marketing sharekhan 1 (1)

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SUMMER TRAINING PROJECT REPORT

SHARE KHAN LTD.

“MARKETING STRATEGY OF SHAREKHAN”



ACKNOWLEDGEMENT

The completion of my summer training and the project on feedback of clients who have

bought SHARE-KHAN’S online trading account in the month of MAY would not have

been possible without the constant and timely encouragement from all concerned.

I express my sincerest gratitude and thanks to MR. KSHIJIT JHA (assistant manager) -

share khan, Delhi branch for his guidance and sustained help extended to me during the

course of my summer training.

I had the precious opportunity of attaining training at SHARE-KHAN. Under his

brilliant untiring guidance I could complete the project being undertaken on the

“STOCK MARKET IN INDIA AN EMPIRICAL STUDY” successfully in time. His

meticulous attention and invaluable suggestions have helped me in simplifying the

problem involved in the work. I would also like to thank the overwhelming support of all

the people who gave me an opportunity to learn and gain knowledge about the various

aspects of the industry.

I would like to thanks MR. ALOK SATSANGI (Corporate Cell Manager) for his

constant enthusiastic encouragement and valuable suggestions without which this project

would not been successfully completed.

Blessing of my parents have also been instrumented to complete this task.

Above all I would like to thank god for giving me this wonderful opportunity.



CONTENTS

CONTENTS PAGE NO.

Chapter 1 - Introduction

1.1. Overview of Industry as a whole1.2. Profile of the Organization

- Origin- Recent Achievements- Mission & Vision- Products

- Organization Structure1.3 Introduction to the Topic/Title/Problem Studied

Chapter 2 - Objective & Methodology

2.1. Objectives of the Study2.2. Research Methodology

o Research Designo Sources of data (Primary/Secondary)o Sampling Techniqueo Sample size, if anyo Methods of data collectiono Tools and techniques of analysis

2.3. Limitations of the Study

Chapter 3 - Data Analysis & Interpretation

Chapter 4 - Findings

Chapter 5 - Recommendations

ANNEXURES:

BIBLIOGRAPHY/REFERENCES



CHAPTER-1

INTRODUCTION



1.1 Overview of Industry as a whole

Do you know that the world's foremost marketplace New York Stock Exchange (NYSE),

started its trading under a tree (now known as 68 Wall Street) over 200 years ago?

Similarly, India's premier stock exchange Bombay Stock Exchange (BSE) can also trace

back its origin to as far as 125 years when it started as a

voluntary non-profit making association.

You hear about it any time it reaches a new high or a

new low, and you also hear about it daily in statements

like 'The BSE Sensitive Index rose 5% today'. Obviously,

stocks and stock markets are important. Stocks of public

limited companies are bought and sold at a stock

exchange. But what really are stock exchanges? Known also as News on the stock

market appears in different media every day. he stock market or bourse, a stock

exchange is an organized marketplace for securities (like stocks, bonds, options)

featured by the centralization of supply and demand for the transaction of orders by

member brokers, for institutional and individual investors. The exchange makes buying

and selling easy. For example, you don't have to actually go to a stock exchange, say,

BSE - you can contact a broker, who does business with the BSE, and he or she will buy

or sell your stock on your behalf.

All stock exchanges perform similar functions with respect to the listing, trading, and

clearing of securities, differing only in their administrative machinery for handling these

functions. Most stock exchanges are auction markets, in which prices are determined by

competitive bidding. Trading may occur on a continuous auction basis, may involvebrokers buying from and selling to dealers in certain types of stock, or it may be

conducted through specialists dealing in a particular stock.

But where did it all start? The need for stock exchanges developed out of early trading

activities in agricultural and other commodities. During the middle Ages, traders found it

http://www.thebizpapertoday.com/tbtstock/?



http://www.ulearntoday.com/magazine/physics_article1.jsp?FILE=stockglossary#7





















easier to use credit that required supporting documentation of drafts, notes and bills of

exchange. The history of the earliest stock exchange, the French stock exchange, may be

traced back to 12th century when transactions occurred in commercial bills of exchange.

The first stock exchange in India, Bombay Stock Exchange was established in 1875 as

'The Native Share and Stockbrokers Association' and has evolved over the years into its

present status as the premier stock exchange in the country. It may be noted that BSE is

the oldest stock exchange in Asia, even older than the Tokyo Stock Exchange, which was

founded in 1878. The country's second stock exchange was established in Ahmadabad in

1894, followed by the Calcutta Stock Exchange (CSE). CSE can also trace its origin back to

19th century. From a get together under a 'Neem Tree' way back in the 1830s, the CSE

was formally established in May 1908.

India's other major stock exchange National Stock Exchange (NSE), promoted by leading

financial institutions, and was established in April 1993. Over the years, several stock

exchanges have been established in the major cities of India. There are now 23

recognized stock exchanges — Mumbai (BSE, NSE and OTC), Calcutta, Delhi, Chennai,

Ahmadabad, Bangalore, Bhubhaneswar, Coimbatore, Guwahati, Hyderabad, Jaipur,

Kochi, Kanpur, Ludhiana, Mangalore, Patna, Pune, Rajkot, Vadodara, Indore and Meerut.

Today, most of the global stock exchanges have become highly efficient, computerized

organizations. Computerized networks also made it possible to connect to each other

and have fostered the growth of an open, global securities market. Realizing there is

untapped market of investors who want to be able to execute their own trades when it

suits them, brokers have taken their trading rooms to the Internet. Known as online

brokers, they allow you to buy and sell shares via Internet.

Online Trading is a service offered on the Internet for purchase and sale of shares. In the

real world, you place orders on your stockbroker either verbally (personally or

telephonically) or in a written form (fax). In Online Trading, you will access a

stockbroker's website through your internet-enabled PC and place orders through the

broker's internet-based trading engine. These orders are routed to the Stock Exchange





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http://www.tse.or.jp/english/index.shtml



http://www.nseindia.com/us/usindex.htm










without manual intervention and executed thereon in a matter of a few seconds.

There are 2 types of online trading service: discount brokers and full service online

broker. Discount online brokers allow you to trade via Internet at reduced rates. Some

provide quality research, other don‟t. Full service online brokerage is linked to existing

brokerages. These brokers allow their clients to place online orders with the option of

talking/ chatting to brokers if advice is needed. Brokerage rates here are higher.

5Paisa.com, ICICIDirect.com, IndiaBulls.com, sharekhan.com, HDFCsec.com,

Tatatdw.com, HMRstreet.com are some of the online broking sites in India.

In general, the financial market divided into two parts, Money market and capital market.

Securities market is an important, organized capital market where transaction of capital is

facilitated by means of direct financing using securities as a commodity. Securitiesmarket can be divided into a primary market and secondary market.

A) PRIMARY MARKET

The primary market is an intermittent and discrete market where the initially listed shares

are traded first time, changing hands from the listed company to the investors. It refers to

the process through which the companies, the issuers of stocks, acquire capital by

offering their stocks to investors who supply the capital. In other words primary market is

that part of the capital markets that deals with the issuance of new securities. Companies,

governments or public sector institutions can obtain funding through the sale of a new

stock or bond issue. This is typically done through a syndicate of securities dealers. The

process of selling new issues to investors is called underwriting. In the case of a new

stock issue, this sale is called an initial public offering (IPO). Dealers earn a commission

that is built into the price of the security offering, though it can be found in the

prospectus.

B) SECONDARY MARKET

The secondary market is an on-going market, which is equipped and organized with a

place, facilities and other resources required for trading securities after their initial

offering. It refers to a specific place where securities transaction among many and

unspecified persons is carried out through intermediation of the securities firms, i.e., a



licensed broker, and the exchanges, a specialized trading organization, in accordance with

the rules and regulations established by the exchanges.

A bit about history of stock exchange they say it was under a tree that it all started in

1875.Bombay Stock Exchange (BSE) was the major exchange in India till 1994.National

Stock Exchange (NSE) started operations in 1994.NSE was floated by major banks and

financial institutions. It came as a result of Harshad Mehta scam of 1992. Contrary to

popular belief the scam was more of a banking scam than a stock market scam. The old

methods of trading in BSE were people assembling on what as called a ring in the BSE

building. They had a unique sign language to communicate apart from all the shouting.

Investors weren't allowed access and the system was opaque and misused by brokers. The

shares were in physical form and prone to duplication and fraud.

NSE was the first to introduce electronic screen based trading. BSE was forced to follow

suit. The present day trading platform is transparent and gives investors prices on a real

time basis. With the introduction of depository and mandatory dematerialization of shares

chances of fraud reduced further. The trading screen gives you top 5 buy and sell quotes

on every scrip.A typical trading day starts at 10 ending at 3.30. Monday to Friday. BSE

has 30 stocks which make up the Sensex .NSE has 50 stocks in its index called Nifty. FII

s Banks, financial institutions mutual funds are biggest players in the market. Then there

are the retail investors and speculators. The last ones are the ones who follow the market

morning to evening; Market can be very addictive like blogging though stakes are higher

in the former.

Shares in the Share Market are either traded through:

(a) Stock Exchange these are organized market places where stocks, bonds are other

equivalents are traded between the buyers and sellers where exchange acts as

counter-party to both the participants in case of any default.

(b) Over-the -Counter (OTC) these are not centralized exchanges and the trade

takes place through a network of dealers.

http://www.economywatch.com/market/share-market/share-market-overview.html




Generally stocks are of two types:

a) Common Stock

It gives an ownership right to the holders of the stock. The holders are entitled to

receive dividends whenever the company announces.

b) Preferred Stock

These stocks also give ownership right to its holders. Its holders enjoy the privilege

of receiving dividends from the company in preference to any other common share

holders.

Constituents of Share Market are :-

a) Buyer: An investor who buys a script in the belief that the market will rise. If his hinge

becomes right then he makes profit otherwise he suffers loss.

b) Seller: Seller of a stock sells in the hope that the stock price will go down.

c) Stock Broker: Brokers are persons or firms who execute buy/sell order on behalf of the

investors and charge a commission for rendering the service.

