A Project Study Report On INDIABULLS Titled

“A COMPARATIVE STUDY OF INDIABULLS WITH ITS COMPETITORS”

Submitted in partial fulfillment for the Award of degree of Master of Business Administration

SUBMITTED BY: KHUSHBU DADHICH MBA IV SEM

SUBMITTED TO:DR. SHEHNAZ (PRINCIPAL)

2009-2011

Akashdeep Institute of Management & Technology, Jaipur

DECLARATION

I,Khushbu Dadhich Hereby declare that this project report is the record of authentic work carried out by me during the period of 15 days and has not been submitted earlier to any University or institute for the award of degree/diploma etc.

Name of the student: Date :

Khushbu Dadhich

PROJECT GUIDE CERTIFICATE
This is to certify that project report entitled
“A COMPEITIVE STUDY OF INDIABULLS WITH ITS COMPETITORS” Submitted towards the partial fulfillment of the requirement for the Degree of

MASTER OF BUSINESS ADMINISTRATION

TO
AKASHDEEP INSTITUTE OF MANAGEMENT & TECHNOLOGY

Affiliated to RAJASTHAN TECHNICAL UNIVERSITY OF KOTA Is a record of perfect programme carried out by ROLL NO. 09MAKXX613 Under my supervision and guidance. To the best of my knowledge and belief the represented report Has not been submitted earlier. The work done by him has found Satisfactory I wish his great success in his career.
Mr. Dakshit Patel (Project Guide)

‖ The microstructure of the stock market in which brokers work is highly dynamic and volatile. these broker systems are quite large and complicated by themselves. Because Stockbrokers are one of the main participants in stock exchanges worldwide. Many stocks are available to be bought and sold. Thus. growth. As a consequence. They also act as advisors. providing suggestions to their clients on what stocks to buy and sell. it is an extremely arduous task for a broker to investigate aspects of the stock market and consistently provide effective advice to their clients. and their subsidiaries. they often act as an agent for their clients. Such a system should provide tools for interacting with exchanges and performing analysis. products. brokers perform their day-to-day tasks with the aid of a broker system. This research aims is to analysis Stock broker on the basis of their services.Preface ―A good broker system must be able to cope with an extremely complex and dynamic environment. making trades on their behalf. . With so many options and considerations that need to be taken into account. each exhibiting its own patterns and characteristics that are highly unpredictable.

Dakshit Patel for guiding me right form the inception till the successful completion of the project. I would also like to thank the supporting staff of sales and distribution Department. critical reviews of project and the report and above all the moral support he had provided to me with all stages of this project. I sincerely acknowledge her them for extending their valuable guidance. (Signature) KHUSHBU DADHICH .Acknowledgement I express my sincere thanks to my project guide. support for literature. Mr. for their help and cooperation throughout our project.

suggesting strategies to Indiabulls regarding marketing of demat and trading a/c. finding potential customers for Indiabulls. even a common or a small investor gets an opportunity to avail the service at an affordable price which is much lesser than what is charged by a physical broker over the phone. buying and selling of shares has become a much faster and even process than trading with the assistance of a physical broker. The prerequisites of Internet trading are a computer. increase the client base of the company by targeting new clients for Indiabulls. a bank a/c and depository account. if one wants to invest in stock market. The basic objective of study is to understand the various concepts of Demat. broker. A broker generally gives such importance and additional service only to high net worth customers. and study the factors affecting consumer behavior while taking decision before investing in Equities and Derivative market. This helps to get rid of the painstaking procedure of investing in stock exchange. Online trading has given customer a real time access to account information. But the introduction of Internet trading. Today. he has to contact a broker on phone or meet him personally to place order. The scope of the study is to analyze the awareness level of . there knowledge about security market. ebroking and analyzing the investment pattern of individual. stock exchange and depository participants. stock quotes elaborated market research and interactive trading. registration with broker. It provides for the assimilation of bank.EXECUTIVE SUMMARY The commencement of E-broking and Demat has transformed the capital market in India. With the help of them today. a modem and a telephone connection.

The data collection includes primary as wel as secondary sources like company brochures. primary data would be collected by way of meeting some key people belonging to the concerned industries. The method used in study would be a mix of exploratory and descriptive type that would provide help to investors and corporate houses related to these industries. A survey would be conducted so as to acquire the views of the investors regarding their investment preferences and to extract the factors that the investors consider in an investment before putting in their money. the importance of investment based on the advice from the broker. The various data collected would be analyzed through way of bar charts. the data collected pertains to the sample behavior which may not be consistent with time. it involves investors chosen at random which may not be the true representative of the population. especially Indian Private Banks in the industry. news paper articles. personal analysis of the offer document. . etc.customes and investment pattern of various individuals and examining the peer group companies proving Demat services . existence of strong competitors. dominance of nationalized banks in India. lack of awareness among investors about the products and services. Also. Hence cannot be generalized. journals. This study will help to know the decisions taken by small investors while investing in equity primary markets. confidence pertaining to electronic trading and using analysts’ recommendations in investment decisions and the extent to which they consider online trading as reliable. The major limitation of the study is the time and resource constraints. the internet.Industry analysis. tabular data and pie charts.

Introduction to the Organization 3.3 Objective of Study 3.6 Scope of Study 1 2 3 4 5 9 38 75 77 77 77 77 78 79 . Research Methodology 3.5 Sample Size and method of selecting sample 3.1 Title of the Study 3.2 Duration of the Project 3. Introduction to the Industry 2.4 Type of Research 3.CONTENTS Cover Page Certificate from the Company/Organization Preface/Prelude Acknowledgement Executive Summary Contents 1.

3.7 Limitation of Study 80 .

Bibliography 10. Analysis and Interpretation 6. Facts and Findings 5. Recommendation and Suggestions 9.4. Conclusion 8. SWOT 7. Appendix 81 90 104 112 114 119 120 .

1 INTRODUCTION OF INDIAN RETAIL BROKERAGE INDUSTRY .

demand and supply for a particular stock). buyers will have to bid a higher price for this stock to match the ask price from the seller which will increase the stock price of ABC Co. Ltd. less supply). In earlier times. high supply and low demand) for the stock of ABC Co. Ltd.e. high demand) and very few people will want to sell this stock at current market price (i. ABC Co. More and more people would want to buy this stock (i. in the market. enjoys high investor confidence and there is an anticipation of an upward movement in its stock price. if there are more sellers than buyers (i. Let us take an example for a better understanding of how market forces determine stock prices. and can trade freely from their home or office over the phone or through Internet.e. The price at which each buying and selling transaction takes is determined by the market forces (i. Therefore. buyers and sellers used to assemble at stock exchanges to make a transaction but now with the dawn of IT. most of the operations are done electronically and the stock markets have become almost paperless.e. its price will fall down.e. .INTRODUCTION OF INDIAN STOCK MARKET Introduction Stock markets refer to a market place where investors can buy and sell stocks. Ltd. On the contrary. Now investors do not have to gather at the Exchanges.

Bank of Bombay Share which had touched Rs. 1875 "The Native Share and Stock Brokers' Association" (also known as "The Bombay Stock Exchange") was established in Bombay 1880's Development of cotton mills industry and set up of many others . 87) Pre-Independance Scenario .Establishment of Different Stock Exchanges 1874 With the rapidly developing share trading business. Trading list by the end of 1839 got broader 1840's 1850's Recognition from banks and merchants to about half a dozen brokers Rapid development of commercial enterprise saw brokerage business attracting more people into the business 1860's 1860-61 The number of brokers increased to 60 The American Civil War broke out which caused a stoppage of cotton supply from United States of America. busuness in its loan securities gained full momentum. 2850 could only be sold at Rs. marking the beginning of the "Share Mania" in India 1862-63 1865 The number of brokers increased to about 200 to 250 A disastrous slump began at the end of the American Civil War (as an example. brokers used to gather at a street (now well known as "Dalal Street") for the purpose of transacting business.History of the Indian Stock Market .The Origin One of the oldest stock markets in Asia. the Indian Stock Markets have a 200 years old history 18th Century 1830's East India Company was the dominant institution and by end of the century. Business on corporate stocks and shares in Bank and Cotton presses started in Bombay.

Bnagalore Stock Exchange Limited was registered in 1957 and got recognition only by 1963.1894 Establishment of "The Ahmedabad Share and Stock Brokers' Association" 1880 90's 1908 1920 Sharp increase in share prices of jute industries in 1870's was followed by a boom in tea stocks and coal "The Calcutta Stock Exchange Association" was formed Madras witnessed boom and business at "The Madras Stock Exchange" was transacted with 100 brokers. number of brokers came down to 3 and the Exchange was closed down 1934 1936 1937 Establishment of the Lahore Stock Exchange Merger of the Lahoe Stock Exchange with the Punjab Stock Exchange Re-organisation and set up of the Madras Stock Exchange Limited (Pvt. .) Limited led by improvement in stock market activities in South India with establishment of new textile mills and plantation companies 1940 Uttar Pradesh Stock Exchange Limited and Nagpur Stock Exchange Limited was established 1944 1947 Establishment of "The Hyderabad Stock Exchange Limited" "Delhi Stock and Share Brokers' Association Limited" and "The Delhi Stocks and Shares Exchange Limited" were established and later on merged into "The Delhi Stock Exchange Association Limited" POST INDEPENDANCE SCENARIO The depression witnessed after the Independance led to closure of a lot of exchanges in the country. 1923 When recession followed. Lahore Estock Exchange was closed down after the partition of India. and later on merged with the Delhi Stock Exchange.

Indore Many more stock exchanges were established during 1980's. Bombay 2. Delhi 6. The Exchanges that were recognized under the Act were: 1. Hyderabad 7. 1956. 1985) Magadh Stock Exchange Association (at Patna. . Calcutta 3. 1989) Vadodara Stock Exchange Limited (at Baroda.Most of the other Exchanges were in a miserable state till 1957 when they applied for recognition under Securities Contracts (Regulations) Act. there are twenty one recognized stock exchanges in India which does not include the Over The Counter Exchange of India Limited (OTCEI) and the National Stock Exchange of India Limited (NSEIL). Bangalore 8. Madras 4. Ahmedabad 5. 1990) Coimbatore Stock Exchange Meerut Stock Exchange At present. namely:              Cochin Stock Exchange (1980) Uttar Pradesh Stock Exchange Association Limited (at Kanpur. 1986) Jaipur Stock Exchange Limited (1989) Bhubaneswar Stock Exchange Association Limited (1989) Saurashtra Kutch Stock Exchange Limited (at Rajkot. 1982) Pune Stock Exchange Limited (1982) Ludhiana Stock Exchange Association Limited (1983) Gauhati Stock Exchange Limited (1984) Kanara Stock Exchange Limited (at Mangalore.

They are divided into two categories: Listed securities of public limited companies Specified securities (Forward listed) Non-Specified securities (Cash listed) Equity share of company that are Dividend paying  Growth oriented companies  Paid up capital at least Rs. .000 share holders Equity share of companies not covered in specified securities. 50 million  Market capitalization at least Rs.Trading Pattern of the Indian Stock Market Indian Stock Exchanges allow trading of securities of only those public limited companies that are listed on the Exchange(s). 100 million  Has more than 20.

The overall period should not exceed 90 days from the date of contract. . Act as a trader or dealer as a principal. Buy and sell securities on his own account and risk.  Transactions in which delivery and payment can be extended by further period of 14 days each.  Indian stock exchange allows a member broker to perform following activities:     Act as an agent.Types of Transactions The flowchart below describes the types of transactions that can be carried out on the Indian stock exchanges: Transaction on Indian stock exchange Spot delivery transaction Forward transaction  Include transaction that requires Delivery and delivery within stipulated time period at the time of entering into the contract.   The period shall not be more than 14 days following the date of the contract. Transaction permitted only in case of specified share. Buy and sell securities for his clients and charge commission for the same.

Industrial Credit and Investment Corporation of India. debt market operations involve institutional investors and corporate bodies entering into transactions of high value in financial instrumets like treasury bills. Trading at NSE      Fully automated screen-based trading mechanism Strictly follows the principle of an order-driven market Trading members are linked through a communication network This network allows them to execute trade from their offices The prices at which the buyer and seller are willing to transact will appear on the screen   When the prices match the transaction will be completed A confirmation slip will be printed at the office of the trading member .NATIONAL STOCK EXCHANGE- In order to lift the Indian stock market trading system on par with the international standards. namely: 1. Capital market Wholesale Debt Market . selected commercial banks and others. the National Stock Exchange was incorporated in 1992 by Industrial Development Bank of India. government securities. commercial papers etc. Industrial Finance Corporation of India. Wholesale debt market 2. all Insurance Corporations. On the basis of the recommendations of high powered Pherwani Committee. NSE provides exposure to investors in two types of markets.Similar to money market operations.

 The broker will give instruction to its DP to debit his account and credit investor's account who has bough the shares. which is convenient way of receiving shares as giving Receipt Instruction every time. The difference lies in the process of settlement of shares i.  Investor will give 'Receipt Instruction to DP for receiving credit by filling appropriate form. However one can also give standing instruction for credit account. of securities in his that will obviate the need of In case of sale:- . delivery (in case of sale) and receipt (in case of purchase) of securities. Following procedure is followed for settlement: In case of purchase: The broker will receive the securities in his account on the payout day from the clearing corporation of the stock exchange.Advantages of trading at NSE   Integrated network for trading in stock market of India Fully automated screen based system that provides higher degree of transparency   Investors can transact from any part of the country at uniform prices Greater functional efficiency supported by totally computerized network TRADING AND SETTLEMENT The procedure for buying and selling dematerialised securities is similar to the procedure for buying and selling physical securities.e.

