HEDGE EQUITIES LTD

Hedge equities ltd. is one of the leading retail stock brocking house which is running

successfully in the country. Hedge offers its customers a wide range of equity related services

including trade execution on BSE , NSE , Derivatives , Depository services , online trading ,

investment advice etc.. The firm has an online trading and investment site –

www.hedgeequities.com. The site gives access to superior content and transaction facility to

retail customers across the country. Known for its jargon- free, investor friendly language and

high quality research, the site has a registered base of over thousands of customers. The content

rich and research oriented portal has stood out among its contemporaries because of its steadfast

dedication to offering customers best-of-breed technology and superior market information. The

objective has been to let customers make informed decision and to simplify the process of

investing in stocks. Hedge equities have always believed in investing in technology to build its

business.

About Hedge Equities

Hedge Equities is one of the leading Financial Services Company in India, specialized in

offering a wide range of financial products, tailor made to suit individual needs. As a first step to

make our presence Global, Hedge Equities have initiated operations in Middle East to cater to

the vast Non Resident Indian (NRI) population in that region. Ever since their inception, they

have spanned their presence all over India through their Meticulous Research, High Brand

Awareness, Intellectual Management and Extensive Industry knowledge. Hedge believes in

creating a new breed of Investors who take judicious decisions through them.

Team Hedge Equities is a balanced mix of more than 25 years of cutting edge experience cutting

across various industries with a strong background in the financial market. The Board comprises

of veterans from six power houses in their respective fields: Fedex Securities, Baby Marine

Exports, Thakker Developers, Smart Financial, S.M.Hegde (CFO, Videocon Industries),

and Padmashree Mohan Lal.

Fedex securities

Managed by a team of ex-bankers, Fedex is a SEBI registered category 1 merchant banker. The

company concentrates on non-fund based activities like structuring, tie up of project financing,

financial restructuring investment banking, corporate and advisory services. The core

management team consists of bankers with rich experience of decades and exposure to volatile

situations in commercial and investment banking. With offices at Nariman point and Vile Parle

east, Mumbai, state of the art infrastructure and qualified manpower to conduct the business,

Fedex securities envisages a phenomenal growth in this sector for its clients.

Baby Marine Exports

Baby Marine Group, started its operation in 1977 from Kozhikode and through innovations and

hard work has grown into three unit and related industries spanning both the west and east coast

of Indian. Baby Marine Exports, B.M Products and Baby Marine(Eastern ) Exports are

efficiently aided by preprocessing units, ice factories and a fleet of insulated and refrigerated

trucks for sea food transportation. Due to constant upgrading of machinery, state-of-the-art

infrastructural facilities, better links with raw materials suppliers, and an established network of

purchasers have obviously made Baby Marine Group a leading exporter of processed marine

products to various international markets.

Smart financial

Smart financial entered the financial market only in 1992 but over this brief span has covered a

niche for itself by becoming the leading financial provider. The company offer guidance to

investors as equities, commodities, mutual fund’s portfolio management services and insurance.

It offers complete range of financial solutions that encompasses every sphere of life

Thakker group

Starting off as a land developer and builder in 1962, Thakkers groups diversified into

commercial production of agricultural and horticultural products, housing real estate marketing

plantation etc. They have provided shelter to more than 40000 families by offering residential

plots and premises .Thakker developers is the flagship company of the group. It was established

as private limited in 1987 and later went on to become the only public limited company in North

Maharashtra engaged in housing ,commercial construction and land development. The company

is also a Class1 contractor registered with the Public Work Department, Govt. of Maharashtra.

SM Hedge

Mr. S.M Hedge, a chartered accountant by profession is the Chief Finance Officer of the Indian

Multinational Videocon International and has been at the helm of affairs for the last 20 year.

Padmashree Bharat Mohanlal

Mohanlal, the south Indian movie superstar has become a legend, a brand and cultural ambassador owing to various factors. Versatility and natural flair for donning complex characters have won him numerous accolades not to speak of some unforgettable films contributed by him. A multifaceted personality, he has some business ventures also which include Vismaya Max Film Post Production Studio, College for Dubbing Artists at the Kinfra film and Video Park Thiruvananthapuram. He is the also the director of Uni Royal Marine Exports; a Kozhikode based major Seafood Export Company.

Intellectual and knowledge arbitrage is the mantra of modern day business. The same holds true for the financial markets. With the breadth and depth of knowledge of modern day business that the Board of Hedge brings to the table, you can be rest assured that some of the best minds in the business are taking care of your investments.

