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Summer Training Report On Competitive Analysis & Overall Functioning of Broking Firm At Kotak Securities Ltd.

, Bhilai

Under The Guidance of Lect.Swati Shukla(Faculty Guide,GDRCET), Mr.Rehan khan (Branch Manager, Kotak Securities Ltd,Bhilai)
Submitted by Arti Singh

DEPARTMENT OF MANAGEMENT GD Rungta College Of Engineering & Technology Bhilai

Approved By AICTE, New Delhi

Kohka-kurud Road, Bhilai-490024(C.G.) 1


I,ARTI SINGH student of MBA in department of management, GD Rungta College of Engineering &Technology, kohka kurud road, Bhilai Nagar (C.G) hereby declare that research report entitled

Analysis & Overall Functioning of Broking Firm

Submitted to Mr.Rehan Khan at kotak securities Ltd., and Lect.Swati Shukla at GD Rungta College of Engineering &Technology and Is the record of original work done by me and the matter enclosed has not been submitted for the award of any other degree or diploma in the university or anywhere.




This is to certify that the project work done on Competitive Analysis & Overall Functioning of Broking Firm submitted to GD RUNGTA COLLEGE OF ENGINEERING & TECHNOLOGY, BHILAI, ARTI SINGH, student of MBA in partial fulfilment of the requirement for the award of degree business administration in a summer internship programme at our branch carried out by her under my supervision and guidance .This work has been submitted anywhere else for other degree/diploma.

SIGNATURE: Name: Rehan Khan Designation: Branch Manager



Working on this project has been a great learning experience for us. We enjoyed every step of its progress and we thankful to all people associated with us during this period. We convey my sincere thanks to our company guide, Mr.Rehan Khan (Branch Manager,Kotak Securities Ltd., bhilai) who gave us an opportunity to be a part of Kotak Securities Ltd as a summer intern for 45 days. His support and guidance helped us to carry out our project which wouldnt have been possible without his constant advice, support, co-operation and encouragement throughout the project. It is also our pleasure to acknowledge the utmost co-operation and valuable suggestions given from time to time by the other members of Kotak Securities Ltd., Bhilai, i.e., Mr.Anand Nandeshwar who provided us utmost knowledge about the overall functioning in a broking firm, and Mr.Rajesh Prajapati who guided us throughout upon dealing with clients. We also pay our sincere thanks to Lect.Swati Shukla (Faculty Guide, GDRCET) for his valuable suggestions, inspiration and guidance with regard to our project. We also would like to thank all those who have directly or indirectly helped us providing complete information which helped in development of this project.


This report provides an overview of two important aspects. The first is competitive analysis of Kotak Securities Ltd., and various other broking firms which are the major competitors of Kotak. Based on the feedback taken from various customers from various sectors (Industrial, Educational, Business, private, etc.,) who invest in stock market or have some knowledge of stocks or an idea of investment in stock market, a competitive analysis have been done. The second aspect which this report looks into is the Overall Functioning of a broking firm. The major roles played by a broking starting from enquiry clients, opening demat and trading account of customers, the whole documentation process, telephonic trade conversation, trading of clients to settlement of clients receipts and payments and use of ODIN client software and also making trade decisions on the basis of latest company results and stock news, everything has been explained.



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TABLE OF CONTENT S.NO 1) DESCRIPTION UNIT-1 Introduction Research objective 2) UNIT-2 Literature Survey 3) UNIT-3 4) Research Methodology Research Design Sample Design Flow chart PAGE NO 11 12-22 23 24 25-37 38 39-40 41-42 43 44 45 46-56 57-58 59-60 61 61-62 63 64-66

UNIT-4 Data analysis Findings Limitation


UNIT-5 Conclusion Bibliography Questionnaire






The Kotak Mahindra Group

Kotak Mahindra is one of India's leading banking and financial services organizations, offering a wide range of financial services that encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the diverse financial needs of individuals and corporate sector. The group has a net worth of over Rs. 100.6 billion and has a distribution network of branches, franchisees, representative offices and satellite offices across cities and towns in India, and offices in New York, London, San Francisco, Dubai, Mauritius and Singapore servicing around 8 million customer accounts.

Kotak Group Products & Services:

Bank Life Insurance Mutual Fund Car Finance Securities Institutional Equities Investment Banking Kotak Mahindra International Kotak Private Equity Kotak Realty Fund

Originally established in 1994, Kotak Securities is a subsidiary of Kotak Mahindra Bank, which services more than 7.4 lakh customers. The firm has a wide network of more than 1400 branches, franchisees representative offices, and satellite offices across 448 cities in India and offices in New York, London, Dubai, Mauritius and Singapore. We process more than 400000 trades a day which is much higher than some of the renowned international brokers. The company is a corporate member of both The Bombay Stock Exchange (BSE) and The National Stock Exchange of India (NSE). Our operations include stock broking services for trading in stock markets through branches & internet and distribution of various financial products including investments in IPOs, Mutual Funds and Currency Derivatives. Currently, Kotak Securities is one of the largest broking houses in India

with substantial geographical reach to Asia Pacific, Europe, Middle East and America. Kotak Securities Limited has Rs. 1,202 crore of Assets Under Management (AUM) as of 31st Dec, 2011.

