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Summer project report on Comparative Analysis of Broking Companies and Financial performance of Edelweiss Broking Ltd.

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IN PARTIAL FULLFILMENT OF POST GRADUATE DIPLOMA IN MANAGEMENT Submitted to Puneet Dublish Submitted by Ankit Kapoor

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to the staff of without whose support and guidance I would have not got the unique opportunity to successfully complete my internship in this esteemed organization. I am gratified to Puneet Dublish for their earnest coordination owing to which. ltd. with their vast knowledge in the field. I take this opportunity to express my deep gratitude to all the employees of.Carol Bagh. Edelweiss Capital Pvt.ACKNOWLEDGEMENT This report bears the imprint of many people. I had the leg-up of undertaking the internship at the prominent organization. I also thank all those people whom I met in the industry during my internship and helped me to accomplish my assignments in the most efficient and effective manner. Edelweiss Capital.Siddhraj who took sincere efforts and illustrated the Concept of Wealth Management. Last but not least. Right from the experienced staff of Edelweiss Capital. Sachin Arora and Mr. 4 . which helped me in carrying out my internship. Mr. knowledge and suggestions provided by my guide. Also I am indebted for the rich guidance.

RESEARCH METHODOLOGY  Objective of study  Type of research  Sample design  Size of sample  Sources of data collection 6. FINDING & ANALYSIS 8. SUGGESTIONS 9. APPENDIX(Questionnaire) 12. COMPANY PROFILE 4. REVIEW OF LITERATURE 5. ACKNOWLEDGEMENT 2. BIBLIOGRAPHY 60 61 62 63 67 46 50 18 37 40 10 7 5 . LIMITATIONS 10. COMPARATIVE ANALYSIS 7. INTRODUCTION  Introduction to stock exchange  Introduction of the company 3. CONCLUSION 11.CONTENTS 1.

they often act as an agent for their clients. providing suggestions to their clients on what stocks to buy and sell. Thus. 6 . Because Stockbrokers are one of the main participants in stock exchanges worldwide. products. it is an extremely arduous task for a broker to investigate aspects of the stock market and consistently provide effective advice to their clients. and their subsidiaries. these broker systems are quite large and complicated by themselves. Such a system should provide tools for interacting with exchanges and performing analysis. brokers perform their day-to-day tasks with the aid of a broker system. They also act as advisors.PREFACE ³A good broker system must be able to cope with an extremely complex and dynamic environment. Many stocks are available to be bought and sold. As a consequence. With so many options and considerations that need to be taken into account. This research aims is to analysis Stock broker on the basis of their services. growth.´ The microstructure of the stock market in which brokers work is highly dynamic and volatile. making trades on their behalf. each exhibiting its own patterns and characteristics that are highly unpredictable.

The major findings of this study are that people are interested to invest in stock market but they lack knowledge. what are our Company¶s (Edelweiss Broking Ltd. on the basis of which we come to know what can be the basis of pitching to a potential client. We also gave suggestions to the company.Executive Summary There is growing competition between brokerage firms in post reform India. 7 . Research was carried out to find which brokerage house people prefer and to figure out what people prefer while investing in stock market. what improvement can be done to our product. Through this report we were also able to understand. This study suggest that people are reluctant while investing in stock and commodity market due to lack of knowledge Main purpose of investment is returns and liquidity. For investor it is always difficult to decide which brokerage firm to choose.) positive and strong points. commodity market is less preferred by investors due to lack of awareness.

There are mainly two types of Portfolio management strategies. Therefore. In most of the metros. people like to put their money in stock options instead of dumping it in the bank-lockers. Asset management firms allow investors to estimate both the expected risks and returns. delegated brokerage management is arguably one of the most important agency relationships intervening in the economy. A passive strategy assumes that the marketplace will reflect all available information in the price paid for securities 2. On the other hand. a number of brokerage houses make sure the hassle free investment in stocks. 8 . As the per-capita-income of the city is on the higher side. but through a financial intermediary. My research is based on the Delhi-NCR. this trend pick pace in small but fast developing cities like Gurgaon. so it is quite obvious that they want to invest their money in profitable ventures. Active Portfolio Strategy 1. with a possible impact on financial market and economic developments at a macro level. Passive Portfolio Strategy: A strategy that involves minimal expectation input. Now. and instead relies on diversification to match the performance of some market index. which implies the existence of an agency contract between the investor (the principal) and a broker or portfolio manager (the agent).INTRODUCTION In most industrialized countries. Active Portfolio Strategy: A strategy that uses available information and forecasting techniques to seek a better performance than a portfolio that is simply diversified broadly. a substantial part of financial wealth is not managed directly by savers. 1. Noida etc. as measured statistically. Passive Portfolio Strategy 2.

a few native brokers doing brokerage business in shares and stocks resolved upon forming in Bombay an association for protecting the character. the chartered mercantile bank. the number of brokers increased considerably. It also quoted the prices of business ventures like the Bengal bonded warehouse. But during the share mania of 1860-65. their number increased to about 200 to 250. In Calcutta. the oriental bank and the old bank of Bombay and shares of cotton presses. the number of brokers was about 60 and during the exciting period of the American Civil war. the Docking Company and the storm tug company. On or about 9th day of July. status and interest of native share and stock brokers and providing a hall or building for the use of the members of such association.BACKGROUND OF STOCK EXCHANGE IN INDIA The emergence of stock market can be traced back to 1830. the chartered bank. Englishman reported the quotations of 4%. the Articles of Association of the Exchange and the Stock Exchange 9 . In Bombay. 1887.1875. Between 1840 and 1850. As a meeting held in the broker¶ Hall on the 5th day of February. By 1860. This list was a further broadened in 1839 when the Calcutta newspaper printed the quotations of banks like union bank and Agra bank. 5%. only half a dozen brokers existed for the limited business. It was in those troublesome times between 1868 and 1875 that brokers organized an informal association and finally as recited in the Indenture constituting the ³Articles of Association of the Exchange´. and 6% loans of East India Company as well as the shares of the bank of Bengal in 1836. business passed in the shares of banks like the commercial bank. it was resolved to execute a formal deal of association and to constitute the first managing committee and to appoint the first trustees. The end of American Civil war brought disillusionment and many failures and the brokers decreased in number and prosperity. Accordingly.