Share broking company offers two types of share trading facilities .

(a) Offline Share Trading In this form of trading the customer has to place order to

the dealer of the stock broking firm either in person or over phone.

(b) Online Share Trading The client could place his order on his own from any

place he wants, provided he has a computer with an Internet connection.

There are mainly two types of trading:-

1. Intra day trading : They buy and sell stocks during the same day.

Intra day Traders are of two types :

a. Scalp Traders: Investors who perform many trades per day for scalping out

small profits out of the bid-ask spread from each trade is known as scalp traders.

b. Momentum Traders: Investors who pounce on those stocks which move














significantly in one direction and book desired profit are called momentum traders.

They do this within a day.

2. Delivery trading: The investor buys the share for holding purposes.

Delivery Traders are:

1. Technical Traders: They believe that buying/selling signals are present within

the graphs and charts of the stock.

2. Fundamental Traders: They perform trade on the basis of study of fact-sheets of

the company like historical profit graph, balance sheet, anticipated earning

reports, stock- splits, mergers and acquisitions, etc.

3. Swing Traders: They are basically fundamental traders who take delivery of

trades for a span of short period generally more than one day.

ORIGIN OF INDIAN STOCK MARKET

The origin of the stock market in India goes back to the end of the eighteenth century

when long-term negotiable securities were first issued. However, for all practical

purposes, the real beginning occurred in the middle of the nineteenth century after the

enactment of the companies Act in 1850, which introduced the features of limited

liability and generated investor interest in corporate securities.

An important early event in the development of the stock market in India was the

formation of the native share and stock brokers association at Bombay in 1875, the

precursor of the present day Bombay Stock Exchange. This was followed by the

formation of associations/exchanges in Ahmadabad (1894), Calcutta (1908), and Madras

(1937). In addition, a large number of ephemeral exchanges emerged mainly in buoyantperiods to recede into oblivion during depressing times subsequently.

Stock exchanges are intricacy inter-woven in the fabric of a nation's economic life.

Without a stock exchange, the saving of the community- the sinews of economic progress

and productive efficiency- would remain underutilized. The task of mobilization and








allocation of savings could be attempted in the old days by a much less specialized

institution than the stock exchanges. But as business and industry expanded and the

economy assumed more complex nature, the need for 'permanent finance' arose.

Entrepreneurs needed money for long term whereas investors demanded liquidity – the

facility to convert their investment into cash at any given time. The answer was a ready

market for investments and this was how the stock exchange came into being.

Stock exchange means anybody of individuals, whether incorporated or not, constituted

for the purpose of regulating or controlling the business of buying, selling or dealing in

securities. These securities include:

(i) Shares, scrip, stocks, bonds, debentures stock or other marketable securities of a like

nature in or of any incorporated company or other body corporate;(ii) Government securities; and

(iii) Rights or interest in securities.

The Bombay Stock Exchange (BSE) and the National Stock Exchange of India Ltd

(NSE) are the two primary exchanges in India. In addition, there are 22 Regional Stock

Exchanges. However, the BSE and NSE have established themselves as the two leading

exchanges and account for about 80 per cent of the equity volume traded in India. The

NSE and BSE are equal in size in terms of daily traded volume. The average daily

turnover at the exchanges has increased from Rs 851 crore in 1997-98 to Rs 1,284 crore

in 1998-99 and further to Rs 2,273 crore in 1999-2000 (April - August 1999). NSE has

around 1500 shares listed with a total market capitalization of around Rs 9, 21,500 crore.

The BSE has over 6000 stocks listed and has a market capitalization of around Rs 9,

68,000 crore. Most key stocks are traded on both the exchanges and hence the investor

could buy them on either exchange. Both exchanges have a different settlement cycle,

which allows investors to shift their positions on the bourses. The primary index of BSE

is BSE Sensex comprising 30 stocks. NSE has the S&P NSE 50 Index (Nifty) which

consists of fifty stocks. The BSE Sensex is the older and more widely followed index.

Both these indices are calculated on the basis of market capitalization and contain the



heavily traded shares from key sectors. The markets are closed on Saturdays and

Sundays. Both the exchanges have switched over from the open outcry trading system to

a fully automated computerized mode of trading known as BOLT (BSE on Line Trading)

and NEAT (National Exchange Automated Trading) System.

It facilitates more efficient processing, automatic order matching, faster execution of

trades and transparency; the scrip's traded on the BSE have been classified into 'A', 'B1',

'B2', 'C', 'F' and 'Z' groups. The 'A' group shares represent those, which are in the carry

forward system (Badla). The 'F' group represents the debt market (fixed income

securities) segment. The 'Z' group scrip's are the blacklisted companies. The 'C' group

covers the odd lot securities in 'A', 'B1' & 'B2' groups and Rights renunciations. The key

regulator governing Stock Exchanges, Brokers, Depositories, Depository participants,Mutual Funds, FIIs and other participants in Indian secondary and primary market is the

Securities and Exchange Board of India (SEBI) Ltd.

HISTORY OF ONLINE STOCK TRADING

It's hard to believe that at one time, no one placed an order without talking to a broker.

It's even harder to imagine that the average person had no access to the web for their

personal use before 1979. Businesses used it, in fact, CompuServe became a leader in

providing services to the financial industry by linking commercial feeds together to

provide a quote system and financial information to Wall Street.

A) History

Before 1979, when CompuServe marketed Micro NET to Customer s, no individual used

the net, just businesses. Micro NET, the retail branch of CompuServe, found an outlet at

Radio Shack and soon gained wide appeal and it accounted for over 50 percent of the

company's income by the year 1987 when it took back the parent name, CompuServe.

The Source, its competitor that also started in 1979, grew rapidly. However, CompuServe

bought them out in 1989.

B) Time Frame



Imagine the enthusiasm of Bernie Newcomb when Phil Porter shared his idea about

trading stock on a personal computer back in 1980. Newcomb understood programming

and developed the necessary one to successfully trade a stock. A dentist in Michigan

made the first stock trade on July 11, 1983. This was the first trade for the company

Trade Plus. It took 9 more years before the company was named the fastest growing

company in Silicon Valley and by 1996, Trade*Plus received the new name E-Trade

Group.

C) Features

Other companies entered the market for Customer stock trading. First Omaha Securities,

Inc. became a clearing broker in 1983. It changed its name to Accutrade. Later when they

were part of a holding company in 1987 the name changed again to TransTerra CompanyInc 1987 and eventually became AmeriTrade in 1996. It offered the first order system via

the touch-tone phone in 1988. Slowly the necessity of the broker started to seem less

important.

D) Considerations

Bernie Newcomb and Phil Porter split as partners and Porter started a new company, E-

Trade Group. E-Trades Securities was a subsidiary and the primary reason for the

company. It offered services to the public that allowed trading on both America Online

and CompuServe. Later when the firm grew dramatically, by 1996, it went public and the

changed the name to E*Trade Financial.

E) Effects

The market gets bullish for the 1990's. This fact, coupled with the lower cost of Internet

access started to drive the uses of the Internet. Communication via email and total access

to the web made the transition easy for millions of people. Now, they no longer had to

call a broker or schedule an appointment. The Web was open 24 hours a day and the

market was hot. By January of 1996, AmeriTrade introduced "Accutrade for Windows"

and developed the first eBroker.

F) Benefits



Discount brokerage houses grew, as did online trading. Schwab, one of the innovators of

discount brokerage services, offered the first 24-hour quotation service to clients in 1980.

By the year 1996, they offered live trading on the web. Other companies also jumped into

the action. The American public fell in love with online trading because even an idiot

could make money in the stock market during the excessively bullish 1990's. The cost of

a trade was dramatically lowered. At first, a $24 trade was magnificent. However, as

companies grew more web-based the price dropped. When the market went south in 1999

and early 2000, web brokers slashed even more at the cost of the trade to maintain their

clients. Today, Online stock trading accounts are owned by most people that invest. Even

if they use the services of a broker, they normally have the option of trading stock on

their own, via the Internet.

HISTORY OF STOCK EXCHANGES

The world's foremost marketplace New York Stock Exchange (NYSE), started its trading

under a tree (now known as 68 Wall Street) over 200 years ago? Similarly, India's

premier stock exchange Bombay Stock Exchange (BSE) can also trace back its origin to

as far as 125 years when it started as a voluntary non-profit making association.

News on the stock market appears in different media every day. You hear about it any

time it reaches a new high or a new low, and you also hear about it daily in statements

like 'The BSE Sensitive Index rose 5% today'. Obviously, stocks and stock markets are

important. Stocks of public limited companies are bought and sold at a stock exchange.

But what really are stock exchanges? Known also as the stock market or bourse, a stock

exchange is an organized marketplace for securities (like stocks, bonds, options) featured

by the centralization of supply and demand for the transaction of orders by member

brokers, for institutional and individual investors.

The exchange makes buying and selling easy. For example, you don't have to actually go

to a stock exchange, say, BSE - you can contact a broker, who does business with the



BSE, and he or she will buy or sell your stock on your behalf.

Market Basics

Electronic trading

Electronic trading eliminates the need for physical trading floors. Brokers can trade from

their offices, using fully automated screen-based processes. Their workstations are

connected to a Stock Exchange's central computer via satellite using Very Small Aperture

Terminus (VSATs). The orders placed by brokers reach the Exchange's central computer

and are matched electronically.

Exchanges in India

Heritage

The Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) are the

country's two leading Exchanges. There are 20 other regional Exchanges, connected via

the Inter-Connected Stock Exchange (ICSE). The BSE and NSE allow nationwide trading

via their VSAT systems.

The oldest stock exchange in Asia (established in 1875) and the first in the country to be

granted permanent recognition under the Securities Contract Regulation Act, 1956,

Bombay Stock Exchange Limited (BSE) has had an interesting rise to prominence over

the past 133 years.

