SUMMER TRAINING PROJECT REPORT

ON

Study of Indian Stock Market with Special Reference to

SHAREKHAN Ltd
Submitted in partial fulfillment of the requirements for the award

of the degree of

MASTER OF BUSINESS ADMINISTRATION

BY

HANSRAJ GUPTA
Enroll No. 0913370020

Under the Guidance of

Mr. HARSH AWASTHI

NOIDA INSTITUTE OF ENGINEERING AND TECHNOLOGY

Greater Noida
 UTTAR PRADESH TECHNICAL UNIVERSITY, LUCKNOW

ACKNOWLEDGEMENT

I sincerely express my gratitude and sense of veneration to Mr. Rajanish Kumar (Assistant

Manager), Sharekhan Limited for his active assistance and support throughout the project

work. I would also like to give my heartiest thanks for his inspiration, motivation, and

guidance.

I am also thankful to the staff member of the Sharekhan department for providing me

necessary information and co-operation during the project. I would also like to pay my

special thanks to Mr. Harsh Awasthi (Faculty Guide).

Last but not least. I would like to owe special thanks to my parents, elder brother and

friends, whose affection and the best wishes make my way easy for completion of this

project.

HANSRAJ GUPTA

2
 PREFACE

The project has been initiated for the purpose of acquainting me with, right from

the basics of the financial term used in the stock market, further up to gaining of in-

depth knowledge of Demat account with respect to investment in share market.

This work is a detailed study of stock market and about the way in which investors

invest. The initial phase of the project explains what I have learned about the

company, their products and the functioning of the stock market. I have tried to

explain the entire cash and derivative market with examples.

The next phase was about the study of investment pattern for which a questionnaire

is developed and a survey is conducted between the retail investors.

At the same time I have tried to find out as in which financial instrument investor

invest during recession or boom phase.

3
 CERITIFICATE

This is to certify that the project entitled “Study of Indian Stock Market with

Special Reference to SHAREKHAN Ltd” is a bonafide and genuine project

work carried out by HANSRAJ GUPTA, MBA (3rd Semester Student) under the

guidance of Mr. HARSH AWASTHI, faculty of Noida Institute of Engineering &

Technology, Greater Noida in partial fulfillment of the requirement for the award

of the degree in MBA,UPTU

Mr. Harsh Awasthi

(Project Guide)

CONTENTS
Acknowledgement
Certificate

4
 Executive Summary
Objectives of the Study

Chapter-1 Introduction
1.1 What is Stock
1.2 Markets in India
1.3 Instruments in Secondary Market
1.4 Security Exchange Board of India (SEBI)
1.5 What is Stock Exchange
1.6 Stock Exchanges in India
1.7 BSE
1.8 NSE
1.9 Indian Stock Market
1.10 Internet Trading in India

Chapter-2 Company Profile

2.1 About Sharekhan
2.2 Mission and Vision
2.3 Objective of the company
2.4 Depository participants
2.5 NSDL
2.6 Products offered
2.7 Process of Account opening
2.8 Sharekhan Services
2.9 Customer Services Triangle
2.10 Surrender of Account
2.11 Reason to Choose Sharekhan

Chapter-3 Research Methodology

3.1 Introduction
3.2 Data Sources
3.3 Limitations
3.4 Marketing Strategy
3.5 Competitor Analyses

Chapter-4 SWOT Analysis

Chapter-5 Observation and Analysis

Chapter-6 Findings and Recommendations

5
Chapter-7 Conclusion

Bibliography
Appendix -Questionnaire

EXECUTIVE SUMMARY

6
Conceptually the mechanism of stock market is very simple. People who are exposed to

the same risk come together and agree that if anyone of the person suffers a loss the other

will share the loss and make good to the person who lost.

The Initial part of the project focuses on the sales of types of the products of

the company, and also focuses on the acquisition of the customer. The job profile is to

create customer, making good relationship with them to have references and motivating to

trade for the company benefit and their profit.

It also enlightens the strategies to acquire the customer base. Further the

project tells us about the profile of the company (SHAREKHAN). It provides knowledge

about the company’s history, mission, vision and customer base and about the company in

detail and management of the company. Also it gives special emphasis on the selling of

products and management of the company.

This is devoted to study the comparative analysis of the competitors and the

SWOT analysis, which tells about the Sharekhan edge over its competitors. This project

leads us towards the job descriptions and difficulties faced by me. The project throws

light upon my finding and analysis about the company and the suggestions for the

company for better performance. During this project I have been given the

responsibilities of creating customer bringing HNI customer, handling team, generating

leads.

7
 This project will help the people in getting lot of their answers related to

investment options and the ways to analysis the market. The data in the project can also

help the company in making the strategy for potential investor’s.

OBJECTIVE OF STUDIES

Main Objective

8
 • The main objective of selling DEMAT account cum online trading account.

Specific Objective

• Creating Customers

• Marketing of the product

• Creating the relationship with the customer to have there sources

• Motivating customers for trading

Job Responsibilities

I have been handling the following responsibility in the Sharekhan Limited

• My job profile is to call on the given data i.e. leads

• My job profile is to coordinate the team and also help them to sale the product and

also help them in the field.

• My job profile is to understand the customer need and advising them to make a

portfolio as per there investment.

• My Job profile is to convince customer for investment in the commodities and

Equities.

9
 CHAPTER-1
INTRODUCTION TO
INDIAN STOCK MARKET

What is a share?

A share represents the smallest recognized fraction of ownership in a publicly held

business. Each such fraction of ownership is represented in the form of a certificate known

as a share certificate. The breaking up of total ownership of a business into small

10
fragments, each fragment represented by a share certificate, enables them to be easily

bought and sold.

Markets in India

Money Market

Money market is a market for debt securities that pay off in the short term usually less

than one year, for example the market for 90-days treasury bills. This market encompasses

the trading and issuance of short term non equity debt instruments including treasury bills,

commercial papers, bankers acceptance, certificates of deposits, etc.

Capital Market

Capital market is a market for long-term debt and equity shares. In this market, the capital

funds comprising of both equity and debt are issued and traded. This also includes private

placement sources of debt and equity as well as organized markets like stock exchanges.

Capital Market further sub-divided into:-

Primary Market

In the primary market, securities are offered to public for subscription for the purpose of

raising capital or fund

Secondary Market

11
Secondary Market refers to a market where securities are traded after being initially

offered to the public in the primary market and/or listed on the Stock Exchange. Majority

of the trading is done in the secondary market. Secondary market comprises of equity

markets and the debt markets.

Financial Instruments in Secondary Market

Equity Shares:

An equity share, represents the form of fractional ownership in which a shareholder, as a

fractional owner, undertakes the maximum entrepreneurial risk associated with a business

venture. The holders of such shares are members of the company and have voting rights.

A company may issue such shares with differential rights as to voting, payment of

dividend, etc.

Bonus Shares:

Shares issued by the companies to their shareholders free of cost by capitalization of

accumulated reserves from the profits earned in the earlier years.

Rights Issue/ Rights Shares:

The issue of new securities to existing shareholders at a ratio to those already held.

12
Preferred Stock/ Preference shares:

A fixed dividend or dividend calculated at a fixed rate to be paid regularly before dividend

can be paid in respect of equity share to investors. They also enjoy priority over the equity

shareholders in payment of surplus. But in the event of liquidation, their claims rank

below the claims of the company’s creditors, bondholders / debenture holders.

Cumulative Preference Shares

A type of preference shares on which dividend accumulates if remains unpaid. All arrears

of preference dividend have to be paid out before paying dividend on equity shares.

Cumulative Convertible Preference Shares

A type of preference shares where the dividend payable on the same accumulates, if not

paid. After a specified date, these shares will be converted into equity capital of the

company.

