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SUMMER TRAINING PROJECT REPORT

ANALYSIS OF INDIAN STOCK MARKET


AND COMPARISON OF CORPORATE
STOCK BROKERS

SUBMITTED IN PARTIAL FULFILLMENT


FOR THE AWARD OF THE DEGREE OF
BACHELOR IN BUSINESS ADMINISTRATION
2010-13

Under the Guidance of: Submitted by:


DR. VIJAY KR. KHURANA RAJAT JINDAL
ASSOCIATE PROFESSOR, MAIMS ENROLLMENT NO.-10514701710
BBA 5TH Semester

Maharaja Agrasen Institute of Management Studies


Affiliated to Guru Gobind Singh Indraprastha University, Delhi
PSP Area, Plot No. 1, Sector 22, Rohini, Delhi-110086
STUDENT DECLARATION

This is to certify that I have completed the Summer Project titled Analysis of Indian Stock
Market and Comparison of Corporate Stock Brokers in Maharaja Agrasen Institute of
Management Studies under the guidance of Dr. Vijay Kumar Khurana in partial
fulfillment of the requirement for the award of degree of Bachelor of Business Administration
(BBA) at Maharaja Agrasen Institute of Management Studies, Delhi.

This is after undergoing 8 weeks of summer training at Pee Aar Securities Ltd, which is in partial
fulfillment of the requirement for the award of degree of Bachelor of Business Administration
(BBA) at Maharaja Agrasen Institute of Management Studies, Delhi.

I further declare that this project report is an original piece of work & has not been submitted to
any other institute earlier elsewhere.

Date: Signature:

Place: Name : RAJAT JINDAL

Enrollment No.: 10514701710

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BBA V Semester (Batch 2010-2013) Page 2
CERTIFICATE FROM THE INSTITUTE GUIDE

This is to certify that the summer project titled Analysis of Indian Stock Market and
Comparison of Corporate Stock Brokers is an academic work done by Rajat Jindal submitted
in the partial fulfillment of the requirement for the award of the degree of Bachelor of Business
Administration from Maharaja Agrasen Institute of Management Studies, Delhi, under my
guidance & direction.

To the best of my knowledge and belief the data & information presented by him/her in the
project has not been submitted earlier.

Signature :
Name of the Faculty : Dr. Vijay Kumar Khurana
Designation : Associate Professor, MAIMS

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ACKNOWLEDGEMENT

The satisfaction and euphoria that accompany the successful completion of any task would be

incomplete without mentioning the people who made it possible, whose consistent guidance and

encouragement crowned the efforts with success.

I take this as an opportunity to thank with bottom of my heat all those without whom the journey

of 8 weeks of training and doing my project would not have been as pleasant as it has been to

me. Working on my project was a constant learning experience with all sweat and tear which

was its due but not without being richly stimulating experience of life time.

I wish to express my deep sense of gratitude to Mr. NIKHIL GUPTA (Director), Pee Aar

Securities Ltd. for help, guidance and for assisting me with valuable suggestions during the

project.

For any project to be a success, it is very important to get the right guidance and support which I

got from my Faculty Guide Dr. VIJAY KUMAR KHURANA sir. I express my gratitude to

my faculty guide for inspiring me throughout the project.

I want to express my deep gratitude to our institution Maharaja Agrasen Institute Of

Management Studies, for giving me the opportunity to undertake this project and enhance my

knowledge. Finally I would like to convey my heartiest thanks to all my well wishers for their

blessing and co-operation throughout my study. They boosted me up every day to work with a

new and high spirit.

RAJAT JINDAL
Enrollment No.: 10514701710

Rajat Jindal
Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 4
EXECUTIVE SUMMARY

This report is about the analysis of Indian stock market, the online trading and comparative
analysis of various major corporate stock brokers. The report starts with the overview of Indian
Stock Market, followed by the company profile of Pee Aar Securities Ltd., its history, evolution
and achievements. The project report also details the basic comparison of the company is with
the most reputed brokerage players in the market. The comparison is done through different
parameters.

The project also fulfills the requirement in giving full knowledge to the customers about the
trading procedure of securities and various products of Pee Aar Securities Ltd. It shows the
factors which influence the customer to buy the shares online or buy offline.

The analysis is done by the purpose of questionnaire which is filled by 30 clients of Pee Aar
Securities Ltd. and 50 clients of other corporate brokers. On the basis of answer given by the
respondents, the analysis is done and graphs are made. The questionnaire is also enclosed in the
project.

The report generates awareness about online trading of securities and gives detailed working and
information about Pee Aar Securities Ltd. and compares it with the major corporate stock
brokers in the market and provides the suggestions for improvement.

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TABLE OF CONTENTS Page No.

I. Chapter 1 Introduction 1 to 35
1.1 Overview of the Industry as a whole 2-15
1.2 About Pee Aar Securities Ltd. 16-23
1.3 Profile of the organization 24-30
1.4 Competition Information 31-33
1.5 SWOT Analysis of the Organisation 34-35

II. Chapter 2 Research Methodology 36 to 40


2.1 Objectives of the study 37
2.2 Scope of the Study 38
2.3 Managerial Usefulness of the study 39
2.4 Research Design and Data collection 39-40

III. Chapter 3 Data Analysis & Findings 41 to 57


3.1 Analysis of Primary Data 42-51
3.2 Analysis of Secondary Data 52-56
3.3 Findings 57

IV. Chapter 4 Conclusions 58 to 59

V. Chapter 5 Recommendations & Suggestions 60 to 61

VI. Chapter 6 Limitations of the study 62 to 63

Bibliography
Annexure

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CHAPTER-1
INTRODUCTION

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1.1 Overview of Indian Financial Market

Origin of Indian Stock Market


The origin of the stock market in India goes back to the end of the eighteenth century when long-
term negotiable securities were first issued. However, for all practical purposes, the real
beginning occurred in the middle of the nineteenth century after the enactment of the companies
Act in 1850, which introduced the features of limited liability and generated investor interest in
corporate securities. An important early event in the development of the stock market in India
was the formation of the native share and stock brokers 'Association at Bombay in 1875, the
precursor of the present day Bombay Stock Exchange. This was followed by the formation of
associations/exchanges in Ahmedabad (1894), Calcutta (1908), and Madras (1937). In addition, a
large number of ephemeral exchanges emerged mainly in buoyant periods to recede into oblivion
during depressing times subsequently.
Stock exchanges are intricacy inter-woven in the fabric of a nation's economic life. Without a
stock exchange, the saving of the community- the sinews of economic progress and productive
efficiency-would remain underutilized. The task of mobilization and allocation of savings could
be attempted in the old days by a much less specialized institution than the stock exchanges. But
as business and industry expanded and the economy assumed more complex nature, the need for
'permanent finance' arose. Entrepreneurs needed money for long term whereas investors
demanded liquidity the facility to convert their investment into cash at any given time. The
answer was a ready market for investments and this was how the stock exchange came into
being.
Stock exchange means anybody of individuals, whether incorporated or not, constituted for the
purpose of regulating or controlling the business of buying, selling or dealing in securities. These
securities include:
(i) Shares, scrip, stocks, bonds, debentures stock or other marketable securities of a like nature in
or of any incorporated company or other body corporate;
(ii) Government securities; and
(iii) Rights or interest in securities.

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The Bombay Stock Exchange (BSE) and the National Stock Exchange of India Ltd (NSE) are
the two primary exchanges in India. In addition, there are 22 Regional Stock Exchanges.
However, the BSE and NSE have established themselves as the two leading exchanges and
account for about 80 per cent of the equity volume traded in India. The NSE and BSE are equal
in size in terms of daily traded volume. The BSE has over 6000 stocks listed. Most key stocks
are traded on both the exchanges and hence the investor could buy them on either exchange.
Both exchanges have a different settlement cycle, which allows investors to shift their positions
on the bourses. The primary index of BSE is BSE Sensex comprising 30 stocks. NSE has the
S&P NSE 50 Index (Nifty) which consists of fifty stocks. The BSE Sensex is the older and more
widely followed index.

