A PROJECT REPORT ON

´Sales of Demat Cum Online Trading Account, competitor analysis and
Marketing Strategies of Sharekhan.µ
(FOR THE PARTIAL FULFILLMENT OF MASTERS IN BUSINESS ADMINISTRATION AND FULL TIME POST GRADUATE DIPLOMA IN BUSINESS MANAGEMENT)
$W

6+$5(.+$16(&85,7,(6397/7'

(Area Of Summer Training- Marketing/sales)

TABLE OF CONTENTS
Acknowledgement Executive summary

CHAPTER 1. INTRODUCTION
1.1 Introduction to the Topic 1.2 Objective of the Study 1.3 Job description

CHAPTER 2. COMPANY PROFILE
2.1 About the Company 2.2 Company Profile 2.3 Share khan Business

LITERATURE REVIEW
Introduction of the product
2.4 Types of product and features 2.5 Process of DMAT A/C 2.6 Documentation 2.7 Product charges 2.8 Sharekhan services 2.9 Closure of an Account

CAPTER 3 REARSEARCH METHODOLOGY
3.1 Data collection Secondary data Primary data

3.2 Tools and techniques 3.3 Limitations

CHAPTER 4. MARKETING STRATEGIES OF SHAREKHAN
4.1 Marketing Strategies
4.2 Unique objectives of the company 4.3 Comparative analysis 4.4 SWOT Analysis

CHAPTER 5. OBSERVATIONS AND ANALYSIS
5.1 Data Analysis 5.2 Interpretation

CHAPTER 6. FINDINGS AND RECOMMENDATION
6.1Findings 6.2 Recommendation.

CHAPTER 7. CONCLUSION

CHAPTER 8. RESULTS

CHAPTER 9. BIBLIOGRAPHY

ACKNOWLEDGEMENT
A project is never the work of an individual. It is moreover a combination of ideas, suggestions, review, contribution and work involving many folks. It cannot be completed without guidelines.

My sincere regards to my Project guide Mr. Ramesh Tanwar for his invaluable guidance and encouragement through out this project. Last but not the least my sincere thanks to all the faculty members of ³AIMS´ and my Sr, Sales executive and Team members for providing their help and advice whenever it was needed.

EXECUTIVE SUMMARY
Conceptually the mechanism of stock market is very simple. People who are exposed to the same risk come together and agree that if anyone of the person suffers a loss the other will share the loss and make good to the person who lost.

The initial part of the project focuses on the sales of types of the products of the company, and also focuses on the acquisition of the customer. The job profile is to create customer, making good relationship with them to have their references and motivating them to trade for the company benefit and their profit. It also enlightens the readers about the Sharekhan strategies to acquire the customer base. Further the project tells us about the profile of the company (SHARE KHAN). It provides knowledge to the readers about the company¶s history, mission, customer base and about the company in detail. and management of the company. Also it gives special emphasis on the selling of products and management of the company. Also it gives special emphasis on the selling of products.

The next chapter is devoted to study the comparative analysis of the competitors and the SWOT analysis, which tells about the Sharekhan edge over its competitors. This project leads us towards the job descriptions and difficulties faced by me. The next part of the project throws light upon my findings and analysis about the company and the suggestions for the company for better performance. During this project I have been given the responsibility of creating customer bringing HNI customer, handling team, generating leads.

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These scripts are then transferred to DP i. This is a market. INTRODUCTION INTRODUCTION OF THE TOPIC The topic is to study the consumer preference towards investment in stock market. This product offers customer two type of investment option INTRADAY and DELIVERY both has there own benefits and . where as online trading A/C is a tool of purchasing/ selling of shares or scripts online. it depends up on the investment customer made. DEMAT A/C is a pool of various scripts and securities.e.CHAPTER 1. But risk is high in this case. Depository account after three days. This is a better option to have better returns on the investments then investing in banks. This topic includes the practical experience of selling company product that is followed by studying the consumer preference or interest towards share market. mutual fund or bonds et. which is uncertain some time it gives huge profit and also vice versa.

e. The charges that company charge in terms of brokerage is different in both the cases. Intraday means investing in share market for a day i. . Delivery is purchasing share and selling those shares next day. purchasing and selling of the share in one day.limitation but a better way to have more returns on investment.

3) Creating relationship with the customer to have there sources.  My job profile is to generate the lead by cold calling.OBJECTIVE OF THE STUDY i) Main Objective The main objective is selling of the DMAT Account cum Online Trading Account. 2) Marketing of the product.  My job profile is to coordinate the team and also help them to sale the product and also help them in field. 4) Motivating customer for trading. JOB DISCRIPTION The company placed me as a Summer Trainee.  My job profile is to understand customers¶ needs and advising them to make a portfolio as per their investment. I have been handling the Following responsibilities:  My job profile is to sale of product of the organization. ii) Specific Objective 1) Creating customer. .

30 AM y Fixing appointment with clients. Faridabad and NCR.  Lawyers  Travel agencies  Transport business  House wives  Businessmen  Corporate employees etc. My job profile is to do sales promotion through e-mails. . making cold calling.  Charted accountants. DAY TO DAY JOB EXPERIENCE y Reporting time: 9. AREA ASSIGNED I covered areas like Delhi. distributing pamphlets and etc. TARGET MARKET  Different properties dealers. TARGET ASSIGNED  To sell 18 accounts per month. canopies.  My job profile is to convince customer for investment in Commodity. Gurgaon. Ghaziabad.

. y Demonstrate the product on Internet to the client.y Visit clients place. y Completing the formalities like filling the application form and documentation. y Cold calling.

000 clients. daily volume. 1 player in online business ‡ Largest network of branded broking outlets in the country servicing 7.00.CHAPTER 2. MANAGEMENT TEAM .Apr Dec¶04 ‡ No. COMPANY PROFILE ABOUT THE COMPANY SHAREKHAN RETAIL BROKING ‡ Among the top 3 branded retail service providers (Rs 650 crs avg.

com-was launched on Feb 8. Sharekhan offers its customers a wide range of equity related services including trade execution on BSE. . The number of trading members currently stands at over 3 Lacs. Sharekhan alone accounts for 22 per cent of the volumes traded online. investor friendly language and high quality research. Derivatives. the site has a registered base of over 4 lakh customers. The site gives access to superior content and transaction facility to retail customers across the country. 2000. online trading. Sharekhan alone accounts for 22 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. Known for its jargon-free. Dinesh Murikya. 2000. The number of trading members currently stands at over 3 Lacs. Known for its jargon-free. The owner of the company is Mr. NSE. While online trading currently accounts for just over 1 per cent of the daily trading in stocks in India. Sharekhan is one of the leading retail brokerage firms in the country. The firm¶s online trading and investment site-www. The firm¶s online trading and investment site-www. The site gives access to superior content and transaction facility to retail customers across the country. the site has a registered base of over 4 lakh customers. which has over eight decades of experience in the stock broking business. investment advice etc.The company has an eighty years experience in brokering business it was earlier known as SSKI Group. While online trading currently accounts for just over 1 per cent of the daily trading in stocks in India.Sharekhan. investor friendly language and high quality research.Sharekhan. It is the retail broking arm of the Mumbai-based SSKI Group.com-was launched on Feb 8. depository services.

With a legacy of more than 80 years in the stock markets.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. SSKI¶s institutional broking arm accounts for 7% of the . The Morakhia family holds a majority stake in the company. Verisign Financial Technologies India Ltd. the SSKI group ventured into institutional broking and corporate finance 18 years ago. On April 17. This was for the first time that a net-based trading station of this caliber was offered to the traders. Microsoft. Nexgenix. Spider Software Pvt Ltd. Sharekhan has always believed in investing in technology to build its business. HSBC. In the last six months SpeedTrade has become a de facto standard for the Day Trading community over the net. Cambridge Technologies. Vignette. of which 20 are fully-owned branches. like Sun Microsystems. Oracle. Presently SSKI is one of the leading players in institutional broking and corporate finance activities. Sharekhan¶s ground network includes over 250 centres in 123 cities in India. The objective has been to let customers make informed decisions and to simplify the process of investing in stocks. SSKI holds a sizeable portion of the market in each of these segments. to build its trading engine and content. The company has used some of the best-known names in the IT industry. Intel & Carlyle are the other investors. a net-based executable application that emulates the broker terminals along with host of other information relevant to the Day Traders. 2002 Sharekhan launched SpeedTrade.

com to India·s largest chain of branded Sharekhan Business 1 Brokering business 2 White feathering house production .market for Foreign Institutional portfolio investment and 5% of all Domestic Institutional portfolio investment in the country. in terms of the size of deal.\ 250 branded share shops across 110 cities in From sharekhan. and Shopper¶s Stop. Gujarat Pipavav. The Corporate Finance section has a list of very prestigious clients and has many µfirsts¶ to its credit. Foreign Institutional Investors generate about 65% of the organization¶s revenue. The group has placed over US$ 1 billion in private equity deals. It has 60 institutional clients spread over India. sector tapped etc. with a daily turnover of over US$ 2 million. Hutchison. Planetasia. Some of the clients include BPL Cellular Holding. UK and US. Essar. Far East.

Mission To educate and empower the individual investor to make better investment decisions through quality advice and superior service. Stock Exchange Mumbai .Vision To be the best retail brokering Brand in the retail business of stock market.

Sharekhan is the retail broking arm of SSKI. an organization with more than eight decades of trust & credibility in the stock market. ‡ Amongst pioneers of investment research in the Indian market ‡ In 1984 ventured into Institutional Broking & Corporate Finance. ‡ Leading domestic player in Indian institutional business ‡ Over US$ 5 billion of private equity deals .

5 % Morakhia family .S. 49. LTD. Owns 56% of Owns 50. LTD. Ltd. Retail broking arm of the group Shareholding pattern: 55.5% of SSKI INVESTOR SERVICES PVT. Investment Banking arm of the group Shareholding pattern: 50. Kantilal Ishwarlal Securities ‡ SSKI Corporate Finance ‡ Idream Productions SSKI ± Corporate Structure SSKI Securities Pvt.5% SSKI Securities Pvt.5% Morakhia family SSKI CORPORATE FINANCE PVT.SSKI Group Companies ‡ SSKI Investor Services Ltd (Sharekhan) ‡ S. Ltd.