Participating Preference Share

The right of certain preference shareholders to participate in profits after a specified fixed

dividend contracted for is paid. Participation right is linked with the quantum of dividend

paid on the equity shares over and above a particular specified level.

Security Receipts

Security receipt means a receipt or other security, issued by a securitization company or

reconstruction company to any qualified institutional buyer pursuant to a scheme,

13
evidencing the purchase or acquisition by the holder thereof, of an undivided right, title or

interest in the financial asset involved in securitization.

Government securities (G-Secs)

These are sovereign (credit risk-free) coupon bearing instruments which are issued by the

Reserve Bank of India on behalf of Government of India, in lieu of the Central

Government's market borrowing programme. These securities have a fixed coupon that is

paid on specific dates on half-yearly basis. These securities are available in wide range of

maturity dates, from short dated (less than one year) to long dated (upto twenty years).

Debentures

Bonds issued by a company bearing a fixed rate of interest usually payable half yearly on

specific dates and principal amount repayable on particular date on redemption of the

debentures. Debentures are normally secured/ charged against the asset of the company in

favour of debenture holder.

Bonds

A negotiable certificate evidencing indebtedness. It is normally unsecured. A debt security

is generally issued by a company, municipality or government agency. A bond investor

lends money to the issuer and in exchange, the issuer promises to repay the loan amount

on a specified maturity date. The issuer usually pays the bond holder periodic interest

payments over the life of the loan.

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The various types of Bonds are as follows

Zero Coupon Bond

Bond issued at a discount and repaid at a face value. No periodic interest is paid. The

difference between the issue price and redemption price represents the return to the holder.

The buyer of these bonds receives only one payment, at the maturity of the bond.

Convertible Bond

A bond giving option to the investor to convert his bond into equity at a fixed conversion

price

Securities Exchange Board of India (SEBI)

The SEBI, that is, the Securities and the Exchange Board of India, is the national

regulatory body for the securities market, set up under the securities and Exchange Board

of India act, 1992, to “protect the interest of investors in securities and to promote the

development of, and to regulate the securities market and for matters connected therewith

and incidental too.”

SEBI has its head office in Mumbai and it has now set up regional offices in the

metropolitan cities of Kolkata, Delhi, and Chennai. The Board of SEBI comprises a

Chairman, two members from the central government representing the ministries of

15
finance and law, one member from the Reserve Bank of India and two other members

appointed by the central government.

As per the SEBI act, 1992, the power and functions of the Board encompass the

regulation of Stock Exchanges and other securities markets; registration and regulation of

the working stock brokers, sub-brokers, bankers to an issue (a public offer of capital),

trustees of trust deeds, registrars to an issues, merchant bankers, under writers, portfolio

managers, investment advisors and such other intermediaries who may be associated with

the stock market in any way; registration and regulations of mutual funds; promotion and

regulation of self- regulatory organizations; prohibiting Fraudulent and unfair trade

practices and insider trading in securities markets; regulating substantial acquisition of

shares and takeover of companies; calling for information from, undertaking inspection,

conducting inquiries and audits of stock exchanges, intermediaries and self- regulatory

organizations of the securities market; performing such functions and exercising such

powers as contained in the provisions of the Capital Issues (Control) Act,1947 and the

Securities Contracts (Regulation) Act, 1956, levying various fees and other charges,

conducting necessary research for above purposes and performing such other functions as

may be prescribes from time to time.

SEBI as the watchdog of the industry has an important and crucial role in the

market in ensuring that the market participants perform their duties in accordance with the

regulatory norms. The Stock Exchange as a responsible Self Regulatory Organization

16
(SRO) function is to regulate the market and its prices as per the prevalent regulations.

SEBI and the Exchange play complimentary roles to enhance the investor protection and

the overall quality of the market.

Membership

The trading platform of a stock exchange is accessible only to brokers. The broker enters

into trades in exchanges either on his own account or on behalf of clients. The clients may

place their order with them directly or a sub-broker indirectly. A broker is admitted to the

membership of an exchange in terms of the provisions of the SCRA, the SEBI act 1992,

the rules, circulars, notifications, guidelines, etc. prescribed there under and the byelaws,

rules and regulations of the concerned exchange. No stockbroker or sub-broker is allowed

to buy, sell or deal in securities, unless he or she holds a certificate of registration granted

by SEBI. A broker/sub-broker compiles with the code of conduct prescribed by SEBI.

Listing

Listing means formal admission of a security to the trading platform of a stock exchange,

invariably evidenced by a listing agreement between the issuer of the security and the

stock exchange. ; Listing of securities on Indian Stock Exchanges is essentially governed

by the provisions in the companies act, 1956, SCRA, SCRR, rules, bye-laws and

regulations of the concerned stock exchange, the listing agreement entered into by the

issuer and the stock exchange and the circulars/ guidelines issued by central government

and SEBI.

17
Index services

Stock index uses a set of stocks that are representative of the whole market, or a specified

sector to measure the change in overall behavior of the markets or sector over a period of

time. India Index Services & Products Limited (IISL), promoted by NSE and CRISIL, is

the only specialized organization in the country to provide stock index services.

Objectives of SEBI

• To protect the interest of the investors in securities

• To promote the development of securities market

• To regulate the securities market

SEBI’s Board of Members

 A Chairman

 Two members from amongst the officials of the Ministry of the Central

Government dealing with Finance (and administration of the Companies Act,

1956) 2 of 1934.

 One member from amongst the officials of [the Reserve Bank

 Five other members of whom at least three shall be the whole-time members

Departments of SEBI regulating trading in the secondary market

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What is a stock exchange?

The institution where buying and selling of shares essentially takes place is the Stock

Exchange. In the absence of stock exchanges, i.e. Institutions where small chunks of

businesses could be traded, there would be no modern business in the form of publicly

held companies. Today, owing to the stock exchanges, one can be part owners of one

company today and another company tomorrow; one can be part owners in several

companies at the same time; one can be part owner in a company hundreds or thousands

of miles away; one can be all of these things. Thus by enabling the convertibility of

ownership in the product market into financial assets, namely shares, stock exchanges

bring together buyers and sellers (or their representatives) of fractional ownerships of

companies. And for that very reason, activities relating to stock exchanges are also

appropriately enough, known as stock market or security market, mostly a stock exchange

is also distinguished by a physical location and characteristics of its own.

19
 In fact, according to H.T.Parekh, the earliest location of the Bombay Stock

Exchange, which for a long period was known as “the native share and stock brokers’

association”, was probably under a tree around 1870

The stock exchanges are the exclusive centers for the trading of securities. The

regulatory framework encourages this by virtually banning trading of securities outside

exchanges. Until recently, the area of operation/ jurisdiction of exchange was specified at

the time of its recognition, which in effect precluded competition among the exchanges.

These are called regional exchanges. In order to provide an opportunity to investors to

invest/ trade in the securities of local companies, it is mandatory for the companies,

wishing to list their securities, to list on the regional stock exchange nearest to their

registered office.

Functions of Stock Exchanges

A stock exchange has an important role in the economic development of a country. It is

essential for the smooth functioning of the private sector corporate economy. In the

process of capital formation and in raising resources for the corporate sector, the stock

exchange performs four essential functions:-

Firstly, stock exchange provides a market place for purchase and sale of securities such as

shares, debentures, bonds, etc.

20
Secondly, stock exchange provides liquidity to the investments in securities i.e. investor

can sold the securities at any time in the market.

Thirdly, stock exchange helps in the valuation of the securities by providing the market

quotations of the prices of securities.

Fourthly, stock exchange play the role of barometer, namely, an indicator of the state of

the health of the nation’s economy as a whole.