Such instruction should reach the DP’s office at least 24 hours before the pay-in as other wise DP will accept the instruction only at the investor’s risk. The broker would then transfer the shares to the clearing corporation of the exchange where shares have been sold. ICICIDirect. personally or through telephones. There was initial delay in laying down specifications for creating Closed User Groups (CUGs).. some issues like location constrains. Online trading refers to buying and selling securities via the Internet or other electronic means such as wireless access. ABOUT ONLINE TRADING Traditionally stock trading is done through stock brokers. motilaloswal. new Investor can trade shares through a website without any manual intervention from Stock Broker.com came into being. busy phone lines. touch-tone telephones.The investor will give delivery instruction to DP to debit his account and credit the broker’s account with correct ISIN of the number of securities sold by him. .com. The issue was resolved between the DoT and the Finance Ministry around 1998 and soon trade portals like India bulls sec. DP will debit his account and credit the account of the broker through whom shares have been sold. and smartjones. As number of people trading in stock market increase enormously in last few years. miss communication etc start growing in stock broker offices. Online Stock Market Trading is an internet based stock trading facility.com. HISTORY OF ONLINE TRADING Indian exchanges and brokering houses have been slow to move their transactions online. This has been mainly due to Government regulations. Information technology (Stock Market Software) helps stock brokers in solving these problems with Online Stock Trading. and other technologies. ltd.

own and to sell and must be matched by swift transaction processes.the day trader investor who is impulse to buy.Though the spread of internet has been slow in India. Given the suitability of the product and rising demand of internet there is no surprise that E-broking is picking up fast captivated the imagination of the consumer and created a new breed of investor. . the players are catching f a s t a t l e a s t i n t h e o n l i n e t r a d i n g b u s i n e s s .

These kind of trading terminals are used by high volume intraday equity traders. .You cannot trade if you are not on the computer where you have installed trading terminal software. Advantages  Orders directly send to stock exchanges rather than stock broker. alerts. stock market news etc. live data. 1.  It provides almost each and every information which is required to a trader on a single screen including stock market charts. Installable software based Stock Trading Terminals This trading environment requires software to be installed on investor’s computer. This software is provided by the stock broker.Two different type of trading environments available for online equity trading.  These trading terminals are not easily available for low volume share traders. Disadvantages  Location constrains . This makes order execution very fast.  It requires high speed internet connection.

 . demat account balance and bank account balance at any time. graphs and recommendations to do analysis of stocks.  Set alert to inform you certain activity on the stock through email or sms.  Provide online tools like market watch. Disadvantages of Online Stock Trading (Website based)  Website performance .sometime the website is too slow or not enough user friendly. Web (Internet) based trading application These kind of trading environment doesn't require any additional software installation. Advantages of Online Stock Trading (Website based)  Real time stock trading without calling or visiting broker's office.  Check the trading history.  Place offline orders for buying or selling stock. They are like other internet websites which investor can access from around the world through normal internet connection. Little long learning curve especially for people who don’t know much about computer and internet.2.

. to handle growing volumes and to support nationwide expansion plans of market activity. These are:    Investor protection Creation of fair and efficient market Reduce risk of systematic risk three fundamental objectives of o Real time streaming quotes o Instant trade execution and order confirmation Benefits from the online trading are so much day by day numbers of clients prefer online trading and also revenue coming from online trading is increasing at tremendous speed. o regulation can be easily achieved. o Through internet trading SEBI.BENEFITS OF ONLINE TRADING Internet trading is expected to: o Increase transparency in the market o Provide management information system (MIS) o Introduce flexibility in the system.

The broker accepts and executes the order And places it with the exchange. The broker makes the payment either Directly via the clients bank account or indirectly via broker The exchange receives the money and Completes the settlement. The exchange accepts the order after Checking the share limit for the day.ONLINE TRADING PROCESS The various transactions involved in online trading can be shown from the point of view of the    Client Broker Stock Exchange The client places an order via the net by logging onto his Broker’s site. . The client is intimated about the settlement either Through demat account or through e-mail.

More commonly. the share of the top 10 brokers has risen to only around one-fourth of the total industry revenues. A broker. apart from many small players. In some cases. or the brokerage firm completes any necessary legal paperwork. Some stockowners give their brokers power of attorney to make decisions about when to buy or sell stock and depend upon their brokers for researching new stock for purchase. This type of brokerage firm usually assesses a fairly large fee. depending on the degree to which the brokerage is involved in decisions about purchase.INTRODUCTION OF INDIAN RETAIL BROKERAGE MARKET Overview of brokerage firm A brokerage is a firm that acts as an intermediary between a purchaser and a seller. the brokerage may collect a portion of the money obtained. Sharekhan. a single person. Since the buyer and seller are employing the brokerage to complete the deal. Kotak Securities. 26 . obtains the appropriate signatures. Fees are variable. leading players like ICICI Direct. Brokerage firms are most commonly thought of in relationship to the sale and purchase of stock shares. a brokerage receives money from both parties. To broker a deal is to communicate with both the buyer and seller as to acceptable price on anything sold or purchased. Though the Indian brokerage industry has been consolidating steadily over the last 10 years. compete on the basis of low brokerage fees and customer service. and 5 Paisa. In others. a brokerage is referred to as a brokerage firm. and collects money from the purchaser to give to the seller. the brokerage receives a commission only from the seller. the firm is paid. In this fragmented market. Indiabulls. and regardless of whether the owner loses or earns money.

and declining brokerage fees. and similar financial instruments) on a commission or transaction fee basis. INDUSTRY DEFINITION AND SEGMENTATION The Indian retail brokerage industry consists of companies that primarily act as agents for the buying and selling of securities (e. The major growth drivers of the Indian retail brokerage industry are the increasing appetite for equities among investors as an asset class. and paperless securities  Centralized operations. Standard Chartered. BNP Paribas. changing hands from the listed company to the investors. which is enabled by telecom connectivity and low costs  Increasing access to capital and the ability to provide margin finance. the convenience of online trading. and Macquarie Bank (Australia) are eyeing stakes in Indian retail brokerages. and control on large interconnected operations spanning multiple locations. shares. acquire capital by offering their stocks to investors who supply the capital. foreign banks such as Société Générale (SocGen). the issuers of stocks. electronic matching.Buoyed by the bullish Indian stock market. stocks. It has two main interdependent segments: Primary market and the Secondary market. In other words primary market is that part of the capital 27 . It refers to the process through which the companies. effective risk management. The major growth drivers for brokerage revenue and trading volume are:   Continuous fall in brokerage fees Adoption of technology — screen-based trading.g. primary market The primary market is an intermittent and discrete market where the initially listed shares are traded first time.

125. which is equipped and organized with a place. this sale is called an initial public offering (IPO). represents the form of fractional ownership in a business venture. a 2:3 rights issue at Rs. and the exchanges. commonly referred to as ordinary share. secondary market The secondary market is an on-going market. in accordance with the rules and regulations established by the exchanges. though it can be found in the prospectus. For e. In the case of a new stock issue. This is typically done through a syndicate of securities dealers.g. 28 . Companies. facilities and other resources required for trading securities after their initial offering. It refers to a specific place where securities transaction among many and unspecified persons is carried out through intermediation of the securities firms. a specialized trading organization. Rights Issue/ Rights Shares: The issue of new securities to existing shareholders at a ratio to those already held.markets that deals with the issuance of new securities. 125 per share. a licensed broker. governments or public sector institutions can obtain funding through the sale of a new stock or bond issue. i. Dealers earn a commission that is built into the price of the security offering. Products dealt in the Secondary Markets Following are the main financial products/instruments dealt in the Secondary market which may be divided broadly into Shares and Bonds: Shares: Equity Shares: An equity share. at a price.. would entitle a shareholder to receive 2 shares for every 3 shares held at a price of Rs.e. The process of selling new issues to investors is called underwriting.

But in the event of liquidation. All arrears of preference dividend have to be paid out before paying dividend on equity shares. if not paid.their claims rank below the claims of the company’s creditors. bondholders/debenture holders. After a specified date. Cumulative Preference Shares: A type of preference shares on which dividend accumulates if remained unpaid. Preference shares: Owners of these kinds of shares are entitled to a fixed dividend or dividend calculated at a fixed rate to be paid regularly before dividend can be paid in respect of equity share. these shares will be converted into equity capital of the company. Discount brokerage firms have lower commission costs than full service brokerage firms. Since these firms offer multiple services. their fees are also higher. TYPE OF BROKERAGE FIRM  Full service brokerage firm offers advice on investment strategies. They also enjoy priority over the equity shareholders in payment of surplus. 29 .  Discount brokerage firm is ideal for someone who is an experienced trader who makes his or her own decisions.  An introducing brokerage firm is one that specializes in futures markets and buy or sell orders on commodities exchanges through established firms that are clearing members of exchanges. Cumulative Convertible Preference Shares: A type of preference shares where the dividend payable on the same accumulates.Bonus Shares: Shares issued by the companies to their shareholders free of cost based on the number of shares the shareholder owns. research and news.

Emkay 11. Ethical investment solution pvt. Indiabull securities ltd. Dalmia securities 10. 16. Ltd. Indus invest 19.7 billion by 2015. Investmentor 20. Indianstockmarket. 9. Icici direct 14.1 billion in 2005. Name of Indian brokerage firm 1. and is expected to reach US$6535. Investment research & information services ltd. The total trading volume of brokerage companies has increased from US$1239. Ltd. Dala and broacha stcok broking pvt. Indiara securities 18.1 billion in 2004 to US$1492. 6. Advani share brokers 4. IT&LS investsmart 15. Reliance money 2. Geojit financial services limited 13.part of angel group 7. (IRIS) 21. Arcade share and stock broker 8. Agroy 5.Market Size The Indian retail brokerage market is showing phenomenal growth. Japyee capital services 22. Angel trade. Anand rathi securities ltd. 5paisa. Khandwala securities limited 30 .net 17. 12.com 3.

the firms have started offering various investment related value added services. Religare securities Ltd. the core trading activity is still the predominant form of business. Pratibhuti 31. Toss financial services Pvt. Additionally. Networth stock broking ltd. Sivan securities 34. Mangal keshav 26. 33.23. 35. 31 . Company research is another lucrative area where the broking firms offer their services. a host of other value added services such as fundamental and technical analysis. more than 33% of the firms are engaged in providing company research services. apart from trading. company research etc. Mumbaibull. KRchoksey 24. RBK share brokers 32. LKP 25. 67% firms are engaged in offering IPO related services. The broking industry seems to have capitalised on the growth of the mutual fund industry. mutual funds. The sustained growth of the economy in the past couple of years has resulted in broking firms offering many diversified services related to IPOs. The average growth in assets under management in the last two years is almost 48%. UTI securities PRODUCT OFFERED BY BROKERAGE FIRM In the past couple of years. arbitrage etc are offered by the firms at different levels. 29. which was pegged at 40% in 2006. More than 50% of the broking houses deal in mutual fund investment services.com 28. However. Motilal oswal 27. investment banking. Orient capital market 30. Ltd. forming 90% of the firms in the india.

the range of products and services will widen further. In the background of growing opportunities for Investors to invest in India as also abroad.MAJOR DEVELOPMENTS IN EQUITY BROKERAGE INDUSTRY IN INDIA i) Corporate memberships There is a growing surge of corporate memberships (92% in NSE and 75% in BSE). and some even go to the extent of creating niche services such as a brokerage firm offering art advisory services. With proliferation of new markets and products. In the offing will be interesting opportunities that might arise in the exchange enabled corporate bond trading. 32 . offers portfolio management services. most probably commodities futures. Memberships range from cash market to derivatives to commodities and a few broking firms are making forays into obtaining memberships in exchanges outside the country subject to their availability and eligibility. soon after its commencement and futures trading that might be introduced in the near future in the areas of interest rates and Indian currency. A typical brokerage firm today offers trading in equities and derivatives. consumptions and other related loans. exchange traded funds. distributes mutual funds and insurance and also offers personal loans for housing. corporate nature of the memberships is enabling broking firms to expand the realm of their operations into other exchanges as also other product offerings. and the scope of functioning of the brokerage firms has transformed from that of being a family run business to that of professional organised function that lays greater emphasis on observance of market principles and best practices. ii) Wider product offerings The product offerings of brokerage firms today go much beyond the traditional trading of equities.

iv) Accessing equity capital markets Access to reliable financial resources has been one of the major constraints faced by the equity brokerage industry in India since long. Foreign firms picked up stake in some of the leading brokerage firms. important opportunity to access capital markets for resource mobilization has become available. which might lead to creating of greater interest in investing in brokerage firms by entities in India and abroad. 33 . brokerage firms face limitations in raising financial resources for business and expansion. With buoyancy of the stock markets and the rising prospects of several well organized broking firms. market tips to becoming extensively research oriented and governed by fundamentals and technical factors. Vast progress has been made in developing company research and refining methods in technical and fundamental analysis. paving the way for stronger brokerage entities and possible scope for consolidation in the future. v) Foreign collaborations and joint ventures The way the brokerage industry is run and the manner in which several of them pursued growth and development attracted foreign financial institutions and investment banks to buy stakes in domestic brokerage firms. Since the banking system is not fully integrated with the securities markets. The research and advice are made online giving ready and real time access to market research for investors and clients.iii) Greater reliance on research Client advising in India has graduated from personal insights. The recent past witnessed several leading brokerage firms accessing capital markets for financial resources with success. thus making research important brand equity for the brokerage firms.

Brokerage firms now have a compliance officer who is responsible for all compliance related aspects and for interacting with clients and other stake holders on aspects of regulation and compliance. and providing complete range of research and other support to back up this function. Emergence of online broking enabled reduction in transaction costs and costs of trading. Some others have dedicated online broking portals. viii) Compliance oriented With stringent regulatory norms in operation. arbitrage trading. Many brokerage firms are investing time.vi) Specialised services/niche broking While supermarkets approach are adopted in general by broking firms. A wide range of incentives are being created and offered by online brokerage firms to attract larger number of clients. there are some which are creating niche services that attract a particular client group such as day traders. with some of these offering trading services at the cost of a few basis points or costs which are fixed in nature irrespective of the volume of trading conducted. 34 . Keen competition has emerged in online broking services. money and resources to create efficient and effective compliance and reporting systems that will help them in avoiding costly mistakes and possible market abuses. broking industry is giving greater emphasis on regulatory compliance and observance of market principles and codes of conduct. investing in small cap stocks etc. vii) Online broking Several brokers are extending benefits of online trading through creation of separate windows.

economic and financial forecasting and company research. Moreover. x) From owners to traders A fundamental change that has taken place in the equity brokerage industry.ix) Focus on training and skill sets Brokerage firms are giving importance and significance to aspects such as training on skill sets that could prove to be beneficial in the long run. it is mandated for certain types of dealers/brokers to seek specific certification and examinations that will make them eligible to carry business or trade. it becomes imperative for the broking firms to keep their staff continuously updated with latest development in practices and procedures. Demutualization is providing balanced welfare gains to both the stock exchanges and the members with the former being able to run as corporations and the latter being able to avoid conflict of interests that sometimes came as a major deterrent for the long term growth of the industry. valuations. which is a global trend as well. 35 . is the transformation of broking from owners of the stock exchange to traders of the stock market. With the nature of markets and products becoming more complex. Greater emphasis on aspects such as research and analysis is giving scope for indepth training and skills sets on topics such as trading programs. Demutualization and corporatisation of stock exchanges bifurcated the ownership and trading rights with brokers vested only with the later and ownership being widely distributed.

