UNIVERSITY OF MUMBAI PROJECT REPORT ON COMPARATIVE ANALYSIS OF STOCK BROKERS WITH RESPECT TO SHAREKHAN PVT LTD.

SUBMITTED BY, PANKAJ KOTHARI ROLL NO. - 139 MMS (SEMESTER IV) FINANCE

UNDER THE GUIDANCE OF, PROF. DR. C.R.S PILLAI

ACADEMIC YEAR: 2011 2013

Certificate of Approval

This is to certify that the summer internship project entitled COMPARATIVE ANALYSIS OF STOCK BROKERS WITH RESPECT TO SHAREKHAN PVT LTDsubmitted byPANKAJ KOTHARI, a student of Pillais Institute of Management Studies and Research, as a part of the curriculum of Masters of Management Studies (MMS) has been approved.

___________________

_______________________

Prof. C.R.S PILLAI

Director PIMSR

Students Declaration

I hereby declare that this report submitted in partial fulfillment of the requirement of the award for the Degree of Master of Management Studies (MMS) to PIMSR College is my original work and not submitted for award of any other degree or diploma fellowship or for similar titles or prizes.

I further certify that I have no objection and grant the rights to PIMSR College to publish any chapter/ project if they deem fit in journals/Magazines and newspapers etc without my permission.

Place : Mumbai Date: 20th march, 2013

Name

: PANKAJ KOTHARI

Roll No : 139 Class : MMS (Finance)

(Signature of the student)

ACKNOWLEDGEMENT

At the outset, I sincerely wish to express my gratitude to all those who gave me the opportunity to work on this project

I forward my sincere thanks to my project guide Prof. Dr.C.R.S PILLAI for encouraging me to take inititatives while doing my project and giving me full co-operation in completing my project.

I also express my gratitude towards all the people I met during this project for sharing their valuable knowledge with me for completion of the project.

My acknowledgement remain incomplete without thanking my family members, colleagues and god.

PANKAJ KOTHARI MMS-PIMSR

DECLARATION I hereby declare that this report submitted in partial fulfillment of the requirement of the award for the Degree of Master of Management Studies (MMS) to PIMSR College is my original work and not submitted for award of any other degree or diploma fellowship or for similar titles or prizes.

I further certify that I have no objection and grant the rights to PIMSR College to publish any chapter/ project if they deem fit in journals/Magazines and newspapers etc without my permission.

Place : Mumbai Date: 20th march, 2013

Name : PANKAJ KOTHARI Roll No : 139 Class : MMS (Finance)

(Signature of the student)

CONTENTS 1. ACKNOWLEDGEMENT 2. INTRODUCTION 10 7

 Introduction to stock exchange Introduction of the company 3. COMPANY PROFILE 4. REVIEW OF LITERATURE 5. RESEARCH METHODOLOGY Objective of study Type of research Sample design Size of sample Sources of data collection 6. COMPARATIVE ANALYSIS 7. FINDING & ANALYSIS 8. SUGGESTIONS 9. LIMITATIONS 10. CONCLUSION 11. APPENDIX(Questionnaire) 12. BIBLIOGRAPHY PREFACE A good broker system must be able to cope with an extremely complex and dynamic environment. 60 61 62 63 67 46 50 18 37 40

The microstructure of the stock market in which brokers work is highly dynamic and volatile. Many stocks are available to be bought and sold, each exhibiting its own patterns and characteristics that are highly unpredictable. With so many options and considerations that need to be taken into account, it is an extremely arduous task for a broker to investigate aspects of the stock market and consistently provide effective advice to their clients.

Thus, brokers perform their day-to-day tasks with the aid of a broker system. Such a system should provide tools for interacting with exchanges and performing analysis. As a consequence, these broker systems are quite large and complicated by themselves.

This research aims is to analysis Stock broker on the basis of their services, products, growth, and their subsidiaries. Because Stockbrokers are one of the main participants in stock exchanges worldwide, they often act as an agent for their clients, making trades on their behalf. They also act as advisors, providing suggestions to their clients on what stocks to buy and sell.

