INDUSTRY OVERVIEW

INTRODUCTION
Stock exchanges to some extent play an important role as indicators,
reflecting the performance of the country’s economic state of health. Stock market
is a place where securities are bought and sold. It is exposed to a high degree of
volatility; prices fluctuate within minutes and are determined by the demand and
supply of stocks at a given time. Stockbrokers are the ones who buys and sells
securities on behalf of individuals and institutions for some commission.

The Securities and Exchange Board of India (SEBI) is the authorized body,
which regulates the operations of stock exchanges, banks and other financial
institutions. The past performances in the capital markets especially the securities
scam by ‘Hasrshad Mehta’ has led to tightening of the operations by SEBI. In
addition the international trading and investment exposure has made it imperative
to better operational efficiency. With the view to improve, discipline and bring
greater transparency in this sector, constant efforts are being made and to a certain
extent improvements have been made.

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 HISTORY

HISTORY OF THE STOCK BROKING INDUSTRY

Indian Stock Markets are one of the oldest in Asia. Its history dates back to
nearly 200 years ago. The earliest records of security dealings in India are meager
and obscure.
By 1830's business on corporate stocks and shares in Bank and Cotton
presses took place in Bombay. Though the trading list was broader in 1839, there
were only half a dozen brokers recognized by banks and merchants during 1840
and 1850. The 1850's witnessed a rapid development of commercial enterprise and
brokerage business attracted many men into the field and by 1860 the number of
brokers increased into 60.
In 1860-61 the American Civil War broke out and cotton supply from
United States of Europe was stopped; thus, the 'Share Mania' in India begun. The
number of brokers increased to about 200 to 250. However, at the end of the
American Civil War, in 1865, a disastrous slump began (for example, Bank of
Bombay Share which had touched Rs 2850 could only be sold at Rs. 87). At the
end of the American Civil War, the brokers who thrived out of Civil War in 1874,
found a place in a street (now appropriately called as Dalal Street) where they
would conveniently assemble and transact business.
In 1887, they formally established in Bombay, the "Native Share and Stock
Brokers' Association" (which is alternatively known as "The Stock Exchange"). In
1895, the Stock Exchange acquired a premise in the same street and it was
inaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated.
Thus in the same way, gradually with the passage of time number of
exchanges were increased and at currently it reached to the figure of 24 stock
exchanges.

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 DEVELOPMENT

An important early event in the development of the stock market in India

was the formation of the Native Share and Stock Brokers’ Association at Bombay
in 1875, the precursor of the present-day Bombay Stock Exchange. This was
followed by the formation of associations /exchanges in Ahmedabad (1894),
Calcutta (1908), and Madras (1937). IN addition, a large number of ephemeral
exchanges emerged mainly in buoyant periods to recede into oblivion during
depressing times subsequently.

In order to check such aberrations and promote a more orderly development

of the stock market, the central government introduced a legislation called the
Securities Contracts (Regulation) Act, 1956. Under this legislation, it is mandatory
on the part of a stock exchanges to seek government recognition. As of January
2002 there were 23 stock exchanges recognized by the central Government. They
are located at Ahemdabad, Bangalore, Baroda, Bhubaneshwar, Calcutta, Chenni,
(the Madras stock Exchanges ), Cochin, Coimbatore, Delhi, Guwahati, Hyderbad,
Indore, Jaipur, Kanpur, Ludhiana, Mangalore, Mumbai(the National Stock
Exchange or NSE), Mumbai (The Stock Exchange), papularly called the Bombay
Stock Exchange, Mumbai (OTC Exchange of India), Mumbai (The Inter-
connected Stock Exchange of India), Patna, Pune, and Rajkot. Of course, the
principle bourses are the National Stock Exchange and The Bombay Stock
Exchange , accounting for the bulk of the business done on the Indian stock
market.

While the recognized stock exchanges have been accorded a privileged

position, they are subject to governmental supervision and control. The rules of a
recognized stock exchanges relating to the managerial powers of the governing
body, admission, suspension, expulsion, and re-admission of its members,
appointment of authorized representatives and clerks, so on and so forth have to be
approved by the government. These rules can be amended, varied or rescinded
only with the prior approval of the government. The Securities Contracts
(Regulation) Act vests the government with the power to make enquiries into the
affairs of a recognized stock exchange and its business, withdraw the recognition
the task of regulating the stock exchange to the Securities Exchanges Board of
India.

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 BSE(BOMBAY STOCK EXCHANGE)

The Stock Exchange, Mumbai, popularly known as "BSE" was established

in 1875 as "The Native Share and Stock Brokers Association". It is the oldest
one in Asia, even older than the Tokyo Stock Exchange, which was established in
1878. It is a voluntary non-profit making Association of Persons (AOP) and is
currently engaged in the process of converting itself into demutualised and
corporate entity. It has evolved over the years into its present status as the premier
Stock Exchange in the country. It is the first Stock Exchange in the Country to
have obtained permanent recognition in 1956 from the Govt. of India under the
Securities Contracts (Regulation) Act, 1956.

The Exchange, while providing an efficient and transparent market for

trading in securities, debt and derivatives upholds the interests of the investors and
ensures redressal of their grievances whether against the companies or its own
member-brokers. It also strives to educate and enlighten the investors by
conducting investor education program and making available to them necessary
informative inputs.

A Governing Board having 20 directors is the apex body, which decides the
policies and regulates the affairs of the Exchange. The Governing Board consists
of 9 elected directors, who are from the broking community (one third of them
retire ever year by rotation), three SEBI nominees, six public representatives and
an Executive Director & Chief Executive Officer and a Chief Operating Officer.

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 NSE(NATIONAL STOCK EXCHANGE)

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 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.

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 NCDEX
NATIONAL COMMODITIES AND DERIVATIVES
EXCHANGE

NCDEX started working on 15th December, 2003. This exchange provides

facilities to their trading and clearing member at different 130 centers for contract.
In commodity market the main participants are speculators, hedgers and
arbitrageurs.
Promoters of NCDEX are
 National Stock Exchange(NSE)
 ICICI bank
 Life Insurance Corporation(LIC)
 National Bank for Agricultural and Rural Development (NABARD)
 IFFICO
 Punjab National Bank (PNB)
 CRISIL

WHY NCDEX?
 NCDEX is nationalized screen based system which is providing transparent,
private and easy services.
 NCDEX is one of the traditional media which gives online information
 NCDEX is one of the Indian commodity exchange, constructed on the basis
of the current national institutes the exchange has been established with the
coloration of leading institutes like NABARD, LIC, NSI etc….
 In India NCDEX has maximum settlement guarantee fund.
 NCDEX has appointed two exports for checking quality at the time of
delivery.

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FACILITIES PROVIDED BY NCDEX
 NCDEX has developed facility for checking of commodity and also
provides a wear house facility
 By collaborating with industrial partners, industrial companies, news
agencies, banks and developers of kiosk network NCDEX is able to provide
current rates and contracts rate.
 To prepare guidelines related to special products of securitization NCDEX
works with bank.
 To avail farmers from risk of fluctuation in prices NCDEX provides special
services for agricultural.
 NCDEX is working with tax officer to make clear different types of sales
and service taxes.
 NCDEX is providing attractive products like “weather derivatives”

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 MCX
0.LTI COMMODITY EXCHANGE
‘MULTI COMMODITY EXCHANGE’ of India limited is a new order
exchange with a mandate for setting up a nationwide, online multi-commodity
marketplace, offering unlimited growth opportunities to commodities market
participants. As a true neutral market, MCX has taken several initiatives for users
In a new generation commodities futures market in the process, become the
country’s premier exchange.
MCX, an independent and a de-mutualized exchange since inception, is all set up
to introduce a state of the art, online digital exchange for commodities futures
trading in the country and has accordingly initiated several steps to translate this
vision into reality.
Market Watch:

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 The market watch window is used to view the market details for a particular
or group of contracts and for a particular instrument type. This window displays
the following details: Symbol, Expiry, price quotation unit, buy qty, buy price, sell
price, sell qty, last traded price, D.P.R, volume (in 000’s), value (in lac),% change,
average trade price, high, low, open, close & open interest.

Basics of stock Market

Corporations issue official-looking sheets of paper that represent ownership

of the company. These are called stock certificates, and each certificate represents a
set number of shares. The total number of shares will vary from one company to
another, as each makes its own choice about how many pieces of ownership to divide
the corporation into. One corporation may have only 2,500 shares, while another,
such as IBM or the Ford Motor Company, may issue over a billion shares.

Companies sell stock (pieces of ownership) to raise money and provide

funding for the expansion and growth of the business. The business founders give
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up part of their ownership in exchange for this needed cash. The expectation is that
even though the owners have surrendered a portion of the company to the public,
their remaining share of stock will become increasingly valuable as the business
grows.

Corporations are not allowed to sell shares of stock on the open stock market
without the approval of the Securities and Exchange Commission (SEC). This
transition from a privately held corporation to a publicly traded one is called going
public, and this first sale of stock to the public is called an initial public offering, or
IPO.

Why do people invest in the stock market?

When you buy stock in a corporation, you own part of that company. This
gives you a vote at annual shareholder meetings, and a right to a share of future
profits.
When a company pays out profits to the shareholder, the money received is
called a "Dividend". The corporation's board of directors choose when to declare a

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dividend and how much to pay. Most older and larger companies pay a regular
dividend, most newer and smaller companies do not.

The average investor buys stock hoping that the stock's price will rise, so the
shares can be sold at a profit. This will happen if more investors want to buy stock
in a company than wish to sell. The potential of a small dividend check is of little
concern.

What is usually responsible for increased interest in a company's stock is the

prospect of the company's sales and profits going up.

A company who is a leader in a hot industry will usually see its share
price rise dramatically.

Investors take the risk of the price falling because they hope to make more
money in the market than they can with safe investments such as bank CD's or
government bonds.

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How does one buy stocks?

Buying stocks is not as simple as walking into a stockbroker's office and

buying shares like you would a pair of shoes from a store. You are required to open an
account with the brokerage, like opening an account at a bank.

Some brokers will allow you to open an account with very little money. The
firm will then hold this money in an interest earning cash account, awaiting your
orders to buy or sell stock, or other securities such as bonds or mutual funds. When
you buy or sell, you pay a commission, which is deducted, from your account. When a
stock is purchased, the ownership of the shares may be listed in one of two ways.
"Listed" means how the corporation tracks the ownership of their stock.

If you choose to have the stock listed in your name, you will receive the actual
stock certificates. Most investors choose to have the ownership listed in the broker's
name, called "held in street name", with the broker keeping track of whose trading
account the stock actually belongs to. The benefits are reduced paperwork,
consolidated portfolio statements, no concerns about storing and processing the
paper certificates, and the ability to instantly sell and transfer the shares. Either way,
any dividends are credited to your account. Stocks held in street name are insured up
to $500,000 by the federal government against fraud or financial failure of the
brokerage company.

Why do people sell their stock?

The reasons people sell their stock are more complex. A person may just need
the money. He or she may have watched the price go up, and have a hunch this is a
good time to lock in their profit and sell some or all their shares.

Bad news concerning a company or its industry, or a disappointing earnings

report is sure to prompt heavy selling.

An investor may see better opportunities in another company, and so sell his
stocks that aren't moving up. But usually, investors sell because they've watched the
price fall, and just want to get out before they lose even more.

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Secondary Market Intermediaries
Stock brokers, sub-brokers, portfolio managers, custodians, share transfer
agents constitute the important intermediaries in the Secondary Market.

A stock broker plays a very important role in the secondary market helping both
the seller and the buyer of the securities to enter into a transaction. The buyer and
seller may be either a broker or a client. The transaction entered cannot be annulled
except in the case of fraud, willful misrepresentation or upon prima-facie evidence of
a material mistake in the transaction, in the judgment of the existing authorities. If a
member of the stock exchange (broker) has orders to buy and to sell the same kind
of securities, he may complete the transaction between his clients concerned.

When executing an order the stock may on behalf of his client buy or sell
securities from his own account i.e. as principal or act as an agent. For each
transaction he has to issue necessary contract note indicating whether he as principal
or as an agent for another has entered into the transaction. While buying pr selling
securities as a principal, the stock broker has to obtain the consent of his client and the
prices charged should be fair and justified by the conditions of the market.

A sub-broker is one who works along with the main broker and is not directly
registered with the stock exchange as a member. He acts on behalf of the stockbroker
as an agent or otherwise for assisting the investors in buying, selling or dealing in
securities through such stockbrokers.

No stockbrokers or sub-brokers shall buy, sell or deal in securities unless he

holds a certificate of registration granted by SEBI under the Regulations made by
SEBI ion relation to them.
The Central Government has notified SEBI (Stock Brokers & Sub-Brokers)
Rules, 1992 in exercise of the powers conferred by section 29 of SEBI Act, 1992.
These rules came into effect on 20th August, 1992.

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Ten Golden rules for Investing
Warren Buffet has suggested ten golden rules for investing which proves to be
immense use to the investors who want a better investment in stock markets,
ShareKhan follows these rules which are as described below:

1. Never invest in a business you cannot understand.

2. Risk can be reduced by concentrating on a few holdings.

3. Stop trying to predict the direction of the stock market, the economy, interest
rates, or elections.

4. Buy companies with strong histories of profitability and with a dominant

business franchisee.

