Deepak Project

A
PROJECT REPORT
ON
“COMPETITIVE ANALYSIS OF ONLINE BROKING

FIRMS OF JAIPUR”
UNDERTAKEN AT
“INDIA INFOLINE”
Submitted in partial fulfillment for the award of

Diploma In Business Management
2008-2009
Submitted To: - Submitted By:-

Mr. Satish Batra Manvendra Singh
Bhavans College Of Communication And Management,

Jaipur
COMPETITIVE ANALYSIS OF ONLINE BROKING FIRMS OF JAIPUR
Bharti Vidhya Bhawan,

Rajendra Prasad Institute Of Communication And Management
1.1 ACKNOWLEDGEMENT
This project has given me immense insights about the practical aspect of Share broking
industry and its working. I got to learn a lot about the Online Broking and the way they handle
their clients and projects. This project also helped me to improve my report making skills and
the true meaning of Broking.
Foremost I would like to thank my internal guide Mr. R.C.Jain for approving this topic and
guiding me throughout the project. Then I would like to thank my external guide Mr.Jugal
Maheshwari(Branch Manager) without whom this project wouldn’t be a success. He helped
me at each and every stage of this project.
Next I would like to thank all the respondents who gave their valuable time and their insights
on the research topic without which it would be impossible.
Manvendra Singh
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1.2TABLE OF CONTENTS
SR.NO PARTICULARS PAGE NO.

1 1.1 Acknowledgement 1
1.2 Table Of Contents 2
1.3 Abstract 3
2.1 Introduction 4
2 2.2 Company Overview 5 - 13
2.3 Literature Review 14-29
Research Methodology 30
3 Research Analysis 31-34
4 Recommendations 35
5 Conclusion 36
6 Annexure 37
7 7.1 Transcripts of Interviews 37 – 51
7.2 Response Sheets 51 – 53
7.3 Questionnaire 54 – 55
8 Reference 56
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1.3 ABSTRACT
“The Dotcom World Moving With a Very Fast Pace”
The most upcoming topic in the Indian Capital Market Industry is Online-Broking. In this fast
moving world where everyone has become techno-savvy and competition, which is increasing,
day-after-day it is very important to keep innovating, and the same has happened in the capital
markets also. The share market started from paper shares to the dematerialization of shares and
now E-Broking. It is gaining momentum with trading volumes growing by 150 per cent per
annum. Over the past two to three years, the value of all trades executed through E-Broking has
just been growing. Players are already anticipating that the e-broking market will soon start
showing turnover in the range of Rs2000 - 3000crore per day. More pertinent, e-broking might
just allow a player to build a truly national broking brand -- something that has not happened in
the 130-year history of the Indian bourses.
And finally, there is the experience of other countries that have embraced e-broking in a big
way. In the US, 40% of all trades are now Net-based. For South Korea, the figure has shot up to
50% in less than two years. There is no reason to believe why a similar phenomenon won't be
witnessed in India as well.
Compared to the Western countries, online trading is still in its infancy in India. With trading
turnover at around Rs.30crores per day from online trading compared to a combined gross
turnover of around Rs.10000-24000crores handled by the BSE and NSE together, online
trading has a long way to go.
This report gives a Competitive Analysis of the E- broking services offered by a few broking
companies. The report involves the information from the companies like India Infoline, Kotak
Securities, ShareKhan, ICICI Direct, and Indiabulls. It gives brief information about the
features and brokerage charges and the other services provided by different firms.
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2.1 INTRODUCTION
It’s not the Big that beats the SMALL …. It’s the FAST that beats the SLOW
That’s the title of Jason Jennings book that emphasizes the necessity to maintain competitive
advantage and talks about the need for speed while doing business. E-broking is all about speed
of execution, classy service and above all simplicity.
E-broking is offering broking services through the Internet. SEBI, the regulatory authority for
capital markets, has recently framed the guidelines pertaining to Internet based trading. Brokers
who offer trade services through the Internet are called E-brokers. In this fast moving world
you have run like rabbit and mot move like a tortoise or else you will be left behind and the
world will move forward.
Overview
Internet scheme is successful because web proposals are built that influence their offline brand
value, customer lists and distribution channels. This involves designing and evolving electronic
value propositions.
In India, the guidelines for electronic trading were formed in January 2000. The Securities and
Exchange Board of India (SEBI) has framed the guidelines for Internet trading in January 2000.
SEBI registered brokers can introduce the service after obtaining permission from respective
Stock Exchanges and clearance from SEBI. Exchanges while giving permission require to
ensure minimum conditions specified in the report that is available on the SEBI’s web site
(www.sebi.com) The two major stock exchanges in India (National Stock Exchange of India
Ltd. & The Bombay Stock Exchange) accounting for 90% of the trading activity have already
implemented the system for Internet trading. With the successful implementation of depository
system in India and larger volume of securities getting converted to electronic form, e-broking
is expected to be successful e-commerce in India and is growing with a fast pace. It is growing
day after day and may reach the echelons of the capital markets.
5
2.2 COMPANY OVERVIEW
Vision
Our vision is to be the most respected company in the financial services space
India Infoline Group
The India Infoline group, comprising the holding company, India Infoline Limited and its
wholly-owned subsidiaries, straddle the entire financial services space with offerings ranging
from Equity research, Equities and derivatives trading, Commodities trading, Portfolio
Management Services, Mutual Funds, Life Insurance, Fixed deposits, GoIe bonds and other
small savings instruments to loan products and Investment banking. India Infoline also owns
and manages the websites www.indiainfoline.com and www.5paisa.com
The company has a network of 758 business locations (branches and sub-brokers) spread across
346 cities and towns. It has more than 800,000 customers.
India Infoline Ltd
India Infoline Limited is listed on both the leading stock exchanges in India, viz. the Stock
Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and is also a member of
both the exchanges. It is engaged in the businesses of Equities broking, Wealth Advisory
Services and Portfolio Management Services. It offers broking services in the Cash and
Derivatives segments of the NSE as well as the Cash segment of the BSE. It is registered with
NSDL as well as CDSL as a depository participant, providing a one-stop solution for clients
trading in the equities market. It has recently launched its Investment banking and Institutional
Broking business.
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A SEBI authorized Portfolio Manager; it offers Portfolio Management Services to clients.

