A SUMMER TRAINING REPORT ON

“Comparative Analysis of and other Stock Broker House” At SHARE KHAN PVT.LTD.

In partial fulfillment for the degree of Master of Business Administration (Session 2012-2014)

Submitted to “RANCHI UNIVERSITY, RANCHI”

UNDER THE GUIDANCE OF : Submitted by:

Mr. RAVI VERMA NAME - AJAY KUAR MAHTO

(ASST. MANAGER) R0LL NO – 12MBA01020

Share khan Ltd. SPECIALIZATION- MARKETING MANAGEMENT

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

MANAGAMENT, RANCHI.

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DECLARATION

I hereby declare that this project work titled “COMPARATIVE ANALYSIS OF SHARE BROKER AT SHAREKHAN PVT. LTD” is a record of Original work done by me under the guidance of MR. RAVI VERMA and that this project work has not formed the basis for the award of any Degree/Diploma/Associate ship/Fellowship or similar title to any candidate of any University.

Name:-AJAY KUMAR MAHTO

SPECIALIZATION:-MBA

(MARKETING)

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ROLL NO: - 12MBA01020

PLACE- RANCHI

ACKNOWLEDGEMENT

A project report is never the sole product of a person whose name appears on the cover. I deem it a time bound privilege and function to dedicate this page of mine to helping hands for their cooperation & guidance that enabled me to dedicate time and effort in framing analysis in conceivable system.

I would like to take this opportunity to thanks and acknowledge my deep sense of gratitude to MR. RAVI VERMA, Assistant manager of SHAREKHAN LTD. for his guidance and pain taking supervision during course of my project work. His valuable advice, constructive criticism and suggestion for assigning my study really helping me out in the project. I also thanks him for providing full facilities required in submitting our report within a limited time span.

I also wish to place on record my gratitude to my faculty guide, col. S.K. Sinha and to my mentor Mrs. K.K. Banerjee whose keen interest, timely and constant encouragement and generous cooperation gave me confidence and strength to progress this report. I would be failing my duty if I don’t mention my friends and classmates who helped me at various moments during my project

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SUBMITED BY:-

AJAY KUMAR MAHTO

EXECUTIVE SUMMARY

There is growing competition between brokerage firms in post reform . For investor it is always difficult to decide which brokerage firm to choose. Research was carried out to find which brokerage house people prefer and to figure out what people prefer while investing in stock market.

This study suggests that people are reluctant while investing in stock and commodity market due to lack of knowledge.

Main purpose of investment is returns and liquidity, commodity market is less preferred by investors due to lack of awareness. The major findings of this study are that people are interested to invest in stock market but they lack knowledge.

4 Through this report we were also able to understand, what are our Company’s (Share khan Ltd). Positive and strong points, on the basis of which we come to know what, can be the basis of pitching to a potential client.

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

TABLE OF CONTENT

Chapter 1: Introduction ……………………………………………………………………….7-18

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

Chapter 2: Company profile………………………………………………………….…… 19-32

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

5  SWOT Analysis……………………..………………………………….31-32

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

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

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

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

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

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

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

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

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

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

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

7 CHAPTER-1

INTRODUCTION

In most industrialized countries, a substantial part of financial wealth is not managed directly by savers, but through a financial intermediary, which implies the existence of an agency contract between the investor (the principal) and a broker or portfolio manager (the agent). Therefore, delegated brokerage management is arguably one of the most important agency relationships intervening in the economy, with a possible impact on financial market and economic developments at a macro level.

In most of the metros, people like to put their money in stock options instead of dumping it in the bank-lockers. Now, this trend pick pace in small but fast developing cities like Delhi, Chandigarh, Gorgon, etc. My research is based on the residents of Delhi and its nearby areas.

As the per-capita-income of the city is on the higher side, so it is quite obvious that they want to invest their money in profitable ventures. On the other hand, a number of brokerage houses make sure the hassle free investment in stocks. Asset management firms allow investors to estimate both the expected risks and returns, as measured statistically. There are mainly two types of Portfolio management strategies.

1. Passive Portfolio Strategy 2. Active Portfolio Strategy

1. Passive Portfolio Strategy: A strategy that involves minimal expectation input, and instead relies on diversification to match the performance of some market index. A passive strategy assumes that the marketplace will reflect all available information in the price paid for securities. 2. Active Portfolio Strategy: A strategy that uses available information and forecasting techniques to seek a better performance than a portfolio that is simply diversified broadly.

8 BACKGROUND OF STOCK EXCHANGE IN INDIA

The emergence of stock market can be traced back to 1830. In Bombay, business passed in the shares of banks like the commercial bank, the chartered mercantile bank, the chartered bank, the oriental bank and the old and shares of cotton presses. In Calcutta, Englishman reported the quotations of 4%, 5%, and 6% loans of East India Company as well as the shares of the bank of Bengal in 1836. This list was a further broadened in 1839 when the Calcutta newspaper printed the quotations of banks like union bank and Agra bank. It also quoted the prices of business ventures like the Bengal bonded warehouse, the Docking Company and the storm tug company.

Between 1840 and 1850, only half a dozen brokers existed for the limited business. But during the share mania of 1860-65, the number of brokers increased considerably. By 1860, the number of brokers was about 60 and during the exciting period of the American Civil war, their number increased to about 200 to 250. The end of American Civil war brought disillusionment and many failures and the brokers decreased in number and prosperity. It was in those troublesome times between 1868 and 1875 that brokers organized an informal association and finally as recited in the Indenture constituting the “Articles of Association of the Exchange”. On or about 9th day of July,1875, a few native brokers doing brokerage business in shares and stocks resolved upon forming in Bombay an association for protecting the character, status and interest of native share and stock brokers and providing a hall or building for the use of the members of such association.

9 As a meeting held in the broker’ Hall on the 5th day of February, 1887, it was resolved to execute a formal deal of association and to constitute the first managing committee and to appoint the first trustees. Accordingly, the Articles of Association of the Exchange and the Stock Exchange was formally established in Bombay on 3rd day of December, 1887. The Association is now known as “The Stock Exchange

The entrance fee for new member was Re.1 and there were 318 members on the list, when the exchange was constituted. The numbers of members increased to 333 in 1896, 362 in 1916and 478 in 1920 and the entrance fee was raised to Rs.5 in 1877, Rs.1000 in 1896, Rs.2500 in 1916 and Rs. 48,000 in 1920. At present there are 23 recognized stock exchanges with about 6000 stock brokers. Organization structure of stock exchange varies.