Of the total of 23. Organization structure of stock exchange varies. These are 1. these are run by some persons and with the help of some persons and institution. Rs. 48. These exchange do not work of its own. The numbers of members increased to 333 in 1896. Others have to seek recognition on annual basis.1 and there were 318 members on the list. sub-broker 3. All these are down as functionaries on stock exchange. Portfolio consultants etc.000 in 1920. The Association is now known as ³The Stock Exchange´.1000 in 1896. rather. At present there are 23 recognized stock exchanges with about 6000 stock brokers. 14 stock exchanges are organized as public limited companies. market makers 4. 1887. Rs. The entrance fee for new member was Re. Stockbrokers 2.2500 in 1916 and Rs. 6 as companies limited by guarantee and 3 are non-profit voluntary organization. 362 in 1916and 478 in 1920 and the entrance fee was raised to Rs. 10 .was formally established in Bombay on 3rd day of December.5 in 1877. when the exchange was constituted. only 9 stock exchanges have been permanent recognition.

of registered brokers as Total no.03. arbitrageur etc. sell or deal in securities. A certificate of registration from SEBI is mandatory to act as a broker. Stock brokers are commission broker. he must fulfill certain rules and regulation. floor broker.1.) Sub-broker A sub-broker acts as agent of stock broker. Detail of registered brokers Total no.2009 9000 24.000 2.03.) Stockbrokers Stock brokers are the members of stock exchanges.2009 31. 11 . SEBI can impose certain conditions while granting the certificate of registrations. selling or dealing in securities through stockbroker. of sub-brokers as on on 31. It is obligatory for the person to abide by the rules. For getting registered with SEBI. Sub-broker must be registered SEBI for a dealing in securities. These are the persons who buy. He assists the investors in buying. The broker and sub-broker should enter into an agreement in which obligations of both should be specified. regulations and the buy-law. He is not a member of a stock exchange.

A market maker has to abide by bye-laws.) Market Makers Market maker is a designated specialist in the specified securities. He is exempt from the margin requirements. As per the listing requirements. 12 . 4. programmed. mutual funds etc. 5 crore and having a commercial operation for less than 2 years should appoint a market maker at the time of issue of securities. rules regulations of the concerned stock exchange. a company where the paid-up capital is Rs. They make both bid and offer at the same time. bonds and money market instruments is collectively called as portfolio. It is basically a stock brokering company which deals in security and derivative market.B.) Portfolio consultants A combination of securities such as stocks. for our summer training project report. firms or companies who advise. Whereas the portfolio consultants are the persons.A. direct or undertake the management or administration of securities or funds on behalf of their clients. Partial fulfillment for degree of M. we received the opportunity from Edelweiss Broking Ltd. 3 crore but not more than Rs.3.

Edelweiss Capital Limited: A Profile _________________________ Introduction The Edelweiss Group is a conglomerate of 44 entities including 39 Subsidiaries and 4 Associate companies (September 09).IN. engaged in the business of providing financial services. It is a listed company since December 2007 under the symbols NSE: EDELWEISS.com). Edelweiss Capital Limited now employs about 1200 employees. 13 . today has emerged as one of India s leading integrated financial services conglomerates. BSE: 532922 and Bloomberg: EDEL. leveraging a strong partnership culture and unique model of employee ownership. The Group s product offerings are broadly divided into Investment Banking. Asset Management and Financing. Edelweiss Capital Limited (www. primarily linked to the capital markets. The company s research driven approach and consistent ability to capitalize on emerging market trends has enabled it to foster strong relationships across corporate. The Edelweiss Group offers one of the largest range of products and services spanning varied asset classes and diversified consumer segments. institutional and HNI clients.edelcap. Brokerage Services. incorporated in 1995.

Evolution of Edelweiss 14 .

The Capital business line includes Financing and Treasury Operations. Broking . The verticals within Investment Banking include Equity Capital Markets and Advisory services which offer Mergers & Acquisitions Advisory. Structured Finance Advisory.both Institutional and HNI/Retail. 15 . Edelweiss leadership position in Mid-market space is reflected in the # 1 ranking in both Bloomberg tables for Mid-market Private Equity placements in CY2007 and Prime Database league tables for IPOs in Mid-market segment in FY2008. It was adjudged winner in the Best Merchant Banker category in the Outlook Money NDTV Profit Awards 2008. catering to different market and client segments. Investment Banking Edelweiss has one of the most extensive product offerings within Investment Banking in India. The strategies employed ensure that broadly onethird of the total revenues are contributed by each of Agency fee & commission. Asset Management and Investment advisory and distribution services. The Agency business line includes Investment Banking.Business Overview Edelweiss operations are broadly divided into Agency and Capital business lines. Treasury Arbitrage & Trading income and Interest income thereby achieving the intended diversification in revenue streams. Real Estate Advisory and Infrastructure Advisory. Private Equity Syndication.

and Real Estate Funds etc. Direct Equity. Wealth Advisory & Investment Services The Primary focus is on understanding each client's profile including life style. Insurance.Broking Institutional Equities : Edelweiss has one of the leading institutional equities businesses in India backed by a large and experienced research team and a large and diversified client base. Intense servicing. risk appetite. growth expectations. current financial position and income requirements to create comprehensive and tailored investment strategies. Portfolio Management. seamless execution and innovative research products have helped Edelweiss build strong relationships with over 300 institutional investors. Research coverage presently extends to over 145 companies across 16 sectors accounting for nearly 70% of total market capitalization. The broad range of offerings includes asset allocation advisory to Structured Products. 16 . Mutual Funds. Product offerings include specialized trading execution for active trading clients and structured products like equity linked capital protection products. The quality and caliber of research associated with Edelweiss is widely regarded across the institutional community. Our commitment to provide cutting edge research has resulted in a pioneering effort to provide online research to our clients through the portal www.com with smart features of sorting of information. HNI Broking Edelweiss offers dedicated brokerage services to high net-worth individuals with a strong emphasis on building long-term relationships with clients. including FIIs and domestic institutional investors. Derivatives Strategies. Private Equity. analysis and archiving.edelresearch.

