FEASIBILITY STUDY OF SALES AND SERVICES OF EQUITIES AND DERIVATIVES IN UDAIPUR CITY

(A Summer Training Programme at)

Indiabulls
You come first By

Mr. Ivish Sharma

MBA Student of Institute of Management Studies (Roorkee) (Affiliated to Uttarakhand Technical University)

2009-2011
Under the Supervision of:

Mrs. Priyanka Sarkar

Senior Sales Manager

Indiabulls Securities Limited

44, Skydack Building, 1st Floor, Residency Road, Bhopalpura Math Marg, Udaipur

PREFACE

Training is a special significance for a M.B.A. student: it has a special role too. I learn to tackle different real world management services. The present study is an attempt to analyze about the sales and services of equities and derivatives (in Udaipur city). I have done the presentation of my project report in mainly five sections. Chapter 1 about the introduction of the feasibility study of sales and services of equities and derivatives in Udaipur city and about the industry profile. Chapter 2 covers the company profile it covers the Beating on India bulls, Promoters, about the Business Model of the company, the Risk Management, Financial and Competitors. Chapter 3 covers the Product and Services provided by the company, the Objectives and Scope, Literature Survey. Chapter 4 covers the Research Methodology used in the study and about Data Collection and interpretation. In that I went through the various graphs and tables and analysis on these. Chapter 5 covers the Observations and Findings, Limitations, Recommendations, Segmentations and Regarding Study.

ACKNOWLEDGEMENT

The enduring pages of the work are the cumulative sequence of extensive guidance and arduous work. We wish to acknowledgement and express my personal gratitude to all those without whom couldnt have been reality. They have helped me with their guidance and assistance in completing this project. I would also like to take this opportunity to convey my respect and special gratitude towards Mr. ANKIT VYAS (Branch Head, Online) who considered me worthy of doing project in their esteemed establishment and never failed to satisfy my over-zealous thirst to obtain information. I feel very delighted to get this rare opportunity to show my profound senses of reverence and indebtedness to all my esteemed training in charge Mrs.Priyanka Sarkar (Senior Sales Manager) for their full support, cooperation, keen sustained interest, valuable advice throughout completion. No language is ever adequate to express my gratitude towards my parents for their dedicated and enthusiastic encouragement. Last but not least I would like to thanks to all those who have directly or indirectly helped and cooperated during project period. the course of training which led my training to a successful

Ivish Sharma Dated: Place: Roorkee

EXECUTIVE SUMMARY
TITLE Feasibility Study of Sales and Services of Equities and Derivatives in Udaipur City. 1. BACK GROUND OF THE STUDY This study is conducted for Indiabulls Securities Ltd. at Udaipur, by Pankaj Jain first year of Master in Business Administration (MBA) student as requirement for partial fulfillment for MBA. Indiabulls is lead by a highly regarded management team that has invested Thousand Lac of Rupee into a World class Infrastructure that provides there clients with real-time service & around Clock i.e.24 Hrs. access to all information and products. They have been guided by one underlying philosophy: You come first. 2. Objectives The objectives of the study include To find out the scope of Equities and Derivatives in Udaipur city. To know what major factors effects or influence customers trading behavior. To study market potential for sales and services of Equities and Derivatives.

3. Research Methodology The methodology includes collection of data with the help of structured questionnaire; the data has been collected by interviewing around 100 clients. 4. Data collection & Interpretation It includes cross tabulation of questionnaire by classification of responses and frequency distribution and appropriate graphical representation question with comments.

5. Observations & Findings Observation is related those issues only, which are not included and explored through the questionnaire, it may not require a data support. Findings are strictly based on the collected data, attempting to answer the objectives. 6. Limitation of the study The study can be biased to the extent of personal perception, historical nature of data collection and of the time limit. 7. Suggestion Based on findings, suggestions were given in order to improve the communication strategy and widen companys market.

TABLE OF CONTENT 1. Title Page 2. Preface 3. Acknowledgement 4. Certificate 5. Executive Summary 6. Introduction 7. Company profile 8. Organizational Structure 9. Product Profile 10. Objective & Scope 11. Literature survey 12. Research Methodology 13. Data collection & Analysis 14. Observations and findings 15. Suggestion and recommendation 16. Limitations 17. Conclusions 18. Bibliography OR References 19. Annexure (Questionaries) I 2 3 4 5 7 8 17 22 23 24 30 35 43 44 45 46 47

INTRODUCTION
A stock exchange, share market or bourse is a corporation or mutual organization which provides facilities for stock brokers and traders, to trade company stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities, as well as, other financial instruments and capital events including the payment of income and dividends. The securities traded on a stock exchange include: shares issued by companies, unit trusts and other pooled investment products and bonds. To be able to trade a security on a certain stock exchange, it has to be listed there. Usually there is a central location at least for recordkeeping, but trade is less and less and less linked to such a physical place, as modern markets are electronic networks, which give them advantages of speed and cost of transactions. Trade on an exchange is by members only. The initial offering of stocks and bonds to investors is by definition done in the primary market and subsequent trading is done in the secondary market. A stock exchange is often the most important component of a stock market. Supply and demand in stock markets are driven by various factors which, as in all free markets, affect the price of stocks (see stock valuation). Equity derivatives are and alternative to trading the underlying security. The value of a derivative product is directly correlated to the value of the underlying asset. Derivatives are commonly seen as risky or speculative. However, these products can also be used for hedging. That is, they can actually reduce the amount of risk that a trading position is exposed to. Today the worlds fastest growing economy India is one of the most exciting markets to be in. infect, numbers show that more people visit Dalal Street in 2019 as compared to Taj Mahal; its where the next big global photo-op exists. There is rapid transformation and growth is come. The volumes increases plus the growth in Indian economy has led to subscription where the Indian Stock market is very vibrant place.