14 stock exchanges are organized as public limited companies, 6 as companies limited by guarantee and 3 are non-profit voluntary organization. Of the total of 23, only 9 stock exchanges have been permanent recognition. Others have to seek recognition on annual basis.

These exchange do not work of its own, rather, these are run by some persons and with the help of some persons and institution. All these are down as functionaries on stock exchange. These are

1. Stockbrokers 2. sub-broker 3. market makers 4. Portfolio consultants etc.

1.) Stockbrokers

10 Stock brokers are the members of stock exchanges. These are the persons who buy, sell or deal in securities. A certificate of registration from SEBI is mandatory to act as a broker. SEBI can impose certain conditions while granting the certificate of registrations. It is obligatory for the person to abide by the rules, regulations and the buy-law. Stock brokers are commission broker, floor broker, arbitrageur etc.

Detail of registered brokers

Total no. of registered Total no. of sub-brokers as brokers as on on 31.03.2008 31.03.2008

9000 24,000

2.) Sub-broker

A sub-broker acts as agent of stock broker. He is not a member of a stock exchange. He assists the investors in buying, selling or dealing in securities through stockbroker. The broker and sub-broker should enter into an agreement in which obligations of both should be specified. Sub-broker must be registered SEBI for a dealing in securities. For getting registered with SEBI, he must fulfill certain rules and regulation.

3.) Market Makers

Market maker is a designated specialist in the specified securities. They make both bid and offer at the same time. A market maker has to abide by bye-laws, rules regulations of the concerned stock exchange. He is exempt from the margin requirements. As per the listing requirements, a company where the paid-up capital is Rs. 3 crore but not more than Rs. 5 crore and having a commercial operation for less than 2 years should appoint a market maker at the time of issue of securities.

4.) Portfolio consultants

11 A combination of securities such as stocks, bonds and money market instruments is collectively called as portfolio. Whereas the portfolio consultants are the persons, firms or companies who advise, direct or undertake the management or administration of securities or funds on behalf of their clients.

Partial fulfillment for degree of M.B.A. programmed, we received the opportunity from Share khan Ltd. for our summer training project report. It is basically stock brokering company which deals in security and derivative market, Commodity market, mutual funds and Insurance etc.

INTRODUCTION OF STOCK MARKET

Before getting familiar with share market, the first and foremost things we should know is to know are the basic of share market.

1. WHAT IS SHARES?

A Share or stock is a document issued by a company which entitles its holder to be one of the owners of the company. A share is directly issued by a company through IPO or can be purchased from the stock market. By owning a share you can earn a portion of the company's profit called dividend.

Also, by buying and selling the shares you get capital gain. So, your return is the dividend the capital gain. However, you also run a risk of making a capital loss if you have sold the share at a price below your buying price.

2. WHAT ARE STOCK MARKETS?

12 Stock Market is an organized set-up with a regulatory body and the members who trade in shares are registered with the stock market and regulatory body SEBI.

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

Thus, the shares listed in the (BSE) will be different from those in the (DSE), because a company may not want to be listed in a particular stock exchange or may not fit the eligibility requirements of the particular exchange.

The stock market is also called the secondary market as it involves trading between two investors.

 Primary markets

The primary markets is that part of the capital markets that deals with the issuance of new securities are bought by way of the public issue directly from the company.

 Secondary markets

The secondary marking is the financial market for trading of securities that have already been issued in an initial private or public offering. In the secondary market, securities are sold by and transferred from one investor or speculator to another.

3. WHAT IS A STOCK EXCHANGE?

A stock exchange, share market or bourse is a corporation or mutual organization which provides facilities for stock brokers and traders, to trade company stock and other securities.

13 The Bombay stock exchange limited or BSE has a nation-wide reach with a presence in 417 cities and towns of India. Its index or market indicator is known as the sensex.

The S&P CNX NIFTY or simply NIFTY is the leading for large companies on the National Stock Exchange of India. It consists of 50 companies representing 24 sectors of the economy, and representing approximately 47% of the traded value of all stocks on the National Stock Exchange of India.

4. WHO IS A BROKER?

A stockbroker is person who is licensed to trade in share in shares. Broker also have direct access to the share market and can act as your agent in share transactions. For this service they charge a fee. They can also offer additional serves like advice on debentures, government bonds and listed property trusts and non-listed investment options (cash management trusts, property and equity trusts.

5. WHAT IS ADEMAT A/C?

Investor who wish to trade in the market need to have a dematerialized, or de-mat account. In India, the government has mandated two entities-

14 National Securities Depository, or NSDL and Central Depository Services (India), or CDSL –to be the custodian of dematerialized securities.

6. BUYING AND SELLING OF DEMARTERIALISED SECURITIE

 What is the procedure for selling dematerialized securities?

The procedure for selling dematerialized securities is very simple. After you have sold the securities, you would instruct your DP to debit your account with the number of securities sold by you and credit your broker’s clearing account. This delivery instruction has to be given to your DP using the delivery instruction slips given to you by your DP at the time of opening the account.

 How can I purchase dematerialized securities?

For receiving de-mat securities you may give a one-time standing instruction to your DP. This standing instruction can be given at the time of account opening or later, alternatively, you may choose to give separate receipt instruction every time some securities are to be received.

7. HOW TO RECEIVE INCOME FROM SHARE?

We invest in share to make money- either through a share’s capital growth, i.e the amount by which the share price increase in value over time, or through the dividend it pays to its share holders. Dividends are payments made by companies to share holders from their profits.

8. HOW TO MAKE INVESTMENT DECISIONS?

The stock market has, perhaps, the most exciting investment opportunities for the investor community. At the same time, it could be unnerving and scary. In fact, equity investment has always remained a big challenge, not only for retail but institutional investors too.

15 In short, investing in equities can be a difficult proposition for retail investors. However, equity must from a part of every investor’s age, monetary requirement, risk appetite etc.

To cope with volatility, it is important to have a disciplined and systematic approach to equity investment. Set your own rules and more importantly, follow them religiously, indeed, the mantra for successful equity investment is a well thought-out, disciplined investment and decisions based on company fundamental are essential ingredients for successful investment.

