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SUMMER TRAINING PROJECT REPORT

SHAREKHAN LTD.

Submitted in partial fulfillment of the requirement of Bachelor of Administration (BBA) Guru Jambeshwar University, Hissar

AN OBSERVATIONAL STUDY ON FINANCIAL JUNGLE WITH AS YOUR GUIDE

Training Supervisor Submitted By: MR. RAVI VERMA ANUJ DIWAKAR (AREA ASSISTANT MANAGER) (2007-2010) ROLL NO: 07511242131

Session (2007-2010)

GURU JAMBESHWAR UNIVERSITY HISSAR-125001 PREFACE

No professional curriculum is considered complete without work experience. It is well evident that work experience is an indispensable part of every professional course. In the same manner practical work in any organization is must for each an every individual, who is undergoing management course. Without the practical exposure one cannot consider himself as a qualified capable manager.

Entering in the organization is like stepping into altogether a new world. At first, everything seems strange and unheard but as the time passes one can understand the concept and working of the organization thereby develop professional relationship.

Initially I felt that as if classroom study was irrelevant and it is useless in any working concern. But gradually I realized that all fundamental basic concepts studied are linked in one or in another way to the organization. But how and what can be done with fundamentals, depend upon the intellectual and applicability skills of an individual.

During my summer training, a specific customer survey was assigned to me which helped me to have a full market exposure.

This project helped me to understand and cope up with different types of people and there diversified opinions or needs. ACKNOWLEDGEMENT

The completion of my summer training and project would not have been possible without the constant and timely encouragement of MR. RAVI VERMA, assistant manager, Sharekhan, Pitampura Branch.

I express my sincere gratitude and thanks to him for his guidance and sustained help, during the course of my summer training.

I had the precious opportunity of attaining training at Sharekhan. Under his brilliant untiring guidance I could complete the project being undertaken on the topic, “AN OBSERVATIONAL STUDY ON FINANCIAL JUNGLE WITH SHAREKHAN AS YOUR GUIDE”, successfully on 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.

Anuj Diwakar. Table of Contents

Chapter1 – Introduction Page No.

1.1. Overview of Industry as a whole 1.2. Profile of the Organization 1.3. Problems of the Organization 1.4. Competition information 1.5. S.W.O.T Analysis Of the Organization

Chapter2 –Objective & Methodology

2.1. Significance 2.2. Usefulness of study 2.3. Objective 2.4. Scope Of The Study 2.5. Methodology

Chapter3- Conceptual Discussion

Chapter4- Data Analysis & Interpretation

Chapter5- Findings & Recommendations

ANNEXURE

BIBLIOGRAPHY CHAPTER 1: - INTRODUCTION INTRODUCTION

1.1 OVERVIEW OF INDUSTRY AS A WHOLE

Evolution

A is a public market for the trading of company stock and derivatives at an agreed price; these are securities listed on a as well as those only traded privately.

The stocks are listed and traded on stock exchanges which are entities of a corporation or mutual organization specialized in the business of bringing buyers and sellers of the organizations to a listing of stocks and securities together.

Indian stock markets are one of the oldest in Asia. Its history dates back to nearly 200 years ago. The earliest records of dealings in are obscure. The Company was the dominant institution in those days. It started its operations close to the eighteenth century. By 1830’s business on corporate stocks and shares in Bank and cotton Presses took place in Bombay. Though the trading list was broader in 1839, there were only half a dozen recognized by banks and merchants during 1840 and 1850. The 1850’s witnessed a rapid development of commercial enterprise and brokerage business attracted many new men into field and by 1860 the number of brokers increased. In 1860-61 the American civil war broke out and supply of cotton from the United States to Europe was stopped. This heightened the demand for cotton from India. Cotton prices increased exports of cotton grew and payments were received in billions. The great and sudden spurt in wealth produced by cotton price propelled setting up companies for every conceivable purpose. However, at the end of the American civil war, in 1865, a disastrous Slump began [for example, Share which had touched RS 2850 could only be sold at RS 87].

At the end of American civil war, the brokers who thrived out of civil war in 1874, found a place in a street [now appropriately called as ] where they would conveniently assembly and transact business. In 1887,they formally established in Bombay, the “ Native Share and Stock Brokers Association” ( which is alternatively known as “ the Stock Exchange”. In 1895, the Stock Exchange acquired a premise in the same street and it was inaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated. Other leading cities in stock market operations

Ahmedabad gained importance next to Bombay with respect to cotton textile industry. After 1880, many mills originated from Ahmedabad and rapidly forged ahead. As new mills were floated, the need for a Stock Exchange at Ahmedabad was realized and in1894 the brokers formed “ The Ahmedabad Share and Stock Brokers associations”. What the cotton industry was to Bombay and Ahmedabad, the jute was to Calcutta. Also tea and coal industry were the other major industrial groups to Calcutta. In the 1870’s there was a sharp boom in jute shares, which was followed by a boom in tea shares in the 1880’s and 1890’s; and a coal boom between 1904and1908. on June 1908, some leading brokers formed “ The Association”.

In the beginning of the twentieth century, the industrial revolution was on the way in India with the Swadeshi movement; and with the inauguration of Tata Iron and Steel Company Limited in 1907, an important stage in industrial advancement under Indian enterprise was reached.

Indian cotton and jute textiles, steel, sugar, paper and flour mills and all companies generally enjoyed phenomenal prosperity, due to the First World War.

In 1920, the Demure city of Madras had the maiden thrill of a stock exchange functioning in its midst, under the name “The ” with 100 members. However, when boom faded, the number of members stood, reduced from 100 to 3, by 1993, and so it went out of existence.

In 1935, the stock market activity improved, especially in where there was a rapid increase in the number of textile mills and many plantation companies were floated.