Mission

“To create an ethical and sustainable financial services platform for our customers

and partner them to build business, to provide employees with meaningful work, self-

development and progression, and to achieve a consistent and competitive growth in

profit and earnings for our shareholders and staff”.

Vision

“Ever since its inception, Hedge Equities has been a household name among the

masses owing our success to timely Professional financial assistance to our clients.

This aptly articulates our vision of 'Evolving into a financial supermarket which will

be a one stop shop for all financial solutions”.

Social Corporate Responsibility

Being a Responsible Corporate Citizen, Hedge Equities has initiated a Non Profit

movement ‘Hedge Yuva’ which focuses on educating the masses about Stock Market. The

movement has also formulated various scholarship programs for young and dynamic youth.

PRODUCT AND SERVICES OF HEDGE EQUITIES

1. Equity Trading

Equity gives you the opportunity to have a partnership with all the leading Business tycoons

around the globe. Total capital contribution for a company comprises of investments through

equity share holdings by small and big investors. The investors who have a stake in a

company are referred to as shareholders.

Power of Equity shareholders lies in the optimum selection of the Industry, have a strong

belief in the Company's fundamentals and also having a confidence in the profit making

capability of the company.

Equity Market, at present, is a rewarding field for the investors and investing in Indian stocks are

profitable for not only the long and medium-term investors, but also the position traders, short-

term swing traders and also very short term intra-day traders. Fundamentally, stock market is an

avenue for business people to meet shareholders. Other than bank loans, they now have another

option to finance their businesses. They did it by offering their company's equities in exchange

of shareholders cash. The company is never required to repay the capital, but the new

shareholders have a right to future profits distributed by the company. For shareholders, they

have alternatives to where they should put their money into. In the same time, they get the

opportunity to participate in capital intensive businesses at an affordable price. Equity is an

investment area which you can capitalize on with proper assistance regardless of the market

circumstances. Hedge Equities opens the door to this highly lucrative investment opportunity

that could provide a feasible solution to all your financial queries.

2. Commodities Trading

Commodity "futures" are contracts to buy or sell certain goods at set prices at a predetermined

time in the future.

Futures trading plays a key role in the marketing of a number of important agricultural and

nonagricultural commodities as it provides the industrial and farming communities with a

transparent price discovery platform, which also enables them to hedge their price risk and price

volatility. The growth of Indian commodities futures trading towards an efficient, transparent and

well-organized market has thrown open a window of benefits and opportunities to Indian

producers and traders. Besides the primary benefits of its twin economic functions of price

discovery and price risk management, commodity futures trading has also played an instrumental

role in integrating various fragmented components of the commodity ecosystem, thus developing

the overall infrastructure of agricultural commodities marketing in the country.

At  present,  24  commodity  futures  exchanges  are  operational in India, which include 21

regional bourses and the three national-level players, with another three proposed exchanges on 

the cards. With the state-of the-art technology-powered secure and efficient operational

infrastructure, these national exchanges are creating a near-perfect market situation with a much

wider participation from the ecosystem stakeholders in a large number of domestic and global

commodities during local and international timings.

While the trade in non-agricultural commodities, especially bullion and crude, has increased in

the past two financial years, the same in agricultural commodities has declined.  The share

of agricultural commodities almost halved during 2008-09, due to the continued ban on several

commodities. The clients can trade in commodity futures like gold, silver, crude oil, rubber etc.

And take advantage of the extended trading hours (10 am to 11pm) in commodities trading.

3. Currency Trading

Investments in Currency Derivatives can help you to diversify your portfolio from traditional

asset classes. Currency derivatives can be described as contracts between the sellers and buyers,

whose values are to be derived from the underlying assets, the currency amounts. These are

basically risk management tools in force and money markets used for hedging risks and act as

insurance against unforeseen and unpredictable currency and interest rate movements. Any

individual or corporate expecting to receive or pay certain amounts in foreign currencies at future

date can use these products to opt for a fixed rate - at which the currencies can be exchanged

now itself. Currency derivative serve the purpose of financial risk management encompassing

various market risks. An upfront premium is payable for buying a derivative.

Currency Futures will bring in more transparency and efficiency in price discovery, eliminate

counterparty credit risk, provide access to all types of market participants, offer standardized

products and provide transparent trading platform.

