FINAL REPORT on of SHAREKHAN SECURITIES LTD. CHANDIGARH
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A STUDY ON EQUITY MARKET FINAL REPORT On “ANALYSIS OF EQUITY MARKET” OF SHAREKHAN SECURITIES LTD. CHANDIGARH. SUBMITTED TO PUNJAB TECHNICAL UNIVERSITY IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF MASTERS OF BUSINESS ADMINISTRATION SUBMITTED BY:- PARVAIZ AHMAD WANI MBA 4th ROLL NO:- DR.I.T.IMT(INSTITUTE OF MANAGEMENT AND TECHNOLOGY) BANUR. ICFAI NATIONAL COLLEGE SUMMER INTERNSHIP PROJECT 1 A STUDY ON EQUITY MARKET DR.SUNANDA MITRA GOSH. FACULTY GUIDE CERTIFICATE This is to certify to that Project Report Entitled “To study the equity market in detail and the various kinds of client services provided by financial companies. This project report submitted in fulfillment of the requirements for “MASTERS IN BUSINESS ADMINISTRATION” is an original research work carried out by me under the guidance and supervision of our faculty guide and this work or any part of it has not been previously submitted for the MBA. SUBMITTED BY: PARVAIZ AHMAD WANI MBA 4th ROLL NO.:- DR.SUNANDA MITRA GOSH FACULTY GUIDE ICFAI NATIONAL COLLEGE SUMMER INTERNSHIP PROJECT 2 A STUDY ON EQUITY MARKET ACKNOWLEDGEMENTS I express my sincerest gratitude and thanks to honorable, Mr. Sameer Kaila (Branch Head), Under his brilliant untiring guidance I could complete the project being undertaken on the “To study the equity market in detail & the client services provided by share khan and its competitor companies along with the satisfaction level of the existing clients of sharekhan” successfully in time. His meticulous attention and invaluable suggestions have helped me in simplifying the problem involved in the work. I would also like to thank the overwhelming support of all the people who gave me an opportunity to learn and gain knowledge about the various aspects of the industry. I am indebted to all staff members of SHAREKHAN for their valuable support and cooperation during the entire tenure of this project. Not to forget, the faculty members of DR.I.T.IMT who have kept my spirits surging and helped me in delivering my best and made me reach up to this platform. Lastly, no words are enough to express my heartiest gratitude to my parents whose blessings are inspiration in the foundation of my work. PARVAIZ AHMAD ICFAI NATIONAL COLLEGE SUMMER INTERNSHIP PROJECT 3 A STUDY ON EQUITY MARKET DECLARATION I, hereby state this project report submitted by me in partial fulfillment of requirements of the MBA in an original research work carried out by me under the guidance and supervision of my faculty guide and this work or any part of it has not been previously submitted for a degree of MBA. PARVAIZ AHMAD WANI PLACE: --------------- ICFAI NATIONAL COLLEGE SUMMER INTERNSHIP PROJECT 4 A STUDY ON EQUITY MARKET DATE: ----------------- TABLE OF CONTENTS CONTENTS PART A PROJECT REPORT Chapter 1 : Company Profile 1.1 History 1.2 Profile 1.3 Management Chapter 2 : Introduction 2.1 Objectives 2.2 Limitations Chapter 3 : Industry Profile 3.1 History 3.2 What is a Stock market ? Its purpose & function 3.3 Securities. 3.4 Trading in India 3.5 Regulator of stock market 3.6 SEBI & its role ICFAI NATIONAL COLLEGE SUMMER INTERNSHIP PROJECT 5 A STUDY ON EQUITY MARKET 3.7 Primary market & its role 3.8 Secondary market – function 3.9 Primary vs Secondary market 3.10 Stock Exchange 3.11 Depository & dematerialization 3.12 NSE / BSE Chapter 4 : Data Analysis A) Religare Securities Ltd. B) Sharekhan C) ICICI DIRECT D) Geojit Financial Services E) India Bulls Chapter 5 : Comparative Conclusions Chapter 6 : References Chapter 7 : Annexure 7.1 Questionnaire for existing clients of Religare. PART B On The Job Training ICFAI NATIONAL COLLEGE SUMMER INTERNSHIP PROJECT 6 A STUDY ON EQUITY MARKET LIST OF GRAPHS S.NO. GRAPH TITLE PAGE NO. 1 Frequency of trading 63 2 Online vs offline trading 64 3 Account opening charges 66 4 Intraday brokerage 67 5 Delivery brokerage 68 6 Minimum balance in trading account 69 7 Account access charges 70 8 Exposure limits 71 9 Annual maintenance charges 72 10 Satisfaction level of clients on diff. parameters 75 - 77 11 Overall satisfaction level of clients 78 12 Additional features required in online share trading 79 ICFAI NATIONAL COLLEGE SUMMER INTERNSHIP PROJECT 7 A STUDY ON EQUITY MARKET CHAPTER I Introduction • Objectives • Limitations • Methodology ICFAI NATIONAL COLLEGE SUMMER INTERNSHIP PROJECT 8 A STUDY ON EQUITY MARKET OBJECTIVES • To study the various features of equity market. • To study the criterion of different companies for opening d-mat & trading accounts. • To study all kinds of financial services provided by Religare to its clients. • To make a comparative analysis of the client services of different companies. • To study the satisfaction level of the existing clients of Religare. METHODOLOGY The objective of the present study can be accomplished by conducting a systematic market research. Market research is the systematic design, collection, analysis and reporting of data and findings that are relevant to different marketing situations facing the company. The marketing research process