This action might not be possible to undo. Are you sure you want to continue?
Submitted in Partial fulfillment of requirement of award of MBA degree of GGSIPU, New Delhi
Submitted By NamePraveen Dubey Enrolment No- 11515603911 Semester/Batch- MBA (2011-13)
Northern India Engineering College (Affiliated to GGSIPU) FC-26, Shastri Park, Delhi-110053
“Expression of feelings by word makes them less significant when it comes to make statement of gratitude”. With regard to my Project with Share Khan, New Delhi, I would like to thank each and everyone who offered help, guidelines and support whenever required. I am extremely grateful to my college guide, Mr. D.K. Gupta (H.O.D) a n d a l l th e f a c u l t y me mb e r o f my c o l l e g e f o r t h e i r v a l u a b l e s u g g e s t io n s a n d guidance. I express my deep sense of gratitude to my company mentors, Mr. Jaipal Singh (Assistant Manger) wi t h o u t w h o s e s up p o r t a n d c o o p e r a t i o n t h i s p r o j e c t c o u ld n o t have been completed successfully. L a s t , b u t n o t t he l e a s t my h e a r t f e l t l o v e f o r my p a r e n t s a n d m y f r i e n d s , wh os e constant support and blessings kept me enthusiastic throughout this project.
S.no. Topic 1. 2. 3. Introduction of Sharekhan Ltd Introduction to stock market Company profile a) Work structure 4. 5. Product & services Research methodology a) Findings b) Suggestions c) Limitations d) Conclusion 6. Analysis Data collection method 7. 8. 9. Findings & conclusion References/ Bibliography Annexure
This was followed by the formation of associations /exchanges in Ahmedabad (1894). IN addition. or securities market related instruments like shares. the new issues (primary market) and the stock (secondary market). online trading. An important early event in the development of the stock market in India was the formation of the Native Share and Stock Brokers‟ Association at Bombay in 1875. Instead of keeping the savings idle you may like to use savings in order to get return on it in the future. insurance/provident/pension fund etc. and Madras (1937). and two categories of products. debentures etc. namely the issuer of securities investors in securities and the intermediaries. The primary market provides the channel for sale of new securities while the secondary market deals in securities previously issued. 6 . Calcutta (1908). a large number of ephemeral exchanges emerged mainly in buoyant periods to recede into oblivion during depressing times subsequently. gold/ jewellery. the precursor of the present day Bombay Stock Exchange. the securities including derivatives. whichhas over eight decades of experience in the stock broking business. This is called Investment. small saving instruments with post offices. It is the retail broking arm of the Mumbaibased SSKI Group. depository services. NSE. Securities market has essentially three categories of participants. and/or Financial assets such as fixed deposits with banks. Sharekhan is one of the leading retail brokerage of SSKI Group which was running successfully since 1922 in the country.CHAPTER:. investment advice etc. One may invest in: Physical assets like real estate. namely the services of the intermediaries. commodities etc. Sharekhan offers its customers a wide range of equity related services including trade execution on BSE. bonds.1 Introduction The money we earn is partly spent and the rest saved for meeting future expenses. Derivatives. The securities market has two interdependent and inseparable segments.
This list was a further broadened in 1839 when the Calcutta newspaper printed the quotations of banks like union b a n k a n d A g r a b a n k . the chartered mercantile bank. the number of brokers was about 60 and during the exciting period of the American Civil war. t h e o r i e n t a l b a n k and the old bank of Bombay and shares of cotton p r e s s e s . business passed in the shares of banks like the commercial bank. The end of American Civil war brought disillusionment and many Failures and the brokers decreased in number and prosperity. the number of brokers increased considerably.CHAPTER:. their number increased to about 200 to 2 50. It was in those trouble 7 . 5%. I n C a l c u t t a . and 6% loans of East India Company as well as the shares of the bank of Bengal in 1836. In Bombay. B u t during the share mania of 186065. Englishman reported the quotations of 4%. the Docking Company and the storm tug company. B e t w e e n 1 8 4 0 a n d 1 8 5 0 . I t a l s o quoted the prices of business ventures like the Bengal bonded warehouse. By 1860.2 INTRODUCTION TO STOCK MARKET The emergence of stock market can be traced back to 1830. o n l y h a l f a d o z e n b r o k e r s e x i s t e d f o r t h e l i m i t e d b u s i n e s s . the chartered bank.
A t p r e s e n t t h e r e a r e 23 Recognized stock exchanges with about 6000 stock Brokers. 3 6 2 i n 1916and 478 in 1920 and the entrance fee was raised to Rs. 6 as companies limited by guarantee and 3 are non-profit voluntary organization. These exchange do not work of its own. the Articles of Association of the Exchange and the Stock Exchange was formally established in Bombay on 3rd day of December. Accordingly. status and interest of native share and stock brokers and providing a hall or building for the use of the Members of such association. Rs. These are: i. 1887. Others have to seek recognition on annual basis. Stock ii. Stockbrokers: Stock brokers are the members of stock exchanges. it was resolved to e x e c u t e a f o r m a l d e a l o f association and to constitute the first managing committee a n d t o appoint the first trustees. As a meeting held in the broker’ Hall on the 5th day of February. On or about 9th day of July. The entrance fee for new member was Re. a few native brokers doing brokerage business in shares and stocks resolved upon forming in Bombay an association for protecting the character. 1.sometimes between 1868 and 1875 that brokers organized an informal association and finally as recited in the Indenture constituting the “Articles of Association of the Exchange”. these are run by some persons and with the help of some persons and institution. Market makersi v .2500 i n 1 9 1 6 a n d R s . rather. Sub-broker iii. 1887.Portfolio consultants etc.1 and there were 318 members on the list. Rs. 4 8 .5 in 1877. These are the persons who buy.14 stock exchanges are organized as public limited companies. Of the total of 23. when t h e e x c h a n g e w a s c o n s t i t u t e d . Organization structure of stock exchange varies. A certificate of registration from SEBI is mandatory 8 . The Associations now known as “The Stock Exchange”.1000 in 1896. All these are down as functionaries on stock exchange. iv.1875. sell or deal in securities. only 9 stock exchanges have been permanent recognition. 0 0 0 i n 1 9 2 0 . T h e n u m b e r s o f m e m b e r s i n c r e a s e d t o 3 3 3 i n 1 8 9 6 .
