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project on sharekhan

1. 1. A Summer Internship Project Report On CONSUMER BEHAVIOR TOWARDS ONLINE


TRADING IN STOCK MARKET Submitted In the partial fulfillment of the degree of Master of
Business Administration Semester II Prepared By: GUJARATI MITESH K Enroll. No.:
137730592019 Guided By: PROF.SUNIL MASHRU Submitted to: GUJARAT TECHNOLAGY
UNIVERSITY
2. 2. DECLARATION I undersigned Mr Gujarati Mitesh student of SUNSHINE GROUP OF
INSTITUTIONS,M.B.A. SEMESTER II Rajkot, hereby declare that the all information of the
Project is my own work. This project report is correct and true to the best of my knowledge
and ability and has been presented here my level best under the supervision of my Professor
SUNIL MASHRU of Sunshine college rajkot. This Report has not been previously submitted
by the any other student for any Examination. Date: Place: RAJKOT Signature
_____________ (Gujarati Mitesh k.)
3. 3. PREFACE With every experience you alone are painting your own canvas, thought by
thought, choice by choice. This saying has played the guiding role in preparing this practical
financial project report of Sharekhan Ltd. This report has made it possible for us to practically
have a look at the financial conditions of the company. The Summer Internship Project
allows the student to expand their practical knowledge and helps us to study and read
business environment. This practical training inMasterof Business Administration curriculum
plays a vital role in understanding and knowing the difficulty and challenges in the business
world. Only theoretical knowledge does not impart complete education, practical experience
must be there in order to add some meaning to education. I have undergone my summer
training at Sharekhan Ltd.It is one of the leading broking house of the country. I feel great
pleasure to present this report work after my training at Sharekhan Ltd. that produced to be
golden opportunity for me by enriching my knowledge by comparing my theoretical
knowledge with the managerial skill and application.
4. 4. ACKNOWLEDGEMENT I Mitesh Gujarati student of M.B.A. feel great Pleasure to present
this report. I am thankful to all the persons who directly or indirectly helped me in the
preparation of this report. I am very thankful GUJARAT TECHNOLOGICAL UNIVERSITY for
introducing this subject in course, as one becomes aware of the practical aspect of life. I am
thankful to Sunshine college and to the respected Dean Dr. Nirmalkumar Sharma for giving
us such a valuable chance to go for Industrial Training and to do work on this report. I also
like to thanks Prof. Sunil Mashru who guided & motivated me in preparing the project report.
I am very much thankful to Mr. Bhavin Dhruve, Team Manager, of Sharekhan Ltd.for being a
helping hand in understanding all the details for preparation of this report.
5. 5. INDEX Sr. No. Particular Page No. 1. Executive Summary 2. Industry Overview: 1.2
Introduction to Stock Broking Industry 3. Company Overview: 2.1Sharekhan at Glance 2.2
Functional Areas of the Sharekhan 4. Research Methodology 3.1Research Objective 3.2
Research Methodology 3.3 Review of Literature 3.4 Research Analysis &
QuestionnaireInterpretation 3.5Limittions 5. Research Finding and Conclusion 3.1 Findings
3.2 Recommendations 3.3 Conclusion 6.s Bibliography and Annexure 4.2 Bibliography 4.3
Annexure
6. 6. EXECUTIVE SUMMARY This is a project report on Consumer behavior towards online
trading. which is made on the basis of summer internship done at Sharekhan stock broking.
The objective of the proposed study is to identify the specific factors that affect consumer
attitudes towards online share trading. The methodological approach to this study is
descriptive, because we attempt to identify and explain variables that exist in a given
situation and to describe the relationship that exists between these variables in order to
provide a picture of a particular phenomenon, but not to ferret out cause-effect relationship.
The primary data was collected through questionnaire filling. The secondary data was
collected through the internet. India has a large chunk of population which is at lower income
level and at middle income level. There is a need of creating awareness among them for
share trading and the tremendous potential it has. They are doing trading on the old methods
which were used in the past. Now with the advent of technology there are many options
available to the traders which they can use without any fear. The trend is moving towards the
online share trading but still it has a lot to cover. The traders are more of young age and
middle age and dont fear from risk taking but the lack of knowledge doesnt allows them to
do so. So the stock broking companies should take measures to empower the normal
investors so that they can trade with the latest technologies available.
7. 7. Target the youth as they are most potential customers of the stock market as their interest
towards stock trading is increasing. The stock broking companies should educate the
investors by giving them timely help in the form of reports and tips.The companies should try
to work in more transparent way. People want good services and are ready for paying extra
penny. People prefer Ease of transactions and security. As per my summer internship project
topic, Consumer Behavior towards Online Trading in Stock Market I choose 100 people as
the sample size as the part of research and most of the people who are traded in stock
market they are doing it offline. So, there is the more scope of online trading customer and
they can also try to convert the offline customer into the online trading customer. And they
can also catch the attention of those who are investing in Mutual Fund. They have to attract
the more businessmen and the employees who are working in private or public sector.
8. 8. INTRODUCTION Securities market has essentially divided into three categories of
participants, namely the issuer of securities, investors in securities and the intermediaries.
The security market has two interdependent and inseparable segmentsthe Primary Market
and the Secondary Market. Primary Market: The primary market is the part of the capital
market that deals with issuing of new securities. Companies, government or public sector
institutions can obtain funds through the sale of a new stock or bond issues through primary
market. Secondary Market: A market where investors purchase securities or assets from
other investors, rather than from issuing companies themselves. The national exchange
such as the New York Stock Exchange and the NASDAQ are secondary markets.
9. 9. 1987 Stock holding corporation of India set up. 1986 The BSE 30 share sensitivity
index (a.k.a. the sensex) compiled; updated every two minutes. 1982 The BSE classifies
scripts into group A for carry forward, and group B for cash transaction. 1957 The BSE
and eight other stock exchange registered under the securities trading contract act. 1956
Securities contract regulation Act passed. 1875 Brokers organized an association known
as the native share brokers association, and the countrys first stock exchange the Bombay
stock exchange (BSE), set up in Mumbai with 318 members. The membership fee gradually
increased from Rs 1 in 1887 to Rs 1000 in 1896, and Rs 48000 in 1920. 1850 Shares of
banks and securities of east India Company traded in Mumbai under a sprawling banyan tree
in front of town hall, which is now in the honiman circle park. HISTORY
10. 10. 2000 The SEBI approves the reports on net trading brought out by the SEBI
committee on net based trading and services. Pursuant to the circular , stock exchanges are
require to give permission to members to start net based trading after ensuring fulfillment of
the minimum conditions. 1996 NSE 50 index launched April 22. NSDL set up as the first
depositary in India, and the NSE commences trading in dematerialized securities on
December 26. 1995 the BSE computerizes its trading operation , signaling the end of 120
years of floor trading with open out cry system of share trading and the beginning of screen
based trading on the BSE. 1994 The NSEs debt segment begins operation on June 30;
and the capital market segment begins online script less trading on November 3. 1992
Ordinance promulgated for granting statutory powers to the SEBI. The over- the counter
exchange of India begins operations. The national stock exchange incorporated.
11. 11. It also strives to educate and enlighten the investors by conducting investor education
program and making available to them necessary informative inputs. The Exchange, while
providing an efficient and transparent market for trading in securities, debt and derivatives
upholds the interests of the investors and ensures redressal of their grievances whether
against the companies or its own member-brokers. It has evolved over the years into its
present status as the premier Stock Exchange in the country. It is the first Stock Exchange in
the Country to have obtained permanent recognition in 1956 from the Govt. of India under
the Securities Contracts (Regulation) Act, 1956. It is a voluntary non-profit making
Association of Persons (AOP) and is currently engaged in the process of converting itself
into demutualized and corporate entity. The Stock Exchange, Mumbai, popularly known as
"BSE" was established in 1875 as "The Native Share and Stock Brokers Association". It is
the oldest one in Asia, even older than the Tokyo Stock Exchange, which was established in
1878. BSE (BOMBAY STOCK EXCHANGE)
12. 12. NSE has been able to take the stock market to the doorsteps of the investors. The
technology has been harnessed to deliv NSE was incorporated in 1992 and was given
recognition as a stock exchange in April 1993. It started operations in June 1994, with
trading on the Wholesale Debt Market Segment. Subsequently it launched the Capital
Market Segment in November 1994 as a trading platform for equities and the Futures and
Options Segment in June 2000 for various derivative instruments. NSE (NATIONAL STOCK
EXCHANGE) The standards set by the exchange in terms of market practices, Products,
technology and service standards have become industry benchmarks and are being
replicated by other market participants. It provides a nation-wide, screen-based, automated
trading system, with a high degree of transparency and equal access to investors
irrespective of geographical location. The high level of information dissemination through on-
line system has helped in integrating retail investors on a nation-wide basis. er the services
to the investors across the country at the cheapest possible cost.