In order to dematerialize certificates. dematerialization. an investor will have to first open an account with a DP and then request for the dematerialization of certificates by filling up a Dematerialization Request Form (DRF). Comfort: reputation of the DP. DPs are attached to the depositories very much the same way as commercial banks are attached to RBI. Reasons to choose DP You can select your DP to open a demat account just like you select a bank for opening a savings account. All interactions including account opening. business hours. range of services etc. The investor has to ensure that before the certificates are handed over to the DP for . Some of the important factors for selection of a DP can be: Convenience: proximity to the office/residence. past association. which is available with the DP. Dematerialization The dematerialization system is an alternative to the physical existence of securities. Cost: the service charges levied by DP and the service standard.LITERATURE REVIEW GENERAL INTRODUCTION DP (Depository Participants) As an investor you open a securities account with a DP. and submitting the same along with the physical certificates. transactions. Find out if the DP is in a position to give the specific service you may need. pledge etc are done through the DP. In this system securities are converted into the electronic form and deposited in a depository account in the investors name.

y The broker receives payment from the stock exchange (clearing corporation). Instead of delivering physical securities to the broker. investor's broker gives instruction to his DP for delivery to clearing corporation. you instruct your DP to debit your account with the number of securities sold by you and credit your broker's clearing account. y Investor gives instruction to DP to debit his account and credit the broker's (clearing member pool) account. y Before the pay-in day. y NSDL . This delivery instruction has to be given to your DP using the delivery instruction booklet received from the DP at the time of opening the account.demat. The procedure for selling securities is given here below: y Investor sells securities in any of the stock exchanges linked to NSDL through a broker. y The investor receives payment from the broker for the sale in the same manner payment is received for a sale in the physical mode. they are defaced by marking "Surrendered for Dematerialization" on the face of the certificates. Procedure for selling dematerialized securities The procedure for selling dematerialized securities in stock exchanges is similar to the procedure for selling physical securities.

Historical records. the origin of stock broking in the country may go back to a time. Using innovative and flexible technology systems. debentures and bonds representing titles to property were first issued on the condition of transfer from one person to another and the earliest record of dealings in securities in India is the East India Company's loan securities. However. way back in the 18th century. In the depository system. the paperbased settlement of trades caused substantial problems like bad delivery and delayed transfer of title till recently. At NSDL. This depository promoted by institutions of national stature responsible for economic development of the country has since established a national infrastructure of international standard that handles most of the trading and settlement in dematerialized form in Indian capital market. Transfer of ownership of securities is done through simple account transfers. NSDL aims at ensuring the safety and soundness of Indian marketplaces by developing settlement solutions that increase efficiency.Although India had a vibrant capital market. which is more or less similar to holding funds in bank accounts. we play a quiet but central role in developing products and services that will continue to nurture the growing needs of the financial services industry. Consequently. the cost of transacting in a depository environment is considerably lower as compared to transacting in certificates. Background of Exchanges The stock trading history in India is obscured in the mists of time. as and where they exist. rarely speak about business and speculative activity except in passing. Bombay Stock Exchange was established in 1875 as 'The Native Share and Stockbrokers Association' and has evolved over . securities are held in depository accounts. minimize risk and reduce costs. The enactment of Depositories Act in August 1996 paved the way for establishment of NSDL. This method does away with all the risks and hassles normally associated with paperwork. the first depository in India. The first stock exchange in India. which is more than a century old. when shares. NSDL works to support the investors and brokers in the capital market of the country.

Ludhiana. Ahmedabad. The country's second stock exchange was established in Ahmedabad in 1894. several stock exchanges have been established in the major cities of India. Calcutta. Calcutta. In 1905. India's other major stock exchange National Stock Exchange (NSE). Bangalore. Kanpur. CSE can also trace its origin back to 19th century. which led brokers to shift the arena of their operation. Kochi. There are now 23 recognized stock exchanges ² Mumbai (BSE. Vadodara. Bhubhaneswar. Mangalore. where at present. stands the offices of the Chartered Bank (now known as Standard Chartered) on Netaji Subhas Road. From a get together under a 'neem tree' way back in the 1830s. Chartered Bank began to construct their own building. . Computerized networks also made it possible to connect to each other and have fostered the growth of an open.the years into its present status as the premier stock exchange in the country. Rajkot. Delhi. which was founded in 1878. Indore and Meerut. The centre of their activity was near a neem tree. Jaipur. Pune. Hyderabad. Coimbatore. Chennai. NSE and OTC). even older than the Tokyo Stock Exchange. Guwahati. Today. Over the years. nor any permanent place for congregation. followed by the Calcutta Stock Exchange (CSE). was established in April 1993. global securities market. most of the global stock exchanges have become highly efficient. Though Stock Broking was practiced in Calcutta as early as 1836. computerized organizations. the members of the broking profession had neither any code of conduct for their guidance. Patna. to the neighbourhood of the recent Allahabad Bank. It may be noted that BSE is the oldest stock exchange in Asia. promoted by leading financial institutions. the CSE was formally established in May 1908.

but no agreement could be reached on implementing this system. SEBI set up the G. S. 1980 under the relevant provisions of the Securities Contracts (Regulation) Act. 1995 and October 5. SEBI directed the stock exchanges to discontinue the traditional system of carry forward of transactions (badla). In February 1995. In December 1993. Today the total membership has risen to more than 900. The number of companies listed on the Exchange is more than 4800.000 crores. with a view to render useful service to investors. This Revised Carry Forward System (RCFS) was implemented in the BSE in January 1996. The Annual turnover of the Exchange in 2004-05 was to the tune of around Rs. the President of the BSE wrote to SEBI in January 1997 requesting a relaxation of certain aspects of the . The Calcutta Stock Exchange has been granted permanent recognition by the Central Government with effect from April 14. 1995.The brokers had no shelter and business was carried on in the open place. The inconvenience of such trading. an association was formed under the name and style of the Calcutta Stock Exchange Association at 2. SEBI adopted the system recommended by the GSPC with some modifications in its decisions of July 27. A year after the implementation of RCFS. prompted brokers to organise themselves and in May 1908. 12. the Stock Exchange had 150 members. it proposed an alternative system in March 1994. Subsequently. China Bazar Street. 1956. 00. The GSPC submitted its report in March 1995. At the time of incorporation in 1908. which contains several corporate and institutional members. Patel Committee (GSPC) to review the system of carry forward transactions. but the other exchanges in which the traditional carry forward system had been prevalent before December 1993 did not come forward to adopt the RCFS.

the BSE-200 and the DOLLEX. SEBI had decided that "the implementation of the revised carry forward system would be reviewed periodically by the Board. 18. In its meeting of March 27. Besides .RCFS to make it more practical and efficient. two index series viz. Coverage: The equity shares of 200 selected companies from the specified and non-specified lists of this Exchange have been considered for inclusion in the sample for `BSE-200'. market capitalization as also the newly emerged industry groups. the Exchange constructed and launched on 27th May 1994. SEBI reviewed the entire sequence of developments relating to the RCFS and specifically noted that while introducing the RCFS in July 1995. The selection of companies has primarily been done on the basis of current market capitalization of the listed scrips on the exchange.421 crores to around Rs. the first review being after three months".000crores at end of july 2005. to a considerable extent. BOMBAY STOCK EXCHANGE Background: The BSE Sensitive Index (1978-79=100) has. been serving the purpose of quantifying the price movements as also reflecting the sensitivity of the market in an effective manner. 5. 1997. The number of companies listed on the Bombay Stock Exchange has registered a phenomenal increase from 992 in the year 1980 to about 4800 companies by the end of july 2005 and their combined market capitalization rose from Rs. 00. Towards this end. These factors necessitated compilation of a new broad-based index series reflecting the present market trends in a more effective manner and providing a better representation of the increased equity stocks.

950 crore as on August 17.800 listed companies. Against nearly 1. The BSE has lost its market share in these segments from 36 per cent to 31 per cent in the last three years. the turnover in NSE was Rs 3. the market activity of the companies as reflected by the volumes of turnover and certain fundamental factors were considered for the final selection of the 200 companies. the total market capitalisation of BSE is around Rs 20 lakh crore.926 crore. Choice of Base Year: The financial year 1989-90 has been chosen as the base year for the price stability exhibited during that year and due to its proximity to the current period. 2005.94 crore was also much higher than the volumes of BSE.400 companies listed on the NSE. the turnover in BSE stood at around Rs 2. As the derivatives segment has immense effect on the cash market. The volumes (numbers of shares traded) of NSE at 2. Despite such a huge number of listed companies. the BSE has nearly 4. NATIONAL STOCK EXCHANGE The 13-year-old National Stock Exchange (NSE) has outshined the 130-year-old Bombay Stock Exchange (BSE) in terms of turnover and volumes.market capitalization. On the other hand the NSE has a total market cap of Rs 19. the movement in this segment mostly determines the trend in the market.7 lakh crore. . The NSE has rewritten a number of rules and upset many traditions. While.

the Nifty represents 50 stocks. While. CNX Nifty also has more number of stocks than the BSE Sensex. .The most tracked index on NSE. The presence of more stocks on Nifty also gives a better valuation than Sensex. the Sensex represents only 30 stocks.

Instant cash transfer facility against purchase & sale of shares.com y y y y Integration of On-line trading. Saving Bank and Demat Account. Competitive transaction charges. Features Classic screen serves hot Online trading account for investing in Equity and Derivatives via www. Instant order and trade confirmation by E-mail.TYPES OF THE PRODUCTS CLASSIC ACCOUNT This account allows the client to trade through our website www.sharekhan.com and is suitable for the retail investor who is risk-averse and hence prefers to invest in stocks or who do not trade too frequently. .sharekhan.

Single screen interface for Cash and derivatives and more. y y y . Provision to enter price trigger and view the same online in market watch. SPEEDTRADE SPEEDTRADE is an internet-based software application that enables you to buy and sell in an instant.(Cash & Derivatives) Personalized market watch.(NSE) Real-time streaming quotes. Single screen trading terminal. Customer can fast trade then the classic product Features Instant order Execution and Confirmation.y y y y Streaming Quotes. tic-by-tic charts. It is ideal for active traders and jobbers who transact frequently during day's session to capitalize on intra-day price movement.