4. Mutual Funds

A Mutual Fund is a trust that pools the savings of a number of investors who share a common

financial goal. The money thus collected is invested by the fund manager in different types of

securities depending upon the objective of the scheme. These could range from shares to

debentures to money market instruments. The income earned through these investments and the

capital appreciations realized by the scheme are shared by its unit holder. Thus a Mutual Fund is

the most suitable investment for the common man as it offers an opportunity to invest in a

diversified, professionally managed portfolio at a relatively low cost.

Mutual fund is also called unit trust or open ended trust a company that invests the funds of its

clients in diversified securities and in turn represent those holdings. They make continuous

offering of new shares at NAV (Net Asset Value) determined daily by the market values of the

securities they hold. In Hedge Equities the clients can select from a wide range of Mutual Funds

and Bonds available in the markets today.

5. Online trading

Hedge Equities has a large network of branches with online terminals of NSE and BSE in the

Capital market and derivative segments. The clients are assured of prompt order execution

through dedicated phones and expert dealers at our offices.

6. Internet trading

Hedge Equities offers Internet trading through this site. You can trade through the Internet from

the comforts of your office or home, anywhere in the world. The dedicated IT systems ensure

service up time and speed, making Internet broking through Hedge Equities hassle-free. Using

the ‘easiest’ facility provided by NSDL, the clients can transfer the shares sold by them online

without delivery instruction slips. Additionally, digitally signed contract notes can be sent to

clients through E-mail.

7. Depository services

Hedge Equities is a member of the National Securities Depository Limited (NSDL), offer

depository services with minimum Annual Maintenance Charges and transaction charges.

Account holders can view their holding position through the Internet. They also offer the

‘easiest’ facility provided by NSDL (electronic access to securities information and execution of

secured transaction) through which clients can give delivery instructions via the Internet.

8. Derivative trading

Hedge offer trading in the futures and options segment of the National Stock Exchange

(NSE).Through the present derivative trading an investor can take a short-term view on the

market for up to a three months’ perspective by paying a small margin on the futures segment

and a small premium in the options segment. In the case of options, if the trade goes in the

opposite direction the maximum loss will be limited to the premium paid.

9. Knowledge Centre

Knowledge Centre activities are intended to provide systematic and structured services mainly to

new investors and also to young aspirant aiming for a career in financial markets. The centre has

three functional areas: the Publication Division, the Training Centre, and Wealth Management

Advisory Service which provides complete investment solutions to investors through knowledge

based personalized service.

10. Equity Research

Hedge Equities constantly strive to deliver insightful research to enable pro-active investment

decisions. The research department is broadly divided into two divisions-Fundamental Analysis

Group (FAG) and Technical Analysis Group (TAG).The fundamental analysts are continuously

scanning the entire economy for discovering what they call the “hidden gems” in stock market

terminology and present it to the clients for profitable investments. Timing the market has

always been the most difficult task for all analysts and their Technical Analysis Group has

emerged to predict the market movements well in advance using complex Analytical methods

including Eliot Wave Theory. They are equipped with cutting –edge technologies for technical

charting which assist the technical analysts to predict both upside and downside movements

efficiently for the benefit of clients.

11. Portfolio Management Service

Hedge Equities is a SEBI-approved portfolio manager offering discretionary and non-

discretionary schemes to its clients. Hedge Equities ‘portfolio management team keeps track of

the markets on a daily basis and is exposed to a lot of information and analytic tools which an

investor would not normally have access to. Other technicalities pertaining to shares like

dividends, rights, bonus, buy-back, mergers and acquisitions are also taken care of by them.

Main Competitors

GEOJIT BNP PARIBAS

JRG SECURITIES

RELIGARE

MUTHOOT SECURITIES

SHAREWEALTH

MOTILAL OSWAL

ANANDRATHI

FUNCTIONAL DEPARTMENT

Client Relation Department

The client relation department assists the client or customer top open an account in

HEDGE EQUITIES (p) Ltd securities. This department is also known as the front office. A

client has to open two types of accounts to trade and own securities in the NSE & BSE. They are:

FINANCE DEPARTMENT

Thus a department, to organize financial activities may be created under the direct control

of the board of directors. Finance manager will decide the major financial policy methods. Lower

levels can delegate the other routine activities.

