COMPARATIVE ANALYSIS OF KOTAK SECURITIES WITH

OTHER STOCK BROKING FIRM

AND
STUDY OF CONSUMER BEHAVIOR TOWARDS STOCK MARKET

SUBMITTED BY:
Name: RACHIT KAKKAR
MBA-IB (2014-2016)
ENROLLMENT No: A1802014151

INDUSTRY GUIDE
:
MR. SHANTANU SINGH
TERRITORY HEAD
KOTAK SECURITIES LTD

FACULTY GUIDE:
MR. NITIN GARG
AIBS

AIBS
AUUP

TABLE OF CONTENTS
S.no

Particulars

Page no.

Executive summary

Objectives

Research Methodology

Industry Profile

Company Profile

10

Competitors

17

Comparative Analysis Of Various Stock Broking Firms

18

Data Analysis

30

SWOT Analysis

39

10

Findings

40

11

Recommendations & Suggestions

41

12

Conclusion

42

13

Bibliography

43

14

Annexure

44

INTRODUCTION
Investment is that the employment of funds on assets with aim of earning returns/income or
capital appreciation. The term investment refers to the commitment of funds at the moment time
in anticipate of some positive rate of come back in future course of your time. Completely
different instruments square measure out there to speculate for investors like equity shares,
debentures/ bonds, mutual funds, etc. The capitalist will get data regarding their investment from
institution, monetary markets, media etc. This study tries to review investment behavior of
individual capitalist available market of Republic of India. In past investment was restricted to
property, gold and schemes of banks however currently wide investment opportunities square
measure receptive the investors consistent with their wants. the speed of come back and risk
related to the investment play vital role decide the investment. so it's necessary to understand the
investors preference concerning that specific investment instrument he needs to speculate and
why?
A exchange may be a place wherever long run capital is raised by the business and commerce,
government and native authorities and its considered capital market. Stock exchanges square
measure a part of the capital market that provides a marketplace for the shares and loan that
represent the capital once it's been raised. An exchange may be a place wherever the securities
square measure oversubscribed associated purchased at an in agreement value. Indian exchange
is that the oldest exchange incorporated in 1875. The name of the primary share commercialism
association in Republic of India was Native Share and Stock Broker Association that later came
to be referred to as urban center stock market.
There is growing competition between brokerage companies in post reform Republic of India.
For investors its continuously troublesome to come to a decision that brokerage companies to
settle on.
Therefore the most purpose of this study is to understand the comparative analysis of kotak
securities with alternative stock broking companies with relation to account gap charges, AMC
charges, brokerage rate & inclusion of services and to seek out out or study
investors/consumers preference for numerous investments significantly equities. A survey is
conducted to gather information concerning the study. The study additionally aims to seek out

the factors touching the investment behavior of individual investors like their reason for
investment, period of investment, most popular securities etc

RESEARCH METHODOLOGY

The research conducted was exploratory and, as well as conclusive in nature and the database
was gathered through primary and secondary sources in order to fulfill the objectives.
The Collection of primary information observing the market trends, analysis of real time
interaction with short term and long term investors.
Descriptive Research Design was used, which clearly indicates that the study is all about a
certain characteristic of individuals (investors) towards investment in stock market.
SAMPLING DESIGN
TYPE OF SAMPLING
RANDOM SAMPLING
SAMPLING TECHNIQUES:
CONVENIENCE SAMPLING
SAMPLE SIZE: 50

METHODOLOGY
Questionnaire method is adopted to collect the feedback. A set of structured questionnaire was
prepared to collect the feedback from customers. I visited the location in person to collect the
feedback and have interactions with the respondents for getting their views that may otherwise
not be reflected in the questionnaire. The Data was collected from customers to know their
perception on the investment through Kotak securities. Secondary data was collected for
comparative analysis.

DATA COLECTION

Set of Structured questionnaire for the customer

Journals
Websites
Newspapers

PRIMARY SOURCE:
The data required for this stage was regarding the detailed study of the consumer behavior
towards stock market. The data have been collected in the form of structured questionnaire that
was prepared.
The above questions were really helpful in the conclusion part of the study. Some consumers
were very cooperative but some didnt even bother to give a look. Overall, the study was a
success far as primary source was concerned.
SECONDARY SOURCE:
The secondary data was collected with the help of various books, bank journals, websites,
brochures and employees of the Kotak securities.
LIMITATIONS OF THE STUDY
1. The survey is conducted in only one city (Delhi-NCR)
2. There might be errors in the expression of opinion of respondents due to their personal bias.