Both these indices are calculated on the basis of market capitalization and contain the heavily
traded shares from key sectors. The markets are closed on Saturdays and Sundays. Both the
exchanges have switched over from the open outcry trading system to a fully automated
computerized mode of trading known as BOLT (BSE on Line Trading) and NEAT (National
Exchange Automated Trading) System.
It facilitates more efficient processing, automatic order matching, faster execution of trades and
transparency; the scrip's traded on the BSE have been classified into 'A', 'B1', 'B2', 'C', 'F' and 'Z'
groups. The 'A' group shares represent those, which are in the carry forward system (Badla). The
'F' group represents the debt market (fixed income securities) segment. The 'Z' group scrip's are
the blacklisted companies. The 'C' group covers the odd lot securities in 'A', 'B1' & 'B2' groups
and Rights renunciations. The key regulator governing Stock Exchanges, Brokers, Depositories,
Depository participants, Mutual Funds, FIIs and other participants in Indian secondary and
primary market is the Securities and Exchange Board of India (SEBI) Ltd.

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Structure of Indian Financial Market
Following diagram gives the structure of Indian Financial System:

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In general, the financial market divided into two parts, Money market and capital market.
Securities market is an important, organized capital market where transaction of capital is
facilitated by means of direct financing using securities as a commodity. Securities market can
be divided into a primary market and secondary market.

PRIMARY MARKET
The primary market is an intermittent and discrete market where the initially listed shares are
traded first time, changing hands from the listed company to the investors. It refers to the process
through which the companies, the issuers of stocks, acquire capital by offering their stocks to
investors who supply the capital. In other words primary market is that part of the capital
markets that deals with the issuance of new securities. Companies, governments or public sector
institutions can obtain funding through the sale of a new stock or bond issue. This is typically
done through a syndicate of securities dealers. The process of selling new issues to investors is
called underwriting. In the case of a new stock issue, this sale is called an initial public offering
(IPO). Dealers earn a commission that is built into the price of the security offering, though it
can be found in the prospectus.

SECONDARY MARKET
The secondary market is an on-going market, which is equipped and organized with a place,
facilities and other resources required for trading securities after their initial offering. It refers to
a specific place where securities transaction among many and unspecified persons is carried out
through intermediation of the securities firms, i.e., a licensed broker, and the exchanges, a
specialized trading organization, in accordance with the rules and regulations established by the
exchanges.

A bit about history of stock exchange they say it was under a tree that it all started in 1875.
Bombay Stock Exchange (BSE) was the major exchange in India till 1994. National Stock
Exchange (NSE) started operations in 1994.

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NSE was floated by major banks and financial institutions. It came as a result of Harshad Mehta
scam of 1992. Contrary to popular belief the scam was more of a banking scam than a stock
market scam. The old methods of trading in BSE were people assembling on what is called a ring
in the BSE building. They had a unique sign language to communicate apart from all the
shouting. Investors weren't allowed access and the system was opaque and misused by brokers.
The shares were in physical form and prone to duplication and fraud.
NSE was the first to introduce electronic screen based trading. BSE was forced to follow suit.
The present day trading platform is transparent and gives investors prices on a real time basis.
With the introduction of depository and mandatory dematerialization of shares chances of fraud
reduced further. The trading screen gives you top 5 buy and sell quotes on every scrip.
A typical trading day starts at 9.00 am ending at 3.30 pm. Monday to Friday. BSE has 30 stocks
which make up the Sensex .NSE has 50 stocks in its index called Nifty. FII s Banks, financial
institutions mutual funds are biggest players in the market. Then there are the retail investors and
speculators. The last ones are the ones who follow the market morning to evening; Market can be
very addictive like blogging though stakes are higher in the former.

MARKET BASICS

Electronic Trading:
Electronic trading eliminates the need for physical trading floors. Brokers can trade from their
offices, using fully automated screen-based processes. Their workstations are connected to a
Stock Exchange's central computer via satellite using Very Small Aperture Terminus (VSATs).
The orders placed by brokers reach the Exchange's central computer and are matched
electronically.

Exchanges in India:
The Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) are the country's
two leading Exchanges. There are 20 other regional Exchanges, connected via the Inter-
Connected Stock Exchange (ICSE). The BSE and NSE allow nationwide trading via their VSAT
systems.

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Index:
An Index is a comprehensive measure of market trends, intended for investors who are
concerned with general stock market price movements. An Index comprises stocks that have
large liquidity and market capitalization. Each stock is given a weight age in the Index equivalent
to its market capitalization. At the NSE, the capitalization of NIFTY (fifty selected stocks) is
taken as a base capitalization, with the value set at 1000. Similarly, BSE Sensitive Index or
Sensex comprises 30selected stocks. The Index value compares the day's market capitalization
vis--vis base capitalization and indicates how prices in general have moved over a period of
time.

Execute an Order:
Select a broker of your choice and enter into a broker-client agreement and fill in the client
registration form. Place your order with your broker preferably in writing. Get a trade
confirmation slip on the day the trade is executed and ask for the contract note at the end of the
trade date.

Need a Broker:
As per SEBI (Securities and Exchange Board of India.) regulations, only registered members can
operate in the stock market. One can trade by executing a deal only through a registered broker
of a recognized Stock Exchange or through a SEBI-registered sub-broker.

Contract Note:
A contract note describes the rate, date, time at which the trade was transacted and the brokerage
rate. A contract note issued in the prescribed format establishes a legally enforceable relationship
between the client and the member in respect of trades stated in the contract note. These are
made in duplicate and the member and the client both keep a copy each. A client should receive
the contract note within 24 hours of the executed trade.

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Split:
A Split is book entry wherein the face value of the share is altered to create a greater number of
shares outstanding without calling for fresh capital or altering the share capital account. For
example, if a company announces a two-way split, it means that a share of the face value of Rs
10 is split into two shares of face value of Rs 5 each and a person holding one share now holds
two shares.

Buy Back:
As the name suggests, it is a process by which a company can buy back its shares from
shareholders. A company may buy back its shares in various ways: from existing shareholders on
a proportionate basis; through a tender offer from open market; through a book-building process;
from the Stock Exchange; or from odd lot holders. A company cannot buy back through
negotiated deals on or off the Stock Exchange, through spot transactions or through any private
arrangement.

Settlement Cycle:
The accounting period for the securities traded on the Exchange. On the NSE, the cycle begins
on Wednesday and ends on the following Tuesday, and on the BSE the cycle commences on
Monday and ends on Friday. At the end of this period, the obligations of each broker are
calculated and the brokers settle their respective obligations as per the rules, bye- laws and
regulations of the Clearing Corporation. If a transaction is entered on the first day of the
settlement, the same will be settled on the eighth working day excluding the day of transaction.
However, if the same is done on the last day of the settlement, it will be settled on the fourth
working day excluding the day of transaction.

Auction:
An auction is conducted for those securities that members fail to deliver/short deliver during pay-
in. Three factors primarily give rise to an auction: short deliveries, un-rectified bad deliveries,
and un-rectified company objections.

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Rolling Settlement:
The rolling settlement ensures that each day's trade is settled by keeping a fixed gap of a
specified number of working days between a trade and its settlement. At present, this gap is five
working days after the trading day. The waiting period is uniform for all trades. In a Rolling
Settlement, all trades outstanding at end of the day have to be settled, which means that the buyer
has to make payments for securities purchased and seller has to deliver the securities sold. In
India, we have adopted the T+5 settlements cycle, which means that a transaction entered into on
Day 1 has to be settled on the Day 1 + 5 working days, when funds pay in or securities pay out
takes place.

Advantages of Rolling Settlements


As mentioned earlier, this is the system practiced in developed countries. Pay outs are quicker
than in weekly settlements, and investors will benefit from increased liquidity. The other benefit
of the modified system is that it keeps cash and forward markets separate. In the current system,
the trader has five days to square off his transaction which leads to a high level of speculation as
people even without funds tend to "play" the market. During volatile markets, especially in a
bearish market, this often leads to a payment problem which has dogged the Indian stock
exchanges for a long time. It provides for a higher degree of safety, and once mechanisms such
as futures and stock-lending become popular, it would result in quality speculation and genuine
investor interest.

Short Selling:
Short selling is a legitimate trading strategy. It is a sale of a security that the seller does not own,
or any sale that is completed by the delivery of a security borrowed by the seller. Short sellers
take the risk that they will be able to buy the stock at a more favorable price than the price at
which they "sold short."The selling of a security that the seller does not own, or any sale that is
completed by the delivery of a security borrowed by the seller, Short sellers assume that they
will be able to buy the stock at a lower amount than the price at which they sold short.

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Separate Market for Auctions:
The buy/sell auction for a capital market security is managed through the auction market. As
opposed to the normal market where trade matching is an on-going process, the trade matching
process for auction starts after the auction period is over. If the shares are not bought at the
auction, i.e., if the shares are not offered for sale, the Exchange squares up the transaction as per
SEBI guidelines. The transaction is squared up at the highest price from the relevant trading
period till the auction day or at 20 per cent above the last available Closing price whichever is
higher. The pay-in and pay-out of funds for auction square up is held along with the pay-out for
the relevant auction.