Current requirements stipulation capital adequacy in regard to trading exposure. ii) Capital Adequacy Capital adequacy has emerged as an important determinant that governs the scope of business in the financial sector. it becomes imperative for the brokerage firms to focus on raising capital resources that will enable to give continuous thrust and focus on business growth. but in future more tighter norms of capital adequacy might come into force as a part of the prudential norms in the financial sector. i) Fragmentation Indian brokerage industry is highly fragmented. changes could be rapid and so as the challenges that emerge from time to time. Numerous small firms operate in this space. In this background. as also opportunities for investing abroad. Given the growing importance of technology in operations and increasing emphasis on regulatory compliance. Keeping abreast with developments in international markets as also familiarization with global standards in broking operations and assimilating 36 . smaller firms might find it constrained to make right type of investments that will help in business growth and promotion of investor interests.EMERGING CHALLENGES AND OUTLOOK FOR THE BROKERAGE INDUSTRY Brokerage firms in India made much progress in pursuing growth and building professionalism in operations. A brief description on some of the prospects and challenges of the brokerage firms are discussed below. Given the nature of the brokerage industry being very dynamic. iii) Global Opportunities Broking in the future will increasingly become international in character with the stock markets being open for domestic and international investors including institutions and individuals.

if they are well prepared. Global firms with higher levels of capital. expertise and market experience will bring dramatic changes in the brokerage industry space which the local firms should be able to absorb and compete. South Asian economic integration will provide greater opportunities for broking firms in India to pursue cross border business.major practices and procedures will become relevant for the domestic brokerage firms. distribution of insurance products. in the last three to four years. vi) Competition from foreign firms Surging markets and growing opportunities will attract a number of international firms that will increase the pace of competition. wealth management. which could benefit the domestic brokerage firms. brokerage firms had newer opportunities in the form of commodities futures. broking firms will have an opportunity to introduce a wider number of products. mutual funds etc. iv) Opportunities from regional finance Regional economic integration such as that under the European Union and the ASEAN have greatly benefited businesses in the individual countries with cross border opportunities that helped to expand the scope and significance of the business. it would be easier to make progress in this regard. In view of several of common features prevailing in the markets. For instance. v) Product Dynamics As domestic finance matures and greater flow of cross border flows continue. Initial measures to promote South Asian economic integration is being made by governments in the region first at the political level to be followed up in regard to financial markets. Domestic broking firms should always give due focus to emerging trends in competition and prepare accordingly. 37 . and as the market momentum continues. new market segments will come into force.

It is important for brokerage firms to establish strong and streamlined systems and procedures for ensuring investor safety and protection. 38 . Firms found not having suitable infrastructure and processes to ensure investor safety and protection will encounter constraints from regulation as also class action suits that investors might bring against erring firms.vii) Investor Protection Issues of investor interest and protection will assume centre stage. The nature of penalties and punitive damages would become more severe.

2 INTRODUCTION OF ORGANIZATION 39 .

the insurance arm of Societé Generale (SocGen) for its upcoming life insurance venture. the largest commodity trading company in India. Indiabulls Financial Services is an integrated financial services powerhouse providing Consumer Finance. Multiplex and Power sectors. Financial Services. Power: Thermal and Hydro Power Generation. Indiabulls Real Estate partnered with Farallon Capital Management LLC of USA to bring the first FDI into real estate. Indiabulls Financial Services in partnership with MMTC Limited. The Networth of the Group exceeds USD 2 billion. Indiabulls Real Estate has diversified significantly in the following three business verticals within the real estate space: Real Estate Development. Retail. 40 . Housing Finance. Indiabulls Group companies are listed in Indian and overseas financial markets. Hypermarket Stores. malls. Daily Needs Neighborhood Stores.Morgan Stanley India Index. Superbrands India. Infrastructure. commercial offices. Indiabulls Real Estate is transforming 14 million sqft in 16 cities into premium quality. Indiabulls Real Estate Limited is India’s third largest property company with development projects spread across residential projects. Commercial Loans. Indiabulls Financial is also part of CLSA’s model portfolio of 30 Best Companies in Asia. high-end commercial. residential and retail spaces. Asset Management and Advisory services. hotels. is setting up India’s 4th Multi-Commodities Exchange. Indiabulls Financial Services signed a joint venture agreement with Sogecap. and Special Economic Zones (SEZs) infrastructure development. Retail: Departmental Stores. Commercial (Office and Malls) and SEZ Development. Life Insurance. Project Advisory & Facilities Management: Residential. Indiabulls Financial Services Ltd is amongst 68 companies constituting MSCI .INTRODUCTION TO INDIABULLS Indiabulls Group is one of the top business houses in the country with business interests in Real Estate. Indiabulls has been conferred the status of a ―Business Superbrand‖ by The Brand Council.

Indiabulls Credit Services Ltd. the Steel Tycoon Mr. with around 31% share in Online Trading. Mutual fund. The world’s largest hedge fund.2% stake in Indiabulls Credit Services Ltd. Indiabulls 41 . The service offered by Indiabulls was increased to include Equity. RECENT GROWTH AND DEVELOPMENTS IN INDIABULLS   One of India’s first trading platforms was set up by Indiabulls Financial Services Ltd. F&O. is one of the fastest and most efficient trading platforms in the country. It also became a market leader in securities brokerage industry. in-house trading platform.  Indiabulls Financial Services Ltd. The world renowned investment banks like Merrill Lynch and Goldman Sachs increased their shareholding in Indiabulls. best broking practices and is the pioneer in trading product innovations. LN Mittal promoted LNM India Internet venture Ltd.Indiabulls Securities Limited is India’s leading capital markets company with All-India Presence and an extensive client base. Indiabulls entered the Indian Real Estate market and became the first company to bring FDI in Indian Real Estate. 2000 million for Indiabulls subsidiaries Viz. with the development of an in-house team. Indiabulls Securities Limited is the first and only brokerage house to be assigned the highest rating BQ – 1 by CRISIL. Farallon Capital and its affiliates committed Rs. and Indiabulls Housing Finance Ltd. Indiabulls Securities possesses state of the art trading platform. was included in the prestigious Morgan Stanley Capital International Index (MSCI). Indiabulls came out with its initial public offer (IPO) in September 2004. Wholesale Debt. In the same year. IPO Financing/Distribution and Equity Research. The company acquired over 115 acres of land in Sonepat for residential home site development.  In this particular year Indiabulls ventured into Distribution and Commodities Trading business. acquired 8.     Indiabulls started its Consumer Finance business. Power Indiabulls. Indiabulls won bids for landmark properties in Mumbai.

PHILOSOPHY Indiabulls has created a unique organization that is designed for you – the Smart Investor –. and electronic trading capabilities. detailed data and news. built with tens of crores of investment. provides our clients with real-time service. As we've expanded and developed to serve the needs of all kinds of investors. The company also received an ―in principle approval‖ from Government of India for development of multi product SEZ in the state of Maharashtra.440 million in it. Our world class infrastructure. Indiabulls Real Estate Business was demerged to become a separate entity called Indiabulls Real Estate Ltd. This powerful technology is complemented by our knowledgeable and customer focussed Relationship Managers who are available to help with your financial planning and investment needs. Indiabulls is a full service investment firm offering clients access to a tremendous range of financial services from 135 locations across 95 cities. combined with the highest level of integrity. equity analysis. multichannel & 24/7 access to all information and products.Financial Services Ltd. We have a strong team of over 1000 Client Relationship Managers focussed on serving customers unique needs. Noble Realtors is a Company engaged in the business of construction and development of real estate projects. service and professionalism. The Board of Indiabulls Financial Services Ltd. Resolved to Amalgamate Indiabulls Credit Services Ltd and demerge Indiabulls Securities Limited. it passionately believe in the Smart Investor who wants to make his own educated investment choices and demands world class access to a full range of services and products ranging from Equities to Insurance. intelligent analytics. we've been guided by one underlying philosophy: You come first. 6. right at your finger-tips. was benefited with the Farallon Capital agreeing to invest Rs. Indiabulls Financial Services Ltd acquired 100% of the equity share capital of Noble Realtors Pvt Ltd. We are proud to introduce to you Indiabulls Professional NetworkTM that offers real-time prices. 42 .

Delhi (1994) and has rich experience in the oil industry. Saurabh was also one of the engineers selected by Schlumberger to work for its international services business in 1995 and gained experience of working in various global locations. Rajiv has managed remote exploration projects providing evaluation services for different clients in India as well as abroad. having worked extensively across the globe in highly responsible assignments with Schlumberger. He has utilized his experience with the international best practices and professional work culture at Halliburton to lead Indiabulls successfully. CEO and Whole Time Director of Indiabulls. Sameer Gehlaut is the Chairman. diversification and consolidation of the Group has been possible due to the vision and leadership of the co-founders of Indiabulls.ABOUT FOUNDERS The fast paced growth. Delhi in (1995). Rajiv Rattan is the President. Sameer is an engineer from IIT. Declared the best graduating student in IIT. CFO and Whole Time Director of Indiabulls. He has also developed in-depth understanding of international financial markets 43 . He graduated as a Baker Scholar with an MBA from the Harvard Business School. Saurabh Mittal is a Director at Indiabulls. Delhi (1995) and has worked internationally with Halliburton in its international services business in 1995. Rajiv is an engineer from IIT.

Corporation Bank ICICI Bank Ltd.Indiabulls Financial Services Ltd. Citibank Punjab National Bank Dena Bank LKB Ltd State Bank Of India UTI Bank Ltd. IDBI Ltd Industrial Bank Ltd. ING Vysya Bank Ltd Standard Chartered Bank Karnataka Bank Syndicate Bank Union Bank Of India 44 . Yes Bank Ltd. are as follows:             ABN-Amro Bank Andra Bank Bank of Maharashtra Canara Bank Centurion Bank of Punjab Ltd. Board of directors Chairman Director Director Director Director Director Director Director Sameer Gehlaut Gagan Banga Karan Singh Prem Prakash Mirdha Rajiv Rattan Saurabh K Mittal Shamsher Singh Aishwarya Katoch The Bankers of Indiabulls Financial Services Ltd.            HDFC Bank Ltd HSBC Ltd.

Disbursements during Q2 were at Rs 150 cr.8 cr in Q2 FY08. IB wants to emulate the conservative approach in banking.  Personal Loans portfolio continued to shrink to Rs 274. income stood at Rs 193. 350. Indiabulls has maintained a capital adequacy ratio of 27. Indiabulls have 0% of Net NPAs and 1.4 cr representing 2.11%.  Some of its new ventures coming up are commodity exchange and life insurance business. Indiabulls is waiting for insurance regulator's approval for its life insurance venture with Societe Generale SA.7 cr from Rs. The Consolidated PAT has increased 21.000 cr in debt for a three-year period in addition to the Rs 10. 45 . while expects trading to begin on its planned commodity exchange by the end of this fiscal. Key Highlights  The debt equity ratio of 2. The company has provisions of 171.000 cr of current bank funding. For Indiabulls Securities(ISL). plans to cut about 1. ISL gained market share in retail brokerage during this period. the fifth biggest retail broker.8%. It has declined by only 8% from the corresponding period of the last year despite significant slowdown in trading volumes.PERFORMANCE HIGHLIGHTS The Consolidated Total Revenues of IndiaBulls have increased by 83% to Rs. forex and letters of credit.5% of their total loan portfolio. It has raised 1. 111.4% to Rs. 135.2 cr (80% of total revenues) during H1FY09. Its 12 lakh customers will help the group expand into other financial services. which is almost half of the disbursements during previous quarters  Indiabulls.000 of its 20.5 cr in Q2 FY08.1% of Gross NPAs. the fifth-largest NBFC by sales .4 times signifies very low leverage. 641.000 staff by not replacing workers who quit.5 cr in Q2 FY09 from Rs. may be able to survive the financial crisis as it is well capitalized with $250 cr in assets and $100 cr in cash  Indiabulls plans has put expansion plans on hold. Indiabulls plans to become a bank when the govt permits to offer services like cash management.

7 -100% -72% 4199% 30% 336.18 11.000 6.19 529.000 4.59 493.000 10.35 643.17 57% Q2FY09 YOY growth (%) 46 .01 11.000 0 Q2FY08 Q1FY09 Q2FY09 Financial Snapshot Q2FY08 INCOME FROM SEGMENT Investing & financing related activities Broking related activities Fee ncome other Total income from operation 143.51 2.000 2.Asset under management – AUM (Rs Cr.) 14.000 8.32 0 3.000 12.

