A

SUMMER TRAINING REPORT

ON

“Comparative Analysis of SHAREKHAN and other Stock Broker House”

At

SHARE KHAN PVT.LTD.

In partial fulfillment for the degree of

Master of Business Administration

(Session 2012-2014)

Submitted to

“RANCHI UNIVERSITY, RANCHI”

UNDER THE GUIDANCE OF : Submitted by:

Mr. RAVI VERMA NAME - AJAY KUAR MAHTO

(ASST. MANAGER) R0LL NO –12MBA01020

Share khan Ltd. SPECIALIZATION-MARKETING MANAGEMENT

DELHI. COLLEGE – S.N. SINHA INSTITUE OF BUSINESS

MANAGAMENT, RANCHI.

1

DECLARATION

I hereby declare that this project work titled “COMPARATIVE ANALYSIS OFSHARE BROKER AT SHAREKHAN PVT. LTD” is a record of Original work doneby me under the guidance of MR. RAVI VERMA and that this project work hasnot formed the basis for the award of any Degree/Diploma/Associateship/Fellowship or similar title to any candidate of any University.

Name:-AJAY KUMAR MAHTO

SPECIALIZATION:-MBA

(MARKETING)

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ROLL NO: - 12MBA01020

PLACE- RANCHI

ACKNOWLEDGEMENT

A project report is never the sole product of a person whose name appears

on the cover. I deem it a time bound privilege and function to dedicate this

page of mine to helping hands for their cooperation & guidance that enabled

me to dedicate time and effort in framing analysis in conceivable system.

I would like to take this opportunity to thanks and acknowledge my deep

sense of gratitude to MR. RAVI VERMA, Assistant manager of SHAREKHAN

LTD. for his guidance and pain taking supervision during course of my project

work. His valuable advice, constructive criticism and suggestion for assigning

my study really helping me out in the project. I also thanks him for providing

full facilities required in submitting our report within a limited time span.

I also wish to place on record my gratitude to my faculty guide, col. S.K.

Sinha and to my mentor Mrs. K.K. Banerjee whose keen interest, timely and

constant encouragement and generous cooperation gave me confidence and

strength to progress this report. I would be failing my duty if I don’t mention

my friends and classmates who helped me at various moments during my

project

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SUBMITED BY:-

AJAY KUMAR MAHTO

EXECUTIVE SUMMARY

There is growing competition between brokerage firms in post reform India.

For investor it is always difficult to decide which brokerage firm to choose.

Research was carried out to find which brokerage house people prefer and to

figure out what people prefer while investing in stock market.

This study suggests that people are reluctant while investing in stock and

commodity market due to lack of knowledge.

Main purpose of investment is returns and liquidity, commodity market is

less preferred by investors due to lack of awareness. The major findings of

this study are that people are interested to invest in stock market but they

lack knowledge.

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Through this report we were also able to understand, what are our

Company’s (Share khan Ltd). Positive and strong points, on the basis of

which we come to know what, can be the basis of pitching to a potential

client.

We also gave suggestions to the company, what improvement can be done

to our product.

TABLE OF CONTENT

Chapter 1: Introduction

……………………………………………………………………….7-18

Introduction…………………….……………………………………………7 Back ground of stock exchange in India……………………....8-10 Basics of stock market……..……………………….……………....11-14 Securities available for trading…………………………………...15-18

Chapter 2: Company profile………………………………………………………….……

19-32

Introduction to company…………………………………………..19 Work structure of share khan ltd………………………………20-28 Market strategies………………………..……………...............28-30

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SWOT Analysis……………………..………………………………….31-32

Chapter 3: On line share trading and competitors…………………………….33-48

Online share trading………………………………………………..33 Share khan Trade Tiger account …………………….………34-35 Process on account opening……………………………….….36-37 Competitors information…………………….…….............38-47 Comparative analysis…………………………….................48

Chapter 4: Research Methodology………………………………………………49-52

Research methodology……………………………………….49-50 Method of data collection………………………………….50-52

Chapter 5: DATA Analysis and Interpretation………………………………53-62

Chapter 6: Observation and Finding……………………………………………63-65

Observation ………………………………………………………63 Finding …………………………………...……………………..…64 Suggestion……………………………….………………………..65

Chapter 7: Advantages and Limitation………………………………………..66-67

Chapter 8: Conclusion…………………………………………………………………68-

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Chapter 9: Bibliography………………………………………………………………69

Chapter 10: Annexure…………………………………………………………………70-71

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CHAPTER-1

INTRODUCTION

In most industrialized countries, a substantial part of financial wealth is not

managed directly by savers, but through a financial intermediary, which

implies the existence of an agency contract between the investor (the

principal) and a broker or portfolio manager (the agent). Therefore,

delegated brokerage management is arguably one of the most important

agency relationships intervening in the economy, with a possible impact on

financial market and economic developments at a macro level.

In most of the metros, people like to put their money in stock options

instead of dumping it in the bank-lockers. Now, this trend pick pace in small

but fast developing cities like Delhi, Chandigarh, Gorgon, etc. My research is

based on the residents of Delhi and its nearby areas.

As the per-capita-income of the city is on the higher side, so it is quite

obvious that they want to invest their money in profitable ventures. On the

other hand, a number of brokerage houses make sure the hassle free

investment in stocks. Asset management firms allow investors to estimate

both the expected risks and returns, as measured statistically. There are

mainly two types of Portfolio management strategies.

1. Passive Portfolio Strategy2. Active Portfolio Strategy

1. Passive Portfolio Strategy: A strategy that involves minimal

expectation input, and instead relies on diversification to match the

performance of some market index. A passive strategy assumes that

the marketplace will reflect all available information in the price paid

for securities.2. Active Portfolio Strategy: A strategy that uses available

information and forecasting techniques to seek a better performance

than a portfolio that is simply diversified broadly.

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BACKGROUND OF STOCK EXCHANGE IN INDIA

The emergence of stock market can be traced back to 1830. In Bombay,

business passed in the shares of banks like the commercial bank, the

chartered mercantile bank, the chartered bank, the oriental bank and the old

bank of Bombay and shares of cotton presses. In Calcutta, Englishman

reported the quotations of 4%, 5%, and 6% loans of East India Company as

well as the shares of the bank of Bengal in 1836. This list was a further

broadened in 1839 when the Calcutta newspaper printed the quotations of

banks like union bank and Agra bank. It also quoted the prices of business

ventures like the Bengal bonded warehouse, the Docking Company and the

storm tug company.

Between 1840 and 1850, only half a dozen brokers existed for the limited

business. But during the share mania of 1860-65, the number of brokers

increased considerably. By 1860, the number of brokers was about 60 and

during the exciting period of the American Civil war, their number increased

to about 200 to 250. The end of American Civil war brought disillusionment

and many failures and the brokers decreased in number and prosperity. It

was in those troublesome times between 1868 and 1875 that brokers

organized an informal association and finally as recited in the Indenture

constituting the “Articles of Association of the Exchange”. On or about 9th day

of July,1875, a few native brokers doing brokerage business in shares and

stocks resolved upon forming in Bombay an association for protecting the

character, status and interest of native share and stock brokers and

providing a hall or building for the use of the members of such association.

