to CSO are filled in completely and signed by all accountholders.

Verify the account holder’s signature with our DP system‐ Cross Net.

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In case of HUF / Corporate accounts, kindly ensure the seal of HUF / Corporate is there on DRF.

Ensure that the name appearing on the certificate surrendered for Demat is in the sameorder as appearing in the DP account.

Online tracking and In-warding of DRF

Verification of Client Signature from DRF link

Verification of Vanishing company details from DRF link

Maintenance dispatch details to CSO

This will help branches to reduce their dependency on CSO for follow up calls and will also enhance efficiency at branch end. We have attached the detailed process flow for ready reference of branches

Pay‐in shortage confirmationThe Pay‐in shortage file can be viewed in the Back office software on navigating throughthe below mentioned process on T+1 day after 11:00am and 3:00pm and 9:00pm on T+2day respectively.

The shortage confirmation must be conveyed to the clients by the Branch or the SBproactively to avoid any losses to the clients.

Pay‐out of shares and shortage confirmation: Pay‐out of securities are received from the Clearing House on T+2 days in Angel’s

pool account, from where it is shifted to Angel’s beneficiary account where it is held client‐wise.

Securities held in Angel’s beneficiary account can be transferred to client’s DP account on request.

For this purpose, the Branch or the SB has to mark a pay‐out of shares in our back‐office.

The shortage confirmation must be conveyed to the clients by the Branch or the SBproactively to avoid any losses to the clients.

The pay‐out shortage report can be checked after 3:00pm on T+2 day and after 11:30pm on T+3 day

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Auction Bills:The printouts of the Auction bills can be taken from the following:Links:• Shares Reports > Printing > BSE Contract cum Bill V2• Shares Reports > Printing > NSE Contract cum Bill V2

The timelines for the branch to print Auction bills and intimate clients are as follows:• Internal Auction ‐ Bill needs be checked after 9.00 am on T+3 day (BSE)

• Market Auction ‐ Bill needs be checked after 4.00 pm on T+3 day (BSE)

• Internal Auction ‐ Bill needs be checked after 9.00 am on T+3 day (NSE)

• Market Auction ‐ Bill needs be checked after 9.00 am on T+4 day (NSE)

Points-The CSO team would ‘by default’ release the shares of clients from Margin account basedon clients selling & shortage position on t+1 day and shall not wait for branch communication.

Any additional shares transferred by clients from outside DP account for ‘Pay‐in’ would stand to the credit of clients or would get adjusted against the shortage of another client. In this scenario, the client who has transferred excess shares would get close out @ 7%. This effectively means that clients need not transfer shares from outside DP if they have the required quantities of shares in our Margin account to meet their selling obligation.

Now, if clients wish to transfer shares from outside DP account and does not want CSO to touch shares lying in Margin account, then a communication to this effect needs to be sent to CSO before 11.30 a.m. on ‘T+1’ day.

However, branch executives continue to inform to CSO for release of shares in following exceptional situations like, if Shares are held under ‘Sub Broker Tag’,

If shares are sold on the same day of transfer to margin account. Though this is not advisable as shares requested for transfer to margin account shall not be sold for next 3 working days. The Pay‐in in such situation would be met by CSO on a best effort basis and shall be at clients own risk. We strictly solicit that shares requested for transfer to margin account shall not be sold for next 2‐3 working days.

If shares are sold and client is under ‘Shifting Mode’‐ Client Shifting from one tag toanother or from one branch to another.

Corporate action: Splits, dividends, mergers, acquisitions, rights, buy back are all examples of corporateactions.

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Ex‐date – The date on which security trades without the benefit of a corporate action.

Record date ‐ The date on which the company (RTA) proposes to determine the holders who are entitled to receive the benefit of corporate action.

The Branches should verifying Corporate Action Report link and mark pay‐out after checking the clients’ ledger Debit/Credit before the record date and take extra care for timely submission of client’s DIS for corporate action. The client’s having shares in our beneficiary account needs to be informed on Rights / Buyback as per list provided from CSO

In case Rights/Buy Back confirmation letters from clients needs to be acquired and maintained at the branches.

BANKING OPERATION

1.IntroductionThe ensuing pages contain a list of procedures which should be followed by the Branches in relation to Banking Operations. The employees of the Branches are expected to ensure compliance with these laid down procedures. Any deviation from the laid‐down procedures

would require prior authorization of the Head of Operations ‐ CSO. In order to ensure compliance with these procedures it is paramount that the employees of the branch understand the functioning of the Back office software, with reference to banking operations.

Hence we also present herewith the functioning of Web‐enabled Centralized Software, which would help in ensuring compliance with the procedures.

The various steps by which a Branch can access the Web enabled back office Software are also explained. Every Branch is first and foremost allocated a unique User Id and Password that is private, confidential and distinctive. The Branch can thus access the Back Office Software at any time desired by it, as the software is accessible 24 Hours a Day, 7 Days a Week.

2. Banking operations at branches

2.1. Bank account opening:In case local branch of existing bank is not present in the area of Angel’s branch, then that branch should recommend local Bank having strong presence in their location, co‐ordinate the account opening process with Bank and CSO to ensure speedy opening of the Account.

2.2. Collections:On receipt of Cheques from Clients/Sub‐brokers:

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• Ensure that Client Details have been mentioned at the back of the Cheque.• Promptly pass receipt entries in the system for Cheques received .