13. 13. National Commodity & Derivatives Exchange Limited (NCDEX) is a professionally
managed online multi commodity exchange promoted by ICICI Bank Limited (ICICI Bank),
Life Insurance Corporation of India (LIC), National Bank for Agriculture and Rural
Development (NABARD) and National Stock Exchange of India Limited (NSE). Punjab
National Bank (PNB), CRISIL Limited (formerly the Credit Rating Information Services of
India Limited), Indian Farmers Fertilizer Cooperative Limited (IFFCO) and Canara Bank by
subscribing to the equity shares have joined the initial promoters as shareholders of the
Exchange. NCDEX is the only commodity exchange in the country promoted by national
level institutions. This unique parentage enables it to offer a bouquet of benefits, which are
currently in short supply in the commodity markets. The institutional promoters of NCDEX
are prominent players in their respective fields and bring with them institutional building
experience, trust, nationwide reach, technology and risk management skills. NCDEX is a
public limited company incorporated on April 23, 2003 under the Companies Act, 1956. It
obtained its Certificate for Commencement of Business on May 9, 2003. It has commenced
its operations on December 15, 2003. NCDEX is a nation-level, technology driven de-
mutualized on-line commodity exchange with an independent Board of Directors and
professionals not having any vested interest in commodity markets. It is committed to provide
a world-class commodity exchange platform for market participants to trade in a wide
spectrum of commodity derivatives driven by best global practices, professionalism and
transparency.
14. 14. NCDEX is providing attractive products like weather derivatives. Cashew Castor Seed
Chana Chilli Coffee - Arabica Coffee - Robusta Common Raw Rice Common Parboiled Rice
Crude Palm Oil Cotton Seed Oilcake Expeller Mustard Oil Grade A Parboiled Rice Grade A
Raw Rice Groundnut (in shell) NCDEX is working with tax officer to make clear different
types of sales and service taxes. To avail farmers from risk of fluctuation in prices NCDEX
provides special services for agricultural. To prepare guidelines related to special products
of securitization NCDEX works with bank. By collaborating with industrial partners,
industrial companies, news agencies, banks and developers of kiosk network NCDEX is able
to provide current rates and contracts rate. NCDEX has developed facility for checking of
commodity and also provides a ware house facility. FACILITIES PROVIDED BY NCDEX:
15. 15. Groundnut Expeller Oil Guar gum Guar Seeds Gur Jeera Jute sacking bags Lemon Tur
Indian Parboiled Rice Indian Raw Rice Indian 28 mm Cotton Indian 31 mm Cotton
Maharashtra Lal Tur Masoor Grain Bold Medium Staple Cotton Mentha Oil Mulberry Green
Cocoons Mulberry Raw Silk Mustard Seed Pepper Raw Jute Rapeseed-Mustard Seed
Oilcake RBD Palmolein Refined Soy Oil Rubber Sesame Seeds Soyabean Sugar Yellow
Soybean Meal Turmeric Urad V-797 Kapas Wheat Yellow Peas Yellow Red Maize
16. 16. MCX an independent and de-mutulised multi commodity exchange has permanent
recognition from Govt. of India for facilitating online trading, clearing and settlement
operations for commodity futures markets across the country. Key shareholders of MCX
include Financial Technologies (I) Ltd., State Bank of India (Indias largest commercial bank)
& associates, Fidelity International, National Stock Exchange of India Ltd. (NSE), National
Bank for Agriculture and Rural Development (NABARD), HDFC Bank, SBI Life Insurance Co.
Ltd., Union Bank of India, Canara Bank, Bank of India, Bank of Baroda and Corporation
Bank. Headquartered in Mumbai, MCX is led by an expert management team with deep
domain knowledge of the commodity futures markets. Through the integration of dedicated
resources, robust technology and scalable infrastructure, since inception MCX has recorded
many first to its credit. Inaugurated in November 2003 by Shri Mukesh Ambani, Chairman &
Managing Director, Reliance Industries Ltd, MCX offers futures trading in the following
commodity categories: Agri Commodities, Bullion, Metals- Ferrous & Non-ferrous, Pulses,
Oils & Oilseeds, Energy, Plantations, Spices and other soft commodities. MCX has built
strategic alliances with some of the largest players in commodities eco-system, namely,
Bombay Bullion Association, Bombay Metal Exchange, Solvent Extractors' Association of
India, Pulses Importers Association, Shetkari Sanghatana, United Planters Association of
India and India Pepper and Spice Trade Association.
17. 17. Commodities Gold, Gold HNI, Gold M, I-Gold, Silver, Silver HNI, Silver M Castor Oil,
Castor Seeds, Coconut Cake, Coconut Oil, Cottonseed, Crude Palm Oil, Groundnut Oil,
Kapasia Khalli (Cottonseed Oilcake), Mustard /Rapeseed Oil, Mustard Seed (Sirsa), RBD
Palmolein, Refined Soy Oil, Refined Sunflower Oil, Sesame Seed, Soymeal, Soy Seeds
Cardamom, Jeera, Pepper, Red Chilli Aluminium, Copper, Lead, Nickel, Sponge Iron, Steel
Flat, Steel Long (Bhavnagar), Steel Long (Gobindgarh), Tin, Zinc Cotton Long Staple ,
Cotton Medium Staple, Cotton Short Staple, Cotton Yarn, Kapas Chana, Masur, Tur, Urad,
Yellow Peas, Basmati Rice, Maize, Rice, Sarbati Rice, Wheat Brent Crude Oil , Crude Oil ,
Furnace Oil Middle East Sour Crude Oil
18. 18. Arecanut, Cashew Kernel, Rubber High Density Polyethylene (HDPE), Polypropylene
(PP), PVC Guar Seed, Guar gum, Gurchaku, Mentha Oil, Potato, Sugar M-30, Sugar S-30,
19. 19. BRIEF INTRODUCTION TO ONLINE STOCK MARKET TRADING Investors who are
trading over the Internet or online need to know how they can protect themselves against
unexpected losses (especially in fast-moving markets) and what additional steps to take in
order to guard themselves against the typical problems of online trading. Online trading may
be quick and easy but it still requires time and efforts. You can buy or sell stocks from a great
number of online brokers with just a click of your mouse. However, do not forget that making
wise investment decisions takes time. Online trading may be seamless and quick but it is not
always in stantaneous. A number of technological problems can actually slow or prevent
your orders from reaching your online firm. Some of them include: a slow modem, computer,
or Internet Service Provider at the investor's end, heavy Internet traffic that is slowing, down
overall usage, inadequate hardware at the broker-dealers end, etc. No regulations require
that a trade should be executed within a certain time. If you are unable to access your
account online you should know what other options for placing a trade you have. Your online
trading firm may allow touch-tone telephone trades, ordering by calling your broker, or
placing your order. Have in mind that sometimes turning to one of these options may
increase your costs, and other times you may still experience delays when using them.
