summer trainning report organizational study of angel broking (p) ltdand present and the future...
TRANSCRIPT
EXECUTIVE SUMMARY
As a partial fulfillment of my MBA curriculum I have undergone six weeks
summer training at “ANGEL BROKING.” I have done my summer training project
at Jamnagar branch from 1st of May to 15th of June.
The Angel Group has emerged as one of the top 5 retail stock broking
houses in India, having memberships on BSE, NSE and the two leading
commodity exchanges in the country i.e. NCDEX and MCX. Angel Broking Ltd is
also registered as a depository participant with CDSL. Angel has exceeded
customer’s expectations by providing world-class service. I was placed under the
marketing and sales department and I have learned a lot in carrying out
marketing task for Angel Broking. I have done marketing in retail client segment.
I have also carried out a project during summer training. The title of my
project is
“Present and the Future Scenario of e-Broking in Jamnagar city area”
The questionnaire was used as data collection instrument and both open ended
and close ended type of questions were used as per the requirement. From the
survey it was found that currently the concept of e-Broking is not so prevalent in
the market, but its future can be made bright by properly conveying its benefits.
More details about the project are available in later part of this report.
1
INTRODUCTION TO ANGEL
In a shot span of 18 years since inception, the Angel Group has emerged as one
of the top five retail stock broking houses in India, having membership of BSE,
NSE and the two leading Commodity Exchanges in the country i.e. NCDEX &
MCX. Angel Broking is also registered as a Depository Participant with CDSL.
The group is promoted by Mr. Dinesh Thakkar, who started this business as a
sub-broker in 1987 with a team of 3. Today the angel group is managed by a
team of 1937 direct employees and has a nation wide network comprising of 12
Regional hubs, 64 branches and 2759 sub brokers & business associates. Angel
is 100% focused on retail stock broking business unlike any other larger national
broking house. The group currently services more than 226030 retail clients.
Angel habitually generates value added features without the cost burden being
passed on to the clients as they strongly believe that better understanding of
client’s needs and wants is their top priority. Their e-broking facility is one such
effort, which gives the client a platform to access state of the art trading facility at
the click of a button.
Angel has always strived for delivering customer delight and developing strong
long term bonds with its clients as well as channel partners. Angel thrives on a
vision to introduce new and innovative products and services constantly.
Moreover, Angel has been among the pioneers to introduce the latest
technological innovations and integrate them efficiently within its business.
2
The mainline Business Activities of Angel are :
Stock Broking
Derivatives Trading
Online Trading
Wholesale debt market operations
Depository services with CDSL
Fundamental Research Services
Technical Research Services
IPO Distribution and Advisory
Mutual Fund Distribution and Advisory
Commodities Trading
3
COMPANY’S PROFILE
NAME OF THE COMPANY: ANGEL STOCK BROKING LTD.
REGISTERED OFFICE: G-1, Akruti Trade Centre,
Road No. 7, MIDC Marol,
Andheri (E),
Mumbai – 400 093
BRANCH OFFICE: ANGEL STOCK BROKING LTD.
Indraprastha Building, 2nd Floor,
Block No : 228-229
Pancheshwar Tower Road,
Jamnagar- 361001
FORM OF ORGANISATION: Private Sector
PROMOTER: Mr. Dinesh Thakkar
ACCOUNTING YEAR: 1ST April to 31st March
4
ORGANIZATIONAL STRUCTURE
MANAGEMENT TEAM
Chairman and Managing Director : Mr. Dinesh Thakkar
Chief Investment Officer : Mr. Rajen Shah
5
Senior Research Analyst : Mr. Phani Sekhar
Table 1
ANGEL GROUP COMPANIES
Angel Broking Ltd. Member on the BSE Depository Participant with CDSL
Angel Capital & Debt Market Ltd. Membership on the NSE Cash and Futures & Options Segment
Angel Commodities Broking Ltd. Member on the NCDEX & MCX
Angel Securities Ltd. Member on the BSE
Angel Infin Pvt. Ltd. NBFC registered with RBI
Mimansa Systems Pvt. Ltd. For Software Development
(Source : www.harmony.angeltrade.com)
REGIONAL OFFICES
Ahmedabad
Bangalore
Chennai
Hyderabad
Indore
Jaipur
Kolkata
Mumbai
New Delhi
Pune
Rajkot
Surat
6
The Unique Features of Angel :
Instant Online Fund Transfer with Multiple Banks
BSE, NSE, F & O, MCX and NCDEX in a single screen
7
Efficient uptime and greater stability for high speed
Customized solutions as per client’s requirements
Personalized Advisory services for HNI clients
Call and Trade at 70 branches across the country
State of the art Technology and Infrastructure
DP with CDSL with automated pay-in facility
Instant Online technical support for clients
8
ANGEL’S LOGO
9
ANGEL’S VISION
10
ANGEL’S BUSINESS PHILOSOPHY
11
INVESTMENT PHILOSOPHY
“Given the client’s risk profile, maximize performance by adhering to disciplined
investment approach backed by quality research.”
Angel’s investment philosophy is based on two key attributes:
1. Wealth Creation :
The creation of Wealth can be categorized as :
Having money work for client
Having others work for client
Client Working for Money
2. Wealth Preservation :
As wealth grows, focus is shifted to striking a balance between asset creation
and preservation. Wealth preservation applies to day-to-day financial life which
includes managing cash flow and overall risk management.
12
OBJECTIVE OF ANGEL INVESTMENT PHILOSOPHY
Angel’s objective at all time is to protect and then grow client’s portfolio.
The primary aim is to avoid the thoughts of the declining market and not
necessarily out-perform the rapidly rising market but to consolidate both the
periods, which would result in out-performing the market along with wealth
creation.
Angel’s investment philosophy is outlined by in-depth focus on a disciplined long
term investment approach in potential multi-baggers.
The 3 important tenets that we look for in any stock are:
Consistent, steady & sustainable returns
Margin of safety
Low volatility
13
PRODUCTS AND SERVICES DETAIL
REPORTS :
Market Outlook at 9:15 a.m. :A crisp pre-market report that arms the client with sensitive
information before the opening bell. Key corporate developments, policy
announcements, geo-political news and views are analyzed for their
impact on the market.
Technical Report at 6:00 p.m. :
This report analyzes trading pattern, historical background, market
positions of key stocks and offers short term (1 to 5 days) as well as
medium term (10 to 20 days) view. Tracking individual scrips as well as
the Sensex and Nifty, its insights cut through the market maze.
Derivative Analysis Report at 9:15 a.m. :
The report provides information on FII activity in derivative
segment, change in open interest put call ratio, cost of carry of stock and
index based derivative products. The derivative analysts use the above
tools to project movements during the next trading sessions.
14
FUNDAMENTAL RESEARCH SERVICES :
The Sunday Weekly Report :
This weekly report is the ace of all reports. It offers a
comprehensive market overview and likely trends in the week ahead. It
also presents few top picks based on an in-depth analysis of technical and
fundamental factors. It gives short term and long term outlook on these
scrips, their price targets and trading strategies. Another unique feature of
this report is that it provides an updated view of about 70 prominent stocks
on an ongoing basis.
The Industry Watch :
This report provides an in-depth analysis of specific industries
which are likely to outperform others in the economy. It analyzes their
strengths and weaknesses and ascertains their future outlook. The final
view is arrived at after thorough interaction with industry experts. Also
comparative performances of various companies in the sector are
evaluated and top picks are recommended.
Stock Analysis :
Angel’s stock research has performed very well over the past few
years and the Angel Model Portfolio has consistently outperformed the
benchmark indices. The fundamentals of select scrips are thoroughly
analyzed and an actionable advice is provided along with investment
rationale for each scrip.
15
Flash News :
Key developments and significant news announcements that are
likely to have an impact on markets / scrips are flashed live on trading
terminals. Flash news keeps the market participants updated on an online
basis and helps them to reshuffle on their holdings
TECHNICAL RESEARCH SERVICE :
Nifty Tracker :
Nifty Futures is the most traded instrument with highest volumes in
F & O and excellent liquidity. The team tracks the Nifty Future and
generates calls based on unique trading system which is a result of their
focused research over the past few years. The objective is to generate
positive returns for traders who are looking for a high risk / high reward
product.
Online Chart :
An online forum to help clients, specifically day traders in judging
the directions of the market and stocks which are in the limelight.
Intraday Calls :
For day traders, Angel provides intra-day calls with entry, exit and
stop loss levels during market hours. These calls are flashed on their
terminals. Their analysts continuously track the calls and provide
recommendations according to the market movements.
Position Calls :
Angel’s “Position Trading Calls” are based on thorough analysis of
the price movement in select scrips. These calls are for a 10-15 day time
span with stop loss and target levels. These calls are flashed on their
terminals during market hours.
16
Derivative Strategies :
Their analysts take view on the Nifty and select stocks based on
the derivatives data and technical tools. Suitable “Derivative Strategies”
are devised, which are flashed on their terminals and published in their
reports.
Futures Calls :
A customized product for HNIs to help them trade with leveraged
position; wherein clients are advised on the stocks with entry, exit and
stop loss level for short term benefits. Over and above this, financial
status of the calls is monitored at all times.
INVESTMENT ADVISORY DESK :
At Angel, they have a dedicated Investment Advisory Desk :
To help manage client’s equity portfolio and create wealth
To help client understand their risk profile and define investment goals realistically
To minimize client’s risk and maximize their returns
To help client decide what to buy / sell and when to buy / sell
To help client’s understand macro-economic trends and sectoral / company developments
To help client restructure their portfolio based on sound research
17
PORTFOLIO MANAGEMENT SERVICES :
Angel offers discretionary PMS to investors in order to assist them in
managing their funds amidst continuous changing market dynamics and
increasing complexities of investing. Investing in equity market requires in-
depth knowledge and thorough analysis coupled with clear understanding of
domestic and international economies. Investors need the services of an
expert to manage their funds and deliver good returns in diverse market
conditions. Continuous wealth creation with and emphasis on capital
preservation is essential in today’s complex markets.
In order to systematically diversify the holdings of clients across varied
sectors and with and intention to give them handsome returns, Angel devised
the concept of the Model Portfolio :
Angel came out with its first Model Portfolio in August 2002
Since then it has come out with Model Portfolios which have
consistently outperformed the Sensex YOY
In fact the latest model portfolio by Angel has successfully
outperformed the Sensex by a whooping 80%
Angel’s Portfolio Advisory Team had a successful track record of
assisting its clients in managing their portfolios for over 4 years.