While BSE is now synonymous with Dalal Street, it was not always so. The first venues

of the earliest stock broker meetings in the 1850s were in rather natural environs - under

banyan trees - in front of the Town Hall, where Horniman Circle is now situated. A

decade later, the brokers moved their venue to another set of foliage, this time under

banyan trees at the junction of Meadows Street and what is now called Mahatma Gandhi

Road. As the number of brokers increased, they had to shift from place to place, but they

always overflowed to the streets. At last, in 1874, the brokers found a permanent place,

and one that they could, quite literally, call their own. The new place was, aptly, called

Dalal Street (Brokers‟ Street).



In 2002, the name "The Stock Exchange, Mumbai" was changed to Bombay Stock

Exchange. Subsequently on August 19, 2005, the exchange turned into a corporate entity

from an Association of Persons (AoP) and renamed as Bombay Stock Exchange Limited.

BSE, which had introduced securities trading in India, replaced its open outcry system of

trading in 1995, with the totally automated trading through the BSE Online trading

(BOLT) system. The BOLT network was expanded nationwide in 1997.

Prominent Position

The journey of BSE is as eventful and interesting as the history of India's securities

market. In fact, as India's biggest bourse, in terms of listed companies and market

capitalization, BSE has played a pioneering role in the development of the Indiansecurities market. It is surely BSE's pride that almost every leading corporate in India has

sourced BSE's services in capital rising and is listed with BSE.

Even in terms of an orderly growth, much before the actual legislations were enacted,

BSE had formulated a comprehensive set of Rules and Regulations for the securities

market. It had also laid down best practices which were adopted subsequently by 23 stock

exchanges which were set up after India gained its independence.

BSE, as a brand, has been and is synonymous with the capital market in India. Its

SENSEX is the benchmark equity index that reflects the health of the Indian economy.

Stocks of public limited companies are bought and sold at a stock exchange. But what

really are stock exchanges? Known also as the stock market or bourse, a stock exchange

is an organized marketplace for securities (like stocks, bonds, options) featured by the

centralization of supply and demand for the transaction of orders by member brokers, for

institutional and individual investors.

Several Firsts

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At par with the international standards, BSE has in fact been a pioneer in several areas. It

has several firsts to its credit even in an intensely competitive environment.

First in India to introduce Equity Derivatives

First in India to launch a Free Float Index

First in India to launch US$ version of BSE SENSEX

First in India to launch Exchange Enabled Internet Trading Platform

First in India to obtain ISO certification for a stock exchange

'BSE On-Line Trading System‟ (BOLT) has been awarded the globally recognized

the Information Security Management System standard BS7799-2:2002.

First to have an exclusive facility for financial training

First in India in the financial services sector to launch its website in Hindi and

Gujarati

Shifted from Open Outcry to Electronic Trading within just 50 days.

First bell-ringing ceremony in the history of the Indian capital markets.

Investor Education

An equally important accomplishment of BSE is its nationwide investor awareness

campaign - "Safe Investing in the Stock Market" - under which awareness campaigns and

dissemination of information through print and electronic medium is undertaken across

the country. BSE also actively promotes the securities market awareness campaign of the

Securities and Exchange Board of India.

THE NATIONAL STOCK EXCHANGE OF INDIA

In the fast growing Indian financial market, there are 23 stock exchanges trading

securities. The National Stock Exchange of India (NSE) situated in Mumbai - is the largest

and most advanced exchange with 1016 companies listed and 726 trading members.

The NSE is owned by the group of leading financial institutions such as Indian Bank or

Life Insurance Corporation of India. However, in the totally de-metalized Exchange, the



ownership as well as the management does not have a right to trade on the Exchange.

Only qualified traders can be involved in the securities trading.

The NSE is one of the few exchanges in the world trading all types of securities on a

single platform, which is divided into three segments: Wholesale Debt Market (WDM),

Capital Market (CM), and Futures & Options (F&O) Market. Each segment has

experienced a significant growth throughout a few years of their launch. While the

WDM segment has accumulated the annual growth of over 36% since its opening in

1994, the CM segment has increased by even 61% during the same period. The National

Stock Exchange of India has stringent requirements and criteria for the companies listed

on the Exchange. Minimum capital requirements, project appraisal, and company's track

record are just a few of the criteria. In addition, listed companies pay variable listing

fees based on their corporate capital size.

The National Stock Exchange of India Ltd. provides its clients with a single, fully

electronic trading platform that is operated through a VSAT network. Unlike most world

exchanges, the NSE uses the satellite communication system that connects traders from

345 Indian cities.

HISTORY OF NATIONAL STOCK EXCHANGE OF INDIA

Capital market reforms in India and the launch of the Securities and Exchange Board of

India (SEBI) accelerated the incorporation of the second Indian stock exchange called

the National Stock Exchange (NSE) in 1992. After a few years of operations, the NSE has

become the largest stock exchange in India.

Three segments of the NSE trading platform were established one after another. The

Wholesale Debt Market (WDM) commenced operations in June 1994 and the Capital

Market (CM) segment was opened at the end of 1994. Finally, the Futures and Options

segment began operating in 2000. Today the NSE takes the 14th position in the top 40

futures exchanges in the world.



In 1996, the National Stock Exchange of India launched S&P CNX Nifty and CNX Junior

Indices that make up 100 most liquid stocks in India. CNX Nifty is a diversified index of

50 stocks from 25 different economy sectors. The Indices are owned and managed by

India Index Services and Products Ltd (IISL) that has a consulting and licensing

agreement with Standard & Poor's.

In 1998, the National Stock Exchange of India launched its web-site and was the first

exchange in India that started trading stock on the Internet in 2000. The NSE has also

proved its leadership in the Indian financial market by gaining many awards such as

'Best IT Usage Award' by Computer Society in India (in 1996 and 1997) and CHIP Web

Award by CHIP magazine (1999).

National Stock Exchange Of India Limited - NSE

The National Stock Exchange is India's largest financial market. Established in 1992, the

NSE has developed into a sophisticated, electronic market, which ranks third in the world

for transacted volume. The NSE conducts transactions in the wholesale debt, equity and

derivative markets.

STOCK AND EXCHANGE BOARD OF INDIA ESTABLISHMENT OF SEBI

The Securities and Exchange Board of India was established on April 12, 1992 in

accordance with the provisions of the Securities and Exchange Board of India Act, 1992.

PREAMBLE

The Preamble of the Securities and Exchange Board of India describes the basic

functions of the Securities and Exchange Board of India as

“…..to protect the interests of investors in securities and to promote the

development of, and to regulate the securities market and for matters connected

therewith or incidental thereto”

http://www.sebi.gov.in/acts/act15ac.html

http://www.sebi.gov.in/acts/act15ac.html



REGULATION OF BUSINESS IN THE STOCK EXCHANGES

Under the SEBI Act, 1992, the SEBI has been empowered to conduct inspection of stock exchanges. The SEBI has been inspecting the stock exchanges once every year since

1995-96. During these inspections, a review of the market operations, organizational

structure and administrative control of the exchange is made to ascertain whether:

The exchange provides a fair, equitable and growing market to investors.

The exchange's organization, systems and practices are in accordance with the

Securities Contracts (Regulation) Act (SC(R) Act), 1956 and rules framed there

under.

The exchange has implemented the directions, guidelines and instructions issued

by the SEBI from time to time.

The exchange has complied with the conditions, if any, imposed on it at the time

of renewal/ grant of its recognition under section 4 of the SC(R) Act, 1956.

During the year 1997-98, inspection of stock exchanges was carried out with a special

focus on the measures taken by the stock exchanges for investor's protection. Stock

exchanges were, through inspection reports, advised to effectively follow-up and redress

the investors' complaints against members/listed companies.

During the earlier years' inspections, common deficiencies observed in the functioning

of the exchanges were delays in post trading settlement, frequent clubbing of

settlements, delay in conducting auctions, inadequate monitoring of payment of

margins by brokers, non-adherence to Capital Adequacy Norms etc. It was observed

during the inspections conducted in 1997-98 that there has been considerable

improvement in most of the areas, especially in trading, settlement, collection of

margins etc.



A. DEMATERIALIZATION

Dematerialization in short called as 'demat' is the process by which an investor can get

physical certificates converted into electronic form maintained in an account with the

Depository Participant. The investors can dematerialize only those share certificates that

are already registered in their name and belong to the list of securities admitted for

dematerialization at the depositories.

Depository: The organization responsible to maintain investor's securities in the

electronic form is called the depository. In other words, a depository can therefore be

conceived of as a "Bank" for securities. In India there are two such organizations viz.

NSDL and CDSL

B. PROCEDURE OF CLIENT ACQUISITION

In the first phase we are trained and they teach us different things about market. They

teach us about sharekhan.com introduction, products and services offered by

sharekhan.com in the market. We have been trained properly about sharekhan.com

After that they conduct a mock viva, in this they ask about the real life problem faced

by the customers.

They provide us leads and we make calls. Three types of leads are provided to us:

People who registers themselves on sharekhan.com website willing to be client of

sharekhan.com and want to know about its product.

People who have Demat account already with any another broker.

People who are totally unknown to this market. Then after that we have to provide details of product and convince them. People who

have already Demat account, we have to convince them by giving information about

sharekhan.com services benefits.

And people who are unknown to share market, we tell them about sharekhan.com

first step program for fresher.



Then we have to visit them and get the formed filled from them.

We collect all-important documents from client.

C. DOCUMENTS PHOTOCOPIES REQUIRED

(i) TWO COLOURED PHOTOGRAPHS (self signed).

(ii) For Identification Proof - VOTER ID CARD/ DRIVING LICENCE /PASSPORT/

PAN CARD (ANY ONE)

(iii) For Residence Proof - BANK STATEMENT / VOTER ID CARD /

RATION CARD / DRIVING LICENCE /

PASSPORT / TELEPHONE BILL STATEMENT

ELECTRICITY BILL STATEMENT.