We have been the pioneers in providing many products and services which have now become industry standards for stock broking in India. Some of them include: Mobile stock trading application to keep track of your investments even on the go Facility of Margin Finance to the customers for online stock trading Investing in IPOs and Mutual Funds on the phone SMS alerts before execution of depository transactions Auto Invest - A systematic investing plan in Equities and Mutual funds Provision of margin against securities automatically against shares in your Demat account

Research Expertise:
We specialize in Fundamental and Technical analysis backed by a team of highly trained and qualified individuals. Our full-fledged research division is involved in Macro Economic studies, Sectorial research and Company Specific Equity Research which publishes in-depth stock market analysis. This is combined with a strong and well networked sales force which helps deliver current and up to date market information and news. We are also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL). By being a stock broker and depositary participant, we provide dual benefit in our services wherein the investors can avail our stock broking services for executing the transactions and the depository services for settling them. Our Portfolio Management Service comes as an answer to those who would like to grow exponentially on the crest of the stock market, with the backing of an expert.


Best Broker in India by Finance Asia for 2010 & 2009 UTI MF - CNBC TV18 Financial Advisor Awards - Best Performing Equity Broker (National) for the year 2009 Best Brokerage Firm in India by Asia money in 2009, 2008, 2007 & 2006 Best Performing Equity Broker in India - CNBC Financial Advisor Awards 2008 Avaya Customer Responsiveness Awards (2007 & 2006) in Financial Services Sector The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007 Euro money Award (2007 & 2006) - Best Provider of Portfolio Management: Equities

Euro money Award (2005)-Best Equities House In India Finance Asia Award (2005)-Best Broker in India. Finance Asia Award (2004) - India's best Equity House.

The best broker and the best equity house in India.

Right Investment Partner

Kotak securities see investing from customer perspective, and make recommendations based on customer needs. One of Kotak securities important goals is to simplify investing for customer; along with this Kotak securities also provide long term values to their customers. Kotak securities have a million reasons for you to choose us. Listed below are a few:

Stability: Kotak securities are a subsidiary of Kotak Mahindra Bank and one of the

oldest and largest stock broking firms in the Industry. Kotak securities have been the first and only NBFC to receive the license to be converted into a bank.

Innovators in the Industry: Kotak securities have been the first in providing
many products and services which have now become industry standards.

First to provide Margin Financing to the customers First to enable investing in IPOs and Mutual Funds on the phone Providing SMS alerts before execution of depository transactions Launching of Mobile application to track portfolio Auto Invest - A systematic investing plan in Equities and Mutual fund Provision of margin against securities automatically against shares in your Demat account

Value: Whether customer with a small or large wallet size, they can expect Kotak
securities to bring value to them in every form.

Quality Research Quick trade execution Low brokerages Accounts that suit your investment profile Risk Profiler Superior Customer Service


Service: Kotak securities believe in high

standards of service and that's precisely what Kotak offer. It's an honors to be awarded the most customer responsive company award in the Financial Institution sector by AVAYA Global Connect Award both in 2006 and 2007

Robust Technology: Kotak Securities have developed their own proprietary

trading platform which is robust and among the best in the industry. They have more than 150 technology professionals constantly working on upgrading and speeding up all their systems.

Centralized Risk Management System: Unlike many other players they

have a centralized risk management system. This allows them to offer the same levels of service to customers across all locations.

Exceptional Research: Unlike most other competitors they have their own in
house research team. Their in house research team is among the best in the industry and they have years of experience in the financial markets. They scan through the plethora of stocks and find the scrips that have a high potential of providing you good returns. Their investors get research Technical, Fundamental, Derivatives, Macro-economic and mutual fund research.

Large Presence: Kotak securities are present in 447 cities with 1420 outlets all
over the country. Their employee strength extends beyond 3800.

Multiple Share Trading Platforms

Kotak securities understand customers trading needs. If you're an Online Customer, Kotak Securities offers multiple mechanisms to place your trade. Be it a Wi-Fi-zone or a cybercaf or a 3G connection or GPRS handset or a completely aloof from internet zone, you'll always have access to trade through Kotak Securities. Kotak Securities are one of the brokers to have the highest number of trading platforms to serve customer trading needs.

Internet Desktop

Website KEATProX

Type of Application
Web .EXE based application

Satisfying Need
Access all the features on the web Ultra high speed experience with advanced features. Exe based

application. Desktop FASTLANE Java applet KEATProX like experience when your office premises do not allow application installations High speed trading experience on a Mobile When you have a weak internet connectivity When customer not in an Internet zone When customer not in an Internet zone


Mobile Stock Trader Xtralite

Mobile Application Web

Mobile / Computer


Call and Trade Branch Advisory


Share Market Education KEAT Pro X

A free, easy-to-use web based tool for all our online trading customers, KEAT Pro X is a high speed trading tool that allows you to monitor what is happening in the market at real time speed. KEAT Pro X allows you to check live market rates of scripts on NSE, BSE & NSE Currency. You can create multiple watch lists and simultaneously place orders; view order reports etc. this platform is powered with many features that make your trading experience faster and easier.

Real time streaming data :
Watch the market at real time with free streaming stock quotes from NSE, BSE & NSE Currency. Available information also has details of Market Lot, Top Gainers/Losers, Indices Update, Top Active Scrips, and Option Calculator.

Charting Tools :
With available charting facility you can study and understand the pattern of the stock of your choice. This gives you the option of viewing different kinds of charts like Area, Candlestick etc.