Indiabulls Securities Ltd is listed on NSE. ISL is the first and only brokerage house to be assigned the highest rating BQ-1 by CRISIL. equity research services. It is an in -house developed internet enabled trading solution that supports securities and derivatives trading with NSE and BSE. The company provides these services through on-line and off-line distribution channel. BSE & Luxembourg stock exchange. The company through various types of brokerage accounts provides product and services related to purchase and sale of securities listed in NSE and BSE. Indiabulls Securities Limited is India’s leading capital markets company with All-India Presence and an extensive client base. Products Indiabulls Securities Limited (ISL) is the pioneer in Retail Broking Industry having a pan India presence and providing services to a customer base exceeding half a million.  Power Indiabulls Power Indiabulls(PIB) is an online trading platform which brings you the power of a broker’s terminal on your desktop. wholesale debt market and derivative segment of NSE and of the capital market and derivative segment of BSE. mutual fund. PIB is designed for the high volume traders that 47 . ISL is in the business of providing securities broking and advisory services and is a corporate member of capital market.INDIABULLS SECURITIES LTD. It also provides depository services. IPO distribution to its clients. Indiabulls Securities is the first and only brokerage house in India to be assigned the highest rating BQ – 1 by CRISIL.

which makes it the best desktop trading application in the country today. the Indiabulls Signature account comes bundled with a variety of exclusive features. PIB provides you with extensive real time reports to evaluate the performance of your portfolio. Ease of trading – With Indiabulls Signature account you have the flexibility to place your orders either by logging on the website. With an unmatched service and nationwide presence. Dedicated Service Branch and Relationship Manager: You can get in touch with your Relationship Manager and Service Branch for all your trading related requirements. You can create market watches where you can view ―live broadcast‖ of stocks both in capital as well as F&O segment. Designed by the technology team of Indiabulls. PIB comes with several enhanced features. 48 . Stock prices get updated automatically every second without any manual intervention. Salient features of Power Indiabulls:        Integrated market watch for securities and derivatives Live Streaming Quotes Fast Order Entry Tic by Tic Live Charts Technical Analysis Live News and Alerts Extensive Reports for Real-time Accounting Indiabulls Signature Account With Indiabulls Signature account you will always remain on top of your investments. It provides you the platform to trade in Equity and Derivatives.provide access to multiple market segments through the ease of a single terminal. calling at the branch or walking in the branch.

Access the broad spectrum of sophisticated trading tools and get an edge in the stock markets.Power Indiabulls (PIB): You can trade smarter and faster using the Power Indiabulls application. you can contact your Relationship Manager/ Service Branch. notional / booked profits and losses in your portfolio. For applying offline. Market Statistics: This functionality facilitates tracking the market trend by providing you real time data on top gainers. News Room: The News Room provides real-time news from stock-markets. You can view these reports to gain insight into the companies of your interest. Portfolio Tracker: You can track your investments online through our portfolio tracker functionality. ICICI. IPOs – Indiabulls provides you the flexibility to apply in ongoing IPOs through either online or offline channels. Equity Analysis Report – A qualified and dedicated team of equity analysts at Indiabulls publishes various research reports. We currently provide online gateway payment facility with four major banks – HDFC. You can apply conveniently in IPOs from the comfort of your home / office through our Website/PIB. Online Payment Gateways: Use our online payment gateways facility and get instant credit in your Trading Account. AXIS and IDBI. You can conveniently track the daily movement. 49 . economy and other segments that have a bearing on the market sentiment. corporate sector. volume toppers and most volatile stocks. you do not need to fill tedious forms and write cheques. For applying online. top losers.

iv. i. v. iv. 50 . ii. Electricity Bill (not more than 2 month old from bill generation date) Landline Bill (not more than 2 month old from bill generation date) Bank Passbook Bank Statement original/photocopy with Bank Logo (not more than 3 month old) must be accompanied with a Cheque copy vi. Documents Valid as Address Proof:i. ii. v documents can be given as additional ID proof. v. either of ii. iv. Bank statement original/photocopy without Bank Logo (not more than 3 month old) must be attested by bank official stamp and signature along with original cancelled Cheque copy Note. whereas proofs from viii to xii are acceptable both in the name of Firm & individual. iv. iii.i to vii proofs are valid for individuals only. iii. iii. v. Ration Card Driving License/ Learning License Lease and License Agreement/ Rent Agreement Passport Voter ID card Insurance Policy Certificate issued by employer registered under MAPIN. PAN card –Mandatory* Voter id card Passport Driving License/ Learning License Photo Identity card issued by employer registered under MAPIN if photo is not clear on Pan card. iii. ii.Documentary Requirements for Equity Trading Account Documents Valid as ID Proof:i. vi.

Personalized Cheque copy(Client signature should be match with kit) Non personalized Cheque copy (Client signature should be match with kit) iii. 6.Documents Valid as Bank Proof :i. Documents required for Proprietorship Firm Account 1. Affix rubber stamp at all places except at the bottom of the declaration in Annexure-4. Proprietor Pan card 3. 4. Recent passport size Photograph of Proprietor. Address proof in the name of the individual. iv. v. Declaration by Firm – Sole Proprietorship on letter head of the firm as per Annexure-4.All the documents must be duly Self-attested in original. vi. Address Proof in the name of the Proprietorship firm and Proprietor. Bank Passbook Original Banker verification letter Documents required for individual account:1. Bank proof in the name of the Proprietorship firm 5. Individual pan card 3. Bank proof in the name of the individual. 51 . ii. Bank Statement with Bank Logo (not more than 3 month old) Bank statement original/photocopy without Bank Logo (not more than 3 month old) attestation by bank official stamp and signature. 4. 2. Individual recent passport size photograph(s) 2. Note:.

Recent passport size photographs of all authorized partners. Documents required for Corporate Account 1. 6. 3. Photograph(s) of all the authorized signatories. 2.Documents required for HUF Account 1. Address proof in the name of all the partners & the partnership firm 4. 5. Recent passport size Photographs of the Karta. PAN Card Copy of all authorized signatories & Corporate. Bank statement 52 . 2. Only following documents can be accepted address proof of Corporate 4. 4. Copy of the Latest ITR 8. Address proof in the name of HUF & the Karta. 3. Form 18 with ROC receipt 5. Bank proof in the name of HUF. Documents required for Partnership Firm Account 1. PAN card of all the partners & the partnership firm 3. Authority letter by all the partners in favour of Managing Partners on the Original letterhead of the partnership firm. Notarized Partnership Deed along with the list of partners duly certified and attested by all the partners. Pan card of the HUF & the Karta. HUF Stamp to be affixed on all client’s signature. 2. Signature of Karta and all the co-parceners(major &/Minor) on the Declaration given in Annexure-7 6. 7. Bank proof in the name of Partnership firm 5. along with stamp & signature as per Annexure-6. Address proof of all the authorized signatories & Corporate. Partnership firm stamp to be affixed with all signatures of partners.

Bank proof for the Corporate 8.6. 17. Certified true copy of Auditor Report with Balance Sheet for last 2 years 12. Networth certificate by a Chartered Accountant in original with their stamp. signatures & Photographs across signed with company stamp on the company’s letterhead 18. 9.2 months from bill date) 7. Certified true copy of Annual Reports of Last 2 years 15. address. Form-18 along with ROC receipt in case of company address change Note:.Required On Company Letter Head (Original). 13. Land line telephone bill or Electricity bill must be supported by ITR copy (Validity date. Board Resolution on the original letter head in specified format given in Trading kit & duly attested by Director / Chairman other than the authorized signatory. address and p hotographs across signed with company stamp to be provided along with their signatures on letterhead of the company. 19. Copy of ITR for last two years.All the documents must be duly attested in original with company stamp 53 . List of Authorized Signatories along with their Name. 14. Valid Certificate of Incorporation with ROC seal attested by authorized signatory 11. Form-32 along with ROC receipt in case of change in director. Copy of latest shareholding pattern including list of all those holding more than 5% in the share capital of the company duly certified by the company secretary/whole time director/MD) (copy of the updated shareholding pattern to be submitted every year). List of director’s along with name. Banker’s Verification on Banker’s original letter head certifying the signatures of the Authorized Signatories (as per the format given the corporate kit) 16. 20. True copy of MOA and AOA Certified by Authorized signatory. 10.

Indiabulls Securities Limited has tied up Axis bank to offer this facility to NRIs to enable them to trade in the Indian Capital markets. To start trading through Indiabulls . Opening of Online NRI Trading and NRI Demat account with Indiabulls: Get in touch with your nearest Indiabulls service branch (Branch Locator) to complete all the Trading and Demat account opening formalities. Depository Services Indiabulls is a depository participant with the National Securities Depository Limited and Central Depository Services (India) Limited for trading and settlement of dematerialised shares. The Indiabulls team would also help and assist you with opening a PIS account with Axis Bank.  NRI Online Trading Introduction to NRI Online Trading Non-Resident Indians (NRIs) can also enjoy the state of the art Online trading Platforms of Indiabulls to trade in Indian Capital Markets. the following simple steps need to be followed: 1. 2. Indiabulls performs clearing services for all securities transactions through its accounts. We. at Indiabulls. 54 . provide NRI clients a fast and secure trading platform which would perfectly cater to NRI's Trading requirements. We offer depository services to create a seamless transaction platform – execute trades through Indiabulls Securities and settle these transactions through the Indiabulls Depository Services. Opening of a NRI PIS account with Axis bank: A NRI is required to open a PIS account (Portfolio Investment Scheme) with a designated bank in India. Indiabulls Depository Services is part of our value added services for our clients that create multiple interfaces with the client and provide for a solution that takes care of all your needs.

Equity Analysis Report – A qualified and dedicated team of equity analysts at Indiabulls publishes various research reports. address and photographs) o Valid & self-attested Proof of Identity and Proof of Address (Indian and Foreign). Portfolio Tracker: You can track your investments online through our portfolio tracker functionality. corporate sector.3. Salient features of NRI Trading Account Dedicated Service Branch and Relationship Manager: You can get in touch with your Relationship Manager and Service Branch for all your trading related requirements. Online Trading: You can place your orders through our state-of-theart Online trading platforms (Power Indiabulls (PIB) & Website) Power Indiabulls (PIB): You can trade smarter and faster using the Power Indiabulls application. You can conveniently track the daily movement. You can view these reports to gain insight into the companies of your interest. economy and other segments that have a bearing on the market sentiment. Access the broad spectrum of sophisticated trading tools and get an edge in the stock markets. 55 . Documentation required: The following proofs need to be submitted along with the Trading and Demat account opening forms: o o Copy of PIS approval letter from Axis Bank Copy of passport (copy of the pages containing the Name. News Room: The News Room provides real-time news from stockmarkets. notional / booked profits and losses in your portfolio.

Market Statistics: This functionality facilitates tracking the market trend by providing you real time data on top gainers. or write a cheque or go to submit it anywhere. Now you have the convenience at your fingertip. Orders on Phone: Indiabulls also offers the facility of placing orders through phone. top losers. volume toppers and most volatile stocks Electronic Contract Notes on Email: This facility enables you to get digitally signed Contract Notes on email within 24 hours of executing trades in your Trading Account.  IPO Online For various reasons. Indiabulls Securities Ltd. Research report assess the potential strength and investment risk by doing in-depth and exhaustive analysis of operational and financial 56 . You can quickly and seamlessly apply to the latest public offerings with just a few clicks. is the convenience in submission of applications from anywhere breaking the limitations of time and geography. Reporting of transactions to RBI: Indiabulls facilitates the reporting of all transactions done in your account to RBI through the Axis bank.  Indiabulls Equity Analysis Indiabulls Equity Analysis complements its equity broking and advisory services with high quality comprehensive report which can be accessed online. we often miss the opportunity of subscribing to an IPO. offers ONLINE IPO facility to its registered trading customers at absolutely no cost. It can either be because we could not procure the application form or we did not have the time to fill up the form and submit it. The most important benefit of the 'ONLINE IPO facility offered by Indiabulls Securities Ltd. You don’t need to submit the application in paper form.

57 . please share your details with us. Salient features of Indiabulls Equity Analysis:         Covers report of more than 540 company Updated on a daily basis Scorecard on Fundamentals.The Mark-to-Market for Currency Derivatives is settled on a daily basis in a manner similar to Equity / Index Futures.performance of company. Currency Future Contracts are available for trading for the next 12 months. with INR: USD exchange rate as the underlying. Valuations and risk Peer Analysis Valuation of potential growth Industry Scenario Expansion plan Details of Mergers and Acquisitions These reports are available to clients without any additional cost.  Currency Derivatives Indiabulls offers trading in the Currency Derivatives Segment in National Stock Exchange (NSE)Currency Derivatives are similar in nature to Stock or Index Futures contracts. These research reports identify. At any given time. present Industry scenario using advanced and sophisticated forecasting tools and models. If you are not a client and wish to view a sample report. Peer group analysis. are available with a monthly expiry. examine and distill attractive investment opportunities to help you in building and maintaining your ideal portfolio. Currency Futures Contracts.

2008 and was paid by the Company on September 09.02 lakhs (excluding corporate dividend tax) approved at the Annual General Meeting of the Company held on September 05. the company has launched its Trading Platform for trading in the Currency Derivatives Segment on National Stock Exchange. 2008 into the Dividend Account. the final dividend of Rs.  Networth of the company as on 30th September 2008 is Rs. 17. 2008. Book Value per share as on 30th September 2008 is Rs.08. This segment was down only 8% from last year first six months despite significant declines in market activity (trading volumes) as ISL gained market share in retail brokerage. 7.  During the quarter. 2/. 58 .  Sequential increase in Profits after tax despite market turmoil through strong cost controls.5% of the paid up share capital of Indiabulls Life Insurance Company Limited (ILICL).Business Highlights  Brokerage & Capital Market related Income was Rs 193.007. roughly flat in Q1 and Q2 of 08-09. 359.2 crores.19.22 crore (79. a joint venture of Indiabulls Financial Services Limited (IBFSL) and Sogecap of France.4 crores on March 31.7% of total revenues) during the six months ended Sep.per equity share) amounting to Rs. 2008 to subscribe to 24.  During the quarter. 434. IBFSL will continue to own 49. as compared to Rs. the Board of Directors has authorized the Company at its meeting held on 23rd September.50 per equity share (375% on the face value of Rs.14.5% and Sogecap will own 26% of the life insurance business.  During the quarter.

with BQ-1 being the highest.STRONG.s Internet Based Trading System (IBT) was concluded as being . The grading is expressed on a five point scale BQ-1 to BQ-5. This is the highest grading for the audit . across the following parameters.the other.  Risk Management  Security Policy & Implementation  Capacity Management  Disaster Recovery and Back-up  Vulnerability test.  CRISIL has assigned a CRISIL BQ . 1 to ISL. 59 . ISL.s being Medium and Weak. based on an audit conducted by Tata Consultancy Services for The National Stock Exchange. This is an opinion on the quality of operations and service offered by the graded broker.