that is adopted in the present study consists of the following stages: a. Defining the problem and the research objective : The research objective states what information is needed to solve the problem. The objective of the research is to derive the opinion of the clients of the Religare and use that to improve the satisfaction level of the clients of Religare. And also to obtain information from other competitor companies regarding their client services. b. Developing the research plan : ICFAI NATIONAL COLLEGE SUMMER INTERNSHIP PROJECT 9 A STUDY ON EQUITY MARKET Once the problem is identified, the next step is to prepare a plan for getting the information needed for the research. The present study adopted the exploratory approach wherein there was a need to gather large amount of information before making a conclusion. c. C ollection and Sources of data : Market research requires two kinds of data, i.e., primary data and secondary data. Being a firm in the financial industry, data gathering here involved usage of both primary and secondary data though there was an extensive usage of primary data. Well-structured questionnaires were prepared for the clients. There were personal interview surveys for collecting information regarding other competitor companies. The questionnaires contained close-ended questions, wherein the main objective was to get an insight into how people measure the things. Secondary data was collected from various books and web sites. SAMPLING PLAN: Sampling Units: The respondents were the EXISTING CLIENTS of RELIGARE. Sample Size: Survey was conducted for 100 respondents. The the respondents were asked to fill questionnaires about their opinion on the services provided by Religare. c. Analyze the collected information : This involves converting raw data into useful information. It involves tabulation of data, using statistical measures. d. Report research findings : ICFAI NATIONAL COLLEGE SUMMER INTERNSHIP PROJECT 10 A STUDY ON EQUITY MARKET This phase marks the culmination of the marketing research effort. The report with the research findings is a formal written document. the research findings and personal experience was used to propose recommendations to develop the services of Religare & develop a better image. CHAPTER II Industry Profile ICFAI NATIONAL COLLEGE SUMMER INTERNSHIP PROJECT 11 A STUDY ON EQUITY MARKET …….AN INTRODUCTION • In India previous days Offline investors did trading. In offline trading investor had to go to broker’s place either by telephonic call or physically presence and no one had that much time to go to someone place, paper work also etc. So, Online came into picture. Online share trading has proved a boon for the investors. • Online share trading means any one can purchase and sell shares from anywhere in world through Internet. The online offered different benefits to retail investors:- – Transparency means paperwork diminishes significantly and no more painful trips to your broker to check if everything is in order. – Access means online trading had made it possible to universalize access to investors by sitting anywhere in world. – Efficiency means latest financial happening like live quote, suggestion directly on your screen during access timing. • As there are hurdles in every progress or technological advancement. The three main technology obstacles which have prevented Internet brooking from taking off are :- – Lack of Internet penetration – Bandwidth infrastructure – Poor quality of infrastructure. ICFAI NATIONAL COLLEGE SUMMER INTERNSHIP PROJECT 12 A STUDY ON EQUITY MARKET HISTORY OF EQUITY MARKET Market-oriented economic reforms in India began in 1991. With the removal of Administrative controls on bank credit and the primary market for securities, the capital markets came to occupy a larger role in shaping resource allocation in the country. This led to a heightened interest amongst policy makers in the institutional development of securities markets. The efforts towards empowering the securities market regulator (SEBI), and the first efforts towards attracting foreign portfolio investment began early in the reforms process. Almost immediately after the reforms began, there was a prominent scandal on the fixed income and equity markets, which was exposed in April 1992. This set the stage for an unusual policy intervention: the establishment of a securities exchange, the National Stock Exchange (NSE), by the government Contrary to most expectations, NSE succeeded, becoming the largest equity market in 1995. NSE pioneered many important innovations in market design in India. The most important of these included nationwide electronic trading (1994), the clearing corporation as a central counterparty (1996) and paperless settlement at the depository (1996). NSE ICFAI NATIONAL COLLEGE SUMMER INTERNSHIP PROJECT 13 A STUDY ON EQUITY MARKET was a pioneer amongst securities exchanges in the world in using a “demutualised” structure, where brokerage firms did not own the exchange. The demutualised structure helped in keeping NSE focused on the needs of investors as opposed to the profit maximization of brokerage firms.