The Portfolio Management Process starts with understanding each
investor’s risk appetite and return expectations. The Portfolio Management
Team not only draws support from Angel’s in-house research team for new
investment ideas but also has its own stocks picking by adopting bottom up
research.
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Salient features of PMS schemes :
100% discretionary scheme
Time horizon : 12-18 months
Wealth Creation at minimum risk
19
PMS Schemes @ Angel
Scheme 1: Angel OYSTER
Description:
The main objective of the scheme is wealth generation by delivering
superior returns over long term through investments and equity related
instruments.
Investment Strategy:
To generate wealth on consistent basis rather than outperform by
taking higher risk.
Logic works well and thus will be given weight age along with
financials
Early identification of stocks to ride through the entire investment
cycle
Timing of investment is important to generate superior returns
Bottom –up approach
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Parameters Driving Investment Decision:
Blend of growth and value stocks
Investments in companies regardless of market capitalizations
Keen selection of stocks based on potential for value unlocking
based on key events
Focus on companies which display
Scalable business potential
Large market opportunity
Beneficiary of favorable economic cycle
Valuation at steep discount to asset value
Sectoral Composition:
May include under- researched companies
Portfolio could invested in liquid funds
Investor Profile:
Safety of capital will be of utmost importance
The scheme would be suited for investors having medium to long
term perspective (i.e. 12-18 months)
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Scheme 2: Angel BLUE- CHIP
Description:
The objective of the scheme is to generate capital appreciations in the
medium to long term through investments in equities and equity related
instruments comprising predominantly large cap companies.
Investment Strategy:
The scheme will seek to achieve returns through brand based
participants in equity markets by creating a diversified equity
portfolio. The portfolio will be overweight on large cap companies.
The portfolio strives at all time to achieve an 80% allocation to large
cap companies.
The allocation of sectors and stocks in the portfolio may be
dynamically structured in tune with changes in broader market
conditions
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Parameters Driving Investment Decision :
Overweight on large cap stock. However quality mid cap stocks may
also be considered for investment.
Portfolio to comprise of a combination of growth & value stocks.
The portfolio strives to limit the exposure to any sector to less than
25% of the portfolio size
The portfolio strives to limit the exposure to any stock to less than
10% of the portfolio size
The allocation and composition of medium capitalized stocks to vary
based market conditions
Investor Profile:
The scheme would be suited for investors with low to moderate risk
appetite
The scheme would be suited for investors having medium to long
term perspective.
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Benefits of Angel PMS :
Understanding risk : At Angel, utmost emphasis is given to understanding
the risk profile of an investor.
Periodic Evaluation : Periodic evaluation of the Model Portfolio is carried
out and market movements are cashed upon.
Administrative Convenience : Angel focuses on providing hassle free
administrative / operational support and customized services.
Transparency : Regular statements and updates as well as online access
to information required for investment.
Regular Analysis and Monitoring : Investments undergo regular monitoring
and analysis to check any deviation from the structured goal ensuring
creation of wealth over a period of time.
Professional Management : PMS is provided to professional management
by experts on equity with an aim to optimize returns.
Angel PMS – Ideal For :
24
Portfolio Management Services from Angel are essential for investor
who needed
Long term wealth generation
Personalized service
Investment opportunities in Indian equities
Fundamental research based investment decisions
In essence, all investor who have faith and belief in the Indian growth story
and robust corporate performance would find Angel PMS most suitable to
meet their objectives.
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ANGEL GOLD:
In a volatile market it is very difficult for an investor to pick up value stocks
which will give decent returns in the long run. We at Angel Gold realize your need
for a professional financial advisor and hence are here to assist you in making
wise and profitable decisions.
We strongly believe that right decisions taken at the right time are always
beneficial and that's why our entire research team comprising of 12 sector
specialists along with our research head will understand your need, return
expectation, risk profile and time horizon to design your portfolio accordingly.
This portfolio will be tracked regularly and our efforts would be to optimize your
returns in the long run.
Features of the Angel Gold:
A premium service for clients who need professional guidance on long term
investments.
Minimum fund / portfolio of Rs. 1 lac and maximum of Rs. 4 lac eligible for
Angel Gold.
Appropriate risk profiling before taking investment decisions
Periodic group meetings and seminars in branches.
Monthly Newsletter from the desk of “Angel Gold” .
Browser based back-office software.
26
COMMODITIES SERVICES
Agro Tech Speak:
Mainly gives the investors insight into and a forecast for agro
commodities viz. pulses (urad channa etc); reports on oil complex
(soyabean castor etc.) along with spices with reports on kapas guar seed
Call Evaluation:
A report designed for evaluating the calls given by the angel
research team where the reports are classified in 3 broad categories viz.
achieved , triumph, not achieved along with the trade recommendations
Commodities Tech Speak:
This report mainly equips the investors dealing in MCX segment in
commodities like gold, silver, crude oil, copper etc with the market insight
and expert recommendation on the trading strategies
27
Angel Commodity Advantages :
Top Quality Research :
o Professionally qualified analysts with rich industry experience
o Research on 25 agro commodities, precious metals, base metals,
energy products and polymers
e-Broking :
o Single screen customized market watch for MCX / NCDEX with
BSE / NSE
o Streaming quotes and intra day calls
DP Facilities in Commodities Trading on CDSL
24x7 Online Back-office
Efficient Risk Management
Competitive Brokerage Rates
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MUTUAL FUND DISTRIBUTION AND ADVISORY :
To enable clients to diversify their investment in the right direction, Angel
Broking has added another product in its range with mutual funds :
Customized investment solutions based on specific individual’s financial
goals aligned with client’s risk appetite.
Access to in-depth research and proper selection from diversified funds
based on client’s preferred criteria.
Customized reports at desired frequency.
Rating and Rankings of all Mutual Funds from in-house expert analysts.
Current and historical performance of different funds enabling
comparisons.
News and alerts for client’s Mutual Fund Portfolio and performance
tracking with watch lists.
Online Mutual Funds applications (NFO or existing) / Online order status
tracking / Online updation of unit holdings at latest NAV / Online dividend
pay out and re-investment facility.
Single point customer query handling.
29
IPO DISTRIBUTION AND ADVISORY :
Wide network of branches for better customer reach.
Dedicated Research Teams generating sector related reports.
Ease in investing with informed decision making.
Advisory Help Desk for all IPO related queries.
30
ONLINE TRADING :
Specially designed for the net savvy traders and investors who prefer
operating from their home or office through the internet. The investor can
access state of the art Technology with three different e-broking products and
voila trading on BSE, NSE, F & O, MCX and NCDEX.
ONLINE PRODUCTS
ANGEL DIET:
Application based product for Traders.
ANGEL ANYWHERE:
Application based product for Traders with Charts.
ANGELTRADE:
Browser based product for Active Investors.
31
Angel Diet :
o Application based ideal for traders
o User friendly and simple navigation
o Robust and speedier execution of trade
o BSE, NSE, F & O, MCX and NCDEX
32
Angel Trade :
o Browser based for investors
o No installation required
o Advantages of mobility
o Trading as simple as internet surfing
o BSE, NSE, F & O, MCX and NCDEX
33
Angel Anywhere :
o Application based ideal for traders using technical tools
o Intra day / Historical charts with various indicators
o BSE, NSE-Cash & Derivatives
34
DEPOSITORY PARTICIPANT SERVICES :
Angel Broking Ltd. is a DP Service provider through CDSL. They offer
Depository Services to create a seamless transaction platform to execute
trades through Angel Group of Companies and settle these transactions
through Angel Depository Services.
Hassle free automated pay-in of client’s sell obligations by Angel Broking
Ltd. / Angel Capital & Debt Market Ltd.
Instant disbursement of non-cash benefit like bonus and rights
Wide Branch coverage
Personalized / Attentive services of trained and dedicated staff
Centralized billing and Accounting
Acceptance and Execution of instructions on “fax”
“Zero” upfront payment and lowest transaction charges
Daily statement of transactions and holding statements on e-mail
No charges for extra transaction statement and holding statement
All in one combined Monthly “Bill-cum-Transaction-cum-Holding-cum-
Ledger” statement
35
ACHIEVEMENTS OF ANGEL
Major Volume Driver Award for 2004-2005 by BSE
Major Volume Driver Award for 2005-2006 by BSE
36
SWOT ANALYSIS
STRENGTHS:
Understanding the needs of a channel partner and retail investor very well.
Deriving inspiration from their vision of providing the best value for money
to their clients.
Strict adherence to compliance norms.
Timely research based advice to their clients.
50 member research / advisory team comprising of experienced
fundamental and technical analysis, sector specialties, derivative strategist
and commodity analysts
Strong Communication Network.
Good Image and strong back ground.
WEAKNESSES:
High Employee Turnover.
No lifetime facility for Demat A/c
No funding facility
OPPORTUNITIES:
To get into the segment of such investors who are less risky.
Marketing at rural and semi-urban areas.
THREATS:
Increasing number of local players.
Past image of Stock market
37
INDUSTRY DETAIL
THE HISTORY OF THE INDIAN CAPITAL MARKET
The history of Indian capital market back to the 18th century when east India
company securities were traded in the country. Until the end of the 19th century,
Securities trading were unorganized and the main trading centers were Bombay
and Calcutta. Of the to Bombay was the chief trading centre were in bank shares
were the major trading stock
Trading was at that time limited to a dozen brokers their trading place was under
a banyan tree in front of the Town hall Bombay. These stock brokers organized
an informal association in 1875- native shares and stock broker’s association
Bombay. The stock exchanges in Calcutta and ahemedabad also have trading
centre came up later. The Bombay stock exchange was recognized in may 1927
under the Bombay securities contract control act 1925.
The capita market was not well organized and develops during the British rule
because the British government was not interested in the economic growth of the
country. As a result many foreign companies depended on the London capital
market for funds rather then on the Indian Capital Market.
In the post independence period also the size of the capital market remained
small. During the first and the second five year plan the government emphasis
was on the development of the agricultural sector and public sector under
takings.
38
In the 1950s speculation became rampant; the stock market came to the known
as satta bazaar. Despite speculation non payment or defaults were not very
frequent. The government enacted the securities contracts act in 1956 to
regulate stock markets. The company’s act 1956 was also enacted.
In 1960 badla came in to existence. Badla provided a mechanism for carrying
forward positions as well as for borrowing funds. Financial institutions such as
LIC and GIC helped to revive the sentiment by emerging as the most important
group investors. The first Mutual Funds of India, The Unit Trust of India came into
existence in 1964.
.
