INTRODUCTION OF KOTAK MAHINDRA GROUP:

The Kotak Mahindra Group

Kotak Mahindra is one of India's leading financial organizations, offering a wide range of
financial services that encompass every sphere of life. From commercial banking, to stock
broking, to mutual funds, to life insurance, to investment banking, the group caters to the
diverse financial needs of individuals and corporate.

The group has a net worth of over Rs. 6,799 crore and has a distribution network of branches,
franchisees, representative offices and satellite offices across cities and towns in India and
offices in New York, London, San Francisco, Dubai, Mauritius and Singapore. The Group
services around 6.4 million customer accounts.

Kotak Group Products & Services

 Bank
 Credit Cards
 Life Insurance
 Mutual Fund
 Car Finance
 Securities
 Institutional Equities
 Investment Banking
 International Business
 Kotak Private Equity
 Kotak Realty Fund
 Wealth Management

HISTORY:

The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance
Limited. This company was promoted by Uday Kotak, Sidney A. A. Pinto and Kotak &
Company. Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986, and
that's when the company changed its name to Kotak Mahindra Finance Limited.
Since then it's been a steady and confident journey to growth and success.
Table shows the brief story about the Kotak Mahindra Group:

1986 Kotak Mahindra Finance Limited starts the activity of Bill Discounting.
1987 Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market.
1990 The Auto Finance division is started.
The Investment Banking Division is started. Takes over FICOM, one of India's
1991
largest financial retail marketing networks.
1992 Enters the Funds Syndication sector.
Brokerage and Distribution businesses incorporated into a separate company -
1995 Kotak Securities. Investment Banking division incorporated into a separate
company - Kotak Mahindra Capital Company.
The Auto Finance Business is hived off into a separate company - Kotak Mahindra
Prime Limited (formerly known as Kotak Mahindra Primus Limited). Kotak
1996 Mahindra takes a significant stake in Ford Credit Kotak Mahindra Limited, for
financing Ford vehicles. The launch of Matrix Information Services Limited marks
the Group's entry into information distribution.
Enters the mutual fund market with the launch of Kotak Mahindra Asset
1998
Management Company.
Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance business.
Kotak Securities launches its on-line broking site (now www.kotaksecurities.com).
2000
Commencement of private equity activity through setting up of Kotak Mahindra
Venture Capital Fund.
Matrix sold to Friday Corporation
2001
Launches Insurance Services
Kotak Mahindra Finance Ltd. converts to a commercial bank - the first Indian
2003
company to do so.
2004 Launches India Growth Fund, a private equity fund.
Kotak Group realigns joint venture in Ford Credit; Buys Kotak Mahindra Prime
(formerly known as Kotak Mahindra Primus Limited) and sells Ford credit Kotak
2005
Mahindra.
Launches a real estate fund
Bought the 25% stake held by Goldman Sachs in Kotak Mahindra Capital
2006
Company and Kotak Securities
This graph illustrates the journey so far:

In October 2005, Kotak Group acquired the 40% stake in Kotak Prime held by Ford Credit
International (FCI) and FCI acquired the stake in Ford Credit Kotak Mahindra (FCKM)
held by Kotak Group.

In May 2006, Kotak Group bought 25% stake held by Goldman Sachs in Kotak Capital and
Kotak Securities.

GROUP STRUCTURE:
* Includes direct and indirect holdings

Key group companies and their businesses:

Kotak Mahindra Bank: The Kotak Mahindra Group's flagship company, Kotak Mahindra
Finance Ltd which was established in 1985, was converted into a bank- Kotak Mahindra
Bank Ltd in March 2003 becoming the first Indian company to convert into a Bank. Its
banking operations offer a central platform for customer relationships across the group's
various businesses. The bank has presence in Commercial Vehicles, Retail Finance,
Corporate Banking, Treasury and Housing Finance.

Kotak Mahindra Capital Company: Kotak Mahindra Capital Company Limited (KMCC)
is India's premier Investment Bank. KMCC's core business areas include Equity Issuances,
Mergers & Acquisitions, Structured Finance and Advisory Services.

