RESEARCH OBJECTIVES

The Survey Was Conducted With Following Objectives:

To find out the point of view of Investors regarding the services provided by DP. To find the awareness of Demat account among employed investors. To find Potential customers of Microsec in kolkata City. To know about problems faced in trading by traders in kolkata city. To know the challenges faced in trading by traders in kolkata city. To assess the perception of traders about Indialbulls microsec captal limited in kolkata City.

To determine the satisfaction levels of consumers with Indialbulls microsec captal limited in kolkata City..

To assess the satisfaction level of traders regarding services of microsec . To know the market share of microsec. To know the competitors of microsec in kolkata city.

RESEARCH METHODOLOGY

Sample size Sources of data Sampling used in data collection

100 Primary data & Secondary

Random sampling

Primary Data: The required data was collected by way of distribution of questionnaires

to

investors at random and by way of telephonic interviews and online distribution of questionnaire.

Tools/Technique of data collection

Personal Interview Close observation Survey conduction

Secondary data: - already existing data is called secondary data. I collected

by following method

them

Internet Books

Area selected for data collection

kolkata

DATA INTRPRETATION AND ANALYSIS

Questions regarding problems in trading:-

Q.1) Do you invest in share market? a) Yes

b) No

70 60 50 40 30 20 10 0 Yes
No. of respondents

NO
% of respondents

Interpretation: -35% people invest in share market in kolkata city

Q.2) Please tick the following:a.) Type of trading you generally do intraday / delivery /both

50 40 30 20 10 0 intraday
No. of respondents

delivery

both

percentage of respondent

Interpretation: - 26% people prefer intraday trading, 42. % prefer delivery and 32% do both type of trading.
5

b.)Time period of investment less 1 month/ 1-6 month /more than 6 month.

50 40 30 20 10 0 Less than 1 1 to 6 month More than 6 month months

No. of respondents % of respondents

Interpretation: - Maximum people prefer to invest for 1 to 6 months and amount of investment for majority of people was found to be between Rs. 20,000 to Rs. 1 lac.

Q.3) In your opinion what is biggest problem in trading:-

a.) Lack of knowledge or experience b.) Unsatisfactory services of broking firms c.) Market uncertainty
7

d.) Charges by broking firm

50 40 30 20 10 0
a.) Lack of knowledge or experience b.) Unsatisfactory services of broking firms c.)Market uncertainty d.)Charges by broking firm

No. of respondents

% of respondents

Interpretation: - Most of the people facing biggest problem in trading, Lack of knowledge and believe that unsatisfactory services by their broking firms create problem in trading while 25 % people consider charges of broking firm as a problem in trading.

Q.4) What is your opinion about the problem of market uncertainty in trading? a.) It's a big challenge b.) It's manageable c.) It's an opportunity

60
50 40 30 20 10 0 a.)It's a big b.)It's c.)It's an challenge manageable opportunity
No. of respondents % of respondents

Interpretation: - majority of people consider market uncertainty as a big problem, around 19% people consider it as an opportunity and rest says it is manageable.
9

10

Q.5) Does unsatisfactory services provided by the broking firm create problem in trading? a.) Yes b.) A little c.) No

60 50 40
30 20 10 0 Yes a little No

No. of respondents

% of respondents

Interpretation :- 54.5% consider the Unsatisfactory services provided by the broking firm create problem in trading, 20.5% people consider it a little and 25% were not agree to that.

11

12

Q.6) Which charge do you consider charged by the broking firms is a problem in trading? a.) Broking charge b.) Undisclosed hidden charge c.) Annual maintenance charge

40 35 30 25 20 15 10 5 0

a.)Broking charge

b.)Undisclosed hidden charge

c.)Annual maintenance charge

No. of respondents

% of respondents

13

Interpretation: - Most people considered undisclosed hidden charges and annual maintenance charge as their problem in trading.

14

Questions regarding perception of traders regarding Indiabulls:-

Q.1) Name of the broking firm with which you are making your investment? a.) India bulls b) Share khan c) Angel Broking d) Microsec e) Karvy f) Others

50 40 30 20 10 0
a.)India bulls b.)Share khan Angel Broking Microsec Karvy others

No. of respondents

% of respondents
15

Interpretation: - Market share of Karvy is around XXX in Kolkata.

16

Q.2) Are you satisfied in trading with your broking firm? a.) Satisfied b.) Neither satisfied nor dissatisfied c.) Dissatisfied

50 40 30 20 10 0
a.)Satisfied b.)Neither satisfied nor dissatisfied c.)Dissatisfied

No. of respondents

% of respondents

17

Interpretation: - Most of the people are satisfied with their broking firm.

18

Q.3) Are you aware of products and services offered by Microsec? a.) Yes b.) No

60 50 40 30 20 10 0 Yes
No. of respondents

NO
% of respondents

19

Interpretation: - 47.1% of people are aware of products and services offered by Microsec.