Stock Exchanges in India

1. Ahmedabad Stock Exchange

2. Bangalore Stock Exchange
3. Bhubaneswar Stock Exchange
4. Bombay Stock Exchange (BSE)
5. Calcutta Stock Exchange
6. Cochin Stock Exchange
7. Coimbatore Stock Exchange
8. Delhi Stock Exchange
9. Guwahati Stock Exchange
10. Hyderabad Stock Exchange
11. Indore Stock Exchange
12. Jaipur Stock Exchange
13. Kanpur Stock Exchange
14. Ludhiana Stock Exchange
15. Madras Stock Exchange
16. Magadh Stock Exchange
17. Mangalore Stock Exchange
18. Pune Stock Exchange

21
 19. Saurashtra Stock Exchange
20. Vadodhara Stock Exchange
21. National Stock Exchange (NSE)
22. Over the Counter Exchange of India (OTCEI)
23. Inter-connected Stock Exchange

Bombay Stock Exchange of India Limited (BSE)

Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich heritage.

Popularly known as "BSE", it was established as "The Native Share & Stock Brokers

Association" in 1875. It is the first stock exchange in the country to obtain permanent

recognition in 1956 from the Government of India under the Securities Contracts

(Regulation) Act, 1956.

The Exchange's pivotal and pre-eminent role in the development of the Indian

capital market is widely recognized and its index, SENSEX, is tracked worldwide. Earlier

an Association of Persons (AOP), the Exchange is now a demutualised and corporative

entity incorporated under the provisions of the Companies Act, 1956, pursuant to the BSE

(Corporatization and Demutualization) Scheme, 2005 notified by the Securities and

Exchange Board of India (SEBI).

22
 The Exchange provides an efficient and transparent market for trading in equity,

debt instruments and derivatives. The BSE's On Line Trading System (BOLT) is a

proprietary system of the Exchange and is BS 7799-2-2002 certified. The surveillance and

clearing & settlement functions of the Exchange are ISO 9001:2000 certified.

The Board comprises eminent professionals, representatives of Trading Members

and the Managing Director of the Exchange. The Board is inclusive and is designed to

benefit from the participation of market intermediaries.

VISION OF BSE

“Emerge as the premier Indian stock exchange by establishing global benchmarks"

COMMODITY EXCHANGES

The three exchanges are:

1. National Commodity & Derivatives Exchange Limited (NCDEX)

2. Multi Commodity Exchange of India Limited (MCX)

3. National Multi-Commodity Exchange of India Limited (NMCEIL)

National Stock Exchange of India (NSE)

23
National stock exchange (NSE) of India became operational in the capital market segment

on 3rd November,1994in Mumbai. The genesis of the NSE lies in the recommendations of

Pherwani Committee (1991). The Committee suggested the formation of an exchange

which would provide investors across the country a single, screen based trading platform,

operated through a VSAT network. It was on this recommendation that setting up of NSE

as a technology driven exchange was conceptualized. NSE has set up its trading system as

a nation-wide, fully automated screen based trading system. Reason for establishment of

NSE was due to defects in the Indian Stock Market which are:-

1. Lack of liquidity in most of the markets in terms of depths and breadth.

2. Lack of ability to develop markets for debt.

3. Lack of infrastructure facilities and outdated trading system.

4. Lack of transparency in the operations that affect investor’s confidence

5. Outdated settlement systems that are inadequate to cater to the growing volume,

leading to delays.

6. Lack of single market due to the inability of various stock exchanges to function

cohesively with legal structure and regulatory frame work.

NSE has been able to take the stock market to the doorsteps of the investors.

The technology has been harnessed to deliver the services to the investors across the

country at the cheapest possible cost. It provides a nation-wide, screen-based, automated

trading system, with a high degree of transparency and equal access to investors

irrespective of geographical location. The high level of information dissemination through

24
on-line system has helped in integrating retail investors on a nation-wide basis. The

standards set by the exchange in terms of market practices, products, technology and

service standards have become industry benchmarks and are being replicated by other

market participants.

Within a very short span of time, NSE has been able to achieve all the objectives

for which it was set up. It has been playing a leading role as a change agent in

transforming the Indian Capital Markets to its present form. The Indian Capital Markets

are a far cry from what they used to be a decade ago in terms of market practices,

infrastructure, technology, risk management, clearing and settlement and investor service.

Objectives of NSE

1. To establish a nation-wide trading facility for equities, debt instruments and

hybrids.

2. To ensure equal access to investors all over the country through appropriate

communication network

3. To provide a fair, efficient and transparent securities market to investors using an

electronic communication

4. To ensure short settlement cycle

5. To meet current international standards of securities market.

25
Indian Stock Market

Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200

years ago. The earliest records of security dealings in India are meager and obscure. The

East India Company was the dominant institution in those days and business in its loan

securities used to be transacted towards the close of 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 brokers recognized by banks and merchants during 1840 and 1850. The 1850's

witnessed a rapid development of commercial enterprise and brokerage business attracted

many men into the field and by 1860 the number of brokers increased into 60.

In 1860-61 the American Civil War broke out and cotton supply from United

States of Europe was stopped, thus the 'Share Mania' in India begun. The number of

brokers increased to about 200 to 250. However, at the end of the American Civil War in

1865, a disastrous slump began (for example, Bank of Bombay Share which had touched

Rs 2850 was only sold at Rs. 87).

26
 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. Thus in the same way,

gradually with the passage of time number of exchanges were increased and at currently it

reached to the figure of 24 stock exchanges.

The time one talks about stock market, another word also clicks and that is risk.

People have lost their millions in the stock market. This is a place of gambling for those

who don’t know where to invest. The market behaves differently to different people. The

speculators are one who loose most of the money. There are hedgers who keep risk in their

mind but try to minimize it by using different strategies. Though hedging doesn’t always

give good returns but it helps one to take out his money with remarkable profits.

Lot of analysis is required to decide in which instrument one should invest.

Many people think that particular time is the best time to invest but the fact is that

it depends on the investor and his capacity to take risk and invest not the time. Before

stepping into investment process one should get the entire knowledge about the financial

instrument options available in the market and the risk factor involved with the instrument

and the estimated returns the investor would probably get.

27
INTERNET TRADING IN INDIA

In the past, investors had no option but to contact their broker to get real time access to

market data. The Net brings data to the investor on line and net broking enables him to

trade on a click. Now information has become easily accessible to both retail as well as

big investors.

The development of broking in India can be categorized in 3 phases:-

First Phase- Stock brokers offering features on their sites such as live portfolio manager,

live quotes, market research and news to attract more investors.

Second Phase- Brokers offering on line broking and relationship management by

providing and offering analysis and information to investors during broking and non-

broking hours based on their profile and needs, i.e. customized services.

Third Phase - Brokers (now e-brokers) will offer value management or services such as

initial public offerings on line, asset allocation, portfolio management, financial planning,

Tax planning and enable the investors to take better and well- considered decisions. In the

US, 82 per cent of the deals are done on line. In India, presently Internet trading can take

place through the order routing system, which will route client orders to exchanges trading

systems for execution of trades on stock exchanges (NSE and BSE).

28
Types of online trading service

a) Discount Brokers

b) Full Service Online Brokers

A. Discount Brokers

Discount online brokers allow you to trade via Internet at reduced rates. Some

provide quality research, other don’t.