INDIA INFOLINE LTD.5paisa. India Infoline Ltd and its subsidiaries. It holds memberships of both the leading stock exchanges of India viz. straddles the entire financial services space with offerings ranging from Equity research. Equities and derivatives trading. comprising the holding company. www. Mumbai (BSE) and the National Stock Exchange (NSE). the Stock Exchange. viz. It undertakes equities research which is acknowledged by none other than Forbes as 'Best of the Web' and '…a must read for investors in Asia'. being a listed entity. Mumbai (BSE) and the National Stock Exchange (NSE). The India Infoline group. 1. India Infoline also owns and manages the websites. Life Insurance. which is engaged in the businesses of Equities broking and Portfolio Management Services. India Infoline Securities Pvt Ltd India Infoline Securities Pvt Ltd is a 100% subsidiary of India Infoline Ltd. is regulated by SEBI (Securities and Exchange Board of India). Fixed deposits and other small savings instruments to loan products and Investment banking. 60 . India Infoline Ltd. Commodities trading. It offers broking services in the Cash and Derivatives segments of the NSE as well as the Cash segment of the BSE. Thomson First Call and Internet Securities where it is amongst the most read Indian brokers.indiainfoline.THE COMPETITORS OF INDIABULLS SECURITIES LTD. Portfolio Management Services. the Stock Exchange. India Infoline's research is available not just over the internet but also on international wire services like Bloomberg (Code: IILL).com . Mutual Funds. INTRODUCTION: India Infoline Ltd is listed on both the leading stock exchanges in India.com and www.

chat facilities. Sharekhan is an equities focused organization tracing its lineage to SSKI. SHAREKHAN Sharekhan was created when SSKI Investor Services Pvt.. and 'speed trade' terminals. a veteran equities solutions company with over five decades of experience in Indian stock markets. The online model comprises a portal.com is making a great move towards giving the investor in Indian equities market a choice. And the offline model uses a combination of an IVR infrastructure and a team of customer agents to receive orders over the telephone. India Infoline.5 paisa for every trade of Rs100. 5 paisa also represents the availability of world class service to investors at the lowest possible rate .. The company claims to have around 150. a company in the securities and equities segment decided to harness the power of the Internet and offer services to its customers through an online stock trading portal. and India's premier online trading firm.000 current registered users nationwide. one of India's leading brokerage houses.e.com. They also have an extensive all-India ground network of franchisees across the country. coupled with a wealth of content that will help you stalk the right shares. which are based on differing investment strategies made to reflect the varied risk-return preferences of clients. is the retail arm of SSKI. Sharekhan. Ltd.As a SEBI authorized Portfolio Manager. The company offers its services through a combination of online and offline channels. 2. A choice of technologically advanced trading that is with the help of 5paisa. 61 . Sharekhan brings and provides a user-friendly online trading facility.05%. a brokerage rate of 0. With over 510 share shops in 170 cities. it offers Portfolio Management Services to clients. i. These services are offered to clients as different schemes.

They have a dedicated research team. making the services quick. Sharekhan Depository Services offers dematerialization services to individual and corporate investors. which is engaged in analyzing the Indian economy and corporate sectors to identify equity investment ideas. apart from a national network of franchisee. MOTILAL OSWAL Vision:To be a well respected and preferred global financial services organization enabling wealth creation for all our customers Introduction: Motilal Oswal Securities Ltd. and on real-time.The 'speed trade' channel offers the benefit of a terminal at the user end. Their Institutional Equities Division combines the efforts of the Research and Sales & Trading departments to best serve clients' needs. 62 . is live. respect for professionalism. Unlike a Web trade request. research-based value investing and implementation of cutting-edge technology have enabled them to blossom into an almost two thousandmember team. Focus on customer-first-attitude. They have a team of professionals and the latest technological expertise dedicated exclusively to the demat department. ethical and transparent business practices. It believes that it is their unflinching commitment to providing superior client service that makes them stand out. with just two people running the show. convenient and efficient. 3. which is connected to the company's systems through a TCP/IP link. Motilal Oswal Securities Limited (MOSt) has established itself as the Best Local Brokerage House in India (Asia Money Brokers’ Poll 2005). which travels with the help of HTTP or HTTPS a speed trade transaction is a direct transfer of information with the trading system. was founded in 1987 as a small sub-broking unit.

150.They staunchly practice the value-investing philosophy and advise investors to take a long-term view of equity investments. 63 . Asia Money Broker's Polls have consistently rated their research as one of the best in the industry. Later. based on their specific needs. Most is known for its equity research ideas. Karvy has built a reputation as an integrated financial services provider. translates the research findings into actionable advice for clients. KARVY The birth of Karvy was on a modest scale in the year 1982. It began with the vision and enterprise of a small group of practicing Chartered Accountants based in Hyderabad. sector trends and investment strategy has established them as a reliable research unit amongst leading Indian as well as international investors. Their sales & trading team. 4. it forayed into the Registrar and Share Transfer activities and subsequently into financial services. They started with consulting and financial accounting automation. Sophisticated computerized tools are used to understand client investment profile and objectives. and then carved inroads into the field of Registry and Share Transfers. Consistent delivery of high quality advice on individual stocks. offering a wide spectrum of services for over 20 years. Each of the sales personnel has at least five years’ experience in equity research. who founded Karvy. a group of Hyderabad-based practicing Chartered Accountants started Karvy Consultants Limited with a capital of Rs. In 1982. which ensures proactive and timely service. comprising top equity professionals. 000 offering auditing and taxation services initially.

64 . Karvy has evolved as a veritable link between industry. besides companies. banks. Karvy made inroads into a host of capital-market services. viz.which proved to be a sound business strategy. financial institutions and regulatory agencies. Karvy's commitment to quality and retail reach has made it an integrated financial services company. bonds and debentures. Associate Companies of Karvy Karvy Securities Limited Deals in distribution of various investment products. corporate and retail . equities. Karvy Stock broking Limited Deals in buying and selling equity shares and debentures on the National Stock Exchange (NSE). finance and people. An ISO 9002 company. Over the past one and half decades. the Hyderabad Stock Exchange (HSE) and the OverThe-Counter Exchange of India (OTCEI). fixed deposits. Thereafter.. mutual funds. Investment Banking and Merchant Banking. professional integrity and vision helped Karvy achieve a leadership position in its field when it handled the largest number of issues ever handled in the history of the Indian stock market in a year. Today. In January 1998.A decade of commitment. Karvy Investor Services Limited Deals in Issue management. insurance policies for the investor. Karvy has access to millions of Indian shareholders. Karvy became the first Depository Participant in Andhra Pradesh.

Kotak Securities was set up in 1994.com. to mutual funds.including private and secondary placement of debt and equity and mutual funds. to stock broking. 20. offering complete financial solutions that encompass every sphere of life. to life insurance. Retail (equities and other financial products). From commercial banking.5. Kotaksecurities. the online division of Kotak Securities Limited offers Internet Broking services and also online IPO and Mutual Fund Investments. The company has four main areas of business:     Institutional Equities. Kotak Securities is a corporate member of both The Bombay Stock Exchange and the National Stock Exchange of India Limited. 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. Kotak Securities has 195 branches servicing more than 2. 65 . is the stock broking and distribution arm of the Kotak Mahindra Group. a subsidiary of Kotak Mahindra Bank. Kotak Securities Ltd is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL). KOTAK SECURITIES Introduction Kotak Securities Limited.000 customers and coverage of 231 Cities. Kotak Mahindra is one of India's leading financial institutions. Currently. the group caters to the financial needs of individuals and corporate. Portfolio Management and Depository Services. to investment banking. Kotak Securities is one of the largest broking houses in India with wide geographical reach. Its operations include stock broking and distribution of various financial products .

was set up in February 1993 to provide investment-banking services to investors in India. UK (FSA) and the Monetary Authority of Singapore (MAS) to carry out Corporate Advisory Services. empowering it to engage in a variety of securities transactions in the U.9% of the share capital of ICICI Securities. ICICI SECURITIES Introduction ICICI Securities. ICICI Securities has set up two subsidiaries namely. ICICI Securities Inc. ICICI Securities Holdings Inc and ICICI Securities Inc. ICICI Securities Limited is India’s leading full service investment bank with a dominant position in all segments of its operations –    Corporate Finance Fixed Income and Equities. has become the registered broker dealer with the National Association of Securities Dealers Inc. is also registered with the Financial Services Authority. ICICI Securities Inc.S. A subsidiary of ICICI Bank. market. 66 . As on date ICICI Bank holds 99. In order to assist/provide corporate clients and institutional investors with investment banking services in the United States of America.6.

comprising of     Product Pricing Service delivery model Unique selling proposition. stocks. electronic matching. 67 . It has two main interdependent segments: Primary market and the Secondary market.g. and paperless securities • Centralized operations. and control on large interconnected operations spanning multiple locations. shares. which is enabled by telecom connectivity and low costs • Increasing access to capital and the ability to provide margin finance Parameter Assessment for Doing Competitive analysis A differentiating aspect is a comparative assessment of the top retail brokerages on various value indicators.  Doing Competitive Analysis for Indiabulls. The major growth drivers for brokerage revenue and trading volume are: • Continuous fall in brokerage fees • Adoption of technology — screen-based trading.COMPETITIVE ANALYSIS FOR INDIABULLS The Indian retail brokerage industry consists of companies that primarily act as agents for the buying and selling of securities (e. Derivative Market and the intensity of competition among the brokerage companies. effective risk management. and similar financial instruments) on a commission or transaction fee basis . Objective: The main objective is to  Analyze retail brokerage industry taking into account the health of the capital markets.

A few examples would be: Demat Account maintenance. It should automate trade management and execution. Annual account Fee. We should understand what all charges we are bound to incur from our broker. Execution Platform: It’s nothing but a platform that allows us to execute our trade fast. 68 . Or how fast and often it refreshes. Brokerage. Demat Account: Demat account should only be opened with a well known and established brokerage firm in the market. We don’t pay attention to the quality of data (how accurate it is). We typically use software that have stumbled upon and stick with it just because we have eventually grown comfortable using it. Does it allow us to back test our strategy? Does it allow customizing technical signals/parameters? Does it allow adding new indicators? Does it allow us to see historic data? For.      Brokerage & Miscellaneous charges Quote Software Execution Platform Demat Account.Customers need to analyze the Brokerage Firms Based on these 5 Parameters. Quote Software: This is used mainly for technical study and for live quotes. what period is intra day data available? We might need all this information. and finally Back office Support. Many people don’t evaluate quote software. Brokerage & Miscellaneous charges: This accounts for all the charges that you incur for your trading/investing. trading software usage charges. Telephone based trading charges. We should be clear on what we need and ensure our quote software provides it all. etc. and should automatically give protection against human errors.

69 . Strong and experienced promoters Leading product innovation and marketing strategies Well capitalized player. trades not being executed. slow execution etc are a few examples. Relationship Managers trading without their client’s knowledge. COMPETITIVE STRENGTH OF INDIABULLS SECURITIES Indiabulls securities Ltd have a distinct set of competitive advantages that make it uniquely capable of winning in the marketplace against its competitors           Diverse Branch Network Bouquet of financial products and services Advanced technology team that delivers market leading product innovation Strong sales and marketing teams with continuous reinvestment and training Strong cross-selling opportunities. funds not being transferred. with strong banking relationships and credit ratings Ability to combine people and technology in unique ways Strong market presence and increased market share leading to a virtuous cycle of growth and Profitability.Back office Support: People while trading face lots of problem because of lack of good back office support.

And In ICICI direct . Trading account & bank account all are linked in one interface. i. Indiabulls securities provide 8 times margin for Intra-day and 4 times margin for delivery. De-Merits of Indiabulls Securities  You have to open a bank account with the banks mentioned in Indiabulls site for Credit/ Debit Facility as they don’t have their own bank. Demat Account.e. Low cost and highly scalable business.10 for Intra-day and 0. Offer Diversified Financial Products & Services. It is a Java based application. It is fast in terms of speed and execution   Research reports are free of cost to trading members. with real-time streaming quotes. Indiabulls is suitable for both Day trading & Long term investment IndiaBulls has software called Power IndiaBulls. you have a direct debit/credit facility with the bank  Most customers feel that it is difficult to understand the ledger reports of Indiabulls securities.Core pillars of Business strategy     Increase the number of Client Relationships. so proper customer guidance should be given. 70 . Merits of Indiabulls Securities     Low brokerage charges (Competitive) with 0. They Provide 3 in 1 interface. Multiple Channels – Enhance Customer Experience and Opportunities.50 % for delivery.

Indiabulls Market Trader: Browser based trading application built for retail investor. Relationship manager: Indiabulls securities robust technology is integrated with knowledgeable and customer-focused relationship managers who are available 24X7 to assist the clients. Depending on what kind of investor you are. 71 . intelligent analytics and electronic trading capabilities. Indiabulls Equity Analysis: Premium research on 400 plus companies.Value Proposition of Indiabulls Securities       ISL provide a very good Trading tools like Power Indiabulls & Indiabulls market trader. when to execute your order and more.  In Depth Market Analysis and Research Their special research cell bring you intensive research reports on how the stock market is faring. they bring you fundamental or basic research and technical research. Power Indiabulls: A desktop Trading application offering clients sophisticated trading tools accessible at lightning fast speed. Indiabulls Professional Network: Offers real-time prices. when is the right time to invest. detailed data and news.