Sometimes investors place an order, mistakenly assume that it hasn't been executed, and
place another order again. Thus, they end up either selling stocks
20. 20. they do not own, or owning twice as much they wanted. If you are unsure whether your
original order was executed, don't rush in to placing it again. Talk to your firm and clarify how
to handle such situations. In other cases, investors don't make sure that the transaction
hasn't been executed when they cancel an order. You should know that you may receive an
electronic receipt for the cancellation but your trade may still not have been canceled. Talk to
your firm and ask them how you can check to see if a cancellation has really worked. Limit
your possible losses by setting limit orders on fast-moving stocks. By placing a regular
market order, you don't have control over the price at which the order will be filled. You
hardly want to buy or sell stocks at a price that is higher or lower than the one you have in
mind so you better place a limit order. A buy limit order will be executed only at a price that is
not higher than your preliminarily set limit price. A sell limit order on the other hand will be
executed at the limit price or higher. If you have a complaint, act promptly.
21. 21. TRANSECTION CYCLE Placing Order Decision to trade Settlement of trades Trade
Execution Clearing of Trades Funds or Securities Transaction Cycle
22. 22. ADVANTAGES OF ONLINE STOCK TRADING 1. Time Customers can trade online with
a real time basis and buying and selling of shares happens with a press of a button. 2.
Flexibility Customers can modify the placing orders according to the market movements. 3.
Standardized Procedures When the order is accepted by the exchange, it will give pay-in
and pay-outdates and customer can easily expect the cash or shares to be credited to his
account. 4. One stop shop Bank statements and transaction statements can be viewed at the
click of a button. 5. Informed Researches Service providers carry stock analysis like intraday
and EOD (End of day) technical charting which helps the customer to make right choices 6.
Flexibility of timing Customers can place orders before start of a trading session
23. 23. DISADVANTAGES OF ONLINE STOCK MARKET TRADING 1. Forgetting You Are
Using Real Money In recent decades, people have become very accustomed to doing both
work and play in front of a computer monitor. When you're so immersed in an online task, it's
possible to become detached. This can cause users of online investing firms to forget that
they are using real money as they trade on the brokerage's website. Investors may make
mistakes because they make trading decisions too quickly and get caught up in the ease of
using the technology. 2. Lack of a Broker/Investor Relationship When you invest with a
traditional brokerage firm, there is a relationship with the broker, who can become an
investing mentor. The broker provides advice and guidance to the investor. This is beneficial
relationship to both parties, as the investor gets the broker's financial expertise and the
brokerage firm gets extra fees from clients if its portfolio grows in size. With an online trading
firm, all portfolios are self-directed, which means users need to have at least a working
knowledge of the financial markets to make informed decisions. Many investors simply don't
have enough time to follow the financial markets, especially on a daily basis. This can cause
them to make inappropriate investments due to a lack of complete information. 3. No Time to
Learn Online Programs Online brokerage firms claim their software is easy, but this isn't
always the case. Often, the software is complicated, with several different options and
calculators, and no instructions on how to actually use them. People who don't learn
software quickly may not master all the ins and outs of the program.
24. 24. COMPANY DETAILS Sharekhan EQUITIES & DERIVATIVES PORTFOLIO
MANAGEMENT AND STRUCTURED PRODUCTS DEPOSITORY SERVICES RESEARCH
IPO, MUTUAL FUND Your Guide to the Financial Jungle COMMODITIES
25. 25. venture into institutional broking and corporate finance 18 years ago SSKI group also
comprises institutional broking and corporate finance 18 years ago. While the institutional
broking division caters to the largest domestic and foreign institutional investors, the
corporate finance division focuses on niche areas such as infrastructure, telecom and media.
SSKI holds a sizeable portion of the market in each of these segments. SSKI is the only
domestic player in a market crowded by 44 multinational securities firms. Founding
member of the stock exchange, Mumbai and pioneer institutional broker. SSKI HISTORY S.
S. KANTILAL ISHWARLAL SECURITEIS PRIVATE LTD. In 1922 Sharekhan,was founded
as SSKI (ShantilalShevantilalKantilalIshwarlal) and later on it is renamed as Sharekhan Ltd.
And it is one of Indias oldest brokerage houses having over eighty years of broking
experience.
26. 26. Its research team is rated as one of the best in the industryacross retail It acts as a
pioneer of investment research in the Indian market aimed at generating quick investment
ideas. Research group was set up in December 1992 Retail broking started in 1985
predecessor of investment research in the Indian market, SSKI provide the best research
coverage amongst broking houses in India. The companys research team was set up in des.
1992 and is rated as one of the best in the country. Voted four times as the top domestic
brokerage house by Asia money survey, SSKI is consistently ranked amongst the top
domestic brokerage houses in India. & SSKI named its online division as share khan on
February 8, 2000 coinciding with the launch of its website. The private equity deals sum
over US$ 1 billion. Its daily turnover average to US$ 2 million. It occupies 65% of
business share from foreign institutional investors. It has over 60 institutional client spread
over India, Far East, UK and US. It commands good market share of the institutional
business. It is an integrated equity solution provider. Group interest in investment
banking, institutional broking and retail broking. institutional.
27. 27. To empower the investor with quality advice and superior service to help him take better
investment decisions. We believe that our growth depends on client satisfaction. MISSION
STATEMENT ..to educate and empower the individual investor to make better investment
decisions through QUALITY ADVICE INNOVATIVE PRODUCTS and SUPERIOR
SERVICEVISION
28. 28. Efficiency and effectiveness built on ethical practices. Respond to progressive
globalization and achieving international standards. Continuous up-gradation with changing
technology, while maintaining human values. To provide the best Customer Service and
Product Innovation tuned to diverse needs of clientele.
29. 29. ABOUT SHAREKHAN 1. Earlier Name: Shantilal Shevantilal Kantilal Ishwarlal Securities
Pvt. Ltd. 2. New Name: Sharekhan Ltd. 3. Year of Establishment: 8 February, 2000 4. Head
Office: Sharekhan Ltd. A 206, Phoenih House, BaptaMarg, Lower Parle, Mumbai 400013
5. Promoter: Shripal Morakhiya Shreyas Morakhiya 6. Chief Executive Officer:Tarun P. Shah
7. Director of Operation: Shankar Valiya 8. Director of Product: Jaideep Arora 9. Branch
Address: 103/104, Sakar Complex, Dr. Radhakrishna Road, Opp. Rajkumar College, Rajkot
360001 10. Branch Manager: Mr. Malay Popat 11. Web-site: www.sharekhan.com 12.
Phone No.: 0281-2482483 / 4
30. 30. SSKI group corporate structure Owns 56% of Owns 50.5% of SSKI Securities Pvt. Ltd.
Morakhia Family & Associates SSKI Corporate Finance Pvt. Ltd. 50.5% SSKI Securities Pvt.
Ltd. 49.5% Morakhia Family Chart-1 SSKI Investor Securities Pvt. Ltd. Retail broking arm of
the group Shareholding Pattern: 55.5% Morakhia Family (Promoters) 18.5% HSBC Pvt.
Equity India Fund Ltd. 18.5% First Carlyle Ventures, Mauritius 7.5% Intel Pacific Inc.
Investment banking arm of the group Shareholding Pattern: SHAREHOLDERS &
SHAREHOLDING PATTERN: Table- 1 Sr. No. Shareholders Holding % 1 Citi Venture
Capital & Other Private Equity Firms 81 2 IDFC (Infrastructure Development Finance
Company) 9 3 Employees 10
31. 31. PRICING POLICY OF SHAREKHAN:- Parameters A/c Opening Fee Brokerage Interface
Trading A/c Demat Delivery Square Off Banks Associated with ShareKhan 400 NIL 0.40 0.07
HDFC, AXIS, OBC, IDBI, ICICI, IndusInd, SBI, UBI, BOI ICICI Direct 750 NIL 0.75 0.18 ICICI
Bank Indiabulls 750 250 0.40 0.10 N.A. Kotak Street 500 N.A. 0.50 0.06 Kotak Bank &
Citibank HDFC Securities 700 NIL 0.50 0.15 HDFC & Other 4 Banks
32. 32. Bank FD Insurance Mutual Funds Institutional Investors SUBSTITUTES HUF
MF Companies HNIs Partners Franchise/Business Small Investors MotilalOswal
Securities Ltd BUYERS India Bulls Kotak Securities Ltd 5paisa.com ICICI Web Trade
Ltd NCDEX COMPETITORS MCX BSE NSE CSDL NSCL Web maintainers
Various Banks SUPPLIERS Investment INDUSTRY ANALYSIS USING PORTERS (5
FORCES MODEL) POTENTIAL ENTRANT
33. 33. Scalable to 750000 at very low cost/time Human capital 1. 1650 employees and growing
low turnover rate compared to Industry. 2. Standards performance- driven work ethics.
