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“Share Khan Pvt Ltd Jalgaon”.

Irfan J. Shaikh
Roll No.38
Prof. Asad Zafir




This project bears imprint of all those who have directly or indirectly helped and extended their kind
support in completing this project. At the time of making this report I express my sincere gratitude to
all of them.
I would like to express my sincere gratitude to Mr.Jitendra Kohle for giving me this opportunity to
undergo this lucrative project with Share Khan Pvt. Ltd, Jalgaon.
I am extremely thankful and obliged to my friends co-students for providing streamed guidelines
since inception, till the completion of the project.
I would also thank Share Khan Pvt. Ltd employees and customers, whom I met during the course of
this project, for their support and for providing valuable information, which helped me, complete this
project successfully.

At this moment I also thank almighty God for the blessings showed upon me, my parents for their
support and care and also my friends for their valuable suggestions. Last but not the least; I would
also like to thank my friend Mr. Salman Pathan for providing me a great help and valuable feedback
on this project.

This project report is a collective effort of all and I sincerely remember and acknowledge all of them
for their excellent help and assistance throughout the project.

Irfan J. Shaikh




























settlement of trade in depository. opening account .The project covers issues related to depository and Sharekhan as depository . and short direction after the inception of the scheme or the earliest time taken to evaluate its popularity. This project cover trading in equity of capital market. analysis of dematerialization . Methodology . nomination dematerialization . comparative analysis of structure and services offers in the same industry . issues related to demat e. than it explains capital market and depository part of this capital market . analysis of structure and services offers in the same industry. lack of information .INTRODUCTION EXECUTIVE SUMMARY Indian Capital Market has been linked to the International Financial Market and the Standard has been increased in terms of efficiency and transparency through Dematerialization of the Indian Capital Market in terms of handling and dealing in securities in paper mode . SHAREKHAN (DEPOSITORY PARTICIPANT) SHARE MARKET DEPOSITORY 5 CAPITAL MARKET . the main objective of this study is to analyze trends in growth of dematerialization process was not keeping pace with the Indian Capital Market due to un popularity of Demat.g.Project start with objective .transmission . My project is base on study about dematerialization in the Indian Capital Market .freezing defreezing.and limitation of project than it highlight company profile with product details.

 To know about the services of the share market and mutual funds. Objective and scope of the study: The Mutual Fund Industry is fast gaining popularity in today’s unpredictable financial scenario. A combination of primary and secondary data has been used. I have tried to systematically and objectively look into all-important aspects.OBJECTIVES OF PROJECT  To know the work culture and methodology of the share market  To know the rules and regulation of SEBI. The primary objective of the project is to gain detailed insight into this Industry. It is emerging as one of the most lucrative investment options.  To know the benefits of investing in share market and mutual funds. 6 .  To know the various exchanges of share markets all over the world.  To know the various factors on which prices of shares and mutual funds fluctuates. though limited. The former. The latter has been used to understand the theoretical aspects.  To know the timing of the share market.  To know how the value of shares and mutual funds is calculated.  To know the various competitors in the mutual funds market. has helped us give first hand information on company and investor sentiments.  To know the rules and regulation of AMC (Assets Management Company)  To know the brokerage system of the share market  To know the difference between share market and mutual funds.

The second is to provide the reader similar detailed knowledge The prime objective of the research was to determine the perception of the Indian investor towards Mutual funds and this is demonstrated in the later part of this report. which is also the main objective of the project. is to reflect our understanding of this industry. 7 .Strategic importance has been given to both current and past trends and we have tried to correlate both in a manner to gain maximum insight. The first. This document has been designed to serve a two-fold purpose.

Each Mutual Fund scheme has a defined investment objective and strategy. These could range from shares to debentures to money market instruments. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified. The small savings of all the investors are put together to increase the buying power and hire a professional manager to invest and monitor the money. The money thus collected is invested by the fund manager in different types of securities depending upon the objective of the scheme. 8 . The income earned through these investments and the capital appreciations realized by the scheme are shared by its unit holders in proportion to the number of units owned by them. professionally managed portfolio at a relatively low cost. Anybody with an investible surplus of as little as a few thousand rupees can invest in Mutual Funds.What is a Mutual Fund? A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal.


2002 Sharekhan launched speed trade. The site gives access to superior content and transaction facility to retail customers across the country. a net-based executable application that emulated the broker terminals along with host of other information relevant to the day traders.Sharekhan. Derivatives. This was for the first time that a net-based trading station of this caliber was offered to the traders. 2000. The firm’s online trading and investment site – was launched on Feb. which has over eight decades of experience in the stock broking business. investor friendly language and high quality research. Known for its jargonfree. Sharekhan alone accounts for 22 percent of the volumes traded online. It is the retail broking arm of the Mumbai-based SSKI Group. Sharekhan offers its customers a wide range of equity related services including trade execution on BSE. On April 17. While online trading currently accounts for just over 1 percent of the daily trading in stocks in India. NSE.COMPANY PROFILE Share khan is one of the leading retail brokerage firms in the country. The number of trading members currently stands at over 3 lakh. 8. investment advice etc. the site has a registered base of over one-lakh customers. The objective has been to let customers make informed decisions and to simplify the process of investing in stocks. online trading. depository services. The content-rich and research oriented portal has stood out among its contemporaries because of its steadfast dedication to offering customers best-ofbreed technology and superior market information. In the last six months 10 .

Vignette. sector tapped etc. Gujarat Pipavav. Nexgenix. Oracle. Sharekhan has always believed in investing in technology to build its business. HSBC. Foreign Institutional Investors generate about 65% of the organization’s revenue. to build its trading engine and content. Intel & Carlyle are the other investors. Spider Software Pvt. Hutchison. The company has used some of the best-known names in the IT industry like Sun Microsystem. 11 . SSKI holds a sizeable portion of the market in each of these segments. UK and US. It has 60 institutional clients spread over India. Ltd. of which 20 are fully-owned branches. Far East. Sharekhan’s ground network includes over 250 centers in 123 cities in India.. with a daily turnover of over US$ 2 million. Cambridge Technologies. Presently SSKI is one of the leading players in the institutional broking and corporate finance activities. Essar. Verisign Financial Technologies India Ltd. Microsoft. With a legacy of more than 80 years in the stock markets. The group has placed over US$ 1 billion in private equity deals. in terms of the size of deal. The Corporate Finance section has a list of very prestigious clients and has many ‘firsts’ to its credit.Speed Trade has become a de facto standard for the Day Trading community over the net. Planet Asia and Shopper’s Stop. Some of the clients include BPL Cellular holding. The Morakhia family holds a majority stake in the company. the SSKI group ventured into institutional broking and corporate finance 18 years ago. 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.