Real Estate Fund and a Bonds Fund. Asset Management Alternative Asset Management focuses on advisory/management expertise for India focused Multi-Strategy Fund. Recent Initiatives that have been announced include setting up an ARC for which RBI registration has been received. loans 17 .edelweiss. 2009 Edelweiss is ranked #2 in NIB (non institutional bidder) category and is ranked 4th in Retail category by the number of applications in IPOs as per Prime Database. Distribution business focuses on giving advice and analyzing the best financial product options available in the market.in is operational and provides advisory and research based broking services. An online retail broking portal www. It involves the distribution of the full range of third party financial products and services including IPO syndication for the retail customer. For the half year ended September 30. On the Domestic AMC side. the Company s primary offering in the financing business includes collateralized loan products such as promoter funding. Edelweiss also secured 1st rank in NIB category both in NHPC and OIL India IPOs by the number of applications. The focus of this business is on broad basing the product portfolio.Retail Initiatives Retail Broking and Distribution are the new initiatives of the Group under its Retail Business strategy. Financing With a deep knowledge and understanding of capital markets. Edelweiss Mutual Fund has launched a mix of debt and equity funds.

loans against ESOPs etc. The Company follows a disciplined and conservative approach to cash management with emphasis on strong risk policies. to build its trading engine and content. Nexgenix. Spider Software Pvt Ltd. Oracle. Intel & Carlyle are the other investors. On April 17. Treasury The Treasury Operations in Edelweiss is similar to that of a Treasury in a Commercial Bank and focuses on liquidity management and capital preservation. Microsoft. like Sun Microsystems. This was for the first time that a net-based trading station of this caliber was offered to the traders. IPO financing. Verisign Financial Technologies India Ltd. WORK STRUCTURE OF EDELWEISS Edelweiss has always believed in investing in technology to build its business. Its prudent financing norms and a conservative margin of safety ensures low or nil non±performing loans. This business adopts a multi± strategy/multi-book approach to diversify and grow its portfolio while imparting liquidity in the balance sheet. Vignette. HSBC.against shares. are net-based executable application that emulates the broker terminals along with host of other information relevant to the Day Traders. In the last six months SpeedTrade has become a de facto standard for the Day Trading community over the net. The Citi Venture holds a majority stake in the company. 18 . The company has used some of the best-known names in the IT industry. 2009 Edelweiss launched Speed Trade. Cambridge Technologies.

The number of trading members currently stands at over 7 Lacs. Finally. Planetasia.35 ( 16:14 ) Go Copyright © 2009 ECSL.0+ & Mozilla Firefox 2. Site is best viewed using Browsers Internet Explorer 7.700. Some of the clients include BPL Cellular Holding.81 ( 16:03 ) | NIFTY 5. Equities SENSEX 17. Essar.edelweiss.312. Gujarat Pipavav. The group has placed over US$ 5 billion in private equity deals. | Disclaimer | Terms & Conditions | Privacy Policy | Browser Settings About Us | Customer Service | Channel Partners | Our Offerings | Site Map Edelweiss : India`s leading Stock Broking Company provides online BSE and NSE Share Trading Services. and Shopper¶s Stop. investor friendly language and high quality research. Hutchison. in terms of the size of deal.0+ with resolution 1280 by 768.was launched on Feb 8.edelweiss.www.in . the site has a registered base of over 1 Lacs customers. Known for its jargon-free. The Corporate Finance section has a list of very prestigious clients and has many µfirsts¶ to its credit. Edelweiss shifted hands and Citi venture get holds on it. The site gives access to superior content and transaction facility to retail customers across the country.in Enter Stock for Company Details / Stocks for Comparison. Financial Performance 19 . sector tapped etc. 2009. While online trading currently accounts for just over 5 per cent of the daily trading in stocks in India. Edelweiss alone accounts for 27 per cent of the volumes traded online for HNI segment.50 56.90 166. The firm¶s online trading and investment site .www.

Operations of the company ESL¶s operation can be broadly classified into equity brokerage services and proprietary trading.400 lacs and its average utilization level has been around 50%. providing broking services to Institutional and corporate clients and high net worth individuals. The proceeds of the proposed CP issue are to be used for the aforesaid purposes. ESL has fund based bank limits on 2. However. ESL has to maintain high margins for its intraday transactions done on its proprietary book and for its clients. 20 . Unutilized margins paid to the exchanges as on last trading day of the month ranges from 16% to 45% during the period Apr-04 to Dec-04. As on 31st Dec¶04. ESL focuses on the wholesale equity segment. Fund Requirements ESL¶s fund requirements arise mainly on account of working capital requirement on account of deposits to be maintained with the exchanges for obtaining trading exposure limits and for meeting funds requirement for institutional clients.

31 OPERATING EFFICIENCY Operating Expenses/Total Incom Interest Expended/total Income 0.47 0.22 0.66 0.96 1.99 2.79 0.11 0.11 1.BRIEF FINANCIAL As on/For the Period ended 31st March Brokerage Income Inc from Securities &derivatives Total Income Employee Costs Operating and Other Expenses Interest Paid Total Expenses PBT PAT Networth Total Capital Employed 2006 2007 2008 2009 207 36 151 121 290 147 891 295 287 35 166 64 287 1 -12 537 527 301 65 171 46 289 11 10 536 1355 587 100 286 63 462 126 104 772 1559 1394 229 660 63 1030 364 243 1015 2315 SOLVANCY RATIOS Overall Debt/Equity Ratio Interest Coverage ratio Current Ratio 1.64 0.96 6.15 0.77 1.01 1.79 2.25 1.70 0.27 1.36 1.05 21 .