Brands One of the most visible brands since inception among the top 3 Retail brokers in
India. Table-2 (* Data as per the Sharekhan Value Guide, JUNE 2014) Processing 150000
transactions everyday 575 cities* Technology Robust platform 1950 Share Shops* 279
franchisees + 115 branches * (Chart 2) SWOT Analysis 1. Strength of Sharekhan Scale
Growing retail network across
34. 34. Introduction of new technology Competition from major stock brokers and new entrance
Increasing interests and knowledge of people towards share market 4. Threats to
Sharekhan Scope of expansion No. of trading centers are less compared to other stock
broking companies. 3. Opportunities to Sharekhan Lack of enough promotional measures
or advertising 2. Weakness of Sharekhan
35. 35. WHAT DOES SHARE KHAN OFFER?
36. 36. Share khan offers online trading account through which a customer can buy and sell
shares in an instant from any part of the global trough website. It does not take account any
type of physical restriction of going to the broker for carrying out a transaction or any type of
settlement of payment. It facilitates the customer a speedy and hassle free transaction.
Share khans product consists of a 3-in-1 concept, which integrates; 1. Trading account 2.
Demat account 3. Linking with the saving account. Through its trading account, a share khan
customer can directly transfer his fund from his savings bank account affiliated to share khan
to his trading account without any paper work. He can buy and sell shares from the website
and also view the market prices of the shares he trades on the terminal. To open an account
a customer requires filling up a form consisting of agreements, a passport size photograph, a
residential proof, a photo id proof and a cheque drawn of respective amount in favor of
S.S.kantilalishwarlal securities private Ltd. After opening an account with share khan, a
customer will be given user id, membership password and trading password, which will
enable him to access his account and trade.
37. 37. Personalized attention. Substantial shareholding by prestigious foreign institution.
Stability and security. Wealth of content and tools to help you make sound investment
decisions. Alpha Delivery Portfolio Doctoring Depository services. RESEARCH
DEPARTMENT All the suggestion, tips and high performance trading recommendation are
received from the research team of share khan consisting of 38 dedicated analysts who have
years of working experience in the industries that they track, and a proven track record in
using their knowledge of the investment science to deliver results. Share khan boasts of
strike rates as high as 70-90% in booking recommendations in the money. The company
believes in not to lose money and to make some.
38. 38. PRODUCT AND SERVICES OFFERD BY SHAREKHAN 1. Sharekhan Depository
Services Dematerialization and trading in the demat mode is the safer and faster alternative
to the physical existence of securities. Demat as a parallel solution offers freedom from
delays, thefts, forgeries, settlement risks and paper work. This system works through
depository participants (DPs) who offer demat services and the securities are held in the
electronic form for the investor directly by the Depository. Sharekhan Depository Services
offers dematerialization services to individual and corporate investors. Sharekhan is a
registered Depository Participant (DP) with National Securities Depository Ltd. (NSDL). It has
a team of professionals and the latest technological expertise dedicated exclusively to our
demat department, apart from a national network of franchisee, making our services quick,
convenient and efficient. At Sharekhan, the commitment is to provide a complete demat
solution which is simple, safe and secure. 2. Investment Avenues a. Equity Shares Equity
shares represent ownership capital. As an equity shareholder, you have an ownership stake
in the company. This essentially means that you have a residual interest in income and
wealth. Perhaps, the most idealistic among various investment avenues, equity shares are
classified into the blue chip shares, growth shares, income shares, cyclical shares,
speculative shares by stock market analysts.
39. 39. 3. Mutual Funds: Instead of directly buying equity shares and/or fixed income
instruments, you can participate in various schemes floated by mutual funds which, in turn
invest in equity shares and fixed income securities. 4. Life Insurance: In a broad sense, life
insurance may be viewed as an investment. Insurance premiums represent the sacrifice and
the assured sum of the benefits. 5. Precious Objects: Precious objects are items that are
generally small in size but highly valuable in monetary terms. Some important precious
objects areGold and Silver, Precious stones or Art objects
40. 40. In this market not only producer and seller are included but arbitrageur, speculator, and
hedger can tread. In this way the total area of market will become broad. If sellers and
buyers come together at a place then it will create a market. Here against one seller there
will be more than one buyer. In this market buyers will come across the country for
transactions. Futures 7. Commodity: Today the business is not limited to our area only.
Where the production is less but, demand is comparatively high prices of the product will go
up. On the contrary where the production is high but demand is comparatively low the prices
will go down. Options 6. Financial Derivatives: The most important financial derivatives
from the point of view of investors are;
41. 41. They use futures or options markets to reduce or eliminate this risk. They wish to
eliminate or reduce the price risk to which they are already exposed. Hedgers face risk
associated with the price of an asset. Hedgers In our country agricultural products from
25% of GDP. Total turnover of commodity of market is nearly Rs.1, 10,000 corers. In which
60,000 corers comes from agriculture and left is coming from coal, crude, etc. Today in our
country most of the trade is done in unorganized market. In the market current and future
contracts are done. Promissory contracts have been started science 1875. But due to some
restriction it was not properly worked. Presently nearly in 122 commodities tread is being
done. 8. Currency Currency futures are standardized foreign exchange contracts traded on a
recognized stock exchange to buy or sell one currency against another on a specified future
date, at a price specified on the purchase or sale date. It is a contract to exchange one
currency for another currency at a specified date and a specified rate in the future.
Therefore, thebuyer and the seller lock themselves into an Exchange Rate for a specific
value or delivery date. There are three participants of currency:
42. 42. e.g. If they see the future price of an asset getting out of line with the cash price, they
would take offsetting position in two markets to lock in the Profit. They profit from price
differential existing in two markets by simultaneously operating in two different markets
They work for making Profits by taking advantage of discrepancy between prices of the same
product across different markets. Arbitragers As a result of this leveraged speculative
position, they increase the potential for large gains as well as large losses. Futures and
Options contracts can give them leverage(i.e. by putting in small amounts of money upfront,
they can take large position in the market) Participants who wish to bet on future price
movements of an asset. Speculators
43. 43. MARKETING DEPARTMENT The main aim of marketing activities at Sharekhan is that
the customer should get enough guidance to join the company and how he can get the best
service than any other stockbroker. There is an officer for handling the marketing activities
followed by two executives and it is not limited to them but the other people are also having
some responsibilities to increase the no. of clients and retain them by providing them the
services needed by them. There are many services those are designed such that the specific
target segments of the customers are covered and the products are positioned in the minds
of customers as the best one in India. The services are as given below: Sharekhan is Indias
leading national network of stock-broking outlets. It is having the largest retail distribution
chain in India. Sharekhan is not only a share-broking firm, but it avails of various services
and other financial products to its clients. 1. Offline Trading facility 2. Online BSE and NSE
executions (through BOLT, i.e. BSE Online Trading and NEAT, i.e. National Exchange
Automated Trading) 3. Free access to investment advice from Sharekhans Research team.
4. Derivatives trading, i.e. Futures and Options (through NEAT F&O) 5. Internet based online
trading. 6. Other investment products: Mutual Funds, RBI Bonds, Insurance, etc
44. 44. FREE ACCESS TO INVESTMENT ADVICE THROUGH R&D The Research and
Development at Sharekhan is done at its Head office Mumbai. From there it forwards the
relevant data and tips on particular shares and scripts at the relevant time. The R&D
department Head Mr. HemangJani forwards all the details regarding all stocks and scripts to
all the branches through internet. At the end of each trading day there is a Teleconference,
through which the R&D department Head Mr. HemangJani talks with each Branch heads and
discusses about each days closing position and shows their predictions about next days
opening position. The quarries regarding stock positions and other relevant matter of the
branch heads of each branch is being solved through teleconference. The various
publications of Sharekhan viz. Commodities Buzz, Commodities Beat, Commodity Traders
corner, Sharekhan Xclusive, etc. are being prepared by the research team of Sharekhan
made up of highly experienced people from diverse field ONLINE IPO Online IPO (Initial
Public Offering) is a new service started by Sharekhan for providing the application form of
any companys issues of just like the TCS issue can be subscribed by filling an online form to
reduce the paper work and the fund transfer facility is also provided to the clients for
transferring the funds online. It is given on its web-site for helping the clients who are not
able to collect the forms manually and the speed of filling and reducing the risk of misplacing
of forms, not reaching in time, etc.