• Duly number the Pay‐in Slip and save it date wise. (On request from the CSO, promptly submit a copy of the same.)• Bank Cheques in High value clearing, wherever applicable.• Promptly deposit the Cheques in the Bank. (Cheques received from clients should be deposited only in Client Bank account).• Ensure that Post‐dated cheques & Blank cheques from clients are noted separately and reviewed by a responsible person. The same should be kept under lock and key.• Ensure that all 3rd party cheques received are backed up by the necessary authorisation.• For Pay Orders, verification is required to see if they are made from client’s account only.

Instruct Sub‐brokers, who are directly depositing Cheques in the Bank, to promptly intimate

the Branch of the same, and submit the deposit slips with the branch or e‐mail the details in prescribed format

2.3 Online funds Pay –In

What is online funds pay‐in:Client logs into Angel Website à goes to Funds – Funds Pay In à Enters Amount à SelectsSegment à Submits à Selects bank where he has a/c from drop down à Submits à Logs intobank internet site using his ID/Pwd à Continue/Confirms transaction à Acknowledgement ofpayment from Angel website.

Process at CSO:Every 15 minutes pay‐in banking team downloads client fund transfer data and posts theentry in client ledger. In case of query/issue, CSO will coordinate with vendor and resolvethe issue.

Benefit to Angel:1. Money comes into Angel real time – there is no cheque deposit/return, clearing time,cost of collection etc2. Credit is given to customer real time3. There is no Reversal issue for the client

In case of Cheque Return of Party:• Prepare list of Client‐Wise Cheque Returns and monitor the recovery.• Follow “Guidelines to deal with cases of Clients defaults” as per BranchCompliance Manual.

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Squaring ‐off process, where collections are not coming‐in, to be adhered to, with proper procedures and documents.Where clients are maintaining a running account, it should periodically reach zero level. Monitoring required.Monthly confirmation of running account must be obtained from clients.

2.4. Bank reconciliation:In case a Branch has authority to make entry in the Bank Book, ensure that:• Bank Books have been updated daily.• Bank Reconciliation has been completed daily.• Queries/Pending issues on Bank Reconciliation has been resolved promptly and pending queries followed up promptly.• In respect of Local Bank:

All bank statements up to previous month have been received / collected from the Local Bank, preserve copy at branch and promptly submit original to CSO. Check ‘Suspense Reco’ in Back office daily, follow up and update Client details for Cheques deposited by the branch /sub‐broker and the entries lying in the suspense a/c due to some error. Ensure compliance with Internal Circular on Bank Reconciliation Policy.

2.5. Payments: Ensure that the payout is marked only after ascertaining clients’ risk & position.

Ensure that all marking for pay‐out of funds is done within the stipulated time, i.e. 10.00 am to 1.30 pm (for pay order /DD) and 10.00 am to 2.30 pm (for cheques and manual requests).

Branch should ascertain clients’ risk & position before payout cheques are to be released / delivered.

On receipt of Client’s payout Cheques from Banks/CSO, hand over to the clients/sub‐brokers as soon as possible.

All stale cheques have to be cancelled and promptly sent to CSO.

2.6. Online funds Payout for clients having accounts with HDFC & ICICISalient features of online payout:

Reduced time of credit of payout amount – clearing time eliminated Client need not go to the bank to deposit payout cheques Extended time for marking payout – up to 4.30 AM for same day credit Client can mark payout at his convenience

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Online Acknowledgement of payout marking Acknowledgement on email on payout marking and also in case the payout

amount has changed due to position taken by client post marking payout Completely automated process Branch need not prepare and send excel sheets in specific formats for online transfers

of payout

2.7. Inter Segment Fund Transfer: Send Fund Transfer requests to CSO via E‐mail/Fax in the specified format , ensure

CC has been sent to RM, Accounts and relevant Branch Head.

Fax/Courier duly signed Consent Letters to the CSO for Fund Transfer requests above Rs.300,000/‐ and for transfers within Family member accounts.

Preserve all original Consent Letters at the Branches, so that the original copy can be retrieved whenever required.

Ensure Compliance with Internal circular on Inter Segment Fund Transfers.

3. Cheque bouncing procedure: Legal notice to a client, for a cheque bouncing case, is sent from the Legal

Department at CSO. For a Legal notice to be sent, the following steps are to be followed:

The Cheque and the Bank memo in original have to be sent to the Legal Department, CSO.

If the cheque is already with CSO, proper instructions along with all details of the client and the cheque have to be sent to CSO.

The Legal notice has to be sent within 30 days of Bank memo. In case the memo has become more than 30 days old, the cheque has to be presented

again in order to get a fresh Bank Memo. The branch has to inform CSO about the progress made with the client after issuance

of the notice. Also, a legal case will be filed in the courts only after the branch has requested for the same.

4. Essential reports to be viewed by the branches

4.1. Accounts Reports:i) Cash Book: To view the petty cash entries pertaining to respective branches.ii) Bank Book: To view the collection/payments made by/to clients for each individual Branch. iii) General Ledger: To view the SB/client deposit (05/30 series respectively) for each individual branch.

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4.2. Party Ledger:To view the details of the transactions done by the clients i.e. collection, payment, bills and JV’s (for each individual branch).