B. Full Service Online Brokers

Full service online brokerage is linked to existing brokerages. These brokers

allow their clients to place online orders with the option of talking/ chatting to brokers

if advice is needed. Brokerage rates here are higher. 5Paisa.com, ICICIDirect.com,

IndiaBulls.com, Sharekhan.com, Geojit securities.com, HDFCsec.com, Tatatdw.com,

Kotakstreet.com are some of the online broking sites in India. With Net trading in

securities and rapid consolidation between multiple stock exchanges, the international

securities marketplace is fast becoming a "global village" through the creation of a

universal virtual equity market. Compared to the Western countries, online trading is

still in its infancy in India.

29
OBJECTIVES OF INTERNET TRADING

• Increase transparency in the markets.

• Enhance market quality through improved liquidity, by increasing quote

continuity and market depth.

• Reduce settlement risks due to open trades, by elimination of mismatches.

• Provide management information system (MIS).

• Introduce flexibility in system, to handle growing volumes easily and to

support nationwide expansion of market activity.

• Besides, through Internet trading three fundamental objectives of securities

regulation can be easily achieved, these are: Investor protection, creation of a

fair and efficient market and, reduction of the systematic risks.

E- Broking

A small beginning: You have some money to dabble with. Trading shares on BSE/NSE

has always been your dream. When will you ever find the time? And besides, the hassle of

finding a broker is not easy. Realizing there is untapped market of investors who want to

be able to execute their own trades when it suits them, brokers have taken their trading

rooms to the Internet. Known as online brokers, they allow you to buy and sell shares via

Internet.

30
 CHAPTER-2
COMPANY
PROFILE

About Sharekhan

31
 80 years of taming

Bulls & Bears

The company was established in 1992 as the broking arm of SSKI group. SSKI having

eighty years of experience in broking business is owned by Mr. Dinesh Murikya.

Sharekhan is one of the leading retail brokerage firms in the country. Sharekhan

offer its customer a wide range of equity related service including trade execution on NSE,

BSE, Derivatives, Depository services, online trading, investment advice etc.

The firm 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 7 Lacs of customers. the

32
number of the trading member currently stands at over 7 Lacs While online trading

currently account for just 2 per cent of the daily trading in stock in India, share khan alone

accounts for 22 per cent of the volumes traded online.

The content rich and research oriented portal has stood out among its

contemporaries because of its steadfast dedication to offering customers best of the breed

technologies and the superior market information .the objective has been to let customer

make informed decision and to and simplify the process of investing into the stock.

On April 17, 2002 Sharekhan launched the Speed trade, a net based executable

application that emulates the broker’s terminals along with host of other information

relevant to the day traders. This was the first time that a net based trading station of this

caliber was offered to the traders. In the last six month speed trade has become a de facto

standard for the day trading community on the net.

Sharekhan ground network includes over 250 countries in 123 cities in India,

of which 32 are the fully owned branches.

33
 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. Sharekhan has

always believed in investing in the technology to build its business.

The company has used some of the best known means in the IT sector, like Sun

Microsystems, Oracle, Microsoft, Cambridge technology, Nexgenix, VeriSign Financial

Technologies India Ltd, Spider Software Pvt Ltd. built its trading engine and its contents.

The Morokhia family holds the majority of the stock in the company. HSBC, Intel and

Carlyle are the other investor.

On April 17, 2002 Sharekhan launched Speed Trade, a net-based executable

application that emulates the broker terminals along with host of other information

relevant to the Day Traders. This was for the first time that a net-based trading station of

this caliber was offered to the traders. In the last six months Speed Trade has become a de

facto standard for the Day Trading community over the net.

On October 01, 2007 Sharekhan again launched his another integrated

Software based product Trade Tiger, a net-based executable application that emulates

the broker terminals along with host of other information relevant to the Day Traders. It

34
has another quality which differs it from other that IT HAS THE COMBINED

TERMINAL FOR EQUITY AND COMMODITIES BOTH.

With a legacy of more than 80 years in the stock market, the SSKI groups ventured

into institutional broking and the corporate finance 18 years ago. Presently SSKI is one of

the leading players in the institutional brokering and the financial activity. SSKI holds a

sizeable portion of the market in each of the segment.

Mission & Vision

35
Mission
To educate and empower the individual investor to make better investment
decisions through quality advices and superior services.

Vision
To be the best retail broking brand in retail business of the stock market

Management Team

KEY OFFICIALS DESIGNATION

Mr. Shripal Morakhia Chairman

Mr. Tarun Shah CEO

Mr. Kaliyan Raman Online Sales Head

Mr. Jason Pandey DP Head

Mr. Hemendra Aggarwal Cluster Head

Mr Amit pal Singh Regional Sales Manager

UNIQUE OBJECTIVE OF THE COMPANY

36
 • 200000+ retail customers being service though centralized call centre / web

solution 60 branches servicing affluent / aggressive trades through highly skilled

financial advisers.

• 250 independent investment managers / franchisees servicing 50000 highly valued

clients.

• Strong advisory role through Fundamentals & technical research

• New initiatives - Portfolio Management Service & Commodities trading.

• Dealing in mutual funds.

DEPOSITORY PARTICIPANTS (DP)

37
As an investor you can open a securities accounts with a DP.DP are attached to the

depositories very much the same way as commercial banks are attached the RBI. All

interaction include account opening, dematerialization, pledge etc are done through DP

Reason to choose DP

You can select your DP to open a demat account just you like to select a bank for opening

a saving account .some of the important factor to selecting DP can be …

• Convenience: proximity to the office /residence, business hours.

• Comforts: reputation of DP, past association, range of service etc. find out if the

DP is in a position to give the specific service you may need.

• Cost: the service charge levied by the DP and the service standard.

Dematerialization

The dematerialization system is an alternative to the physical existence of the securities. In

the system securities are converted into the electronic form and deposited in a depository

account in the investor name. In order to dematerialize certificates an investor will have to

open an account with a DP and then request for the dematerialization of the certificate by

filling up a dematerialization request form (DRF) which is available with the DP and

submitted the same along with the physical certificate. The investor has to

ensure that before the certificate are handed over the DP for demat they are defaced by

making surrender for the dematerialization on the face of securities.

38
Procedure for selling dematerialized securities

The procedure for selling dematerialize securities in stock exchange is similar to the

procedure for selling physical securities instead of delivering physical securities to the

broker, you instruct your DP to debit your account with the number of securities sold by

you and credit your broking clearing account. The procedure for selling securities are

given below:

• Investor selling securities in any of the stock exchange linked to NSDL through a

broker.

• Investor gives instruction to the DP to debit his account and credit the brokers

account.

• Before the pay in day, investor brokers give instruction to his DP for delivery to

clearing corporation.

• The broker received payment from the stock exchange (clearing corporation)

• The investor receives payment from the broker for the sale in the same manner

payment is received for a sale in the physical mode.

National Securities Depository Limited (NSDL)

39
Although India has a vibrant capital market which is more than a century old .the paper

based settlement of trade cause the substantial problem like bad delivery and delayed

transfer of title till recently. The enactment of depository act in august 1996 paved the way

for establishment of the NSDL (National Security Depository Limited), the first

depository in India .This depository promoted by institution of nation structure responsible

for economic development of the country has since establishment of the national

infrastructure of international standard that handle a most of the trading and settlement in

dematerialization from in Indian capital market. Using the innovative and the flexible

technology, NSDL works to support the investor and brokers in the capital market of the

country. NSDL aims at insuring the safety and the soundness of Indian market place by

developing settlement solution that increase efficiency, minimize the risk and reduce cost.

In the depository system securities are held in the depository account which is

more or less similar to the holding funds in the bank account. Transfer of ownership of

securities is done through simple account transfer. This cost of transacting in a depository

environment is considerably lower as compared to the transacting in certificate.

PRODUCTS OFFERED BY SHAREKHAN LTD.