45. 45. MARKETING MIX The marketing mix of Sharekhan is an excellent example we have
seen in the industry because no other brokering organization has such products to target the
investors of different minds, incomes and aims. There is an objective of satisfying the
customer as to make him delighted with affordable prices and convenient services. The
fourth P of the marketing mix is the best at Sharekhan in India because the total no. of share
shops are widespread all over to have the maximum contacts and awareness about
Sharekhan, and we can say that it has achieved that because it is having the maximum
turnover than any other broker in India. The Classic, Speed Trade and Speed Trade Plus are
the trading products, which are one of the bests in the market. The marketing is done based
on leads generated through the web contact; tele-contact and personal contact with the
customer and is a planned procedure to find out new customers. The marketing
management is carried out in an excellent way at Sharekhan.
46. 46. PRODUCTS OF SHAREKHAN Sharekhans products are basically divided into online
and offline products. Off - Line Other Services Other Services: SHAREKHAN Trade tiger On
- Line Classic Speed Trade 1. Equity Trading 2. Depository Services 3. Commodity Trading
4. Derivative Trading (F&O) 5. Mutual fund 6. Portfolio Management Services 7. IPO 8.
Insurance 9. Currency 10. NSEL Dial and Trade
47. 47. OFF-LINE TRADING ACCOUNT: The Off-Line account is trading account through which
one can buy and sell through his/her telephone or by personal visit at sharekhan shop. This
a/c is for those who are not comfortable with computer and want to trade. ON-LINE
TRADING ACCOUNT: The Online trading facilities provided by Sharekhan is basically
divided into two types of accounts, viz. Classic Account and Speed trade Plus and Streamer.
1. Classic Account The CLASSIC ACCOUNT is a Sharekhan online trading account, through
which one can buy and sell shares through our website www.sharekhan.com in an instant.
Along with enabling access for you to trade online, the CLASSIC ACCOUNT also gives you
our Dial-n-Trade service. With this service, all you have to do is dial 1- 600-22-7050 to buy
and sell shares using your phone. 9 Features of the CLASSIC ACCOUNT that enable you to
invest effortlessly- 1. Online trading account for investing in Equities and Derivatives via
sharekhan.com 2. Integration of: Online trading + Bank + Demat account 3. Instant cash
transfer facility against purchase & sale of shares 4. Reasonable transaction charges 5.
Instant order and trade confirmation by e-mail 6. Streaming quotes 7. Personalized market
watch 8. Single screen interface for cash, derivatives and more
48. 48. 9. Provision to enter price trigger and view the same online in market watch 2. Speed
Trade: SPEEDTRADE is an internet-based software application that enables you to buy and
sell shares in an instant. Its ideal for active traders and jobbers who transact frequently
during day's trading session to capitalize on intra-day price movements. Speed Trade also
provides the features of and functionality of trading in derivatives from the same single-
screen interface. 7 Features of Speed trade Plus that enable you to trade effortlessly- 1.
Instant order Execution & Confirmation 2. Single screen trading terminal 3. Real-time
streaming quotes, tic-by-tic charts 4. Market summary (most traded scrip, highest value) 5.
Hot keys similar to a brokers terminal 6. Alerts and reminders 7. Back-up facility to place
trades on Direct Phone lines
49. 49. ShareKhan has tie up with 13 banks through which one can transfer or withdraw his fund
online. Which are as follows: 1. HDFC Bank 2. IDBI Bank 3. AXIS Bank 4. OBC Bank 5.
CITY Bank 6. Indusind Bank 7. Union Bank of India 8. ICICI Bank 9. SBI Bank 10. BOI Bank
Anyone who have A/C either of above banks they can use this facility. Otherwise one has to
make fund transfer or withdraw by cheque. For 1st Year Demat A/C is Free, from 2nd Year
AMC charge is 400 per/year. A/C Opening Charges Rs.1000 (onetime Charge).
50. 50. The HR and Operations are one of the best at Sharekhan to help the customers for
getting the needs fulfilled with a family culture and atmosphere of harmony, peace and
brotherhood and it is focusing on the specific segments like HNI, Delivery-based and Intra-
day trader The excellent marketing mix i.e., the Product-Price-Place-Promotion and for
services additional 3Ps viz. People, Process and Physical evidence, are managed according
to the needs of the customers and try the best to deliver the maximum value to the
customers for what they pay a price. PROMOTION Promotional activities at Sharekhan are
done by web, e-mails and personal contact. Sharekhan is also organizing seminars and
presentations and promotes its services to the clients. It is spending Rs.20000 per month for
promotional activities. As explained earlier, Sharekhan is having the largest distribution chain
of retail outlets of share shops. And it can be seen also because there are 180 share shops
in 90 cities, which gives the maximum awareness to Sharekhan. The distribution of
Sharekhan is also proved by its turnover and awareness among the investors in the stock
market. The marketing strategies followed by Sharekhan at this point are as given below:
51. 51. FINANCE DEPARTMENT Like blood is the most important factor in our body, Finance is
the blood of any business. Finance is needed for all the activities like production or services
as well as their distribution. The finance department directly influences all the functions of the
other departments. Also finance has to give equal importance to all departments. Finance is
that administrative area or set of administrative function in an organization may have the
means to carry out its objective as satisfactorily as possible. Sharekhan has special accounts
department for separate calculation of pay-in and pay-out of funds according to the clients
Profit/Loss. Finance management is done at Sharekhan is done by managing the stocks in
the demat accounts and funds in the margin & trading FINANCE DP ACCOUNT Finance is
the lifeblood of an organization to continue its activities and the finance management at
Sharekhan can be divided into two major parts viz. DP (Depository Participation) and
Accounts management, which are shown in the figure given above.
52. 52. DP is treated as a separate department at Sharekhan and is covered in the back office
management in the organization structure. In simple words, DP means providing the facility
to the clients for managing the stock bought/sold by them. DP covers two major
terminologies viz. settlements and the auction which is a part of managing demat account.
Settlements as defined by SEBI (Securities Exchange Board of India) are T+2, currently and
it means that the demat account of the clients are prone to be sufficient for selling a script
with no debit at all, i.e., the account must have the sold amount of stock to fulfill the
settlement after 2 days from trade-day. The settlements for Day-Traders is not needed
because they buy/sell stocks in that particular day, only the delivery trades are needed to be
settled because if you sell 1000 shares of, say SAIL then your account must have the stock
before you sell it or it must be there in you demat before the next days trading begins
(market opens). Generally, the timings are 9:30 and 3:00 as a deadline for the client and he
must provide the stock for giving a delivery to the buyer. The chart show the total transaction
between two clients: C DP (Sharekhan) E DP (anyone) C The chart shows the process that
the request for selling and buying passes through the DPs of the respective clients and
finally the exchanges like SKSE (Saurashtra Kutch Stock Exchange) becomes the controlling
intermediary for the delivery of stocks and this process is done in two days. Nowadays, as
banks are becoming fast for E-Fund Transfer (EFT) and Phone-banking is getting more
popularity, SEBI is thinking to make the financial market of India to have a maximum speed
of
53. 53. transactions just like the other nations in the world and proposing for T+1 settlement
scheme but the system is not enough competent for that thing. The client, if not capable of
providing the delivery of say, 1000 shares of SAIL then the Auctions are initiated by the
exchanges and the client has to pay for the price prevailing in the market with 4-5% penalty.
The penalty can go on maximum to 20% more than the market price of the sold stock.