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As a meeting held in the broker’ Hall on the 5th day of February, 1887, it was

resolved to execute a formal deal of association and to constitute the first

managing committee and to appoint the first trustees. Accordingly, the

Articles of Association of the Exchange and the Stock Exchange was formally

established in Bombay on 3rd day of December, 1887. The Association is now

known as “The Stock Exchange

The entrance fee for new member was Re.1 and there were 318 members on

the list, when the exchange was constituted. The numbers of members

increased to 333 in 1896, 362 in 1916and 478 in 1920 and the entrance fee

was raised to Rs.5 in 1877, Rs.1000 in 1896, Rs.2500 in 1916 and Rs. 48,000

in 1920. At present there are 23 recognized stock exchanges with about

6000 stock brokers. Organization structure of stock exchange varies.

14 stock exchanges are organized as public limited companies, 6 as

companies limited by guarantee and 3 are non-profit voluntary organization.

Of the total of 23, only 9 stock exchanges have been permanent recognition.

Others have to seek recognition on annual basis.

These exchange do not work of its own, rather, these are run by some

persons and with the help of some persons and institution. All these are

down as functionaries on stock exchange. These are

1. Stockbrokers

2. sub-broker

3. market makers

4. Portfolio consultants etc.

1.) Stockbrokers

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Stock brokers are the members of stock exchanges.

These are the persons who buy, sell or deal in securities. A certificate of

registration from SEBI is mandatory to act as a broker. SEBI can impose

certain conditions while granting the certificate of registrations. It is

obligatory for the person to abide by the rules, regulations and the buy-law.

Stock brokers are commission broker, floor broker, arbitrageur etc.

Detail of registered brokers

Total no. of registered

brokers as on

31.03.2008

Total no. of sub-brokers as

on 31.03.2008

9000 24,000

2.) Sub-broker

A sub-broker acts as agent of stock broker. He is not a

member of a stock exchange. He assists the investors in buying, selling or

dealing in securities through stockbroker. The broker and sub-broker should

enter into an agreement in which obligations of both should be specified.

Sub-broker must be registered SEBI for a dealing in securities. For getting

registered with SEBI, he must fulfill certain rules and regulation.

3.) Market Makers

Market maker is a designated specialist in the specified

securities. They make both bid and offer at the same time. A market maker

has to abide by bye-laws, rules regulations of the concerned stock exchange.

He is exempt from the margin requirements. As per the listing requirements,

a company where the paid-up capital is Rs. 3 crore but not more than Rs. 5

crore and having a commercial operation for less than 2 years should appoint

a market maker at the time of issue of securities.

4.) Portfolio consultants

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A combination of securities such as stocks, bonds and

money market instruments is collectively called as portfolio. Whereas the

portfolio consultants are the persons, firms or companies who advise, direct

or undertake the management or administration of securities or funds on

behalf of their clients.

Partial fulfillment for degree of M.B.A. programmed, we received the

opportunity from Share khan Ltd. for our summer training project report. It is

basically stock brokering company which deals in security and derivative

market, Commodity market, mutual funds and Insurance etc.

INTRODUCTION OF STOCK MARKET

Before getting familiar with share market, the first and foremost things we

should know is to know are the basic of share market.

1. WHAT IS SHARES?

A Share or stock is a document issued by a company which entitles its holder

to be one of the owners of the company. A share is directly issued by a

company through IPO or can be purchased from the stock market. By owning

a share you can earn a portion of the company's profit called dividend.

Also, by buying and selling the shares you get capital gain. So, your return is

the dividend plus the capital gain. However, you also run a risk of making a

capital loss if you have sold the share at a price below your buying price.

2. WHAT ARE STOCK MARKETS?

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Stock Market is an organized set-up with a regulatory body and the members

who trade in shares are registered with the stock market and regulatory body

SEBI.

A stock market is a market for the trading of company stocks, share and

derivatives.

Thus, the shares listed in the Bombay Stock Exchange (BSE) will be different

from those in the Delhi Stock Exchange (DSE), because a company may not

want to be listed in a particular stock exchange or may not fit the eligibility

requirements of the particular exchange.

The stock market is also called the secondary market as it involves trading

between two investors.

Primary markets

The primary markets is that part of the capital markets that deals with the

issuance of new securities are bought by way of the public issue directly

from the company.

Secondary markets

The secondary marking is the financial market for trading of securities that

have already been issued in an initial private or public offering. In

the secondary market, securities are sold by and transferred from one

investor or speculator to another.

3. WHAT IS A STOCK EXCHANGE?

A stock exchange, share market or bourse is a corporation or mutual

organization which provides facilities for stock brokers and traders, to trade

company stock and other securities.

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The Bombay stock exchange limited or BSE has a nation-wide reach with a

presence in 417 cities and towns of India. Its index or market indicator is

known as the sensex.

The S&P CNX NIFTY or simply NIFTY is the leading for large companies on

the National Stock Exchange of India. It consists of 50 companies

representing 24 sectors of the economy, and representing approximately

47% of the traded value of all stocks on the National Stock Exchange of

India.

4. WHO IS A BROKER?

A stockbroker is person who is licensed to trade in share in shares. Broker

also have direct access to the share market and can act as your agent in

share transactions. For this service they charge a fee. They can also offer

additional serves like advice on debentures, government bonds and listed

property trusts and non-listed investment options (cash management trusts,

property and equity trusts.

5. WHAT IS ADEMAT A/C?

Investor who wish to trade in the market need to have a dematerialized, or

de-mat account. In India, the government has mandated two entities-

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National Securities Depository, or NSDL and Central Depository Services

(India), or CDSL –to be the custodian of dematerialized securities.

6. BUYING AND SELLING OF DEMARTERIALISED SECURITIE

What is the procedure for selling dematerialized securities?

The procedure for selling dematerialized securities is very simple. After you

have sold the securities, you would instruct your DP to debit your account

with the number of securities sold by you and credit your broker’s clearing

account. This delivery instruction has to be given to your DP using the

delivery instruction slips given to you by your DP at the time of opening the

account.

How can I purchase dematerialized securities?

For receiving de-mat securities you may give a one-time standing instruction

to your DP. This standing instruction can be given at the time of account

opening or later, alternatively, you may choose to give separate receipt

instruction every time some securities are to be received.

7. HOW TO RECEIVE INCOME FROM SHARE?

We invest in share to make money- either through a share’s capital growth,

i.e the amount by which the share price increase in value over time, or

through the dividend it pays to its share holders. Dividends are payments

made by companies to share holders from their profits.

8. HOW TO MAKE INVESTMENT DECISIONS?

The stock market has, perhaps, the most exciting investment opportunities

for the investor community. At the same time, it could be unnerving and

scary. In fact, equity investment has always remained a big challenge, not

only for retail but institutional investors too.

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In short, investing in equities can be a difficult proposition for retail

investors. However, equity must from a part of every investor’s age,

monetary requirement, risk appetite etc.

To cope with volatility, it is important to have a disciplined and systematic

approach to equity investment. Set your own rules and more importantly,

follow them religiously, indeed, the mantra for successful equity investment

is a well thought-out, disciplined investment and decisions based on

company fundamental are essential ingredients for successful investment.

