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“Analysis of Marketing Strategies of EBroking”
ANGEL BROKING PVT LTD, JAIPUR
Submitted To: PROF.NITUJ GUPTA
Submitted By: HITESH KASLIWAL
MBA (FIRST YEAR)
I “HITESH KASLIWAL” a Student Of MBA, MAGTECH MANAGEMENT INSTITUTE,GHAZIABAD (UP) declare that the Project Entitled “Analysis of Marketing Strategies of E-Broking”. In Partial Fulfillment of MBA Degree Course in ANGEL BROKING SECURITIES is my Original Work.
Any work accomplishment is seldom on person achievement .there are usually many people behind it who contribute to its goodness in form or the other. It was my good luck that the staff of ANGEL BROKING was supportive which ease my job by quite a long extent. For the development of the project .I extend my heartful gratitude to Mr. SUMIT MAHESHVARI, Branch Manager, Angel Broking for providing excellent mentoring, encouragement & support. I sincerely thank who despite his tight schedule spared time for discussions and gave basic ground rules and directions, without which completion of this project would have been impossible. I am highly grateful to the management of ANGEL BROKING
for giving me the opportunity to work on this Project, and in the process enrich myself with immense learning on all aspects I am grateful to all employees of ANGEL BROKING for providing me all the information and help I required for the completion of this project.
Quite frequently these days’ people talk of practical knowledge, both in academic institutions and outside. At each and every aspect in life we require some sort of theoretical and practical knowledge too. It means only classroom lecture may not be enough to get the proper knowledge either in the business field or social life. • Keeping all this in view, the present report has been written
for the promotion the brand position of Angel Broking in the highly competitive environment and to study the consumer behavior by working as a promoter at Modern Trade Centers.
I am grateful to all those who have helped me in the successful completion of this report.
I hope I have tried my level best in making this Report. If there is any error, in this Report I want to apologies for that.
Introduction to the Industries 7
Indian Stock Market 21
Major players the Broking industry in India 27
Introduction of the company 28
Products of Angel Broking 33
Fundamental Services 41
Technological Services Commodity Services About the other companies 48 Comparative Analysis of the company 52 Market share of Angel Broking 53 Limitations 55
Study of Selected research problem 60
Description of terminology used in Broking company 67
Research Methodology 81
Data Analysis and Interpretation 85
Findings and summary of learning experience 96
OBJECTIVE OF THE STUDY
Main objective of the project is to find out the strategies of different E-Broking firms and evaluate them. Project is about to penetrate the competitors of ANGEL BROKING LTD. Conclusion of this project can give an idea of strategies of different companies which may be helpful to the company. Now days all the broking 6
companies in India are trying to establish themselves in the competitive market. They are introducing innovative marketing
strategies to survive in the market. Many other private companies are looking to enter in the Indian Broking market .so it is very essential to a company to innovate their marketing strategies in terms of
• • • • • •
Well educated and capable employee in the agency Marketing of their products Deployment of their products Targeting the right and potential customers Differentiating from other companies Future plan of the company
This study consists of to find out the marketing strategies of different Broking companies which are the competitors of ANGEL BROKING LTD.
INTRODUCTION TO THE INDUSTRY
THE HISTORY OF INDIAN E-BROKING INDUSTRY
The first publicly issued security can be tracked back to the fourteenth century in Venice where the government made the first known issue of bonds. These government securities were purchased by merchants and landowners as investments. In and around 1750s in England, traders in the shares of early companies would commonly meet in Jonathans Coffee House to trade shares and make business deals. Early share bids and offers were written on the Coffee House walls and the trading process was highly unregulated, with insider trading forming the basis for most investment decisions. By 1773, Trading Clubs had formed, and in 1801 a group of traders raised 20,000 pounds to build the London Stock Exchange in Capel Court. A similar process was occurring in America. By the early 1790s many merchants had begun trading shares. Just as in London, these early traders often met at coffeehouses in an informal environment. In 1792, 24 Brokers who each paid $400 for a "trading seat" signed the Buttonwood Tree Agreement. This agreement outlined the regulations under which shares could be bought and sold. These regulations formed the basis for trading rules that
Still exist today and led to the formation in 1817 of the New York Stock Exchange. Much water has passed under the bridge since then and we forward all the way to late 1990s. By late 1990s, most of the stock exchanges had been automated, and the “open outcry” method of trading was the thing of the past. Most stock exchanges began to use computers to replace floor traders. Floor traders take phone and computer orders from brokers, and negotiate a trade with stock specialists at trading
stations on the trading floor. The internet orders placed by clients are first processed and authorized through the stock brokers’ computer system before being automatically placed on the stock exchanges’ computer systems. This period saw the rise in popularity and acceptance of online stock broking. Angel Broking's tryst with excellence in customer relations began more than 20 years ago. Today, Angel has emerged as a premium Indian stock-broking and wealth management house, with an absolute focus on retail business, and a commitment to provide "Real Value for Money" to all its clients. The Angel Group is a member of the Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and the two leading Commodity Exchanges in the country i.e. NCDEX MCX. We are also registered as a Depository Participant with CDSL.
Angel Group of Companies Angel Broking Ltd.
Member on the BSE and Depository Participant with CDSL Angel Capital & Debt Market Ltd. Membership on the NSE Cash and Futures & Options Segment Angel Commodities Broking Ltd. Member on the NCDEX & MCX Angel Securities Ltd. Member on the BSE
Meaning of stock market
A stock market is a private or public market for the trading of company stock and derivatives of company stock at an agreed price; both of these are securities listed on a stock exchange as well as those only traded privately. Trading
Participants in the stock market range from small individual stock investors to large hedge fund traders, who can be based anywhere. Their orders usually end up with a professional at a stock exchange, who executes the order. Some exchanges are physical locations where transactions are carried out on a trading floor, by a method known as open outcry. This type of auction is used in stock exchanges and commodity exchanges where traders may enter "verbal" bids and offers simultaneously. The other type of exchange is a virtual kind, composed of a network of computers where trades are made electronically via traders. Actual trades are based on an auction market paradigm where a potential buyer bids a specific price for a stock and a potential seller asks a specific price for the stock. (Buying or selling at market means you will accept any ask price or bid price for the stock, respectively.) When the bid and ask prices match, a sale takes place on a first come first served basis if there are multiple bidders or askers at a given price.
Stock market index
The movements of the prices in a market or section of a market are captured in price indices called stock market indices, of which there are many, e.g., the S&P, the FTSE and the Euronext indices. Such indices are usually market capitalization (the total market value of floating capital of the company) weighted, with the weights reflecting the contribution of the stock to the index. The constituents of the index are reviewed frequently to include/exclude stocks in order to reflect the changing business environment.
Financial innovation has brought many new financial instruments whose pay-offs or values depend on the prices of stocks. Some examples are exchange-traded funds (ETFs), stock index and stock options, equity swaps, single-stock futures, and stock index futures. These last two may be traded on futures exchanges (which are distinct from stock exchanges—their history traces back to commodities futures exchanges), or traded overthe-counter. As all of these products are only derived from stocks, they are sometimes considered to be traded in a (hypothetical) derivatives market, rather than the (hypothetical) stock market.
The Bombay Stock Exchange
The Bombay Stock Exchange Limited (formerly, The Stock Exchange, Mumbai; popularly called The Bombay Stock Exchange, or BSE) is the oldest stock exchange in Asia. It is located at Dalal Street, Mumbai, India.
The Bombay Stock Exchange was established in 1875. There are around 4,800 Indian companies listed with the stock exchange, and has a significant trading volume. As of August 2007, the equity market capitalization of the companies listed on the BSE was US $ 1.11 trillion
. The BSE SENSEX (SENSitive indEX), also called the "BSE 30", is a
widely used market index in India and Asia. It is located at Dalal Street, Mumbai, India.
Bombay Stock Exchange was established in 1875. There are around 4,800 Indian companies listed with the stock exchange, and has a significant trading volume. As of August 2007, the equity market capitalization of the companies listed on the BSE was US $ 1.11 trillion . The BSE SENSEX (SENSitive indEX), also called the "BSE 30", is a widely used market index in India and Asia .
