Sharekhan Report PDF

Competitive analysis of Broking Firms in Mumbai
“Competitive Analysis of Broking Firms in Mumbai”
IN PARTIAL FULFILLMNT OF THE REQUIREMENTS FOR
MASTER IN MANAGEMENT STUDIES (MMS)
2009-2011
ROLL NO. P-56
SUBMITTED TO
Dr V.N. BEDEKAR INSTITUTE OF MANAGEMENT STUDIES, THANE
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ACKNOWLEDGEMENT
I would like to sincerely thank Dr. P.M. Kelkar, Director, Dr. V N Bedekar Institute of
Management Studies for giving me an opportunity to go undertake this project.
I would also like to thank Mrs. Seema Agarwal and Mrs. Saroj Mishra for their guidance &
timely cooperation at each and every step in the project. They showed me the right path and
made me capable of undertaking and accomplishing this task.
I would like to express my deep sense of gratitude to my Industry guide, Mr. Prashant Parab,
Asst. Manager Sales– Sharekhan Ltd., Mumbai, who spent his valuable time and guided me. I
have benefited a great deal from his incisive analysis and erudite suggestions. The atmosphere of
a learning organization that he has created along with his peers in Main Branch has not only
helped me but all the other trainees.
I am also sincerely thankful to all the faculty members of Dr. V. N. Bedekar Institue of
Management Studies, Thane for providing their help and advice whenever it was needed.
Finally I wish to extend my sincere acknowledgement to my parents for their moral and financial
support.
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Certificate:
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STATEMENT BY THE CANDIDATE
I wish to state that the work embodied in this project titled “Competitive analysis of
Broking firms in Mumbai” form my own contribution to Management. Wherever references
have been made to intellectual properties of any individual / Institution / Government / Private /
Public Bodies / Universities, research paper, text books, reference books, research monographs,
achieves of newspapers, corporate, individuals, business / Government and any other sources of
intellectual properties viz., speeches, quotations, conference proceedings, extracts from the
websites, working paper, seminal work et al, they have been clearly indicated, duly
acknowledged & included in the bibliography.
_________________
Signature of Candidate
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Contents
ACKNOWLEDGEMENT ............................................................................................................................ 2
GENESIS OF THE REPORT ....................................................................................................................... 7
INTRODUCTION OF THE COMPANY..................................................................................................... 8
Profile of the company .............................................................................................................................. 9
Services offered by sharekhan ................................................................................................................ 10
Products of Sharekhan ............................................................................................................................ 11
NATURE AND SCOPE OF THE PROJECT............................................................................................. 14
SWOT Analysis of sharekhan ................................................................................................................. 15
The major players in online Trading ....................................................................................................... 16
Comparative analysis of various stock broking companies .................................................................... 18
Sharekhan............................................................................................................................................ 18
ICICIDirect ......................................................................................................................................... 21
India Infoline Securities ...................................................................................................................... 24
Angel Trade ........................................................................................................................................ 27
Religare ............................................................................................................................................... 30
OBJECTIVES OF THE STUDY ................................................................................................................ 34
RESEARCH METHODOLOGY ................................................................................................................ 35
MANAGEMENT TOOLS & TECHNIQUES ............................................................................................ 38
Chi square – ............................................................................................................................................ 38
Formulation of Hypothesis: .................................................................................................................... 38
Outcome .................................................................................................................................................. 39
INTERPRETATION................................................................................................................................... 40
FINDINGS .................................................................................................................................................. 52
LEARNING EXPERIENCE ....................................................................................................................... 53
LIMITATION ............................................................................................................................................. 54
APPENDIX ................................................................................................................................................. 55
Appendix – I ........................................................................................................................................... 55
Appendix – II .......................................................................................................................................... 57
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REFERENCES ........................................................................................................................................... 60
Bibliography ........................................................................................................................................... 60
Webliography.......................................................................................................................................... 60
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GENESIS OF THE REPORT
There is growing competition between brokerage firms in post reform India. For investor it is
always difficult to decide which brokerage firm to choose.
Research was carried out to find which brokerage house people prefer and to figure out what
people prefer while investing in stock market.
The Broad objective of the project is to meet clients and let them know about the different
services offered by the Share khan. Also to convince them about how Share khan services out
score their rivals. And how, in future they will be benefited from the services offered by
Sharekhan. This project accomplishes to understand the problem faced by the existing client and
find ways to solve their queries.
This research has put light on positive and strong points of Sharkhan ltd.
An attempt has been made to find out the customer preference in choosing broking firm with the
help of Questionnaire
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INTRODUCTION OF THE COMPANY
Sharekhan is one of the leading retail brokerage of Citi Venture which is running successfully
since 1922 in the country. Earlier it was the retail broking arm of the Mumbai-based SSKI
Group, which has over eight decades of experience in the stock broking business. Sharekhan
offers its customers a wide range of equity related services including trade execution on BSE,
NSE, Derivatives, depository services, online trading, investment advice etc.
Earlier with a legacy of more than 80 years in the stock markets, the SSKI group ventured into
institutional broking and corporate finance 18 years ago. SSKI is one of the leading players in
institutional broking and corporate finance activities. SSKI holds a sizeable portion of the market
in each of these segments. SSKI’s institutional broking arm accounts for 7% of the market for
Foreign Institutional portfolio investment and 5% of all Domestic Institutional portfolio
investment in the country.
It has 60 institutional clients spread over India, Far East, UK and US. Foreign Institutional
Investors generate about 65% of the organization’s revenue, with a daily turnover of over US$ 2
million.
The content-rich and research oriented portal has stood out among its contemporaries because of
its steadfast dedication to offering customers best-of-breed technology and superior market
information. The objective has been to let customers make informed decisions and to simplify
the process of investing in stocks.
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Profile of the company
Name of the company: Sharekhan ltd.
Year of Establishment: 1925
Headquarter : ShareKhan SSKI
A-206 Phoenix House
Phoenix Mills Compound
Lower Parel
Mumbai - Maharashtra, INDIA- 400013
Nature of Business: Service Provider
Services: Depository Services, Online Services and