SECURITIES AVAILABLE FOR TRADING

The capital market (equities) segment of NSE facilities trading in the

following instruments:

1. Shareo Equity shareo Preference share

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2. Debentureso Partly convertible debentureso Fully convertible debentureso Non convertible debentureso Warrants/coupons/secured premium notes/other hybrido Bonds

3. Units of mutual fundso open endedo close ended

STOCK EXACHAGE

The stock exchange in India, under the overall supervision of the regulatory

authority, the securities and exchange Broad of India (SEBI), provide a

trading platform, where buyers and sellers can meet to transact in securities.

ROLE OF STOCK EXCHANGE

Facilities listing of securities Register members stock brokers, and sub brokers Make and enforce bylaws Provides trading platform to investors Manage risk in securities transactions Provide indices

VARIOUS EXCHANGE IN INDIA

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Ahmadabad Stock Exchange Bangalore Stock Exchange Bombay Stock Exchange Calcutta Stock Exchange Delhi Stock Exchange Association Hyderabad stock exchange Inter-connected stock exchange of India Jaipur stock exchange Ludhiana stock exchange association Mumbai stock exchange National stock exchange of India (NSE) OTC exchange of India

SOME FOREIGN STOCK EXCHANGE

NASDAQ HANG SANG S&P 500 DOWJONES

Leading stock exchange in India

NATIONAL STOCK EXCHANGE

NSE, promoted by leading financial institution, was incorporated in

1992 as a corporate entity Trading in equity and debt market commenced in 1994. It’s largest exchange in the country in terms of trading volumes. The stock exchange, Mumbai, popularly known as “BSE” was

established in 1875 as the “Native Share and Stock Brokers

Association”.

NIFTY

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Nifty is an indicator of all the major companies of NSE. The Nifty index is a composite of the top 50stocks listed on the

National stock exchange. It is a simplified tool which helps investors &

ordinary people alike, understand what happen in the stock market by

extension, the economy.

BOMBAY EXCHANGE STOCK

The BSE or Bombay stock exchange sensitive Index is a value weighted index. It consists of the 30largest and most actively traded stocks,

representative of various sectors, on the BSE. These companies account for around one fifth of the market

capitalization of the BSE.

SENEX

Sensex is an index, an index is basically indicator. It gives you a

general idea about whether most of the stock share gone up or

most of the stocks have gone down. The sensex is an indicator of

all the prices of the major companies of the BSE(Bombay stock

exchange)

MARKETING TIMINGS

Trading on the equities segment takes place on all days of the week (exceptSaturday and Sunday holiday declared by the exchange in advance).

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The market timing of the equities segment is:-

Normal market timings ( NSE & BSE): 09.55pm to 03.30pm Post closing timings (NSE)-03.50pm to 04.00pm Post closing timing (BSE)- 03.40pm to 04.00pm

After market close, NSE and BSE both have introduction

CHAPTER-2

INTRODUCTION OF THE COMPANY

Share khan is one of the leading retail brokerage of City Venture which is

running successfully since 1922 in the country. Earlier it was the retail

broking arm of the Mumbai-based SSKI Group, which has over eight decades

of experience in the stock broking business. Share khan offers its customers

a wide range of equity related services including trade execution on BSE,

NSE, Derivatives, depository services, online trading, investment advice etc.

Earlier with a legacy of more than 80 years in the stock markets, the SSKI

group ventured into institutional broking and corporate finance 18 years ago.

SSKI is one of the leading players in institutional broking and corporate

finance activities. SSKI holds a sizeable portion of the market in each of

these segments. SSKI’s institutional broking arm accounts for 7% of the

market for Foreign Institutional portfolio investment and 5% of all Domestic

Institutional portfolio investment in the country. It has 60 institutional clients

spread over India, Far East, UK and US. Foreign Institutional Investors

generate about 65% of the organization’s revenue, with a daily turnover of

over US$ 2 million.

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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 decisions and to simplify the process of

investing in stocks.

VISION

To be the best retail brokering Brand in the retail business of stock market.

MISSION

To educate and empower the individual investor to make better investment

decisions through quality advice and superior service.

WORK STRUCTURE OF SHAREKHAN

Share khan has always believed in investing in technology to build its

business. The company has used some of the best-known names in the IT

industry, like Sun Microsystems, Oracle, Microsoft, Cambridge Technologies,

Nexgenix, Vignette, VeriSign Financial Technologies India Ltd, Spider Software

Pvt Ltd. to build its trading engine and content. The City Venture holds a

majority stake in the company. HSBC, Intel & Carlyle are the other investors.

On April 17, 2002 Share khan launched Speed Trade and Trade Tiger, are

net-based executable application that emulates the broker terminals along

with host of other information relevant to the Day Traders. This was for the

first time that a net-based trading station of this caliber was offered to the

traders. In the last six months Speed Trade has become a de facto standard

for the Day Trading community over the net.

Share khan’s ground network includes over 700+ Share shops in 130+ cities

in India.

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The firm’s online trading and investment site - www.sharekhan.com - was

launched on Feb 8, 2000. 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 3 Lacks customers. The number of trading

members currently stands at over 7 Lacks. While online trading currently

accounts for just over 5 per cent of the daily trading in stocks in India, Share

khan alone accounts for 27 per cent of the volumes traded online.

The Corporate Finance section has a list of very prestigious clients and has

many ‘firsts’ to its credit, in terms of the size of deal, sector tapped etc. The

group has placed over US$ 5 billion in private equity deals. Some of the

clients include BPL Cellular Holding, Gujarat Pipavav, Essar, Hutchison,

Planetasia, and Shopper’s Stop.

Finally, Share khan shifted hands and City venture get holds on it.

SERVICES PROVIDED BY SHAREKHAN

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BENEFITS OF SHARE KHAN

· Free Depository A/c

· Instant Cash Transfer

· Multiple Bank Option.

· Secure Order by Voice Tool Dial-n-Trade.

· Automated Portfolio to keep track of the value of your actual purchases.

· 24x7 Voice Tool access to your trading account.

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· Personalized Price and Account Alerts delivered instantly to your Mobile

Phone & E-mail address.

· Live Chat facility with Relationship Manager on Yahoo Messenger

· Special Personal Inbox for order and trade confirmations.

· On-line Customer Service via Web Chat.

· Enjoy Automated Portfolio.

· Buy or sell even single share

· Anytime Ordering.

Share khan offers the following products:-

CLASSIC ACCOUNT

This is a User Friendly Product which allows the client to trade through

website www.sharekhan.com and is suitable for the retail investors who is

risk-averse and hence prefers to invest in stocks or who do not trade too

frequently.

Features

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· Online trading account for investing in Equity and Derivatives viawww.sharekhan.com

· Live Terminal and Single terminal for NSE Cash, NSE F&O & BSE.

· Integration of On-line trading, Saving Bank and De-mat Account.

· Instant cash transfer facility against purchase & sale of shares.

· Competitive transaction charges.

· Instant order and trade confirmation by E-mail.

· Streaming Quotes (Cash & Derivatives).

· Personalized market watch.

· Single screen interface for Cash and derivatives and more.

· Provision to enter price trigger and view the same online in market watch.