National stock Exchange
The National Stock Exchange of India Limited (NSE), is a Mumbai-based stock exchange. It is the largest stock exchange in India and the third largest in the world in terms of volume of transactions. NSE is mutually-owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries in India but its ownership and management operate as separate entities. As of 2006, the NSE VSAT terminals, 2799 in total, cover more than 1500 cities across India
. In July 2007, the
NSE had a total market capitalization of 42,74,509 crore INR making it the secondlargest stock market in South Asia in terms of market-capitalization.
The National Stock Exchange of India was promoted by leading Financial institutions at the behest of the Government of India, and was incorporated in November 1992 as a taxpaying company. In April 1993, it was recognized as a stock exchange under the
Securities Contracts (Regulation) Act, 1956. NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment of the NSE commenced operations in November 1994, while operations in the Derivatives segment commenced in June 2000
Hang Seng Index
Hang Seng" redirects here. For the bank with the same name, see Hang Seng Bank. For all other uses, see Hang Seng (disambiguation). The Hang Seng Index (abbreviated: HSI, Chinese: 恒 生 指 數 ) is a freefloat-adjusted market capitalization-weighted stock market index in Hong Kong. It is used to record and monitor daily changes of the largest companies of the Hong Kong stock market and is the main indicator of the overall market performance in Hong Kong. These 40 companies represent about 65% of capitalization of the Hong Kong Stock Exchange.
Stock market crash
A stock market crash is often defined as a sharp dip in share prices of equities listed on the stock exchanges. In parallel with various economic factors, a reason for stock market 14
crashes is also due to panic. Often, stock market crashes end up with speculative economic bubbles. There have been famous stock market crashes that have ended in the loss of billions of dollars and wealth destruction on a massive scale. An increasing number of people are involved in the stock market, especially since the social security and retirement plans are being increasingly privatized and linked to stocks and bonds and other elements of the market. There have been a number of famous stock market crashes like the Wall Street Crash of 1929, the stock market crash of 1973–4, the Black Monday of 1987, the Dotcom bubble of 2000. But those stock market crashes did not begin in 1929, or 1987. They actually started years or months before the crash really hit hard. One of the most famous stock market crashes started October 24, 1929 on Black Thursday. The Dow Jones Industrial lost 50% during this stock market crash. It was the beginning of the Great Depression. Another famous crash took place on October 19, 1987
Function and purpose
The stock market is one of the most important sources for companies to raise money. This allows businesses to go public, or raise additional capital for expansion. The liquidity that an exchange provides affords investors the ability to quickly and easily sell securities. This is an attractive feature of investing in stocks, compared to other less liquid investments such as real estate. History has shown that the price of shares and other assets is an important part of the dynamics of economic activity, and can influence or be an indicator of social mood. Rising share prices, for instance, tend to be associated with increased business investment and vice versa. Share prices also affect the wealth of households and their consumption. Therefore, central banks tend to keep an eye on the control and behavior of the stock market and, in general, on the smooth operation of financial system functions. Financial stability is the raison d'être of central banks.
Exchanges also act as the clearinghouse for each transaction, meaning that they collect and deliver the shares, and guarantee payment to the seller of a security. This eliminates the risk to an individual buyer or seller that the counterparty could default on the transaction.
The smooth functioning of all these activities facilitates economic growth in that lower costs and enterprise risks promote the production of goods and services as well as employment. In this way the financial system contributes to increased prosperity.
Relation of the stock market to the modern financial system
The financial system in most western countries has undergone a remarkable transformation. One feature of this development is disintermediation. A portion of the funds involved in saving and financing flows directly to the financial markets instead of being routed via banks' traditional lending and deposit operations. The general public's heightened interest in investing in the stock market, either directly or through mutual funds, has been an important component of this process. Statistics show that in recent decades shares have made up an increasingly large proportion of households' financial assets in many countries. In the 1970s, in Sweden, deposit accounts and other very liquid assets with little risk made up almost 60 per cent of households' financial wealth, compared to less than 20 per cent in the 2000s. The major part of this adjustment in financial portfolios has gone directly to shares but a good deal now takes the form of various kinds of institutional investment for groups of individuals, e.g., pension funds,
mutual funds, hedge funds, insurance investment of premiums, etc. The trend towards forms of saving with a higher risk has been accentuated by new rules for most funds and insurance, permitting a higher proportion of shares to bonds. Similar tendencies are to be found in other industrialized countries. In all developed economic systems, such as the European Union, the United States, Japan and other developed nations, the trend has been the same: saving has moved away from traditional (government insured) bank deposits to more risky securities of one sort or another.
The stock market, individual investors, and financial risk
Riskier long-term saving requires that an individual possess the ability to manage the associated increased risks. Stock prices fluctuate widely, in marked contrast to the stability of (government insured) bank deposits or bonds. This is something that could affect not only the individual investor or household, but also the economy on a large scale. The following deals with some of the risks of the financial sector in general and the stock market in particular. This is certainly more important now that so many newcomers have entered the stock market, or have acquired other 'risky' investments (such as 'investment' property, i.e., real estate and collectables). With each passing year, the noise level in the stock market rises. Television commentators, financial writers, analysts, and market strategists are all overtalking each other to get investors' attention. At the same time, individual investors, immersed in chat rooms and message boards, are exchanging questionable and often misleading tips. Yet, despite all this available information, investors find it increasingly difficult to profit. Stock prices skyrocket with little reason, then plummet just as quickly, and people who
have turned to investing for their children's education and their own retirement become frightened. Sometimes there appears to be no rhyme or reason to the market, only folly.
This is a quote from the preface to a published biography about the long-term valueoriented stock investor Warren Buffett. Buffett began his career with $100, and $105,000 from seven limited partners consisting of Buffett's family and friends. Over the years he has built himself a multi-billion-dollar fortune. The quote illustrates some of what has been happening in the stock market during the end of the 20th century and the beginning of the 21st. The behavior of the stock market
NASDAQ in Times Square, New York City. From experience we know that investors may temporarily pull financial prices away from their long term trend level. Over-reactions may occur—so that excessive optimism (euphoria) may drive prices unduly high or excessive pessimism may drive prices unduly low. New theoretical and empirical arguments have been put forward against the notion that financial markets are efficient.
According to the efficient market hypothesis (EMH), only changes in fundamental factors, such as profits or dividends, ought to affect share prices. (But this largely theoretic academic viewpoint also predicts that little or no trading should take place— contrary to fact—since prices are already at or near equilibrium, having priced in all public knowledge.) But the efficient-market hypothesis is sorely tested by such events as the stock market crash in 1987, when the Dow Jones index plummeted 22.6 percent—the largest-ever one-day fall in the United States. This event demonstrated that share prices can fall dramatically even though, to this day, it is impossible to fix a definite cause: a thorough search failed to detect any specific or unexpected development that might account for the crash. It also seems to be the case more generally that many price movements are not occasioned by new information; a study of the fifty largest one-day share price movements in the United States in the post-war period confirms this. Moreover, while the EMH predicts that all price movement (in the absence of change in fundamental information) is random (i.e., non-trending), many studies have shown a marked tendency for the stock market to trend over time periods of weeks or longer.
Various explanations for large price movements have been promulgated. For instance, some research has shown that changes in estimated risk, and the use of certain strategies, such as stop-loss limits and Value at Risk limits, theoretically could cause financial markets to overreact. Other research has shown that psychological factors may result in exaggerated stock price movements. Psychological research has demonstrated that people are predisposed to 'seeing' patterns, and often will perceive a pattern in what is, in fact, just noise. (Something like seeing familiar shapes in clouds or ink blots.) In the present context this means that a succession of good news items about a company may lead investors to overreact positively (unjustifiably driving the price up). A period of good returns also boosts the investor's self-confidence, reducing his (psychological) risk threshold.
