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Comparati Ve Analysis of Broking Firms: Submitted To: Prof. Samarjeet Sen Gupta
Comparati Ve Analysis of Broking Firms: Submitted To: Prof. Samarjeet Sen Gupta
ve
Analysis
Of Broking
Firms
Submitted to :
Prof. Samarjeet
Sen Gupta
MINHAAL REEMA
Contents
S/N
O.
TOPICS
PAGE NO.
1.
Acknowledgement
2.
Declaration
3.
Objectives
4.
Introduction
5.
Company Profile
6.
12
7.
8.
13
Activation and Other Charges
Of Different Co.
Data Analysis
9.
14
20
Findings
10.
21
Annexure
11.
22
Bibliography
Acknowledgement
Preservation, inspiration and motivation have always
played a key role in the success of any venture. In the present
world of competition and success understanding of theoretical
and practical working makes you aware about the real
Business; willingly we prepared this particular project.
We would like to thank our faculty Prof. Samarjeet Sen
Gupta to give us the opportunity to do this project.
We would also like to thank the Microsec Capital Ltd. for
helping us to provide the information about their broking firm.
And finally, we would like to thank EIILM for providing us
the platform to do this project and to learn about the different
broking firms.
Declaration
We the student of Eastern Institute for Integrated Learning in
Management, Kolkata , declare that this project report title A
COMPARITEIVE STUDY OF VARIOUS BROKING FIRMS
submitted, is our original work and has not been previously
submitted as a part of any other degree or diploma of another
Business school or University.
Objectives
1.
2.
3.
Introduction
The Bombay Stock Exchange (BSE)
and the National Stock Exchange of
India Limited (NSE) are the two primary
exchanges in India. In addition, there are 22 Regional Stock
Exchanges. However, the BSE and NSE have established
themselves as the two leading exchanges and account for
about 80% of the equity volume traded in India. The NSE and
BSE are equal in size in terms of daily traded volume.
The average daily turnover at the exchanges has
increased from Rs851crore in 1997-98 to Rs1284crore in 199899 and further to Rs2273crore in 1999-2000. NSE has around
1500 shares listed with the total market capitalization of around
Rs9, 21,500crore.
The BSE has over 6000 stocks listed and has a market
capitalization of around Rs9, 68,000crore. Most key stocks are
traded on both the exchanges and hence the investor could buy
on either of the exchanges. Both exchanges have a different
settlement cycle, which allows investors to shift their position
on the bourses. The primary index of BSE in BSE Sensex
comprises 30 stocks. NSE has the S&P NSE 50 Index (Nifty),
which consists of fifty stocks. The BSE Sensex is the older and
most widely followed index. Both these indices are calculated
on the basis of market capitalization and contain the heavily
traded shares from key sectors.
The markets are closed on Saturdays and
Sundays. Both the exchanges have switched
over from the open outcry trading system to a
fully automated computerized mode of trading
known as BOLT (BSE On Line Trading) and NEAT
(National Exchange Automated Trading) system.
It
facilitates
more
efficient
processing,
automatic order matching, faster execution of
trades and transparency.
The scrip traded on the BSE has been classified into A, B1,
B2, C, F, and Z groups. The A group shares represent
those, which are in the carry forward system (Badla). The F
group represents the dept market (fixed income securities)
segment. The Z group scrip is the blacklisted companies. The
C group covers the odd lot securities in A, B1, & B2 groups
and Rights renunciations. The key regulator governing Stock
6
Financial Market
MONEY MARKET:
The Money Market refers to the market where borrowers
and lenders exchange short-term funds to solve their liquidity
needs.
CAPITAL MARKET:
The Capital Market is a market for financial investments
that are direct or indirect claims to capital (Gart, 1988).
SECURITIES MARKET:
It
refers
to
the
markets
for
those
financial
instruments/claims/obligations that are commonly and readily
transferable by sale. It has two inter-dependent and
inseparable segments, the new issues (primary) market and the
stock (secondary) market.
Primary Market
Securities generally have two stages in their lifespan. The
first stage is when the company initially issues the security
directly from its treasury at a predetermined offering price.
This is a primary market offering. It is referred to as the
Initial Public Offering (IPO). In Primary market, securities are
offered to public for subscription for the purpose of raising
capital or fund.