ACKNOWLEDGEMENT

Preservation, inspiration and motivation have always played a key role in the success of any venture. In the present world of competition and success, training is like a bridge between 9

theoretical and practical working; willingly I prepared this particular Project. First of all I would like to thank the supreme power, the almighty god, who is the one who has always guided me to work on the right path of my life. I would like to thank Mr. Gurpreet Singh Kohli for granting me permission to undertake the training in their esteemed organization.

I express my sincere thanks to Mr. Harpreet Singh (Head of department), Mr. Harpal Singh Saini (Co-ordinator) & others faculty members of M.B.A. department, for the valuable

suggestion and making this project a real successful.

I also thanks to Mr. Atul Gauri (Team Leader), Mr. Dharmender Kumar (software guide) for their time-to-time guidance and support in completing the project. I also thank the other staff of SHAREKHAN who devoted their valuable time by helping me to complete my project. Last but not least, my sincere thanks to my parents and friends who directly or indirectly helped me to bring this project into the final shape.

VIJAY RANA DATE:-

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Executive Summary There is growing competition between brokerage firms in post reform India. 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 suggest 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. Through this report we were also able to understand, what are our Companys (Sharekhan 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.

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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 Chandigarh, Gurgaon, Jaipur etc. My research is based on the residents of Chandigarh 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.

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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 bank of Bombay 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

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interest of native share and stock brokers and providing a hall or building for the use of the members of such association.

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.

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1.) Stockbrokers 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 brokers as Total no. of sub-brokers as on on 31.03.2008 31.03.2008

9000

24,000

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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 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.

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

INTRODUCTION OF THE COMPANY Sharekhan is one of the leading retail brokerage of Citi 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. Sharekhan offers its customers a wide range of equity related services including trade execution on BSE, NSE, Derivatives, depository services, online trading, investment advice etc.

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. SSKIs 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 organizations revenue, with a daily turnover of over US$ 2 million.

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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.

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

On April 17, 2002 Sharekhan 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 SpeedTrade has become a de facto standard for the Day Trading community over the net. Sharekhans ground network includes over 700+ Shareshops in 130+ cities in India.

The firms 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 Lacs customers. The number of trading members currently stands at over 7 Lacs. While online trading currently accounts for just over 5 per cent of the daily trading in stocks in India, Sharekhan 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 Shoppers Stop. Finally, Sharekhan shifted hands and Citi venture get holds on it. 18

PRODUCTS OFFERED BY SHAREKHAN

1- Equity Trading Platform (Online/Offline). 2- Commodities Trading Platform (Online/Offline). 3- Portfolio Management Service. 4- Mutual Fund Advisory and Distribution. 5- Insurance Distribution.

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 Sharekhan as its retail broking division in February 2000, it has been providing institutional-level research and broking services to individual investors.

Technology 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 19

Sharekhan 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 Sharekhans 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, demat and other queries. Their customer service can be contacted via a toll-free number, email or live chat on www.sharekhan.com.

Investment Advice Sharekhan 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.Benefits Free Depository A/c Instant Cash Tranfer 20

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 acess to your trading account. Personalised 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.

Sharekhan 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 Online trading account for investing in Equity and Derivatives via www.sharekhan.com 21

Live Terminal and Single terminal for NSE Cash, NSE F&O & BSE. Integration of On-line trading, Saving Bank and Demat Account. Instant cash transfer facility against purchase & sale of shares. Competitive transaction charges. Instant order and trade confirmation by E-mail. Streaming Quotes (Cash & Derivatives). Personalized market watch. Single screen interface for Cash and derivatives and more. Provision to enter price trigger and view the same online in market watch.

SPEEDTRADE SPEEDTRADE 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 days session to capitalize on intra-day price movement.