Another phenomenon—also from psychology—that works against an objective assessment is group thinking. As social animals, it is not easy to stick to an opinion that differs markedly from that of a majority of the group. An example with which one may 19
be familiar is the reluctance to enter a restaurant that is empty; people generally prefer to have their opinion validated by those of others in the group. In one paper the authors draw an analogy with gambling. In normal times the market behaves like a game of roulette; the probabilities are known and largely independent of the investment decisions of the different players. In times of market stress, however, the game becomes more like poker (herding behavior takes over). The players now must give heavy weight to the psychology of other investors and how they are likely to react psychologically. The stock market, as any other business, is quite unforgiving of amateurs. Inexperienced investors rarely get the assistance and support they need. In the period running up to the recent Nasdaq crash, less than 1 per cent of the analyst's recommendations had been to sell (and even during the 2000 - 2002 crash, the average did not rise above 5%). The media amplified the general euphoria, with reports of rapidly rising share prices and the notion that large sums of money could be quickly earned in the so-called new economy stock market. (And later amplified the gloom which descended during the 2000 - 2002 crash, so that by summer of 2002, predictions of a DOW average below 5000 were quite common.)
Sometimes the market tends to react irrationally to economic news, even if that news has no real effect on the technical value of securities itself. Therefore, the stock market can be swayed tremendously in either direction by press releases, rumors, euphoria and mass panic.
Over the short-term, stocks and other securities can be battered or buoyed by any number of fast market-changing events, making the stock market difficult to predict.
INDIAN STOCK MARKET
Thee origination of the Indian securities market may be traced back to 1875, when 22 enterprising brokers under a Banyan tree established the Bombay Stock Exchange (BSE). Over the last 125 years, the Indian securities market has evolved continuously to become one of the most dynamic, modern and efficient securities markets in Asia. Today, Indian markets conform to international standards both in terms of operating efficiency.
Structure and size of the markets:
Today India has two national exchanges, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).Each has fully electronic trading platforms with around 9400 participating broking outfits. Foreign brokers account for 29 of these.
There are some 9600 companies listed on the respective exchanges with a combined market capitalization near $125.5bn.
Any market that has experienced this sort of growth has an equally substantial demand for highly efficient settlement procedures.
In India 99.9% of the trades, according to the National Securities Depository, are settled in dematerialized form in a T+2 rolling settlement environments. In addition, trades are guaranteed by the National Clearing Corporation of India Ltd. (NSCCL) and Bank of India Shareholding Ltd. (BOISL), Clearing Corporation houses of NSE and BSE respectively. The main functions of the Clearing Corporation to work out.
Furthermore, each exchange has a Settlement Guarantee Fund to meet with any unpredictable situation and a negligible trade failure of 0.003%. the Clearing Corporation of the exchanges assumes the counter-party risk of each member and guarantees settlement through a fine-tuned risk management system and an innovative method of online position monitoring. It also ensures the financial settlement of trades on the deliver the required funds and/or securities with the help of a settlement guarantee fund.
Advantages Of Online Trading
The first major advantage of trading online is the ability to have total control over ones investments. Before the advent of online trading, investors had to go through a stockbroker in order to buy and sell their stocks. This process is tedious, can take up value able time and is costly. In addition to that, brokers can sometimes persuade investors to buy and sell certain stocks because of personal reasons.
When investors trades online they have total control of their money. In addition to that, investors investors have the luxury of speed. They can buy and sell stocks quickly, which can help them save money. An example of this is if investors want to buy certain stocks at low price, by the time they call their broker and eventually buy the stock the price could have increased during that time period. This same example applies to when investors want to 23
sell a stock at a certain time. While the investors are calling their broker and the stock is being sold, the price could have dropped. This could sometimes cost investors thousands of dollars. With online trading, people can buy and sell at the exact time they choose to do so because it is just a mouse click away.
Online trading is also beneficial because it reduces the cost of transaction. Instead of paying broker , which can be very costly , investors can trade online and pay a small fee to their company. this saves the customers from having to pay commission to the stockbroker. Furthermore, since” the explosion of online brokerages has driven the cost of transactions way down, trading online is cheaper than ever. This is because all the companied are competing for business continue reducing their costs to attract customers.
The last major advantage of trading stocks online is that more information is available then ever before. Investors can get the most up to date stock quotes and can reach any company they plan on buying stock for. This information was previously only available to stockbrokers. With the new technology the internet offers, it is available to everyone. With this information the investors can become more educated and make good decision on the stocks they want to buy and sell. One such website that allows users to gather information is Quote.com. Quote.com has graphic
charts that updates the investors’ portfolio throughout the day and also lets investors create “watch lists” or mock portfolios that monitor alternative investment options”. This means that customers can plan out different investing stratifies and see how those compare to the ones they are already invested in. These advantages have contributed greatly to the increase of ntrading online.
Disadvantages of online training
One major disadvantage with online trading is that there are many security risks. The internet is a wonderful but dangerous place to do business. Hackers have the ability to access personal information on anyone who has ever searched the internet, which includes credit card information. This was the main reason a company like Charles Schwab was reluctant to start trading online. Although the percentage is small, there is still a small chance that hackers can access ones account (price 2) companies are taking the most serious precautions on this matter.
Another drawback to trading online is that, while companies offer trades that are quick and on the spot, in actuality it can take up to several hours to complete or even not to be completed at all. According to the Securities and Exchange Commission, “E-traders registered more than 3,300 complaints in the 12 months ended in September 1999, a 197 percent increase
over 1998 and nearly 2,000 percent higher than in 1997”. This means that here was an increase in problems that the web sites were having. This could have serious effects on investors because they could think they bought a stock or sold a stock at a certain time but in actuality the transaction registered late or not at all costing that investor money.
The internet is unpredictable and stable. One can never know when a web site will fail. In situations where there is a problem like this, investors can usually call their brokerage firm and the problem is fixed right away. However, the problem with online trading companies is that they are too large and are not “easily reached by e-mail or phone”. This is the main concern for online brokerage firms and they are trying their best to alleviate these problems.
Finally the most important problem with online trading is that it is so quick and easy to make transaction, that money can be lost just as quick and just as easily. Some people that invest online do not know how the stock market words and think they can just invest in anything and it will make them money. According into foresters search, “two types of traders have already moved online ‘the aggressive affluent’ and those who want to ‘get rich quick.”. These two groups make up 70 percent of the people that want investors trading online today. These people can make rash decisions and lose a lot of their money. People like this generally think that investing in the stock market is like gambling in Las Vegas. This is a dangerous attitude and could make people lose money they cannot afford to lose.
Major Players in the BROKING Industry in India
1 2 3 4 5 6 7 8 9 1 0 1 1 1 2 1 3
SHAREKHAN ANAND RATHI MOTILAL OSWAL IL&FS INDIABULLS HDFC SECURITIES INDIA INFOLINE ANGELBROKING RELIGARE RELIANCE MONEY ICICI DIRECT BONANZA MAGAL KESHAV
1 4 1 5 1 6 1 7 1 8 2 3 2 4 ASIT C METHA JP MORGAN STANLEY MAN FINANCIAL KARVY GEOJIT UTI SECURITIES JAIPURK SECURITIES
INTRODUCTION OF THE COMPANY
COMPANY PROFILE OF ANGEL BROKING LTD
Mr. Dinesh thakkar is the man behind the successful building of angel broking as India’s leading retail stock broking house with his vision, devotion, dedication, keen foresight and zeal to excel. He is among the first generation stockbroker who is credited for conceptualizing and the subsequently promoting angel group in 1987. He was attracted towards the stock market due to its prospects of fast growth. He proved his skill and abilities through efficient trading of stocks by using advanced and innovation tools of technical analysis. He started his operations as a sub-broker from a small office at dalal street with a client base of just around 25 clients and total staff strength of 3 employees. With his 100% focus on the retail clientele coupled with his expertise in investment advisory services, he has scaled much greater height as is evident from our network strength and nation wide presence today. The Angel Group has emerged as one of the top 5 retail stock broking houses in India, having memberships on BSE, NSE and the two leading commodity exchanges in the country i.e. NCDEX and MCX. Angel Broking Ltd is also registered as a depository participant with CDSL. It is the only 100% retail stock broking house offering a gamut of retail centric services like Research, Investment Advisory, and Wealth Management Services, EBroking & Commodities to individual investor.