OBJECTIVES

The objective of the study is briefly discussed below:- To make comparative analysis/study to know the different companies account opening charges,
AMC charges & inclusion of services.
- To know the prescribed brokerage rates collected by brokerage companies.
- To study the consumer trading behavior
-To know the strength and weaknesses of Kotak securities.
-To find out ways and means to improve the services of Kotak securities.

ACTIVATION, BROKERAGE, OTHER CHARGES AND SERVICES OF VARIOUS

STOCK BROKING COMPANIES

CRITERIA

KOTAK SECURITIES LTD

Demat A/c opening charges

NIL

Trading A/c opening charges

Rs. 750

Account maintenance charges (AMC)

Trading Margin facility

First year free, Rs. 600/yr

Intraday- 0.059%
Delivery- 0.59%
(Minimum brokerage)- Rs. 21
Intraday- 7-8 times
Delivery-4-5 times

rate of interest

20% /annum

Mode of trading

Online. offline

Call and trade facility

First 20 calls free, afterwards Rs. 21 per call

Software installation charge

(Keat Pro X) NIL

Futures brokerage

0.059%

Options trade brokerage

Rs. 100 per lot

Dematerialization

Rs.50/- per request and Rs.3/- per certificate

Rematerialization

Rs.15 per request + NDSL charges

Brokerage

Sources: http://www.kotak.com/sites/default/files/download-forms/general_tariff_1.pdf
http://www.chittorgarh.com/stockbroker/kotak-securities/12/

CRITERIA

ICICI DIRECT

Demat A/c opening charges

NIL

Trading A/c opeing charges

Rs. 975

Account maintenance charges (AMC)

First year free ,Rs. 600/ annum (Rs 500 for

customers receiving e-mail statements)
Intraday- 0.375%
Delivery- 0.75%
(Minimum brokerage)- Rs. 35
4-5 times of available funds

Brokerage
Trading Margin facility
rate of interest

18 % /annum

Mode of trading

Online. offline

Call and trade facility

First 20 calls free, afterwards Rs. 25 per call

Software installation charge

(trade racer) NIL

Futures brokerage

0.050%

Options trade brokerage

Rs. 95 per lot

Dematerialization

Rs.50/- per request and Rs.3/- per certificate

Rematerialization

Rs 25 for every hundred securities or part

thereof, subject to maximum fee of Rs
3,00,000 or
a flat fee of Rs 25 per certificate, whichever is
higher.

Sources: http://www.icicibank.com/managed-assets/docs/personal/demat/NSDL-rate-card.pdf
http://www.chittorgarh.com/stockbroker/icicidirect/1/

CRITERIA

HDFC SECURITIES

Demat A/c opening charges

NIL

Trading A/c opening charges

Rs. 999
Free first year ,
Level 1- Rs.750(less than 10 txns)
Level 2- Rs. 500(b/w 10 to 25 txns)
Level 3- Rs. 300(greater than 25 txns)
Intraday- 0.10%
Delivery- 0.50%
(Minimum brokerage)- Rs. 25
Depends upon available funds

Account maintenance charges (AMC)

Brokerage
Trading Margin facility
rate of interest

18 % /annum

Mode of trading

Online. offline

Call and trade facility

Software installation charge (subscription

charge)

(BLINK )Rs. 3999/ annum

Futures brokerage

0.050%

Options trade brokerage

Rs. 100 per lot

Dematerialization

Rs.5/- per certificate + Rs. 35/- per request

Rematerialization

Rs.30/- per request + actuals, Currently a) Rs.

10/- for every hundred securities or part
thereof; or b) a flat fee of Rs. 10/- per
certificate whichever is higher

CRITERIA

SBI CAP SECURITIES

Demat A/c opening charges

NIL

Trading A/c opening charges

Rs. 850
Free first year , Rs 350 holding less than 50k
Rs. 100 if holding b/w Rs. 50k to 2 lac
Rs. 350 if holding greater than Rs. 2 lac
Intraday- 0.075%
Delivery- 0.50%
8 times of the available funds

Account maintenance charges (AMC)

Brokerage
Trading Margin facility
rate of interest

12.5 % /annum

Mode of trading

Online. offline

Call and trade facility

Software installation charge (subscription

charge)

