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“COMPARITIVE ANALYSIS OF SHAREKHAN LTD.AND EQUITY RESEARCH OF DIFFERENT SECTOR COMPANIES”
“ SHAREKHAN LIMITED”
A PROJECT SUBMITTED IN PARTIAL FULFILLMENT FOR AWARD OF MASTER OF BUSINESS ADMINISTRATION (TWO YEARS FULL TIME PROGRAMME)
Submitted By ARIJIT MONDAL Regn no:
I, Arijit Mondal hereby declare that this project report Entitled has been carried out by me under the able guidance of Manager –
Asst. Marketing The Project is
being submitted in partial fulfillment for the award Of “ Master of Business Administration (industry Integrated)” MADURAI KAMARAJ UNIVERSITY, MADURAI. The context of this support is based on the information collected by me during the project tenure at
I acknowledge my sincere gratitude and indebtedness to Mr. R.K.Pushkarna (Director,
New Delhi) for giving me an opportunity toWork on the project entitled “Services offered by Sharekhan & a comparison with other players in the market”. I would like to thank the management of SHAREKHAN LIMITED, for giving me an opportunity to be a part of their esteem organization and enhance our knowledge by granting permission to do our summer training project under their guidance.
I am grateful to our guide, for his invaluable guidance and cooperation during the course of the project. He provided us with his assistance and support whenever needed that has been instrumental in completion of this project.
I would also like to express my heartfelt thanks to Ms********** ( Manager Corporate Relations) for her constant enthusiastic encouragement and valuable suggestions without which this project would not been successfully completed.
ABSTRACT The project is being done to trained the people about the whole procedure essential to open an online trading account couple with demat account. The project will help in exploring the area where there is the feasibility of acquiring more new investors. It would also help in knowing the various competitors of the industry and exploring the areas through which competitive advantage could be obtained. The report is divided into various sections 1. Company Profile: This part recognizes the achievements and rewards the company has achieved, it also gives little insights into what company offers to the Corporate and the Consumers. This section also describes the kind of technology used. 2. About Online trading account Since the project leads to opening of online trading account, this section gives the details of what all services Sharekhan offers to the consumer. This section gives the detail of how
Learning about Dematerialization This section tells you about different concepts regarding dematerialization. 3. The section contains the documents which are required to open an account. This section gives the detail of the different conditions that have to be met for opening a trading cum demats account. Different formalities for opening demat account This section throws some light over different document as well as hardware and software requirement for opening of online trading cum demat account. 6.different services provided by the others online trading account and how is Sharekhan superior from them. How you can get your security dematerialized? Growth rate of dematerialization etc. Future of online trading in India This section tells you about the different things that will affect online trading. Procedures and requirement for opening a Trading cum demat account. 5. Page 5 . 4.
CONTENTS Introduction Company Profile Introduction to Stock Market Dipository Services offered by sharekhan Online trading Offline trading Dial & trade Comparison between difference e-broking firm Awerness of online customer analysis trading Analysis of questionnaires Charges of share khan Account opening charges Page 6 .
which has over eight decades of experience in the stock broking business. of which 32 are fully-owned branches. Online Trading. Share khan is one of the leading retail brokerage firms in the country. Depository services. Investment Advice. It is the retail broking arm of the Mumbai-based SSKI Group. Mutual Funds. Online IPO's etc.Brokerage charges Software & hardware requirement Conclusion Finding & recommendation Bibliography questionnaires INTRODUCTION My SIP Company is Share khan ltd. Derivatives. Share khan’s ground network includes over 588 centers in 148 cities in India. Page 7 . NSE. Share khan offers its customers a wide range of equity related services including trade execution on BSE.
detailed data and news. This powerful technology complemented by their knowledgeable and customer focused Relationship Managers. Our flagship Sharekhan Professional Network offers real-time prices. intelligent analytics. 80 years of taming Bulls & Bears Page 8 . right at their finger-tips. and electronic trading capabilities.Sharekhan is lead by a highly regarded management team that has invested crores of rupees into a world class Infrastructure that provides their clients with real-time service & 24/7 access to all information and products. THE PARENT ORGANISATION OF SHAREKHAN .
Our research team is rated as one of the best in the country. While the institutional broking division caters to the largest domestic and foreign institutional investors. As the forerunner of investment research in the Indian market. SSKI holds a sizeable portion of the market in each of these segments. SSKI is consistently ranked amongst the top domestic brokerage houses in India. telecom and media. we provide the best research coverage amongst broking houses in India.About SSKI group SSKI group also comprises institutional broking and corporate Finance. Page 9 . Voted four times as the Top Domestic Brokerage House by Asiamoney Survey.
S.SSKI Group Companies • SSKI Investor Services Ltd (Sharekhan) • S. Kantilal Ishwarlal Securities • SSKI Corporate Finance • Idream Productio • SSKI CORPORATE STRUCTURE Page 10 .
Accessibility. Technology.Awards Sharekhan company has got three awards:i. Awaaz award in 2006. BOLT for offline trading. Convenience Page 11 . iii. Mutual Fund Advisory. Knowledge. v. Best Preferred Brokerage House Award from CNBC Channel in 2005. Reasons to choose Share khan Limited Experience. ii. iii. ii. iv. Products offered by Share khan i. Portfolio Management Services. Offline Trade in Commodities. Awaaz award from CNBC Channel in 2004. NEAT for online trading.
j) Enjoy automated portfolio. c) Instant cash transferation. b) Secure Order by Voice Tool Dial-n-Trade. h) On line customer service via web chat. d) Multiple banking option. g) Special personal inbox for order and trade confirmations. Page 12 . e) Automated portfolio to keep track of the value of your actual purchases. Benefits provide by the company a) Free Depository A/C. Customer Service Investment Advice. i) Anything ordering. f) 24 x 7 voice tool access to your trading account.
O. Telecellular Head DSR Head Handling Trainee Payment & File Maintaining Ms. Pradeep. KYC Head Mr. Hema Ms. C. Sripal Morakhiya Mr. Kalyan Raman Mr.E. Jason 6. 3. Mr. Rameshwari Ms. Prem. Jaideep Arora. Owner Director Mr. Mr. Mr. Traun P Shah Mr. 5.Management team of Share khan limited 1. Santosh 7. 9. Shanker Walia. 8. 2. Tarun P Shah. VP (Sales) DP Head Mr. Razia OBJECTIVE OF SIP The Objective of the Report is to map the information required to: Page 13 . 4. Mr.
And how in future they will be befitted from the services offered by Sharekhan . portfolio management services. Page 14 . Study some basics of Technical analysis 3. The Broad objective of the project is to make clients and let them know about the different services offered by the Sharekhan. Analyzing whether the clients of sharekhan are satisfied with its research service or not. 2. Assess knowledge and a profound understanding of the products like demat account. 1.1. 4.2 PROPOSED METHODOLOGY Methodology of the project starts with: • In the first phase we are trained and they teach us different things about market. Study the pattern of research service of sharekhan used by its existing clients by using telephonic and direct survey. Also to convince them about how Sharekhan services out score there rivals. 5. shares trading mutual funds and IPO’s.
in this they ask about the real life problem faced by the customers.• After that they conduct a mock viva. • • • • • • They provide leads and after that we make calls. Maintaining dairy of clients and contacting them at regular basis. Observe the patterns of the scripts. INTRODUCTION TO STOCK MARKET Page 15 . Get the knowledge of technical as well as fundamental methods. Then after that we have to provide details of product and convince them Then we have to visit them and get the formed filled from them. 2.