miss communication etc start growing in stock broker offices. He assists the investors in buying. Whereas the portfolio consultants are the persons. 4. Information technology helps stock brokers in solving these problems Online Stock Trading. He is exempt from the margin requirements. The broker and sub-broker should enter into an agreement in which obligations of both should be specified. Sub-broker must be registered SEBI for a dealing in securities. 2. busy phone line. arbitrageur etc. A market maker has to abide by bye-law. Portfolio consultants: A combination of securities such as stock. some issues like location constrains. I n 1 9 1 6 a n d R s . Sub-Broker A sub-broker acts as agent of stock broker. As per the listing requirement. floor broker. For getting registered with SEBI. A t p r e s e n t t h e r e a r e 23 recognized stock exchanges with about 6000 stock brokers. It is obligatory for the person to abide by the rules. They make both bid and offer at the same time. There are two different types of trading environments available for online equity trading. selling or dealing in securities through stockbroker. he must fulfill certain rules and regulation. Market Makers: Market maker is a designate specialist in the specified securities. Stock brokers are commission broker. SEBI can impose certain conditions while granting the certificate of registrations. direct or undertake the management or administration of securities of funds on behalf of their clients. Traditionally stock trading is done through stock brokers. rules regulation of the concerned stock exchange. personally or through telephones. bonds and money market instruments is collectively called as portfolio.to act as a broker. firms or companies who advise. 5 Crore and having a commercial operation for less than 2 years should appoint a market maker at the time of issue of securities.3 crore but not more than Rs. As number of people trading in stock market increase enormously in last few years. a company has the paid-up capital is Rs. 9 . He is not a member of a stock exchange. 3. regulations and the buy-law. 4 8 0 0 0 i n 1 9 2 0 .
Web based trading application This type of trading environment doesn’t require any additional software installation. It’s just a matter of finding them.in Advantages of Stock Trading: Better returns Actively trading stocks can produce better overall returns than simply buying and holding.nowonline. and Cisco etc. There is always a stock whose price is moving. Installable software based Stock Trading Terminals This trading environment requires software to be installed on investor’s computer. Huge choice There are thousands of stocks listed on markets around the world. IBM. 10 . Familiarity The most traded stock are in the largest companies that most of us have heard of and understand.Microsoft.1. They are like other internet websites which investor can access from around the world through normal internet connection. This software is provided by stock broker. A) Trade Tiger B) Fast Trade C) New Fast Trade 2. A) www.
Again there are no such rules in Forex trading or futures trading where going short are as easy as going long.Disadvantages of Stock Trading: Leverage With a margined account the maximum amount of leverage available for stock trading is usually 4:1. 11 . Uptick Rule on Short Selling A trader must wait until a stock price tocks up before they can short sell it. 00. Meaning a Rs. 25. Need to Borrow Stock to Short Stocks are physical commodities and if a trader wishes to go short then the broker must have arrangements in place to borrow that stock from a shareholder until the trader close their position. This is pretty low compared to Forex trading or futures trading. Costs Online trading costs for stock trading are low they still add considerably to the costs of day trading.000 to be held in a trading account if the trader completes more than 4 trades in a d 5 day period. 25.000 of stock. 1.000 could be trade up to Rs. This limits the opportunities available for short selling. No such rule applies to Forex trading or future trading. Pattern Day Trader Rules It requires at least Rs.
3 Company Profile Share khan is one of the leading retail brokerage of Citi Venture which is running successfully since 1922 in the country. Mission:“To educate and empower the individual investor to make better investment decisions through QUALITY ADVICE INNOVATIVE PRODUCTS and SUPERIOR SERVICE. The objective has been to let customers make informed decisions and to simplify the process of investing in stocks. investment advice etc. NSE. online trading. Foreign Institutional Investors generate about 65% of the organization’s revenue.CHAPTER:. The content-rich and research oriented portal has stood out among its contemporaries because of its steadfast dedication to offering customers best-of-breed technology and superior market information. depository services. It has 60 institutional clients spread over India. which has over eight decades of experience in the stock broking business. SSKI is one of the leading players in institutional broking and corporate finance activities. the SSKI group ventured into institutional broking and corporate finance 18 years ago. Derivatives. SSKI holds a sizeable portion of the market in each of these segments. SSKI‟s institutional broking arm accounts for 7% of the market for Foreign Institutional portfolio investment and 5% of all Domestic Institutional portfolio investment in the country. with a daily turnover of over US$ 2million. 13 . Far East.Earlier with a legacy of more than 80 years in the stock markets. Earlier it was the retail broking arm of the Mumbai-basedSSKI Group. Share khan offers its customers a wide range of equity related services including trade execution on BSE. UK and US.