SPEEDTRADE

Speed trade is an internet-based software application that enables you to

buy and sell in an instant.

It is ideal for active traders and jobbers who transact frequently during

day’s session to capitalize on intra-day price movement.

Features

· Instant order Execution and Confirmation.

· Single screen trading terminal for NSE Cash, NSE F&O & BSE.

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· Technical Studies.

· Multiple Charting.

· Real-time streaming quotes, tic-by-tic charts.

· Market summary (Cost traded scrip, highest clue etc.)

· Hot keys similar to broker’s terminal.

· Alerts and reminders.

· Back-up facility to place trades on Direct Phone lines.

· Live market debts.

DIAL-N-TRADE

Along with enabling access for trade online, the CLASSIC and SPEEDTRADE

ACCOUNT also gives Dial-n-trade services. With this service, one can dial

share khan’s dedicated phone lines 1-800-22-7500, 3970-7500.

Beside this, Relationship Managers are always available on Office

Phone and Mobile to resolve customer queries.

SHAREMOBILE

Share khan had introduced Share mobile, A mobile based software where

one can watch Stock Prices, Intra Day Charts, Research & Advice and Trading

Calls live on the Mobile.

(As per SEBI regulations, buying-selling shares through a

mobile phone are not yet permitted.)

PREPAID ACCOUNT

Customers pay Advance Brokerage on trading Account and enjoy

uninterrupted trading in their Account. Beside this, great discount are also

available (up to 50%) on brokerage.

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Prepaid Classic Account : - Rs. 2000

Prepaid Speed trade Account : - Rs. 6000

IPO ON-LINE

Customers can apply to all the forthcoming IPOs online. This is quite hassle-

free, paperless and time saving. Simply allocate fund to IPO Account, Apply

for the IPO and Sit Back & Relax.

MUTUAL FUND ONLINE

Investors can apply to Mutual Funds of Reliance, Franklin Templeton

Investments, ICICI Prudential, SBI, Birla, HDFC, DSP Merrill Lynch, PRINCIPAL

and TATA with Share khan.

ZERO BALANCE ICICI SAVING ACCOUNT

Share khan had tied-up with ICICI bank for Zero Balance Account for Share

khan’s Clients. Now their customers can have a Zero Balance Saving Account

with ICICI Bank after your de-mat Account creation with Share khan.

CHARGE STRUCTURE

Fee Structure for General Individuals: -

Charge Classic Account Speed Trade Account

Account Opening Rs. NIL Rs. NIL

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Monthly

Commitment

Rs. NIL Rs. NIL

Brokerage Intra-day – 0.05 %

Delivery - 0.50 %

Intra-day - 0.05%

Delivery - 0.50%

* Taxes as per govt.

Depository Charges

Account Opening Charges Rs. NIL

Annual Maintenance Charges Rs. NIL first year.

Rs. 300/= p.a. from second

calendar year onward

REASONS TO CHOOSE SHAREKHAN LIMITED

Experience

SSKI has more than eight decades of trust and credibility in the Indian stock

market. In the Asia Money broker's poll held recently, SSKI won the 'India's

best broking house for 2004' award. Ever since it launched Share khan as its

retail broking division in February 2000, it has been providing institutional-

level research and broking services to individual investors.

Technology

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With their online trading account one can buy and sell shares in an instant

from any PC with an internet connection. Customers get access to the

powerful online trading tools that will help them to take complete control

over their investment in shares.

Accessibility

Share khan provides ADVICE, EDUCATION, TOOLS AND EXECUTION services

for investors. These services are accessible through many centers across the

country (Over 650 locations in 150 cities), over the Internet (through the

website www.sharekhan.com) as well as over the Voice Tool.

Knowledge

In a business where the right information at the right time can translate into

direct profits, investors get access to a wide range of information on the

content-rich portal, www.sharekhan.com. Investors will also get a useful set

of knowledge-based tools that will empower them to take informed decisions.

Convenience

One can call Share khan’s Dial-N-Trade number to get investment advice and

execute his/her transactions. They have a dedicated call-center to provide

this service via a Toll Free Number 1800-22-7500 & 39707500 from anywhere

in India.

Customer Service

Its customer service team assist their customer for any help that they need

relating to transactions, billing, de-mat and other queries. Their customer

service can be contacted via a toll-free number, email or live chat on

www.sharekhan.com.

Investment Advice

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Share khan has dedicated research teams of more than 30 people for

fundamental and technical research. Their analysts constantly track the

pulse of the market and provide timely investment advice to customer in the

form of daily research emails, online chat, printed reports etc.

MARKETING STRATEGIES OF THE COMPANY

Tele calling:-The Company uses the Telecalling/ phone calling to reach

the customers, which are interested. This is the most important

technique to save time and giving demo of the company’s product

through making call in order to know the customer interest towards the

product. This is the strategy with which one can motivate customer to

go for the product and etc.

LMS: It is leads management system which means leads are

generated by the customer who wants to purchase the product of the

company. Company provides facility to the customer on online to fill

the registration form through which the companies’ executives can

provide more information to the customer.

Yellow Pages: Yellow pages are used to gather data for making calls

so that customer who did not fine time and are unaware of the product

can know about the product. Customers are given freedom to ask

question related to the products this is the technique used to increase

the awareness of the company.

Canopy’s: This is the most important technique used by share khan

securities to market its product in different areas of the city, company

put their canopies and customer who are willing to know about the

product come forward and provide best of their knowledge. Besides

this company executives ask customer to fill the questionnaire that

tells the company about the levels of brand awareness. It also

increases the product awareness because it is generally put at the

crowdies places like near main

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Markets, cinemas, hotels, atm or etc where people come in good

numbers.

Direct Marketing: Share khan executive’s reaches to the does of the

customer by fixing appointments with the interested customer, they

describe the details of the product. Executive give demonstration of

the products so that customer can understand better.

Advertising: Advertising is the most important tool of increasing

awareness of the product and this is the most widely used technique

by the company to tell about the new features and new lunch by giving

briefing of the product. Share khan use banners, distribution of

pamphlets, and advertisement in newspapers, magazines.

References: Share khan strategy is to satisfy the customer in terms of

their need by providing them timely services and knowledge about the

trade in equities, mutual funs by giving tips for investment advises

through e-mails or toll free calls for this purpose customers are

provided relationship manager who give investment advice and also

make transaction on their behalf on demand. B satisfying customer

executives ask their references that not only increase the awareness

but also increase the good will of the company. Competitiveness: The Company is innovative and uses the latest

technology to improve the product to fulfill the demands of the

customers. Share khan makes it easy for the customer to make online

transaction of shares. The company is competitive in terms of the

product price and facilities it offers to the customer. Internet: Company provides detailed information about the products

on Internet so that customer can know about the product easily and

completely

31

SHAREKHAN BUSINESS

1. Brokering business

2. White feathering house production.

32

BRANCHES ALL OVER INDIA

SWOT ANALYSIS

Strengths:

It is a pioneer in online trading with a turnover of Rs.400crores and

more than 800 peoples working in the organization.

33

SSKI the parent company of Share Khan has more than eight decades

of trust and credibility in the Indian stock market. In the Asian Money

Broker’s poll SSKI won the “India’s best broking house for 2004” award.