Market summary (Cost traded scrip. highest calue etc. Back-up facility to place trades on Direct Phone lines. Customer can view 425 scripts at a time Customer can view graphical presentation .) y y y Hot keys similar to brokers terminal. Alerts and reminders.

PROCESS ON ACCOUNT OPENING LEAD MANAGEMENT SYSTEM (LMS)/ REFERENCES CONTACT TELEPHONE AND PERSONAL VISIT APPOINMENT DEMONSTRATION AGREE DISAGREE NO DOCUMENTATION FILLING THE FORM SUBMISSION THE FORM LOGIN OF THE FORM SENDIND ACCOUNT OPNING KIT TO CUSTOMER TRADING .

DOCUMENTS: 1) Photo ID Proof 2) Residence Proof (Permanent) · Passport · Pan Card · Driving Licence · Voter's ID · MAPIN UIN Card · Passport (valid) · Voter's ID · Driving Licence (valid) · Bank Statement (latest) · Telephone Bill (latest) · Electricity Bill (lates) · Ration Card · Flat Maintanance Bill (latest) · Insurance Policy (latest) · Leave-Licence/Purchase Agreement 3) Residence Proof (Correspondence) · Passport (valid) · Voter's ID · Driving Licence (valid) .

. or Rs. 1000/= In Favour of M/s S.· Bank Statement (latest) · Telephone Bill (latest) · Electricity Bill (lates) · Ration Card · Flat Maintanance Bill (latest) · Insurance Policy (latest) · Leave-Licence/Purchase Agreement 4) Two Photographs (Passport size) ACCOUNT OPPENING CHARGES 1 For classic account Cheque of Rs. Or 1 For Speedtrade Account Cheque of Rs.Kantilal Ishwarlal Securities Pvt.S. 500/= or 350/= in case of corporate offer.S. 750/= In Favour of M/s S.Kantilal Ishwarlal Securities Pvt. Ltd. Ltd.

ACCOUNT OPENING CHARGES COMPARISION Charge Classic Account Speedtrade Account Account Opening Rs. NIL first year Rs. 750/= Rs. 1000/= Intraday-0.m.10% Delevery-0.50% on conversation with rahim not general Intrady-0. Depository Charges Account Opening Charges Annual Maintenance Charges Rs. NIL Rs.10% B! roakerage Delevery-0. ** Taxes as per govt.a. from second year onward .50% * Refundable in case the brokrage is more than Rs. 500/= p. 300/= p.

Brokerage: 0.1% = 2 p.10 % Plus Taxes for Each leg of Intra-day trade 0. but there is a min chargeable amt of 5 p). .50 % Plus Taxes for trades resulting in delivery Minimum Brokerage Intra Day Per Share: 5 Paisa each leg (buy or sell) for Intra-day Trades (For eg on a Rs 20 Scrip. brokerage @0.

CITI. With this service. Research tips Company provide 4-6 e-mails to there customers per day Online trade in shares Sharekhan customers can online trade through there computers. the CLASSIC and SPEEDTRADE ACCOUNT also gives you our Dial-n-trade services. OBC. HDFC.SHARKHAN SERVICES Dial-N-Trade Along with enabling access for your trade online. through Internet during the market timings Online fund transfer We have tie up with seven banks for online fund transferring i.  Research Based Investment Advice  Investment and Trading Services . INDUSIND and UTI bank for online money transfer. UBI. IPO ON-Line Can apply all the forthcoming IPO online hasselfree.e. IDBI. all you have to do is dial our dedicated phone lines 1-800-22-7500.

Commodities . Training and Seminars  Technology Based Investment Tools  Integrated Demat Facility  COUSTOMRE CAN TRADE IN Equities. Derivative.

However. In case there is any balance in the account sought to be closed. This can be achieved by using normal off market transfer instruction. 2. or (b) Transferring the balance to the credit of another account opened by the same account holder(s) either with the same participant or with a different participant. CLOSURE ON CLIENT¶S REQUEST A DP can close a depository account on receipt of an application in the prescribed format. The request for closure should be processed only after ensuring that there is unbalance lying in the account. An account can be closed only when there is no balance in the account. the following steps are necessary. The application should be made by the account holder or by all the joint-holders. 3. The notice should clearly state the . CONSOLIDATION OF ACCOUNT Some clients could have opened multiple accounts to dematerialize their shares held in multiple combination and sequence of names.CLOSURE BY DP The DP may also initiate closure of a client's account if the client has defaulted in performing its obligations laid out in the client-participant agreement. they may not need so many accounts after they have dematerialized their shares and may want to bring all their share holdings into one or fewer accounts. Before closing the account the DP should ensure that all pending transactions have been settled. The participant should give sufficient notice to the client before initiating closure of his account. (a) Re-materialization of all securities standing to the credit of the account at the time of making the application for closure.CLOSURE OF ACCOUNT 1.

the depository advises the old DP to close the account. The process of closing account in such a case is the same that of client-initiated closure. subsequent to closure of old clearing account. Once the new CM-BP-ID is allotted. For this. take place in the new account. On receipt of intimation from the new participant. CLOSURE /SHIFTING OF CLEARING ACCOUNT A clearing member may transfer its clearing account from one DP to another DP. .reasons for closure of account. All payout of securities. the new DP forwards the application to the depository for approval and allotment of a new CM-BP-ID. simultaneously applications have to be made for closure of account to the earlier DP and for opening of new clearing member account to the new DP. the new DP opens a New clearing account and intimates the depository about the new client-ID. On receipt of the application. The old DP then closes the account and intimates the clearing member.

It may be understood as a science of studying how research is done scientifically. which are concerned with describing the characteristics of a particular individual or a group. what data have been collected and what particular method has been adopted. RESEARCH DESIGN: A research design is the arrangement of conditions for collection and analysis of in a manner and aims to combine relevance to the research purpose with economy in procedure. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with logic behind him.CAPTER 3 REARSEARCH METHODOLOGY REAEARCH METHODOLOGY Research methodology is a way to systematically solve the research problem. Since the aim is to obtain the accurate information about the customer in terms of his interest . Why a research study has been undertaken. in what way and why the hypothesis has been formulated. Descriptive research is those studies. time and money. Research design is needed because it facilitates the smooth sailing of the various research operations thereby making research as efficient as possible yielding maximum information with minimal expenditure of effort. why particular technique of analyzing data has been used and a host of similar other questions are usually answered when we talk of research methodology concerning a research problem or study. how a research problem has been defined. I have adopted descriptive and conclusive research design. In fact the research design is the conceptual structure within which research I conducted.

e. their needs and etc. I have used the techniques of questioning customer in order to know their consumer behavior. .e. LMS i. the researcher will have to collect primary data. PRIMARY DATA: I have collected primary data through personal references.  Leads of the other company.  Telephone directory  Used leads of the company. telephone list for tele calling. It is very important for the sales executive to study the mind of the customer so that the personal visit would not be a waste of time. their interests. inaccurate. DATA SOURCES: The researcher can gather primary data. i. Secondary data are data that were collected for another purpose and already exist somewhere. money and efforts. SECONDARY DATA: The main source of information for the project was  Weakly magazine. Leads management system of the company. or unreliable. Most marketing research projects involve some primary data collection. incomplete. Customer references. When the needed data do not exist or are outdated. secondary data or both. Primary data are data specially gathered for a specific purpose or for a specific research project.towards investment in stock sector.

CONTACT METHOD: The marketing researchers have four choices to contact the respondents:  Mail.  Personal and  Online. .  Telephone. I chose the above techniques to reach to the customer in a most convenient method.

what is your perceived probles? How much can you trade in one transaction? Any reference of other willing to invest in the share market? For Further Assistance. New Delhi. are you willing to Attend the Sharekhan ³First Step´ program? In case you are an investor already. but interested.com  .Please put a tick mark against the applicable option: Questionnaire Do you invest in share market? How aware are you about investing in shares? Response (Tick the appropriate option) Yes _________ No _________ Well aware ____________ Basic awareness ___________ Not aware __________ Yes _________ No _________ Online ___________ Offline ___________ Daily ___________ 2 to 3 times week __________ Once a week __________ 2 to 3 times month __________ No set pattern of trading ______ Sharkhan _____________ Indibools ______________ ICICI Direct ____________ India Infoline ___________ Kotak _____________ Subbroker of ___________ Offline (Please specify) : Risk Factor ____________ Previous bad experience ________ No Knowledge ____________ Time Constraints __________ Other (Pls seecify): In case you are not aware. : _______________________ E-mail ID: _______________________________________________________________ Chakresh kumar singh cM-43. Kindly provide your following details :Name ______________________________ Contact No . : 9718202011 ansh.000@rediffmail. what type of trading are You involved in? How frequently do you trade? Whom are you registered with? In case you do not invest in shares. Gk1. Mob No.

y Inaccurate Leads: Sometimes leads are provided which had error in it.e. y Some people are comfortable with traditional system: As people are doing trading from there respective brokers. they want to trade off line. Sometimes this leads to a great misconception of the entire process. y Lack of Techno Savvy people and poor internet penetration: Since most of the people are quite experienced and also they are not techno savvy. through telephone or etc. .LIMITATIONS y Lack of awareness of Sharekhan and stock market: Since the area is not known before it takes lot of time in convincing people to start investing in shares primarily in IPO¶s. y Some respondents are unwilling to talk: Some respondents either do not have time or willing does not respond. they are quite comfortable to trade via physical form of paper. as they are quite annoyed with the phone call. They are the unsatisfied clients of the company. which varies from only 5-digit phone number to wrong phone number. y Misleading concepts: Some people think that as all the shares are in electronic form and they don¶t have any physical proof. Also Internet penetration is poor in India. i. some people have registered to know about their personal quarries.

customer servicing and repair. packaging. which are interested. distribution. and sales and distribution. in which needs and attitudes and competitors' products are assessed. promotion. This is the most important technique to save time and . y The broad marketing thinking that will enable an organization to develop its products and marketing mixes in the right direction. MARKETING STRATEGIES OF THE COMPANY  Tele Calling: The company uses the tele calling/ phone calling to reach the customer.CHAPTER 4. consistent with overall corporate objectives. y y Marketing starts with market research. A business¶ approach to marketing its products/ services expresses in broad terms. and. which forms the basis for developing a marketing plan. where applicable. and continues through into advertising. MARKETING STRATEGIES OF SHAREKHAN Marketing strategy? A strategy that focuses on developing a unique long-run competitive position in the market by assessing consumer needs and the firm's potential for gaining a competitive advantage.