(ANY ONE)

(iv) One cancelled cheque leafed (For MICR No. record)(E)Latest bank statement/Front

page of passbook(showing Name,Address,A/C No.)

(v) One account opening cheque of Rs.750/1000.

(vi) Customer can also deposit the initial margin money at the time of opening th

account

Marinating dairy of clients and contacting them at regular basis. To get feedback

from them about sharekhan services.



1.2 PROFILE OF THE ORGANISATION

-- ORIGIN OF THE COMPANY

Sharekhan is a stock broking company. The company offers a complete range of pre

trade, trade and post trade service on the BSE (Bombay stock exchange) and the NSE

(National stock exchange).

Whether the client come in to the company‟s conventionally located offices and trade in a

dedicated environment or issue instructions over the phone, the highly trained team and

sophisticated equipment ensure smooth transactions and prompt service.

Investment Advisory service

Facilitation services to Retail Investors, Corporate.

Depository services

Investment options include:

Online trading (Includes equity, derivatives)

Commodities trading

Mutual funds

Portfolio management service

Operations:

Institutional broking

Investment Banking

Retail Broking



Through trading and settlement process the investor converted into the final product. The

clearing house of exchange may act as legal counter party to all dealers for all deals in

equity derivatives instruments on exchanges. Thus the both the parties to an equity

derivatives met either by the party itself or in the event of default on the part of the party,

by clearing corporation.

A client can trade only through a trading member of the exchange. A clearing member

can act as trading member. The process of trading is similar to screen based trading in

securities like shares on an exchange. The exchange introduced standardized contract

where settlement date, is specified by stock exchange and the client can enter into

contracts with different contract/ strike price.

In order to minimize the risk of failure parties to contract in full filling their respective

obligation under the contract, the Clearing Corporation/trading members. Margins are

required to be paid by clearing/trading members who in turn, collect margin from their

respective clients.

-- RECENT ACHIEVEMENTS OF SHAREKHAN

1. Rated among the top 20 wired companies along with Reliance, HUJl, Infosys, etc

by„Business Today‟, January 2011 edition.

2. Awarded „Top Domestic Brokerage House‟ four times by Euro

money and Asiamoney.

3. Pioneers of online trading in India amongst the top 3 online trading

websites fromIndia. Most preferred financial destination amongst online

broking customers.

4. Winners of “Best Financial Website” award.

5. Voted by CNBC Awaaz as the Most Preferred Stock broker in India in 2005.



MISSION & VISION

Mission: To educate and empower the individual investor to make better investment

decisions through quality advice and superior service.

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

PROFILE

Sharekhan Ltd. is one of the leading retail stock broking house of

SSKI Group which is running successfully since 1922 in the country. It

is the retail broking arm of the Mumbai-based SSKI Group, which has

over eight decades of experience in the stock broking business.

Sharekhan offers its customers a wide range of equity related services including trade

execution on BSE, NSE, Derivatives, depository services, online trading, investment

advice etc. The firm‟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 one lakh

customers. The content-rich and research oriented portal has stood out among itscontemporaries 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.

On April 17, 2002 Sharekhan launched Speed Trade, a 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. Sharekhan‟s ground network includes over

331 centers in 137 cities in India which provide a host of trading related services.

Sharekhan 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 Morakhiya family holds a majority stake in the company. HSBC, Intel & Carlyle are

the other investors. 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. Presently

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. 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$ 1 billion in private equity deals. Some of the clients include BPL

Cellular Holding, Gujarat Pipavav, Essar, Hutchison, Planetasia, and Shopper‟s Stop.

About SSKI group

SSKI group also comprises institutional broking and corporate Finance. While the

institutional broking division caters to the largest domestic and foreign institutional

investors, telecom and media. SSKI holds a sizeable portion of the market in each of

these segments.

As the forerunner of investment research in the Indian market, we provide the best

research coverage amongst broking houses in India. Our research team is rated as one of

the best in the country. Voted four times as the Top Domestic Brokerage House by Asia-

money Survey. SSKI is consistently ranked amongst the top domestic brokerage houses

in India.

Broking



If you prefer the assurance and reliability of trading through a broker, you can use our

network of 250 branches and 157 business partner outlets in over 123 cities to trade in

equities as well as derivatives. We will help you with the investment process, give you

advice based on extensive research and provide you with relevant and updated

information to help you make informed investment decisions.

Our trading services are designed to offer an easy, hassle free trading experience, whether

you trade daily or occasionally. You will be entitled to a host of value-added services,

intended to assist you in your investment process depending of your investing style and

frequency.

Freedom @ www.sharekhan.com however, if you prefer the convenience of trading from

wherever you are, you can get yourself a Classic trading account and enjoy the freedom

that comes with it.

You can now place orders even after the trading hours, and the orders are queued up to be

executed as soon as the market opens. Sharekhan.com the winner of several prestigious

awards has been the most preferred destination for online trading ever since its launch.

http://www.sharekhan.com/






PROFILE OF THE COMPANY:

Name of the company : Sharekhan ltd.

Year of Establishment : 1925

Headquarter : ShareKhan SSKIA-206 Phoenix HousePhoenix Mills CompoundLower ParelMumbai - Maharashtra, INDIA- 400013

Nature of Business : Service Provider

Services : Depository Services, Online Services and

Technical Research.

Number of Employees : Over 3500

Website : www.sharekhan.com

Slogan : Your Guide to The Financial Jungle.

SHAREKHAN R E S E A R C H R E P O R T

Sharekhan tigers dig meaty Stock Ideas out of the heart of the market and bring them to

you. Their skill at identifying their prey-Stock Ideas-while keeping your taste for

investment in mind is reflected in the depth of their research and the performance of the

ideas. The Market Strategy reports, on the other hand, identify the hunting-ground for

Stock Ideas, i.e. sectors and stock groups that are ripe for performance, discuss the state

of the economy and its impact on the stock market as well as advise you on dealing with

the impact of socio-political issues on the market.

Building and maintaining customer ideal portfolio demands objective, dependable

information. Sharekhan Equity Analysis helps satisfy that need by rating stocks based on

carefully selected, fact-based measures. And because Sharekhan is not focused on

investment banking, it doesn't have the same conflicts of interest as traditional brokerage







firms. This objectivity is only one important difference in our ratings.

MANAGEMENT TEAM

Owner of the company : Mr. Dinesh Murikya

CEO of the company : Mr. Tarun Shah

Director (Operations) of the company : Mr. Shankar Vailaya

Head Research : Mr. Gaurav Dua

Trader/Entrepreneur/Sub Broker : Mr. V S Ganesh

Assistant Manager- : Mr. Chethan KumarHuman Resource

Associate Vice President- : Mr. Hanumanth RaoFranchisee Business

Mr. Tarun Shah Mr. Chetan kumar Mr. Hanumanth rao Mr. Shankar Vailaya(CEO) att. Manager HR vice president director (operation)



P R O D U C T A N D

S E R V I C E S



PRODUCT & SERVICES

A Sharekhan outlet offers the following services: Online BSE and NSE executions (through BOLT & NEAT terminals).

Free access to investment advice from Sharekhan‟s Research team.

Sharekhan Value Line (a monthly publication with reviews of recommendations,

stocks to watch out for etc).

Daily research reports and market review (High Noon & Eagle Eye).

Pre-market Report (Morning Cups).

Daily trading calls based on Technical Analysis.

Cool trading products (Daring Derivatives and Market Strategy).

Personalized Advice.

Live Market Information.

Depository Services.

Derivatives Trading (Futures and Options).

IPO‟s & Mutual Funds Distribution.

Internet-based Online Trading: Speed Trade.

TYPES OF PRODUCTS

1. Classic Account

2. Fast trade Account

3. Trade Tiger

1. Classic Account:

The features about classic account are- It is basically used for beginners i.e. Fresher.

Here the transactions can be done in BSE, NSE and F&O nternet-based Online

Trading.

There can be a market watch.



Here we can make four templates i.e. folders.

You can add 20 scrip‟s in each template.

Here you can add minimum 20 scrip and maximum 100 scrip.

Top gainers, Top losers, Top traded equities and Top traded funds are the special

links available in this.

It gives maximum access.

You can keep lump sum amount in the account.

There is a link which is- what‟s in, what‟s out.

A system required is Windows XP, 2000, IE 6.0.

2. Fast trade Account:

The features about fast trade account are-

We can make five templates.

You can monitor 125 companies.

Systems required here are Windows XP, 2000, IE 6.0 and Java.

You can also buy Mutual funds and IPO online.

You can also monitor circuits.



You can see the market depth i.e. the logic of demand and supply. It will help to

decide whether to buy or not.

It can also add trigger as in it works as a reminder.

This online trading platform is an applet- based application that provides live.

Streaming quotes from BSE and NSE.

Get live market prices and market statistics like best bid price, quantity, best offer

price and quantity etc. for chosen stock.

3. Trade Tiger:

Trade Tiger is an application that brings you the power of a broker‟s terminal, right from

the desktop.

Trade on multiple exchanges {NSE, BSE, MCX, NCDEX} from a single screen.

Customize market watches by scripts or sectors and view them on a single screen.

Get access to technical tools and trade like a pro.



Trade tiger :

This account allows you to trade through website and is suitable for retail Investors.

S y s t e m R e q u i r e m e n t s

Customers will need access to a computer, which has at least the following configuration:

Pentium 3 PC

Minimum 128 MB RAM

Windows 2000/XP

Dial-up Modem / Cable modem

Internet Connection Account



Internet Explorer 6.0

Java enabled in IE

2.4 SHAREKHAN ONLINE TRADING FACILITIES

(a) CLASSIC ACCOUNT: A/C Opening charges: Rs. 750(life time charges)

DEMAT A/C free for first year and Rs.300 from

2nd year onwards.(Maintenance charges)

Trading through our website.(www. sharekhan.com)

No volume & minimum margin money commitment required.