The process of establishment of stock exchanges gradually spread to other cities of the country. the Charted Merchants Bank. In 1830. used to be. In Bombay. business passed in the acquisition and transfer of banks like the Commercial Bank. there was an increase in the volume of business in corporate stocks and shares. it is called the Ahmedabad Stock Exchange. The large-scale export of cotton was paid for in bullion which poured into Bombay from Liverpool in the form of silver and gold. Now. when the first issue had been made transferable from one person to another. Now. it is called the Bombay Stock Exchange. The first stock exchange in India established in 1875 in Bombay as ‘The Native Share and Stock Broker’s Association’. transacted towards the close of the 18th century.The origin of stock market goes back to the time. Calcutta Stock Exchange. was the third stock exchanges to open in the country facilitate dealing in Page 16 . The second Stock Exchange was started in 1894 at Ahmedabad as ‘Ahmedabad Share and Stock Broker’s Association’ to facilitate the dealing of shares of cotton mills. which opened in 1908. The importance of bullion in the city opened avenues for new ventures for the entrepreneurs. The East India Company was the dominant institution in those days and business in loan securities. when securities represented the property or promise to pay. the Orient Bank of Bombay and other prominent shares of Cotton Mill.
which concentrated more on administration than on development. The government headed by the late Shri Rajiv Gandhi as the Prime Minister in November 1984 initialed the process of liberalization and de-regulation and later Sri P. 1990 Vadodara. Also the public sector was dominating the economy of independent India after 1947. It was the first Act to regulate the stock exchanges in the country.shares of plantation and jute mills. In 1992. Page 17 . Narashima Rao the Prime Minister followed it more vigorously. The stock market activities in India were relatively low key till the beginning of the 80’s mainly because of the alien regime till 1947. Manmohan Sigh as the Finance Minister in July 1991 anticipated that about 25% of the domestic savings would be invested in corporate securities and mutual funds by the end of the current century. As a result the Securities Contract (Regulation) Act of 1956 was enacted in the initial year. 1991 Coimbatore and Bhopal Stock Exchange. in 1982 Pune & Uttar Pradesh.V. Hyderabad (1943). Jaipur & Patna.Cochin Stock Exchange was started. 1986 Mangalore. the OTCEI and NSE started. After this a number of stock exchanges came up in other parts of the country like: Madhya Pradesh (1930). In 1978. in 1983 Ludhiana & Guwahati. Dr. The decade of 80’s however saw the birth of a number of new recognized stock exchanges in the country. Bangalore (1957) etc. As on now India has 22 recognized stock exchanges.
” The Securities that are traded in the Stock Market are defined under section 2(b) of the act as: • Shares Scrip.1 Meaning of stock Exchange:The Stock Exchange has been defined under section 2(3) of Securities Contract (Regulation) Act 1956 as “Any body of individual incorporated or not. Bonds. unnecessary bureaucratic control and government intervention in certain core areas. 2. constituted for the purpose of assisting. Page 18 . Debentures stock or other marketable Securities of a like nature in any incorporated or other body corporate. This policy aimed to shed the load of the public sector. • Government Securities and Rights or interest in securities. regulating or controlling the business of buying.The bold step taken with lot of complexities taken by the Finance Minister had hardly faced any loopholes in the new Industrial Policy. which had shown a very slow rate of return and incurring losses over the years. Stock. selling or dealing in Securities. The reason was the same. All these reforms have led to a pace growth almost unparalleled in the history of any nation.
has a fully automated screen based system that operates in the wholesale debt market segment as well as the capital market segment. Speculators dominate the Indian stock markets. Ready marketability Liquidity Negotiability Control of dealing Protection of interest of investors In India. The Indian capital market is significant in terms of the degree of development. volume of trading and its tremendous growth potential.2. There are 23 recognized stock exchanges in India.2Indian Stock Markets : With over 20 million shareholders. 5. which in the recent past has accounted for the largest trading volumes. The stock exchange index movement cannot indicate the economy’s condition. 3. India has the third largest investor base in the world after the USA and Japan. Over 9. Page 19 .000 companies are listed on the stock exchanges. The stock market is centered on a few stocks. which are serviced by approximately 7. the secondary market is small. including the Over the Counter Exchange of India (OTCEI) for small and new companies and the National Stock Exchange (NSE) which was set up as a model exchange to provide nation-wide services to investors. The main objectives of the stock market are to provide: 1. 2. 4. NSE.500 stockbrokers.
702. It also strives to educate and enlighten the investors by conducting investor education programmes and making available to them necessary informative inputs. Canada and Hong Kong. is now known as "Bombay Stock Exchange Limited" was established in 1875 as "The Native Share and Stock Brokers Association". of India under the Securities Contracts (Regulation) Act.Africa. Korea. Brazil and Chile). It is the first Stock Exchange in the Country to have obtained permanent recognition in 1956 from the Govt. Philippines. Switzerland. Mexico. The Exchange. S. A Governing Board having 20 directors is the apex body. Thailand. accounts for the largest number of listed companies and has also started a screen-based trading system with the introduction of the Bombay On-Line Trading system. This was more than the aggregate total of companies listed in 9 emerging markets (Malaysia. Taiwan. Mumbai. France. It is the oldest one in Asia. The Stock Exchange. which decides the policies and regulates the Page 20 . Germany. Australia. debt and derivatives upholds the interests of the investors and ensures redressal of their grievances whether against the companies or its own member-brokers.3The Bombay Stock Exchange Bombay Stock Exchange (BSE). while providing an efficient and transparent market for trading in securities. It has evolved over the years into its present status as the premier Stock Exchange in the country. which was established in 1878. one of the oldest in the world. It is a voluntary non-profit making Association of Persons (AOP) and is currently engaged in the process of converting itself into demutualised and corporate entity. UK. even older than the Tokyo Stock Exchange. 1956. The number of companies was also more than the that in developed markets of Japan.2. The number of companies listed on the BSE at the end of December 1994 was 4.
and has witnessed several innovations in products & services viz. market of debt and derivative instruments and intensive use of information technology. market practices and trading volumes. 2. demutualization of stock exchange governance. It has set up facilities that serve as a model for the securities industry in terms of systems. six public representatives and an Executive Director & Chief Executive Officer and a Chief Operating Officer. professionalization of trading members counterparty risks. who are from the broking community (one third of them retire ever year by rotation). The market today uses state-of-art information technology to provide an efficient and transparent trading. fully automated screen-based trading system with national reach. three SEBI nominees. The Exchange has brought about unparalleled transparency. NSE has played a catalytic role in reforming the Indian securities market in terms of microstructure. clearing and settlement mechanism. Page 21 . practices and procedures. dematerialization and electronic transfer of securities. The Governing Board consists of 9 elected directors. compression of settlement cycles.affairs of the Exchange.4 The National Stock Exchange The National Stock Exchange (NSE) is India's leading stock exchange covering various cities and towns across the country. speed & efficiency. NSE was set up by leading institutions to provide a modern. securities lending and borrowing. screen based trading. safety and market integrity.