company put their canopies and customer who are willing to know about the product come forward and provide best of their knowledge. Company provide facility to the customer on online to fill the registration form through which the companies executives can provide more information to the customer.  Yellow Pages: Yellow pages are used to gather data for making calls so that customer who did not fine time and are unaware of the product can know about the product. It also increases the product awareness because it is generally put at the crowdies places like near main markets.  LMS: It is leads management system which means leads are generated by the customer who want to purchase the product of the company. cinema s. hotels. ATM or etc where people come in good numbers. . This is the strategy with which one can motivate customer to go for the product and etc. Customers are given freedom to ask question related to the products this is the technique used to increase the awareness of the company.giving demo of the companies product through making call in order to know the customer interest towards the product.  Canopy¶s: This is the most important technique used by sharekhan securities to market its product in different areas of the city. Besides this companies executives ask customer to fill the questionnair that tells the company about the levels of brand awareness.

mutual funs by giving tips for investment advises through e-mails or toll free calls for this purpose customers are provided relationship manager who give investment advise and also make transaction on their behalf on demand. B satisfying customer executives ask their references that not only increase the awareness but also increase the good will of the company. and advertisement in newspapers.  Competitiveness: The company is innovative and uses the latest technology to improve the product to fulfill the demands of the customers. . magazines. Sharekhan use banners. The company is competitive in terms of the product price and facilities it offers to the customer.  References: Sharekhan strategy is to satisfy the customer in terms of their need by providing them timely services and knowledge about the trade in equities. they describe the details of the product. Direct Marketing Sharekhan executive¶s reaches to the does of the customer by fixing appointments with the interested customer. Executive give demonstration of the products so that customer can understand better. Sharekhan make it easy for the customer to make online transaction of shares.  Advertising: Advertising is the most important tool of increasing awareness of the product and this is the most widely used technique by the company to tell about the new features and new lunch by giving briefing of the product. distribution of pamphlets.

 Internet: Company provides detailed information about the products on Internet so that customer can know about the product easily and completely. . semi branches servicing affluent/aggressive traders through highly skilled financial advisors ‡ 250 independent investment managers/franchisees servicing 50000 highly valued clients ‡ Strong advisory role through Fundamental & technical research ‡ New initiatives . ‡ Dealing in mutual funds.Portfolio Management Services & Commodities trading. UNIQUE OBJECTIVE OF THE COMPANY ‡ 200000+ retail customers being serviced through centralized call centre / web solution ‡ 60 branches.

Limited ground network. present in 20 Cities. Insurance.com. In 2000 e-broking was started under the brand name of 5 paisa.com COMPANY BACKGROUND Indiainfoline was founded in 1995 and was positioned as a research firm.50% each side + ST PRICING FOR HNI CLIENTS .Different competitors 5paisa.It also acts as a distributor of various financial services i. Company Fixed Deposits. Online Account Types ‡Investor Terminal : Investors / Students ‡Trader Terminal : Day Traders / HNI¶s PRICING FOR RETAIL CLIENTS Investor Terminal ‡Account Opening: Rs 500 ‡Demat 1st Yr: Rs 250 ‡Initial Margin: Rs 2500(Compulsory) ‡Min Margin Retainable: Rs 1000 ‡Brokerage: Trading 0.10% each side + ST Delivery 0.e GOI securities. Apart from offering online trading in stock market the company offers mutual funds online.

25%) ‡Account Access Charges Monthly Rs 800. This can be withdrawn only on closure of account. Online fund transfer through bank is not credited instantly.T is feature heavy compared to Speetrade charting) ‡Manual Accounting The 5 paisa accounting system is manual.10% each side + ST Delivery 0.Trader Terminal ‡Account Opening: Rs 500 ‡Demat 1st Yr: Rs 250 ‡Initial Margin: Rs 5000(Compulsory) ‡Min Margin Retainable: Rs 1000 ‡Brokerage: Trading 0.000 to be maintained in form of cash / securities to keep account active. . or call Similarly limit released for shares sold under BTST is manual Delay in receiving pay-out of clear funds from trading to Bank Account ‡Min Account Balance Concept of Min Rs 1. adjustable against brokerage Deal Clinchers v/s 5 Paisa ‡Downtime Recent past 5 paisa Trader Terminal (T. Limit is provided EOD for shares sold from DP.m due to server load (as their T. adjustable against Brokerage Yearly Rs 8000.05% each side & 0.50% each side + ST (Negotiable to 0.T) is experiencing high frequency downtime between 3 ± 3:30 p.

driven by slab structure ‡Many Other Charges Rs 22. Limit against shares ‡Free Way: Flat Rs 999 Cover Charge p.03% per transaction ‡High Trader: 6 Times Exposure Cash & Derivatives.m. Even older customers (on 0. Deal Clinchers v/s Kotakstreet ‡Rigid Account Opening Terms No Flexibility of A/c opening charges (Rs 500) + Compulsory margin Rs 5000/.Kotakstreet COMPANY BACKGROUND Kotakstreet is the retail arm of kotak securities.5 p. lower the brokerage.40%) have been moved to the slab wise structure. Auto sq off 2:55 PRICING OF KOTAK ‡Account Opening: Rs 500 ‡Demat: Rs 22. ‡No Customization of commercial Terms No Flexibility in Leverage ± Dependent on Type of Account ( 4 to 6 times only) No flexibility in Brokerage.25% & 0.Account opening free with Rs 10.000 Margin OR competitor Contract Note.m ‡Initial Margin: Rs 5000(Compulsory) ‡Min Margin Retainable: Rs 1000 ‡Brokerage Slab wise: Higher the volume. 0.5 p.m towards DP AMC charges . Kotak Securities limited is a joint venture between Kotak Mahindra Bank and Goldman Sachs Online Account Types ‡Twin Advantage / Green Channel: 2 DP¶s.

02% Rs 1. low commissions and priority access to R.M Pricing of IB Accounts Signature Account ‡Account Opening: Rs 250 ‡Demat: Rs 200 if POA is signed. 450 + Relationship Managers who act as personal financial advisors Online Account Type ‡Signature Account: Plain Vanilla Account with focus on Equity Analysis. It offers a full range of financial services and products ranging from Equities to Insurance. The equity analysis is a paid service even for A/c holders ‡Power Indiabulls: Account with sophisticated trading tools.000 as retainable Margin to keep account active Rs 25 per call after 20 calls for the month ‡Restricted Access to Terminal like product KEAT Desktop restricted distribution on payment of Rs 500. No AMC for this DP ‡Initial Margin: NIL ‡Brokerage: Negotiable . 0. Non refundable INDIABULLS COMPANY BACKGROUND India Bulls is a retail financial services company present in 70 locations covering 62 cities.DP incoming charges extra.

No AMC for this DP ‡Initial Margin: NIL ‡Brokerage: Negotiable Deal Clinchers v/s IndiaBulls ‡POA for Clients DMAT All shares held by client trading with IB are moved to IB Pool Account and the same is shown as a reflection in client DP account. . This can lead to over leveraged (Interest) & high frequency (Brokerage) trading. Charges are levied to move shares from IB pool Account to client DP account ‡Paid Research Services Access to a research even for an IB trading account holder is charged a min of Rs 500 a month ‡Margin funding hoax The interest on funding starts on leveraged delivery trades from T+1 day itself @21% p. which may not be in the best interest of the client. on a daily basis ‡The role of Relationship Manager Each RM is looked upon as a revenue generator and he gets a % on business generated from client.Power IndiaBulls ‡Account Opening: Rs 750 ‡Demat: Rs 200 if POA is signed.a.

25% depending on volume.com. Slab wise brokerage ranges from 0. Cash on spot 2. MarginPlus Premium trading interface of ICICIDirect Link is given to DBC partners and HNI¶s ‡Account Opening: Rs 750 ‡Schemes: For short periods Rs 750 is refundable against brokerage generated in a qtr. These schemes are introduced 3-4 times a year. ‡Demat: NIL. Differentiated in services within the account 1.ICICIDirect COMPANY BACKGROUND ICICI Web Trade Limited (IWTL) maintains ICICIdirect. 1st year charges included in Account Opening Plus a facility to open additional 4 DP¶s without 1st yr AMC ‡Initial Margin: Nil ‡Brokerage: All brokerage is inclusive of stamp duty and exclusive of other taxes. . IWTL is an affiliate of ICICI Bank Limited and the Website is owned by ICICI BankLimited Account Types ‡ICICI Direct e-invest Account: Plain Vanilla Account with focus on 3 in 1 advantage.75% to 0.

Although progressively the delivery and trading brokerage reduce as volumes go up. ‡Morning Trades Issue Being one of the websites with largest no of after hour orders which are pushed 1st thing in the morning. . with outstanding net positions under margin segment automatically squared off at any time between 2:45 ± 3:30 p. this makes is very unviable for customers dealing in large volumes. ‡No flexibility on leverage on Intra-day trades The leverage of 4 times is available for intra. creates a choking of orders to the exchange.75% and trading at 0. causes delay of confirmations for new order placed during the early morning trades. ‡No leverage for Delivery trades Delivery is restricted to the total money allocated into the trading account. ‡Higher Brokerage rates with slabs The delivery brokerage is pegged at 0. Thus no control of square off price.day trades.10% each side. ‡Restriction of Bank Account The choice of bank is restricted to ICICI Bank. ‡Restriction of BTST The sale of shares purchased is restricted to T+1 day and is not permitted on T+2 Day.m.m.Deal Clinchers v/s ICICIDirect ‡Poor online Interface Slow website interface with no real-time quotes creates dissatisfaction among high frequency traders ‡Margin trading restriction The margin trading system is available up to 2:45 p.