20

Q.4) Are you satisfied with them? a.) Satisfied b.) Neither satisfied nor dissatisfied c.) Dissatisfied

60 50 40 30 20 10 0
a.)Satisfied b.)Neither satisfied nor dissatisfied c.)Dissatisfied

No. of respondents

% of respondents

21

Interpretation: - Majority of people are satisfied with them.

22

Q.5) Are you satisfied with the charges charged by Microsec for opening D-Mat account? a.) Satisfied b.) Neither satisfied nor dissatisfied c.) Dissatisfied

60 50 40 30 20 10 0
a.)Satisfied b.)Neither satisfied nor dissatisfied c.) Dissatisfied

No. of respondents

% of respondents

23

Interpretation: - Most of people are satisfied with the charges charged by Microsec for opening Demat account.

24

Q.6) What is your perception regarding Microsec? a.) Good b.) average c.) Bad

50 45 40 35 30 25 20 15 10 5 0 Good Avg. Bad

% of respondents No. of respondents

25

Interpretation: - Except 12 people (17.7%) perceive positive perception about Microsec.

26

Q.7) Please specify reasons? a.) Services b.) Brokerage c.) Relationship manager's support d.) Transparency good /average / bad good /average / bad good /average / bad good /average / bad

60 50 40 30 20 10 0

Good

Avg.

Bad

Good

Avg.

Bad

Good

a.)Service

b.)Brokerage

c.)Relationship

Avg.

Bad

Good

Avg.

Bad

Transparency

No. of respondents

manager's support

% of respondents

27

Interpretation: - In case of transparency and services Microsec is considered good and average in case of brokerage and relationship manager's support.

Q.8) At which office location you are more comfortable with Microsec:a.) Salt lake Sec 1 b.) Shivam chamber park circus

60 50 40 30

20
10 0 Salt lake sec 1
No. of respondents

Shivam chamber
% of respondents

28

Interpretation: - Clients of Microsec are more comfortable at Salt lake sec 1

CONCLUSION

Most of the traders consider unsatisfactory services of broking firm as biggest problem in trading.

Most of traders perceive Microsec as a good broking firm.

In case of transparency and services Microsec is considered good and average in case, of brokerage and relationship manager's support.

People aware about Microsec are satisfied regarding product and services by Microsec.

Market share of IMicrosec in kolkata is about xxx%

29

30

SUGGESTIONS

Broking charges should revised to make them more competitive.

More relationship managers should be appointed to increase market share.

Relationship manager's support to the clients should be improved.

Microsec should conduct some kind of mock Classes for new Investors who even dont know about share market.

There should be employee ID-Card for them so that When they go on it shows good impression and Identity of employee.

Microsec should Organize training Program for their existing clients once or twice in a year.

31

BIBLIOGRAPHY

www.Microsec.in www.Investopedia.com www.bseindia.com www.nseindia.com www.moneycontrol.com www.equitymarket.com www.demat.com

32

ANNEXURE

Questionnaire:

Q.1) Do you invest in share Market?

33

a) Yes b) No

Q.2) Please tick the following: a.)Type of trading you generally do intraday / delivery /both b.)Amount of investment c.)Time period of investment less than 20 k / 20k-l lacs /more than 1 lacs less than 1 month/1-6 month /more than 6 month

Q.3) In your opinion what is biggest problem in trading: a.) Lack of knowledge or experience b.)Unsatisfactory services of broking firms c.)Market uncertainty d.) Charges by broking firm

Q4) What is your opinion 'about the problem of market uncertainty in trading? a.) It's a big challenge b.) It's manageable c.) It's an opportunity

Q.5) Does unsatisfactory services provided by the braking firm create problem in trading? a.) Yes b.) Partially c.) No

Q.6) Which charge do you consider charged by the companies is a problem in trading? a.)Broking charge b.) Undisclosed hidden charge c.)Annual maintenance charge

34

Q.7) Name of the company with which you are making your investment? a.) India bulls b.) Reliance money c.) Microsec d.) Other

35

Q.8) Are you satisfied in trading with your broking firm? a.) Satisfied b.)Neither satisfied nor dissatisfied c) Dissatisfied

Q.9) Are you aware of products and services offered by Micosec? a.) Yes b.) No

Q.10) Are you satisfied with the charges charged by Microsec for opening annual maintenance charge)?

D-Mat account (with

a.) Satisfied

b.) Neither satisfied nor dissatisfied

c.) Dissatisfied

Q.11) What is Your perception regarding Microsec? a.) Good b.) Average c) Bad

Q.12) Please specify reasons? a.) Services b.) Brokerage c.) Relationship manager's support d.) Transparency good/average / bad good / average / bad good / average / bad good / average / bad

36

Q.13) At which office location you are more comfortable with Microsec: a.) Salt lake sec 1 b.) Shivam chamber

TRADING

CLIENT

BROKER

STOCK EXCHANGE

Accepts the Places an order the net of the Brokers website through the distinctive Id code order, Checks the clients Identity and Places the Order

Accepts the order after checking the scrip limit of the broker for the day

The settlement of the deal (buy/sell order) gets reflected in his Demat account. The client is intimated about the execution of the deal by e-mail.