Generally, it is known as a buying auction and a same kind of auction is for selling the stock
for which the buyer was proved unable to pay the price is carried out by exchange, known as
the selling auction. And a debit or credit note is provided in the respective case of auction to
the clients, i.e., for buying auction debit note is given on the T+4 basis and in case of selling
auction the credit note is given on T+5 basis. There are two types of auctions called as
Internal auctions & Market auctions, the internal auctions are defines as the auctions carried
out between the other shops of Sharekhan and market auctions are those as explained
earlier, the auction carried out in the market. This is all about settlements but now switch to
funds management or accounts management at Sharekhan. The accounts are different that
is the margin a/c for deposits of the client and trading a/c for which Profit/Loss are settled.
The collection of funds from the clients who had a debit balance or made a loss are made on
the next day of trading and the payments to the profiting traders are made after two days of
trading because the cheques are received from H/O and then pay-out is done and Pay-in is
as explained that amounts to be taken from the clients. In this way, accounts are managed
but in case if the client is unable to pay, the deposit from the margin a/c is cut down to the
payments and in case if a client is having a credit balance in F&O trading though he had a
debit balance in cash-NSE
54. 54. & BSE trading, a JV request is sent to H/O for totaling the three balances. The main aim
for accounts management is that the clients must have a credit or no debit on the next day.
The DP services provided by Sharekhan are falling under the regulation of NSDL (National
Securities Depository Limited) and CDSL (Central Depository Services Limited),
organizations governed by SEBI to regulate the depository services in the interest of the
investors. So, the financial market in India is governed by Ministry of finance under which two
major bodies viz. SEBI & RBI are covered and under RBI the banks and other financial
institutions are covered while SEBI covers the exchanges, NSDL & CDSL and the whole DP
service providers with the brokers to the investors. In this way we have gained a meaningful
knowledge about Indias financial market and its structure from this training at Sharekan. In
this way, the finance function is carried out at Sharekhan by following the guidelines given by
SEBI. And the company is a private limited one with its own policies for disclosing its
financial statements, so we are not able to give any figures for showing the financial position
of the company.
55. 55. SHAREKHAN- ONE OF THE FASTEST GROWING FINANCIAL SERVICES COMPANY
IN INDIA Network 10 lakhs Customers & Growing 82 Online Business is 50% 1500 Share
Shops across300+Cities 800 700 600 500 400 300 200 100 > 3000employees Most
preferred broking website in India 147 176 228 410 607 704 0 2001-2002 2002-2003 2003-
2004 2004-2005 2005-2006 2006-2007 Sep-07 Winner of Chip magazines Best Financial
Website Award
56. 56. HUMAN RESOURCE DEPARTMENT Human resource is the crucial resource that a
company can use to grow with the work of the employees. HRM activities at Sharekhan start
form induction to the
57. 57. specific job training and are done by H/O at Mumbai. H/O takes a written test and
selection interview for filling up vacancies in branches but the recruitment is done by the
branch itself and the selection is performed by H/O from the screened applicants. Any new
recruit is firstly inducted to the company and sent to T & D department that is covered under
HRD and T & D programmes makes employees aware about all the activities/jobs within the
department he/she is to be recruited. Then the specific job training is provided at H/O and
the person has to keep in touch with the concerned department at H/O on internet because
he/she has t solve many conflicts arising in the investors mind and to have an up-to-date
information regarding the procedures and any new facilities or policies to resolve the
problems of the clients. HRP (Human Resource Planning), HRIS (Human Resource
Information System), Recruitment & Selection, Career planning and development,
Assessment & development of employees for Performance appraisal, etc. activities of
managing the HR at Sharekhan is maintained in a way to meet the requirements. The
corporate culture at Sharekhan is maintained in such a way that the people are helpful to
each other and eager to get the work done as soon as possible with a co-operative thinking.
An additional Rs.10000 is provided for each outlet of Sharekhan to motivate its employees
by performance appraisal and also the heads of each departments and branches has to go
through a 3606 performance appraisal for maintaining the consistency in growth of the
company. In the end we can say that the human resource of Sharekhan is a best managed
and used for the continuous growth and development of the company for its future plans to
be achieved time-to-time.
58. 58. OPERATIONS STRATEGY AT SHAREKHAN Operations strategies are implemented in
Sharekhan as shown in the chart given above and the main points of consideration are
Efficiency, Dependability, Quality and Flexibility. The points demand a facility mission that is
made up of process, capacity, facilities, vertical integration, and infrastructure facilities
provided to get the desired outputs as per the plan. The main aim of the operations strategy
at Sharekhan is that the efficiency of the organization and high level of it is desired outputs
with low costs, i.e., productivity with effectiveness. Quality should be high and consistent in
delivering services; Flexibility is related with fast introduction of new services and providing a
wide range to select an option to the customer. This is facilitated by the process of
operations, capacity/ability of the organization, competitive advantages, vertical integration
and the infrastructure created by the firm. Sharekhan plans the strategies to get a working
plan from it and the planning is done from top-to-bottom level, i.e., national level, regional
level, divisional level and the branch level planning is carried out by the managers. In this
way, the Operations are managed with the best efforts in a direction that is to facilitate future
plans by achieving success in time and create milestones in the industry by driving the
company with excellence.
59. 59. To study over all influence of online trading to the security market. To study investment
decision making in online trading To study trading frequency through online trading
RESEARCH OBJECTIVE The main objective of the study is to check consumer behavior
towards online trading in stock market among the people of Rajkot City. The objective of any
research is basically divided into two categories. Primary Objectives To study the consumer
behavior toward online trading in stock market. Secondary Objectives
60. 60. Secondary Data Source: The secondary data are those which have already been
collected by someone else and which have to decide which have already been passed
through the statistical process. Externally, these sources may include books or periodicals
reports, data services and computer data banks. In the context of the project study, the
source of data used by me for this project is primary type of sources. The primary data
source is the respondents who have filled the questionnaire. Primary Data Source: The
primary data are those, which are collected afresh for the first time for the problem solution,
and thus happen to be original in character. It may be obtained from individual, families and
representative or from organization. RESEARCH METHODOLOGY SOURCES OF DATA:
The task of data collection begins after a research problem has been defined and research
plan chalked out. While deciding about the method of data collection to be used for the
study, first of all the sources of data must be very clear. There are basically two sources of
data.
61. 61. Sampling Size: It plays an important role in the research. Samples are representative of
the whole population. This refers to the no. of items to be selected from the universe to
constitute a samp Sampling Unit: The sampling Unit is the entity to which we have to follow
during the whole research study.In the context of the project study, the sampling unit
primarily consists of Individuals who may be Businessmen, Professional, Government
employee, Employees working in the private firmAnd other persons. SAMPLING PLAN: le.
In the context of the project study, 75 respondents are chosen keeping in view the above
constrains. Attempts have being made to see that samples are chosen from different strata.
1. Sampling Methods: There are various methods of sampling in the context of my project
study I have selected Non-probability Sampling Method. And under that, I have taken
Convenience Sampling. Under this I prepared a simple questionnaire to collect the
information.
62. 62. 2. Data Collection Method: Data collection is done basically in three ways: Observation
Method, Survey Method and Questionnaire. And in the context of my project study, I have
selected questionnaire method for collecting the data. 3. Data Analysis & Interpretation: Data
analysis is based on the data collected by the questionnaire. From the collected data findings
are extracted. The data is tabulated and frequency distribution chart is prepared. i. Data
Analysis By Charts: Charts make easy to understand. Therefore I have use pie chart and
histogram to present the data.
63. 63. REVIEW OF LITERATURE 1. Intention To Adopt Online Trading: Identifying The Future
Online Traders Yinghao Mickey Li, Jinkook Lee and Brenda J. Cude This paper is based on
the first author's thesis, which won the 2002 American Council on Consumer Interests thesis
award. The dataset was provided to the second author by Larry Cohen, the director of
Consumer Financial Decisions of SRI Consulting Corporation. This paper proposes that
investors' intention to adopt online trading in the future is influenced by investment,
psychology, technology and demographic factors. Data from the 2000-01 Macro Monitor
database are employed in this study. Macro Monitor is a biennial survey conducted by the
Consumer Finance Decision section of SRI Consulting Corporation. The sampling method of
the survey is two-stage random sampling. The first step is a stratified disproportionate
random sampling. And the second step is a simple random sampling. Sample size was 3759
household in 2000 in U.S. Among the investors, there were 389 current online investors and
1,066 current offline investors. On average, online investors were younger than offline
investors and had more education than offline investors. Online investors traded 29.2 times a
year, while offline investors traded only 7.1 times a year. In terms of trading volume, online
investors also traded a larger sum of money than offline investors.