Currently. It is the largest stock exchange in India and the third largest in the world in terms of volume of transactions. cover more than 1500 cities across India.380. As of 2006.774 crore INR making it the second-largest stock market in South Asia in terms of market-capitalization. NSE is mutually-owned by a set of leading financial institutions. the NSE VSAT terminals. 2799 in total. In March 2006.The National Stock Exchange of India Limited (NSE) is a Mumbai-based stock exchange. NSE has the following major segments of the capital market: • • • Equity Futures and Options Retail Debt Market Wholesale Debt Market NSE also set up as index services firm known as India Index Services & Products Limited (IISL) and has launched several stock indices. insurance companies and other financial intermediaries in India but its ownership and management operate as separate entities.5 Market Index Page 22 . the NSE had a total market capitalization of 4. banks. including: • • • • • S&P CNX Nifty CNX Nifty Junior CNX 100 (= S&P CNX Nifty + CNX Nifty Junior) S&P CNX 500 (CNX 100 + 400 major players across 72 industries) CNX Midcap (introduced on 18 July 2005 replacing CNX Midcap 200) 2.
An index is a number. A stock exchange index represents the change in value of a set of stocks. Then there is a BSE national index and BSE 200. 2. which captures the behaviour of overall equity market. A market index is very important as a barometer of market behaviour. industry representation.6 The Sensex and Nifty In India the most popular indices have been the BSE Sensex and S&P CNX Nifty. It represents 14 major industry groups. which constitute the index. A good stock exchange index is the one. It should represent the market. trading in index futures has only commenced on the BSE Sensex. While the BSE Sensex was the first stock market index in the country. Example of two most famous indexes is S&P CNX NIFTY and SENSEX. 1995. trading frequency etc. it should well diversified and yet highly liquid. Nifty was launched by the National Stock Exchange in April 1996 taking the base of November 3. However. The Nifty index consists of shares of 50 companies with each having a market capitalization of more than Rs 500 crore. and as an underlying in derivative instruments like index futures. which measures the change in a set value over a period of time. The BSE Sensex has 30 stocks comprising the index which are selected based on market capitalization. It represents 30 large wellestablished and financially sound companies. Page 23 . The Sensex represents a broad spectrum of companies in a variety of industries.
In a depository system. They also benefit in terms of efficiency of the process. issued in physical form.DEPOSITORY The depositories are important intermediaries in the securities market that is scrip-less or moving towards such a state. 1992. All the players have to be conversant with the rules and regulations as well as with the technology for processing." The principal function of a depository is to • • Dematerialize securities and Enable their transactions in book-entry form. the investors stand to gain by way of lower costs and lower risks of theft or forgery. In India. are destroyed and an equivalent number of securities are credited into the beneficiary owner's account. etc. the Depositories Act defines a depository to mean “a company formed and registered under the Companies Act. Dematerialization of securities occurs when securities. The intermediaries in this system have to play strictly by the rules. Page 24 . 1956 and which has been granted a certificate of registration under sub-section (IA) of section 12 of the Securities and Exchange Board of India Act. But the implementation of the system has to be secure and well governed.
A depository established under the Depositories Act can provide any service connected with recording of allotment of securities or transfer of ownership of securities in the record of a depository. fake securities. thefts etc. A depository cannot directly open accounts and provide services to clients. Elimination of risks associated with physical certificates such as bad delivery. Reduction in paperwork involved in transfer of securities. intermediaries called stock-brokers and sub brokers. which is popularly called as the ‘stock market’. BENEFITS OF DEPOSITORY SERVICES: A safe and convenient way to hold securities. NEED AND OBJECTIVE OF A DEPOSITORY SYSTEM The present system of settlement based on physical delivery of paper certificates was probably adequate in the past when there was small number of investors participating in the transaction of the capital market. even one share can be sold. Page 25 . delays. Any person willing to avail of the services of the depository can do so by entering into an agreement with the depository through any of its Depository Participants. Increasing market and operational inefficiencies features the old system of stock trading and settlement. Reduction in transaction cost. No stamp duty on transfer of securities. This section of the market comprised the secondary market. No odd lot problem. Nomination facility. comprising 23 recognized stock exchanges and is the organized market regulated by the Securities and Exchange Board of India (SEBI) for purchase and sale of securities through. Immediate transfer of securities..
Automatic credit into demat account of shares. NSDL aims at ensuring the safety and soundness of Indian marketplaces by developing settlement solutions that increase efficiency. we play a quiet but central role in developing products and services that will continue to nurture the growing needs of the financial services industry. arising out of bonus/split/ consolidation/merger etc. NSDL works to support the investors and brokers in the capital market of the country. National Securities Depository Limited Although India had a vibrant capital market which is more than a century old. In the depository system. the first depository in India. Using innovative and flexible technology systems. Holding investments in equity and debt instruments in a single account. The enactment of Depositories Act in August 1996 paved the way for establishment of NSDL. This depository promoted by institutions of national stature responsible for economic development of the country has since established a national infrastructure of international standards that handles most of the securities held and settled in Dematerialized form in the Indian capital market. which is more or less Page 26 . minimize risk and reduce costs. the paperbased settlement of trades caused substantial problems like bad delivery and delayed transfer of title till recently. securities are held in depository accounts. THE MAIN DEPOSITORY PLAYERS IN INDIA 1. At NSDL. Change in address recorded with DP gets registered with all companies in which investor holds securities electronically eliminating the need to correspond with each of them separately. Transmission of securities is done by DP eliminating correspondence with companies.
the largest stock exchange in India.the largest development bank of India. the cost of transacting in a depository environment is considerably lower as compared to transacting in certificates. Issuing companies and their Registrars and Share Transfer Agents. Some charges are payable by Issuers also. The entire integrated system (including the electronic links and the software at NSDL and each business partner's end) is called the "NEST" [National Electronic Settlement & Transfer] system. Unit Trust of India (UTI) . Clearing corporations/ Clearing Houses of Stock Exchanges. Central Depository Services Limited Page 27 . Charges NSDL provides depository services to investors and clearing members through market intermediaries called Depository Participants (DPs). who are free to have their own charge structure for their clients.the largest mutual fund in India and National Stock Exchange of India Limited (NSE) . Consequently. This method does away with all the risks and hassles normally associated with paperwork. Transfer of ownership of securities is done through simple account transfers. 2. NSDL does not charge the investors and clearing members directly but charges its DPs. NSDL charges to DPs are uniform for all DPs. Business Partners NSDL carries out its activities through various functionaries called "Business Partners" who include Depository Participants (DPs). NSDL is electronically linked to each of these business partners via a satellite link through Very Small Aperture Terminals (VSATs) or through Leased land lines.similar to holding funds in bank accounts. Some of the prominent banks in the country have taken a stake in NSDL. Promoters NSDL is promoted by Industrial Development Bank of India Limited (IDBI) .