5. Process for requesting for a pay‐outThere are two methods for requesting for a pay‐out:

i) Through CMS: The branch can mark a pay‐out request through the link ‘cheque pay‐out marking’ under the RM link.

ii) Manual Request: This request should be made in the format given.

iii) Online funds Pay out for clients having accounts with HDFC & ICICI Bank:Salient features of online payout:

Reduced time of credit of payout amount – clearing time eliminated Client need not go to the bank to deposit payout cheques Extended time for marking payout – up to 4.30 AM for same day credit Client can mark payout at his convenience Online Acknowledgement of payout marking Acknowledgement on email on payout marking and also in case the payout amount

has changed due to position taken by client post marking payout Completely automated process Branch need not prepare and send excel sheets in specific formats for online

Transfers of payout

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BANKING OPEARTION FLOWCHART

YESYES NO

YES NO

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CLIENT SUBMITS THE CHEQUES

SEND TO RO

FILL THE CMS SLIP AND UPDATE THE MIS

AMOUNT DEPOSITED IN SUSPICIOUS ACC

SEND TO RO

IN BRANCH?

DEPOSIT THE CHEQUE IN THE BANK

CREDIT TO CLIENTS ACCOUNT THE CHEQUE AMT

REVERT CREDITED AMOUNT AND GENRATE ERROR

UPDATE THE MIS

CHEQUE PASSED?

SUBMIT PAY SLIP , PASS BOOK

VERIFY THE DOCUMENT AND UPDATE CMS

AMOUNT CREDITED TO CLIENT A/C

Modification Process :

MODIFICATION PROCESS FLOW CHART

NO

YES

NO YES

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RECEIVE MODIFICATION REQUEST FROM BRANCHES AT RO

VERIFY THE REQUIRED DOCUMENTS

SEND THE DOCUMENTS TO THE CSO FOR RE-VERIFICATION

PROCESS THE REQUEST AT RO

UPADATE THE MIS

VERIFIED

VERIFIED

DO THE MODIFICTAION AND UPDATE THE MIS

CRITICAL AND NON-CRITICAL MODIFICATIONS

CRITICALACTIVITY

NON CRITICAL ACTIVITY

DP Addition Customer address

Power of attorney(POA)

Mobile number

Bank Mapping Email id

RTGS Nominee transfer

Closing of account Account type

Branch transfer Electronic contract note(ECN)

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Signature

Name change

Future and option

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Portfolio Management Services

Portfolio Management Services:Managing a portfolio of Investments can be time‐consuming. If one doesn’t have much time or desire, hiring a professional may be more appropriate.

Portfolio Management Services (PMS) to investors assists them in managing their Investments amidst changing market dynamics and increasing complexities of investing.

Portfolio Management includes:• Personalized Service.• Interaction with Fund Manager.• Regular Feedback and Reports.• Pro‐active Management of Funds.• Holdings not impacted by entry/exit of big Investors.• Can remain liquid (not‐invested) for long periods.

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Portfolio Management Service (PMS) at AngelAngel’s PMS provides Discretionary Portfolio Management Services Follows a disciplined Investment Process. Adheres to quality Investments. Limiting any risks associated with Investments. Provides low Portfolio Turnover (no trading). Focus on generating Absolute Returns rather than Relative Returns.

Investment Philosophy:Angel’s Investment Philosophy is based on two important attributes:• Capital Preservation• Wealth CreationOur objective, at all times, is to protect and then expand the client’s Portfolio.

Key elements of Angel’s PMS Bottom‐up Stock Selection.

In‐depth, independent Fundamental Research.

High‐quality companies with sustainable competitive advantages. Focus on companies with a certain size & scale. Disciplined valuation approach, applying multiple valuation measures. Medium to Long‐term vision, resulting in low portfolio turnover.

PMS – Operational process flow

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Different products in PMS offered by AngelThe five products offered by Angel’s PMS are:1) Angel Oyster2) Angel Bluechip3) Angel NRI4) Angel Growth5) Angel Equity & Derivatives Fund

Angel – OysterBottom‐ up concentrated portfolio, with emphasis on Value Investing.

Objective:To generate Wealth on a consistent basis, rather than outperform by taking higher risk. Early identification of stock, to ride through the entire Investment Cycle.

Investment strategy:A blend of Value and Growth stocks. Ensuring a balanced Portfolio, with a relatively medium risk profile.

Investor profile:Safety of Capital is of utmost importance. The scheme would be suited for Investors having a long term perspective.

Angel Blue-chip:Bottom‐up concentrated portfolio, with Emphasis on GARP (Growth at Reasonable Price).

Objective:

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The scheme will seek to achieve returns through broad‐based participation in equity markets, by creating a diversified equity portfolio of medium to large capitalized companies.

Investment strategy:Major proportion of large and medium capitalized stocks. Medium capitalized stocks not to exceed 25%. Sect oral exposure not to exceed 25%.

Investor profile:The scheme would be suited for investors with medium to low risk appetite, having long term perspective.

Angel – NRILong term upside of the INDIA Growth story, by diversifying across the major themes.

The Angel NRI:NRIs will have to open an NRE / NRO Savings Bank A/c at the appropriate designated branch by RBI. NRIs will have to open a Portfolio Investment Scheme (PIS) Account at the appropriate branch designated by RBI. In order to invest in the Secondary Markets in India, NRIs need to obtain RBI permission.

Angel GrowthThe objective of the scheme is to generate capital appreciation in the medium to long term through investments in equities and equity related instruments comprising of predominantly Mid‐Cap and Small‐Cap companies.