• • • • TO PROVIDE BEST VALUE FOR MONEY TO INVESTORS THROUGH INNOVATIVE PRODUCTS TRADING/INVESTMENT STRATEGIES, STATE OF THE ART TECHNOLOGY AND
• ETHICAL PRACTICES & TRANSPARENCY IN ALL
OUR DEALINGS • • CUSTOMER INTEREST ABOVE OUR OWN ALWAYS DELIVER WHAT WE PROMISE
EFFECTIVE COST MANAGEMENT
• • • • • • • INTEGRITY • TEAMWORK • QUALITY MINDSET • ENTREPRENEURSHIP • SERVICE ORIENTATION • PASSION & COMMITMENT
• We have a Pan India presence with more than 5000+ intermediaries.
We offer services like:
Equity Broking Commodities Depository Research E-broking Advisory Portfolio Management Services Mutual Fund Distribution
• A client base of 4, 50,000 + active Investors is serviced by our strong team of 4600 + employees across branches.
• The above distribution makes our client servicing levels one of the highest in the industry.
• 50 member research team doing technical, fundamental, derivative and commodity analysis, one of the largest in the industry.
• First broking house to start 100% retail focus research in the industry
ANGEL GROUP COMPANIES:
BSE- ANGEL BROKING LTD
NSE- ANGEL CAPITAL AND DEBT MARKET LTD
NCDEX & MCX- ANGEL COMMODITIES BROKING
Angel was awarded the coveted the “Major Volume Driver” trophy from BSE for the Year 2004-2005, 2005 -2006 & 2006 -2007.That means the maximum number of trade on BSE has been done from Angel Broking Ltd
TIE UP BANK’S
• • • • • • • HDFC ICICI AXIS CORPORATION ORIENTAL BANK OF COMMERCE KARNATAKA YES
Products of Angel Broking
E-Broking Angle has 3 different products and voila trading on BSC, NSC, F&O, MCX & NCDEX. It provides three softwares to customers for online trading.
1. • • • •
Application based ideal for traders. User friendly & simple navigation Robust & speedier execution of trade BSC, NSC, F&O, MCX & NCDEX
2. • • •
Browser based for investor No installation required Advantage of mobility 34
Trading as simple as internet surfing BSC, NSC, F&O, MCX & NCDEX
3. • • •
Application based ideal for traders using technical tool Intra-day/historical charts with various indicators BSC, NSC, Cash & Derivatives
Investment Advisory Services
To derive optimum returns from equity as an asset class requires professional guidance and advice. Professional assistance will always be beneficial in wealth creation. Investment decisions without expert advice would be like treating ailment without the help of a doctor.
Expert Advice: Their expert investment advisors are based
at various branches across India to provide assistance in designing and monitoring portfolios.
Timely Entry & Exit: Their advisors will regularly guide customers to book
monitor customers investments and
timely profits. They will also guide them in adopting switching techniques from one stock to another during various market conditions.
De-Risking Portfolio: A diversified portfolio of stocks is
always better than concentration in a single stock. Based on their research, They diversify the portfolio in growth oriented sectors and stocks to minimize the risk and optimize the returns.
A commodity is a basic good representing a monetary value. Commodities are most often used as a inputs in the production of other goods or services. With the advent of new online exchange, commodities can now be traded in futures markets. When they are traded on an exchange, Commodities must also meet specified minimum standards known as a basic grade.
Depositary Participant Services
Angel Broking Ltd. Is a DP services provider though CDSL. We offer depository services to create a seamless transaction platform to execute trades through Angel group of companies and settle these transactions through Angel Depository services.
• • • • • mail •
Wide branch coverage Personalized/attentive services of trained a dedicated staff Centralized billing & accounting Acceptance & execution of instruction on fax Daily statement of transaction & holdings statement on e-
No charges for extra transaction statement & holdings
Portfolio Management Services
Successful investing in Capital Markets demands ever more time and expertise. Investment Management is an art and a science in itself. Portfolio Management Services (PMS) is one such service that is fast gaining eminence as an investment avenue of choice for High Networth Investors(HNI). PMS is a sophisticated investment vehicle that offers a range of specialized investment strategies to capitalize on opportunities in the market. The Portfolio Management Service combined with competent fund management, dedicated research and technology, ensures a rewarding experience for its clients . Angel PMS brings with it years of experience, expertise, research and the backing of India's leading stock broking house. At Angel, experienced portfolio management is the difference. It will advise you on a suitable product based on factors such as your investment horizon, return expectations and risk tolerance. 39
To enable clients to diversify their investment in the right direction. Angel Broking has added another product in its range with mutual funds. • Access to in-depth research & proper selection from
diversified funds based on your preferred criteria • Rating and rankings of all mutual funds from our in house
expert analysts • News and alertfor your Mutual fund Portfolio and
performance tracking with watch lists • Current and historical performance of different funds
No risk of loss, wrong transfer,mutilation or theft of share
certificates. • Hassle free automated pay-in of your sell obligations by
your clearing members • • Reduced paper work. Speedier settlement process. Because of faster transfer and
registration of securities in your account, increased liquidity of your securities. • Instant disbursement of non-cash benefits like bonus and
rights into your account. • • Efficient pledge mechanism. Wide branch coverage.
Personalized/attentive services of trained help desk. ‘Zero’ upfront payment. No charges for extra transaction statement & holding statement. All in one combined Monthly ‘Bill-cum Transaction-cum-Holdingcum-ledger’ statement.
The Sunday Weekly Report
This weekly report is ace of all the reports. It offers a comprehensive market overview and likely trends in the week ahead. It also presents top picks based on an in-depth analysis of technical and fundamental factors.
It gives short term and long-term outlook on these scripts, their price targets and advice trading strategies.
Another unique feature of this report is that it provides an updated view of about 70 prominent stocks on an ongoing basis.
Angel’s stock research has performed very well over the past few years and angel model portfolio has consistently outperformed the benchmark indices. The fundamentals of select scripts are thoroughly analyzed and actionable advice is provided along with investment rationale for each scrip.
Key developments and significant news announcement that are likely to have an impact on market / scripts are flashed live on trading terminals. Flash news keeps the market men updated on an online basis and helps them to reshuffle their holdings.
For day traders angel provides intraday calls with entry, exit and stop loss levels during the market hours and our calls are flashed on our terminals. Our analysts continuously track the calls and provide the recommendations according to the market movements. Past performance of these calls in terms of profit/loss is also available to our associates to enable them to judge the success rate.
Posting Trading Calls Angels “Position Trading Calls” are based on a through analysis of the price movements in selected scripts and provides calls for taking positions with a 10 - 15 days time span with stop losses and targets. These calls are also flashed on our terminals during market hours.
Our analyst take a view on the NIFTY and selected scripts based on derivatives and technical tools and devise suitable “Derivative Strategies” , which are flashed on our terminals and published in our derivative reports.
Agro Tech Speak Mainly gives the investors insight into and a forecast for agro commodities viz. pulses(urad channa etc); reports on oil complex (soyabean castor etc.) along with spices with reports on kapas guar seed .
Commodities Tech Speak This report mainly equips the investors dealing in MCX segment in commodities like gold, silver, crude oil, copper etc with the market insight and expert recommendation on the trading strategies.
AnandRathi (AR) is a leading full service securities firm providing the entire gamut of financial services. The firm, founded in 1994 by Mr. AnandRathi, today has a pan India presence as well as an international presence rough offices in Dubai and Bangkok.
AR provides a breadth of financial and advisory services including wealth management, investment banking, corporate advisory, brokerage & distribution of equities, commodities, mutual funds and insurance - all of which are supported by powerful research teams.