Technical Research.
Number of Employees: Over 3500
Website: www.sharekhan.com
Slogan: Your Guide to The Financial Jungle.
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Vision
To be the best retail brokering Brand in the retail business of stock market.
Mission
To educate and empower the individual investor to make better investment decisions through
quality advice and superior service.
Sharekhan is infact-
• Among the top 3 branded retail service providers
• No. 1 player in online business
• Largest network of branded broking outlets in the country serving more
than 7,00,000 clients.
Services offered by sharekhan
1- Equity Trading Platform (Online/Offline).
2- Commodities Trading Platform (Online/Offline).
3- Portfolio Management Service.
4- Mutual Fund Advisory and Distribution.
5- Insurance Distribution.
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Products of Sharekhan
CLASSIC ACCOUNT
This is a User Friendly Product which allows the client to trade through website
www.sharekhan.com and is suitable for the retail investors who is risk-averse and hence prefers
to invest in stocks or who does not trade too frequently.
Features
 Online trading account for investing in Equity and Derivatives via www.sharekhan.com
 Live Terminal and Single terminal for NSE Cash, NSE F&O & BSE.
 Integration of On-line trading, Saving Bank and Demat Account.
 Instant cash transfer facility against purchase & sale of shares.
 Competitive transaction charges.
 Instant order and trade confirmation by E-mail.
 Streaming Quotes (Cash & Derivatives).
 Personalized market watch
 Single screen interface for Cash and derivatives and more.
 Provision to enter price trigger and view the same online in market watch.
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TRADE TIGER
TRADE TIGER is an internet-based software application that enables you to buy and sell
in an instant. It is ideal for active traders and jobbers who transact frequently during day’s
session to capitalize on intra-day price movement.
Features
 A single platform for multiple exchange BSE & NSE (Cash & F&O), MCX, NCDEX,
Mutual Funds, IPOs
 Multiple Market Watch available on Single Screen
 Multiple Charts with Tick by Tick Intraday and End of Day Charting powered with
various Studies
 Graph Studies include Average, Band- Bollinger, Know SureThing, MACD, RSI, etc
 Apply studies such as Vertical, Horizontal, Trend, Retracement & Free lines
 User can save his own defined screen as well as graph template, that is, saving the layout
for future use
 User-defined alert settings on an input Stock Price trigger
 Tools available to guage market such as Tick Query, Ticker, Market Summary, Action
Watch, Option Premium Calculator, Span Calculator
 Shortcut key for FAST access to order placements & reports
 Online fund transfer activated with 12 Banks
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DialnTrade:
Free with your Sharekhan Trading Account, the Dial-n-Trade service enables you to place orders
for buying and selling shares through your telephone.
All you have to do is dial any one of our dedicated numbers (1-800-22-7050 or 30307600 or
1800-270-7050 ), enter your TPIN number (which is provided at the time of opening your
account) and on authentication you'll be directed to a telebroker who will buy and sell shares for
you.
Features of Dial-n-Trade
 Simple and Secure Interactive Voice Response based system for authentication
 No waiting time. Enter your TPIN to be transferred to our telebrokers
 You also get the trusted, professional advice of our telebrokers
 After hours order placement facility between 8.30 am and 9.00 am
 Reliable service, wherever you are
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NATURE AND SCOPE OF THE PROJECT
This report identifies the performance and marketing strategy of brands with which Sharekhan
competes.
Competitive environment under which Sharekhan operates including strengths, weaknesses,

opportunities and threats has been studied.
An indepth analysis of competitor's products, prices, services, promotional activities and brand
image has been done with due emphasis on customers attitude towards it.
Finally, customer behavior and expectation has been captured through a structured questionnaire
covering various parameters. Thus, this report gives an insight into competitive advantage and
disadvantage of different leading broking firms in the area of Mumbai.
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SWOT Analysis of sharekhan