1999. started in July 1999. certificate of deposits etc. Ahmedabad. Some of the important milestones of CDSL system are: • • • • CDSL received the certificate of commencement of business from SEBI in February. BSE has been involved with this venture right from the inception and has contributed overwhelmingly to the fruition of the project. etc have established connectivity with CDSL • As at the end of Dec 2005. All leading stock exchanges like the National Stock Exchange. Delhi Stock Exchange. Shri Yashwant Sinha flagged off the operations of CDSL on July 15. State Bank of India and HDFC Bank. Promoters CDSL was promoted by Bombay Stock Exchange Limited (BSE) in association with Bank of India. units of mutual funds. dependable and secure dssssepository services at affordable cost to all market participants. Settlement of trades in the demat mode through BOI Shareholding Limited. Business Partners: CDSL has over 300 DPs spread around cities/towns across the country. 1999. Calcutta Stock Exchange. into the CDSL system. The Stock Exchange. the clearing house of BSE. The initial capital of the company is Rs. Charges: Page 28 . offering convenience for an investor to select a DP based on his location.104.50 crores. Bank of Baroda. over 5000 issuers have admitted their securities (equities. Honorable Union Finance Minister. bonds. debentures and commercial papers).CDSL was set up with the objective of providing convenient.
commodities trading online IPO’s Mutual funds and many more. CDSL collects only Rs.3.As like NSDL CDSL also does not charge the investors and clearing members directly but charges its DPs. However. Banking services can be availed through a branch whereas depository services can be availed through a DP. Depository Participant A Depository Participant (DP) is an agent of the depository through which it interfaces with the investor.per month from its DPs for a Clearing Member except for Clearing Member Investors Securities Account. a DP is an entity that is registered as such with SEBI under the provisions of the SEBI Act.000/. depositories can fix a higher net worth criterion for their DPs. The relationship between the DPs and the depository is governed by an agreement made between the two under the Depositories Act. 500/ . 100 lakh to be eligible to become a DP as against Rs. Page 29 .per month or the amount of the actual bill for a given month whichever is higher.per month or the amount of the actual bill for a given month whichever is higher. For DP-Branches: Rs. NSDL requires a minimum net worth of Rs. he should comply with the specified net worth criterion separately for each such depository.000/. Monthly charges for DPs or its branches For Main DPs: Rs. 50 lakh prescribed by SEBI (D&P) Regulations. Sharekhan provide a wide range of services from online demat account to PMS. SERVICES OFFERED BY SHAREKHAN LTD. If a stockbroker seeks to act as a DP in more than one depository. A DP can offer depository services only after it gets proper registration from SEBI.2. In a strictly legal sense.
Sharekhan equity analysis 3. active traders :--Premium research on 401+ companies updated daily :--Value added services for seamless delivery Page 30 . Depository Services :--Comprehensive services for independent investors. Equities & Derivatives 2.SERVICES PROVIDED BY SHAREKHAN ARE: 1.
Sharekhan equity analysis : Building and maintaining your ideal portfolio demands objective. The Stock Exchange. you will discover an unwavering commitment to helping you invest in India. fact-based measures. Equities and Derivatives Their Retail Equity Business caters to the needs of individual (Indian) and Non-Resident Indian (NRI) investors.Apple Green 4. • Sharekhan Classic account . automated online investing and access to all IPO's.Cannonball Page 31 .Vulture's Pick 2. Mumbai (BSE) and NCDEX. This terminal provide us many type of graph. Sharekhan offers broker assisted trade execution.Ugly Duckling 6. Derivatives and Commodities Instruments listed on National Stock Exchange of India Ltd (NSEIL). • • 2.Comprehensive services including research and investing guidance for independent investors. and forecast report. And because they’re not focused on investment banking.With an extensive range of investment products.Emerging Star 5. Through various types of brokerage accounts. Sharekhan Equity Analysis helps satisfy that need by rating stocks based on carefully selected. dependable information. This objectivity is only one important difference in their ratings Types of equity research provided by sharekhan: 1.Sharekhan is dedicated to empower Active Traders through personal service and advanced trading technology. Sharekhan Trade tiger. chart. Choose the service options that fit you best.Evergreen 3. Indiabulls offers the purchase and sale of securities which includes Equity.1. Sharekhan Fast trade . they don't have the same conflicts of interest as traditional brokerage firms.
Dial-n-trade numbers are: 1-800-22-7050 (Toll free from BSNL/MTNL) 3030-7600 (Only local call charge) 3. Depository Services Sharekhan is a depository participant with the National Securities Depository Limited and Central Depository Services (India) Limited for trading and settlement of dematerialized shares. Page 32 . We offer depository services to create a seamless transaction platform – execute trades through Sharekhan Securities and settle these transactions through the Indiabulls Depository Services.Dail-n-Trade Along with enabling access for your trade online Classic and speed trade account gives you our dial-n-trade services. Sharekhan Depository Services is part of their value added services for their clients that create multiple interfaces with the client and provide for a solution that takes care of all your needs. Sharekhan performs clearing services for all securities transactions through its accounts. Relationship managers are always available on office phone and mobile to resolve your queries.
" Page 33 . almost all exchange transactions are conducted online. the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) have been conducting online trade successfully for sometime now.INTRODUCTION OF THE ONLINE TRADING Online exchanges facilitate faster transactions by providing online trading portals and brokerage houses ease and flexibility.10 crore and the number of average daily trades was Rs 5. The trend has slowly picked up in India and two of the largest exchanges. and transparent access across all our nationwide locations. Stock exchanges worldwide now conduct a bulk of its business online through its brokers and partners. the Internet has indeed opened up new avenues for conducting business.17 lakh. Just as an example. a major shift from the traditional method. Online trading involves large volumes of data being transacted everyday. at BSE the average daily turnover in 2001-2002 (April-March) was Rs 1244. equal. An important aspect was to provide connectivity to our trading members as soon as possible. In developed countries. As promised by technology visionaries and forecast groups over the last decade. Added to this there are stringent RBI regulations that makes it mandatory for companies to store at least 7 years of transactional and financial data Network design "The basic design objective was to provide fair.
the 'big two' exchanges believe in updating and upgrading its technology systems to keep delivering according to commitments and promises made to its members. The trading server software runs on a fault-tolerant STRATUS mainframe and the client software runs on Windows pcs. NSE architecture . NEAT stores all trading information in an in-memory database at the server end to achieve minimum response time and maximum system availability for users.25 protocol and is the backbone of the automated trading system. Each trading member trades on the NSE with other members through a PC located in the trading member's office. partners. The trading members on the Wholesale Debt Market segment are linked to the central computer at the NSE through dedicated 64 Kbps leased lines and VSAT terminals. The WDM participants connect to the trading system through dial-up links. and customers.NEAT NSE has deployed NIBIS (NSE's Internet Based Information System) for real-time dissemination of trading information over the Internet and NEAT a client-server-based application to help its operations. Page 34 . These leased lines are multiplexed using dedicated 2 MB optical-fiber links. The telecommunications network uses the X.The 'big two' architectures NSE and BSE.
BOLT has a two-tier architecture. BSE has setup a MLDN Network comprising 300 2 Mbps lines and 1500 64 Kbps lines which connect all regional stock exchanges and offices in Mumbai. With the help of MTNL. BSE architecture . It works on a Tandem S74016 platform running on 16 cpus. BOLT has been interfaced with various information vendors like Bloomberg. Bridge. Applications like Oracle 7 and SQL/Oracle Forms 4. The systems claim to handle up to two million trades a day. The Tandem Himalaya S74016 machines act as the backend to more than 8000 Trader Workstations networked on Ethernet.5 front ends are used for the exchange functions. 1995. and position monitoring are also provided by the system. The trader workstations are connected directly to the backend server which acts as a communication server and a Central Trading Engine (CTE). Page 35 . The exchange plans to enhance the capabilities further to have an integrated two-way information flow.BOLT BSE has deployed an online Trading system (BOLT) on March 14. A transaction monitoring facility in the Tandem architecture helps keep data integrity through non-stop SQL.The exchange uses RISC-based Unix servers from Digital and HP for backoffice processing. Other services like information dissemination. index computation. VSAT and Managed Leased Data Network (MLDN). Market information is fed to news agencies in real time. and Reuters. Access to market related information through the trader workstations is essential for the market participants to act on real-time basis and take instantaneous decisions.