Investment strategy:Focus on growth themes such as Infrastructure, Services, Manufacturing & domestic consumption. Overweight on Mid‐Cap and Small‐Cap stocks. However quality Large‐ Cap stocks may also be considered for investment depending on market conditions. The scheme will seek to achieve returns through broad based participation in equity markets by creating a diversified equity portfolio. The portfolio will however, be overweight on Mid‐Cap and

Small‐Cap companies. Combination of Top‐Down & Bottom‐Up approaches. Portfolio to comprise of a combination of growth & value stocks

Parameters Driving Investment Decision:Over‐weight on Mid‐Cap and Small‐Cap stocks. However, quality Large‐ Cap stocks may also be considered for investment, depending on market conditions. Portfolio to comprise of a blend of growth & value stocks. However, the portfolio shall be overweight on growth stocks. The portfolio strives to limit the exposure to any one sector to less than 25% of the

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portfolio size. The portfolio strives to limit the exposure to any one stock to less than 10% of the portfolio size.

Investor profile:The scheme would be suited for investors with a moderate risk appetite. Recommended investment horizon is 15 to 18 months.

Angel Equities & Derivatives FundEquities & Derivatives:

Objective:To generate moderate returns by deployment into Equity assets and partially hedging the portfolio, using options and futures & achieving this with a margin of safety. Additionally the funds lying idle would be deployed in arbitrage between cash and future and /or placed in low maturity debt funds and low risk F&O Strategies.

Features:Investments would be in fundamentally strong large cap and Mid Cap companies having high liquidity in Options. Partial hedging of open positions would be done by writing options.

Investor profile:The scheme would be suited for investors with low to medium risk appetite, having a long term perspective. Suitable for HNI’s and Corporate, who want to park money for a consistent Return from the market, even if the market remains flat.

Fee structure:Two part fee structure:The following charges will be applicable.

1. Asset Management Fees: 2.00% per annum on daily average NAV & charged to the account on a quarterly basis.2. Brokerage: 0.5% per transaction + STT + other charges as applicable. Performance Fees: No profit sharing Returns calculated after accounting for all charges.

PMS Operational Process at CSO:Operational Process:

Clients fill the PMS ‐ KYC form. Form is verified by the department with all the necessary formalities. Data entered into the back office software. Form sent to the KYC department for the client code generation. After receiving the client code, the buying & selling on behalf of clients is done. Clients’ Welcome Letter is sent, along with the investor’s User ‐ Id & Password, by

mail.

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Documents necessary for PMS[All documents have to be self attested by clients]For individuals ‐ Indian residents:Address proofIdentity proofPAN card copy (all Holders)Latest Bank statements (1st Holder)PMS ‐ KYC form.Demat A/c Proof.

For HUF clientsSimilar documents as in the case of individuals (Karta’s Name):Declaration of all members by Karta

For NRI’sNRE / NRO Savings A/c detailsPIS account detailsTrading A/c (NSE / BSE) at ANGELDemat account proof at ANGELPassport copy of all the holdersCopy of VISA / IQAMA or any other permitPAN card of all the holders.

For corporateTrue copy of Memorandum & Articles of AssociationTrue copy of Board Resolution. (on Company’s letter head)Annual Reports with Profit & Loss A/c and Balance Sheet for last twoYearsIncome Tax Returns for last two YearsPAN Card – CompanyPAN Card – All Directors / Authorized SignatoriesLatest Bank Statements of the CompanyList of Shareholders holding ( > 5%)Form No. 32 (in case of change in Directors)

For partnership firm:Certified copy of the Partnership DeedPAN cards (Firm & Partners)Demat proof of the joint dominating partnerBank Statement of the firm & the dominating partner,

For trust:Trust DeedCertificate of Registration

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Pan Card of all TrusteesBank Proof of TrustAddress proof of TrustIncome Tax Returns of the trust for last two years.

Mutual Funds (MF) & Initial Public Offer (IPO)

IntroductionMutual Funds are funds operated by an investment company, which raises money from the public and invests in a group of assets (shares, debentures etc.), in accordance with a stated set of objectives. It is a substitute for those who are unable to invest directly in equities or debt because of resource, time or knowledge constraints.Mutual Fund is the common pool of money into which investors place the contributions that are to be invested in accordance to the stated objective.

In India, the mutual fund is constituted as a trust and the investor subscribes to the “units” issued by the fund.Mutual Funds are usually long term investment vehicles, though there are some categories of mutual funds, such as money market mutual funds which are short term instruments.

Benefits of investing in Mutual FundsThere are several benefits of investing in a Mutual Fund:

Small investments: Mutual funds help you to reap the benefit of returns, by a portfolio spread across a wide spectrum of companies with small investments.

Professional Fund Management: Professionals with considerable expertise, experience and resources manage the pool of money collected by a mutual fund. They thoroughly analyze the markets and economy to pick good investment opportunities.

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Diversification: An investor with limited funds might be able to invest in only one or two stocks/bonds, thus increasing his or her risk.However, a mutual fund will spread its risk by investing in a number of sound stocks or bonds. A fund normally invests in companies across a wide range of industries, so the risk is diversified.

Professional expertise: Fund managers in mutual funds are professionals who track the markets on a minute‐to‐minute basis. With their mix of professional qualifications and market knowledge, they are better placed than the average investor to understand the markets.