In the 1970s Badla Trading was resumed under the disguised form of “Hand
delivery contracts” this revived the market. July 6th, 1974 when the Government
promulgated the dividend restriction ordinance, restricting the payment of
dividend by companies to 12 % of the face value or 1/3 of the profits of the
companies that can be distributed as computed under section 369 of the
companies act whichever was lower. This led to a slump in market Capitalization
at the BSE by about 20 % over night and the stock market did not open for nearly
a fortnight. A little known entrepreneur, Dhirubhai Ambani, tapped the Capital
Market. The scrip, Reliance Textiles is Still a Hot favorite trading at all stock
exchanges.
The 1980s witnessed an explosive growth of the securities market in India. The
government’s liberalization process, participation by small investors, speculation,
default, Ban of Badla, and resumption of Badla continued. Convertible
debentures emerged as a popular instrument in primary market.
39
The 1990s will go down as the most important decade in the history of capital
market of India liberalization and globalization were the new terms coined and
marketed during this decade. Major capital market scams took place in the
1990s.
The securities scam of March 1992 involving Brokers as well as Bankers was
one of the biggest scam in the history of capital market. In the subsequent years
owing to free pricing, many unscrupulous promoters, who raised money from
capital market, proved to be fly-by-night operators.
The 1991-92 the Indian stock market witnessed a sea change in terms of
technology. Technology brought Radical changes in the trading mechanism. The
Bombay stock exchange was subject to nation wide competition by two new
stock exchange-National Stock Exchange set up in 1994 and over the counter
Exchange of India set up in 1992. The National securities clearing corporation
and National securities depository limited were set up in April 1995 and
November 1996 respectively for improved clearing and settlement and
dematerialized trading. Moreover, rolling settlement was introduced in January
1998 for all companies.
The Indian capital market entered the 21st century with the Ketan Parekh scam.
As a result of the scam Badla discontinued from July 2001. Trading of futures
commenced from June 2000 and Internet trading was permitted in February
2000.
It has been a long journey for the Indian capital market. Now the capital market is
organized, fairly integrate, mature more global and modernized.
40
The primary function of the system is to provide a link between savings and
investment for the creation of new wealth and to permit portfolio adjustment in
the composition of the existing wealth.
Figure 1 : Concept of Financial System
The progress of savings, finance and investment involves financial institutions,
markets instruments, and services. Above all, supervision control and regulation
are equally significant. Thus financial management is in integer part of the
financial system. On the basis of the empirical evidence we can defined inter
relationship between varied segments of the economy are illustrated below:
Figure 2 : Financial System
INVESTMENT
CAPITAL FORMATIOON
ECONOMIC GROWTH
FINANCESAVINGS
FINANCIAL
MARKET
FINANCIAL
INSTITUTION
FINANCIAL
INSTRUMENTS
FINANCIAL
SERVICES
41
FINANCIAL
SYSTEM
A financial system provides services that are essential in a modern world. The
use of a stable, widely accepted medium of exchange reduces the costs of
transaction. It facilitates trade and, therefore specialization in production.
Financial assets with attractive yield, liquidity and risk characteristics encourage
saving in financial form. By evaluating alternative investments and monitoring the
activities of borrowers, financial intermediaries increase the efficiency of resource
use. Access to a variety of financial instruments enables an economic agent to
pool, prize and exchange risk in the market.
Stock exchange is a market in which securities are bought and sold and it is an
essential component of a develop capital market. The securities contracts
(regulation) act , 1956, defines stock exchange as follows, “ it is an association,
organization or body of individuals, weather incorporated or not , established for
the purpose of assisting, regulating and controlling of business in buying, selling,
and dealing in securities”. A stock exchange, thus, imparting marketability and
liquidity to securities, encourage investments in securities and assist corporate
growth stock exchange is regarded as “an essential concomitant of the capitalist
system of economy. It is indispensable for the proper functioning of corporate
enterprise. It brings together large amounts of capital necessary for the economic
progress of a country. It is the citadel of capital and the pivot of money market. it
provides necessary mobility to capital and directs the flaw of capital into
profitable and successful enterprises .it is the barometer of general economic
progress in a country and exerts a powerful and significant influence as a
depressant or stimulate of business activity I t may be defined as the place or
market where securities of joint stock companies and of government or semi
government bodies are dealt in.”
42
STOCK EXCHANGES
India boasts of the oldest stock exchange in Asia -- the Bombay Stock Exchange
is 125 years old. There are 23 recognised exchanges spread across the country,
but a process of consolidation is now under way. Many of the regional stock
exchanges have started aligning themselves with one or both of the two large
exchanges (the Bombay Stock Exchange and the National Stock Exchange) both
of which have VSAT networks that give them a nation wide reach.
The National Stock Exchange is an unlisted for-profit company set up by some of
the leading financial institutions of India. Most of the remaining stock exchanges
are broker-owned (mutual) organisations, but the Bombay Stock Exchange is
actively considering demutualisation. The Securities and Exchange Board of
India (SEBI), the apex regulator of the capital market has regulations that
mandate a minimum number of outside directors on the governing board and
provide greater autonomy to the professional executives in the day-to-day
running of the exchange.
Trading and settlement
India’s stock exchanges are fully computerised order driven or order-cum-quote
driven systems. The country has made rapid strides towards a dematerialised
trading environment on the basis of a competing depositories model. Investors
have the choice of holding their stocks in physical or dematerialised form, but
trading in the exchanges is in mandatory dematerialised mode in most important
stocks. As of October 2000, about 98per cent of the trading in the stock
exchanges is in dematerialised mode.
India has put in place a regulatory regime for internet trading of stocks. A large
number of online brokers have started operations. More brokers are expected to
follow when the exchanges put in place an ASP (Application Service Provider)
model for online trading software. However, currently, the level of penetration of
online trading is extremely small.
43
The stock exchanges currently run two parallel settlement systems. Practically all
the trading takes place in the account period settlement system in which all
trades during a weekly account period are netted off and the net obligations are
settled five business days after the end of the period. The other unpopular
system is that of rolling settlements where trades of each day are settled on a
T+5 basis. SEBI is currently working on mandatorily shifting all stocks in a
phased manner to the rolling settlement system. Further improvements in the
settlement system to T+3 or beyond would have to wait for improvements in the
payment system.
However, account period settlement does not give rise to significant systemic
risks in India because of stringent end of day and intra-day margining systems.
Put simply, the weekly settlement is regarded as akin to a one-week futures
contract, and the systemic risk is taken care of by using futures style margining.
The exchange imposes daily mark to market and initial margins on the brokers to
eliminate settlement risk. Exchanges also have clearing houses to guarantee
settlements on the exchange. As a result, there have been no settlement failures
in the principal stock exchanges during the last five years
Table 2
Name Address
THE BOMBAY STOCK EXCHANGE
Phiroze Jeejeebhoy
Towers,
Dalal Street,
Mumbai- 400 001.
The Ahmedabad Stock Exchange Association
Ltd,.
Manek Chowk,
Ahmedabad - 380 001
BANGALORE STOCK EXCHANGE LTD,. 'M' Block, First Floor,
Unity Building,
J.C. Road, Bangalore.
44
HUBANESHWAR STOCK EXCHANGE
ASSN., LTD,.
217, Budhraja Building,
Jharpada Cuttack Road,
Bhubaneswar, Orissa - 751
006.
THE CULCUTTA STOCK EXCHANGE
ASSOCIATION LTD,.
7, Lyons Range,
Calcutta - 700 001.
COCHIN STOCK EXCHANGE LTD.,
Veekshanam Road
P.B. 3529, Ernakulam,
Cochi - 682 035.
THE DELHI STOCK EXCHANGE ASSN.
LTD.,
3&4/4B, Asaf Ali Road,
New Delhi 110 002.
THE GAUHATI STOCK EXCHANGE LTD,.
Saraf Building Annexe A.T.
Road,
Guwahati - 781 001.
THE HYDERABAD STOCK EXCHANGE
LTD,.
Bank Street,
Hyderabad - 500 001.
JAIPUR STOCK EXCHANGE LTD,.
Rajasthan Chamber
Bhawan,
M.I. Road,
Jaipur - 302 003.
KANARA STOCK EXCHANGE LTD.
4th Floor,
Rambhavan Complex,
Kodialbail,
Mangalore - 575 003.
THE LUDHIANA STOCK EXCHANGE ASSN.
LTD.
Lajpat Rai Market,
Clock Tower,
45
Ludhiana 141 008.
MADRAS STOCK EXCHNAGE LTD.
'Exchange Building',
Post Box No.183,
11, Second Line Beach,
Chennai - 600 001
MADHYA PRADESH STOCK EXCHANGE
LTD.67, Bada Sarafa,
Indore - 452 002.
THE MAGADH STOCK EXCHANGE LTD.
Bihar Industries Assn.
Premises,
Sinha Library Road,
Patna - 800 001.
PUNE STOCK EXCHANGE LTD.
1177,Budhwar Peth,
Bank of Maharashtra Bldg.,
2nd Floor,
Bajirao Road,
Pune 411 002.
SAURASHTRA KUTCH STOCK EXCHANGE
LTD.,
POPAT BHAI
Rajkot - 380 002.
THE UTTAR PRADESH STOCK EXCHANGE
ASSN. LTD.
Padam Towers,
14/113,Civil Lines,
Kanpur - 208 001
VADODARA STOCK EXCHANGE LTD.
101, Paradise Complex,
Tilak Toad,
Sayaji Gunj,
Vadodara - 390 005.
COIMBATORE STOCK EXCHANGE Chamber Tower,
46
8/732,Avvinashi Road,
Coimbatore 641 018.
MEERUT STOCK EXCHANGE LTD.
Kingsway Building,
345, Bombay Bazar,
Meerut Cantonment - 250
001.
OTC EXCHANGE OF INDIA.
Maker Towers "F" Cuffe
Parade,
Bombay - 400 005.
THE NATIONAL STOCK EXCHANGE OF
INDIA LTD.
Mahindra Towers,
A-Wing, RBC, Worli,
Mumbai 18
47
OVERVIEW ABOUT CENTRAL DEPOSITORY SERVICES (INDIA)
LIMITED (CDSL)
CDSL is the second depository set up by the Bombay Stock Exchange (BSE) in
India. It commenced its operations on March 22, 1999. It was set up BSE and
other co – sponsored with the net worth of Rs. 104 crores. In it, BSE has a 45 %
stake while others have 55 % stake. In the same year it has Five Stock
Exchanges established connectivity with it for offering trade in Demat securities
and 765 companies signed up with it to get their securities admitted for
dematerialization. It has 13 DPs in 91 cities across 168 locations covering 320
cities. Other co – sponsored are as under.