Bad Delivery:
SEBI has formulated uniform guidelines for good and bad delivery of documents. Bad delivery
may pertain to a transfer deed being torn, mutilated, overwritten, defaced, or if there are spelling
mistakes in the name of the company or the transfer. Bad delivery exists only when shares are
transferred physically. In "Demat" bad delivery does not exist.

Dematerialization:
Dematerialization in short called as 'demat' is the process by which an investor can get physical
certificates converted into electronic form maintained in an account with the Depository
Participant. The investors can dematerialize only those share certificates that are already
registered in their name and belong to the list of securities admitted for dematerialization at the
depositories.

Depository:
The organization responsible to maintain investor's securities in the electronic form is called the
depository. In other words, a depository can therefore be conceived of as a "Bank" for securities.
In India there are two such organizations viz. NSDL and CDSL. The depository concept is
similar to the Banking system with the exception that banks handle funds whereas a depository
handles securities of the investors. An investor wishing to utilize the services offered by a
depository has to open an account with the depository through Depository Participant.

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Depository Participant:
The market intermediary through whom the depository services can be availed by the investors
is called a Depository Participant (DP). As per SEBI regulations, DP could be organizations
involved in the business of providing financial services like banks, brokers, custodians and
financial institutions. This system of using the existing distribution channel (mainly constituting
DPs) helps the depository to reach a wide cross section of investors spread across a large
geographical area at a minimum cost. The admission of the DPs involves a detailed evaluation by
the depository of their capability to meet with the strict service standards and a further evaluation
and approval from SEBI. Realizing the potential, all the custodians in India and a number of
banks, financial institutions and major brokers have already joined as DPs to provide services in
a number of cities.

OFFLINE TRADING
Offline trading got on the track in India in 1875 after the establishment of Bombay Stock
Exchange. Traditionally stock trading is done through stock brokers, personally or through
telephones.
As number of people trading in stock market increase enormously in last few years, some issues
location constrains
busy phone lines

miscommunication etc
started growing in stock broker offices. Information technology (Stock Market Software) helped
stock brokers in solving these problems with Online Stock Trading.

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ONLINE TRADING

Online Stock Market Trading is an internet based stock trading facility. Investor can trade
shares through a website without any manual intervention from Stock Broker.

Online trading arrived in India around Year 2000. Somewhere in the nineties there was a whole
move to make shares electronic and fungible (like currency notes, a share are a share) and
move them to the dematerialized (demat) form. Slowly, from the physical world, shares moved
into the digital world at the NSDL. Then, trading became electronic.

First it was a few of the blue chips, then it was most of the blue chips and slowly it has taken
over most of the market. New issues are today, exclusively electronic. If digitization took care of
the back end, it has also made life easy at the front end. The act of placing buy/sell orders for
financial securities and/or currencies with the use of a brokerage's internet-based proprietary
trading platforms. The use of online trading increased dramatically in the mid to late-'90s with
the introduction of affordable high-speed computers and internet connections.

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RAPID GROWTH
With introduction of online trading, the growth has been exceptionally good for the stock
markets in India.
In the back of wide ranging reforms in regulation and market practice as also the growing
participation of foreign institutional investment, stock markets in India have showed
phenomenal growth since the early 1990s.
Investor base continued to grow from domestic and international markets. The value of
share trading witnessed a sharp jump too.
Stock markets became intensely technology and process driven, giving little scope for
manual intervention that has been the source of market abuse in the past.
Electronic trading, digital certification, straight through processing, electronic contract
notes, online broking have emerged as major trends in technology.
Risk management became robust reducing the recurrence of payment defaults.
Product expansion took place in a speedy manner. Indian equity markets now offer, in
addition to trading in equities, opportunities in trading of derivatives in futures and
options in index and stocks.
Stock exchange reforms brought in professional management separating conflicts of
interest between brokers as owners of the exchanges.

Essential component - The essential component of Internet-based trading is the

interface between broker, bank and depository participant, and as Net-based trading becomes a
reality this interface will develop.

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Process of Online Trading

Why trade online?

Access to Information , Research & statistics on the website


Transparency
Hassle Free
Less Time consuming
Control in the hands of Investor
After Market Orders
Trade any time anywhere
Completely Safe & Secured Transactions

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Advantages of online trading

Internet trading facilitates clients to trade as and when they want, provided they have a
Net connection.
Clients who trade through the Net will be able to do it with a lower transaction cost
compared to traditional brokers.
This trading system helps the broker to expand his business.
Without much capital investment, the broker will be able to enlarge his client base.
With just one office in the metro, the broker will be able to do business with many times
the number of existing clients.

Major issues
Internet-based trading, to become really popular, should have both seamless trading and
seamless settlement; whereas now only the former is possible this prevents the Internet
broking community from announcing large-scale reductions in brokerage.
Ease of trading and settlement along with reduction in transaction costs is what investors
look for in the new system. Hence, bankers and DPs will have to change their systems to
enable seamless settlements.
At present, when the client pays an advance deposit, the broker fixes the exposure limit,
and if there is a sudden fluctuation in the share price, the client is not able to trade unless
funds move to the broker physically. This process takes a minimum of two days, by
which time the price would have changed. The ideal situation is where the client is able
to trade on the basis of his deposit in the bank, which will be accessible to the broker
through networking.
Another serious issue is the efficiency of the Internet infrastructure in the country, which
affects the speed of execution. During the day, traffic is so great that either the line is not
available or it is frustratingly slow, defeating the very purpose of Net-based trading.
In short, seamless settlement of Net transactions and improvement of the Internet
infrastructure are of vital importance for exponential growth of Internet-based trading.

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BBA V Semester (Batch 2010-2013) Page 21
1.2 About Pee Aar Securities Ltd.(PASL)

Pee Aar Securities Ltd. is a Delhi based full-fledged services broking firm incorporated in the
year 1995. Its clientele comprise high net worth individuals, corporate, NRI, mutual funds, as
well as other financial institutions. The company is one of the leading brokerage firms in the
country serving investors both in India and overseas. With an impressive track record in terms of
services to its broad clientele, the key ingredient for the company's success has been its
customer-centric-approach and capital growth through structured counseling and focus.
Its corporate philosophy has focus on their quality service with a `feel`, thus, justifying fully the
very motto of their establishment, i.e.
P Promptness, R Reliability, S - Satisfaction
All this is achieved by a highly dedicated team of professionals supported by a high tech
infrastructure. Its customized approach respects the individuality of their client, who has
uniqueness in his own sense, and upholds his comfort & satisfaction level. Its key objective is to
identify emerging growth opportunities for wealth creations without exposing to undue risk.
Its strength lies in their prominence as a
Member of National Stock Exchange.
Clearing & Trading member of F&O segment of NSE.
A registered depository participant of NSDL & hence offers full-fledged depository
services.
Trading terminals of two Commodity Exchanges MCX/NCDEX.
Comprehensive approach towards investments advice for MFs.
A separate section for IPO segment of the financial sector.
Intensive equity research (technical as well as fundamental) by investment analysts.
Besides, our other activities include Trading in BSE as well as arbitration etc.
It is, therefore, no surprise that they have achieved consistent & exceptional growth so far & are
confident to achieve newer heights.

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1.2.1 History

Founded in 1995
Founders Mr. Ved Prakash Gupta and Ashok Kumar Gupta
Both the founders are well qualified with more than 20 years of experience in capital
markets.

1.2.2 Founders & Promoters

A journey of a thousand miles always begins with one wise step


Founded in 1995, by

Mr. Ved Prakash Gupta & Mr. Ashok Kumar Gupta

Mr. Ved Prakash Gupta, Chairman and Managing Director of Pee Aar Securities Ltd. and Mr.
Ashok Kumar Gupta, Chairman and Managing Director of Hi-tech Securities Ltd. are the
founders and promoters of Pee Aar Securities. Both are well qualified. They are an embodiment
of professional excellence. They are the visionaries who planted the sapling of the giant tree
called PRS. With rock solid reserve and firm commitment, they have shaped their vision to
reality. They have a rich experience of more than 20 years in the capital market. Their
exceptional leadership skills and outstanding commitment has made PASL as one of the leading
investment solutions and services provider. They both assign top priority to the principles of
transparency, honesty and integrity in all our dealings.