The firm's philosophy is entirely client centric, with a clear focus on providing long term value addition to clients, while maintaining the highest standards of excellence, ethics and professionalism. The entire firm activities are divided across distinct client groups: Individuals, Private Clients, Corporates and Institutions.
Indiabulls is India’s leading Financial Services and Real Estate company having over 640 branches all over India. Indiabulls serves the financial needs of more than 4,50,000 customers with its wide range of financial services and products from securities, derivatives trading, depositary services, research & advisory services, consumer secured & unsecured credit, loan against shares and mortgage & housing finance. With around 4000 Relationship Managers, Indiabulls helps its clients to satisfy their customized financial goals. Indiabulls through its group companies has entered Indian Real Estate business in 2005. It is currently evaluating several large-scale projects worth several hundred million dollars. “Indiabulls Financial Services Ltd is listed on the National Stock Exchange, Bombay Stock Exchange and Luxembourg Stock Exchange. The market capitalization of Indiabulls is around USD 6,300 million (31st December, 2007). Consolidated net worth of the group is around USD 905 million (31st December, 2007). Indiabulls and its group companies have attracted more than USD 800 million of equity capital in Foreign Direct Investment (FDI) since March 2000. Some of the large shareholders of Indiabulls are the largest financial institutions of the world such as Fidelity Funds, Goldman Sachs, Merrill Lynch, Morgan Stanley and Farallon Capital.
Business of the company has grown in leaps and bounds since its inception. Revenue of the company grew at a CAGR of 159% from FY03 to FY07. During the same period, profits of the company grew at a CAGR of 184%. Indiabulls became the first company to bring FDI in Indian Real Estate through a JV with Farallon Capital Management LLC, a respected US based investment firm. Indiabulls has demonstrated deep understanding and commitment to Indian Real Estate market by winning competitive bids for landmark properties in Mumbai and Delhi.”
Religare Securities Limited (RSL):-
It is a leading equity and securities firm in India. The company currently handles sizeable volumes traded on NSE and in the realm of online trading and investments it currently holds a reasonable share of the market. The major activities and offerings of the company today are Equity broking, Depository Participant Services, Portfolio Management Services, Institutional Brokerage & Research, Investment Banking and Corporate Finance. To broaden the gamut of services offered to its investors, the company has also recently unveiled a new avatar of it's online investment portal armed with a host of revolutionary feature. RSL is a member of the National Stock Exchange of India, Bombay Stock Exchange of India, Depository Participant with National Securities Depository Limited and Central Depository Services (I) Limited, and SEBI approved Portfolio Manager • Religare has been constantly innovating in terms of product
and services and to offer such incisive services to specific user segments it has also started the NRI, FII, HNI and Corporate Servicing groups. These groups take all the portfolio investment decisions depending upon a client’s risk / return parameter. • Religare has a very credible Research and Analysis
division, which not only caters to the need of our Institutional clientele, but also gives their valuable inputs to investment dealers.
Religare is also providing in-house Depository services to
its clientele and is one of the leading depository service providers in the country.
Comparative Analysis of Companies
SERVICES ANGEL BROKING MUTUAL FUND INSURANCE PMS ONLINE BACKOFFICE E-BROKING INVESTMENT ADVISORY M-CONNECT FUNDING HOME LOANS SOFTWARE USING YES NO NO ODIN DIET YES YES YES YES YES YES
COMPANIES’ NAME INDIA BULLS NO YES NO YES YES YES NO YES YES POWER INDIAB ULLS
MARKET SHARE OF ANGEL BROKING LTD
M a r k e t S h a r e O f C o m p a n ie s
11% 26% A n g e l B ro k in g L td R e lig a re 28% In d ia b u lls A n a n d R a th i O th e rs 19% 16%
Angel Broking Ltd. has the highest market coverage with
respect to channel sales. This is because Angel has the highest number of sub-brokers. There are 105 sub-brokers in Jaipur
Angel Broking Ltd Client wise is No. 2 in India
Angel Broking Ltd has bagged the “Major Volume Driver
Award” (presented by the BSE) for 3 consecutive years
Angel Broking Ltd. is no.1 in India with respect to service
The following are the certain limitations of the study: 1. 2. Time constraint Geographical constraint
3. The survey is limited to few areas in Jaipur 4. Jaipur city is new place for me so I could not find potential customer in different places 5. I am new in this field and I have no any past experience of opening Demat account 6. People are reluctant to give appointment and real information 7. Product are expensive compare to other products in the field 8. Most of the people are not aware of the share market how to
trade so it’s hard to convince them 9. Jaipur is a very big city so it’s not easy to reach every single
DISCUSSIONS ON TRAINING
JOB PROFILE (ROLE AND RESPONSIBILITIES) In Training, My profile was Marketing Executive. My
responsibility was to do phone calls and take an appointment with customer .Their role in the organization was a new client acquisition for account opening
Giving product presentation to newly join
One of my roles in organization is to train newly joined employee. Tell them all about company, how the working process of company. What are the advantages of company so that they can convert clients in angel clients? How angel product is better than other competitor. What are the facilities in angel product which was not there in other competitor product?
Be in touch with the existing client for purpose
of quality management
After opening account we have to follow-up the existing client so that we can get feed back from them. After opening account what services executive promise did he getting all that services. It shows the quality of services. What client need is most important. Most it was create a good relation in-between me and my client. Existing client help me for my future target he can open account on name of his family member, relative or friends. Which was good for me to complete my target and it shows that I m giving the best service to them and he was happy with our service and quality.
Event organizing. To give the details of E-
broking services organizing
I have to take the responsibility of event for collecting data or leads. Before doing event we have to select a place to organize, for example big shopping malls (center one), corporate (millennium business park) so that we can get a proper or good feed back with a good collection of data. Why place important? For selling any product in market, companies do market segmentation. So that there product failure should be very less and they can success to achieve there target.
Visiting to clients for the purpose account
While visiting to client I have to put some points in my mind from were he was trading? What he not getting there? what his needs?. This analysis I have to do while talking on telephonic for appointment with client and I have make plan while going to client that, what best I can offer him. So that he can convert in my company client. While visiting to all my appointment I notice that all client want best from other. My experience say that they are competing with there friend relative indirectly. So if I m going to give best offer to them they are going to give me more accounts, more contacts.
Solving technical related queries of the client
After opening account I give training to them, but human are
not machine that they can learn all thing in a single day. So they do mistake. While login on online product, not getting list of market on there display, login problem, hanging problem, problem while placing order etc. this type of problem we have to solve. sometime they forget to download master file from site of company so they cannot able to see the moving market, some time people try to login more than 3 or 4 time in this process they get locked there id password so, to solve that problem I have reset there password by the help of surveillance department and password directly send to there email id which the client given when there account opening form filled. client complain that there order not going, but they doing mistake because they are putting order more than there 59
exposure given by company so order are rejected. This type of queries we have to solve.
The contribution towards the organization is adding values in order to bring business to the organization realizing the responsibilities, bringing potential clients to the organization.
Furthermore I had to also manage various direct marketing activities such as Tele-calling to clients regarding pre- meetings. Mailing to potential customers of the company regarding products and services. The new customers who want software demonstration, we provide that also etc. Taking feedback of the services ,which we were providing because it’s a key factor for our company growth and making long term relationships with customers Bringing potential client to the organization, not only for the purpose of trading but also for wealth management services (wms), which includes portfolio management services, mutual funds, IPO, angel gold. was my major contribution to the company.
STUDY OF SELECTED RESEARCH PROBLEM
STATEMENT OF RESEARCH OBJECTIVE
The objective of research is to know the competitors, volatile market, in order to bring improvement, in terms there drawbacks limitations etc.
STATEMENT OF RESEARCH PROBLEM
After sorting out the views, answers of the people, we can conclude the research problem like: 1. Drawbacks of our services. For Example: - The website
based product which we were offering to the clients was not good enough compare to other company. 2. To find out existing clients through research, who would
not get all the services or may be some, were he might have been deprived of recent facilities. 3. As per meeting with the existing and new clients, we come
to know that many people do not know how to operate certain technical products.