State Bank of India
Bank of India
Bank of Baroda
HDFC Bank
CDSL has also attained membership of the Asia – Pacific Central Securities
Depository Group (ACG). ACG has 22 members including depositories from
Japan, Hong Kong, Singapore, Malaysia, Australia, and New Zealand.
Membership of the organization is expected to help CDSL enhancing its
knowledge base and contributing to the development of other member
organizations in the best international practices, settlement risk management,
cross-border linkage and technological development. This, in turn, would help
CDSL to secure foreign institutional investors’ business through their custodian.
48
Operations Performed by CDSL
Carrying out actually share transactions
To do PSU disinvestments
To provide Centralized system at one e-space
To secure Foreign Institutional Investors’ business
Dematerialization of the Securities
Pledge creation in against the securities
Trading and settlement on day-to-day basis
Work as a custodian of its clients
COMPETITORS DETAILS
49
STOCK HOLDING CORPORATION OF INDIA LIMITED
ICICI direct.com
SHARE KHAN
UTI SECURITIES
MARWADI GROUP
HDFC SECURITIES
KOTAK SECURITIES
KARVY STOCK BROKING LIMITED
RELIANCE MONEY
ANAGRAM SECURITIES
50
SHCIL (STOCK HOLDING CORPORATION OF INDIA LIMITED)
Stock Holding Corporation of India Limited (SHCIL) was promoted by
public financial institutions and insurance majors like IDBI, UTI, ICICI, LIC, GIC
and its subsidiaries, IFCI and IIBI. SHCIL was incorporated as a public limited
company on July 28, 1986.
SHCIL provides depository, post trading, custodial services, securities
lending to institutional investors and retail investors.
Other auxiliary services provided by SHCIL include derivatives clearing,
PF fund accounting, SGL constituent account services, mutual funds and other
capital market instruments distribution.
ICICI direct.com
ICICI Bank is India's second-largest bank with total assets of about
Rs.1,67,659 crores at March 31, 2005 and profit after tax of Rs. 2,005 crores for
the year ended March 31, 2005 (Rs. 1,637 crores in fiscal 2004). ICICI Bank has
a network of about 560 branches and extension counters and over 1,900 ATMs.
ICICI Bank offers a wide range of banking products and financial services to
corporate and retail customers through a variety of delivery channels and through
its specialized subsidiaries and affiliates in the areas of investment banking, life
and non-life insurance, venture capital and asset management.
51
ICICI Bank set up its international banking group in fiscal 2002 to cater to
the cross border needs of clients and leverage on its domestic banking strengths
to offer products internationally. ICICI Bank currently has subsidiaries in the
United Kingdom, Canada and Russia, branches in Singapore and Bahrain and
representative offices in the United States, China, United Arab Emirates,
Bangladesh and South Africa.
SHAREKHAN
Sharekhan is an equities focused organization tracing its lineage to SSKI,
a veteran equities solutions company with over 8 decades of experience in the
Indian stock markets.
In the stock markets. Sharekhan does not claim expertise in too many
things. Sharekhan's expertise lies in stocks and that's what he 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
Sharekhan brings a user- friendly online trading facility, coupled with a
wealth of content that will help investors stalk the right shares.
52
UTI SECURITIES
UTI Bank is a registered member (Depository Participant) of NSDL. India’s
first depository. We can avail all of the depository-related services by just
opening an account with NSDL through UTI Bank.
UTI Bank provides services like dematerialization of shares,
rematerilialization, pledge-Hypothecation, freezing/ locking Of Accounts, transfer
of shares and settlements, receipt of corporate benefits, holdings & transaction
statements on email, tele depository services.
MARWADI SHARES AND FINANCE PRIVATE LIMITED
Marwadi Shares And Finance Pvt. Ltd. Was incorporated in 1992.Marwadi
Group servicing more than 75000 clients, more than 554 pin codes. The
company ranked among top 50 broking houses. It has 250 franchisee / sub-
brokers and authorized person’s network.
53
HDFC SECURITIES
HDFC Securities, a trusted financial service provider promoted by HDFC
Bank and JP Morgan Partners and their associates, is a leading stock broking
company in the country, serving a diverse customer base of institutional and
retail investors.
HDFCsec.com provides investors a robust platform to trade in Equities in
NSE and BSE , and derivatives in NSE. Our website will support you with the
highest standards of service, convenience and hassle-free trading tools.
Our research team tracks the economy, industries and companies to
provide you the latest information and analysis. Our content offers financial
information, analysis, investment guidance, news & views, and is designed to
meet the requirements of everyone from a beginner to a savvy and well-informed
trader.
KOTAK SECURITIES
Kotak Securities, an affiliate of Kotak Mahindra Bank, is the stock-broking
and distribution arm of the Kotak Mahindra Group. The institutional business
division, which brings you AKSESS, primarily covers secondary market broking.
It caters to the needs of foreign and Indian institutional investors in Indian
equities (both local shares and GDRs, Global Depository Receipts). The division
also has a comprehensive research cell with sectorial analysts covering all the
major areas of the Indian economy.
54
The group a net worth of over Rs.1, 550 crores and employs over 3,000
employees in its various businesses. With a presence in 59 cities in India and
offices in New York, London, Dubai and Mauritius, it services a customer base of
over 5, 00,000
Kotak Mahindra has partnerships with Goldman Sachs (one of the world's
largest investment banks and brokerage firms), Ford Credit (one of the world's
largest dedicated automobile financiers) and Old Mutual (a large insurance,
banking and asset management conglomerate).
KARVY STOCKBROKING LIMITED
Karvy offers a full range of financial services and products ranging from Equities
to Research to enhance your wealth and hence achieve your financial goals.
Equities & Derivatives
Comprehensive services for independent investors, active traders & Non-
Resident Indians.
Karvy Research
Premium research on all most all companies updated daily.
Depository Services
Value added services for seamless delivery.
55
RELIANCE MONEY
Reliance Money is an endeavour to change the way India trades in financial
markets and avails of various financial services. Reliance Money ensures
maximum security with a unique security token to keep your online account safe.
ANAGRAM SECURITIES
Anagram Securities is the part of the Rs. 2000 crores Lalbhai Group. It
was found in 1993 and is a member of the National Stock Exchange. Last year
their trading crossed Rs. 17000 crores with around 5000 people making. They
are dealing only in Stock Market and nothing else. Though they are doing good
research work regarding companies and market which will be the beneficial to
the investors. Gujarat state is one of the most important fields of their business.
And they have about 30 branches throughout Gujarat
56
Comparison of charges of Broking Houses :
Table 3
Parameters
Opening Fee Brokerage
Trading A/c Demat A/c Delivery Square Off
ANGEL 100 460 .30 .06SHCIL 100 400 .55 .12ICICI Direct.com NIL 750 .75 .18SHAREKHAN NIL 750 .50 .10UTI SECURITIES NIL 600 NIL NILMARWADI GROUP NIL 125 .50 .10HDFC SECURITIES 399 .50 .15KARVY STOCKBROKING LTD. 100 NIL .30 .05RELIANCE MONEY NIL 750 Rs.12/tradeANAGRAM SECURITIES 100 400 .40 .10
57
REGULATORY ENVIRONMENT DETAILS
LEGISLATION
The four main legislations governing the securities market are:
(a) The Securities Contracts (Regulation) Act, 1956, preventing transactions in
securities by regulating the business of dealing insecurities
(b) The Companies Act, 1956, which is a uniform law relating to companies
throughout India
(c) The SEBI Act, 1992 for the protection of interests of investors and for
promoting development of and regulating the securities market, and
(d) The Depositories Act, 1996 which provides for electronic maintenance and
transfer of ownership of dematerialized securities.
RULES AND REGULATIONS
The Government has framed rules under the SCRA, SEBI Act and the
Depositories Act. SEBI has framed regulations under the SEBI Act and the
depositories Act for registration and regulations of all market intermediaries, for
prevention of unfair trade practices, insider trading, etc. Under these Acts,
Government and SEBI issues notification, guidelines, and circulars which need
to be compiled with the market participants. The self-regulatory organizations
(SROs) like Stock Exchanges have also laid down their rules.
58
REGULATORS
The regulators ensure that the market participants behave in a desired manner
so that the securities market continues to be a major source of finance for
corporate and government and the interest of investors are protected. The
responsibility for regulating the securities markets shared by Department of
Economic Affairs (DEA), Department of Company Affairs (DCA), Reserve Bank
of India (RBI), Securities and Exchange Board of India (SEBI) and Securities
Appellate Tribunal (SAT).
59
OBJECTIVES OF SEBI
The promulgation of the SEBI ordinance in the parliament gave status to SEBI in
1992. According to the preamble of the SEBI, the three main objectives are:
To protect the interests of the investors in securities
To promote the development of securities market
To regulate the securities market
FUNCTIONS OF SEBI
The main functions entrusted with SEBI are:
Regulating the business in stock exchange and any other securities market
Registering and regulating the working of stock brokers, share transfer
agents, bankers to the issue, trustees of trust deed, registrars to an issue,
merchant bankers, underwriters, portfolio managers, investment advisers and
such other intermediaries who may be associated with securities market in
any manner.
Registering and regulating the working of collective investment schemes
including mutual funds
Promoting and regulating self-regulatory organizations
Prohibiting fraudulent and unfair trade practices in the securities market
Promoting investors education and training of intermediaries in securities
market
Prohibiting insiders trading in securities
Regulating substantial acquisition of shares and take over of companies
Calling for information, undertaking inspection, conducting enquiries and
audits of the stock exchanges, intermediaries and self-regulatory
organizations in the securities market.
60
REGISTRATION OF INTERMEDIARIES
The intermediaries with securities market shall buy, sell or deal in securities after
obtaining the registration from SEBI, as required by section 12:
1. Stock-broker
2. Sub-broker
3. Share transfer agent
4. Banker to an issue
5. Trustee of the trust deed
6. Registrar to an issue
7. Merchant banker
8. Underwriter
9. Portfolio manger
10. Investment advisor
11.Depository
12.Depository participant
13.Custodian of securities
14.Foreign institutional investor
15.Credit rating agency
16.Collective investment schemes
17.Venture capital funds
18.Mutual funds
19.Any other intermediary associated with the securities market
61
MARKETING DEPARTMENT STUDY
PRODUCT & SERVICE DETAILS AND PORTFOLIO
REPORTS :
Market Outlook at 9:15 a.m.