Live Account Information :

Track your account information live, view placed orders; get trade

confirmation; view limits, positions, changing profit and loss etc. You can customize the reports as per your convenience.

Customizable :
KEAT Pro X allows you to create your own personalized view of the Indian share market so you can watch the data you want. You can create multiple watchlists that can have upto 50 scrips in each of them; these watchlists can be set in tabs.

Speed :
KEAT Pro X is a high speed trading platform which provides you real trading and reporting that helps you to take advantage of changing stock prices.

Stock Recommendations :
This share trading software i.e. KEAT Pro X also provides you recommendation on stocks which are researched by our research analysts on real-time basis as and when a call is made by the research analyst.

Watch lists :

It gives more control on your investment decisions by allowing you to create your personalized watch lists for tracking your favorite stocks on real-time basis. This share trading software also allows you to do in-depth research on any stock of your choice. KEAT Pro X allows you to view NSE, BSE and currency prices all on a single watch list.

Highly Integrated :
KEAT Pro X is a highly integrated platform, this means you can access to different exchanges and instruments like, Equities, Derivatives and Currency Derivatives from this single platform. It also allows each of your created watchlists to be available on Website and Mobile Stock Trader as well and viceversa.

It comes free of charge with you online trading account Set multiple watchlists Create tab-wise access to watchlist View placed order and trade confirmation Select indices/sectors or business groups Trade long contracts Facility to sell from existing stocks Limits, Positions tabs available in the Risk Report View changing profit and loss Fast and convenient User Interface Customizable User Interface View live Market Depth Predefined watchlist to create personalised watchlist





Competitive analysis of the most popular broking companies in Bhilai based on the major factors contributing to the choice of a broking service. To know whether Kotak Securities Ltd., is among the best services provider as a stock broker in Bhilai.

To know about the awareness towards stock brokers and share market. To study the different investment option in share market To study the factors affecting them To study the perception of people for different option





Following diagram gives the structure of Indian financial system:


Financial markets are helpful to provide liquidity in the system and for smooth Functioning of the system. These markets are the centers that provide facilities for buying and selling of financial claims and services. The financial markets match the demands of investment with the supply of capital from various sources. According to functional basis financial markets are classified into two types. They are: Money markets (short-term) Capital markets (long-term) According to institutional basis again classified in to two types. They are: Organized financial market Non-organized financial market. The organized market comprises of official market represented by recognized institutions, bank and government (SEBI) registered/controlled activities and intermediaries. The unorganized market is composed of indigenous bankers, moneylenders, individual professional and non-professionals.

Money market is a place where we can raise short-term capital. Again the money market is classified in to Inter-bank call money market Bill market and Bank loan market Etc. E.g.-treasury bills, commercial papers, CD's etc.


Capital market is a place where we can raise long-term capital. Again the capital market is classified in to two types and they are Primary market and Secondary market. E.g.: Shares, Debentures, and Loans etc.

Primary market is generally referred to the market of new issues or market for mobilization of resources by the companies and government undertakings, for new projects as also for expansion, modernization, addition, and diversification and up gradation. Primary market is also referred to as New Issue Market. Primary market operations include new issues of shares by new and existing companies, further and right issues to existing shareholders, public offers, and issue of debt instruments such as debentures, bonds, etc.

The primary market is regulated by the Securities and Exchange Board of India (SEBI a government regulated authority).

The main services of the primary market are origination, underwriting, and distribution. Origination deals with the origin of the new issue. Underwriting contract make the shares predictable and remove the element of uncertainty in the subscription. Distribution refers to the sale of securities to the investors. The following are the market intermediaries associated with the market: 1. Merchant banker/book building lead manager 2. Registrar and transfer agent 3. Underwriter/broker to the issue 4. Adviser to the issue 5. Banker to the issue 6. Depository 7. Depository participant

Investors protection in the primary market:

To ensure healthy growth of primary market, the investing public should be protected. The term investor protection has a wider meaning in the primary market. The principal ingredients of investors protection are: Provision of all the relevant information Provision of accurate information and Transparent allotment procedures without any bias.

The primary market deals with the new issues of securities. Outstanding securities are traded in the secondary market, which is commonly known as stock market or stock exchange. The secondary market is a market where scrips are traded. It is a market place which provides liquidity to the scrips issued in the primary market. Thus, the growth of secondary market depends on the primary market. More the number of companies entering the primary market, the greater are the volume of trade at the secondary market. Trading activities in the secondary market are done through the recognized stock exchanges which are 23 in number including Over The Counter Exchange of India (OTCE), National Stock Exchange of India and Interconnected Stock Exchange of India. Secondary market operations involve buying and selling of securities on the stock exchange through its members. The companies hitting the primary market are mandatory to list their shares on one or more stock exchanges in India. Listing of scrips provides liquidity and offers an opportunity to the investors to buy or sell the scrips. The following are the intermediaries in the secondary market: 1. Broker/member of stock exchange buyers broker and sellers broker 2. Portfolio Manager

3. 4. 5. 6.

Investment advisor Share transfer agent Depository Depository participants.


Stock exchanges are the perfect type of market for securities whether of government and semi-govt bodies or other public bodies as also for shares and debentures issued by the joint-stock companies. In the stock market, purchases and sales of shares are affected in conditions of free competition. Government securities are traded outside the trading ring in the form of over the counter sales or purchase. The bargains that are struck in the trading ring by the members of the stock exchanges are at the fairest prices determined by the basic laws of supply and demand.