These services are offered to clients as different schemes, which are based on differing
investment strategies made to reflect the varied risk-return preferences of clients.
India Infoline Media and Research Services Limited.
The content services represent a strong support that drives the broking, commodities, mutual
fund and portfolio management services businesses. Revenue generation is through the sale of
content to financial and media houses, Indian as well as global.
It undertakes equities research which is acknowledged by none other than Forbes as 'Best of the
Web' and '…a must read for investors in Asia'. India Infoline's research is available not just
over the internet but also on international wire services like Bloomberg (Code: IILL), Thomson
First Call and Internet Securities where India Infoline is amongst the most read Indian brokers.
India Infoline Commodities Limited.
India Infoline Commodities Pvt Limited is engaged in the business of commodities broking.
Our experience in securities broking empowered us with the requisite skills and technologies to
allow us offer commodities broking as a contra-cyclical alternative to equities broking. We
enjoy memberships with the MCX and NCDEX, two leading Indian commodities exchanges,
and recently acquired membership of DGCX. We have a multi-channel delivery model, making
it among the select few to offer online as well as offline trading facilities.
India Infoline Marketing & Services
India Infoline Marketing and Services Limited is the holding company of India Infoline
Insurance Services Limited and India Infoline Insurance Brokers Limited.
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(a) India Infoline Insurance Services Limited is a registered Corporate Agent with the
Insurance Regulatory and Development Authority (IRDA). It is the largest Corporate Agent for
ICICI Prudential Life Insurance Co Limited, which is India's largest private Life Insurance
Company. India Infoline was the first corporate agent to get licensed by IRDA in early 2001.
(b) India Infoline Insurance Brokers Limited India Infoline Insurance Brokers Limited is a
newly formed subsidiary which will carry out the business of Insurance broking. We have
applied to IRDA for the insurance broking license and the clearance for the same is awaited.
Post the grant of license, we propose to also commence the general insurance distribution
business.
India Infoline Investment Services Limited
Consolidated shareholdings of all the subsidiary companies engaged in loans and financing
activities under one subsidiary. Recently, Orient Global, a Singapore-based investment
institution invested USD 76.7 million for a 22.5% stake in India Infoline Investment Services.
This will help focused expansion and capital raising in the said subsidiaries for various lending
businesses like loans against securities, SME financing, distribution of retail loan products,
consumer finance business and housing finance business. India Infoline Investment Services
Private Limited consists of the following step-down subsidiaries.
(a) India Infoline Distribution Company Limited (Distribution of Retail Loan Products)
(b) Money line Credit Limited (Consumer Finance)
(c) India Infoline Housing Finance Limited (Housing Finance)
IIFL (Asia) Pte Limited
IIFL (Asia) Pte Limited is wholly owned subsidiary which has been incorporated in Singapore
to pursue financial sector activities in other Asian markets. Further to obtaining the necessary
regulatory approvals, the company has been initially capitalized at 1 million Singapore dollars.
Products and Services
We are a one-stop financial services shop, most respected for quality of its advice, personalized
service and cutting-edge technology.
Equities
India Infoline provided the prospect of researched investing to its clients, which was hitherto
restricted only to the institutions. Research for the retail investor did not exist prior to India
Infoline. India Infoline leveraged technology to bring the convenience of trading to the
investor’s location of preference (residence or office) through computerized access. India
Infoline made it possible for clients to view transaction costs and ledger updates in real time.
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PMS
Our Portfolio Management Service is a product wherein an equity investment portfolio is

created to suit the investment objectives of a client. We at India Infoline invest your resources
into stocks from different sectors, depending on your risk-return profile. This service is
particularly advisable for investors who cannot afford to give time or don't have that expertise
for day-to-day management of their equity portfolio.
Research
Sound investment decisions depend upon reliable fundamental data and stock selection
techniques. India Infoline Equity Research is proud of its reputation for, and we want you to
find the facts that you need. Equity investment professionals routinely use our research and
models as integral tools in their work.
They choose Ford Equity Research when they can clear your doubts.
Commodities
India Infoline’s extension into commodities trading reconciles its strategic intent to emerge as a
one-stop solutions financial intermediary. Its experience in securities broking has empowered it
with requisite skills and technologies. The Company’s commodities business provides a contra-
cyclical alternative to equities broking. The Company was among the first to offer the facility
of commodities trading in India’s young commodities market (the MCX commenced
operations only in 2003). Average monthly turnover on the commodity exchanges increased
from Rs. 0.34 bn to Rs 20.02 bn. The commodities market has several products with different
and non-correlated cycles. On the whole, the business is fairly insulated against cyclical
gyrations in the business.
Mortgages
During the year under review, India Infoline acquired a 75% stake in Money tree Consultancy
Services to mark its foray into the business of mortgages and other loan products distribution.
The business is still in the investing phase and at the time of the acquisition was present only in
the cities of Mumbai and Pune. The Company brings on board expertise in the loans business
coupled with existing relationships across a number of principals in the mortgage and personal
loans businesses. India Infoline now has plans to roll the business out across its pan-Indian
network to provide it with a truly national scale in operations.
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Home Loans
Personal Loans
Get expert advice that suits your needs
Freedom to choose from 4 flexible options
to repay
Loan against residential and commercial
property
Expert recommendations
Expert recommendations
Easy documentation
Easy documentation
Quick processing and disbursal
Quick processing and disbursal
No guarantor requirement
No guarantor requirement
Invest Online
India Infoline has made investing in Mutual funds and primary market so effortless. All you
have to do is register with us and that’s all. No paperwork no queues and No registration
charges.
INVEST IN MF
India Infoline offers you a host of mutual fund choices under one roof, backed by in-depth
research and advice from research house and tools configured as investor friendly.
APPLY IN IPO’s
You could also invest in Initial Public Offers (IPO’s) online without going through the hassles
of filling ANY application form/ paperwork.
SMS
Stay connected to the market
The trader of today, you are constantly on the move. But how do you stay connected to the
market while on the move? Simple, subscribe to India Infoline's Stock Messaging Service and
get Market on your Mobile!
There are three products under SMS Service:
 Market on the move.

 Best of the lot.
 VAS (Value Added Service)
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Insurance
An entry into this segment helped complete the client’s product basket; concurrently, it
graduated the Company into a one-stop retail financial solutions provider. To ensure maximum
reach to customers across India, we have employed a multi pronged approach and reach out to
customers via our Network, Direct and Affiliate channels. Following the opening of the sector
in 1999-2000, a number of private sector insurance service providers commenced operations
aggressively and helped grow the market.
The Company’s entry into the insurance sector derisked the Company from a predominant
dependence on broking and equity-linked revenues. The annuity based income generated from
insurance intermediation result in solid core revenues across the tenure of the policy.
Wealth Management Service
Imagine a financial firm with the heart and soul of a two-person organization. A world-leading
wealth management company that sits down with you to understand your needs and goals. We
offer you a dedicated group for giving you the most personal attention at every level.
Newsletters
The Daily Market Strategy is your morning dose on the health of the markets. Five intra-day
ideas, unless the markets are really choppy coupled with a brief on the global markets and any
other cues, which could impact the market. Occasionally an investment idea from the research
team and a crisp round up of the previous day's top stories. That's not all. As a subscriber to the
Daily Market Strategy, you even get research reports of India Infoline research team on a
priority basis.
The India Infoline Weekly Newsletter is your flashback for the week gone by. A weekly
outlook coupled with the best of the web stories from India Infoline and links to important
Investment ideas, Leader Speak and features are delivered in your inbox every Friday evening.
Equities
India Infoline provided the prospect of researched investing to its clients, which was hitherto
restricted only to the institutions. Research for the retail investor did not exist prior to India
Infoline leveraged technology to bring the convenience of trading to the investor’s location of
preference (residence or office) through computerized access. India Infoline made it possible
for clients to view transaction costs and ledger updates in real time.
Over the last five years, India Infoline sharpened its competitive edge through the
following initiatives:
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Multi-channel delivery model:
The Company is among the few financial intermediaries in India to offer a complement of
online and offline broking. The Company’s network of branches also allows customers to place
orders on phone or visit our branches for trading.
Integrated middle and back office:
The customer can trade on the BSE and NSE, in the cash as well as the derivatives segment all
through the available multiple options of Internet, phone or branch presence.
Multiple-trading options:
The Company harnessed technology to offer services at among the lowest rates in the business.
Membership: The Company widened client reach in trading on the domestic and international
exchanges.
Technology:
The Company provides a prudent mix of proprietary and outsourced technologies, which
facilitate business growth without a corresponding increase in costs.
Content:
The Company has leveraged its research capability to provide regular updates and investment
picks across the short and long-term.
Service:
Clients can access the customer service team through various media like toll-free lines, emails
and Internet- messenger chat for instant query resolution. The Company’s customer service
executives proactively contact customers to inform them of key changes and initiatives taken
by the Company. Business World rated the Company’s customer service as ‘Best’ in their
survey of online trading sites carried out in December 2003.
Key features
 Membership on the Bombay Stock Exchange Limited and the National Stock
Exchange
 Registered with the NSDL as well as CDSL as a depository participant, providing a
one-stop solution for clients trading in the equities market
 Broking services in cash and derivative segments, online as well as offline under the
brand of 5paisa.com
 Presence across 19 states through a 177 strong branch network, with 75,000 online
registered users
 Provision of free and world-class research to all clients.
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Portfolio Management Services
You get recessions. You have stock market declines. If you don't understand that's going to
happen, then you're not ready; you won't do well in the markets. No need to worry. We at India
Infoline would take care of all issues related to managing your hard earned money.
Our Portfolio Management Service is a product wherein an equity investment portfolio is
created to suit the investment objectives of a client. We at India Infoline invest your resources
into stocks from different sectors, depending on your risk-return profile. This service is
particularly advisable for investors who cannot afford to give time or don't have that expertise
for day-to-day management of their equity portfolio.
It is all about your money, being managed by the experts, while you continue with your routine
life. Isn't it simple and totally hassle free.
What's more, you can keep track of your dividends / bonus / rights issues with paperless
tracking. So you always know how fast your investment is growing. It basically means
assigning the right job to the right person.
Salient Features of India Infoline PMS:
• Expert team of Research Analysts