A broker can be on the trading floor or can make trades by phone or electronically. If client need a broker to help the client with their trades. 4. ON LINE TRADING ACCOUNT Sharekhan provide two types of trading account: Page 36 . A broker is simply a person who is licensed to trade stocks through the exchange.Brokers buy and sell stocks through an exchange. We'll look at other qualities to look for in an online brokerage next. client will need to choose a firm that offers that service. charging a commission to do so.
2. 49 Demat A/C free for first year and Rs.com <http://www.sharekhan.300 from 2nd onwards (Annual Maintenance Charges). Streaming Quotes.sharekhan. 4.com/> Integrated On-line Trading. Instant order and trade confirmation.4.com/>and is suitable for the retail investor who is risk-averse and hence prefers to invest in stocks. Classic account (For beginners and medium investor) Speed Trade (For heavy investor) This account allows the client to trade through our website www. No transaction charges. Features Online trading account for investing in Equity and Derivatives via www.sharekhan. Page 37 . A/C Opening charges: Rs. Demat Account and On-line IPO's. Instant cash transfer facility against purchase & sale of shares.sharekhan.(Cash & Derivatives) Personalized market watch.1.com & <http://www.
updated live. Provision to enter price trigger and view the same online in market watch. tick-by-tick. marked to market profit & loss report. Top Losers. Facility to cancel all pending orders at one click. A/C opening Fee: Rs. Live streaming quotes & price watch on any number of scrips. SPEEDTRADE is an internet-based software application that enables you to buy and sell in an instant. 1000/Features Trade execution in a fraction of a second. Single screen interface for Cash and derivatives and more. Flexibility to customize screen layout and setting. Set any number of price alerts on any number of scrips. position. Most Active. Live margin. Intra day charts. updated live. Facility to customize any number of portfolios & watch lists. It is ideal for active traders and jobbers who transact frequently during day's session to capitalize on intra-day price movement. Top Gainers. Page 38 .
Live updated Order and Trade Book. Best 5 bids and offers.e. Top Gainers. 4. Facility to square off all transactions at one click. Online access to Customer Service. Most Active. updated live. updated live for all scrips Instant trade confirmation. Top Losers. i. Details of pending executed and rejected orders. Index information. Online access to both accounts and DP. index stock information live. index chart.3 INVESTING ADVICE Page 39 . Market depth.
5. which are as follows: Account Opening charges Trading Facility Brokerage Charges Annual maintenance charges Page 40 . COMPARISIONS BETWEEN DIFFERENT E-BROKING FIRMS The following e-broking firms were considered for the study to make a comparative analysis of their services: ICICI Direct Sharekhan Indibulls Kotak Securities Motilal oswal Securitie Religare Securities Reliance Money We will compare different online trading services on some significant features.
ranging from Rs. and it includes spending money on the stamp paper. Margin amount Trading Limit Bank Account ACCOUNT OPENING CHARGES It is a one time cost. 300 Rs 750 # 1 Table showing Opening Charges by different Service Provider Analysis There is one time account-opening fee.com India bulls Motilal Oswal Religare Sharekhan Kotak Securities Reliance Money Opening charges Rs.It includes the annual maintenance charges for the first year. 750 Rs. 500 Rs.49 to Rs. Service provider ICICIDirect. 100 Rs. 700 Rs.750. Page 41 . 49 Rs. notary charges preparing the power of attorney and other related documents.
if the company is listed and there employee’s salary account is maintained in ICICI Bank then there will be an Rs. ICICI direct charges different slabs of account opening fees. It should try for corporate tie-up like ICICI Direct. sharekhan.From the above table we can see Motilal Oswal’s charge is lowest but they demand high margin money if one investor want to avail better facilities and Reliance money.com and ICICI direct charges highest account opening charges.1 /-account opening charge which is lowest in market. Inference Sharekhan should also come up with some lower account opening charge so that it can attract new entrant into the online trading. Page 42 .
AWARENESS OF ONLINE CUSTOMER ANALYSIS TRADING IN NEW DELHI Page 43 .
It is clearly evident that 70% of the sample size prefer to invest in the share market over other financial instruments.3 5.3 100.0 Valid Percent 67.8 8.3 5.7 100.3 18.3 18.0 Valid Shares Mutual Funds Bonds Others Total 70 60 50 40 70 y c n u q e r F 30 20 10 19 6 9 0 Shares Mutual Funds Bonds Others Comments.0 Cumulative Percent 67.8 8.6 91.ANALYSIS OF THE QUESTIONNAIRE In which of these Financial Instruments do you invest into? Frequency 70 19 6 9 104 Percent 67. Page 44 .This question was meant to closely study the pulse and investment pattern in the stock market.7 100.3 85.
6 100.The result shows that online trading has taken the driver’s seat over the conventional trading ever since internet triggered a revolution across the globe.0 15. Which type of trading do you prefer? Valid Percent 74.0 Cumulative Percent 74. Page 45 .6 100.4 100.0 Valid Online Offline Not Applicab le Total Frequency 77 16 11 104 Percent 74.0 15.4 10.0 Not Applicable 11 Offline 16 Online 77 0 20 40 60 80 Frequency Comments.0 89.4 10.
7 22.9 100.2 20. If you prefer online trading then the reasons for it? Frequency Valid Privacy User Friendly and time saving Convenien ce All the above Total System 20 27 20 21 88 16 104 Percent 19. convenient etc.6 15.1 100.7 53.The preferred choice of online trading itself is a proven fact that most of them find it user friendly.4 76.2 26.0 Valid Percent 22.0 19.4 100.7 30.2 84.0 Cumulative Percent 22. Page 46 .7 23.0 Missing Total 30 25 20 15 y c n u q e r F 27 10 20 20 21 5 0 Privacy User Friendly and time saving Convenience All the above Comments. time saving. Hence it does not come as a surprise as 20% of the sample size preferred all the three options.
7 60.7 100.6 6.7 60.0 32.6 6.0 Valid New IPO's Entry of FII's More returns in less time Others Total New IPO's Entry of FII's More returns in less time 7 Others 25 9 63 Comments – This question was meant to understand why more and more investors have started creeping in the share market as never before.0 Cumulative Percent 24.0 8. What factors motivates you to invest in securities? Frequency 25 9 63 7 104 Percent 24.7 93.0 Valid Percent 24.7 100. About 3/5th of the sample size believed that there is a possibility in multiplying their money within a short period of time and about 1/4th of the sample population is driven by the IPOs issued by potential companies.3 100.0 8. Page 47 .
8 19.2 100.8 19. Page 48 .0 Valid Yes No Total Yes No 20 84 Comments-It is clear and transparent that online trading has become more convenient way to deal in securities as majority (as much as 85%) of the sample population voted for it.0 Cumulative Percent 80. Does online trading motivate you to deal in securities? Frequency 84 20 104 Percent 80.2 100.0 Valid Percent 80.8 100.