COMPANY PROFILE
Evolution and Growth of Stock Exchanges in India Pre-Independence Period: Emergence of the Stock Exchange In India, business in loan securities of the East India Company was done towards the close of 18th century. Bombay became the major centre of trading activity in securities. This trading activity was unorganized and informal in nature. In Bombay, by 1830 some bank shares also entered into the trading place. These shares included that of Commercial Bank, Chartered Mercantile Bank, Agra Bank, Oriental Bank and Bank o Bombay. Between 1840-50, there were half a dozen stock brokers in Bombay recognized by banks and merchants. By 1860 the number of brokers increased to 60.24 with the passing of Joint Stock Companies Act in 1850, the number of companies involved in various types of trades started growing. Emergence of stock exchange in India has close links with the Cotton Boom, That took place during 1860 to 1865 in Bombay From 1861 to the beginning of 1865, speculation was key activity in Bombays securities trading places. Number of brokers dealing in securities, which stood about 60 by 1860 increased to 200250during the cotton boom period. Between 1863-65, 25 new Banks, 69 financial Associations, 7 land reclamation companies and 30 miscellaneous companies were floated.

After 1865, a number of financial failures and problems in speculative activity led brokers to form an association in 1875. It was only the disaster that followed the boom, Which brought the brokers together in July, 1875 to form an association that is today called The Stock Exchange, Bombay.

The experience was later followed at these Centers, with stock exchanges being set up at Ahmedabad in 1894, at Calcutta in 1908, at Indore in 1930, at Madras in 1937, and at Hyderabad in 1943 and at Delhi in 1947. Since beginning, Bombay Stock Exchange is considered as the leader among Indian stock exchanges. Therefore, trends and developments that have taken place at the Bombay stock exchange or that are taking place there can be treated as broad indicators of performance of stock exchanges in the country. In brief, this can be stated that due to general distrust by the public of private business and closed circle character of industrial entrepreneurship, the role of new issues and stock exchanges remained on the periphery of private corporate sector financing and with the absence of any meaningful role in industrial financing, the functioning and structure of the institution of stock exchange became speculative activity oriented serving little the saving and investment activity of community. It is also worth mentioning that functioning, organization and management of seven out present nineteen stock exchanges, including that of our five major stock exchangesBombay, Calcutta, Delhi, Ahmedabad, and Madras, took shape during the period (pre 1948 period commented upon by the National Planning Committee) marked for absolute Domination of speculative interests. Organization and management of major stock exchanges formed during this period did not prove to be positive to the developments and desirable changes later more particularly during the period of eighties.

Growth of Stock Exchanges in India The Second World War broke out in 1939. It gave a sharp boom which was followed by a slump. But, in 1943, the situation changed radically, when India was fully mobilized as a supply base. On account of the restrictive controls on cotton, bullion, seeds and other commodities, those dealing in them found in the stock market as the only outlet for their activities. They were anxious to join the trade and their number was swelled by numerous others. Many new associations were constituted for the purpose and Stock Exchanges in all parts of the country were floated. The Uttar Pradesh Stock Exchange Limited (1940), Nagpur Stock Exchange Limited (1940) and Hyderabad Stock Exchange Limited (1944) were incorporated. In Delhi two stock exchanges Delhi Stock and Share Brokers Association Limited and the Delhi Stocks and Shares Exchange Limited were floated and later in June 1947,amalgamated into the Delhi Stock Exchange Association Limited. Post-independence Scenario Most of the exchanges suffered almost a total eclipse during depression. Lahore Exchange was closed during partition of the country and later migrated to Delhi and merged with Delhi Stock Exchange. Bangalore Stock Exchange Limited was registered in 1957 and recognized in 1963. Most of the other exchanges languished till 1957 when they applied to the Central Government for recognition under the Securities Contracts (Regulation) Act, 1956. Only Bombay, Calcutta, Madras, Ahmedabad, Delhi, Hyderabad and Indore, the well established exchanges, were recognized under the Act. Some of the members of the other Associations were required to be admitted by the recognized stock exchanges on a confessional bases, but acting on the principle of unitary control, all these pseudo stock