SBI smart xpress (NIL)

Futures brokerage
Options trade brokerage

0.050%
Rs. 100 per lot (Delivery)
Rs. 50 per lot (Intraday)

Dematerialization

Rs.5/- per certificate + Rs. 35/- per request

Rematerialization

Rs. 35 + Rs.10 for every 100 shares or part

thereof or a flat fee of Rs.10 per certificate
whichever is higher

10

CRITERIA

ShareKhan

Demat A/c opening charges

NIL

Trading A/c opening charges

Rs. 750
Free first year , Rs 400 afterwards

Account maintenance charges (AMC)

Intraday- 0.10%
Delivery- 0.50%
Minimum brokerage-Rs.16
8 times of the available funds

Brokerage
Trading Margin facility
rate of interest

18 % /annum

Mode of trading

Online. offline

Call and trade facility

NIL

Software installation charge (subscription

charge)

Trade tiger (NIL)

Futures brokerage

0.10%
Rs 100/- per lot or 2.5% on premium (which
ever is higher)

Options brokerage
Dematerialization

Rs.3/- per Certificate or Rs.15/- per request

whichever is higher.

Rematerialization

Rs.25/- Per certificate or 0.12 % of the value of

the securities requested for Rematerialisation,
whichever is higher.

11

CRITERIA

Religare securities ltd

Demat A/c opening charges

NIL

Trading A/c opening charges

Rs. 500
Free first year ,
Rs 300 afterwards( Digitally statements)
Rs. 400 afterwards( Physical statements)

Account maintenance charges (AMC)

Intraday- 0.05%
Delivery- 0.50%
Depends upon available funds

Brokerage
Trading Margin facility
rate of interest

21% /annum

Mode of trading

Online. offline

Call and trade facility

Rs. 10/- would be levied per offline executed

order with a maximum of Rs.50/- per day in a
particular segment.

Software installation charge (subscription

charge)

ODIN DIET (NIL)

Futures brokerage

0.50%
Rs 70/- per lot

Options trade brokerage

Dematerialization

Rs.2/- per Certificate

Rematerialization

Rs 20/- per request + NSDL Charges

12

CRITERIA

IDBI Capital

Demat A/c opening charges

NIL

Trading A/c opening charges

Rs. 700
Rs. 350(IDBI-SB Customers)
Rs. 2500(NON IDBI-SB Customers)

Account maintenance charges (AMC)

Intraday- 0.08%
Delivery- 0.50%
Depends upon available funds

Brokerage
Trading Margin facility
rate of interest

22% /annum

Mode of trading

Online. offline

Call and trade facility

NIL

Software installation charge (subscription

charge)

Power pro (EXE) Rs.2000 /annum

Futures brokerage

0.08%
Rs. 100/- per lot

Options trade brokerage

Dematerialization

Rs.5/- per Certificate

rematerialization

Rs 20/- per transaction

13

SWOT ANALYSIS OF KOTAK SECURITES LTD

Conversation with industry guide, employees and team members of kotak securities and on the
basis of research study and my own work experience in kotak securities as an intern, below
mentioned points are the SWOT analysis of Kotak securities ltd.
STRENGTHS

The biggest strength is the tag of Kotak being one of the largest groups in the finance sector.

Provide wide range of in-depth equity research reports and recommendations covering
specific scrips, companies, sectors.

Aggressiveness of the sales department in selling products.

The company has expertise and experience in managing big business.

Effective and wider distribution network.

It has a wide network of more than 1158 branches, franchisees representative offices, and
satellite offices across 352 cities in India and offices in New York, London, Dubai,
Mauritius and Singapore.

Process over 500000 trades a day which is much higher than some of the renowned
international brokers.

Product designed for every area of personal.

The company enjoys a very high brand loyalty and recall value among its customers.

The company has a presence in all metros as well as in the most of the major cities in the
country.

WEAKNESS

Less presence in the rural and semi-urban segment.

Lack in creating follow-ups.

14

Lack of corporate agents.

Lack of client services and promotional activities.

OPPORTUNITIES

There is continuous growth in this sector.

People have started turning towards the organization as they know that facilities are much
better than the others.

Market is fully vacant to capture.

Branch expansion to more rural areas.

THREATS

Competition in the sector is increasing in the entry of lots of private giants with the
collaboration of foreign giants.

Selling attitude for the company always has to be maintained in order to compete with
other companies.

