copy of indiabulls securities 2

7/28/2019 Copy of Indiabulls Securities 2

1/21

INDIABULLS SECURITIES

inSecurities Market

Submitted by:-Anupama Shukla 061007Garima Diwan 061013Kanuj Sharma 061019Priyanka Kathuria 061033Vivek Kar 061051Debjani Samantara 061061


2/21

INTRODUCTION TO INDIABULLS

India bulls Securities Ltd. a Technology Oriented Financial Services Company offeringIntegrated Equity analysis, Stock Trading, Derivatives trading, Depositary & Insuranceservices, Margin Trading facilities etc. backed by real time risk management systems andfast trade execution. India bulls also provides its clients with valuable real-timeinformation, access to breaking news and market happenings, along with in-depth andinsightful analysis.The organization has an established presence in 104 main cities through its 205 branchoffices and has a base of over 2, 67,000 clients. Ranked as the top retail brokers in thecountry with average daily trading volumes of over Rs.2500 crores in the current marketsand holds over Rs.150 crores of assets in its own depository services.

* Company history Appendix Pg.81UNIQUE FEATURES

Trading via branch network, telephones and Internet account.Integrated Trading and Depositary AccountTechnology transforming desktop into NEAT like terminal for Internet tradingOne Screen for both Cash and Derivatives Trading.Equity Analysis Reports on different sectorsIndiabulls is India's leading retail financial services company with 135 locationsspread across 95 cities.Over 1500 Client Relationship Managers are dedicated to serving clients uniqueneeds.24 hours access to all information and products.

POST REGISTRATION SERVICES:Professional advice from dedicated Relationship ManagerMarket information through Research Team.Access to IPOs via the Book Building route as well as to all the fixed price issues.Subscription to Mutual Funds of various AMCs through Indiabulls.

NSE, BSE and Commodities trading through one branch itself.

USP:Personal relationship Manager - 24x7.

Most competitive brokerage.Only one time account opening charges, no annual maintenance charges and for corporate clients there is no account-opening fee subject to availability of 20-25clients from one corporate office.Margin trading of 2 times the cash deposited for delivery based trade.Margin trading of 10 times the cash deposited for intra-day based trade.Electronic transfer of funds can also be provided.Brokerage Charges are negotiable based on the volumes (Minimum in Industry).

2


3/21

Virtual trading screen on which one would be able to track their portfolio. For thisno extra charge is levied.

FUNCTIONAL AREAS OF INDIABULLSThe product range offered by India bulls includes:

Equity AnalysisEquities & DerivativesDepository ServicesCommoditiesLoans

A. India bulls Equity Analysis

To build and maintain an ideal portfolio demands objective, dependable information.India bulls Equity Analysis helps satisfy that need by rating stocks based on carefullyselected, fact-based measures. And because it isnt focused on investment banking, theydon't have the same conflicts of interest as traditional brokerage firms.

What is India bulls Equity Analysis?India bulls Equity Analysis provides clients with an objective stock rating system for more than 500+ stocks. An unbiased approach to help in deciding which shares to buyand sell. Includes third party opinions to facilitate more informed investing decisions.

* Features of India bulls equity analysis Appendix Pg.82

B. Depositories services

India bulls is a depository participant with the National Securities Depository Limitedand Central Depository Services (India) Limited for trading and settlement of dematerialized shares. India bulls performs clearing services for all securities transactionsthrough its accounts. It offers depository services to create a seamless transaction

platform execute trades through India bulls Securities and settle these transactionsthrough the India bulls Depository Services. India bulls Depository Services is part of India bulls value added services for its clients that create multiple interfaces with theclient and provide for a solution that takes care of all your needs.

3


4/21

C. Personal LoansIndia bulls offers the shortest route to a loan with minimum paperwork and procedures.With Easy money, one can avail easy loans for a minimum of Rs.10, 000 to a maximumamount of Rs.1, 00,000.