exchanges were refused recognition by the Government of India and they thereupon ceased to function. Thus, during early sixties there were eight recognized stock exchanges in India (mentioned above). The number virtually remained unchanged, for nearly two decades. During eighties, however, many stock exchanges were established: Cochin Stock Exchange (1980), Uttar Pradesh Stock Exchange Association Limited (at Kanpur, 1982), and Pune Stock Exchange Limited (1982), Ludhiana Stock Exchange Association Limited (1983), Gauhati Stock Exchange Limited(1984), Kanara Stock Exchange Limited (at Mangalore, 1985), Magadh Stock Exchange Association (at Patna, 1986), Jaipur Stock Exchange Limited (1989), Bhubaneswar Stock exchange Association Limited (1989), Saurashtra Kutch Stock Exchange Limited ( at Rajkot 1989), Vadodara Stock Exchange Limited ( at Baroda 1990) and recently established Exchange Coimbatore and Meerut. Thus, at present, there are totally twenty one recognized Stock Exhanges in India excluding the over the counter Exchange of India limited (OTCEI) and the National Stock Exchange of India Limited (NSEIL). PRESENT SENERIO: At present there are functioning 19 stock exchanges, recognized by the government of India.55 the functioning of the stock exchanges is managed and administered by the governing body/board of the directors of the exchange. The governing body of stock exchange is vested with wide powers. These powers include wide ranging discretionary power also. The powers of governing body are to: manage and control the functioning of the stock exchanges; regulate trading in securities; fine, suspend or expel member and take such other disciplinary action as it dreams fit; govern business conduct and relationship; if any, amongst members and between members and non-member;

make or amend any rules, buy laws, or regulations or suspend their operations with the approval of the government;

(1) Interpret the rules, byelaws and regulations in its own discretion. The list of the stock exchanges is as follows: Established prior to 1980: Bombay stock Exchange, Bombay Ahmedabad Share and Stock Brokers Association, Ahmedabad Calcutta Stock Exchange Association, Calcutta Madras Stock Exchange, Madras Hyderabad Stock Exchange, Hyderabad Delhi Stock Exchange, New Delhi Share Brokers Association (M.P. Stock Exchange) Indore Cochin Stock Exchange, Cochin Bangalore Stock Exchange, Bangalore, Established in Post 1980 period:Pune Stock Exchange, Pune Uttar Pradesh Stock Exchange, Kanpur Ludhiana Stock Exchange, Ludhiana Guwahati Stock Exchange, Guwahati Canara Stock Exchange, Manglore Magadh Stock Exchange, Patna Baroda Stock Exchange, Baroda Jaipur Stock Exchange, Jaipur Saurashtra Stock Exchange, Rajkot Bhubaneshwar Stock Exchange, Bhubaneshwar Ministry of Finance has recently granted recognition to two new stock exchanges at Meerut and Coimbatore. These stock exchanges are yet to start functioning.

Growth Pattern: The Table given below portrays the overall growth pattern of Indian stock markets since independence. It is quite evident from the Table that Indian stock markets have not only frown just in number of exchanges, but also in number of listed companies and in capital of listed companies. The remarkable growth after 1985 can be clearly seen from the Table, and this was due to the favoring government policies towards security market industry. S.No. 1. 2. 3. 4. 5. As on 31st December No. Of Stock Exchange No. Of Listed Cos. No. Of Stock issue of Listed Cos. Capital of Listed Co. (Cr. Rs.) Market Value of Capital of Listed Cos. 6. 7. (Cr. Rs.) Capital per Listed Cos. (4/2) (Lakh Rs.) Market Value of Capital per Listed cos. 8. (Lakh Rs.)(5/2) Appreciated Value of Capital per Listed Cos. (Lakh Rs.) 170 148 126 170 260 344 803 63 107 113 167 168 211 175 298 1961 1971 1975 1980 7 8 8 9 1203 1599 1552 2265 2111 2838 3230 3697 753 1812 2614 3673 1985 14 4344 6164 9723 2530 2 224 582 1991 20 6229 8967 32041 11027 9 514 1770 693 5564 1995 22 8593 11784 59583 478121

1292 2675 3273 6750

Trading Pattern of the Indian Stock Market

Trading in Indian stock exchanges is limited to listed securities of public limited companies. They are broadly divided into two categories, namely, specified securities (forward list) and non- specified securities (cash list). Equity shares of dividend paying, growth-oriented companies with a paid-up capital of at least Rs.50 million and a market capitalization of at least Rs.100 million and having more than 20,000 shareholders are, normally, put in the specified group and the balance in non-specified group. Two types of transactions can be carried out on the Indian stock exchanges: (a) spot delivery transactions for delivery and payment within the time or on the date stipulated when entering into the contract which shall not be more than 14 days following the date of the contract. The latter is permitted only in the case of specified shares. The brokers who carry over the outstanding pay carry over charges (can tango or backwardation), which are usually determined by the rates of interest prevailing. A member broker in an Indian stock exchange can act as an agent, buy and sell securities for his clients on a commission basis and also can act as a trader or dealer as a principal, buy and sell securities on his own account and risk, in contrast with the practice prevailing on New York and London Stock Exchanges, where a member can act as a jobber or a broker only. The nature of trading on Indian Stock Exchanges are that of age old conventional style of face-to-face trading with bids and offers being made by open outcry. However, there is a great amount of effort to modernize the Indian Stock exchanges in the very recent times. National Stock Exchange (NSE) With the liberalization of the Indian economy, it was found inevitable to lift the Indian stock market trading system on par with the international standards. On the basis of the recommendations of high-powered Pherwani Committee, the National Stock Exchange was incorporated in 1992 by Industrial Development Bank of India, Industrial Credit and Investment Corporation of India, Industrial finance Corporation of India, all Insurance Corporations, selected commercial banks and others.