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1.2.3 Core Purpose & Values

Vision
At Pee Aar Securities Limited, they remain committed to be the most trusted & globally reputed
Stock Broker House by offering Best Knowledge, Maximum Returns, Lasting Client Satisfaction
and Nothing Else by working collectively as a Team along with their esteemed Sub-Brokers.
They aim to be a global major in providing complete investment solutions, with relentless focus
on investor care, through superior efficiency and complete transparency.

Values

1. Customer-centric Approach
At Pee Aar Securities Limited, customers come first. And their satisfaction is not just
their top priority but also the driving force for them, every single day.
2. Transparency
Honesty is their forte. They believe in dealing on thoroughly ethical grounds, being fair
and transparent with their customers.
3. Meritocracy
They recognize and appreciate efforts put in by their employees. And they, as a matter of
fact, reward and distinguish each one of them ceaselessly.
4. Solidarity
They believe in sharing a forthright and respectful relationship with their business
partners and employees. They consider them both as their team associates, who work
together, succeed together.
5. Ethical deal
Honesty is the only policy.

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BBA V Semester (Batch 2010-2013) Page 24
CORE VALUES

1.2.4 Management

Ved Prakash Gupta : Director


(B.SC,L.LB)
Ashok Kumar Gupta : Director
(MA-ECO,M.PHIL)
Nikhil Gupta : Director
(MBA)
Mukesh Pal Verma : Chief Compliance Officer

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Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 25
1.2.5 Milestones

Many landmarks have been achieved and are awaiting more others

Year 1988-1995
Mr. Ved Prakash Gupta and Mr. Ashok Kumar Gupta would lay foundation of Primary market
and became Sub-broker of Delhi Stock Exchange. The venture stands out from the rest due to
their approach of Research-based broking even when Sub-brokers.

Year 1995
Mr. Ashok Gupta laid the foundation of Pee Aar Securities Limited. Thereafter, they took the
membership of The National Stock Exchange (NSE).

Year 1996
Mr. Ved Prakash Gupta and Mr. Ashok Kumar Gupta incorporated Pee Aar Securities Limited.
Thereafter, Equity Research commenced and Sub Broker model came to life. The Trading
Services are, now, being offered from their four centers. First of its kind study initiated to
identify the biggest and fastest wealth creating companies in Indian Stock markets.

Year 1997
Hitech, the sister concern of Pee Aar Securities Limited, took the membership of Delhi Stock
Exchange. Today, Pee Aar Securities Limited is the market leader in IPO in Delhi.

Year 1998
Pee Aar Securities Limited applied for the membership of NSDL for Depository services and
floated the Mutual Fund Division Insurance Division.

Year 1999
Became the member of NSDL with DP id IN301428.

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Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 26
Year 2001
Starts offering Derivatives products and advisory services on NSE.

Year 2002
The website www.peeaar.in developed by the company.

Year 2003
Mr. Nikhil Gupta associated with Pee Aar Securities Limited.

Year 2005
Trading in Bombay Stock Exchange started through its subsidiary.

Year 2006
PRS offered services in Commodity Market through its subsidiary.
Mr. Nikhil Gupta became the Director of the company.

Year 2007
Bombay Stock Exchange trading started through DSE financial services.

Year 2008
Took the membership of MCX Ltd. in its subsidiary.
Life insurance goes live with Private players.
General insurance services started.

Year 2009-2010
Took the membership of NCDEX Ltd., NSE currency segment, and all other relevant
exchanges.

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BBA V Semester (Batch 2010-2013) Page 27
End of year 2011
Commanding the faith of more than 50000 trading clients & overall 1,00,000
investors.
More than 20000 DP clients
More than 1000 trading terminals of NSE, BSE, NCDEX & MCX installed
Clearing member for 52 Trading Members MCX/DGCX/NSE/BSE
Dedicated Proprietary Arbitrage Desk with 300+ Arbitragers
Handles 50,000+ trades/day, achieved US$ 500+ Mn volume for the period Apr-
Dec, 11
Providing advisory services to HNIs & Corporates.
Still counting, various memberships awaited as well as applied for membership of National Multi
Commodity Exchange for the other divisions.

ACCOLADE
Accolade PASL awarded the ISO Certificate 9001:2000 in the year 2006.

Pee Aar Securities Limited was incorporated in July 1995 under the Companies Act, 1956, by
the trio of its visionary Directors Mr. Ashok Kumar Gupta, Mr. Ved Prakash Gupta and Mr.
Umesh Kumar Gupta.
Since its inception, the Director remained highly meticulous and particular about not only
maintaining but also setting the high standards in the Insurance Sectors by in compliance with
IRDA guidelines, applied and obtained the membership of The National Stock Exchange (NSE).
Thereafter, Equity Research commenced and Sub Broker model was brought into being by the
committed and dedicated Pee Aar Securities Limited team under the highly motivated leadership
of the Directors. As a result of constantly and dedicated endeavors, the Company has emerged as
one of the fastest growing brand name in the Insurance Sector. The Trading Services are, now,
being offered from their four centers. First of its kind study initiated to identify the biggest and
fastest wealth creating companies in Indian Stock markets.

Rajat Jindal
Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 28
Pee Aar Securities Limited (PASL) is having its Corporate & Registered Office at AG-20,
Shalimar Bagh, New Delhi 110 088. Owing to strict compliance with the strict international
Quality norms, the Company is a well-established name in the Insurance Sector. PASL was
awarded the ISO Certificate 9001:2000 in year 2006.
On the one hand, upholding the values expressed in Customer-centric Approach, Transparency,
Meritocracy Solidarity reflects PASLs objective to grow, while on the other hand, remaining
committed to earning goodwill through its commitment seek recognition as the most trusted and
globally reputed Stock Broker House by offering Best Knowledge, Maximum Returns, Lasting
Client Satisfaction and Nothing Else by working collectively as a Team along with their
esteemed Sub-Brokers is Pee Aar Securities Limited motto.
And Pee Aar Securities Limited has been growing steadily on these bench-marks it set for itself
that has turned out to being their strong pillar. Put all these together have placed Pee Aar
Securities Limited above their competitors in the Indian Market. As a result, PASL has emerged
a global name.

Rajat Jindal
Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 29
1.3 Profile of the Organisation
Looking into the day-by-day increasing demand for Online Trading, PASL has successfully
launched its state-of-the-art web based trading platform, through its websites www.peeaar.in and
www.nowonline.in.
PRS Online is the techno savvy alternate of our broking services. Online service is for a segment
of investors who have different expectations from an equity wealth manager restricting their
willingness and ability to sort to premium advisory services. PRS has been serving its clients for
over two decades in a variety of disciplines.
PRS Online comes in really handy when an Investor/Trader is a self trader who would not be
looking for a premium advisory service. The big differential at PRS is that even here they have
dealers who would assist for them to trade independently, with just in case help.
PRS takes a client-focused approach to execution by providing unmatched accountability and
transparent dialogue.
Team of experienced professionals dedicated to serving the firms corporate finance
clients
Single point person responsible for each client
Focus on best possible execution

Products and Services Offered

Equity trading
Derivative Trading.
Commodities Trading.
Mutual fund & IPO distribution.
Depository services (ISO 9001:2000) for Shares & Commodities.
Real time internet trading.
Web based accounting.
Research support to the client through SMS and E-mails.
Clearing services for trading members in NSE and Future & Options.

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Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 30
PASL Group Overview

1. Equity
Equity investments generally refers to the buying and holding of share of stock on a stock market
by individuals and firms in anticipation of income from dividends and capital gain as the value of
the stock rises. It also sometimes refers to the acquisition of equity (ownership) participation in a
private (unlisted) company or a start-up (a company being created or newly created).When the
investment is in infant companies, it is referred to as venture capital investing and is generally
understood to be higher risk than investment in listed going-concern situations.
The equities held by private individuals are often held via mutual funds or other forms of pooled
investment vehicle, many of which have quoted prices that are listed in financial newspapers or
magazines; the mutual funds are typically managed by prominent fund management firms. Such
holdings allow individual investors to obtain the diversification of the fund(s) and to obtain the
skill of the professional fund managers in charge of the fund(s).

