Edelweiss

Introduction
Whether its retiring early, saving for childrens education, paying off a loan or to live a secured and satisfied life everyone has dreams they can achieve by investing their savings. Def of investing
the purchase of a financial product or other item of value with an expectation of favorable future returns.

However, the question that arises is that, should

one leave his money tucked away in the bank or plough it into the stock market where the potential for higher returns is greater but the chances of losing money is higher? Deciding where to invest depends on one`s attitude towards risk (one`s capacity to take risk and one`s tolerance towards risk) and the investment horizon and non -

availability of guaranteed-return investment products. In such a scenario, investing in equity, which offers returns that are h igher than the inflation rate, help to build wealth and to improve the standard of living. India is a developing economy .its prospering in all spheres. Share market is a compelling determinant of the economy and the financial situation of a country. Ever since the liberalization, privatization and globalization,the foreign investment in our country is booming. Share market is a clear indicator of the developing trend prevailing in our country.Statistics reveal that the trade volume has been increasing continuously,coupled with the ups and downs which is a nature of share trading. We are living in an interlinked

world.with the growing volume of trade,it has become a necessity that people are aware of the intricacies of the web world. SENSEX the benchmark indicator of share trading has more than tripled ever since on line share trading commenced.it has become imperative to be a participant of this mode of trading. Recently,the crisis in the financial market resulted in global inflation.the share market was a clear indicator of the prevailing prices. Share trading is a way of faster earning and losing money. In the recent years,a volatile market could be witnessed. In the desire to earn money in a quick manner,more and more people have ventured out into share trading. Lack of awareness of many investors have made them loose lakhs of money in the stock market. Wise plays by many others have made them earn in crores. Where the American NASDAQ is in the commanding position,hongkong,Tokyo etc are some of the asian exchanges being quoted repeatedly when it comes to news about the share market. SENSEX is not far behind.indian bourses are also often quoted. Electronic trading or online trading eliminates the need for physical trading floors.brokers can trade from their offices,using fully automated screen based processes. Their workstations are connected to a stock exchanges central computer via satellite using Very Small Aperture Terminus(VSATs). The orders placed by brokers reach the exchanges central computer and are matched electronically.

Stock exchange A stock exchange , share market or bourse is a corporation or mutual

organization which

provides facilities for stock brokers and traders , to trade also provide facilities capital

company stocks and other securities .Stock exchanges

for the issue redemption, as well as, other financial instruments and

events including the payment of income and dividends . The securities traded on a stock exchange include: shares issued by companies ,unit trusts and other pooled investment products and bonds .To be able to trade a security on a certain stock exchange, it has to be listed . Usually there is a central Location at least for recordkeeping, but trade is less and less linked to such a physical place, as modern markets are electronic networks, which gives them advantages of speed and cost of transactions. Trade on an exchange is by definition done in the primary market and subsequent trading is done in the secondary market. Supply and demand in stock markets is driven by various factors which, as in free markets, affect the price of stocks(see stock valuation).There is usually no compulsion to issue stock via the stock exchange itself, nor must stock be subsequently traded on the exchange. Such counter.This is the trading is said to be off exchange or over-the-

usually way that bonds are traded. Increasingly more and

more stock exchanges are part of a global market for securities. A.] The role of the stock exchange Raising capital for businessess The stock exchange provides companies with the facility to raise capital for expansion through selling shares to the investing public.

Mobilizing savings for investment When people draw their savings and invest in shares, it leads to a more rational allocation of resources because funds, which could have been consumed, or kept in idle deposits with banks are mobilized and redirected to promote business activity with benefits for several economic growth and higher productivity levels. Facilitate company growth Companies view acquisitions as an opportunity to expand product lines,

increase distribution channels, hedge against volatility, increase its market share, or acquire other necessary business assets. A takeover bid or a merger agreement through the stock market is one of the simplest and most common ways to company growing by acquisition or fusion. Redistribution of wealth By giving a wide spectrum of people a chance to buy shares and therefore become part-owners (shareholders) of profitable enterprises the stock market

helps to reduce large income inequalities .Both casual and professional stock investors through stock price rise and dividends get achance to share in the profits of promising business that were set up by other people. Corporate governanceBy having a wide and varied scope of owners , companies generally tend to improve on their demands of management standards and efficiency in order to satisfy the these shareholders and the more stringent rules for public

corporations by public stock exchange and the government . Consequently , it is alleged that public companies (companies that are owned by shareholders who are

members of the general public and trade shares on public exchange) tend to have better management records than privately-held companies (those companies

where shares are not publicly traded ,often owned by the company founders and / or their families and heirs , or otherwise by a small group of investors) . However , some well-documented cases are known where it is alleged that their has been considerable slippage in corporate governance on the part of some public companies . Creates investment opportunities for small investors As opposed to their businesses that require huge capital outlay , investing in shares is open to both the large and small stock investors because a person buys the number of shares they can afford . Therefore the Stock Exchange provides an extra source of income to small savers. Government raises capital for development projects Governments at various levels may decide to borrow money in order to finance infrastructure projects such as sewage and water treatment works or housing estates by selling another category of securities known as bonds .These bonds can be raised through the Stock Exchange whereby members of the public buy them , thus loaning money to the government . The issuance of such municipal bonds can obviate the need to directly tax the citizens in order to finance development , although by securing such bonds with the full faith and credit of the government instead of with collateral , the result is that the government must tax the citizens or otherwise raise additional funds to make any regular coupon payments and refund the principal when the bonds mature.