5. Be fearful when others are greedy and greedy when others are fearful.

6. Unless you can watch your stock holding decline by 50% without becoming panic-
stricken, you should not be in the stock market.

7. Do not take yearly results too seriously. Instead, focus on four or five year
averages.

8. Focus on return on equity, not earnings per share (EPS).

9. Calculate "owner earnings" to get a true reflection of value. Look for companies
with high profit margins.

10. Always invest for the long term. Does the business have favorable long-term
prospects?

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INTERNET TRADING IN INDIA:

In the past, investors had no option but to contact their broker to get real
time access to market data. The Net brings data to the investor on line and net
broking enables him to trade on a click. Now information has become easily
accessible to both retail as well as big investors.

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

1. Stock brokers offering on their sites features such as live portfolio manager,
live quotes, market research and news to attract more investors.

2. Brokers offering on line broking and relationship management by providing

and offering analysis and information to investors during broking and non-
broking hours based on their profile and needs, that is, customized services.

3. Brokers (now e-brokers) will offer value management or services such as

initial public offerings on line, asset allocation, portfolio management,
financial planning, tax planning, insurance services and enable the investors
to take better and well-considered decisions.

In the US, 82 per cent of the deals are done on line. The European on line
broking market is expected to be of $8 billions and is likely to raise five fold by
2002. In India, presently Internet trading can take place through the order routing
system, which will route client orders to exchanges trading systems for execution
of trades on stock exchanges (NSE and BSE). This will also require interface with
banks to facilitate instant cash debit or credit and the depository system for debit or
credit of securities.

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OBJECTIVES OF INTERNET TRADING:

• Increase transparency in the markets.

• Enhance market quality through improved liquidity, by increasing quote
continuity and market depth.
• Reduce settlement risks due to open trades, by elimination of mismatches.
• Provide management information system (MIS).
• Introduce flexibility in system, to handle growing volumes easily and to
support nationwide expansion of market activity.
• Besides, through Internet trading three fundamental objectives of securities
regulation can be easily achieved, these are: Investor protection, creation of
a fair and efficient market and, reduction of the systematic risks.

PROCEDURE FOR INTERNET TRADING:

• Step-1: Those investors interested in doing the trading over internet system,
that is, NEAT-ISX, should approach the brokers and register with the Stock
Broker.
• Step-2: After registration, the broker will provide to them a login name,
password and a personal identification number (PIN).
• Step-3: Actual placement of an order. An order can then be placed by using
the place order window as under:
o First by entering the symbol and series of stock and other parameters
such as quantity and price of the scrip on the place order window.
o Second, fill in the symbol, series and the default quantity.
• Step-4: It is the process of review. Thus, the investor has to review the
order placed by clicking the review option. He may also re-set to clear the
values.

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 • Step-5: After the review has been satisfactory; the order has to be sent by
clicking on the send option.
• Step-6: The investor will receive an ``Order Confirmation'' message along
with the order number and the value of the order.
• Step-7: In case the order is rejected by the Broker or the Stock Exchange
for certain reasons such as invalid price limit, an appropriate message will
appear at the bottom of the screen. At present, a time lag of about ten
seconds is there in executing the trade.
• Step-8: It is regarding charging payment, for which there are different
modes. Some brokers will take some advance payment from the investors
and will fix their trading limits. When the trade is executed, the broker will
ask the investor for transfer of funds by the investor to his account.

The above figure shows how the Internet trading procedure.

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 Brief Introduction to SHAREKHAN

Sharekhan is an equities focused organization tracing its lineage to

SSKI(Shripal Sevantilal Kantilal Ishwarlal), a veteran equities solutions company
with over 8 decades of experience in the Indian stock markets.

Sharekhan is 80 years old company which is started online in the year 2000
& it is the first company who started online in 1984 they ventured into institutional
broking& corporate finance. They having more then 80 branches, 400 franchises
and also having 588 shops in 213 cities. In Rajkot branch daily dealing Rs.16 crore
& 400 crore daily dealing all over India. Almost 4000 employees and 100000
trading customers.

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 you a user- friendly online trading facility,
coupled with a wealth of content that will help you stalk the right shares.

Those of you who feel comfortable dealing with a human being and would
rather visit a brick-and-mortar outlet than talk to a PC, you'd be glad to know that
Sharekhan offers you the facility to visit (or talk to) any of our share shops across
the country. In fact Sharekhan runs India's largest chain of share shops with over
hundred outlets in more than 80 cities! What's a share shop? How do you locate a
share shop in your city?

To find the answers of these questions, you must visit Sharekhan. hi other
words Sharekhan is a company that provides you an outstanding trading facility with a
wide variety of products and acts as an investment consultant to manage your
portfolio and secure a high rate of return on your investments in the securities market.

SSKI has been voted the best domestic brokerage in India by Asiamoney
Polls’ 2004. Also SSKI is being rated as No. 1 Financial Researcher by Business
Today, in the Survey conducted on Lead Managers of all the Mutual Funds.
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 Basically, the company is a market leader in providing brokering services and
has a top turnover in trading and the high turnover makes it the no.l in the market.
The main difference is the services that they provide to the investors who really
need it. The services are discussed in more detail in the marketing activities. The
clients are managed with a friendly corporate culture to give him more benefited
investment ideas and motivate him whenever he needs. The company is providing as
many tips to the clients (pre-market, online and post-market) for more and more
trading ideas and the manager helps each client to concentrate on a few scripts so that
he can manage the profit/loss.

In short, Sharekhan is currently having a good position in the market with the
highest no of transactions and also the highest turnover (buying & selling) in India
and a leader in providing better services to the investors. Sharekhan, India's leading
stock broker is the retail arm of SSKI, and offers you depository services and trade
execution facilities for equities, derivatives and commodities backed with
investment advice tempered by decades of broking experience. A research and
analysis team is constantly working to track performance and trends. That's why
Sharekhan has the trading products, which are having one of the highest success rates
in the industry the largest chain of retail share shops in India is of Sharekhan. In
future, Sharekhan is planning to enter in Mutual funds, Insurance sector and banking
sector to expand beyond the market currently covered by it. And it has started MFs on
priority basis but wants to grow in it.

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 What is all about Sharekhan?

GENERAL INFORMATION

NAME : S. S. KANTILAL ISHWARLAL

SECURITEIS PVT. LTD.

HEAD OFFICE : SHAREKHAN LTD.

A – 206, PHOENIH HOUSE,
PHOENIH MILL COPUND,
SENAPATI, BAPTA MARG,
LOWER PAREL,
MUMBAI – 400013

TYPE OF BUSINESS : Pvt. Ltd.

PH NO : 1800 - 22 7500 , 3970 75 00

E-MAIL : shrinivasb@branch.sharekhan.com

WEB SITE : www.sharekhan.com

CHIEF EXECUTIVE OFFICER : TARUN SHAH

BRANCH OFFICES : 100 BRANCHES

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 SSKI Group - Corporate Structure

Owns 56% of Owns 50.5% of

SSKI Securities Pvt. Ltd.
Morakhia Family & Associates

SSKI Investor Services Pvt. Ltd.

SSKI Corporate Finance Pvt. Ltd.

Retail broking arm of the group
Shareholding pattern
Investment Banking arm of the group
56% Morakhia family (promoters)
Shareholding pattern
18.5% HSBC Private Equity
50.5% SSKI Securities Pvt. Ltd.
Management, Mauritius
49.5 % Morakhia family
18.5% First Carlyle Ventures, Mauritius
7% Intel Pacific Inc.

Integrated Equity Solutions Provider

• Among the top 3 branded retail service providers

• Multi-channel access to clients

• Tailor made research and products

• Depository Services

• Derivatives

• Innovative products for enhanced performance

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• Best research team in the world

About Sharekhan

• SSKI named its online division as SHARE KHAN and it is into retail
Broking

• The business of the company overhauled 6 years ago on February 8,

2000.

• It acts as a discount brokerage house to a full service investment

solutions provider

• It has a 150 member strong team.

• It has specialized research product for the small investors and day
traders

• Largest chain of share shops which is 588 share shop in 213 city , 103
Franchisees & over 80 Branches across India.

• It has $25m/trades every day.

• Leading player today with 20% market share

• Over 8000 online clients

• The site was also launched on February 8, 2000 and named it as

www.sharekhan.com

• The SpeedTrade account of share khan is the next generation technology

product launched on April 17, 2002

• SpeedTradePlus was launched on October 28, 2002 for trading in

Derivatives

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 • It offers its customers with the trade execution facilities on the NSE, for
cash as well as derivatives, depository services

VISION
To empower the investor with quality advice and superior service to help him take
better investment decisions. We believe that our growth depends on client
satisfaction.

MISSION
 To provide the best customer service and product innovation tuned to
diverse needs of clientele

 Continuous up-gradation with changing technology, while maintaining

human values.

 Respond to progressive globalization and achieving international standard.

 Efficiency and effectiveness built on ethical practices.

CORE VALUE
 Customer satisfaction through
 Providing quality service effectively and efficiently
 “Smile, it enhances your face value ” is a service quality stressed on
periodic customer service Audits
 Maximization of stakeholder value
 Success through Teamwork, integrity and People

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SWOT Analysis

During this training at Sharekhan, we had come to know the Strengths –

Weaknesses – Opportunities – Threats for the company and it is very useful for a
company to analyze them. Therefore, the SWOT analysis is presented here and the
suggestions for maintaining strengths and removing weaknesses are explained.

Strengths:
 Well-maintained infrastructure.
 Dedicated, Intelligent and Loyal staff.
 On-line Trading products.
 Lowest brokerage and other charges w.r.t. Competitors.
 The best investment advice correct up to 70-90 % through dedicated
research and reports.
 Wide product range to enable the clients to choose the best alternative.
 One of the best DPs in India.
 A positive image in the existing clients.

Weaknesses:
 Less awareness in the market.
 Time consuming process for account opening, resolving the problems of the
customers, etc.
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  Service quality is not maintained accordingly how they are promoted.

Opportunities:
 Large primary market to sit as a book runner for the other companies just
like Kotak securities ltd. that runs the books of share holdings for many
companies
 Slope of stock market towards delivery based transactions.
 Large potential market for delivery and intra-day transactions.
 Open interest of the people to enter in stock market for investing.
 Attract the customers who are dissatisfied with other brokers & DPs.
 An indirect opportunity generated by the market from its bullishness.

Threats:
 Decreasing rates of brokerage in the market.
 Increasing competition against other brokers & DPs.
 Poor marketing activities for making the company known among the
customers.
 A threat of loosing clients for any kind of weakness of the company.
 Indirect threat from instable stock market, i.e., low/no profit of Sharekhan’s
clients would lead them to go for other broker/DP.

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 MARKET COVERAGE

Ground Network –Largest in India

122 Franchisees and Above 80 branches in

India
Covers 213 cities in 17 states across India
Trade execution facility on BSE and NSE
for Cash as well as Derivatives
Depository/Demat account services
Personalized Sharekhan research advice
Uniform service standards

Winner of Chip magazine’s ‘Best

Financial Website Award’

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MAJOR PLAYERS OF THE INDUSTRY

S. S. Kantilal Ishwarlal Securities Pvt. Ltd. (sharekhan.com):

Sharekhan, India’s leading stock broker is the retail arm of SSKI, and offers
you depository services and trade execution facilities for equities, derivatives and
commodities backed with investment advice tempered by decades of broking
experience. A research and analysis team is constantly working to track
performance and trends. That’s why Sharekhan has the trading products, which are
having one of the highest success rates in the industry. Sharekhan is having 240
share shops in 110 cities; the largest chain of retail share shops in India is of
Sharekhan.

In future, Sharekhan is planning to enter in Mutual funds, Insurance sector

and banking sector to expand beyond the market currently covered by it. And it
has started MF (Mutual Funds) on priority basis but wants to grow in it.

ICICI WEB TRADE LTD. (ICICIdirect.com):

ICICIdirect.com was the first entrant into e-broking. ICICdirect.com

provides the 3-in-1 to the users which ties in their saving bank account and their
Demat account to their brokerage account electronically. This integration ensures
that money is transferred to/from their bank account and the shares are transferred
from/to their Demat account automatically without writing any cheques or transfer
instructions while carrying out their trades in shares.

ICICIdirect.com has the option of trading in shares in cash, margin or spot

segments. An investor can also invest in 14 Mutual Funds (Prudential ICICI MF,
Franklin Templeton India MF, Alliance Capital MF, JM MF, Birla Sun Life MF,
- 28 -
Sundaram MF, IL&FS MF, Principal MF, HDFC MF, Standard Chartered MF,
Reliance Capital MF, Kotak Mahindra MF, TATA MF and DSP MERRILL
LYNCH MF) through their trading account.

5Paisa.com:
5paisa is the trade name of India Infoline Securities Private Limited
(5paisa), member of National Stock Exchange and The Stock Exchange, Mumbai.
5paisa is a wholly owned subsidiary of India Infoline Ltd, India’s leading and most
popular finance and investment portal. 5paisa has emerged as one of leading
players in e-broking space in India.

The company’s brokerage is one of the lowest in the industry. It also

provides the research on commodities. Investors can benefit from its analysis and
advice available at the click of the mouse. For those who prefer to trade the
traditional way, India Infoline investor points are available across the country.