• Stock Picking done by the Investment Committee
• Dedicated Relationship Manager
Technology and Service driven Back-Office
Commodities
India Infoline’s extension into commodities trading reconciles its strategic intent to emerge as a
one stop solutions financial intermediary. Its experience in securities broking has empowered it
with requisite skills and technologies. Increased offering: The Company’s commodities
business provides a contra-cyclical alternative to equities broking. The Company was among
the first to offer the facility of commodities trading in India’s young commodities market (the
MCX commenced operations only in 2003). Average monthly turnover on the commodity
exchanges increased from Rs 0.34 bn to Rs 20.02 bn. The commodities market has several
products with different and non-correlated cycles. On the whole, the business is fairly insulated
against cyclical gyrations in the business.
13
India Infoline distinguished its business through the interplay of knowledge and
technology:
Complete solution:
The Company provides a complete - advice to execution – solution facilitated by information

and advice on likely commodity trends in the Indian and international environment.
Technology:
The Company has extended the trading terminal to the investor’s home/workplace reinforced
with real-time commodity information and ledger position.
Rates:
The Company harnessed technology to offer services at among the lowest rates in the business.
Membership: The Company widened client reach in trading on the domestic and international
exchanges.
Key Features
 Enjoys memberships with the MCX and NCDEX, two leading Indian commodities
exchanges.
 Recently acquired membership of the DGCX.
 Multi-channel delivery model, making it among the select few to offer online as
well as offline trading facilities.
 Extended commodity trading to retail investors, among the few Indian financial
intermediaries to do so.
 Online business at 80% of revenues dominates commodities trading revenues.
 Provides regular commodity updates pertaining to the Indian and international

environment.
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2.3 LITERATURE REVIEW
EBROKING -The Answer to the fast changing world

To start with, we have to ask ourselves the question-Why Ecommerce?
Changing profile of customers:
-Today’s generation is more literate, more technology savvy.
-The ratio of earning members in each family is on the increase.
-The use of the internet for various needs is on the increase.
-New customer segments are evolving; those that were practically non- existent some years
back.
-Purchasing power/spending power of families have increased owing to better salaries,
booming Economy.
Above all, the factor that is revolutionizing all the rules of business is, one word-The
Internet
E broking-Down Memory Lane

 1494 - The origin of the stock market when the Amsterdam Stock Exchange was set up.
 18th Century-East India Company was a dominant Institution in India. Stock Markets
traces its infancy in India
 1875-The Bombay Stock Exchange" (BSE) was founded
 1992-The National Stock Exchange of India Ltd. was incorporated
 2000-Internet based trading commences at NSE in 2000
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Why Does Internet Broking have a Future in India?
Top 20 Countries with Highest Number of Users
250,000,000
200,000,000
150,000,000
Users
100,000,000
50,000,000
0
United States
China
Japan
India
Germany
United Kingdom
Korea (South)
Italy
France
Brazil
Russia
Canada
Indonesia
Spain
Mexico
Australia
Taiwan
Netherlands
Poland
Turkey
I
N
D
I
A
16
The Net Addiction
Internet U
No Of users In Millions
The no of internet users has risen tremendously from 14 lakhs in 1998 to 5 crores in 2005.The
Percentage penetration has increased from 0.1% in 1998 to 4.5% in 2006. This by itself is an
indication that a huge population is just waiting to be tapped
Successful Internet Business Models

Post the 1999-2000 dotcom bust the first question that popped up was-Why choose the Net?
The answer lies in two words:
Internet negates two barriers namely 1) Time and 2) Distance
The key factors required to succeed in an Internet based model are:
 Develop a unique website
 Control the product line
 Introduce new products on a regular basis
 Ensure easy and reliable payment methods
 Provide Customer Friendly service
 On-time delivery
 Develop a clever marketing strategy
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Successful Internet Business Models I
 Transformed the conventional auctions from garages and flea markets to e-market
places
 Sells just about anything from antiques and jewelry to auto insurance.
 Buy coffee from Brazil, Porcelain coffee cup from China and have a simmering cup of
coffee at your home in India. That’s Internet for you.
 As of March 2007 registered user base is 157 million, up 40% from March 2005.
 The first quarter earning in 2007 was 250+ million dollars
Successful Internet Business Models II
 One of the greatest success stories of recent times, Google was started by two Stanford
graduates Larry Page and Sergey Brin in 1998 as privately held company.
 Its IPO in 2007 raised $1.87 billion making it a $35 billion company. Which other
company has grown that fast?
 What started as a simple search engine company is today a mammoth in the Internet
space.
 Today Google has companies like Orkut(Social networking), Blogger, You tube etc in
its fold
 Ask yourself this question-Whom does Wal-Mart, the world’s largest retailer think as
its biggest competition in business?
 The answer is Google since it has the power of information to let people know about
competitive prices
What is E-broking?
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To put it very simply, it is the facility to place trades in the stock markets using the internet, be
it from your office, home or your flight back home.
Offline Vs Online Broking (E-broking)

 Today Offline broking has evolved to a stage where the client places orders to buy/sell
shares through a dealer
 E-broking is where a customer places orders to buy/sell using the internet as a medium
 In offline broking the client can either go the Broker’s office or physically instruct him
to execute orders for him or place a phone call to execute orders
 E-broking is all about convenience. Login. Select the scrip. Place Orders. That’s it.
 Offline broking requires cheques to be signed, Delivery Instruction slips and other
forms to process transactions
 E-broking requires no form fill ups after account has been opened. Everything happens
on the net. Money transfer happens through Payment Gateways.
 Research calls in offline broking happens through phone calls and physical reports
 E-broking facilitates checking Research reports, calls, trade reports , portfolio
statements online
 Contract notes are given out as physical certificates in conventional offline broking.
 Digital Contract notes are sent to the client in E-broking
Online Offline
M oreScalable Less Scalable

M oreTransperent Less Transperent
SystemDriven Peopledriven
Less Personalise M orePersonalise
Fundtransfer anytim e, anywhere Restricted
M arket Updates online ViaEm ail/ Phone/ Fax
M oreSecure Phoneverification
E-broking In India
• E-broking is India is still in its early stages
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• The E-broking space primarily has 4-5 major players with some big names still slated to
make their presence felt
• In India, around 12-15% of the total volumes in cash market are done Online whereas in
the West around 50% of the cash market trades are done online
• Unlike Offline broking, online broking works on a more defined slab based system
based on type of account that a customer opts.
• The E commerce market is supposedly around Rs.23 billion of which E-broking is a
very small percentage
• The population trading in stock markets in India is just about 1%.
Online industry in India