Trading at NSE can be classified under two broad categories: a) Wholesale debt market and b) Capital market. Wholesale debt market operations are similar to money market operations institutions and corporate bodies enter into high value transactions in financial instruments such as government securities, treasury bills, public sector unit bonds, commercial paper, certificate of deposit, etc. There are two kinds of players in NSE: a) Trading members and b) Participants. Recognized members of NSE are called trading members who trade on behalf of themselves and their clients. Participants include trading members and large players like banks who take direct settlement responsibility. Trading at NSE takes place through a fully automated screen-based trading mechanism, which adopts the principle of an order-driven market. Trading members can stay at their offices and execute the trading, since they are linked through a communication network. The prices at which the buyer and seller are willing to transact will appear on the screen. When the prices match the transaction will be completed and a confirmation slip will be printed at the office of the trading member. NSE has several advantages over the traditional trading exchanges. They are as follows: NSE brings an integrated stock market trading network across the nation. Investors can trade at the same price from anywhere in the country since inter market operations are streamlined coupled with the country wide access to the securities. Delays in communication, late payments and the malpractices prevailing in the traditional trading mechanism can be done away with greater operational

efficiency and informational transparency in the stock market operations, with the support of total computerized network. Unless stock markets provide professional zed service, small investors and foreign investors will not be interested in capital market operations. And capital market being one of the major sources of long-term finance for industrial projects, India cannot afford to damage the capital market path. In this regard NSE gains vital importance in the Indian capital market system.

COMPANY / ORGANIZATION STRUCTURE

Indiabulls is Indias 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 & housing finance. With around 4000 Relationship Managers, Indiabulls helps its clients to satisfy their customized financial goals. Indiabulls Financial Services Limited was established in the year2000 by three promoters all of whom are engineers from Indian Institute of Technology, New Delhi, and has attracted over Rs. 700 million of investments from venture capital firms, private equity funds and institutional investors. The investors include the proprietary fund of Mr. L.N. Mittal-LNM India Internet Venture Limited, Transatlantic Corporation Ltd., Farallon Capital Partners LP and Infinity Technologies Trustee Private Limited. Indiabulls headquarter are co-located in Mumbai and Delhi, allowing us to access the two most important regions for Indian financial Markets, the Western region including Mumbai, rest of Maharashtra Gujarat and the Northern region, including the National Capital Territory of Delhi, nearby cities, parts of Haryana, Uttar Pradesh and Punjab; and access the highly skilled and educated workforce in Delhi; and back office, risk management and internal finance are headquartered out of one central location in New Delhi, allowing us to scale these process efficiently for the nationwide network. All the back office work, transaction processing work and issuance of cheques takes place from the New Delhi office enabling us to have better control and efficiency in the support functions. Promoters and Their Background The company was established by three engineers from IIT Delhi, and has attracted significant amount of investment from venture, private equity and institutional investors. The details are as follows:Sameer Gehlaut, Chairman, CEO & Whole Time Director Sameer, aged 30 years graduated with a Mechanical Engineering degree from the Indian Institute of technology, Delhi. He has gained extensive experience in the Financial Services sector and developed in-depth knowledge and strong understanding of all

aspects of the Securities Industry and Financial Services Business. Under his Leadership, Indiabulls group has grown from one office, 310 clients, and 8 employees in FY 2000 to 32,359 clients, 70 office and 606 employees as on April 30, 2004. Rajiv Rattan, President CFO & Whole Time Director: Rajiv, aged 30 years, an NTSE Scholar, graduated with and Electrical Engineering Degree from the Indian Institute of Technology, Delhi. He gained extensive experience in international best practices, process management and risk management, which he brought to Indiabulls Group as one of the founders of the company. Saurabh Mittal, Director: Saurabh, aged 30 years, graduated with and Electrical Engineering Degree from the Indian Institute of Technology, Delhi. He worked a citigroup Asset Management as an investment analyst, and is currently a senior portfolio manager at Farallon Capital. He has developed and understanding of International financial markets and extensive experience in the securities industry Saurabh is responsible for strategic decision-making and is the director of the company. Business-model: Indiabulls has a low risk model largely based on fee/ commission income generated through providing brokerage & related financial service to individual investor and independent advisors. It focuses on a core client base of individual investors and the marketing Associates who serve them. Indiabulls offers the following product and services in the financial markets.

Stock, Options and Futures Depository Services Commodities

Insurance Products Mutual Funds Bonds and Debt Products

Indiabulls aims to develop other financial offerings such as accepting deposits services in the FY 2004.