India Infoline was founded by a group of professionals in 1995. Its

institutional investors include Intel Capital, one of the leading technology
companies in the world promoted by the UK government, ICICI, TDA and
Reeshanar. The company offers a slew of products such as stock and derivatives
broking, commodities broking and mutual funds.

KOTAK SECURITIES LIMITED (kotakstreet.com):

Kotak Securities Ltd., a strategic joint venture between Kotak Mahindra
Bank and Goldman Sachs (holding 25% - one of the world’s leading investment
banks and brokerage firms) is India’s leading stock broking house with a market
share of 5 - 6 %. Kotak Securities Ltd. has been the largest in IPO distribution - It
was ranked number One in 2003-04 as Book Running Lead Managers in public
equity offerings by PRIME Database. It has also won the Best Equity House
Award from Finance Asia - April 2004.

Kotak Securities Ltd is also a depository participant with National

Securities Depository Limited (NSDL) and Central Depository Services Limited
(CDSL) providing dual benefit services wherein the investors can use the
brokerage services of the company for executing the transactions and the
depository services for settling them. The company has 42 branches servicing
around 1, 00,000 customers. Kotakstreet.com the online division of Kotak
Securities Limited offers Internet Broking services and also online IPO and Mutual
Fund Investments.

Kotak Securities Limited manages assets over 1700 crores under Portfolio
- 29 -
Management Services (PMS) which is mainly to the high end of the market. Kotak
Securities Limited has newly launched “Kotak Infinity” as a distinct discretionary
Portfolio Management Service which looks into the middle end of the market.

India Bulls:
Indiabulls is India's leading retail financial services company with 77
locations spread across 64 cities. Its size and strong balance sheet allows providing
varied products and services at very attractive prices, our over 750 Client
Relationship Managers are dedicated to serving your unique needs.

Indiabulls is lead by a highly regarded management team that has invested

crores of rupees into a world class Infrastructure that provides real-time service &
24/7 access to all information and products. The Indiabulls Professional Network
offers real-time prices, detailed data and news, intelligent analytics, and electronic
trading capabilities, right at your finger-tips. This powerful technology is
complemented by our knowledgeable and customer focused Relationship
Managers.
Indiabulls offers a full range of financial services and products ranging from
Equities, Derivatives, Demat services and Insurance to enhance wealth and to
achieve the financial goals.

MOTILAL OSWAL SECURITIES LTD. (MOSt):

One of the top-3 stock-broking houses in India, with a dominant position in
both institutional and retail broking, MOSt is amongst the best-capitalized firms in
the broking industry in terms of net worth. MOSt was founded in 1987 as a small
sub-broking unit, with just two people running the show. Focus on customer-first-
attitude, ethical and transparent business practices, respect for professionalism,
research-based value investing and implementation of cutting-edge technology
have enabled it to blossom into a thousand-member team.

The institutional business unit has relationships with several leading foreign
institutional investors (FIIs) in the US, UK, Hong Kong and Singapore. In a recent
media report MOSt was rated as one of the top-10 brokers in terms of business
transacted for FIIs.

The retail business unit provides equity investment solutions to more than
50,000 investors through 270 outlets spanning 150 cities and 22 states. MOSt
provides Advice-Based Broking, Portfolio Management Services (PMS), E-
Broking Services, Depository Services, Commodities Trading, and IPO and

- 30 -
Mutual Fund Investment Advisory Services. Its Value PMS Scheme gave a 160% post-
tax return for the year ended March 2004.

In AsiaMoney Brokers Poll 2003 MOSt has been rated as the Best
Domestic Research House- Mega Funds ,while in 2000 and 2002 it has been rated
as the Best Domestic Equity Research House and Second best amongst Indian
Brokerage firms respectively.
HDFC SECURITIES LTD (HDFCsec):

HDFCsec is a brand brought to you by HDFC Securities Ltd, which has

been promoted by the HDFC Bank & HDFC with the objective of providing the
diverse customer base of the HDFC Group and other investors a capability to
transact in the Stock Exchanges & other financial market transactions. The
services comprise online buying and selling of equity shares on the National Stock
Exchange (NSE). Buying and selling of select corporate debt and government
securities on the NSE would be introduced in a subsequent phase. In a few months,
they will also start offering the following online trading services on the BSE and
NSE:
1. Buying and selling of shares on the BSE
2. Arbitrage between NSE & BSE
3. Trading in Derivatives on the NSE
4. Margin trading products.

They are also planning to include buying and selling of Mutual Funds, IPO
subscriptions, Right issues, purchase of Insurance policies and asset financing.

PRICE COMPARISION WITH OTHER MAJOR PLAYER

Parameters Opening Fee Brokerage Interface

Trading Demate Delivery Square Bank Associated
A/C A/c Off

Sharekhan 750 NIL 0.40 0.08 HDFC,UTI,OBC,

IDBI, City Bank

ICICI Direct 750 NIL 0.75 0.18 ICICI Bank

IndiaBulls 250 250 0.40 0.10

- 31 -
5 Paisa 600 NIL 0.20 0.05 ICICI Bank, UTI,
OBC, HDFC,
City Bank
Kotak Street 500 0.59 0.06 Kotak Bank, City
Bank

HDFC Securities 700 NIL 0.50 0.15 HDFC & Other

Bank

- 32 -
SHAREKHAN IN ONLINE TRADING

Trading in stock markets through the Internet, which took a dip due to
investor apathy because of prolonged bearishness in recent years, is witnessing a
revival of interest and is expected to record growth in the coming years.

The retail investors in the capital market are the most neglected lot with no
access to research and Sharekhan, one of the oldest members of the BSE, seeks to
fill this vacuum felt by retail investors. The company had invested about Rs 13
crore in the last two years in creating the requisite infrastructure by way of
branches and for Internet trading. With presence in about 110 cities across the
country now, it will seek to consolidate its presence in the current year and focus
on expanding its membership.

Sharekhan enjoyed about 20% market share in Web business (Internet

trading) in stock markets. Three years ago, Web trading showed lot of promise but
with the market witnessing a downturn, there was not much interest among retail
customers. The company adds around 1,000 customers a month.

While his company has about 10,000 plus customers, ICICI Securities
claimed to have 1.20 lakh customers and there were other players like HDFC too.
But the number of active Web traders would be in the 30,000-50,000 region. This
number is growing at 5 to 10% a month and this was a segment that could not be
ignored. In Sharekhan, Web trading constituted about 1 per cent to 2 per cent of
the revenue in 2001-02.

But in 2002-03, when the overall revenue trebled, the share of Web trading
constituted 22% of the revenue. As Sharekhan's daily trading volume was over Rs
300 crore, the share of Web trading at about Rs 40 crore a day was substantial and
a larger part of the volume was coming from day traders.

The pricing for Web trading are expected to come down and once the
investment was made on technology, the scalability would be high and there is
minimum involvement of staff in dealing with customers. The crediting of the
sale/purchase orders would be fast with no physical handling as the system does
every work.

Sharekhan has already obtained license to offer Portfolio Management

Services (PMS). It was offering a range of products to suit retail investors and
PMS when launched, would cater to the requirements of the high net-worth
individuals. The entry-level investment for PMS membership may be around Rs 5
- Rs 10 lakhs, which was needed for having a well-diversified portfolio.

- 33 -
SHAREKHAN DEPOSITORY SERVICES

Dematerialization and trading in the demat mode is the safer and faster
alternative to the physical existence of securities. Demat as a parallel solution
offers freedom from delays, thefts, forgeries, settlement risks and paper work. This
system works through depository participants (DPs) who offer demat services and
the securities are held in the electronic form for the investor directly by the
Depository.

Sharekhan Depository Services offers dematerialization services to

individual and corporate investors. Sharekhan is a registered Depository
Participant (DP) with National Securities Depository Ltd. (NSDL). It has a team
of professionals and the latest technological expertise dedicated exclusively to our
demat department, apart from a national network of franchisee, making our
services quick, convenient and efficient. At Sharekhan, the commitment is to
provide a complete demat solution which is simple, safe and secure.

RESEARCH BASED ADVICE

Every investor’s needs and goals are different. To meet these needs,
Sharekhan provides a comprehensive set of research reports, so that one can
take the right investment decisions regardless of their investing preferences! The
Research and Development at Sharekhan is done at its Head office Mumbai.

The R&D department Head Mr. Hemang Jani forwards all the details
regarding all stocks and scripts to all the branches through Internet. At the end of
each trading day there is a Teleconference, through which the R&D department
Head MR. Hemang Jani talks with each Branch heads and discusses about each
day’s closing position and shows their predictions about next day’s opening
position. The quarries regarding stock positions and other relevant matter of the
branch heads of each branch is being solved through teleconference.

The various publications of Sharekhan viz. Derivatives Digest,

Sharekhan’s Valueline, Eagle eye, High Noon, Investor’s Eye, Commodities Buzz,
Commodities Beat, Commodity Trader’s corner, Sharekhan Xclusive, etc. are
being prepared by the research team of Sharekhan made up of highly experienced
people from diverse field. These all publication provides:
 In-depth analysis of the markets
 Analysis Before, During (live market updates) and After
market timings
 Special sector tracking reports sent regularly

- 34 -
STOCK IDEAS
Stock Ideas is aimed at Sharekhan's trading clients. It presents our
best stock picks in today's market. We categorize these companies into six clusters
to help you identify the stocks that fit your time horizons and return objectives the
best. Each cluster represents a certain profile in terms of business fundamentals as
well as the kind of returns you can expect of it over a certain time horizon.

STOCK CLUSTERS
Sharekhan categorise all the scripts that are under coverage into 6 clusters.
Each cluster represents a certain profile in terms of business fundamentals as well
as the kind of returns you can expect over a certain time horizon. This help in
identifying the stocks that fit your time horizons and return objectives best. The
six clusters are: Evergreen, Apple Green, Emerging Star, Ugly Duckling,
Vulture's Pick and Cannonball.

EVERGREEN
These stocks are steady compounders, churning out steady growth rates
year on year. They are typically significant players in their markets, with sound
strategies that will help them achieve and sustain market dominance in the long
run. They have strong brands, management credentials and a consistent track
record of achieving super normal shareholder returns. We expect stocks in this
category to compound at between 18-20% per annum for the next five to ten years.
Also called ownership stocks, Evergreen stocks are the brightest jewels in any
portfolio.

APPLE GREEN
These are stocks that have the potential to be steady compounders and are
attempting to move upwards, to turn Evergreen. They rank a shade below the
Evergreen companies, only because their potential in the five to ten years' time is
still not very clear, although they might grow at rates faster than that of the
Evergreen stocks in the next year or two. They could grow at 25-30% per annum
over the next two to three years.

- 35 -
EMERGING STAR
These are typically young companies, often in niche businesses, that have
the potential to grow and dominate their niches. Even better, they might turn out to
be real giants, if their niches explode into full-blown markets in their own rights.
These stocks are potential ten-baggers but you need to be patient.

UGLY DUCKLING
These are companies that are trading below their fair value or at values
which are at a significant discount to that of their peer group, due to a combination
of circumstances. But things are now starting to happen in these companies or in
their markets that are likely to cause a re-evaluation of their prospects. These
stocks could double in two to three years' time.

VULTURE'S PICK
These are companies with valuable assets or brands that have been trashed
to ridiculously low prices. Buy a Vulture's Pick and wait for a predator who finds
its assets undervalued to come along. This could be a long wait but the returns
could be startlingly high.

CANNONBALL
Season's favourites! Typically they are fast gainers in a rising market, which
could give returns of 20-40% within three months. These are based on a
combination of sound market information, technical charts and available
fundamentals for investors which are having an appetite for high risk and high
reward.

- 36 -
Ensures convenience in trading experience:
Share Khan’s trading services are designed to offer an easy, hassle free
trading experience, whether trading is done daily or occasionally. The customer
will be entitled to a host of value added services, in the investment process
depending on his investing style and frequency. and offers a suite of products and
services, providing the customer with a multi-channel access to the stock markets.

• It gives advice based on extensive research to its customers and provides

them with relevant and updated information to help him make informed
about his investment decisions.

• Share khan offers its customers the convenience of a broker-DP.

• It helps the customer meet his pay-in obligations on time thereby

reducing the possibility of auctions. The company believes in flexibility
and therefore allows accepting late instructions without any extra
charge. And execute the instruction immediately on receiving it and
thereafter the customer can view his updated account statement on
Internet.

• Sharekhan Depository Services offers demat services to individual and

corporate investors. It has a team of professionals and the latest
technological expertise dedicated exclusively to their demat department.
A customer can avail of Demat \ Remat, Repurchase, Pledge,
Transmission facilities at any of the Share khan branches and business
partners outlets.

- 37 -
 Organization structure

Head
Office

Branch
Head

Marketing Operation Account Human

Head Head Head Resource Head

Assistant Back Office H.R.

Manager Staff consultant

Executives

TOTAL INVASTMENT IN THE OFFICE

Land…………………………………….. 40,00,000
Building………………………………… 5,00,000
Furniture………………………………... 2,00,000
Machinery and equipment……………… 4,50,000
Material………………………………… 50,000
Inventory……………………………….. 1,00,000
TOTAL………………………………… 53,00,000

- 38 -
 PRODUCTS of SHAREKHAN
Sharekhan’s products are basically divided into online and offline products.

