JSFM

Jaypee School of Financial Markets

Executive Summary

JSFM would be a firm, which would provide financial education to people. What do we
mean by Financial Education? Financial Education would be a comprehensive study
program, which would enable its students to have a holistic view of everything related to
finance or money in India. JSFM would begin with dedicated short term courses only on
the financial markets i.e. the stock exchanges of India(NSE to be more specific) and later
on go on to introduce more and more courses on other aspects related to finance such as
the banking system of India,etc. Now the question arises Why are we beginning with the
NSE’s NCFM?

National Stock Exchange on India is today the biggest stock exchange in the country. In
order to educate people it started its own modules for financial education by the name of
NCFM (NSE’s Certification in Financial Markets) in 1998. However till date people have
a lot of misconceptions about these modules. A lot of them consider these modules to be
very tough and thus don’t try to clear them and thus either leave it like that or go for
coaching. For eg- Financial Markets: A Beginner’s Module is a very basic module and
can be cleared easily by anyone who understands English. However as the students don’t
really know this , they get fooled by firms such as Share Gurukul who charge a whopping
Rs.2000 for educating them about the same module, even when the study material is
already provided to the students by NSE. Now our USP would be that when we charge
Rs.2000 we don’t only give the theoretical knowledge but at the same time ensure that
our students see how the process actually happens.

Jaypee School of Financial Markets would be a strategic business unit (SBU) of Jaypee
Capital Services. Initially JSFM would start by preparing students for various NCFM
modules. For this the first thing that JSFM would do is go to NSE and ask them to grant
some sort of certification to JSFM or announce JSFM as a partner for NCFM teaching.
This would mean that the next time an individual goes to the NSE website and enquires
about NCFM he would come to know that NSE recommends JSFM to him to prepare for
any module. We would be different because we are going to link the gap between theory
and practice. As we are already present in the Financial Markets as a player we can show
the students how theory translates into practice. For eg- A teacher teaches a student at
JSFM what is short-selling. Now after 2 days JSFM organizes a field trip to Jaypee’s
office and there the same student actually gets to see an individual short-selling the shares
of Bajaj Auto for a customer. Now would any competitor of ours be capable of doing the
same. The answer is NO.
The management team of JSFM would comprise of 5 members. They would be -:

1 An individual who would be assigned by NSE.

2 An individual from Jaypee Capital Services.
3 A professor from any of the leading B-Schools.
4 A professor from any of the leading colleges offering undergraduate professional.
courses
5 A professor from any of the leading colleges offering undergraduate courses which are
not professional .
6 An outside advisor for a period of 3 months

The market that we are looking at comprises of every Indian (to begin with every
Delhiite) who is educated. The reason for this is that these days the stock market and its
affairs are no more a ‘Satta’. Infact people who earn their bread and butter from the stock
exchanges are as respected as anyone else. Also currently there is a lot of hype about the
bourses due to the bull run the market has experienced over the past few years. Thus
everyone wants to know more, everyone wants to know how the market runs, what are
the various ways in which one can be associated with the markets,etc. Other reasons for
more and more people taking interest in the markets could be to enhance their CV
Value(especially for professionals and students), to flaunt their knowledge over others,
etc. As a matter of fact even housewives are now interested to know more about the
markets.( Share Gurukul has even started a course on stock markets targeted specifically
towards housewives ). Thus it can be confidently said that we are looking at numbers,
which are difficult to measure. It depends on us how many people we can attract. We are
sure to ensure that more and more people feel they can know a lot about the stock
markets by joining JSFM.

Now we come to the investment that JSFM would need. JSFM would initially operate
from 5 areas in New Delhi. These would be Preet Vihar-East Delhi, Netaji Subhash
Place-North Delhi, Connaught Place- Central Delhi, North Campus-Delhi University,
South Campus-South Delhi. The reasons for picking these 5 places are that either they are
close to an area where a lot of students come or they are easily accessible in their part of
the city. A couple of rooms would be rented at each of these places. One of these rooms
would be the classroom and the other would be a small office in which an individual
would take care of the details of that center. These rooms would be rented and thus the
rent each month would come around to be Rs.2,50,000 for all the 5 centers. Next we
move on to the permanent staff at these centers. At each center there would be 1 person
who would take care of the details of the center such as which batch is scheduled when,
which teacher is scheduled to come, the time to open the center and to close the center
etc. He would have to be paid on an average Rs.15,000 per month and thus this salary for
all 5 centers comes around to be Rs.75,000. Other than this individual there would be
another person at each center for maintaining the cleanliness,etc. of the atmosphere. He
would have to be paid Rs.5000 per month and thus the salary for this job for all the five
centers comes around to be Rs.25,000 per month.
Now we come on to the last and most important section that is deciding the faculty which
would teach at each of these centers. The teaching staff would be of 2 kinds-:

1 Permanent Teaching Staff

These would be those people who would be employed by JSFM as a teacher on a
permanent basis to impart theoretical knowledge in the classroom to the students who
wish to clear the NCFM Modules. They would be paid a fixed salary each month. This
salary would vary depending upon the modules they are teaching at the 5 centres. We
allocate a budget of Rs.3,00,000 per month to this expenditure.