 Constitute approx around 10% of exchange vol.
 100% rise in Vol. in last one year – Jan 04 - 4.5% and Jan 05 – 10%
 Globally online trading volumes constitutes to 30-40%.
 85% of the volume comes from top 5-6 players.
 No. of online customer have reached to approx. 7 lakh.
 Derivative volume has surpassed cash volume.
 Considered the most scalable model
 Perfect tool for Positional / Day trader.
 Major players – ICICI Direct, SSKI, India Bulls & Kotak.
All these companies have entered the online ring and promises exciting times ahead.
As E- Brokers the following issues are crucial in competition such as:
⇒ Brokerage: The starting point for individual investors examining the various online
trading schemes is obviously the brokerage rate. In a competitive marketplace
brokerage is a key differentiator among different schemes offered by e-brokers.
Evidence on brokerage rates seems to suggest that this differentiator may be of
limited value to most investors. ICICIDirect.com, the first entrant into e-broking,
charges the highest brokerage. However, late entrants such as 5Paisa.com, Sharekhan
and Kotakstreet.com all charge comparatively less amount. Icicidirect.com as the first
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entrant has made itself the first integrated e-broking service provider in the market
and is the biggest competitor of Motilal Oswal Securities Limited.
Players such as SSKI's Sharekhan, which launched their scheme in July 2000, have
tried to steal a march over icicidirect.com by introducing a flat fee product of Rs.1000
per month. This trade-as-much-as-you-want scheme was an innovation targeted
mainly at frenzied day-traders.
But even this innovation gave Sharekhan only a small head start over its peers.
Kotakstreet.com, which launched its e-broking services in August, not only halved the
flat fee from Rs.1000 to Rs.500, but also allowed short sales and offered clients the
option of trading against securities up to three times sales marked for delivery.
Clearly, innovation offers limited scope for it is a matter of time before almost all the
schemes offer more or less identical features.
⇒ The pedigree of the e-broker: The pedigree of the e-broker is important, as that is
likely to identify the serious players. Going forward, consolidation is inevitable even
in this industry and when that happens, online trading sites such as icicidirect.com,
Invest smart, Kotakstreet.com as well as Motilal Oswal Securities Limited with a
good pedigree have a much better chance of survival than the stand-alone sites such as
5paisa.com and Indiabulls.
⇒ Technology and back-.office infrastructure: In these early months, online trading is

likely to attract a host of entrants as India has already seen so far. But the key
differentiator will be the investment in technology and back-office infrastructure.
Even if small-time e-broking outfits make the initial investments in technology, the
recurring expenses, which would also be high, may prove to a burden in the long run.
For investors looking at online trading from a medium-to-long-term perspective, sites
with deep pockets and a pedigree will be a good choice.
⇒ Quality of service and security: As the industry quickly consolidates and technology
gets standardized, the quality of service will be the key differentiator. From an
investor's perspective, in the initial stages holding at least two online trading accounts
with two different outfits will be prudent in the long run. Basically, this will help the
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investor evaluate the quality of service and ``security-related issues'' (say, in terms of
128-bit encryption or privacy/confidentiality in access), between two outfits. In the
long run, depending on the service levels, the investor can switch to the better player.
⇒ Integrated package: Currently, only icicidirect.com offers a seamless 3-in-1 package

of broking, banking and demat accounts. This effectively means that through the click
of a mouse, an investor can buy and sell shares, and forget about the paperwork
involved in settlements and transfer of shares or money. The rest of the players are
also putting such an integrated package in place, but icicidirect.com has a head start,
as the others may be able to offer a seamless online trading experience only after an
independent payment gateway (which provides connectivity between different banks
for online banking) is firmly in place.
Understanding the Process I
22
Understanding the System II
23
EXCHANGES
ORDER ROUTING SERVER
RISK MANAGEMENT SERVER
ORDER MANAGEMENT SERVER
AUTHENTICATION TRADING SITE

SERVER
INTERNET
Client
Client Terminal
Terminal
Advantages of E-broking
• No necessity of paperwork once initial account Opening form is opened.
• Flexibility to invest from the convenience of home/office/cyber café-just about any

place with a net connection
• No waiting for cheques to get realized for you to start investing-Online payment
gateways make instant transfers possible
• Facility to avail of research through online reports, recommendations during live market
hours
• Viewing of portfolio performance made available online.
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• Facility to get digital contract notes emailed at the end of day.
• Facility of seeing the Live market rates as streaming prices
• Security of transactions is very high considering SSL connections.
So how far is E-broking truly online?

 Online is no more a pure click model, it’s a combination of both click n brick.
 Some call it Call & Trade, other calls it Dial & Trade. But in essence, and it’s
about the phone buzzing non stop in the Customer care department.
 The team consists of executers and not just an advisor, hence one person can
handle min 100 clients
 No tension of RMS, everything is online on the basis of funds
 Mostly customers have accounts with more than one online player, hence calling
helps in greater recall rate
 What started as an additional service has now turned out to be a revenue
generator
Over-View Of E- broking Industry

Existing players are competing for a piece of the market share that seems to be getting
aggressive by the day
New players slated to make their presence felt in the near future are
R-Trade (Reliance Money), ABN (Amro Broking), SBI Cap, Citibank (Smith Barney),
Standard Chartered, etc are few others to start operations.
International brokerage houses like Charles Schwab will make an entry very soon.
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New customer segments have evolved-e.g. housewives, fresh management graduates, first
timers to stock market, etc.
Increasing trend of alliance tie ups between brokers and banks
This space is poised for a growth of 100% in volume YOY
There are some ten dotcom players, such as:

 Icicidirect.com
 Invest smart
 5paisa.com / India Infoline.com
 Indiabulls
 Kotakstreet
 Sharekhan Securities
 Motilal Oswal Securities
Positioning of Major players

Indiabulls-creating a world of smarter investors
26
The ad basically talks about how Indiabulls empowers customers with Knowledge thereby
making them smart investors. The ad has a Sardar ji asking questions on the markets.
Kotaksecurities.com-online investing made simple
The ad takes about simplifying the stock markets for you without complicating matters.
General perception is that the markets are tough to understand and choices are umpteen but
with Kotak Securities, it’s about simplicity
Icicidirect.com - Strangely enough they don’t have a tvc for icicidirect.com and HDFC
securities. But owing to the fact that their banks, mutual funds and insurance business have a
name for themselves, people seldom notice since brand awareness of ICICI/HDFC as a group is
high.
27
Motilal Oswal-Solid Research. Solid Advice
As the tag line goes, the positioning is centered on Research and advice. The ad shows a man
who is very skeptical when it comes to making even the most mundane decisions but when it
comes to Motilal Oswal, he trusts them too well to worry about investments
Sharekhan-Simplifying the stock market
28
The stock markets are like a jungle .And to be the king, you need simple and understandable
solutions which is what they claim to offer. Their first steps program is aimed at educating the
novice investor .The ad shows a man who enters a mall and is looking for the Flush button. He
doesn’t know what to do until he tries to open the door and ultimately ends up clicking the
flush button. The ad says that stock markets can be like a jungle but with Sharekhan, you can
rest assured.
IDBI Paisa Builder tag line -Wealth is waiting
Tracking Competition/Focus
 For I direct it has always been nos., every person is a prospect, now with 11 lakh
accounts their focus is customer acquisition
 For Indiabulls, every marketing guy is a revenue generator, target is to achieve rev of 5
times salary in first three months else exit. (acquire and retain)
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 For kotaksecurities.com its no of accounts and margin money, rest will be taken care of
by 100 customer service agents sitting at one place
 For sharekhan its nos., clear differentiation between speed trade and classic account and
focus is only on acquiring customer.
 5 paisa, Angel, and other players are also have dedicated team focusing only on
acquisition
Client Acquisition strategy
Keeping in mind, our twin fold objectives of providing quality service and acquiring and
retaining customers, the E-broking wing has been clearly divided into the following streams:
Direct customers
• E-franchisee Customers
• Franchisee Customers
• Alliance customers
The Future of E-broking