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BBA V Semester (Batch 2010-2013) Page 31
2. Derivatives
Since derivatives instrument provide good leverage opportunity, it is a great tool for speculation.
Leverage is a double edge sword for which one requires an equity advisor. Their advisors will
also help them with various strategies like Bull Spread, Bear Spread, Cover call writing, hedging
strategies etc. This is to help them to make better trading returns. The Equity Advisor doesnt
stop at just that, he goes a step further to ensure that clients trades are settled and traded with
proper margin in their account in a timely manner. This allows them to give them a convenient
single window service and their advisor becomes the single point contact for all their equity
related matters.
3. Insurance
Added Life Insurance during April 2008 to their Wealth Management Portfolio thereby filling
the gap in their basket of the products and thus providing comprehensive financial planning to
their clients covering not all wealth creation solutions, but also wealth protection through proper
risk management process. With complete emphasis on the solution providing, they approach
their clients, not merely with insurance product per se, but with module (life profiler) to help
their clients with objective based planning for life, identify and understand the various risk
attached to his/her life and later advising them with appropriate customized solution.
MOSL through their insurance partners offers insurance coverage and wealth creation
opportunities to meet clients different financial goals during the various stages of clients life.
The plans offer them the control to manage their protection and investment in one account. It is
designed to remove their worries and making them secure in the knowledge that they and their
loved ones are protected against any untoward events.
4. Mutual Fund
A mutual fund is just the connecting bridge or a financial intermediary that allows a group of
investors to pool their money together with a predetermined investment objective. The mutual
fund will have a fund manager who is responsible for investing the gathered money into specific
securities (stocks or bonds). When they invest in a mutual fund, they are buying units or portions
of the mutual fund and thus on investing becomes a shareholder or unit holder of the fund.

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BBA V Semester (Batch 2010-2013) Page 32
Mutual funds are considered as one of the best available investments as compare to others they
are very cost efficient and also easy to invest in, thus by pooling money together in a mutual
fund, investors can purchase stocks or bonds with much lower trading costs than if they tried to
do it on their own. But the biggest advantage to mutual funds is diversification, by minimizing
risk & maximizing returns.
5. IPO
IPO or 'New Issues' is it is better known, are a source of great enthusiasm and excitement among
investors across the country. At PRS IPO Desk, they carefully analyze, prepare research notes
and recommend IPO for their clients to invest in. Their IPO Team does rigorous analysis on the
quality of new issue, the company's track record and its business plans. More importantly, it
critically evaluates the pricing of the issue and its friendliness. Given the background and
experience of PRS RESEARCH TEAM they are able to identify the Quality issues out of a series
of new issues that hit the market.
6. Depository Services
A depository can be compared to a bank. A depository holds securities (like shares, debentures,
bonds, Government Securities, units etc.) of investors in electronic form. Besides holding
securities, a depository also provides services related to transactions in securities. A depository
interfaces with the investors through its agents called Depository Participant (DPs). If an investor
wants to avail the services offered by the depository, the investor has to open an account with a
DP. This is similar to opening an account with any branch of a bank in order to utilise the bank's
services.
7. Commodity
Multi Commodity Exchange (MCX) is an independent commodity exchange based in India. It
was established in 2003 and is based in Mumbai. The turnover of the exchange for the period
Apr-Dec 2011 was INR 32 Trillion. MCX offers futures trading in Agricultural Commodities,
Bullion, Ferrous & Non-ferrous metals, Pulses, Oils & Oilseeds, Energy, Plantations, Spices and
other soft commodities.

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Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 33
8. Corporate Fixed Deposits
Corporate fixed deposits are similar to banking FD's, except that the money invested is with a
company and not a bank. Deposits under corporate FD's are governed by the Companies Act
under Section 58A. However, these deposits are unsecured, On the other hand, companies FD's
apart from giving a superior interest rate than banks, also provide investors with a short-term
deposits option with only a six month lock in period as well as the benefit of having no income
text deducted at source if the interest income is up to Rs 5,000 in one financial year. Investments
can also be spread in more than one company, so that interest from one company does not exceed
Rs 5,000.
Corporate FD' s however do not change their rates during a six month to one year period, which
provides stability to the investment, These deposits, while are not very large from a big
company's point of view end up running more on a constant addition and exclusion of investors.
The interest paid by the companies is usually on a half yearly basis. Majority of the companies
who raise money via fixed deposits have quarterly interest payouts and the interest vary from
9-13% based on the option one chooses. With such large fixed deposit issues available in the
market, mutual funds may lose out in investors who invest in their fixed income products, and
give to competition within the fixed income market space.

9. NSE Currency Derivatives


PEEAAR has currently permitted futures only on the USD-INR rates. PEEAAR Securities Direct
Pvt. Ltd. offers trading facilities to investors on the Currency derivatives segment of the NSE.
The contract Specification of the futures shall be as under:

Rajat Jindal
Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 34
Underlying Rate of exchange between one USD and INR

Trading Hours (Monday to Friday) 09:00 a.m. to 05:00 p.m.

Contract Size USD 1000


Tick Size 0.25 paise or INR 0.0025
Trading Period Maximum expiration period of 12 months

Contract Months 12 near calendar months


Final Settlement date / Value date Last working day of the month (subject to holiday
calendars)
Last Trading Day Two working days prior to Final Settlement Date

Settlement Cash settled


Final Settlement Price The reference rate fixed by RBI two working days
prior to the final settlement date will be used for
final settlement

The Currency Derivatives trading system of NSE, called NEAT-CDS (National Exchange for
Automated Trading Currency Derivatives Segment) trading System, provides a fully automated
screen-based trading for currency futures on a nationwide basis as well as an online monitoring
and surveillance Mechanism. It supports an order driven market and provides complete
transparency of trading operations. The online trading system is similar to that of trading of
equity derivatives in the Futures & Options (F&O) segment of NSE.

Distinct Features of PASLs Online Trading Products


Online transfer of funds through multiple banks.
Trade in NSE cash, NSE F&O and BSE on a single screen.
Real time streaming quotes.
Instant order/trade confirmations on the same window.
Integrated DP, back office and trading a/c.
Trade online and over phone.
24x7 customer support centre.
Benefit against selling of stock.

Rajat Jindal
Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 35
NO NO

Bank a/c Trading Demat

Buy/sell
Cheques Transfer slip
NSE/BSE

Banks like: Cash Services like:


Free Demat A/c
ICICI Bank for first Fin Yr
HDFC Bank Option of linking
AXIS Bank Margin your existing
Demat A/c with
the company
BTST concerned.

Derivatives
(NSE/BSE)

IPO online

Commodities (NCDEX/MCX)

Mutual funds

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Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 36
1.4 Competition Information

MOST REPUTED PLAYERS IN THE MARKET

HDFC SECURITIES
RELIANCE MONEY
KOTAK SECURITIES
INDIA BULLS
ICICI DIRECT

Indiabulls has emerged as one of the leading and fastest growing financial company in less than
two year, since its initial public offering in September 2004. It is Indias leading Financial
Services and Real Estate Company having over 640 branches all over India. Indiabulls serves the
financial needs of more than 4,50,000 customers with its wide range of financial services and
products from securities, derivatives trading, depositary services, research & advisory services,
consumer secured & unsecured credit, loan against shares and mortgage & housing finance. With
around 4000 Relationship Managers, Indiabulls helps its clients to satisfy their customized
financial goals.

Rajat Jindal
Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 37
HDFC Securities, a trusted financial service provider promoted by HDFC Bank and JP Morgan
Partners and their associates, is a leading stock broking company in the country, serving a
diverse customer base of institutional and retail investors. HDFCsec.com provides investors a
robust platform to trade in Equities in NSE and BSE, and derivatives in NSE. With
HDFCsec.com, An investor gets Speed, Convenience, Timely and Relevant Information, and
Expertise. The 3-in-1 Advantage Account integrates bank account; demat account and their
online trading account.

Reliance Money is part of the Reliance Anil Dhirubai Ambani Group and is promoted by
Reliance Capital, the fastest growing private sector financial services company in India, ranked
amongst the top 3 private sector financial companies in terms of net worth. Through its state of
art of online trading platform Reliance Money is making its active foray into equity, commodity
and forex broking. For the first time in India R trade will provide the Indian investors the facility
of trading in Equity, Commodity, Forex, Derivatives, Mutual Funds, IPOs, Insurance and Credit
Cards on a single platform.

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Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 38
ICICI Direct is the sister concern of ICICI Bank. It is an online broking firm which provides the
investors to trade in equity, IPOs, mutual funds and derivatives online. ICICI direct provides a 3
in 1 account that gives an investor: Convenience, Speed, Control, Independence, and Trust.
Presently, it is the most preferred stock broker in the market as compared to other stock brokers.

Kotak Securities, a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs
(one of the worlds leading investment banks and brokerage firms, holding 25% stake in the
company) is Indias leading stock broking house with market share close to 9%. Set up in 1994,
Kotak Securities is a leader in Institutional Stock Broking, Portfolio Management, Retail
Broking & Distribution and Depository Services. Kotak Securities has 835 outlets servicing over
3,35,000 customers and a coverage of 295 cities.