In 1937, a stock exchange was once again organized in Madras- Madras Stock Exchange Association (Pvt) Limited( in 1957 the name changed to Madras Stock Exchange Limited.

Lahore Stock Exchange was formed in 1934 and it had a brief life. It was merged with the Punjab Stock Exchange Limited, which was incorporated in 1936. Indian Stock Exchanges- An Umbrella Growth

The Second World War broke out in 1939. It gave a sharp boom which was followed by a slump. But, in 1943, the situation changed radically, when India was fully mobilized as a supply base.

On account of the restrictive controls on cotton, bullion, seeds and other commodities, those dealing in them found in the stock market as the only outlet for their activities. They were anxious to join the trade and their number was swelled by numerous others. Many new associations were constituted for the purpose and many new Stock Exchanges in all parts of the country were floated.

The Uttar Pradesh Stock Exchange Limited (1940), Nagpur Stock Exchange Limited (1940) and Stock Exchange Limited (1944) were incorporated.

In Delhi two stock exchanges- Delhi Stock and Share Brokers Association Limited and the Delhi Stocks and Shares Exchange Limited- were floated an d later in June 1947, amalgamated into the Association Limited.

Most of the Exchanges suffered almost a total eclipse during depression. Lahore Exchange was closed during partition of the country and later migrated to Delhi and merged with Delhi Stock Exchange.

Bangalore Stock Exchange Limited was registered in 1957 and recognized in 1963.

Most of the other Stock Exchanges languished till1957, when they applied to Central Government for recognition under the Securities Contracts (Regulation) Act, 1956. Only Bombay, Calcutta, madras, Delhi, Hyderabad and Indore, the well known established exchanges, were recognized under the Act. Some of the members of the other Associations were required to be admitted by the recognized stock exchanges on a confessional basis, but acting on the principle of unitary control. All these pseudo stock exchanges were refused recognition by the and they thereupon ceased to function.

Thus, during early sixties there eight recognized stock exchanges in India(mentioned above). The number virtually remained unchanged for nearly two decades. During eighties, however, many stock exchanges were established: (1980), Uttar Pradesh Stock Exchange Association Limited (at Kanpur, 1982), Limited(1982), Association Limited (1983), Limited(1984), Kanara Stock Exchange Limited(at Manglore, 1985), Association(at Patna, 1986), Limited(1989), Bhubaneshwar Stock Exchange Association Limited(1989), Saurashtra Kutch Stock Exchange Limited(at Rajkot, 1989), Vadodra Stock Exchange Limited (at Baroda, 1990) and recently established exchanges- Coimbatore and meerut. Thus, at present, there are totally twenty one recognized Stock Exchanges in India excluding the Over the Counter Exchange of India Limited(OCTEI) and the National Stock Exchange Of India Limited(NSEIL).

The above data portrays the overall growth pattern of Indian stock marketssince independence. It is quite evident from the data that Indian stock markets not only grown just in number of exchanges, but also in number of listed companies and in capital of listed companies. The remarkable growth after 1985 can be clearly seen and this was due to the favouring government policies towards security market industry.

Importance of stock market

Function and purpose

The stock market is one of the most important sources for companies to raise money this allows to be publicly traded, or raise additional capital for expansion by selling shares of ownership of the company in a public market. The liquidity that an exchange provides affords investors the ability to quickly and easily sell securities. This is an attractive feature of investing in stocks, compared to other less liquid investments such as real estate.

History has shown that the price of shares and other assets is an important part of the dynamics of economic activity, and can influence or be an indicator of social mood. An economy where the stock market is on the rise is considered to be an up and coming economy. In fact, the stock market is often considered the primary indicator of a country's economic strength and development. Rising share prices, for instance, tend to be associated with increased business investment and vice versa. Share prices also affect the wealth of households and their consumption. Therefore, central banks tend to keep an eye on the control and behavior of the stock market and, in general, on the smooth operation of financial system functions.

Exchanges also act as the clearinghouse for each transaction, meaning that they collect and deliver the shares, and guarantee payment to the seller of a security. This eliminates the risk to an individual buyer or seller that the counterparty could default on the transaction.

The smooth functioning of all these activities facilitates economic growth in that lower costs and enterprise risks promote the production of goods and services as well as employment. In this way the financial system contributes to increased prosperity. An important aspect of modern financial markets, however, including the stock markets, is absolute discretion.

NATIONAL STOCK EXCHANGE (NSE)

The National Stock Exchange of India Limited (NSE), is a -based stock exchange. It is the largest stock exchange in India in terms of daily turnover and number of trades, for both equities and derivative trading.. NSE has a market capitalization of around Rs 47,01,923 crore (7 August 2009) and is expected to become the biggest stock exchange in India in terms of market capitalization by 2009 end. Though a number of other exchanges exist, NSE and the are the two most significant stock exchanges in India, and between them are responsible for the vast majority of share transactions. The NSE's key index is the S&P CNX Nifty, known as the Nifty, an index of fifty major stocks weighted by market capitalization.

NSE is mutually-owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries in India but its ownership and management operate as separate entities. There are at least 2 foreign investors NYSE and Goldman Sachs who have taken a stake in the NSE. As of 2006, the NSE VSAT terminals, 2799 in total, cover more than 1500 cities across India . In October 2007, the equity market capitalization of the companies listed on the NSE was US$ 1.46 trillion, making it the second largest stock exchange in . NSE is the third largest Stock Exchange in the world in terms of the number of trades in equities.It is the second fastest growing stock exchange in the world with a recorded growth of 16.6%.

