A SUMMER TRAINING REPORT ON

SHAREKHAN LTD.
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF BACHELOR OF BUSINESS ADMINISTRATION (BBA) GURU JAMBHESHWAR UNIVERSITY, HISAR

SHARE TRADING IN INDIA

CUSTOMER FEEDBACK ON CLIENT ACQUISITION SERVICES AND COMPARATIVE ANALYSIS OF MAJOR PLAYERS

TRAINING SUPERVISOR Ravi K. Shankar (Finance Manager)

SUBMITTED BY SONIA SOLANKI Enrolment No.: 06511242489

SESSION 2006-2009

GURU JAMBHESHWAR UNIVERSITY HISAR

PREFACE
Share trading in India is undergoing phase witnessed never before. The competition is likely to become so severe after the entry of many players, retaining a customer is most difficult practice for any service provider.

Though India has a very big untapped market but the players will not flourish unless they change the way the customers are being served. Given the awareness level of today customers every player has to treat with care and make the customer feel that he is the king. Number of Online Share trader in India has crossed the line. More and more customers are coming under this umbrella and many of the existing one are changing pavilion. So customer retention and satisfaction is now more important as it was never before. Players keep coming with new schemes in order to attract new customers and retain the existing one.

My topic of study was customer feedback on client acquisition services and comparative analysis of major players. This project is an effort to do a depth study and analysis of various known and unknown reasons for customer satisfaction and retention. To err is human and I am not an exception, valuable comments are always welcomed since it will motivate to work with greater zeal and efficiency in the future.

ACKNOWLEDGEMENT No task can be achieved alone, particularly while attempting to finish a project of such magnitude. It took many very special people to facilitate it and support it. Hence, I would like to acknowledge all of their valuable support and convey my humble gratitude to them.

First of all, I would like to express my sincere gratitude to Ravi K. Shankar (Finance Manager) at Sharekhan for putting me on the project of Online Share Trading for ShareKhan. It has been great honor & pride for me to be associated with such an esteemed organization

I would also like to thank him who has always been open to discussion and frequently enquired about the project and any problems faced etc. He has also given me valuable guidance as to how to go about the project

I have put my best effort to make this project as informative & understandable as possible. I have done the best I could do & have been honest to the company, to the professor & most importantly to myself.

Thank you all for supporting me in making this projects a reality

SONIA SOLANKI

INDEX
CONTENTS Chapter 1 Introduction Chapter 2 Objective & Methodology  Significance  Managerial usefulness of the Study  Objective  Scope Of The Study  Methodology Chapter 3 -Conceptual Discussion Chapter 4 - Data Analysis Chapter 5 -Findings & Recommendations Conclusion Questionnaire Bibliography PAGE NUMBER

CHAPTER- I
Introduction

INTRODUCTION
1.1 INDUSTRY OVERVIEW

Overview of Industry as a Whole

Do you know that the world's foremost marketplace New York Stock Exchange (NYSE), started its trading under a tree (now known as 68 Wall Street) over 200 years ago? Similarly, India's premier stock exchange Bombay Stock Exchange (BSE) can also trace back its origin to as far as 125 years when it started as a voluntary non-profit making association. You hear about it any time it reaches a new high or a new low, and you also hear about it daily in statements like 'The BSE Sensitive Index rose 5% today'. Obviously, stocks and stock markets are important. Stocks of public limited companies are bought and sold at a stock exchange. But what really are stock exchanges? Known also as TV
News on the stock market

appears in different media every day. he stock

market or bourse, a stock exchange is an organised marketplace for securities (like stocks, bonds, options) featured by the centralisation of supply and demand for the transaction of orders by member brokers, for institutional and individual investors. The exchange makes buying and selling easy. For example, you don't have to actually go to a stock exchange, say, BSE - you can contact a broker, who does business with the BSE, and he or she will buy or sell your stock on your behalf. All stock exchanges perform similar functions with respect to the listing, trading, and clearing of securities, differing only in their administrative machinery for handling these functions. Most stock exchanges are auction markets, in which prices are determined by competitive bidding. Trading may occur on a continuous auction basis, may involve brokers buying from and selling to dealers in certain types of stock, or it may be conducted through specialists dealing in a particular stock.

But where did it all start? The need for stock exchanges developed out of early trading activities in agricultural and other commodities. During the middle Ages, traders found it easier to use credit that required supporting documentation of drafts, notes and
bills of exchange.

The history of the earliest stock exchange, the French

stock exchange, may be traced back to 12th century when transactions occurred in commercial bills of exchange. The first stock exchange in India,
Bombay Stock Exchange

was established in 1875

as 'The Native Share and Stockbrokers Association' and has evolved over the years into its present status as the premier stock exchange in the country. It may be noted that BSE is the oldest stock exchange in Asia, even older than the Tokyo Stock
Exchange, which was founded in 1878. The country's second stock exchange was

established in Ahmedabad in 1894, followed by the Calcutta Stock Exchange (CSE). CSE can also trace its origin back to 19th century. From a get together under a 'Neem Tree' way back in the 1830s, the CSE was formally established in May 1908. India's other major stock exchange
National Stock Exchange

(NSE), promoted by

leading financial institutions, was established in April 1993. Over the years, several stock exchanges have been established in the major cities of India. There are now 23 recognised stock exchanges Mumbai (BSE, NSE and OTC), Calcutta, Delhi, Chennai, Ahmedabad, Bangalore, Bhubhaneswar, Coimbatore, Guwahati, Hyderabad, Jaipur, Kochi, Kanpur, Ludhiana, Mangalore, Patna, Pune, Rajkot, Vadodara, Indore and Meerut. Today, most of the global stock exchanges have become highly efficient, computerised organisations. Computerised networks also made it possible to connect to each other and have fostered the growth of an open, global securities market. 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. Online Trading is a service offered on the Internet for purchase and sale of shares. In the real world, you place orders on your stockbroker either verbally (personally or

telephonically) or in a written form (fax). In Online Trading, you will access a stockbroker's website through your internet-enabled PC and place orders through the broker's internet-based trading engine. These orders are routed to the Stock Exchange without manual intervention and executed thereon in a matter of a few seconds. There are 2 types of online trading service: discount brokers and full service online broker. Discount online brokers allow you to trade via Internet at reduced rates. Some provide quality research, other dont. 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,

HDFCsec.com, Tatatdw.com, HMRstreet.com are some of the online broking sites in India.

Stock Market
Wth the backing of the World Bank group, many developing countries started giving prominence to stock markets for financing enterprises and allocation of savings. In India too, the process started in the early eighties. In the wake of increased pace of economic liberalisation initiated in 1991, the Capital Issues Control Act, 1947, which till then regulated the issue and pricing of new capital, was done away with and even greater emphasis was placed on the stock market. As a part of the measures to develop the stock market and liberalisation of the external sector, foreign institutional investors were invited to trade directly on the Indian stock exchanges. The main expectations were that the market would help corporates raise resources directly from investors, help attract foreign portfolio capital and facilitate the process of privatisation. The entry of foreign portfolio/institutional investors (FIIs) was expected to broaden the base of the market and also help in the markets development by forcing developing country governments to follow consistent and market friendly policies. Through their expert analysis and research, FIIs were expected to help in better price discovery. Since 1991, a number of measures at improving share trading

and delivery mechanisms and investor protection ranging from more periodic disclosures, takeover regulations, insider trading rules, corporate governance code, etc. have been introduced by the Securities and Exchange Board of India ( SEBI), the market regulator.