Rajat Jindal
Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 39
1.5 SWOT Analysis of Pee Aar Securities Ltd.

STRENGTHS

One of the largest broking house of India


Low charges on its products as compared to most of its competitors.
Advanced products given
After sale services are very good. Investors need is taken care off
Clearing & Trading member of F&O segment of NSE.
Trading terminals of two Commodity Exchanges MCX/NCDEX
Market leader in IPO in Delhi
Comprehensive approach towards investments advice for MFs
Intensive equity research (technical as well as fundamental) by investment
analysts
Commanding the faith of over 1,00,000 satisfied investors
More than 1000 trading terminals of NSE, BSE, F&O, NCDEX and MCX
installed
Highly dedicated workforce of employees and financial advisors in PASL
Strong presence in the business with a rich experience of over 20 years
Equipped with hi-tech in-house Research wing and technological resources
providing complete research solutions
Fast, Transparent and easy to use Online Internet Trading Platform

WEAKNESSES

Lacks awareness amongst most of the people.


Dual portal system of trading which causes problems sometimes.

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Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 40
OPPORTUNITIES

India has one of the world's lowest transaction cost based on screen based
transaction, paperless trading and T+2 settlement cycle
Growing retail investor participation, growing internet usage, faster telecom
connectivity and increasing comfortable levels with internet trading.
Great enthusiasm about our membership and business dealings with commodity
exchanges
Great opportunities also lies in the field of portfolio management services.

THREATS

Very sensitive

Effect of political environment, government policies, global economy, physical


infrastructure.

Competition from other top brokerage firms specially kotak securities and
Indiabulls securities.

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Enrollment No. - 10514701710
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CHAPTER-2
RESEARCH
METHODOLOGY

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Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 42
2.1 OBJECTIVES of the Study

The objective of my project is divided into various parts:

To get an overview of Indian Financial Market


To understand the working of Indian Stock Market
To study about the evolution of the Indian Stock Market
To gain an insight into operations of Pee Aar Securities Ltd.
To know about the products and services offered by Pee Aar Securities Ltd.
To understand customers perception about Pee Aar Securities Ltd.
To understand strengths & weaknesses of Pee Aar Securities Ltd.
To perform a competitive analysis of Pee Aar Securities Ltd. on the basis of various
factors

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Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 43
2.2 SCOPE of the Study
The scope of the project is to study and know about Indian Stock Market and Indian Financial
System. By studying the Online Trading, a clear option of dealing in stock exchange is been
understood. Unlike olden days the concept of trading manually is been replaced for fast
interaction of shares of shareholder. By this one can access anywhere and know the present
dealings in shares.
In outcry, the broker has to buy or sell securities for which he has received the orders. For
this, the broker or his authorized representatives goes to the stock exchange. Basically
the broker shouts while buying or selling the securities. The floor of the stock exchange is
divided into a number of market also post pit or wing based on particular securities dealt there.
In the post pit or wing, the broker using open outcry method makes an offer or bid price. For
making the necessary bargain, he codes his purchase or sales price, also known as offer or bid
price. The dealer, to whom the price is quoted, quotes his own price quotation of the dealer suits
the broker, he may lose the bargain. If he is not satisfied with the quote price he may turn to
some other dealer .On the close of the bargain, the dealer sell as well as the broker makes a brief
notes of the particulars of the deal. Such notes are made on some pad and on it the number of
shares, the price agreed upon, the name of the party, what membership number etc., are noted.
The disadvantages of outcry system are it lack transparency, the scope
of manipulation, Inaudibility and also speculation and malpractice is more, in order to overcome
the above problems, online trading came in to existence. Hence the need to study the advantages
of online trading system and its importance in making the market operations and smooth while
retaining the flexibility of conventional trading practices.
Since the year 2000 a big boom has been witnessed in the Indian Stock Market when the market
showed the coming up of Online Trading System. Many online stock trading companies came
but initially due to lack of online trading some companies vanished and some survived. The
companies which survived are getting the handsome returns also attracting the foreign
Investment Companies. Nowadays this sector is facing cut-throat competition and also provides
huge growth prospects. The study then goes to evaluate and analyze the findings so as to present
a clear picture of the trends in the online trading sector.

Rajat Jindal
Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 44
2.3 Managerial Usefulness of the Study

This study can assist the management in decision making process.


This study gives information about the competitors in the industry to the management.
This study can help the management to innovate new ideas regarding products and
services which can further fulfill the need of the existing as well as the potential
investors.
This study provides a comparative analysis of major brokerage houses in the market to
the management.
This study gives a SWOT analysis of the organization to the management.

2.4 Research Design

NON-PROBABILITY

The non-probability respondents have been researched by selecting the persons who does
the stock trading. Those persons who do not trade in stocks have not been interviewed.

EXPLORATORY AND DESCRIPTIVE RESEARCH

The research is primarily both exploratory and descriptive in nature. The sources
of information are both primary and secondary.
The objective of the exploratory research is to gain insights and ideas.
The objective of the descriptive research study is typically concerned with determining
the frequency with which something occurs.
A well structured questionnaire was prepared for the primary research and personal
interviews were conducted to collect the responses of the target population.

Sample Size
The sample size taken for the purpose of questionnaire is 30 clients of Pee Aar Securities Ltd.
and 50 clients of other corporate brokers. On the basis of their responses, the conclusions have
been drawn.

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BBA V Semester (Batch 2010-2013) Page 45
Data Collection
To determine the appropriate data for research mainly two kinds of data was collected namely
primary & secondary data as explained below:

PRIMARY DATA

Primary data are those, which were collected afresh & for the first time and thus happen
to be original in character. However, there are many methods of collecting the primary
data; all have not been used for the purpose of this project. The ones that have been used
are:

Questionnaire
Informal Interviews
Observation

SECONDARY DATA

Secondary data is collected from previous researches and literature to fill in the
respective project. The secondary data was collected through:

Text Books

E-Books

Websites

STATISTICAL TOOLS USED

The main statistical tools used for the collection and analyses of data in this project are:

Pie Charts and other Charts

Tables

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Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 46
CHAPTER-3
DATA ANALYSIS
&
FINDINGS

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Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 47
3.1 ANALYSIS OF PRIMARY DATA

3.1.1 View Point of a general investor through Questionnaire 1


The analysis questionnaire is done on the basis of information gathered through 50 clients
who do not invest with Pee Aar Securities, i.e., 50 clients of other corporate stock brokers.

1. What are your avenues of investment?

Avenues of Investment
90%

80%

70%

60%

50%

40% 80%

30% 60%

20% 40%

10% 20%
10%
0%
EQUITY COMMODITIES MUTUAL FUNDS IPO DERIVATIVES

INTERPRETATION:
It can be noted that most favorite avenue of investment for investors is Equity, followed by IPO,
then Mutual Funds, Derivatives and least being investment in Commodities. This may be due to
the fact that Equity trading is the most profitable source of investment due to involvement of
high risk.

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Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 48
2. How often do you invest?

Investors/Traders

40% TRADERS-40%
60% INVESTORS-60%

INTERPRETATION:
It can be observed that investors invest in financial markets more often than the traders. This can
be due to the fact that traders are low risk taking people.

3. Your mode of investing?

PERCENTAGE OF ONLINE AND OFFLINE


INVESTORS
60%
50%
40%
30%
PERCENTAGE OF ONLINE
20% AND OFFLINE INVESTORS
10%
0%
online-45% offline-55%

INTERPRETATION:
The above diagram and analysis of questionnaire tells that investors investing through online
mode are quite less than those through offline mode.

Rajat Jindal
Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 49
4. Do you know about Pee Aar Securities?

Awareness among investors about Pee Aar


45%
40%
Securities
35%
30%
25% 45%
20%
15%
Awareness among investors
10%
about Pee Aar Securities
5%
0%

INTERPRETATION:
It can be observed that around 45% of the investors are aware about PASL in todays world. This
shows the growing reputation of the PASL through its investor friendly policies.

Rate the following Corporate Stock Brokers on a scale of 1 to 8.


(1 being the best and 8 being the worst)

o ICICI Direct
o HDFC Securities
o India Bulls
o Kotak Securities
o Reliance Money
o Pee Aar Securities
o Angel Broking
o SMC Global Sec.

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Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 50
The ranking done below is on the basis of rank given by investors. The total points is determined
by multiplying the rank with its frequency and then added to give a final sum. The corporate
stock broker who has got the lowest sum is top ranked and so on.