64. 64. 2. Impact of online trading on customer satisfaction in Tehran stock exchange
DelbarJafar Pour, Lulea University of technology - master thesis, continuation courses -
marketing and e-commerce. The aim of the study is to indicate how Indian traders rank
quality factors and if online trading system could enhance their satisfaction level or not? For
research distributive and explorative research designs are used and for data collection
survey method is used. There were 300 invitees were invited for the purpose of survey.
Result shows that there is a meaningful difference between traders satisfaction in
conventional stock exchange. And existence of online trading system in stock exchange can
raise the degree of traders satisfaction.
65. 65. RESEARCH ANALYSIS AND INTERPRETATION 1. Different age group of respondent:
AGE % Below 30 54 31 45 32 46 60 11 Above 60 3 Chart Title 0% 11% 3% 32% 54%
AGE Below 30 31 45 46 60 Above 60 From the above chart we can know that young
persons are interested in investing in stock market and also it shows their risk taking
willingness and accurate decision making ability. If look at adult group then they are also little
bit taking interest in stock market.
66. 66. 2. Education: EDUCATION % Undergraduate 23 Graduate 48 Post graduate 29 23%
Education 48% 29% 60% 50% 40% 30% 20% 10% 0% Undergraduate Graduate Post
graduate Above chart shows that more graduate people takes initiative towards stock market
working than under graduates and post graduates It can also be derived from the chat 4 that
people who are younger and graduates would like to work in stock market.
67. 67. 20% 40% 29% 11% Occupation Professional Businessman Working in Pvt. Firm
Government Employee 3. Occupation: OCCUPATION % Professional 20 Businessman 40
Working in Pvt. Firm 29 Government Employee 11 As businessmen are more accurate
decision makers and also risk takers, therefore they takes more interest in stock market
working. Compare to professional, government employee and working in private firms. While
employees working in private Firms are also growing as stock market investors.
68. 68. 4. Where do you invest your savings? Use of Saving Option % Bank FD 10 Mutual Fund
28 Shares / Equity 42 Insurance 15 other 5 45 40 35 30 25 20 15 10 5 0 Bank FD Mutual
Fund Shares / Equity Insurance other
69. 69. If we evaluate all the above charts then we can make note that younger, graduate and
businessmen are stock market investors, therefore it directly implies more use of their
savings in stock market as shown in chart. While about 13-18% of saving goes tobank FD,
mutual fund, insurance. And due to increasing knowledge, risk taking willingness and
changing market trend, very less people goes to postal schemes investment. 5. Do you
participate in equity market? If yes, what best describes you as Participation as % No of
participant Investor 65 45 Trader 35 25 % of participants Investor Trader As investment is
safer than trading, therefore more portion of the market prefers investment to trading, in spite
of existence of more risk takers. Portion of trading is not that much of less than investment,
but due to involvement of more loss of money enables less people to go for it.
70. 70. 6. In your opinion, which medium is the more reliable for trading in stock 36% 64%
Medium for Trading Through Broker Online Direct Participant market? Medium for Trading %
Through Broker 36 Online Direct Participant 64 Increased use of internet technology has
lead people to go for more online direct participant. Online direct participant also gives some
benefits of time and cost saving, less paper work and fast decision making.
71. 71. 7. Out of following online traded products, in which you trade regularly? Online Traded
Products % F & O 34 Cash 38 Commodity 21 Currency 7 Chart Title 34% 7% 38% 21% F &
O Cash Commodity Currenncy As people more prefer investment in cash therefore is more
online traded product F n O and commodity are traded nearby 21-38%. While currency is
less preferable by respondents due to high risk involvement.
72. 72. preferance of online trading 35% 26% 21% 18% Online Fund Transfer Comfortable
Trading No Geographical Boundary Paperless Transaction 8. Why do you prefer online
trading? Preference % Online Fund Transfer 26 Comfortable Trading 27 No Geographical
Boundary 23 Paperless Transaction 26 From the above chart we can conclude that 35%
respondent are doing online trading due to online fund transfer while 26% are because of the
comfortable trading and 18-21% are doing because of the no geographical boundary and
paperless transaction.
73. 73. 9. Which online trading platform you prefer the most? Trading Platform % Trade Tiger 64
ODIN 8 NOW 9 Trade Racer/ Icici Direct 19 64 8 9 19 70 60 50 40 30 20 10 0 Trade Tiger
ODIN NOW Trade Racer / ICICI Direct Trading Platform Most of the respondent are prefer
the Trade Tiger for the trading than other because of the different features and options are
available in trade tiger and the technical charts are also there.
74. 74. 10. Which one will influence your online trading decision making? 8% 11% 13% 15%
13% 15% 14% 11% Influencer Independently Broker/ Agent's Advice News Channels
Newspapers Advice of Friends/ Colleagues Internet Well-Known Stock Broking House
Business Magazine Influencer % Independently 8 Broker/ Agent's Advice 11 News Channels
13 Newspapers 15 Advice of Friends/ Colleagues 13 Internet 14 Well-Known Stock Broking
15 House Business Magazine 11
75. 75. From the above chart we can conclude that more of the respondents are influence
through the newspaper or by the well know stock broking house decision. 14% are from the
internet and 11-13% are by the Brokers/ agents advice, business magazine, news channels
and friends advice. And only 8% are take the decision by their own. 11. What is the order of
importance for you as online market participant? % Fast Executive System 42 Much
Cheaper 35 User Friendly 23 Preference in online Market 42% 23% 35% Participant Fast
Executive System Much Cheaper User Friendly (Table 13) (Chart 14) From the above
respondent we can say that the 42% are using the online trading platform for the fast
executive system and 35% are because it is much cheaper than the other ways and 23% are
using it due to the user friendly.
76. 76. 12. As an online market participant what is your participants status? 39% 33% 28% Type
of Investor Long Term Short Term Intraday Type of Investor % Long Term Investor 39 Short
Term Investor 33 Intraday Trader 28 Above chart shows that the 39% respondents are want
to be a long term investor which will lead them towards the wealth maximization an 33%
want to be a short term investor and want to earn money in short span of time while the 28%
are the intraday traders.
77. 77. Due to limitation of time and cost constrains, a sample size of only 75 respondents was
chosen. This exploratory research is done in the Rajkot city only and therefore findings and
suggestion given on the basis of this research and cannot be considered for the entire
security market of India. LIMITATIONS Respondents taken for the study were most of
from the Sharekhan, therefore true picture of the stock broking companies can also not be
seen from the study. And also the views of respondents of Rajkot towards online trading
may not reflect the overall scenario. Data analysis and interpretation done may not be that
strong due to small sample and random sampling method.
78. 78. Out of all the online traded products 25% of F 35% of businessmen and 34% of Private
firm Employees were online traders There were 33% of the businessmen investing in
shares out of all the investors. 15% of Private firm Employees prefer Bank FD and 40% of
Private firm Employees prefer mutual fund investment compare to others Out of 48%
graduate 15% of employees working in private firm and 20% post graduate working as
government employee. 40 % of businessmen are risk takers and they prefer trading and
out of that 15% were doing intraday trading. FINDINGS From the research objective
following can be interpreted; & Out of all the intraday traders 40% were businessmen Thus
we say that online trading has gained more attention of todays generation and more no. of
businessmen and Private firm Employees are taking initiative towards stock market working.