Transparency & Liquidity: Mutual Funds regularly provide investors with information on the value of their investments. Mutual Funds also provide complete portfolio disclosure of the investments made by various schemes and also the proportion invested in each asset type.

Choice & Convenience: The large number of Mutual Funds available in the market offers the investor a wide variety to choose from. An investor can pick up a scheme depending upon his risk/ return profile.

Relatively inexpensive: When compared to direct investments in the capital market, mutual funds cost less. This is due to savings in brokerage costs, demat costs, depository costs, etc.

Flexibility: Through features such as regular investment plans, regular withdrawal plans and dividend reinvestment plans, you can systematically invest or withdraw funds according to your needs and convenience. These are called Systematic Investment Plans (SIP) and Systematic Withdrawal Plans (SWP).

Regulations: The mutual funds are registered with SEBI and they function within the provisions of strict regulations designed to protect the interests of the investors.

Types and schemes of Mutual Funds

A) On the basis of Structure:1) Open‐ended funds: Open ended funds are ones that sell & repurchase units at all times. The Asset under management keeps fluctuating depends on investors buying or selling units. An AMC might stop selling units if the fund size becomes too big to manage. However repurchase of units is done at all times.2) Close‐ended funds: Close ended funds are one that makes a onetime sale of units. After the offer closes CEF’s do not let the investors buy directly from the fund. To provide liquidity to the investors, these funds are traded in the stock markets. Sometimes the fund house also offers buy backs at regular intervals.

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3) Interval funds: These funds combine the features of both open‐ended & close ended funds

wherein the funds is close‐ended for the first couple of years and open ended thereafter. Funds having fixed dates of buying and sales.

B) On the basis of Investment objective:1) Growth Funds/ Equity funds: Funds that invest in equity shares are called equity funds2) Income /Debt funds: These funds invest predominately in high‐rated fixed income‐bearing instruments like bonds, debentures, government securities, commercial paper and other money market instruments3) Balanced fund: These funds invest both in equity shares and fixed income bearing instruments (debt) in some proportion.4) Money Market funds / Liquid funds: These funds invest in high liquid money market instrument.

C) Special Schemes1) Index funds: These funds invest in the same pattern as popular market indices like S&P 500 and BSE index 2) Industry Specific scheme /Sectoral funds: These funds invest primarily in equity shares of companies in a particular business sector or industry.

D) Other Schemes:1) Diversified funds: These funds invest in companies spread across sectors.2) Tax saving funds: These funds offer tax benefits to investors under the Income Tax Act Sec 80c.3) Gilt funds: These funds invest in Central and State Government securities.4) Offshore funds: These funds facilitates cross border fund flow. They invest in securities of foreign companies. They attract foreign capital for investment.

Mutual Fund Application Form Process Flow (CSO/Branch)1) Form detail:a) Distribution information: Check for ARN 39242 number (39242 is Angels code) Mandatory.b) Sub‐agent code will be the employee code.Folio No.: If a client has already invested in any other fund scheme the same Folio no. can be entered and no need for documents. For fresh Investment all documents need to be enclosed.2) Application information: Details to be filled accordingly. In case of a minor investor the guardian details are mandatory.3) Mode of holding: Single/Joint/Anyone or survivor to be ticked accordingly. Cases where more than 1 application detail are filled and the mode of holding is not specified, it will be considered as joint by default.4) Status/Occupation: To be ticked accordingly.5) Application contact information: Address/Contact no. is mandatory.6) Bank account details: Account detail is mandatory.

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7) Scheme detail: To be ticked accordingly. In case if nothing is ticked, growth option will be by default selected.

Initial Public Offering (IPO)A corporate may raise capital in the primary market by way of an Initial Public Offer (IPO).An Initial Public Offer (IPO) is the selling of securities to the public in the primary market.It is the largest source of raising funds for the company to finance their expansion and further growth plans. Initial Public Offering (IPO) is when an unlisted company makes either a fresh issue of securities or an offer for sale of its existing securities or both for the first time to the public. This paves the way for listing and trading of the issuer’s securities.The sale of securities can be either through book‐building or through normal public issue.Book Building is basically a process used in Initial Public Offer (IPO) for efficient price discovery. It is a mechanism where, during the period for which the IPO is open, bids are collected from investors at various prices, which are above or equal to the floor price. The offer price is determined after the bid closing date. Price at which securities will be allotted is not known in case of offer of shares through Book‐Building, while in case of offer of shares through normal public issue, price is known in advance to investor. Floor price is the minimum price and Cap Price is the maximum price at which the bids can be made.ates12798‐38

PRE IPO PROCESSES1) Sub‐Syndicates Agreements (SSA) for distribution of IPOsFor distribution of IPOs a tie up agreement is made with BRLM/Syndicates. This is an activity which needs to be done for each and every forthcoming IPO before the IPO date is announced. This agreement gives us the right to distribute the IPO forms, accept forms, bidding of forms, exchange, and submission of forms to banks on behalf of BRLMs/Syndicates.