W. SSKI the parent company of ShareKhan has more than eight decades of trust and credibility in the Indian stock market. y . newspapers. y Lesser emphasis on customer retention.400crores and more than 800 peoples working in the organization.sharekhan. y ShareKhan provides multi-channel access to all its customers through a strong online presence with www. In thr Asian Money Broker¶s poll SSKI won the ³India¶s best broking house for 2004´ award.S. .O. etc). Weakness y Localized presence due to insufficient investments for country wide expansion.T. 250 share shops in 130 cities and a call-center based Dial-n-Trade facility y ShareKhan has dedicated research teams for fundamental and technical research. Analysis of Share Khan Strengths y It is a pioneer in online trading with a turn over of Rs. y Lack of awareness among customers because of non-aggressive promotional strategies (print media. which constantly track the pulse of the market and provide timely investment advice free of cost to its clients which has a strike rate of 70-80%.com.

y Increasing usage of internet through broadband connectivity may boost a whole new breed of investors for trading in securities. y It can easily tap the retail investors with small saving through promotional channels like print media. Threats y Aggressive promotional strategies by close competitors may hamper Share Khan¶s acceptance by new clients. y Abolition of long term capital gain tax on shares and reduction in short term capital gain is making stock market as hot destination for investment among small investors. electronic media. etc. . more and more small investors are entering into stock market. y More and more players are venturing into this domain which can further reduce the earnings of Share Khan. y Lack of sufficient branch-offices for speedy delivery of services.y Focuses more on HNIs than retail investors which results in meager market-share as compared to close competitors. Opportunities y With the booming capital market it can successfully launch new services and raise its client¶s base. y As interest on fixed deposits with post office and banks are all time low. y Other players are providing margin funds to investors on easy terms where as there is no such facility in share khan.

9% .75 % Mutual Funds-.CHAPTER -4 DATA ANALYSIS Market Research Analysis Preference of Investment Interpretation: This shows that Only Shares-. investment in the Stock Market can definitely be increased. Awareness of online share trading Yes -.16% Bonds--7% Derivatives--2% although mutual the funds market is on the rise yet. the most favored investment continues to be in the Share Market. with a more transparent system.91% No-. So.

63% No-. Awareness of Sharekhan as a Brand Yes-.37% Interpretation: This pie chart shows that Sharekhan has a reasonable amount of Brand awareness in terms of a premier Retail stock broking company.Interpretation: With the increase in cyber education. This awareness is expected to increase further with the increase in Internet education. the awareness towards online share trading has increased by leaps and bounds. The company to increase its market share over its competitors should further leverage this brand image. . .

it is to be noted that the customers are not aware of the facilities provided by the company meaning thereby.24% Others-26% Interpretation: This shows that even with sufficiently high Brand Equity. that. the company should concentrate more towards promotional tools and increase its focus on product awareness rather than brand awareness.86% Interpretation: Although there is sufficiently high brand equity among the target audience yet.12% ICICI Direct. This is probably because of two main reasons: 1.Awareness of Sharekhan facilities Yes--14% No-. Sharekhan ranks only 3rd amongst the Demat account providers.31% Kotak Mahindra. Non ² transparent marketing policies of the company .7% India Bulls. DEMAT account market Sharekhan. Lack of promotion and unfocussed approach towards Product awareness 2.

today. It shows that all the competitors are striving hard not only to woo the customers but also to make them Brand loyal by generating customer satisfaction. the company should crystallize its products and should indulge in aggressive marketing and promotion.92% No. has gone beyond only meeting Sales targets and generating profit volumes.9% Weekly. Satisfaction level among Customers with current broker Yes .27% Monthly-53% Yearly-11% Interpretation: In spite of the huge returns that the share market promises. we see that there is still a dearth .Hence.8% Interpretation: This pie chart accentuates the fact that Strategic marketing. Frequency of Trading Daily.

It requires efficient bureaucratic intervention on the part of the Government. effective and efficient steps should be undertaken to woo the customers to invest more in the lucrative stock market.of active traders and investors. . Percentage of earnings invested in Share trading Upto 10%--71% Upto 25%--19% Upto 50%-. This is because of the non ² transparent structure of the Indian share market and the skepticism of the target audience that is generated by the volatility of the stock market. Hence. again reiterating the volatile and non-transparent structure of the Indian stock market.7% Above 50%--3% Interpretation: This shows that people invest only upto 10% of their earnings in the stock market.

On an average. no online brokerage is currently making money and a shakeout is imminent in the near future. dominated by new private banks and foreign banks. There are currently close to 50 online brokerages in India with ICICIDirect.000 crore per month) is likely to be the threshold breakeven for online brokerages. US (40 percent) and UK (20 percent). Motilal Oswal. KotakStreet.445 crore. The going is expected to get tougher with the advent of capital account convertibility. The older.Conclusion In spite of these optimistic numbers. Sharekhan. IndiaBulls and 5Paisa being some major players.08. Online trading in the year 2000-2001 accounted for only Rs 50. While there are many factors that need to be understood to justify this assertion. Both have lesser reach owing . one simple fact is worthy of note. mature investors are not µtech-positive¶ and hence unlikely to move to online trading is a major barrier to the growth of e-broking in India. The average age of the Indian Internet user as cited by a recent IDC survey is 27 years. The average age of the head (and financial decision taker) of the Indian equity-investor household. There is scope for multiple players as the entire segment is in a growth stage.again. However.170 crore out of total traded volume of Rs 25. due to limited volumes. online trading in India is at a very nascent stage (about 5-8 percent of total traded volumes) compared to countries like South Korea (60 percent). experienced equity investor is not online today and the fact that older. as revealed by the SEBI-NCAER study of Indian investors in 2000 is 45 years. the numbers of banks with a strong online presence are very few . Here. Rs 40 crore per day (Rs 1.

online brokerages are advertised very heavily. The relative inability of large public-sector banks to offer-facilities for Internet banking is a barrier in this regard. Brand building. One of the major issues governing trading is the prevailing uncertainty in the market. Online trading in India has so far not seen similar levels of aggressive advertising. not withstanding the current sentiment in the market. Besides. With a more transparent system. and a sustained bullish market we would surely be heading to become the largest online stock trading country by the turn of the next decade. potential for online trading is still immense in India. only scripts that have been compulsorily dematerialized can be traded on the net here. which may be of use for the immediate future.to a smaller network in the country. Hence. Besides. . Online trading firms can also market themselves aggressively to students who are entering the professional arena. with the exception of ICICI Direct and India bulls. developing multiple delivery channels with anytime telephonic grievance redressed options is some directions. assurances of security. Internet penetration in India is still very low and concerns about security also tend to predominate. ensuring that their entry into equity happens online. increased awareness. In markets like the US.

its promotional campaign focuses on western region where as northern region is still waiting for promotional campaigns. Try to reduce cost. Senior managers at Share Khan keep on telling that it is difficult to reduce cost. 3. .Chapter-5 RECOMMENDATIONS RECOMMENDATIONS We suggest following measures. which Share Khan could take so as to take on heavy competition from India bulls and 5 Paisa 1. But the fact is. Even then. Share Khan lacks visibility in northern region where as it is a well known name in western region. India being a price sensitive market. so that services are provided to only those customers who are willing to pay the price for services they are getting and let the other customers enjoy costs benefits without getting services. so that benefits can be passed on to customers. Concept of margin funding should be introduced. because of services we provide. people at times go for monetary benefits rather than for long term nonmonetary benefits. 4. as more and more people are asking for it. make the services customized. 2. To identify regions where promotions are required. If charges can¶t be reduced because of costs involved.

This will result in additional customer base by getting further references from satisfied clients. Share Khan should contact with their clients regularly for knowing the problems faced by them.5. But other players in the market offer launch slab wise brokerage structure which motivate customers to increase their volumes. That¶s why heavy investors do not open their account with Share Khan . This will help Share Khan in providing best services to customers. To launch slab wise brokerage structure as Share Khan has fixed brokerage structure which can not be negotiated. 6.

 Training Kit Provided by the Sharekhan.com  www. nse-india.com  http://www.economics times.com www.indiainfoline.com  www.com Indian Stock Market Overview .BIBLIOGRAPHY Books and Newspapers:  The Economic Times. Business Standard. Business line  Securities Market (Basic) Module :--NCFM  Economic Times.com/articles/  www.sharekhan .  Indian financial system by M.moneycontrol.investopedia.bseindia.Y KHAN  NSDL Depository operations module :--NCFM URLs:  www.com  www.

The key regulator governing Stock Exchanges. NSE has around 1500 shares listed with a total market capitalization of around Rs. NSE has the S&P NSE 50 index (Nifty) which consists of fifty stocks.August 1999). Most key stocks are traded on both the exchanges and hence the investor could buy them on either exchange. Depositories. The Scripts traded on the BSE have been classified into µA¶.284 crore in 1998-99 and further to Re. 968000 crore (9680 Bln). The µZ¶ group scripts are the blacklisted companies. Both exchanges have a different settlement cycle. The markets are closed on Saturdays and Sundays. The BSE Sensex is the older and more widely followed index. The µF¶ group represents the debt market (fixed income securities) segment. automatic order matching. 851 crore in 1997-98 to Rs. In addition. It facilitates more efficient processing. there are 22Regional Stock Exchanges However. The primary index of BSE is BSE Sensex comprising 30 stocks. 2273 crore in 1999-2000 (April. The µA¶ group shares represent those. µB1¶. 921500 crore (Rs. µB2¶. faster execution of trades and transparency. The average daily turnover at the exchanges has increased from Rs. 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. 9215 Bln). µB1¶& µB2¶ groups and Rights renunciations. The µC¶ group covers the odd lot secutities in µA¶. µC¶. Brokers. Both these indices are calculated on the basis of market capitalization and contain the heavily traded shares from key sectors.The Bombay stock exchanges (BES) and the National Stock Exchange of India Ltd (NSE) are the two primary exchange in India. 1. the BSE and NSE have established themselves as the two leading exchanges and account for about 80% of the equity volume traded in India. The BSE has over 6000 stocks listed and has a market capitalization of around Rs. which allows investors to shift their positions on the bourse. µF¶ and µZ¶ groups. which are in the carry forward system (Badla). .

Depository participants. Mutual Funds. . FIIs and other participants in Indian secondary and primary market is the Securities and Exchange Board of India (SEBI) Ltd.

The Capital Market (Equities) segment commenced operations in November 1994 and operations in Derivatives segment commenced in June 2000.About NSE The Organization The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges. Ltd. Based on the recommendations. NSE Group NSCCL IISL NSE.IT NSDL DotEx Intl. which recommended promotion of a National Stock Exchange by financial institutions (FIs) to provide access to investors from all across the country on an equal footing. \ On its recognition as a stock exchange under the Securities Contracts (Regulation) Act. NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. . 1956 in April 1993. NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the country.