Origins

The National Stock Exchange of India was promoted by leading Financial institutions at the behest of the Government of India, and was incorporated in November 1992 as a tax- paying company. In April 1993, it was recognized as a stock exchange under the Securities Contracts (Regulation) Act, 1956. NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment of the NSE commenced operations in November 1994, while operations in the Derivatives segment commenced in June 2000. Innovations

NSE has remained in the forefront of modernization of India's capital and financial markets, and its pioneering efforts include:

• Being the first national, anonymous, electronic limit order book (LOB) exchange to trade securities in India. Since the success of the NSE, existent market and new market structures have followed the "NSE" model. • Setting up the first clearing corporation "National Securities Clearing Corporation Ltd." in India. NSCCL was a landmark in providing innovation on all spot equity market (and later, derivatives market) trades in India. • Co-promoting and setting up of National Securities Depository Limited, first depository in India. • Setting up of S&P CNX Nifty. • NSE pioneered commencement of Internet Trading in February 2000, which led to the wide popularization of the NSE in the community. • Being the first exchange that, in 1996, proposed exchange traded derivatives, particularly on an equity index, in India. After four years of policy and regulatory debate and formulation, the NSE was permitted to start trading equity derivatives • Being the first and the only exchange to trade GOLD ETFs (exchange traded funds) in India. • NSE has also launched the NSE-CNBC-TV18 media centre in association with CNBC-TV18, a

It is the one of the most important stock exchanges in the world.

Markets

Currently, NSE has the following major segments of the capital market:

• Equity • Futures and Options • Retail Debt Market • Wholesale Debt Market • Currency futures

In addition to this, NSE is also planning to launch interest rate futures contracts

Hours

NSE's normal trading sessions are from 9:55am to 03:30pm on all days of the week except Saturdays, Sundays and holidays declared by the Exchange in advance. Indices

NSE also set up as index services firm known as India Index Services & Products Limited (IISL) and has launched several stock indices, including:

• S&P CNX Nifty • CNX Nifty Junior • CNX 100 (= S&P CNX Nifty + CNX Nifty Junior) • S&P CNX 500 (= CNX 100 + 400 major players across 72 industries) • CNX Midcap (introduced on 18 July 2005 replacing CNX Midcap 200)

Exchange Traded Funds on NSE

NSE has a number of exchange . These are typically index funds and GOLD etfs. Some of the popular etf's on NSE are.

1. NIFTYBEES - ETF based on NIFTY index Nifty BEES Live quote

2. GoldBees - ETF based on Gold prices. Tracks the price of Gold. Each unit is equivalent to 1 gm of gold and bears the price of 1gm of gold. 3. BankBees - ETF that tracks the CNX Bank Index.

Certifications

NSE also conducts online examination and awards certification, under its programmes of NSE's Certification in Financial Markets (NCFM). Currently, certifications are available in 19 modules, covering different sectors of financial and capital markets. Branches of the NSE are located throughout India. BOMBAY STOCK EXCHANGE (BSE)

The Bombay/Mumbai Stock Exchange Limited (formerly, The Stock Exchange, Mumbai; popularly called The Bombay/Mumbai Stock Exchange, or BSE) is the oldest stock exchange in Asia and has the greatest number of listed companies in the world, with 4700 listed as of August 2007. It is located at Dalal Street, Mumbai, India. On 31 December 2007, the equity market capitalization of the companies listed on the BSE was US$ 1.79 trillion, making it the largest stock exchange in South Asia and the 12th largest in the world.

With over 4700 Indian companies list on the stock exchange, and it has a significant trading volume. The BSE SENSEX (SENSitive indEX), also called the "BSE 30", is a widely used market index in India and Asia. Though many other exchanges exist, BSE and the National Stock Exchange of India account for most of the trading in shares in India.

Hours of operation

Beginning of the Day Session....8:00 - 9:00 Login Session....9:00 - 9:30 Trading Session....9:55 - 15:30 Position Transfer Session....15:30 - 15:50 Closing Session....15:50 - 16:05 Option Exercise Session....16:05 - 16:35 Margin Session....16:35 - 16:50 Query Session....16:50 - 17:35 End of Day Session....17:35

BSE's normal trading sessions are on all days of the week except Saturdays, Sundays and holidays declared by the Exchange in advance.

Bombay Stock Exchange history

Following is the timeline on the rise and rise of the Sensex through Indian stock market history.

1830's Business on corporate stocks and shares in Bank and Cotton presses started in Bombay.

1860-1865 Cotton price bubble as a result of the American Civil War 1870 - 90's Sharp increase in share prices of jute industries followed by a boom in tea stocks and coal

1900s

1978-79 Base year of Sensex, defined to be 100.

1986 Sensex first compiled using a market Capitalization-Weighted methodology for 30 component stocks representing well-established companies across key sectors.

The Bombay Stock Exchange is known as the oldest exchange in Asia. It traces its history to the 1850s, when would gather under banyan trees in front of Mumbai's Town Hall. The location of these meetings changed many times, as the number of brokers constantly increased. The group eventually moved to Dalal Street in 1874 and in 1875 became an official organization known as 'The Native Share & Stock Brokers Association'. In 1956, the BSE became the first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act. The Bombay Stock Exchange developed the BSE Sensex in 1986, giving the BSE a means to measure overall performance of the exchange. In 2000 the BSE used this index to open its derivatives market, trading Sensex futures contracts. The development of Sensex options along with equity derivatives followed in 2001 and 2002, expanding the BSE's trading platform.

Historically an open-cry floor trading exchange, the Bombay Stock Exchange switched to an electronic trading system in 1995. It took the exchange only fifty days to make this transition.

13,000, October 30, 2006 The Sensex on October 30, 2006 crossed the magical figure of 13,000 and closed at 13,024.26 points, up 117.45 points or 0.9%. It took 135 days for the Sensex to move from 12,000 to 13,000 and 123 days to move from 12,500 to 13,000.

14,000, December 5, 2006 The Sensex on December 5, 2006 crossed the 14,000-mark to touch 14,028 points. It took 36 days for the Sensex to move from 13,000 to the 14,000 mark.