Technical Report at 6:00 p.m.
Derivative Analysis Report at 9:15 a.m.
FUNDAMENTAL RESEARCH SERVICES :
The Sunday Weekly Report
The Industry Watch
Stock Analysis
Flash News
TECHNICAL RESEARCH SERVICE :
Nifty Tracker
Online Chart
Intraday Calls
Position Calls
Derivative Strategies
Futures Calls
INVESTMENT ADVISORY DESK
62
PORTFOLIO MANAGEMENT SERVICES
PMS Schemes @ Angel
Scheme 1: Angel OYSTER
Scheme 2: Angel BLUE- CHIP
ANGEL GOLD
COMMODITIES SERVICES
Agro Tech Speak
Call Evaluation
Commodities Tech Speak
MUTUAL FUND DISTRIBUTION AND ADVISORY
IPO DISTRIBUTION AND ADVISORY
ONLINE TRADING
ANGEL DIET
ANGEL ANYWHERE
ANGEL TRADE
DEPOSITORY PARTICIPANT SERVICES
The details of the products and services has been mentioned in the products
detail section of company profile.
63
5 PS FOR ANGEL PRODUCTS :
1. Product – Features of Angel Products
2. Positioning – USP, Product Segment, Target Customers
3. Packaging – Marketing Material, Client Benefits
4. Placement – Distribution Channel, Marketing Strategies
5. Promotion – Activities to be carried out
1. PRODUCT - Features of Angel Products
A premium service for clients who needs professional guidance on
short and long term investments.
Brokerage of 0.06p. for intra day and 0.30p. for delivery based trading.
50% sharing of brokerage in case of Sub-broker’s clients.
AMC – Rs. 300.
Shares can be kept in Angel pool or can be transferred to the
respective DP accounts.
Intimation regarding transaction will be given to clients by evening of
the day of transaction.
Profits can be redeemed or re-investing based on client’s wish.
64
Existing client account can be used for Angel Products. Clients can do
there own transactions in the same account as well.
Periodic meetings will be held in the branches
2. POSITIONING
Angel Products are positioned as an equity investment option for all
those investors who aims for realistic return from equity as an asset
class.
It is for the investors who wishes to seek professional advice for their
investments.
Unique selling Preposition (USP)
A strong team of 11 sector specific analysts headed by Research
director guiding the investments.
A low cost solution for investing.
Product Segment
Angel Products are for the people who fall in middle class – higher
middle class section of the society.
People who are not risk averse and can understand the return benefits
vis-à-vis calculated risk taken.
People who are new entrant to the equity markets.
65
Target Customers
Young professionals.
Middle aged professionals considering traditional ways of investing i.e.
FDs, PPF, gold, bonds, etc.
Small scale businessmen who are not risk averse and will understand
the importance of reasonable returns.
Retired people who have taken hefty VRS or has savings of which 20-
25% can be invested in equities.
3. PACKAGING
A Client of Angel Product will be regularly updated about the stocks
and there performance by Advisory department.
Monthly newsletter will be issued by the Desk and Regular meetings
also will be conducted at the branches.
A marketing kit will have Angel Products broacher, performance report
FAQs, Consent letter and KYC forms.
4. PLACEMENT
Distribution Channel
Bright marketing persons should be used for this product. Product
Training along with some investment ideas will be provided to
personnel
66
Existing B2C as well as B2B channels can be explored.
Proper data mining and segmentation should be the basis of marketing
Marketing Strategies
The primary marketing strategy for all products is low brokerage
charges. Low cost is the basis for attracting the customers.
Another marketing strategy is the corporate scheme of Angel which
does not charge any fees for opening trading account if there are more
than 10 persons opening account in a group.
5. PROMOTION
Fundamental workshops to be conducted at the branch on weekends.
Promotional activities such as stalls and exhibitions to be held at select
housing colonies, clubs and companies.
Free SMS service. Here a client will receive our fundamental calls free
of cost for a limited period.
Distribution of Angel Pamphlets to target customers
Attracting the customers through Canopy marketing
Promotional activities are also carried out through Investor Camp
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INNOVATIVE PRACTICE EMPLOYED
68
OPERATIONS DEPARTMENT STUDY
COMPANY LOCATION
The location problem is an important strategic level decision making for an
organization. The selection of location is a key decision as large investment is
made. It is not advisable or sometimes not possible to change the location very
often. So an improper location may lead to waste of all the investments. The
location of the company is based on company’s expansion plan and policy,
changing market conditions. At present the company is situated at “Indraprasth
Complex – 228-229, Jamnagar”. In order to find a good location the company
followed three stages :
First stage – selection of a region: this refers to the selection of a particular
geographical zone taking into consideration such factors as nearness to market.
Second stage- selection of a community: this refers to the selection of the
specific locality within the region. The factors that influence the selection of
community are community attitude and service facilities.
Third stage- selection of specific site: this refers to the selection of specific site
within the community. The factors that influence the site location are the cost of
the land, availability and suitability of the land.
The factors that the Company considered while selecting location are :
Infrastructure facilities
Availability of power
Community attitude
Municipal and other Civil amenities
69
LAYOUT
Layout refers to physical arrangement of facilities. It is the configuration of
departments, work centers, etc.
The primary goal of layout is to maximize the profit by arrangement of all facilities
to the best advantage.
The Company has divisions such as :
Branch Manager’s Cabin
Conference Room
Trading Rooms
Back Office
Risk Management Desk
KYC (Know Your Client) Desk
IT Division
The Branch Manager’s Cabin and the Conference Room are near to each other
so that conference can be held immediately when required.
The two Trading Rooms are placed together so that any problem during the
trading sessions can be handled easily.
The Back Office, Risk Management Desk and KYC Desk are placed in a line so
that they can communicate whenever required and the queries of the customer
can be solved.
The IT Division is kept separately with server and all the necessary connections.
70
PLANNING AND CONTROLLING
Planning is useful for effective utilization of resources, to achieve organization
goal and objectives with respect to quality service, cost control and timely
service. Other objective is to co-ordinate with other departments to ensure
continuous quality service.
There is proper planning of how various activities would be carried out like
opening of account, dealing while trading sessions, issuing contract notes, etc.
There is also co-ordination among various divisions like back office, Risk
Management Desk, KYC Desk, etc so that proper service can be provided to
customers.
71
MAINTENANCE
Maintenance of facilities in good working condition is essential to achieve desired
levels. If the company ignores the maintenance than they have to pay heavy
price for that.
The Company has designed the Quality Assurance Policy which maintains the
service of the Company as per the desire level of the customer.
The Quality Assurance Policy helps the Company to fulfill the expectations of the
customers and retain them.
72
73
PROCUREMENT
As Angel Broking is the Service Sector Industry, so procurement of computer
machinery and other useful stationery such as stamp, papers, files and other
stationery useful for form filling is done.
Procurement of computer machinery and other stationery is done through local
distributors.
STORAGE
There are various cupboards for various files like contract notes cupboard,
account opening forms cupboard, sub brokers files cupboard and general
stationary cupboards are kept for easy availability of files and stationery
whenever required.
74
FINANCE DEPARTMENT STUDY
As the Company being Pvt. Ltd. Company, has denied to part the financial
information, so I am unable to provide the financial data.
75
HUMAN RESOURCE DEPARTMENT STUDY
Human resource management policies are vital for organizations who are serious
about resolving personnel issues and finding HR solutions. Absolute HR
solutions provides clients with professional human resource advice, human
resource policy solutions and job description writing and evaluation services.
Human Resource Management serves these key functions :
1. Hiring (Recruitment)
2. Compensation
3. Evaluation and Management (of Performance)
4. Promotions
5. Managing Relations
6. Planning
It is the responsibility of human resource managers to conduct these activities in
an effective, legal, fair and consistent manner.
The objective of Human Resource is to maximize the return on investment from
the organization’s human capital.
“Human Resource Management aims to improve the productive contribution of
individuals while simultaneously attempting to attain other societal and individual
employee objectives.” Schwind, Das and Wagar (2005)
76
RECRUITMENT
Angel takes pride in appointing dynamic individuals who would share their vision
and philosophy of 'providing the best value to all our customers. They believe
that a professional, determined and focused approach towards the task at hand
would enable all their aspirants to learn, groom and grow with them. They offer
the perfect blend of stimulus in the form of an attractive compensation package
and a stimulating work environment.
Prospective candidates being appointed will serve a probationary period of three
months. Staff appointed as trainees will be confirmed in the services, on
completion of the required training period subject to his / her performance being
satisfactory during the training period. Confirmation will be formalized only when
a confirmation letter is issued to the trainee. If considered necessary, training
period will be liable to be extended / terminated.
During the probation period employee may terminate his/her employment,
without stating any reasons, by giving one week’s notice of termination.
Employees wanting to terminate their employment, at any time after successfully
serving the probationary period, will have to give one month’s notice of
termination, stating the reasons for termination in writing.
77
The new joinee will be attending a two day Induction Programme in order to
acquaint him/her with the Angel World (Its People, Culture, Business Processes,
Products & services & New Initiatives)
INDUCTION
This program is for new members entering the organization. As new joinees, they
find themselves thrown into a new environment and a confused state This is a
very important program which helps the new member to get familiarized with
them with Angel's Vision, Business Philosophy, values, work culture, Products &
Services, Important Business Processes, Policies & Procedures etc.
TRAINING
Angel has undertaken a campaign to strengthen the staff’s Customer
Relationship Management skills across the organization, by planning highly
interactive training sessions with the aim provide effective services to the clients.
The programs will be conducted by the HR team with assistance from an
outsourced Trainer & will be held at the in house training centre at Akruti. The
training programs will have sessions like; Effective Customer Service Skills,
Effective Business Communication, Telephone Etiquette, E-Mail Etiquette, Time
Management, Interpersonal Skills, Effective Selling Skills, Handling Customer
Complaints effectively. etc.
78
They expect serious commitment and participation from the staff members for all
the training initiatives. These people development programmes are an integral
part of the performance appraisal process and those excelling in these programs
can look forward to be suitably rewarded.
e-Learning
They have initiated e-Learning for making training more accessible through video
conferences & through their Employee portal. e-learning also makes the transfer
of knowledge more effective & consistent. Along with a host of other training
programs, their Induction program too is to be delivered across Angelites through
our e-learning platform.