Share Khan provides multi-channel access to all its customers through

a strong online presence with www.sharekhan.com, 250 share shops in

130 cities and a call-center based Dial-n-Trade facility

Share Khan has dedicated research teams for fundamental and

technical research. Which constantly track the pulse of the market and

provide timely investment advice free of cost to its clients which has a

strike rate of 70-80%

Weakness:

Localized presence due to insufficient investments for country wide

expansion.

Lack of awareness among customers because of non-aggressive

promotional strategies (print media, newspapers, etc).

Lesser emphasis on customer retention.

Focuses more on HNIs than retail investors which results in meager

market-share as compared to close competitors.

Opportunities:

With the booming capital market it can successfully launch new

services and raise its client’s base. It can easily tap the retail investors with small saving through

promotional channels like print media, electronic media, etc. As interest on fixed deposits with post office and banks are all time

low, more and more small investors are entering into stock market.

34

Abolition of long term capital gain tax on shares and reduction in short

term capital gain is making stock market as hot destination for

investment among small investors. Increasing usage of internet through broadband connectivity may

boost a whole new breed of investors for trading in securities.

Threats:

Aggressive promotional strategies by close competitors may hamper

Share Khan’s acceptance by new clients.

Lack of sufficient branch-offices for speedy delivery of services.

Other players are providing margin funds to investors on easy terms

where as there is no such facility in share khan.

More and more players are venturing into this domain which can

further reduce the earnings of Share Khan.

CHAPTER-3

ONLINE SHARE TRADING AND COMPETITORS

Online share trading

With a Share khan online trading account, you can buy and sell shares in an

instant! Anytime you like and from anywhere you like.

You can choose the online trading account that suits your trading habits and

preferences - the Classic Account for most investors and Trade tiger for active day

35

traders. Your Classic Account also comes with Dial-n-Trade completely free,

which is an exclusive service for trading shares by using your telephone.

KEY FEATURES OF ONLINE TRADING

Freedom from paperwork

Instant credit and money transfer

Trade from any net enabled PC

After hour orders

Online orders on the phone

Timely advice and research reports

Real-time Portfolio tracking

Information and Price alerts

When beginning your foray in investing in shares, we need a lot of things -

from the right tools and the right information at your disposal, to assistance

when we need it and advice on investing. SHAREKHAN has been in this

business for over 80 years now, and we can get a host of services and tools

that are difficult to find in one place anywhere else. The Share khan First

Step program, built specifically for new investors is testament to their

commitment to being our guide throughout our investing lifecycle.

SHAREKHAN TRADE TIGER ACCOUNT

36

These accounts for active traders who trade frequently during the day's

trading session .Following are few popular features of Speed Trade account.

Features of trade tiger account

Real-time streaming quotes with Instant order Execution &

Confirmation

Hot keys similar to a traditional broker terminal

Alerts and reminders

Back-up facility to place trade on Direct Phone lines

A single platform for multiple exchange BSE & NSE (Cash & F&O), MCX,

NCDEX, Mutual Funds, IPOs

Multiple Market Watch available on Single Screen

Multiple Charts with Tick by Tick Intraday and End of Day Charting

powered with various Studies

Graph Studies include Average, Band- Bollinger, Know Sure Thing,

MACD, RSI, etc

Apply studies such as Vertical, Horizontal, Trend, Retracement & Free

lines

User can save his own defined screen as well as graph template,

that is, saving the layout for future use

User-defined alert settings on an input Stock Price trigger

37

Tools available to gauge market such as Tick Query, Ticker, Market

Summary, Action Watch, Option Premium Calculator, Span Calculator

Shortcut key for FAST access to order placements & reports

Online fund transfer activated with 12 Banks

SAMPLE OF TRADE TIGER

38

39

PROCESS ON ACCOUNT OPENING

LEAD MANAGEMENT SYSTEM (LMS)/ REFERENCES

CONTACT

TELEPHONE AND PERSONAL VISIT

APPOINMENT

DEMONSTRATION

AGREE DISAGREE

DOCUMENTATION

FILLING THE FORM

SUBMISSION THE FORM

LOGIN OF THE FORM

SENDIND ACCOUNT OPNING KIT TO CUSTOMER

TRADING

How to open account with Share khan?

40

No

For online trading with Share khan, investor has to open an account.

Following are the ways to open an account with Share khan:

Call them at phone number provided below and ask that you want to

open an account with them.

o Call on Toll free number: 1-800-22-7500 to speak to a Customer

Service executive

o If you are in Mumbai call on 022-66621111

Visit one of their branches. Share khan has a huge network all over

India. Click on http://sharekhan.com/Locateus.aspx this link to find out your nearest

branch. Just select the place near you and you'll find a manager to

assist you there.

You can send them an Email on info@sharekhan.com to know about

their products and services.

If you wish to chat with customer service representative, you can join the

chat session

41

COMPETITORS INFORMATION

There are many competitors in the north region like KARVY, HDFC

SECURITIES, INDIABULL, ICICI DIRECT, 5PAISE.COM, INDIA

INFORLINE, AND KOTAK.

But i have selected above mention5 companies to compares with share

khan ltd.

The selected five companies are follows-

1. 5paisa.com2. Kodak Street3. India Bull4. ICICI Direct5. HDFC Security

5PAISE.COM

Company Background

India info line was founded in 1995 and was positioned as a research firm in

2000 e-broking was started under the brand name of 5paisa.com. Apart

from offering online trading in stock market the company offers mutual funds

online. It also acts as a distributor of various financial services i.e. GOI

42

securities, Company Fixed Deposits, Insurance, Limited ground network,

present in 20 Cities.

Online account types

1. Investor terminal

Account opening: 500

De-mat 1st year 250

Initial margin: 2500(compulsory)

Min margin retainable: 1000

Brokerage:

Intraday- 0.10% + ST

Delivery – 0.50% + ST

2. Trader TerminalA/c opening: 500De-mat: 250

Initial Margin: 5000(compulsory)

Min margin retainable: 1000

Brokerage

Intraday- 0.10% + ST

Delivery - 0.50% + ST

43

Account access charges

Monthly: Rs. 800

Downtime

Recent past 5 paisa trader terminal is experiencing high frequency downtime

between 3:00 to 3:30 pm due to server load

Manual accounting

The 5 paisa accounting system is manual, online fund transfer through bank

is not credited unstably.

Limit is provided EOD for shares sold from DP, or call. Similarly limit released

for shares sold under BTST is manual. Delay in receiving payout of clear

funds from trading to bank account.

Min account balance

Min Rs.1000 is to be maintained in form of cash/securities to keep account

active. This can be withdrawn only on closure of account.

KOTAK STREET

Company Background

Kotak Street is the retail arm of kotak securities. Kotak Securities limited is a

joint venture between Kotak Mahindra Bank and Goldman Sachs.

44

Online account type

Twin advantage/ green signal: 2 DP’s, limit against shares.

Free way: flat Rs 999 cover charge p.m. 0.03% per transaction.

High traders: 6 times exposure cash and derivatives, auto sq off 2:55

Cash expressway: spot payment, additional 0.5% charges.

For kotak fast lane/ keatlite/ keat desktop are trading interfaces keat desktop

with advanced tools comes at a charge of Rs. 500 non refundable.