Features Instant order Execution and Confirmation. Single screen trading terminal for NSE Cash, NSE F&O & BSE. Technical Studies. Multiple Charting. Real-time streaming quotes, tic-by-tic charts. Market summary (Cost traded scrip, highest clue etc.) Hot keys similar to brokers terminal. Alerts and reminders.

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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 sharekhans 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 Sharekhan had introduced ShareMobile, A mobile based software where one can watch Stock Prices, Intra Day Charts, Reasearch & 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 23

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. Prepaid Classic Account Prepaid Speed trade Account : - Rs. 2000 : - 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, Sundaram, HDFC, DSP Merrill Lynch, PRINCIPAL and TATA with Sharekhan.

Zero Balance ICICI Saving Account

Sharekhan had tied-up with ICICI bank for Zero Balance Account for Sharekhans Clients. Now their customers can have a Zero Balance Saving Account with ICICI Bank after your demat Account creation with Sharekhan. CHARGE STRUCTURE Fee Structure for General Individuals: -

Charge Account Opening Monthly Commitment

Classic Account Rs. NIL Rs. NIL

Speed Trade Account Rs. NIL Rs. NIL

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Brokerage

Intra-day 0.05 % Delivery - 0.50 %

Intra-day - 0.05% Delivery - 0.50%

* Taxes as per govt.

Depository Charges

Account Opening Charges Annual Maintenance Charges

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

EXPOSURE: 4 TO 6.7 TIMES (ON MARGIN MONEY) MAJOR PLAYERS IN THE REGION 1. Karvy 2. Indiainfoline 3. ICICI direct 4. HDFC security 5. Indiabulls

KARVY is a premier integrated financial services provider, and ranked among the top five in the country in all its business segments, services over 16 million individual investors in various capacities, and provides investor services to over 300 corporate, comprising the who is who of 25

Corporate India. Karvy has a professional management team and ranks among the best in technology, operations and research of various industrial segments.

History of Karvy :- The birth of Karvy was on a modest scale in 1981. It began with the vision and enterprise of a small group of practicing Chartered Accountants who founded the flagship company, Karvy Consultants Limited. They started with consulting and financial accounting automation and carved inroads into the field of registry and share accounting by 1985. Since then, karvy utilized its experience and superlative expertise to go from strength to strength, to better their services, to innovate, diversify and in the process, evolved as one of Indias premier integrated financial service enterprise. PRODUCT AND SERVICES OF KARVY GROUP 1. Karvy comtrade. 2. Karvy consultant ltd. 3. Karvy merchant banking. 4. Karvy global services ltd.

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ICICI DIRECT ICICI Web Trade Limited (IWTL) maintains www.icicidirect.com (herein after referred to as the "Website") whereas IWTL is an affiliate of ICICI Bank Limited and the Website is owned by ICICI Bank Limited. IWTL has launched and established an online trading service on the Website. PRODUCTS AND SERVICES OF ICICI DIRECT 1. Investing in Mutual funds 2. Personal Finance 3. Customer Service Features 4. IPOs 5. Margin Trading 6. Margin PLUS Trading 7. Call Trade 8. Trading on NSE/BSE 9. Trade in derivatives

INDIAINFOLINE SECURITY PRIVATE LTD India Infoline.com Securities Pvt. Ltd. is a wholly owned subsidiary of India Infoline.com Ltd and is the stock broking arm of India Infoline.com. The subsidiary was formed to comply with regulatory guidelines. www.5paisa.com is a focused website for online stock market trading. 27

5paisa.com is a trade name owned by the India Infoline.com group. IILSPL has applied for trading membership of the BSE under Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) Rules 1992. IILSPL is in the business of providing broking services online via the Internet ("E-broking Services") and has been permitted by the NSE by way of registration permission no: NSEIL/CMO/INET/1103/2000 dated 03/July/2000, and will be applying for permission to the BSE, to provide E-broking Services to its clients. IILSPL is a TRADING MEMBER of the National Stock Exchange of India.