Features of Easymoney are:Flexible loan tenor of up to 4 years (i.e. 1 month to 48 months).Loans available from a minimum of Rs.10, 000 up to a maximum of Rs.100, 000.Easy monthly repayment through equated monthly installments (EMI).Mediclaim Insurance bundled with every loan you avail.

Easy documentation and quick disbursal.You take today and you can pay it tomorrow with no penalties

Documents required:Residence Proof Identity Proof Income Proof

D. Equity and derivativesEquity Business caters:

Needs of independent investors.Active traders

Non-Resident Indian (NRI) investors.

Indiabulls offers:Broker assisted trade executionAutomated online investingAccess to all IPOs.

Types of Accounts

Indiabulls Signature Account Comprehensive services including research andinvesting guidance for independent investors.

4


5/21

Power Indiabulls Indiabulls is dedicated to empower Active Traders through personal service and advanced trading technology. Non-Resident Indian (NRI) Investor Services With an extensive range of investment products, you will discover an unwavering commitment to helpingyou invest in India.

E. Indiabulls Resources Ltd

Indiabulls Resources Ltd , a 100 per cent subsidiary of Indiabulls Financial ServicesLtd., has been established with the objective of evolving as an independent oil companyover time. The immediate short-term goal is to partner with oil companies who arewilling to come to India and bid in the current NELP-6 round.Through its group companies, Indiabulls is also engaged in real estate development. Thecompany is in the process of developing modern commercial complexes in the heart of Mumbai. Indiabulls Estates Pvt Ltd . The real estate arm of Indiabulls Financial

Services, will set up an integrated township spread across 100 acres in Sonepat, 15 kmfrom Delhi.

5


6/21

REGULATIONS & POLICIES ANDGOVERNMENT APPROVALS

Indiabulls Financial Services LimitedThe company is registered as a NBFC not accepting public deposits with the RBI under the Reserve Bank of India Act, 1934 (RBI Act).The RBI Act was enacted to constitute the Reserve Bank of India to regulate the issue of

bank notes and the keeping of reserves with a view to securing monetary stability in India

and to generally operate the currency and credit system of India to its advantage. The RBIAct has been amended from time to time and now provides inter-alia that a NBFC cancommence business after obtaining a certificate of registration and should have aminimum net owned fund of Rs.20 million.

Every NBFC should create a reserve fund and transfer thereto a sum not less than 20.0 per cent of its net profit every year as disclosed in the profit and loss account before anydividend is declared. Such fund is to be created by every NBFC irrespective of the factwhether it accepts public deposits or not. Further no appropriation can be made from thefund for any purpose without prior written approval of the RBI.The Non Banking Financial Companies Prudential Norms (Reserve Bank) Directions,

1998 (Prudential Norms) provide for certain compliances to be made by NBFCs suchas having a well defined investment policy, applicability of AccountingStandards and Guidance Notes issued by Institute of Chartered Accountants of India(ICAI) in so far as they are not inconsistent with the guidelines of RBI etc. ThePrudential Norms would not be applicable to an NBFC, being an investment company,which is(a) Holding investments in the securities of its group/holding/subsidiary companies,(b) The book value of such holding is not less than ninety (90) percent of its total assets,(c) Is not trading in such securities and(d) Is not accepting/holding public deposit.

Since the company is presently registered as a NBFC not accepting public deposits andsatisfies all the above conditions, the Prudential Norms would not be applicable.However, it has applied to the RBI for raising public deposits in the company based onthe consolidated financials of Indiabulls Financial Services Ltd and ISL. On receipt of theapproval from the RBI, our Company would be subject to and will have to comply withall the Prudential Norms.