Strengths Weaknesses
 High R&D  Diseconomies to scale

 Online growth  Not innovative
 Loyal customers  Not diversified
 Market share leadership  omnipresent products, services
 Strong management team  high employee turnover
 Strong financial position  less small investors
 Pricing  employees not properly skilled
 Real estate  infrastructure not up to the mark
 Reputation management
 Unique products
 diverse products and offers for the
customers
 strong brand recall
 strong reach to the masses
 among the top 5 brokerage houses in
the country
Opportunities Threats
 Financial markets (raise money  Competition

through debt, etc)  Cheaper technology
 Innovation  Economic slowdown
 Online  External changes (government,
 Product and services expansion politics, taxes, etc)
 penetration in developing cities  Exchange rate fluctuations
 increase in awareness of people about  Lower cost competitors or imports
stock market  Price wars
 increase in wealth  Product substitution
 positive market sentiments
 growth of technology and awareness
 increased internet usage
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The major players in online Trading
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Different Players in Share Industry
In the share market there are many DP’s amongst which SHAREKHAN is one of them. There
are many competitors in the market which are giving direct competition to the company, but
because of the research based services and wealth management services Offered by Sharekhan
(Services Truly Personalized), it is unique in the market.
In the competitor’s list there are big names such as:
 5 paisa
 Religare
 Angel Broking
 HDFC Sec.
 Kotak Street
 ICICI DIRECT etc.
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Comparative analysis of various stock broking companies
Sharekhan:
Sharekhan's equity related services include trade execution on BSE, NSE, Derivatives,
commodities, depository services, online trading and investment advice. Trading is available in
BSE and NSE. Along with Sharekhan.com website, ShareKhan has around 510 offices (share
shops) in 170 cities around the country.
Share khan has one of the best state of art web portal providing fundamental and statistical
information across equity, mutual funds and IPOs.
You can surf across 5,500 companies for in-depth information, details about more than 1,500
mutual fund schemes and IPO data. You can also access other market related details such as
board meetings, result announcements, FII transactions, buying/selling by mutual funds and
much more.
Brokerage details for various plans of Sharekhan :
1. CLASSIC NORMAL:-
A/c. opening charge 750/- (total adj. in brok.within six month)

min. margin req. 5000/- (total investable, refundable)
brok. (intraday) 0.10% (buy only)
brok. (delivery) 0.50% (both side)
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2. TRADE TIGER:-
A/c. opening charge 1000/- (total adj. in brok.within six month)

min. margin req. 5000/- (total investable, refunable)
3. PREPAID 2000/-
A/c. opening charge 0/-

adv. brok. req. 2000/- (valid 1 year)
4. PREPAID 6000/-
A/c. opening charge 0/-

adv. brok. req. 6000/- (valid 1 year)
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Advantages of Sharekhan:
 Online trading is very user friendly and one doesn't need any software to access.
 They provide good quality of services like daily SMS alerts, mail alerts, stock
recommendations etc.
 Sharekhan has ability to transfer funds from most banks. Unlike ICICI Direct, HDFC
Sec, etc., so investor not really needs to open an account with a particular bank as it can
establish link with most modern banks.
Disadvantages of Sharekhan:
 They charge minimum brokerage of 10 paisa per stock would not let you trade stocks
below 20 rs. (If you trade, you will lose majority of your money in brokerage).
 Lots of hidden rules and charges.
 Classic account holders cannot trade commodities.
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ICICIDirect
ICICIDirect (or ICICIDirect.com) is stock trading company of ICICI Bank. Along with stock
trading and trading in derivatives in BSE and NSE, it also provides facility to invest in IPOs,
Mutual Funds and Bonds. Trading is available in BSE and NSE.
Type of Account
ICICIDirect offers 3 different online trading platforms to its customers:
1. Share Trading Account
Share Trading Account by ICICIDirect is primarily for buying and selling of stocks in BSE and
NSE.
This account allows Cash Trading, Margin Trading, MarginPLUS Trading, Spot Trading, Buy
Today Sell Tomorrow and Call and Trade on phone.
ICICIDirect.com website is the primary trading platform for this trading account. They also
provide installable application terminal based application for high volume trader.
2. Wise Investment Account
Along with stock trading and IPO investing in BSE and NSE, Wise Investment account also
provide options to invest in Mutual Funds and Bonds online.
Online Mutual funds investment allows investor to invest on-line in around 19 Mutual Fund
companies. ICICI Direct offers various options while investing in Mutual Funds like Purchase
Mutual Fund, Redemption and switch between different schemes, Systematic Investment plans,
Systematic withdrawal plan and transferring existing Mutual Funds in to electronic mode. This
account also provides facility to invest in Government of India Bonds and ICICI Bank Tax
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Saving Bonds.
3. Active Trader Account
Active Trader account gives more personalized investment options to the investors. It allows
investor to use online and offline stock trading. It also provides with independent market
expertise and support through a dedicated Relationship Manager from ICICI.
Active Trader also provides commodity trading.
Brokerage and fees
 Account opening fees : Rs 750/- (One time non-refundable)