EXPERIENCE SSKI has more than eight decades of trust and credibility in the Indian stock as well as over the voice tool. You will also get a useful set of knowledge-based tools that will empower you to take informed decisions. EDUCATION. In the Asia Money broker’s poll held recently.REASONS TO CHOOSE SHARE KHAN LTD. it has been providing institutional-level research and broking services to individual investors. sharekhan. over the internet (through the website www. you get access to a wide range of information on our content-rich portal. Ever since it launched Sharekhan as its retail broking division in February 2000. TECHNOLOGY With our online trading account you can buy and sell shares in an instant from any PC with an Internet connection. 12 . TOOLS AND EXECUTION services for investors. KNOWLEDGE In a business where the right information at the right time can translate into direct profits. SSKI won the ‘India’s best broking house for 2004 award.sharekhan. ACCESSIBILITY Sharekhan provides ADVICE. You will get access to our powerful online trading tools that will help you take complete control over your investment in shares. These services are accessible through our centers across the country (over 250 locations in 123 cities).

BENEFITS  Secure Order by Voice Tool Dial-n-Trade. Our analyst constantly track the pulse of the market and provide timely investment advice to you in the form of daily research emails. online chat. We have a dedicated call-centre to provide this service via a toll free number from anywhere in India.  On-line customer service via web chat. Our customer service can be contracted via a toll-free number. 13 .  Personalized Price and Account Alerts delivered instantly to your cell phone & email address.  Anytime Demat and other queries.CONVENIENCE You can call our Dial-N-Trade number to get investment advice and execute your transactions. email or live chat on sharekhan. printed reports and SMS on your phone. CUSTOMER SERVICE Our customer service team will assist you for any help that you need relating to transactions. INVESTMENT ADVICE Sharekhan has dedicated research teams for fundamental and technical research.  Special Personal Inbox for order and trade confirmations.  Automated Portfolio to keep track of the value of your actual purchases. billing.  24x7 Voice Tool access to your trading account.

7. 6. 14 .Mutual Fund Advisory and Distribution.Depository Services. 3. 5.Portfolio Management Service.Insurance Distribution.PRODUCTS OF SHAREKHAN 1.Commodities Trading Platform (Online/Offline). 2. 4.Equity Trading Platform (Online/Offline).Research Report.

TRADE TIGER ACCOUNT 1.  Provision to enter price trigger and view the same online in market and is suitable for the retail investor who is risk averse and hence prefers to invest in stocks or who does not trade too frequently.TYPES OF ACCOUTNS 1. 15 .com  Live terminal (NSE Online.  Streaming Quotes.  Competitive transaction charges. (Cash & Derivatives)  Personalized market watch. saving bank and Demat account.  Instant cash transfer facility against purchase & sale of shares.sharekhan. Features  Online trading account for investing in equity and derivatives via www.  Single screen interface for cash and derivatives and more. Classic Account – This account allows the client to trade through our website www.sharekhan.  Instant order and trade confirmation be email. BSE Offline)  Integration of on-line trading.CLASSIC ACCOUNT 2.

 User-defined alert settings on an input Stock Price trigger tools available to gauge market such as Tick Query. Mutual funds and IPOs. Option Premium Calculator. With this service. Tiger Trade Account – It is an internet-based software application that enables you to buy and sell in an instant. can save the layout for future use.  Multiple Market Watch available on a single screen. 2. the CLASSIC also gives you our Dial-n-trade services. Action Watch. MCX. NSE. FEES STRUCTURE 16 . It is ideal for active trades and jobbers who transact frequently during day’s session to capitalize on intra-day price movement.  Shortcut key for FAST access to order placements & reports. Market Summary. NCDEX.  User can save his own defined screen as well as graph template. Ticker. Features A single platform for multiple exchange BSE. that is. Span Calculator. all you have to do is dial our dedicated phone lines 1-800-22-7500 and 1800-22-7050.Dial-n-trade – Along with enabling access for your trade online.

 If margin cheque exceeds Rs. 300 (chargeable in second year) that is applicable for both account.300/- Tiger trade account nil Rs. account opening free. Comparison with leading companies in share brokrage 17 .25% Note  Minimum margin cheque – Rs.10% Intra-day 0.50% Delivery 0. 6000 (adjusted towards brokerage within one year) that is applicable for only tiger trade account.  Annual maintenance charges – Rs.Charge Account Opening Monthly maintain Classic Account Rs. 50000. 5000with the classic account that is must deposit in account opening time.  No account closing charges. 300/- charges Brokerage Intra-day 0.  Minimum brokerage cheque – Rs. 750 /Rs.05% Delivery 0.

18 .

750/- Rs . R. 300/- RESEARCH REPORT NO NO R.500/- Rs.10% DEL.16 per transaction Rs. 750/- Rs.16per transaction Rs.750/- AMC ICICI RELIGARE INDIABULL SHAREKHAN Rs.50% INT .1250/500 Rs.05% DEL .FIRMS NAME FACTS HDFC OPENING CHARGES RS.10% DEL .50% LIVE TERMINAL NO NO YES YES YES EXPOSURE NO NO 8timeonly trading 8time only trading 5time 2days+trading TRADING TIMING 9:55to3:0 9:55to3:30 9:55to2:45 9:55to3:00 9:55to3:30 Note  In India bull provide two types of account cool and demat account and both charge is shown on the table.50% INT .75% INT .15% DEL.20per call chargeable Rs.75% INT . DAILY BASIS DIAL N TRADE Rs.  In the case of exposure India bull and Religare provide till trading but Sharekhan provide trading plus two another working days 19 .750/- Rs. facility insists of research report.15% DEL.M.20per call NO chargeable NO FREE BROKRAGE INT .750/- Rs.M. M.  In this table Religare and India bull provide only R.

OBJECTIVES OF THE STUDY OBJECTIVES OF THE STUDY  To know the work culture and methodology of the share market 20 .