0 Valid Yes No 3 Total Yes No 3 5 18 81 Comments – Out of the 100 people surveyed.8 100. Page 49 .2 100. share khan has its slice of share as it is familiar and popular among 80% of the sample population.9 17.3 4.3 4. Hence share khan is a well heard off name among the investors.9 95.9 17. Have you heard about Sharekhan? Frequency 81 18 5 104 Percent 77.8 100.0 Cumulative Percent 77.0 Valid Percent 77.
5 81.This question was framed to understand the effectiveness of Sharekhan among its competitors. The push and pull factor worked out well for Sharekhan as it grabbed 27% of the market share out of the 100 people surveyed.7 18 17.3 17.0 7 Total 1 104 1.3 99.2 Valid Percent 13.5 26. Page 50 .0 22.0 1.1 20.4 61.0 30 25 20 15 y c n u q e r F 27 23 10 14 21 18 5 0 ICICI Direct Sharekhan Indiabulls Kotak Securities 5 Paisa 1 7 Comments. Which brokerage firm do you prefer for online trading? Frequency Valid ICICI Direct Sharekha n Indiabulls Kotak Securities 5 Paisa 14 27 23 21 Percent 13.5 26.0 100.0 22.0 100.1 20.5 39.2 Cumulative Percent 13.0 100. But the survey also reveals an interesting point that there is not much variation among the players in terms of investors’ consideration for a brokerage firm.
7 2.9 6.1 100.8 49.0 Cumulative Percent 30. Also to some extent investors look in for the brokerages charged by the trading firm while other options were hardly considered as pre requisites for online trading.8 49. What differentiates your share trading company from others? Frequency 32 51 8 3 7 3 104 Percent 30. The survey reveals that investors have become more analytical and rationale over the period of time as they have compelled themselves to take decisions on the basis of pre and post market research reports offered to them at regular intervals.7 2.0 7.0 Valid Percent 30.8 87.0 7.8 79.7 2.9 6.4 97. Page 51 .5 90.0 Valid Brokerage Research Report Dial up Trade facility Exposure Account opening charges Others Total 60 50 40 y c n u q e r F 30 51 20 32 10 8 7 3 3 0 Brokerage Dial up Trade facility Account opening charges Research Report Exposure Others Comments.7 2.9 100.This question was framed to read the mind of an investor.9 100.
Most of the investors prefer daily and weekly trading to keep a watch on the volatility of the stock market so as to take decisions accordingly.0 Valid Daily Weekly Monthly Yearly Total 60 50 40 30 y c n u q e r F 20 31 10 0 Daily Weekly 7 Monthly 13 Yearly 53 Comments.8 87. Page 52 .5 100.8 6.5 100.0 29.7 12.0 Cumulative Percent 51.8 6.This shows how stock market has swept the nation as a whole.5 100.0 Valid Percent 51. How often do you trade? Frequency 53 31 7 13 104 Percent 51.0 80.7 12.0 29.
3 100.People from different categories of income group have taken their chance to invest in the booming stock market.0 Valid Percent 25.0 Cumulative Percent 25.0 58.7 100. In which category does your income fall?(Per month in Rs) Frequency 26 61 17 104 Percent 25.0 Valid 0-15000 15000-35000 35000-60000 Total 35000-60000 17 15000-35000 61 0-15000 26 0 10 20 30 40 50 60 70 Frequency Comments. The upper middle and middle class (income category ranging from 15000 – 35000) people have taken the primary seat as far as the number of people involved in trading is concerned.7 16.7 16.3 100.0 58.0 83. Page 53 .
5 31.5 4.5 69.0 Cumulative Percent 37.5 13.8 100.0 40 30 20 40 34 y c n u q e r F 10 15 15 0 Up to 10% Up to 25% Up to 50% Above 50% Comments.7 12.7 12.5 31.5 13.2 100. What percentage of your earnings do you invest in share trading? Frequency Valid Up to 10% Up to 25% Up to 50% Above 50% 5 Total 39 33 13 14 5 104 Percent 37.About 70% of the sample size reveals that not more than 25% of their earnings will be pushed into the market which clearly signifies that how volatility in the stock market can influence the investors.8 100.5 4.2 81. Page 54 .7 95.0 Valid Percent 37.
2 87. Hence more than half of the sample size surveyed preferred it to be an important parameter of a brokerage firm.0 23.0 30 25 20 15 y c n u q e r F 27 24 22 10 18 13 5 0 most Important Important Neutral Less Important Not Important at all Comments.5 100.Investors feel that they should be provided with the best of the services in order to associate themselves with a brokerage company over a long period of the time.0 Cumulative Percent 26.0 Valid Percent 26.3 12.0 23.2 17.5 100.5 100.1 21.3 12.0 70. Page 55 . (i) Rank the attribute "customer service" of a share trading company? Frequency Valid most Important Important Neutral Less Important Not Important at all Total 27 24 22 18 13 104 Percent 26.2 17.1 21.0 49.
4 23.8 100.1 20.4 23.0 Valid Percent 13.More than 50% of the sample population felt that they require proper guidance from the brokerage company in order to execute their operations effectively Page 56 .2 100.9 76.5 52.2 3.1 20.5 39.0 96.8 100.0 Not Important at all Less Important Neutral Important most Important 0 10 20 30 40 50 Frequency Comments.(ii) Rank the attribute "proper guidance" of a share trading company? Frequency Valid most Important Important Neutral Less Important Not Important at all Total 14 41 24 21 4 104 Percent 13.2 3.5 39.0 Cumulative Percent 13.
7 17.(iii) Rank the attribute "regular updates" of a share trading company? Frequency 20 14 17 35 18 104 Percent 19. Only 34 of the sample population felt the importance of regular market updates.7 49.7 17.0 82.7 100. Page 57 .5 16.0 Valid most Important Important Neutral Less Important Not Important at all Total 40 30 20 y c n u q e r F 35 10 20 17 14 18 0 most Important Important Neutral Less Important Not Important at all Comments.2 13.0 Valid Percent 19.2 32.5 16.3 100.3 33.Surprisingly about 35 people out of the 104 surveyed thought that the regular updates provided by the company were not that important.3 100.0 Cumulative Percent 19.2 13.3 33.
6 16. Page 58 .6 6.3 67.7 26.A mere 20% of the sample population do consider the significance of the trustworthiness of the brokerage company with whom they have been associated.0 Cumulative Percent 9.7 100.7 26.(iv) Rank the attribute "trustworthiness" of a share trading company? Frequency 10 7 28 25 34 104 Percent 9.9 24.7 100.6 6.9 24.3 43.0 32.0 Valid Percent 9.0 32.3 100.0 Valid most Important Important Neutral Less Important Not Important at all Total 40 30 20 y c n u q e r F 34 28 25 10 10 7 0 most Important Important Neutral Less Important Not Important at all Comments.
6 14.7 100.5 66.The brokerage charges imposed on the investors makes a significant impact on 50% of the sample population whereas another 35 felt that this factor is of no significance at all. Page 59 .4 12.0 61.0 Valid Percent 34.5 4.(v) Rank the attribute "brokerage charge" of a share trading company? Frequency Valid most Important Important Neutral Less Important Not Important at all Total 36 15 13 5 35 104 Percent 34.8 33.8 33.6 14.3 100.4 12.6 49.0 Not Important at all 35 Less Important 5 Neutral 13 Important 15 most Important 36 0 10 20 30 40 Frequency Comments.0 Cumulative Percent 34.7 100.5 4.