1. CLASSIC ACCOUNT

40
 This account allow the client to trade through our website www.sharekhan.com and is

suitable for the retail investor who is risk averse and hence and prefers to invest in

stocks and who do not trade very frequently.

Features classic screen serves hot.

• Online trading account for investing In Equities and Derivatives

• Integration of the On-line trading, Saving bank and Demat Account

• Instant cash transfer facility against purchase and the sale of share

• Competitive transaction charge

• Instant order and the trade conformation by E-mail

• Streaming quotes (cash and derivatives)

• Personalized market watch

• Single screen interface for cash and derivatives and more

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

• Live terminal(NSE online and BSE offline)

2. SPEEDTRADE

SPEED TRADE is an internet based software application that enables you to buy and

sell in an instant. It is ideal for active traders and jobbers who transect frequently

during day session to capitalize on intraday price movement.

41
Features

• Instant order execution and confirmation

• Single screen trading terminal (NSE)

• Real time streaming quotes, tic-by-tic charts

• Market summery (cost traded scrip, highest value etc)

• Hot keys similar to the brokers terminal

• Alerts and reminders

• Back-up facility to place trades on Direct Phone lines

3. DIAL-N-TRADE

Along with enabling access for your trade online, the CLASSIC and TRADE

TIGER ACCOUNT also gives you our Dial-n-trade services. With this service, all you

have to do is dial our dedicated phone lines which are 1800-22-7500, 3970-7500.

4. TRADE TIGER

TRADE TIGER is an internet-based software application which is the

combination of EQUITY & COMMODITIES, that enables you to buy and sell share

and well as commodities item instantly. It is ideal for every client of SHAREKHAN

LTD.

42
FEATURES

• Integration of EQUITY & COMMODITIES MARKET.

• Instant order Execution and Confirmation.

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

Commodities.

• Technical Studies.

• Multiple Charting.

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

• Market summary (Cost traded scrip, highest value etc.)

• Hot keys similar to broker’s terminal.

• Alerts and reminders.

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

• Live market debts.

43
Customer can view 425 scripts
at a time

Customer can view graphical

Presentation

PROCESS OF ACCOUNT OPPENING

LEAD MANAGEMENT SYSTEM (LSM) / REFERENCES

CONTACT

TELEPHONE AND PRESONAL VISIT

44
 APPOINTMENT

DEMONSTRATION

AGREE DISAGREE (CLOSE)

DOCUMANTATION

FILLING THE FORM

SUBMISSION THE FORM

LOGIN OF THE FORM

SENDING THE ACCOUNT OPENING KIT TO THE CUSTOMER

FOR TRADING

Sharekhan Services

SHAREKHAN, one of the India leading brokerage house, is the retail arm of SSKI, with

over 510 share shops in 170 cities, and India’s premier online trading portal

www.sharekhan.com, our customer enjoys multi channel access to the stock markets.

45
 SHAREKHAN

SERVICES

Dial-N-Trade

Along with enabling

access for your trade

online, the classic

and speed trade

account also gives

you our dial-n-trade

services. With this

services, all you have

to do is dial our

dedicated phone line

1-800-22-7500 and can trade with your phone Id and password given by Sharekhan.

Through IPO ONLINE investor can apply for all the forthcoming IPO online hasselfree.

Research Tips

46
 Company Provide 4-6 E-mail to their customers per day and other required information on

the website. They also launched a software name Fortune Finder for their customer in

which they can evaluate the near future of particular share and also the trading type i.e.

whether in Intraday or on Delivery the share would be profitable. Sharekhan doing a lot

for satisfying the customer’s profitably.

Online Trade in Share

Sharekhan customers can online trade through their computers via Internet during the

market timings i.e from 9.15Am to 3.30Pm.

Online Fund Transfer

Sharekhan have tie up with Eleven Banks for online fund transferring which are:

 Axis Bank
 Bank of India
 CITI Bank
 HDFC
 Indusland Bank
 IDBI
 Oriental Bank of Commerce
 Union Bank of India
 UTI Bank
 Yes Bank

47
Other Services

• Research based investment advice

• Investment and trading services

• Trading and seminars

• Technology based investment tools

• Integrated demat facility

• Customer can trade in

• Equities

• Derivatives

• Commodities

CUSTOMER SERVICES TRANGLE

Supportive Caring & Competent

Management Employee

48
 Efficient Product & System

SUPPORTIVE MANAGEMENT

 Understand the need of an employee and helps them with continuous

improvement through input and training.

 Creates a healthy environment for career growth.

 Rewards high performance and initiative.

 Backs decisions made by employees.

 Provide coaching and feedback.

EFFICIENT PRODUCT AND SYSTEM

• Efficient product and services.

• Well designed processes to serve the customer needs.

49
 • System that are the back bone of the processes and ensure information flow

and data collection.

CARING AND THE COMPITENT EMPLOYEES

• Having the knowledge of the product

• Have competition knowledge

• Rapport building, listening and closing technique

• Communication skill

• Objective handling skill

SURRENDER OF ACCOUNT

1. Surrender on Client’s Request

A DP can close a depository account on receipt of an application in the prescribed format.

The application should be made by the account holder or by all the joint-holders. An

account can be closed only when there as no balance in the account in case there is

balance in the account sought to be closed, the following steps are necessary:

a. Re-Materialization of all securities standing to the credit of he account at the time

of making the application for closure.

b. Transferring the balance to the credit of another account opened by the same

account holder(s) either with the same participant or with a different participant.

Before closing the account the DP should ensure that all pending transactions have

50
 been settled. The request for closure should be processed only after ensuring that

there is unbalance lying in the account.

2. Consolidation of Account

Some clients could have opened multiple accounts to dematerialize their shares held in

multiple combination and sequence of names. However, they may not need so many

accounts after they have dematerialized their shares and may want to bring all their share

holdings into one or fewer accounts. This can be achieved by using normal market transfer

instruction.

3. Closure by DP

The DP may also initiate closure of a client’s account if the client has defaulted in

performing its obligations laid out in the client-participant agreement. The participant

should give sufficient notice to the client before initiating closure of his account. The

notice should clearly state the reason for closure of account. The process of closing

account in such a case is the same that of client-initiated closure.

4. Shifting of Clearing Account

A clearing member may transfer its clearing account from one DP to another DP. For this,

simultaneously applications have to be made for closure of account to the earlier DP and

for opening of new clearing member account to the new DP. On receipt of the application,

51
the new DP forwards the application to the depository for approval and allotment of a new

CM-BP-ID. Once the new CM-BP-ID is allotted, the new DP opens.

New clearing account and intimates the depository about the new client-ID. On

receipt of intimation from the new participant, the depository advises the old DP to close

the account. The old DP then closes the account and intimates the clearing member. All

payout of securities, subsequent to closure of old clearing account, take place in the new

account.

REASON TO CHOOSE SHAREKHAN LTD

Experience

SSKI has more than eight decade of trust and credibility in the Indian stock market. In

Asia money market poll held recently, SSKI won the India best broking house for 2004

award. Ever since it launch Sharekhan as its retail broking division in February in 2000.it

has been providing institutional level research and broking service to individual level

investor.

Technology

52
With our online trading account you can by and sell share in the intent from any PC with

an internet connection. You will get assess to our powerful online trading tool that will

help you take complete control over your investment in share.

Accessibility

Sharekhan provides ADVICE, EDUCATION, TOOL AND EXECUTION service for

investors. These service are accessible throw our center across the country. (Over 588

location in148 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 translates into the direct profit,

you get access to a wide range of information on our 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 our dial and trade number to get investment advice and execute your

transaction. We have a dedicated call center to provide this service via a toll free number

1800-22-7500 form anywhere in India.