 Brokerage : ICICIDirect.com brokerage varies on volume of trade and inclusive of
demat transaction charges, service taxes and courier charges for contract notes. It ranges
from 0.1% to 0.15% for margin trades, 0.2% to 0.425% for squared off trades and 0.4%
to 0.85% on delivery based trades.
Advantages of ICICIDirect
1. 3-in-1 account integrates your banking, broking and demat accounts. All accounts are
from ICICI and very well integrated. This feature makes ICICI the most interesting
player in online trading facility. There is absolutely no manual interfere require. This is
truly online trading environment.
2. Unlike most of the online trading companies in India which require transferring money to
the broker's pool or towards deposits, at ICICIDirect you can manage your own demat
and bank accounts through ICICIdirect.com. Money from selling stock is available in
ICICI bank account as soon as the ICICIDirect receive it.
3. Investment online in IPOs, Mutual Funds, GOI Bonds, and Postal Savings Schemes all
from one website. General Insurance is also available from ICICI Lombard.
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Disadvantages of ICICIDirect
1. Getting access to ICICIDirect.com website during market session can be frustrating.

2. ICICIDirect brokerage is high and not negotiable.
3. Not all stocks are available under Margin Plus
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India Infoline Securities
5paisa is Online Stock Trading Company of India Infoline Securities Private Ltd., Owner of
popular business portal Indiainfoline.com. Besides high quality investment advice from an
experienced research team, the site offers real time stock quotes, market news and multiple tools
for technical analysis
Trading Terminals:
5Paisa offers 2 different online trading terminals to its customers:
1. Investor Terminal (IT)
Investor Terminal is 5Paisa's equity trading terminal for low volume trader. This is web based
terminal and could access from anywhere. This product provides limited features in comparison
of Trader Terminal, which is another product provided by 5Paisa.
2. Trader Terminal (TT)
Trader Terminal is design for high volume equity traders or day traders. Trader Terminal
provides high volume trading with powerful interface and fast order execution.
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Few popular features of trader terminal are:
 Fast trade execution with instant trade confirmation.

 Live streaming quotes and price watch on any number of stocks.
 Intra day charts, updated live, tick-by-tick.
 Top Gainers, Top Losers, Most Active, updated live.
 Index information; index chart, index stock information live.
 Market depth, i.e. Best 5 bids and offers, updated live for all stocks.
 Online access to both accounts and DP to check live updated Order and Trade Book.
 Facility to place after market orders.
 Online fund transfer facility from leading Banks including ICICI, HDFC, CITI and UTI
banks.
 Online intra-day technical calls.
Brokerage and Account opening fees:
 Account opening fees: Rs 500/- one time non refundable.

 5 paisa offer competitive rates. They charge only 5 paisa for Rs 100 of trade done, which
is 0.05% brokerage. In case of trade that result in delivery, they charge an additional
0.20% for back office and securities handling.
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Advantages of 5paisa
1. Very fast execution speed.

2. Rates are very competitive then other providers.
3. Easy online fund transfer facility from leading Banks including ICICI, HDFC, CITI and
UTI banks.
4. Free facility of subscribing to mutual funds, equity IPOs and other investment products.
Disadvantages of 5paisa
1. No intra-day tick by tick charts in Investor Terminal (IT).

2. Investing in IPO and Mutual Funds is not so easy like in ICICIDirect.
3. Learning 5paisa Trading Terminal is little hard.
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Angel Trade
Angel Group has emerged as one of the top 3 retail broking houses in India. Incorporated in
1987, it has memberships on BSE, NSE and the two leading commodity exchanges in India i.e.
NCDEX & MCX. Angel is also registered as a depository participant with CDSL.
Angel's retail stock broking house offering a gamut of retail centric services.
 Ebroking
 Investment Advisory
 Portfolio Management Services
 Wealth Management Services
 Commodities Trading
Trading Platforms:
Angel Trade provides 4 trading platforms, 2 are browser based & 2 are application based.
1. Angel investor
It is a browser based trading platform. The rates are updated on clicking the refresh button. This
facility ensures it is not blocked by firewall. Thus it is useful for investor who needs to access
information from places where firewall blocks such data.
2. Angel Trade
It is a browser based trading platform. The rates are updated automatically. This platform is
useful for investors & traders to access market from different terminals.
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3. Angel Diet
It is an application based trading platform where rates are updated automatically. All segments
are available on a single screen. This is ideal platform for the daily traders.
4. Angel Anywhere
It is an application based trading platform where rates are updated automatically. This is ideal for
investors & traders who are inclined towards trading based on charts & technical tools.
Brokerage and fees:
1. Account opening fees:

Stock trading account - Rs 575/-
Demat account - Rs 200/-
Commodity trading - Rs 625/-
2. Brokerage:
For trade up to the range of Rs 1 - 3 Crore:
Cash Based: 0.50%
Day trading: 0.05%
Derivatives: 0.05%
For trade more than Rs 3 Crore, brokerage is about 0.03%
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Advantages of Angel Trade
1. User friendly browser-based / application based online trading platform.