Barometer of the economy At the stock exchange , share prices rise and fall depending , largely , on market forces. Share prices rise tend to rise or remain stable when companies and the economy in general show signs of stability and growth .An economic recession , depression , or financial crisis could eventually lead to a stock market crash . Therefore the movement of the general tend in the economy .The listing requirements are the set of conditions imposed by a given stock exchange upon companies that want to be listed on that exchange .Such conditions sometimes include minimum number of shares outstanding , minimum market capitalization , and minimum annual income.

ABOUT EDELWEISS (atleast 10 pages) MY WORK AT EDELWEISS At EDELWEISS , initially we were imparted process and product knowledge. We were given sufficient time to know about the products and also about sales and distribution channel. We had to work with the sales representatives and think of ways of improving the sales and distribution channel and implementing them. The main aim was to increase sales and for this, different ways were tried and implemented. We were provided with database and had to make calls from the data. Company activity was also one of the major sources for generating business. Initially they even accompanied sales representatives to the clients place. Main objective was to know the need of the c ustomer and how to fulfill that in the best way.

The project dealt with various fields like: 1. Demat account 2. ESOP This experience helped me to understand the basic functioning of the EDELWEISS as a Broking House and I came to know the products of Edelweiss. The Training Sessions were held by different persons . We were assigned targets to sell the ESOP funding facility and Demat A/c of Edelweiss. The training for ESOP was conducted by Mr. Hiren Doshi from Edelweiss Broking Ltd. The training for Demat was conducted by _________of Reliance Money. These training gave me an insight into the products that Edelweiss deals in. The best learning experience was that I started from the very basics of getting to that position and not from the position itself. This helped me get useful insight and understanding of various financial products, the market details about them and the benefits provided by them to the customers. Our task was divided in 4 phases : 1. Product knowledge: This included the theoretical knowledge about the field and products which needed to be marketed. 2. Pitching in retail sector: This included the implementation of the knowledge imparted to us and the test of our marketing skills. Initially we were accompanied by other sales executive so that we can learn how to deal with the customers and understand their need. This also enhanced our interpersonal skills and confidence level. 3. Implementation in retail sector and pitching in corporate: By the start of this phase we were confident enough about the pitching and fulfilling the needs of the customer in the retail sector. This also included of the ways we should pitch the corporate.

4. Implementation at corporate levels: This included the implementation of the all the knowledge and ways learnt for the pitching and extracting business out of the corporate. With the end of 8 weeks every phase was completed and it gave us the real experience of retail as well as corporate world. COMPETITORS OF EDELWEISS. TRADING PORTAL Online trading refers to buying and selling of the

shares/stocks/contracts/bonds with the use of internet. In this shares are not issued in physical form rather they are transferred in the dematerialized form in the Demat account directly. DEMAT ACCOUNT In India, a Demat account , the abbreviation for dematerialized account , is a type of banking account which dematerializes paper based physical stock shares. The dematerialized account is used to avoid holding physical shares: the shares are bo ught and sold through a broker. This account is popular in India. The Securities and Exchange Board of India (SEBI) mandates a Demat account for share trading above 500 shares. As of April 2006, it became mandatory that any person holding a Demat account s hould posses a Permanent Account Number (PAN).

What are the benefits of opening a Demat account?

Demat account has become a necessity for all categories of investors for the following reasons/ benefits: SEBI has made it compulsory for trades in almost all scrips to be settled in Demat mode. Although, trades up to 500 shares can be settled in physical form, physical settlement is virtually not taking place for the apprehension of bad delivery on account of mismatch of signatures, forgery of signatures, fake certificates, etc. It is a safe and convenient way to hold securities compared to holding securities in physical form.. No stamp duty is levied on transfer of securities held in Demat form. Instantaneous transfer of securities enhances liquidity. It eliminates delays, thefts, interceptions and subsequent misuse of certificates. Change of name, address, registration of power of attorney, deletion of deceased's name, etc. - can be effected across companies by one single instruction to the DP. Each share is a market lot for the purpose of transactions - so no odd lot problem. Any number of securities can be transferred/delivered with one delivery order. Therefore, paperwork and signing of multiple transfer

forms is done away with. It facilitates taking advances against securities on low margin/low interest.