0 Cumulative Percent 29.8 52.(i) Rank the company "SHAREKHAN" according to the quality of service? Frequency Valid Excellent Very Good Good Average Below Average Total 31 24 29 17 3 104 Percent 29.1 100.0 Valid Percent 29. Page 60 .9 16.9 100.8 97.1 27.1 27.3 2.3 2.8 23.9 80.9 16.8 23.More than half of the sample population was satisfied with the kind of service that Sharekhan offers to its customers.0 Comments.9 100.
Page 61 .0 Cumulative Percent 22.2 6.0 Valid Excellent Very Good Good Average Below Average Total 50 40 30 y c n u q e r F 20 41 10 23 22 11 7 0 Excellent Very Good Good Average Below Average Comments-Even ICICI Direct had its share of slice. more than 80% of the sample population is satisfied with its service offering.2 6.1 39.7 89.5 82.4 21.(ii) Rank the company "ICICI Direct" according to the quality of service? Frequency 23 41 22 7 11 104 Percent 22.7 10.4 21.1 39.6 100.1 61.0 Valid Percent 22.7 10.4 100.6 100.
5 4.0 Valid Excellent Very Good Good Average Below Average Total 40 30 20 y c n u q e r F 10 0 Excellent Very Good Good Average Below Average Comments-Even India Bulls joined the rat race as a handsome 75 members opted for India Bulls in this regard.5 20. Page 62 .0 11.0 Cumulative Percent 38.0 Valid Percent 38.2 100.5 58.(iii) Rank the company "INDIABULLS" according to the quality of service? Frequency 40 21 26 12 5 104 Percent 38.7 95.2 25.8 100.7 83.5 4.5 20.0 11.8 100.2 25.
3 92.3 100.7 19.1 50.7 12.0 7.(iv) Rank the company "KOTAK SECURITIES" according to the quality of service? Valid Percent 6.0 60 50 40 30 y c n u q e r F 52 20 10 13 0 7 Excellent Very Good 24 8 Good Average Below Average Comments-Kodak Securities was viewed as a low quality service provider as a mere 20 people voted in favours of this company as far as service offering was concerned.2 42.7 12. Page 63 .7 100.0 7.0 Cumulative Percent 6.1 50.5 23.5 23.7 100.0 Frequency Valid Excellent Very Good Good Average Below Average Total 7 13 24 52 8 104 Percent 6.
9 4.2 100.2 100.7 13.8 100.(v) Rank the company "OTHERS" according to the quality of service? Frequency Valid Excellent Very Good Good Average Below Average Total 3 5 6 16 74 104 Percent 2.0 80 60 40 y c n u q e r F 74 20 0 3 Excellent 5 Very Good 16 6 Good Average Below Average Comments-This result was very much predicted as other brokerage firms like 5 Paisa are still viewed as a low quality service providers as a bulk of them (about 75) were not in their favour.9 4.8 15.0 Cumulative Percent 2.4 71. Page 64 .8 5.4 71.8 5.5 28.0 Valid Percent 2.8 15.9 7.
# 1 Graph showing Opening Charges of different Service Provider.c 750 700 500 750 750 amount 300 100 O sw kh an bu l re es iti R el ia n di a ot ila l Sh ar e se cu r R el ire In Id IC IC M Service provider Opening Charges Ko t ak ce m on Page 65 ig a ey al l . 800 700 600 500 400 300 200 100 0 om ct .
BSE & NCDEX NSE. BSE & MCX NSE & BSE NSE. Broker must be a trading member in the exchange to facilitate online service.com India bulls Motilal Oswal Religare Sharekhan Kotak Securities Reliance Money Trading facility on NSE. MCX & NCDEX NSE. However if an investor gets the flexibility to trade in both the exchange he can take advantage of difference in price value of securities among two exchanges. Service providers ICICIDirect. BSE & NCDEX NSE. # 2 Table showing Trading facility provided by different Service Providers. Bombay stock exchange (BSE) or both. MCX & NCDEX Page 66 . MCX & NCDEX NSE. BSE. BSE. BSE. Not all the brokers have a license for trading in both the exchanges simultaneously.TRADING FACILITY The online trading service providers give the investors the option to invest in either National stock exchange (NSE).
Reliance money and IndiaBulls provides online trading service for both MCX & NCDEX. Inference As we can see that only Sharekhan . # 2 Graph showing Trading facility provided by different Service Providers Page 67 . India bulls. It is very flexible for the investors if they are able to operate in both the exchanges. ICICI Direct don’t provide trading in both the market. The license fee is very high and there are too many restrictions of SEBI on multiple exchange trading. They can take the advantage of price level changes. Thus an investor looses on these securities if he only has access to one exchange. Many securities are not listed in MCX which is being actively traded in NCDEX. So Sharekhan is at advantage as it gives facility to trade in three exchanges.Analysis As we can see from the above table that all the firm give trading facility on both the equity exchange but for commodity trading some firms like Motilal oswal. All the firms don’t get the license to trade in both MCX & NCDEX. Kotak securities.
This is the charge for the service provided by the broker.Trading facility NCDEX MCX BSE NSE om bu ll kh an lO sw el ig ar es cu rit i R re ct . This is subject to a minimum brokerage Page 68 Ko el ia nc M ot ta k IC e m on ia ey al e .10% on the sell side.10% on the buy side and 0. It varies from broker to broker based on the magnitude of services offered by them.c In d ila R ar e se Sh Id i IC Service providers BROKERAGE CHARGES This is the charge what the e broking firm charges its customers. The charges are generally high compared to the terminal based traders as they don’t give utility of services to investors. Brokerage charge is classified into: Commissions and fees:For Intra-day Trades:0.
0.05% of Trade Price on first Leg 0.. so if u please we can fix-up for an appointment wherein my executive will detail u about all the things. If a particular security is being bought today and sold tomorrow it does not qualify for intraday charges. This means that if the share price you trade in is Rs 50/. Page 69 .50% on the sell side. off) 0. as they exist from time to time and as they apply to your Account.05% of Trade Price For Index & Stock Futures (Same day Sq. & give u a live demo.or less. These charges are only for those buys in a day which are being sold in the same day. a minimum brokerage of 10 paisa per share will be charged.of 10 paisa per share.or less. The cash segment The F&O segment For Index & Stock Futures -. speculators and short term players in the market. Intraday charges: . transactions. and services you receive EXPOSURE: 4 TO 6 TIMES (ON MARGIN MONEY) This is not all.It includes that charge which is being levied for day to day transaction.50% on the buy side and 0. 1. In other words the transaction has to be completed in the same day. This is subject to a minimum brokerage of 10 paisa per share. looking for your favorable response. However the charges for two day transaction are relatively higher than intra day charges and lower than delivery charges. For Delivery Based Trades:0.02% of Trade Price on Second Leg You agree to pay our brokerage commissions and other fees.. These are the charges for day to day traders.. facilities r many. Minimum brokerage of 10 paisa per share will be applicable when the share price is Rs 20/..