PARTIES INVOLVED IN SHARE TRADING

1.

BOMBAY STOCK EXCHANGE (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 corporatised entity incorporated under the provisions of the Companies Act, 1956, pursuant to the BSE(Corporatisation and Demutualisation) Scheme, 2005 notified by the Securities and Exchange Board of India (SEBI).

The Exchange has a nation-wide reach with a presence in 417 cities and towns of India. The systems and processes of the Exchange are designed to safeguard market integrity and enhance transparency in operations. During the year 2004-2005, the trading volumes on the Exchange showed robust growth.

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.

2.

NATIONAL STOCK EXCHANGE (NSE)

Capital market reforms in India have outstripped the process of liberalization in most other sectors of the economy. However, the creation of an independent capital market regulator was the initiation of this reform process. After the formation of the Securities Market regulator, the Securities and Exchange Board of India (SEBI), attention were drawn towards the inefficiencies of the bourses and the need was felt for better regulation, discipline and accountability. A Committee recommended the creation of a 2nd stock exchange in Mumbai called the "National Stock Exchange". 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. It has written for itself the mandate to create a world-class exchange and use it as an instrument of change for the industry as a whole through competitive pressure. NSE was incorporated in 1992 and was given recognition as a stock exchange in April 1993. It started operations in June 1994, with trading on the Wholesale Debt Market Segment. Subsequently it launched the Capital Market Segment in November 1994 as a trading platform for equities and the Futures and Options Segment in June 2000 for various derivative instruments. NSE was set up with the objectives of: (a) Establishing a nationwide trading facility for all types of securities; (b) Ensuring equal access to investors all over the country through an appropriate communication network; (c) Providing a fair, efficient and transparent securities market using electronic trading system; (d) Enabling shorter settlement cycles and book entry settlements; and (e) Meeting international benchmarks and standards.

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 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.

FUTURE OUTLOOK
With increasing globalisation and consolidation amongst exchanges, the future of the regional stock exchanges, around 22 in India, is likely to be very uncertain and even their very survival is a question mark. Sebi has permitted the regional exchanges to form subsidiary companies, which are akin to super brokers. These companies have acquired membership of both BSE and NSE at confessional entry fees and permitted their members to trade on the BSE and NSE thus increasing trade volumes and business in both BSE and NSE. The stock markets of the future will have a redefined purpose and reinvented architecture due to the advent and widespread use of technology. Information and stock price quotations are available almost instantaneously and more importantly investors can act on this data by executing a trade from anywhere at any time. This new market will bring benefits to investors, listed companies, and the economies of countries. Trading will be cheaper, faster and settlement will be simpler and with 7

reduced risk. Raising capital for companies will be easier, thus contributing directly to economic expansion. The leaders in this new world of investing will be the ones willing to be agents of change, to best meet the needs of investors and companies, and to do what is best for these two principal stakeholders in the capital markets. If done right, the stock markets of the future will be even better vehicles than today in helping companies grow, creating jobs, providing fair investment opportunities for people, and in improving economies. Both the exchanges, BSE and NSE, are visionary, proactive and increasingly use leading-edge technologies to effectively compete in the global environment. In the not-too-distant future, once full capital account convertibility is permitted in India one could well witness an expansion of trading volumes and its resultant economic benefits to the thriving and ever-young metropolis of Mumbai.

1.2

PROFILE OF THE SHAREKHAN LTD.

Sharekhan is an equities focused organization tracing its lineage to SSKI, a veteran equities solutions company with over 8 decades of experience in the Indian stock markets. If you experience our language, presentation style, content or for that matter the online trading facility, you'll find a common thread;

one that helps you make informed decisions and simplifies investing in stocks. The common thread of empowerment is what Sharekhan's all about! Sharekhan is also about focus. Sharekhan does not claim expertise in too many things. Sharekhan's expertise lies in stocks and that's what he talks about with authority. So when he says that investing 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. And these beliefs are reflected in everything Sharekhan does for you!

To sum up, Sharekhan brings to us a user- friendly online trading facility, coupled with a wealth of content that will help you stalk the right shares. Apart from this, Sharekhan also offers the facility to visit (or talk to) any of the share shops across the country in order to cater to people who are not computer - savvy. In fact Sharekhan runs India's largest chain of share shops with around 250 outlets in 113 cities. Below an online polling is being conducted among 41 strong members from www.traderji.com , which clearly shows the expert opinion with respect to Customer satisfaction, quality products etc.

Poll Results: which online broker u prefer and why - choose one 5paise Sharekhan Motilal Oswal ICICI Direct HDFC India Bulls Kotak Securities any other
10 12 0 8 2 7 1 1

24.39% 29.27% 0% 19.51% 4.88% 17.07% 2.44% 2.44%

ABOUT SSKI SSKI Corporate Finance Private Limited (SSKI) is a leading India-based investment bank with strong research-driven focus. Our team members are widely respected for their commitment to transactions and their specialized knowledge in their areas of strength. The team has completed over US$5 billion worth of deals in the last 5 years - making it among the most significant players raising equity in the Indian market. We strive to be the best research-driven investment bank involved in India-related equity transactions. Our investment banking team provides a full range of services, from private placements and public offerings to advisory work and mergers and acquisitions. The extensive industry expertise of our professionals is matched only by

the exceptional degree of their commitment to all aspects of client servicing. What differentiates our investment-banking group is our commitment to provide senior level attention to all projects and clients. We at SSKI Corporate Finance are in a very strong position to raise capital for our clients. We have deep and long-standing relationships with most prominent institutional investors in Indian equities; this strength is further bolstered by the relationships that the SSKI Institutional Equities sales team enjoys with institutional investors spread across the globe.. Over the past five years, SSKI Corporate Finance has raised and advised on equity deals in excess of US$5 billion

SSKI GROUP COMPANIES

SSKI Investor Services Ltd (Share khan) S.S. Kantilal Ishwarlal Securities SSKI Corporate Finance Idream Productions

SSKI CORPORARE STRUCTURE

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Share khan is India's leading retail financial Services Company with We have over 250 share shops across 115 cities in India. While our size and strong balance sheet allow us to provide you with varied products and services at very attractive prices, our over 750 Client Relationship Managers are dedicated to serving your unique needs. Sharekhan is lead by a highly regarded management team that has invested crores of rupees into a world class Infrastructure that provides our clients with realtime service & 24/7 access to all information and products. Our flagship Sharekhan Professional Network offers real-time prices, detailed data and news, intelligent analytics, and electronic trading capabilities, right at your fingertips. This powerful technology complemented by our knowledgeable and customer focused Relationship Managers. We are Creating a world of Smart Investor. Sharekhan offers a full range of financial services and products ranging from Equities to Derivatives enhance your wealth and hence, achieve your financial goals. Sharekhan' Client Relationship Managers are available to you to help with your financial planning and investment needs. To provide the highest possible quality of service, Sharekhan provides full access to all our products and services through multi-channels.