6


7/21

The SEBI (Prohibition of Insider Trading) Regulations, 1992

The provisions of the SEBI (Prohibition of Insider Trading) Regulations, 1992 (Insider Trading Regulations) will be applicable our Company immediately upon the listing of the Equity Shares on the Stock Exchanges. The Insider Trading Regulations provide thatan insider cannot deal in securities of a company listed on any stock exchange when in

possession of any unpublished price sensitive information or communicate, counsel or procure directly or indirectly any unpublished price sensitive information to any personwho while in possession of such unpublished price sensitive information shall not deal in

securities. Further, a company cannot deal in the securities of another company or associate of that other company while in possession of any unpublished price sensitiveinformation.The term insider has been defined under the Insider Trading Regulation to mean inter alia any person who, is or was connected with the company or is deemed to have beenconnected with the company, and who is reasonably expected to have access tounpublished price sensitive information in respect of securities of a company or who hasreceived or has had access to such unpublished price sensitive information.The Insider Trading Regulations further provide that all listed companies andcapitalization associated with the securities market including inter alia intermediaries asdefined under the SEBI Act, asset management companies, trustees of mutual funds etcshould frame a code of internal procedures and conduct based on the Model Code of Conduct specified under the Insider Trading Regulations. Our Company has framed acode of internal procedures and conduct for the prevention of insider trading.

7


8/21

II. Indiabulls Securities Limited (ISL)

ISL is engaged in the business of Internet based trading and is registered with SEBI as astockbroker, trading and clearing member of NSE, member of BSE and as a depositary

participant with National Securities Depository Limited (NSDL) and CentralDepository Services (India) Limited (CDSL). ISL is also a member of the NationalSecurities Clearing Corporation Limited.

1. The Securities and Exchange Board of India Act, 1992 (SEBI Act) provides for theestablishment of a Board namely the SEBI to protect the interests of investors insecurities and to promote the development of, and to regulate the securities market bysuch measures as it thinks fit. Such measures may inter alia provide for: -(a) Regulating the business in stock exchanges and any other securities markets;(b) registering and regulating the working of stock brokers, sub-brokers, merchant

bankers, underwriters, portfolio managers, investment advisers and such other intermediaries who may be associated with securities markets in any manner;(c) Registering and regulating the working of the depositories, participants and other intermediaries;(d) Prohibiting fraudulent and unfair trade practices relating to securities markets;

(e) Prohibiting insider trading in securities;(f) Regulating substantial acquisition of shares and take-over of companies.Pursuant to the SEBI Act, and the rules, regulations and guidelines issued by SEBI, astockbroker, sub-broker and depository participant can buy, sell or deal in securities onlyafter obtaining a certificate of registration from SEBI in accordance with the applicableregulations.

2. The Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) Rules,1992 read with the Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) Regulations, 1992 provides the eligibility criteria, procedure for obtaining thecertificate of registration to carry on business as a stock broker and/or a sub-broker who

is required to be affiliated to a stock broker registered under the aforesaid regulations. Onregistration, the stockbroker and sub-broker are required to adhere to a code of conduct prescribed under the above regulations.A part from registration of stockbrokers and sub-brokers, the regulations provide for registration of trading and clearing members. A trading member is a member of thederivatives exchange or derivatives segment of a stock exchange and who settles thetrade in the clearing corporation or clearing house through a clearing member. A clearingmember is a member of a clearing corporation or clearing house of the derivative

8


9/21

exchange or derivatives segment of an exchange, who clears and settles transactions insecurities. The code of conduct specified for stockbrokers are applicable mutatismutandis to the trading and clearing members.

3. The Depositories Act, 1996 provides for regulation of depositories in securities andother related matters. Every person subscribing to securities offered by an issuer has theoption either to receive the security certificates or hold securities with a depository. Adepository after obtaining a certificate of commencement of business from SEBI canenter into an agreement with one or more participants as its agent. Any person, through a

participant, may enter into an agreement with any depository for availing its services.The depository is deemed to be the registered owner for the purposes of effecting transfer of ownership of security on behalf of a beneficial owner. The depository does not haveany voting rights or any other rights in respect of securities held by it. The beneficial

owner of the securities is entitled to all the rights and benefits and is subjected to all theliabilities in respect of his securities held by a depository.