After the Net, the Mobile revolution has already begun.
India is all set to become the world’s second largest Mobile phone Market by 2008 according
to Data comm. Research Company
Customers will buy/sell/check their portfolio on mobile, just the way they check messages
All you will have to do is enter the stock name and click on Quote
The client, after checking the price can choose to Buy Shares and also view his portfolio
When client clicks on Buy shares, he will be asked to login and then in a matter of minutes, he
will be able to trade in the stock markets.
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What does the Future Hold?
⇒ Online Broking will witness a sea change in the way the business will function.
Newer products, stiff competition and improved trading engines will characterize
the industry
⇒ The industry will shift gradually to a fixed broking charge, following in the foot
steps of the West. One paisa campaign marked the beginning of this phase in India
along with Kotak Flat charge.
⇒ Alliances will hold a significant key to customer acquisition. The trend has already
begun with major Banks getting into the act. E-z trade@ SBI was again a trendsetter
owing to the sheer size of the tie up.
⇒ Housewives and College students will emerge as new target segments that will over
a period of time become revenue earners.
⇒ Cross selling multiple products will be a key area of focus. The concept of financial
planners will gain immensely.
⇒ The Future looks Bright. It will happen at the click of a button. That will in essence
be Business @ the speed of thought
3. RESEARCH METHODOLOGY
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Objective:
• To know more about E- Broking Services offered by the retail brokerage firms.
• A Competitive Analysis on the E-Broking services offered by the companies in Jaipur.
Hypothesis:
All Portfolio Management firms provide very good services
Sample:
The sample consists of the following: -
 Sharekhan Securities
 India Infoline
 Kotak Securities
 Unicorn Securities Pvt. Ltd.
 ICICI Direct
 India Bulls
 Motilal Oswal Securities Limited
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4. RESEARCH ANALYSIS
Company Synopsis
Product offerings
Company Name Product Name Target
Margin funding Research Advice
India Infoline TTADV Yes Yes Yes All types
Kotak Gateway Yes Yes No Retail
Kotak Value Yes Yes No Retail
Kotak Privilege circle Yes Yes Yes HNI
Kotak Kotak Freeway No Yes No Trader
Kotak High Trader No Yes No HeavyTrader
Kotak Assist (Asset
Yes Yes Yes HNI
allocator & advisory)
Classic Yes Yes Yes All Investors
Sharekhan Speed trade Yes Yes Yes Traders
Speed trade Plus Yes Yes Yes Heavy Traders
ICICI Idirect Yes Yes No All Investors
Indiabulls Power Indiabulls Yes Yes, but charged Yes All Investors
 All companies target different customers depending on different schemes that they offer
some schemes target only HNI whereas some target retail.
 Almost all the companies provide margin funding to their customers
 Most of the schemes provide research and advice too.
 Kotak provides the highest amount of schemes giving the customers a much wider
option to choose they scheme according to their convince.
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M a rk eAt D T OC u s t A cAqc tiv e C Au vs tg G .B ro k T e a m S t re n g th

S h a re
F irm s in c r T ill d a te P e r d a y P e r d a y O n P a y ro Clls o n s u lta n t USP
I C I C I D ire 2c 5t % 6 0 0 1 1 la k h 1 .2 5 la k h 1 .2 5 c r 6 0 0 5000 A g g r e s s iv e m a rk e tin g
I n d ia B u lls2 0 % 8 5 0 3 la k h 2 5 - 4 0 K 1 c r 5000 A g g r e s s iv e p ric in g
S h a re k h a1n0 - 1 2 %2 5 0 1 .5 la k h 1 0 - 1 2 K 1 0 - 1 2 L a k h 4 5 0 2000 B ra n d v is ib ility
K o t a k 1 2 - 1 5 %3 5 0 1 la k h 6 - 8 K 1 5 - 1 8 la k h 5 0 0 1 5 0 0 - 1 7 5 K0 o ta k A s s is t - o n lin e P M S
M O S L 3 .5 0 % 1 0 0 2 2 k 1 .8 k 4 la k h 100 1 4 0 C u s to m is e d T ra d in g S o lu tio n
 ICICI Direct has the highest market share when compared to the others as they were the
first ones to enter the market.
 Even in terms of collecting brokerage per day ICICI Direct exceeds when compared to
the other firms.
 IndiaBulls even though entered late in the market has still acquired good amount of
customer base.
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Sales Activity
FIRM INDIA
ACTIVITY MOSL KOTAK ICICI INFOLINE SHAREKHAN INDIABULLS
DIRECT
Cold calls not so not so often not so often yes not so often yes
often
Tele calling yes yes yes yes yes yes
Client references yes yes not so often yes yes yes
Company Website yes yes yes yes yes yes
Enquiry/ walk-in yes yes yes yes yes yes
Personal leads of not so not so often not so often yes not so often yes
employees often
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Account opening charges
Company Prod. Name Prod. Type A/c opening charges Min. Brok. Commitment
SSKI Classic A/c Web 500 No
Speed Trade Application 750 1000
Speed Trade Plus Application 1500
Kotak: Gateway 500 No
Value nil No
Privilege Circle nil No
Freeway 500 No
High Trade & Assist 500 No
ICICI Direct Web 750
Application >30,000 p.m
India bulls Web & Application 750 No
Inverstmart Smart Invest Web 750
Smart online Application 1500 1500
Smart Trade Web 750
India Infoline Traders Terminal Web, Application& Offline 555 No
 India Infoline has only web which is more preferred and which gives application and
offline facility too.
 ICICI Direct has the highest minimum brokerage per month as compared to the others.
 Kotak and Investsmart have the highest number of products offered to the customers.
 MOSL has the highest brokerage compared to the others but very personalized service
too.
5. RECOMMENDATIONS
36
According to me all the companies are good in their own respective way. Some are good at
their brokerage whereas some are good at their services; some have good products whereas
some offer cheap products. All the companies are fighting competition in different ways:
• For I direct it is the market share as they were the first ones to enter this business. They
had a plus point there as they were the first ones to start it but again they don’t have a
service where the can take orders on the phone and book it. They don’t get a screen to
watch.
• For Indiabulls it is their aggressive marketing which counts for them the most and them
customer acquisition and then retaining them. India bulls in a very short time have got
in a lot more than expected and the very less brokerage that they offer attracts
customers.
• For Kotak it’s their name and which counts and their services to their customers which
they have been providing since a very long time.
• For India Infoline it’s their terminal which is the best. They provide with excellent
features and a lot of options for their different type of customers.
• Angel, Religare and other players are also are also providing with excellent features but
still not in the bull run till now.
No one company can be recommended as they all are good in their own way and all are
competitive in their own way. All the companies are good at providing their services in their
own way. The companies are very competitive, if one company takes a step the other company
takes two steps and all the benefits go the customer towards the end. Therefore the only benefit
that someone achieves is the customers who gain from these competitive firms in terms of
service provided by them as well as in cost terms.
6. CONCLUSION
“Competition today is at a mouse click.”
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Today with the growing competition it is very important to be intact. E –Broking in India is
going to flourish as today we have a large number of people using the internet, we have will
flourished infrastructure, more and more people are getting educated due to which there will be
a boom in the E – Broking service.
But then there are also factors which may have a negative effect on E- Broking like the market
conditions etc. ignoring the risks involved, one might be drowned while sailing the in the
ocean. But then it is more convenient for the people. The customers are getting a lot of comfort
level and their work gets much simpler and online broking is much cheaper to than going to a
broker to get your trades booked. And the most important thing is the increase and penetration
of online use in the India which has increased the potential market size for online broking on an
annual basis. A large share of the expected growth in Internet can be attributed to the increase
in the online population and thus online trading too. Internet-based stock trading, while still in
its infancy in the country, has the potential to really benefit the investor, with its ability to offer
greater speed and transparency at a much lower cost. The essential component of Internet-
based trading is the interface between broker, bank and depository participant, and as Net-
based trading becomes a reality this interface will develop.
The advent of Internet-based trading in the country will change the face of the Indian capital
market very soon in terms of the volume of transactions, the nature and settlement of trade, and
the profile of market participants. I personally don’t think many of our colleagues in the
business have really understood the impact the Net can have on the broking business. The
growth of Internet-based trading as a mass trading technique in the country is unstoppable,
going by the indicators available and the signals for the future. When it ultimately gathers
momentum, the biggest beneficiary will be the investor, who will be able to trade with greater
speed and transparency, and at lower costs.
7. ANNEXURE
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7.1 TRANSCRIPTS:
RESPONDENT 1: Mr. Vikas Lodha

Company Name: Motilal Oswal Securities Limited
Email: vikaslodha@motilaloswal.com
Designation: Senior Manager
Phone no.: 9322985125
1. What is the market share the online broking of your company?