NSE Milestones November 1992 April 1993 May 1993 June 1994 November 1994 March 1995 April 1995 June 1995 July 1995 October 1995 April 1996 April 1996 June 1996 Incorporation Recognition as a stock exchange Formulation of business plan Wholesale Debt Market segment goes live Capital Market (Equities) segment goes live Establishment of Investor Grievance Cell Establishment of NSCCL.nse.in November 1996 November 1996 December 1996 December 1996 December 1996 February 1997 November 1997 May 1998 May 1998 . the first Clearing Corporation Introduction of centralised insurance cover for all trading members Establishment of Investor Protection Fund Became largest stock exchange in the country Commencement of clearing and settlement by NSCCL Launch of S&P CNX Nifty Establishment of Settlement Guarantee Fund Setting up of National Securities Depository Limited. first depository in India. India Index Services & Products Limited (IISL) Launch of NSE's Web-site: www.co. co-promoted by NSE Best IT Usage award by Computer Society of India Commencement of trading/settlement in dematerialised securities Dataquest award for Top IT User Launch of CNX Nifty Junior Regional clearing facility goes live Best IT Usage award by Computer Society of India Promotion of joint venture.

a joint venture between NSE.July 1998 August 1998 February 1999 April 1999 October 1999 January 2000 February 2000 June 2000 September 2000 November 2000 Launch of NSE's Certification Programme in Financial Market CYBER CORPORATE OF THE YEAR 1998 award Launch of Automated Lending and Borrowing Mechanism CHIP Web Award by CHIP magazine Setting up of NSE. and i-flex Solutions Ltd. Commencement of WAP trading Commencement of trading in Index Options Commencement of trading in Options on Individual Securities Commencement of trading in Futures on Individual Securities Launch of NSE VaR for Government Securities Launch of Exchange Traded Funds (ETFs) NSE wins the Wharton-Infosys Business Transformation Award in the Organization-wide Transformation category Launch of NSE Government Securities Index Commencement of trading in Retail Debt Market Launch of Interest Rate Futures Launch of Futures & options in CNXIT Index Launch of STP Interoperability Launch of NSE¶s electronic interface for listed companies December 2000 June 2001 July 2001 November 2001 December 2001 January 2002 May 2002 October 2002 January 2003 June 2003 August 2003 June 2004 August 2004 .IT Launch of NSE Research Initiative Commencement of Internet Trading Commencement of Derivatives Trading (Index Futures) Launch of 'Zero Coupon Yield Curve' Launch ofBroker Plaza by Dotex International.IT Ltd.

NSE Mission NSE's mission is setting the agenda for change in the securities markets in India. NSE is more than a mere market facilitator. y ensuring equal access to investors all over the country through an appropriate communication network. and meeting the current international standards of securities markets. . y y enabling shorter settlement cycles and book entry settlements systems. It's that force which is guiding the industry towards new horizons and greater opportunities. The standards set by NSE in terms of market practices and technology have become industry benchmarks and are being emulated by other market participants. The NSE was set-up with the main objectives of: y establishing a nation-wide trading facility for equities. debt instruments and hybrids. efficient and transparent securities market to investors using electronic trading systems. y providing a fair.

The logo symbolises vibrancy and unleashing of creative energy to constantly bring about change through innovation. insurance companies and other financial intermediaries: y y y y y y y y y y y y y y y Industrial Development Bank of India Limited Industrial Finance Corporation of India Limited Life Insurance Corporation of India State Bank of India ICICI Bank Limited IL & FS Trust Company Limited Stock Holding Corporation of India Limited SBI Capital Markets Limited The Administrator of the Specified Undertaking of Unit Trust of India Bank of Baroda Canara Bank General Insurance Corporation of India National Insurance Company Limited The New India Assurance Company Limited The Oriental Insurance Company Limited . N. trading members and issuers all over the country. banks. The initials of the Exchange viz.NSE Logo The logo of the NSE symbolises a single nationwide securities trading facility ensuring equal and fair access to investors.. S and E have been etched on the logo and are distinctly visible. The logo symbolises use of state of the art information technology and satellite connectivity to bring about the change within the securities industry. Promoters NSE has been promoted by leading financial institutions.

professionals. it has been set up as a public limited company. banks. This has completely eliminated any conflict of interest and helped NSE in aggressively pursuing policies and practices within a public interest framework.The day-today management of the Exchange is delegated to the Managing Director who is supported by a team of professional staff. does not preclude. accountancy. public representatives. decisions relating to market operations are delegated by the Board to various committees constituted by it. economics. finance. Though the impetus for its establishment came from policy makers in the country. who do not directly or indirectly trade on the Exchange. Such committees includes representatives from trading members. eminent professionals in the fields of law. From day one. nominees of SEBI and one full time executive of the Exchange. NSE has adopted the form of a demutualised exchange .y y y y y y United India Insurance Company Limited Punjab National Bank Oriental Bank of Commerce Corporation Bank Indian Bank Union Bank of India Corporate Structure NSE is one of the first de-mutualised stock exchanges in the country. While the Board deals with broad policy issues.the ownership. management and trading is in the hands of three different sets of people. the public and the management. owned by the leading institutional investors in the country. where the ownership and management of the Exchange is completely divorced from the right to trade on it. taxation. The NSE model however. insurance companies and other financial intermediaries and is managed by professionals. etc. but in fact accommodates involvement. . Its Board comprises of senior executives from promoter institutions. support and contribution of trading members in a variety of ways. NSE is owned by a set of leading financial institutions.

. which was established in 1878. The Exchange. which decides the policies and regulates the affairs of the Exchange. It has evolved over the years into its present status as the premier Stock Exchange in the country. popularly known as "BSE" was established in 1875 as "The Native Share and Stock Brokers Association". 1956. The Governing Board consists of 9 elected directors.ABOUT BSE The Stock Exchange. A Governing Board having 20 directors is the apex body. It is a voluntary non-profit making Association of Persons (AOP) and is currently engaged in the process of converting itself into demutualised and corporate entity. Mumbai. It also strives to educate and enlighten the investors by conducting investor education programmes and making available to them necessary informative inputs. debt and derivatives upholds the interests of the investors and ensures redressal of their grievances whether against the companies or its own member-brokers. even older than the Tokyo Stock Exchange. It is the first Stock Exchange in the Country to have obtained permanent recognition in 1956 from the Govt. The Executive Director as the Chief Executive Officer is responsible for the day-to-day administration of the Exchange and he is assisted by the Chief Operating Officer and other Heads of Departments. of India under the Securities Contracts (Regulation) Act. who are from the broking community (one third of them retire ever year by rotation). It is the oldest one in Asia. while providing an efficient and transparent market for trading in securities. six public representatives and an Executive Director & Chief Executive Officer and a Chief Operating Officer. three SEBI nominees.

etc. The ban on all deferral products like Borrowing & Lending of Securities Scheme (BLESS) and Automated Lending & Borrowing Mechanism (ALBM) in the Indian capital markets by SEBI w. Turnover on the Exchange y The average daily turnover of the Exchange during the financial year 2003-2004 and 2004-05 (April-March). 2001. December 31.The Exchange has inserted new Rule No. The Committee considers judicial & quasi matters in which the Governing Board has powers as an Appellate Authority. margins and other monies payable by the memberbrokers to the Exchange. was Rs. introduction of Compulsory Rolling Settlements in all scrips traded on the Exchanges w. three SEBI nominees or public representatives.26 crores respectively.38 lakhs respectively. deposits. fees. July 2. norms. 2050.f. 2001. Bye-laws & Regulations pertaining to constitution of the Executive Committee of the Exchange.f.e. y The average number of daily trades recorded during the above period was 7. consisting of three elected directors. an Executive Committee.98 lakhs and 9. abolition of account period settlements. Accordingly. Safety of the market One of the objectives of the Exchange is to promote and inculcate honorable and just practices of trade in securities transactions and to discourage malpractices. etc. .81 crores and Rs. have adversely impacted the liquidity in the market and consequently there is a considerable decline in the average daily turnover at the Exchange as reflected in above statistics.126 A in its Rules. continuance and suspension of member-brokers. declaration of a member-broker as defaulter. Executive Director & CEO and Chief Operating Officer has been constituted. admission. matters regarding annulment of transactions. 1978. procedures and other matters relating to arbitration.e.

The imposition of circuit filters on scripts ensures that the price of the scrip cannot move upward or downward beyond the limit set for a day. The Exchange also transfers the scrip¶s for trading and settlement on a trade-to-trade basis which would result into giving/taking delivery of shares on a gross level and no intra-day/settlement netting off/squaring off facility would be permitted.The surveillance function at the Exchange has assumed greater importance in the last few years. In case certain abnormalities are noticed. The Exchange has accordingly set up a separate Surveillance Department to keep a close watch on price movement of scripts. the Exchanges are required to apply a daily Circuit Filter of 20% on all the scripts except on the scripts on which derivative products are available or are included in the indices on which derivative products are available. trading in the scrip is suspended. then circuit filters are reduced to make it difficult for the price manipulators to increase or push down the prices of a scrip within a short period of time. The large variation in the prices as well as the volumes of the scripts are scrutinized and appropriate actions are taken. The Exchange imposes special margin in the scripts where it is suspected that there is an attempt to ramp up the prices by creating artificial volumes. monitor abnormal prices and volumes which are not consistent with normal trading pattern and monitor the member-brokers' position to ensure that defaults do not occur. . which is headed by a General Manager. if any. detect market manipulations like price rigging. As per the guidelines issued by SEBI. This Department. The Securities and Exchange Board of India (SEBI) had directed the Stock Exchanges in August 1995 to set up a separate Surveillance Department with staff exclusively assigned to surveillance functions. are watched.. Also the prices and volumes in the newly listed scripts are monitored. etc. In cases where the abnormal movements continue despite the aforesaid measures. reports directly to the Executive Director. The scripts which reach new high or new low and companies which have high turnover. The Surveillance Department monitors exposure of the members on a daily basis. It also scrutinizes the prices and volumes of the scripts on a daily basis. On these scripts Exchange has imposed dummy circuit filters to avoid punching error by members.

the average brokerage charged by the members to the clients is much lower. their pay-in obligations. which has been commissioned from July 15. etc. Under this system. However.5 percent of the contract value. members taking unduly large positions not commensurate with their financial position or having concentrated position(s) in one or a few scrips.Detailed investigations are conducted in cases where price manipulation is suspected and disciplinary action is taken against the members concerned. etc. This system includes databases such as company profile.or part thereof on the basis of the amount of consideration and that for transfer of debentures the rate of stamp duty varies from State to State. members' turnover. etc. in real time. Brokerage and other transaction costs Brokerage is negotiable. the rate is 50 paise for every Rs. Inspection of the broker¶s books In terms of the instructions issued by the Ministry of Finance. The Exchange has developed an On-line Real Time (OLRT) Surveillance System.100/. 1999. based on certain preset parameters like the price and volume variation in scrips. The maximum brokerage is subject to a ceiling of 2. members' profile and historical database of turnover and price movement in scrips. where the registered office of a Company issuing the debentures is located.Typically there are different scales of brokerages for delivery transaction. The system generates alerts on the basis of pre-set parameters during the trading hours and corrective action based on further investigations is taken in such cases. trading transaction. In case of transfer of shares. Government of India. Stock Exchanges are required to inspect the books of accounts of at least 10% of their active members . The Stamp Duty on transfer of securities in physical form is to be paid by the seller but in practice it is paid by the buyer while registering the shares in his name. The Exchange has not prescribed any minimum brokerage. alerts are generated by the system on-line.

