Name: Navjot Singh Vohra

Enrollment No:18BSPHH01C0765
IBS Campus: Hyderabad
Mobile No: 9582290812
E-mail: navjotvohra@gmail.com

INTERNSHIP PROGRAM
Proposal

 Internship Proposed:
The internship is proceeded majorly in the domain of finance with a minor interest of
marketing and client servicing. The underlying aim of the internship is to gain
knowledge about the financial market and using this knowledge in the field of risk
management. Furthermore the topic of the internship project is ‘Currency hedging
vis a vis equity and commodity market’. The Aforesaid topic was chosen to analyse
the working and to realise the importance of ‘hedging’. Hedging plays a crucial role
in mitigating losses suffered due to fluctuations in the currency market by
simultaneously trading in financial market and its derivatives. This method can be
followed by numerous business entities and merchants such as exporters and
importers because of their continued exposure to foreign currency and their
vulnerability to losses due to fluctuations in currency market.

 Description of Internship in brief:

The internship is currently well underway at Globe Capital Market Ltd.
(GCML). The forenamed company was incorporated in 1985 and has its registered
office in New Delhi. The company has a growing network of more than 3000
offices across 400 locations in India and overseas offices through a subsidiary in
Dubai. The company is well diversified and is largely engaged in Retail and
Institutional broking, clearing services, Portfolio Management Scheme, research,
Depository services, Distribution of mutual funds and Initial Public Offering
(IPO’s). The company is also engaged in Non-Banking finance activities through a
subsidiary (GLOBE FINCAP LTD). The company has membership with an array
of exchanges, some of being the National Stock Exchange (NSE), Bombay Stock
Exchange (BSE), MCX and National Commodities and Derivatives Exchange.
The working of GCML includes facilitating trading and clearing of financial
instruments such as Equity and derivatives. The company also deals in currency
and commodity market. The company has a pool of talented workforce which
works in absolute coordination to facilitate better trading services to the clients.
The role of the Relationship managers is to acquire clients through cold calling and
references from satisfied clients and to provide proper guidance and assistance to
all the clients. The company charges brokerage and other necessary fee for its
services to the clients.
 How does currency hedging work?
The project deals with the importance and working of process of hedging. The
importance of hedging can be comprehended by taking an example:-
Suppose an oil importer wants to purchase oil worth $1,00,000 and places his order
on 15th march 2019, with the delivery date being 3months away. At the time of
placing the contract in the spot market, one dollar is worth 69. However, suppose
the Indian rupee depreciates to 72 when the payment is due in June 2019, the value
of the payment for the importer goes up to Rs7200000 from Rs6900000. In this
case the importer will suffer a loss of Rs300000 and this loss can be mitigated by
hedging.
Another example can be considered of a exporter. Suppose a jeweller who is
exporting jewellery worth $50000 and wants protection again possible rupee
appreciation when he receives the payment. In the above mentioned situations
hedging can play a vital role in minimizing losses by investing in future and
options in currency and commodities market.
Therefore the topic: ‘Currency hedging-vis a vis equity and commodity
market’ states that both commodity/equity market go hand in hand and loss in one
segment can be covered by hedging in another segment.
To introduce this facility of hedging to clients the company should have clients in
the first place. Hence the process of acquisition of clients and client servicing is
done through a process which include the following steps:-
 Calling fresh clients using the references and pitching them the benefits of trading and
investing and convincing them to join us.
 Calling inactive existing clients who solving their issues so as to facilitate trading.
 Facilitating meeting with the business entities and traders so as to inform them
about hedging the currency risk involved in the day to day business activities.
 The process of pitching the idea to the customer is crucial as the client can only
convinced by the authenticity and commitment of the company towards its customers.
 Taking part in other business activities of the company so as to gain exposure.
 Once the clients are acquired, providing them with assistance and guidance
about trading in the financial market so as to achieve the financial goals of the
investor.
 Maintaining cordial professional relationship with the client.
 Day to day confirmation of business activities of the client in the financial
market.
The above activities can be considered as a part of key deliverables to the company.
 These activities will help in gaining vital knowledge about variety of concepts which are
instrumental in achieving my goals in the corporate world. The observation of working
of the firm imbibes a sense of responsibility towards the growth of the firm and
satisfaction of the prospective clients which are ultimately the biggest driving force of
the growth of the firm.
The activities covered and learnt so far are as follows are as follows:-
 Understanding of the financial market and its key issues.
 The effects of external factors on the market and its instruments.
 Software related to trading as provided by the firm.
 Trading on the behalf of self so as to understand the psychology of the client.
 Understanding of the process of client handling in the event of any unfavourable
circumstances.
 Understanding of the charges levied by the firm for its services.
 Understanding the guidelines that a client has to follow while trading.
 Understanding of various other investment plans proposed by the firm for different
classes of investors.
 Understanding of customer dealing protocols where the orders are taken and confirmed
only on the official contact lines so as to maintain transparency in dealing with customers
and to keep constant vigil on unauthorized trading.
 Trying to maintain good relations with clients by providing them with good customer
service and resolving their issues as soon as possible.