NSE online and BSE offline.

Live applet for watching prices & trading purposes.

(b) SPEED TRADE: Account Opening Fee: Rs. 1000/-(life time charges)

DEMAT A/C free for first year and Rs.300 from

2nd year onwards.(Maintenance charges)

Trading through Software/Live Terminal provided by sharekhan NSE & BSE online

(through software as well as through website & phone).

Monthly Access Fee(for SPEEDTRADE only) : Rs 500/- a month. The access charges

will be applicable to all the new customers signed up from 2nd month of activation.

To explain if an account is signed up in January 2005, and the same is activated in

January 2005, the access charges will be applicable for Feb 2005 month and the first

debit of access charges for the account will happen by the 7th of March 2005.

Non applicability of Monthly Access Fee :

At the end of a Month if the client has contributed more than Rs. 1000/- as Gross

brokerage, the access charges of Rs. 500/- will not be Debited to client's account. If the

brokerage is less than 1,000/- the access charges of Rs. 500 will be debited in the

subsequent month by 7th.



Exceptions applicable for Access Charges :

The access charges of Rs. 500 if charged to a client can be refunded in full if the total

brokerage by the client is above 3,000 in a Calendar Quarter.

BROKERAGE: -

CASH BROKERAGE: - DELIVERY: 0.50%, INTRADAY: 0.10%*

EXPOSURE: - 4 TO 6.6 TIMES* (ON MARGIN MONEY)

(* subject to change or as decided by Assistant Manager)

F&O BROKERAGE: - ON FIRST LEG {Buy} 0.10%,

SAME DAY SQUARE {Sell} OFF: 0.02%

SECOND LEG: 0.10%

OTHER FEATURES-:

Settlements of trades follow T+2 transaction cycle.

No Demat Transaction Charges in case of buying and selling through online.

For the fund transfer and withdrawl, we have tie-up with four banks- HDFC

Bank,CITI Bank, IDBI Bank & UTIBank.

If customers are having bank a/c in one of them, you can transfer the funds and

withdraw the funds online from their trading a/c at anytime.

BTST (Buy today Sell Tomorrow) Facility in all scripts.

DIAL-N-TRADE Call and Trade through Toll free no. From anywhere in India

(CUSTOMER CARE: 1600 22 7500, TRADING: 1600 22 7050,30307600)

Online IPO filling facility.

Freedom from paperwork, trading facilities are completely online.

SMS alerts on your mobile phones.

Daily sharekhan.com research reports in your mailbox (5 online research

papers/magazines).



T r a d e i n E q u i t y b yu s i n g y o u r p h o n e

Free with Sharekhan Classic Account, the Dial-n-Trade service enables for customer to

place orders for buying and selling shares through their telephone.

All customer have to do is dial any one of sharekhan dedicated numbers 9899824828

enter their TPIN number (which is provided at the time of opening customer account)

and on authentication customer will be directed to a telebroker who will buy and sellshares for them.

F e a t u r e s o f D i a l - n-

T r a d e that enable you to trade effortlessly

Dedicated numbers for placing customer orders with their cell phone or landline. Toll

free number: 9899824828. For people with difficulty in accessing the toll-free

number, sharekhan also has a Reliance number which is charged at Rs. 1.50 per

minute for STD calls.

Automatic funds transfer with phone banking (for Citibank and HDFC bank

customers).

Simple and Secure Interactive Voice Response based system for authentication.

No waiting time. Enter your TPIN to be transferred to telebrokers.

You also get the trusted, professional advice of telebrokers.

After hours order placement facility between 8.00 am and 9.30 am (timings to be

extended soon).

http://netcontent.sharekhan.com/ClassicAccount/






TYPES OF SHARE TRADING



BRANCHES ALL OVER INDIA



SWOT ANALYSIS

http://www.alexandriamarketing.com/graphics/copy%20of%20SWOT.g

http://www.alexandriamarketing.com/graphics/copy%20of%20SWOT.g



A SWOT analysis focuses on the internal and external environments, examining strengths

and weaknesses in the internal environment and opportunities and threats in the external

environment.

STRENGTHS

SERVICES

As a product an extremely innovative product with very less cost. Services like online

trading facility, institutional and domestic broking, customized research reports with

almost 80% efficiency etc give Sharekhan an edge over its competitors. Sharekhan

provides other support services that make retail investors more confident and assured

with their trading. SMS alerts (allowing traders and investors to make the most of the

available opportunities), Softer, intangible features like imagery, equity driving

preference. Through efficient trading processes Investors can place their orders directly

on the Internet, do all the information seeking and basically own the investing process.

DISTRIBUTION NETWORK

Sharekhan with almost 250 branches spread across 123 cities beefed up by

comprehensive online research, advice and transaction services. In near future expect to

make 200000 plus retail customers being serviced through centralized call center, web

solution, 60 branches, semi branches servicing affluent, aggressive traders through

highly skilled financial advisors, 250 independent investment managers, franchisees

servicing 50000 highly valued clients.

MARKETING

Sharekhan is a veteran equities solutions company with over decades of experience in the

Indian stock markets. Sharekhan does not claim expertise in too many things.

Sharekhan‟s expertise lies in stocks and that's what it talks about with authority. So when



he says that investing in stocks should not be confused with trading in stocks or a

portfolio-based strategy is better than betting on a single horse, it is something that is

spoken with years of focused learning and experience in the stock markets.

PRODUCTS

Company‟s product line is quite flexible in the sense that there is a product for every kind

of investors. Also all the products cover all the loop holes of all the products offered by

the other competitors like low cost, user friendly online trading services etc.

WEAKNESS

CUSTOMER SATISFACTION

As far as customer satisfaction goes sharekhan.com has to tighten their socks. Many

broking houses catering to heavy investors or small segment of the market can

afford to and does provide relationship managers for their customers, who can

understand the trading needs of individual customers, and advise accordingly.

However, a broking house like sharekhan.com, which caters to the mass segment, is

in no position to provide relationship managers for individual customers.

BRANDING

Though the company has efficient products but large part of investment interested

population does not know the company. The most basic expectation for a trader or

investor when one begins trading is that one must get timely delivery of shares and

proceeds from sale of shares. Also ones cash balances with the broker must be safe

and secure. Though this confidence in the broker comes with time and experience,

good and transparent practices also play a major role in imbibing confidence in

trader.



COMPETITION FROM BANKS

Most of the banks due to good branding have the faith of the customers of their

banking database. So they enjoy the liberty of huge database and customers find it

more reliable to trade their rather than with a unknown broker. Also banks like

HDFC Bank and ICICI Bank have the advantage of linking the trading accounts of their

customers to saving accounts. This makes trading easier, and at the same time a

trader withdraws exactly as much money from his account as is needed to complete

the trade. Similarly sales proceeds are credited directly to saving account.

OPPORTUNITIES

EVER-INCREASING MARKET

After the NSE brought the screen based trading system stock markets are now more

secured which has attracted lot of retail investors and the demand is increasing day by

day. This has resulted in improved liquidity and heavy volumes on transactions.

Sharekhan is one of the early entrants here. As to how much it will roar and how swift it

can swoop on the market, the future alone can answer such queries. Sharekhan has

been a mega player and is known for being a mover of stocks. It is also known for

putting big deals through and enjoys good networking with the FIIs. It has been dynamic

enough to move with the times and capture the opportunities that the market throws

up from time to time.

IMPROVING TECHNOLOGY

In country like India technology is always improving which gives the company a chance

to keep on improving their product with time whereas for the small players like local

brokers it will be difficult to keep the same pace as the changing technology. Also with

SEBI lying down some strict guidelines small brokers are finding it harder to retain the

customers with no research department and small capital. The traditional business model

is highly dependent on a large network of sub-brokers, and many established players may



not have systems (technology, customer service, etc.) capable of directly servicing so

many retail customers.

UNFULFILLED NEEDS OF THE CUSTOMERS

With so many competitors offering their products in the market but no one is able tocompletely satisfy the customers. Some have the problem of lack of information or some

were scared of volatility of the stock markets. Sharekhan.com has the opportunity to tap

this unsatisfied set of customers and to make hold in the market. The Internet serves to

break all barriers to information, as it offers an extremely hassle-free investing platform.

EDUCATION LEVEL

The education level in the country is improving year after year as far as technology goes.With that the understanding of the stock market is also increasing and a lot of retail

investors are steeping in the markets which are being shown by increasing volumes,

transactions and indices.

THREATS

THREATS NEW COMPETITORS

A lot of new competitors are trying to enter the market in this bullish run to taste the

flavor of this cherry. This is creating a lot of competition for large players like

sharekhan.com and it is creating little confusion in the minds of the customers about

the services provided by the broker. Also many banking firms are entering into the

market with huge investment.

TECHNOLOGY BASED BUSINESS

Online trading is totally based on the technology which is quite complex. Typically,

the technology solution has to start from the Internet front-end (or the screen that

you see when you begin trading). Then it needs to get into the 'middle tier' of risk

management systems that assess data from banks and depository participants (DP),

calculate client risk at that point in time, and give the 'Go/No go' advice to the trade.



So technology is a kind of threat because unless until it is working properly it is good

but internet is not that safe. Though a lot of cyber laws are being made but not yet

executed.

Branch Head

Regional Sales Manager Equity Advisors Back Office Dept.

Territory sales

manager

Assistant Manager

Direct Sales

Executive

Trainees

Relationship

ManagersCustomer care

cacccre

Accounting

Department

ORGANISATION CHART



1.3 PROBLEM STUDIED

Trading in securities may become uncontrolled in case of dematerialized securities.

It is incumbent upon the capital market regulator to keep a close watch on the trading in

dematerialized securities and see to it that trading does not act as a detriment to investors

Multiple regulatory frameworks have to be confirmed to, including the Depositories Act,

Regulations and the various Bye Laws of various depositories.