Definition of a stock exchange:

Stock exchange means anybody or individuals whether incorporated or not, constituted for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities. The securities include: Shares of public company. Government securities. Bonds

History of Stock Exchanges:

The only stock exchanges operating in the 19th century were those of Mumbai setup in 1875 and Ahmadabad set up in 1894. These were organized as voluntary nonprofitmarking associations of brokers to regulate and protect their interests. Before the control on securities under the constitution in 1950, it was a state subject and the Bombay securities contracts (control) act of 1925 used to regulate trading in securities. Under this act, the Mumbai stock exchange was recognized in 1927 and Ahmadabad in 1937. During the war boom, a number of stock exchanges were organized. Soon after it became a central subject, central legislation was proposed and a committee headed by A.D.Gorwala went into the bill for securities regulation. On the basis of the committees recommendations and public discussion, the securities contract (regulation) act became law in 1956.

Functions of Stock Exchanges:

Stock exchanges provide liquidity to the listed companies. By giving quotations to the listed companies, they help trading and raise funds from the market. Over the hundred and twenty years during which the stock exchanges have existed in this country and through their medium, the central and state government have raised crores of rupees by floating public loans. Municipal corporations, trust and local bodies have obtained from the public their financial requirements, and industry, trade and commerce- the backbone of the countrys economy-have secured capital of crores or rupees through the issue of stocks, shares and debentures for financing their day-to-day activities,

organizing new ventures and completing projects of expansion, diversification and modernization. By obtaining the listing and trading facilities, public investment is increased and companies were able to raise more funds. The quoted companies with wide public interest have enjoyed some benefits and assets valuation has become easier for tax and other purposes.

Various Stock Exchanges in India:

At present there are 23 stock exchanges recognized under the securities contracts (regulation), Act, 1956. Those are: Ahmadabad Stock Exchange Association Ltd. Bangalore Stock Exchange Bhubaneswar Stock Exchange Association Calcutta Stock Exchange

Cochin Stock Exchange Ltd. Coimbatore Stock Exchange Delhi Stock Exchange Association Guwahati Stock Exchange Ltd Hyderabad Stock Exchange Ltd. Jaipur Stock Exchange Ltd Kanara Stock Exchange Ltd Ludhiana Stock Exchange Association Ltd Madras Stock Exchange Madhya Pradesh Stock Exchange Ltd. Magadha Stock Exchange Limited Meerut Stock Exchange Ltd. Mumbai Stock Exchange National Stock Exchange of India OTC Exchange of India Pune Stock Exchange Ltd. Saurashtra Kutch Stock Exchange Ltd. Uttar Pradesh Stock Exchange Association Vadodara Stock Exchange Ltd.


Out of these major stock exchanges were:

NSE (National Stock Exchange)

The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges, which recommended promotion of a National Stock Exchange by financial institutions (FIs) to provide access to investors from all across the country on an equal footing. Based on the recommendations, NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the country. On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment commenced operations in November 1994 and operations in Derivatives segment commenced in June 2000.

NSE's mission is setting the agenda for change in the securities markets in India. The NSE was set-up with the main objectives of: Establishing a nation-wide trading facility for equities and debt instruments. Ensuring equal access to investors all over the country through an appropriate communication network. Providing a fair, efficient and transparent securities market to investors using electronic trading systems.

Enabling shorter settlement cycles and book entry settlements systems, and meeting the current international standards of securities markets.

The standards set by NSE in terms of market practices and technology, have become industry benchmarks and are being emulated by other market participants. NSE is more than a mere market facilitator. It's that force which is guiding the industry towards new horizons and greater opportunities.

BSE (Bombay Stock Exchange)

The Stock Exchange, Mumbai, popularly known as "BSE" was established in 1875 as "The Native Share and Stock Brokers Association". It is the oldest one in Asia, even older than the Tokyo Stock Exchange, which was established in 1878. It is a voluntary non-profit making Association of Persons (AOP) and is currently engaged in the process of converting itself into demutualized and corporate entity. It has evolved over the years into its present status as the premier Stock Exchange in the country. It is the first Stock Exchange in the Country to have obtained permanent recognition in 1956 from the Govt. of India under the Securities Contracts (Regulation) Act 1956.The Exchange, while providing an efficient and transparent market for trading in securities,

debt and derivatives upholds the interests of the investors and ensures redresses of their grievances whether against the companies or its own member-brokers. It also strives to educate and enlighten the investors by conducting investor education programmers and making available to them necessary informative inputs. A Governing Board having 20 directors the apex body, which decides the policies and regulates the affairs of the Exchange. The Governing Board consists of 9 elected directors, who are from the broking community (one third of them retire ever year by rotation), three SEBI nominees, six public representatives and an Executive Director & Chief Executive Officer and a Chief Operating Officer. The Executive Director as the Chief Executive Officer is responsible for the day-to-day administration of the Exchange and the Chief Operating Officer and other Heads of Department assist him. The Exchange has inserted new Rule No.126 A in its Rules, Byelaws pertaining to constitution of the Executive Committee of the Exchange. Accordingly, an Executive Committee, consisting of three elected directors, three SEBI nominees or public representatives, Executive Director & CEO and Chief Operating Officer has been constituted. The Committee considers judicial & quasi matters in which the Governing Board has powers as an Appellate Authority, matters regarding annulment of transactions, admission, continuance and suspension of member brokers, declaration of a member-broker as defaulter, norms, procedures and other matters relating to arbitration, fees, deposits, margins and other monies payable by the member-brokers to the Exchange, etc. is