53
Customer Service

Our customer service team assists you for any help that you need relating to the

transaction, billing d-mat and other queries. Our customer service can be contracted via a

toll-free number email or live chat on www.sharekhan.com.

Investment Advice

Sharekhan has dedicated research team of more than 30 people for fundamental and the

technical research. They constantly track the pulse of the market and provide the timely

investment advice to investors via E-mail, message, etc

Benefits

• Free depository A/c

• Secure order by voice tool dial and trade

• Automated portfolio to keep track of the value of your actual purchase

• Personalized price and account alerts delivered instantly to your cell phone number

and e-mail address

• Special personal inbox for order and the trade conformation

• On-line customer service via web chat

• Any time ordering

54
 RESEARCH

METHODOLOGY

55
 Introduction

Research Methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. In it we study the

various steps that are generally adopted by a researcher in studying his research problem s

along with logic behind him. Why a research study has been undertaken, how a research

problem defined, in what way and why the hypothesis has been formulated, what data

have been collected and what particular method has been adopted, why particular

technique of analyzing data has been used and a host of similar other questions are usually

answered when we talk of research methodology concerning a research problem or study.

RESEARCH DESIGN

56
A research design is the arrangement of conditions or collection and analysis of in a

manner and aims to combine relevance to the research purpose with economy in

procedure. In fact the research design is the conceptual structure within which research I

conducted. Research design is needed because it facilitates the smooth sailing of the

various research operations thereby making as efficient as possible yielding maximum

information with minimal expenditure of effort, time and money.

I have adopted descriptive and conclusive research design. Descriptive research is

those studies, which are concerned with describing the characteristics of a particular

individual or a group. Since the aim is to obtain the accurate information about the

customer in terms of his interest towards investment in stock sector. I have used the

techniques of questioning customer in order to know their consumer behavior, their

interests, their needs and etc.

It is very important for the sales executive to study the mind of the consumer so that

the personal visit would not be a waste of time, money and efforts.

DATA SOURCES

The research can gather primary data, secondary data or both. Secondary data are data that

were collected for another purpose and already exist somewhere. Primary data are data

specially gathered for a specific purpose or for a specific research project. When the

57
needed data do not exist or are outdated, inaccurate, incomplete, or unreliable, the

researcher will have to collect primary data. Most marketing research project involves

some primary data collection; it is quite costlier and time taking but provides accurate and

reliable data to researcher.

PRIMARY DATA

• I have collected primary data through personal references.

• LMS i.e. Leads Management System of the company.

• Customer references.

SECONDARY DATA:

The main source of information for the project was:

• Weakly Magazine

• Telephone Directory

• Used Leads of the company

• Leads of the company; i.e. telephone list for tele calling

CONTACT METHOD:

The marketing researchers have four choices to contact the respondents:

• Mail

58
 • Telephone

• Personal

• Online

I choose the above techniques to reach to the customer in a most convenient method.

LIMITATIONS:

• Lack of awareness of Sharekhan and stock market:

Since the area is not known before by customers, so it takes lot of time in convincing

people to start investing in shares primarily in IPO’s. People still thinking that share

market is a risky place to invest and they believe that they should remain focused on their

business to grow as they are growing.

• Some people are comfortable with traditional system:

As people are doing trading from their respective brokers, they are quite comfortable to

trade via physical form of paper, they want to trade off line, i.e. through telephone or etc.

even they don’t having the knowledge of computers and internet and also not trusting all

these activities as a safer one.

• Lack of Techno Savvy people and poor internet penetration:

59
Since most of the people are quite experienced and also they are not techno savvy. Also

Internet penetration is poor in India. People are less aware about the use of internet.

• Some respondent are unwilling to talk:

Some respondents either do not have time or willing does not respond, as they are quite

annoyed with the phone call.

• Inaccurate Leads:

Sometimes leads are provided which had error in it, which varies from only 5 digit phone

numbers to wrong phone numbers, some people have registered to know about their

personal quarries. They are the unsatisfied clients of the company.

• Misleading concepts:

Some people think that as all the shares are in electronic form and they don’t have any

physical proof. Sometimes this leads to a great misconception of the entire process.

MARKETING STRATEGY?

A strategy that focuses on developing a unique long run competitive position in the market

by assessing consumer needs and the firm’s potential for gaining a competitive advantage.

A business’ approach to marketing its products / services expresses in broad terms, which

forms the basis for developing a marketing plan.

60
 Marketing starts with market research, in which needs and attitudes and

competitors’ products are assessed, and continues through into advertising, promotion,

distribution, and where applicable customer servicing and repair, packaging and sales and

distribution.

The broad marketing thinking that will enable an organization to develop its

products and marketing mixes in the right direction, consistent with overall corporate

objectives.

MARKETING STRATEGIES OF THE COMPANY

Tele-Calling

The company uses the tele calling / phone calling to reach the customer, which are

interested. This is the most important techniques to save time and giving demo of the

companies’ products through making call in order to know the customer interest towards

the product. This is the strategy with which one can motivate customer to go for the

product and etc.

LMS

It is leads management system which means leads are generated by the customer who

wants to purchase the products of the company. Company provides facility to the

61
customer on online to fill the registration form through which the companies’ executive

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 find

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 techniques used by Sharekhan Securities to market its product

in different areas of the city, company put their canopies and customers who are willing to

know about the product come forward and provide best of their knowledge. Besides this

company executives ask customers 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 he crowdies places like near main market, cinema’s, hotels, ATM or etc

where people come in good numbers.

Direct Marketing:

62
Sharekhan executive’s reaches to the doors of the customer by fixing appointments with

the interested customers, they describe the details of the product. Executive give

demonstration of the product 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 techniques by the company to tell about the new features and new

launch by giving briefing of the product.

Sharekhan use banners, distribution of pamphlets and advertising in newspapers.

References:

Sharekhan strategy is to satisfy the customers in terms of their need by providing them

timely services and knowledge about the trade in equities, mutual fund, by giving tips for

investment advises through e-mails or toll free calls for this purpose customers are

provided relationship manager who gives investment advice and also make transaction on

their behalf on demand. By satisfying customer executive ask their references that not

only increases 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. Sharekhan make it easy for the customers to make online

63
transaction of shares. The company is competitive in terms of the product price and

facilities it offers to the customers.

Internet:

Company provides detailed information about the products on internet so that customer

can know about the products easily and completely.

COMPETITOR ANALYSIS

1. 5PAISE.COM

Company Background

Company was founded in 1995 and was positioned as a research firm in 2000 e-broking

was started under the brand name of 5paisa.com. Apart from offering online trading in

stock market the company offers mutual funds online. It also acts as a distributor of

various financial services i.e. GOI securities, Company Fixed Deposits, Insurance.

Limited ground network present in 20 cities.

Charges for Demat:

• Demat 1st yr: Rs. 250/-

• Pricing for HNI Clients

64
2. KOTAK STREET

Company Background

Kotak street is the retail arm of Kotak Securities. Kotak Securities limited is a joint

venture between Kotak Mahindra Bank and Goldman Sachs.

Charges for Demat:

• Rs. 22.5 p.m.

3. INDIABULLS

Company Background

India Bulls is a retail financial services company present in 70 locations covering 62 cities.

It offers a full range of financial services and products ranging from Equities to Insurance.

450 + Relationship

Managers who act as personal financial advisors

Charges for Demat:

• Rs. 200 if POA is signed, No AMC for this DP

65
 • POA for Clients DMAT

4. ICICI Direct

Company Background:

ICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is an Affiliate of

ICICI Bank Limited and the Website is owned by ICICI Bank Limited.