2. The auto square off time is at 3:15 and an investor can buy up to 4 times the value in his
account.
3. Trading account can be linked with popular private banks like HDFC Bank, ICICI Bank,
UTI bank etc.
Disadvantages of Angel Trade
 Online money transfer from trading account to bank account is not available:
Trading account can be linked with popular private banks like HDFC Bank, ICICI Bank,
UTI bank etc. A trader can transfer money from his bank to the trading account online.
But the reverse transactions are not yet available online.
This means money, a trader gets after selling shares doesn’t get credited in his bank
account directly. The trader has to call Angel Trade and request for the deposit. This
takes couple of working days
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Religare
Religare Enterprises Limited is Ranbaxy Laboratories Limited promoted financial product and
service Provider Company.
Religare provide its service in three different segments including Retail, Wealth management
and the Institutional spectrum. Company offers wide range of services including equities,
commodities, insurance broking, wealth advisory, portfolio management services, personal
finance services, Investment banking and institutional broking services. Religare retail network
has more than 900 locations in 300 cities and towns in India.
Religare Securities Limited (RSL) is a subsidiary company of Religare Enterprises Ltd and
involve in equity related services include online trading at BSE and NSE, Derivatives,
commodities, IPO, Mutual fund, Investment banking and institutional broking services.
Type of Account
Religare offers its wide range of financial services though a sophisticated and customized trading
platform - R-ACE (Religare Advanced Client Engine). Below are 3 flavors of R-ACE accounts
available to the investors.
1. R-ACE (Basic)
R-ACE (Religare Advanced Client Engine) the basic online trading account provided by
Religare. Investor can trade and access their account information online and over the phone as
well. This account comes with a browser based online trading platform and no additional
software installation needed.
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2. R-ACE Lite (Advanced)
R-ACE Lite is the advanced trading platform for the investor of Religare. This trading account
provides the entire feature of R-ACE (Basic) account. In addition it also provides real-time
streaming stock quotes and alerts. This trading platform is also browser based and no software
installation is needed.
3. R-ACE Pro (Professional)
As the name indicates this account is for high volume traders. Along with the features from
above 2 accounts, this account also comes with Trading Terminal software which needs to install
on your computer. This terminal directly connects the investor to stock market and having all
industry standard Treading terminal features including technical charting (intra-day and EOD),
multiple watch list, advanced hot-key functions for faster trading, derivative chains, futures &
options calculator etc.
As in basic and advance account, trading is available online through internet and offline though
phone.
Brokerage and Account opening fees:
Religare offers three kinds of accounts as above. Below are detail about fees and activation
charges for each account:
1. R-ACE
Account activation charges Rs.299/-.
Minimum margin of Rs.5000/- required.
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2. R-ACE Lite
Minimum margin of Rs.5000/- required.
3. R-ACE Pro
Minimum margin of Rs.10,000/- required.
4. Brokerage at Religare
On the basis of volume and frequency of trading, Religare provide different options for
brokerages. On the broader way they divided into three categories:
Classic Account
Intraday brokerage varies from 0.03% to 0.05%.