 To know the various exchanges of share markets all over the world.  To know the benefits of investing in share market and mutual funds.  To know about the services of the share market and mutual funds.  To know how the value of shares and mutual funds is calculated. To know the rules and regulation of SEBI.  To know the various competitors in the mutual funds market.  To know the various factors on which prices of shares and mutual funds fluctuates. 21 .  To know the rules and regulation of AMC (Assets Management Company)  To know the brokerage system of the share market  To know the difference between share market and mutual funds.  To know the timing of the share market.


books and web sites..e. The present study will adopt the exploratory approach wherein there is a need to gather large amount of information before making a conclusion. c) Collection and Sources of data: Market research requires two kinds of data. collection. If required. The marketing research process that will be adopted in the present study consists of the following stages a) Defining the problem and the research objective: The research objective states what information is needed to solve the problem. Market research is the systematic design. primary data and secondary data. The objective of the research is to find out the facilities provided in mutual funds and share market and what will be its benefits in the future. d) Analyze the collected information: This involves converting raw data into useful information.RESEARCH METHODOLOGY objective of the present study can be accomplished by conducting a systematic market research. i. analysis and reporting of data and findings that are relevant to different marketing situations facing the company. It involves tabulation of data and using statistical measures 23 . the descriptive and casual approaches may also be used. the next step is to prepare a plan for getting the information needed for the research. Secondary data will be collected from various journals. b) Developing the research plan: Once the problem is identified. Preparing questionnaires that will contain both open-ended and close-ended questions may collect the primary data.

The research findings and personal experience will be used to propose recommendations to develop the market in online trading. The report with the research findings is a formal written document. e) Report research findings: This phase will mark the culmination of the marketing research effort. 24 .on them for developing frequency distributions and calculating the averages and dispersions.

Some the limitations of this study may be summarized as follows:  Getting accurate responses from the respondents.Limitations: Though the present study aims to achieve the above-mentioned objectives in full earnest and accuracy. it may be hampered due to certain limitations. Locating the target customers of mutual funds is very time consuming. 25 .

Theoretical Back Ground MUTUAL FUND FLOW CHART 26 .

27 .

The key feature of open-end schemes is liquidity. The fund is open for subscription only during a specified period. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where they are listed. SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor. Open-end Funds An open-end fund is one that is available for subscription all through the year. BY STRUCTURE 1.TYPES OF MUTUAL FUND SCHEME Mutual fund schemes may be classified on the basis of its structure and its investment objective. 28 . Investors can conveniently buy and sell units at Net Asset Value ("NAV") related prices. These do not have a fixed maturity. In order to provide an exit route to the investors. Closed-end Funds A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15 years. 2. some close-ended funds give an option of selling back the units to the Mutual Fund through periodic repurchase at NAV related prices.

Interval Funds Interval funds combine the features of open-ended and close-ended schemes. Such schemes generally invest in fixed income securities such as bonds. corporate debentures and Government securities. Income Funds The aim of income funds is to provide regular and steady income to investors. It has been proved that returns from stocks.3. Such schemes normally invest a majority of their corpus in equities. Such schemes periodically distribute a part of their earning and invest both in equities 29 . have outperformed most other kind of investments held over the long term. Balanced Funds The aim of balanced funds is to provide both growth and regular income. 3. Income Funds are ideal for capital stability and regular income. They are open for sale or redemption during pre-determined intervals at NAV related prices. Growth Funds The aim of growth funds is to provide capital appreciation over the medium to long term. 2. Growth schemes are ideal for investors having a long-term outlook seeking growth over a period of time. BY INVESTMENT OBJECTIVE 1.

5. Money Market Funds The aim of money market funds is to provide easy liquidity. If you plan to retire at age 65. pre-tax income to maintain a comfortable lifestyle in retirement. since the average life expectancy for a 65-year-old is 83. retirement savings should last for at least 18. especially retirement.5 years. preservation of capital and moderate income. the NAV of these schemes may not normally keep pace. Ideally.and continues to rise. individuals use a 30 . Three Common Investment Goals Goal No. Returns on these schemes may fluctuate depending upon the interest rates prevailing in the market. It is estimated that retirees will need 70 to 80 percent of their final. 1: Retirement Most individuals buy mutual funds for long-term goals. or fall equally when the market falls. In a rising stock market. These are ideal for investors looking for a combination of income and moderate growth. 4. certificates of deposit. commercial paper and inter-bank call money. . These schemes generally invest in safer shortterm instruments such as treasury bills.and fixed income securities in the proportion indicated in their offer documents. These are ideal for Corporate and individual investors as a means to park their surplus funds for short periods.

31 . 1961. OTHER SCHEMES 1. can also be appropriate investments for other short-term goals. you have 18 years to invest. 3: Emergency Reserves and Other ShortTerm Goals Emergency reserves are assets you may need unexpectedly on short notice.combination of sources to fund retirement. Goal No. Your time horizon is an essential consideration when investing for education: if you start when the child is born. Money market funds alone. Investments made in Equity Linked Savings Schemes (ELSS) and Pension Schemes are allowed as deduction u/s 88 of the Income Tax Act. including Individual Retirement Accounts (IRAs). the time horizon can be lengthened by investing now. if a child or grandchild is in your future. The Act also provides opportunities to investors to save capital gains u/s 54EA and 54EB by investing in Mutual Funds. Goal No. 2: Education Many parents and grandparents use mutual funds to invest for children’s college educations. or in combination with short-term bond funds. such as Social Security benefits. Many investors use money market funds for their reserves. However. Tax Saving Schemes These schemes offer tax rebates to the investors under specific provisions of the Indian Income Tax laws as the Government offers tax incentives for investment in specified avenues. employer-sponsored retirement plans-like 401(k) plans—and personal savings.

32 .2. This could be an industry or a group of industries or various segments such as 'A' Group shares or initial public offerings. Special Schemes  Index Schemes Index Funds attempt to replicate the performance of a particular index such as the BSE Sensex or the NSE 50  Sectoral Schemes Sectoral Funds are those that invest exclusively in a specified sector.