A comprehensive legal framework was provided by the Securities Contract Regulation Act, 1956 and Securities Exchange Board of India 1952. Three tier regulatory structure comprising Ministry of finance The Securities And Exchange Board of India Governing body

Members of the stock exchange:

The securities contract regulation act 1956 has provided uniform regulation for the admission of members in the stock exchanges. The qualifications for becoming a member of a recognized stock exchange are given below: The minimum age prescribed for the members is 21 years. He should be an Indian citizen. He should be neither a bankrupt nor compound with the creditors. He should not be convicted for fraud or dishonesty. He should not be engaged in any other business connected with a company. He should not be a defaulter of any other stock exchange. The minimum required education is a pass in 12th standard examination.


The securities and exchange board of India was constituted in 1988 under a resolution of government of India. It was later made statutory body by the SEBI act 1992.according to this act, the SEBI shall constitute of a chairman and four other members appointed by the central government. With the coming into effect of the securities and exchange board of India act, 1992 some of the powers and functions exercised by the central government, in respect of the regulation of stock exchange were transferred to the SEBI.



To protect the interest of investors in securities. Regulating the business in stock exchanges and any other securities market. Registering and regulating the working of intermediaries associated with securities market as well as working of mutual funds. Promoting and regulating self-regulatory organizations. Prohibiting insider trading in securities. Regulating substantial acquisition of shares and take over of companies. Performing such functions and exercising such powers under the provisions of capital issues (control) act, 1947and the securities to it by the central government.


Board of Directors of Stock Exchange has to be reconstituted so as to include non-members, public representatives and government
representatives to the extent of 50% of total number of members. Capital adequacy norms have been laid down for the members of various stock exchanges depending upon their turnover of trade and other factors. All recognized stock exchanges will have to inform about transactions within 24hrs.

Buy and sell orders placed with members of the stock exchange by the investors. The orders are of different types.

Limit orders: Orders are limited by a fixed price. E.g. buy Reliance

Petroleum at Rs.50.Here, the order has clearly indicated the price at which it has to be bought and the investor is not willing to give more than Rs.50. Best rate order: Here, the buyer or seller gives the freedom to the broker to execute the order at the best possible rate quoted on the particular date for buying. It may be lowest rate for buying and highest rate for selling.

Discretionary order: The investor gives the range of price for purchase

and sale. The broker can use his discretion to buy within the specified limit. Generally the approximation price is fixed. The order stands as this buy BRC 100 shares around Rs.40.

Stop loss order: The orders are given to limit the loss due to unfavorable

price movement in the market. A particular limit is given for waiting. If the price falls below the limit, the broker is authorized to sell the shares to prevent further loss. E.g. Sell BRC limited at Rs.24, stop loss at Rs.22.


Buying and selling shares: To buy and sell the shares the investor has
to locate register broker or sub broker who render prompt and efficient service to him. The order to buy or sell specifying the number of shares of the company of investors choice is placed with the broker. The order may be of any type. After receiving the order the broker tries to execute the order in his computer terminal. Once matching order is found, the order is executed. The broker then delivers the contract note to the investor. It gives the details regarding the name of the company, number of shares bought, price, brokerage, and the date of delivery of share. In this physical trading form, once the broker gets the share certificate through the clearing houses he delivers the share certificate along with transfer deed to the investor. The investor has to fill the transfer deed and stamp it. The stamp duty is one of the percentage considerations, the investor should lodge the share certificate and transfer deed to the register or transfer agent of the company. If it is bought in the DEMAT form, the broker has to give a matching instruction to his depository participant to transfer shares bought to the investors account. The investor should be account holder in any of the depository participant. In the case of sale of shares on receiving payment from the purchasing broker, the broker effects the payment to the investor.

Share groups: The scrips traded on the BSE have been classified into
A,B1,B2,C,F and Z groups. The A group represents those, which are in the carry forward system. The F group represents the debt market segment (fixed income securities). The Z group scrips are of the blacklisted companies. The C group covers the odd lot securities in A, B1&B2 groups.


Under rolling settlement system, the settlement takes place n days (usually 1, 2, 3 or 5days) after the trading day. The shares bought and sold are paid in for n days after the trading day of the particular transaction. Share settlement is likely to be completed much sooner after the transaction than under the fixed settlement system.The rolling settlement system is noted by T+N i.e. the settlement period is n days after the trading day. A rolling period which offers a large number of days negates the advantages of the system. Generally longer settlement periods are shortened gradually.SEBI made RS compulsory for trading in 10 securities selected on the basis of the criteria that they were in compulsory demats list and had daily turnover of about Rs.1 crores or more. Then it was extended to A stocks in Modified Carry Forward Scheme, Automated Lending and Borrowing Mechanism (ALBM) and Borrowing and lending Securities Scheme (BELSS) with effect from Dec 31, 2001.SEBI has introduced T+5 rolling settlement in equity market from July 2001 and subsequently shortened the cycle to T+3 from April 2002. After the T+3 rolling settlement experience it was further reduced to T+2 to reduce the risk in the market and to protect the interest of the investors from 1st April 2003.