4. The Securities and Exchange Board of India (Depositories and Participants)Regulations, 1996 provides inter alia the eligibility criteria, procedure for obtaining thecertificate of registration to carry on business as a depository participant, rights andobligations of the depository participants. On registration, the depository participant isrequired to adhere to a code of conduct prescribed under these regulations.

5. The Securities Contract (Regulation) Act, 1956 (SCRA) seeks to prevent undesirabletransactions in securities by regulating the business of dealing in securities and other related matters. The SCRA provides for grant of recognition for stock exchanges by theCentral Government. Every recognized stock exchange is required to have in place a setof rules relating to its constitution and byelaws for the regulation and control of contracts.The bye-laws normally provide for inter alia(i) The opening and closing of markets and the regulation of the hours of trade;(ii) The fixing, altering or postponing of days for settlements;(iii) The determination and declaration of market rates, including the opening, closing

highest and lowest rates for securities;(iv) the terms, conditions and incidents of contracts, including the prescription of

margin requirements, if any, and conditions relating thereto, and the forms of contracts in writing;

(v) The regulation of the entering into, making, performance, recession andtermination of contracts, including contracts between members or between amember and his constituent.

If the securities of a public company are listed in any recognized stock exchange, the saidcompany must comply with the conditions of the listing agreement entered into with thestock exchange. NSE and BSE of which ISL is a member are such recognized stock exchanges.

9


10/21

6. The Insider Trading Regulations would be applicable to ISL since ISL is a person,which is deemed to be a connected person as defined under the said regulations. As per the Insider Trading Regulations, a person deemed to be a connected person includes anintermediary under the SEBI Act. Such intermediary includes a stockbroker, sub-broker and investment advisor.

7. ISL as a member of the NSE and is required to adhere to the rules and regulationsframed by the NSE. The National Stock Exchange of India Limited Bye-laws prescribesregulations relating to inter alia (i) norms, procedures, terms and conditions to becomplied with for inclusion of securities in the official list of NSE securities; (ii) normsand procedures for admission of trading members (iii) forms and conditions of contractsto be entered into, and the time, mode and manner for performance of contracts betweentrading members inter se or between trading members and their constituents; (iv)determination of fees, system usage charges, deposits, margins and other monies payableto the NSE by trading members, participants and by issuers whose securities are

admitted/to be admitted to dealings on the NSE and the scale of brokerage chargeable bytrading members; (v) settlement of disputes, complaints, claims arising between tradingmembers inter-se as well as between trading members and persons who are not tradingmembers relating to any transaction in securities made on the NSE including settlement

by arbitration (vi) norms and procedures for settlement and clearing of deals.

10


11/21

COMPETITORS ANALYSIS

MAJOR PLAYERS OF STOCK MARKET:

IndiaBullsSherkhanReligareKotak Mahindera

SHAREKHAN

Sharekhan is the retail broking arm of SSKI, an organization with more than 80 years of trust and credibility in stock market. Sharekhan is Indias leading retail financial servicescompany. They have over 250 share shops across 115 cities in India.

RELIGARE

Religare, a company promoted, controlled and managed by the promoters of Ranbaxy,Religare was founded with the vision of providing integrated financial care driven by therelationship of trust.Religare Enterprises Limited, through Religare Securities Limited, Religare FinvestLimited, Religare Commodities Limited and Religare Insurance Advisory ServicesLimited provides integrated financial various financial services which include InvestmentBanking, Corporate solutions to its corporate, retail and wealth management clients.Today, it provides Finance, Portfolio Management Services, Equity & CommodityBroking, Insurance and Mutual Funds.

KOTAK SECURITIES

Kotak Mahindra is one of Indias leading financial institutions, offering completefinancial, from commercial banking, to stock broking, mutual funds, life insurance andinvestment banking. The group has a net worth of over Rs.1550 crore and employs over

11
http://www.religare.in/index.asphttp://www.sharekhan.com/Default.aspx


12/21

3000 employees in its various businesses. With a presence in 59 cities in India and officesin New York, London, Dubai and Mauritius, it services a customer base of over 500,000.