Charges for Demat:

• NIL first years

• 500 per annum

5. HDFC SECURITIES

Company Background:

The HDFC Bank, HDFC and Chase Capital Partners and their associates promote HDFC

SECURITIES LTD. Pioneers in setting up Dial-a-share services with the largest team of

Tele brokers

DEMAT ACCOUNT WITH HDFC:

• It is conversion of Physical shares into electronic form.

• Dematerialization charges

• Rs. 3 per share certificates

66
 • Rs. 35 per request

• Folio charges are Rs. 150 per annum

• Buying and selling transaction through brokers charges are 0.05% of transaction

value

• Off market transaction charges 0.04% of transaction value

Charges for Demat:

• First Year: NIL

• Yearly Charges: Rs. 450/- per year

67
 SWOT
ANALYSIS

68
A SWOT analysis focuses on the internal and external environment, examining strengths

and weaknesses in the internal environment and opportunities and threats in the external

environment.

STRENGTHS

Services

69
As a product Sharekhan I a extremely innovative product with very les cost. Services like

online trading facility, institutional and domestic broking, customized research report with

almost 80% efficiency etc give Sharekhan an edge over its competitors. Sharekhan

provides other support services that make retail investors more confident and assured with

their trading. SMS alerts (allowing traders and investors to make the most of the available

opportunities), Softer, intangible features like imagery, equity driving preference. Through

efficient trading processes Investor can place their order directly on the Internet, do all the

information seeking and basically own the investing process.

Distribution Network

Sharekhan with almost 250 branches spread across 128 cities beefed up by comprehensive

online research, advice and transaction services. In near future expect to make 20000+

retail customers being serviced through centralized call centre / web solution. 60 branches

servicing affluent / aggressive traders highly skilled financial advisors, 250 independent

investment managers / franchisees servicing 50000 highly valued clients, strong advisory

role through Fundamentals & technical research and new initiative are being made in

Portfolio Management Services & Commodities trading.

Marketing

70
Sharekhan is a broking arm of SSKI, a veteran equities solution company with over

decades of experience in the Indian stock markets. Sharekhan’s expertise lies in stocks

should not be confused with trading in stocks or a portfolio-based strategy is better than

betting on a single horse, it is something that is spoken with years of focused learning and

experience in the stock markets.

Products

Company’s Product line is quite flexible in the sense that there is a product for every kind

of investors. Also all the products cover all the loopholes of all the products offered by the

competitors like low cost, user-friendly online trading services etc.

WEAKNESS

Customer Satisfaction

As far as customer satisfaction goes Sharekhan has to tighten their socks. Many broking

houses catering to heavy investors or small segment of the market can afford to and does

provide relationship managers for their customers, who can understand the trading needs

of individual customers, and advises accordingly. This enable customers to trade from

anywhere even they do not having internet at that time, at that time they simply call their

particular assigned Relation Manager and place their orders However, a broking house

71
like Sharekhan, which caters to the mass segment, is in n position to provide relationship

managers for individual customers.

Branding

Through the company has a efficient products bur large part of investment interested

population does not know the company. The most basic expectation for a trader or

investor when one begins trading is that one must get timely delivery of shares and

proceeds from sale of shares. Also ones cash balance with the broker must be safe and

secure, security is the basic thing which investor wants in terms of finance. Though this

confidence in the broker comes with time and experience, good and transparent practices

also play a major role in imbibing confidence in traders.

Competition from banks

Most of the banks due to good branding have the faith of the customers of their banking

database. So they enjoy the liberty of huge database and customers find it more reliable to

trade with them rather than with an unknown broker. Also banks like HDFC Bank and

ICICI Bank have the advantage of linking the trading accounts of their customers to

saving accounts. This Make trading easier, and at the same time a trader withdraws

exactly as much money from his account as is needed to complete the trade. Similarly

sales proceeds are credited directly to saving accounts.

72
OPPORTUNITIES

The external environment analysis may certain new opportunities for profit and growth.

Ever Increasing market

After the NSE brought the screen based trading system stock markets are now more

secured which has attracted lot of retail investor and the demand is increasing day by day.

This has resulted in improved liquidity and heavy volumes on transaction. Sharekhan is

one of the early entrants here. As to how much it will roar and how swift it can swoop on

the market, the future alone can answer such queries. Sharekhan has been a mega player

and is known for being a mover of stocks. It is also known for putting big deals through

and enjoys good networking with the FIIs.

Improving Technology

In country like India technology is always improving which gives the company a chance

to keep on improving their product with time whereas for the small players like local

brokers it will be difficult to keep the same pace as the changing technology. Also with

SEBI lying down some strict guidelines small brokers are finding it harder to retain the

customers with no research departments and small capital. The traditional business model
73
is highly dependent on a large network of sub brokers, and many established players may

not have systems (technology, customer service, etc.) capable of directly servicing so

many retail customers.

Unfulfilled needs of the customers

With so many competitors offering their products in the market but no one is able to

completely satisfy the customers. Some have the problems of lack of information or some

were scared of volatility of the stock markets. Sharekhan has the opportunity to tap this

satisfied set of customers and to make hold in the market. The Internet serves to break all

barriers to information, as it offers an extremely hassle-free investing platform. And,

Sharekhan hopes to fully utilize and capitalize on this platform. This original idea by

Sharekhan itself was born out of the consumer’s need for a more transparent, easy to

understand and convenient option of investing in stocks.

Education Level

The education level in the country is improving year after year as far as technology goes.

With that the understanding of the stock market is also increasing and a lot of retail

74
investors are steeping in the markets which are being shown by increasing volumes,

transportations and indices.

Diversification

Sharekhan can diversify in other financing activities so as to increase the profit. They can

use their customer base so as to tap the existing as well as new market. This will help them

to grap the maximum market share and be a competitor in market.

THREATS

New Competitors

A lot of new competitors are trying to enter the market in this bullish run to taste the

flavor of this cherry. This is creating a lot of competition for large players like Sharekhan

and it is creating little confusion in the minds of the customers about the services provided

by the broker. Also many banking firms are entering into the market with huge

investment. Competitors like India Infoline, ICICI, Religare, Kotak, HDFC, Karvy,

Alankit, 5-Paise etc. are posing a lot of threats to the company. Due to this the

75
competitors able to attack the saturated market and also reducing the profit margins by

reducing the brokerage as minimum as possible. This confusing the customers a lot in

terms of the services as customer only concern about the brokerage and didn’t consider the

other advantages provided by Sharekhan.

Technology based business

Online trading is totally based on the technology, which is quite complex. Typically, the

technology solution has to start from the Internet front-end (or the screen that you see

when you begin trading). Then it needs to get into the ‘middle tier’ of risk management

systems that assess data from banks and depository participants (DP), calculate client risk

at that point in time, and give the ‘GO / No go’ advice to the trade. So technology is a kind

of threat because until it is working properly it is good bur internet is not that safe. Though

a lot cyber laws are being made but not yet executed.

76
OBSERVATIONS
AND
ANALYSIS

77
DATA ANALYSIS

TABLE NO. 01

Market share of Sharekhan Securities

Company Market Share

ICICI 28%

Sharekhan 24%

India bulls 22%

5 Paisa 20%

Others 6%

78
 GRAPH - 01

Graphical Representation:

79
The above data describes the market share of the Sharekhan competitors in which

Sharekhan has the second highest market share among all its competitors heaving

customer base of more than or approximate 8.0 lacs.

TABLE NO. 02

COMPETITORS BROKERAGE COMPARISION

INTRADAY DILIVERY

80
ICICI 0.50% 0.75%

HDFC 0.40% 0.75%

INDIA BULLS 0.10% 0.50%

SHAREKHAN 0.10% 0.50%

5 PAISA 0.05% 0.40%

GRAPH NO. 02

Graphical Representation:
81
The above is the detail of the companies’ brokerage in which Sharekhan has competitive

brokerage over other in which there reduction of the brokerage depending upon the deal

between client and the customers.