Delivery brokerage varies from 0.30% to 0.50%.
Derivatives brokerage varies from 0.3% to 0.5%.
Classic Plus
Fees: Rs 600
Validity Period 6 Months
Intraday brokerage varies from 0.03% to 0.05%.
Delivery brokerage varies from 0.30% to 0.50%.
Freedom Account
In this payment plan, investor has to pay a fix amount in advance for Monthly (Rs 500),
Quarterly (Rs.1400), Half-yearly (Rs 2500) or Annual Subscription (Rs 4000). This onetime
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payment enable account holder to trade for Rs. 3,00,000 intraday & derivative trading and Rs.
40,000 of delivery based trading for zero brokerage.
Advantages of Religare
1. Religare gives interest on unutilized cash when investor is waiting to make next trade or
online investment.
2. They provide intraday reports and historical charting.
3. Varity of fee structure to fulfill need of different type of investors
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OBJECTIVES OF THE STUDY
The study has been undertaken to analyze the services and brokerage of different broking firms
in Mumbai.
 To study the competitive position of Sharekhan Ltd in Competitive Market
 To study about the effectiveness & efficiency of Sharekhan Ltd in relation to its
competitors
 To study level of satisfaction towards Sharekhan’s Services & products
 To study about the difficulties faced by customers while Trading with Sharekhan.
 To study about the need of improvement in existing Trading system.
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RESEARCH METHODOLOGY
Research Method:
The study uses Conclusive Research method wherein hypothesis of the research problem are
tested so as to draw definite conclusions for implementation.
Research Design:
A research design is a statement or specification of the methods and procedures used for
acquiring the information needed for the solution of some specific problems. It provides a
scientific frame work for conducting a research. On the basis, research design can be classified
into three classes – Exploratory, Descriptive and Casual. When a research is conducted for some
specific purpose using structural questionnaire to gather information the research is said to be
descriptive in nature.
Research Boundary:
Data collection from the respondent has been limited to the area of south Mumbai.
Sampling Process:
Taking into account the practical considerations the study selects a sample survey as the means
of gathering primary information. A sample survey allows an individual to devote his attention
upon a relatively small number of people and hence, to devote more time and energy to ensure
that the information collected from them is more accurate.
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Defining the Population:
The first thing that a sample plan must include is the definition of the population to be
investigated. The population should be defined as clearly as possible. The population chosen for
the study, taking into consideration the objective of the study is defined as, all the customers of
stock broking firm.
Types of Sample:
The study uses Non-Probability type sampling method .Among the various non probability types
of sampling, the study uses Purposive Sampling. In purposive sampling the sampling units of the
sample are identified from the population selectively which prevents inclusion of other sample
units in the sample.
SIZE OF SAMPLE
“This refers to the number of items to be selected from the universe to constitute a sample”
In our research sample size is 80.
But we also study the 5 stock broker companies like Angel Broking, ICICI
direct, HDFC securities, Indiainfoline, Religare for the appropriate collection of the information.
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SOURES OF DATA COLLECTION
While deciding about the method of data collection to be used for the study the researcher should
keep to types of data.
1. Primary Data
The primary source used for gathering data required for this survey is – Survey method. A
planned effort is made using structured questionnaire to interview the respondents.
2. Secondary Data.
Secondary means which are already available like annual report, magazines, Websites etc.
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MANAGEMENT TOOLS & TECHNIQUES
Chi square –
The best-known situations in which the chi-square distribution is used are the common chi-
square tests for goodness of fit of an observed distribution to a theoretical one, and of the
independence of two criteria of classification of qualitative data. Many other statistical tests also
lead to a use of this distribution.
A statistical analysis has been carried out in this report to find out the overall effect of varied
parameters on different brokerage firms by making use of test for independence.
Formulation of Hypothesis:
Null Hypothesis: There is no significant difference in preference for the broking firm brands
under study.
That is Religare, Angel broking, ICICI Direct, IndiaInfoline & Sharkhan are at par in terms of
product and services being offered.
Alternate Hypothesis: There is significant difference in preference for the broking firm
brands under study.
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Outcome
Chi square test for Independence:
Calculated value of chi square = 14.466
Table value of chi square at 2.5% level of significance = 34.2
(Since it is two tailed analysis level of significance will be 5/2 = 2.5 %)

Thus, calculated value > tabular value.
Null Hypothesis has been rejected and alternative hypothesis has been accepted i.e
There is no significant difference in preference for the broking firm brands under study.
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INTERPRETATION
1. Awareness of share markets.
Options Number of % of
Respondents Respondents
Partial 56 70%
Complete 16 20%
Nil 8 10%
80%
70%
70%
60%
50%
40%
30%
20%
20%
10%
10%
0%
Partial Complete Nil
Chart 1
Interpretation:-
70% of respondents have partial knowledge about share market where as 20% of respondent
have complete knowledge about share market.
40
2. Sector preferred for investing in share market?
Equity & Cash 25 31%
Derivative 18 22%
Mutual Fund 14 18%
IPO 12 15%
PMS 3 4%
Commodities 8 10%
35%
31%
30%
25% 22%
20% 18%
15%
15%
10%
10%
4%
5%
0%
Chart 2
Interpretation:-
Most of the customer prefers investing in Equity & Cash i.e 31% and 22% would like to invest in
derivatives followed by mutual fund (18%).
41
3. In which company you have D-mat & Trading account?
Sharekhan 15 19%
Angel Broking 18 22%
India Infoline 12 15%
ICICI Direct 7 9%
Religare 13 16%
HDFC Sec. 9 11%
Others 6 8%
25%
22%
20% 19%
16%
15%
15%
11%
10% 9%
8%
5%
0%
Sharekhan Angel India ICICI Religare HDFC Sec. Others
Broking Infoline Direct
Chart 3
Interpretation:-
19% of respondents are the customers of share khan, whereas 22% of respondents are trading
with Angel broking firm.
42
4. Which is the primary reason behind trading with the present company?
Low brokerage 31
19%
structure
Better 4
appreciation in
22%
PMS
Quality of 8
15%
research report
Comfort level 19
9%
with software
Customer 18
16%
Service
45%
39%
40%
35%
30%
24% 23%
25%
20%
15%
10%
10%
5%
5%
0%
Low brokerage Better Quality of Comfort level Customer
structure appreciation in research report with software Service
PMS
Chart 4
Interpretation:-
39 % respondents are happy with the low brokerage structure where as 24% & 23% respondents
are satisfied with the software and customer service respectively.
43
5. Which company would you prefer the most based on the following parameters?
Brokerage Quality Brand Software AMC Customer
Structure research Name Plan Service
report
Sharekhan 12 23 26 25 15 21
Angel Broking 28 19 18 19 24 18
Religare 18 13 14 16 17 15
India Infoline 14 15 15 12 15 16
ICICI Direct 8 10 7 8 9 10
Total 80 80 80 80 80 80
A. Brokerage Structure
Brokerage Structure
40% 35%
35%
30%
25% 23%
20% 18%
15%
15% 10%
10% Brokerage Structure
5%
0%
Chart 5
Interpretation:-
Brokerage structure wise 35% respondents prefer Angel broking where as15% respondents
prefer Sharekhan.
44
B. Quality Research report
Quality research report