15,000, July 6, 2007 The Sensex on July 6, 2007 crossed the magical figure of 15,000 to touch 15,005 points in afternoon trade. It took seven months for the Sensex to move from 14,000 to 15,000 points.

16,000, September 19, 2007 The Sensex scaled yet another milestone during early morning trade on September 19, 2007. Within minutes after trading began, the Sensex crossed 16,000, rising by 450 points from the previous close. The 30-share Bombay Stock Exchange's sensitive index took 53 days to reach 16,000 from 15,000. Nifty also touched a new high at 4659, up 113 points. The Sensex finally ended with a gain of 654 points at 16,323. The NSE Nifty gained 186 points to close at 4,732.

17,000, September 26, 2007 The Sensex scaled yet another height during early morning trade on September 26, 2007. Within minutes after trading began, the Sensex crossed the 17,000-mark . Some profit taking towards the end, saw the index slip into red to 16,887 - down 187 points from the day's high. The Sensex ended with a gain of 22 points at 16,921.

18,000, October 9, 2007 The BSE Sensex crossed the 18,000-mark on October 9, 2007. It took just 8 days to cross 18,000 points from the 17,000 mark. The index zoomed to a new all-time intra-day high of 18,327. It finally gained 789 points to close at an all-time high of 18,280. The market set several new records including the biggest single day gain of 789 points at close, as well as the largest intra-day gains of 993 points in absolute term backed by frenzied buying after the news of the UPA and Left meeting on October 22 put an end to the worries of an impending election.

19,000, October 15, 2007 The Sensex crossed the 19,000-mark backed by revival of funds-based buying in blue chip stocks in metal, capital goods and refinery sectors. The index gained the last 1,000 points in just four trading days. The index touched a fresh all- time intra-day high of 19,096, and finally ended with a smart gain of 640 points at 19,059.The Nifty gained 242 points to close at 5,670.

20,000, October 29, 2007 The Sensex crossed the 20,000 mark on the back of aggressive buying by funds ahead of the US Federal Reserve meeting. The index took only 10 trading days to gain 1,000 points after the index crossed the 19,000-mark on October 15. The major drivers of today's rally were index heavyweights Larsen and Toubro, , ICICI Bank, HDFC Bank and SBI among others. The 30-share index spurted in the last five minutes of trade to fly-past the crucial level and scaled a new intra-day peak at 20,024.87 points before ending at its fresh closing high of 19,977.67, a gain of 734.50 points. The NSE Nifty rose to a record high 5,922.50 points before ending at 5,905.90, showing a hefty gain of 203.60 points.

21,000, January 8, 2008 The sensex peaks. It crossed the 21,000 mark in intra-day trading after 49 trading sessions. This was backed by high market confidence of increased FII investment and strong corporate results for the third quarter. However, it later fell back due to profit booking.

15,200, June 13, 2008 The sensex closed below 15,200 mark, Indian market suffer with major downfall from January 21, 2008

14,220, June 25, 2008 The sensex touched an intra day low of 13,731 during the early trades, then pulled back and ended up at 14,220 amidst a negative sentiment generated on the Reserve hiking CRR by 50 bps. FII outflow continued in this week. 12,822, July 2, 2008 The sensex hit an intra day low of 12,822.70 on July 2, 2008. This is the lowest that it has ever been in the past year. Six months ago, on January 10, 2008, the market had hit an all time high of 21206.70. This is a bad time for the Indian markets, although Reliance and continue to lead the way with mostly positive results. Bloomberg lists them as the top two gainers for the Sensex, closely followed by ICICI Bank and ITC Ltd.

11801.70, Oct 6, 2008 The sensex closed at 11801.70 hitting the lowest in the past 2 years.

10527, Oct 10, 2008 The Sensex today closed at 10527,800.51 points down from the previous day having seen an intraday fall of as large as 1063 points. Thus, this week turned out to be the week with largest percentage fall in the Sensex

14284.21, May 18, 2009 After the result of 15th Indian general election Sensex gained 2110.79 points from the previous close of 12173.42 these creates a new history in Indian Market. In the Opening Trade itself sensex gain 15% from the previous day close this leads to the suspension of 2 hours trade. After 2 hours sensex again surged this leads to the suspension of full day trading.

1.2 PROFILE OF THE ORGANISATION

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

The firm’s online trading and investment site-www.sharerkhan.com- was launched on Feb 8, 2000. the site gives access to superior content and transaction facility to retail customers across the country. Known for its jargon-free, investor friendly language and high quality research , the site has a registered base of over one lakh customers. The number of trading members stands at over seven lakhs.

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 decision and to simplify the process of investing in stocks.

On April 17, 2002 Sharekhan launched Trade Tiger, a net based executable application that emulates the broker terminals along with most of other information relevant to Day Traders. This is for first time that a net based trading station of this caliber was offered to the traders.

Sharekhan’s ground network includes over 816 centers in 366 cities in India, of which 178 are fully-owned branches.

Sharekhan has always believed in investing in technology to build its business. The company has used some of the best-known names in the IT industry, like Sun Microsystems, Oracle, Microsoft, Cambridge Technologies, Nexgenix, Vignette, Verisign Financial Technologies India Ltd., Spider Software Pvt Ltd., to build its trading engine and content.

With legacy of more than 80 years in the stock markets, the SSKI Group ventured into institutional broking and corporate finance 18 years ago. Presently SSKI is one of the leading players in institutional broking and corporate finance activities. SSKI’s institutional broking arm accounts for 7% of the market for Foreign Institutional portfolio and 5% of all Domestic Institutional portfolio investment in the country. It has 60 institutional clients spread over India, Far East, UK, and US. Foreign Institutional Investors generate about 65% of the organization’s revenue, with a daily turnover of over US $ 2 million. The group has placed over US$ 1 million in private equity deals. Some of the clients include BPL, Cellular Holding, Gujarat Pipavav, Planet Asia, and Shopper’s stop. PRODUCTS OFFERED BY SHAREKHAN

1- Offline trading. 2- Online Trading. 3- Portfolio management services. 4- Commodities. 5- Mutual Fund. 6- IPO’s. 7- Insurance.