Sharekhan

Off-Line On line

Classic Speed Fast

A/c Trade Trade

Other Services:
 Dial-n-Trade
 Depository Services
 Commodity Trading
 Derivative Trading
 Mutual fund
 Portfolio Management Services
 Online IPO
 Research Based Information Provided

OFFLINE
- 39 -
  Offline A/c is the A/c for the investors who are not familiar with the use of
computer.
 The A/C opening charges Rs.500(One time)
 For 1st Year Demat A/C is Free, On 2nd Year AMC charge is applicable.

The various benefits the client gets from the online trading are:

• Freedom from Paperwork: Integrated trading, bank and Demat

account (auto pay-in and pay-out of securities) with digital
contracts removes all paperwork.
• Instant Credit And Transfer: Instant transfer of funds from
bank accounts of client's choice to his/her Sharekhan trading
account.
• Trade Anywhere: Enjoy the ease of trading from any part of the
world in a completely secure environment.
• Dial n Trade: Call Sharekhan on a toll free number to place
orders through sharekhan's telebrokers.
• Timely Advice: Make informed decisions with expert advice,
investment calls and live market commentary.
• Real-Time Portfolio Tracking: Benefit from real-time information
of your investment and current portfolio value.
• After-Hour Orders: The Client can place orders after the market
hours, which get executed as soon as markets open.

ONLINE

- 40 -
  A/C Opening Charges Rs.750(onetime Charge).
 For 1st Year Demat A/C is Free, On 2nd Year AMC charge is applicable.
 Type with 7 banks through which one can transfer or withdraw his fund
online. Which are as follows
1. HDFC Bank
2. IDBI Bank
3. UTI Bank
4. OBC Bank
5. CITY Bank
6. Indusind Bank
7. Union Bank of India

Any one who have A/C either of above banks they can use this facility.Otherwise
one has to make fund transfer or withdraw by cheque.

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 alert and, of course, the assurance of
secure transactions.

Features of Classic Account

 that enables you to invest effortlessly

- 41 -
  Online trading account for investing in Equities and Derivatives via
sharekhan.com
 Integration of: Online trading + Bank + Demat account
 Instant cash transfer facility against purchase & sale of shares
 Make IPO booking
 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!

SPEEDTRADE

 A/C Opening Charges Rs.1000/-(onetime Charge).

 Monthly charges Rs.500/-(But if Client give Brokerage of Rs.1500/-in a
Quarter, then Rs.1500/-that was charged of a Quarter will be Reimbursed).
 For 1st Year Demat A/C is Free, On 2nd Year AMC charge is applicable.

Type with 7 banks through which one can transfer or withdraw his fund
online. Which are as follows
HDFC Bank
IDBI Bank
UTI Bank
OBC Bank
CITY Bank
Indusind Bank
Union Bank of India
Any one who have A/C either of above banks they can use this facility.
Otherwise one has to make fund transfer or withdraw by cheque.

Features of SpeedTrade
that enable you to trade effortlessly
- 42 -
  Instant order Execution & Confirmation
 Single screen trading terminal
 Real-time streaming quotes, tic-by-tic charts
 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

OTHER SERVICES
1.Dial-n-Trade

Trade in Equity by using your phone!

Free with your Sharekhan Classic Account, the Dial-n-Trade service
enables you to place orders for buying and selling shares through your telephone.

All you have to do is dial any one of our two dedicated numbers (1-800-22-
7050 or 30307600), enter your TPIN number (which is provided at the time of
opening your account) and on authentication you'll be directed to a telebroker
who will buy and sell shares for you.

Features of Dial-n-Trade
 that enable you to trade effortlessly.

- 43 -
  TWO dedicated numbers for placing your orders with your cellphone or
landline. Toll free number: 1-800-22-7050. For people with difficulty in
accessing the toll-free number, we also have a Reliance number 30307600
which is charged at Rs. 1.50 per minute for STD calls.

 Automtic funds tranfer with phone banking. (for Citibank and HDFC bank
customers)

 Simple and Secure Interactive Voice Response based system for

authentication.

 No waiting time. Enter your TPIN to be transferred to our telebrokers.

 You also get the trusted, professional advice of our telebrokers.

 After hours order placement facility between 8.00 am and 9.30 am. (timings
to be extended soon)

 Reliable service, wherever you are.

2.PORTFOLIO MANAGEMENT SYSTEM

With the Sharekhan Team Managing Your Portfolio, you can be assured
that your investments are in safe hands!

We follow a multi-disciplined approach incorporating quantitative analysis,

fundamental analysis and technical analysis. This multi-pronged approach enables
us to provide risk-controlled returns for you.

Right from choosing the combination of stocks most suitable for you based
on your risk appetite to monitoring their movements and discussing them with you
at special events.

3.MUTUAL FUND

- 44 -
Introduction

Everybody talks about mutual funds, but what exactly are they? Are they
like shares in a company, or are they like bonds and fixed deposits? Will I lose all
my money in funds or will I become an overnight millionaire? Big questions that
get answered in just five minutes.

Meaning

A mutual fund is a pool of money that is invested according to a common

investment objective by an asset management company (AMC). The AMC offers
to invest the money of hundreds of investors according to a certain objective - to
keep money liquid or give a regular income or grow the money long term.
Investors buy a scheme if it fits in with their investment goals, like getting a
regular income now or letting the money accumulate over the long term. Investors
pay a small fraction of their total funds to the AMC each year as investment
management fees.

4.SHAREKHAN DEPOSITARY SERVICE

Dematerialization and trading in the demat mode is the safer and faster
alternative to the physical existence of securities. Demat as a parallel solution
offers freedom from delays, thefts, forgeries, settlement risks and paper work. This
system works through depository participants (DPs) who offer demat services and
hold the securities in the electronic form for the investor Sharekhan Depository
services offers dematerialisation services to individual and corporate investors.We
have a team of professionals and the latest technological expertise dedicated
exclusively to our demat department, apart from a national network of franchisee,
making our services quick, convenient and efficient. At Sharekhan, our
commitment is to provide a complete demat solution which is simple, safe and
secure.
5.RESEARCH BASED ADVICE

- 45 -
 Every investor’s needs and goals are different. To meet these needs,
Sharekhan provides a comprehensive set of research reports, so that one can
take the right investment decisions regardless of their investing preferences! The
Research and Development at Sharekhan is done at its Head office Mumbai.

The R&D department Head Mr. Hemang Jani forwards all the details
regarding all stocks and scripts to all the branches through Internet. At the end of
each trading day there is a Teleconference, through which the R&D department
Head MR. Hemang Jani talks with each Branch heads and discusses about each
day’s closing position and shows their predictions about next day’s opening
position. The quarries regarding stock positions and other relevant matter of the
branch heads of each branch is being solved through teleconference.

The various publications of Sharekhan viz. Derivatives Digest,

Sharekhan’s Valueline, Eagle eye, High Noon, Investor’s Eye, Commodities Buzz,
Commodities Beat, Commodity Trader’s corner, Sharekhan Xclusive, etc. are
being prepared by the research team of Sharekhan made up of highly experienced
people from diverse field. These all publication provides:

 In-depth analysis of the markets

 Analysis Before, During (live market updates) and After
market timings
 Special sector tracking reports sent regularly

6.ONLINE IPO

Online IPO (Initial Public Offering) is a new service started by

Sharekhan for providing the application form of any company’s issues of shares
just like the TCS issue can be subscribed by filling an online form to reduce the
paper work and the fund transfer facility is also provided to the clients for
transferring the funds online. It is given on its web-site for helping the clients who
are not able to collect the forms manually and the speed of filling and reducing the
risk of misplacing of forms, not reaching in time, etc.

7.COMMADITY TRADING

- 46 -
 Organized futures market evolved
in India by the setting up of "Bombay
Cotton Trade Association Ltd." in
1875. In 1893, following widespread
discontent amongst leading cotton
mill owners and merchants over the
functioning of the Bombay Cotton
Trade Association, a separate
association by the name "Bombay
Cotton Exchange Ltd." was
constituted. Futures trading in oilseeds was organized in India for the first
time with the setting up of Gujarati Vyapari Mandali in 1900, which carried on
futures trading in groundnut , castor seed and cotton. Before the Second World
War broke out in 1939 several futures markets in oilseeds were functioning in
Gujarat and Punjab.

There were booming activities in this market and at one time as many as
110 exchanges were conducting forward trade in various commodities in the
country. The securities market was a poor cousin of this market as there were not
many papers to be traded at that time.

The year 2003 marked the real turning point in the policy framework for
commodity market when the government issued notifications for withdrawing all
prohibitions and opening up forward trading in all the commodities. This period
also witnessed other reforms, such as, amendments to the Essential Commodities
Act, Securities (Contract) Rules, which have reduced bottlenecks in the
development and growth of commodity markets. Of the country's total GDP,
commodities related (and dependent) industries constitute about roughly 50-60 %,
which itself cannot be ignored.

Most of the existing Indian commodity exchanges are single commodity

platforms; are regional in nature, run mainly by entities which trade on them
resulting in substantial conflict of interests, opaque in their functioning and have
not used technology to scale up their operations and reach to bring down their
costs. But with the strong emergence of: National Multi-commodity Exchange
Ltd., Ahmedabad (NMCE), Multi Commodity Exchange Ltd., Mumbai (MCX),
National Commodities and Derivatives Exchange, Mumbai (NCDEX), and
National Board of Trade, Indore (NBOT), all these shortcomings will be addressed
rapidly. These exchanges are expected to be role model to other exchanges and are
likely to compete for trade not only among themselves but also with the existing
exchanges.

- 47 -
8.DERIVATE TRADING
The emergence of the market for derivative products, most notably forwards,
futures and options, can be traced back to the willingness of risk-averse economic
agents to guard themselves against uncertainties arising out of fluctuations in asset
prices. By their very nature, the financial markets are marked by a very high degree of
volatility. Through the use of derivative products, it is possible to partially or fully
transfer price risks by locking-in asset prices. As instruments of risk management,
these generally do not influence the fluctuations in the underlying asset prices.
However, by locking-in asset prices, derivative products minimize the impact of
fluctuations in asset prices on the profitability and cash flow situation of risk-averse
investors.

- 48 -
- 49 -
 MARKETING DEPARTMENT

The main aim of marketing activities at Sharekhan is that the customer

should get enough guidance to join the company and how he can get the best
service than any other stockbroker. There is an officer for handling the marketing
activities followed by two executives and it is not limited to them but the other
people are also having some responsibilities to increase the no. of clients and
retain them by providing them the services needed by them.

There are many services those are designed such that the specific target
segments of the customers are covered and the products are positioned in the
minds of customers as the best one in India. The services are as given below:

Sharekhan is India's leading national network of stock-broking outlets. It is

having the largest retail distribution chain in India. Sharekhan is not only a share-
broking firm, but it avails of various services and other financial products to its
clients.

1. Offline Trading facility

2. Online BSE and NSE executions (through BOLT, i.e. BSE Online Trading and
NEAT, i.e. National Exchange Automated Trading)
3. Free access to investment advice from Sharekhan's Research team.
4. Depository services: Demat and Remat transactions (Sharekhan is registered
with
NSDL, i.e. National Securities Depository Ltd., as a Depository Participant)
5. Derivatives trading, i.e. Futures and Options (through NEAT F&O)
6. Internet based online trading.
7. Other investment products: Mutual Funds, RBI Bonds, Insurance, etc.

- 50 -
Online BSE and NSE Trading

Sharekhan is a registered Stock Broker with the Bombay Stock Exchange and
National Stock Exchange to trade on behalf of clients. The screen-based trading
is done on BOLT-BSE Online Trading and NEAT- National Exchange
Automated Trading, terminals. There are two types of transactions executed on
these terminals viz. intra-day and delivery based transactions. Intraday
transactions are those, in which the squaring up of deal is done on the same
day, while in delivery based transaction the squaring up is not done on the
same day, but the stock is to be traded on the basis of rolling settlement i.e.
T+2. The Brokerage of Intraday transaction is 0.10% single side, while
brokerage on delivery based transactions is 0.50% on both side, i.e. while
purchasing as well as selling.

Free Access to Investment Advice through R&D

The Research and Development at Sharekhan is done at its Head office

Mumbai. From there it forwards the relevant data and tips on particular shares
and scripts at the relevant time. The R&D department Head Mr. Hemang Jani
forwards all the details regarding all stocks and scripts to all the branches
through Internet. At the end of each trading day there is a Teleconference,
through which the R&D department Head MR. Hemang Jani talks with each
Branch heads and discusses about each day's closing position and shows their
predictions about next day's opening position. The quarries regarding
stock positions and other relevant matter of the branch heads of each branch is
being solved through teleconference. The various publications of Sharekhan
viz. Derivatives Digest, Sharekhan's Valueline, Eagle eye, High Noon,
Investor's Eye, Commodities Buzz, Commodities Beat, Commodity Trader's
corner, Sharekhan Exclusive, etc. are being prepared by the research team of
Sharekhan made up of highly experienced people from diverse field.