35%
29%
30%
24%
25%
19%
20% 16%
15% 13%
10%
Quality research report
5%
0%
Chart 6
Interpretation:-
29% respondents think that ShareKhan provides quality research report where as 24%
respondents prefer Angel broking’s research report over other broking firms.
45
C. Brand Name
Brand Name
35% 33%
30%
25% 23%
18% 19%
20%
15%
Brand Name
9%
10%
5%
0%
Sharekhan Angel Religare India ICICI Direct
Broking Infoline
Chart 7
Interpretation:-
33% respondents prefer sharekhan as far as brand name is concern where as 23% prefer angel
broking.
46
D. Software
Software
35% 31%
30%
24%
25%
20%
20%
15%
15%
10% Software
10%
5%
0%
Broking Infoline
Chart 8
Interpretation:-
31% respondent find software offered by Sharkhan is more user friendly and very easy to use &
24% respondents prefer the angel broking software.
47
E. AMC plan
AMC Plan
35%
30%
30%
25% 21%
19% 19%
20%
15% 11% AMC Plan
10%
5%
0%
Broking Infoline
Chart 9
Interpretation:-
Maximum number of respondents i.e.30% prefer AMC plan of Angel broking because it is less
expensive than other firm
48
F. Customer Service
Customer Service
30% 26%
25% 23%
19% 20%
20%
15% 13%
10%
Customer Service
5%
0%
Chart 10
Interpretation:-
26% respondents are happy with the sharkhan’s customer service where as 23% respondents like
the customer service of angel broking.
49
6. As a first time investor which broking firm you would have preferred the most?
Sharekhan 29 36%
Angel Broking 21 26%
India Infoline 14 18%
ICICI Direct 3 4%
Religare 9 11%
HDFC Sec. 4 5%
40% 36%
35%
30% 26%
25%
20% 18%
15% 11%
10%
5%
4%
5%
0%
Sharekhan Angel India ICICI Direct Religare HDFC Sec.
Broking Infoline
Chart 11
Interpretation:-
36% respondents said that they will prefer Sharekhan broking firm as a first time investor
because of their name and service provided and the quality of software they provide which is free
of cost.
50
7. If offered with better brokerage structure and Services would you like to switch
over to sharekhan?
Yes 58 73%
No 12 28%
80% 73%
70%
60%
50%
40%
28%
30%
20%
10%
0%
Yes No
Chart 12
Interpretation:-
73% respondents said that they will prefer Sharekhan broking firm if better brokerage and
services offered.
51
FINDINGS
 According to the data that has been collected, all the people who were contacted have got
partial knowledge of share market
 People like to invest more in equity sector rather than any other sector. This is because of
the stability and easy liquidity. Also, investor are exempt from tax in case of long term
capital gain and short term capital gain fall under 10% tax slab
 Majority of the first time investor prefers sharekhan over other brand. This is because of
the intensive sales promotion which they carry out and the kind of software and services
being offered to customers.
 Sharekhan organizes seminars across the country from time to time in order to educate
investors in various subjects related to the stock, derivatives and commodities markets
 In terms of promotional activities sharekhan is much ahead of its competitors. It spends a

huge amount on advertisement on social networking sites like Orkut, Rediff , gmail etc.
 Regular trader prefers Angel and IndiaInfoline due to the low brokerage being charged by
them. Also the account maintenance cost is low as compare to others.
 This study reveals probability of customers switching over to sharekhan might increase
provided they charge low brokerage and better AMC plan.
 On the basis of Chi square test for independence, we can observe that there is no
significant difference in the preference of brand. As each firm has been preferred in
certain specific domain (brokerage structure, Software, AMC plan, Customer Service
etc).
52
LEARNING EXPERIENCE
 While acquiring clients for new demat accounts, I learned to converse and convince them by
offering investment solutions that best suits their requirement and objective.
 Sharekhan gave me an opportunity to get into intricacies of sharemarket.
 In the course of research i gained knowledge about competitve edge of diferent leading
broking firms in Mumbai
 It’s a great experience to here from clients their trading experience over the years and their
perception about different firms.
 In order to make clients familiar with the process of on-line trading, i got acquainted with
the entire procedure of demonstration of software.
53
LIMITATION
 As only Mumbai dealt in survey so it does not represent the view of the total Indian
market.
 Size of the research may not be substantial.
 There was lack of time on the part of respondents.
 The survey was carried through questionnaire and the questions were based on
perception.
 There may be biased view of market participant.
 Complete data was not available due to company privacy and secrecy.
54
APPENDIX
Appendix – I: Questionnaire
1. Do you have any knowledge of share markets?
Partial Complete Nil
2. In which sector would you prefer investing?
Equity or Cash Market
Derivative Market
Mutual funds
Initial Public Offer (IPO)
Portfolio Management System (PMS)
Commodities
3. In which company you have D-mat & Trading account?
Sharekhan Ltd Angel Broking
Indiainfoline ICICI direct
Religare HDFC securities
Others____________________
4. According to you which is the primary reason behind trading with the present company?
Low brokerage structure
Better appreciation in PMS
Quality of research report
Comfort level with software
Customer Service
55
5. Which company would you prefer the most based on the following parameters?
Brokerage Quality research Brand Software AMC Plan Customer