BUSINESSOVERVIEW
Indiabulls Financial Services Limited

Indiabulls Securities Limited

Indiabulls Insurance Advisors Pvt. Limited

Indiabulls Commodities Pvt. Limited

1. Equity & Deb Stock Broking 2. Depository Services 3. Derivative Broking Services 4. Equity Research Services 5. Mutual Fund Distribution 6. IPO Distribution

Insurance Product Distribution

Commodities Trading

Risk-management: Managing market risk on client position is critical for Indiabulls. The internet trading application has a risk management logic built into that continuously marks to market the

clients position and doesnt allow the client to take a fresh position beyond the stipulated limits. This risk management logic takes into account all the assets of the client (cash and shares) updated real time, lying with us to get to an allowable exposure value. Margin call alert are automatically generated and relayed to the cline and the administrators from the system. For the non-Internet part of the business, the back-office system provides the centralized controls and risk management team with all information for generating margin calls and managing the risk of the clients. CTCL software has been installed at branches to manage risk at the time of order entry. Risk Management Module: The core of the application is the application server and risk management module, which validates all orders placed by customers against the limits available to them as per our risk management logic. This module accept and forwards to the exchange all orders that pass the risk management criteria while rejecting any that do not meet them. This component of the application is written in C and runs on the Tru-64 Unix platform with interfaces to the Database.

Financial Services Limited and its group companies On behalf of Mr. L N Mittal , LNMIIVL paid Rs 89.16 crores to buy 8.2% stake of Indiabulls Credit Services Limited valuing the business at over Rs 1,100 crores. Consolidated Net worth of Indiabulls Financial Services Limited is Rs. 1,703 Crores, and total Equity capital across various subsidiaries and associates is Rs2,107 crores.

Financial Services Limited, mobilized over Rs540 crores in share holder applications for Reliance Petroleum Limited IPO in April 2006. Indiabulls Financial Services Limited completed buy back of 18, 13,696 lac shares at an average price of Rs 209.37 per share during the quarter.

Competitors:
Karvy Computer share Private Ltd. G S Raheja Finance ICICI Securities Limited India Infoline Ltd. Indbank Merchant Banking Services Ltd. ShareKhan Securities Zuari Investments Kotak Mahindra SHCL Others.

PRODUCT AND SEVICES PROVIDED BY INDIABULLS

Indiabulls is lead by a highly regarded management team that has invested crores of rupees into a world class infrastructure that provides our clients with real-time service & 24/7 accesses to all information and products. Under flagship of Indiabulls Professional Network it offers real-time prices, detailed data and news, intelligent analytics, and electronic trading capabilities, right at your fingertips.

Indiabulls offers a full range of financial services and products ranging from Equities to Insurance to enhance its customer wealth and hence achieve their financial goals.

Indiabulls Professional Network offers real-time prices, detailed data and news, intelligent analytics, and electronic trading capabilities, right on customers fingertips. This powerful technology is complemented by its knowledgeable and customer focused Relationship Managers.

Putting Your Needs First Thats Investing at Indiabulls

IndiabullsRelationship Managers are available to customers to help with your financial planning and investment needs. To provide the highest possible quality of service, Indiabulls provides full access to all products and services through multi-channels. Equities and Derivatives: Comprehensive services for independent investors, active traders & Non-Resident Indians Indiabulls Equities Analysis: Premium research on 540+ companies updated daily. Depository Services: Value added services for seamless delivery. Insurance: Take care of your life while you take care of business.

OBJECTIVE & SCOPE

Title: Study of market potentials for sale and services of Equities and Derivatives in Udaipur city. Objectives: To find priority level of customers To find out scope of equities and derivatives in Udaipur city To find the market potential for sales of equities and derivatives To find out the factors influencing Trading Behavior To check the awareness of customers about the services provided by India Bulls

LITERATURE SURVEY
MARKET POTENTIAL Market potential is an estimate of maximum demand in a time period based on the number of potential users and the purchase rate. Actual industry sales are usually less than market potential For instance, the U.S. market potential for digital video disc players could be defined as the total number of households with television sets based on typical purchases of one unit per family, actual sales are less than potential because it takes time to convince people to buy expensive items such as digital video disc players, and because some cant afford them. The industry purchase rates are a function of price levels, promotional expenditures, and the number stores stocking machines. Company sale potential is a portion under total industry demand. It is the maximum amount a firm can sell in a time period under optimum conditions. Company sales will generally be lower than industry sales. The ratio of company sales to industry sales is measure of market share of the organization. ESTIMATING POTENTIALS All estimates of potential are based on two components-namely, the number of possible users of the product / services and the maximum expected purchase rate. Sometimes we can get estimates of these numbers from trade associations or commercial research association, but we have to come up with our own potential figures broken down by geographical area, industry, and customer type. The easiest way to estimate the number of buyers is to use secondary sources. A wide variety of commercial data are available that provide the potential number of buyers, size of firms, age of consumers, income levels and locations, Duns Marketing Services and SALES & MARKETING MANAGEMENT magazine sell these data on diskettes for use with personal computers. We can also access potential