MARKETING DEPARTMENT

The major functions of marketing department are:

a) Business associate development: The company takes up the marketing activities of the

various branches. It ensures an efficient marketing arena at its various branches. The

company encourages better relations in its branches and promotes for the development of

various marketing strategies.

b) Brand promotion: An important function of marketing department is to promote the

name of the company. HEDGE EQUITIES (P) LTD does it through the different

promotional activities. The name of HEDGE EQUITIES (P) LTD as a stock broking firm

is made known to the outside world.

c) Investment promotion: The main clients of HEDGE EQUITIES (P) LTD were its

investors. Hence the marketing department tries to capture as many investors as possible

to encourage them to invest.

d) Delivery promotion: Intraday trading is not always profitable and might involve a lot of

risk hence HEDGE EQUITIES (P) LTD promotes for delivery were the shares are kept to

be sold for a later date analyzing the profitability factors.

SYSTEMS DEPARTMENT

The systems department is playing a vital role in the day operations of the company. It is through

the systems department that the clients can avail the facilities of Internet trading. Optic fibre

cables and high bandwidth connections from the HEDGE EQUITIES (P) LTD office to the ISP,

a dedicated server and back-up ISDN connections were maintained directly by the systems

department. For the purpose of trading they have made use of two software namely ODIN (Open

Dealers Integrated Network)

HUMAN RESOURCES DEPARTMENT

Human resource is often considered as the back bone of an organization even in this age of

advanced automation and mechanization. Since virtual organizations are not very much popular

in our part of the world, it is very important to any organization to have a HR department. The

presence of an excellent HR department increases the efficiency of an organization considerably.

Human resource management is defined as asset of practices, policies and programmes designed

to maximize both personal and organizational goals.

a. Training and induction

The selected employees will undergo three days continuous induction. During this period, he will

undergo training with all the department of HEDGE EQUITIES (P) LTD Securities (India) Pvt.

Ltd. There will also be classroom induction also within 3 months.

b. Wages and Salary Administration

The wages and salaries of the employees were fixed and granted by the HR department with

consent of the finance department.

c. Performance Appraisal

It was human resources department which gives the promotion to all employees, making

transfers and taking disciplinary actions if needed.

d. Grievance Handling

The grievance of employees were received only through proper channels i.e., through the

particular department heads. The HR department will make solutions to th complaints as per the

rules and regulations of the company.

TRADING DEPARTMENT

The department deals with the trading related activities of the company. The trading refers to the

buying and selling of shares. This department is the most important part of the organization.

There are two types of trading. They are

a. Online Trading:

These are the trading terminal of the organization. The each computer of the department is

termed as the trading terminal. The each terminal is assigned with NCFM certified dealers, who

is in charge of each portal will do the trade according to the client request. The terminal is

managed by either NEAT (National Exchange for Automated Trading) software or ODIN (Open

Dealers Integrated Network) software. The client can also place his through written request or

through the telephone, in this the order will be place d by the dealer.

b. Internet Trading:

The internet trading is a facility provides by the company in order to trade the securities from his

convenient place like his office, home etc. the order will be placed by the client itself, and he can

make changes before the trade is done for changing the price, cancellation of the order.

DELIVERY AND DEPOSITORY DEPARTMENT

Delivery refers to the share that bought on particular day are not sold on that day itself and

holding of the share for an appreciation in the value of the security and to trade it on a future

date. Deliver Instruction Slip: it is a slip the client should fill and gave to the dealer regarding the

purchase of the share.

There are two procedures to move the share namely

a. Power of attorney

This is which the client signs at the time of opening a trading account and depository participant

account. If the client has given the power of attorney, HEDGE EQUITIES (P) LTD will have the

power to transact the clients stock without pay –in slips.

b. Easiest

It is secured internet enabled service which means Electronic Access to Securities information

and Execution of Secured Transaction. This is facility wherein the clients can give delivery

instructions via internet. Easiest is a facility provided by CDSL.

The activities related with the depository department

a. Depository function

b. Dematerialization

c. Pledging

EQUITY RESEARCH DEPARTMENT

The function of the department is to study the details regarding the share or securities and

to make prediction regarding the future performance of the company. The following types of

approaches done through this department:

a) Fundamental analysis

b) Technical analysis

Management

1. Alex K Babu

Managing Director

2. Bhuvanendran

CEO

3. Bobby J Arakunnel

COO

4. Mr. Mohanlal

Director

5. Mr. Krishnadas

Director

6. Mr. Pradeep Kumar C

Director