The Inspection Department of the Exchange has been entrusted with this responsibility. The members are required to get their annual accounts audited from a Chartered Accountant and submit an Audit Certificate as well as the Profit & Loss Account and Balance Sheet to the Exchange. whether the member has adhered to the Rules. The Exchange has also prepared a detailed "Guidance Manual for inspection of member-brokers" to assist the Chartered Accountants in the inspection of the books of accounts of members. Filing of these documents by the members is also monitored by the Inspection Department.in a financial year. the number of inspections carried out by the Exchange. The purpose of involving independent Chartered Accountants in this work is to inspect the books of accounts of every members at least once in every three years. far exceeds the level prescribed in this regard by the Ministry of Finance. The Exchange has also constituted a panel of Chartered Accountants to conduct inspection of the book and accounts of the members. . If the violations are of serious nature. whether the member has issued contract notes in the proper format prescribed by the Exchange. etc. the matter is referred to the Disciplinary Action Committee of the Exchange. The purpose of the inspection is to verify whether the member has maintained the required books of accounts as per the Securities Contracts (Regulation) Rules. 1957. Regulations and By-laws of the Exchange and guidelines issued by the Exchange and SEBI from time to time. every year. Notably. The findings of the inspection are conveyed to the members and follow-up action is taken based on the responses/clarifications provided by the members. The members are also required to submit net worth certificates as at the end of March and September every year. whether brokerage has been indicated separately therein.

SHAREKHAN SHAREKHAN SECURITIES one of India¶s leading brokerage houses. The institutional broking division caters to domestic and foreign institutional investors. Its focus is to provide equity solutions to every segment. is the retail broking arm of SSKI Securities Pvt Ltd. telecom and media. Apart from Sharekhan. SERVICES          Equity & Derivatives Trading Depository Services Online Services Commodities Trading Dial-N-trade Portfolio Management Share Shops Fundamental Research Technical Research . Sharekhan has a largest ground network of 240 branded shareshops in 110 cities. It is into broking for the past 80 years. while the corporate finance division focuses on niche areas such as infrastructure. the SSKI group also comprises of institutional broking and corporate finance.

S e r v i c e s

Branches all over India

Online trading redefined

tic-by-tic chart 2. It provides on a single screen streaming quotes. Other features include advanced intra-day charting (Bar & Japanese Candlestick Charts). Market summary (most traded. price alerts. Real time streaming quotes. SpeedTradePlus extends the power of online trading from cash markets to futures & Options. Pre-defined detailed sector-wise script list 8. SPEEDTRADE is a net-based executable application that provides everything a trader needs on one screen. Hot keys similar to BOLT & NEAT 5. Ability to place limit order and subsequently modify / cancel instantly . highest value etc. Power-packed features 1. Unlike browser based trading applications that require moving from page to page to execute a single transaction. Ability to customize the terminal screen 4. Simple order entry process 9.SpeedTrade is a next-generation online trading product that brings the power of your broker¶s terminal to your PC. easy order placement and instant trade confirmations in seconds. On a single screen. Alerts and remainders 10. thereby. Instant Order execution & confirmation 6. SPEEDTRADE offers a tick-by-tick update on stock price movements with market depth and intra-day chart and lets the client do his own stock/ technical analysis. It is ideal for active traders and jobbers who transact frequently during day trading session to capitalize on intra-day price movements. reducing the maximum time required to execute a trade by a huge margin. you can trade cash as well as future & option contracts. Reports for personal account details 7. and derivative tool-kit to help you trade like the experts. research calls.) 3. online tic-by-tic charts. instant order placement and trade confirmations for equity/ cash market.

Today lot of investor¶s depending on TV channel for recommendation about stocks to sell. Volatility of India¶s Stock Markets Recent market developments have once more focused attention on the volatility that has come to characterise India¶s stock markets. who were responsible for net equity purchases of as much as $6. he will usually advise you to buy share which he has bought and plans to dump when price goes up. We have seen enough of PUMP and DUMP even without help of internet in cases of Harshad Mehta boom of 1992 and Ketan Parekh boom of 2000 (he even had cult following with Index of 10 shares called K-10). A recent example of this scheme is the hoax perpetrated against US based. Here when you talk to broker's staff while buying or selling. One of the most common forms of securities fraud on the Internet involves an imposter who attempts to manipulate the price of a stock by disseminating phony press releases or information. 2.1 billion as far back as 1996 and net investments by FIIs .6 and $8. PairGain Technologies. These figures compare with a peak level of net purchases of $3.5 billion respectively in 2003 and 2004. Movements in the Sensex during the two years have clearly been driven by the behaviour of foreign institutional investors (FIIs). we see this kind of frauds happening in different way due to nature of our society. Internet fraud In India. or buy or hold. Channels like CNBS offer array of experts from economist to brokers to analyst. or creating phony websites. Most of these people have vested interest in stocks they recommend and promote.ordinary guy's ordinary dreams? Hurdles for online share trading 1.

3. At the end of the day the stock exchange authorities of both the New York . their role in determining share price movements must be considerable. The electronic monitoring system in both the Bombay Stock Exchange and the bigger National Stock Exchange automatically stopped trading for half-an-hour when the two markets respectively collapsed by 10 percentage points. the sudden FII interest in Indian markets in the last two years account for the two bouts of medium-term buoyancy that the Sensex recently displayed. Could this situation have been avoided? As aforesaid. although there are more than 4700 companies listed on the stock exchange. the answer is yes. This extraordinary situation has facilitated rampant speculation by all sorts of operators ± the indigenous variety. the day of the terrorist attacks in New York City. Given the presence of foreign institutional investors in Sensex companies and their active trading behaviour. Indian stock markets are known to be narrow and shallow in the sense that there are few companies whose shares are actively traded. This shallowness would also mean that the effects of FII activity would be exaggerated by the influence their behaviour has on other retail investors. 2001. who. the BSE Sensex incorporates just 30 companies. Rampant Speculation The Indian stock markets are perhaps the only place in the world where you can buy shares without having to put money on the table and sell shares you do not own. Thus. the electronic system automatically stopped all trading again for another two hours. trading in whose shares is seen as indicative of market activity. the profits reaped by short sellers were astronomical and incalculable. in herd-like fashion tend to follow the FIIs when making their investment decisions. September 11. In sum.of just $753 million in 2002. So. when the stock markets were made to collapse by a record 800-plus points on May 17 under the pretext that the Left is opposed to divestment. FIIs and even our own native financial institutions (FIs) as the massive UTI scandal of recent years has demonstrated. A similar situation had occurred on Tuesday. Thereafter when trading resumed and the markets fell further to another stipulated lower level.

These effects are enduring and have changed the very way in which business is carried out. Dematerialization in simple terms means the conversion of shares from physical to electronic form. or demat as it is popularly known as. was one of the first institutions to use demat when it decided to dematerialize 50% of its holdings in 1997. This is simply because demat has changed the way stocks are held and traded and therefore has effect on every other function of the market. is one such institution whose very existence has been challenged by the growth in information technology. So. 1998. Technology has impacted the working of stock markets in every sense. Demat. Demat in India started with the creation of NSDL (National stock depository limited) in 1996. Table 1-No. However. The stock market. Effect of technology The growth in technology and communications has impacted every aspect of business in some or the other form. advanced capitalism does know how to intervene "politically" in the markets when fundamental interests are in danger of violation by short sellers. enabled by the use of technology is probably is single most important factor which has repercussions on every aspect of the stock markets. a useful starting point for this study would be the study of dematerialization. of scrips under compulsory demat and value of demat shares . IT has turned the very idea of a stock market on its head.Stock Exchange and the heavily-weighted software exchange called NASDAQ suspended all trading for the remainder three working days during that fateful week to safeguard investor interests. SEBI gave a boost to demat. with compulsory trading on shares in demat form in specified scrips by institutional investors from Jan 15. UTI.

Timeline No.000 Cr 4. The exhibit below shows the percentage of demat shares in the total value of shares traded at NSE over a period of 6 years.3% 99% Dematerialization has benefited the market and the market players in more than one way.5% 79. an increasing percentage of the share trading is done in demat form.255 Cr 4.% of trade in demat form Timeline April 1998 December 1999 Since 2003 Percentage of trade in demat form 2.00.14. Table 2 -.35.000 Cr Consequently. of scrips Year Value shares of demat March 1999 March 2000 October 2000 31 462 1413 2000 2001 2002 1. Demat is instrumental in ±       Abolition of market lots Introduction of rolling settlements Enhancing liquidity Bringing stamp duty to zero Reducing chances of bad delivery Increased lending by banks and other FIs .