Kotak Securities: Kotak Securities Ltd. is one of India's largest brokerage and securities
distribution houses. Over the years, Kotak Securities has been one of the leading investment
broking houses catering to the needs of both institutional and non-institutional investor
categories with presence all over the country through franchisees and coordinators. Kotak
Securities Ltd. offers online (through www.kotaksecurities.com) and offline services based on
well-researched expertise and financial products to non-institutional investors.

Kotak Mahindra Prime: Kotak Mahindra Prime Limited (KMPL) (formerly known as
Kotak Mahindra Primus Limited) has been formed with the objective of financing the retail
and wholesale trade of passenger and multi utility vehicles in India. KMPL offers customers
retail finance for both new as well as used cars and wholesale finance to dealers in the
automobile trade. KMPL continues to be among the leading car finance companies in India.

Kotak Mahindra Asset Management Company: Kotak Mahindra Asset Management

Company (KMAMC), a subsidiary of Kotak Mahindra Bank, is the asset manager for Kotak
Mahindra Mutual Fund (KMMF). KMMF manages funds in excess of Rs 25,628 crore and
offers schemes catering to investors with varying risk-return profiles. It was the first fund
house in the country to launch a dedicated gild scheme investing only in government
securities.

Kotak Mahindra Old Mutual Life Insurance Limited: Kotak Mahindra Old Mutual Life
Insurance Limited is a joint venture between Kotak Mahindra Bank Ltd. and Old Mutual plc.
Kotak Life Insurance helps customers to take important financial decisions at every stage in
life by offering them a wide range of innovative life insurance products, to make them
financially independent.

Kotak's International Business: With a presence outside India since 1994, the international
subsidiaries of Kotak Mahindra Bank Ltd. operating through offices in London, New York,
Dubai, San Francisco, Singapore and Mauritius specialize in providing asset management
services to specialist overseas investors seeking to invest into India. The offerings are
differentiated India investment solutions that span all major asset classes including listed
equity, private equity and real estate. The subsidiaries also lead manage and underwrite
international issuances of securities. With its commendable track record, large presence on
the ground and a team of dedicated staff in India, Kotak’s International arm is suitably
positioned for managing assets in the Indian Capital markets.

GROUP MANAGEMENT:
Mr. Uday Kotak Executive Vice Chairman & Managing Director
Mr. C. Jayaram Director
Mr. Dipak Gupta Director

Corporate Identity:
The symbol of ka reflects our global Indian personality. The ka is uniquely Indian while its
curve forms the infinity sign, which is universal. One of the basic tenets of the economists is
that mans need are unlimited. The infinite ka symbolises that we have infinite number of
ways to meet those needs.

Fig. Kotak’s Corporate Identity.

INTRODUCTION OF KOTAK SECURITIES LTD.:

Kotak Securities Ltd. 100 % subsidiary of Kotak Mahindra Bank is one of the oldest and
largest broking firms in the Industry. The company was set up in 1994.

Kotak Securities offers include stock broking through the branch and Internet, Investments in
IPO, Mutual funds, Equity Shares and Portfolio Management Service.

Kotak Securities Accolades include:

 Finance Asia Award (2009)-Best Brokerage Firm In India.

 Best Brokerage Firm in India by Asia money in 2008, 2007 & 2006.
 Best Performing Equity Broker in India – CNBC Financial Advisor Awards 2008.
 Avaya Customer Responsiveness Awards (2007 & 2006) in Financial Services Sector.
 The Leading Equity House in India in Thomson Extel Surveys Awards for the year
2007.
 Euro money Award (2007 & 2006) - Best Provider of Portfolio Management:
Equities.
 Euro money Award (2005)-Best Equities House in India.
 Finance Asia Award (2005)-Best Broker in India.
 Finance Asia Award (2004)- India's best Equity House.
 Prime Ranking Award (2003-04)- Largest Distributor of IPO's, which include the
most successful issues like Maruti, ONGC, NTPC, TCS and many more.