It is approximately 3.5% to 4%
2. What are the registration charges?

 No charges
3. What are Demat account-opening charges?

 Free for first Year
 2nd Year onwards - Rs400 per annum
 Zero Transaction Charges (if executed online)
4. What are the Interface provided by you?

 Banking:
 Demat:
5. Features of the accounts:

• Live intra day /positional / and delivery calls on your terminal helps you take informed
decision.
• Multiple market watch, with NSE/BSE cash and derivatives on single screen.
• Execution through Exe/Web based trading platform.
• Online transfer of funds through multiple banks.
• Technical Charts: Intra day/ Daily/ Weekly/ Monthly/ Quarterly/ Yearly
• View live NSE cash / derivatives and BSE cash on the same screen.
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• Research reports, daily market diary, pivot points and Derivatives diary.
• Advisor helps you evaluate & restructure your portfolio continuously. You can get a
detailed perspective on the markets, sectors & individual companies from your advisor
(Selected customers)
• Dealer/advisor support during trading hours
6. What are the types of accounts and the brokerage that the company provides?
1. Freedom Account
 Ideally for Intra day Traders/ Speculators.
 No Access to Research, however the client will get intraday flash calls, pop ups,
positional calls, technical recommendation on trading screen.
 Application Money: Rs.500000 (Cash or Scrip Margin)
 Monthly Brokerage Commitment Rs.500
Brokerage:
⇒ Delivery Based = 0.02 %
⇒ Intra day = 0.15%
⇒ F&O = 0.02%
Brokerage is exclusive of Service Tax, STT.
2. Value Investing Account

 Ideally for HNIs/ MNIs.
 Access to world class Research & Advice.
 Dedicated Relationship Manager for advice, client portfolio maintenance and
personalized services.
 Application Money: Rs300000.00 (Scrip Margin Rs.600000)
 Monthly Brokerage Commitment Rs.500
Brokerage:
⇒ F&O = 0.02%
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3. Easy Account
 Ideal for Retail Investor.

 Monthly Brokerage Commitment Rs500.00
 No Access to Research, however the client will get Intra day flash calls, pop ups,
positional calls, technical recommendation on trading screen.
 Application Money: Rs.5000.00
Brokerage:

⇒ F&O = 0.02%
RESPONDENT 2: Mr.Varun Singhal

Company Name: ShareKhan
Email: varunsinghal@sharekhan.com
Designation: Co – Head Advisory E-Broking
Phone no.: 9819200501
What is the market share of the company?

It is approximately 10-12%
What according to you is the USP of the company?

 Franchisees all over (launched an all-out effort to spread their reach across the country)
 Timely and qualitative investment service through a combination of online and offline
facilities
Name of the company
What are the account opening charges and the brokerage?

The account opening charges are Rs.750/- for any of the two accounts and can trade from both
the two without paying anything extra.
Demat opening charges: Nil
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Brokerage:
Equity
Delivery = 50p on every Rs.100
Intra day = 10p per Rs.100 (negotiable)
Derivatives
Delivery = 10p for buying and 10p for selling.
Intra day = 10p for buying and 2p for selling.
What is the Interface you have?

⇒ Banking – HDFC
⇒ Demat – SSKI
What are the types of accounts provided by you and their feature?
1. CLASSIC ACCOUNT “Invest effortlessly”

Features:
 One can have an Online trading account for investing in Equities as well as
Derivatives
 They have Integrated Banking, demat and digital contracts
 There is an instant cash transfer facility for the purchase & sale of shares
 The clients can make IPO bookings
 One can get Instant order and trade confirmations by e-mail
 The client gets Personalized Market Scan with customized stock ticker
 Single screen interface for cash and derivatives
 Every client has a very own Portfolio Tracker
2. SPEED TRADE ACCOUNT “Trade effortlessly”

Features:
 Instant order Execution & Confirmation
 Single screen trading terminal
 Real-time streaming quotes, tic-by-tic charts
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 Market summary (most traded scrip, highest value and lots of other relevant
statistics)
 Hot keys similar to a brokers terminal
 Alerts and reminders
 Back-up facility to place trades on Direct Phone lines
 Single screen interface for cash and derivatives
RESPONDENT 3: Mr. Jugal Maheshwari

Company Name: India Infoline
Email: jugal@indiainfoline.com
Designation: Relationship Manager
Phone no.: 9784842850
What is the USP of the company?

 Paisa sense: Lowest Brokerage on the face of the earth
 Personalized service: The highest level of personalized customer service using call
centers, dedicated staff and e-mail.
 Protection: Investment in technology to ensure protection against fraud and hacking.
They use encryption, firewalls and two level password protections to ensure this.
 Pedigree: High research quality, investment ideas and news scoops
What is the brokerage offered by the company?
Product Brokerage Securities Handling Charges Finance Charges Total

Trading 0.05% NIL NIL 0.05%
Delivery 0.25% NIL NIL 0.25%
What are the margin norms provided by the company?

⇒ Delivery – 2 times, (if deposit Rs.2000, then can trade only for Rs.4000/-)
⇒ Trading – 10 times, (if Rs2000 is deposited as margin, you will be allowed an
exposure of up to Rs.20000).
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\What are the Account opening charges: 555/-

Demat opening charges: Nil
What’s the company’s interface?

⇒ Banking – HDFC, AXIS BANK.CITY BANK & ICICI BANK
⇒ Demat – IIT Corporation
What are products offered by the company and their features and the brokerage of the
company?
1. 5Paisa Trader Terminal
Features:
 Live streaming quotes and margin, position, marked to market profit & loss report.
Price watch on any number of scripts.
 Intra day charts, updated live, tick-by-tick.
 Live margin, position, marked to market profit & loss report.
 Set any number of price alerts on any number of scripts.
 Flexibility to customize screen layout and setting.
 Market depth, i.e. Best 5 bids and offers, updated live for all scripts
 Instant trade confirmation.
 Online access to both accounts and DP.
 Live updated Order and Trade Book.
 Facility to place orders on the phone in all major cities.
 Facility to place after market orders
 Online fund transfer facility from leading Banks
 Online intra-day technical calls.
 Exhaustive database of over 5000 companies
 Historical charts and technical analysis tools.
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Brokerage
⇒ Intra day trading = 0.05%
⇒ Delivery = 0.25%
2. 5Paisa Investor Terminal

 Investors, who invest quite often, churn their portfolios regularly and keep a close
watch on the market. They need to watch live quotes and live charts.
 Active stock market traders with medium volumes
 Students and researchers who need live streaming quotes and intra day charts
 Corporate treasury people
Brokerage
⇒ Intra day trading = 0.05%
⇒ Delivery = 0.25%
Registration fees - NIL
Margin norms – maintain a margin of Rs.2555/-
RESPONDENT 4: Mr.Chintan Kotak

Company Name: Kotak Securities
Email: chintankotak@kotak.com
Designation: Marketing Manager Online Broking
Phone no.: 9920103588

The market share: 12-15%
What’s your company’s interface?