The other important element of my internship is -Risk Management’. Risk management is

an important aspect of any investment. It consists of all the strategies to protect the
investment of the client from any loss. This risk associated here is because of the continuous
fluctuations in the market because of which investors can gain as well as loose. This risk can
be managed by thorough understanding of the market and by assessing the risks associated
with the investment in the market and formulating strategies to minimize this risk. The
research department closely analyses all the investment options so as to form a portfolio of
the client according to his financial status and goals. Several techniques such as short selling
and long position can help in compensating for the losses due to currency fluctuations. In
this process not only risk is hedged but also the investor gains.
Apart from the department of risk management (Risk Management System) there are
other departments in the company as well that we came across so far and learnt about the
same. The other departments are:
 Research and Development
Risk Management System
 Portfolio Management
System
 Sales
 Administration and documentation
 Compliance
 Operations
 Accounts
 Human Resources
 Legal department
 Arbitrage
 Commodities
 Client service

 Objective of Internship:
 To understand the basics of capital market and various financial instruments

 To understand how risk associated with currency fluctuation can be managed

 To learn various ways of approaching and acquiring clients,

 To work under guidelines and work with the team to achieve organizational goals.

 To advise and to guide about trading and investing, understand how an organization
achieves its goals in the long run.
 Action Plan:
1. Understanding the working of stock market and policies of the company:
 The foremost activity conducted in the initial phase of the internship is to gain
basic knowledge of the market and the effects of economic and general conditions
on the financial market.
 Gaining knowledge about sections available for trading in the financial market
such as equity, commodity, currency and future and options.
 Gaining knowledge about the company policies

2. Approaching clients:
 The contact details of clients are collected from directories and references.
 The new leads are generated via cold calling and meeting prospective clients.
 The inactive clients are also encouraged to trade and their queries are also solved
through personal attention from their respective relationship managers.
 Clients from other brokerage houses are also taken and approached and their
reviews are also taken into account so as to improve the services of our firm.
 Investors meet also plays a crucial role in interacting with clients and generating
leads about potential investors.

3. Acquiring clients:
 The process of acquiring the client includes meeting the client and informing the
client about each and every minute detail of the investment he/she is interested in.
  Once the client is ready to join us, the necessary required documentation is done
(KYC) and other important documents are collected to maintain further records.

4. Service:
 This process includes informing the client about the policies of the company.
 The client is provided the trading software of the company i.e., ‘Globe Connect’
and the client is trained regarding the same so as to facilitate trading for the client
from anywhere and anytime.
 The investment of the client is tracked continuously.
 The client is provided with suggestion about his/her investment and is also
suggested further due course of action regarding his/her financial goals and a
goodwill is maintained with the client for future business relations.

 Schedule:
 The typical time taken to get a prospective lead is days in general. Lead can be
generated anytime if the listener is interested in the business proposal. The
process of generation of lead is followed by the process of meeting the client
which is mostly scheduled on weekends.
 The documentation is initiated if the client is interested to join the organization.
 After successful documentation induction is arranged for the client.
 The process of induction is followed by investing the client’s money.

 Limitations:
 The availability of clients plays a crucial role. The lack of availability of
client can at times restrict the process of trading .
 The generation of clients can be a challenging task sometimes.
 Rejections can be demotivating after a while.
 The general dilemma about the market and hesitation of the client to invest in
the market can be restricting factor.
 Lack of knowledge on client’s end also restricts the negotiation process as
sometimes the clients refuse to believe the general market norms.

Faculty Guide Name:

Prof. Radha Mohan Chebolu

Company Guide Name:

Mr. Anil Aneja

Date: March 16, 2019