54 22 .42 27.86 1.05 17.PROFITABILITY RATIO PAT/Total Income (%) Return on Net Worth (%) Return on Capital Employed (%) -4.29 1.18 12.20 3.69 15.87 7.13 17.

The growth has been particularly strong in FY06 and H1FY¶10. Total income has grown at 70% p. PBT was positive).12 lacs incurred in FY01 (on account of prior period adjustment.a. 207 lacs in FY09 to Rs. from Rs. from a loss of Rs. Brokerage income contributed 64% of the ESL¶s total income in FY09.1.BROKERAGE INCOME 900 800 700 600 500 400 300 200 100 0 2006 2007 2008 2009 BROKERAGE INCOME COMMENT Brokerage income of ESL has grown at CAGR of 63% from Rs. 23 . However.394 lacs in FY04. ESL registered a profit of Rs.287 lacs in FY01 to Rs.243 lacs in FY09. 891 lacs in FY06. on account of buoyancy in the equity market.

INCOME FROM SECURITIES AND DERIVATIVES 300 250 200 150 100 50 0 2006 2007 2008 2009 INCOME FROM SECURITIES AND DERIVATIVES COMMENT The percentage of income from securities and derivatives is higher because percentages of deleing with securities and derivatives is higher. And the continuous increasing branches in the country. 24 .

25 .PROFIT AFTER TAX 250 200 150 100 50 0 -50 2006 2007 2008 2009 East COMMENT In 2006 company balance sheet shows higher depreciation and reduction of the fictitious assets and high investment to launch on line web portal.

is close to buying Anagram Stock Broking for Rs 150 crore.Edelweiss Capital Ltd. 16:04:13 IST | TEAM VCC Edelweiss Capital. which has companies like Arvind Mills. Anagram is owned by Lalbhai group . News Roundup: Edelweiss To Buy Anagram For Rs 150 Cr January 13 2010. among others. Edelweiss To Buy Anagram For Rs 150 Cr . one of the largest brokerages in India. Anagram has 169 branches and 3000. equity financing and investment banking. one of the largest brokerages in India.00 clients mainly in Gujarat and Maharashtra. Edelweiss is present in institutional equities. is close to buying Anagram Stock Broking for Rs 150Cr.NET WORTH 1200 1000 800 600 400 200 0 2006 2007 2008 2009 East COMMENT Company is eager to invest in the Indian market. (Mint) 26 .

27 .RETURN ON NET WORTH 30 25 20 15 10 5 0 2007 2008 2009 RETURN ON NET WORTH COMMENT These ratios shows response from the investors is good and supportive that¶s why company showing good returns .

over the Internet (through the website www. EDUCATION.in) as well as over the Voice Tool. Technology With their online trading account one can buy and sell shares in an instant from any PC with an internet connection. These services are accessible through many centers across the country (Over 650 locations in 150 cities).Equity Trading Platform (Online/Offline). Edelweiss won the 'India's best research house for 2006' award.edelweiss. 2. 28 . 1. it has been providing institutional-level research and broking services to individual investors.Portfolio Management Service. Ever since it launched Edelweiss as its retail broking division in February 2008. REASONS TO CHOOSE EDELWEISS BROKING LIMITED Experience EDELWEISS has more than ten year of trust and credibility in the Indian stock market. Customers get access to the powerful online trading tools that will help them to take complete control over their investment in shares.PRODUCTS OFFERED BY EDELWEISS BROKING LTD. In the Asia Money broker's poll held recently. Accessibility Edelweiss provides ADVICE. TOOLS AND EXECUTION services for investors.

They have a dedicated call-center to provide this service via a Toll Free Number 1800-22-750 from anywhere in India.sharekhan. has dedicated research teams of more than 100 people for fundamental and technical research. billing. 29 .Knowledge In a business where the right information at the right time can translate into direct profits. printed reports etc.sharekhan. email or live chat on www. Investment Advice Edelweiss Broking Ltd. Convenience One can call Edelweiss¶s Dial-N-Trade number to get investment advice and execute his/her transactions.com. Investors will also get a useful set of knowledge-based tools that will empower them to take informed decisions. investors get access to a wide range of information on the content-rich portal. demat and other queries.com. Their analysts constantly track the pulse of the market and provide timely investment advice to customer in the form of daily research emails. Their customer service can be contacted via a toll-free number. Customer Service Its customer service team assist their customer for any help that they need relating to transactions. online chat. www.

24x7 Voice Tool acess to your trading account. Secure Order by Voice Tool Dial-n-Trade. Automated Portfolio to keep track of the value of your actual purchases.Benefits y y y y y y y Free Depository A/c Instant Cash Tranfer Multiple Bank Option. y y y y y y 30 . Enjoy Automated Portfolio. Live Chat facility with Relationship Manager on Yahoo Messenger Special Personal Inbox for order and trade confirmations. Personalised Price and Account Alerts delivered instantly to your Mobile Phone & E-mail address. On-line Customer Service via Web Chat. Buy or sell even single share Anytime Ordering.

Saving Bank and Demat Account.in and is suitable for the retail investors who is risk-averse and hence prefers to invest in stocks or who do not trade too frequently. NSE F&O & BSE. Features y y y y y y y y y y Online trading account for investing in Equity and Derivatives via www. offers the following products:- FREE ACCOUNT OPENING This is a User Friendly Product which allows the client to trade through website www. 31 .Edelweiss Broking Ltd. Instant cash transfer facility against purchase & sale of shares. Streaming Quotes (Cash & Derivatives).edelweiss. Competitive transaction charges. Personalized market watch.in Live Terminal and Single terminal for NSE Cash. Provision to enter price trigger and view the same online in market watch. Single screen interface for Cash and derivatives and more.edelweiss. Instant order and trade confirmation by E-mail. Integration of On-line trading.