PRODUCT OFFERED BY IILSPL Stock market:-IILSPL deals in stock market by trading in equity and derivatives. Personal finance:- It Deals In Mutual Fund And Insurance. Online Trading :- It provides services in stock and commodity trading (through Internet).

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HDFC SECURITY HDFC security is the subsidiary of HDFC (Housing Development Financial Corporation). www.hdfcsec.com would have an exclusive discretion to decide the customers who would be entitled to its online investing services. www.hdfcsec.com also reserves the right to decide on the criteria based on which customers would be chosen to participate in these services .The present web site (www.hdfcsec.com) contains features of services that they offer/propose to offer in due course. The launch of new services is subject to the clearance of the regulators. i.e. SEBI, NSE and BSE.

PRODUCT OFFERED BY HDFC SECURITY

Online trading for Resident & Non Resident Indians. Cash-n-Carry on both NSE and BSE. Day trading on both NSE and BSE. Trade on Futures & Options on the NSE. Online IPO's. Telephone-based Broking (Equity & Derivatives).

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INDIABULLS SECURITIES LIMITED Indiabulls Securities Limited was incorporated as GPF Securities Private Limited on June 9, 1995. The name of the company was changed to Orbis Securities Private Limited on December 15, 1995 to change the profile of the company and subsequently due to the conversion of the company into a public limited company; the name was further changed to Orbis Securities Limited on January 5, 2004. The name of the company was again changed to Indiabulls Securities Limited on February 16, 2004 so as to capitalize on the brand image of the term Indiabulls in the company name. ISL is a corporate member of capital market & derivative segment of The National Stock Exchange of India Ltd. At present, ISL accounts for approximately 3% of the total daily turnover of the Exchange with 32,359 client relationships and 70 branches spread across the country as of April 30, 2004.

INDIABULLS CREDIT SERVICES LIMITED:- Indiabulls Credit Services has been valued at Rs. 263 crore with the Rs. 87.6-crore infusion. Indiabulls Credit Services Ltd, the recently formed subsidiary of broking firm, Indiabulls Financial Services Ltd. Faralon Capital, a San Franciscobased private equity fund, and its affiliates have acquired 33.3 per cent stake for Rs 87.6 crore. INDIABULLS REAL ESTATE:- Indiabulls through its group companies has entered Indian Real Estate business in 2005. It is currently evaluating several large-scale projects worth several hundred million dollars. Indiabulls became the first company to bring FDI in Indian Real Estate through a JV with Farallon Capital Management, a respected US based investment firm.

PRODUCT OFFERED BY INDIA BULLS Equity & Debt Stock Broking Insurance

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Commodity trading Depository Services Derivatives Broking Services Equity Research Services Mutual Fund Distribution IPO Distribution

REVIEW OF LITERATURE According to SEBI, Professional Rating of market intermediaries, as a concept, is a matter of debate and discussions. The need for rating is felt not only from the point of view of greater disclosure requirements for investors interests, considering the important role such intermediaries play, being an interface between investors and exchanges but also from the point of view of measuring the adequacy of systems and controls to meet internal as well as external compliance requirements. So that need for Intermediaries Rating services (Brokers), In view of the developments that are taking place in the capital markets, the need to constantly upgrade and improve systems and procedures in operation as well as skill sets has gained considerable importance. Besides compliance with regulatory requirements both in letter and spirit has assumed significance so as to mitigate risk and ensure adequate protection of investors interest. And Rating objectives / benefits are rated entity would be in a position to brand its image and capitalize the same for generating more business. In a nutshell, the product may accrue significant benefits to all stakeholders including the investors, stock brokers themselves, the 31

regulator and others who will benefit from the transparency and the consequential focus on efficiency.

According to SEBI and Intermediaries Regulation and Supervision Department, different factors are consider for rating process Organization structure, Policy on Investors interest, Risk Management Policy and System, Organization process and procedures, Management policy on compliance, Financials, History/Background, Firms positioning.