databanks through computer networks on a fee basis. Large firms often have their own data banks that can be mined for potential information. Purchase rates are usually derived from trade organization or government publications. For existing products/ services we can use the ratio of current sales to the number of households and sales per person. These ratios can be obtained from trade publications such as those from the conference board, or calculated from published data. For example, average demand per household could be derived by total industry sales for an area by the number of households. In the case of new product/services, managers may estimate conversion rates from experience with other items. If a similar product was sold to 4 percent of U.S. households during the first yea, this rate could be applied to obtain demand estimates for new merchandise. SERVICES Services are deeds, processes and performances. The services offered by IBM are not tangible things that can be touched, seen and felt but rather are intangible deeds and performances. While we will rely on the simple, broad definition of services, we should be aware that over time services and service sector of the economy have been defined in subtly different ways. Services includes all economic activities whose output is not physical product or construction, is generally consumed at the time it is produce, and provides added value in forms (such as convenience, amusement, timeliness, comfort, or health) that are essentially intangible concern of its first purchaser. Customer service: It is provided be all types of companies including manufacturers, IT companies and service companies. Customer service is the service provided in support of companys core products.

Services marketing are different: People who moved from marketing in packaged goods industries to marketing in health care, banking, and other services industries found their skills and experiences were not directly transferable. They faced issues and dilemmas in marketing services that their experiences in packaged goods and manufacturing had not prepared them for. These people realized the need for new concepts and approaches for marketing and service businesses. Services Marketing Mix: Services marketing have seven Ps which includes all the four Ps PRODUCT, PRICE, PLACE (distribution), and PROMOTION of traditional marketing mix. The remaining three Ps are: People Physical evidence Process I. PEOPLE: It includes all human actors who play a part in service delivery and thus influence the buyers perception: namely the firms personnel, the customer, and other customer in service environment. II. PHYSICAL EVIDENCE: It includes the environment in which the service is delivered and where the firm and customer interact, and any tangible components that facilitate performance or communication of the service. III. PROCESS: it includes the actual procedures, mechanisms, and flow of activities by which the service is delivered the service delivery and operating system.

7 Ps Of Service Marketing Mix

PRODUCT Physical good features Quality level Accessories Packaging Warranties Product Lines Branding

PLACE Channel type Exposure Intermediaries Outlet Locations Transportation Storage Managing Channels

PROMOTION Promotion blend Sales people Advertising o Targets o Media types

o Types of ads Sales promotion Publicity

PRICE Flexibility Price level Terms Differentiation Discounts Allowances

PEOPLE Employees o Recruiting o Training o Motivation o Rewards o Teamwork Customers o Education o Training PHYSICAL EVI8DENCE Facility design Equipment

Signage Employee dress Other tangibles o Reports o Business cards o Statements o Guarantees

PROCESS Flow of activities o Standardized o Customized Number of steps o Simple o Complex o Customer involvement

RESEARCH METHODOLOGY
A Research is careful investigation or inquiry, especially through search for new facts in any branch of knowledge. It is a systemized effort to gain more knowledge. Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. We study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. It is necessary for the researcher to know not only the research methods or techniques but also the methodology. Researcher always needs to understand the assumptions underline various technique and they need to know the criteria by which they can decide that certain technique and procedures will be applicable to certain problems and other will not. The predefined objective can be achieved by following ways: o Studying the buying behavior of customer. o Comparing sales of different players. TYPE OF RESEARCH: Personal interview approach was adopted for the project. In this type of research, the researcher has to contact the person directly to know the available information and

analyze the data was available in interviewers statements. This was one of the main sources for the project. The other approach was PERSONNEL RESEARCH. It is based on the personal knowledge. It is applicable to phenomenon that can be expressed in terms of words. RESEARCH PROCESS: Research Process consists of a series of action or steps necessary to effectively carry out the research and the desired sequencing of these steps. The various steps, which provided guidelines to the research process pertaining to the project, are as follows: 1) Formulating the research problem Formulation of research problem involves understanding the problem thoroughly and rephrasing the same into meaningful terms from an analytical point of view. 2) Extensive literature survey It is necessary for the researcher to conduct an extensive survey connected with the problem. For the purpose manual, company records, journals, published data can be used. 3) Development of working hypotheses Working hypotheses is a tentative assumption made in order to draw out and rest its logical or empirical consequences. 4) Preparing the research design The researcher will be required to prepare a research i.e. he will have to state the conceptual structure within which research would be conducted. The function of research design is to provide the collection of relevant evidence with minimum expenditure of efforts, time and money.

5) Determining the sample design The researcher must decide a way of selecting a sample or what is popularly known as sample design. The types of sample design are: o Simple Sampling o Random Sampling o Systematic Random Sampling o Stratified Sampling o Quota Sampling o Cluster and Area Sampling o Multistage Sampling o Sequential Sampling o Census For this project, Random Sampling was used among the above-mentioned types. Since the time period was limited to 2 months, the sampling size was limited to 75. 2) Collection of data While deciding the methods of data collection to be used for study the researcher should keep in mind two types of data viz. Primary Data The Primary Data are those, which are collected a fresh and for the first time and thus happen to be original in character.