It is ideal for active traders and jobbers who transact frequently during day¶s session to capitalize on intra-day price movement.XPRESS XPRESS is an internet-based software application that enables you to buy and sell in an instant. 32 .

ICICI Bank and Axis Bank. 33 .Features y y y y y y y y y y Instant order Execution and Confirmation. Single screen trading terminal for NSE Cash. Avail a pay-in and pay-out option where you can transfer funds from and to your trading account. Live market debts. Back-up facility to place trades on Direct Phone lines. tic-by-tic charts. Market summary (Cost traded scrip. highest clue etc. Multiple Charting. Real-time streaming quotes. Alerts and reminders. Kotak bank wherein you can easily transfer funds from any of these banks. Tie ups with HDFC Bank. Technical Studies. NSE F&O & BSE. Yes Bank. Funds Transfer y y y Transfer funds between your savings account and trading account.) Hot keys similar to broker¶s terminal.

With this service. 34 . one can dial ESELWEISS¶s dedicated phone lines 1-800-22-7500. Beside this. the CLASSIC and XPRESS ACCOUNT also gives Dial-n-trade services.ORDER BOOK Along with enabling access for trade online. Relationship Managers are always available on Office Phone and Mobile to resolve customer queries.

Reasearch & Advice and Trading Calls live on the Mobile. A mobile based software where one can watch Stock Prices.MOBILE TRADING EDELWEISS had introduced mobile trading.edelweiss. Intra Day Charts. (As per SEBI regulations.) www. buying-selling shares through a mobile phone are not yet permitted.in MOBILE WEBSITE KEY FEATURES y Instant Market Updates y All Company Stock Quotes y Smart Financial Snapshots y Trading Strategies 35 .

Franklin Templeton Investments. great effective brokerages are also available (up to 50%) on brokerage. Sundaram. PRINCIPAL and TATA with Edelweiss. Simply allocate fund to IPO Account. Apply for the IPO and Sit Back & Relax. Beside this. SBI. Birla. ICICI Prudential. HDFC.ADVANCED BROKERAGE ACCOUNT Customers pay Advance Brokerage on trading Account and enjoy uninterrupted trading in their Account. Zero Balance ICICI Saving Account Edelweiss had tied-up with Yes bank for Zero Balance Account for Edelweiss¶s Clients. paperless and time saving. This is quite hassle-free. Now their customers can have a Zero Balance Saving Account with Yes Bank after your demat Account creation with Edelweiss. IPO ON-LINE Customers can apply to all the forthcoming IPOs online. DSP Merrill Lynch. Mutual Fund Online Investors can apply to Mutual Funds of Reliance. 36 .

111 3 month 0.09% EBCRB07 Rs 1. 50000 Rs 1.005% 200000000 EXPOSURE: 6 TO 7 TIMES (ON MARGIN MONEY) MAJOR PLAYERS IN THE REGION 37 .22% 0.009% 750000 1800000 4500000 9000000 45000000 125000000 EBSPN01 EBSPN02 EBSPN03 EBSPN04 EBSPN04 EBCRB06 Rs 2450 Rs 4950 Rs 9950 Rs 15000 Rs.10.17% 0.000 12 months 12 Months 12 Months 12 Months 12 month 12 month 0.027% 0.022% 0.011% 0.27% 0.33% 0.017% 0.033% 0.05% 0.CHARGE STRUCTURE Plan Advance Brokerage Fee Validity Period Brokerage Rates Equivalent delivery Turnover limit Delivery Futures and Intraday Cash 0.11% 0.11.

The birth of Karvy was on a modest scale in 1981. comprising the who is who of Corporate India.1. KARVY Karvy is a premier integrated financial services provider. HDFC security 5. It began with the vision and enterprise of a small group of practicing Chartered Accountants who founded the flagship company. diversify and in the process. Karvy Consultants Limited. 38 . evolved as one of India¶s premier integrated financial service enterprise. Since then. and ranked among the top five in the country in all its business segments.Religare 7. karvy utilized its experience and superlative expertise to go from strength to strength. Karvy has a professional management team and ranks among the best in technology. History of Karvy :. Karvy 2.Edelweiss Broking Ltd. and provides investor services to over 300 corporate. to better their services. They started with consulting and financial accounting automation and carved inroads into the field of registry and share accounting by 1985. operations and research of various industrial segments. Indiabulls 6. Indiainfoline 3. to innovate. ICICI direct 4. services over 16 million individual investors in various capacities.

Karvy merchant banking. Karvy consultant ltd. Karvy global services ltd. Karvy comtrade.PRODUCT AND SERVICES OF KARVY GROUP 1. 4. 2. 3. 39 .

IWTL has launched and established an online trading service on the Website. IPO¶s 5.ICICI DIRECT ICICI Web Trade Limited (IWTL) maintains www. PRODUCTS AND SERVICES OF ICICI DIRECT 1.com (herein after referred to as the "Website") whereas IWTL is an affiliate of ICICI Bank Limited and the Website is owned by ICICI Bank Limited. Personal Finance 3. Margin PLUS Trading 7. Call Trade 8. Margin Trading 6.icicidirect. Customer Service Features 4. Trading on NSE/BSE 9. Trade in derivatives INDIAINFOLINE SECURITY PRIVATE LTD 40 . Investing in Mutual funds 2.