⇒ Banking – Citibank
⇒ Demat – Kotak Securities

 Solid research team that gives good fundamental calls which mostly hit the
mark.
 Site is very organized and has great links
45
 Higher batting average
What are the types of products that the company offers and their features and the
brokerage offered by each?
1. Kotak Gateway Account
Features:
 One can invest in IPO and earn higher returns.
 They provide Research Reports on the economy.
 Low brokerage rates
 They even provide research advice via SMS
 Free news and market updates.
 Exposure of up to 15 times the initial margin on select stocks with super multiple
Margin norms: any amount Rs.20000/-to Rs.500000/- has to be maintained
2. Kotak Value Account

The Kotak Securities Value Account is specially equipped to make investing simpler for the
clients. The brokerage of this is similar to that of Kotak gateway account.
Margin norms: any amount between Rs.500000/- and Rs.1000000/-
3. Kotak Privilege Circle Account

In this the clients enjoy premier and top-line trading services. Brokerage same as kotak
gateway account.
Features:
 Independent market expertise and support through a dedicated relationship manager.
 In this they provide unlimited call & trade facility & SMS alert free of cost.
 They provide 6 times exposure on the margin and exposure up to 15 times the initial
margin on select stocks with Super Multiple
 Margin finance at attractive rates.
 Lowest delayed payment interest.
 Access to K.E.A.T Premium free of cost.
 A discount of 50 % to 100% on the DP charges.
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Margin norms: any amount more than Rs.1000000/-
4. Kotak High Trader Account

Features:
 They provide 6 times exposure on the margin.
 Brokerage charged is low as 0.023%*.
 Access to K.E.A.T Desktop, KEAT Premium, research reports, intra day calls
(nominal charges), SMS alerts.
 They even provide free news and market updates.
Brokerages and charges
Derivative = the minimum brokerage for Daily Square up is 0.07% negotiable to 0.023%
depending on the size of the portfolio
Delivery and cash the brokerage is the same as other accounts.
Margin norms: any amount less than Rs500000/- as margin, by way of cash or stock.
5. Kotak Freeway Account

Kotak Securities Freeway enables the clients to trade as many times as they like - at a fixed
brokerage. They just have to pay a fixed brokerage of Rs.999/-
Features
 They provide 4 times exposure on the margin.
 In this they provide access to K.E.A.T Desktop, intra day calls (nominal fee),
research reports, SMS alerts
 Free news and market updates.
Brokerages and charges
Flat brokerage = 999 charged every month
Minimum brokerage
⇒ Cash segment = 0.4% and 0.1%
⇒ Derivative segment = 0.3%
Margin norms: Rs.125000/- by way of cash or stock.
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6. NRI Account
 Online delivery based trading through NRI- Trinity Account.
 They provide top class research report.
 They also have the facility to trade on both- NSE and BSE.
Account opening charge: Rs1500
Average Quarterly Maintenance: Rs25000/- in Savings account
Brokerage: - 1% on 10lakhs and decreases according to the value of trading
7. Assist Account:
Provides assistance to the clients to make the right decisions at the right time and also gives
them assistance as to where to invest and when.
Features
 India's finest Research Analysts - working towards the client’s objectives
 Complete account transparency and portfolio tracker with the facility to view
ledgers and reports online.
 As an ASSIST client, they also get to enjoy the benefits of a dedicated customer
service which will address their queries on Account status, transaction details, fund
status and Order details.
Margin norms: 5-10lakhs margins in Cash component.
Margin to be above 10lakhs, a minimum of 5Lakhs or 25% margin (whichever is higher) would
have to be in cash.
Brokerages:
 Delivery = 0.50% which increases to 1.25% when the margin increases to Rs5lakhs and
for squaring off.
 Derivatives = 0.07% on both sides.
Exposure is provided up to 4 times, which the amount has to be paid within T+2 days failing
which they would charge an interest up to 20.24% in delivery.
RESPONDENT 5: Mr.Mihir Shah

Company Name: ICICI Direct
48
Email: mihirshah@icicidirect.com
Designation: Senior Relationship Manager
Phone no.: 9819616622
How many online clients do you have?

More than 300000 customers

The market share of the company is 25% approximately.

 Brand name
 Integrated products (banking, trading and demat) and therefore secure and safe so there
is no need to worry about credit/debit of shares or the amount.
 128-bit encryption enabled Secure Socket Layer (SSL) to ensure that the information
transmitted across the Internet is safe and cannot be accessed by a third party
 Invest online in IPOs, Mutual Funds, GOI Bonds, and Postal Savings Schemes all from
one place. One can also get insurance through ICICI Lombard General Insurance.
Account opening fees – Rs.750/-

Annual Service Charges - Rs.300/- payable in the month of April each year
What the company’s Interface:

 Banking – ICICI
 Demat – ICICI
Transaction Charges:
a) Market Buy - 0.03% of the transaction value subject to a min. of Rs.25/- per
transaction
b) Market Sell - 0.04% of the transaction value subject to a min. of Rs.25/- per transaction
49
c) Rejection/fails - Rs.25/- per entry (within 24 hours)

Extra late payment charge of 0.10% subject to a min. of Rs.50/- per transaction.
Demat Charges - a) No demats charges for ICICI and ICICI Bank shares.
b) For other securities, Rs.2/-per certificate subject to a minimum of Rs.35/- per DRF.
Remat Charges - 0.10% of the value of the securities rematerialized subject to a minimum
of Rs.25/- per request
Pledge Creation - 0.02% of the transaction value subject to a minimum of Rs.25/- per ISIN
and per request.
Invocation/ Revocation - 0.03% of the transaction value subject to a minimum of Rs.25/-
per ISIN (International Securities Identifying Number) and per request.
Minimum value of the trade - Rs.1000/-

Minimum commission - Rs25/- per trade inclusive of service taxes, postage of contract note
and demat market transaction charges.
RESPONDENT 6: Mr. Vicky Shroff

Company Name: IndiaBulls
Email: vickyshroff@indiabulls.com
Designation: Relationship Manager
Phone no.: 989203439

The market share of the company is 20% approximately
What are the opening Account and Demat Charges?

It is Rs.700/- with both the accounts
Terminal charges – Rs.750
Margin exposure: 4 times (which the clients have to pay within 5 days failing which they are
charged up to16% of interest)
Margin funding: 2 times, (which the clients have to pay in 3 days failing which they are
charged interest up to 16-20%)
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What is the company’s interface?

⇒ Banking – HDFC
Demat – Indiabulls

Fast in implementation of orders and real time quotes.
Good rate of brokerage
Good Relationship Manager Responsiveness
What is the brokerage of the company?

⇒ Delivery - 0.30%
⇒ Intraday - 0.20%
Services:
 Live news about economy, corporate, market reports, industry, board meetings, market
commentary’s etc.
 Indiabulls equity analysis report – gives objective guidance to the clients to buy or sell.
1. Indian Bulls Signature Account

 Enjoy priority telephone access that gives the clients direct access to the Relationship
Manager.
 Benefit from full access to India bulls Equity Analysis their objective, fact-based
approach to rating stocks.
 Stay on the top of the investments with a snapshot of Account Statements. Get access to
Portfolio statement and access to digital contract notes.
2. Power India Bulls

 Fast Order Entry
 Tic by Tic Live Charts
 Technical Analysis
 Live News and Alerts
 Extensive Reports for Real-time Accounting
51
3. Indiabulls NRI Trading Account

 Provides access to comprehensive trading tools for independent NRI investors
They have a seamlessly integrated with Indiabulls Depository Account and with the
HDFC NRE/NRO Bank Account.
RESPONDENT 7: Mr.Piyush Pandey

Company Name: Unicorn Securities Pvt. Ltd.
Email: piyush_utsahi@yahoo.co.in
Designation: Team Leader
Phone no.: 988745096
What are the products that are provided by your company?

Products offered are:
• UNI PLUS
• UNI SWIFT
• UNI FLEX
• Insurance
• Real State
What is the company’s interface?

The company’s interfaces are Axis Bank, ICICI Bank, HDFC Bank and IDBI Bank so that they
can build up on their clients
What is the brokerage of the company?