So intra-day Margin trading could be annoying now & then. It's not much of a hassle for cash trading though. 72 .25% and 0. Can apply for IPO online (we can’t do this in Indiabulls). Internet banking demo which gives customers an opportunity to learn. Can apply for mutual funds online and can also sell them online. It is fast in terms of speed and execution). All facilities available under one umbrella. this facility is available only in ICICI Direct.intraday 0. which is very slow. (Indiabulls offers you a trading terminal 'powerIndiabulls'.00 hrs may be queued for a while.  ICICI Direct brokerages are not negotiable ( Where as Indiabulls Brokerage Charges are negotiable). Merits of ICICI Securities        ICICI Direct is considered best for long term investment.MERITS & DE-MERITS OF COMPETITORS ICICI SECURITIES ICICI securities: It provides products & services in fixed income.( Indiabulls is suitable for both Day trading & Long term investment) A direct debit/credit facility with the bank. equity & corporate finance. BTST (Buy today & sell tomorrow) is available. which is java based software. De-Merits of ICICI Securities  Brokerage charges are high . Orders placed at or around 10.  Day trading is a night mare in ICICI because of Web based terminal.75% delivery compared to other brokerage firms (is considered as highest in the market).

All customers will get Digital Contract Notes.1% and 0. you have to trade a certain volume every month. otherwise you end up paying a fine INDIA INFOLINE Merits of India Infoline (5 Paisa. intraday 0.SHAREKHAN Merits of ShareKhan Securities      Low brokerage charges. Physical contract notes could be provided on request which would entail a nominal charge. intraday 0. That is because. in ShareKhan you can’t sell a share today which you bought yesterday.10% and 0. only for active traders. Streaming quotes requires JVM (Java Virtual Machine).5% for delivery. Minimum brokerage per share will be 1 paisa for trading transactions and 5 paisa for delivery based transactions. Live streaming quotes Customer support is good No monthly charges Can trade in both BSE and NSE De-Merits of ShareKhan Securities No BTST (buy today sell tomorrow). this may be big headache for customers.50% for delivery and it is negotiable.     You have to open a bank account with the banks mentioned in ShareKhan site. Their trading terminals are certainly not for "investors". 73 . 5 paisa provides 6 times margin for Intraday & 8 time’s margin for Delivery.com) Securities     Low brokerage charges. Annual charges are Rs330.

74 . Flexibility of products .  Some investors have bad experience with accounts opening & they complain that it takes a long time for opening accounts.05% for Intra-day & 0. but the interface is too complicated KOTAK SECURITIES Merits       Low Brokerage charges with 0. There is lot of Hidden costs.250. They provide Simple Ledger reports.De. De-Merits  Unethical act: Geojit Securities Ltd has accused kotak securities stock broking firm of hacking into its account to steal critical business information and blocking information access.Once you invest with Kotak Securities.799/. Kotak Securities will offer small-time retail investors with invest able surpluses as low as Rs. Customers who just want to have a depository relationship will be required to pay Rs.5. Annual Service Charges Rs.45% for delivery. 000 a chance to invest in capital markets. Transactions are transparent with effective back office support. Trader terminal is good.1000/-.per month or 7999/. which customers feel easy to understand than any other brokerage firms.   The information in their web based terminal is too much compressed in one screen.Merits of India Infoline (5 Paisa. Mutual fund & IPO facility is available online. which will be adjusted against service charges.com) Securities     Software License Fee Rs. you can enjoy access to a wide range of products and services to help you make the most of your investments.per annum and is non-refundable. for each Demat account.

 High Quality of software (KEAT) K. and they have different slabs for different clients based on their turnover. You can always choose your brokerage based on your style and quantum of trading.  Phone Trading – Call and Trade Call & Trade is a service offered by Kotak Securities for its customers. view order reports.  Mobile trading The facility is exclusively designed to give you instant access to the stock market through mobile phone.com provides its customers using which they can view live market rates of scrip’s on both the NSE and BSE. research companies etc.Value Proposition of Kotak Securities  Kotak Securities have a definite policy on brokerage. Kotak Securities provides you a toll free number that you can call from anywhere in India.E. create a watch list and simultaneously place orders. It is a complete online trading terminal.T is a special software that Koataksecurities. which provides customers with a facility to trade over the phone. Kotak Securities offers Variety of account types for different investors    Kotak Auto Invest Kotak flat Kotak Gateway    Kotak privilege circle Kotak High Trader Kotak free way 75 .A.

3 RESEARCH METHODOLOGY 76 .

Research defined Research in common parlance refers to a search for knowledge.RESEARCH METHODOLOGY Research methodology is a way to systematically solve the research problem. The logic behind the method used. so that research results are capable of being evaluated either by the researcher himself or by others. -Oxford advance learner dictionary Redman and Mory defined research as –―a systematized effort to gain new knowledge. The research project involves an explanation of the methods to collect information. thereby increasing their knowledge. 77 . in context of research. is explained. argue why the results are meaningful and explain any limitations that are associated with them. One can also define research as a scientific and a systematic search for pertinent information on specific topic. ―A careful investigation (or) inquiry especially through search for new facts in any branch of knowledge ‖. People undertake research in order to find things in a systematic way.

Title of the study
“A comperitive study of Indiabulls with its competitors”

Duration of the project
The Duration of the project of the study has 40 days period.

Objective of study
• • • To make a comparative study of competitors of Indiabulls. To study Indiabulls products and services. To find out potential investors for Indiabulls and present attitude of investors regarding share market.

Type of research
A research design is considered as the framework or plan for a study that guides as well as helps the data collection and analysis of data. The research design may be exploratory, descriptive and experimental for the present study.

 Exploratory research studies are also termed as formulative research studies. The major emphasis in such studies is the discovery of ideas and insights. The main objective of exploratory research is to fine-tune the broad problem (here, increasing turnover) into specific.

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 Descriptive research studies are those studies, which are concerned with describing the characteristics of a particular individual, or a group. A sample was taken and statements about the population on the basis of the samples were made. Descriptive research aims at drawing inferences and making predictions (here, the number of prospective Customers who may buy Nestle products).

The descriptive research design is adopted for this project.

Sample size
The study sample constitutes 100 respondents constituting in the research area.

Method of selecting sample
Most of the data collected by the researcher is primary data through questionnaire, where the researcher and the respondent operate face – to – face.

Research Instrument
The researcher has used a structured questionnaire as a research instrument tool which consists of open ended questions, multiple choice and dichotomous questions in order to get data. Thus, Questionnaire is the data collection instrument used in the study. All the questions in the questionnaire are organized in such a way that elicit all the relevant information that is needed for the study

79

Scope of the study
This study is limited to Jaipur city. This study emphasizes on the following aspects-

 To identify the preferences of different investors in investment instrument.  This study is helpful to that organisation for conducting further research.  It is helpful to identify the customers interest level of investment in share market.  This study is helpful to the organization for identifying the area of dissatisfaction of their clients.  To identify the competitiveness of organization and its competitors.  This study helps to make a managerial decision to the company

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 The data collected were totally depending on the respondents’ view.  Getting accurate responses from the respondents due to their inherent problem is difficult .  The selection of customers to cover the various strata of the society is tedious and time consuming.They may be partial or refuse to cooperate. which could be bias in nature.  Sample size is limited. 81 .  Investors are not interested sharing their investing pattern. it may be hampered due to certain limitations.The sample size is small. it may not actually represent the whole population.Limitations of the study Through the present study aims to achieve the above-mentioned objective in full earnest and accuracy.  Since the study is wide in nature and the matters regarding the study could not be analyzed and taken for consideration.  Respondents are not interested in filling the questionnaire. Some of the limitations of this study may be summarized as follows:  Questionnaires are not filled properly by the respondents.

4 FACTS AND FINDINGS 82 .

FINDING AND ANALYSIS Number of Branches of Competitors compared with Indiabulls securities Brokerage houses INDIABULLS ICICI DIRECT INDIAINFOLINE SHAREKHAN KARVY MOTILAL OSWAL KOTAK No. of branches 500 400 300 200 100 0 No. of branches 640 441 605 583 581 80 330 Number of Branches of Competitors compared with Indiabulls securities 700 600 no.of branches S ID IR IN EC D IA T IN FO LI SH N AR E EK HA N M K O AR TI VY LA L O SW AL IC competitors LL IN D IC IA BU 83 KO TA K .

000 400.000 260.00 Number of Customers of competitors compared with Indiabulls 600.000 500.000 200.000 0 No.000 210.000 400.000 200.NUMBER OF CUSTOMERS OF COMPETITORS COMPARED WITH INDIABULLS Brokerage houses INDIABULLS ICICI DIRECT INDIAINFOLINE SHAREKHAN MOTILAL OSWAL KOTAK No. of competitors 500.000 300. of customer 450.of customer NE S T O SW AL ID IR EC EK HA N LL IA BU FO SH AR IA IN D IC IN competitors M O 84 TI LA IN IC D L KO TA LI K .000 no.000 100.

(This is 0. No courier\postal charges incurred in transferring them or changing your address etc.75-1.PHYSICAL VS DEMAT OF SHARES TYPE OF ACCOUNT Brokerage Stamp Duty on transfer Postal Transfer Deeds Follow Ups Settlement Changes PHYSICAL 0. No loss of share certificate in postal transit.5% of MV Actual INR 0. Much faster payment on sale of shares. Minimum handling of paper.COMPARISON OF COST.05% of Transaction Value Custody Changes Bad Delivery Loss/Theft/Mutilation Non Receipt Of Bonus/right Shares (Vault Cost) Not Quantifiable Actual Actual 0. No scope for theft\forgery damage of share certificates.5% of value in case of physical) Shares are transferred in the name of purchaser within a day of completion of settlement as against 45-60 days in physical mode.25-0.75% NIL NIL NIL NIL 0.02% of Share Value NIL NIL NIL         No bad delivery of shares.35/TD Actual NIL DEMAT 0. No requirement of stamp duty on transfer of shares. 85 .25% 0.

Corporate Offer Sno.20% Delivery 6 7 8 Min Charges Margin-Intraday Margin on Delivery Rs 10 to Rs 25 Generally 6 to 10 times Most of the competitors do not provide 9 Automised margin lending facility 10 Equity analysis Do not have Equity Analysis of 400+ companies updated daily 11 Technical charts Do not provide Provided on trade terminal 12 Transparency Not so transparent Everything provided online  Online trading through Power Indiabulls is extremely fast and convenient. Do not have Provided 86 .02% 0. 500 Nil 4 0.15% to 0. Parameters 1 Competitors offer Only offline or online or both Indiabulls Offer Facilities Both offline and online Rs 700(lifetime) 2 A/c Opening charges Rs 0 to Rs.  User can open charts for any number of scrips.750 (initially) 3 Annual Maintenance charges Rs 190 to Rs.10(negotiable) 0.50(negotiable) 1 Paisa 8 times 4 times Brokerage-Intraday 5 0.75% to 0.

500/.PA Rs. 50 Rs. 300 (AMC) 8 9 INDIAINFOLINE ALANKIT ASSIGNMENT 10 11 12 13 MOTILAL OSWAL ANANDRATHI FORTIS HEM SECURITIES Nil Nil Rs. 425 Rs. 190/. 250/-PA Rs. 750 Rs.PA Rs. 350 Rs. 50 Nil Rs.PA Rs. 7 ANAGRAM Rs. 330/. 200 Nil Nil Nil Rs.PA Charges for Trading Account Nil  Demat charges per year taken by the entire depository participants are almost similar. 30/.Per Month Rs.Comparison of different Depository Participants SNO. 500 Rs. 240/. 250/. 670 Nil Nil Rs.COM 2 3 4 IL&FS UTI SECURITIES KOTAK SECURITIES 5 6 SHAREKHAN INDIABULLS SECURITIES LTD.PA Rs. 500 Rs. Name Of DP Demat Charges initial 1 ICICI DIRECT. 200 Rs.400 Rs. 750 Account Maintenance (AMC) Rs. 360 Rs.PA Rs. 375 Rs. 270 Rs.PA NIL Rs. 260/-PA Rs.PA Rs.250/. 100 Nil Rs. 300/. 300/. 87 .

03% 0.25-0.03-0.  Many depository participants are opening accounts in free but they are charging annual maintenance (AMC). Indiabulls and Motilal Oswal.05-0. ANAGRAM INDIAINFOLINE ALANKIT ASSIGNMENT MOTILAL OSWAL ANANDRATHI Religare HEM SECURITIES 0.30% 0 .20% 0.75-0.25% 0.3% 0.075% 0.08-0. Name Of DP Brokerage Charges on Delivery 1 2 3 4 5 6 7 8 9 10 11 12 13 ICICI DIRECT.50-0.04% 0.  A very few are not charging account maintenance (AMC) viz. Comparison of brokerage charges by different Depository Participants SNO.20% 0.20% 0.02% 0.35-0.08% 0.25-0.20% 0.07-0.05-0.06% 0.25% 0.25% 0.COM IL&FS UTI SECURITIES KOTAK SECURITIES SHAREKHAN INDIABULLS SECURITIES LTD.20% 0.03% 0.08% 0.10-0.75% 0. Local Brokers’ charges are the lowest among these.30-0.30-0.03% 0.65-0.40-0. Many of them are free.25% 0.30% 0.03% Brokerage Charges on Intraday settlement 88 .50-0.30-0.03% 0.10% 0.08% 0.10-0.

NO.COM IL&FS UTI SECURITIES KOTAK SECURITIES SHAREKHAN INDIABULLS SECURITIES LTD.com is not negotiable (according to slab-rate). Brokerage charges of almost all the broking firms are negotiable according to the potential of the customer. But brokerage charged by icicidirect. 7 8 9 10 11 12 13 ANAGRAM INDIAINFOLINE ALANKIT ASSIGNMENT MOTILAL OSWAL ANANDRATHI FORTIS HEM SECURITIES Nil 4t Nil Nil Negotiable 4t – 5t Nil 5t 6t – 10t 10t 5t 4t 8t 10t Nil Nil 4t 4t Depends on volume 4t 4t – 20t Depends on volume 10t 6t Depends on volume 8t – 15t 89 . Name Of DP Margin on Delivery Margin on Intraday settlement 1 2 3 4 5 6 ICICI DIRECT.  In Alankit and Fortis brokerage is negotiable up to any level. is encouraging the investors to trade more by charging less brokerage as compared to other competitors. Comparison of margin limits given by different Depository Participants S.  Indiabulls Securities Ltd.