Founders- Shantilal, Savantilal, kantilal, Ishwarlal.

Management team- Tarun P. Shah (CEO) Shankar Vailya (Director-Operations) Jaideep Arora (Director-Product & Technology)

VISION To be the best retail broking brand in the Indian Stock Market .

MISSION To educate and empower the individual investor to make better investment decisions through quality advice and superior service

SSKI GROUP OF COMPANIES

• SSKI Investor Services Ltd (Share khan) • S.S. Kantilla Ishwarlal Securities • SSKI Corporate Finance • Idream Productions SERVICES OFFERED BY SHAREKHAN

Research Based Investment Advice

Investment and Training and Trading Services Seminars EQUITIES DERIVATIVES COMMODITIES

Technology Based Integrated Demat Investment Tools PMS Facility

Sharekhan offers the following:

Classic account

This is a user friendly product which allows the client to trade through the website, www.sharekhan.com and is suitable for the retail investor who is risk-averse and hence prefers to invest in stocks or who do not trade too frequently. Features

• Online trading account for investing in equity and derivatives via www.sharekhan.com. • Live and single terminal for NSE cash, NSE F&O and BSE. • Integration of online trading, and saving bank. • Instant cash transfer facility against purchase and sale of shares. • Instant order and trade confirmation by e-mail. • Streaming quotes (cash & derivatives). • Personalised market watch. • Single screen interface for cash and derivatives. • Provision to enter price trigger and view the same online in market watch.

Trade Tiger

It is an internet based software application that enables you to buy and sell in an instant cash, derivatives and commodity through single online trading terminal. It is ideal for active traders and jobbers who transact frequently during day’s session to capatalise on intra-day price movement.

Features

• Instant order execution and confirmation. • Single screen trading terminal for NSE Cash, NSE F&O, BSE, MCX & NCDEX. • Technical studies. • Multiple charting. • Real-time streaming quotes, tic-by-tic. • Market summary. • Hot keys similar to brokers terminal. • Alerts and reminders. • Back-up facility to place trades on direct phone lines. • Live market debts.

Brokerage: Intraday-0.05% Delivery-0.25% (Negotiable in both cases)

Exposure: Four times

Sharekhan has tie up with eleven banks for online fund transferring, i.e., HDFC, IDBI, CITI, OBC, INDUSIND, , , , ICICI, and Bank of India.

REASONS TO CHOOSE SHAREKHAN

EXPERIENCE

SSKI has more than eight decades of trust and credibility in the Indian stock market. Ever since it launched Sharekhan as its retail broking division in February 2000, it has been providing institutional-level research and broking services to individual investors.

TECHNOLOGY With our online trading account you can buy and sell shares in an instant from any PC with an internet connection. You will get access to our powerful online trading tools that will help you take complete control over your investment in shares.

ACCESSBILITY

Sharekhan provides ADVICE, EDUCATION, TOOLS AND EDUCATION services for investors. These services are accessible through our centers across the country over the internet as well as over the voice tool.

KNOWLEDGE

In a business where the right information at the right time can translate into direct profits, you get access to a wide range of information on your content-rich portal, Sharekhan. You will also get a useful set of knowledge based tools that will empower you to take informed decisions.

CONVENIENCE

You can call their Dial –N-Trade number to get investment advice and execute your transactions from anywhere in India.

INVESTMENT ADVICE

Sharekhan has dedicated research teams of more than 30 people for fundamental and technical research’s. Our analysts constantly track the pulse of the market an provide timely investment advice to you in the form of daily research emails, online chat, printed reports and SMS on your mobile phone.

BENEFITS

• Instant cash transfer. • Multiple bank option. • Personalized price and account alerts delivered instantly to your mobile phone and email address. • Live chat facility with relationship manager on Yahoo Messenger. • Buy or sell even single share. • Anytime ordering. 1.3 PROBLEMS OF THE ORGANISATION

• Its policies are not of consistent nature.

• Its server is very slow, especially when the market opens and half an hour before the close.

• Customer complaints are neglected most of the times.

• A single relationship manager has to manage a large number of customers which leads to too much of work load. As a result of this, it lacks efficiency in its work.

• Promises made are not always fully fulfilled.

• Most of the times does not try to maintain a long term relationship with customers.

• Withdrawal and deposit of money becomes difficult if you don’t have an account in bank with which sharekhan has its tie ups.

1.4 COMPETITIVE INFORMATION

Competitors profile

1.

Company Background:

Kotakstreet is the retail arm of Kotak Securities. Kotak Securities Limited is a Joint venture between Mahindra Bank and Goldman Sachs.

Online Account Types:

• Twin Advantage/Green channel: 2DP’s, Limit Against Shares

• Free Way: Flat Rs 999 cover Charge p.m., 0.03% per transaction

• High Trader: 6 times Exposure Cash & Derivates, Auto sq Off 2:55

Pricing of KOTAK:

• Account Opening: Rs 500

• Demat: Rs 22.5 p.m.

• Initial margin: Rs 5000 (compulsory) • Min Margin Retainable: Rs 1000

• Brokerage Slab Wise: Higher the volume, lower the brokerage. Even older customers (on 0.25% & 0.4%) have moved to the slab wise structure

Problems Of Kotakstreet:

• Rigid Account opening terms

• No Flexibility of A/c opening Charges (Rs 500) + Compulsory margin Rs 5000/- Account Opening free with Rs 10000 margin or Competitor Contract Note.

• No Flexibility in Leverage – Dependent On type Of Account (4 to 6 times only)

• No Flexibility In Brokerage Driven by slab structure.