The Corporate Finance section has a list of very prestigious clients and has many „firsts‟ to its credit. Hutchison. sector tapped etc. This was for the first time that a netbased trading station of this caliber was offered to the traders. The group has placed over US$ 5 billion in private equity deals. Cambridge Technologies. Oracle. Gujarat Pipavav. 2002 Share khan launched Speed Trade and Trade Tiger. The firm’s online trading and investment site www. investor friendly language and high quality research. are net-based executable application that emulates the broker terminals along with host of other information relevant to the Day Traders. Share khan alone accounts for 27 per cent of the volumes traded online. 14 . Vignette. The site gives access to superior content and transaction facility to retail customers across the country. 2000.com .sharekhan.was launched on Feb 8. While online trading currently accounts for just over 5 per cent of the daily trading in stocks in India. In the last six months Speed Trade has become a de facto standard for the Day Trading community over the net.WORK STRUCUTRE OF SHAREKHAN Share khan has always believed in investing in technology to build its business. in terms of the size of deal. to build its trading engine and content. Verisign Financial Technologies IndiaLtd. Intel & Carlyle are the other investors. Sharekhan’s ground network includes over 700+ Share shops in 130+ cities in India. The number of trading members currently stands at over 7 Lacs. On April 17. Nexgenix. Ltd. Spider Software Pvt. the site has a registered base of over 3 Lacs customers. and Shopper’s Stop. Share khan shifted hands and Citi venture get holds on it. HSBC. Finally. Planet asia. Microsoft. The company has used some of the best-known names in the IT industry. Some of the clients include BPL Cellular Holding. Essar. The Citi Venture holds majority stake in the company. Known for its jargonfree. like Sun Microsystems.
Derivative Future Option IPO 4.Mutual Fund Currency NSEL (National Spot Exchange Limited) PMS (Portfolio Management System) Commodity MCX (Multi Commodity Exchange).4 Product & Services Equity/Cash Market Trading Trading is done according to the availability of the fund.CHAPTER:. and NCDX (National Commodity & Derivative Exchange) Benefits: Free depository A/c Instant cash transfer Multiple bank option Dial-N-Trade Automated portfolio 24x7 Voice tool access to your trading account Live chat facility 15 .
Online customer service Buy/sell even single share Anytime ordering 16 .
18 . Provision to enter price trigger and view the same online in market watch.sharekhan. Integration of On-line trading. 2) SPEED TRADE SPEED TRADE is an internet-based software application that enables you to buy and sell inan instant. NSE F&O & BSE. Features: Online trading account for investing in Equity and Derivatives via www. It is ideal for active traders and jobbers who transact frequently during day’s session to capitalize on intra-day price movement. Personalized market watch.com Live Terminal and Single terminal for NSE Cash. Instant cash transfer facility against purchase & sale of shares. Single screen interface for Cash and derivatives and more. Streaming Quotes (Cash & Derivatives).Sharekhan offers the following Services:1) Classic Account:This is a user friendly product which allows the client to trade through website www.sharekhan. Instant order and trade confirmation by E-mail. Competitive transaction charges.com and is suitable for the retail investors who is risk-averse and hence prefers to invest in stocks or who does not trade too frequently. Saving Bank and Demat Account.
Technical Studies. 20 .Features Instant order Execution and Confirmation. Market summary (Cost traded scrip. Real-time streaming quotes. Single screen trading terminal for NSE Cash. tic-by-tic charts. highest clue etc. Multiple Charting. Hot keys similar to broker’s terminal. Live market debts. NSE F&O & BSE. Back-up facility to place trades on Direct Phone lines. Alerts and reminders.
Birla. one can dial Sharekhan’s dedicated phone lines 1800-22-7500. paperless and time saving. 2000Prepaid Speed trade Account: . Beside this. buying-selling shares through a mobile phone are not yet permitted. Beside this. 21 .) 5) PREPAID ACCOUNT Customers pay Advance Brokerage on trading Account and enjoy uninterrupted trading in their Account. Franklin Templeton Investments.3) DIAL-N-TRADE Along with enabling access for trade online. great discount are also available (up to 50%) on brokerage. 4) SHARE MOBILE Share khan had introduced Share Mobile. 6000 6) IPO ON-LINE Customers can apply to all the forthcoming IPOs online. mobile based software where one can watch Stock Prices. Prepaid Classic Account: . Simply allocate fund to IPO Account. Intra Day Charts. the CLASSIC and SPEEDTRADE ACCOUNT also gives Dial-n-trade services. 7) Mutual Fund Online Investors can apply to Mutual Funds of Reliance. With this service. This is quite hassle-free. 3970-7500. PRINCIPAL and TATA with Share khan . HDFC. Sundaram. Research & Advice and Trading Calls live on the Mobile. ICICI Prudential. SBI.Rs. DSP Merrill Lynch.Rs. Apply for the IPO and Sit Back & Relax . Relationship Managers are always available on Office Phone and Mobile to resolve customer queries. (As per SEBI regulations.
A Sharekhan outlet offers the following services: Online BSE and NSE executions (through BOLT & NEAT terminals) Free access to investment advice from Sharekhan's Research team Sharekhan Value Line (a monthly publication with reviews of recommendations. stocks towatch out for etc) Daily research reports and market review (High Noon & Eagle Eye) Pre-market Report (Morning Cuppa) Daily trading calls based on Technical Analysis Cool trading products (Daring Derivatives and Market Strategy) Personalized Advice Live Market Information Depository Services: Demat & Remat Transactions Derivatives Trading (Futures and Options) Commodities Trading IPOs & Mutual Funds Distribution 23 .
the data was analysed & conclusions were drawn. Interviews of investors with Sharekhan Ltd.2.CHAPTER:. Investors‟ Behaviour towards Shares provided by Sharekhan Ltd. Data collection was also done with help of Personal Interviews. Data collection method To achieve the primary data of 'Investors‟ Behaviour towards Shares provided by Sharekhan Ltd.4. This questionnaire contains questions with 2 to 5 options.1.3. to find out. SAMPLE AREA : Rohini SAMPLE SIZE : 100 24 . I visited almost 100 investors. the researcher interacted with the Businessman.5 RESEARCH METHODOLOGY To fulfill these objectives i.. After completion of survey. A pilot survey was conducted before finalizing the questionnaire. Investor's survey was conducted through a questionnaire. Bank Employees. At the end of all the information was compiled in the form of a Project Report. Army Personnel who were investing in various financial products and services at that time.e.