25000 minimum.  And in Indiabulls Securities it is Rs. on the other hand some are allowing their customer to trade up to any limit. 5000. which is very risky. Hem Securities requires Rs. 10000 and in Indiainfoline it is Rs. 500. 25000 as a minimum balance in trading account. One cannot trade through Hem Securities without having Rs. 90 .  In UTI Securities it is Rs.  Most of the broking firms do not provide margin on delivery.

5 ANALYSIS AND INTERPRETATION 91 .

This data often takes the form of records of group discussions and interviews. and by which the emergent knowledge is applied to clients' problems. the researcher looks for patterns and insights relevant to the key research issues and uses these to address the client's brief. OCCUPATION CLASSClass No. Of. re-framing or otherwise exploring it. but is not limited to this. and through complex activities of structuring. Through processes of revisiting and immersion in the data. Q1. Respondents 60 10 30 Business class Service class Professionals occupation wise classification 70 % of respondents 60 50 40 30 20 10 0 Business class Service class class Professionals Percentage of respondents (%) 92 .The process by which sense and meaning are made of the data gathered in qualitative research.

93 . This depicts that the maximum no. (42%) of persons belongs to the age group of below 35 years. AGE-WISE DISTRIBUTION Age Below 35 35-45 46-55 Above55 No. of investors belongs to the age group of below 35 years.Q2. of Respondents 42 24 20 14 age wise classification 45 40 % of respondents 35 30 25 20 15 10 5 0 Below 35 35-45 46-55 Above55 Age range Percentage of Respondents (%) Interpretation -This bar chart depicts the percentage of the respondents belonging to different age groups like 21 no.

of the respondents belonging to different income groups like 18% of persons belongs to the income level of below 10000 rupees per month. 30000 Above Rs. 30000 20000 30000 income range % of respondents Percentage of Respondents (%) Interpretation . 20001 to Rs.10000 Rs.Q3. of investors are those who lies in the income group of above 30000. 20000 Rs. Maximum no. 20001 above Rs.10000 to Rs.This bar chart depicts the no. of Respondents 18 22 26 34 income wise classification 40 35 30 25 20 15 10 5 0 Below 10000 Rs. 30000 No. 94 . to Rs. INCOME RANGE- Monthly Income Below 10000 Rs. to Rs.

Q4. OF RESPONDENTS 30 32 26 12 PERCENTAGE OF RESPONDENTS (%) % of respondents 40 30 20 10 0 020% 2040% 40. HOW MUCH PORTION OF YOUR SAVING DO YOU INVEST/WOULD INVEST IN SHARE MARKET- % OF INVESTMENT 0-20% 20-40% 40-60% Above 60% NO.Majority of the respondents say that they would like to invest in share market up to 20% to 40% of their savings. 95 .Above 60% 60% PERCENTAGE OF RESPONDENT S (%) % of investment Interpretation .

96 .Like 19 person out of 50 are having the experience of less than 2 years.Q5. OF RESPONDENTS 38 28 22 12 Less than 2 2-3 3-4 Above 4 PERCENTAGE OF RESPONDENTS (%) 40 35 % of respodent 30 25 20 15 10 5 0 1 2 3 4 experience in year PERCENTAGE OF RESPONDENTS (%) Interpretation -This bar chart depicts the no. of the respondents having the experience of online trading . This data shows high surge in investment trend in equity market in recent 2 years.EXPERIENCE IN SHARE TRADE EXPERIENCE (IN YEARS) NO.

TAKING THE FACTORS LIKE SECURITY.6. eq 97 ui tie s/ de r ba iv a tiv es s . RATE OF RETURNS AND TIME IN CONSIDERATION WHICH AMONG THE FOLLOWING YOU RATE AS PER THE BEST OPTIONAvenues bank FD’s small saving schemes bonds equities/derivatives mutual funds Respondents 14 6 24 32 24 Percentage of Respondents (%) 35 % of respondents 30 25 20 15 10 5 0 Percentage of Respondents (%) m es FD ’s nd he bo nk sc in g av ls sm al investment avenues Interpretation .Majority of the respondents rated equities / derivatives as the best option among the factors like security. rate of returns and time consideration.

high return 100 % return NO. Like 14% are having the opinion that in equity market there is high risk and less return.INVESTOR’S PERCEPTION ABOUT SHARE MARKET INVESTOR’S VIEWS 100 % risk High risk less return Low risk . 98 .Q7. high return 100%return Returns Interpretation -This bar chart depicts the percentage of the respondents having different opinion about equity market. Maximum no. of persons are having the perception that the equity market gives the 100% return on investment. OF RESPONDENT 15 20 21 44 45 40 35 30 25 20 15 10 5 0 100%risk high risk less return low risk.

99 . AND THEN WHAT ARE THE SOURCES YOU TRUST UPON MOST- SOURCES Market tips by securities T.Majority of the respondents say that if their base is to choose the scrip is market calls/market tips.Q8. T. channels. IF YOUR BASE TO CHOOSE THE SCRIP IS MARKET CALLS/ MARKET TIPS. then the sources they will trust upon are share brokers.V. OF RESPONDENT 8 46 46 information sources 50 45 40 35 30 25 20 15 10 5 0 Market tips by T.V channels securities sources stock brokers % of respondents PERCENTAGE (%) Interpretation .V channels stock brokers NO.

Majority of the respondents say that 30% or less percent of market tips are correct according to them.Q9. % of respodent 100 . UP TO WHAT PERCENT MARKET TIPS ARE CORRECT ACCORDING TO YOU - INVESTORS VIEW 30% or less 30%-50% 50%-60% More than 60% NO. OF RESPONDENT 68 10 10 12 PERCENTAGE (%) 80 70 60 50 40 30 20 10 0 30% or less 30%-50% 50%-60% More than 60% investors view PERCENTAGE (%) Interpretation .

101 . OF RESPONDENT 25 20 20 18 8 9 25 20 15 10 5 0 Indiabulls India info line ICICI direct Karvy Motilal oswal Sharekhan Interpretation -22 % of the respondents out of 50 say that they are engaged with indiabulls sec. ltd. WITH WHICH BROKERAGE HOUSES ARE YOU ENGAGEDBrokerage house Indiabulls India info line ICICI direct Karvy Motilal oswal Sharekhan NO.10.. and minimum 2% with karvy.

WHY YOU HAVE CHOSEN ABOVE BROKING HOUSE - Criteria Low brokerage fess Services Fast query solution No.66 % of the respondents out of 50 say that they are engaged with their brokerage houses because of the low brokerage charges. 102 .Q11. Of respondent 66 18 16 Percentage (%) 70 % of respondent 60 50 40 30 20 10 0 Low brokerage fess Services Criteria Fast query solution Percentage (%) Interpretation .

Q12. HOW WILL YOU RANKED YOUR BROKERAGE HOUSE – Investors view Excellent Very good Good Satisfactory No. 103 . Of respondent 30 20 26 24 How will you ranked your brokerage house % of respondents 35 30 25 20 15 10 5 0 Ex ce lle nt Ve ry go od Sa tis fa ct or y G oo d Percentage (%) investors view Interpretation – 30 % of the respondents out of 50 say that brokerage house with whom they are engaged are excellent and minimum 20% investors says that their brokerage house very good.

104 . ARE YOU SATISFIED WITH SERVICES PROVIDED BY YOUR BROKERAGE HOUSES Investors view YES NO No. Of respondent 60 40 Are you satisfied with services provided by your brokerage houses 70 60 % of respondent 50 40 30 20 10 0 YES investors view NO Percentage (%) Interpretation – 60% of the respondents out of 50 say that they are satisfied with services provided by their brokerage houses.Q13.

6 SWOT ANALYSIS OF ORGANIZATION 105 .

INTRODUCTION OF SWOT ANALYSIS Introduction
It has always been important for a business to know and understand how it fits in and interacts with the surrounding environment on both an internal (office/factory/shop environment) and external view (how your business operates with the outside world). Researching your environment will benefit you and/or your management team by putting you in a position to develop a strategy for both the long and short term.

Analyzing the Business The most influential way of doing this is to perform a SWOT analysis of the company. It is a common phrase used to abbreviate Strengths, Weaknesses, Opportunities and Threats. Each term is a heading for a separate analysis of the business but they can be related as seen below: Strengths provide an insight to your business Opportunities & Weaknesses in your business can cause immediate Threats A guideline of how to carry out the analysis is explained in the next section, but it is important to know that the SWOT analysis is only based upon information that is known by the assessors (you), and is seen as perhaps the more basic approach of analyzing a business’ position: but SWOT is still a powerful tool when looking for immediate benefits.

106

SWOT ANALYSIS OF INDIABULLS

107

STRENGTHS
 Integrated technology platform: - Since the launch of their website, www.indiabulls.com their online trading platform, they have invested in building a technology platform. They have also developed software called ―power Indiabulls‖. Their trader terminal is an application which allows customers to trade on both the BSE and the NSE, has features like live intra-day tick by tick charts, historical charts, price alerts and other features. The features allow them to seamlessly integrate across delivery channels, online or offline through branches or telephone.  Pan India distribution network: - They have 640 branches across India. These branches help in customer acquisition as well as customer service. Their distribution network is well spread to capture the target audience and cater to the needs of their potential customers.  Relationship manager facility: - This is one of the unique services that Indiabulls offer’s its customers. Every customer is provided with a relationship manager, where in the customers can contact these managers at anytime of the day to get information on the market or get their queries clarified.  Growth rate: - The Company is growing at a very rapid rate, from 25 branches in the year 2003 it has grown to 650 branches in the beginning of 2007. Not only has it seen a fast growth rate in the number of branches but also it has grown in the number of clients and the employee strength. They have a customer base of more than 450,000 and over 4500 relationship managers. Indiabulls has been rated as the ―Fastest Growing Large Cap Company‖ in India in a report by Business Today magazine in April, 2006.  Power Indiabulls has developed into brands: - Indiabulls.com and power Indiabulls which is their software are well known brands amongst retail investors across India. In all the cities that they have expanded into, they have been able to leverage upon brand awareness and have established a customer base.

108

Their growing client base and market share have increased their market presence and brand recognition has enhanced their profitability. etc. Standard Chartered Bank.  Strong market presence and increased market share: . insurance and IPO distribution. These managers offer personalized services to their customers and help to build strong and continuing relationships with them. Thus Indiabulls is not dependent on any single of its subsidiary for survival and failure of any one subsidiary will not have an adverse effect on the company as a whole. depository services to cater to the specific needs of the retail and institutional investors thus providing all these services in a single platform.  Diversified business model: -Our Company and our subsidiaries offer various financial services and products ranging from equity. for easy mobilization of funds of the customers. The marketing associates help the company in client acquisition at minimal cost and they also help the company and its subsidiaries in increasing their penetration into smaller towns and cities. ICICI Bank. Their brand and profitability allows them to recruit good and efficient employees. compensate them attractively and provides the flexibility for them to invest in the business and technology systems these attributes in turn has a positive effect on the growth of the company. 109 .their relationship manager channel offers a single point contact to all their retail customers. F & O and wholesale debt.  Strong banking relations and credit ratings: . Strong sales and marketing teams that deliver market leading product innovation: .Indiabulls has banking relation with some of the major banking institutions in the country such as HDFC Bank.

WEAKNESSES  Lack of a banking arm: . where as the stock market provides a good scope for making good returns. The evolution in Ind ia’s demographic setup with a median age of 24 years and higher consumption expenditure is expected to have a virtuous cycle effect by improving the economic growth and per capita income which would result in higher savings and investments. OPPORTUNITIES  Changing demographics with higher disposable income: . 110 . Any events that harm these relationships including the loss of their relationship managers may lead to the loss of client.. Whereas a few of its competitors like HDFC securities. ICICI securities. post office deposits etc. This gives them a limited interest rate on their investment.  Loss of relationship managers leads to loss of clients: . Kotak securities. The options they have for investments are fixed deposits.India is one of the fastest growing economies in the world.Indiabulls does not have a banking arm of its own which otherwise would have helped the company to a large extent. etc have their own banking arms which make the transactions easier and simpler. It has a large and rapidly growing middle class of 300 million people with increasing levels of discretionary income available for consumption and investment purposes.Their business is dependent on the team of relationship managers who directly manage client relationships.

The sector has witnessed a transformation over the last decade as a result of the economic liberalization which started in 1991. who earlier had to make calls to their brokers in order to trade. including those involving India or other countries could adversely affect national economy or world economy as a whole. and want to take charge of their personal investment decisions. other traditional investment opportunities are losing their attraction. As a result of falling interest rates.  Market size and Characteristics: -India is a large and growing economy with rapidly expanding financial services sector. The projected growth rate of real GDP is greater than 9% per annum with higher growth in many sectors such as financial services. such as computers and telephones. This saves the time of the investors. These people are willing to use advanced communication tools.Terrorist attacks and other acts of violence or war. Indian financial sector presents a huge retail finance opportunity. THREATS  Economic slowdown: . Travel restrictions as a result of such incidents may have adverse affect on the ability to operate effectively. Thus. with the use of the computers and internet the stock market trading has become fast. The use of technology is influencing more people to invest in the stock market. Indian investors are getting attracted towards alternate investments such as the equity markets and are looking for newer financial products. The traders can place orders through the internet and execute them. This will result in an economic slowdown 111 . Now. bank deposits. Such act may also result in a loss of business confidence. India is the world’s 12th largest economy in dollar terms and the 4th largest in PPP terms. Rapid penetration of internet and computers: -Technology is vastly used in stock market trading.

The stock market is very unpredictable with fluctuations. which are having a wide presence and strong brand name. As the company enters new markets their bound to face additional competition from those who have longer operating history have grater retail and brand presence than Indiabulls.  Substitutes: . With the change in government. Stock market falls will have a cascading effect on the investors and economy of the country. This does not allow the company to freely fix their prices due to the threat of competition. Unless and until the market stabilizes the investors will be very hesitant to invest in the market.  Low product differentiation: . this may prompt many people to invest in fixed deposits.  Competition: - Indiabulls faces significant competition from companies seeking to attract client’s financial assets. posy office deposits.The Indian stock market is very volatile in nature and is capable of shedding or gaining several points in a single day. there is no assurance that these liberalization polices will continue in the future. If the company is unable to manage its business it might impede their competitive position and their profitability.Various alternative forms of investment including fixed deposits with banks and post offices etc act as substitutes to retail broking products and services. 112 . etc. including relaxing restriction on the private sector. etc in order to avoid risk.  Volatile movement in market indices: .The retail broking services provided by the various companies are homogeneous with very low product differentiation. Any political instability could delay the economic reforms and could have adverse effect on the market. including traditional and online brokerage firms. mutual fund companies.The government of India has pursued the policy of economic liberalization. Political instability in the country: . which in turn reduces their profit.