To maintain and cope up with the growing competition from the various online trading

providers, Share khan needs to find potential clients, also the new investors and satisfy

there needs.

The Broad objective of the project is to equip the trainees with all the quality which is

essential to face any circumstances which can arise while providing service to the clients.

This project will accomplish to understand how the people interact with technology savvy

products and if they are ready for doing all the trading through net. The project also helps

in understanding the trend of the scripts of the particular sector (banking sector) in

different market condition.

All these steps help me to understand how to cope up with different types of people and

there diversified need and satisfaction level.

Trading in securities may become uncontrolled in case of dematerialized securities.

It is incumbent upon the capital market regulator to keep a close watch on the trading in

dematerialized securities and see to it that trading does not act as a detriment to investors.

The role of key market players in case of dematerialized securities, such as stock-brokers,

needs to be supervised as they have the capability of manipulating the market.

Multiple regulatory frameworks have to be confirmed to, including the Depositories Act,

Regulations and the various Bye Laws of various depositories. Additionally, agreements



are entered at various levels in the process of dematerialization. These may cause anxiety

to the investor desirous of simplicity in terms of transactions in dematerialized securities.



Review of Existing Literature

According to the Webster‟s dictionary, literature is “the writings that pertain to a

particular branch of learning, and printed matter”. And review means “to examine

again, to study carefully”.

Therefore literature review is the printed matter, which we study very carefully during

our work. This project is also a collection of insight into the different printed material.

As this project is specifically related to investor who invest their money using different

investment alternative like equity, mutual fund, banks, others.

The main source of data through which this project has taken its shape is the circulars of

SEBI. These circulars give description of existing market.

“INVESTMENT DECISION” is taken from “FINANCIAL MANAGEMENT” written

by D. K GOYAL. Purpose of this book is to provide background needed to understand

the basics concept of investment.

The study related to investment decision also helped me a lot to understand what factor

an investor considers for his investment.

“The concept and role of mutual funds” of the AMFI mutual fund testing programme

by association of mutual funds in India. This book provide concept of mutual funds.

Last but not the least, the practical experiences of Share-khan Ltd. has given the best

ever exposure on the actually market works in financial products and services.

Investing is not just putting money in some instrument for the future but it involves

taking careful steps to make money grow. When you invest, your goal is that its value

will increase over a period of time. There are large numbers of investment avenues

available to invest like stocks, real estate, bank deposits, government of India bonds, post

office saving schemes etc.

The investment vehicles available for one to choose today vary from money market

certificates (which earn set rates of interest) to high-risk growth stocks. Investing in any

instrument almost always involves some risk, but if you learn how to analyze investments

carefully and invest wisely over an extended period of time, investing is a proven way to

increase wealth. Careful analysis and proper investment steps improve once capability to



earn reward in the long run through investment alternatives available.

Investments are nothing but parking your savings into various instruments available

which suits the best risk and return appetite of the individual.

“Income – expenditure = Savings”

Savings are the difference between the net income and the total expenditure made.

Investment avenues and alternatives

3.1 INVESTMENT AVENUES AND ALTERNATIVES

Investment alternatives vary from fixed income to variable income which includes RBI

bonds, government securities, fixed deposit, equity investments, property and so on.

In recent years the 6.5 percent tax-free RBI Bonds have become a very popular saving

instrument -- especially amongst individuals. Till 1996, these bonds gave returns of 10

per cent. This came down to 9 per cent and then 8 percent and then in 2003 it was

reduced to 6.5 per cent (tax free). Nowadays, 8 percent taxable Government of India

bonds are also doing well to attract investors who want safe and higher yield.

However, with inflation at nearly 4.5%, the return offered by these instruments were still

attractive. However, with the scrapping of the tax-free bonds, safe investment options for

individuals have become very limited and people are now choosing to go with either post

office saving schemes or equity related instruments.

Take a look at what is happening. Debt funds, which were said to be relatively risk-free,

are giving very less returns. Monthly Income Plans offered by mutual funds are also not

attractive as their portfolio is made up of 80 percent debt and 20 percent equity. With

debt giving very less returns and returns from equity becoming stagnant, the returns from

MIPs are also very attractive. The returns offered by MIPs are totally dependant upon the

type of security and debt instruments held by the fund But with recent rally in the stock

market, very few people are now going for MIPs and have a very positive sentiment



about the market and would like to stay with the market for long. But continuously we

still have a single question in mind:

So where should individuals park their money now?

"The 8 per cent taxable RBI Bonds seem to be one of the best options right

now looking for a safe avenues."

The person in the 30 percent tax bracket, the 8 per cent RBI bonds will give returns of

approximately 5.6 per cent. Though this is much lower than the previous 6.5 percent, it is

still a better than most other options. If you are a senior citizen, the Senior Citizens

Savings scheme offering a 9 Percent yearly interest is a good investment option. The

scheme was announced in the Budget 2004-2005 and was meant for people above the age

of 60. However, this scheme has a maximum deposit limit of Rs. 15 lacs while RBI

Bonds do not have any limit. In this case, the term for deposit is five years with a facility

for premature withdrawal. The 9 percent returns are subject to tax, so if you are in the 30

percent tax bracket, you will effectively get returns of 6.3 per cent.

Another option can be Floating Rate Bond Fund offered by mutual funds. Basically, these

funds invest in floating rate instruments and therefore have a direct correlation to interest

rates. If interest rates go up the returns from these funds rise and returns fall with a fall in

interest rates. This is unlike debt funds, where there is a reverse relationship between

interest rates and returns. A rise in interest rates results in a fall in returns. In the current

scenario, these funds are likely to give returns of 5 percent to 5.5 percent. The dividends

are tax-free in the hands of the investor and most importantly, there is complete liquidity.

Again, there is no limit on the amount that can be deposited. Also, there is hardly any

volatility making it a safe option. If you are willing to take a bit of risk, you can divideyour portfolio in such a way that 60 percent is invested in floating rate bond funds and

the remaining 40 percent in equity. That's like having an MIP except that instead of 80

percent in debt and 20 percent in equity, here the 60 percent is in floating rate bond

funds. Such a portfolio can give you returns of aprox. 8.5 % to 9.5 %.



The NSCs and the Kisan Vikas Patras give returns of 8 percent so for those in the 30

percent tax bracket, it works out to 5.6 percent. Here too there is no limit on the amount

of deposit. However, here the interest is posted only at the time of maturity. So it is not a

good option if you want regular returns. On the other hand, RBI Bonds give returns every

six months or half yearly. So, depending upon their risk profile and need for liquidity,

one will have to decide on their portfolio. For anyone below 35 years, it is recommend

that one should invest some part of there portfolio in RBI Bonds and in NSCs, KVPs as a

long term investments and the remaining in combination of floating rate bond funds and

equity But for those above 35,

It is advocate that one should look at nearly 40 percent in RBI Bonds, 30 percent in

NSCs, KVPs, hence giving safe and regular income. And the remaining 30 per cent in

floating rate bond funds and equity. For those above the age of 60, 40 percent must be put

in the Senior Citizens Scheme (of course, this is up to a maximum limit of Rs 15 lakh),

another 40 percent in RBI Bonds and the remaining 20 percent in floating rate bond

funds, so that one has some liquidity.As an investor one has a wide array of investment

avenues available to one.

Reduction in brokerage by many brokers for trading in dematerialized securities

Brokers provide this benefit to investors as dealing in dematerialised securities

reduces their back office cost of handling paper and also eliminates the risk of being

the introducing broker.

Reduction in handling of huge volumes of paper

Periodic status reports to investors on their holdings and transactions, leading to

better controls.

Elimination of problems related to change of address of investor, transmission,

etc



In case of change of address or transmission of demat shares, investors are saved

from undergoing the entire change procedure with each company or registrar.

Investors have to only inform their DP with all relevant documents and the required

changes are effected in the database of all the companies, where the investor is a

registered holder of securities.

Elimination of problems related to selling securities on behalf of a minor

A natural guardian is not required to take court approval for selling demat securities

on behalf of a minor.

Ease in portfolio monitoring

Since statement of account gives a consolidated position of investments in all

instruments.

Disadvantages of Dematerialization

The disadvantages of dematerialization of securities can be summarized as follows:

A. Trading in securities may become uncontrolled in case of dematerializedsecurities.

B. It is incumbent upon the capital market regulator to keep a close watch on the

trading in dematerialized securities and see to it that trading does not act as a

detriment to investors. The role of key market players in case of dematerialized

securities, such as stock-brokers, needs to be supervised as they have the capability of

manipulating the market.

C. Multiple regulatory frameworks have to be confirmed to, including the

Depositories Act, Regulations and the various Bye Laws of various depositories.

Additionally, agreements are entered at various levels in the process of

dematerialization. These may cause anxiety to the investor desirous of simplicity in

terms of transactions in dematerialized securities.



SERVICES PROVIDED BY THE SHAREKHAN:--

1 Online Services to Suit your Needs!

With a Sharekhan 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 Speed trade for active day traders. Your Classic

Account also comes with Dial-n-Trade completely free, which is an exclusive service for

trading shares by using your telephone.

#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

2 Get everything you need at a Sharekhan outlet!

All you have to do is walk into any of share khan‟s 640 share shops across 280 cities in

India to get a host of trading related services - their friendly customer service staff will

also help you with any accounts related queries you may have.

A Share-khan outlet offers the following services:

Online BSE and NSE executions (through BOLT & NEAT terminals)



Free access to investment advice from Sharekhan's Research team

Sharekhan Value Line (a monthly publication with reviews of recommendations,

stocks to watch out for etc)

Daily research reports and market review (High Noon & Eagle Eye)

Pre-market Report (Morning Cupper)

Daily trading calls based on Technical Analysis

Cool trading products (Daring Derivatives and Market Strategy)

Personalized Advice

Live Market Information

Depository Services: Demat & Remit Transactions

Derivatives Trading (Futures and Options)

Commodities Trading

IPO‟s & Mutual Funds Distribution

Internet-based Online Trading: SpeedTrade

1 Investing in Mutual Funds through Sharekhan

Invest in Mutual Funds through Sharekhan! They have started this service for a few

mutual funds, and in the near future will be expanding their scope to include a whole lot

more. Applying for a mutual /fund through share-khan is open to everybody, regardless

of whether you are a Sharekhan customer.