DEVELOPMENT
“Do not ask what will happen if we train people and they leave? Instead ask what
will happen if we do not train people and they stay on.” - Zig Ziegler
As they are steadily moving up in the Customer Value Chain by providing Advice
Based Broking & becoming a Knowledge Leader in the Retail Broking Business,
they encourage all Angelites to upgrade their knowledge about the Dealing and
advisory Process by obtaining NCFM Certifications. Apart from this they also
have advanced training modules in core functional areas such as marketing /
sales, corporate services, research & advisory etc. which help in creating a
career path for Angelites.
They believe in offering careers & not jobs, hence they recruit fresh graduates /
post-graduates. They develop their skills & competencies which helps them
create a niche for themselves & achieve professional development.
79
PERFORMANCE APPRAISAL SYSTEM
At ANGEL, increments will be based only on annual appraisals and will be strictly
bench marked with the relative importance of the role and specific contributions
of each employee. Annual Appraisal’s are reviewed twice in a year i.e. in July
and December. New employees who have at least completed 9 months of
service (6 months of confirmed service) by July or December will be eligible for
an annual increment, depending on their performance & contribution to the
company.
The Performance Management System
Links employees’ performance to the Corporate Goals through well
Defined Key Performance Areas (KPAs) & measurable targets, reviewed
every quarter.
Focuses on defining & rating all Managers on Key Competencies relevant
for our business.
Ensures an objective Performance Appraisal of employees through a
meaningful dialogue with them about their performance and decide on
measures to improve their contribution and rewards.
Identifies key strengths of employees & builds a Training-cum-Career
Development Plan for them.
Provides opportunity for senior employees to make a Self Appraisal of
their performance based on their KPAs and Targets, thereby minimizing
areas of differences.
80
Aligns the compensation of each employee with his performance &
successful com pletion of NCFM modules related to their job profiles
Downward revisions in compensation are also possible
Performance Related Rewards (PRR) / Bonus
The company pays bonus or Performance Linked Incentives to deserving
employees who have contributed more than their defined performance
standards & targets. The company plans to progressively increase the
variable pay component in the compensation structure to ensure greater
accountability and performance orientation.
SUCCESSION
The 'star' Angelites are change leader and helps in acting as catalysts in
driving the process improvement programs across various functional areas
and profit centers through their Management Development Program. These
change leaders (*Angel Managers) play an active role in strengthening the
professional managerial team by benefiting from this knowledge sharing
initiative.
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PRACTICES FOLLOWED BY ANGEL
Payroll Procedure
The salaries of all employees will be directly credited by the 30th or 31st of
each month, to their individual corporate salary accounts maintained with
HDFC Bank Limited. Employees who have newly joined will be given one
months time period within which they are required to open a corporate salary
account with HDFC. The account opening form will be given along with the
appointment letter. Proof of address & photo identity and only one passport
sized photograph is required for opening the corporate salary account. In
case any employee is staying in rental premises, he/she may give the office
address as the mailing address. Salaries of new employees will be delayed,
incase accounts have not been opened even after a month of joining.
Working Hours and Attendance
1. Working Hours : Working hours are from 9:30 a.m. to 6.30 p.m. from
Monday to Saturday with a 30 minutes lunch break between 1.00 to
3.00 p.m. However the employee may be required to work such hours
as may be necessary to carry out the duties to the satisfaction of the
Company. If employee is required to work in shifts, then shift schedule
would be made available to the employee by the department head and
the same should be informed to HR in CSO for recording the same
schedule in the HRMS – Harmony.
82
2. Attendance : They have introduced Harmony to facilitate their Central
Support Office and all branches with online attendance. Attendance is
mapped for Angelites when they log into harmony homepage
(http://harmony.angeltrade.com). All Angelites are required to login to
Harmony at least twice , once on arrival and once on departure from
office. Employees on Branch/client visits may put up an online
application for OD Official Outdoor duty through Leave under Their
Angelite Profile link available on their homepage. The same gets
recorded in the online attendance after HODs approval. One passport
sized photograph will be required by the HRD for scanning the same to
put it up on their harmony homepage. Branches may maintain a
muster till all angelites regularly log in to harmony.
3. Working on Holidays : There would be a compensatory off for
working on a holiday or on a Sunday provided the employee has been
asked by his/her HOD to work on a holiday or a Sunday, the
employees will need to apply for WW (Work permit on weekly OFF)
from Leave under Their Angelite Profile link . The said employee/s and
may claim a compensatory off for a leave taken during the same month
by applying for CO from Leave under My Angelite Profile link . On
approval of HOD the CO will be set off against the WW applied for in
the same month.
83
Dress Code
The code has to be adhered to on all working days between Monday and Friday.
Common code for Men and Women
One is expected to portray an efficient, sober, sophisticated and business-like
image, in line with the corporate image of the Company. Proper cleanliness and
hygienic standards should be followed especially body odour, bad breath, long
nails and un-groomed hair.
Code for men
A formal full sleeved shirt, appropriate trouser and a tie for important
external meetings.
One is expected to be clean-shaven every day.
All accessories like briefcase, spectacles, pen, handkerchief etc. should
be business-like and should match with the dress code.
Appropriate shoes (with socks), which are well polished.
Code for women
A salwaar kameez or western formal dress, or a sari that suits the office
environment
The colour of the dress should be sober and businesses-like and should
not “be loud”.
One is expected to wear appropriate make-up, which goes with the dress
code.
Wearing of excessive jewellery and accessories should be avoided.
84
Remuneration, Compensation and Benefit
Compensation Philosophy
ANGEL strives to have a competitive and fair compensation policy aligned with
its HR philosophy of meritocracy and Pay for Performance
1. Fixed Salary : The Company offers a fixed salary and benefits package to
employees based on the nature of their job and expected contribution
towards achievement of corporate goals. The Fixed compensation
structure will normally be reviewed once every year.
2. PF : All employees are governed by the Employees Provident Fund and
Miscellaneous Provisions Act, 1952.
3. Requisite deductions : Requisite deductions structure per month will be:
Profession Tax on Salaries
Table 4
Upto Rs.2,000 - Nil -
Rs.2,000/- to Rs.2,500/- Rs.30/-
Rs.2,501/- to Rs.3,500/- Rs.60/-
Rs.3,501/- to Rs.5,000/- Rs.120/-
Rs.5,001/- to Rs.10,000/- Rs.175/-
Rs.10,001 onwards Rs.200/-
(Rs.300/- in the month of February)
Employees’ Contribution towards Provident Fund contribution
85
12 % of the Basic salary of each employee
Employee State Insurance contribution
1.75% of gross earning for each employee drawing gross earning of
Rs.10000/- pm and below
Income Tax on Salaries
Employees falling under the Tax net i.e. whose Gross Salary + Bonus
exceeds Rs.75,000/- per annum, have to give a self declaration in the month
of April each year to the Company stating the amount and type of investments
that he intends to make during the year. On the basis of the declaration given
by the employee, Income Tax on his/her salary will be deducted as
applicable. During the year he/she has to give supporting documents for his
investments made, e.g. L.I.C. premium receipts, or for any deduction claims
e.g. Rent receipts etc. The employee has the option to give in the requisite
documents at the end of each month or latest by the 15th of February each
year. Any investments made by the employee after 15th of February each
year will not be considered for his/her personal tax saving purpose by the
Company. An exception can be made only in case if any due dates for
payments of premiums etc. are actually falling after 15th of February.
Compensation paid by the Company to its employees is a strictly confidential
matter and no one is expected to discuss it with their colleagues or outsiders.
Any breach of this confidence will be viewed seriously by the Management,
warranting disciplinary action including suspension from service.
4. Mobile Phone : The Company shall pay a fixed allowance for expenses
incurred by an employee in the Sales Team within the prescribed limits as
86
sanctioned by the concerned HOD. For Non-Sales staff this facility would
be made available only on a need basis on sanction by the HOD and the
Head HR.
Personal Loans and Advances against Salaries
Personal Loans :
All employees who have completed 1 year of continuous service with the
organisation are eligible to avail personal loans from the Company only in case of
dire need of finance.
Loans availed by the employees during year will have to be repaid within 10
installments and the same will be deducted from the salary each month. The loan
can be availed only if any previous loan taken is repaid wholly.
Loans shall be provided at the absolute discretion of the Management and will be
decided on a case to case basis depending on the urgency, need and criticality
of the subject.
Advances:
Advance is generally given once in 4 months against one months’ salary after
requisite deductions. The entire amount given as advance will be adjusted
against the next months’ salary.
Transfer
87
The Company may transfer any employee at it’s discretion to any of it’s
departments, functions, Regional or Branch Offices anywhere in India.
Termination of employment
During the probation period, the Company can terminate the employee with one
week notice or payment in lieu of the notice. Termination of confirmed employees
will require two months notice. The Company can, at its absolute discretion,
terminate any confirmed employee without assigning any reason whatsoever,
after giving him one months notice. If in any case the Company gives insufficient
notice, salary in lieu of the lesser period of notice will be paid to the employee.
The company reserves the right to hold employees termination incase of
unearned loans. No leave will be allowed during notice period without a Director’s
approval.
The Company reserves the right to terminate the employment without notice or
payment in lieu of notice, should the employee be guilty of misdemeanor,
misconduct, negligence, medical disability, irregular attendance and / or frequent
absence & disobedience of orders of the Superior. If the employee takes outside
employment (with or without remuneration) without permission of the Company,
he will be liable to immediate dismissal.
FACILITIES GIVEN BY THE COMPANY TO THE EMPLOYEES
1. Angel Allure (e-Newsletter) : The internal newsletter Angel Allure will be
uploaded on Harmony homepage 5th of every month . This e-newsletter is
a medium for sharing new initiatives & developments within the
organization. It also serves as a platform to enable the employee to share
their thoughts / experiences by way of articles / stories. The best article
would be reproduced in this newsletter alongwith the winners photogragh
and acknowledgement to his contribution in Allure.
88
Through this medium, important communications/issues would also be
actively addressed. The employee may e-mail thei0000r articles to post-
[email protected] or [email protected] by the 25th of
each month.
2. Visiting Cards : It will be given to employees on a need basis with the
approval of the department / functional head. An internal mail has to be
forwarded to the Administration Department.
3. e-mail Addresses : Each employee will be provided with his or her e-mail
address for internal as well as external communication.
4. Harmony Employee id : Each employee will be provided a unique
employee id and password for logging into Harmony for Attendance and
maintaining Angelite profile on HRIS- Harmony.
5. First Aid Box : A First Aid Box is maintained at the Reception.
6. Canteen Facility : Canteen facility is available at the CSO (Akruti &
Acme) Mumbai , serving lunch at a subsidized cost. Employees availing of
the subsidized lunch facility are required to sign a register maintained at
the canteen & will have to pay their monthly food bill dues to the
Administrations department. In order to attend to customers, not all
employees within departments will go for lunch at the same time.