Step Three . the first step is to assess your needs. You can begin by defining your investment objectives and needs. The offer document of the scheme tells you its objectives and provides supplementary details like the track record of other schemes managed by the same Fund Manager. Other factors could be the portfolio allocation. financial independence. family commitments. which suits your requirements. the quantum of risk you are willing to take and your cash flow requirements. buying a home or finance a wedding or educate your children or a combination of all these needs.Identify your Investment needs Your financial goals will vary. lifestyle. based on your age. which could be regular income.Select the ideal mix of Schemes 33 . the dividend yield and the degree of transparency as reflected in the frequency and quality of their communications. Step Two .HOW TO INVEST IN MUTUAL FUND Step one . Some factors to evaluate before choosing a particular Mutual Fund are the track record of the performance of the fund over the last few years in relation to the appropriate yardstick and similar funds in the same category. Therefore. and level of income and expenses among many other factors.Choose the right Mutual Fund The important thing is to choose the right mutual fund scheme.

You may consider investing in a combination of schemes to achieve your specific goals.Invest regularly The best approach is to invest a fixed amount at specific intervals.Start early It is desirable to start investing early and stick to a regular investment plan. You can also avail the systematic investment plan facility offered by many open-end funds. thus bringing down your average cost per unit. Step Five. say every month. 34 .Investing in just one Mutual Fund scheme may not meet all your investment needs. you buy fewer units when the price is higher and more units when the price is low. This is called rupee cost averaging and do investors all over the world follow a disciplined investment strategy. By investing a fixed sum each month. you will make more than if you wait and invest later. The power of compounding lets you earn income on income and your money multiplies at a compounded rate of return. Step four . If you start now.

affordability. These managers decide what securities the fund will buy and sell. liquidity. Other securities in the portfolio will respond to the same economic conditions by increasing in value. The advantages of mutual funds include professional management. and affordable. For example. even if some securities lose value.  Regulatory oversight: 35 . accessible.ADVANTAGES OF MUTUAL FUNDS Mutual funds make saving and investing simple.  Professional Management: Most mutual funds pay topflight professionals to manage their investments. diversification. variety. the value of the overall portfolio should gradually increase over time. economic conditions like a rise in interest rates may cause certain securities in a diversified portfolio to decrease in value. and ease of recordkeeping—as well as strict government regulation and full disclosure. convenience. When a portfolio is balanced in this way.  Diversification: The best mutual funds design their portfolios so individual investments will react differently to the same economic conditions.

phone. make a call.  Liquidity: It's easy to get your money out of a mutual fund.  Low cost: Mutual fund expenses are often no more than 1.  Convenience: You can usually buy mutual fund shares by mail. Write a check. because index funds are not actively managed. and you've got the cash.5 percent of your investment. Instead. they automatically buy stock in companies that are listed on a specific index  Transparency  Flexibility  Tax benefits 36 . Expenses for Index Funds are less than that.Mutual funds are subject to many government regulations that protect investors from fraud. or over the Internet.

 Management risk: When you invest in a mutual fund. However. financial consultants. you will pay taxes on the income you receive. Some funds also charge sales commissions or "loads" to compensate brokers.  Fees and commissions: All funds charge administrative fees to cover their day-to-day expenses. because these funds do not employ managers.DRAWBACKS OF MUTUAL FUNDS  No Guarantees: No investment is risk free. you will pay a sales commission if you buy shares in a Load Fund. if you invest in Index Funds. If your fund makes a profit on its sales. no matter how balanced the portfolio. 37 . most actively managed mutual funds sell anywhere from 20 to 70 percent of the securities in their portfolios. or financial planners. anyone who invests through a mutual fund runs the risk of losing money. the value of mutual fund shares will go down as well. Even if you don't use a broker or other financial adviser. If the entire stock market declines in value. If the manager does not perform as well as you had hoped. Of course.  Taxes: During a typical year. you forego management risk. you might not make as much money on your investment as you expected. Investors encounter fewer risks when they invest in mutual funds than when they buy and sell stocks on their own. you depend on the fund's manager to make the right decisions regarding the fund's portfolio. even if you reinvest the money you made.

and the total value of your mutual fund account. and official fund documents already are “net” of any fees the fund charges you. Thus. all funds have operating expenses. A mutual fund’s fees and expenses are required by law to be clearly disclosed to investors in a fee table at the front of the fund’s prospectus. The availability of this figure in all fund prospectuses allows you to easily compare how much more or less one fund costs versus another —an important part of making an informed investment decision. advertisements..e. Mutual funds compete vigorously to keep costs low. any time you consider a fund’s past performance. In addition. the fund returns published in newspapers. sales commissions. since the performance figures reported by the fund . Particularly important to your assessment of costs is the fund’s expense ratio. i.How to Read a Mutual Fund Fee Table There are two basic types of costs associated with mutual funds. Some funds charge shareholder fees when you purchase or redeem shares of the fund. which represent the costs of running the fund. For example. 38 . are provided after all fees and expenses have been deducted. your decision reflects the impact fees have had on the fund in the past.

2. Request a copy of the fund’s prospectus and read it carefully. See the fund’s prospectus for a description of all fees and expenses. Determine the amount of all sales charges. Make sure the fund’s objectives coincide with your own. management fees and Administrative expenses before you invest.Ten Tips on Buying Mutual Funds 1. Determine your financial objectives and how much money you can afford to invest. Also look over the SAI and the latest shareholder report from each fund you are considering. which can add to your costs. 39 . Some funds charge for reinvestment of dividends and capital gains distributions. Research and obtain all available information before you invest. Do not change your objectives or exceed the amount set aside for investment without careful consideration. 3.

40 . junk bond companies are more volatile and more likely to default on bond payments. Unlike money market accounts and certificates of deposit. Never treat the risks of investing in mutual funds lightly. Besides the sales charges for redeeming periodic payment plans before completion. known as a contingent deferred sales load.4. mutual funds are not federally insured. 5. All mutual funds involve some degree of risk. some funds may charge a redemption fee or a proportion of your investment. 7. While junk bonds pay a high-rate of return. If you sell or redeem early – or do not complete the plan – you may find that a large portion of your investment has gone to pay sales charges. These factors can seriously affect the fund’s performance 6. Do not invest in periodic payment plans unless you are absolutely certain that you will hold your shares for a long time. Exercise caution when considering investing in funds with junk bond portfolios. Learn the consequences of redemptions.