As other organizations like ICICI direct, sharekhan, HDFC securities, etc are there in the
city so is a little bit difficult for them to capture the market.

Market scenario is changing day-by-day i.e. market is fluctuating, therefore this makes investors hard to
invest

15

DATA ANALYSIS
On the basis of research survey using questionnaire with an objective to study the factors
affecting the trading behavior of the investors towards stock market, the following observations
were made:
On the basis of Demographics

`
Interpretation:
When respondents were given set of questionnaire and through the response got, most
people fall in the age group of 20-30 years which is 48% followed by 30-40 yrs of age
group i.e 44 %.

Investors trading behavior

16

Interpretation:
Through the above data, I conclude that most people around 36% prefer to invest in
shares/equities followed by insurance plan and real estate.
Factors affecting consumer trading behavior

17

Interpretation:
As we see the above data, the factor which most attracts the people to invest in stock
market is high return i.e 42% followed by high liquidity and diversified portfolio.
Consumers preference while investing in various securities

Interpretation:

18

According to the above data most consumers like to trade in equities i.e 62% followed by
mutual funds.
Investors trading behavior towards company profile

Interpretation:
According to the survey 96% people said company profile matters while investing probably
because a strong brand image of a company is presumed to be successful in its future endeavors
and consumer feels that their money is safe and will get high returns.

Important service parameter that consumers look for in an intermediary firm

19

Interpretation:
For most customers Research report and recommendations is the key parameter that they look in
intermediary firm followed by low brokerage charges and other services like call trade facility,
margin trading, mobile app trading software, after market open facility etc.

Investors trading purpose

20

Interpretation:
According to the above data around 40 % of people do trading to generate a specified sum of
money for a specific goal in life.

Investors trading preference

21

Interpretation:
On the basis of research most people like to trade in delivery basis which is 82% and
trading preference for intraday and future & options its very small.
Consumers reason for not investing in stock market

Interpretation:
According to the data collected the major reason for not investing in stock market is due
to volatility and high risk of the stock market which is 52% followed by reasons such as
need assistance and need more knowledge.
Investors preferred mode of investment

22

Interpretation:
According to the survey 92% consumers prefer to invest in online mode rather than
offline.

Consumers investment decision while trading

Interpretation:

23

Around 38% consumers take their investment decision on their own followed by financial
consultants and family members.

Investors main source of information

Interpretation:
According to the survey most consumers source of information is newspaper/magazine which is
42% followed by internet advertisement or articles.

Investors duration of investment

24

Interpretation:
Around 58% consumers like to invest their money for duration more than 5 yr followed
by 2- 5 yrs.
Investors trading behavior affected by market movement

Interpretation:

25

It can be interpreted that majority of investors investment pattern i.e 78% will affect if there is
any change in the market. Market movement is very important factor for changing in investment
pattern.

Consumers Satisfaction towards their intermediary firm

Interpretation:
According to the data 70% of consumers who are with kotak securities are satisfied with the
services and rest 30% are not.

FINDINGS

26

 The Brokerage charges of Kotak securities ltd is lightly higher than that of other firms
which are providing low brokerage to their customers.
Most consumers falls in the age group of 20-40 yrs of age and for most consumers
equities/shares is their preference investment option.
Most people like to trade in equity than any other securities because of low knowledge on
securities market.
Most consumers invest in stock market because of high return and for over long period of
time to get maximum return.
For almost every consumer companies profile matters a lot because strong brand image
of a company is presumed to be successful in its future endeavors and consumer feels that
their money is safe and will get high returns.
For most consumers research and recommendations (advisory role) is an important
service parameter which they look in intermediary firm. For a beginner Advisory role
play an important service parameter while for professionals low brokerage is important.
Most consumers invest in stock market to generate a specified sum of money for a
specific goal in life.
Consumers like to trade on delivery basis and preference mode of investment is online
because of convenience, time saving and safety.
High volatility and high risk is the main reason for not investing in stock market.
Most consumers take investment decision on their own followed by financial consultants
and their source of information on stock market is newspaper/magazine.
Consumers like to invest for long duration that is for more than 5 years.
Maximum number of consumers investing pattern is affected by change in the market
movement and most consumers are satisfied with their stock broking firm.

RECOMMENDATIONS AND SUGGESTIONS

Existing customers should be provided better responses and services so that by there
good word of mouth company will get more customers.

