Saturday, September 8, 2007

Motilal Oswal Securities Ltd.

Motilal Oswal Securities is a leading research and advisory based stock broking house of India, with a dominant position in both institutional and retail broking. Asiamoney Brokers Poll 2005 has ranked us the best Indian brokerage firm. There are various other categories where it has been rated number one – most independent research, sales and service etc by the Brokers Poll.

In March 2006, AQ Research, a firm that analyses the accuracy of a broker’s research call, declared Motilal Oswal Securities the best research house for Indian stocks.

Motilal Oswal Securities has witnessed rapid organic growth due to favorable market conditions as well as efforts put in by the company itself. FY05 and FY06 saw the company grow inorganically through acquisition of three significant regional broking firms from Andhra Pradesh, Karnataka and Kerala. Over a period of time, MOSL has plans to acquire many more regional broking firms to gain solid footing in various regions of India.

"The company was founded in 1987 as a small sub-broking unit, with just two people running the show. Focus on customer-first-attitude, ethical and transparent business practices, respect for professionalism, research-based value investing and implementation of cutting-edge technology have enabled us to blossom into an almost two thousand-member team. "[Co. website:, 8/9/2007]

The institutional business unit has relationships with several leading foreign institutional investors (FIIs) in the US, UK, Hong Kong and Singapore. In a recent media report, they were rated as one of the top-10 brokers in terms of business transacted for FIIs.

The retail business unit provides equity investment solutions to more than 1,61,000 investors through 1017 outlets spanning 375 cities and 24 states. They provide advice-based broking (equities and derivatives), portfolio management services (PMS), e-Broking, depository services, commodities trading, IPO and mutual fund investment advisory services.

Its Value PMS Scheme gave a 402.74% return since inception ( Feb 2003) , ( Sensex is 270.69% & Nifty is 245.11%). The perfomance of Value Hedging since inception ( Oct 2005) is 32.76%.

Such an outstanding performance can be only attributed to our single-minded focus on research-based value investing, the company claims. Motilal Oswal Securities invests almost 5-10% of its revenue on equity research and hires and trains the best resources to become advisors to its valued clients.

Wealth Creation Study, authored by Mr Raamdeo Agrawal, Managing Director, is now in its eleventh year. Investors keenly await this annual study for the wealth of information it has on how companies created wealth during the preceding five years.

The organization finds its strength in its team of young, talented and confident individuals. Qualified professionals carry out different functions under the able leadership of its promoters, Mr.Motilal Oswal and Mr. Raamdeo Agrawal. Stringent employee selection process, focus on continuous training and adoption of best management practices drive the quest to achieving our Vision,the company states.

MOSt Guiding Principles & Core Values

Customer interest is paramount
Ethical and transparent business practices
Respect for professionals,associates and business partners

History of the Company

» Mr. Motilal Oswal and Mr. Raamdeo Agrawal lay the foundation of a great partnership by starting a sub-broking firm. The venture stands out from the rest due to their approach of Research-based broking even when sub-brokers.

» After just three years in the business, ”Motilal Oswal” is formed through acquisition of membership on The Bombay Stock Exchange (BSE). Three more memberships taken in later years.

» MOSt acquires NSE Membership and plans for major expansion of its retail network. » Inquire (Indian Equity Research) is formally created at a 2500 sq. ft office in South Mumbai with bigger and better quality infrastructure than the corporate office. Since then nearly 20% of revenue is allocated to research. First Domestic Stock broking house to have such a strong Research focus » ”Motilal Oswal” enters Institutional Broking business.

» ”Motilal Oswal” gets incorporated as Motilal Oswal Securities Ltd.

» Wealth Creation Study started. First of its kind study initiated to identify biggest and fastest wealth creating companies in Indian Stock markets.

» Mr. Motilal Oswal joins the Governing Board of The Stock Exchange, Mumbai.

» Mr. Raamdeo Agrawal starts attending legendary billionaire investor Warren Buffett’s Annual General Meetings of Berkshire Hathway Inc. He still continues to attend it every year.
» The Wealth Creation Study started in 1996 culminates into Wealth Creation Seminar and Awards function in 1998.
» The company employs Samsika Consultants, Jagdeep Kapoor, to develop its marketing and branding efforts.
» First Stock Broking house to brand its services as a research and advise based broker.
» “Wealth Creation” Campaign started.
» launched. First broking house in India to go on the web.
» Becomes a Depository Participant of National Securities Depository Limited (NSDL).
» Inducts Mr. Ivan Mathias, former country head of Watson Wyatt Worldwide, on its Board to Directors to shape HR initiatives.