10. Call Secretary of State office to find out whether your broker/financial advisor and the mutual fund are properly registered in Indian. or if you are not satisfied with the answers you have received. If something does not seem right. call Secretary office. contact the Secretary of State’s office. If you believe you have encountered investment fraud. If there is a history of problems. We are here to help you! 41 . this should serve as a red flag to prospective investors. Secretary office can tell you if a company or an individual has failed to properly register or if there is a history of trouble with securities regulators.8.

A share is issued by a company or can be purchased from the stock market. Shares in the Share Market are either traded through:(a) Stock Exchange These are organized market places where to both the participants in case of any default. 42 . What is share? Share or stock is a document issued by a company. Shares are certificates which represents ownership rights of the holder in a company. It plays an important role in channelizing capital from the investors to the business houses which consequently leads to the availability of funds for business expansion. which entitles its holder to be one of the owners of the company.Share Market Overview Share market is the market for securities where organized issuance and trading of shares takes place. bonds are other equivalents are traded between the buyers and sellers where exchange acts as a counter . (b) Over-the -Counter (OTC) These are not centralized exchanges and the trade takes place through a network of dealers.

Most IPOs these days do not have a fixed offer price instead they follow a method called the book building process. The public can bid for the shares at any price in the band specified. 43 . where the offer price is placed in a hand or a range with the highest and the lowest value (refer to the newspaper ad). Share Market can be divided into two parts :1. PRIMARY MARKET The first time that a company shares are issued to the public. After the offer price is fixed the company either allots its shares to the people who had applied for its shares or returns them their money. 2. Primary Market It is the market where new issues of securities are offered to the investors. Once the bid come in the company evaluates all the bids and decides on an offer price in that range. it is by a process called the initial public offering (IPO).Basically. Secondary Market An investor of a secondary market buys a security from another participant of the same and not from any issuing corporation (as in case of Primary Market). In an IPO company offloads a certain percentage of its totals shares to the public at a certain price.

stock exchanges facilitate the trading of shares for the general public.SECONDARY MARKET Company Broker Stock Exchange Individual Investors Companies get themselves listed on popular stock exchanges like BSE and NSE SECONDARY MARKET Once the offer price is fixed and the shares are issued to the people. people can start trading in its shares. In a stock exchange the existing shareholders sell their shares to anyone who is willing to buy them at a price agreeable to both the parties. Once a stock is listed on an exchange. Individuals cannot buy or sell shares in a stock exchange directly they have to execute their transactions through authorized members of the stock exchange who are also called stock brokers 44 .

45 .DYNAMICS OF THE SHARE MARKET Buyer He pays the money to his broker Broker His broker pays it to the exchange Stock Exchange The exchange pays it to the seller’s broker Broker Seller Seller’s broker finally pays the money to the seller Similar process happens for the transfer of shares from the seller’s end.

MULTI CHANNEL ACCESS TO THE STOCK MARKET Relationship Manager Live chat Call centre Website SMS Email CUSTOMER SUPPORT Multi Channel Investment Option Share Shops Dial n Trade Online Trading 46 .




Columns 1 & 2: column 1&2 shows 52- Week High and Low price rate
of shares.
Column 3:column shows Company Name & Type of Stock.
Column 4: column 4 shown Ticker Symbol of company name which
companies share has shown.
Column 5: column 5 shown Dividend Per Share.
Column 6: Column 6 shown Dividend Yield per share.
Column 7: column 7 shown Price/Earnings Ratio of per share.
Column 8: column 8 shown Trading Volume in hunred volume.
Column 9 & 10: column 8 shown Day High and Low rate of share.
Column 12: column 8 shown Net Change of shares which share goes
up or down that thing is shown with the help of this table.


Why shares
Historically shares have outperformed all the other investment instruments
and given the maximum returns in the long run. In the twenty-five year
period of 1980-2005 while the other instruments have barely manage to
generate returns at a rate higher than the inflation rate(7.10%), on an average
shares have given returns of about 17% in a year and that does not even take
in account the dividend income from them. Were we to factor in the dividend
income as well, the shares would have given even higher returns during the
same period.

Dividend income:
investments in shares are attractive as much for the appreciation in the share
prices as for the dividends their companies pay out.

Tax advantages:
shares appear as the best investment option if you also consider the
unbeatable tax benefits that they offer. First, the dividend income is taxfree in the hands of investors. Second, you are required to pay only a 10%
short term capital gains tax on the profits made from investments in
shares, if you book your profits within a year of making the purchase. Third,
you don't need to pay any long-term capital gains tax on the profits if you
sell the shares after holding them for a period of one year. The capital gains
tax rate is much higher for other investment instruments: a 30% short-term
capital gains tax (assuming that you fall in the 30% tax bracket) and a 10%
long-term capital gains tax


Easy liquidity:
shares can also be made liquid anytime from anywhere (on
you can sell as here at the click of a mouse from anywhere in the world) and
the investments can be realized in just two working days .Considering the
high returns, the tax advantages and the highly liquid nature, shares are
the best investment option to create wealth.


DIFFERENCE BETWEEN PRIMARY AND SECONDARY MARKETS In the primary market securities are issued to the public and the proceeds go to the issuing company. Secondary market is a term used for stock exchanges. where stocks are bought and sold after they are issued to the public. 51 . PRIMARY MARKET Individuals apply to get shares of the company Company IPO Companies share ownership by issuing shares Company Owners Companies allocate shares to individuals and those who get the shares become part owners of the company.