STATEMENT OF RESEARCH OBJECTIVE
• • • • • What is E-Broking? Prospects for E-Broking Benefit of E-Broking Benefit to User Benefit to Broker
What is E-Broking?
E-Broking means electronic broking or online trading. An electronic market is an attempt use information and communication technology to provide geographically dispersed traders with the information necessary for the fair operation of the market. The emarket is in effect, a broking service to bring together supplier and customer in the specific market segment. These markets give the customer easy access to comparative data on price An electronic broker is an intermediary who:• • May take an order from customer and pass to supplier May provide service to customer such as a comparison
between goods with respect to particular criteria such as price.
Prospects for E-Broking
E-Broking is still an evolving industry in India and the survivor are likely to be those brokers who are integrated service and are financially resilient. The future of e-broking industry thus largely depends on the extent of the penetration of the internet in the near future. Moreover the Bombay stock exchange (BSE) and National stock respectively. These engines will obviate the need for a broker to develop his own engines, and thus, resulted in capital investment savings. However, a user can log on to these engines using the website of the broker and trade electronically. These developments are, therefore, expected to give a strong fillip to the e-broking industry in India. exchange (NSE) have recently developed ‘proprietary’ trading engines called ‘WEBEX’ and ‘DOTEX’,
Benefit of E-Broking
In the recent year the use of internet has spread among investor in stock and shares. The internet can make up to the minute information available to a large number of investor that until recently had only been available to those working in financial institution. The use of online brokerage service automates the process of buying and selling and hence reduction of commission charges. Also the commodity being traded is intangible; the ownership of stocks and shares can be recorded electronically, so there is no requirement for physical delivery.
• • • • •
Transparency of fund 24*7 back office access Privacy of there portfolio Save time Detail of company etc.
Benefit to User
Low transaction cost’s
Brokerage rate in India are in the range of 1 to 1.5%. Where the
rate for e-broking are as low as 0.1%. The Bombay stock exchange (BSE) and national stock exchange (NSE) recently develop proprietary trading engine called WEBEX and DOTEX respectively. This engine will obviate the need for a broker to develop his own engine. E-Broking in addition, not only brings down the cost of the execution of the transaction but also speeds up the electronic transfer of securities.
E-Broking empowers the customer to transact directly on the
stock exchange and delayers the whole process thereby improving transparency. The user does not need to rely on the broker’s ‘word of mouth’ or ‘transaction’ slip for confirmation of the price at which his trade was conducted.
Online share trading is available merely at the click of a button,
in the comfort of home / office. Thus, making it much more convenient for the customer to trade anytime. Also with ‘limitbased’ order being allowed, customer can place there order even during the ‘non-trading’ hour, which are executed at the earliest trading possibility.
Benefit to Broker
Easier risk management
Under the online mechanism, the system would first check the
status of funds available with the client in his bank account and only then allow to trade to take place. This process thus substantially reduces the exposure of the broker to client related credit and payment risk.
Greater business potential
The new paradigm of e-broking which allows simple
convenient and transparent transactions may encourage more participants to trade. It is expected that the introduction of ebroking will expand the market horizon, thus resulting in better business for brokers in the long term
Lower staff costs.
Automation of the broking processes results in reduced manpower requirement, flexibility of time, less infrastructure cost etc. offering significant cost saving to broker.
DESCRIPTION OF TERMINOLOGY USED IN BROKING COMPANIES
The money you earn is partly spent and the rest saved for meeting future expenses. Instead of keeping the savings idle you may like to use savings in order to get return on it in the future. This is called Investment.
Why should one invest?
One needs to invest to: • • • earn return on your idle resources generate a specified sum of money for a specific goal in life make a provision for an uncertain future
One of the important reasons why one needs to invest wisely is to meet the cost of Inflation. Inflation is the rate at which the cost of living increases. The cost of living is simply what it costs to buy the goods and services you need to live. Inflation causes money to lose value because it will not buy the same amount of a good or a service in the future as it does now or did in the past. For example, if there was a 6% inflation rate for the next 20 years, a Rs. 100 purchase today would cost Rs. 321 in 20 years. This is why it is important to consider inflation as a factor in any long-term investment strategy. Remember to look at an investment's 'real' rate of return, which is the return after inflation.
The aim of investments should be to provide a return above the inflation rate to ensure that the investment does not decrease in value. For example, if the annual inflation rate is 6%, then the investment will need to earn more than 6% to ensure it increases in value.
If the after-tax return on your investment is less than the inflation rate, then your assets have actually decreased in value; that is, they won't buy as much today as they did last year.
When to start Investing?
The sooner one starts investing the better. By investing early you allow your investments more time to grow, whereby the concept of compounding (as we shall see later) increases your income, by accumulating the principal and 7 the interest or dividend earned on it, year after year. The three golden rules for all investors are:
• • •
Invest early Invest regularly Invest for long term and not short term
What care should one take while investing?
Before making any investment, one must ensure to: 1. Obtain written documents explaining the investment 2. Read and understand such documents 3. Verify the legitimacy of the investment 4. Find out the costs and benefits associated with the investment
5. Assess the risk-return profile of the investment 6. Know the liquidity and safety aspects of the investment 7. Ascertain if it is appropriate for your specific goals 8. Compare these details with other investment opportunities available 9. examine if it fits in with other investments you are considering or you have already made 10. Deal only through an authorized intermediary 11. Seek all clarifications about the intermediary and the investment 12. Explore the options available to you if something were to go wrong, and then, if satisfied, make the investment. These are called the Twelve Important Steps to Investing
What is meant by Interest?
When we borrow money, we are expected to pay for using it – this is known as Interest. Interest is an amount charged to the borrower for the privilege of using the lender’s money. Interest is usually calculated as a percentage of the principal balance (the amount of money borrowed). The percentage rate may be fixed for the life of the loan, or it may be variable, depending on the terms of the loan.
What factors determine interest rates?
When we talk of interest rates, there are different types of interest rates - rates that banks offer to their depositors, rates that they lend to their borrowers, the rate at which the Government borrows in the 8 Bond/Government Securities market, rates offered to investors in small savings schemes like NSC, PPF, and rates at which companies issue fixed Deposits etc.
The factors which govern these interest rates are mostly economy related and are commonly referred to as macroeconomic factors. Some of these factors are:
• • • • •
Demand for money Level of Government borrowings Supply of money Inflation rate The Reserve Bank of India and the Government policies
which determine some of the variables mentioned above
What are various options available for investment?
One may invest in: Physical assets Like real estate, gold/jewellery, commodities etc. and/or
Financial assets Such as fixed deposits with banks, small saving instruments with post offices, insurance/provident/pension fund etc. or securities market related instruments like shares, bonds, debentures etc.
What are various Short-term financial options available for investment?
Broadly speaking, savings bank account, money market/liquid funds and fixed deposits with banks may be considered as shortterm financial investment options:
Savings Bank Account
This is often the first banking product people use, which offers low interest (4%-5% p.a.), making them only marginally better than fixed deposits.
Money Market or Liquid Funds
They are a specialized form of mutual funds that invest in extremely short-term fixed income instruments and thereby provide easy liquidity. Unlike most mutual funds, money market funds are primarily oriented towards protecting your capital and then, aim to maximize returns. Money market funds usually yield 9 better returns than savings accounts, but lower than bank fixed deposits.
Fixed Deposits with Banks
They are also referred to as term deposits and minimum investment period for bank FDs is 30 days. Fixed Deposits with banks are for investors with low risk appetite, and may be considered for 6-12 months investment period as normally interest on less than 6 months bank FDs is likely to be lower than money market fund returns.
What are various Long-term financial options available for investment?
Post Office Savings Schemes, Public Provident Fund, Company Fixed Deposits, Bonds and Debentures, Mutual Funds etc.