• No Customization Of commercial terms.

• Restricted Access to Terminal like products

• KEAT Desktop restricted distribution on payment of Rs 500 Non- refundable.

Many Other Charges:

• Rs 22.5 p.m. towards DP AMC charges

• DP incoming Charges extra, 0.02%

• Rs 1000 as retained Margin To keep account active

• Rs 25 per Call after 20 calls for the month.

2.

Company Background:

Indiabulls is a retail financial services company present in 70 locations covering cities. It offers a full range of financial services and products ranging from Equities, Insurance.450 +Relationship managers who act as personal financial advisors.

Online Account Types:

• Signature account: Plain Vanilla Account With focus on Equity Analysis .The equities analysis is a paid service even for A/c holders.

• Power : Account With sophisticated trading tools, low commissions and priority access to R.M.

Pricing Of Accounts:

Signature Account:

• Account Opening: Rs 250 • Demat: Rs 200 If POA is Signed, No AMC • Initial Margin: NIL • Brokerage: Negotiable Power IndiaBulls: • Account Opening: Rs 750 • Demat: Rs 200 if POA is Signed, No AMC • Initial Margin: NIL • Brokerage: Negotiable

Problems Of IndiaBulls:

• POA for Clients Demat: Charges are levied to move shares from IB pool Account To Client DP account. 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.

• Paid Research Services: Access to a research even for IB trading account Holder is charged a minimum of Rs 500 a month.

• Margin Funding Box: 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:

Each RM is looked upon as a revenue generator and he gets a % on business generated from clients. This lead to over leveraged (Interest) &high Frequency (Brokerage) trading, which may not be in the best interest of the client. 3.

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 Types:

ICICI Direct E-invest account: Premium trading interface of ICICIDirect link is given to DBC partners and HNI’s. Plain Vanilla account with focus on 3 on 1 advantage. Differentiated in services within the account.

1.Cash on Spot 2. Margin

• Account Opening: Rs. 750 • Schemes: For short periods Rs. 750 is refundable against brokerage generated in a quarter. These schemes are introduced 3-4 times a year • Demat: Nil, 1st Year charges included in Account opening Plus a facility to open additional 4DP’s without first year AMC. • Initial Margin: Nil • Brokerage: All brokerage is inclusive of stamp duty and exclusive of other taxes. Slab wise brokerage ranges from 0.75% - 0.25% depending on volumes.

Problems Of ICICIDirect: • Poor online Interface: Slow website interface with no real-time quotes creates dissatisfaction among high frequency traders. • Margin Trading restriction: The margin trading system is available up to 2.45pm with outstanding net- positions under margin segment automatically squared off at any time between 2.45-3 pm.

• Morning Trades Issue: Being one of the websites with largest no. of hours order which are pushed in the morning creates a choking of orders to the exchange which causes delay of confirmation for new orders placed during the early morning trades

• Restriction of BTST: The sale of shares purchased is restricted to T+1 day and is not permitted on T+2 day.

• No leverage for Delivery trades: Delivery is restricted to the total money allocated into the trading account.

• Higher Brokerage rates with slabs: The delivery brokerage is pegged at 0.75% and trading at 0.10% each side, this makes it very unviable for customers dealing in large volumes.

• Restriction Of bank account: The choice of bank is restricted to ICICI Bank. • No Flexibility on Leverages on Intra-day trades: The leverage of 4 times is available for intra-day trades

SHAREKHAN. ICICIDIRECT HDFCSEC 5PAISA INDIAB COM . COM . COM . COM ULLS

A/C 750/- FOR 750/-(waive off 20550/- 750/- 420/- 700/- OPENING CLASSIC if trading is (20,000 as (EXISTING (fresher) CHARGES AND more than Rs. 1 margin) RELATION And 250/- 1000/- FOR lakh) SHIP) (Traders) SPEEDTRAD OR 799/- E

FREE (1ST FREE FOR 1ST 30 p.m. 500 p.a. 250/-P.A. NO DEMAT YEAR) YEAR AMC A/C AND 300/- AND 300/- P.A. CHARGES P.A. FROM 2ND FROM YEAR 2ND YEAR ONWARDS ONWARDS

2(CLASSIC Web based 5type(1.HMR Web based 2(TRADER Web TYPE OF & GATEWAY TERMINAL based ACCOUNT SPEEDTRAD A/C, HMR , E) VALUE A/C, INVESTOR HMR TERMINAL PRIVILEGE ) A/C, HMR HIGHTRADE R A/C, HMR FREEWAY A/C)

TRADING BOTH WEBSITE Both are WEBSITE BOTH WEBSI THROUGH Software TE WEBSITE 1. Keat OR SOFT- Desktop WARE 2. Keat Premium ICICIDIRECT HMRSTREET HDFCSEC 5PAISA INDIA SHAREKHAN . .COM .COM .COM .COM BULLS COM

NSE/BSE/ NSE/BSE/ NSE/ NSE NSE/ NSE/ DERIVA- NSE/BSE/ MUTUAL DERIVATIV DERIVA DERIVAT TIVES/ DERIVATIVES FUNDS/ ES/ TIVES/ IVES ARBIT- Derivatives MUTUAL ARBITR RAGE/ FUNDS AGE ON MUTUAL DELIVER FUNDS Y/MUTU AL FUNDS

SOFT- 500/-P.M. N.A. 500/- or 300 N.A. 1000/- N.A. WARE (NEGOTIABLE /-p.m. commitmen CHARGES ON (NEGOTIABL t of BROKERAGE) E ON brokerage VOLUME)