BRAND RECALL RANKING


Indiabulls
8 1 Kotak Securities
7 2 Reliance Money
ICICI DIRECT
6 3
SMC GLOBAL
5 4 HDFC SECURITIES
PEEAAR SECURITIES
ANGEL BROKING

INTERPRETATION:
It can be seen that investors are attracted towards Indiabulls since it has been raked top by the
investors. After that investors prefer Kotak Securities, Reliance money and then ICICI Direct.
The investors rank the Pee Aar Securities as their seventh preference.

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Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 51
3.1.2 View Point of a PEEAARs investor through Questionnaire 2
The analysis questionnaire is done on the basis of information gathered through 30 clients
who invest with Pee Aar Securities Ltd.

1. For how long you have been investing with PEEAAR?

Period Of Investment

40%
MORE THAN 1 YEAR
LESS THAN 1 YEAR
60%

INTERPRETATION:
It can be interpreted from the information given by the investor that most people investing with
Pee Aar Securities are short term investors rather than retaining the securities for a longer period
of time.

Rajat Jindal
Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 52
2. What are your avenues of investment?

Avenues of Investment
90%
90%

80%

70%
60%
60%

50%

40%
30%
30% 25%

20% 15%

10%

0%
EQUITY COMMODITY MUTUAL IPO DERIVATIVES
FUNDS

INTERPRETATION:
It can be observed that a PEEAAR investor likes to invest mostly in Equity of the company. The
next most preferred investment avenue is Derivatives, IPO and then Mutual Funds. The least
preferred is investment in Commodity of PEEAAR.

Rajat Jindal
Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 53
3. Your mode of investing?

MODE OF INVESTMENT

OFFLINE
40%
ONLINE
60%

INTERPRETATION:
It can be interpreted that most of the PEEAAR investors prefer to invest through online mode
rather than offline mode, which is exactly opposite to others investors than PEEAAR investors.

4. In which exchange do you prefer trading?

PREFERENCE OF EXCHANGE

BSE
35%

NSE
65%

INTERPRETATION:
It can be observed that the most preferred Stock exchange through which PEEAAR investors
prefer to trade is NSE rather than BSE. In fact, almost 65% of the investors trade through NSE in
todays time.

Rajat Jindal
Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 54
5. What is your volume of trade weekly?

Weekly Trade Volume

35%
30%
25%
20%
15%
10%
5%
0%
LESS THAN ABOVE 10
1-5 LAKHS 5-10 LAKHS
1 LAKH LAKHS
Weekly Trade
20% 23% 32% 25%
Volume

INTERPRETATION:
It can be observed that the weekly trade volume of most PEEAAR investors is Rs.5-10 lakhs,
then more than Rs.10 lakhs, followed by Rs.1-5 lakhs. At last the least weekly trade volume is
less than Rs. 1 lakh.

Rajat Jindal
Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 55
6. Are you taking the services of Relationship Manager?

RM Services

no
11%

yes
89%

INTERPRETATION:
It can be seen that most PEEAAR investors take the services of Relationship Manager, i.e., 89%.
It may be due to the reason to be protected from any kind from fraud and wastage of resources
and lack of adequate knowledge about financial market processing.

7. Are you satisfied with your RMs services?

UNSATISFIED
10%

SATISFIED
90%

INTERPRETATION:
It can be observed that out of the investors who take the services of Relationship Manager, 90%
of those investors are satisfied with the services of the regional manager.

Rajat Jindal
Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 56
8. Rate the services provided by PEEAAR Securities.

SERVICES OF PEEAAR

POOR
5% EXCELLENT
20%
SATISFACTORY
30%

GOOD
45%

INTERPRETATION:
It can be interpreted from the questionnaire results that out of all the investors who invest in Pee
Aar Securities Ltd., 45% say that the services provided by PEEAAR are good, 30% say that the
services are satisfactory, 20% say it to be excellent, while 5% rate the services to be poor.

Rajat Jindal
Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 57
3.2 ANALYSIS OF SECONDARY DATA

Comparative Analysis of Major Corporate Stock Brokers

Top corporate stock brokers of India are being compared on the following
parameters:

VALUE INDICATOR MATRIX


1. Products offered
2. Brokerage charged
3. Services offered
4. Account opening and other charges

VALUE PROPOSITION
1. Tie up with banks
2. Additional Services Offered
3. Customer base

Rajat Jindal
Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 58
3.2.1 VALUE INDICATOR MATRIX

PRODUCT COMPARISON

Mutual funds

Commodities
Derivatives
Name of the broking firm

Equity

IPOs
KOTAK SECURITIES

INDIA BULLS

RELIANCE MONEY

ICICI DIRECT

HDFC SECURITIES

PEE AAR SECURITIES

BROKERAGE COMPARISON
Intraday
Delivery

Options
Futures

Name of the broking firm

KOTAK SECURITIES 0.45 0.05 0.06 0.06


INDIA BULLS 0.50 0.05 0.05 0.05
RELIANCE MONEY Flat Flat Flat Flat
ICICI DIRECT 0.75 0.05 0.05 0.05
HDFC SECURITIES 0.50 0.05 0.05 0.05
PEE AAR SECURITIES 0.25 0.03 0.03 0.03

Rajat Jindal
Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 59
SERVICES COMPARISON

A/c
% in BNST facility
Advisor with client

Intraday Exposure
Delivery Exposure

Research Reports
Online terminal

BNST facility

Exp in years
for
Name of the broking firm

activation
Advisory
Software

Days
75 4-6 6 14 7-8
KOTAK SECURITIES

100 4 8 3-4 5
INDIA BULLS

100 Nil 5 7
RELIANCE MONEY

100 4 20 7 7
ICICI DIRECT

HDFC SECURITIES 100 4 4 5 7

PEE AAR SECURITIES 100 NIL 6 7

OTHER CHARGES COMPARISON


Account opening

SMS charges Per


Reversal of A/c
maintenance fee

month in (Rs)
Stamp duty
(p.a) in (Rs)

opening fee

Name of the broking firm


Account

charged
fee (Rs)

KOTAK SECURITIES 750 360 250 Nil 100

INDIA BULLS 900* Nil 900 Nil 100

RELIANCE MONEY 750 50 Nil Nil 125

ICICI DIRECT 750 500 Nil Nil 100

HDFC SECURITIES 799 Nil Nil Yes Nil

PEE AAR SECURITIES 500 250 500 NIL 75

*Rs 900 charged as account opening fee by India bulls is reversed back at the time of closure of
the account.

Rajat Jindal
Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 60
3.2.2 VALUE PROPOSITION
Competitive positioning of corporate stock brokers is studied on the following parameters:

TIE UP WITH BANKS


Name of the broking firm Bank Tie ups

Kotak Securities ICICI, UTI, CITI, HDFC, Kotak Mahindra


India bulls ICICI, UTI, HDFC
Reliance Money UTI, HDFC, IDBI,ICICI
ICICI Direct ICICI
HDFC Securities HDFC
Pee Aar Securities ICICI,UTI,HDFC

Additional Services offered


PMS AMO MARGIN
FUNDING
KOTAK
INDIABULLS
RELIANCE MONEY
ICICI
HDFC
PEE AAR SECURITIES

PMS-Portfolio Management Service

AMO-After Market Order

Rajat Jindal
Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 61
CUSTOMER BASE
Name of the broking firm Customer Base
Kotak Securities 800000
India bulls 5000000
Reliance money 1500000
ICICI Direct 5000000
HDFC Securities 100000
PEE AAR Securities 100000

INTERPRETATION:
From the above analysis, we can conclude that PEE AAR Securities is growing day by day. Its
performance is much satisfactory and is giving a very tough competition to the other corporate
stock brokers in the market. Thus, we can conclude that PASL Network has a very bright future
if it goes on improving its performance like before.

Rajat Jindal
Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 62
3.3 FINDINGS
The findings from the study of the project and above analysis can be listed as below:-
Pee Aar Securities is among the largest broking house of India.
It is a market leader in IPO in Delhi.
The Company is growing at a very rapid rate. Its performance is much satisfactory and is
giving a very tough competition to the other corporate stock brokers in the market. It has
witnessed a growth not only the financial revenue but also in the number of clients and
the employee strength. It has low charges on its products as compared to most of its
competitors and advanced products are given by the company.
It provides 24x7 customer support centre. At Pee Aar Securities, customers come first.
And their satisfaction is not just their top priority but also the driving force for them,
every single day. The after sale services are very good. Investors need is taken care off.
It has a highly dedicated workforce of employees and financial advisors. It has a team of
experienced professionals dedicated to serving the firms corporate finance clients.
It has a diversified business model. The Company offer various financial services and
products ranging from equity, F & O and wholesale debt, insurance and IPO distribution,
depository services to cater to the specific needs of the retail and institutional investors
thus providing all these services in a single platform. It has a comprehensive approach
towards investments advice for MFs.
It provides the facility of Relationship manager. This is one of the unique services that
PASL offers to its customers. Every customer is provided with a relationship manager,
where in the customers can contact these managers at anytime of the day to get
information on the market or get their queries clarified.
It is equipped with hi-tech in-house Research wing and technological resources providing
complete research solutions. Since the launch of their website, www.peeaar.in and their
online trading platform, they have invested in building a technology platform. Their
trader terminal is an application which allows customers to trade on both the BSE and
the NSE. It has a fast, transparent and easy to use Online Internet Trading Platform.