300
261

250
200

200
147

150 100 50 0 2001-2002

14 68

122

49 25 29 31

2002-2003

2003-2004

2004-2005

Ytd Oct 05

Branch

Franchisee

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PRODUCTS OFFERED BY SHAREKHAN

Sharekhan offers two types of products to its customers depending upon the usage of frequency of trading of the customer.

Classic
This is a product for the retail investor who is risk averse and hence to invest in stocks selective or who does not trade frequently. There is no volume commitment on part of the client; the features of the product are as follows. The registration charges are Rs. 750/- that is one time payment. With the online package defaults demat a/c would be opened with sski for the 1st year and no demat charges have to be paid. Its free The client gets exposure upto 4 times in case of margin trading of the deposit amount. The brokerage applicable is 0.50 on delivery/cash tradings and 0.10% on intraday trading. Sharekhan classic account allows the client to trade through our website and is suitable for the retail investor who is risk averse and hence prefers to invest in stocks or hdoes not trade too frequently. At sharekhan we like to take care of our cliets. Which means arming them with that extra bit of care to take the markets head-on. So as a sharekhan classic client you get access to privileged information an sre eligible for those month-watering that are made available from time to time. In other words the benefits of share khan classic accounts are classic too! . key features of classic accounts no interface trading you can buy and sell shares, untouched by human hand. Thats right. The internets flexibility combined with sharekhans powerful yet simple trading engine puts you in the pilots seat on your voyage in the investing jungle. You choose the stock, you punch the order and you get the confirmation that it is done. All in a matter of seconds. any where ordering

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met a bright and committed infosys executives while on holiday in Nepal who inspired you to buy the stock ? No problem. Just drop by at the nearest cyber caf and you are in business. May be the example is a wee bit fanciful but the point is still valid. Just because you travel on business or for pleasure doesnt mean you should lose control over your investment. Log on from anywhere in the world and do it. any time ordering you can now place your order on sharekhan at your convenience, round the clock. No need to wait for the exchange to open. No need to spend precious office time logging on and trading. Do it from the club in the evening, do it from a cyber caf at lunch, wake up at 2.00am with a brainwave and do it from home. No problem. Sharekhan will queue your order in the system and your order will be executed when the market opens! credit against sales sold some stock? Now want to buy? No sweat. Go ahead and place your order worth as much as the sale you just made. Sharekhan will take care of it.

CLASSIC PRICING FOR RETAIL CUSTOMERS

Account Opening: Rs 750 Demat 1st Yr: Nil Initial Margin: NIL Min Margin Retainable: NIL Brokerage: Trading 0.10% each side + All Taxes Delivery 0.50% each side + All Taxes

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SPEEDTRADE
Speedtrade is state-of-the-art web trading product ideal for active traders and jobbers who transact frequently during a days trading session to capitalize on intraday price movements. There is a volume commitment on the part of the customer. Speedtrade can be given to those clients who are able to generate brokerage of Rs1000 to 1500 per month. The features of the speedtrade are as follows: it comes with NEAT(national exchange for automated trading) terminal for frequent traders. The registration charges are Rs 1000 that is one time payment. The client would be getting a live terminal loaded on his pc with streaming quotes. Demat services are same as that of classic accounts. The brokerage is also same as that of classic accounts. Single screen trading terminal. Real time streaming quotes Live tic-by-tic intraday charting Instant order/trade confirmation in the same window. Hot keys similar to brokers terminal Customized alerts based on multiple parameters Back up facility to place trades on direct phone lines.

SPEED TRADE PRICING FOR HNI CLIENTS

Account Opening: Rs 1000 (Refundable against brokerage in Month + 1) Demat 1st Yr: Incl in Account Opening Initial Margin: NIL Min Margin Retainable: NIL Brokerage: Trading 0.10% each side + All Taxes

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Delivery 0.50% each side + All Taxes (Negotiable based on volume)

Account Access Charges Monthly Rs 500, adjustable qtrly against brokerage of Rs 9000/-

SERVICES OFFERED BY AN OUTLET

1. Online BSE and NSE execut ions (t hrough BOLT and NE AT t ermina ls) 2. Free access t o invest ment advice fro m S harekhan's research t eam  Shar ekhan Value Line (a fort night ly publicat ion wit h reviews o f reco mmendat io ns, st ocks to wat ch out fo r et c  Daily research report s and market review (High Noon, Eagle E ye)    Pre- market Report (Morning Cuppa) Daily t rad ing calls based on t echnical analys is Cool t rading product s (Dar ing Der ivat ives, Trading Ring and Market St rat egy)   Personalized advice Live market infor mat ion

3. Deposit or y ser vices: Demat and Re mat transact io ns 4. Der ivat ives t rading (Fut ures and Opt ions) 5. Int ernet -based o nline t rading: Classic Account , SpeedTrade, SpeedTradeP lus

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BRANCHES ALL OVER INDIA

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INVESTING ONLINE SO MUCH EASY WITH SHAREKHAN

This account enables you to buy and sell shares through our website. You get features like a) Streaming quotes (using the applet based system) b) Mutltiple watchlists c) Integrated Banking, demat and digital contracts d) Instant credit and transfer e) Real-time portfolio tracking with price alerts and, of course, the assurance of secure transactions.

F e a t u r e s C l a s s i c

o f

A c c o u n t

that enable you to invest effortlessly

Online trading account for investing in Equities and Derivatives via

sharekhan.com

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 Integration of: Online trading + Bank + Demat account Instant cash transfer facility against purchase & sale of shares Make IPO bookings

You get Instant order and trade confirmations by e-mail Streaming Quotes Personalised Market Scan with your own customized stock ticker! Single screen interface for cash and derivatives Your very own Portfolio Tracker

SYSTEM REQUIREMENTS
You'll need access to a computer, which has at least the following configuration:
      

Pentium 3 PC Minimum 128 MB RAM Windows 2000/XP Dial-up Modem / Cable modem Internet Connection Account Internet Explorer 6.0 Java enabled in IE

The Power and Speed of a Broker's Terminal on your Desktop! The ideal tool for active traders and jobbers who transact frequently during the day's trading session, Speedtrade enables you to capitalize on intra-day price movements.

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Speedtrade is an Internet-based executable application that provides everything a trader needs on ONE screen: 1: Real-time streaming quotes 2: Live Tic-by-Tic Intra-day charting 3: Trading in Cash and Derivatives on a single

INTRODUCTION TO FUTURES
Futures markets were designed to solve the problem that exists in forward markets. A futures contract is an agreement between two parties to buy or sell an asset at a certain time in the future at a certain price. But unlike forward contracts, the future contracts are standardized and exchange traded. To facilitate liquidity in the futures contracts, the exchange specifies certain standard features of the contract. It is a standardized contract with the standard underlying instrument, a standard quantity and quality of the underlying instrument that can be delivered, (or which can be used in reference purposes for settlement) and a standard timing of such settlement. A futures contract may be offset prior to maturity by entering into an equal and opposite transaction.