» Both Mr. Motilal Oswal and Mr. Raamdeo Agrawal receive Rashtriya Samman Patra from Central Board of Direct Taxes for being amongst the top 50 tax payers in India from FY94-FY98
» Acquires its 100th Franchisee / Channel Partner and emerges as a leading player in the Indian Broking Sector
» Becomes a Depository Participant of Central Depository Services Limited (CDSIL)
» Company initiates plan to become a big player.
» HR department expanded
» An initiative to set up training institute was launched. Dr. K.V.S.S. Narayana Rao, Professor, NITIE was recruited to formalize the training initiative.

» Legendary marketing guru Shunu Sen’s services taken to revitalise retail marketing strategy and branding efforts.
» Starts offering Derivatives products and advisory services on both BSE as well as NSE
» Company suffered in the market downturn.
» Complete HR department was disbanded.

» MOSt consolidates its retail operations & upgrades its IT / Back Office infrastructure to cater to its growing network of branches, Franchisees and Channel Partners.
» Retail network completes coverage of 100 cities in India.
» Direct servicing of HNI clients is initiated.
» 10,000 Depository clients acquired.

» MOSt Portfolio Management Services launched with Mr. Raamdeo Agrawal as the Portfolio Manager. Uniquely structured performance related fees.
» Inquire team is successful in capturing the uptrend in Banking, Auto and Infrastructure sectors.
» 15,000 Depository clients acquired.
» 9 own branches setup at 7 cities to provide Equity Advisory Services.
» 150 outlets in 110 cities across 18 states & one Union Territory in India manned by 1000 people servicing over 15,000 Retail and Institutional Investors.

» Presence expanded to 270 outlets in 150 cities and 20 states
» Value PMS delivers a whopping 160% post tax returns for the period ended April 2004
» Bulls Eye PMS - A momentum based PMS launched
» Start of the Solid Research Solid Advice campaign


» » » »
Asiamoney Brokers Poll 2005 rates Motilal Oswal Securities - Best Local Brokerage, Most Independent Research House, Best in Sales and ServiceLaunches two new Portfolio Management Schemes - Value Hedging for derivatives and Discover Value for the Rs5 lakh to Rs50 lakh categoryAcquires local brokerage Gayatri Capitals from Andhra Pradesh and Varghese from BangaloreDeepest distribution in the stock broking segment with 700 outlets in 320 cities and 1.2 lakh clients


» » » » » » » » »
Places 9.29% with two leading private equity investors - New Vernon Private Equity Limited and Bessemer Venture PartnersIssues 14% of companies equity to employees as ESOPsAcquires a leading south Indian brokerage firm - Peninsula Capital MarketsEnters Private Equity and plans entry into Investment Banking businessesValue PMS gives 390% returns to its investors between Feb 2003 and March 2006Relaunches its e-Broking service through a nationwide campaign. First advice-based online trading proposition in the Indian marketsAnother milestone in distribution - 1017 outlets, 375 cities, serving 1.61 lakh clientsHas a 1400 member team working to achieve the company's vision

Research based value investing
Cutting edge technology to ensure world-class customer service

People behind the organization

Mr. Motilal Oswal
Chairman and Managing Director

Mr. Motilal Oswal is the promoter of Motilal Oswal Securities Ltd. He is an member of Institute of Chartered Accountants of India and started the business along with the co-promoter Mr. Raamdeo Agarwal in 1987.Business Administration is his forte, Honesty, transparency and client goodwill form the core of his business practice.

He states, “Service is required in everything, in research, in execution and in settlement. It is going to be the key to survival. If you give good service and value to your clients, it will translate into good business.”

Mr. Raamdeo Agrawal
Joint Managing Director

Mr. Raamdeo Agrawal is the co-promoter of Motilal Oswal Securities Ltd. A member of the Institute of Chartered Accountants of India & an equity research stalwart, he is the man behind the strong research capability at MOSt.He is respected by all in the research and broking industry for his valuable insights on issues related to equity research. His firm belief in “Value-Investing”, as practiced by the legendary Warren Buffett and Charlie Munger, forms the core of MOSt investment philosophy.

Public Relations Management


Our PR support for this brokerage firm lasted four years during which we achieved the following:

Minimised damage during nation-wide tax raids on them by communicating facts that it was just an enquiry and that they were not found guilty. During such crisis media have to be managed properly or else they exaggerate and cause harm. This was successfully prevented.

Ensured tremendous media coverage of the firm’s promoters Mr Motilal Oswal and Mr Raamdeo Agrawal on CNBC, ND TV, Business India, Business World, Business Today, Bombay Samachar, Gujarat Samachar etc. all leading to better business for the brokerage.

Got the firm’s products and services including Portfolio Management Services and brokerage reports of Buy and Sell for textiles, pharma, information technology as well as for individual companies into Economic Times, Financial Express, Business Standard continuously published … again leading to better business for the brokerage.
[, 8/9/2007]

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