According to Michal Parness, Founder & CEO Investors dont Make Money in the Stock Market. One reason the institutions make so much money is that they are trading. They make money every time you buy or sell. They make money whether you win or lose. That means that when youre investing, youre basically just sitting there. Youre not going anywhere. Youre not making money as an investor. Trading the Trend: The Only Way to Make Money in the Market If you dont know this already, Trend Trading means trading trends based on human emotions. Not lagging indicators. Not complex statistical analysis and not Ph.D. level mathematical equations. With trend trading, you look for market movement. That could mean stocks that are going to move up or down during the course of a day (intraday). Youll play the gaps up and down, often several days a week. The Trend trading means being aware and taking advantage of trends like the run-ups that happen around earning sessions. These are trends that have worked time and time again in the market. They consistently yield results.

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RESEARCH METHODOLOGY 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:-

PRIMARY OBJECTIVE: -How Sharekhan Ltd is best services providers as a stock broker in the Tricity region. SECONDARY OBJECTIVE: 1. To know about the awareness towards stock brokers and share market. 2. To study about the competitive position of Sharekhan Ltd in Competitive Market. 3. To study about the effectiveness & efficiency of Sharekhan Ltd in relation to its competitors 4. To study about whether people are satisfied with Sharekhan Services & Management System or not

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5. To study about the difficulties faced by persons while Trading in Sharekhan. 6. To study about the need of improvement in existing Trading system.

TYPES OF RESEARCH On the basis of theoretical study a research has many types. All of these are distributed on the nature of research. Some of these are like 1. Descriptive and Analytical 2. Qualitative and Quantitative 3. Conceptual and empirical 4. Applied and fundamental 5. One time research Our research is based on Descriptive, Qualitative and Quantitative research.

Descriptive Research:- Descriptive research includes surveys and fact finding enquires of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. Researcher has no control over the variables of this type of research.

Qualitative Research:- In our research we need comparison between different stock brokers. So this based on all qualitative data. In short, Qualitative research is especially important in the behavioral sciences where the aim is to discover the underline motives of human behavior.

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Through such research we can analyses various factors which motivate to people to behave in a particular manner or which make people like or dislike a particular thing.

Quantitative research:- Quantitative research is based on the measurement of quantity or amount. It is applicable to phenomena that can be expressed in terms of quantity. So we can use it in our research for collection of all the numerical data.

SAMPLE DESIGN A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure the researcher would adopt in selecting item for the sample Generally Sample designs are two types 1. PROBABILITY RESEARCH DESIGN 2. NON PROBABILITY RESEARCH DESIGN We used the probability research design.

SAMPLING UNITS Sampling unit may be a geographical one, such as state, district, village etc. The researcher will have to decide one or more of such units that he has to select for his study. In my research study Chandigarh as a sampling unit. 35

SIZE OF SAMPLE This refers to the number of items to be selected from the universe to constitute a sample In our research sample size is 100. But we also study the 5 stock broker companies related to security & commodity market like India-infoline, ICICI direct, HDFC securities, Karvy consultant ltd. for the appropriate collection of the information.

SOURES 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 2. Secondary Data. 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.

Survey Method: - Survey refers to the method of securing information concerning phenomena under study from all or selected number of respondents of the concerned area. In a survey the

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investigator examines those phenomena which exist in the universe independent of his action. We used the Scheduling Method.

Scheduling: - In this method the enumerators along with schedules, go to respondents, put to them the questions from the Performa in the order the questions are listed and recorded the replies in the space meant for the same in the Performa.

COMPARATIVE ANALYSIS After the whole study, we find out the following results: Results on the Basis of charges There are the two type of the transaction:1. Intra-day based 2. Delivery based

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All the figures are in paisa/100 rupees. Comment:- According to the survey HDFC securities charge maximum brokerage as compare to others whereas India Infoline Ltd. charge only 0.20 paisa on maximum investment.