SECURITIES AVAILABLE FOR TRADING

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

1. Share o Equity share o Preference share

16 2. Debentures o Partly convertible debentures o Fully convertible debentures o Non convertible debentures o Warrants/coupons/secured premium notes/other hybrid o Bonds

3. Units of mutual funds o open ended o close ended

STOCK EXACHAGE

The stock exchange in India, under the overall supervision of the regulatory authority, the securities and exchange Broad of India (SEBI), provide a trading platform, where buyers and sellers can meet to transact in securities.

ROLE OF STOCK EXCHANGE

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

VARIOUS EXCHANGE IN INDIA

17  Ahmadabad Stock Exchange  Bangalore Stock Exchange  Bombay Stock Exchange   Delhi Stock Exchange Association   Inter-connected stock exchange of India  association  Mumbai stock exchange  National stock exchange of India (NSE)  OTC exchange of India

SOME FOREIGN STOCK EXCHANGE

 NASDAQ  HANG SANG  S&P 500  DOWJONES

Leading stock exchange in India

NATIONAL STOCK EXCHANGE

 NSE, promoted by leading financial institution, was incorporated in 1992 as a corporate entity  Trading in equity and debt market commenced in 1994.  It’s largest exchange in the country in terms of trading volumes.  The stock exchange, Mumbai, popularly known as “BSE” was established in 1875 as the “Native Share and Stock Brokers Association”.

NIFTY

18  Nifty is an indicator of all the major companies of NSE.  The Nifty index is a composite of the top 50stocks listed on the National stock exchange. It is a simplified tool which helps investors & ordinary people alike, understand what happen in the stock market by extension, the economy.

BOMBAY EXCHANGE STOCK

 The BSE or Bombay stock exchange sensitive  Index is a value weighted index.  It consists of the 30largest and most actively traded stocks, representative of various sectors, on the BSE.  These companies account for around one fifth of the market capitalization of the BSE.

SENEX

 Sensex is an index, an index is basically indicator. It gives you a general idea about whether most of the stock share gone up or most of the stocks have gone down. The sensex is an indicator of all the prices of the major companies of the BSE(Bombay stock exchange)

MARKETING TIMINGS

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

19 The market timing of the equities segment is:-

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

After market close, NSE and BSE both have introduction

CHAPTER-2

INTRODUCTION OF THE COMPANY

Share khan is one of the leading retail brokerage of City Venture which is running successfully since 1922 in the country. Earlier it was the retail broking arm of the Mumbai-based SSKI Group, which has over eight decades of experience in the stock broking business. Share khan offers its customers a wide range of equity related services including trade execution on BSE, NSE, Derivatives, depository services, online trading, investment advice etc.

Earlier with a legacy of more than 80 years in the stock markets, the SSKI group ventured into institutional broking and corporate finance 18 years ago. SSKI is one of the leading players in institutional broking and corporate finance activities. SSKI holds a sizeable portion of the market in each of these segments. SSKI’s institutional broking arm accounts for 7% of the market for Foreign Institutional portfolio investment and 5% of all Domestic Institutional portfolio investment in the country. It has 60 institutional clients spread over India, Far East, UK and US. Foreign Institutional Investors generate about 65% of the organization’s revenue, with a daily turnover of over US$ 2 million.

20 The content-rich and research oriented portal has stood out among its contemporaries because of its steadfast dedication to offering customers best-of-breed technology and superior market information. The objective has been to let customers make informed decisions and to simplify the process of investing in stocks.

VISION

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

MISSION To educate and empower the individual investor to make better investment decisions through quality advice and superior service. WORK STRUCTURE OF SHAREKHAN

Share khan has always believed in investing in technology to build its business. The company has used some of the best-known names in the IT industry, like Sun Microsystems, Oracle, Microsoft, Cambridge Technologies, Nexgenix, Vignette, VeriSign Financial Technologies India Ltd, Spider Software Pvt Ltd. to build its trading engine and content. The City Venture holds a majority stake in the company. HSBC, Intel & Carlyle are the other investors.

On April 17, 2002 Share khan launched Speed Trade and Trade Tiger, are net-based executable application that emulates the broker terminals along with host of other information relevant to the Day Traders. This was for the first time that a net-based trading station of this caliber was offered to the traders. In the last six months Speed Trade has become a de facto standard for the Day Trading community over the net.

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

21 The firm’s online trading and investment site - www.sharekhan.com - was launched on Feb 8, 2000. The site gives access to superior content and transaction facility to retail customers across the country. Known for its jargon-free, investor friendly language and high quality research, the site has a registered base of over 3 Lacks customers. The number of trading members currently stands at over 7 Lacks. While online trading currently accounts for just over 5 per cent of the daily trading in stocks in India, Share khan alone accounts for 27 per cent of the volumes traded online.

The Corporate Finance section has a list of very prestigious clients and has many ‘firsts’ to its credit, in terms of the size of deal, sector tapped etc. The group has placed over US$ 5 billion in private equity deals. Some of the clients include BPL Cellular Holding, Gujarat Pipavav, Essar, Hutchison, Planetasia, and Shopper’s Stop.

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

SERVICES PROVIDED BY SHAREKHAN

22 BENEFITS OF SHARE KHAN

· Free Depository A/c

· Instant Cash Transfer

· Multiple Bank Option.

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

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

· 24x7 Voice Tool access to your trading account.

23 · Personalized Price and Account Alerts delivered instantly to your Mobile Phone & E-mail address.

· Live Chat facility with Relationship Manager on Yahoo Messenger

· Special Personal Inbox for order and trade confirmations.

· On-line Customer Service via Web Chat.

· Enjoy Automated Portfolio.

· Buy or sell even single share

· Anytime Ordering.

Share khan offers the following products:-

CLASSIC ACCOUNT

This is a User Friendly Product which allows the client to trade through website www.sharekhan.com and is suitable for the retail investors who is risk-averse and hence prefers to invest in stocks or who do not trade too frequently.

Features

24 · Online trading account for investing in Equity and Derivatives via www.sharekhan.com

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

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

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

· Competitive transaction charges.

· Instant order and trade confirmation by E-mail.

· Streaming Quotes (Cash & Derivatives).

· Personalized market watch.

· Single screen interface for Cash and derivatives and more.

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

SPEEDTRADE

Speed trade is an internet-based software application that enables you to buy and sell in an instant.

It is ideal for active traders and jobbers who transact frequently during day’s session to capitalize on intra-day price movement.

Features

· Instant order Execution and Confirmation.