DAIL-N- UNLIMITED On 21st 15/- TO 25/- RM Local call RM TRADE call Rs 20/- FROM 21ST NUMBER charges NUMBE per call(P.M.) CALL PROVIDED R FOR PROVI TRADING DED FOR TRADI NG 0.05 % DEMAT NIL INCLUDING .04% OR RS. .04% or Rs. OR RS. 17/- TRANSAC- (THROUGH IN 25/- ON 25 minimum PER TION SHRAKHAN) BROKERAGE SELLING whichever of Rs. 20/- TRANS CHARGES whichever is higher per ACTIO is higher instruction N (ON (ON SELLING SELLIN ) G) TIE UP HDFC, IDBI, ICICIBANK HMR HDFC HDFC HDFC WITH CITI, OBC, ONLY MAHINDRA BANK Bank, BANK, BANKS INDUSIND, (COMPULSOR BANK ONLY ICICI ICICIB Centurion Y) CITI BANK (COMPULS Bank, ANK, bank of UTI BANK ORY) UTI Bank, ABNA Punjab, Axis HDFCBANK Citibank, MRO bank, Union (COMPULSI Global BANK, Bank of India, ON) Trust STANC ICICI, Yes Bank or HART Bank, Bank of Centurion BANK, India Bank CITIBA NK

SHAREKHA ICICIDIRECT HMR HDFCSEC 5PAISA INDIAB N.COM .COM STREET. .COM .COM ULLS COM

BUY Yes Yes But Yes, No Yes Yes TODAY Only On upto 75% SELL 127 Scrips shares TOMOR- of NSE value ROW

IPO Yes Yes Yes No Yes No ONLINE

SMS 100 P.M. Yes 100/- P.M. No No No ALERTS

Free 450 P.A. Free Free Free Paid RESEA- 100/- RCH P.M REPORTS

4 to 6 4 MINIMUM 4 TO 6.7 4 TIMES 4 TO 6 4 times times(onli TIMES MARGIN TIMES TIMES ne) ONWA EXPO- 10 RDS SURE times(Offl ine) 5000/-,1,00,0 500 MINIMUM Nil 5000/- 00/-or 5000/- 5000/- BLOCK 5,00,000/- ED BY MARGIN (according to THE account) SYSTEM 1.5 S.W.O.T. ANALYSIS OF THE ORGANISATION

Strengths

• It charges low and negotiable brokerage.

• It has been able to maintain high level of accuracy in its terminal, leaving all the organizations behind.

• Most experienced organization and possess high level of technology.

• Instant cash transformation and tie ups with eleven banks; too much more than its competitors.

• Is the only organization in this business which has its own research and development centre.

• Good brand image helps to strengthen the customer base.

Weaknesses

• Most of the people do not know about Sharekhan and its features.

• It takes 7 to 10 days to open an account.

• Customer care is not very efficient in its work.

• Some of the customers do not get the service promised to them. Opportunities

• They can provide new schemes to attract new customers.

• Still a large customer base is available.

• They can change the mind set of customer towards the risk in the market.

Threats

• Aggressive promotional Strategies by close competitors may hamper Sharekhan’s acceptance by new clients.

• Downturn or volatility of securities and commodities market.

• Slowdown of Indian and global economy

• Change in government and economic policies including personal taxation may affect our volume and fund mobilisation.

• New competitors

• SEBI guidelines CHAPTER 2:- Objective & Methodology 2.1 SIGNIFICANCE

• This project is important as it helps to have an understanding of the financial jungle.

• It provides knowledge about various aspects of the share market.

• It helps to have a better understanding of the offline trading and how it is beneficial to us.

• This project also conveys that which companies are in this business and which is the best.

• It helps to provide information about preferences of the consumers towards various aspects of trading and share market. 2.2 USEFULNESS OF THE STUDY

• Helps to have sale experience

• Helps to deal with different customers

• Helps to overcome the objections of the customers

• Helps to understand the problems of agents in a broader prospect

• It provides a platform where managerial role can be played effectively and efficiently.

2.3 Objectives of the study

2.4. SCOPE OF THE STUDY • To know the customer needs and expectations.

• To find out the factors which customers take into consideration in opening an account.

• To know that up to what extent a customer is satisfied with the services of the company.

• To know the customer complaints and their redressal.

2.5 METHODOLOGY The methodology adopted in conducting this study was quite simple. First there was collection of data from various sources including personal interview then after scanning and proper analysing and interpreting the information available on hand a final report was prepared.

Method Of Data Collection The data for this study was collected from both primary and secondary sources.

Primary Data Collection: Primary data is the data, which has not been published or used by someone else earlier. It is the data which is collected for the first time and thus happen to be original in character. For e.g. Questionnaires.

Secondary Data Collection: Secondary data is the data that has been collected from various sources involving company documents, books, journal, and magazines, Internet etc. It is the second hand information.

A questionnaire has been used for data collection which is primary source of data, as well as, secondary data is being used which includes information already available on site.

DATA SOURCE

POPULATION: - In statistics a statistical population is a set of entities concerning which statistical inferences are to be drawn, often based on a random sample taken from the population. For example, if we were interested in generalization about crows, then we would describe the set of crows that is of interest. Notice that if we choose a population like all crows we will be limited to observing crows that exist now or will exist in the future.

Sample size: -

The number of population items selected when a sample is drawn from a population is known as sample size. . Total sample size of 350 people.

TYPES OF DATA USED: -

Primary Data: -

It is collected directly from people and organization via questionnaires or surveys before being analyzed to reach conclusions concerning the issues covered in the questionnaires or survey.

Various Sources: -

1. Data collection method: Questionnaire

2. Location: Delhi

3. Research duration: 2 months

4. Respondents: 350 people

Secondary Data: -

Secondary Data – collected by others. Various Sources: -

• Newspaper. • Internet. • Books.