Results On the basis of Account opening charges HDFC securities ltd:- Account opening charges w.e.f. April 2005 are as follows:- Rs.749, if the customer has an existing relationship with HDFC

Sharekhan ltd:- There is no ACCOUNT OPENING CHARGES but require margin money of Rs 5000 for trading purposes.

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ICICI direct:- A one-time charge of Rs. 750 at the time of account opening will be charged. You may later upgrade your Invest account to an ICICI direct.com share trading account when you desire to trade in equity. India Infoline:- There is a nominal charge of Rs. 500 only towards stamp duty, legal and processing fees for opening the account. This includes the registration and account opening charges. Bank and Depository Participant (DP) account opening charges, if applicable, are payable separately.

KARVY consultants ltd:- Account Opening Charges Are 452 But now SEBI banned on opening of new demat account of Karvy.

Indiabulls:- Account opening charges are Rs. 900. There is no AMC and no margin money is required.

Comment:- India Bulls charge maximum account opening charges but there are no such charges in Sharekhan pvt. Ltd.

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Results on the basis of customer preferences 1. According to survey 70 % peoples are satisfied with Sharekhan Ltd because of their RMs facility and power of Sharekhan Ltd software. 2. According to survey, Sharekhan Ltd open new branches for individually handle to their customer, but in ICICI direct, HDFC security there is no separate offices for this .So people prefer Sharekhan Ltd.

Results On The Basis Of Facilities Basis of Sharekhan difference Ltd. Share trading Yes Karvy India Infoline Yes ICICI direct Yes Indiabulls HDFC

Yes

Yes

Yes

Commodity trading

Yes

Yes

Yes

Yes

Yes

Yes

d-mat opening rights

Yes

No

Yes

Yes

Yes

No

Karvy and HDFC securities are not providing complete range of trading facilities. FINDINGS & ANALYSIS 1) Do you know about investment options available?

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KNOWLEDGE Yes No TOTAL

%AGE 80% 20% 100

COMMENT Only 80% people knows the exact meaning of investment. Because of remaining 20% take his/her residential property as an investment. According to law purpose this is not an investment because of it is not create any profit for the owner.

2) Most preferable investment scenario.

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INVESTMENT SCENARIO

%AGE

Banks Derivatives & securities market Insurance Bonds Real estate Others TOTAL

24% 28%

4% 20% 20% 4% 100

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COMMENT Today scenario is changed so that most area covered by the derivative and securities market. It is 28% of the total population.

3) What is the basic purpose of your investment?

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INVESTMENT PURPOSE Liquidity Returns Capital appreciation Tax benefits Risk covering Others TOTAL

PERCENTAGE

30% 25% 10%

20% 5% 10% 100

COMMENT:- 75% people are interested in liquidity, returns and tax benefits. And remaining 25% are interested in capital appreciations, risk covering, and others. 4) Most important things you take into your mind while making investments? %AGE

FACTOR

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Risk Returns Both TOTAL

8% 17% 75% 100

COMMENT 75% people are considered the both factors risk as well as returns but, only 25% considered the risk or returns factor. 5) Awareness related to security markets KNOWLEDGE Complete Partial PERCENTAGE 8% 75%

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Nil TOTAL

17% 100

COMMENT On that basis, we conclude that 17% people know nothing about the securities investments and 75% people have partial knowledge about it, so, some promotional activities are required for increasing the awareness about security market. 6) Do you have any de-mat & trading account? PERCENTAGE 60% 40% 100%

ACCOUNTS Yes No TOTAL

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COMMENT Only 75% respondents have de-mat and trading account and remaining 25% says no because they dont know why shares move up and down.

7) In which company you have d-mat and trading account? COMPANY SHAREKHAN INDIAINFOLINE ICICI DIRECT INDIA BULLS PERCENTAGE 38% 20% 14% 12%

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KARVY Others TOTAL

9% 7% 100

COMMENT In Sharekhan Ltd 38% respondents have de-mat & trading account because of better services and no annual maintenance and other charges.