It can be said that consumer behave rationally, are risk takers and also they prefer keeping
pace with changing technology i.e.; online trading. Out of all the short term investors20%
were Private firm Employees and Out of all the long term investors, 50% were Private firm
Employees, O preferred by Private firm Employees, 29% of equity preferred by
businessmen, 15% of commodity preferred by Private firm Employees and 5% of currency
preferred by Private firm Employees
79. 79. Try to remove myth of money losing from stock trading from the minds of people by
providing some help in decision making and schemes. Online trading requires fast and
effective decision making, therefore company should held regularly seminars, coaching class
and make its customer aware of true extent of risk and return Trusted brokers get easily
online traders because of timeliness and right tips on trading; therefore Sharekhan should
make its brand name strong enough to convince the customer for online trading through
more advertisement. People prefer Online trading as a secondary business, because
liquidity is high in this business. Therefore, some steps should be taken to explain this
scenario to all the knowledgeable class by proper marketing. Many people dont do this
business because of the lack of the proper market knowledge. And hence they should be
made aware of the trends of the market. From the tests it can be reccomandated to the
sharekhan that it should attract more businessmen and Private firm Employees, because
they are the persons possessing IT infrastructure. RECOMANDATION As the analysis
makes it clear that there is potential market for online trading in the region of Rajkot, but this
market needs to be explored because Stock broking companies are not able to convert
mutual fund investors into stock market investors. Some of the few recommendations based
on the above research are:
80. 80. CONCLUSION The objective of this study is to develop a theoretical model to explain
and predict the stock traders' behavioral intentions to use online trading by using the
concepts of perceived benefit, perceived risk and trust. This study reveals that perceived risk
is a more important influential factor than perceived benefit in online trading decision making.
However, building a risk-free online stock trading environment is much more difficult than
providing benefits to customers. Online trading companies need to search for risk-reducing
strategies that might assist in inspiring high confidence in customers. This study suggests
that online trading companies should consider focusing more on the prevention of intrusion,
fraud and identity theft. The current generation of investors is trading very actively by
historical standards. Investors are flush with cash, partly because of a robust economy, and
partly because they are borrowing aggressively. Very active investors are often making
decisions in a situation of high uncertainty. On-line investors have concentrated their trading
in e-commerce and other high-tech firms. Many e-commerce firms have novel, untested
business plans. Many have little or no earnings. Online brokers should provide customers
with digital receipts or a guarantee for every transaction in order to increase customers'
confidence with regard to online trading. Customers may be willing to trust in online trading if
they're confident that the service providers stand behind their service.
81. 81. Sharekhan Value Guide May 2014 Sharekhan Value Guide June- 2014 Capital
Market (Sep 16 29, 2013, Vol. XXVIII/15) BIBLIOGRAPHY
82. 82. APPENDICES 1. List of Tables: Sr. No. Particular Page No. Table -1 Shareholder &
Shareholding Pattern 22 Table -2 Strength of Sharekhan 24 Table -3 Age 53 Table -4
Education 54 Table -5 Occupation 55 Table -6 Saving Option 56 Table -7 Participation as 57
Table -8 Medium of Trading 58 Table -9 Online Traded Products 59 Table -10 Preference 60
Table -11 Trading Platform 61 Table -12 Influencer 62 Table -13 Trading Platform 63 Table -
14 Type of Investor 64
83. 83. 2. List of Charts: Sr. No. Particular Page No. Chart -1 SSKI Group Corporate Structure
22 Chart -2 Industry Analysis using Poters 5 Force Model 23 Chart -3 Products of
Sharekhan 35 Chart -4 Age 53 Chart -5 Education 54 Chart -6 Occupation 55 Chart -7
Saving Option 56 Chart -8 Participation as 57 Chart -9 Medium of Trading 58 Chart -10
Online Traded Products 59 Chart -11 Preference 60 Chart -12 Trading Platform 61 Chart -13
Influencer 62 Chart -14 Preference in Online Market Participant 63 Chart -15 Type of
Investor 64
84. 84. Questionnaire 1. Name: 2.
Age: a. Below 30 c. 46-60 b. 31-45 d. Above 60 3. Education: a. Undergraduate b. Graduate
c. Post graduate 4. Occupation: a. Professional c. Working in Private Firm b. Businessman d.
Government Employee 5. Where do you invest your savings? a. Bank FD b. Mutual Fund c.
Shares / Equity d. Insurance e. Others
85. 85. 6. Do you participate in equity market? If yes, what best describes you as a. Investor b.
Trader 7. In your opinion, which medium is the more reliable for trading in stock market?
(Give rank 1 for most reliable) a. Through Brokers b. Online Direct Participation 8. Out of
following online traded products, in which you trade regularly? a. F & O c. Commodity b.
Cash d. Currency 9. Why do you prefer online trading?(Give your rank 1 to the most imp and
4 for the lest imp) a. Online Fund Transfer c. No Geographical Boundary b. Comfortable
Trading d. Paperless Transaction 10. Which online trading platform you prefer the most? a.
TRADE TIGER b. ODIN c. NOW d. TRADE RACER e. ICICI Direct
86. 86. 11. Which one will influence your online trading decision making? (Give Rank 1 to the
most imp and 8 for the lest imp) a. Independently b. Broker/ Agents Advice c. News
Channels d. Newspapers e. Advice of Friends / Colleagues f. Internet g. Well Known Stock
Broking House h. Business Magazine 12. What is the order of importance for you as online
market participants? Fast executive system Much cheaper User friendly 13. As an online
market participant what is your participant status? Long term investor Short term investor
Intraday trader 14. Name any online stock broking company that you like to recommend?
87. 87. TESTING THE HYPOTHESIS
88. SHAREKHAN LIMITED Sharekhan is one of the leading retail broking House of SSKI Group
which was running successfully since 1922 in the country. It is the retail broking arm of the
Mumbai-based SSKI Group, which has over eight decades of experience in the stock broking
business. Sharekhan offers its customers a wide range of equity related services including
trade execution on BSE, NSE, Derivatives, depository services, online trading, investment
advisory, Mutual Fund Advisory etc. The firms online trading and investment site -
www.sharekhan.com - was launched on Feb 8, 2000. The site gives access to superior
content and transaction facility to retail customers across the country. Known for its jargon-
free, investor friendly language While online trading currently accounts for just over 8 per
cent of the daily trading in stocks in India, Sharekhan alone accounts for 32 per cent of the
volumes traded online. 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. The objective has been to let customers make
informed decisions and to simplify the process of investing in stocks. On April 17, 2002
Sharekhan launched Speed Trade, a net-based executable application that emulates the
broker terminals along with host of other information relevant to the Day Traders. This was
for the first time that a net-based trading station of this caliber was offered to the traders. In
the last six months Speed Trade has become a de facto standard for the Day Trading
community over the net. On October 01, 2007 sharekhan again launched his another
integrated software based product trade tiger, a net-based executable application that
emulates the broker terminals along with host of other information relevant to the day
traders. It has another quality which differs it from other that it has the combined terminal for
equity and commodities both. Share khans ground network includes over 1005 centers in
450 cities in India, of which 210 are fully-owned branches. Sharekhan has always believed in
investing in technology to build its
89. 10. 10 business. The company has used some of the best-known names in the IT industry,
like Sun Microsystems, Oracle, Microsoft, Cambridge Technologies, Nexgenix, Vignette,
Verisign Financial Technologies India Ltd, Spider Software Pvt Ltd. to build its trading engine
and content. Previously the Morakiya family holds a majority stake in the company but now a
world famous brand CITI GROUP has taken a majority stake in the company. HSBC, Intel &
Carlyle are the other investors. With a legacy of more than 80 years in the stock markets, the
SSKI group ventured into institutional broking and corporate finance 18 years ago. Presently
SSKI is one of the leading players in institutional broking and corporate finance activities.The
Corporate Finance section has a list of very prestigious clients and has many firsts to its
credit, in terms of the size of deal, sector tapped etc. The group has placed over US$ 1
billion in private equity deals. Some of the clients include BPL Cellular Holding, Gujarat
Pipavav, Essar, Hutchison, Planetasia, and Shoppers Stop.
Vision To be the best retail broking brand in the retail business of the stock
market.

Mission To educate and empower the individual investor to make better investment decisions
through quality advices and superior services.