Location- Delhi. CHAPTER 3:- CONCEPTUAL DISCUSSION

3.1 MARKETING STRATEGIES Tele -Calling: - The company uses the tele -calling/ phone calling to reach the customer. This is the most important technique to save time and giving demo of the companies’ 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.  LMS: It is leads management system which means leads are generated by the customers who want to purchase the product of the company. Companies provide 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 have 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 these companies 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 crowdied places like near main markets, cinemas, hotels, ATM, etc., where people come in good numbers.

* Direct Marketing Share khan executive’s reach the customer by fixing appointments with the interested ones and describe them the details of the product. Executive gives 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 products being launched. Sharekhan uses 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 funds, 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 (customer) behalf. After satisfying customer executives ask their references that not only increase the awareness but also increase the goodwill 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. CHAPTER 4:- DATA ANALYSIS Q.1 Where do you invest your money?

Bank Deposit Share Market Mutual Fund Postal Saving

Fig. 1.1

This figure shows investment made by the respondents in different fields. It can be clearly seen that respondents prefer bank deposit more, as followed by share market, mutual fund and postal savings. Q.2 How much return do you expect on your investment?

0-5% 5-10% 10-15% 15-20%

Fig. 1.2

This figure shows that most of the respondents expect more and more returns on their investment. So we can see that investors main motive is to earn more and more money. Q.3 Which type of investment do you prefer?

Short term Long term

Fig. 1.3

The above figure shows that most of the respondents prefer to invest for a longer period. A very few of them believe in short term investment. Q.4 What is your portfolio size?

0-10,000 10,000-20,000 20,000-30,000 More than 30,000

Fig 1.4

This figure shows that most respondents like to invest more if they have enough money to invest. A very few of them fall in the category of 0-10,000 and 10,000-20,000. Q.5 Are you aware of the brand name Sharekhan?

Yes No

Fig 1.5

This pie chart shows that Sharekhan has a good amount of brand awareness. The company to increase its market share over its competitors should further leverage its brand image. Q.6 What type of trading you prefer?

Online Offline

Fig 1.6

This figure shows that nearly all the respondents prefer online trading. They perceive it as far better form of trading than offline trading.

Q.7 How often do you trade?

Daily Weekly Monthly Quaterly

Fig 1.7

This figure shows that most respondents like to trade on a daily basis. They want to earn income on a daily basis and also want to be in constant touch with share market. Q.8 Which broking house you prefer most?

Sharekhan Kotak ICICIDirect Religare Any Other

Fig 1.8

This figure shows that Sharekhan, Religare, ICICIDirect almost share the same amount of preferences as compared to other broking firms. CHAPTER 5:- FINDINGS AND RECOMMENDATIONS FINDINGS

1. From the survey it was found that most respondents invest either in banks or in share market.

2. It can be clearly seen that most respondents expect maximum return on their investment.

3. From the survey it was found that most respondents prefer long term investment than short term investment.

4. Most respondents do not invest or do not like to invest much amount into share market.

5. A large number of respondents are aware of the brand Sharekhan.

6. It can also be seen that nearly all the respondents prefer online trading.

7. From the survey it was found that most respondents like to trade on a daily basis.

8. It can also be seen that Sharekhan, Religare, ICICIDirect almost share the same amount of preferences as compared to other broking firms. RECOMMENDATIONS

1. To identify regions where promotions are required. Share Khan lacks visibility in northern region where as it is a well known name in western region. Even then, its promotional campaign focuses on western region where as northern region is still waiting for promotional campaigns.

2. Try to reduce cost, so that benefits can be passed on to customers. Senior managers at Share Khan keep on telling that it is difficult to reduce cost, because of services we provide. But the fact is, India being a price sensitive market, people at times go for monetary benefits rather than for long term non- monetary benefits.

3. If charges can’t be reduced because of costs involved, make the services customized, so that services are provided to only those customers who are willing to pay the price for services they are getting and let the other customers enjoy costs benefits without getting services.

4. Concept of margin funding should be introduced, as more and more people are asking for it.

5. Share Khan should contact with their clients regularly for knowing the problems faced by them. This will help Share Khan in providing best services to customers. This will result in additional customer base by getting further references from satisfied clients.

6. To launch slab wise brokerage structure as Share Khan has fixed brokerage structure which can not be negotiated. But other players in the market offer launch slab wise brokerage structure which motivate customers to increase their volumes. That’s why heavy investors do not open their account with Share Khan

7. It must also tap the rural sector where penetration is poor; it can be made possible by better offer with its product i.e. margin level, loan on low percentage.

8. It must also improve its brand awareness through shelling out more expenditure on advertisement and other promotional tools. ANNEXURE QUESTIONNAIRE

Name:

Address:

Contact Number:

______

Q.1 Where do you invest your money?

a) Bank Deposit b) Share Market

c) Mutual Fund d) Postal Savings

Q.2 How much return do you expect on your investment?

a) 0-5% b) 5-10%

c) 10-15% d) 15-20%

Q.3 Which type of investment do you prefer?

a) Short term b) Long term

Q.4 What is your portfolio size?

a) 0-10,000 b) 10,000-20,000

c) 20,000-30,000 d) More than 30,000 Q.5 Are you aware of the brand name Sharekhan?

a) Yes b) No

Q.6 What type of trading you prefer?

a) Online b) Offline

Q.7 How often do you trade?

a) Daily b) Weekly

c) Monthly d) Yearly

Q.8 Which broking house you prefer most?

a) Sharekhan b) Kotak

c) ICICIDirect d) Religare

e) Any Other BIBLOGRAPHY

Books and printed material :

. Training Kit Provided by the Sharekhan.

. Indian financial system by M.Y KHAN

. Marketing Research by C.R.KOTHARI

URLs:

. www.indiainfoline.com . www.investopedia.com

. www. nse-india.com

. www.bseindia.com

. www.moneycontrol.com

. www.wikipedia.com

. www.google.com

. www.icicidirect.com

. www.religare.in . www.sharekhan.com