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

25 · Technical Studies.

· Multiple Charting.

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

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

· Hot keys similar to broker’s terminal.

· Alerts and reminders.

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

· Live market debts.

DIAL-N-TRADE

Along with enabling access for trade online, the CLASSIC and SPEEDTRADE ACCOUNT also gives Dial-n-trade services. With this service, one can dial share khan’s dedicated phone lines 1-800-22-7500, 3970-7500.

Beside this, Relationship Managers are always available on Office Phone and Mobile to resolve customer queries.

SHAREMOBILE

Share khan had introduced Share mobile, A mobile based software where one can watch Stock Prices, Intra Day Charts, Research & Advice and Trading Calls live on the Mobile.

(As per SEBI regulations, buying-selling shares through a mobile phone are not yet permitted.)

PREPAID ACCOUNT

Customers pay Advance Brokerage on trading Account and enjoy uninterrupted trading in their Account. Beside this, great discount are also available (up to 50%) on brokerage.

26 Prepaid Classic Account : - Rs. 2000

Prepaid Speed trade Account : - Rs. 6000

IPO ON-LINE

Customers can apply to all the forthcoming IPOs online. This is quite hassle- free, paperless and time saving. Simply allocate fund to IPO Account, Apply for the IPO and Sit Back & Relax.

MUTUAL FUND ONLINE

Investors can apply to Mutual Funds of Reliance, Franklin Templeton Investments, ICICI Prudential, SBI, Birla, HDFC, DSP Merrill Lynch, PRINCIPAL and TATA with Share khan.

ZERO BALANCE ICICI SAVING ACCOUNT

Share khan had tied-up with ICICI bank for Zero Balance Account for Share khan’s Clients. Now their customers can have a Zero Balance Saving Account with ICICI Bank after your de-mat Account creation with Share khan.

CHARGE STRUCTURE

Fee Structure for General Individuals: -

Charge Classic Account Speed Trade Account

Account Opening Rs. NIL Rs. NIL

27 Monthly Rs. NIL Rs. NIL

Commitment

Brokerage Intra-day – 0.05 % Intra-day - 0.05%

Delivery - 0.50 % Delivery - 0.50%

* Taxes as per govt.

Depository Charges

Account Opening Charges Rs. NIL

Annual Maintenance Charges Rs. NIL first year.

Rs. 300/= p.a. from second calendar year onward

REASONS TO CHOOSE SHAREKHAN LIMITED

Experience

SSKI has more than eight decades of trust and credibility in the Indian stock market. In the Asia Money broker's poll held recently, SSKI won the 'India's best broking house for 2004' award. Ever since it launched Share khan as its retail broking division in February 2000, it has been providing institutional- level research and broking services to individual investors.

Technology

28 With their online trading account one can buy and sell shares in an instant from any PC with an internet connection. Customers get access to the powerful online trading tools that will help them to take complete control over their investment in shares.

Accessibility

Share khan provides ADVICE, EDUCATION, TOOLS AND EXECUTION services for investors. These services are accessible through many centers across the country (Over 650 locations in 150 cities), over the Internet (through the website www.sharekhan.com) as well as over the Voice Tool.

Knowledge

In a business where the right information at the right time can translate into direct profits, investors get access to a wide range of information on the content-rich portal, www.sharekhan.com. Investors will also get a useful set of knowledge-based tools that will empower them to take informed decisions.

Convenience

One can call Share khan’s Dial-N-Trade number to get investment advice and execute his/her transactions. They have a dedicated call-center to provide this service via a Toll Free Number 1800-22-7500 & 39707500 from anywhere in India.

Customer Service

Its customer service team assist their customer for any help that they need relating to transactions, billing, de-mat and other queries. Their customer service can be contacted via a toll-free number, email or live chat on www.sharekhan.com.

Investment Advice

29 Share khan has dedicated research teams of more than 30 people for fundamental and technical research. Their analysts constantly track the pulse of the market and provide timely investment advice to customer in the form of daily research emails, online chat, printed reports etc.

MARKETING STRATEGIES OF THE COMPANY

 Tele calling:-The Company uses the Telecalling/ phone calling to reach the customers, which are interested. This is the most important technique to save time and giving demo of the company’s product through making call in order to know the customer interest towards the product. This is the strategy with which one can motivate customer to go for the product and etc.  LMS: It is leads management system which means leads are generated by the customer who wants to purchase the product of the company. Company provides facility to the customer on online to fill the registration form through which the companies’ executives can provide more information to the customer.  Yellow Pages: Yellow pages are used to gather data for making calls so that customer who did not fine time and are unaware of the product can know about the product. Customers are given freedom to ask question related to the products this is the technique used to increase the awareness of the company.  Canopy’s: This is the most important technique used by share khan securities to market its product in different areas of the city, company put their canopies and customer who are willing to know about the product come forward and provide best of their knowledge. Besides this company executives ask customer to fill the questionnaire that tells the company about the levels of brand awareness. It also increases the product awareness because it is generally put at the crowdies places like near main

30 Markets, cinemas, hotels, atm or etc where people come in good numbers.  Direct Marketing: Share khan executive’s reaches to the does of the customer by fixing appointments with the interested customer, they describe the details of the product. Executive give demonstration of the products so that customer can understand better.  Advertising: Advertising is the most important tool of increasing awareness of the product and this is the most widely used technique by the company to tell about the new features and new lunch by giving briefing of the product. Share khan use banners, distribution of pamphlets, and advertisement in newspapers, magazines.  References: Share khan strategy is to satisfy the customer in terms of their need by providing them timely services and knowledge about the trade in equities, mutual funs by giving tips for investment advises through e-mails or toll free calls for this purpose customers are provided relationship manager who give investment advice and also make transaction on their behalf on demand. B satisfying customer executives ask their references that not only increase the awareness but also increase the good will of the company.  Competitiveness: The Company is innovative and uses the latest technology to improve the product to fulfill the demands of the customers. Share khan makes it easy for the customer to make online transaction of shares. The company is competitive in terms of the product price and facilities it offers to the customer. Internet: Company provides detailed information about the products on Internet so that customer can know about the product easily and completely

31 SHAREKHAN BUSINESS

1. Brokering business

2. White feathering house production.

32 BRANCHES ALL OVER INDIA

SWOT ANALYSIS

Strengths:

 It is a pioneer in online trading with a turnover of Rs.400crores and more than 800 peoples working in the organization.