Documents InvolvedFor 1st Agreement (with NSE under ACDL)• List of Bidding Collection Centres• Details of NSE VSAT/LL and User IDs for activation• List of Branches for Distribution of forms• Letter of requisition of Forms printed with our CODE i.e. 23/12798‐38• (to be printed on ACDL Letterhead)• Letter to NSE for activation of USER IDs

For 2nd Agreement (with BSE under ABL)• List of Bidding Collection Centres• Details of BSE IP Address for activation• List of Branches for Distribution of forms• Letter of requisition of Forms printed with our CODE i.e. 23/12798‐38 • (to be printed on ACDL Letterhead)

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• Letter to BSE for activation of USER IDs

Distributions of IPO FormOnce all the formalities of Agreements are done and the date of Issue is announced by BRLMs, the forms distribution schedules are sent to us by them.This gives us an idea about the quantum of allotted forms and list of Angel Branches, the forms are directly sent by them. Once branches receive their forms they further circulate it to their sub‐brokers and Clients.

Basic information of IPO to Branches

Process description:IPO product notes and basic details are forwarded to the Branches.Basic IPO details like Issue opening dates, closing dates minimum and maximum qty, bid lot, Registrars to the issue, Issue Size, etc. are forwarded to the branches.

Recommendation ‐ Product notes recd from Syndicates, Angel Product Note and recommendations (if any) are sent to all the branches which help them to advise their sub‐brokers and Clients.

Brokerage & Incentives – Information about the Brokerage and Incentives payable to Sub‐brokers is being forwarded from CSO to all branches in advance to circulate with their sub‐brokers.

Banking Matrix – Banking Matrix received from syndicate provides information of banks where we can submit the IPO forms on day‐to–day basis. These details are provided to branches in advance so that they can arrange to send forms to other locations within the stipulated time if banking location is not available at their end.

BRANCH VISITS:After analysing the various processes at the regional office for a fortnight, I understood all the intricacies of various departments. The regional office (RO) is link between the branch offices (BO) and the central service office (CSO).Every operation from branch office is routed through the regional office to the CSO and vice-versa. Thus it becomes very necessary to understand the various operations at the branch office .It will help in knowing the process flow between the BO and RO.

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This helped us to understand the work process and pinpoint the various issues which need to be addressed in order to streamline the working of the organization between the regional office and the various branches. This information will help us in developing software to automate the existing process.

Angel Broking Ltd has 27 branches across Mumbai. Among which six branches are family run branches. These branches are not linked to the RO, hence were out of the scope of our research. Hence I visited 21 branches all across Mumbai. The branches are further divided into B2B and B2C.

During my visit to various branches we tried to understand the activities in the branches in the pretext of our knowledge of working of the RO. It was very necessary to establish a good rapport with the people in the branch office to extract fair and true information. The questions were mainly open ended. I basically tried to evaluate the

Ongoing Process Best Process

Weak Process Pain Points

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CSO (Central Support Office)

Regional Office

Branches & Franchise Branches

Angel Clients


Sub- Brokers / Business Associates


Regional Office Regional Office

Branch Activity

B2B

I even tried to get their feedback on the proposed system. I tried to explain them the new system we I had proposed and tried to get their view and suggestions for the same. At the same time we tried to understand the clients’ queries. The common difficulties faced by the clients, also the difficulties faced by the employees. This helped me get a clear picture of the working of the branch offices and also i could find out the loop holes in the existing system.

The following branches are visited:-

Bolivali(BVI)Bolivali(BVIN)

MaladKandivali(Kand)

TvlgParle(VLPL)

Parle(XV)Lokhandwala(LKDL)

Bandra(Yb)Andheri(Adhre)

Goregaon(Mumro2)Chira Bazaar

Fort (Churchgate) house

Chembur(Basant)Fort (Haji Kasam)

Ghatkopar(E)Mahim

Masjid BandarMulund

NerulPowai(RO)

PowaiSion

ThaneWadalaVashi

Software Requirements Specification (SRS)

1.Introduction

1.1 Purpose 1. To develop a software which will help client,sub-broker,back-office ,regional manager

to track the status of KYC and modification form.

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2. Software would also automate the run sheet which is used at branch level in manual form.

1.2 Scope 1. Software product is Tracking Software2. Our product will keep track of form from branch office to CSO through Regional

office till code is delivered to the client.3. Our product will not generate the client code as it is done at CSO.4. Our product will not process any document. It will just keep a track of the forms.5. It will generate the run sheet automatically.6. Product user will get the acknowledgement at real time.7. Back Office efficiency would increase.8. Automation would reduce client queries at branch level.9. Automation would reduce the paper work.

10. It will improve the client base services.

1.3 Definitions, Acronyms, and Abbreviations. Abbreviations

1. B.O.-Branch Office2. R.O.-Branch Office3. CSO-Central Service Office4. KYC-Know Your Client

2. The Overall Description

2.1 Product Perspective

1. Our product is a dependent software.2. It is dependent on the current MIS of Angel Broking . Our product would access the

client information form existing databases.3. Our product would access name ,e-mail ID,phone number for modification process.4. In market we can find a courier service software to be similar to our product for

tracking the forms

2.1.1 System InterfacesOur product would interact with existing modification MIS to get the client detail and to update the modification done which could be regarding e-mail, mobile no, phone number, ECN activation , RTGS facility.

2.1.2 Interfaces1.Users

Client

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Registered

Unregistered

Branch Office Sub-Broker RO

2.Logins

Client Login Branch Login Sub-Broker RO

3.Accesibility

Unregistered ClientThese clients can login using their PAN Card number or KYC form number

They can check the real time status of their form

Registered UserThese clients can login with their Client Code and password.