Activities on T+1:
Conformation of the institutional trades by the custodian is sent to the stock exchange by 11.00 am. A provision of an exception window would be available for late confirmation. The time limit and the additional changes for the exception window are dedicated by the exchange. The exchanges/clearing house/ clearing corporation would process and download the obligation files to the brokers terminals late by 1.30 p.m on T+1. Depository

participants accept the instructions for pay in securities by investors in physical form upto 4 p.m and in electronic form upto 6 p.m. the depositories accept from other DPs till 8p.m for same day processing.

Activities on T+2:
The depository permits the download of the paying in files of securities and funds till 10.30 a.m on T+2 from the brokers pool accounts. The depository processes the pay in requests and transfers the consolidated pay in files to clearing House/clearing Corporation by 11.00am/on T+2. The exchange/clearing house/clearing corporation executes the pay-out of securities and funds latest by 1.30 p.m. on T+2 to the depositories and clearing banks. In the demat mode net basis settlement is allowed. The buy and sale positions in the same scrip can be settled and net quantity has to be settled.




Research Methodology:

Research in common parlance refers to a search for knowledge. Once can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. The Advanced Learners Dictionary of Current English lays down the meaning of research as A careful investigation or inquiry specially through search for new facts in any branch of knowledge.

Redman and Mory define research as a Systematized effort to gain new knowledge. Some people consider research as a movement, a movement from the known to the unknown. It is actually a voyage of discovery. We all possess the vital instinct of inquisitiveness for, when the unknown confronts us, we wonder and our inquisitiveness makes us probe and attainfull and fuller understanding of the unknown. This inquisitiveness is the mother of all knowledge and the method, which man employs for obtaining the knowledge of whatever the unknown, can be termed as research. Research is an academic activity and as such the term should be used in a technical sense.According to Clifford Woody research comprises defining and redefining problems, formulatinghypothesis or suggested solutions; collecting, organising and evaluating

data; making deductions and eaching conclusions; and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. D. Slesinger and M. Stephenson in the Encyclopaedia of Social Sciences define research as the manipulation of things, concepts or symbols for the purpose of generalising to extend, correct or verify knowledge, whether that knowledge aids in construction of theory or in the practice of an art.

The purpose of research is to discover answers to questions through the application of scientific procedures. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet. Though each research study has its own specific purpose, we may think of research objectives as falling into a number of following broad groupings: 1. To gain familiarity with a phenomenon or to achieve new insights into it (studies with thisObject in view are termed as exploratory or formulative research studies); 2. To portray accurately the characteristics of a particular individual, situation or a group (Studies with this object in view are known as descriptive research studies); 3. To determine the frequency with which something occurs or with which it is associated with something else (studies with this object in view are known as diagnostic research Studies); 4. To test a hypothesis of a causal relationship between variables.

The basic types of research are as follows: (i) Descriptive vs. Analytical: Descriptive research includes surveys and fact-finding enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. In social science and business research we quite often use the term Ex post facto research for descriptive research studies. The main characteristic of this method is that the researcher has no control over the variables; he can only report what has happened or what is happening. (ii) Applied vs. Fundamental: Research can either be applied (or action) research or fundamental (to basic or pure) research. Applied research aims at finding a solution for an immediate problem facing a society or an industrial/business organisation, whereas fundamental research is mainly concerned with generalisations and with the formulation of a theory. Gathering knowledge for knowledges sake is termed pure or basic research. Research concerning some natural phenomenon or relating to pure mathematics are examples of fundamental research.

(iii) Quantitative vs. Qualitative: Quantitative research is based on the measurement of quantity or amount. It is applicable to phenomena that can be expressed in terms of quantity. Qualitative research, on the other hand, is concerned with qualitative phenomenon, i.e., phenomena relating to or involving quality or kind. For instance, when we are interested in investigating the reasons for human behaviour (i.e., why people think or do certain things), we quite often talk of Motivation Research, an important type of qualitative research. This type of research aims at discovering the underlying motives and desires, using in depth interviews for the purpose. (iv) Conceptual vs. Empirical: Conceptual research is that related to some abstract idea(s) or theory. It is generally used by philosophers and thinkers to develop new concepts or to reinterpret existing ones. On the other hand, empirical research relies on experience or observation alone, often without due regard for system and theory. It is data-based research, coming up with conclusions which are capable of being verified by observation or experiment. (v) Some Other Types of Research: All other types of research are variations of one or more of the above stated approaches, based on either the purpose of research, or the time required to accomplish research, on the environment in which research is done, or on the basis of some other similar factor. Form the point of view of time, we can think of research either as one-time research or longitudinal research. In the former case the research is confined to a single time-period, whereas in the latter case the research is carried on over several time-periods.


The formidable problem that follows the task of defining the research problem is the preparation of the design of the research project, popularly known as the research design. Decisions regarding what, where, when, how much, by what means concerning an inquiry or a research study constitute a research design. A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. More explicitly, the desing decisions happen to be in respect of: (i) What is the study about? (ii) Why is the study being made? (iii) Where will the study be carried out? (iv) What type of data is required? (v) Where can the required data be found? (vi) What periods of time will the study include? (vii) What will be the sample design? (viii) What techniques of data collection will be used?