The standardized items in a future contract are: Quality of the underlying Quantity of the underlying The date and month of delivery The units price quotation and minimum price change Location of settlement

Report
The sources of information can broadly categorize in to two categories:1. Formal information sources:-These sources of information are authentic and reliable obtained through a proper channel in the organization by adhering to a

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systematic and structured procedure. In this we have collected the information from company manuals, journals, brochures and other published materials such as balance sheets, annual reports, articles etc. We are also including the information that our company guide provide us. Through all theses information we are comparing ShareKhan with other.

2. Informal information sources:- In this sources of information we collected the information from the employees of the companies. We also collected the information from external sources.

STOCK TRADING PROCEDURE

Stock Exchange is a market place where buyers and sellers of securities meet in order to trade on the same between themselves. This process is called Stock Trading.

In order to trade on a stock exchange, an investor needs to appoint a broker who acts as an intermediary between the investor client and the stock exchange. After the appointment of the broker, the investor has the option of going for either of the trading procedures:

1. ONLINE TRADING: Under this type of trading, the trading is done by the investor himself through the internet using the Trading Software provided to him by his broker.

2. OFFLINE TRADING: Under this type of trading, the investor communicates his decision to invest to his broker who in turn trades on the behalf of the client using his trading terminal.

However, on close evaluation of both the procedures, it is found that after a certain point, offline trading merges into online trading as the broker too uses the internet to put in the bid on behalf of his client.

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PROCESS CHART OF ONLINE TRADING PROCEDURE

The various transactions involved in online trading can be shown from the point of view of the
y y y

Client Broker Stock Exchange

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PROCESS CHART OF OFFLINE TRADING PROCEDURE

Decision to invest in the Stock Market Search of a Broker Selection of a Broker and Negotiation of terms Finalization of Contract Opening of Demat Account Payment of Margin Money Decision of Offline Trading Communication with the Broker Convey the decision of Buy/Sell Placement of the bid by the Broker on NEAT Execution of Bid Transfer of Shares

BENEFITS OF ONLINE TRADING

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This technique offers the best price for the buying and selling transactions of the investors, by ensuring proper matching of their orders within the communication network itself. Also due to the high level of transparency with regard to display of information relating to the specific stocks and company profiles, the investors will be able to get the best quote for the shares. This leads to a reduction in the transaction cost for the investors. OFFERS LIQUIDITY TO THE INVESTORS Online trading offers 24-hour trading facilities or trading for longer hours when compared to the traditional stock exchanges. This provides added liquidity to the investors.

OFFERS GREATER TRANSPARENCY

Online trading gives greater transparency to the investors by providing them an audit trail. This involves a complete integrated electronic chain starting from order placement, to clearing and settlement and finally ending with a credit to the depository account of the investor. All these stages are subject to inspection, thus bringing in transparency into the system.

ENABLES HASSLE FREE TRADING

Online trading integrates the bank, the brokerage firm and the demat accounts, which leads to easy and paperless trading for the client.

ALLOWS QUICK TRADING

The investor will be able to execute the entire trading transaction, right from logging on to the brokers site, to the execution and settlement of his bank account, in a very short period of time.

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PROVIDES A LEVEL PLAYING FIELD

Trading on the net, gives even the smallest retail investor access to information that earlier was available only to the big traders. This provides a level playing field for all investors in the securities market.

REDUCES THE SETTLEMENT RISK

This method of trading reduces the settlement risk for the investor, as in this case no short sale is possible i.e. the seller will not be able to sell the securities unless he has their actual possession. In the case of a demat account (required for an online transaction), when a seller wants to sell the securities, his demat account is checked by the Depository Participant before executing the sale transaction. This reduces the settlement risk for the buyer, who is assured of the delivery of the securities. FACTORS TO KEEP IN MIND WHILE SELECTING ONLINE BROKERS. Brokerage cost: It is important to weigh up the subscription and trading costs charged by an online broker against benefits offered by the site. All online brokers display their charges on their sites. Some make sure you find the charges easily, while with others you will have to search a bit. Safety: We should make sure site has 128-bit encryption to ensure safety of transaction online. ICICIDirect.com, 5paisa.com are few sites with 128-bit encryption. You normally get a secured Login id and password. It is always advisable to frequently change trading password. Ideally online trading site should be fully integrated. The greater the backward integration, the better it is for the customer. Ideally broking account, demat account and bank account should be linked electronically. Rate refresh: Rate refresh has to be real-time with no time lag. The speed and reliability comes with huge investment in technology. It is always advisable to check rates of online broking sites with BSE/ NSE terminal rates.

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Speed of execution: System has to be fast and reliable that does just one jobexecutes your trades. The last thing you need is a site that is heavily congested with the users who are downloading heavy jpeg graphs or pulling the latest story why market is moving. The site should be one click wonder where squaring off all your positions or canceling all your pending orders takes one click and a confirmation of action. Trading limit: For trading, all sites provide 4 times buy and sell limit against margin money put in by customer. For delivery of shares, buying limit is equal to margin money put in by customer. Couple of sites also provides margin funding for buying of shares. Free trial period: Site should allow users free trial period to familiarize yourself with system before you decide to become trading member of the site. Intraday chart/ historical chart: The site should provide Intraday chart tick-by-tick time and price data / historical chart for technical analysis by investors of particular scrip. Lot of people trade based on charting packages. Before you can trade, you need to open an account and register as a trader as with online broking site. This involves filling up trading account form, Demat account form and for faster transfer of money- Internet enabled bank account. We should read terms and condition of each site before commencing to deal with them. As per SEBI rule, Photo id proof and current address proof is a must for opening trading account. Online share dealing on the Internet is now a way of life for thousands of investors. 80% of South Korea and 30%-40% US trade are executed online. If you want to deal in shares, there is no easier way.

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DEMATERIALISATION
Dematerialisation is the process by which a client can get physical certificates converted into electronic balances. An investor intending to dematerialize its securities needs to have an account with a Depository Participant (DP). The client has to deface and surrender the certificates registered in its name to the DP. After intimating NSDL electronically, the DP sends the securities to the concerned Issuer/ R&T agent. NSDL in turn informs the Issuer/ R&T agent electronically, using NSDL Depository system, about the request for dematerialization. If the Issuer/ R&T agent finds the certificates in order, it registers) and communicates to NSDL the confirmation of request electronically. On receiving such confirmation, NSDL credits the securities in the depository account of the Investor with the DP.

PROCESS CHART OF DEMATERIALISATION Submission of Dematerialization Requisition Form Verification of Certificates by Depository Participant Generation of Dematerialization Requisition Number (DRN) Electronic forwarding of DRN to NSDL Electronic forwarding of Request to Issuer Punching of Certificates by DP Confirmation of Acceptance by Issuer Authorization of Credit to client by NSDL Intimation to Client
27

CUSTOMER SUPPORT BY SHAREKHAN

Sharekhan provide its customers services and support through various means like:

(1) Websites: - customer can clarify there problems and queries by accessing share khans website www.sharekhan.com. script etc. This website is full of information

regarding share market, ongoing trends, news related to shares or some particular

(2) Call centers: - sharekhan also provide its customer an toll free call center. These call centers provide assistance to customer in solving there queries and problem related to share market or services of sharekhan.