To invest in a fund, all you have to do is download the application form, print it out, fill it

in and send it over to share-khan. They‟ll do the rest for you.



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 investor who is risk-averse and hence

prefers to invest in stocks or who do not trade too frequently.

Features

Online trading account for investing in Equity and Derivatives via

www.sharekhan.com

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

Integration of On-line trading, Saving Bank and Demat 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.



SPEED-TRADE

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.

Technical Studies.

Multiple Charting.

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

Market summary (Cost traded scrip, highest value etc.)

Hot keys similar to breakers terminal.

Alerts and reminders.

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

DIAL-N-TRADE

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

ACCOUNT also gives you our Dial-n trade services. With this service, all you have to do

is dial our dedicated phone lines 1-800-22-7500, 3970-7500.



PORTFOLIO MANAGEMENT SERVICES

1. Prop rime: - Research & Fundamental Analysis.

2. Protect: - Technical Analysis.

-Thrifty Nifty

-Beta Portfolio

3. ProArbitrage: - Exploit price analysis

IPO ON-LINE

You can apply all the forthcoming IPO online hasselfree, paperless and time saving work.

CHARGE STRUCTURE

Structure for Pre Paid – Account Individuals: -

Charge Classic Account Speed Trade Account

Account Opening Rs. 750/= Rs. 1000/=

Monthly

Commitment

Rs. NIL Rs. 500/=

Brokerage Intra-day – 0.07 %**

Delivery - 0.40 %**

Intra-day - 0.05%**

Delivery - 0.25%**

* Refundable in case the brokerage is more than Rs. 500/= p.m.

** Condition Apply.

*** Taxes as per govt.

TABLE 3.1



Structure for Post Paid – Account Individuals: -

Charge Classic Account Speed Trade Account

Account Opening Rs. 750/- Rs. 1000/-

Monthly

Commitment

Rs. NIL Rs. 500/-

Brokerage Intra-day - 0.10 %*

Delivery - 0. 50 %*

Intra-day - 0.10 %*

Delivery - 0.50 %*

* Refundable in case the brokerage is more than Rs. 500/= p.m.

** Taxes as per govt.

They offer an On-line Trading Account along with the Demat A/c for the benefits to the

employees of company.

Depository Charges

Account Opening Charges Rs. NIL

Annual Maintenance Charges Rs. NIL first year Rs. 300/= p.a. from

second calendar year onward

TABLE 3.2

TABLE 3.3



PRODUCT DETAILS

(A) CLASSIC ACCOUNT: A/C Opening charges: Rs. 750/-

DEMAT A/C free for first year and Rs.300 from 2nd year onwards (Annual

Maintenance charges). Trading through website live terminal. No brokerage commitment

required.NSE and BS online. Both Cash & F&O.

(B) SPEED TRADE: Account Opening Fee: Rs. 1,000/-.Both Cash & F&O.

Monthly Recurring Fee: Rs 500/- per month, which is very nominal if you consider the

benefits of the product. This access charges will be debited to all the new customers

signed up after Sept 15, 2004. And at the end of the month if the client has contributed

more than Rs. 500/- as brokerage the access charges of Rs. 500/- will be credited back to

the clients account. Please note - this credit of Rs. 500/- will be given only to customers

who have contributed more than Rs. 500/- as brokerage during the months.

Minimum Brokerage Intra Day Per Share:

5 Paisa each leg (buy or sell) for Intra-day Trades (For e.g. on a Rs 20 Scrip, brokerage

@ 0.10% = 2 paisa, but there is a min. chargeable amount of 5 paisa).

Minimum Delivery Handling Charges:

10 Paisa for Delivery Trades (buy and sell) (For e.g. on a Rs 10 Scrip, brokerage @

0.50% = 5 paisa, but there is a min. chargeable amount of 10 paisa).

Rs 16/- per Scrip (The brokerage per Scrip will be charged for the selling of shares

resulting in delivery on actual). (For e.g. if a customer sells 100 shares of SAIL, TOTAL

Delivery value = 2200, brokerage @ 0.5% = Rs 11, but the min chargeable amt per scrip

per day = Rs 16), so additional Rs 5/- will be charged as Min delivery handling charges).



EXPOSURE: 4 TO 6.7 TIMES (ON MARGINE MONEY)

Online IPO's available

They have tie up with Nine banks for online fund transferring i.e. HDFC, ICICI, IDBI,

CITI, Union Bank of India, Oriental Bank of Commerce, INDUSIND, UTI bank ,

Bank of India and Yes Bank for online money transfer.



CHAPTER – 2

RESEARCH METHDOLOGY



OBJECTIVE & METHODOLOGY

SIGNIFICANCE

This is a limited study which takes into consideration the responses of people. This data

can be exported to take in the trends across the industry. The significance for the industry

lies in studying these trends that emerge from the study. It is a rapidly changing and

evolving sector. People are only beginning to wake up to it‟s vast possibilities. A study

like this can attempt to guide the future of the industry based on current trends. This

project will help to understand the problem faced by the new client with respect to online

share trading and find ways to solve their queries at microscopic level. The study also

aims to highlight the possible hurdles that a prospective client faces who are interested to

investing in securities but is unaware of the system of online share trading. Its also aims

at finding out the brand image of the organization amongst the general investors and give

information to the management about the new developments in the market adopted by the

competitors and the areas where the company needs to improve.

MANAGERIAL & USEFULNESS OF THE STUDY

1. From the study, Share Khan will come to know about the problems faced by

its existing as well as prospective investors.

2. To prepare an effective marketing strategy to lure the clients as compared to

its close competitors.

3. The study also aims at finding out the ranking of the company and its

competitors in terms of certain parameters, as adjudged by consumers.

4. This information is a good guide to management as it brings out the strengths

of the competitors and the areas where the company needs to improve.



OBJETIVES

Customer satisfaction through sales of Trading / Demat Accounts in order to get a

deep insight as to how the Organization actually performs these functions.

Understanding the Commodity and Derivative market and the way work is

performed in these segments.

Investigate the difficulties faced by the existing clients of Share Khan with

respect to its internet trading services

The primary objective of this study is to gain an insight into the basics of internet

trading with respect to Indian capital market.

To ascertain the problems those are hindering the acceptance of internet trading

among the prospective investors.

To conduct Market Research in various parts of the city in order to get

statistical data for commenting on the future of online share trading in India.



2.4 SCOPE OF THE STUDY

1. With growing acceptance and popularity of internet trading the study aims at

providing a deeper insight into this new field of security trading in India.

2. Assess the penetration of internet trading with respect to the growth of

broadband connectivity provided by various Inter Service Providers (ISPs).

3. to help Share Khan in developing a better customer acquisition retention

strategy in relation to retail as well as institutional investors.

Limitations:-

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.

The study is limited to the geographical area of Delhi and thereof cannot be

generalized.

Inaccurate Leads :-- Sometimes leads are provided which had error in it which

varies from only 5 digit phone number to wrong phone number

Misleading concepts: -- Some people think that Shares are too risky and just

another name of gamble but they don‟t know it‟s not at all that risky for long

investors.

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.



Mostly people comfortable with traditional brokers: -- As people are doing

trading from there respective brokers, they are quite comfortable to trade via

phone

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 IPO‟s.



2.5 METHODOLOGY

Expert opinion (primary data)…. Had a direct talk with customers of share khan and the

competitor‟s companies customer and for that I have prepared a list of questions which

helped me in knowing the details of their investment structure. This method was direct

and was mare beneficial from my project point of view. Secondary data through various

books, magazines, newspapers, journals and websites. The team divided the entire city

into zones and drew out samples out of each zone. The size of samples drawn from each

zone depended on the prospectiveness of the particular area. For e.g., if a particular

research area consisted of Offices then the sample size would obviously be higher than an

area like Shopping mall or PVR. This is because Office employees constitute the service

sectors who are the active investors of today. Also, the office areas consist of people from

the business class who have always been in the hunt for quick money, not to forget that

smart and timely investment in the share market can yield to enormous returns. After

dividing the city into zones, the Target audience was probed using Interviews and

questionnaires. These were later analyzed to draw out conclusive results.

Methodology for Customer Acquisition

The leads for customer acquisition primarily came from the questionnaires filled up by

prospective customers. Apart from these customers were also pitched through personal

references and contacts. Moreover the organization takes every possible effort in order

to spread mass awareness. As a result of this publicity campaign, influenced prospective

customers approach the organization. There are various ways to make people aware

about the organization as such Marketing Research, Canopy, Personal References, Pop-

up windows having collaboration with various portals e.g. Rediffmail.com etc. Person

with adequate interest leaves his contact information. Later on these leads are

contacted personally for further development. The organization has efficient sales stuff

that excels in this job. Part time trainees are also appointed for the same. This work

force been perfectly supervised by the Managers. Thus all these factors sum up into a

result oriented work force. These leads were the contacted through tele calling and



after developing a relationship, they were pitched in at the addresses provided by them.

After giving them a presentation about the product and its advantages over its

competitors, they were promised of a Demo by company sales force in case a sale had

resulted. Also references were collected from such people and the same methodology

was repeated. For each and every customer personal quarries have been entertained

after the sale is done.