3. Some firms charge brokerage on sliding scale i. # 3 Table showing Brokerage Charges Charged by different Service Providers Service provider Brokerage terms* Intra day Delivery Page 70 .It includes that charges which is being levied for long term transactions.2. Delivery charges: . If an investor wants to invest in a security for a specified period of time say a week or a month he has to pay delivery charges which are relatively higher than intraday charges. the amount of brokerage reduces with the increase in number of transactions done by an investor.e. It includes both intra day and delivery transactions. Under this concept the firms charge a flat rate for all the transaction done by an investor. This charge includes the charge on transferring the shares from brokers account to investors demat account.Many brokers have come with this innovative concept of flat charges. Flat charges: .
However. For these customers brokerage charge is Rs. many brokerage firms have designed flat or annual fees.50% 0.05% 0.com India bulls 0. It charges just 1 paise on intraday transaction and 3. If we look brokerage charges for Reliance Money then we see that its brokerage is lowest in market .com offers a speed trade trading product targeting attractive active traders and jobbers who transact frequently.06% 0.01% Analysis Brokerage is usually 0.But if a trader take introductory offer and utilizes its entire trading limit then its effective Page 71 .10% 0.20-0.037% Motilal Oswal 0.50% 0. Sharekhan.20% 0.75% 0.59% 0.10% 0.02% Religare Sharekhan Kotak securities Reliance Money * As on 10th june 2009 0.25% 0.ICICIDirect.7 paise on delivery . for a frequent or daily trader.75 percent of the transaction value .05% 0.3000 quarterly.
brokerage will be 5 paisa per 100 hundred Rs trading (% of 500/5 lakhs) . In case of Kotak securities customer can trade as much as they want to a maximum exposure of Rs.5 Lakh on a flat free of Rs.999 per months after that they will charge 0. 03 % on each transaction to cover levies, service tax and other charges plus delivery charges. The different e-broking firm charges different Brokerage charges. Some charges low intra-day charge and high delivery charges and some vise versa like Religare and Motilal Oswal. But ICICI charges brokerage on 0.75% that includes delivery charge. In case of Sharekhan.com the delivery charges is 0.5% or Rs.20 per day or 10 Paisa Per scrip.(which ever is high) and intraday charges 0.10% or 5 Paisa per script.(whichever is high). In Kotak street the intra day charges are 0.06% and if delivery is less than worth of Rs.50,000 the charges will be 5 Paisa per share. It charges 0.59% on delivery which is also high. Inference We can observe that sharekhan charges average brokerage than any other service provider in the field. Sharekhan.com offers a speed trade trading product targeting attractive active traders and jobbers who transact frequently. For these customers brokerage ch arge is Rs.3000 quarterly.
Computer Hardware and Software requirement
It’s a great experience altogether along with lot of knowledge about financial product. I would like to share my knowledge in a nutshell through conclusion. While compiling this project, it was a great challenge since it gave us a chance to interact with highly qualified people having professional approach towards their work. This
helped us to develop a professional approach towards work, which gave us the right mantra for meeting deadlines. Page 73
To state on the concluding front for the Mutual Funds, it can be said that Mutual funds are a method for investors to diversify risk and to benefit from professional money management. Mutual funds are easy to buy and sell. You can either buy them directly from the fund company or through a third party. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost and in well balanced risks. Equity products are suitable for risk taker investors and investors usually invest in equity through Mutual Funds. Commodity trading is still a seedling among the crop of financial products .It is less known to the people due to lack of awareness and high risk. Lastly we came to know that different people with different income can invest money and up to what extent and the knowledge that which type of servicemen can easily invest money. For example, mostly IT professionals easily invest money in the different investment group. The project is helping me in knowing different techniques for investing money at minimum risk. As per the analysis mentioned in this report following points can be concluded: Since the young age group is able to undertake more risk portfolio manager has to design aggressive portfolio wherein the individual’s investments contains stocks in more proportion. People of old age have to follow a more conservative approach in their portfolios. Their investments also contain bonds and real estate in greater proportion.
FINDING AND RECOMMENDATION
1. There has been considerable increase in investment in mutual funds, because in mutual fund investment they can diversify their risk into the various sectors. 2. Investment in large cap company is always having less risk, followed by mid cap and small cap companies high returns. 3. It has been found that most of the people go for taking investment decision from the share broker without knowing about company. 4. Most of the people invest in share market mainly because of two reason vizinvestment in share market gives high liquidity and high return. 5. Most of the investor doesn’t know about fundamental and technical analysis. 6. Awareness about the Equity market is very less in the people. and in small cap companies there is high risk and
7. In this two month telecom sector was in steady growth. 8. In the period of two months in automobile sector share price increase at moderate level. 9. In IT sector these two months due to rupee appreciation shares were followed by downtrend. 10. In this two month in real estate sector was in steady growth position.
By investing in share market but in diversified sector investor will get good returns. Investor has to see the news and details about the company in which they are going to invest. campaigning. e. 5. Page 76 . 4.g. Before investing in any company one should study these two concepts. To bring awareness in the people company should have to focus promotional activities like advertising.11. Share broking companies should suggest to investor according to their risk taking capacity. Those who want to take high risk can go for small cap companies and for low risk takers large cap companies 3. 2. Due to the sub prime mortgage issue there was fluctuation in banking sector shares. Do not totally depend on brokers because there can be chances of speculation. Investor has to start doing fundamental analysis on their own. The study of technical as well as fundamental analysis can give detail information about the well running companies in the market. seminar on share market. 6. RECOMMENDATIONS: 1.
“Financial Institutions and Markets” by L. 10. For the long term period automobile sector is a good option. 11. 9. Before investing into banking sector investor have to see global banking sector & its impact. In future telecom sector will perform well as foreign companies are making joint venture with Indian companies. Before going for the IT shares investor must look for the dollar rupee exchange rate. In real estate sector due to development for long term investment it is better option.Bhole Tata Mc Graw-Hill Publishing Company Limited 2.Sixth Reprint . 8. The Business Today Page 77 Third edition.7. BIBLIOGRAPHY 1.M.
kotaksecurities. www. The Economic times 4.religaresecurities. www.google. www.reliancemoney.com 2.nseindia. www.com 9.com 6.com 3. Business world WEBSITES 1. www. www. www.com 4.bseindia. www.sharekhan.com www. Page 78 .icicidirect.com 8.in 12.demataccount.3.com 5.indiabulls.com 10. www.com 7.co.traderji.com 11. www. www.motilaloswal.
b) INSURANCE c) MUTUAL FUND d) SHARE MARKET 2) Do you invest in share market? YES NO 3) Reason for not investing in share market HIGH RISK LACK OF KNOWLEDGE 4) Who takes your investment decision? OWN DECISION FINANCIAL ADVISOR FRIEND SUGGESTION MEDIA REPORTS 5) Where will you most prefer to invest your money? Page 79 .D.QUESTIONNAIRE 1) Where do you invest your money? a) BANK F.
LARGE CAP MID CAP SMALL CAP 6) What are the factors do you consider while selection of company? SAFETY LIQUIDITY RETURN PEDIGREE 7) What kinds of trading you do? INTRADAY SHORT TERM MID TERM LONG TERM 8) While doing investment which factors do you consider? FUNDAMENTAL ANALYSIS TECHNICAL ANALYSIS BOTH SPECULATION 9) Awareness about sharekhan: Page 80 .
YES NO Page 81 .