33  SSKI the parent company of Share Khan has more than eight decades of trust and credibility in the Indian stock market. In the Asian Money Broker’s poll SSKI won the “India’s best broking house for 2004” award.

 Share Khan provides multi-channel access to all its customers through a strong online presence with www.sharekhan.com, 250 share shops in 130 cities and a call-center based Dial-n-Trade facility

 Share Khan has dedicated research teams for fundamental and technical research. Which constantly track the pulse of the market and provide timely investment advice free of cost to its clients which has a strike rate of 70-80%

Weakness:

 Localized presence due to insufficient investments for country wide expansion.

 Lack of awareness among customers because of non-aggressive promotional strategies (print media, newspapers, etc).

 Lesser emphasis on customer retention.

 Focuses more on HNIs than retail investors which results in meager market-share as compared to close competitors.

Opportunities:

 With the booming capital market it can successfully launch new services and raise its client’s base.  It can easily tap the retail investors with small saving through promotional channels like print media, electronic media, etc.  As interest on fixed deposits with post office and banks are all time low, more and more small investors are entering into stock market.

34  Abolition of long term capital gain tax on shares and reduction in short term capital gain is making stock market as hot destination for investment among small investors.  Increasing usage of internet through broadband connectivity may boost a whole new breed of investors for trading in securities.

Threats:

 Aggressive promotional strategies by close competitors may hamper Share Khan’s acceptance by new clients.

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

 Other players are providing margin funds to investors on easy terms where as there is no such facility in share khan.

 More and more players are venturing into this domain which can further reduce the earnings of Share Khan.

CHAPTER-3

ONLINE SHARE TRADING AND COMPETITORS

Online share trading

With a Share khan online trading account, you can buy and sell shares in an instant! Anytime you like and from anywhere you like.

You can choose the online trading account that suits your trading habits and preferences - the Classic Account for most investors and Trade tiger for active day

35 traders. Your Classic Account also comes with Dial-n-Trade completely free, which is an exclusive service for trading shares by using your telephone.

KEY FEATURES OF ONLINE TRADING

 Freedom from paperwork

 Instant credit and money transfer

 Trade from any net enabled PC

 After hour orders

 Online orders on the phone

 Timely advice and research reports

 Real-time Portfolio tracking

 Information and Price alerts

When beginning your foray in investing in shares, we need a lot of things - from the right tools and the right information at your disposal, to assistance when we need it and advice on investing. SHAREKHAN has been in this business for over 80 years now, and we can get a host of services and tools that are difficult to find in one place anywhere else. The Share khan First Step program, built specifically for new investors is testament to their commitment to being our guide throughout our investing lifecycle.

SHAREKHAN TRADE TIGER ACCOUNT

36 These accounts for active traders who trade frequently during the day's trading session .Following are few popular features of Speed Trade account.

Features of trade tiger account

 Real-time streaming quotes with Instant order Execution & Confirmation

 Hot keys similar to a traditional broker terminal

 Alerts and reminders

 Back-up facility to place trade on Direct Phone lines

 A single platform for multiple exchange BSE & NSE (Cash & F&O), MCX, NCDEX, Mutual Funds, IPOs

 Multiple Market Watch available on Single Screen

 Multiple Charts with Tick by Tick Intraday and End of Day Charting powered with various Studies

 Graph Studies include Average, Band- Bollinger, Know Sure Thing, MACD, RSI, etc

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

 User can save his own defined screen as well as graph template, that is, saving the layout for future use

 User-defined alert settings on an input Stock Price trigger

37  Tools available to gauge market such as Tick Query, Ticker, Market Summary, Action Watch, Option Premium Calculator, Span Calculator

 Shortcut key for FAST access to order placements & reports

 Online fund transfer activated with 12 Banks

SAMPLE OF TRADE TIGER

38 39 PROCESS ON ACCOUNT OPENING

LEAD MANAGEMENT SYSTEM (LMS)/ REFERENCES

CONTACT

TELEPHONE AND PERSONAL VISIT

APPOINMENT

DEMONSTRATION

AGREE DISAGREE N o

DOCUMENTATION

FILLING THE FORM

SUBMISSION THE FORM

LOGIN OF THE FORM

SENDIND ACCOUNT OPNING KIT TO CUSTOMER

TRADING

How to open account with Share khan?

40 For online trading with Share khan, investor has to open an account. Following are the ways to open an account with Share khan:

 Call them at phone number provided below and ask that you want to open an account with them.

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

o If you are in Mumbai call on 022-66621111

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

India. Click on http://sharekhan.com/Locateus.aspx this link to find out your nearest branch. Just select the place near you and you'll find a manager to assist you there.

 You can send them an Email on [email protected] to know about their products and services.

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

41 COMPETITORS INFORMATION

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

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

INFORLINE, AND KOTAK.

But i have selected above mention5 companies to compares with share khan ltd.

The selected five companies are follows-

1. 5paisa.com 2. Kodak Street 3. India Bull 4. ICICI Direct 5. HDFC Security

5PAISE.COM

Company Background

India info line was founded in 1995 and was positioned as a research firm in 2000 e-broking was started under the brand name of 5paisa.com. Apart from offering online trading in stock market the company offers mutual funds online. It also acts as a distributor of various financial services i.e. GOI

42 securities, Company Fixed Deposits, Insurance, Limited ground network, present in 20 Cities.

Online account types

1. Investor terminal

Account opening: 500

De-mat 1st year 250

Initial margin: 2500(compulsory)

Min margin retainable: 1000

Brokerage:

Intraday- 0.10% + ST

Delivery – 0.50% + ST

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

Initial Margin: 5000(compulsory)

Min margin retainable: 1000

Brokerage

Intraday- 0.10% + ST

Delivery - 0.50% + ST

43 Account access charges

Monthly: Rs. 800

Downtime Recent past 5 paisa trader terminal is experiencing high frequency downtime between 3:00 to 3:30 pm due to server load

Manual accounting

The 5 paisa accounting system is manual, online fund transfer through bank is not credited unstably.

Limit is provided EOD for shares sold from DP, or call. Similarly limit released for shares sold under BTST is manual. Delay in receiving payout of clear funds from trading to bank account.

Min account balance

Min Rs.1000 is to be maintained in form of cash/securities to keep account active. This can be withdrawn only on closure of account.