12


13/21

COMPARATIVE ANALYSIS BETWEEN INDIABULLS AND OTHERS:

Sharekhan Kotak Indiabulls

Religare

AccountOpeningCharges

Rs.375/Rs 750 Rs.500 Rs.900/Rs.1650Free

Brokerage (%)Delivery Intraday Delivery Intraday Delivery Intraday Intraday Delivery

0.20 0.05 0.50 0.15 0.5 0.05 0.02 0.20

Exposure onCash NIL 4 times 4 times 4 times 4times 10 times 10 times 2 times

Exposure onSecurities NIL NIL

2 times of the MarketValue NIL

Annual

MaintenanceCharges

Rs.300 Rs.260 NIL NIL

Trading withother DematAccount

N.A. N.A. Possible Possible

Bankingfacility

IDBI Bank/CityBank/ OBC/UTI/HDFC bank

Kotak/HDFC/CITI All private Banks

Net Bankingfacility

IDBIBank/CityBank/OBC/UTI/HDFC

Kotak/HDFC/CITI HDFC/ICICI/Citibank

Off-lineTrading N.A. N.A.

Through Phone &SMS& messenger N.A

RelationshipManager

N.A. N.A. Assigned to every client Assigned to everyclient

13


14/21

SURVEY REPORT

We surveyed 150 people, in Saket area, educating them about the various services provided byIndiabulls. The targeted people were in the age group of 25+.

FINDINGS OF SURVEY CONDUCTED:

1) PEOPLE INTRESTED IN STOCK MARKET INVESTMENT

People interested in stock market investment

Percentage

Yes 40% No 60%

40%

60%

% Of people interested in stock market

yes no

14


15/21

2) PEOPLE INTRESTED IN TRADING HAVING A D-MAT AND TRADINGACCOUNT

3) PERCENTAGE OF ACCOUNT OPENED IN VARIOUS HOUSES

Investors having their D-Mat A/C invarious brokerage house Percentage

IndiaBulls 40Kotak 15Religare 15Sharekhan 20

% Of People having D-Mat &Trading a/c

Percentage

Yes 80% No 20%

Yes80%

No20%

% Of People having Dmat & Trading a/c

Yes

No

15


16/21

% of opening of D-Mat A/C

40

15 15 20

010

2030

4050

IndiaBulls Kotak Religare Sharekhan

Brokerage House

P e r c e n t a g e

4) ACCOUNT OPENING CHARGES

Expected a/c opening charges Percentage

500 80 %700 10%750 10%800 0%

5) BROKERAGE ON DELIVERY

Expected Brokerage on Delivery Percentage

0.2-0.5 90%0.05-0.7 10%0.7-1.0 0%

16


17/21

0%

20%

40%60%

80%

100%

0.2-0.5 0.05-0.7 0.7-1.0

Percentage of Brokerage

Percentage

6) BROKERAGE ON INTRADAY

Expected Brokerage on Intraday Percentage

.01-.05 % 75%

.05-.07 % 20%

.07-.10 % 5%

CONCLUSION:1. 60% of the people were not interested in share market, and around 90% of them were not

even aware of the opportunities present. They are of the opinion that its a Jua or gamble.

2. 80% of the people who were interested already had a D-mat A/c, amongst which 40% of them had it with Indiabulls.

17


18/21

3. Majority of the respondents were of consensus that account opening charges should bearound Rs500.

4. 90% of the respondents were of view that Brokerage on delivery should be between0.2% - 0.5%.

5. People were of the opinion that Intraday brokerage should be in between 0.01% to

0.05%

LIMITATION:

The various Limitations are:--1. Lack of awareness of Stock market: - Since the area is not known before it takes lot of time in convincing people to start investing in shares primarily in IPOs.