Gone are the days when shares were held as physical certificates. They will show in your demat account. 25 of Wipro. They are all held electronically in your account. you will get a demat statement telling you what shares you have in your demat account. How to get a demat account To get a demat account. A depository is a place where an investor's stocks are held 52 . You can either choose a broker (who is directly registered with SEBI) or a sub-broker (people licensed by brokers to work under them). which is the stock market regulator. 45 of HLL and 100 of ACC. 2. You don't have to possess any physical certificates showing you own these shares. Every stockbroker has to be registered with the Securities and Exchange Board of India. Today. they are held in an electronic form in demat accounts. you will have to approach a Depository Participant. Let's say your portfolio of shares looks like this: 40 shares of Infosys. Demat refers to a dematerialized account. if you want to start investing in shares. you can do it only through a broker. Demat account: .People like you and me cannot just go to a stock exchange and buy and sell shares. Only the members of the stock exchange can. Stock Broker / Sub – Broker: . These members are called stockbrokers and they buy and sell shares on our behalf. Periodically. So.TERMINOLOGY USED IN SHARE MARKET 1.

gives you an account where you can hold those shares. The DPs are like the branches of banks that cater to individuals. visit the NSDL and CDSL Web sites. Get a PAN: . The depository has agents who are called Depository electronic form. however. Trading / Square off Transaction:Whenever a trader / investor buys or sells a security and on the same day before the market closes. is like the depository.the National Securities Depository Ltd and the Central Depository Services Ltd. for example) that identifies and tracks an individual in the taxman's database. The head office. In India. the transaction is called as square off transaction or 53 . A DP. where all the technology rests and the details of all the accounts are held. Think of it like a bank. 3.The taxman demands that you get yourself a Permanent Account Number. he sells or buys that particular security (in the same quantity). This is a unique 10-digit alphanumeric number (AABPS1205E. There are only two depositories in India -. is not similar to a DP. A broker. there are over a hundred DPs. 4. A broker is a member of the stock exchange and he buys and sells shares for his clients and for himself. To get a list of the registered DPs. on the other hand. Almost every money transaction demands the use of a PAN.

Auction:- 54 . TS. 7. Charges such as brokerage. 5. Settlement Period :Currently the settlement period is T+2. one will get the delivery within 2 days of the date of transaction. Settlement period i.e. The different categories are A. In case of purchase transaction. B2. 6. Z 8. Shares Category:The stock exchange has divided the shares into the categories according to the performance of the company. B1. service tax on brokerage. and the investor/trader is ready to take / give the delivery of the security. are very high on the delivery transactions. T. T+2 means one has to give the delivery of the shares sold within 2 days of the date of the transaction. STT. Delivery Transaction:Delivery transactions are those transactions which are not squared off at the day end. S (BSE Indonext). stamping charges etc. Shares lying in the T. TS and T are not square off the same day.a trading transaction.

In case of failure of delivery of shares for sale transaction within the stipulated time period. Close Out:In case of failure of delivery of shares for purchase transaction within the stipulated time period. the person buying the shares gets the benefit in the form of Close Out as per the BSE’s rules and regulations. 9. the BSE auction those shares as per the rules and regulations. 55 .

Government raises capital for development projects.  Mobilize savings for economic development. LISTING OF SECURITIES Listing means admission of the securities to dealings on a recognised stock exchange. Mobilizing saving for investment. 4. municipalities. 7. Facilitate Company growth. Raising capital for business. The Exchange has a separate Listing Department to grant approval for listing of securities of companies in accordance with the provisions of the Securities Contracts (Regulation) Act. 6. 5.ROLE OF STOCK EXCHANGE 1. 1956. The objectives of listing are mainly to:  Provide liquidity to securities. Redistribution of wealth. Securities Contracts 56 . Create investment opportunities for small investors. Central or State Government. 2. quasi-governmental and other financial institutions/corporations. 3. The securities may be of any public limited company.  Protect interest of investors by ensuring full disclosures. Corporate governance. etc.

57 . 1956. Bye-laws and Regulations of the Exchange. 1957.(Regulation) Rules. A company intending to have its securities listed on the Exchange has to comply with the listing requirements prescribed by the Exchange. Guidelines issued by SEBI and Rules. Companies Act.

internet. media including advertisement. The total income/sales from the main activity. internet. should not be less than 75% of the total income during the two immediately preceding years as certified by the Auditors of the company.MINIMUM LISTING REQUIREMENTS FOR NEW COMPANIES (A) Minimum Capital: 1.5 Crores. ii.50 Crores. In addition to this the issuer company should have a post issue net worth (equity capital + free reserves excluding revaluation reserve) of Rs. media including advertisement.e. iii. e-commerce. entertainment etc. information technology. (The capitalization will be calculated by multiplying the post issue subscribed number of equity shares with the Issue price). 58 .10 Crores. New companies can be listed on the Exchange. e-commerce. entertainment etc. 2. which should be in the field of information technology. telecommunication.20 Crores. The minimum market capitalization should be Rs.) the following criteria will be applicable regarding threshold limit: i. telecommunication. For new companies in high technology (i. if their issued & subscribed equity capital after the public issue is Rs. The minimum post-issue paid-up equity capital should be Rs.

1956. however. at least 10% of the securities issued by the company may be offered to the public subject to the following:  Minimum 20 lac securities are offered to the public (excluding reservation. [II] MINIMUM LISTING REQUIREMENTS STOCK EXCHANGES 59 FOR COMPANIES LISTED ON OTHER . For this purpose. firm allotment and promoters contribution)  The size of the offer to the public is minimum 50 cores.iv. the term "offered to the public" means only the portion offered to the public and does not include reservations of securities on firm or competitive basis. 1957. In case of IPOs by unlisted companies in the IT& entertainment sector.20 Crores. securities of a company can be listed on a Stock Exchange only when at least 25% of each class or kind of securities is offered to the public for subscription. (B) Minimum Public offer: As per Rule 19(2) (b) of the Securities Contracts (Regulation) Rules. SEBI may. only in respect of a Government company defined under Section 617 of the Companies Act. relax this condition on the basis of recommendations of stock exchange(s). Post issue net worth (equity capital + free reserves excluding revaluation reserve) of Rs.

5% of the paid-up capital of the company individually or jointly with others except in case of Banks/Financial Investors/Overseas Institutions/Foreign Corporate Indians. 3 cores. 6. 2. 20 cores (net worth includes Equity capital and free reserves excluding revaluation reserves).The Governing Board of the Exchange at its meeting held on 6th August. Minimum market capitalization of the listed capital should be at least two times of the paid up capital. The company should have minimum issued and paid up equity capital of Rs. 60 Bodies and Institutional Non-Resident . 1. The revenues/profits arising out of extra ordinary items or income from any source of non-recurring nature should be excluded while calculating distributable profits. 4. Out of above Non Promoter holding no single shareholder should hold more than 0. The company should have a dividend paying track record for the last 3 consecutive years and the minimum dividend should be at least 10%. 5. The Company should have profit making track record for last three years. 3. These norms are applicable with immediate effect. Minimum net worth of Rs. Minimum 25% of the company's issued capital should be with Non-Promoters shareholders as per Clause 35 of the Listing Agreement. 2002 amended the direct listing norms for companies listed on other Stock Exchange(s) and seeking listing at BSE.