(3) Relationship managers: - sharekhan also provide facility of relationship managers to its customers. These relationship managers guide the customer about the present scenario and advice them where to invest.

(4) Sms facilities: - sharekhan send regular sms to its customer related to current market happening, which share is doing good etc. this will be helpful if you are not in touch with are representatives or even with computer.

(5) Email: - sharekhan send daily six reports and recommendation to its customer regarding real time market situation and market situation. Sharekhan also recommend certain shares to its customer to purchase/sell.

(6) Live chat: - sharekhan also provide live chat facility so that there customer can interact with each other.

28

Employee support by sharekhan

Website: - a separate website is launched by sharekhan for its employees at different branch with the name branch.sharekhan.com. It provides email facilities, (1) all information related to inside of sharekhan, any changes taking place in near future, MIS etc.

(2) MIS: - management information system helps the employees to keep themselves update about the latest position of particular employees. We can check the number of customer made by each employee, what is their position among other employees and the working of office information related to

(3) LMS: - lead management system. This system provides leads to the employees allotted from headquarter to a particular branch.

29

MANAGEMENT TEAM

VISION & MISSION

VISION
To be the best retail broking brand in the Indian Equities market.

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

30

1.3
y

PROBLEMS OF THE ORGANIZATION

ShareKhan has failed to evolve into a widespread internet broking firm because of its un-focused promotional strategies (advertisements in electronic media, newspapers, etc) across the length and breadth of India. Although it is a well known broking house in some states like Maharashtra, Gujarat, etc. it still lacks considerable awareness in the northern parts of India where its competitors have been building their reputation very rapidly.

The other of ShareKhan is that they give more attention to HNIs (high networth individuals) as compared to retail investors or individuals; this is why volumes of trading at SHAREKHAN are less as compared to its competitors.

Most of the processing and clarifications (account opening, payments, etc) are routed to the head office in Mumbai due to lack of decision making powers of local branches which delays the speedy execution of decision

31

1.4

COMPETITION INFOMRATION

5PAISA.COM Company Background Indiainfoline was founded in 1995 and was positioned as a research firm. In 2000 ebroking was started under the brand name of 5 paisa.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. Online Account Types Investor Terminal : Investors / Students Trader Terminal : Day Traders / HNIs

PRICING FOR RETAIL CLIENTS

Investor Terminal Account Opening: Rs 500 Demat 1st Yr: Rs 250 Initial Margin: Rs 2500(Compulsory) Min Margin Retainable: Rs 1000 Brokerage: Trading 0.10% each side + ST Delivery 0.50% each side + ST

32

PRICING FOR HNI CLIENTS Trader Terminal Account Opening: Rs 500 Demat 1st Yr: Rs 250 Initial Margin: Rs 5000(Compulsory) Min Margin Retainable: Rs 1000 Brokerage: Trading 0.10% each side + ST Delivery 0.50% each side + ST (Negotiable to 0.05% each side & 0.25%) Account Access Charges Monthly Rs 800, adjustable against Brokerage Yearly Rs 8000, adjustable against brokerage Deal Clinchers v/s 5 Paisa Downtime Recent past 5 paisa Trader Terminal (T.T) is experiencing high frequency downtime between 3 3:30 p.m due to server load (as their T.T is feature heavy compared to Speetrade charting) Manual Accounting

33

The 5 paisa accounting system is manual, Online fund transfer through bank is not credited instantly. Limit is provided EOD for shares sold from DP, or call Similarly limit released for shares sold under BTST is manual Delay in receiving payout of clear funds from trading to Bank Account Min Account Balance Concept of Min Rs 1,000 to be maintained in form of cash / securities to keep account active. This can be withdrawn only on closure of account. KOTAKSTREET Kotakstreet is the retail arm of kotak securities. Kotak Securities limited is a joint venture between Kotak Mahindra Bank and Goldman Sachs Online Account Types Twin Advantage / Green Channel: 2 DPs, Limit against shares Free Way: Flat Rs 999 Cover Charge p.m, 0.03% per transaction High Trader: 6 Times Exposure Cash & Derivatives, Auto sq off 2:55
PRICING OF KOTAK

Account Opening: Rs 500 Demat: Rs 22.5 p.m Initial Margin: Rs 5000(Compulsory) Min Margin Retainable: Rs 1000 Brokerage Slab wise: Higher the volume, lower the brokerage. Even older customers (on 0.25% & 0.40%) have been moved to the slab wise structure.

34

Deal Clinchers v/s Kotakstreet Rigid Account Opening Terms No Flexibility of A/c opening charges (Rs 500) + Compulsory margin Rs 5000/- Account opening free with Rs 10,000 Margin OR competitor Contract Note. No Customization of commercial Terms No Flexibility in Leverage Dependent on Type of Account ( 4 to 6 times only) No flexibility in Brokerage, driven by slab structure Many Other Charges Rs 22.5 p.m towards DP AMC charges DP incoming charges extra, 0.02% Rs 1,000 as retainable Margin to keep account active Rs 25 per call after 20 calls for the month Restricted Access to Terminal like product KEAT Desktop restricted distribution on payment of Rs 500, Non refundable 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 Online Account Type

35

Signature Account: Plain Vanilla Account with focus on Equity Analysis. The equity analysis is a paid service even for A/c holders Power Indiabulls: Account with sophisticated trading tools, low commissions and priority access to R.M Pricing of IB Accounts Signature Account Account Opening: Rs 250 Demat: Rs 200 if POA is signed, No AMC for this DP Initial Margin: NIL Brokerage: Negotiable Power IndiaBulls Account Opening: Rs 750 Demat: Rs 200 if POA is signed, No AMC for this DP Initial Margin: NIL Brokerage: Negotiable Deal Clinchers v/s IndiaBulls POA for Clients DMAT All shares held by client trading with IB are moved to IB Pool Account and the same is shown as a reflection in client DP account. Charges are levied to move shares from IB pool Account to client DP account

36

Paid Research Services Access to a research even for an IB trading account holder is charged a min of Rs 500 a month Margin funding hoax The interest on funding starts on leveraged delivery trades from T+1 day itself @21% p.a, on a daily basis The role of Relationship Manager Each RM is looked upon as a revenue generator and he gets a % on business generated from client. This can lead to over leveraged (Interest) & high frequency (Brokerage) trading, which may not be in the best interest of the client.