is a wholly owned subsidiary of India Infoline.It Deals In Mutual Fund And Insurance.com Ltd and is the stock broking arm of India Infoline.com is a focused website for online stock market trading. 41 . 5paisa. IILSPL is in the business of providing broking services online via the Internet ("E-broking Services") and has been permitted by the NSE by way of registration permission no: NSEIL/CMO/INET/1103/2000 dated 03/July/2000.com Securities Pvt. and will be applying for permission to the BSE. Ltd. Personal finance:. IILSPL has applied for trading membership of the BSE under Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) Rules 1992.India Infoline. www. IILSPL is a TRADING MEMBER of the National Stock Exchange of India.com. Online Trading :.5paisa. PRODUCT OFFERED BY IILSPL Stock market:-IILSPL deals in stock market by trading in equity and derivatives.com group.It provides services in stock and commodity trading (through Internet).com is a trade name owned by the India Infoline. to provide E-broking Services to its clients. The subsidiary was formed to comply with regulatory guidelines.

hdfcsec.com would have an exclusive discretion to decide the customers who would be entitled to its online investing services. Online IPO's.hdfcsec. PRODUCT OFFERED BY HDFC SECURITY y y y y y y Online trading for Resident & Non Resident Indians. Telephone-based Broking (Equity & Derivatives). SEBI.HDFC SECURITY HDFC security is the subsidiary of HDFC (Housing Development Financial Corporation). i.com) contains features of services that they offer/propose to offer in due course.e.hdfcsec. Day trading on both NSE and BSE. NSE and BSE. Cash-n-Carry on both NSE and BSE. www.The present web site (www. www. INDIABULLS SECURITIES LIMITED 42 . The launch of new services is subject to the clearance of the regulators.com also reserves the right to decide on the criteria based on which customers would be chosen to participate in these services . Trade on Futures & Options on the NSE.

PRODUCT OFFERED BY INDIA BULLS 43 . ISL is a corporate member of capital market & derivative segment of The National Stock Exchange of India Ltd. a respected US based investment firm. 2004 so as to capitalize on the brand image of the term ³Indiabulls´ in the company name. 87. The name of the company was changed to Orbis Securities Private Limited on December 15. ISL accounts for approximately 3% of the total daily turnover of the Exchange with 32. Indiabulls Financial Services Ltd.3 per cent stake for Rs 87. and its affiliates have acquired 33.6-crore infusion. the recently formed subsidiary of broking firm. INDIABULLS CREDIT SERVICES LIMITED:. 1995.Indiabulls Securities Limited was incorporated as GPF Securities Private Limited on June 9. It is currently evaluating several large-scale projects worth several hundred million dollars. 2004.359 client relationships and 70 branches spread across the country as of April 30. the name was further changed to Orbis Securities Limited on January 5.6 crore. Faralon Capital. INDIABULLS REAL ESTATE:.Indiabulls through its group companies has entered Indian Real Estate business in 2005. 1995 to change the profile of the company and subsequently due to the conversion of the company into a public limited company. The name of the company was again changed to Indiabulls Securities Limited on February 16. Indiabulls became the first company to bring FDI in Indian Real Estate through a JV with Farallon Capital Management. a San Francisco-based private equity fund. 263 crore with the Rs. 2004. At present.Indiabulls Credit Services has been valued at Rs. Indiabulls Credit Services Ltd.

Equity & Debt Stock Broking Insurance Commodity trading Depository Services Derivatives Broking Services Equity Research Services Mutual Fund Distribution IPO Distribution SHAREKHAN 44 .

which has over eight decades of experience in the stock broking business.Sharekhan is one of the leading retail brokerage of Citi Venture which is running successfully since 1922 in the country. Sharekhan offers its customers a wide range of equity related services including trade execution on BSE. PRODUCT OFFERED BY SHAREKHAN Equity & Debt Stock Broking Commodity trading Depository Services Derivatives Broking Services Equity Research Services Mutual Fund Distribution IPO Distribution 45 . investment advice etc. online trading. NSE. Earlier it was the retail broking arm of the Mumbai-based SSKI Group. depository services. Derivatives.

03% .15% 0.50% 0.0.50% 300 300 500 Nil 500 250 0.50% 0.03% .15% 0.10% 0.0.10% AMC* 0.50% 0.25% .05% . REVIEW OF LITERATURE 46 .03% .01% 0.10% Nil AMC=ACCOUNT MAINTENANCE CHARGES.30% 0.0.0.0.02% .20% .01% card system 0.0.0.30% .0.03% 0.50% 0.Online Broker Sharekhan brokerage charges Karvy brokerage charges ICICI direct brokerage charges Indiabulls brokerage charges HDFC Securities brokerage charges Religare brokerage charges Reliance Money brokerage charges Indiainfoline brokerage charges Brokerage for Delivery Brokerage for Intraday trading 0.15% 0.75% 0.

According to Michal Parness. different factors are consider for rating process Organization structure. the need to constantly upgrade and improve systems and procedures in operation as well as skill sets has gained considerable importance. Management policy on compliance. being an interface between investors and exchanges but also from the point of view of measuring the adequacy of systems and controls to meet internal as well as external compliance requirements. Organization process and procedures. One reason the institutions make so much money is that they are trading. is a matter of debate and discussions. considering the important role such intermediaries play. Professional Rating of market intermediaries. Founder & CEO Investors don¶t Make Money in the Stock Market. In a nutshell. Risk Management Policy and System. Besides compliance with regulatory requirements both in letter and spirit has assumed significance so as to mitigate risk and ensure adequate protection of investors¶ interest. the regulator and others who will benefit from the transparency and the consequential focus on efficiency. Policy on Investors interest. According to SEBI and Intermediaries Regulation and Supervision Department. Firm¶s positioning. They make money every time you buy or sell. as a concept. That means that when you¶re investing. You¶re not making money as an investor. stock brokers themselves. the product may accrue significant benefits to all stakeholders including the investors. And Rating objectives / benefits are rated entity would be in a position to brand its image and capitalize the same for generating more business. The need for rating is felt not only from the point of view of greater disclosure requirements for investor¶s interests. So that need for Intermediaries Rating services (Brokers). 47 . History/Background. They make money whether you win or lose.According to SEBI. Financials. you¶re basically just sitting there. In view of the developments that are taking place in the capital markets. You¶re not going anywhere.