Pricing of kotak

A.O. 500, De-mat 22.5 per month, Initial margin: Rs 5000, Min margin

retainable: Rs. 100 Brokerage slab wise: - Higher the volume, lower the

brokerage. Even older customers (on 0.25% and 0.40%) have been moved to

the slab wise structure.

Slab structure of kotak

Delivery

volume

P.M

Brokerage Square volume

off P.M

Brokerage

<1 lakh 0.65% <10 lakhs 0.10% each leg

1 lakh -5 lakhs 0.60% 10 lakh- 25 lakh 0.08% each leg

5 lakhs – 10

lakhs

0.50% 25 lakhs – 2 cr. 0.06% each leg

10 lakhs –20

lakhs

0.40% 2 cr. – 5 cr. 0.05% each leg

20 lakhs –60

lakhs

0.30% >5 cr. 0.04% each leg

45

60 lakhs – 2 cr. 0.25%

>2 cr. 0.20%

* DP charges extra

* Brokerage is inclusive of taxes

INDIABULLS

Company Background

India Bulls has retail financial Services Company present in 70 locations

Covering 62 cities. It offers a full range of financial services and Products

ranging from Equities to Insurance. 450 + Relationship Managers who act as

personal financial advisors

Online account type

Signature account: Plain vanilla account with focus on equity analysis. The

equity analysis is a paid service even for account holders.

Power India bulls: Account with sophisticated trading tools, low

commissions and priority access to R.M.

Pricing of India bulls accounts:

Signature account:

Account opening: 250/=

De-mat Rs. 200 if POA is signed, No AMC for this DP

Initial Margin Nil

Brokerage: negotiable

Power India bulls:

Account opening: 750/=

46

De-mat Rs. 200 if POA is signed, No AMC for this DP

Initial Margin Nil

Brokerage: negotiable

Paid Research

Scheme FacilityWeb based 1 month 500 View and print on websiteWeb based 1 year 6000 View and print on websitePrint report 1 month 750 View and print on website + 10 reports

deliveredPrint report 1 year 9000 View and print on website + 10 reports

delivered

Deal clinchers V/S India bulls.

POA for Clients DMAT

All shares held by client trading with IB are moved to IB Pool Account and the

same is shown as a reflection in client DP account. Charges are levied to

move shares from IB pool Account to client DP account

Paid research services

Access to a research even for and IB trading account hold is charges a min.

of Rs 500 a month.

Margin funding hoax

The interest on funding starts on leveraged delivery trades from T + 1 day

itself @ 21 % p.a., on a daily basis.

The role of relationship manager

47

Each RM is looked upon as revenue generator and he gets a % on business

generator from client. This can lead to over leveraged (interest) & high

frequency (brokerage) trading, which may no be in the best interest of the

client.

ICICI DIRECT

Company Background

ICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is an Affiliate

of ICICI Bank Limited and the Website is owned by ICICI Bank Limited.

Account opening: Rs. 750/=

Schemes: For short periods Rs 750 is refundable against brokerage

generated in a qtr. These schemes are introduced 3-4 times a year.

De-mat nil 1st year charges included in account opening plus a facility open

additional 4 DP’s

Without 1st year AMC.

Initial margin nil

Brokerage:

Delivery vol. per qtr. Brokerage<10 lakhs 0.85%10 lakhs- 25 lakhs 0.75%25 lakhs – 50 lakhs 0.60%50 lakhs – 1 cr. 0.40%1 cr. – 2 cr. 0.35%2 cr. – 5 cr. 0.30%

Poor online interface

48

Slow website interface with no real time quotes crates dissatisfaction among

high frequency traders.

Margin trading restriction

The margin trading system is available 1 up to 2:45 p.m. , with outstanding

net positions under margin segment automatically squared off at any time

between 2:45 – 3:30 pm. Thus no control of squared off price.

Morning trades issue

Being one of the websites with larger no. of after hour orders which are

pushed 1st thing in the morning, creates a choking of orders to the exchange,

causes delay of confirmation for new order placed during the early morning

trades

Restriction of BTST

Sale of shares purchased is restricted to T + 1 day and is not permitted on T

+ 2 day.

Deal clinchers V/S ICICI direct

No leverages for delivery trades

Delivery is restricted to the total money allotted into the trading account.

No flexibility on leverage on intraday trades.

The leverage of 4 times is available for intraday trades.

Restriction of bank account

The choice of bank is restricted to ICICI bank.

Higher brokerage rates with slabs

49

The delivery brokerage is pegged at 0.85% and trading at 0.15% each side,

this makes is very unviable for customers dealing in large volumes. Although

progressively the delivery and trading brokerage reduce as volume go up.

HDFC SECURITIES

Company Background

The HDFC BANK, HDFC and Chase Capital Partners and their associates

promote HDFC SECURITIES LTD. Pioneers in setting up Dial-a-share services

with the largest team of Tele-brokers.

De-mat account with HDFC securities:-

It is conversion of physical shares into electronic form.

Dematerialization charges

Rs. 3 per share certificate

Rs. 35 per request.

Folio charges are Rs.150 per annum.

Buying and selling transaction through brokers –Charges are 0.05% of

transaction value

Off market transactions charges - 0.04% of transaction value

Online account type

HDFC online trading A/C:- plain vanilla account with focus on 3 in 1

advantages.

HDFC securities pricing of HDFC account

50

Account opening: 750

De-mat: 1st year charges included in account opening

Initial margin: Rs. 5000 for non HDFC bank customers

AMC: first year nil and Rs. 450 per year from 2nd year onwards.

Brokerages

Trading 0.15%

Delivery 0.50%

Deal clinchers V/S HDFC securities

Poor online interface

A part from having no product to cater to day – traders the HDFC securities

online website is plagued with downtime. The same is currently being

revamped.

Lack of focus on broking

The core business of HDFC is housing finance. Broking as a business is a

small part of the portfolio of financial services and hence the commitment to

resources is limited.

No leverage

No leverage is available to clients even for intraday trades, effectively all

clients are on cash

And carry system.

51

No flexibility in commercial terms

The delivery brokerage is pegged at 0.5% and trading and 0.15% side, this

makes it unviable for customers dealing in large volume.

COMPARATIVE ANALYSIS

ICICI

direc

t

HDFC

sec.

Kotak

stree

t

Share

khan

India

bulls

5

paisa

A/C

opening

fee

750 700 550 750 500 675

Recurring

fee for

trading A/C

0 0 0 0 0 375

De-mat

AMC

500 500 360 300 0 375

Delivery

brokerage

75p 50p 59p 50p 50p 60p

Intraday

brokerage

0.15 0.15 0.10 0.10 0.10 0.15

Initial

margin

required

nil 5000

(for non

HDFC

custom

er)

5000 nil nil 2500

52

Cash Y Y Y Y Y Y

BTST Y N Y Y Y Y

Funded

margin

Y Y N N Y N

Margin Y Y Y Y Y Y

Derivatives Y Y N Y Y Y

Commoditi

es

Y N N Y Y Y

IPO Y Y Y Y N Y

MF Y N Y N N Y

Small

Savings

Y N N N N Y

Insurance Y N N N N Y

CHAPTER-4

RESEARCH METHODOLOGY

Research Methodology:

Research design is a basic frame work, which provides guidelines for the rest

of research process. It is a map or blue print according to which the research

is to be conducted.