(ix) How will the data be analyzed? (x) In what style will the report be prepared?

Keeping in view the above stated design decisions, one may split the overall research design into the following parts: (a) the sampling design which deals with the method of selecting items to be observed for the given study; (b) the observational design which relates to the conditions under which the observations are to be made; (c) the statistical design which concerns with the question of how many items are to be observed and how the information and data gathered are to be analysed; and (d) the operational design which deals with the techniques by which the procedures specified in the sampling, statistical and observational designs can be carried out. In brief, research design must, at least, contain (a) a clear statement of the research problem; (b) procedures and techniques to be used for gathering information; (c) the population to be studied; and (d) methods to be used in processing and analysing data.


A good design is often characterised by adjectives like flexible, appropriate, efficient, economical and so on. A research design appropriate for a particular research problem, usually involves the consideration of the following factors: (i) the means of obtaining information; (ii) the availability and skills of the researcher and his staff, if any; (iii) the objective of the problem to be studied; (iv) the nature of the problem to be studied; and (v) the availability of time and money for the research work.


1. Research design in case of exploratory research studies: Exploratory research studies are also termed as formulative research studies. The main purpose

of such studies is that of formulating a problem for more precise investigation or of developing the working hypotheses from an operational point of view. The major emphasis in such studies is on the discovery of ideas and insights. As such the research design appropriate for such studies must be flexible enough to provide opportunity for considering different aspects of a problem under study. Inbuilt flexibility in research design is needed because the research problem, broadly defined initially, is transformed into one with more precise meaning in exploratory studies, which fact may necessitate changes in the research procedure for gathering relevant data. Generally, the following three methods in the context of research design for such studies are talked about: (a) the survey of concerning literature; (b) the experience survey and (c) the analysis of insight-stimulating. 2. Research design in case of descriptive and diagnostic research studies: Descriptive research studies are those studies which are concerned with describing the characteristics of a particular individual, or of a group, whereas diagnostic research studies determine the frequency with which something occurs or its association with something else. The studies concerning whether certain variables are associated are examples of diagnostic research studies. As against this, studies concerned with specific predictions, with narration of facts and characteristics concerning individual, group or situation are all examples of descriptive research studies. 3. Research design in case of hypothesis-testing research studies: Hypothesistesting research studies (generally known as experimental studies) are those where the researcher tests the hypotheses of causal relationships between variables. Such studies require procedures that will not only reduce bias and increase reliability, but will permit drawing inferences about causality. Usually experiments meet this requirement. Hence, when we talk of research design in such studies, we often mean the design of experiments.

Sampling Design
A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure the researcher would adopt in selecting items for the sample. Sample design may as well lay down the number of items to be included in the sample i.e., the size of the sample. Sample design is determined before data are collected. There are many sample designs from which a researcher can choose. Some designs are relatively more precise and easier to apply than others. Researcher must select/prepare a sample design which should be reliable and appropriate for his research study.



Usually a systematic bias is the result of one or more of the following factors: 1. Inappropriate sampling frame: If the sampling frame is inappropriate i.e., a biased representation of the universe, it will result in a systematic bias. 2. Defective measuring device: If the measuring device is constantly in error, it will result in systematic bias. In survey work, systematic bias can result if the questionnaire or the interviewer is biased. Similarly, if the physical measuring device is defective there will be systematic bias in the data collected through such a measuring device. 3. Non-respondents: If we are unable to sample all the individuals initially included in the sample, there may arise a systematic bias. The reason is that in such a situation the likelihood of establishing contact or receiving a response from an individual is often correlated with the measure of what is to be estimated. 4. Indeterminancy principle: Sometimes we find that individuals act differently when kept under observation than what they do when kept in non-observed situations. For instance, if workers are aware that somebody is observing them in course of a work study on the basis of which the average length of time to complete a task will be determined and accordingly the quota will be set for piece work, they generally tend to work slowly in comparison to the speed with which they work if kept unobserved. Thus, the indeterminancy principle may also be a cause of a systematic bias. 5. Natural bias in the reporting of data: Natural bias of respondents in the reporting of data is often the cause of a systematic bias in many inquiries. There is usually a downward bias in the income data collected by government taxation department, whereas we find an upward bias in the income data collected by some social organisation. People in general understate their incomes if asked about it for tax purposes, but they overstate the same if asked for social status or their affluence.





Review the literature Review concepts and theories Review previous research findings Desig n resea rch (inclu ding sampl e desig n)

Define researc h proble m

Formul ate hypoth esis

Collec t data (exec ution)


Analy ze data (test hypot hesis if any)

Interpre t and report





= feedback (Helps in controlling the sub-system to which it is transmitted)



= feed forward (Serves the vital function of providing criteria evaluation)





Q-1.What type of investment plan do you presently have or like


15% 20% 30% 20% 15%

to have?

INFERENCE From the above table it is clear that 15% of the respondents has refer to invest in share market, 20% are go for mutual fund, 30% people prefer gold investment, 20% prefer fixed deposit, and rest prefer for real estate.

Q.2.What will be your preferable mode of investment?