7 CONCLUSION 113 .

as explained in accounting a high turnover will always leads to high cost. employees are given high target of sales and those employees who are uncomfortable with that leave the organization. 2004 and surprisingly it is under process of doing it again in year 2007. There is another problem that exists is. this transfer of data takes place only ones when market opens and for the rest of the day Relation Manager has to depend on their own. this shows that there is further scope for its growth. The head office of Indiabulls is in Gurgoa (Haryana). customer are given regular updates of stock market on daily basis they are quiet satisfied with it. Indiabulls Securities Ltd is a company which is having maximum number of branches and largest client base but stands second in term of brokerage generation. This cutting of cost center is not done directly. Since formation of Indiabulls in year 2000 Indiabulls have adopted strategy of downsizing twice in year 2002. Apart from this it has been found that Indiabulls is having high labor turnover ratio. Hiring of technical analyst for branch will be too costly so the best way will be to improve the flow of information. The level of this problem is not serious & neither customer are aware of it. The above given situation brings us to the conclusion that Indiabulls is incurring high salary expenses with high labor turnover.CONCLUSION This conclusion relates with not what is written in the report rather. more attention is given to technical analysis of stock which will help Relation Managers to deliver calculated information to their customer. which in turn is given to customer. it goes beyond that. Thus if this flow of information is enhance customer as well as Relation Manager will reap more benefits. on daily basis it sends tips to all its branches through mail. lack of good guidance to clients so that they can make better decision while making investments. 114 . Thus customer satisfaction can enhance if. This finally led us to believe that Indiabulls can become a better company if it handles the above mentioned issue efficiently.

8
RECOMMENDATION AND SUGGESTION

115

RECOMMENDATION AND SUGGESTION
These are following problems that were observed while staying in Indiabulls which also includes recommendations. 1. As per NSDL guideline clients have to change their password every 15 th day. It becomes very difficult for a client to change and remember a new password after every 15 days. It increases the work of Relationship Manager also as he has to tell the clients their new password every time. Recommendation Since this guideline of changing the password by NSDL is not mandatory to follow. Other brokerage houses like ICICI DIRECT, HDFC, Share Khan, UTI etc. are not following this guideline. It is advisable for Indiabulls to reconsider this rule once again. It may be good for the company if they modify this guideline in terms of increasing the time limit from 15 days to 45-60 days. Another thing that can be done is software could be made in such a way that the client can directly send request of renewing password to the main server. The main server will automatically generate new password and send it to client’s mail ID. For this the client has to make sure that his/her mail Id is updated regularly.

2. Both Screen Based and Power Indiabulls software do not show purchased price and current market price of underlying on same screen at a time. To see original purchased price of underlying, a client has to check from his/her transaction history. That’s way system does not show percentage gain/loss of client on screen. Recommendation It would be easy for the client to get this advantage on his/her screen. Consider this recommendation while updating the software

116

3. Relationship manager is the person who takes care of client’s account. Due to
frequent changes in the Relationship manager a client is in dilemma that to whom he/she is supposed to contact. In general when the client calls, he/she is not aware about his/her Relationship manager. This can be due to the high attrition rate.

Recommendation Client should be informed through Phone, E-mail by the new Relationship manager personally. Confirmation should be sent from the H.Q to the client about his/her new Relationship Manager.

4. Margin Product is the facility provided by Indiabulls through which clients can utilize fund beyond their capacity of cash margin + stock margin on the basis of predetermined rate of interest. Most of the clients are not aware about this facility Recommendation Explain the clients through a simple example of how margin product works. A format of the same can be prepared and send through E-mail to every client.

5. It is observed that majority of clients who have done trade in Futures and Option Market, are in loss. Due to the lack of proper strategies most of the clients losing their money in this segment. Recommendation Prepare some of the presentations in series starting from primary level to advanced level on Futures and Option Market and send it to every client who has signed Futures and Option agreement in time to time.

6. Most of the Brokerage Houses are using advertising strategy for promoting their products. This is in form of print ads, TV commercials, holding seminars, Web advertising etc. For example Share Khan advertises its product by placing its advertisement on different other web sites. Some other companies

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For example.like An and Rather. Web advertising (Placing ads into other popular web sites). people can be called in the office at weekends. SMS promotional schemes. Consider this recommendation while updating the online software in future. it would be beneficial for Indiabulls customers if they are provided with this facility online. Whereas all other competitors are providing this facility online Recommendation Since most of the companies are coming with their IPOs/FPOs. By conducting seminars. Banners and Hoardings. 118 . This can be done through. Indiabulls does not provide IPO subscription facility through its online software. Etc 7.      Print Media. Stock Holding Corporation use seminars as a means to promote their product Recommendation It would be an advantage if Indiabulls follows some kind of advertising strategy. Many clients are facing this problem as they have to go through paper work subscription method. conducting presentations.

This will help the company to read the market better and will also be in a better position to understand the needs of the customers. especially in areas were commercial crops are grown and the standard of living is high. Thus it acts as a mental barrier for potential customers. Tapping Rural Market: The Indian rural investors market are relatively untapped. This can be extremely beneficial for Indiabulls in the long run. Reduce the initial account opening charges: The charge for opening a trading and demat account in Indiabulls securities is high compared to its competitors. 119 . These people do not have much option to invest other than banks and post offices. Hence Indiabulls should concentrate more on advertising through print and electronic media. with only small and private firms meeting the current demand. especially through electronic media. Invest more on R&D: Indiabulls should concentrate on its research and development since most of its competitors are investing on R&D. Its competitors like Sharekhan. It can reduce the brokerage charges for large investors which will encourage them to invest more in the company. This influences the potential investors to open their account with another company which provides the same at lower prices. Indiabulls Securities can gain the ―First Mover Advantage‖ over its competitors. Hence Indiabulls should consider reducing their account opening charges. who tend to overlook all other benefits offered by Indiabulls.SUGGESTIONS Aggressive Promotions: Indiabulls Securities compared to its competitors concentrates less on advertising and promotions. Bring in more product differentiation: Product differentiation here means that Indiabulls securities should bring in more customized services and more value proposition for large investors. ICICI and Kotak are advertising aggressively through media.

motilaloswal. Jha Mithileshwar ―Marketing Management‖ 12e.indiabulls. • Kothari C.. Pearson Education.com/Articles/ http:/www. NEW DEHLI. karvy. TATA MCGRAW HILL.wikipedia.com http://www. Fourth Edition..org 120 .com http://www.indiainfoline.arthamoney.BIBLIOGRAPHY  Books: • Kotler Philip. • • Ramaswamy & Namakumari : MARKETING MANAGEMENT –MACMILLAN NEW DELHI.com http://www.dnb.com http://www. Wishwa Prakashan.in/EquityBroking https://www. CONCEPT AND CASES.co. Koshy A. Subhash C. icicidirect.com http://www. kotaksecurities. Research Methodology Method &Techniques.com/securities/ http://www. Website http://www. sharekhan. Mehta: MARKETING ENVIRONMENT.R.com http://www. New Delhi. Keller Kevin L..

8 APPENDICES 121 .

10000 to Rs. 20000 (D) Above Rs. Name : ________________________________________________ Address: _______________________________________________ _______________________________________________ 1.Jaipur.YOUR INCOME RANGE(A) Below 1000 (C) Rs. YOUR OCCUPATION CLASS(A) Business class (B) Service class (C) Professionals 2. 20001 to Rs. 30000 (B) Rs. RATE OF RETURNS AND TIME IN CONSIDERATION WHICH AMONG THE FOLLOWING YOU RATE AS PER THE BEST OPTION(A) Bank FD’s (C) Bonds (E) Mutual fund 122 (B) Small saving schemes (D) Equities/derivatives . HOW MUCH PORTION OF YOUR SAVING DO YOU INVEST/WOULD INVEST IN SHARE MARKET (A) 0-20% (B) 20-40% (C) 40-60% (D) Above 60% 5.QUESTIONNAIRE I am Rohit Jain A student of MBA 4th sem of AIMS Mansarover. TAKING THE FACTORS LIKE SECURITY. EXPERIENCE IN SHARE TRADE (A) Less than 2 (B) 2-3 (C) 3-4 (D) Above 4 6.The information provided by you will kept confidential. 30000 4.AGE GROUP(A) Below 35 (B) 35-45 (C) 46-55 (D) Above 55 3.I am conducting this research as part of MBA curriculum.

UP TO WHAT PERCENT MARKET TIPS ARE CORRECT ACCORDING TO YOU – (A) 30% or less (B) 30%-50% (C) 50%-60 (D) More than 60% (B) T.7. Channels 10. AND THEN WHAT ARE THE SOURCES YOU TRUST UPON MOST (A) Market tips by securities (C) Stock broker 9. WITH WHICH BROKERAGE HOUSES ARE YOU ENGAGED(A) Indiabulls (E) Motilal oswal (B) India infoline (F) Sharekhan (C) Icici direct (D) Karvy 11 WHY YOU HAVE CHOSEN ABOVE BROKING HOUSE – (A) Low brokerage charges (C) Fast query solution 12. INVESTOR’S PERCEPTION ABOUT SHARE MARKET (A) 100% risk (C) Low risks. IF YOUR BASE TO CHOOSE THE SCRIP IS MARKET CALLS/ MARKET TIPS. HOW WILL YOU RANKED YOUR BROKERAGE HOUSE (A) Excellent (B) Very good (C) Good (D) Satisfactory (B) Services 13. high return (B) High risk less return (D) 100% return 8. (B) No WHAT PROBLEM DO YOU FACE WITH BROKERAGE FIRM__________________________________________________ __________________________________________________ Thank you 123 . ARE YOU SATISFIED WITH SERVICES PROVIDED BY YOUR BROKERAGE HOUSES (A) Yes 14.V.

10 F A B C C F B D E B F C F C A D D B A D D F B E C A D B B A D B C A D B F A B E C Q.4 B B A D C B B D C A A C D B B C B D A A A A B D C D A B C C B C B B A C B C C B A Q.7 D C D C D B A D B B D D B D D D B D A D D C D C D B C D C D D D A A A B D C D D B Q.9 A A C D A C A A A C A D A A C A B A C D A D C A A B A A A C A A A A D A C B A A D Q.11 A A A C C A A B A A A A B A A A B C A A B A B C C A A A A C B A A A A B A A B A B Q.12 A C C A C C A B B A B C C A C B B A C D A B A C D B A D B A C A C C D A B C D A C Q.8 C A C B B C C C B B A C B C B A C B B C C B C B C C B C B C B C B C B B C B C A B Q.1 A C A C A C C B A C A A A A C A A C A C A B A C A A A C A A C A C B A C C A A C C Q.3 D D D B D A D D A D D D B D C B D C A D C D C B D A C D D C B D C D A A C C D D B Q. no.5 A B A B A A B B A A A B C C B A B C B A C A A B A A C A C B A A B C B C C B A B C Q.Sr.13 A A A A A A A B B A B A A A A B B A A B A B A A B B A B B A A A A A B A B A B A A 124 .6 E C B C D B C A E A C D C E D D D C C A E A C D D A C D E C E A E D A E B C D C C Q.2 A A A A D A C D A B C A A B C A A C C B C B D A A A A C B C B D C B A A C B A D A Q. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 Q.

42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 A B C A B A C B A C C C A A C A A A B A B C A A A B A C A A A A C A C A C A A A A A A A D B C C A D A C A D A A C A B D C C B A A B A C A B C A C B D A A A A B B D B B A B D A B C D D D D C D B D D B A B D A C D B B B D B B D A B C B C A B A C B C C A D C C B A B B B B A B A C C A C C A B C C A B C C B A C B C B A B A B C A C A B D A D A D A C C A B A B A A C D A B A B A D A D A A B C A B A D C D B C A A D A A C B C B A A D A A E D A E C D D D E C D C D D E D E A E D E A D C D E C D A E C D B E C D A C E D E B C A D D B A D C A D C D C D B A B D B B D B A B D A C D C A D D C C A D B C D B D B A B C B C B B B A B C B C B C B B A B B C C C C C B C B C B C B C A C B B B C C B C B C C A A A B A A 0 A A A A A C A A A B A A A A D A A A A B A A A B A A A B A A D A A A A C E F A D A A F C A A B A C C B C A B C C A C A D A B F A D F B A C F A A B F A A D A A A C A C A A B A A A A C C A A B A B A A B A A A B A C A B A A A A A B A A C A A B C C A C C A D A C C A A D A B B D D C B D D C A C D A D B A D A B A D A D D B D B A C D A A A A A A A A A B A B A B B A B A B A B A A B A A B B A B A B A B A B A B B B A A A 125 .

3 18 22 26 34 Q.13 60 40 TOTAL 100 100 100 100 100 100 100 100 100 100 100 100 100 126 .6 14 6 24 32 24 Q.10 25 20 20 18 8 9 Q.1 60 10 30 Q.11 66 18 16 Q.4 30 32 26 12 Q.8 8 46 46 Q.7 15 20 21 44 Q.9 68 10 10 12 Q.12 30 20 26 24 Q.2 42 24 20 14 Q.85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 C A A C A A B A C A A A C A A A A A B B D B A A A B B C A D A D A B A C D C C A B A C C C A B C B D B D D B A C A A B C A C A A B C A B D B C C C A D B D B D D D A D C D E C E D E D C E D B D C B D D C D D C D D B A D C D C B C B C B C B C B C A C B C B C D A B A A A D A A A A C A A D A D B D A B D C D B C D F C D C B A A C C A A A A B A A A C A A A A C A B D D B A B D A C D B C D A B A B B A B A B A B A B B A B A B C D E F Q.5 38 28 22 12 Q.

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