KOTAK STREET

Company Background Kotak Street is the retail arm of kotak securities. Kotak Securities limited is a joint venture between and Goldman Sachs.

44 Online account type

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

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

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

Cash expressway: spot payment, additional 0.5% charges.

For kotak fast lane/ keatlite/ keat desktop are trading interfaces keat desktop with advanced tools comes at a charge of Rs. 500 non refundable.

Pricing of kotak

A.O. 500, De-mat 22.5 per month, Initial margin: Rs 5000, Min margin retainable: Rs. 100 Brokerage slab wise: - Higher the volume, lower the brokerage. Even older customers (on 0.25% and 0.40%) have been moved to the slab wise structure.

Slab structure of kotak

Delivery Brokerage Square volume Brokerage volume off P.M P.M <1 lakh 0.65% <10 lakhs 0.10% each leg

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

5 lakhs – 10 0.50% 25 lakhs – 2 cr. 0.06% each leg lakhs 10 lakhs –20 0.40% 2 cr. – 5 cr. 0.05% each leg lakhs 20 lakhs –60 0.30% >5 cr. 0.04% each leg lakhs

45 60 lakhs – 2 cr. 0.25%

>2 cr. 0.20%

* DP charges extra

* Brokerage is inclusive of taxes

INDIABULLS

Company Background

India Bulls has retail financial Services Company present in 70 locations Covering 62 cities. It offers a full range of financial services and Products ranging from Equities to Insurance. 450 + Relationship Managers who act as personal financial advisors

Online account type

Signature account: Plain vanilla account with focus on equity analysis. The equity analysis is a paid service even for account holders.

Power India bulls: Account with sophisticated trading tools, low commissions and priority access to R.M.

Pricing of India bulls accounts:

Signature account:

Account opening: 250/=

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

Initial Margin Nil

Brokerage: negotiable

Power India bulls:

Account opening: 750/=

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

Initial Margin Nil

Brokerage: negotiable

Paid Research

Scheme Facility Web based 1 month 500 View and print on website Web based 1 year 6000 View and print on website Print report 1 month 750 View and print on website + 10 reports delivered Print report 1 year 9000 View and print on website + 10 reports delivered

Deal clinchers V/S India bulls.

POA for Clients DMAT

All shares held by client trading with IB are moved to IB Pool Account and the same is shown as a reflection in client DP account. Charges are levied to move shares from IB pool Account to client DP account

Paid research services

Access to a research even for and IB trading account hold is charges a min. of Rs 500 a month.

Margin funding hoax

The interest on funding starts on leveraged delivery trades from T + 1 day itself @ 21 % p.a., on a daily basis.

The role of relationship manager

47 Each RM is looked upon as revenue generator and he gets a % on business generator from client. This can lead to over leveraged (interest) & high frequency (brokerage) trading, which may no be in the best interest of the client.

ICICI DIRECT

Company Background

ICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is an Affiliate of ICICI Bank Limited and the Website is owned by ICICI Bank Limited.

Account opening: Rs. 750/=

Schemes: For short periods Rs 750 is refundable against brokerage generated in a qtr. These schemes are introduced 3-4 times a year.

De-mat nil 1st year charges included in account opening plus a facility open additional 4 DP’s

Without 1st year AMC.

Initial margin nil

Brokerage:

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

Poor online interface

48 Slow website interface with no real time quotes crates dissatisfaction among high frequency traders.

Margin trading restriction

The margin trading system is available 1 up to 2:45 p.m. , with outstanding net positions under margin segment automatically squared off at any time between 2:45 – 3:30 pm. Thus no control of squared off price.

Morning trades issue

Being one of the websites with larger no. of after hour orders which are pushed 1st thing in the morning, creates a choking of orders to the exchange, causes delay of confirmation for new order placed during the early morning trades

Restriction of BTST

Sale of shares purchased is restricted to T + 1 day and is not permitted on T + 2 day.

Deal clinchers V/S ICICI direct

No leverages for delivery trades

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

No flexibility on leverage on intraday trades.

The leverage of 4 times is available for intraday trades.

Restriction of bank account

The choice of bank is restricted to ICICI bank.

Higher brokerage rates with slabs

49 The delivery brokerage is pegged at 0.85% and trading at 0.15% each side, this makes is very unviable for customers dealing in large volumes. Although progressively the delivery and trading brokerage reduce as volume go up.

HDFC SECURITIES

Company Background

The HDFC BANK, HDFC and Chase Capital Partners and their associates promote HDFC SECURITIES LTD. Pioneers in setting up Dial-a-share services with the largest team of Tele-brokers.

De-mat account with HDFC securities:-

 It is conversion of physical shares into electronic form.  Dematerialization charges  Rs. 3 per share certificate  Rs. 35 per request.  Folio charges are Rs.150 per annum.  Buying and selling transaction through brokers –Charges are 0.05% of transaction value  Off market transactions charges - 0.04% of transaction value

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

HDFC securities pricing of HDFC account

50 Account opening: 750 De-mat: 1st year charges included in account opening Initial margin: Rs. 5000 for non HDFC bank customers AMC: first year nil and Rs. 450 per year from 2nd year onwards.

Brokerages Trading 0.15% Delivery 0.50% Deal clinchers V/S HDFC securities

Poor online interface

A part from having no product to cater to day – traders the HDFC securities online website is plagued with downtime. The same is currently being revamped.

Lack of focus on broking

The core business of HDFC is housing finance. Broking as a business is a small part of the portfolio of financial services and hence the commitment to resources is limited.

No leverage

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

And carry system.

51 No flexibility in commercial terms

The delivery brokerage is pegged at 0.5% and trading and 0.15% side, this makes it unviable for customers dealing in large volume.

COMPARATIVE ANALYSIS

ICICI HDFC Kotak Share India 5 direc sec. stree khan bulls paisa t t A/C 750 700 550 750 500 675 opening fee Recurring 0 0 0 0 0 375 fee for trading A/C De-mat 500 500 360 300 0 375 AMC Delivery 75p 50p 59p 50p 50p 60p brokerage

Intraday 0.15 0.15 0.10 0.10 0.10 0.15 brokerage

Initial nil 5000 5000 nil nil 2500 margin (for non required HDFC custom er)

52 Cash Y Y Y Y Y Y BTST Y N Y Y Y Y Funded Y Y N N Y N margin Margin Y Y Y Y Y Y Derivatives Y Y N Y Y Y Commoditi Y N N Y Y Y es IPO Y Y Y Y N Y MF Y N Y N N Y Small Y N N N N Y Savings Insurance Y N N N N Y

CHAPTER-4

RESEARCH METHODOLOGY

Research Methodology:

Research design is a basic frame work, which provides guidelines for the rest of research process. It is a map or blue print according to which the research is to be conducted.