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 Comparison of Online Trading Products with
various company

Onlin A/c
Onlin Online
Cos. / e Online Onlin Openin
Products Offered e Commo Deposits
Features BSE/ F&O e IPO g
MF dity
NSE Charges
Ground A/c, E-
Classic
Share Broking,
Yes Yes Yes No No 750/-ST 10000
khan Commodity, DP, 1000/-
PMS
Ground A/c, Online
Kotakstre
A/c, Commodity, Yes Yes Yes Yes No 500 50000
et.com DP
ICICI Online A/c, Mutual
Yes Yes No Yes No 750 -----
Direct.com Fund
HDFC E-Broking Yes Yes No No No 600 -----
Ground A/c, Online
Motilal
A/c, Commodity, Yes Yes Yes Yes Yes Upto 400 -----
Oswal DP, PMS
Ground A/c, Online
Indiabulls A/c, Commodity, Yes Yes Yes No No 250 -----
DP,MF
5- E-Broking,
Yes Yes No No Yes 500 5000
Paisa.com Insurance
Angel Ground A/c, E-
Yes No Yes No No 500 50000
Broking Broking
Insurance, MF,
IL&FS E-Broking, Ground Yes Yes Yes Yes Yes 500 ------
A/c
Ground A/c, E-
Anagram Broking, Mutual Yes Yes Yes Yes Yes 780 10000
Fund

- 52 -
 Depository Participation

Sharekhan is a registered Depository Participant (DP) with National

Securities Depository Ltd. (NSDL). The participants are required to enter into an
agreement with beneficial owners. It is required that separate accounts shall be
opened by every participant in the name of each of the beneficial owner and the
securities of each beneficial owner shall be segregated and shall not be mixed up
with the securities of other beneficial owners or with the participant's own securities.
The participants are obliged to reconcile the records with every depository on a daily
basis. Participants are required to maintain the following records for a period of five
years.

• Records of all the transactions entered into with a depository and with a beneficial
owner;
• Details of security dematerialized, rematerialized on behalf of
beneficial owners with whom it has entered into an agreement;
• Records of instructions received from beneficial owners and
statements of account provided to beneficial owners; and
• Record of approval, notice, entry and cancellation of pledge or
hypothecation as the case may be.

Publications of sharekhan
- 53 -
 Sharekhan’s Valueline

 Derivatives Digest

 Eagle Eye

 High Noon

 Investor’s Eye

 Commodities Buzz

 Commodities Beat

 Commodity Trader’s Corner

 Sharekhan Xclusive

- 54 -
Marketing Mix

The marketing mix of Sharekhan is an excellent example we have seen in the

industry because no other brokering organization has such products to target the
investors of different minds, incomes and aims. There is an objective of satisfying
the customer as to make him delighted with affordable prices and convenient services.
The fourth P of the marketing mix is the best at Sharekhan in India because the total
no. of share shops are widespread all over to have the maximum contacts and
awareness about Sharekhan, and we can say that it has achieved that because it is
having the maximum turnover than any other broker in India. The Classic,
Speedtrade and Speedtradeplus are the trading products, which are one of the bests
in the market.

The marketing is done based on leads generated through the web contact, tele-
contact and personal contact with the customer and is a planned procedure to find out
new customers. The marketing management is carried out in an excellent way at
Sharekhan.

- 55 -
 SEVEN P’S OF SHAREKHAN

 PRODUCT

Product Variety
Share khan offers 3 types of online trading accounts for its customers specially
designed according to their volume in share trading. Those 3 varieties are:
• Classic- for retail investors
• Speed Trade: for high net worth investors with large and active equity
portfolio who need to monitor and action swiftly
• Speed trade Plus- for high net worth investors dealing in derivative market.

Quality
User Friendly, attractive & colorful Website.

Design
The website of Share khan namely www.sharekhan.com has been specially
designed to facilitate its users to buy and sell shares in an instant at anytime and from
anywhere they like. The site is user friendly allowing even a layman to easily operate
without any hassles.

Brand Name
The company as a whole in its offline business has named itself as SSKI
Securities Pvt. Ltd . shripal Sevantilal Kantilal and Ishwarlal Securities Pvt. Ltd. The
company has preferred to name themselves under a Blanket Family Name.

But in its online division started since 1997, the company preferred to name
itself as “SHARE KHAN”. The Brand Name “SHARE KHAN” itself suggests the
business in which the company is dealing so that the consumer could easily identify
the product or service category.

- 56 -
Services

Share khan offers its customers, depository services and trade execution facilities for
equities, derivatives and commodities backed with investment advice tempered by
decades of broking experience. The teams of its dedicated analysts are constantly at
work to track performance and trends.

Dial-n-trade is also an exclusive service available to all Sharekhan customers for

trading in shares via the telephone. On dialing the toll free number 1600-22-7050 and
on entering the customers TPIN number, the customer will be directed to a telebroker
who will buy or sell shares for him.

 PRICE
 List Price
CLASSIC SPEED TRADE SPEED TRADE
PLUS
One time 750 1000 1500
Registration fee
Minimum brokerage Nil 1000 1500
Charges –Quarterly

 Brokerage
Share khan in its online business charges brokerage as follows:
- In equity Market:
On Trading: 0.1% On Delivery: 0.5%
- In Derivative Market
On Trading: 0.12% (Total brokerage) On Delivery: 0.1%

 Service Tax
8% on Brokerage.

 Turnover tax + Stamp duty

-0.015% (Rs. 15 on every turnover of Rs. 100000)
- 57 -
  Custody Charge
Re. 1 per script held per month.

 Discounts
For investors with High Net worth, there are slabs in brokerage rates.

 Payment Period
The transaction settlement date in the securities market is T+ 2 days i.e. the
payment of the transaction taken place has to be made within two days of its
occurrence.

 Credit terms
Share khan allows its customers to trade up to 4 times i.e. by keeping 1/4th margin
with them.

 PROMOTION

Online share trading is totally a new concept in Indian Market. Generally

investor doesn’t like to come out from conventional way of share trading. Share khan
has introduced this product in. The concept and Product are still new in the market.
Therefore the company has undertaken extensive promotion campaign to create
awareness about the product. Share khan adopts the following tools for promoting the
product.

 Advertising

Company advertises its product through TV media on channels like CNBC,

Print Media-in leading dailies and outdoors media. It advertises itself as an
innovative Brand with a cartoon of tiger-called SHERU. Besides attractive and
colorful brochures as well as posters are used giving full details about the product.
Mails are sent to people logging on to sites like moneycontrol.com and rediff.com.
Also, stalls are opened up now and then at places where prospective customers can be
approached.

 Sales Promotion
The Company offers Rs.500 instead of Rs.750 for corporate accounts (more
than 20 accounts).
Also, it provides online trading accounts for just Rs.300 for IIM students.

 Sales Force

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 The Company has an aggressive sales force, which is given incentives, based
on their sales. The sales force is given intensive training continuously.
 Seminar
The Company also arranges seminar in corporate world for creating awareness
about the product. Recently, it had organized for a seminar in ONGC, IIM.

 Direct Marketing
Company emphasizes more on direct marketing, as many people are still not
aware of this new way of smart trading. For this, the company recruits and trains
sales representatives so as to explain the product and solve customer queries related
to the product. This is the most effective way to communicate the three-in-one
concept which company offers.

 Telemarketing
This is another promotional tool company is using to boost up its sales. For
this, the company collects the database of the people belonging to different
professional segments.

 Dematerialization charges
Re. 3 per certificate or Rs.15 per requests whichever is higher.

 PLACE
 Channels
Share khan uses various channel alternatives to reach to its customers through
 Internet
 Tele Marketing
 Retail Share Shops
 Franchisee Owners
 Power Brokers
 Sales Force

 Coverage
Access to the website from any part of the globe.

 Locations
Share khan has the largest chain of retail share shops in India. It has
180 share shops located in 90 cities all over India like Pune, Thane, Chennai,
- 59 -
 Kolkata, Banglore, Luckhnow, Darjleeng, Kanpur, Baroda, Midnapore, Surat,
Delhi, Gaziabad, Hydrabad, Allahbad, etc.

 PEOPLE

 Employees
⇒ Selection: Employees are selected on the basis of their
experience and qualification as applicable to the job.
⇒ Training: Intensive training is provided to the employees till a
week once they join and even at times required after that.
⇒ Motivation: The employees are motivated through incentives
they are provided.

 Research Team
Share khan has a team of dedicated analysts who have years of working
experience in the industries that they track, and a proven track record in using
their knowledge of the investment science to deliver results.

 Customers
The heart of sharekhan are really treated loyally like the kings. The
customer care, which comprises of highly trained executives operating from
9:30 to 8:00 p.m.

 PHYSICAL EVIDENCE

 Locality of the office:

In Ahmedabad, two franchise outlets are located in posh areas like
Navrangpura and Maninagar. A new franchise is going to open up in
Vastrapur.

 Office Environment:
The ambience within the office is what can make the customer feel
comfortable in trading. The cordial and friendly atmosphere at office is like a
full time motivation for the employees.

 Interiors and Infrastructure:

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 The office is well furnished and has 24 computer terminals on which
tick-by-tick price movements of the securities are displayed.

 PROCESS
 In this service organization, the ways in which the customers receive delivery
of the service constitutes the process. Here, the process involves adding
‘value’ or ‘utility’ so that the customers get full satisfaction for the money
spent by them.

 Here the process begins from the step when customer wants to open e-invest
account and ends when his account is actually activated.

 All Indian residents and NRI are eligible to avail this service.

 Customers can open a sharekhan e-invest account by filling a single

application form.

This form includes 9 agreements like

1. Main form with customer details
2. Agreement between sharekhan and client in respect of the ONLINE-
INVESTMENT SUPPORT service offered.
3. Agreement between the Depository Participant and the client for providing the
transaction statement through Internet.
4. Irrevocable power of attorney
5. Agreement between the DP and the person seeking to open an account with
the DP.
6. Maintenance of client’s account on a running account bases by SSKI.
7. Agreemen4 giving the right of lien on the credit balance of client in NSE
trading.

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SERVICE (Product)
Service is an act or performance that one party offers to another for sell and it
is not a physical product that you can touch but it is that one can feel. It is not likely
to result into the ownership of anything. A service can be a fully service or a mixture
of service and physical product.

The trading products of Sharekhan are such a mixture of services like DP

service (managing the Demat account), providing reports for investment advice etc.
and thus we can define its service mix as a hybrid product mix of different physical
products with accompanying services.

Therefore, the two types of accounts offered by Sharekhan i.e., Offline and
Online are the two main product lines in the product mix of the company. The
offline a/c with Sharekhan is defined as the account having which you can trade
anywhere in the share shop of Sharekhan and the online a/c is that you can trade
on your PC through the software provided by Sharekhan and it also offers tele-
trading in both the cases but the major difference is of the service and prices for
opening an account. The product mix is as shown below:

The product mix is showing the products offered by Sharekhan to its customers
and it is one type of a tree structure diagram that shows the products of a company. The
products are actually services and are at the completion of the second stage of
- 62 -
Product-Life-Cycle, i.e., Growth and are entering into maturity stage. So there should be
some changes in the marketing strategies of the company.

- 63 -
 SEVEN ‘S’ MODEL

Structure

System
Strategy
Super s
ordinate

Goals
goals
Style
Skills

Staff

 STRUCTURE:
- 64 -
Share khan is flexible in terms of making temporary structural changes to
cope up with specific strategic tasks without any hassles. If need arises, the
top management can assign the role to any of its employees which it
considers capable and skillful.
 STRATEGY:
Share khan believes not only in developing the strategies but also in its
successful execution.
 SYSTEMS:
This constitutes of all the training and development systems, estimating
budgets and the accounting system of Share khan.
 STYLE:
Style refers to all the symbolic actions undertaken by top managers of
Share khan and its influence on the subordinates.
 STAFF:
Share khan values its employees as its assets and therefore carefully trains
and motivates them by giving them incentives at regular intervals. Talented
employees are assigned as mentors and given real responsibility and
moved into higher positions.
 SKILLS:
The term skills refer to those activities organizations do best and for which
they are known. Share khan is known for its timely advice
(suggestions/tips), which it caters to its customers and it boasts of 70-90%
strike rates in booking recommendations.
 SUPERORDINATE GOALS:
This refers to guiding concepts, values and aspirations that unite an
organization in some common purpose. It provides the customers the best
service as it believes in customer satisfaction and retention.

- 65 -
- 66 -
- 67 -
Conversion process
The main aim of it is to make profit with customer satisfaction. The
conversion of Inputs works as the Sharekhan earn brokerage from the
customers. The profits are generated from getting a higher return on the invested
amount of money than the amount payable to the customers. The process is
facilitated by a centralized computer system in which the data is stored and
recovered for the whole INDIA and it is having the CPU at the H/O in Mumbai.
Sharekhan is regulating the brokerage rates all over India by keep watch on each
transaction done from the branch office. The data of a customer will be stored in
the central computer and all facilities such as bills, credit/debit reports etc. are
provided by that computer to all customers on-line on the Internet.

The conversion process is also facilitated by some adjustments to the inputs

and then the random fluctuations are also handled in the process and lastly the
monitoring of the process is done and a feedback is given to do the adjustments
for the process as indicated in the figure given.

Outputs
Outputs are those services generated by Sharekhan with the help of the inputs
and using the conversion process. These services are as listed in the figure above.
Table Sharekhan.2

- 68 -
Operations Strategy at Sharekhan

Operation strategy at Sharekhan

 Quality
 Reliability
 Flexibility
 Creditability
 Dependability
 Efficiency

Facility Mission

Process Capacity Facility Vertical Integration Infrastructure

Automation Maximum size, Supplier Plan and
structure
Centralization possible Location, control, Work force
Regulation of serving Focus on Customer Quality control
Operation capability locating serving control, R & D, T & D
Service center
Specificity

- 69 -
 Operations strategies are implemented in Sharekhan as shown in the chart
given above and the main points of consideration are Efficiency,
Dependability, Quality and Flexibility.