% SHARE MARKE T 5 8 3 0 6 1.offline



1.Physical gold 2.commodi ty 3.coin

3 5 1 2 4 8 5

1.plot 2.flats 3.commercial property 4.row houses/individ ual bungalow

5 6 4 4

1.physical 2.electronic/De mat 3.SIP

1 7 1 1 7 2

1.Fixed deposit 2.Reccurri ng deposit

6 2 3 8

4.any others


INFERENCE From the above table it is clear that in:1) Gold investment - 35% of the respondents has refer to invest in physical gold, 12% are for commodity, 48% people refer gold coin & 5% refer any other. 2) Real estate 58% refer plot, 30% refer flats, rest 12% equal in both commercial property and row houses/bungalow. 3) Share market 56% prefer offline mode and 44% refer online trading. 4) Mutual fund 17% refer to physical, 11% prefer electronic/Demat & 72% invest in SIP MF. 5) Bank Deposit 62% people invest in fixed deposit and 38% prefer recurring deposit.


Q.3.Which type of investment will you prefer?

Long term Short Term

53 47

INFERENCE From the above table it is clear that in type of investment 53% of the respondent has invest for long-term basis and 47% people are invest for short term.


Q.4. Will you like to invest in share market?

Interested Not interested

34 66

INFERENCE From the above table it is clear that in interest in share market investment 34% of the respondent has interested to invest but 66% of the responded are not interested to invest in share market.


Q.5. If you desire to invest in share market how much you invest?


No investment Below 50000 50000-100000 100000-500000 500000-1000000 1000000-1500000 1500000-2000000 2000000 & above

49 31 16 3 0 1 0 0

INFERENCE From the above table it is clear that in investment portfolio maximum are no investor which is 49%, below 50,000 are 31%, 16% want to invest 50,000-1,00,000, only 3% are ready to invest 1,00,000-5,00,000 and rest are not preferred.


Q. 6. What kind of trading mode will you prefer? TRADING MODE

No trading Online Offline

14 47 39

INFERENCE From the above table it is clear that existing client more prefer to online mode i.e., 47%, 39% prfer offline mode and rest 14% people dont trade.


Q.7.Do you have existing Demat account? DEMAT A/C

Yes No

31 69

INFERENCE From the above table it is clear that 31% people are having there demat a/c in some broking firms and 69% are not having demat a/c.

Q.8.You wants to open a new Demat a/c in other brokerage firm?


Yes No

11 89

INFERENCE From the above table it is clear that 11% people want to open new demat a/c and 89% are not want to open demat a/c.


Q.9. Are you aware of margin financing/loan against securities? AWARE

Yes No

18 82

INFERENCE From the above table it is clear that margin financing is known by only 18% people & rest of 82% doesnt know about it.


Q.10.Do you want invest in gold ETF or would you be interested for gold investment in Demat form?

Yes No

19 81

INFERENCE From the above table it is clear that 19% people refer to invest in gold ETF & 81% doesnt want to invest in gold ETF.





(30% )People most preferred gold investment method. Only (34%) people are ready to invest in stock market. (89%) people are not want to open a demat account.

Only (47%) people are preferred online trading. (18%) people are aware of margin financing and (19%) are aware of gold ETF facility.





During the course of survey there were certain difficulties that are worth to be considering as limitation of study so that they can be co-related with variation if any. The limitation attributes to the researcher are as follows: -

The attitude of the person changes from time to time. Hence the result of the project may be applicable only at present.

We cannot get exact information because some of the people are reluctant to share the information.

Respondent could not fill their questionnaire instantly owing to pressure at works fronts and time constrains.

The respondents are not mostly aware to the term share market.

Time period of survey was short thats why the sample size is small.





This project report contains a brief description about the overall functioning of stock market and kotak securities as,it is a part of our summer training . We have tried to highlight the features, facilities, functioning and working of kotak family and studied the overall competitive environment of kotak. This project will lay down emphasis to interact with kotak and as being a trainee, I have tried to co-relate the entire factor as brief as possible. This project can be improved further as this is only an effort not the final description.


1. C.R.Kothari research methodology, 2nd revised edition 2004, new age international publishers.


Data Sources: Secondary Data through Internet Primary Data through Questionnaire Contact Method Personal Interaction



Competitive Analysis & Overall Functioning of Broking Firm


Personal Data:

1. Name

2. Occupation

Pvt service


Govt service



3. Address

4. Gender



5. Age

21 30 61

31 35

36 40

41 & above

6. Email

7. Mobile

Analysis Data:

1. What type of investment plan do you presently have or like to have?

Share market real state others

mutual fund

gold investment

bank deposit

2. What will be your preferable mode of investment?

GOLD 1.Physical gold 2.commodity 3.coin 4.any others

REAL STATE 1.plot 2.flats 3.commercial property 4.row houses/individual bunglow

SHARE MARKET 1.offline

MUTUAL FUND 1.physical 2.electronic/Demat 3.SIP

Q.3.Which type of investment will you prefer?

Long-term short-term 62

Q.4. Will you like to invest in share market?

Interested Not Interested

Q.5. If you desire to invest in share market how much you invest?

Below 50,000 15lac-20lac 20lac and above





Q. 6. What kind of trading mode will you prefer?

No trading Online Offline

Q.7.Do you have existing Demat account?

Yes No

Q.8.You wants to open a new Demat a/c in other brokerage firm?

Yes No

Q.9. Are you aware of margin financing/loan against securities?



Q.10.Do you want invest in gold ETF or would you be interested for gold investment in Demat form?