2 Non-Permanent Teaching Staff

These would be investors, stock brokers, people from Jaypee, technical analysts,etc.
Basically the people who are actually players in the stock markets would constitute the
Non-teaching staff. The students would interact with them about the markets and thus
gain a lot of knowledge. The investment on them depends upon the honorarium they
charge. Thus we allocate a budget of Rs.1,50,000 per month to this expenditure.

Finally we come to the compensation of the Management team and allocate a budget of
Rs.1,50,000 every month to it.

Besides all the above-mentioned expenditures there is promotion activity to be carried

out. We allocate a budget of Rs.2,00,000 to promotion for the first 6 months. Finally there
are the Market Research Costs involved for which we are going to hire interns from
various professional colleges in New Delhi. Thus we allocate a budget of Rs.50,000
towards their stipends and all. Thus the total investment in getting the project off the
ground comes around to Rs.12,00,000. JSFM would also provide distance learning
facilities to those who cant come for classes at centers. In the distance learning package
the student would be provided with minutes of the lectures by the permanent teaching
staff. The student would also be allowed to attend any session by a Non-Permanent
Teaching Staff. Besides these the student would also be allowed to come for any of the
field trips that JSFM organizes.

The charges that the students (students here does not mean those studying in colleges but
those who have joined JSFM) would have to pay to JSFM would vary on the module
they wish to prepare for but it is estimated that we would break even within a period of 7-
8 months.

Business Mission

To educate and cognize as many Indians as possible about the various financial tools and
services available in India and abroad.

Management Team

1 Individual from NSE

This person would overlook the working of JSFM. He would contribute in designing the
course for various modules. Also he would visit the various centers time and again and
have a look if the purpose of the tie-up with NSE is being fulfilled or not. We may or may
not offer him a monthly salary depending upon the nature of our relationship with NSE.

2 Individual from Jaypee Capital

This person would take care of the theory-practice relation. He would be responsible for
coordinating with the various centers about the possible field trips to various Jaypee
offices. His compensation depends upon the kind of involvement Jaypee would have with
JSFM.

3 A professor from any of the leading B-Schools.

This individual would help in designing the course with regards to the graduate students.
The needs for graduate and undergraduate students differ and this person would ensure
that we also have a viewpoint on how the mind of a professional works. He would also
offer tips on how we can explore potential synergies between JSFM and the various B-
schools in India.

4 A professor from any of the leading colleges offering undergraduate professional.

courses

This individual is very important because he interacts on a day to day basis with our
biggest target market segment. Again his role would be pretty similar to the previous
professor from the B-School.

5 A professor from any of the leading colleges offering undergraduate courses which
are not professional .

This individual will help us reach out to a market which if attracted will bring in a huge
sum of money. The reason that we use IF is because a lot of students in the DU spend a
lot of their time on wasteful activities and if we can make this group aware about the
benefits of financial education then nothing like it.

6 An outside advisor for a period of 3 months

This individual is necessary to present a fresh perspective about how JSFM is working.
He could be a teacher, a professional, a Banker,etc. For eg- If JSFM wishes to target
school students at the 10+2 level then we can get the principal of a reputed school on the
management board.

All these 6 individuals are qualified and their strength and experience would match the
goals and strategies of the business. Their technical and business acumen would be of
great use to us and they are sure to bring in the relevant business experience to JSFM.
The Marketing Plan

We have allocated a very ordinary budget towards promoting JSFM. The reason is that in
India word of mouth is the only form of promotion that works i.e. which actually ensures
a new customer for your product. People still believe in what their friends, relatives and
acquaintances have to say about a particular product or service.

Still a sum of Rs.2,00,000 is needed to generate this word of mouth. Thus JSFM would
devote a greater share of its promotion expenditure on Public Relations. Also NSE itself
would be a big advertisement for us as their recommendation would undoubtedly be
valued by anyone who wishes to achieve certification in the various NCFM Modules.

Future Of JSFM

JSFM would move on to become JSFE( Jaypee School of Financial Education) in the
future. The reason is that as we grow we would also increase the range of services we are
providing. In other words instead of just teaching our students about Financial Markets of
India we would also teach the students about Financial Markets in other countries and
how Indian residents can access them. Then we would further expand and include other
forms of Financial Education such as understanding the Indian Banking System,
understanding how Micro-Finance works, etc. Meanwhile during this whole process we
would also launch courses which are long-term i.e. which last a period of 6months or 1
year. (Something on the lines of Indian Retail School). And later if the market permits we
would build a campus and apply for affiliation as a college to the Delhi University or any
other such university. The USP of our college is that we would only offer undergraduate
courses which are related to financial variables.