They can track their form as well as give modification request for non-critical activities which includes

1. Email-ID2. Mobile No.3. Telephone No.4. ECN5. RTGS6. Other Segment Activation

Registered clients will be given modification password required for submitting the modification request.

Sub-BrokerThey can login using their sub-broker tag and password.

They can check the form status of all the associate clients.

Branch OfficeThey can login using branch tag and password.

They can check the form status of branch client.

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They can see the client under sub-brokers separately

Regional OfficeThey can login using regional office tag and password

They can see the form status of clients under different branches under different sub-broker.

They can see the modification request sent by client for various activities.

They can see the count of various forms received at branch level which would be coming to them and branch run sheet details would be automatically updated.

AVPThey can login using regional office tag and password

They can see the form status of clients under different branches under different sub-broker.

They can see the modification request sent by client for various activities.

They can see the count of various forms received at branch level which would be coming to them and branch run sheet details would be automatically updated.

Run sheet interpretation can be shown to the regional head which could include:

Number of forms received at branch level and number of forms sent by branch.

Number of forms rejected at branches.

Number of forms expected on the next day can be forcasted based on number of forms received at branches.

2.1.3 Software Interfaces

1. Client Interfacea. Status protocol

i. Unregistered client

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Go to the website home page

Login using KYC form number and PAN card number

ii. Registered client

b. Modification protocoli. Registered Client

1. Mobile number modification

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It will show real time Status

Go to the status tab


Login using Client ID and Password

It will show real time status

Go to the status tab

2. Email Modification

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Login using Client ID form number and Password

Go to the Modification tab

Select the mobile modification

Enter existing mobile number

Enter new mobile number

Re enter new mobile number

Click the submit button

Enter modification password

Verifiy the password

Show all modified detail

Send SMS and E-mail to client changed number

3.RTGS modification

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Select the Email modification

Enter existing Email ID

Enter new Email ID

Re enter new Email ID





Send SMS and E-mail to client changed number

4.ECN modification

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Select the RTGS checkbox

Enter bank name

Enter Acount number





Send SMS and E-mail to client

3. Branch Interfacea. Run sheet protocol

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Select the ECN checkbox





Send SMS and E-mail to client

1. Enter the details of the KYC form in the system.

Form no Client name Address Pan card no Cheque no Document submitted

2. If verified click ‘Approved’3. At the time of delivery to RO, automatically generate a run sheet of all the entries

made till the time of pickup.4. Click ‘SUBMIT’ to update the run sheet in the database.5. Instantaneously, RO gets updated about the type of documents being send by the

respective branch.6. After receiving the documents in the respective section , verify the documents and

click ‘RECEIVED’7. Instantaneously, respective branch office gets acknowledgement of delivery.

4. R.O. interfacea. Run Sheet protocol

Entry made by offices would be reflected in the software when they submit the run sheet.

On receiving the forms at RO the number of document is verified with the document reflected in the system.

If all the document tally acknowledge the branch office. If document does not tally generate the respective

query.

2.1.4 Memory Constraints

RAM – 1GB

Hard Disk – 1 TB

Processor – core 2 duo

2.1.5 Site Adaptation RequirementsThe application required :-

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Internet explorer 9. Mozilla Firefox Windows XP, Windows 7.Vista Flash Player 9 PDF reader Active X

2.2 Product Functions Major functions that the software will perform are :

Centralized database :

There would be one single database. Data can be retrieved and punched in a single database right from the KYC form submission to account closure.

Real-time tracking :

The software would allow all the users to keep a real-time track of the KYC form process and their modification requests. This would be possible as at every stage of the process ie as the from moves from one department to the other, entry would be made in the database about the status of the form and the modification requests

This software would help all the users viz clients –registered and unregistered, BO ,RO and higher management viz AVP keep a real-time track of all the process. For example, if a

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clients submits his form at 10 am and wants to check the status of the form at 3 pm ,the client would know the exact status(considering the form was sent in the 1st pickup to RO) as to the form is in the RO or had it been verified by CSO and the tentative more time required for code generation.

Load Management :

Unlike the current system, where the RO comes to know the number of forms only when the forms are actually received by the RO, the new system would help the RO know in advance the number of forms for a particular day. This would be beneficial in efficient use and planning of the resources at the RO.

It can also help in making strategic decision like knowing the months with highest new forms, times with high and low number of cheques.

Automatic Run sheet:

Currently the entry is punched in the run sheet as and when the forms or other documents are sent to the RO. And at the RO, again entry is made in the system of the received form and document. Thereafter the documents are sent to the respective department. But automated run sheet would require entry to be made only once at the BO, which would be verified by the RO on receiving the documents. Also , instantaneously an acknowledgement would be sent to the BO .

2.3 User Characteristics AT BO :

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1. KYC Person: Graduate with basic knowledge of computer application like MS Office.

2. Sales Executive: Graduate with basic knowledge of computer application like MSOffice.

3. Branch Manager: Management degree with a good computer and technical knowledge.

AT RO:

1. KYC Person: Graduate with basic knowledge of computer application like MS Office.

2. Branch Manage: Management degree with a good computer and technical knowledge.

3. Regional Head: Management degree with a excellent computer and technical knowledge.

Client: Basic computer skills.

2.4 Constraints Provide a general description of any other items that will limit the developer's options. These can include:

(1) Regulatory policies: There would be no compliance issues.