15% respondents invests in Insurance. 8%respondents invest their money in Govt. 8% invest in IPO‟s and 6% invests in Mutual Funds respectively Question. 16% invests in Shares.3.1. of Respondents 6 8 3 12 15 26 16 8 6 .2. Securities Bonds Gold Insurance Property Shares IPO Mutual Funds Analysis: The above diagram shows that 6% respondents deposit their money in Bank. 12%respondents invest in Gold. Do you have D-mat A/c ? D-mat A/c No. of respondents Yes 95 No 5 Analysis: The above diagram shows that 95% respondents has d-mat accounts in differentcompanies and 5% respondents has not d-mat accounts with any company but they are willing toopen the d-mat accounts. 3% respondents invests in Bonds. 26% invest in Property.Where you have invest? Investment options Bank Govt. Do you invest money ? Invest Number of respondants 100 0 Yes No Question. 25 No. Securities.Data Analysis Question.
What is the source of your investment information ? Source No.4. of respondents Consultants 22 Friends 38 Family 12 Any other 28 27 .Question.
How much you interesting to invest in shares? Capacity No.7. 5000-50000 33 Rs.Analysis: This diagram depicts that 22% respondents said that they got information from consultants. of respondents Rs. 38%respondents said that they got information from their Friends. Question. 50000-1 lac 37 Rs. 12% respondents got informationfrom their family members and 28% respondents got information from other sources. 1 lac-2 lac Above 2 lacs 18 12 28 .
Q.2 lacs and 12% respondents has the investing capacity above Rs. 19% respondents has investing capacity above 1 year but maximum for 2 years and 11% respondents has investing capacity more than 2years.2 yrs Above 2 yrs 19 11 Analysis: This diagram shows that 48% respondents invest maximum for 6 months.50000 but less than Rs. 18% respondents said that they caninvest above Rs. 22%respondents investment period has 6months to 1 year.8 What is the duration of your investment ? Duration 0-6 months No. 29 .1 lac to Rs. 37% respondents said that theycan investing capacity above Rs. of respondents Off-line On-line 12 88 Analysis: This diagram shows that 88% respondents deals in On-line trading and 12% respondentsdeals in off-line trading with Investment companies.1yr 22 1yr.2lacs. of respondents 48 6 months.1lac.50000. Q.9 In which you deal with your broker? Trading No.Analysis: 33% respondents said that they can invest upto Rs.
11.10 What type of investor you are? Type Regular No. of respondents 39 18 Near to operate 15 Any other 28 Analysis: 30 . 19%respondents said that there is risk factor is medium and 14% respondents said that there is low risk factor in the market. Why you have your d-mat account with anyone? Reasons Better service Easy available No. Q.Q. of respondents High 67 Moderate 19 Low 14 Analysis: This diagram shows that 67% respondents said that there is high risk in market.18% respondents said that they has invest Once in Time and 27% respondents said that they has invest sometime in share market.12. How much risk involved in share market? Risk No. Q. of respondents 55 Once in time 18 Sometimes 27 Analysis: The above diagram shows that 55% respondents has regular investor in share market.
31 . 18% respondents said for easy.The above diagram shows that 39% respondents said that they have their d-mat account with their present company because they provide better services.
Investors like to invest in the equity schemes and short term plans because they have risk taking ability and want quick returns on their investment. 32 . For an average investor the concept of Shares is like an irritating riddle. Investors want proper. Many of people don‟t know about various Shares provided by Sharekhan as a distributionhouse or Shares investing servicing. this is because sagas of US-64 and Morgan Stanley mayhave rendered a bad name to the Shares industry. comprehensive infrastructure.. fair and timely guidance for various investments because it is theirhard earned money and safety of the investment is the major issue.CHAPTER:FINDINGS After studying the data obtained from the respondents and other sources I am able to say following thing or various findings of my study are as follows……. Those who know are not having adequate knowledge of various schemes and plans. As far as Shares investor services and distribution of Shares is concerned. Sharekhan has a very good reputation in the minds of the investors as integral serviceprovider and offering a large variety of the services. All these factors have made it possibleto diversify its services to such a large extant and attracting a huge database of the investors. Sharekhan is known by majority of thepublic for its services. latest technology. the response of investors towards share market is not so satisfactory. and totalcustomer focus has positioned it to as emerging giant. Its highly competitive manpower.
ANTICIPATING COMPETITIVE RESPONSE :Before embarking on a specific plan of action.Although Sharekhan is a leader at this point of time but with the entrance of so many groups inIndia.e. SEGMENT THE CUSTOMERS:Understanding the different needs of different customersand serving each customer individually i. POSITION THE SERVICE IN THE MARKET PLACE :Customer should be aware of thecost and benefits of different services.SUGGESTIONS 1) FOR COMPANY Besides focusing on the weakness. keep the old ones happy because the cost of acquiringa new customer is much higher than the cost of retaining the old one (nearly 5 times). Complete like “value for money”. This is the strategy on which different cos. 33 . mass customization should be the approach of thecompany. or any exiting competitors may feel threatened by the newstrategy and take steps to reposition its own service so as to complete more effectively. CREATING A COMPETITIVE POSITION :Company should know its strengths as well asits weakness and accordingly try to take a position at which it can sustain. management should consider the possibility that one or more of the competitors mightpursue the same market position.Customer services during before and after the transaction should be of world class andcompanies should embrace the latest technology to serve the customers because it reduces thecost. companies should try to remove these shortcomings. it should serve like a competitive advantage for the company. its supremacy can be challenged by any new entrant at any times so many challenge beforethe companies is to continuously innovate. “convenience” etc.