The points demand a facility mission that is made up of process, capacity,

facilities, vertical integration, and infrastructure facilities provided to get the
desired outputs as per the plan.

organization and high level of it is desired outputs with low costs, i.e.,
productivity with effectiveness. Quality should be high and consistent in delivering
services; Flexibility is related with fast introduction of new services and providing a
wide range to select an option to the customer. The process of operations,
capacity/ability of the organization, competitive advantages, vertical integration and
the infrastructure created by the firm facilitate this.

Sharekhan plans the strategies to get a working plan from it and the
planning is done from top-to-bottom level, i.e., national level, regional level,
divisional level and the branch level planning is carried out by the managers.

In this way, the Operations are managed with the best efforts in a direction that
is to facilitate future plans by achieving success in time and create milestones in the
industry by making the company driven by values and excellence.

- 70 -
 TRANSACTION CYCLE:

Decision to Placing Order

trade

Funds or
Securities Transaction Trade
Execution
Cycle

Settlement of
trades Clearing of
Trades

- 71 -
- 72 -
 FINANCE DEPARTMENT
Like Blood is the most important in our body, in business Finance is the
blood of any business. Finance is needed for all the activities like production or
services as well as their distribution. The finance department directly influences
all the functions of the other departments. Also finance has to give equal
importance to all departments. Finance is that administrative area or set of
administrative function in an organization, which relate with the arrangements of
cash & credit so that they organization may have the means to carry out its
objective as satisfactorily as possible. Sharekhan has special accounts
department for separate calculation of pay-in and pay-out of funds according to the
client's Profit/Loss. Finance management is done at Sharekhan is done by
managing the stocks in the Demat accounts and funds in the margin & trading
accounts

Finance is the lifeblood of an organization to continue its activities and the

finance management at Sharekhan can be divided into two major parts viz. DP
(depository participation) and Accounts management, which are shown in the
figure given above.

DP is treated as a separate department at Sharekhan and is covered in the back

office management in the organization structure. In simple words, DP means
providing the facility to the clients for managing the stock bought/sold by them.
DP covers two major terminologies viz. settlements and the auctions which is a
part of managing Demat account. Settlements as defined by SEBI (Securities
Exchange Board of India) are T+2, currently and it means that the Demat
account of the clients are prone to be sufficient for selling a script with no
debit at all, i.e., the account must have the sold amount of stock to fulfill the
settlement after 2 days from trade-day. The settlements for Day-Traders is not
needed because they buy/sell stocks in that particular day, only the delivery trades
are needed to be settled because if you sell 1000 shares of, say SAIL then your
account must have the stock before you sell it or it must be there in your Demat
before the next day's trading begins (market opens). Generally, the timings are

- 73 -
9:30 and 3:00 as a deadline for the client and he must provide the stock for giving a
delivery to the buyer. The chart shows the total transaction between two clients:c

The chart shows the process that the request for selling and buying passes
through the DPs of the respective clients and finally the exchanges like SKSE
(Saurashtra Kutch Stock Exchange) becomes the controlling intermediary for
the delivery of stocks and this process is done in two days. Nowadays, as banks are
becoming fast for E-Fund Transfer (EFT) and Phone-banking is getting more
popularity, SEBI is thinking to make the financial market of India to have a
maximum speed of transactions just like the other nations in the world and
proposing for T+l settlement scheme but the system is not enough competent for
that thing. But soon or later we will have such a settlement system in India, as said
by Mr. J. N. Bajpai, chairman of SEBI.

The client, if not capable of providing the delivery of say, 1000 shares of
SAIL then the Auctions are initiated by the exchanges and the client has to pay
for the price prevailing in the market with 4-5% penalty. The penalty can go on
maximum to 20% more than the market price of the sold stock. Generally, it is
known as a buying auction and a same kind of auction is for selling the stock for
which the buyer was proved unable to pay the price is carried out by exchange,
known as the selling auction. And a debit or credit note is provided in the
respective case of auction to the clients, i.e., for buying auction debit note is
given on the T+4 basis and in case of selling auction the credit note is given on
T+5 basis. There are two types of auctions called as Internal auctions &
Market auctions, the internal auctions are defined as the auctions carried out
between the other shops of Sharekhan and market auctions are those as explained
earlier, the auction carried out in the market.

This is all about settlements but now switch to funds management or

accounts management at Sharekhan. The accounts are different that is the margin a/c
for deposits of the client and trading a/c for which Profit/Loss are settled. The
collection of funds from the clients who had a debit balance or made a loss are
made on the next day of trading and the payments to the profiting traders are made
after two days of trading because the cheques are received from H/O and then pay-out

- 74 -
is done and Pay-in is as explained that amounts to be taken from the clients. In this
way, accounts are managed but in case if the client is unable to pay, the deposit from
the margin a/c is cut down to the payments and in case if a client is having a credit
balance in F&O trading though he had a debit balance in cash-NSE & BSE trading, a
JV request is sent to H/O for totaling the three balances. The main aim for accounts
management is that the clients must have a credit or no debit on the next day.

The DP services provided by Sharekhan are falling under the regulation of

NSDL (National Securities Depository Limited) and CDSL (Central Depository
Services Limited), organizations governed by SEBI to regulate the depository
services in the interest of the investors. So the financial market in India is governed
by Ministry of finance under which two major bodies viz. SEBI & RBI are covered
and under RBI the banks and other financial institutions are covered while SEBI
covers the exchanges, NSDL & CDSL and the whole DP service providers with the
brokers to the investors at the lower end of the financial market.

In this way we have gained a meaningful knowledge about India's financial

market and its structure from this training at Sharekhan. hi this way, the finance
function is carried out at Sharekhan by following the guidelines given by SEBI.
And the company is a private limited one with its own policies for disclosing its
financial statements, so we are not able to give any figures for showing the financial
position of the company.

- 75 -
- 76 -
 MAN POWER AND EMPLOYMENT

Employee 31
Trainee 5
TOTAL 36

Detail of employee
Taretary manager 1
Branch head 1
Ass.Manager 2
Dealer: - On line 3
Off line 3
Commodity 1
F&O 2
BSE& NSE 4
Back office 3
Executives 7
Peon 4

- 77 -
 HUMAN RESOURCE DEPARTMENT

Human resource is the crucial resource that a company can use to grow with
the work or the employees. HRM activities at Sharekhan start from induction to
the specific job training and are done by H/O at Mumbai. H/O takes a written test
and selection interview for filling up vacancies in branches but the recruitment is
done by the branch itself and the selection is performed by H/O from the screened
applicants.

Any new recruit is firstly inducted to the company and sent to T & D
department that is covered under HRD and T & D programmers makes employees
aware about all the activities/jobs within the department he/she is to be recruited.
Suppose if, I would be recruited for finance department then the finance related
employees are known to me with their work profiles, that is, what they really do?

Then the specific job training is provided at H/O and the person has to keep in
touch with the concerned department at H/O on internet because he/she has to solve
many conflicts arising in the investor's mind and to have an up-to-date
information regarding the procedures and any new facilities or policies to resolve
the problems of the clients. It is a must for each employee because the employee is
the people by whom the company gets its customers and retains them.

HRP (Human Resource Planning), HRIS (Human Resource Information

System), Recruitment & Selection, Career planning and development, Assessment
& development of employees for Performance appraisal, etc. activities of managing
the HR at Sharekhan is maintained in a way to meet the requirements.

The corporate culture at Sharekhan is maintained in such a way that the

people are helpful to each other and eager to get the work done as soon as
possible with a cooperative thinking. An additional Rs. 10000 is provided for each
outlet of Sharekhan to motivate its employees by performance appraisal and also the
heads of each departments and braches has to go through a 3606 performance
appraisal for maintaining the consistency in growth of the company.

In the end we can say that the human resource of Sharekhan is a best
managed and used for the continuous growth and development of the company for
its future plans to be achieved time-to-time.

- 78 -
 Joining Formalities

Sharekhan welcomes all employees and is confident that this

association will be mutually enriching and challenging. It is
essential for the HR team to keep record of your personal and
professional information to enable speedy processing of
information and planning relating to areas such as tax and
medical insurance as well as allowing us to assist you in the time
of emergency.

In this regard we request all new employees to please furnish HR with the
following information. The documentation needed falls into three primary
categories: personal information, joining report and other forms.

Personal Information
For the personal record of the employee the following documents should be
submitted to the HR team on the day of joining:

• Duly completed Application Form

• Two passport size photographs
• Proof of date of birth
• Copy of educational certificates: graduation/post graduation/diplomas/NCFM
certificates (wherever applicable)
• Relieving certificate from the previous employer, if applicable
• Proof of last drawn salary
• Copy of Mapin registration (wherever applicable)
• Medical examination reports
• Bank account details
• Insider Trading Agreement (only for designated employee)
• Confidentiality Agreement

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Joining report
In addition the employee is required to fill out a Joining Report as per the format
attached in the annexure.

Other forms
The following forms/agreements also need to be completed:

• Medi-claim insurance application form

• Provident Fund transfer/application form
• Provident Fund nomination form
• Gratuity nomination form
• Accident Insurance nomination form
• Tax estimate/Savings declaration form
• Mapin registration

- 80 -
 Confidentiality Agreement
On joining Sharekhan it is imperative for all employees
to sign and abide by a confidentialit
agreement, which is
legally binding.

It is an agreement stating both during and after employment all data

pertaining to any businesses involving Sharekhan is to be kept confidential and
protected and not to be shared with anyone. Information relating to the company's
business, dealings, methods, appointments, practices, transactions, designs and
processes or affairs is of substantial value and shall be treated as being confidential,
whether or not it is individually identified as confidential. It is the subject of
reasonable efforts to maintain its secrecy and is being provided and disclosed to you
solely for use in connection with your employment by the company.

This agreement also binds employees to uphold all ethical practices espoused by the
company.

During the course of your employment, you agree that you:

• Will regard and preserve all trade and proprietary information of the
company as highly confidential.
• Will not disclose, nor permit to be disclosed, any information to any person
or entity, without written consent and approval from the company.
• Will not reproduce or duplicate, and will not permit any person to reproduce
or duplicate any information without the company's written consent and
approval.
• Will not make any use of information for their own benefit or the benefit of
any person or entity other than the company.
• Will return all information and data to the company immediately upon the
request for the same.

Employees who improperly use or disclose proprietary information or confidential

business information will be subject to disciplinary action, up to and including
immediate termination of employment, even if they do not actually benefit from the
disclosed information.

- 81 -
 Induction
Induction forms an integral part of Sharekhan's culture.
The induction programme is designed with the
following objectives:

• Provide an overview of the company's business and product portfolio.

• Enable the new employee to understand the work culture and
processes/systems.
• Provide an opportunity to interact with his/her superiors/colleagues and
enable him to understand them better.

During induction, employees are:

• Provided their own workspace

• Given a copy of this Employee Handbook
• Introduced to assignments related to their role

Induction process
The function heads along with the HR team designs the induction
programme. The duration of the induction programme varies from two days to a
week depending upon the role on the new joiner. The induction programme in the
company covers three broad areas:
I. About Sharekhan

• Introduction to Sharekhan: vision, business, products and clientele

• Organisation structure: key functions and their accountabilities, function
heads
• IT systems and policies

II. HR philosophy and practices

• Sharekhan values
• Overview of HR policies, systems and practices
• Overview of risk & compliance practices

III. About the job

• Key responsibilities and expectations of the job

• Goal setting and performance measurements

- 82 -
 SHAREKHAN’S massage to all member

This handbook has been designed to

communicate to our team the various Human Resource (HR)
policies/practices that we are trying to institutionalise in our
organisation.

This handbook disseminates information on all the SSKI Investor Services

Pvt. Ltd (Sharekhan) policies, procedures, benefits and responsibilities of the
employees. The policies have been designed with a focus on introducing market
aligned HR practices at Sharekhan while meeting the needs of individual employees
and addressing their concerns.

This handbook is not an agreement or contract of employment and therefore

need not be construed as a contract. The management of Sharekhan reserves the
right to modify this handbook from time to time at its sole discretion.

This handbook is for internal circulation only. We would request you to

read, understand and comply with all the provisions of this handbook. If you need
any clarifications or further information on any aspect of this handbook, you can get
in touch with your immediate superior or the HR team.

We welcome you to the Sharekhan family and hope your association with us
is mutually EXCITING, FUN FILLING and CHALLENGING!!

- 83 -
 SHAREKHAN’S Belief and Expectations

Our vision at Sharekhan is "to empower the investor to

make better investment decisions through quality service
and superior advice."

Sharekhan believe in and promote a culture that:

• Stimulates the employees' drive to excel
• Nurture their entrepreneurial spirit by providing them exposure to
challenging work opportunities and imparting autonomy to function
effectively

• Support the employees to deliver by incorporating practices aimed at

o Employee development/skill acquisition

o Enhancing transparency and trust, being non-discriminative to any
practice/procedure/system
o Establishing norms towards enforcing discipline in the organisation as
regards work etiquettes

• Promotes collaboration and team spirit amongst the employees

• Acknowledges and rewards individual and team contribution through

appropriate rewards, recognition and compensation

• Builds a sense of ownership across the organisation for adherence to risk and
compliance procedures amongst all employees and channel partners.