Secondary Market
Secondary market refers to a market where securities are
traded after being initially offered to the public in the primary
market and listed on the Stock Exchange. Majority of the
trading is done in the secondary market. Secondary market
comprises of equity markets and the debt markets.
7
EQUITIES
Investment Banking
Insurance
Depository Services
Mutual funds-SIP
Mediclaim
DE-MAT ACCOUNT
Definition:
De-mat account is a safe and convenient means of holding
securities just like a bank account is for funds. Today,
practically 99.9% settlement (of shares) takes place on De-mat
mode only. Thus, it is advisable to have a Beneficiary Owner
(BO) account to trade at the exchanges.
Benefits Of De-mat Account:
1. A safe and convenient way of holding securities. (equity and
debt instruments both).
2. Transactions involving physical securities are costlier than
those involving dematerialized securities (just like the
transactions through a bank teller are costlier than ATM
transactions). Therefore, charges applicable to an investor are
lesser for each transaction.
3. Securities can be transferred at an instruction immediately.
4. Increased liquidity, as securities can be sold at any time during
11
11.
Any change in address or bank account details can be
electronically intimated to all companies in which investor
holds any securities, without having to inform each of them
separately.
12.
Securities are transferred by the DP itself, so no need to
correspond with the companies.
13.
Shares arising out of bonus, split, consolidation, merger
etc. are automatically credited into the De-mat account of the
investor.
14.
13
Microsec
Capital
Ltd
A/c
Openin
g
Charge
s
Brokerage
(Intraday,
Delivery)
AMC
Trading
Exposur
e
Intere
st
Rate
Debit
Perio
d
Mode
of
Trading
Margin
Money
Softwar
used
NIL
3p,30p
Rs350p
a
5 times
18%
T+2
Online
/
Offline
Rs500
0
NOW
NIL
5p,50p
1st yr
free, 2nd
yr
Rs400
4-6
times
19%
T+4
Online
/
Offline
Rs500
0
Rs750
50p,75p
Rs500p
a
3-4
times
18%
T+2
Online
/
Offline
NIL
Accese
through
net
Rs900
3-4p,
30-40p
NIL
4-5
times
17%
T+2
Online
/
Offline
NIL
Power
India
Bulls
Rs660
3p,20p
Rs225
4-6
times
18%
T+2
Both
online/
Offline
Rs500
0/10,0
00
Sharekh
an
ICICI
Direct
Indiabull
s
Angel
broking
14
Data Analysis
Primary Data collection
Structured questionnaire for customer.
Research Approach
Descriptive approach
Techniques to be used in Research Approach
Survey and Interview
Data Findings
15
82
47
35
Online/Offline Trading
Total Sample(82)
online(64)
offline(18)
16
30
25
20
15
10
5
0
Column1
17
Mode Of Awareness
30
25
20
15
10
5
0
18
25
20
15
10
5
0
19
20
Findings
According to the data that have been collected all the
people who were surveyed are aware of share market and
trading.
Survey shows that the nearly 79% people prefer the online
trading rather than that of offline trading through broker.
People like to invest more in equity rather than other
investment sectors.
The best preferred broking firm among the people is ICICI
direct with 22% rather than other broking firms.
Friends, News paper and Internet are the most preferred
mode for awareness of the broking firms and share trading
Annexure
21
QUESTIONAIRE
1. Are you interested in share trading?
a) Yes
b) No
2. Which mode of trading would you prefer?
a) Online b) Offline
3. Which type of product do you invest in?
a) Mutual fund b) Equity c) Commodity d) Insurance e) Others
4. If you trade in future, which broking firm would you prefer?
a) Share khan b) India Bulls c) Angel broking d) ICICI Direct e) Microsec f)
Others
5. How did you come to know about the broking firm?
a) Newspaper b) Journals c)TV Advertisement d) Friends e)Internet f) Others
6. How important do you think these factors influence in choosing a broking
firm?
(Select one)
a) Low brokerage
Not very important
5 Extremely important
5 Extremely important
c) Brand loyalty
Not very important
5 Extremely important
5 Extremely important
5 Extremely important
5 Extremely important
d) Margin money
Not very important
g) Friends recommendations
22
5 Extremely important
NAME:
AGE:
GENDER: MALE/FEMALE
CONTACT NO:
Bibliography
Internet Referrals:
www.sharekhan.com
www.icicidirect.com
www.nseindia.com
www.google.com
www.indiabulls.com
www.angelbroking.com
23