BSE. Table 2 . was an electronic (computerized) exchange. trading in stocks has reached retail investors¶ home via the Internet. While NSE introduced NEAT (NSE¶s Online Trading System) in May 1997.SEBI extended demat to IPOs during capital reforms in capital markets in 2002. the first exchange to be set up in India. encouraging shareholders to opt for demat credit of allotments. BSE introduced BOLT (BSE¶s Online Trading System) in September 1997 in Mumbai. started as a floor-based exchange. NSE.NSE / BSE vis-à-vis other stock exchanges NSE Ranking Year Transactions per year ( millions) ( largest BSE Ranking Transactions exchanges year (millions) over the world ) per ( largest exchanges over the world ) 180 148 133 5 7 6 2003 2002 2001 336 233 172 3 3 3 Further. The premise being elimination of problems due to loss of allotment letters. The outcome has phenomenal with respect to the number of trades taking place on these two exchanges. With advancements in technology. share certificates etc. during the first six months itself. However. both these exchanges moved to SBTS (Screen Based Trading System) in 1997. SEBI proposed Internet based trading under ORS (Order Routing System) Trading via Internet was an instant hit.. trading compulsorily in demat form with an option of holding shares in physical form for retail investors. In 1999-2000. setup as an alternative to BSE. with 18 members being granted licenses in 2000-2001 and trades touching 767 Cr. .

or market rises or falls within a shortterm period. On the other hand rapid flow of information has also meant increased volatility in the markets. more kinds of financial instruments allow investors more opportunity to move their money to more kinds of investment positions when conditions change. workers. commodity. Product-market entry of new firms and new capital takes time. and the resulting price alignment arbitrage causes. improved technology to make trades and more kinds of financial instruments. Finally. in other words. who specialize in security algorithms and data encryption ensure high degree of authenticity and trust in trades. Improved trading technology makes it easier to take advantage of arbitrage opportunities. information is freely available. the quicker markets can react to both negative and positive news. This includes more timely information dissemination. volatility is: The degree to which the price of a security. and managers obsolete. The faster information is disseminated. We have gone further and argued that major technological change²like the IT revolution² destroys old firms. It does so by making machines.Although security concerns still exist regarding the safety of data transfer over the Internet. and their stock-market . Adverse impacts of IT on stock markets Some other interesting observations about impact of technology on stock markets ± 1. companies like VERISIGN and RSA. The vintage capital model teaches us that technological change destroys old capital. Information Flow Any trading system disseminates data to market constituents. This has two disadvantages y It makes easier for off-exchange transactions to occur because of availability of information. An obvious reason for market volatility is technology. y It makes off-exchange transactions attractive due to absence of trading costs. In financial terms.

The use of technology should be preceded by a detailed study and assessment of all other alternatives. private companies. Indeed. and that (b) IT innovators boosted the stock market¶s value only in the 1980¶s. at first. Regulation and knowledge dissemination are still important. To sum up. The key to successful use to technology is the appreciation of its constraints. the stock market declines. We have argued that aggregate valuation can fall below the present value of dividends because capital may "disappear" right after a major technological shift. (a) the market declined in the late 1960¶s because it felt that the old technologies either had lost their momentum or would give way to IT. reduce the market¶s value because some firms. . we can say that computerization and automation are not to be avoided. It has also led to positive developments in terms of reduced costs and fewer errors. But. as new capital forms in small. Later. these companies are IPO¶d.entry takes even longer. In the meantime. as some experiences have indicated. will cling to old technologies that have lost their momentum. Technology has been able to make the stock markets accessible to every individual. and only then does their value become a part of stock-market capitalization. usually large or old. the innovation may. IT cannot be applied as a panacea for all problems. 2.

75 % Mutual Funds-.9% increas e in cyber educati on. . This awareness is expected to increase further with the increase in Internet education. the awareness towards online share trading has increased by leaps and bounds.16% Bonds--7% Derivatives--2% Interpretation: This shows that although the mutual funds market is on the rise yet.Market Research and Analysis Preference of Investment Only Shares-. investment in the Stock Market can definitely be increased. So. the most favored investment continues to be in the Share Market.91% No-. with a more transparent system. Interp Awareness of online share trading retatio n: With the Yes -.

37% Interpretation: This pie-chart shows that Sharekhan has a reasonable amount of Brand awareness in terms of a premier Retail stock broking company. .Awareness of Sharekhan as a Brand Yes-. it is to be noted that the customers are not aware of the facilities provided by the company meaning thereby.86% Interpretation: Although there is sufficiently high brand equity among the target audience yet. Awareness of Sharekhan facilities Yes--14% No-. the company should concentrate more towards promotional tools and increase its focus on product awareness rather than brand awareness. This brand image should be further leveraged by the company to increase its market share over its competitors.63% No-. that.

31% Kotak Mahindra.DEMAT account market Sharekhan. . Sharekhan ranks only 3rd amongst the Demat account providers.12% ICICI Direct. This is probably because of two main reasons: 3. the company should crystallize its products and should indulge in aggressive marketing and promotion. Non ± transparent marketing policies of the company Hence.7% India Bulls.24% Others-26% Interpretation: This shows that even with sufficiently high Brand Equity. Lack of promotion and unfocussed approach towards Product awareness 4.

Satisfaction level among Customers with current broker Yes . . This is because of the non ± transparent structure of the Indian share market and the skepticism of the target audience that is generated by the volatility of the stock market. has gone beyond only meeting Sales targets and generating profit volumes.92% No.27% Monthly-53% Yearly-11% Interpretation: Inspite of the huge returns that the share market promises. today.8% Interpretation: This pie-chart accentuates the fact that Strategic marketing. we see that there is still a dearth of active traders and investors. It shows that all the competitors are striving hard not only to woo the customers but also to make them Brand loyal by generating customer satisfaction. It requires efficient bureaucratic intervention on the part of the Government.9% Weekly. Frequency of Trading Daily.

Percentage of earnings invested in Share trading Upto 10%--71% Upto 25%--19% Upto 50%-. Rating of Share trading companies ICICI Direct-37% India Bulls. Interpretation: The survey indicated that people ranked Sharekhan at the 3rd position as an online stock broking company. effective and efficient steps should be undertaken to encourage the customers to invest more in the lucrative stock market.25% Sharekhan-16% Kotak Mahindra-6% Others-16% Hence. Even after relatively low brokerages and better services being provided in comparison to its competitors.7% Above 50%--3% Interpretation: This shows that people invest only upto 10% of their earnings in the stock market. again reiterating the volatile and non-transparent structure of the Indian stock market. Sharekhan is not at the top spot because of ineffective .

000 crore per month) is likely to be the threshold breakeven for online brokerages. mature investors are not µtech-positive¶ and hence unlikely to move to online trading is a major barrier to the growth of e-broking in India. US (40 percent) and UK (20 percent). online trading in India is at a very nascent stage (about 2 percent of total traded volumes) compared to countries like South Korea (60 percent). In spite of these optimistic numbers. one simple fact is worthy of note. experienced equity investor is not online today and the fact that older. due to limited volumes. the company should indulge into aggressive marketing and promotional methods and should approach this problem in a more structured format.170 crore out of total traded volume of Rs 25.marketing and promotional strategies.08. However. Players such as PWC have already entered the Indian market. On an average. Home Trade. IndiaBulls and 5Paisa being some major players.445 crore. as revealed by the SEBI-NCAER study of Indian investors in 2000 is 45 years. The average age of the head (and financial decision taker) of the Indian equity-investor household. Motilal Oswal. no online brokerage is currently making money and a shakeout is imminent in the near future. the numbers of banks with a strong online presence are very few . There are currently close to 50 online brokerages in India with ICICI Direct. Rs 40 crore per day (Rs 1. The average age of the Indian Internet user as cited by a recent IDC survey is 27 years. The older. The going is expected to get tougher with the advent of capital account convertibility. There is scope for multiple players as the entire segment is in a growth stage. dominated by new private banks and foreign banks. While there are many factors that need to be understood to justify this assertion. Both have lesser reach owing to a smaller network in the . KotakStreet.again. Sharekhan. Here. Online trading in the year 2000-2001 accounted for only Rs 50. Hence. while others such as Schwab are expected shortly.

with the exception of ICICI Direct and Home Trade. and a sustained bullish market we would surely be heading to become the largest online stock trading country by the turn of the next decade. . Besides. Besides.500 and 6. The relative inability of large public-sector banks to offer-facilities for Internet banking is a barrier in this regard. only scripts that have been compulsorily dematerialised can be traded on the Net here. Online trading firms can also market themselves aggressively to students who are entering the professional arena. respectively). notwithstanding the current sentiment in the market. potential for online trading is still immense in India. One of the major issues governing trading is the prevailing uncertainty in the market.000 scripts are traded on the national stock Exchange (NSE) and the Bombay Stock Exchange (BSE). These number nearly 600 (about 1. developing multiple delivery channels with anytime telephonic grievance redressal options is some directions which may be of use for the immediate future. online brokerages are advertised very heavily. In markets like the US. increased awareness. Online trading in India has so far not seen similar levels of aggressive advertising. Hence. Internet penetration in India is still very low and concerns about security also tend to predominate.country. ensuring that their entry into equity happens online. assurances of security. With a more transparent system. Brand building.

telephonic information and offices visit.Limitations Services of competitors: We cannot give proper comment on competitor¶s services till we use it. they try to hide information. it is a thing to feel not to see. No proper assurance of right information: The main data sources are websites. Lack of Techno Savvy people and poor Internet penetration: - . y y The data on websites might be possible. Since the area is not known before it Lack of awareness of Stock market: -- takes lot of time in convincing people to start investing in shares primarily in IPO¶s. But I try to collect as accurate information as possible. Mostly people comfortable with traditional brokers: -- As people are doing trading from there respective brokers. they are quite comfortable to trade via phone. is not through with all concepts to whom I contacted. y Sometimes. not get updated. The marketing person might be possible. As we all know services are intangible and we cannot predict its quality.

Some people think that Shares are too risky and just another name of gamble but they don¶t know its not at all that risky for long investors.. . Inaccurate Leads: -.Sometimes leads are provided which had error in it which varies from only 5 digit phone number to wrong phone number y Misleading concepts: -. Some respondents are unwilling to talk: -- Some respondents either do not have time or willing does not respond.Since most of the people are quite experienced and also they are not techno savy. as they are quite annoyed with the phone call. Also Internet penetration is poor in India.

J. Business Standard. Ram Mohan .  The Indian Securities Market by Tadashi Endo.  Intelligent Stock Market Investing by N.  The Big Picture : Reflections on Our Economic Times by T. Business line etc.Bibliography Books and Newspapers:  The Economic Times. Yasaswy.T.