project and several other factors before taking decision in this regard.7. The committee evaluates the promoters. company. [III] MINIMUM REQUIREMENTS EXCHANGE FOR SEEKING RELISTING OF THIS COMPANIES DELISTED BY THIS EXCHANGE The companies delisted by this Exchange and seeking relisting are required to make a fresh public offer and comply with the prevailing SEBI's and BSE's guidelines regarding initial public offerings. The company should sign an agreement with CDSL & NSDL for Demat trading. [V] SUBMISSION OF LETTER OF APPLICATION 61 . The Exchange has since last three years formed a "Listing Committee" to analyze draft prospectus/offer documents of the companies in respect of their forthcoming public issues of securities and decide upon the matter of granting them permission to use the name of "Bombay Stock Exchange Limited" in their prospectus/offer documents. [IV] PERMISSION TO USE COMPANY'S PROSPECTUS THE NAME OF THE EXCHANGE IN AN ISSUER The Exchange follows a procedure in terms of which companies desiring to list their securities offered through public issues are required to obtain its prior permission to use the name of the Exchange in their prospectus or offer for sale documents before filing the same with the concerned office of the Registrar of Companies. 8. The company should have at least two years listing record with any of the Regional Stock Exchange.

1956. [VII] TRADING PERMISSION As per Securities and Exchange Board of India Guidelines. In the event of listing permission to a company being denied by any Stock Exchange where it had applied for listing of its securities. a company is required to complete allotment of securities offered to the public within 30 days of the date of closure of the subscription list and approach the Regional Stock Exchange. [VI] ALLOTMENT OF SECURITIES As per Listing Agreement. it cannot proceed with the allotment of shares. i. However.As per Section 73 of the Companies Act. a company seeking listing of its securities on the Exchange is required to submit a Letter of Application to all the Stock Exchanges where it proposes to have its securities listed before filing the prospectus with the Registrar of Companies.e. the issuer company should complete the formalities for trading at all the Stock Exchanges where the securities are to be listed within 7 working days of finalization of Basis of Allotment. Stock Exchange nearest to its Registered Office for approval of the basis of allotment. the company may file an appeal before the Securities and Exchange 62 . A company should scrupulously adhere to the time limit for allotment of all securities and dispatch of Allotment Letters/Share Certificates and Refund Orders and for obtaining the listing permissions of all the Exchanges whose names are stated in its prospectus or offer documents.

This amount is liable to be forfeited in the event of the company not resolving the complaints of investors regarding delay in sending refund orders/share certificates.000 2. 1956.Board of India under Section 22 of the Securities Contracts (Regulation) Act. The schedule of listing fees for the year 2004-2005. non-payment of commission to underwriters.000 63 - . Initial Listing Fees - 20. 5 cores 10. [VIII] REQUIREMENT OF 1% SECURITY The companies making public/rights issues are required to deposit 1% of issue amount with the Regional Stock Exchange before the issue opens. Annual Listing Fees (i) Companies with paid-up capital* up to Rs. brokers. etc. [IX] PAYMENT OF LISTING FEES All companies listed on the Exchange have to pay Annual Listing Fees by the 30th April of every financial year to the Exchange as per the Schedule of Listing Fees prescribed from time to time. prescribed by the Governing Board of the Exchange and approved by the Securities and Exchange Board of India is given here under: SCHEDULE OF LISTING FEES FOR THE YEAR 2006-2007 1.

the agreement is of great importance and is executed under the common seal of a company.for every increase of Rs. to furnish financial results on a 64 . a company undertakes. to forward copies of unabridged Annual Reports and Balance Sheets to the shareholders. amongst other things. In case of debenture capital (not convertible into equity shares) of companies. to provide facilities for prompt transfer. [X] COMPLIANCE WITH LISTING AGREEMENT The companies desirous of getting their securities listed are required to enter into an agreement with the Exchange called the Listing Agreement and they are required to make certain disclosures and perform certain acts. Under the Listing Agreement. 20 cores - 30. 20 cores will pay additional fee of Rs. 10 cores - 15.(ii) above 5 cores and up to Rs.000 (iii) Above Rs. to give proper notice of closure of transfer books and record dates. 10 cores and up to Rs. sub-division and consolidation of securities. the fees will be charged @ 25% of the fees payable as per the above mentioned scales. 1 cores or part thereof. 750/. As such. registration.000 3. to file Distribution Schedule with the Exchange annually. 4. Companies which have a paid-up capital* of more than Rs.

and takes penal action against the defaulting companies. The number of companies placed under this group as at the end of May.874. The number of companies listed at the Exchange as at the end of May 2001 was 5. submission of quarterly results. This is the highest number among the Stock Exchanges in the country and in the world. [XI] "Z" Group The Exchange has introduced a new category called "Z Group" from July 1999 for companies who have not complied with and are in breach of provisions of the Listing Agreement.475. requirement of minimum number of shareholders. intimate promptly to the Exchange the happenings which are likely to materially affect the financial performance of the Company and its stock prices. to comply with the conditions of Corporate Governance. etc. etc. 2001 was 1. especially with regard to timely payment of annual listing fees. 65 . The Listing Department of the Exchange monitors the compliance of the companies with the provisions of the Listing Agreement.quarterly basis.


But primary data collection had limitations such as matter confidential information thus project is based on secondary information collected through five years annual report of the company. money and efforts to collect the data. and for first time which is original in nature. Secondary data collection 1) Primary data collection method The primary data is that data which is collected fresh or first hand. Secondary data easily get those secondary data from records. Primary data can collect through personal interview. questionnaire etc. annual reports of the company etc. 2) Secondary data collection method The secondary data are those which have already collected and stored. balance sheets. head of SQC department and other concerned staff member of finance department. books etc. Primary data collection 2. It will save the time. This project is based on primary data collected through personal interview of head of account department. journals. Secondary data also made available through trade magazines. to support the secondary data. 1. The data collection was aimed at study of working capital management of the company 67 .Types of data collection There are two types of data collection methods available. supported by various books and internet sides.

Data analysis & Interpretation 68 .