27

 Advertisement should be given in the newspaper and magazines related to business,

management service, electronics media, and business world as these are the most
effective tool for awareness.
Awareness should be created among the prospective client.
Brokerage charges should be reduced or should be at par with other stock broking firms.
Younger people aged between 20-40 years will be a key customer group into the future, so
making greater efforts with younger customers who show some interest in investing should pay
off.

Promotional activities should be organized to create awareness about the products and
services offered by the company.
Still most people are unaware on how online trading is done, so company should make
online portal site more user friendly so that more and more people know about trading,
and demo videos should be uploaded of trading for ease of access.
There is large untapped market so company needs to focus on semi-urban and rural areas.
Sales team must be fully equipped with latest technology such as using laptops that can
be used for making presentations to the customers especially to corporate clients about
their products and services provided by them.
Processing of opening of accounts take around 14 days which should be reduced to 3-4
days for better customer service.
The customers should be updated with new issues and schemes and regular contact with
the customers through telephone can be maintained for smooth running of the business.
A proper feedback system should be designed to take care of the dissatisfied customers
and solving their problem as their bad word o mouth publicity can make kotak securities
ltd lose its potential as well as existing customers.

Other recommendations:
Strong need of brand building
Promotional strategies
Social network required to develop the business further

28

CONCLUSION

The brokerage charge of kotak securities is slightly higher than its competitors mostly by
small firms so as to attract more customers.
Volatility of stock market and wide open to changes in external forces makes it much

more difficult for people to consider them as an investment alternative.

29

 The right kind of campaigning directed increasing the awareness of people would get
new customers and also retain customers.
Kotak securities ltd is currently one of the biggest broking houses in the country and its
strategies to penetrate further into the market will certainly take it way ahead of its
competitors.

BIBLIOGRAPHY
Journal articles:
Rakesh H M. A study on individual investors behavior in stock market of India.
International journal in management and social science, 2(2), 165-174, 2014
Manoj Kumar. A Study of Customers Preference towards Investment in Equity Shares
and Mutual Funds. International Journal of Education and Psychological Research, 2(2),
95-100, 2013

Book Reference
Ravi M. Kishore. Financial management, Taxmanns, 2005, p.897-905
Websites:
30

www.kotaksecurities.com

www.icicidirect.com
http://www.sbismart.com/
www.sharekhan.com
www.hdfcsec.com
www.idbipaisabuilder.in

http://www.religareonline.com
www.chittorgarh.com

ANNEXURE
SURVEY QUESTIONNAIRE
On Stock Market
Q1) In which age group do you fall?
a) less than 20 yrs b)20-30 yrs c)30-40 yrs d)40-50 yrs e)50 & above
Q2) where do you prefer to invest your money?
a) Fixed deposits b)shares c)mutual funds d)real estate e)Gold f)Insurance plan
Q3) what are the factors, which attract your investment in stock market?
a) High return b)diversified portfolio c)low investment d)Liquidity
Q4) In which securities do you like to trade?
a) Equities b)Bonds & debentures c)derivatives d)mutual funds
Q5) Does companies profile matters for investment decision in stock market?
a) Yes b) No

31

Q6) What is the most important service parameter that you look in intermediary firm while
trading?
a) Low Brokerage charges b) account opening charges & Annual maintenance charges
c)Research report and recommendations d) other services (call and trade facility, mobile
app, After market open)
Q7) What is the purpose of trading?
a) To earn return on idle resources b) To generate a specified sum of money for a specific goal in
life c) Financial support d) To make a provision for an uncertain future

Q8) What type of trading you prefer to do?

a) Intraday b) Delivery based c) Future & options
Q9) Reason for not investing in stock market?
a) Need assistance b) need more knowledge c) not enough funds d) do not invest in stock
market because of volatility and high risk
Q10) what is your preference mode of investment?
a) Online b) Offline
Q11) who takes your investment decision?
a) Family members b)friends c)financial consultants d)myself e)Others
Q12) what is the source of information?
a) brokers b)newspaper/magazine c)internet ads d)financial consultants
Q13) what is the duration of your investment?
a) Less than 1 yr b)1-2 yrs c)2-5 yrs d)5 yrs & above
Q14) Does investment pattern affected by market movement?
a) Yes

b) No

32

Q15) Are you satisfied with the services of your current stock Brokering firm?
a) Yes

b)No

33