Post Office Savings:
Post Office Monthly Income Scheme is a low risk saving instrument, which can be availed through any post office. It provides an interest rate of 8% per annum, which is paid monthly. Minimum amount, which can be invested, is Rs. 1,000/- and additional investment in multiples of 1,000/-. Maximum amount is Rs. 3, 00,000/- (if Single) or Rs. 6, 00,000/- (if held jointly) during a year. It has a maturity period of 6 years. A bonus of 10% is paid at the time of maturity. Premature withdrawal is permitted if deposit is more than one year old. A deduction of 5% is levied from the principal amount if withdrawn prematurely; the 10% bonus is also denied.
Public Provident Fund:
A long term savings instrument with a maturity of 15 years and interest payable at 8% per annum compounded annually. A PPF account can be opened through a nationalized bank at anytime during the year and is open all through
The year for depositing money. Tax benefits can be availed for the amount invested and interest accrued is tax-free. A withdrawal is permissible every year from the seventh financial year of the date of opening of the account and the amount of withdrawal will be limited to 50% of the balance at credit at the end of the 4th year immediately preceding the year in which the amount is withdrawn or at the end of the preceding year whichever is lower the amount of loan if any.
Company Fixed Deposits:
These are short-term (six months) to medium-term (three to five years) borrowings by companies at a fixed rate of interest which is payable monthly, quarterly, semi10 annually or annually. They can also be cumulative fixed deposits where the entire principal along with the interest is paid at the end of the loan period. The rate of interest varies between 6-9% per annum for company FDs. The interest received is after deduction of taxes.
It is a fixed income (debt) instrument issued for a period of more than one year with the purpose of raising capital. The central or state government, corporations and similar institutions sell bonds.
A bond is generally a promise to repay the principal along with a fixed rate of interest on a specified date, called the Maturity Date.
These are funds operated by an investment company which raises money from the public and invests in a group of assets (shares, debentures etc.), in accordance with a stated set of objectives. It is a substitute for those who are unable to invest directly in equities or debt because of resource, time or knowledge constraints. Benefits include professional money management, buying in small amounts and diversification. Mutual fund units are issued and redeemed by the Fund Management Company based on the fund's net asset value (NAV), which is determined at the end of each trading session. NAV is calculated as the value of all the shares held by the fund, minus expenses, divided by the number of units issued. Mutual Funds are usually long term investment vehicle though there some categories of mutual funds, such as money market mutual funds which are short term instruments.
What is meant by a Stock Exchange?
The Securities Contract (Regulation) Act, 1956 [SCRA] defines ‘Stock Exchange’ as any body of individuals, whether incorporated or not, constituted for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities. Stock exchange could be a regional stock exchange whose area of operation/jurisdiction is specified at the time of its recognition or national exchanges, which are permitted to have nationwide trading since inception. NSE was incorporated as a national stock exchange. 76
What is an ‘Equity’/Share….?
Total equity capital of a company is divided into equal units of small denominations, each called a share. For example, in a company the total equity capital of Rs 2,00,00,000 is divided into 20,00,000 units of Rs 10 each. Each such unit of Rs 10 is called a Share. Thus, the company then is 11 said to have 20, 00,000 equity shares of Rs 10 each. The holders of such shares are members of the company and have voting rights.
What is a ‘Debt Instrument’?
Debt instrument represents a contract whereby one party lends money to another on pre-determined terms with regards to rate and periodicity of interest, repayment of principal amount by the borrower to the lender. In the Indian securities markets, the term ‘bond’ is used for debt instruments issued by the Central and State governments and public sector organizations and the term ‘debenture’ are used for instruments issued by private corporate sector.
What is a Derivative?
Derivative is a product whose value is derived from the value of one or more basic variables, called underlying. The underlying asset can be equity, index, foreign exchange (forex), commodity or any other asset. Derivative products initially emerged as hedging devices against fluctuations in commodity prices and commoditylinked derivatives remained the sole form of such products for almost three hundred years. The financial derivatives came into spotlight in post-1970 period due to growing instability in the financial markets. However, since their emergence, these products
have become very popular and by 1990s, they accounted for about two thirds of total transactions in derivative products.
What is a Mutual Fund?
A Mutual Fund is a body corporate registered with SEBI (Securities Exchange Board of India) that pools money from individuals/corporate investors and invests the same in a variety of different financial instruments or securities such as equity shares, Government securities, Bonds, debentures etc. Mutual funds can thus be considered as financial intermediaries in the investment business that collect funds from the public and invest on behalf of the investors. Mutual funds issue units to the investors. The appreciation of the portfolio or securities in which the mutual fund has invested the money leads to an appreciation in the value of the units held by investors. The investment objectives outlined by a Mutual Fund in its prospectus are binding on the Mutual Fund scheme. The investment objectives specify the class of securities a Mutual Fund can invest in. Mutual Funds invest in 12 various asset classes like equity, bonds, debentures, and commercial paper and government securities. The schemes offered by mutual funds vary from fund to fund. Some are pure equity schemes; others are a mix of equity and bonds. Investors are also given the option of getting dividends, which are declared periodically by the mutual fund, or to participate only in the capital appreciation of the scheme
What is an Index?
An Index shows how a specified portfolio of share prices is moving in order to give an indication of market trends. It is a basket of securities and the average price movement of the basket
of securities indicates the index movement, whether upwards or downwards.
What is a Depository?
A depository is like a bank wherein the deposits are securities (viz. shares, debentures, bonds, government securities, units etc.) in electronic form.
What is Dematerialization?
Dematerialization is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form and credited to the investor’s account with his Depository Participant (DP).
SECURITIES What is meant by ‘Securities’?
The definition of ‘Securities’ as per the Securities Contracts Regulation Act (SCRA), 1956, includes instruments such as shares, bonds, scrips, stocks or other marketable securities of similar nature in or of any incorporate company or body corporate, government securities, derivatives of securities, units of collective investment scheme, interest and rights in securities, security receipt or any other instruments so declared by the Central Government.
What is the function of Securities Market?
Securities Markets is a place where buyers and sellers of securities can enter into transactions to purchase and sell shares, bonds, debentures etc. Further, it performs an important role of enabling corporate, entrepreneurs to raise resources for their companies and business ventures through public issues. Transfer of resources from those having idle resources (investors) to others who have a need for them (corporate) is most efficiently achieved through the securities market. Stated formally, securities markets provide channels for reallocation of savings to investments and entrepreneurship. Savings are linked to investments by a variety of intermediaries, through a range of financial products, called ‘Securities’.
Which are the securities one can invest in?
• • • • Shares Government Securities Derivative products Units of Mutual Funds etc. are some of the securities
investors in the securities market can invest in.
Regulator Why does Securities Market need Regulators?
The absence of conditions of perfect competition in the securities market makes the role of the Regulator extremely important. The regulator ensures that the market participants behave in a desired manner so that securities market continues to be a major source of finance for corporate and government and the interest of investors are protected.
Who regulates the Securities Market?
The responsibility for regulating the securities market is shared by Department of Economic Affairs (DEA), Department of Company Affairs (DCA), Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI).
What is SEBI and what is its role?
The Securities and Exchange Board of India (SEBI) is the regulatory authority in India established under Section 3 of SEBI Act, 1992. SEBI Act, 1992 provides for establishment of Securities and Exchange Board of India (SEBI) with statutory powers for (a) protecting the interests of investors in securities (b) promoting the development of the securities market and (c) regulating the securities market. Its regulatory jurisdiction extends over corporate in the issuance of capital and transfer of securities, in addition to All intermediaries and persons associated with securities market. SEBI has been obligated to perform the aforesaid functions by such measures as it thinks fit. In particular, it has powers for: 81
Regulating the business in stock exchanges and any other
securities markets • Registering and regulating the working of stock brokers,
sub–brokers etc. • • • Promoting and regulating self-regulatory organizations Prohibiting fraudulent and unfair trade practices Calling for information from, undertaking inspection,
conducting inquiries and audits of the stock exchanges, intermediaries, self regulatory organizations, mutual funds and other persons associated with the securities market.