Objective of Research

Each research study has its own specific purpose. It is like to discover to Question through the application of scientific procedure. But the main aim of our research to find out the truth that is hidden and which has not been discovered as yet. Our research study has two objectives.

53 Primary objective: -How Share khan Ltd is best services providers as a stock broker in the north region

Secondary objective: -

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

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

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

4. To study about whether people are satisfied with Share khan Services & Management System or not

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

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

Research Design

Research design is the conceptual structure within which the research would take place. The presentation of such a design facilitates research to be as efficient as possible yielding maximum information.

1. Deciding the Objective of the Study.

54 2. Questionnaire.

3. Sample Selection.

4. Feedback Collection.

5. Analysis.

Types of research

I used a descriptive type of research. It is one which includes surveys and fact – finding, Enquiries of different kinds. The major purpose of such research is description of the state of affairs, as it exists at present.

METHODS OF DATA COLLECTION

While deciding about the method of data collection to be used for the study the researcher should keep to types of data.

1. Primary Data

2. Secondary Data.

1. Primary data collection

The data collected by the researcher from the field.

Primary data can be collected by

 Experiment  Survey  Personal Interviews  Questionnaire  Tele-calling

55 2. Secondary sources of data

It is the data which has already been collected by some one or an organization for some other purpose or research study. The data for my study has been collected from various sources.

 Books  Journals  Internets  News papers  Pamphlets  Broacher  Magazines

We use in our research primary data, as well as secondary data. Primary means collected a fresh, and the first time data and secondary means which are already available like annual report, magazines etc.

RESEARCH METHODOLOGY ADOPTED

• Type of research: - Qualitative research

• Sampling Plan: Population:

-Element- Consumers

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

• Sampling Type: - Area sampling.

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

Delhi

56 • Sample Size: - 30 Respondents

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

Personal Interviews.

• Research instruments: -

Questionnaire was used to extract the information from the

Respondents.

Questions were

- Open-ended

- Close ended

• Method of Sampling: - Random

CHAPTER-5

DATA INTERPETION AND ANALYSIS

1. Are you aware about share market and online trading?

Yes No

AWARE OF ONLINE SHARE %OF RESPONDENTS TRADING Yes 93.33% No 6.67%

57 AWARNESS ABOUT SHARE MARKET AND ONLINE TRADING

YES 93.33 NO 6.67

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

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

FINANCIAL INSTRUMENTS % PERCENTAGE OF INVESTMENT Mutual fund 33.33% Bonds 6.67% Online trading 20% Derivative 10% Insurance 3.36% Others 26.67%

58 PERCENTAGE OF INVESTMENT IN FINANCIAL INSTRUMENT

35

30

25

20

15

10

5

0

Interpretations: This shows that although the mutual funds is on the rise yet , the most favored investment continues to be in the share market so with a more transparent system . Investment in the stock market can definitely be increased

3. What is the basic purpose of your investment?

PURPOSE OF PERCENTAGE OF INVESTMENT INVESTMENT Liquidity 10% Returns 50% Capitals 16.67% Tax benefits 13.33% Risk covering 10%

59 PURPOSE OF INVESTMENT

60

50

40

30

20

10

0 LIQUIDITY RETURNS CAPITALS TAX BENEFITS RISK COVERING

Interpretation: - 73.33% people are interested in, returns, liquidity and tax benefits. And remaining 26.67% are interested in capitals, risk covering.

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

Yes NO

HAVING A DE MAT AND TRADING PERCENTAGE OF DE MAT AND A/C TRADING A/C Yes 76.67% No 23.33%

60 PERRCENTAGE OF HAVING DEMAT AND TRADING A/C

Interpretations: - 76.67% people having de-mat and trading a/c, remaining 23.33% have no De-mat and trading a/c. This shows that maximum people are interested in share trading.

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

61 SOURCE OF NEWS OF PERCENTAGE OF BROKING FIRM SOURCE 20 Newspaper Journal 10 TV Advertisement 10 Internet 23.33 Friend 26.67 Other 10

SOURGE OF NEWS ABOUT BROKING FIRM

30 25 20 15 10 5 0

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

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

COMPANY NAME PERCENTAGE OF RESPONDENT

Share khan 53.33%

62 India bulls 13.33%

ICICI Direct 6.67%

HDFC Security 13.33%

KOTACK Street 3.33%

5paisa.com 0%

Other 10%

PERCENTAGE OF RESPONDENT

OTHER F; 10% KOTACK SECURITY; 3%

HDFC SECURITY; 13%

SHRE KHAN; 53% ICICI DIRECT; 7%

INDIA BULLS; 13%

Interpretations:- 53.33% have respondent of share khan ltd ,13.33% have respondent of India bulls, 6.67% respondent of ICICI direct, 13.33% respondent of HDFC security,3.33% respondent of KOTACK street, 0% respondent of 5paisa.com, and 10% respondent of Other.

63 7. How important do you think these factors influence in choosing a broking firm?  Low brokerage :-( Not important) (Important) ( Extremely important)  Better customer service:- ( Not important) (Important ) (Extremely important)  Brand loyalty:- ( Not important) ( Important) (Extremely important)  Good trading tips:- (Not important) (Important) (Extremely important)  Margin money:- ( Not important) (Important) (Extremely important)  Timely research report:- (Not important) ( Important) (Extremely important)  Friend recommendations:- (Not important) ( Important) ( Extremely important)

80 70 60 50 40 30 20 10 NOT IMPORTANT IMPORTANT EXTREMELY IMPORTANT 0

64 Interpretations:- 70% people thinks brandloyaty and friend recommendations is extremely important. 50% people think low brokerage and timely research report is extremely important. 47% people think better customer service, good trading tips and margin money is extremely important.