Objective of Research

Each research study has its own specific purpose. It is like to discover to

Question through the application of scientific procedure. But the main aim of

our research to find out the truth that is hidden and which has not been

discovered as yet. Our research study has two objectives.

53

Primary objective: -How Share khan Ltd is best services providers as a

stock broker in the north region

Secondary objective: -

1. To know about the awareness towards stock brokers and share market.

2. To study about the competitive position of Share khan Ltd in Competitive

Market.

3. To study about the effectiveness & efficiency of Share khan Ltd in relation

to its customer

4. To study about whether people are satisfied with Share khan Services &

Management System or not

5. To study about the difficulties faced by persons while Trading in Share

khan.

6. To study about the need of improvement in existing Trading system.

Research Design

Research design is the conceptual structure within which the research would

take place. The presentation of such a design facilitates research to be as

efficient as possible yielding maximum information.

1. Deciding the Objective of the

Study.

54

2. Questionnaire.

3. Sample Selection.

4. Feedback Collection.

5. Analysis.

Types of research

I used a descriptive type of research. It is one which includes surveys and

fact – finding, Enquiries of different kinds. The major purpose of such

research is description of the state of affairs, as it exists at present.

METHODS OF DATA COLLECTION

While deciding about the method of data collection to be used for the study

the researcher should keep to types of data.

1. Primary Data

2. Secondary Data.

1. Primary data collection

The data collected by the researcher from the field.

Primary data can be collected by

Experiment Survey Personal Interviews Questionnaire Tele-calling

55

2. Secondary sources of data

It is the data which has already been collected by some one or an

organization for some other purpose or research study. The data for my study

has been collected from various sources.

Books Journals Internets News papers Pamphlets Broacher Magazines

We use in our research primary data, as well as secondary data. Primary

means collected a fresh, and the first time data and secondary means which

are already available like annual report, magazines etc.

RESEARCH METHODOLOGY ADOPTED

• Type of research: - Qualitative research

• Sampling Plan: Population:

-Element- Consumers

-Sampling unit- Each element acts as an independent unit.

• Sampling Type: - Area sampling.

As research was limited on the basis of geographical location I.e...

Delhi

56

• Sample Size: - 30 Respondents

• Data Source: - Primary Data collected by conducting face to face

Personal Interviews.

• Research instruments: -

Questionnaire was used to extract the information from the

Respondents.

Questions were

- Open-ended

- Close ended

• Method of Sampling: - Random

CHAPTER-5

DATA INTERPETION AND ANALYSIS

1. Are you aware about share market and online trading? Yes No

AWARE OF ONLINE SHARE

TRADING

%OF RESPONDENTS

Yes 93.33%

No 6.67%

57

AWARNESS ABOUT SHARE MARKET AND ONLINE TRADING

YES 93.33

NO 6.67

Interpretation: - With the increase in cyber education the awareness towards online share trading has increased by leaps and bounds. The awareness is expected to increase further with the increase in internet education

2. In which of these financial instruments do you invest?

FINANCIAL INSTRUMENTS % PERCENTAGE OF INVESTMENT

Mutual fund 33.33%Bonds 6.67%Online trading 20%Derivative 10%Insurance 3.36%Others 26.67%

58

0

5

10

15

20

25

30

35

PERCENTAGE OF INVESTMENT IN FINANCIAL INSTRUMENT

Interpretations: This shows that although the mutual funds is on the rise

yet , the most favored investment continues to be in the share market so

with a more transparent system . Investment in the stock market can

definitely be increased

3. What is the basic purpose of your investment?

PURPOSE OF INVESTMENT

PERCENTAGE OF INVESTMENT

Liquidity 10%Returns 50%Capitals 16.67%Tax benefits 13.33%Risk covering 10%

59

LIQUIDITY RETURNS CAPITALS TAX BENEFITS RISK COVERING0

10

20

30

40

50

60

PURPOSE OF INVESTMENT

Interpretation: - 73.33% people are interested in, returns, liquidity and tax

benefits. And remaining 26.67% are interested in capitals, risk covering.

4. Do you have a De mat and trading account?

Yes NO

HAVING A DE MAT AND TRADING A/C

PERCENTAGE OF DE MAT AND TRADING A/C

Yes 76.67%No 23.33%

60

PERRCENTAGE OF HAVING DEMAT AND TRADING A/C

Interpretations: - 76.67% people having de-mat and trading a/c, remaining23.33% have no De-mat and trading a/c. This shows that maximum people are interested in share trading.

5. How did you come to know about the broking firm? Newspaper Journal TV Advertisement Internet Friend Other

61

SOURCE OF NEWS OF BROKING FIRM

PERCENTAGE OF SOURCE

Newspaper20

Journal 10TV Advertisement 10Internet 23.33Friend 26.67Other 10

05

1015202530

SOURGE OF NEWS ABOUT BROKING FIRM

Interpretations:- 26.67% people know about broking firm through friend recommendation, 23.33% through internet, 20% through newspaper and restthrough other source.

6. Which company provides you large no. of product and services?

COMPANY NAME PERCENTAGE OF RESPONDENT

Share khan 53.33%

62

India bulls 13.33%

ICICI Direct 6.67%

HDFC Security 13.33%

KOTACK Street 3.33%

5paisa.com 0%

Other 10%

SHRE KHAN; 53%

INDIA BULLS; 13%

ICICI DIRECT; 7%

HDFC SECURITY; 13%

KOTACK SECURITY; 3%

OTHER F; 10%

PERCENTAGE OF RESPONDENT

Interpretations:- 53.33% have respondent of share khan ltd ,13.33% have

respondent of India bulls, 6.67% respondent of ICICI direct, 13.33%

respondent of HDFC security,3.33% respondent of KOTACK street, 0%

respondent of 5paisa.com, and 10% respondent of Other.

63

7. How important do you think these factors influence in choosing a broking firm?

Low brokerage :-( Not important) (Important) ( Extremely important)

Better customer service:- ( Not important) (Important ) (Extremely important)

Brand loyalty:- ( Not important) ( Important) (Extremely important)

Good trading tips:- (Not important) (Important) (Extremely important)

Margin money:- ( Not important) (Important) (Extremely

important) Timely research report:- (Not important) ( Important) (Extremely

important) Friend recommendations:- (Not important) ( Important)

( Extremely important)

0

10

20

30

40

50

60

70

80

NOT IMPORTANT IMPORTANT EXTREMELY IMPORTANT

64

Interpretations:- 70% people thinks brandloyaty and friend

recommendations is extremely important. 50% people think low

brokerage and timely research report is extremely important. 47%

people think better customer service, good trading tips and margin

money is extremely important.