(2) Hardware limitations (for example, signal timing requirements)

(3) Interface to other applications: The new system needs access to the current database of the clients. Any new modification request has to updated in the database. Hence proper and integration of databases required

(4) Parallel operation: The processed modification request should be reflected in the tracking software as well as the client’s database simultaneously.

(5) Audit functions: Double entry and data redundancy should be taken care of.

(6) Safety and security considerations: Every access is password protected and any sort of unauthorized

2.5 Assumptions and Dependencies We are assuming that the person who collect the form at branch office punches the

entry as soon as he/she receives the form. Form are not misplaced by collection boy. Entry of form is done correctly at branch level. Verification of form is done as quickly as possible. This software is dependent on the existing database.

2.6 Apportioning of Requirements. The software can be implement at sales team level. At sales team level means the sales person when he get the form he will make the

entry.

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This software will be implement on branch office to RO level, but after that it can be implemented RO to CSO level also so that the tracking of form and query solving will take less time.

We can implement MICR facility to track more accurately and after that there is no need of doing entry at branch level also, a machine will automatically read the data and everything is done automatically

3. Specific Requirements

3.1 External Interfaces

For registered User:-

For unregistered user:-

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For Branch office:-

For Sub-Broker:-

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3.2 Functions3.2.1 Security

3.2.1.1UserIdentification

The system requires the user to identify himself /herself using their tag or employee id

3.2.1.2 Login-ID

Any user who uses the system shall have a Logon ID and Password.

3.2.1.3 Modification

Any modification (insert, delete, update) for the Database shall be synchronized and done only by the database administrator..

3.2.1.4 Branch office staff Rights

Branch office staff shall be able to view all information in Database, add new Users to database but shall not be able to modify any information in it.

3.2.1.5 Administrators' Rights

Administrators shall be able to view and modify all information in Database

3.2.1.6 Higher management Right

Higher management can access all information in various formats like table, chart, graphs etc.

3.3 Performance Requirements3.3.1 Response Time

The system shall give responses in 1 second after checking the patient’s information.

3.3.2 Capacity The System must support 300 people at a time.

3.3.3 User-interface The user-interface screen shall respond within 5 seconds.

3.3.4 ConformityThe systems must conform to the Microsoft Accessibility guidelines

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3.4 Logical Database Requirements

3.4.1 Client Mandatory Information

Each Client shall have the following mandatory information: first name, last name, phone number, PAN card number, address, postal code, city, country, Client ID, Form number.

3.4.2 Update Client Information

The client database will be automatically updated after the execution of modification request.

3.4.3 Search for Client

The Database shall allow the user to search for client’s information by last name or PAN number or client ID.

3.4.4 Employee Information

Each staff in Angel broking shall have the following mandatory information: identification number, first name, last name, phone number, address, postal code, city, country, employee type, duty schedule.

3.4.5 Department Types

The department is categorized into : Banking, Modification, PMS, DP, KYC.

3.5 Design Constraints 3.5.1 Database

The system shall use the MySQL Database, which is open source and free.

3.5.2 Operating System

The Development environment shall be Windows XP , vista , indows7.

3.5.3 Web-Based

The system shall be a Web-based application.

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3.6 Software System Attributes

3.6.1 Usability The system’s interface is user-friendly and easy to get familiar with.

It is recommended that users read the product’s manual in order to understand all features and to use the full power of the system.

Training wise, any user with who is familiar with a PC should be able to use the system with maximum training of 1 hour.

3.6.2 Reliability Availability: 99.99 %.

Average hours of use:30 hours per week.

Mean Time Between Failures (MTBF): 30 days.

Mean Time To Repair (MTTR): 1 hour.

Accuracy: 100%.

3.6.3 Availability

The system shall be available all the time.

3.6.4 Security

The following is a list of security requirements that indicate how the system shall protect itself and its sensitive data and communications from accidental, malicious, or unauthorized access, use, modification, or destruction.

The system shall not allow Bluetooth addresses of unauthorized Bluetooth devices to be stored into the system’s repository.

The system shall not permit unauthorized Bluetooth devices to access or participate in any activity started by the server (laptop) user.

The system shall not allow confidential data stored in the system’s database to be accessed, whether directly or indirectly, by client (mobile) users.

The system shall force the laptop user to confirm any data deletion to prevent any accidental erasure of sensitive data.

3.6.5 Maintainability3.6.5.1 Back Up The system shall provide the capability to back-up the Data

3.6.5.2 Errors The system shall keep a log of all the errors.

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Copyright and intellectual properties

This software will be registered with ANGEL BROKING LTD. Mumbai.

Note:- Annexure is enclosed at the end.

REFERENCES:-Websites referred:

http://www.angelbroking.com

http://www.nse-india.com/

http://www.bse-india.com/

http://www.investopedia.com

Intranet of the company:

http://www.angelbackoffice.com

http://196.1.115.150/RiskManagement

http://196.1.115.140/

http://196.1.115.212/commonlogin

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http://196.1.115.212/commonlogin

http://196.1.115.140/

http://196.1.115.150/RiskManagement

http://www.angelbackoffice.com/

http://www.investopedia.com/

http://www.bse-india.com/

http://www.nse-india.com/

http://www.angelbroking.com/

ANNEXURE:-1)

2)

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3)

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4)

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5)

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6)

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8)

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9)

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10)

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Final Report Last

Documents

summer internship project

equity operationthis

angel cso

project final report

staff members of angel

banking operations

current equity operations

introduction of angle