DEMAT ACCOUNT
There are many broking houses doing business in India and they charge a brokerage on every transaction made online or offline. (Buying and Selling are treated as separate transaction). Reliance Moneys advantage over others is that its charging the lowest brokerage in the market which is just 1 paisa on every executive trade irrespective of the volume traded. Reliance Money, the brokerage and distribution arm of Reliance ADA Group, aims to tap investors in the smaller towns and cities through a flat fee structure. The current leaders in the retail broking segment like ICICI Direct, India Infoline and Indiabulls offer a pay per use model wher e the customer pays a percentage of the amount transacted by him. Reliance Moneys brokerage rates are quite competitive. The new wonder is Reliance Money's pre -paid card for stock market brokerage. Reliance Money, the financial services division of Anil Dhirubhai Ambani Group-promoted Reliance Capital, is bringing to the market pre-paid cards in denominations of Rs500, Rs1000,Rs 2500,Rs 5000,Rs 10000. These cards would offer brokerage at one -third of the rate being charged by institutional and individual brokerage houses. Sample this. For a pre-paid card worth Rs500, an investor can trade up to Rs2 lakh in both non delivery and delivery option.

The Rs1000 worth pre-paid card, total trading limit would reach Rs 1 crore, of which Rs 90lakhs is for the non d elivery segment and Rs10 lakh for delivery-based activities. For Rs2500 pre-paid card, total trading limit is fixed at Rs3 crore,of which Rs2.70crore is for the non delivery option and Rs 30 lakhs for delivery option. For the Rs 5000 pre-paid card, the total trading limit is Rs 7 crore,out of which Rs 6.30crore is for non delivery option and Rs 70 lakhs for delivery option. For the Rs.10000 pre paid card,the total trading limit is Rs 20crore,out of which Rs 18 crore is for non delivery option and Rs 2 crore for delivery option.

Reliance Money offers most competitive brokerage rates - 0.01paise for intraday trades and 0.05paise for delivery trades. Target low level of retail penetration in India - less than 3 per cent of household financing savings makes it into equity markets Reliance Money consumers can trade in equities, commodities and offshore Investments , IPOs, Mutual Funds, Insurance, Money transfer and Money Changing - all through single window, both offline and online.

Reliance Money has already tied -up with CMC Capital Plc UK to offer offshore Investment products to Indian consumers as per guidelines.

RESEARCH METHEDOLOGY

Objective of research;

The main objective of this project is concerned with getting the opinion of people regarding demat account and other financial products, to target them and create awareness while with the generation of leads. I have tried to explore the general opinion about the products and services provided by Edelweiss.It also covers why/ why not investors are availing the services of financial advisors.

It is also shown that what are demat a/c, mutual funds and life insurance and how they work.

Scope of the study:

The research was carried out in Cuttack city only. I have visited people randomly nearby my locality, different shopping malls, small retailers etc. Data sources: Research is totally based on primary data. Secondary data can be used only for the reference. Research has been done by primary data collection, and primary data has been collected by interacting with various people. The secondary data has been collected through various journals and websites. Sampling: Sampling procedure: The sample is selected in a random way, irrespective of them being investor or not or availing the services or not. It was collected through mails and personal visits to the known persons, by formal and informal talks and through filling up the questionnaire prepared. Sample size: The sample size of my project is limited to 100 only. Sample design: Data has been presented with the help of pie charts. 1. Preference of Investment

Fig.1

Result

of

Preference

of

Investment Interpretation: This shows that although the mutual funds market is on the rise yet, the most favored investment continues to be in the Share Market. So, with a more transparent system, investment in the Stock Market can definitely be increased. 1. Awareness on Online Share Trading

Fig. 2 Result of Awareness of Online Share Trading

Interpretation: With the increase in cyber education, the awareness towards online share trading has increased by leaps and bounds. This awareness is expected to increase further with the increase in Internet education. 1. Preference of investing in stock market

35%

High returns and high risk

45%

Tax Benefits Short term gain from investment

20%

INTERPRETATION: The study shows that most of the people prefer to invest in stock market because of high risk and high return whereas some other try to capture the short term gain from investment. But a very few section of people invest because of the benefits they gain in tax.

4. Awareness of Edelweiss as a Brand

Fig.3 Result of Awareness of Edelweiss as a Brand

Interpretation: This pie-chart shows that Edelweiss has a reasonable amount of Brand awareness in terms of a premier Retail stock broking company. This brand image should be further leveraged by the company to increase its market share over its competitors. . Awareness of Edelweiss Facilities

Fig .4 Result of Awareness of Edelweiss Facilities Interpretation: Although there is sufficiently high brand equity among the target audience yet, it is to be noted that the customers are not aware of the facilities provided by the company meaning thereby, that, the company should concentrate more towards promotional tools and increase its focus on product awareness rather than brand awareness.