82
 TABLE NO. 03

GROWTH RATE OF COMPANY

Year 2004 2005 2006 2007 2008

Customer
3.6 4 4.5 5.2 4.8
(In Lakhs)

GRAPH NO. 03

Graphical Representation:

83
The above data shows the growth rate of the company from 2004 to 2006, which shows

the increase in the growth trend.

TABLE NO. 04

GROWTH RATE OF COMPANY IN %

Company Growth (in Per)

HDFC 4%

5 Paisa 2%

INDIA BULLS 4%

SHAREKHAN 5%

ICICI 6%

84
 GRAPH NO. 04

Graphical Representation:

85
The above data showing the growth of Sharekhan with its competitors in the market.

TABLE NO. 05

Number of Customers

86
Company No. of customers (In lack)
INDIA BULLS 7.4
ICICI 9.5
HDFC 3
5 PAISA 5.4
SHAREKHAN 8

87
 GRAPH NO. 05

Graphical Representation:

The above graph shows the market share of the customers we are at position no two

having customers base of around 8.0 lakh customers, ICICI having the maximum and

HDFC has the minimum customers.

88
 TABLE NO. 06

CLIENT ACQUISITIONS

Client Acquisition (Approx.)

Total Data 1700
Calls Made 900
Responses 560
Appointment Fixed 180
Appointment Confirmed 40
Appointment Converted 20

89
 GRAPH NO. 06

Graphical Representation:

The above graph shows the number of customer (approx.). That has reached through the

marketing tools and technique. Approximately out of 1700 clients finally 20 were

converted.

90
 FINDINGS
AND
RECOMMENDATIONS

91
FINDINGS

According to the study of the project report and company experience of Four month the

analysis are the following findings.

According to graph one ICICI has the maximum market share and Sharekhan is at

position no.2 Sharekhan has a competitive product feature and services that makes it

possible to reach at this position.

According to graph two SHAREKHAN has brokerage less then ICICI and HDFC

but same as INDIABULLS but more then other competitors. Brokerage is the main

concern for the customer thus company provides some negotiation flexibility in brokerage

charges in terms of brokerage we are better then the ICICI and HDFC company charges

less form the customer for the same purpose and providing better service.

According to graph 3 which shows the competitors growth in terms of the

customer acquisition form 2004 to 2008 Sharekhan has growth rate of 5% and ICICI has a

maximum growth rate of 6%

According to graph 4 which shows the total no of customer Sharekhan has the

second largest customer base with 8 lakhs among its competitors.

92
 According to graph 5 it shows the practical work done by me. In this I have made

approximate 1900-2100 calls in Four month to the customer and tried to communicate my

product. Out of all these calls I found 1300 numbers correct and rest are not in use. Near

about 700 customers shows interest towards at least listing to the product out of 700 only

160 customer fixed the appointment for further process of the account opening with share

khan , then out of 160 customers only 55 appointments are confirmed and visited by me.

Out of this total 32 are finally converted and are customer of the company.

Due to high competition the companies provides same product with different

features and service. With this regard share khan is at no one for service brokerage and

follow up.

93
RECOMMENDATIONS

After heaving an experience of 6 weeks in sales of demat account I would like to suggest

the following things:-

 Customers who are new need relationship manger who will tell them about

investment so it should be provided to all the customers on demand, this will lead

to customer satisfaction and will help to have more reference from satisfied

customer.

 The company also need some revision in brokerage structure so that the customer

who are looking for the less brokerage can open there account taking into

consideration the different proposal.

 The company has shown the growth trend and it has reached at no 2 it can move

to no one because it has an advantage of its service. As Sharekhan is already tie-up

with 8 banks for online fund transfer that reduce the paper work for customers and

ease in trading.

 The company can increase the customer base if the account opening charges it

reduced from 375 to 200, which will give boost the competition.

The company should revise the advertising strategy to increase its brand awareness. I

suggest marketing making on television so that maximum market can be targeted.

94
CONCLUSION

95
After studying the project I would like to conclude that:

• Company should focus on customer satisfaction at every levels of the account

opening procedure.

• Brokerage can be reduced with the attractive proposals.

• Relationship manager should be given on the customer demand.

• Company should use the tool of advertising for marketing the brand and the

product.

• Reduction in brokerage would attract the customer of India bulls, 5 paisa and other

competition’s heaving less brokerage then us. It would increase the market share or

client acquisition.

• The account opening time should be reduce to maximum 5 days because customer

losses the opportunity of investments.

• The company shows the positive trend in growth but it can be increased more if it

focuses on building the brand equity.

BIBLIOGRAPHY
96
• Valueline (Sharekhan monthly research Magazine)
• Capital Market (5 Paisa.COM), New Delhi
• The Finapoils (Your Personal Finance Advisor from Karvy)
• Training Kit Provided by the Sharekhan.

INTERNET

• www.reliancemoney.com
• www.nseindia.com
• www.bseindia.com
• www.indiabulls.com
• www.kotaksecurities.com
• www.sharekhan.com
• www.motilaloswal.com
• www.icicidirect.com
• www.traderji.com
• www.religaresecurities.com
• www.demataccount.com

• www.sbi.org

• www.indiainfoline.com

• www.equitymaster.com

97
APPENDIX

QUESTIONNAIRE

DATE:

98
Name ___________________________________________________

Occupation ___________________________________________________

Age ___________________________________________________

Contact Info. ___________________________________________________

Q1. In which of these Financial Instruments do you invest into?

(i) Shares (ii) Mutual Funds (iii)Bonds (iv) Others

Q2. Which type of trading you prefer?

(i) Online (ii) Offline (iii) Not Applicable

Q3. If you prefer online Trading then the reasons for it?

(i) Privacy (ii) User friendly & Time Saving

(iii) Convenience (IV) All The Above

Q4. What factors motivates you to invest in securities?

(i) New IPO's (ii) Entry of FII's

(iii) More returns in less time (iv) Others

Q5. Does online trading system motivate you to deal in securities?

99
(i) Yes (ii) No

Q6. Have you heard about Sharekhan?

(i) Yes (ii) No

Q7. Which Brokerage Firm do you prefer for Online Trading?

(i) ICICI Direct (ii) Sharekhan (iii) India bulls

(iv) Kotak Securities (v) 5paisa (vi) Any other__________

Q8. What differentiates your Share Trading Company from others?

(i)Brokerage (ii) Research Report (iii) Dial up trade facility

(iv)Magazine (v) Exposure (vi) Account opening charges

Q9. How often do you trade?

(i) Daily (ii) Weekly (iii) Monthly (iv) Yearly

Q10. In which category does your income fall? (Per month in Rs)

i) 0-15000 ii) 15000 – 35000 iii) 35000 – 60000 iv) Above 60000

Q11. What percentage of your earnings do you invest in share trading?

(i)Up to 10% (ii) Up to 25% (iii) Up to 50% (iv) Above 50%

100
Q12. According to your preference rank the attributes of a share trading company.

(1=Most Important, 5= Not Important at all)

1. Customer Service :

2. Proper Guidance :

3. Regular Updates :

4. Trustworthiness :

5. Brokerage Charges :

Q13. Rank these share trading companies according to the quality of service they

provide. (1=Excellent, 5= Very poor)

1. Sharekhan

2. ICICI Direct

3. Indiabulls

4. Kotak Securities

5. Others (Specify)

101
Q14. What additional features do you wish to have in Online Share Trading?

______________________________________________________________________

______________________________________________________________________

102