Secondary Data

Secondary data means data that are already available i.e. they refer to the data which have already been collected and segregated by someone else. The researcher has to determine the various sources of obtaining secondary data. Secondary data may be published or unpublished in nature. Published data are available in: Publications of central, state and local newspapers Publication of foreign government or of international bodies Technical or trade journals Books, magazines and newspaper and Internet Public record and statistics, historical documents and sources of public information. Data Collection Data used for the project was the secondary and primary data. Methods of Data Collection Personal Interview Questionnaire & Telephonic Interview.

3) Analysis of data Analyses of data can of two types: Quantitative analysis Qualitative analysis

Thus analysis of data require a number of closely related operations such as establishment of categories, the application of these categories into raw data through

tabulation, chart and then draw inferences. Analysis work is generally based on the computation of various percentage, co-efficient etc. by applying various statistical formulae. 4) Preparation of Reports After analysis, the next step is in the preparation of the report. The report has been prepared according to the report writing principles. The Objective, clarity in presentation of ideas and the uses of charts have been maintained throughout the report. Once the data has been collected, the researcher has to process, analyze and interpret the same. It was emphasized that the researcher should exercise good care to ensure that reliable data are not properly processed and analyzed. Sufficient attention is often not given to these aspects, with the result that the quality of the report suffers. Editing The first task in data is editing. It is the process by which data are prepared for subsequent coding. As it is very subjective process, editing is the process of examining errors and omission in the collected data and making necessary in the same this is desirable when there is more inconsistency in the responses. Coding Coding is the procedure of classifying the answers to a question in meaningful categories the symbol used to indicate the categories are called codes. Coding is necessary to carry out the subsequent operation of tabulation and analyzing data. Coding involves two steps: Tabulation: Tabulation comprises of sorting of data into different categories and counting the number of cases that belongs to each categories. One is unvaried tabulation. This includes the numbers of responses to one question or to count. Its very simplest way to tabulate where two or more variables are involved in

tabulation. It is called vicariate or multivariate tabulation. In marketing research project, generally both type of tabulation is used. Analysis and interpretation: Analysis and Interpretation are the central steps in the research process. The goal of analysis is to summaries the collected data in such a way that they provide answer to questions that triggered while research. Interpretation is the research for border, meaning of research finding. Hence, questionnaire was analyzed separately and interpretation was done to bring meaning and implication of the study. Hence analysis could not be completed without interpretation and interpretation cannot proceed without analysis.

DATA COLLECTION & ANALYSIS

Table 1. EXISTING TRADERS OR BROKERS Response No. of respondent ISL 38 ICICI 42 OTHER 20

EXISTING TRADER OR BROKER

45 40 35 30 25 20 15 10 5 0 ISL ICICI RESPONSE OTHERS

INTERPRETATION: The above graph shows that 42% customers shows interest in dealing with ICICI and 38% customers shows interest in dealing with Indiabulls. The rest were attached with other service providing institutes.

Table 2. INVESTMENT CRITERIA OF CUSTOMERS FIELDS NO. RESPONDENTS EQUITIES 40 DERIVATIVES 52 OTHERS 8

NO. OF RESPONDENTS

INVESTMENT CRITERIA OF CUSTOMERS 8 40

EQUITIES DERIVATIVES OTHERS

52

INTERPRETATION: From the above graph we can analyze the priority level of the customers in investing different markets. 52% customers gave priority to do investment in derivatives marker, 40% liked to invest in equities, but a very low % showed their interest to invest in others like: funding etc.

Table 3. TYPE OF TRADING Response No. of respondents Intraday 33 Cash 49 Margin 18

TYPES OF TRADING
NO. OF RESPONDENTS 60 50 40 30 20 10 0 Intra day Cash RESPONSE Margin

INTERPRETATION: The above graph shows the comparison between different types of trading. The mass % of customers shows their interest to trade in cash as it is 49%. The 33% of customers liked to trade in intra day but very less % was seen to do trading on margin.

Table 4: AGE FACTOER INFLUENCING INVESTMENT IN EQUITIES AND DERIVATIVES AGE GROUP NO.OF RESPODENTS 18-25 10 25-40 55 40-55 25 ABOVE 55 10

AGE FACTOR INFLUENCING INVESTMENT IN EQUITIES AND DERIVATIVES

60 50 40 30 20 10 0 18-25 25-40 40-55 ABOVE 55 AGE GROUP

INTERPRETATION: The above analysis shows that 55% of people invest between the age group of 25-40, which indicates that the age is big factor which influence the customers trading behavior.

NO. OF RESPODENTS

Table 5: PURPOSE OF TRADING Response No. of Respondents Investment 38 Earring 17 Financial support 27 Professiona l 9 others 9

P U R P O S E OF T R AD IN G
40 35 30 25 20 15 10 5 0 Investm ent E arring Financ ial P rofes s ional S upport RES P ONS E Others

INTERPRETATION: From the above graph it is seen that purpose of trading is an another major factor which influence the customers trading behavior. We can see that 38% of people do trade for the purpose of investment. 27% people like to trade for the purpose of earnings. 17% want financial support $ Rests 9% do trade for professionalism.