It have been the first in providing many products and services which have now become
industry standards. Some of them are:

 Facility of Margin Finance to the customers.

 Investing in IPOs and Mutual Funds on the phone.
 SMS alerts before execution of depository transactions.
 Mobile application to track portfolios.
 AutoInvest - A systematic investing plan in Equities and Mutual funds.
 Provision of margin against securities automatically against shares in your Demat
account.

Kotak Securities have a full-fledged research division involved in Macro Economic studies,
Sectoral research and Company Specific Equity Research combined with a strong and well
networked sales force which helps deliver current and up to date market information and
news.
Kotak Securities is a corporate member of both The Bombay Stock Exchange (BSE) and The
National Stock Exchange (NSE) of India. It is also a depository participant with National
Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL)
providing dual benefit services wherein the investors can avail our brokerage services for
executing the transactions and the depository services for settling them. It processes more
than 4, 00,000 trades a day which is much higher even than some of the renowned
international brokers.

Its network spans over 331 cities with 870 outlets. Its employee strength extends beyond
2750

Kotak Securities Limited has Rs. 2599 crore of Assets Under Management (AUM) as of 30th
June, 2009. The portfolio Management Service provides top class service, catering to the high
end of the market. Portfolio Management from Kotak Securities comes as an answer to those
who would like to grow exponentially on the crest of the stock market, with the backing of an
expert.

Its operations include stock broking and distribution of various financial products - including
private and secondary placement of debt, equity and mutual funds. Currently, Kotak
Securities is one of the largest broking houses in India with wide geographical reach. The
company has four main areas of business:

(1) Institutional Equities,

(2) Retail (equities and other financial products),

(3) Portfolio Management and

(4) Depository Services.

 Institutional Business
This division primarily covers secondary market broking. It caters to the needs of
foreign and Indian institutional investors in Indian equities (both local shares and
GDRs). The division also incorporates a comprehensive research cell with sectoral
analysts who cover all the major areas of the Indian economy.
 Client Money Management
This division provides professional portfolio management services to high net-worth
individuals and corporate. Its expertise in research and stock broking gives the
company the right perspective from which to provide its clients with investment
advisory services.
 Retail distribution of financial products
Kotak Securities has a comprehensive retail distribution network, comprising 870
offices (own and franchisees) across 331 cities and towns, servicing 590,000
customers. This network is used for the distribution and placement of a range of
financial products that includes company fixed deposits, mutual funds, Initial Public
Offerings, secondary debt and equity and small savings schemes.
 Depository Services
Kotak Securities is a depository participant with the National Securities Depository
Limited and Central Depository Services (India) Limited for trading and settlement of
dematerialised shares. Since it is also in the broking business, investors who use its
depository services get a dual benefit. They are able to use its brokerage services to
execute transactions and its depository services to settle these.

Kotak Securities' width, volume and quality of offerings regularly earn it accolades
from industry monitors. In recent times, these have included:

 Asiamoney 2008 Brokers Poll: Kotak Securities was voted the Best Brokerage in
India and Sanjeev Prasad was ranked India’s Best Analyst by investors.
Kotak Institutional Equities:

Kotak Institutional Equities, among the top institutional brokers in India. It mainly covers
secondary market broking and the marketing of equity offerings, including IPOs, to domestic
and foreign institutional investors. Its full-fledged research division comprises 26 analysts
engaged in macro-economic studies, industry-and company-specific equity research.

Kotak Institutional Equities has full financial service capability, which includes derivatives,
facilitating market access through affiliates and the distinctive offering of corporate access to
investors. The division services over 250 clients including FIIs (Foreign Institutional
Investors), domestic institutions and mutual funds. The division has sales desks in Mumbai,
London and New York, with the India desk also servicing clients in Hong Kong, Singapore,
Japan and Australia.

Board of Directors of Kotak Securities Ltd.:

Chairman: Mr. Uday Kotak.