37

ICICIDIRECT 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 BankLimited
Account Types

ICICI Direct e-invest Account: Plain Vanilla Account with focus on 3 in 1 advantage. Differentiated in services within the account 1. Cash on spot 2. MarginPlus Premium trading interface of ICICIDirect Link is given to DBC partners and HNIs Account Opening: Rs 750 Schemes: For short periods Rs 750 is refundable against brokerage generated in a qtr. These schemes are introduced 3-4 times a year. Demat: NIL, 1st year charges included in Account Opening Plus a facility to open additional 4 DPs without 1st yr AMC Initial Margin: Nil Brokerage: All brokerage is inclusive of stamp duty and exclusive of other taxes. Slab wise brokerage ranges from 0.75% to 0.25% depending on volume.

38

Deal Clinchers v/s ICICIDirect Poor online Interface Slow website interface with no real-time quotes creates dissatisfaction among high frequency traders Margin trading restriction The margin trading system is available up to 2:45 p.m, with outstanding net positions under margin segment automatically squared off at any time between 2:45 3:30 p.m. Thus no control of square off price. Morning Trades Issue Being one of the websites with largest no of after hour orders which are pushed 1st thing in the morning, creates a choking of orders to the exchange, causes delay of confirmations for new order placed during the early morning trades. Restriction of BTST The sale of shares purchased is restricted to T+1 day and is not permitted on T+2 Day. No leverage for Delivery trades Delivery is restricted to the total money allocated into the trading account. No flexibility on leverage on Intra-day trades The leverage of 4 times is available for intra- day trades. Restriction of Bank Account The choice of bank is restricted to ICICI Bank.

39

Higher Brokerage rates with slabs The delivery brokerage is pegged at 0.75% and trading at 0.10% each side, this makes is very unviable for customers dealing in large volumes. Although progressively the delivery and trading brokerage reduce as volumes go up.

40

1.5

S.W.O.T. Analysis of Share Khan

Strengths y It is a pioneer in online trading with a turn over of Rs.400crores and more than 800 peoples working in the organization. y . SSKI the parent company of ShareKhan, has more than eight decades of trust and credibility in the indian stock market.In thr Asian Money Brokers poll SSKI won the Indias best broking house for 2004 award. y ShareKhan provides multi-channel access to all its customers through a strong online presence with www.sharekhan.com, 250 share shops in 130 cities and a call-center based Dial-n-Trade facility y ShareKhan has dedicated research teams for fundamental and technical research.which constantly track the pulse of the market and provide timely investment advice free of cost to its clients which has a strike rate of 70-80%. Weaknesses y Localized presence due to insufficient investments for country wide expansion. y Lack of awareness among customers because of non-aggressive promotional strategies (print media, newspapers, etc). y y Lesser emphasis on customer retention. Focuses more on HNIs than retail investors which results in meager marketshare as compared to close competitors. Opportunities y With the booming capital market it can successfully launch new services and raise its clients base.

41

It can easily tap the retail investors with small saving through promotional channels like print media, electronic media, etc.

As interest on fixed deposits with post office and banks are all time low, more and more small investors are entering into stock market.

Abolition of long term capital gain tax on shares and reduction in short term capital gain is making stock market as hot destination for investment among small investors.

Increasing usage of internet through broadband connectivity may boost a whole new breed of investors for trading in securities.

Threats y Aggressive promotional strategies by close competitors may hamper Share Khans acceptance by new clients. y y Lack of sufficient branch-offices for speedy delivery of services. Other players are providing margin funds to investors on easy terms where as there is no such facility in share khan. y More and more players are venturing into this domain which can further reduce the earnings of Share Khan.

42

CHAPTER- II
Objective & Methodology

43

OBJECTIVE AND METHODOLOGY

2.1
y

SIGNIFICANCE
Every research is conducted to fulfill certain objective and these objectives in turn fulfill some purpose. BBA curricular is designed to give more practical exposes to the student so that he can make use of theoretical knowledge in the real life situation, with this thrust dissertation study has been included which provides opportunity to research to gain practical insight of the market. This hand on experience helps him in identifying the critical factor of consumer buying behavior. This rich experience will be great help in researchers future endeavors and it also solves the purpose for the partial fulfillment of BBA curriculum.

I sincerely believe that road to improvement is never- ending and one always learns from a new experience. This project is a step towards gaining knowledge about real world and putting the theory of practice. I shall look forward to and gratefully acknowledge all suggestion on this small step I have taken.

The report consists of a stepwise efforts towards meeting the objectives of the study. It covers the step-wise collection of data collection and the representation of the data together with the analysis. It also includes some suggestions put forward hoping it would help the company achieve its vision.

2.2
y

MANAGERIAL USEFULNESS OF THE STUDY

The marketing department can use this study to enhance their marketing strategies for better sales. This report helps marketing department in taking decision to what change in distribution channels and what should be done so

44

that marketing problem could be shorted out and how to sell their range of product in the competitive market. y The very essence of every project related to marketing is providing a view to management for chalk out the organization. So that they can maintain a viable fit between the organization objective, skill and resources and its changing market opportunities. Also give proper shape to the company business target profit and growth. It provides a feedback to the organization about their sales, sales schemes and what impact dose it has on the retailers and consumer. Every market research proves useful suggestion to the organization. Marketing research helps the firm in every component of the total marketing task. y It helps the firm in every component of the total marketing task. It helps the firm acquire a better understating of the buyer, the competition and marketing environment. It also aids the formulation of the marketing mix, product, distribution and pricing needs marketing research support. It also in taking the information of competitors strategies and their impact on the buyer. The study revels may fact that have come up during the project and these facts can either be used as opportunities in exploring and expending the business as well as can be used as safeguard against threats by the competitors to prepare an effective marketing strategy. Every market research proves usefulness to the organization. Marketing research helps the firm in every component of the total marketing task. y Its helps the firm acquire a better understanding of the consumer, the competition and the marketing environment. It also aids he formulation of marketing mix, decision on each element of marketing mix, product, distribution and promotion and pricing etc need the support of marketing research

45

2.3
y

OBJECTIVES
The objective of my summer training is to gain knowledge about how an organization works and in particular setup of a stock broking house.

Under this summer training a small project was undertaken, the primary objective of which was to obtain a feedback from the clients of Sharekhan. Particularly about their experience while opening the online trading account with Sharekhan.

The secondary objective of this project was to help out the clients with their problems in Sharekhan to the extent possible.

Primary objectives of the project are: 1. 2. To study the sharekhans competitors strengths To study the sharekhan.com competitors weaknesses in relation to sharekhan.com 3. To analyze the product & services of competitors in relation to sharekhan.com

Secondary Objective 1. 2. To study the consumer behavior towards share khan.com. To learn about company routine working.

2.5
1.

SCOPE OF THE STUDY

To analysis the products of ShareKhan and find out the strength and weakness.

These are some of the following scope of the study:-

2. 3.

We come to know about market policy of the competitors. We are making company vision. Through this company generate more business and help to improve their policies.

4.

The present study can be extended to assess the present marketing condition of stock market.

46

5.

The study can be used to design a proper product, price, place & promotional strategy for stock market.

6.

From the present study we can know the market share of different by-products and accordingly formulated strategy to enhance it.

7.

The result of marketing success of different by-product can be interpreted to assess the rate of employees satisfaction in that department (marketing).

8.