- 84 -
What Sharekhan Expect from there team?

In our industry, relationships with clients are highly critical. Developing

customer focused solutions and managing their expectations effectively and
delighting them is the key to our success. Sharekhan believe that an Engaged &
Committed workforce is indispensable for high quality customer service.

Sharekhan is in an industry that is governed by stringent regulations and

non-compliances can lead to financial loss and loss of goodwill. They expect there
team to function in tandem with the organisation and support the management to
inculcate a strong discipline across the organization

At Sharekhan we believe in having a strong performance-oriented culture.

We are convinced that this is the best way to encourage employees to set high
performance standards and goals that are tracked, and performance that is evaluated
to decide the rewards.

Sharekhan strongly believe in employee development and growth. In this

competitive environment, Sharekhan expect there employees to be abreast of the
external changes and take initiatives to adopt the new changes. As part of there HR
initiatives, They will identify training needs, design appropriate training
programmes and conduct them on regular basis.

Leave and holiday

At SSKI we have established a set of leave rules that are
legally compliant and that provide for reasonable leave
requirements of employees, giving them the opportunity to

- 85 -
maintain a work-life balance.

Leaves at SSKI
SSKI provides the following types of leaves/holidays:

• Holidays
• Privilege leave
• Maternity leave
• Paternity leave

Leave accounting year

The year for calculation of leave would be the same as the financial year—
April 1st to March 31st.

Pro rata adjustments will be made to bring entitlements in line with this.

The current leave policy will be valid upto 31st March 2005 and the revised
policy that is listed below will be effective 1st April 2005.

Detailed guidelines

A. Holidays
The company will declare a list of 12 holidays every year based on the
holidays declared by the exchanges, bank holidays and regional festivals. Please
contact your function head or branch head for the current list.

B. Classification of leave & eligibility

Leave type No of days (annual)

a. Privilege leave 25 working days
b. Paternity leave 2 working days
c. Maternity leave 12 weeks

a. Privilege leave (PL)

Eligibility - All confirmed employees

- All employees on probation/trainees will be eligible for one
working day leave per

- 86 -
 month. On confirmation, the leave balance will be updated on a
prorated basis.
Accumulation 15 days per year, up to maximum 45 days

Encashment Privilege leave can be encashed only at the time of retirement or

resignation. The leave balance up to maximum of 45 days will be
encashed as per the basic salary at the time of encashment and all
excess leave will lapse.

b. Paternity leave (PL)

Scope For all male employees. Leave taken for the birth of first two
children.
Eligibility Two working days
Accumulation Not applicable
Encashment Not applicable

Leave planning and application

SSKI encourages employees to plan their leave carefully in order to meet the
needs of the employees and the company. You must fill out the Leave Application
Form when requesting time off, which must be signed and approved by your
manager/supervisor. Employees are encouraged to actively communicate leave
plans and details to their supervisors so that all team members can adjust their
schedules. The company will try at all times to meet any reasonable requests for
leave; however consideration of your co-workers and any existing responsibility is
essential.

Leave of all types availed in the month must be updated on the leave card.
Till leave cards are provided, an e-mail with the approval of leave by the immediate
manager must be sent to HR and Payroll for easy tracking and updation in monthly
payroll.

Leave between holidays

- 87 -
 The company does not permit its employees to take leave prefixed and
suffixed to the holidays.

For instance if a holiday is on Friday and a weekly off on Sunday, then the
employee is not supposed to take leave on Saturday. In case the employee takes
leave on Saturday, then all three days, ie Friday, Saturday and Sunday, will be
considered as leave.

Leave extensions
The company does not encourage extensions of leave. They will be granted
only if the employee communicates such an intention in writing only in unforeseen
circumstances at the discretion of the management.

Leave without pay

Any leave availed in excess of the entitlement will be treated as leave
without pay and proportionate salary will be deducted for the same. The company
does not encourage employees to take leave without pay. The leave without pay can
be waived off only in unforeseen circumstances at the discretion of the management

- 88 -
 Other Benefit and Sharekhan Policy
We at Sharekhan would like to contribute towards enhancing our
employees' and their families' life by extending benefits that are
of relevance and importance to our employees. In this chapter,
we have summarised the benefits that are available to our
employees.

I. Employee Marriage Gift Policy

We believe that our employees are part of a large Sharekhan family. Just as
employees are an integral part of all the developments and celebrations of
Sharekhan, we too would like to be a part of one of the most important event in the
life of our employee—Marriage.

The Employee Marriage Gift Policy is instrumental in showering our best

wishes on the newly married couple.

Applicability

• All single employees of Sharekhan.

Process
The process and administration of the policy is detailed below:

• The manager on receipt of the invitation card will forward the same to the
Accounts department for necessary action.
• In case the marriage is between two employees, both will receive the gift
individually.

Employee marriage gift

The employee will be given a token gift of Rs2,500/- by cheque on the
wedding day. This gift will be handed over to the couple by his/her immediate
manager/supervisor with best compliments.

II. Medi-claim Policy

Sharekhan provides Medi-cliam cover to all employees. The detailed
information on the policy, relevant processes and the TPA (Third Party
Administrator) appointed by the company is attached in the annexure.

- 89 -
Coverage and limits
The Company bears the cost of insurance premium for all employees as per
following limits:

Monthly CTC Coverage

Up to Rs25,000 per month Rs100,000
Above Rs25,000 per month Rs150,000

Employees have the option of covering their dependents under this policy
for any amount not exceeding the limit for the employee; however the cost of the
same will have to be borne by individual employees.

III. Term Insurance Policy

Sharekhan provides term insurance cover (death in case) to all employees.

The details of the coverage are as mentioned below:

Annual CTC Coverage

Up to Rs100,000 Rs200,000
Up to Rs300,000 Rs500,000
Up to Rs800,000 Rs1,000,000
Up to Rs1,500,000 Rs2,000,000
Above Rs1,500,000 Rs4,000,000

Term of Employee
Probation
All regular full-time employees will undergo a six-month probation period
as specified in the appointment letter. The probation period helps the organization to
assess the employee's on-the-job performance and his cultural fit with the
organization.

Either party may give 15 days' formal notice of separation of employment

at any time during probation.

- 90 -
Confirmation
Completion of the probationary period should not be construed as
confirmation till such time that the confirmation review process is completed.

The employee's immediate superior at the conclusion of the probation period

shall conduct a formal performance review for confirmation. The performance
review shall include self-feedback, performance review by the managers with
specific suggestions for improvement.

An official letter will be issued in case of confirmation. In case the

performance is not satisfactory, the probation period can be extended for three
months. The confirmation appraisal format is attached in the annexure.

Either party may give a minimum of 30 days' formal notice of separation of

employment at any time after confirmation.

Transfer Policy
Transfers become essential in the spate of growing business requirements. To
meet them appropriately, the Company may decide to transfer any employee to any
location based on the business requirements. With the purpose to facilitate the same,
it is essential to have a transfer policy in place. It is necessary for the company to
assist employees in this process.

All employees of the organization will be covered under this policy. The
employee will be communicated in writing regarding his / her transfer and other
relevant information i.e. reporting authority, work responsibilities etc

Mode of travel for self and family

Fare for self, spouse and the company on producing the tickets will reimburse
two dependent children at actuals. The mode of travel remains the same as per
employees’ eligibility in the Travel Policy.

Pre-transfer expenses
The company will reimburse 1 pre-transfer trip for self and spouse, not
exceeding 5 days in total, to the transferred city for the employee on account of
housing, schooling etc. Travel and Hotel expenses will be as per the Travel policy.

- 91 -
Post-transfer expenses
The employee and his / her family will be eligible for Hotel stay at the new
location as per eligibility under the Travel policy. The total period of hotel stay post
transfer with family will not exceed 5 days.

Transport of Goods
The employee will be eligible for reimbursement of cost of one truckload of
personal belonging on actual from his current location to the transferred location.
However, the employee is required to submit quotations from minimum two
transporters and needs to have pre-sanction for the expense. Transport allowance
will include packing, loading and unloading charges and insurance premium. The
insurance premium should not exceed Rs.10,000.

In case of function heads / branch heads / Managers, the company will

reimburse additional cost of transportation of one car on actual. However, the
employee is required to submit estimated cost and needs to have pre-sanction for the
expense

Temporary Transfer
If an employee is deputed to any other location/ office for a minimum period
of one month and not exceeding six months, it will be considered a temporary
transfer.

An employee on temporary transfer will be eligible for a monthly Deputation

Allowance equivalent to 25% of his current CTC and the same will be paid along
with the monthly salary.

Any temporary transfer exceeding six months will be considered as

permanent transfer and all benefits associated with temporary transfer will cease to
be applicable.

- 92 -
Personal Conduct
Sharekhan’s business is dependent on there reputation and the level of trust
that is reposed in us by our customers. However this calls for a very high inclination
towards adherence to regulations and being ethical in all our dealings. They believe
each and every employee's behaviour needs to reflect our philosophy. The onus is
on each and every member to refrain from any illegal, dishonest or unethical
conduct and report to the management any incidents of malicious nature occurring
around him.
Employee responsibilities
The job performance and personal conduct of each employee directly affect
the image and reputation of Sharekhan. Employees are required to observe the
following guidelines to maintain ethical standards:

• Ensure there is no theft, embezzlement, misappropriation of funds, false

entries in any book report or statement with intent
• To defraud and falsify the expense accounts is a cause for immediate
dismissal.
• It is the responsibility of each employee to report to the management any
knowledge that a crime has been or will be committed. Not reporting is a
cause for immediate dismissal.
• A client's confidential information must not be divulged to third parties
except with proper authority from the client and the immediate superior.
• An employee will not discuss nor enter into agreements with competitors
concerning Sharekhan's dealings, prices/services etc.
• Sharekhan's physical properties, information and influence will not be used
for the private advantage of any employee or other person.
• Outside activities must be acceptable and compatible with the employee's
identity with Sharekhan. This includes the prohibition of business and
personal investments, and outside employment, any of which would create a
conflict of interest.
• Employees must not accept from or give to clients and suppliers personal
gifts; or accept bequests, commissions or fees of any nature from clients; or
borrow from clients or suppliers.

- 93 -
- 94 -
 WHY THIS STUDY IS CONDUCTED??

In the Rajkot City, Finding for the Sharekhan that where they are invest there
Surplus money. For know the how the people are invest there money in Stock
Market. Which medium they are Use, they are trading through On line, Off line,
Dial n Trade and how much time period they are invest in the market.

There are very few people in Rajkot who are trading in Share Market. So
provide them Knowledge about the Share Market and Sharekhan. So Sharekhan can
improve his income. While there are immense opportunities for the development of
these segments.

Sharekhan as a stock broking company needs to focus on increasing the

awareness about Share Market Trading. Because, if trading on these instruments
will increase, Sharekhan will also be benefited by earning revenue in term of
Brokerage. This was the main reason behind conducting this study.

- 95 -
 RESEARCH OBJECTIVE

The main objective of the study is to check the Investment pattern in Rajkot
city. Their potential market among the people of Rajkot City.

Some other secondary objectives are as under:

To know the awareness of Stock Trading.
To know the scope for the Sharekhan.
To know the investment habit of the people of Rajkot City.
To know the purpose of investing in Share Market.
To know the influencing force behind the decision making while at a time of
trading.
To find out the medium which is the best suitable for trading in stock market.
To Know the which medium is using for trading in Market in Rajkot City
.

- 96 -
 • SAMPLING DESIGN

Sampling design is one of the most important aspects. So in that Sample

design we have to look that whatever figure we take that can give truly and fact
figure. So where the design must be appropriate in order to have the desired result.
Sampling design includes various aspect and they are as follows:

• Sampling Area : Rajkot city

• Sample Population : 1000

• Sample Size : 200

RESEARCH DESIGN:

Data Source : Primary data

Research Method : Survey Method

Research Technique : Questionnaire

Type of Questionnaire : Structured

Type of Questions : Closed & Open ended

Questions

No of Questions : 11

Place : Rajkot city

- 97 -
 • Data Collection

The research is conducted with the help of questionnaire therefore the main
source of information is the response of the respondents and fill up the structured
questionnaire. This can be considered as a primary method of collecting the data.

• Limitations

In this Survey there few limitations which are as follow:

Personal Bias:

Individuals may have personal bias towards particular investment option so

they may not give correct information and due to which the conclusion may be
derived.

Sample Size:
The last limitation is Sample Size, which is of 1000 only; due to which we
may not get the proper results.

SOURCES OF DATA
Primary Data:

The data, which is collected directly from the respondents to the base of
knowledge and belief of the research, are called primary data.

So far as our research is concerned, primary data is the main source of

information. We have collected data through Questionnaire and information from
respondent.

- 98 -
 SAMPLING PROCESS

It is very true that it’s very difficult to do the research with the whole
universe. As we know that it is not feasible to go for population survey because of
the numerous customers and their scattered location. So for this purpose sample size
has to be determined well in advance and selection of sample also must be scientific
so that it represents the whole universe.

So far as our research is concerned, I have taken sample size of 200

respondents. We have selected Income Earners with savings to invest in Rajkot city.

All the respondents are stratified on the basis of their profession and savings.
We have selected the samples as per our convenience.