USE COMPLAINTS TO BUILD BUSINESS :- 34 . Sometimes. UNDERSTANDING THE DEMAND PATTERN :According to the changes in demand of the product. Rewarding frequent users of the services. you might want to reflect upon your current businessstrategy. you‟ll add an additional 10 percent to your growth rate. Particularly because of the high cost of landing new customers versus the highprofitability of a loyal customer base. however weaknesses are perceptual ratherthan and real and hence can be changed through advertising. following strategies may be followed : Product variations Modifying the timings and location of the delivery Pricing strategies Communications efforts CUSTOMER LOYALTY :If you currently retain 70 percent of your customers and you start a program to improve that to 80 percent.CHANGING PERCEPTION THOUGH ADVERTISING :Improving product features andcorrecting weakness may be expensive. not just frequency. Rewarding value of use.Creating and maintaining valued relationship with customers : Realizing the full profit potential of a customer relationship.
be sure this is what your customers prefer.When customers are not happy with your business they usually won‟t complain to you instead. This builds no personal . Otherwise I‟d assign a specific support person to every customer.support calls intoqueue for the next available person. the customer will have many more interactions after the sale with technical. Manycompanies give a lot of attention to retaining sales people but little to support people. expectations and risk profile is of prime 35 . they’ll probably complain to just everyone else they know and take their business to your competition next time. 2) FOR INVESTORS Moses gave to his followers 10 commandments that were to be followed till eternity. or customer support people than they did with the sales people. The increasing trend today is to send customer-service and technique. That‟s why an increasing number of businesses are making follow-up calls or mailing satisfaction questionnaires after the sale is made.loyalty and probably lass loyalty for the firm. In many business situations. They really should be handled with the same attention and focus that salescalls get because in a way they are sales calls for repeat business. These come in handy for there isevery possibility of losing what one has if due care is not taken. They find that if they promptly follow up and resolve a customer’s complaint.Building customers loyalty will be a lot easier if you have a loyal workforce. Before you go this route. ASSESS YOURSELF: Self assessment of one‟s needs. I have beenfortunate to have the same great people in customers‟ services for years and the compliments from customers make it clear that they really appreciate specific people in our service function. One last thing don’t tell your customers your800 line phone number is for orders only. technical support. and customer-services people. these interactions are the ones that arereally going to matter.not at all agiven these days. So if you‟re serious about retaining customers or getting referrals. services. Theworld of investments too has several ground rules meant for investors who are novices in theirown right and wish to enter the myriad world of investments. It is especially important for you to retain those employees who interact withcustomers such as sales people. the customer might be even more likely to do business then the average customer who didn‟t have a complaint.
One would do well to remember that nobody canperfectly time the market so staying invested is the best option unless there are compellingreasons to exit. it is always advisable to diversify the risks associated. Diversification even in any particular asset class (such as equity.Don't rush in picking funds. one will make more mistakes in putting money in right places thanotherwise. It is thus of key importance that there is thought given to the process of investment and to the time horizon of the intended investment. DON’T SPECULATE: A common investor is limited in the degree of risk that he iswilling to take. Identifying the proposed investment philosophy of the fund will give an insight into thekind of risks that it shall be taking in future. So putting one‟s money in different asset classes is generally the best option as it averages the risks in each category. No matter what the risk profile of a person is. One can lose substantially if one picks thewrong kind of Shares. Both have their share of critics but both philosophies work for investors of differentkinds. think first: one first has to decide what he wants the money for and itis this investment goal that should be the guiding light for all investments done. it is good to place money in the hands of several fundmanagers. INVEST. This might reduce the maximum return possible. Not all fund managers have the same acumen of fund management and with identificationof the best man being a tough task. In order to avoid any confusion it is better to go through the literature suchas offer document and fact sheets that Shares companies provide on their funds. Shares invest with a certain ideology such as the "Value Principle" or "GrowthPhilosophy". It is thus important to know the risks associated with the fund and align it with the quantum of risk one iswilling to take. Excessiveexposure to any specific sector should be avoided. Irrational expectations will only bring pain. One should abstain fromspeculating which in other words would mean getting out of one fund and investing in anotherwith the intention of making quick money. debt) isgood. Thus.importance failing which. 36 . One should identify the degree of risk bearing capacity one has and also clearly statethe expectations from the investments. but will also reduce the risks. even investors of equity should be judicious and invest some portion of theinvestment in debt. as it will only add to the risk of the entireportfolio.Try to understand where the money is going: It is important to identify the nature of investmentand to know if one is compatible with the investment. One should take a look at the portfolio of the funds for the purpose. Don‟t put all the eggs in one basket: This old age adage is of utmost importance.