This study can be applied to find out an effective distribution channel to enhance the sale of by-product of sharekhan.com

2.4

METHODOLOGY ADOPTED

Research Methodology
The manner in which a study is conducted is the basic plan that guides the project. With respect to this, the building blocks of the research may be explained as under.

Type of Research
The research design is essentially Exploratory in nature. Thus it is necessary to obtain an investigation of the situation(s), with a minimum expenditure of financial and time resources. It will also lend flexibility to the study, to discover previously unrecognized insights. Such a sensitized research design also takes into account the unexpected situations. As a result, perspective regarding the breadth of the variables operating in a situation is obtained.

Data Collection Approach

The plank on which the study rests is information, which will be procured as a judicious mix of both secondary data and primary sources of data.

Secondary Data
Already published data formed the launch pad for the study. This included: i) Internal Data: which originates within the organization?  Brochures, pamphlets  Official reports, specially the Annual report(s)

47

ii) External Data: which originates outside the organization?  Books  Periodicals (magazines, journals)  The World Wide Web for Information or the Internet

Primary Data
Data was collected specifically for the research need at hand. This includes: Interviews and surveys of people with informed ideas about the subject of the project.  Questionnaire survey of corporates ANALYTICAL TOOLS : Simple statistical tools (PIE CHART) have been used in the present study to analyze and interpret the data collected from the field. The data are presented in the form of diagrams

Time Frame:
This project is moulded within a specific period of time i.e. it took precious two months time for completion.

Sampling Design
Sampling Element: The basic element studied were corporates Sampling Methodology: Non-probability convenience and judgmental sampling Sample Size: A sample size of 100 customer were taken Sampling Extent: The procedure of sampling was restricted to corporate at delhi

48

CHAPTER- III
Conceptual Discussion

49

CONCEPTUAL DISCUSSION
MEASURING CUSTOMER SATISFACTION
Organizations are increasingly interested in retaining existing customers while targeting non-customers;[2] measuring customer satisfaction provides an indication of how successful the organization is at providing products and/or services to the marketplace. Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service to product/service. The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviors such as return and recommend rate. The level of satisfaction can also vary depending on other options the customer may have and other products against which the customer can compare the organization's products. Because satisfaction is basically a psychological state, care should be taken in the effort of quantitative measurement, although a large quantity of research in this area has recently been developed. Work done by Berry, Brodeur between 1990 and 1998[3] defined ten 'Quality Values' which influence satisfaction behavior, further expanded by Berry in 2002 and known as the ten domains of satisfaction. These ten domains of satisfaction include: Quality, Value, Timeliness, Efficiency, Ease of Access, Environment, Inter-departmental Teamwork, Front line Service Behaviors,

Commitment to the Customer and Innovation. These factors are emphasized for continuous improvement and organizational change measurement and are most often utilized to develop the architecture for satisfaction measurement as an integrated model. Work done by Parasuraman, Zeithaml and Berry between 1985 and 1988 provides the basis for the measurement of customer satisfaction with a service by using the gap between the customer's expectation of performance and their perceived experience of performance. This provides the measurer with a satisfaction "gap" which is objective and quantitative in nature. Work done by Cronin and Taylor 50

propose the "confirmation/disconfirmation" theory of combining the "gap" described by Parasuraman, Zeithaml and Berry as two different measures (perception and expectation of performance) into a single measurement of performance according to expectation. According to Garbrand, customer satisfaction equals perception of performance divided by expectation of performance. The usual measures of customer satisfaction involve a statements using a
Likert Technique
survey
[4]

with a set of

or scale. The customer is asked to evaluate each

statement and in term of their perception and expectation of performance of the organization being measured. As markets shrink, companies are scrambling to boost customer satisfaction and keep their current customers rather than devoting additional resources to chase potential new customers. The claim that it costs five to eight times as much to get new customers than to hold on to old ones is key to understanding the drive toward benchmarking and tracking customer satisfaction. Measuring customer satisfaction is a relatively new concept to many companies that have been focused exclusively on income statements and balance sheets. Companies now recognize that the new global economy has changed things forever. Increased competition, crowded markets with little product differentiation and years of continual sales growth followed by two decades of flattened sales curves have indicated to today's sharp competitors that their focus must change. Competitors that are prospering in the new global economy recognize that measuring customer satisfaction is key. Only by doing so can they hold on to the customers they have and understand how to better attract new customers. The competitors who will be successful recognize that customer satisfaction is a critical strategic weapon that can bring increased market share and increased profits. The problem companies face, however, is exactly how to do all of this and do it well. They need to understand how to quantify, measure and track customer satisfaction. Without a clear and accurate sense of what needs to be measured and how to collect, 51

analyze and use the data as a strategic weapon to drive the business, no firm can be effective in this new business climate. Plans constructed using customer satisfaction research results can be designed to target customers and processes that are most able to extend profits. Too many companies rely on outdated and unreliable measures of customer satisfaction. They watch sales volume. They listen to sales reps describing their customers' states of mind. They track and count the frequency of complaints. And they watch aging accounts receivable reports, recognizing that unhappy customers pay as late as possible--if at all. While these approaches are not completely without value, they are no substitute for a valid, well-designed customer satisfaction surveying program. y It's no surprise to find that market leaders differ from the rest of the industry in that they're designed to hear the voice of the customer and achieve customer satisfaction. In these companies: y Marketing and sales employees are primarily responsible for designing (with customer input) customer satisfaction surveying programs, questionnaires and focus groups. y y Top management and marketing divisions champion the programs. Corporate evaluations include not only their own customer satisfaction ratings but also those of their competitors. y y Satisfaction results are made available to all employees. Customers are informed about changes brought about as the direct result of listening to their needs. y Internal and external quality measures are often tied together.

52

Customer satisfaction is incorporated into the strategic focus of the company via the mission statement.

Stakeholder compensation is tied directly to the customer satisfaction surveying program.

A concentrated effort is made to relate the customer satisfaction measurement results to internal process metrics.

53

CHAPTER- IV Data Analysis

54

DATA ANALYSIS
To make our research project most effective in a given time period of two months surveyed the information of the competitors. We undertook both Explorative as well as Conclusive Research Design. The data has been collected from both Primary as well as Secondary sources and we also did the fieldwork for which utmost care has been taken to keep project unbiased from personal opinion.

Respondents

first interaction with our sales executive?

Very Bad

Bad

Excellent Average

Excellent Good Average Bad

Good

Very Bad

Around 45% of our Respondents found it to be good where as 30 % found it excellent & 20% Average.

55

Q. Did our sales executive made you familiar with all the services offered by Sharekhan?

NO

YES
YES

NO

Q.How did you find our sales executive when he gave you the demo of our product?