Pays the Exchange through his owns account and receives it from the client account. Receives the money and completes the settlement

37

DEPOSITORY SYSTEM IN INDIA:

The Indian capital market witnessed an explosive growth between mid Eighties and mid Nineties. The total number of companies listed in the stock exchanges had grown by 72.3% from 2729 in 4702 in 1995. The market capitalization of the companies listed with stock exchanges had gone up from Rs.21, 000 crores in 1985 to more than Rs.4, 50,000 crores in 1995.The secondary market trading activity also gathered momentum. There has been tremendous growth in secondary market trading at BSE and NSE. Other regional exchanges like Calcutta, New Delhi have also become active players in the market. This sudden growth had exposed the limitations of the system. The system used was not able to withstand the strain caused by the tremendous growth in the securities market.

The entire securities market started experiencing a gridlock, posing obstacles in its growth. Moreover, this sudden growth has also magnified the risks that have always been plaguing the Indian system, viz., credit risk and systematic risk. International institutional investors wanting to invest in India had become apprehensive about the reliability of the trade settlement mechanisms used in the country, which did not match international standards.

Besides affecting the inflow of foreign capital, the lack of efficient settlement systems had affected all those operating in the stock market, be it institutional investors, individual investors or brokers. They suffered due to lost trading days (liquidity), lost scrips improperly paid dividends, mistaken registration, unnecessary financing cost, inappropriate risk like failure of counter party and fraud.

38

Era of Scripless and Paperless trading:

To sort out the above mentioned problems and to restore the investors confidence in the stock market the depository system was set up. It was against this background that the Government of India enacted the Depositories Act in 1996, which an era of scrip less trading and settlement, efficient market infrastructure, investor protection, reduced risks and transparency of transaction in the securities market. Depository Act, 1996:

The concept of Depository is known to the world since 1949 when the first depository was set up in Germany. There were 112 depositories in operation by the year 2001. Every depository operates under a countrys specific law and regulation in order to ensure safety, liquidity, rights and liabilities to the security holders.

Depository:

A depository is an organization where the securities of an investor are held in electronic form. A depository can be compared to a bank. To avail of the services of a depository, an investor has to open an account with the depository through a depository participant, just as he opens an account with the bank. Holding shares in the account is a kin to holding money in the bank

At present, India has only two depositories-National Securities Depository Ltd. (NSDL) and Central Depository Services Ltd (CDSL).

39

NSDL is the first depository in the county, which is promoted by three major financial institutions Unit Trust of India, Industrial development Bank of India and National Stock Exchange of India Limited. The second depository of the country (CSDL) is set up in 1999 by the Bombay Stock Exchange and Bank of India

However, most of the services offered by both these depositories are similar. Today almost all the companies listed in dematerialized from with NSDL are available with CDSL.

BANK
Holds funds in accounts Transfers funds between accounts Safekeeping of Money

DEPOSITORY
Holds securities in accounts Transfers without handling securities Safekeeping of securities

EXECUTIVE SUMMARY

The commencement of E-Trading and Demat has transformed the capital market in India. With the help of Demat and Trading account, buying and selling of shares has become a much faster and even process than trading with the assistance of a physical broker. It provides for the assimilation of bank, broker, stock exchange and depository participants. This helps to get rid of the painstaking procedure of investing in stock exchange. Today, if one wants to invest in stock market, he has to contact a broker on phone or meet him personally to place order. A broker generally gives such importance and additional service only to high net worth customers. But the introduction of Internet trading, even a common or a small investor gets an opportunity to avail the service at an affordable price which is much lesser than what is charged by a physical broker over the phone. Online trading has given customer a real time access to account information, stock quotes elaborated market research and interactive trading. The prerequisites of Internet trading are a computer, a modem and a telephone connection, registration with broker, a bank a/c and depository account. The introduction of depository service is considered as the beginning of the trading of Stocks @ click.

40

This means that you can arrange delivery of scrips sold anytime, anywhere to anyone by click of a mouse. Dematerialization facilitates to keep the securities in electronic form instead of paper form. It offers more advantageous than the physical certificate form. Despite the advantages of Dematerialization, the awareness levels among the investors relating to Demat account is not adequate because of numerous reasons. The investors are not sufficiently responsive of the concept of Demat account and the various financial institutions providing such services. This study involves understanding the various concepts of Demat and analyzing the investment pattern of individuals in India and a study on Analysis of awareness among investors regarding On Line Trading and Dematerialization has been submitted to Globsyn B School.

41