Askingthe intermediaries is one of the ways to take care of the problem. The SIPs (Systematic Investment Plans) offered by all funds helpsin being systematic. as the amount can be directly/electronically transferred from the account of the investor. Funds that charge more will reduce theyield to the investor. since it is extremely difficult to knowwhen to enter or exit the market. Finding the right funds is important and one should also use these funds fortax efficiency. FIND THE RIGHT FUNDS: Finding funds that do not charge many fees is of importance. This is important because an informedinvestor is in a better decision to make right decisions. All that one needs to do is to give post-dated cheques to the fund andthereafter one will not be harried later. The basicphilosophy of Rupee cost averaging would suggest that if one invests regularly through the upsand downs of the market. then investors of equity too will benefit by switching to debtfunds 37 . As we said earlier. Investors of debt will be charged a tax on dividend distribution and so can easily avoid the payout options. Having identified the risks associated withthe investment is important and so one should try to know all aspects associated with it. If the market isbeginning to enter a bearish phase.BE REGULAR: Investing should be a habit and not an exercise undertaken at one‟s wishes. asthe fee charged ultimately goes from the pocket of the investor. The Automatic investment Plans offered by some fundsgoes a step further. he would stand a better chance of generating more returns than themarket for the entire duration. it is important to beat the market by being systematic. Investors of equity should keep in mind that all dividends are currently tax-free inIndia and so their tax liabilities can be reduced if the dividend payout option is used. if one has to really benefit from them. DO YOUR HOMEWOK: It is important for all investors to research the avenues available tothem irrespective of the investor category they belong to. KEEP TRACK OF YOUR INVESTMENTS: Finding the right fund is important but evenmore important is to keep track of the way they are performing in the market. This is even more important fordebt funds as the returns from these funds are not much.
it might not be accurate to my desire or perception. Despite a great care was taken to choose sample size and sample unit. LIMITATIONS Though special care was taken to find out realistic picture of the present scenario for what theresearch was conducted still the study may suffer from some drawbacks. These drawbacks maybe due to following reasons : The questionnaire was exclusively close ended. Some respondents may have distorted the figures / facts or may have not disclosed the trueinformation because of the hesitation to tell the right data. 38 . No tool for the cross-checking of the facts / figures was employed. As most of the times respondents were busy and were unable to spend a considerable amount of time.as the losses can be minimized. so respondents might not be able to giveexact facts what they wanted because they were having only limited choice. One can always switch back to equity if the equity marketstarts to show some buoyancy. So they may not have been able to give the exact figures / facts.
It is unfortunate that the fund managers are not taking due care for minimizing the risk and are in a race to post higher and higher returns during the phase of bull-run. poor servicing to clients and failure of third party service providers. Under this setting. Hence for maintaining the confidence of the retail investors it is very important to control wild fluctuations in the NAVs. Investors who take up Shares route for investments believe that their risk is minimized at lower costs.CONCLUSION The basic objective of Shares is to provide a diversified portfolio so as to reduce the risk in investments at a lower cost. and they get an optimum portfolio of securities that match their risk appetite. 39 . it is not just growth that should be the focus area but also better management of all risks and hence. These are also going to be crucial in a rapidly growing competitive scenario. Poor performance. They should understand that the investors forget the high returns posted in any specific period very soon but they take hell lot of time to forget the burns they get during periods of losses. AMCs would do well to keep the investor and his interest in mind before taking any decision. are the three major risk factors identified in the survey. The Shares industry worldwide is based on this premise.
ICFAI Journalof Applied Finance 3(2).com Accounting Research (Spring).BIBLIOGRAPHY www. “Indian Money Market: Market Structure.sharekhan. (2005). The Manager's Guide to Financial Analysis. Resaerch Methodology (2nd Edition ed. C.Ltd M.). July 1997 40 . (2007). Kothari. Financial Management. New Delhi: New AgeInternational Pvt.Y.google.com www.Khan. Covered Parity and Term Structure”.
Where you have invest ? a) Bank b) Govt.2.Where you got information about Sharekhan? a) Newspaper b) Magazine c) Friends 41 . Do you have d-mat account? a) Yes b) No Q.5 In which company you have your d-mat account? a) Sharekhan b) Indiabulls c) Angel broking d) Kotak e) religare f) Any Other Q. Did you invest your money? a) Yes b) No Q.QUESTIONNAIRE Q.6.4 What is the source of your investment information? a) Consultants b) Friends c) Family d) Any Other Q.1. Securities c) Bonds d) Gold e) Insurance f) Property g) Shares h) IPO Q.3.
7 How much you interesting to invest in shares? a) Rs.5000-50000 b) Rs.50001-1lac c) Rs.d) Local Channel Q.1lac-2 lac d) Above 2 lac 42 .
15 What type of problem you faced? a) b) c) d) Brokerage Up dation better service any other 43 .8 What is the duration of your investment ? a) b) c) d) 0-6months 6 months-1 year 1yr-2yr Above 2 yr Q.10 What type of investor you are? a) Regular b) Moderate c) Low Q.14 Did you face any problem dealing with broker? a) Yes b) No Q.Q.13 Are you updated with information relating to your investing pattern? a) Yes b) No Q.12 Why you have your d-mat account with anyone? a) b) c) d) Better service Easy available Near to operate any other Q.9 In which you deal with your broker? a) Online b) Off-line Q.
Disclosure and Investor Protection DMA .Net Asset Value NEAT . IPO .Clearing Members CRISIL . NSE . DCA .Secondary Market Advisory Committee S&P .Foreign Institutional Investors GDRs . CDSL .Multi Commodity Exchange of India Ltd.National stock exchange of India Ltd.National Stock Exchange Automated Trading NCDEX .Futures and Options FIIs .Direct Market Access DP .Securities Lending & Borrowing SMAC . OTM .Securities and Exchange Board of India SLB .Industrial Development Bank of India IEPF . ICICI .Central Depository Services (India) Ltd.Bombay Stock Exchange of India Ltd.Out-of the-Money RBI . NSDL .Standard and Poor 44 .India Index Services & Products Ltd.National Securities Depository Ltd.Securities Appellate Tribunal SEBI .Approved Intermediary AMC .List of abbreviations ADRs .Global Depository Receipts ICSE .Initial Public Offer ITM . IDBI .In-the-Money MCX .Bombay Online Trading BSE .National Securities Clearing Corporation of India Ltd.At-the-Money BOLT . CM .American Depository Receipts AI .Reserve Bank of India SAT .Department of Economic Affairs DIP .National Commodity and Derivatives Exchange India NSCSL .Asset Management Company ATM .Inter-connected Stock Exchange of India Ltd.Credit Rating Information Services of India Ltd.Investor Education & Protection fund IISL .Depository Participant F&O . NAV .Industrial Credit & Investment Corporation of India Ltd.Department of Company affairs DEA .