8. Best broking firm according to you?

HIERARCHY LEVEL OF % OF TRUSTING BROKING COMPANY Share khan 43.33% India Bulls 16.67% KOTAK street 3.33% ICICI Security 6.67% HDFC Direct 10% Other 20%

65 HIERACHY LEVEL OF BROKING COMPANY

OTHER

HDFC SECURITY

ICICI DIRECT

KOTAK STREET

INDIA BULLS

SHARE KHAN

0 5 10 15 20 25 30 35 40 45 50

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

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

Yes No

FEATURE % TO INVEST % OF INTERESTED THROUGH SHARE KHAN

66 Yes 43.33%

No 56.67%

FUTURE OF INVESTMENT THROUGH SHARE KHAN

60

50 Series 1 40

30

20

10

0 YES NO

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

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

 Risk

67  Return  Both

FACTOR %AGE Risk 3.33% Returns 40% Both 56.67%

FACTOR OF INVESTMENT

60

50

40

30

20

10

0 RISK RETURNS BOTH

Interpretation: 96.67% people are considered the both factors risk as well as returns but, only 43.33% considered the risk or returns factor.

68 CHAPTER-6

OBSERVATION AND FINDINGS

To study the sales and distribution management and improve the Customer Acquisition Process by analyzing the consumer behavior, response and mindset towards the product and services the company offers.

1. Preference of Investment:

Consumers want to invest 75% in Mutual funds, 16% in Bonds, 7% in online trading and 2% in Derivatives.

2. Awareness on Online Share Trading

72% consumers are aware of online share trading and 28% consumers are not aware of online share trading.

3. Awareness of Share khan ltd.:

70% consumers are known about Share khan ltd. and 30% consumers are not known about Share khan ltd.

4. Company have De-mat A/C

In Share khan Ltd 38% respondents have De-mat & trading account because of better services and no annual maintenance and other charges.

5. Company provide large no. of product and services

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

69 FINDINGS

 According to the survey most of the customers of “Share khan Ltd” says that it is pocket friendly.

 Coming to faith 70% say Share khan Ltd is better than others stock brokers due to Customer’s satisfaction.

 Main purposes of investments are returns & liquidity.

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

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

 Commodity market is less preferred by the investors.

 People want to invest their money in the security market but they haven’t the proper knowledge.

 People are not aware of hedging in stock market.

 People pay more emphasis on brokerage than service provided by brokerage houses.

SUGGESTION

70  Commitment should be equalized for every person.  Provide the facility of free demonstrations for all.  Improvement in the opening of De-mat & contract notice procedure is

required.

 There should be a limited number of clients under the relationship

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

 Some promotional activities are required for the awareness of the

customer.

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

 Seminars should be held for providing information to prospective and

present customers.

71 CHAPTER-7

ADVANTAGES AND LIMITATIONS

ADVANTAGES:-

Lower brokerage and fees (in almost all cases). Fees can be even lower if you're a frequent trader.

More control on your transactions. You can decide exactly what price and time you wish to buy, down to the fraction of a second, as well as change your order whenever you feel like. No waiting on the phone or having to go in person to a branch.

More flexibility in terms of being able to see what options are available to you and scan the market.

With online trading, you often have access to lower-fee mutual fund products since you are your own advisor and nobody gets a cut along the way.

. Handy tools to model interest earned, yield, returns etc, as well as financial screeners to research stocks and bonds.

72 Good research tools and newsfeeds on each stock, which you can delve deeper into in your own time. A conventional offline broker may not always be able or willing to offer you all of these. You can also get many of these for free from sites like Market watch, Fool.com etc.

LIMITATIONS:-

Lack of awareness of capital market:

Since the area is not known before it takes lot of time in convincing people to start investing in shares primarily in IPO’s.

Some people are comfortable with traditional system:

AS people are doing trading from their respective brokers, they are quite comfortable to trade via physical form of paper.

Lack of Techno Savvy people and poor internet penetration:

Since most of the people are quite experienced and also they are not techno Savvy. Also Internet penetration is poor in India.

Some respondents are unwilling to talk:

Some respondents either do not have time or willing does not respond, as they are quite annoyed with the phone call.

Inaccurate Leads:

73 Sometimes leads are provided which had error in it, which varies from only 5- Digit phone number to wrong phone number

CHAPTER-8

CONCLUSION

With the increases in cyber education awareness toward share market and share trading has leaps and bounds; the awareness is expected to increases future with the increase in internet education.

On the basis of the study it is found that share khan ltd is better services provider than the other share brokers because of their study and research and personalized advice on what stocks to buy and sell. Share khan ltd provides TRADE TIGER as well as relationship manager the facility for encouragement and protect the interest of the investors. It also provides the information through the mail and mobile alerts that what IPOs are coming in the market and it also provides its research on the future prospect of the IPOs.

Share khan is looked upon revenue generated and he gets a 100 % on business generated from client. This can lead to over leverage and high frequency trading which may in best interest of the customer.

Study also concludes that people are not much aware of commodity market and while it’s going to be biggest market in India

74 The company should also organize seminars and similar activities to enhance the knowledge of prospective, and existing customers, so that the feel more comfortable while investing in the stock market

CHAPTER-9

BIBILIOGRAPHY

o Websites www.bseindia.com o o www.google.com

www.nseindia.com

www.moneycontrol.com

www.sharekhan.com

www.icicidirect.com

www.5paisa.com www.indiabulls.com

o Newspaper

. ECONOMIC TIMES . TIMES OF INDIA

75 CHAPTER-10

ANNEXURE

Please tick your response whenever appropriate:

NAME:-

PROFESSION:-

ADDRESS:-

CONTACT NO:-

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

2. In which of these financial instruments do you invest?  Mutual fund  Bonds  Online trading  Derivative  Insurance  Other 3. What is the basic purpose of your investment?  Liquidity  Returns  Capitals  Tax benefits  Risk covering 4. Do you have a D-mat and Trading account? 5. Yes NO

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

 Newspaper  Journal  TV Advertisement  Internet  Friend  Other

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

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

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

 Low brokerage :-( Not important) (Important) ( Extremely important)  Better customer service:- ( Not important) (Important ) (Extremely important)  Brand loyalty:- ( Not important) ( Important) (Extremely important)  Good trading tips:- (Not important) (Important) (Extremely important)  Margin money:- ( Not important) (Important) (Extremely important)  Timely research report:- (Not important) ( Important) (Extremely important)  Friend recommendations:- (Not important) ( Important) ( Extremely important)

8. Best company according to you?

 Share khan  India bulls  KOTAK Street  ICICI Direct  HDFC Security  Other

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

Yes No

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

 Risk  Return  Both

78