Objective Of Research 48 . level mathematical equations. ³Trend Trading´ means trading trends based on human emotions. The ³Trend trading´ means being aware and taking advantage of trends like the run-ups that happen around earning sessions. Not complex statistical analysis and not Ph.Trading the Trend: The Only Way to Make Money in the Market If you don¶t know this already. These are trends that have worked time and time again in the market. They consistently yield results. you look for market movement. You¶ll play the gaps up and down. With trend trading. often several days a week. Not lagging indicators. That could mean stocks that are going to move up or down during the course of a day (intraday).D.

Each research study has its own specific purpose. It is like to discover to Question through the application of scientific procedure. But the main aim of our research to find out the truth that is hidden and which has not been discovered as yet. Our research study has two objectives:-

PRIMARY OBJECTIVE: -How EDELWEISS BROKING LTD is best services providers as a stock broker in the metros. SECONDARY OBJECTIVE: 1. To know about the awareness towards stock brokers and share market. 2. To study about the competitive position of Sharekhan Ltd in Competitive Market. 3. To study about the effectiveness & efficiency of Edelweiss Broking Ltd in relation to its competitors 4. To study about whether people are satisfied with Edelweiss Services & Management System or not 5. To study about the difficulties faced by persons while Trading in Edelweiss. 6. To study about the need of improvement in existing Trading system. SAMPLING UNITS Sampling unit may be a geographical one, such as Metros etc. The researcher will have to decide one or more of such units that he has to select for his study. In my research study Delhi NCR as a sampling unit.

SIZE OF SAMPLE ³This refers to the number of items to be selected from the universe to constitute a sample´ In our research sample size is 500. 49

But we also study the 5 stock broker companies related to security & commodity market like India-infoline, ICICI direct, HDFC securities, Karvy consultant ltd. for the appropriate collection of the information.

SOURES OF DATA COLLECTION While deciding about the method of data collection to be used for the study the researcher should keep to types of data. 1. Primary 2. Secondary Data. We use in our research primary data, as well as secondary data. Primary means collected a fresh, and the first time data and secondary means which are already available like annual report, magazines etc.

Survey Method: - Survey refers to the method of securing information concerning phenomena under study from all or selected number of respondents of the concerned area. In a survey the investigator examines those phenomena which exist in the universe independent of his action. We used the Scheduling Method.

Scheduling: - In this method the enumerators along with schedules, go to respondents, put to them the questions from the Performa in the order the questions are listed and recorded the replies in the space meant for the same in the Performa.

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COMPARATIVE ANALYSIS After the whole study, we find out the following results: Results on the Basis of charges There are the two type of the transaction:1. Intra-day based 2. Delivery based

All the figures are in paisa/100 rupees. Comment:- According to the survey HDFC securities charge maximum brokerage as compare to others whereas India Infoline Ltd. charge only 0.20 paisa on maximum investment.

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if the customer has an existing relationship with HDFC Sharekhan ltd:. 52 . 500 only towards stamp duty. India Infoline:. if applicable.e. This includes the registration and account opening charges.com share trading account when you desire to trade in equity.A one-time charge of Rs. KARVY consultants ltd:. April 2005 are as follows:. ICICI direct:. are payable separately. 750 at the time of account opening will be charged. legal and processing fees for opening the account. You may later upgrade your Invest account to an ICICI direct.There is a nominal charge of Rs.Account Opening Charges Are 452 But now SEBI banned on opening of new demat account of Karvy.Results On the basis of Account opening charges HDFC securities ltd:.There is no ACCOUNT OPENING CHARGES but require margin money of Rs 5000 for trading purposes.749.Account opening charges w.Rs. Bank and Depository Participant (DP) account opening charges.f.

but in ICICI direct. According to survey 40 % peoples are satisfied with IndiaBull Ltd because of their RM¶s facility and power of IndiaBull Ltd software. And Edelweiss Broking Ltd. Edelweiss Broking Ltd. Edelweiss Broking Ltd open new branches for individually handle to their customer. Ltd. Results on the basis of customer preferences 1. HDFC security there is no separate offices for this .:.Account opening charges are nil. 900. 2. According to survey. 53 . And the requirement of the margin money is Rs 1000. Comment:.India Bulls charge maximum account opening charges but there are no such charges in Sharekhan pvt.Indiabulls:. And 90% people of exist clients are satisfied with Edelweiss Broking Ltd.Account opening charges are Rs. There is no AMC and no margin money is required.

Results On The Basis Of Facilities Basis of Sharekhan difference Ltd. Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No d-mat opening rights Yes No Yes Yes Yes No Yes Karvy and HDFC securities are not providing complete range of trading facilities. Share trading Commodity trading Yes Karvy India Infoline Yes ICICI direct Yes Indiabulls HDFC Edelweiss Broking Ltd. FINDINGS & ANALYSIS 1) Do you know about investment options available? KNOWLEDGE Yes No TOTAL %AGE 80% 20% 100 54 .

2) Most preferable investment scenario.COMMENT Only 80% people knows the exact meaning of investment. Because of remaining 20% take his/her residential property as an investment. According to law purpose this is not an investment because of it is not create any profit for the owner. INVESTMENT SCENARIO %AGE Banks Derivatives & securities market 24% 28% Insurance Bonds 4% 20% 55 .

56 .Real estate Others TOTAL 20% 4% 100 COMMENT Today scenario is changed so that most area covered by the derivative and securities market. It is 28% of the total population.

3) What is the basic purpose of your investment? INVESTMENT PURPOSE Liquidity Returns Capital appreciation Tax benefits Risk covering Others TOTAL PERCENTAGE 30% 25% 10% 20% 5% 10% 100 57 .