Structure report Name Service
Sharekhan
Angel Broking
Religare
India Infoline
ICICI Direct
6. Had you been a first time investor, which broking firm you would have preferred the most?
Sharekhan Ltd Angel Broking
Indiainfoline ICICI direct
Religare HDFC securities
7. If offered with better brokerage structure and Services would you like to switch over to sharekhan ?
Yes No
8. Recommendations if any, for sharekhan?
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
56
Appendix – II
Data view:
57
Variable view:
Output of Chi-square test:
Cross-tabs:
58
Chi square distribution table:
Calculated value compared with table value at 2.5% level of significance and degree of freedom
20.
59
REFERENCES
Bibliography
Kotler, Philip., “Marketing Management” , Dorling Kindersley (India) Pvt. Ltd, 2009
Kothari, CR., “Research Methodology”, New Age International Ltd, 2004
Paneerselvam, R., “Research Methodology”, Prentice Hall of India Pvt. Ltd, 2008
Ramaswamy, “Marketing Management”, Mac Millan India Ltd, 2004
Webliography
www.angeltrade.com
www.icicibank .com
www.icicidirect .com
www.nseindia.com
www.bseindia.com
www.hdfcsec.com
www.sharekhan.com
www.indianmba.com
www.chittorgarh.com/
www.5paisa.com/
www.religare.in/
www.moneycontrol.com
www.sharekhanlearning.com
www.mouthshut.com/product.../Sharekhan.com
60

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Competitive analysis of Broking Firms in Mumbai

“Competitive Analysis of Broking Firms in Mumbai”

IN PARTIAL FULFILLMNT OF THE REQUIREMENTS FOR

MASTER IN MANAGEMENT STUDIES (MMS)

ROLL NO. P-56

Dr V.N. BEDEKAR INSTITUTE OF MANAGEMENT STUDIES, THANE

STATEMENT BY THE CANDIDATE

GENESIS OF THE REPORT

INTRODUCTION OF THE COMPANY

Profile of the company

Name of the company: Sharekhan ltd.

Year of Establishment: 1925

Headquarter : ShareKhan SSKI

A-206 Phoenix House

Phoenix Mills Compound

Mumbai - Maharashtra, INDIA- 400013

Nature of Business: Service Provider

Services: Depository Services, Online Services and

Number of Employees: Over 3500

Slogan: Your Guide to The Financial Jungle.

• Among the top 3 branded retail service providers

• No. 1 player in online business

• Largest network of branded broking outlets in the country serving more

than 7,00,000 clients.

Services offered by sharekhan

1- Equity Trading Platform (Online/Offline).

2- Commodities Trading Platform (Online/Offline).

3- Portfolio Management Service.

4- Mutual Fund Advisory and Distribution.

 Integration of On-line trading, Saving Bank and Demat Account.

 Instant cash transfer facility against purchase & sale of shares.

 Competitive transaction charges.

 Instant order and trade confirmation by E-mail.

 Streaming Quotes (Cash & Derivatives).

 Personalized market watch

 Single screen interface for Cash and derivatives and more.

 Multiple Market Watch available on Single Screen

for future use

 User-defined alert settings on an input Stock Price trigger

Watch, Option Premium Calculator, Span Calculator

 Shortcut key for FAST access to order placements & reports

 Online fund transfer activated with 12 Banks

 No waiting time. Enter your TPIN to be transferred to our telebrokers

 You also get the trusted, professional advice of our telebrokers

 After hours order placement facility between 8.30 am and 9.00 am

 Reliable service, wherever you are

NATURE AND SCOPE OF THE PROJECT

Competitive environment under which Sharekhan operates including strengths, weaknesses,

SWOT Analysis of sharekhan

 High R&D  Diseconomies to scale

 Financial markets (raise money  Competition

The major players in online Trading

Different Players in Share Industry

In the competitor’s list there are big names such as:

 ICICI DIRECT etc.

Comparative analysis of various stock broking companies

Brokerage details for various plans of Sharekhan :

A/c. opening charge 750/- (total adj. in brok.within six month)

A/c. opening charge 1000/- (total adj. in brok.within six month)

A/c. opening charge 0/-

A/c. opening charge 0/-

ICICIDirect offers 3 different online trading platforms to its customers:

1. Share Trading Account