market the order flow that leads to reduced costs.6 Indian Stock Market-An Introduction Mark Twain once divided the world into two kinds of people: those who have seen the famous Indian monument. on the other hand. The BSE and NSE Most of the trading in the Indian stock market takes place on its two stock exchanges: the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The presence of arbitrageurs keeps the prices on the two stock exchanges within a very tight range. the rest of the crowd consists of highly illiquid shares. settlement process. with about a 98% share in this market. only about 500 firms constitute more than 90% of its market capitalization. The BSE has been in existence since 1875.CHAPTER:. and almost a complete monopoly in derivatives trading. was founded in 1992 and started trading in 1994. Almost all the significant firms of India are listed on both the exchanges. Both exchanges compete for the order flow that leads to reduced costs. market efficiency and innovation. you will find the same things you would expect from any promising market. by displaying all buy and sell orders in the trading system. the BSE had about 4. As a result.200. the Taj Mahal.. The same could be said about investors. Out of all the listed firms on the BSE. also as of 2009. etc. but upon closer inspection. both exchanges follow the same trading mechanism. there is no guarantee that orders will be executed. with about 70% of the market share. However.700 listed firms. The advantage of an order driven market is that it brings more transparency. trading hours. Trading Mechanism Trading at both the exchanges takes place through an open electronic limit order book. At the last count. buyers and sellers remain anonymous. NSE enjoys a dominant share in spot trading. India may look like a small dot to someone in the U. in the absence of market makers. There are no market makers or specialists and the entire process is order-driven. There are two kinds of investors: those who know about the investment opportunities in India and those who don't. The NSE. and those who haven't. whereas the rival NSE had about 1. as of 2009.S. in which order matching is done by the trading computer. However. Here we'll provide an overview of the Indian stock market and how interested investors can gain exposure. which means that market orders placed by investors are automatically matched with the best limit orders. 45 .
in case of a breach. This means that any trade taking place on Monday. it includes 50 shares listed on the NSE. in which they use trading terminals provided by brokers for placing orders directly into the stock market trading system. Sensex is the oldest market index for equities. which was formed in 1992 as an independent authority. It enjoys vast powers of imposing penalties on market participants.All orders in the trading system need to be placed through brokers. All trading on stock exchanges takes place between 9:55 am and 3:30 pm. Another index is the S&P CNX Nifty. Institutional investors can also take advantage of the direct market access (DMA) option. onward. Market Indexes The two prominent Indian market indexes are Sensex and Nifty. which assumes all settlement risk. Delivery of shares must be made in dematerialized form. It was created in 1996 and provides time series data from July 1990. regulation and supervision of the stock market rests with the Securities & Exchange Board of India (SEBI). 46 . Monday through Friday. it includes shares of 30 firms listed on the BSE. Settlement Cycle and Trading Hours Equity spot markets follow a T+2 rolling settlement. It was created in 1986 and provides time series data from April 1979. onward. SEBI has consistently tried to lay down market rules in line with the best market practices. Indian Standard Time (+ 5. which represent about 45% of the index's free-float market capitalization. Since then. and each exchange has its own clearing house. gets settled by Wednesday. many of which provide online trading facility to retail customers. which represent about 62% of its free-float market capitalization. Market Regulation The overall responsibility of development. by serving as a central counterparty.5 hours GMT).
sharekhan.com.email or live chat on www. it has beenproviding institutuonal-level research and broking services to individual invcestors. You will get access to our powerful online trading tools that will help youtake complete control over your investment in shares.sharekhan.Why a customer should choose Sharekhan Ltd. 4) Knowledge In a business where the right information at the right time can translate into direct profits.These services are accessible through our centres across the country (Over 588 locations in 148cities) over the internet (through the website www. 7) Investment Advice Sharekhan has dedicated research teams of more than 30 people for fundamental and technicalresearches. demat and other queries. 3) Accessibility Sharekhan provides ADVICE. 6) Customer Service Our customer service team will assist you for any help that you need relating to transactions. EDUCATION. Our customer service can be contracted via a toll-free number. you get access to a wide range of information on our content-rich portal.billing. 5) Convenience You can call our Dial-N-Trade number to get investment advice and execute your transactions. 1) Experience SSKI has more than eight decades of trust and credibility in the Indian stock market.Ever since it launched Sharekhan as its retail broking division in February 2000. Our analysts constantly track the pulse of 47 .We have a dedicated call-centre to provide this service via a Toll Free Number 1800-22-7500 & 1800-22-7050 from anywhere in India. 2) Technology With our online trading account you can buy and sell shares in an instant from any PC with aninternet connection. SSKI won the 'India's best broking house for 2004' award. sharekhan. TOOLS AND EXECUTION servies for investors. You will also get auseful set of knowledge-based tools that will empower you to take informed decisions. In the AsiaMoney broker's poll held recently.com) as well as over the VoiceTool.
online chat. printed reports and SMS on yourmobile phone. 48 .the market and provide timely investmentadvice to you in the form of daily research emails.