89
All employees should adhere to the lunch timings. Employees carrying
their own edibles should only consume it in the canteen and no other
place. No edibles will be allowed at individual work stations, excepting
offices where canteen facilities or a separate room for lunch is not
provided. In such cases ensure that the tables are left clean and tidy after
consumption of food.
7. Administrative Requirement : Administrative requirement such as
phone, stationery, computer etc. would be taken care of by the Admin
Department before hand, but in case of additional requirement for
stationery / computer hardware the employees can send their requirement
through a “Requisition Form” to the Admin Department after getting it
approved from their department head.
8. Smoke Free Office : ANGEL encourages healthy atmosphere for
employees and smoking is strictly prohibited in all areas inside the office
premises, including toilets, pantry, corridors, conference rooms etc.
Similarly consumption of tobacco, alcoholic beverages or any other
intoxicants is strictly prohibited on the premises of the Company. Visitors
on the premises are also required to observe this rule and their hosts will
ensure compliance.
9. PF Transfer : For transfer of PF accumulation from their previous
employer, they are required to fill Form -13. This form should be filled up
in duplicate and submitted to the HR department.
90
It is not possible for ANGEL to follow-up with RPFC or the Trusts of
previous employers for the transfer. Once Forms are forwarded by
ANGEL, it may be in individual interest to see that the follow up is done.
10.Housekeeping Guidelines : All are advised to follow these guidelines to
make the office a pleasant place to work in
Keep the workstation, desk and surrounding area clean and in proper
condition.
While leaving at the end of the day, keep all newspapers, files, books,
folders, papers, stationery etc. in the drawers. Cleaners have been
instructed to dispose off papers lying on the table.
Keep your storage space properly locked & ensure that one key is kept
with Admin dept.
Please ensure that visitors and guests are met in the meeting room. They
should not be allowed to enter the dealing room / other area.
Please talk softly on the phone or otherwise, so that it does not distract
others.
Please use self-service for drinking of water, tea, filing, photocopying etc.
Please use office equipment like PCs, Projectors, ACs etc. carefully and
inform Admin Dept in case of any malfunctioning.
Employees making use of the Meeting / Conference Rooms and included
facilities, for meetings with visitors/clients are required to ensure that after
the meeting is over all lights / AC / Computer / OHP switches are put off.
91
LATEST PRACTICES
'Six Sigma Way of life at Angel'
In order to strengthen the “Quality Assurance Drive the Management” at Angel is
strongly committed to improve processes through use of Six Sigma
Methodologies. The Six Sigma way of life throughout Angel is driven by a team of
2 Black Belts and 15 Green Belts certified on Six Sigma & 33 Yellow Belts. All of
the Senior Managers and Star performers are leading Six Sigma projects in their
functional areas to improve processes.
92
RESEARCH
INTRODUCTION :
This research has been conducted to find out the present and the future scenario
of e-Broking.
In the past, investors had no option but to contact their broker to get real time
access to market data. But now with the concept of e-Broking, it is possible to
get real time data online without the need of contacting broker. In e-Broking
system, the software is directly made available to the end-user and he/she can
access real time data immediately.
RESEARCH OBJECTIVE :
There must be an objective behind any research. Without objective there is no
meaning of research.
The purpose of research is to discover answers to questions through the
application of scientific procedures. The main aim of research is to find out the
truth which is hidden and which has not been discovered yet. As each research
has some or the other objectives the following are the objectives of this research:
The primary objective is to find the present and the future scenario of
e-Broking.
To find the awareness of online trading
To find the feature of online trading which can convert the offline
traders to online trading.
To identify potential customers
93
RESEARCH METHODOLOGY
RESEARCH DESIGN :
For any researcher the research methodology is the most important criteria to
decide before the actual research process starts. There are many methods for
conducting the research some of them are as under:
The design of a research is a plan or a model that helps researcher to conduct a
formal investigation and survey. It is an application of methods and procedures
for acquiring the information needs for getting a desire out come. It decides the
sources of data and methods for gathering data. A good design insures that the
information obtained is relevant to the research question and that it was collected
by objectives. Since, research design is simply the frame work or plan for a
study. It is a blue print that of a house devised by an architect. My approach to
research is descriptive and quite specific.
Out of various research methods the research method, which was most suitable
to my research, was Exploratory Research because it provides me all the
opportunities to cover the all the aspect that I require to conduct the research and
get an appropriate out come.
SAMPLING DESIGN :
The Sampling Design taken here is Non-Probability Convenience based
Sampling.
94
DATA COLLECTION :
The task of data collection begins after a research problem has been defined and
research design/plan chalked out. While designing about the method of data
collection to be used for the study, the researcher should keep in mind two types
of data.
There are 2 sources of data i.e.
1) Primary Data:
The data, which are collected for the first time, directly from the
respondents to the base of knowledge & belief of the research, are called
primary data.
The normal procedure is to interview some people individually or in a group to
get a sense of how people feel about the topic.
So far as this research is concerned, primary data is the main source of
information. The data collected is through questionnaire & information
provided by the respondent.
2) Secondary Data:
When data are collected & compiled in a published nature, it is called
secondary data. So far as this research is concerned Internet and the
Company brochures and pamphlets have been referred to.
95
Sampling Process :
It is true that it’s very difficult to do the research with the whole universe. As we
know that it is not feasible to go for population survey because of the numerous
customers and their scattered location. So for this purpose sample size has to be
determined well in advance and selection of sample also must be scientific so
that it represents the whole universe.
So far as this research is concerned, due to time constraint the sample size
taken is of 55 respondents of Jamnagar city.
Mode of data collection :
Personal visit & filling up of the questionnaire, with little bit of observation.
Table 1
Taking in to consideration that the research instrument selected by me was the
questionnaire because it gives more flexibility in terms of collection of the data
and one has a chance to meet the responder personally and have an idea of
getting an important unknown data that can be collected through their behavior.
Sample Universe Jamnagar city
Type of Sampling Non Probability Convenience
based Sampling
Sample size 55 respondents
Research Instrument A structured formatted
questionnaire
96
DATA ANALYSIS AND FINDINGS
There are lots of players in the market including number of broker and sub
brokers in the market. In this technological era each player in this industry takes
the maximum benefit of technical aspects by means of e-broking i.e. e-trading.
The study may not include the sub brokers as for the sake of convenience; I
restricted my survey taking into consideration their Name, Fame & also the
products and services they give to their customers such as trading on phone, low
brokerage, low trade charges, the funding facilities, the deposit ratios etc… This
survey is especially focused on the awareness about the e-broking and its
present and future in the potential market.
For any researcher it is important that how one has analyzed his or her data in
way that it can be clearly interpreted by him and the proper results can be
derived.
97
The following are the findings from this research
Which mode of trading alternative do you use ?
□ Online Trading □ Offline Trading
Table 2
Online Trading No.
Users 9
Non Users 46
Users16%
Non Users84%
Users
Non Users
Graph 1
The above graph shows the users and non users of online trading. The users of
online trading are very less compared to that of offline traders. Among 55
respondents only 9 respondents use online trading and the rest use offline
trading. This shows that the concept of e-Broking is not so prevalent in the
market. People still prefer to use the traditional offline method of trading.
98
FOR USERS OF ONLINE TRADING :
Age : □ 21-35 □ 36-50 □ 51-65 □ Above 66
Table 3
Age No.
21 – 35 7
36 – 50 1
51 – 65 1
Above 66 0
78%
11%11% 0%
21 - 35
36 - 50
51 - 65
Above 66
Graph 2
The Sampling technique was Random sampling so; there is no fixed number of
respondents for the specific age group. The above graph indicates the age group
of the people using online trading. It can be noted that among the 55
respondents, 7 users fall in the age group of 21-35, 1 user fall in the age group of
36-50 and 1 user fall under the age group of 51-65.
99
Occupation :
□ Profession □ Businessman □ Govt. Servant
□ Employee □ Others __________
Table 4
Occupation No.
Profession 0
Businessman 3
Govt. Servant 1
Employee 2
Others 3
0%34%
11%22%
33%
Profession
Businessman
Govt. Servant
Employee
Others
Graph 3
The above graph shows the occupation of the persons using online trading. The
highest no. of users fall under the category of businessman. This shows that
persons having their business can trade easily through online trading as they can
trade whenever they are free or whenever they wish to trade. The category of
others include mostly students.
100
Yearly Income :
□ Less than 1 lac □ 1 to 2 lacs □ 2 to 3.5 lacs
□ 3.5 to 5 lacs □ 5 lacs or more
Table 5
Income No.
Less than 1 lac 4
1 – 2 lac 3
2 – 3.5 lac 0
3.5 – 5 lac 2
5 or more lac 0
45%
33%
0%
22% 0% Less than 1 lac
1 - 2 lac
2 - 3.5 lac
3.5 - 5 lac
5 lac or more
Graph 4
The above graph shows the income range of the users of online trading. More of
them fall under the category of less than Rs. 1 lac. There are almost no users
that fall in the income range of Rs. 5 lac or more. It can be interpreted that
persons in the income range of Rs. 5 lac or more have less time to trade or look
after the markets themselves. So even if they invest, they usually prefer offline
trading.
101
In which Stock Broking House do you prefer to invest ?
□ Angel □ Marwadi □ Share Khan
□ Indiabulls □ ICICI □ India Infoline
□ Others __________
Table 6
Broking House No.
Angel 1
Marwadi 0
Sharekhan 0
India-bulls 1
ICICI 0
India Infoline 2
Others 5
11%11%
22%56%
Angel
Indiabulls
IndiaInfo
Others
Graph 5
The above graph shows the various broking houses from where the user prefers
to invest or rather whose software and tips they use. It shows that only 11% of
users of e-Broking prefers to invest from Angel Broking.
102
This shows that Angel has more market area to cover by its unique features.
The Broking House that fall under the others category are Reliance Money,
Anagram, etc. This shows the strong position of competitors in the market and
the scope for Angel to expand its business.
103
Which features of e-Broking you like the most ?
□ Instant Online Fund Transfer with Multiple Banks
□ BSE, NSE, F & O, MCX and NCDEX in a single screen
□ No installation required
□ Advantages of mobility
□ Intra day / Historical charts with various indicators
Table 7
Features No.