Data Source

Data used for the research work was primary and secondary in nature. Secondary data is

the data that was collected from another purpose and already exists somewhere. Primary

data is gathered for a specific purpose and is collected by the researcher from mapping or

cold calls methods. The data used in this project is primary data collected from the

various categories of investors from different areas. Secondary data was collected using

various journals and publications like:

NSE‟s module on Capital Market, October „03

Business Today, Feb‟05 edition

Report on internet based securities trading and services by a committee chaired

by Shri O P Gahrotra, Sr. Exec Director, SEBI.



CHAPTER-3

DATA ANALYSIS



DATA ANALYSIS

ANALYSIS OF FUTURE ONLINE TRADING

(1) Are people aware of stock market?

(a)Yes (b) No

Interpretation: - A survey was conducted on the 200 people in the market. 71% of

the respondent replies that they know about the stock market other than those 29%

belongs not know about that category.

29%

71%

NO

YES

People aware of stock

market No of respondent

NO 29

YES 71

FIGURE 4.1

TABLE 4.1



(2)Through which sources people are aware?

(a)News paper (b) Friends (c) T.V (d) other sources

Sources No of respondent

Newspaper/Magazine 36

Friends/Colleagues 12

TV 47

Other sources 5

Interpretation:- The resources of the spreading awareness into the respondent as per

their percentage i.e. TV- 47% is the first above all, NEWSPAPER/ MAGZINES- 36%,

FRIENDS- 12%, OTHER SOURCES- 5%.

36%

12%

47%

5%

Newspaper/Magazine

Friends/Colleagues

TV

Other sources

FIGURE 4.2

TABLE 4.2



(3) Which brand gives the more customer value?

(a) ICICIDIRECT

(b) INDIA BULLS

(c) SHAREKHAN

(d) RELIGARE

Chart

Brands

ICICI

DIRECT

INDIA

BULLS

SHAREKHAN

Ltd. RELIGARE OTHER

No of

respondent 50 36 60 45 9

Interpretation:- SHARE-KHAN- 60 is the rank Ist among the other brands that is

ICICI direct-50, RELIGARE – 45 and the INDIA BULLS-36 is the last in the tally.

50

36

60

45

ICICI DIRECT INDIA BULLS SHAREKHAN

Ltd.

RELIGARE

Series1

FIGURE 4.3

TABLE 4.3



(4) AT WHAT PRICE PEOPLE WANT TO OPEN THEIR ACCOUNT?

(a) Rs 750

(b) Rs 900

(c) Rs 999

(d) Rs 750

Interpretation: - SHARE KHAN & ICICI direct are the two broking house which

are charging Rs-750 as opening of demat account. INDIA-BULLS is charging Rs-900,

and the RELIGARE securities is charging Rs-999 which is the highest charges among

the all.

750

900999

750

0

200

400

600

800

1000

1200

I C I C I D

I R E C

T

I N D I

A B U L L S

R E L I G

A R E S E

C U R I T I

E S

S H A R E K

H A N L T

D.

Series1

Brands

ICICI

DIRECT

INDIA

BULLS

RELIGARE

SECURITIES SHAREKHAN LTD.

No of respondent 750 900 999 750

FIGURE 4.4

TABLE 4.4



Analysis Pattern

Analysis can be defined as get some information from collected date i.e. get information

from raw data. Collected data is of no use until some results have not been found out.And analysis serves this purpose. Analysis can be done in many ways like graphs, charts,

tables, coding and statistical analysis etc.

The data thus collected was edited, tabulated, analyzed and interpreted to make study

meaningful.

Question-1

Interpretation: This graph shows that the maximum time horizon for investment in lessthan 2 years is 39%. Most of the people invest their money for less than 2 years. People

do not wait till more than 2 years.

TIME HORIZON FOR INVESTMENT

39%

24%

37%

0

0.050.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

less than 2 years 2-5 years more than 5

years

FIGURE 4.5



Question-2

Interpretation: This shows that out of 200 respondent 48% of respondent want 8%-15%

rate of return. Most of people expected 8%-15% rate of return.

IDEAL RATE OF RETURN AGAINST ANY

INVESTMENT

25%

48%

15%

12%

UPTO 8%

8%-15%

15%-18%

MORE THAN 18%

FIGURE 4.6



Question-4

Interpretation: In this graph shows that most of the people consider rate of return factorwhile investing their money. Some people invest their money for tax benefit also.

FACTOR THAT AFFECTED INVESTMENT

DECISION

55%

10%13%

22%

0%

10%

20%

30%

40%

50%

60%

rate of return security liquidity tax benefit

Series1 Series2

FIGURE 4.7



Question-5

Interpretation: This shows that 40% of respondent out of 200 investment up to 50000rs.

Only 6% respondent invests above 800000rs.

0%

5%

10%

15%

20%

25%

30%

35%

40%

upto50000

500000-200000

200000-500000

500000-800000

above800000

PORTFOLIO SIZE OF INVESTMENT

Series1 Series2

FIGURE 4.8



Question-6

Mutual funds 1 2 3 4

Banks 1 2 3 4

Equity 1 2 3 4

Other 1 2 3 4

Interpretation: This graph shows that different investor rate according to their

preference. 38% of people give 1st rank to banks then 23% of people choose mutual funds

then after 22% of people prefer others and 17% of people prefer equity.

rate of various investment alternative

23%

17%

38%

22%

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

mutual

funds

equity banks others

Series1

Series2

FIGURE 4.9



CHAPTER - 4

FINDINGS



A survey was conducted on the 200 people in the market. 71% of the respondent

replies that they know about the stock market other than those 29% belongs not

know about that category.

The resources of the spreading awareness into the respondent as per their

percentage i.e. TV- 47% is the first above all, NEWSPAPER/ MAGZINES-

36%, FRIENDS- 12%, OTHER SOURCES- 5%.

SHARE-KHAN- 60 is the rank Ist among the other brands that is ICICI direct-

50, RELIGARE – 45 and the INDIA BULLS-36 is the last in the tally.

SHARE KHAN & ICICI direct are the two broking house which are charging

Rs-750 as opening of demat account. INDIA-BULLS is charging Rs-900, and the

RELIGARE securities is charging Rs-999 which is the highest charges among the

all.

This graph shows that the maximum time horizon for investment in less than 2

years is 39%. Most of the people invest their money for less than 2 years. People

do not wait till more than 2 years.

This shows that out of 200 respondent 48% of respondent want 8%-15% rate of

return. Most of people expected 8%-15% rate of return.

In this graph shows that most of the people consider rate of return factor while

investing their money. Some people invest their money for tax benefit also.

This shows that 40% of respondent out of 200 investment up to 50000rs. Only 6%

respondent invests above 800000rs.

This graph shows that different investor rate according to their preference. 38% of

people give 1st rank to banks then 23% of people choose mutual funds then after

22% of people prefer others and 17% of people prefer equity.



CHAPTER - 5

RECOMMENDATIONS



I suggest following measures: -

While interacting with the investors I found that most of the customers are

unaware about the Mutual fund. Some of the people look upon mutual funds and

equity trading as gambling. Thus a mutual fund awareness program can help to

increase the penetration of mutual funds in the market.

The Stock Market has been very buoyant until now especially in the past 3 years.

This particular trend is very favorable because a soaring SENSEX means higher

returns, which encourages the investors to invest their money in the market.

Although in the past 3 months the market has shown very unpredictable trend and

has already lost over 1000 points.

In case of insurance, it requires push selling because people always associate it

with emergencies and unpleasant situations like death and they don‟t want to

think about such situation let alone prepare for them, which means it requires a lot

of conviction on part of the executives.

People have just opened up to the idea of ULIPs because till now they knew only

two kinds of insurance plans, endowment and term plans so the concept of high

returns with protection is very new to them and slowly and slowly these are

becoming popular so there is a huge market waiting to be tapped



ANNEXURE

QUESTIONNAIRE

Q1.What is the age group you fall in?

(a)17-30 (b)30-40 (c)40-50 (d)50-60 (e)above 60

Q2. Are people aware of stock market?

(a)Yes (b) No

Q3. If yes, in which company you are dealing with?

(a)SHAREKHAN Ltd.

(b) INDIA BULLS

(c) ICICI DIRECT

(d)RELIGARE SECURITIES

(e)ANY OTHER

Q4. Through which sources people are aware?

(a)News paper (b) Friends (c) T.V (d) other sources



Q5. Where do you invest your money?

Equity mutual fund Banks others

(Others – Gold, Bonds, Post office, NSC)

Q6. What is your time horizon for investment?

Less than 2 years 2-5 years more than 5 years

Q7. Which factor you consider more while investing your money?

Rate of return Risk factor Liquidity

Tax benefit

Q8. What according to you is ideal rate of return against any investment?

Up to 3% 3-8% 8-15% 15-18% more than 18

Q9. What would be your portfolio size of investment ?

Up to 50000 50000 to 200000 200000 to 500000 Above 50%

500000 to 800000 above 800000

Q10. Please rates investment alternative according to your preference?

Mutual fund



Equity

Banks

Others

Q11. Who influence you in your investment decision?

Friends Family members C.A Colleges others

Q12. Any suggestions you want to provide?

Name:…………………………………………………….

Age…………………………………………………….…

Sex…………Male…………..Female……………………

Phone No…………………………………………………

Occupation:………………………………………………



BIBLIOGRAPHY

Books:

1 Agarwal, J.D. "Security Analysis & Portfolio Management: A Review, Finance

India, Vol. II No. 1, March 1989.

2 Bhatt, V. V. "An Appraisal Of Some Recent Estimates Of Savings and

Investments", ICRNI, Vol. 5, 1963.

3 Douglas A. Hayes and W. Scott Bauman "Investments: Analysis and

Management" III Ed., 1976, MacMillan

4 Malhotra, Naresh "Marketing Research and Applied Orientation" IV Ed., 2005,

Pearson

Internet:

1 www.mutualfundsindia.com

2 www.easymf.com

3 www.amfiindia.com

4 www.moneycontrol.com

5 www.valueresearchonline.com

6 www.nseindia.com

7 www.bseindia.com

marketing sharekhan 1 (1)

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