8) Specify the reason of satisfaction with the current broking house. SATISFACTION PERCENTAGE

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Operating expenses Services Brokerage TOTAL

18% 25% 57% 100

FINDINGS According to the survey most of the customers of Sharekhan Ltd says that it is pocket friendly. Coming to faith 70% say Sharekhan Ltd is better than others stock brokers due to customers satisfaction. Lack of promotional activities undertaken by Sharekhan securities Ltd. in Chandigarh Region. 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. 49

Commodity market is less preferred by the investors. People want to invest their money in the security market but they havent the proper knowledge.

People are not aware of hedging in stock market. People pay more emphasis on brokerage than service provided by brokerage houses.

SUGGESTIONS 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 can 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.

LIMITATIONS

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 As only CHANDIGARH dealt in survey so it does not represent the view of the total Indian market. Size of the research may not be substantial. There was lack of time on the part of respondents. The survey was carried through questionnaire and the questions were based on perception. There may be biasness in information by market participant. Complete data was not available due to company privacy and secrecy.

CONCLUSION On the basis of the study it is found that Sharekhan Ltd is better services provider than the other stockbrokers because of their timely research and personalized advice on what stocks to buy and sell. Sharekhan Ltd. provide the facility of Trade tiger as well as relationship manager facility for encouragement and protect the interest of the investors. It also provides the information through the internet and mobile alerts that what IPOs are coming in the market and it also provides its research on the future prospect of the IPO.

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

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

APPENDIX QUESTIONNAIRE DATE:

NAME OCCUPATION AGE CONTACT NO.

1) Do you know about Investment options available? a) Yes b) No

2) Do you know about the different types of investment alternatives? 52

a) Insurance & mutual funds c) Real estate e) Commodity

b) Banks d) Share market f) Others

3) What is the basic purpose of your investment? a) Liquidity c) Capital appreciation e) Tax benefits b) Returns d) Risk covering

4) What are the most important things you take into account, while making any investment? a) Risk b) Returns c) Both

5) Do you have any knowledge of share markets? a) Partial b) Complete c) Nil

6) Do you have any D-mat & Trading account? a) Yes b) No

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7) In which company you have D-mat & Trading account? a) Sharekhan Ltd c) Indiainfoline e) Indiabulls g) Others b) Karvy d) ICICI direct f) HDFC securities

8) Are you satisfied with you present broking company? a) Yes b) No

9) What is the reason? Please specify. a) Services _______________________________________ b) Brokerage _____________________________________ c) Operating expenses ______________________________ d) Others ________________________________________

10) What is your trading exchange preference? a) NSE c) MCX b) BSE d) NCDEX

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12) Do you know about Sharekhan Ltd? a) Yes b) No

Suggestion:-

BIBLIOGRAPHY Books: BERI G C. MARKETING RESEARCH NEW DELHI, TATA Mc GRAW-HILL PUBLISHING COMPANY LIMITED.

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KOTHARI RESEARCH METHODOLOGY NEW DELHI, VIKAS PUBLISHING HOUSE PVT.LTD.1978.

GOYAL, DR.ALOK, FINANCIAL MARKET OPERATION NEW DELHI, V.K. (INDIA) ENTERPRISES .

Magazines: VALUELINE (SHAREKHAN MONTHLY RESEARCH MAGAZINE) CAPITAL MARKET (5PASISA.COM), NEW DELHI. THE FINAPOILS (YOUR PERSONAL FINANCE ADVISOR FROM KARVY).

Internet: http://WWW.MONEYCONTROL.COM http://WWW.CAPITALINE.COM http://WWW.SHAREKHAN LTD.COM

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http://WWW.INDIAINFOLINE.COM http://WWW.ICICIDIRECT.COM http://WWW.HDFCSECURITY.COM http://WWW.KARVY.COM

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