2. Mostly people comfortable with traditional brokers: - As people are doing trading fromthere respective brokers, they are quite comfortable to trade via phone.

3. Lack of Technology Savvy people and poor internet penetration: - Since most of the people are quite experienced and also they are not techno savvy. Also internet penetrationis poor in India.

4. 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.

5. Misleading concepts:- Some people think that shares are too risky and just another nameof gamble but they dont know its not at all that risky for long investors.

COMPETITIVE STRENGTHS TO BE THE MARKET LEADER What keeps Indiabulls ahead of the competition is the competitive edge that it has over other

players in the market.

Diverse Branch Network Bouquet of financial products and servicesAdvanced technology team that delivers market leading product innovationStrong sales and marketing teams with continuous reinvestment and trainingStrong cross selling opportunitiesStrong and experienced promotersLeading product innovation and marketing strategiesWell capitalized player, with strong banking relationships and credit ratings

18


19/21

Ability to combine people and technology in unique waysStrong market presence and increased market share leading to a virtuous cycle of model (withthe employees) that it pursues is another major high of the core competency.

KEY BUSINESS STRATEGIES

Their focus on the client has allowed the company to offer a range of services that have changedthe investing landscape and created a new model of financial services that melds people andtechnology to provide an integrated human assisted technology interface service for investorswho range from self-directed full-time active investor to those who prefer to deal with through amarketing associate in smaller towns and cities.Their key strategies include:

Defend and maintain differentiation as the firm that delivers ethical and useful servicesBuild and expand investing insight through product offerings such as Equity Analysiswhich is objective, uncomplicated and not driven by commissionGive clients new levels of choice tailored to their desire for help, tools for investing their assets, their willingness to pay for additional services and the level of business they can

do with usProvide clients with tools, relationship managers and choices that support their desiredinvestment outcomes

They have developed a client specific approach as a core element of their business strategy andare constantly focusing on acquiring new clients and expanding their customer base. They

believe that the strong secular growth of the Indian financial markets, due to increased household penetration of financial assets; increasing liquidity and market capitalization of Indian markets,led by the listing of many public sector entities; and the increasing affluence of Indianhouseholds and savers provides an impetus to our growth perspective.The company believes that this diversification and growth strategy will continue to produceresults and allow the Company and its subsidiaries to grow the business at a rapid pace

irrespective of market conditions. In addition, management believes that the growth of the Indianfinancial markets, due to increased household penetration of financial assets; increasing liquidityand market capitalization of Indian markets, led by the listing of many public sector entities; andthe increasing affluence of Indian households and savers, favors their long-term growth outlook.

19


20/21

RECOMMENDATION / FINDINGS

Analysis of Client Interaction (Already existing clients) Client interaction and after sales services are the most crucial aspects for any business. We carried out a study togauge the level of satisfaction of the clients with the services of Indiabulls. This helped usin understanding why Indiabulls has become one of the most trusted brands within a spanof five years.The Relationship Managers (RM) should be made responsible to ensure that the clientsare well catered, thus, reducing switching over of routing, thereby reducing loss of

business to the firm.A lot of time lag is there between the follow up and the change of RM, as a result, thecalls could not leave a positive impact on the clients, so contacted. Therefore, follow up

should be done fast without any time lag.Many clients did not know about the change of RM. This leaves a bad impression on theconcerned client, damaging the reputation of the firm. So, heed is taken in this regard.The customers, who were satisfied with the services, appreciated this kind of follow up.Therefore, such follow-ups are done from time to time, to gain customer confidence.After getting Leads attention should be made on following points:The calls made should be more informative and assertive.The RM should provide an in depth demonstration of the software and client should beassisted regularly.Provision of a manual for online clients for ease of operation.Time lag between the complaints put and follow up should be reduced.Database should be verified properly, so that repeated entries do not occur. This willreduce inconvenience to the clients, who complained about multiple calls received.

20


21/21