Where do you invest your savings? OPTIONS NO OF RESPONDENTS Equity 59 Mutual fund 25 Fixed deposits insurance 9 7 INTERPRATATIONS: This figure says that most people go for at 1 st EQUITY investment then for MUTUAL FUND. FIXED DEPOSITS AND INSURANCE.Data analysis & interpretation: Q1. Because equity gives good return in short time as well as long term as compared to mutual fund 69 .

It signifies mostly more people go for share market as compared to mutual funds. Which sectors give more return? OPTIONS NO OF RESPONDENTS Share market 23 Mutual fund 77 INTERPRATATIONS: This pie chart shows that share market give return 77% as compared to mutual fund at 23% return.Q2. 70 .

In this area Sharekhan has its own research report and that strike rate has 80%. This is an advantage to the customers of Sharekhan. 71 . In this graph it is evident that mostly investment decision are taken on the insistence of the brokers firms and companies and that percentage is 36%.Q3. Your investment decisions are influenced by Options Oneself Broker Eco policies Market research Friends/relatives Any other No of respondents 24 36 20 12 8 INTERPRATATIONS: How do investors take their investment decisions is presented in this bar graph.

INTERPRATATIONS: That chat is show the satisfaction level of current investment( in share) and long term investment(mutual fund) than here shows that the satisfaction level in current investment (shares) is 58% and satisfaction in long term investment (mutual fund) is 42%.Q4. Are you satisfied with your current investment? OPTIONS YES NO NO OF RESPONENTS 42 58 . 72 .

future prospects at 12%.What are the factors which you considered before investing in particular company? OPTIONS NO OF RESPONDENTS Financial potions Current market position 24 36 Goodwill 20 Future prospects Any other 12 INTERPRATATIONS: What factors are necessary before the investment in company or in firm is show in this bar graph.Q6. most investors go for investment after seeing the current market positions and after that the financial position of company which is at 24%. 73 . It is evident that in the current market position accounts for 36% .and any other factors at 8%. then goodwill of company at 20%.

01% indiabulls 38 13.45% Voters: 300.23% sharekhan 70 23.33% any other 46 15.06% kotak 19 6.34% motilaloswal 11 3. INTERPRATATIONS: 74 . 300. What is the market of share khan in the earning share brokerage? Comparison between different broker company according to earn brokerage 5paise 40 13.05% hdfc 15 5.53% icicidirect 61 20.

OBSERVATIONS & FINDINGS 75 . share khan strike rate all things are shown share khan ‘s profit and market share.34% regarding to other firms and companies earning that is shown that satisfied level.Share khan earn more brokerage in share trading as compared to all the leading firms and companies and share khan get 284 vote and 23.

 mostly investment decision are taken on the insistence of the brokers firms and companies and that percentage is 36%. Because equity gives good return in short time as well as long term as compared to mutual fund. It is evident that in the current market position accounts for 36% . then goodwill of company at 20%. FIXED DEPOSITS AND INSURANCE.  the satisfaction level of current investment( in share) and long term investment(mutual fund) than here shows that the satisfaction level in current investment (shares) is 58% and satisfaction in long term investment (mutual fund) is 42%. In this area Sharekhan has its own research report and that strike rate has 80%.and any other factors at 8%.  77% as compared to mutual fund at 23% return. most investors go for investment after seeing the current market positions and after that the financial position of company which is at 24%.future prospects at 12%. This is an advantage to the customers of Sharekhan. It signifies mostly more people go for share market as compared to mutual funds.OBSERVATIONS & FINDINGS  Most people go for at 1st EQUITY investment then for MUTUAL FUND.  the investment in company or in firm is show in this bar graph.  Share khan earn more brokerage in share trading as compared to all the leading firms and companies and 76 .

CONCLUSION & SUGGESTION 77 . share khan strike rate all things are shown share khan ‘s profit and market share.34% regarding to other firms and companies earning that is shown that satisfied level.share khan get 284 vote and 23.

CONCLUSION The strategy adopted by me in completion of this project help me a lot till now in making comparison between share market and mutual funds. This strategy helped me in knowing the customer reaction towards share market. And in mutual funds there is less risk as the money of investors invested in different sectors so it can divide the risk in different portfolio adopted by mutual funds companies. In OJT the strategy adopted by me in achieving my target helped me a lot. 78 . From the analysis we can say that if there is more risk there is more return and we can say that share market is totally dependent on the risk taken by the investors in investing in shares. investors do not have active control on money invested by him/her. customer’s attitude towards share broking firms and in this I helped how to interact with the customers which is beneficial for me in future. We can also say that in share market customers is decision maker while in mutual funds investors is totally dependent on assets management company. At last I can say that money invested in this rise and fall market it is better to invest in mutual funds for those investors who are risk adverse and for those who are risk taker it is better for them to invest in share market.

Insurance should be covered especially fire in case of transit journey also. I am giving certain suggestions to the company which I hope may be helpful for the company. 79 . The buffer should be maintained incase of emergency.SUGGESTIONS After interpretation and analysis.  The company should utilize its stock more efficiently.  The company can reduce the time for purchase order.  The company should pay attention towards the proper and efficient utilization of working capital.

BIBLIOGRAPHY 80 .   www.BIBLIOGRAPHY    Training kit provided by Sharekhan  81  www.


QUESTIONNAIRE We are first year students of Graduate School of Business and Administration. Market Research v. Q2. Friends/Relatives vi. No 83 . Mutual Funds Are you satisfied with your current investment? i. Share market ii. Oneself ii. Insurance iv. Q3. Please circle or tick the appropriate option. Where do you invest your savings? i. Eco. Q1. conducting a survey on investor’s behavior and psychology. Yes ii. Q5. No Your investment decisions are influenced by i. An other Are you satisfied with company services? i. Q4. Fixed Deposits Which sectors give more return? i. Equity iii.Policies iv. Broker iii. We assure you that individual response will be kept confidential. Mutual funds ii. Yes ii.

Financial Position ii. Future Prospects v. Current Market Position iii. What are the factors which you considered before investing in a particular company? i. Goodwill iv./Mrs. __________________________________ Email ______________________________________ Occupation a) Government Employee b) Private Employee c) Self Employed d) Student E) Housewife Your monthly household income a) Less than 15000 b) 15001-25000 84 c)25001 and above .Q6. PERSONAL DETAILS: Name Mr./Miss__________________________ Address____________________________________ ___________________________________________ Phone No. Any others.