institutional and domestic broking. strong advisory role through Fundamental & technical research and new initiatives arebeing made in Portfolio Management Services & Commodities trading. Sharekhanprovides other support services that make retail investors more confident and assured with theirtrading. 3) Marketing - 49 . STRENGTHS 1) Services As a product Sharekhan is a extremely innovative product with very less cost.SWOT Analysis A SWOT analysis focuses on the internal and external environments. In near future expect tomake 200000+ retail customers being serviced through centralized call centre / web solution. customized researchreports with almost 80% efficiency etc give Sharekhan an edge over its competitors.60branches/semi branches servicing affluent/aggressive traders through highly skilled financialadvisors. advice and transaction services. examining strengths andweaknesses in the internal environment and opportunities and threats in the external environment. do all theinformation seeking and basically own the investing process. SMS alerts (allowing traders and investors to make the most of the availableopportunities).Services like online trading facility. equity driving preference. 250 independent investment managers/franchisees servicing 50000 highly valuedclients. intangible features like imagery. 2) Distribution Network Sharekhan with almost 250 branches spread across 123 cities beefedup by comprehensive online research. Softer. Through efficient trading processes Investors can place their orders directly on the Internet.
Share khan‟s expertise lies in stocks and that's what it talks about with authority. a broking house likeSharekhan. Also ones cash balances with the broker must be safe and secure. Also banks like HDFCBank and ICICI Bank have the advantage of linking the trading accounts of their customers tosaving accounts. Weaknesses 1) Customer Satisfaction . 50 .Sharekhan is a product of SSKI. Also all the products cover all the loop holes of all the products offeredby the other competitors like low cost. Though thisconfidence in the broker comes with time and experience.Most of the banks due to good branding have the faith of thecustomers of their banking database. 2) Branding . However.As far as customer satisfaction goes Sharekhan has to tighten theirsocks. user friendly online trading services etc. is in no position to provide relationship managersfor individual customers. it is something that is spoken with years of focused learning and experience in the stock markets. So when he says that investing in stocks should not be confused with trading in stocks or a portfolio-based strategy is better than betting on a single horse. Sharekhan does not claim expertise in too many things. This makes trading easier. a veteran equities solutions company with overdecades of experience in the Indian stock markets. who can understand the tradingneeds of individual customers. Similarly sales proceeds arecredited directly to saving account. 3) Competition from banks . So they enjoy the liberty of huge database and customersfind it more reliable to trade their rather than with a unknown broker. and at the same time a trader withdraws exactly asmuch money from his account as is needed to complete the trade. good and transparent practices alsoplay a major role in imbibing confidence in traders. The most basic expectation for a trader orinvestor when one begins trading is that one must get timely delivery of shares and proceeds fromsale of shares. which caters to the mass segment. and advise accordingly.Though the company has a efficient products but large part of investmentinterested population does not know the company. Many broking house catering to heavy investors or small segment of the market can afford to and does provide relationship managers for their customers. 4) Products Company‟s product line is quite flexible in the sense that there is a product for every kind of investors.
as it offers an extremely hassle-free investing platform. etc. With that the understanding of the stock market is also 51 . Some have the problem of lack of information or some were scared of volatility of the stock markets. Sharekhan has been amega player and is known for being a mover of stocks. Also withSEBI lying down some strict guidelines small brokers are finding it harder to retain the customerswith no research department and small capital. As to how much it will roar and howswift it can swoop on the market. 1) Ever-increasing market . This has resulted in improved liquidity and heavy volumes ontransactions.With so many competitors offering their products in themarket but no one is able to completely satisfy the customers.After the NSE brought the screen based trading system stock markets are now more secured which has attracted lot of retail investors and the demand is increasing day by day.In country like India technology is always improving which givesthe company a chance to keep on improving their product with time whereas for the small playerslike local brokers it will be difficult to keep the same pace as the changing technology.Sharekhan hopes to fully utilize and capitalize on this platform. The traditional business model is highlydependent on a large network of sub-brokers. Sharekhan is one of the early entrants here. the future alone can answer such queries.Opportunities The external environment analysis may reveal certain new opportunities for profit and growth. 2) Improving Technology . And. The Internet serves tobreak all barriers to information. and many established players may not have systems(technology. It has been dynamic enough to move with thetimes and capture the opportunities that the market throws up from time to time. It is also known for putting big dealsthrough and enjoys good networking with the FIIs. 3) Unfulfilled needs of the customers . customer service. This original idea by Sharekhanitself was born out of the consumer's need for a more transparent. Sharekhan has the opportunityto tap this unsatisfied set of customers and to make hold in the market. 4) Education Level The education level in the country is improving year after year as far astechnology goes. easy to understand andconvenient option of investing in stocks.) capable of directly servicing so many retail customers.
A lot of new competitors are trying to enter the market in this bullish runto taste the flavor of this cherry. calculateclient risk at that point in time.Online trading is totally based on the technology which is quitecomplex. Then it needs to get into the 'middle tier' of risk management systems that assess data from banks and depository participants (DP). are posing a lot of threats to thecompany. This is creating a lot of competition for large players likeSharekhan and it is creating little confusion in the minds of the customers about the servicesprovided by the broker.increasing and a lot of retail investors are steeping in the markets which is being shown by increasing volumes. 5-paisa etc. Typically. and give the 'Go/No go' advice to the trade.Though a lot of cyber laws are being made but not yet executed. 2) Technology based business . hdfc.transactions and indices. Threats 1) New Competitors . the technology solution has to start from the Internet front-end (or the screenthat you see when you begin trading). Also many banking firms are entering into the market with hugeinvestment. Competitors like icici. So technology is akind of threat because unless until it is working properly it is good but internet is not that safe. kotak. 52 .
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue listening from where you left off, or restart the preview.