⇒ Delivery - 0.03%
⇒ Intraday - 0.30%
52

• A single platform for trading/investments in multiple markets (equity, commodity, etc.)
• Aggressive pricing (transaction wise brokerage waived – only monthly fee for security
token)
• Franchisees all over (launched an all-out effort to spread their reach across the country)
• Timely and qualitative investment service through a combination of online and offline
facilities
• Name of the company
7.2 RESPONSE SHEETS
Response Sheet No: 1

1.1. Questionnaire:
 Preparing a rough draft of the questionnaire to get a proper format
 Type of questions, which should be asked.
 The flow of the questions
1.2. Date when the Guide was consulted: 24th July 2008
1.3. The outcome of the discussion: Mr.Sanjay Bindal helped me change my questionnaire.
There still has to be some changes made and we are working on this. This is not the copy of the
final questionnaire. I have already appointments fixed up for the next week and the following
week. We even listed down all the companies which we will be covering.
1.4. The Progress of the Thesis: I have started calling all the companies for appointments. I
have also started working on the literature part of my thesis.
53
2.1. Questionnaire:
Questionnaire is prepared and approved.
2.2. Date when the Guide was consulted: 28th July 2008
2.3. The outcome of the discussion:
We have discussed how the format of the thesis should be and over and above that he has given
me some references, which will help me carry my thesis further. We have discussed in brief the
objective and the methodology of the research. I have also got information from a few
companies who render online e-broking services.
2.4. The Progress of the Thesis:
I have a good idea now about how I am going to make the layout of my thesis and I have
already started the theory part of my thesis.

3.1. Questionnaire:
With the interview pattern being qualitative, the basic questionnaire keeps getting modified and
customized for each interview.
3.2. Date when the Guide was consulted: 12th August 2008
I have completed my entire survey expect for two to three more companies. The theory part of
the thesis is almost done. Only the interviews have to be put down in the written format. I m
still trying my best to get in few more companies if I can
3.4. The Progress of the Thesis:
Thesis is almost complete expect for a few things. A few companies’ interviews are pending.

4.1. Questionnaire:
4.2. Date when the Guide was consulted: 14th August 2008
54
Discussed the outcome of the interviews taken and tried to analyze them, out of which just one
interview is remaining which will be taken by this week.
4.4. Progress of the thesis
Follow up with one company is left and then just their interviews have to be typed and
compared with the other firms.

5.1. Questionnaire:
5.2. Date when the Guide was consulted: 18thAugust 2008
How to go about finishing the remaining interview and the one’s we already finished, we
discussed how to analyze them and put in the report.
As of now the thesis introduction and the annexure part is ready, just waiting for the interviews
to get over so that we can finalize the analysis and the conclusion part. Discussed the outcome
of the interviews taken and tried to analyze them, out of which just one interview is remaining
which will be taken by this week.
Follow up with one company is left and then just their interviews have to be typed and
compared with the other firms.

6.1. Questionnaire:
Done with all the interviews
6.2. Date when the Guide was consulted: Very often since the last week
6.3. The outcome of the discussion: The final copy was read by the external guide and he
asked me to make a few corrections in the report.
55

Almost complete except for a few things to be changed and the final touches are left.
7.3 QUESTIONNAIRE
Dear Sir/Madam,
We are doing a survey on the different kinds of Internet Trading Services offered by the
Leading Brokerage companies of India
We would appreciate if you could participate in the same and contribute your valuable insights
OFFICE - RECORD
Name of Respondent:
Designation:
Email-ID:
Phone No.:
====================================================================
=============================
1. Name of the Firm?
2. What are the different Segments in which your company operates or have future plans?
Capital Market
Futures and Options
Commodities
Forex
Mutual Funds
IPO’s
Margin Financing
PMS
3. What are the types of online products your company offers?
4. Does your company have the following features?

Calls and trade
New alerts
Technical tools
56
Research report
SMS service –Trade Confirmations/Ledger Balances/Research Calls
Contract Notes-Physical/Digital
5. What extra features do the products have?
6. What Value Added Features make you different from the competitors? One thing that
sets you apart from the competition!
7 What are your account opening charges?
8. What are the different Brokerage rates charged by your company?
9. How are u handling the competition who charge flat fees viz; Reliance Money
10. Margin funding offered by your company?
11. What’s the company’s interface?

Banking
Demat
Offline Interface
MOU Signed with bank etc
12. What is company’s market share?

Online
Offline
13. No Of Customers using your internet trading service
57
Thank you for your participation!
8. REFERENCE
Firms Contacted:
My colleagues at India Infoline Limited and my thesis guide and colleague Mr. Jugal
Maheshwari helped me out and used their contacts to get these Broking firms to participate in
the interview.
Websites:
www.indiainfoline.com
www.sharekhan.com
www.financialexpress.com/fe_full_story.php?content_id=147783
www.en.wikipedia.org/wiki/India
www.censusindia.net/results/provindia3.html
www.sify.com/sifyimagine/fullstory.php?id=13213758
www.sify.com/sifyimagine/fullstory.php?id=13213758
www.forbes.com/facesinthenews/2005/04/21/0421autofacescan02.html
www.thehindubusinessline.com/iw/2006/10/08/stories/2006100800591300.htm
www.kotaksecurities.com
www.moneypore.com
www.icicidirect.com
www.hinduonnet.com/businessline/iw/2000/09/03/stories/0703g051.htm
58
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A

“COMPETITIVE ANALYSIS OF ONLINE BROKING

Submitted in partial fulfillment for the award of

Submitted To: - Submitted By:-

Bhavans College Of Communication And Management,

Bharti Vidhya Bhawan,

SR.NO PARTICULARS PAGE NO.

2.2 COMPANY OVERVIEW

India Infoline Group

India Infoline Ltd

A SEBI authorized Portfolio Manager; it offers Portfolio Management Services to clients.

India Infoline Media and Research Services Limited.

India Infoline Commodities Limited.

India Infoline Marketing & Services

India Infoline Investment Services Limited

(b) Money line Credit Limited (Consumer Finance)

(c) India Infoline Housing Finance Limited (Housing Finance)

IIFL (Asia) Pte Limited

Products and Services

Our Portfolio Management Service is a product wherein an equity investment portfolio is

There are three products under SMS Service:

 Market on the move.

Wealth Management Service

Multi-channel delivery model:

Integrated middle and back office:

Portfolio Management Services

Salient Features of India Infoline PMS:

• Expert team of Research Analysts

Technology and Service driven Back-Office

The Company provides a complete - advice to execution – solution facilitated by information

 Recently acquired membership of the DGCX.

 Online business at 80% of revenues dominates commodities trading revenues.

 Provides regular commodity updates pertaining to the Indian and international

2.3 LITERATURE REVIEW

EBROKING -The Answer to the fast changing world

E broking-Down Memory Lane

Why Does Internet Broking have a Future in India?

Top 20 Countries with Highest Number of Users

The Net Addiction

Successful Internet Business Models

Successful Internet Business Models I

Successful Internet Business Models II

Offline Vs Online Broking (E-broking)

M oreScalable Less Scalable

Online industry in India

⇒ Technology and back-.office infrastructure: In these early months, online trading is

⇒ Integrated package: Currently, only icicidirect.com offers a seamless 3-in-1 package

Understanding the Process I

Understanding the System II

ORDER ROUTING SERVER

RISK MANAGEMENT SERVER

ORDER MANAGEMENT SERVER

AUTHENTICATION TRADING SITE

• Flexibility to invest from the convenience of home/office/cyber café-just about any

• Facility to get digital contract notes emailed at the end of day.

• Facility of seeing the Live market rates as streaming prices

• Security of transactions is very high considering SSL connections.

So how far is E-broking truly online?

Over-View Of E- broking Industry

There are some ten dotcom players, such as:

Positioning of Major players

Kotaksecurities.com-online investing made simple