NO. OF RESPONDENTS

Table 6: FREQUENCY OF TRADING Response No. of Respondent s Daily 20 Alternative day 25 Twice a week 13 Weekly 15 monthly 27

Freuency of trading
30 No. of respondents 25 20 15 10 5 0 Daily Alternative day Twice a week Response Weekly Monthly

INTERPRETATION: Habit of trading is also a big factor which influence the customers trading behavior. The above graph shows that: 25% people like to trade alternative day, 20% daily, 13% twice a week, 15% weekly, But major %( i.e. 27) shows their interest to trade monthly.

Table: SATISFACTION LEVEL OF CUSTOMERS Response No. of Respondents Yes 69 No 31

satisfaction level of customers

31%

Yes No

69%

INTERPRETATION: This diagram shows the satisfaction level of customers about the services provided by the Indiabulls, 69% people were satisfied with the services provided by the Indiabulls & a very least % of customers i.e. 31% were unsatisfied.

Table 8: PLANNING TO ATTACH WITH INDIA BULLS

Response No. of respondents

Yes 48

No 25

Cannot say 27

planning to attach with indiabulls

27% 48% Yes No Cannot say 25%

INTERPRETATION: The above graph shows the planning of the customers about the joining Indiabulls. 48% people respond positively, 25% people said No, 27% people said cant say.

OBSERVATIONS AND FINDINGS

Findings: Investment in equities and derivatives is mainly done by the age group of 25-40 It is found that main goal of trading is earning rather than investment. 49% of customers like to trade in F & O, 33% in intra day & rest in Delivery Almost 69% of customers are satisfied with the services provided to them. Major group of customers will have to invest in ICICI than in INDIABULLS. 52% of customers prefer to invest in derivatives, 40% in equities & rest in others. 48% of people shows positive attitude in joining INDIABULLS.

Observations: In Udaipur most prospects trust brand, which are i.e. local broker for trading of Equities and Derivatives. There are problems in availability of services regarding to the tips, which is given to the customers. In some areas like: small customers, Relatives of the brokers etc. the demand of the service provided by Indiabulls is very low. Services (Tipping/ Funding/ A/c information) for Customer is more important as compared to make them Customer. After giving the good departments in one office there is always a conflict between both the departments. (Because the work of both departments is same in Online and Offline.) There is also no proper database for the employee about the customers so it derives conflict between the employees about their prospective customers.

SUGGESTION & RECOMMENDATION

 Exiting customers should be provided better response & services so that by there good Word Of Mouth Company will get more customers. Advertisements should be given in the magazines related to Business, Management service, Electronics media, and business world or by installing stalls in different-different areas etc. Awareness should be created among the prospective clients. Most of the respondents inquired about the conformation of the branch office of India bulls in Udaipur because up to yet most of the companies have their franchise office or brokers there. So it requires doing advertisement there on large scale. Office space requirement: Min.1000 sq feet (for each Department) Different office for both online and offline department.

LIMITATIONS

Certain limitations have been encountered while doing this project due to which the information collected and conclusion that was arrived on may have some variance. Following constraints were encountered while doing the project: Respondents were not ready to give appointments. Data had to be collected according to the convenience of the respondents and therefore time management became a major hurdle. People because of lack of time did not answer some of the questions properly. We were asked to target only a few area of Udaipur, so our sample size was small. Some of them thought by filling questionnaire they would get some calls from company, which is very difficult to tackle. It was seen that sometimes the respondents post-pond a meeting by extending the date even after fixing an appointment, it made things difficult.

CONCLUSION

After research it was found that there is good potential market available for Indiabulls in Udaipur to venture into. The reason for this is: Few competitors Untapped / Growing market Indias biggest Marble market. Most of existing companies are charging high rates on the service provided by them. It is first branch office of any share trading company. Indiabulls has a good chance to capture the market as the company is having USPs and technology, which other companies are not providing.

BIBLIOGRAPHY

1. Marketing Management2. Marketing Research3. Sales Management-

Philip Kotler (11th edition) M.V. Kulkarni Douglas J. Dalrymple, William L. Cron & Thomas E.Decarolo

4. Services Marketing-

Valarie A. Zeithaml & Mary J O Bitner (3rd edition)

5. Financial Management-

I.M. Pandey

Help taken from the following Websites: 1. www.google.com 2. www.indiabulls.com 3. www.bulfins.com

QUESTIONAIRE
Demographic Data

Contact Person: ________________________________________ Address:_____________________________________________ Designation: ________________________________City:____________________ Phone No.:_________________ Fax:_______________ E-mail:__________________ Website: ______________________ 1. Existing broker: ISL ICICI Other (Local Broker)

2. From how many years you are dealing with your Existing Broker? _______________________________________________________________ _______________________________________________________ 3. In which you prefer to do investment? Equities Derivatives Other

4. What type of trading you prefer to do? Intraday Delivery Based F&O

5. What age group is best for the investment according to you? 18-25 40-55 25-40 Above 55

6. What is your purpose of trading? Investment Financial Support Earning

Profession

Other

7. What is the frequency of your trading? Daily Weekly Alternative Day Monthly Twice a Week

8. Are you satisfied with the service provided by the Indiabulls? Yes No

9. Are you planning to attach with Indiabulls? Yes Cant Say If Yes, Why? ___________________________________________ If No, Why? ____________________________________________ No