Definition of Research
The word research is derived from the Latin word meaning to know. It is a systematic and a replicable process which identifies and defines problems, within specified boundaries. It employs well designed method to collect the data and analyses the results. It disseminates knowledge. the findings to contribute to generalizeable
The five characteristics of research presented below will be examined in greater detail later are:
Systematic problem solving which identifies variables and tests relationships between them. others. Empirical, so decisions are based on data collected. Logical, so procedures can be duplicated or understood by
Reductive, so it investigates a small sample which can be generalized to a larger population.
Replicable, so others may test the findings by repeating it.
OBJECTIVE OF RESEARCH Research design phase :This phase mainly involve stating the conceptual structure within which research would be conducted. The main steps involved in this phase are as:
The sample was selected for the study by convenient method. This type of sampling where each & every item in the population has an equal chance of inclusion in the sample.
Under the study the customers are considered the sample unit in JAIPUR & Jaipur, Bundi Districts.
The sample for research consisted of 100 Customers of JAIPUR Jaipur & Bundi Districts. The sample was spread all over the
JAIPUR Jaipur& Bundi Districts. The sample size was restricted to 100 because of financial & time constraint.
SOURCES OF DATA COLLECTION
There are two sources: 1. Primary sources:Primary data is collected through market survey. 2. secondary sources:Secondary sources are websites and brouchers.
Preparation of Questionnaire :-
The questionnaire was prepared by the researcher himself. The preparation of questionnaire was done by keeping the objective of study in mind. The researcher took some help from experts during the framing of questionnaires. The preparation of questionnaire took about 4-5 days. The questionnaire used for
study was of closed type since it is free from bias nature of respondents.
Analysis phase :-
After the data has been collected the researcher tabulated the data from the tables the researcher analyzed the data. During the analysis of data help of various types of charts & graphs was taken. The analysis phase took about seven days. For further results weighted average method was used whenever required. Finally on the basis of analysis various results and conclusions were drawn.
Data Analysis & Interpretation
Q.1 Do you know about Angel ?
Completely unaware, 9, 14%
Aware, 33, 50%
Have heard about them, 24, 36%
Have heard about them Aware
Q.2 Where would you like to Invest ?
50 40 30 20 10 0 Fixed Deposits 21
S hare M arket
Fina ncia l se rvice s
Q.3 Which company of the share market are you aware of ?
40 35 30 25 20 15 10 5 0
38 30 27 s 28 31
Q.4 Do you invest in share market ?
Q.5 In which brokerage house you have your demat account ?
Angel Broking Religare Indiabulls Anand Rathi
10, 17% 12, 21% 10, 17%
6 How often do you trade ?
Sometimes, 18, 34%
Daily, 18, 33%
Daily Weekly Monthly Sometimes
Monthly, 4, 8% Weekly, 13, 25%
Q.7 What is the brokerage charged(Intraday) by your company ?
1, 2% 3, 6% 9, 17% .10-.25 >.25 >.50 >.75 40, 75%
Q.8 Which of these products apart from equity your company is providing ?
35 30 25 20 15 10 5 0 Insurance Investment advisory Mutual fund P.M.S Trading All of the above
Q.9 Does your company provide online trading ?
No, 6, 11%
Yes, 50, 89%
Q.10 Are there any charges for online trading facility ?
Yes, 22, 41% Yes No No, 32, 59%
Q.11 What ranks would you give to these companies as per their services ?
16 14 12 10 8 6 4 2 0 Angel Broking Religare Indiabulls Anand Rathi Others 14 12 11 10 12
Angel Broking Ltd. is a world class company and providing
very good services to its clients
Its main objective to provide personalize services to the
In the survey it found that 50 percent people among the
whole are aware about the services providing by Angel Broking
44 persons are like to invest in share market among the
total which is the highest among other alternatives
Around 38 People among total are more aware about Angel
Broking Ltd. and like to give preference
There are 77 percent persons among total who like to invest
in Angel Broking Ltd. than others and 33 percent are used to trade
Angel Broking Ltd. is providing lots of services to its
clients like PMS, Investment Advisory, M-Connect, E-Broking, Insurance, Mutual Fund
89 percent people said that their company from where they
are availing investment in stock market is providing online trading and others are not
Among all the companies Angel Broking Ltd. is at the 1st
SUMMARY OF LEARNING EXPERIENCE We can summarize of our learning experience as how to behave in corporate world. 1. 2. 3. 4. How to work under pressure How to handle team. How to get worked done from team. To maximize the market share of the organization and how
to interact with the customer it is known. 5. 6. 7. 8. client. 9. 10. How to analyze the need of client. How to satisfy the need of client. What is the working process of organization? How to fight with competitors. How to find out the weaknesses of competitors. How to convert competitor’s client in our organization
. • I have achieved all the targets, which the company had set
for me for these two months. Up till now I have opened 4 demat accounts, and assisted its employees in various other activities
I have got the knowledge on how to operate a terminal for
trading in the stock market (ODIN based software).
Apart from this I have also developed skills on how to
interact with customers.
To succeed in digital space, marketers need to engaged, excite, enable customer, to fulfill there expectation. Marketing system is more agile and responsive. Customer experience and trusty, security and privacy are critical factor. E-World is unforgiving and has less patience. Hence promise to perform to keep up promise. Internet has resulted in consumer power shift and also marketing ability to respond and anticipate. Still the need for creative marketing exists. Internet is profound Impact on value changes activities. There is need to synergies online and offline effort to offer better value. Designing E-Business plan and measuring E-Metric is essential. Internet serves a new business for advertising, marketing research and sales promotion, distribution. Similar studies need to be conducted across diverse areas in B2C and B2B domains to understand attitudes, behavior and key success factor.
They should start funding facility
They should start loan facility
They should provide proper training to sub-brokers in the
area of customer service.
Time taken in account opening is too long i.e. 6-8 days in
comparison with other DP’s providing the account opening in 2-3 days and sometimes even in one day, so the time limit should be reduced so that the users are interested in opening the account.
A lot of Angel’s customers have been a result of “Word of
Mouth” awareness. If Angel could now focus on enhancing their Brand presence through marketing activities then Angel has the potential to attract more customers.
Name……………………………………. Age……………………. Occupation……………………………………………………….. Address…………………………………………………………… ……………………………………………….
Do you know about Angel ? Have heard about them
Completely unaware Aware
Where would you like to Invest ? Share Market
Fixed Deposits Property Jewellery
Which company of the share market are you aware of ? Religare
Angel Broking Indiabulls Anand Rathi
Do you invest in share market ?
In which brokerage house you have your demat account ? Religare
Angel Broking Indiabulls Anand Rathi
6. How often do you trade ? Daily Monthly Sometimes Weekly
7. What is the brokerage charged (Intraday) by your company ? .10-.25 >.50 >.75 >.25
8. Which of these products apart from equity your company is providing ?
Insurance Mutual Fund P.M.S All of the above
9. Are your company provide online backoffice facility ? Yes No
10.Does your company provide online trading ? Yes No
11. Are there any charges for this facility ? Yes No
12. What ranks would you give to these companies as per their services ? Angel Broking…………………. Religare…………………………..
Indiabulls……………………….. Anand Rathi…………………… Others……………………………
13. What do you expect from Angel Broking ? ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………….
14. Any suggestions ? ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ………………………………………
15. Any References ? a)……………………. b)…………………….
16) Are you aware of the Prevailing system of performance appraisal in your organization?
Yes, to certain extent
17) In my opinion, the need for performance management system in the organization.
18) My satisfaction with the appraisal system is:
performance areas. Very high Quite high Rather high
20) Extent of feedback & guidance provided to me before the annual appraisal about performance is:
21) The extent of unbiased assessment of my performance under the present system is:
22) Extent to which the current appraisal system is successful in finding the areas improvement in my performance:
23) The extent of effort in discovering my potential for shouldering higher responsibilities through the existing system of appraisal:
24) The extent of detailed discussion and guidance for future performance on the basis of past year’s performance appraisal:
Very low 112
25) Do the appraisal system helps appraise to gain more insights into their strengths and weakness:
26)Do you have any suggestion to improve the current appraisal system of your quote: organization?If yes, please
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