And remaining 25% are interested in capital appreciations. 4) Most important things you take into your mind while making investments? %AGE 8% 17% 75% 100 FACTOR Risk Returns Both TOTAL 58 . risk covering.COMMENT:. returns and tax benefits. and others.75% people are interested in liquidity.

only 25% considered the risk or returns factor.COMMENT 75% people are considered the both factors risk as well as returns but. 5) Awareness related to security markets KNOWLEDGE Complete Partial Nil TOTAL PERCENTAGE 8% 75% 17% 100 59 .

some promotional activities are required for increasing the awareness about security market. 6) Do you have any de-mat & trading account? PERCENTAGE 60% 40% 100% ACCOUNTS Yes No TOTAL 60 . so. we conclude that 17% people know nothing about the securities investments and 75% people have partial knowledge about it.COMMENT On that basis.

7) In which company you have d-mat and trading account? COMPANY SHAREKHAN INDIAINFOLINE ICICI DIRECT INDIA BULLS PERCENTAGE 38% 20% 14% 12% 61 .COMMENT Only 75% respondents have de-mat and trading account and remaining 25% says no because they don¶t know why shares move up and down.

KARVY Others TOTAL 9% 7% 100 COMMENT In Sharekhan Ltd 38% respondents have de-mat & trading account because of better services and no annual maintenance and other charges. 8) Specify the reason of satisfaction with the current broking house. SATISFACTION PERCENTAGE 62 .

Investors take risk as well as returns into their mind while making the investment. in Chandigarh Region.Operating expenses Services Brokerage TOTAL 18% 25% 57% 100 FINDINGS       According to the survey most of the customers of ³Sharekhan Ltd´ says that it is pocket friendly. 63 . Coming to faith 70% say Sharekhan Ltd is better than others stock brokers due to customers satisfaction. Main purposes of investments are returns & liquidity. Lack of promotional activities undertaken by Sharekhan securities Ltd. Businessmen are more interested in the stock market than the others.

Some promotional activities are required for the awareness of the customer. So that he can handle new as well as old customer properly. People want to invest their money in the security market but they haven¶t the proper knowledge. SUGGESTIONS        Commitment should be equalized for every person. People pay more emphasis on brokerage than service provided by brokerage houses. Improvement in the opening of De-mat & contract notice procedure is required. People are not aware of hedging in stock market. There should be a limited number of clients under the relationship manger. Provide the facility of free demonstrations for all. People at young age should be encouraged to invest in stock market. LIMITATIONS 64 .    Commodity market is less preferred by the investors. Seminars should be held for providing information to prospective and present customers.

CONCLUSION On the basis of the study it is found that Sharekhan Ltd is better services provider than the other stockbrokers because of their timely research and personalized advice on what stocks to buy and sell. 65 . Sharekhan Ltd.  There may be biasness in information by market participant.  Size of the research may not be substantial. As only CHANDIGARH dealt in survey so it does not represent the view of the total Indian market. provide the facility of Trade tiger as well as relationship manager facility for encouragement and protect the interest of the investors.  There was lack of time on the part of respondents.  Complete data was not available due to company privacy and secrecy.  The survey was carried through questionnaire and the questions were based on perception. It also provides the information through the internet and mobile alerts that what IPO¶s are coming in the market and it also provides its research on the future prospect of the IPO.

so that they feel more comfortable while investing in the stock market. 1) Do you know about Investment options available? a) Yes b) No 2) Do you know about the different types of investment alternatives? 66 .Study also concludes that people are not much aware of commodity market and while it¶s going to be biggest market in India. APPENDIX QUESTIONNAIRE DATE: NAME OCCUPATION AGE CONTACT NO. The company should also organize seminars and similar activities to enhance the knowledge of prospective and existing customers.

a) Insurance & mutual funds c) Real estate e) Commodity b) Banks d) Share market f) Others 3) What is the basic purpose of your investment? a) Liquidity c) Capital appreciation e) Tax benefits b) Returns d) Risk covering 4) What are the most important things you take into account. while a) Risk b) Returns c) Both making any investment? 5) Do you have any knowledge of share markets? a) Partial b) Complete c) Nil 6) Do you have any D-mat & Trading account? a) Yes b) No 67 .

7) In which company you have D-mat & Trading account? a) Sharekhan Ltd c) Indiainfoline e) Indiabulls g) Others b) Karvy d) ICICI direct f) HDFC securities 8) Are you satisfied with you present broking company? a) Yes b) No 9) What is the reason? Please specify. a) Services _______________________________________ b) Brokerage _____________________________________ c) Operating expenses ______________________________ d) Others ________________________________________ 10) What is your trading exchange preference? a) NSE c) MCX b) BSE d) NCDEX 68 .

12) Do you know about Sharekhan Ltd? a) Yes b) No Suggestion:- BIBLIOGRAPHY Books: BERI G C. TATA Mc GRAW-HILL PUBLISHING COMPANY LIMITED. 69 . MARKETING RESEARCH NEW DELHI.

COM). Internet: http://WWW. GOYAL. NEW DELHI.1978. DR.ALOK. VIKAS PUBLISHING HOUSE PVT.LTD.SHAREKHAN LTD. V.KOTHARI RESEARCH METHODOLOGY NEW DELHI.K.COM http://WWW.COM 70 . Magazines: VALUELINE (SHAREKHAN MONTHLY RESEARCH MAGAZINE) CAPITAL MARKET (5PASISA. FINANCIAL MARKET OPERATION NEW DELHI. THE FINAPOILS (YOUR PERSONAL FINANCE ADVISOR FROM KARVY).MONEYCONTROL.CAPITALINE.COM http://WWW. (INDIA) ENTERPRISES .

INDIAINFOLINE.ICICIDIRECT.HDFCSECURITY.COM http://WWW.COM 71 .KARVY.COM http://WWW.COM http://WWW.http://WWW.