Sample universe Rajkot city

Sampling Technique Convenience
Sample size 300 respondents

Professional = convenience

Sampling Unit:
Busi Business Man = convenience
Government Employees = convenience
Employees working in private fir = convenience

- 99 -
 General information
 Gender

Male Female
164 36

18%

MALE
FEMALE

82%

Findings:
From the total 200 surveyed, there are 164 male and the remaining 36 are
female. So this means there are more male people who do invest in wither share
market or in any other place.

- 100 -
  Age Group

Below 30 30-50 Above 50

97 70 33

120

100
Respondents

80

60 Series1
97
40
70
20 33
0
BELOW 30 30 to 50 Above 50
Age Group

Findings:

The result of the question reveals that there more younger people who
believe that investment should be done and they doing it also regularly.

Because there are around 50% people below the 30 years age who are
doing investment. Between 30 – 50years, 35% i.e. 70 out of 200 are there so
ultimately this means that there are more younger people who do investment.

- 101 -
  Education

Under Graduate Graduate Post ate

32 107 61

16%
28%

Under Graduate
Graduate
Post Graduate

56%

Findings:

The result shows that more Graduate people as well as Post graduate
people interested in the investment in share market. If we see in the total of 200, out
of them 178 are graduate or post graduate. So this means that there is a wide scope
to increase their market share.

- 102 -
  Occupation

Non Govt.
Govt. Employee Employee Business man Professional
42 62 68 28

80
no of Candidate

70
60
50
40
30 62 68
Series1
20 28
10 22
0
e

an
ee

al
e

on
oy

m
oy

si
pl
pl

es
es
Em
m

of
.E

s in

pr
t.
t

Bu
ov

ov
G

G
n

Occupation
No

Findings:

Almost 20% people are Govt. Employee and then comes Non Govt.
Employee and there ratio is 30%. Out of the total while 35% people are doing their
own business and remaining are Professional people.

From the result we can say that same number of people are working with Pvt
firm or doing their own business. If we look at Pvt firms, there are giving higher pay
scale to their employee so overall picture gives the idea that there are enough people
ho can be convinced if given proper information about the stock market. In addition
to that Govt employee are having fixed income so their surplus amount will be
invested somewhere else so for sharekhan, this is a great chance to grab this
opportunity and make them convince.

- 103 -
Q.1 Do you invest Your surplus money in saving Instrument ?

Yes No
165 35

18%

Yes
No

82%

Findings:

There are nearly 80% people i.e. 165 out of 200 are regularly investing
in various investment options while remaining are not investing.

Recommendation:

As per the result we can say that company has a whole bunch of
people who believe that if they invest there money in any of the investment pattern,
it is going to grow so to these people if proper information is given to them about
the company product and also about share market they may invest in share market.

- 104 -
Q.2 If Yes, Where do you invest your savings?

Derivative Commodity
Bank F D P.O Insurance M.F Gold Equity s
118 92 69 60 41 86 29 35

Bank F.D.
35
29 118 Post office
schemes
86 Insurance

Mutual Fund
92
41
Gold
60 69
Equity

Derivative
Findings:
Comodity
There are various investment options available where most of the people are
investing in Bank FD and their number is 118 and next is 92 in post office. Bu there
may be people who may be investing in more than one place. There are less number
of people who invest their money in Gold, Derivative and Commodity and their
number is respectively 41,29 and 35.

Recommendation:

So from the results we can say there are people who invest their money in
fixed return instruments like FD and P.O savings and less in Equity or Mutual
Funds. But we all know that there is more return in equity as compared to other
investment instruments but the risk will be a little high. But overall if we see they
are the emerging markets and therefore there is a great scope of returns.

- 105 -
Q.3 With which company do you trade?

Share Motilal Anand Kotak HDFC ICICI

khan Oswal Marvadi 5 paisa Rathi Security Direct
74 49 66 36 22 54 31 80

80 74 Sharekhan
Motilal Auswal
Marvadi
31 49 5 Paisa
Anand Rathi
Kotak Securituy
69 HDFC
62
22 36 ICICI Direct

Findings:

This question was put in the questionnaire to know whether people are
knowing Sharekhan or not? The resulted figure showed that more people know
ICICI very well and than comes is the Sharekhan where 74 people know about it.
Kotak security is the next well-known company with 69 people knowing it out of
the total. While remaining companies in this – 5 Paisa, Motilal Oswal, HDFC and
Anand rathi.

Recommendation:

The recommendation can be given to the company is that although people are
knowing the company very well there are competitors of it who are also famous and
well known. So the company must continuously carry out activities which leads to

- 106 -
more awareness about the company as well as its products and also provide its
existing customer good services so that they remain with the company only.
Q.4 Which medium do you use to invest?

Broker Internet Dial nTrade

81 71 48

90
80
70
Respondents

60
50
Series1
40 81
71
30
48
20
10
0
Broker Internet Dial n Trade
Mediums

Findings:

There are many ways to carry out your transactions like through Broker,
Internet or Dial n Trade. But when asked to the respondents most of them are
interesting to do it with the broker i.e. 81 and 71 people opting for Internet and
remaining are with dial n trade.

Recommendation:

Whenever it comes to the sharemarket, Broker is the main person who

performs all the activites on behalf of the client and therefore most of the people
prefer it. Now a days Internet is the newer medium for trading but still people don’t
trust or do not know how to do transaction online but as Sharekhan is providing this
facility also, therefore it is a dual benefit for the company. Therefore the company
must also market its various services to the people and the benefits of it if they use.

- 107 -
Q.5 Which type of time period you like to invest?

Daily basis Delievery basis Short term Long term

62 50 36 52

70
60
Respondents

50 Series1
40
30 62
50 52
20 36
10
0
Daily Delevary Short Long
Basis Basis Term Term
Type of time period

Findings:

Whenever one wants to earn more money, it is the tendency that if it is

invested for a long time but still more number of people who invest their money on
a daily basis and next comes is for long time. In numbers it is around 62 for daily
basis and 52 for long-term basis.

Recommendation:

Everybody has their own choice and they follow it regularly. Someone
do not believe in long term and some believe only in that and therefore it depends
upon the company that how they approach their clients as well as potential
customers. If the proper guidance is given about the benefits of trading in different
horizons than one may change but overall as the company is providing its customers
the daily trading facility as well as for long term it does not make much difference.

- 108 -
Q.6 Which stock exchange would you prefer to carry out your transactions?

BSE NSE
121 79

40%
BSE
NSE
60%

Findings:

There is not much choice for the investor as there are mainly two main stock
exchanges where most of the trading happens. BSE is the most preferred exchange
with almost 60% is preferring it and remaining are with NSE.

Recommendation:

For the company who is providing facility to trade with any of the exchanges
it does not make any difference except some minor ones. So for Sharekhan it is an
advantage.

- 109 -
Q.7 Which factor plays crucial role when you make decision to invest your
money?

Risk reduction Leverage benefit Speculative Arbitrage benefit

motive
82 49 38 31

16%

40% Risk Reduction

Leverage Benefit
19%
Speculative Motive
Arbitrage Benefit

25%

Findings:

There are many factors, which comes to the mind whenever one wants to
invest like Risk, Returns or speculation. People are having the mentality of risk
reduction and it is around 40% and some are doing for speculative motive i.e. 20%.

Recommendation:
If one has to expand its business it is prime necessity for the company to
make their client understand the envt and various angels which helps to make the
decision much more easy. So some wants to have safety and some wants to have
return on within a shorter time period i.e with the help of speculation. But the
company must guide them in a proper manner so that their hard earned money grow
fast.

- 110 -
Q.8 According to you, which medium is the most reliable for trading in stock
market?

Stock broking company Franchises Broker

86 61 53

100
Respondents

80
60
86 Series1
40
61 53
20
0
Stock Franchises Broker
Broking
Company
Opening Account

Findings:

There are various ways to incest in stock market but which is the reliable one
and also people prefers can be known from this question. Where most of the people
rely on Well known stock broking company i.e. 63 people and 61 people rely on
local but known broking companies.

Recommendation:

Once again it depends on the company how it handles various people because
everybody has different mentality and different viewpoints and they are also correct
on their side. But it is always advisable to trade with well known companies because
there are other millions of people who are with them so this the company should
always tell to its clients.

- 111 -
Q.9 How do you take decision if you want to invest in stock market?

Independently Broker News News Adive Stock Business Internet

channel paper from broking Mazagine
Friends house
1 5 4 7 3 2 8 6

Independently

1
6 Broker
5

News Channels

4 News papers

8 Advice of Friends

Well Known Stock

Broking
7
2 Bussiness
3 Magazine
Internet

Findings:

Here the respondents were asked to rank various options according to

their preference and 1st preference is given to independent decision, next comes is
the advice from well known broking companies and then after broker (local).

Recommendation:

If the company wants to increase their customer base, the marketing of

the company’s products should be done in an effective manner so that more and
more people come to the broking firm for their investment.

It should also use news channel, newspaper and Internet medium for
their product marketing so that they have more scope of expanding their business.

- 112 -
Q.10 When you invest in commodity, which type of industry do you prefer?

Oil Metal Gold Other

59 48 71 22

80
respondents

60

40 71 Series1
59
48
20
22
0
Oil Metal Gold Other
Induatry

Findings:

Most of the people prefer to trade in Gold i.e. 71 out of 200. While 59
people prefer oil and 48 metal, remaining prefer other than these options.

Recommendation:

The comparative analysis of the various commodities can be done by

the company and overall benefit in terms of money can be presented to the client but
it should be done with great accuracy.

- 113 -
Q.11 In which type of market do you prefer to invest?

When it go up When it go down When its stable

97 61 42

100
Re
sp 80
on 60
97
de 40 61
nt 20 42 Series1
s 0
When it When it When it
Go Up Go Stable
Down
Market Situation

Findings:

This question was put in order to know the mentality of the people and
it shows that whenever the market goes up, they will invest at that time and when it
is stable, 62 people believe that it is the correct time to invest. While 61 believe
whenever it is down, we will invest.

Recommendation:

One can’t change the mentality of the people but if properly facts as
well as figures are shown to them they might change from its previous decision.
Because here the deep study is required and it is not possible for the client to do this
study so good advice can changer customers mindset.

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 LIMITATION

 Costumers may not be aware about typical Question regarding

investment.

 Rajkot is a big city and timing has been allotted is very less.

 Researcher didn’t have enough exoerience.

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 Conclusion

From the above finding and recommendation, the following are the
concluding points:

 There are sufficient numbers of people aware about share khan so this
is a good for the company that at least people are aware about the
company.

 Share khan is also providing all the services as well as facilities to trade
in almost all the exchanges, therefore the company has nothing to worry
in that matter.

 Share khan also has good network all over India and franchise offices
are also in good number, therefore it is also an advantage for the
company because customer can access their accounts from anywhere.

 Share khan has a good research team at its Head Office and the fact is
that the almost 75 to 80% advices of the total given is true and has
benefited the clint in achieving the profit.

 Last but not the least is the existing customer base of the company and
their level of faith in the company. So with the help of this customer
base, the company can expand its scope of the their businrss.

 One of the limitation is there that the company has lengthy process of
opening the account, so it should concentrate and make some corrective
measures to make that process easy and fast.

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 Investment pattern in Rajkot city
RESPONDENT’S PROFILE:

NAME:____________________________________________
GENDER: MALE: FEMALE: :

AGE GROUP: BELOW 30: 30-50:

ABOVE 50:

EDUCATION: under graduate

Graduate
Post graduate

OCCUPATION: Govt. Employee:

Non-Govt. Employee:
Business Man:
Professional:

Q.1 Do you invest Your surplus money in saving instrument?

YES: NO:

Q.2 If YES, Where do You invest Your savings?

Bank F.D.: Gold:
Post office schemes: Equity:
Insurance: Derivatives:
Mutual Fund: Commodities:
Other than specify:________

Q.3 with which company do you trading?

share khan anand rathi
motilal auswal kotak security
marvadi HDFC
5 paisa ICICI direct

Q.4 which mediums do you use to invest ?

Broker: Internet:
Magazine: dail n trade
Other than Specify:____________

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Q.5 Which type of time period you like to investment?
Daily basis short term
Delevary basis long term

Q.6 which stock exchange would you prefer to carry out your transaction?
BSE: NSE:

Q.7 Which factor plays crucial role when you make a decision to invest
money?

Risk Reduction: Speculative Motive:

Leverage Benefit: Arbitrage Benefit:

Q.8 According to You, Which medium is the most reliable for trading in
stock market ?
Stock Broking Company:
Franchises:
broker
Q.9 How do you take decisions if you want to trade in stock market?
(Give Rank according to you)

Independently Advice of Friends/colleagues

Broker/Agent’s advice Well-known Stock Broking Houses

News channels Business Magazines
Newspapers Internet

Q.10 when you invest in commodity, which type of industry do you

preferred?
Oil fmcg
Metal gold

If other specify__________________________

Q.11 in which type of market do you prefer at a time of investment?

When it go up
When it go down
When it stable

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 BIBLIOGRAPHY

BOOK
Marketing Management Phillip Kotler
Research Methodology Kooper
Human Resource Aswathapa
Production and Operation Adam & Abert

Magazine
Value Line
Eagle Eye
Business World
NSDL

Web Site

www.sharekhan.com
www.sski.com
www.bseindia.com
www.nseindia.com
www.moneybhai.com

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