40 35 30 25 20 15 10 5 0 15 20 28 25 18

35

Respondents mostly found our sales executive Up To Date, Punctual & Confident

56

Q.Did he explain you everything about the account and the services offered when he came for demo, like,

100.5 100 99.5 99 98.5 98 97.5 97

Research Reports IPO Online

100 99 98 98 98

Exposure

Terminal

Online Money Transfer

ACCORDING TO THE RECORDS RESPONDENTS WERE QUITE SATISFIED WITH OUR SALES EXECUTIVE

57

Q.How did you find our processes from Client Acquisition to Client Servicing

Unnecessary

Tedious

Efficient
Efficient

Tedious

64 % RESONDENTS FOUND IT TO BE EFFICIENT WHERE AS 27% FOUND IT TO BE TEDIOUS AND 9% UNNECESSARY

58

Q.Did you face any problem while opening the account ?

NO YES

YES

NO

MANNY RESPONDENTS FOUND IT TO BE TIME CONSUMING ACTIVITY ACCORDING TO THEM OPENING AN ACCOUNT TOOK A LONG TIME.

Q. Do you consider our terminal user friendly?

NO

YES

YES

NO

72 % RESPONDENTS FOUND IT TO BE USER FRIENDLY

59

CHAPTER- V
Findings & Recommendations

60

FINDINGS
Services of competitors: We cannot give proper comment on competitors services till we use it. But I try to collect as accurate information as possible. As we all know services are intangible and we cannot predict its quality, it is a thing to feel not to see. No proper assurance of right information: The main data sources are websites, telephonic information and offices visit. # The data on websites might be possible, not get updated. # The marketing person might be possible, is not through with all concepts to whom I contacted. # Sometimes, they try to hide information. Lack of awareness of Stock market: -- Since the area is not known before it takes lot of time in convincing people to start investing in shares primarily in IPOs.

Mostly people comfortable with traditional brokers: -- As people are doing trading from there respective brokers, they are quite comfortable to trade via phone. Lack of Techno Savvy people and poor Internet penetration: o Since most of the people are quite experienced and also they are not techno savy. Also Internet penetration is poor in India. Some respondents 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 number to wrong phone number Misleading concepts: -- Some people think that Shares are too risky and just another name of gamble but they dont know its not at all that risky for long investors

61

RECOMMENDATION
We suggest following measures, which Sharekhan could take so as to take on heavy competition from India bulls and 5 Paisa 1. To identify regions where promotions are required. Sharekhan lacks visibility in northern region where as it is a well known name in western region. Even then, its promotional campaign focuses on western region where as northern region is still waiting for promotional campaigns. 2. Try to reduce cost, so that benefits can be passed on to customers. Senior managers at Sharekhan keep on telling that it is difficult to reduce cost, because of services we provide. But the fact is, India being a price sensitive market, people at times go for monetary benefits rather than for long term non- monetary benefits. 3. If charges cant be reduced because of costs involved, make the services customized, so that services are provided to only those customers who are willing to pay the price for services they are getting and let the other customers enjoy costs benefits without getting services.

62

CONCLUSION

CONCLUSION
63

In online trading, sharekhan.com.com have mainly competition with 5Paisa.com India bulls. HMR comes at no. 2 retail broker. It has an advantage of being in this industry for more than 8 decades. It has launched its website in 2000 and were among the first player in the online share trading. The sharekhan.com has decided to spend its advertisement budget through four medias i.e. Television, Print, Web and Outlets. Mr. Boman Irani is the brand ambassador for Sharekhan on television media. From the above analysis we can point out some points: 1. Sharekhan.com account opening charges are little higher than other competitors. Sharekhan.com is less flexible to cut down its account opening charges on the other side; some of the brokers are offering free account opening to High Net Worth customers. 2. The charges of demat account are reasonable at 300 p.a. but Indiabulls is offering pool account with no Annual Maintenance charges. 3. Sharekhan provides trading in NSE, BSE and Derivatives. It is also about to launch online Mutual Funds. Arbitrage facility is not available to customers. 4. Sharekhan is the only one that does not have any Demat transaction charges either on buying or selling. 5. Unlimited toll free calls service is provided to customer in Sharekhan.com. 6. Sharekhan accept offline payment from other banks also but icicidirect.com, HDFCsec.com clients have compulsion to open an online account. 7. BTST facility is available on almost all scrips of NSE in Sharekhan, Indiabulls. But this facilty is not providing by HDFCsec.com, HMRstreet offers it only for 75% of share value and icicidirect.com gives it only on 127 scrips. 8. SMS alerts facility is not available at HDFCsec.com, 5Paisa.com and Indiabulls. 9. IPO Online service is better provided in Sharekhan in comparative to others. Indiabulls and HDFCsec.com dont have this facility. 5paisa.com have recently started it. 10. Sharekhan is only broker in which no margin needs to keep.

64

11. Sharekhan research reports come in client e-mail at free of cost around 5-6 times in a day. But some brokers charged for it and some provide it only at once in a day, while it is paid in Indiabulls, icicidirect.com and 5paisa.com. 12. In brokerage, 5paisa.com have an edge on others with lowest brokerage .25% on delivery and .05% on intraday. To sum up, we can say that computerization and automation are not to be avoided. Technology has been able to make the stock markets accessible to every individual. It has also led to positive developments in terms of reduced costs and fewer errors. But, as some experiences have indicated, IT cannot be applied as a panacea for all problems. Regulation and knowledge dissemination are still important. The use of technology should be preceded by a detailed study and assessment of all other alternatives. The key to successful use to technology is the appreciation of its constraints.

65

QUESTIONNAIRE

ANNEXURE QUESTIONNAIRE

66

Q1. Are you aware of online Share trading? Yes No

Q2. Heard about Sharekhan? Yes No

Q3. Do you know about the facilities provided by Sharekhan? Yes No

Q4. With which company do you have your DEMAT account? Sharekhan ICICI Direct Kotak Mahindra India Bulls

Q5. How was your first interaction with our sales executive? Excellent Good Average Bad Very Bad

Q6. Did he make your familiar with all the services offered by Sharekhan Yes
Comments

No

Q7. How did you find our sales executive when he gave you the demo of our product? Courteous Confident Communication Skills Q8. Did he explain you everything about the account and the services Polite Informative Punctual Up-to-date

offered when he came for the demo, like Research Reports Terminal IPO Online Exposure

Online Money Transfer

67

Q9.

How did you find our processes from Client Acquisition to Client

Servicing? Efficient Tedious Unnecessary

Q10. Did you face any problem while opening the account? Yes No

Q11. Do you consider our terminal user friendly? Yes No

Q12. How frequently do you use it for trading? Comments, Please specify

Q13. What extra do you expect from Sharekhan

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BIBLIOGRAPHY

69

BIBLIOGRAPHY

1. BOOKS/MAGAZINES REFFERED: BOOKS

 Kotler Philips, Marketing Management: 11th Edition, 2004,Prentice Hall of India Ltd., New Delhi.  Jim Blythe, The essence of consumer behaviour, Prentice Hall, Europe Hertford shire, 1997  Philip Kotler, Principles of Marketing, Prentice Hall of India Pvt Ltd, New Delhi, 1985.  Everett M. Rogers Diffusion of Innovations, 4th Edition, New York: Free Press, 1995.

MAGAZINE:  Business World

WEBSITES:-

 www.icicidirect.com  www.sharekhan.com  www.5paisa.com  www.HDFCsec.com

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