8. Best broking firm according to you?

HIERARCHY LEVEL OF BROKING COMPANY

% OF TRUSTING

Share khan 43.33%India Bulls 16.67%KOTAK street 3.33%ICICI Security 6.67%HDFC Direct 10%Other 20%

65

SHARE KHAN

INDIA BULLS

KOTAK STREET

ICICI DIRECT

HDFC SECURITY

OTHER

0 5 10 15 20 25 30 35 40 45 50

HIERACHY LEVEL OF BROKING COMPANY

Interpretations: - the chat shows that this brand image should further leveraged by the company to increase in market share over its competitors

9. Are you interested to invest through SHAREKHAN LTD in future?

Yes No

FEATURE % TO INVEST THROUGH SHARE KHAN

% OF INTERESTED

66

Yes 43.33%

No 56.67%

YES NO0

10

20

30

40

50

60

FUTURE OF INVESTMENT THROUGH SHARE KHAN

Series 1

Interpretations: - 43.33% respondent of share khan, 56.67% respondent ofother broking house.

10. Most important things you take into your mind while making investments?

Risk

67

Return Both

FACTOR %AGERisk 3.33%Returns 40%Both 56.67%

RISK RETURNS BOTH0

10

20

30

40

50

60

FACTOR OF INVESTMENT

Interpretation: 96.67% people are considered the both factors risk as well

as returns but, only 43.33% considered the risk or returns factor.

68

CHAPTER-6

OBSERVATION AND FINDINGS

To study the sales and distribution management and improve the Customer

Acquisition Process by analyzing the consumer behavior, response and

mindset towards the product and services the company offers.

1. Preference of Investment:

Consumers want to invest 75% in Mutual funds, 16% in Bonds, 7% in online

trading and 2% in Derivatives.

2. Awareness on Online Share Trading

72% consumers are aware of online share trading and 28% consumers are

not aware of online share trading.

3. Awareness of Share khan ltd.:

70% consumers are known about Share khan ltd. and 30% consumers are

not known about Share khan ltd.

4. Company have De-mat A/C

In Share khan Ltd 38% respondents have De-mat & trading account because

of better services and no annual maintenance and other charges.

5. Company provide large no. of product and services

22% respondent of Share khan ltd., 18% have respondent of HDFC,

Respondent of ICICI

69

FINDINGS

According to the survey most of the customers of “Share khan Ltd”

says that it is pocket friendly.

Coming to faith 70% say Share khan Ltd is better than others stock

brokers due to Customer’s satisfaction.

Main purposes of investments are returns & liquidity.

Investors take risk as well as returns into their mind while making the

investment.

Businessmen are more interested in the stock market than the others.

Commodity market is less preferred by the investors.

People want to invest their money in the security market but they

haven’t the proper knowledge.

People are not aware of hedging in stock market.

People pay more emphasis on brokerage than service provided by

brokerage houses.

SUGGESTION

70

Commitment should be equalized for every person.

Provide the facility of free demonstrations for all.

Improvement in the opening of De-mat & contract notice procedure is

required.

There should be a limited number of clients under the relationship

manger. So that he handle new as well as old customer properly.

Some promotional activities are required for the awareness of the

customer.

People at young age should be encouraged to invest in stock market.

Seminars should be held for providing information to prospective and

present customers.

71

CHAPTER-7

ADVANTAGES AND LIMITATIONS

ADVANTAGES:-

Lower brokerage and fees (in almost all cases). Fees can be even lower if

you're a frequent trader.

More control on your transactions. You can decide exactly what price and

time you wish to buy, down to the fraction of a second, as well as change

your order whenever you feel like. No waiting on the phone or having to go in

person to a branch.

More flexibility in terms of being able to see what options are available to

you and scan the market.

With online trading, you often have access to lower-fee mutual fund products

since you are your own advisor and nobody gets a cut along the way.

.

Handy tools to model interest earned, yield, returns etc, as well as financial

screeners to research stocks and bonds.

72

Good research tools and newsfeeds on each stock, which you can delve

deeper into in your own time. A conventional offline broker may not always

be able or willing to offer you all of these. You can also get many of these for

free from sites like Market watch, Fool.com etc.

LIMITATIONS:-

Lack of awareness of capital market:

Since the area is not known before it takes lot of time in convincing people to

start investing in shares primarily in IPO’s.

Some people are comfortable with traditional system:

AS people are doing trading from their respective brokers, they are quite

comfortable to trade via physical form of paper.

Lack of Techno Savvy people and poor internet penetration:

Since most of the people are quite experienced and also they are not techno

Savvy. Also Internet penetration is poor in India.

Some respondents are unwilling to talk:

Some respondents either do not have time or willing does not respond, as

they are quite annoyed with the phone call.

Inaccurate Leads:

73

Sometimes leads are provided which had error in it, which varies from only 5-

Digit phone number to wrong phone number

CHAPTER-8

CONCLUSION

With the increases in cyber education awareness toward share market and

share trading has leaps and bounds; the awareness is expected to increases

future with the increase in internet education.

On the basis of the study it is found that share khan ltd is better services

provider than the other share brokers because of their study and research

and personalized advice on what stocks to buy and sell. Share khan ltd

provides TRADE TIGER as well as relationship manager the facility for

encouragement and protect the interest of the investors. It also provides the

information through the mail and mobile alerts that what IPOs are coming in

the market and it also provides its research on the future prospect of the

IPOs.

Share khan is looked upon revenue generated and he gets a 100 % on

business generated from client. This can lead to over leverage and high

frequency trading which may in best interest of the customer.

Study also concludes that people are not much aware of commodity market

and while it’s going to be biggest market in India

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The company should also organize seminars and similar activities to enhance

the knowledge of prospective, and existing customers, so that the feel more

comfortable while investing in the stock market

CHAPTER-9

BIBILIOGRAPHY

o Websites www.bseindia.com

o o www.google.com

www.nseindia.com

www.moneycontrol.com

www.sharekhan.com

www.icicidirect.com

www.5paisa.com www.indiabulls.com

o Newspaper

ECONOMIC TIMES TIMES OF INDIA

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CHAPTER-10

ANNEXURE

Please tick your response whenever appropriate:

NAME:-

PROFESSION:-

ADDRESS:-

CONTACT NO:-

1. Are you aware about share market and online trading? Yes No

2. In which of these financial instruments do you invest? Mutual fund Bonds Online trading Derivative Insurance Other

3. What is the basic purpose of your investment? Liquidity Returns Capitals Tax benefits Risk covering

4. Do you have a D-mat and Trading account? 5. Yes NO

5. How did you come to know about the broking firm?

Newspaper Journal TV Advertisement Internet Friend Other

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6. Which company provides you large no. of product and services?

Share khan India bulls ICICI Direct HDFC Security KOTAK Street 5Paisa.com Other

7. How important do you think these factors influence in choosing a broking firm?

Low brokerage :-( Not important) (Important) ( Extremely important)

Better customer service:- ( Not important) (Important ) (Extremely important)

Brand loyalty:- ( Not important) ( Important) (Extremely important)

Good trading tips:- (Not important) (Important) (Extremely important)

Margin money:- ( Not important) (Important) (Extremely

important) Timely research report:- (Not important) ( Important) (Extremely

important) Friend recommendations:- (Not important) ( Important)

( Extremely important)

8. Best company according to you?

Share khan India bulls KOTAK Street ICICI Direct HDFC Security Other

9. Are you interested to invest through SHAREKHAN LTD in feature?

Yes No

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10. Most important things you take into your mind while making investments?

Risk Return Both

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