F1-Instant Online fund transfer with
Multiple Banks
3
F2-BSE, NSE, F & O, MCX and
NCDEX in a single screen
3
F3-No installation required 0
F4-Advantages of mobility 2
F5-Intra day / Historical charts with
various indicators
1
34%
33%0%
22%
11% F1
F2
F3
F4
F5
Graph 6
104
The above graph shows the features of online trading liked by its users. I have
taken here five features of online trading among which the features of Instant
Online Fund Transfer with Multiple Banks and BSE, NSE, F & O, MCX and
NCDEX on a single screen are liked by the users of online trading. This shows
that offline traders can be converted to online trading with the help of these
features as the feature of Online Fund Transfer saves time and the feature of all
exchanges on a single screen will create the interest of those who wish to trade
in equity as well as commodity.
105
FOR NON USERS OF ONLINE TRADING :
Age : □ 21-35 □ 36-50 □ 51-65 □ Above 66
Table 8
Age No.
21 – 35 34
36 – 50 8
51 – 65 4
Above 66 0
74%
17%9% 0% 21 - 35
36 - 50
51 - 65
Above 66
Graph 7
The above graph shows that how many persons falling under a specific age
group do not use online trading. It was found that out of 46 respondents,
maximum no. of persons fall under the age category of 21-35. Also in the case
of users of online trading, the maximum no. of users fall under the age category
of 21-35. This shows that youngsters are more risk takers than aged people.
106
Occupation :
□ Profession □ Businessman □ Govt. Servant
□ Employee □ Others __________
Table 9
Occupation No.
Profession 4
Businessman 16
Govt. Servant 7
Employee 7
Others 12
9%
35%
15%15%
26%Profession
Businessman
Govt. Servant
Employee
Others
Graph 8
The above graph shows the no. of persons falling under different occupation
category not using online trading. It is found that maximum no. of persons fall
under the category of businessman as in the case of users of online trading.
This shows that businessman are more interested in stock market.
Yearly Income :
107
□ Less than 1 lac □ 1 to 2 lacs □ 2 to 3.5 lacs
□ 3.5 to 5 lacs □ 5 lacs or more
Table 10
Income No.
Less than 1 lac 21
1 – 2 lac 15
2 – 3.5 lac 8
3.5 – 5 lac 1
5 or more lac 1
46%
33%
17%
2%
2%
Less than 1 lac
1 - 2 lac
2 - 3.5 lac
3.5 - 5 lac
5 or more lac
Graph 9
The above graph shows the income range of persons not using online trading.
Here also more no. of persons fall under the category of income of less than Rs.
1 lac as in the case of users of online trading. This shows that persons falling
under the category of income of less than Rs. 1 lac are more interested in stock
market.
In which Stock Broking House do you prefer to invest ?
□ Angel □ Marwadi □ Share Khan
108
□ Indiabulls □ ICICI □ India Infoline
□ Others __________
Table 11
Broking House No.
Angel 11
Marwadi 10
Sharekhan 7
Indiabulls 2
ICICI 1
IndiaInfo 4
Others 11
24%
22%15%
4%
2%
9%
24%
Angel
Marwadi
Sharekhan
Indiabulls
ICICI
IndiaInfo
Others
Graph 10
The above graph shows the various broking houses from where people not using
online trading prefer to invest. More no. of users prefer to invest from Angel
109
Broking House. The others category include Reliance Money, Anagram, etc.
This shows that Angel Broking has more no. of offline traders than online traders.
It can be interpreted that Angel has more scope of potential customers for online
trading compared to offline trading.
110
CONCLUSIONS
1. From the research carried out, it can be concluded that presently the concept
of e-Broking is not prevalent in the market. Still the traditional method of
offline trading is preferred by the people. As it is a new concept, it will take
time for people to change their mode of trading.
2. If properly marketed, the concept of e-Broking can be penetrated in the minds
of people. For this the benefits of e-Broking should be conveyed to those
who are not aware of it. Training should be given regarding the use of
software. People should be educated regarding the easiness of trading while
using online trading.
3. The users of online trading are mostly businessman. Other persons falling in
the category of employee, govt. servants or professionals are either not
aware or are not mentally prepared for using e-Broking concept. Such people
can be made aware about the benefits of e-Broking and it uses should be
properly conveyed so that people become ready to use this concept.
4. The two features i.e. Online Transfer of Funds through Multiple Banks and
BSE, NSE, F & O, MCX and NCDEX on a single screen are liked more
compared to other features by the users of e-Broking. These two features
can be emphasized to convert offline traders to online traders.
5. The potential customer for Angel Broking House consist of professionals,
employees and govt. servants because these persons are either not investing
or investing through other broking houses. The persons investing from other
broking houses can be converted to the customers of Angel Broking by
conveying its unique features and the low brokerage cost and the rest can be
educated about stock market.
111
LIMITATIONS OF THE STUDY
The limitations of this study are as follows:
Personal Bias:
Some respondents may have had personal bias due to which they may not
have given the correct information and due to which the right conclusion may
not have been derived at.
Area:
The area was limited only to Jamnagar city. The result may have varied, if it
was conducted somewhere else.
Sample Size:
The Sample size taken is only 55 due to time constraint; which may not result
in very accurate results.
Time Limit:
The time limit taken for conducting the research was very less which could
also be one of the limitations of the study.
112
RECOMMENDATIONS
To make the concept of e-Broking powerful, the Company must educate the
people regarding the benefits of e-Broking.
The Company can give training to the customers regarding e-Broking and
keep seminars for the customers.
A person having sound knowledge about using the software can be appointed
to solve the queries of customers.
The benefits of e-Broking must be marketed properly in order to make people
use e-Broking. Through this the Company can increase the awareness of e-
Broking.
The features of online trading can be used by the Company to convert offline
traders to online traders.
The potential customer can be identified by knowing the competitor’s
customer and they can be conveyed to trade with Angel Broking by conveying
the unique features and low brokerage provided by the Company.
113
APPENDIX
QUESTIONNAIRE :
Hello Sir / Madam
This survey aims to find out the present and the future scenario of e-Broking in
stock market. This survey is carried out purely for the academic purpose. It will
remain highly confidential.
Hope you would spend your valuable time in going through the questionnaire and
filling it up. Your kind contribution is heartily acknowledged.
In anticipation,
Thanking you for your cooperation,
( Charmy Kotecha )
1) Are you aware about stock market ?
□ Yes □ No
2) Do you invest ?
□ Yes □ No
3) If yes, then in which alternative do you invest ?
□ Gold □ Real Estate □ Stock Market
□ Mutual Fund □ Bank FD □ RBI Bonds
□ NSC etc… □ Others _______
4) Among the investment alternatives do you believe that Share
Market is one of the best options to invest in ?
□ Yes □ No
114
5) In which Stock Broking House do you prefer to invest ?
□ Angel □ Marwadi □ Share Khan
□ Indiabulls □ ICICI □ India Infoline
□ Others __________
6) Which mode of trading alternative do you use ?
□ Online Trading □ Offline Trading
7) Are you aware about e-Broking ?
□ Yes □ No
8) If yes, then which features of e-Broking you like the most ?
□ Instant Online Fund Transfer with Multiple Banks
□ BSE, NSE, F & O, MCX and NCDEX in a single screen
□ No installation required
□ Advantages of mobility
□ Intra day / Historical charts with various indicators
9) Is there any disadvantage of e-Broking ?
□ Yes □ No
10)If yes, then specify that
_____________________________________________________
_____________________________________________________
11)Give your comments on future scenario of e-Broking
_____________________________________________________
_____________________________________________________
_____________________________________________________
115
PERSONAL DETAILS :
1) Name : _______________________________________________
2) Age : □ 21-35 □ 36-50 □ 51-65 □ Above 66
3) Occupation :
□ Profession □ Businessman □ Govt. Servant
□ Employee □ Others __________
4) Yearly Income :
□ Less than 1 lac □ 1 to 2 lacs □ 2 to 3.5 lacs
□ 3.5 to 5 lacs □ 5 lacs or more
5) Address and Phone No. : _________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Thank you for you kind cooperation
116
LIST OF FIGURES :
SERIAL NO.
FIGURE NO.
DETAILS PAGE NO.
1. 1 Concept of Financial System 412. 2 Financial System 41
LIST OF TABLES :
SERIAL NO.
TABLE NO.
DETAILS PAGE NO.
1. 1 Angel Group of Companies 62. 2 List of Stock Exchanges 443. 3 Comparison of charges of Broking Houses 574. 4 Profession Tax on Salaries 855. 1 Mode of Data Collection 966. 2 No. of Users and Non Users of e-Broking 987. 3 The age of the people using e-Broking
Service99
8. 4 The occupation of the people using e-Broking Service
100
9. 5 The yearly income of the people using e-Broking Service
101
10. 6 The Broking House from where people using e-Broking Service prefer to invest
102
11. 7 The features liked by people using e-Broking Service
104
12. 8 The age of the people not using e-Broking Service
106
13. 9 The occupation of the people not using e-Broking Service
107
14. 10 The yearly income of the people not using e-Broking Service
108
15. 11 The Broking House from where people not using e-Broking Service prefer to invest
109
117
LIST OF GRAPHS:
SERIAL NO.
GRAPH NO.
DETAILS PAGE NO.
1. 1 Users and Non Users of e-Broking 982. 2 The age of the people using e-Broking
Service99
3. 3 The occupation of the people using e-Broking Service
100
4. 4 The yearly income of the people using e-Broking Service
101
5. 5 The Broking House from where people using e-Broking Service prefer to invest
102
6. 6 The features liked by people using e-Broking Service
104
7. 7 The age of the people not using e-Broking Service
106
8. 8 The occupation of the people not using e-Broking Service
107
9. 9 The yearly income of the people not using e-Broking Service
108
10. 10 The Broking House from where people not using e-Broking Service prefer to invest
109
118
BIBLIOGRAPHY
BOOKS :
Ashwathappa K., Human Resource and Personnel Management,
Fourth Edition, 2005, Tata McGraw-Hill Publishing Company Ltd., New
Delhi
Chunavala & Patel, Production and Operations Management, Fifth
Edition, 2003, Himalaya Publishing House, Mumbai
Kotler Philip, Marketing Management, Eleventh Edition, 2002,
Prentice-Hall of India, New Delhi
Telsang Martand, Industrial Engineering and Production Management,
Second Edition, 2002, S. Chand & Co. Ltd.New Delhi
Angel Brochures and Pamphlets
WEBSITES :
www.angelbroking,com
www.angeltrade.com
www.harmony.angeltrade.com
www.nseindia.com
www.bse.com
www.sebi.gov.in
119