Rajat Jindal
Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 63
CHAPTER-4
CONCLUSIONS

Rajat Jindal
Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 64
CONCLUSIONS

The online trading is growing with a rapid pace with the rising level of education among the
customers. The other factors being that the Indian Investor nowadays wants to deal himself in
trading rather than depending upon other middlemen. They also consider the factors like time
saving in doing the online transactions, convenience etc. Although some people feel that online
trading is not secure but the people doing the trading online is happy about the increasing
security concerns among the companies. The year 2010 has not been so good for the stock
market and the SENSEX and NIFTY has been dipping and affecting the business negatively for
these companies. This is due to the fact that at these times people do not prefer to open the
DMAT and Trading accounts. So the companies have to reduce their account opening fees to
attract more and more customers. Also people trade very less in the bearish market and the
companys profits against brokerage fees soars downwards. It is also a found fact that during the
bearish market the ratio of online trading becomes very less. Also there is an intense competition
among the companies and the companies come up with new and new promotion schemes such as
discounted and negotiable brokerages, Zero balance accounts, waiving a/c opening fee and AMC
etc. As the internet penetration is growing in India this business holds a huge potential for
growth.

New ideas are to be implemented to catch the customers. The strategy of giving more benefits to
the high end customers is very useful. Because stock market is a volatile market, anything can
happen to this market. But then again if anyone study the market well he can earn a lot. Again
like every coin has its two sides, similarly every financial instrument has its own features, its
advantage & disadvantage. So finally investor himself/herself has to decide where to invest.

The mantra for success in the current situation will be educating the customers about the
benefits of online trading and the amount of ROI that can be generated through it.

The total trading volume of brokerage companies has increased from US$1239.1 billion in 2008
to US$ 1492.1 billion in 2011, and is expected to reach US$ 6535.7 billion by 2015.

Rajat Jindal
Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 65
CHAPTER-5
RECOMMENDATIONS
&
SUGGESTIONS

Rajat Jindal
Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 66
RECOMMENDATIONS AND SUGGESTIONS

HDFC should start online mutual funds and commodities trading as soon as possible in
order to compete. It should also work on its browser so that trading can be done swiftly.
ODIN facility should also be started in order to make trading more convenient. Facilities
such as PMS, AMO and margin funding should also be looked upon.

ICICI has huge number of investors therefore in order to retain them it should minimize its
charges. Should provide software so that rates change automatically. Should start giving
online commodities trading.

Reliance Money in order to retain its position in the market should work upon its after sales
service. Should also introduce online recharge facility of accounts. ODIN software should
also be given to all its investors.

KOTAK securities should allow 100% sale of shares on BTST. Should also reconsider
their broking charges and make them more economical. They have high margin money
which can be cut down to an extent to attract more investors.

FOR PEE AAR SECURITIES

PASL should take proper steps to build up its brand image.


It should resolve the dual portal system of trading.
It should start the portfolio management services, margin funding.
Offer more attractive services in order to remain competitive.
Make Odin software easy to operate.
Improvement in the time delay of account opening is required.
There should be a specific number of clients under each relationship manger, so that each
client can be attended properly and can be imparted desired time.

Rajat Jindal
Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 67
CHAPTER-6
LIMITATIONS
OF THE STUDY

Rajat Jindal
Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 68
Limitations of the Study

1. There is lack of awareness among people about investing in stock market. So the people
who are aware of such things were found in specific areas for survey purposes.

2. Most people are comfortable with traditional system in small towns and like to trade from
their respective brokers, hence not providing a true opinion of theirs.

3. Most of the people they are not techno savvy. Though Internet penetration is growing still
it is not at the required level.

4. Some of the respondents who did not do online trading were able to respond to only some
questions.

5. Due to wide spread information of the data, the scope of project becomes very wide.
6. Given the time constraints, all the information could not be gathered.
7. The study is confined to online trading procedure only.

8. P r o b l e m s o f l i s t i n g a r e n o t c o v e r e d d u e t o l i m i t e d t i m e a n d t o k e e p
t h e s t u d y i n manageable limits.
9. The data is collected from the primary and secondary sources and thus is
subject to slight variation than what the study includes in reality.
10. The observations drawn are of past and present years only.
11. Detailed study on the topic was not possible due to limited size of the project.

Rajat Jindal
Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 69
BIBLIOGRAPHY

Rajat Jindal
Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 70
The following sources have been sought for the preparation of this report:
Books:
1. Nassar, David S., 2001, How to Get Started in Electronic Day Trading, McGraw-Hill,
London
2. Khan, M.Y., 2006, Indian Financial System 5E, Tata McGraw-Hill Education, London
3. Kothari. C. R, Research Methodology, New Age International (P) Ltd.,
New Delhi (2008 Edition).
4. Harper W. Boyd, Jr. Ralph Westfall, Stanley F. Stasch, Marketing Research, 2007
Edition.

Websites:
peeaar.in/overview.html
peeaar.in/award.html
www.rsec.co.in/home
peeaar.in/ISO_company.html
peeaar.in/onlinetrading.html
kotaksecurities.com/home/index.html
hdfcsec.com
peeaar.in/nse-currency-derivative.html
nseindia.com
nseindia.com/content/indices/ind_niftylist.csv
tradersedgeindia.com/bse_sensex.htm
indiahowto.com/what-is-sensex-nifty.html
indiabulls.com/default.htm
icicidirect.com/newsitecontent/Home/Home.asp
Wikipedia.org

Rajat Jindal
Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 71
ANNEXURE

Rajat Jindal
Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 72
A.1 QUESTIONNAIRE 1

NAME:

SEX: F M CONTACT NO:

AGE: MARITAL STATUS:

Comparative analysis of the leading stock brokers on different parameters

1. Do you invest in Share market?


YES NO
2. What are your avenues of investment?
Equity
Commodities
Mutual Funds
IPO
Derivatives
Any other
3. How often do you invest?
Frequently Occasionally
4. Your mode of investing?
ONLINE OFFLINE

5. Do you know about Pee Aar Securities?

If YES from where?

If NO Which of the following corporate stock brokers you have heard about?

Rajat Jindal
Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 73
ICICI Direct
HDFC Securities
Indiabulls
Kotak Securities
Reliance Money
Pee Aar Securities
Angel Broking
SMC Global Sec.

6 Do you invest with any of these?


If YES

If NO With whom?
7 Are you satisfied with your present service provider?

YES NO

Rank the following Corporate Stock Brokers on a scale of 1 to 8


(1 being the best and 8 being the worst)

CRITERIA Brand recall Services Economy Visibility

CORPORATE
STOCK BROKERS (brokerage)
ICICI Direct
HDFC Securities
India Bulls
Kotak Securities
Reliance Money
Pee Aar Securities
Angel Broking
SMC Global Sec.

Rajat Jindal
Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 74
A.2 QUESTIONNAIRE 2
NAME:

SEX: F M CONTACT NO:

AGE: MARITAL STATUS:

1. For how long you have been investing with PEEAAR?

2. In which Exchange do you prefer trading?


NSE BSE

3. What are your avenues of investment?

Equity
Commodities
Mutual Funds
IPO
Derivatives
Any other

4. Your major trading platform?

OFFLINE ONLINE

5. What are the changes would you like to recommend in online/offline trading system?

Rajat Jindal
Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 75
6. What is your volume of trade weekly?

Less than 1 lakh

Between 1 - 5 lakhs

Between 5 10 lakhs

Above 10 lakhs

7. Are you taking the services of a relationship manager?

NO

YES

8. If yes, are you satisfied with their services?

YES NO

9. Rate the services provided by PEEAAR Securities-

EXCELLENT GOOD SATISFACTORY

BAD

10. Your recommendations and suggestions -

Rajat Jindal
Enrollment No. - 10514701710
BBA V Semester (Batch 2010-2013) Page 76