Managing Director: Mr. Narayan S.A.

Directors: Mr. C. Jayaram

Mrs. Falguni Nayar.

Mr. Vikram Sud.

Executive Director & Chief operating Officer: Mr. D. Kannan

Kotak Securities Products its features:

Kotak Securities offers you a range of products and services to meet your
investing needs. Whether you are a savvy investor or just getting started, you would find our
services just right to meet your specific needs.

Kotak Gateway Account:

If you are new to do trading, open a Kotak Gateway Account with Kotak Securities. It’s a
basic account that always you to do trading over the Internet and phone. Offering ease and
convenience, Kotak Gateway Account allows you to make smart investments through its
research-based assistance.
You can activate Kotak Gateway Account with any amount between Rs 20,000 to 5, 00,000/-
as margin, by way of Cash/Demand Draft.

With Kotak Gateway account you can avail of the following:

 4 times exposure on the margin.

 Exposure of up to 12 times your initial margin on select stocks with Super Multiple.
 Access to K.E.A.T Desktop.
  Research Reports on companies, industries and sectors for making informed
investment decisions.
 Research Advice via SMS.
 Call and Trade facility.
 Free news and updates on the markets.
 Access to 14 top-performing mutual funds through Easy Mutual Fund.
 Now, you can trade Currency Derivatives as well through your Kotak Gateway
Account.

Special service charges:

 Access K.E.A.T Desktop free of cost and K.E.A.T. Premium for Rs. 500/- per month.
 Get Kotak Securities SMS Alerts @ Rs. 100/- per month.
 Call & Trade free for first 20 calls. From the 21st call, you pay Rs. 20/- per call.
 Margin finance at 20% p.a.

Kotak Privilege Circle:

Why stop at anything when you can potentially do so much more with your money. Open a
Kotak Privilege Circle Account – make more, make most, with all our premium services
readily available for you.
You can activate a KPC Account any amount more than Rs. 10, 00,000/- as margin, by way
of cash or stock.

In the Kotak Privilege Circle you can avail of the following:

 6 times exposure on the margin

 Exposure of up to 12 times your initial margin on select stocks with Super Multiple.
 Access to K.E.A.T Premium.
 Assistance in terms of Research Reports on companies, industries and sectors for
making informed investment decisions.
 Research Advice via SMS.
 Call & Trade facility.
 Lowest delayed payment interest.
 Margin finance at attractive rates.
 Dedicated KPC customer service desk available for assisting right from opening the
account to handling day-today problems.
 Assistance from Relationship Managers for taking care of all your investment needs.
 Free news updates from the market.
 Access to Easy IPO and 14 top-performing mutual funds through Easy Mutual Funds.
 Now, you can trade Currency Derivatives as well through your Kotak Privilege Circle
Account.

Special service charges

 Access K.E.A.T Premium absolutely free of cost.
 Unlimited Call & Trade - absolutely free.
*Conditions apply
Kotak Super Saver Account

If you are a regular trader in stock market and looking for good brokerage deals then we have
something that's just right for you.

Presenting "Kotak Super Saver" an internet based investment account with attractive Flat
Brokerage rate and a Low Margin. Here you get a brokerage rate as low as 0.45 % on
delivery and only 0.05% on square up which is irrespective of the size of order placed.

You just need to pay Rs. 2000 as advance fee once for the period of six months. The advance
fee is completely reversible on generating the brokerage above Rs. 2000 during the specified
period.

How does Super Saver Work?

When you open a Kotak Super Saver account you need to pay an advance fee to Kotak
Securities to get a better brokerage rate compared to the regular rates.
The advance fees you pay will be valid for tenure i.e. month of activation of account plus 6
months.
Once you start trading, you will be charged the discounted brokerage rate. At the end of the
given tenure in which you pay us brokerage there could be 3 scenarios.

You pay advance fees of Rs. 2000

Scenario 1: If the brokerage given by you is Rs. 1400 (which is less than Rs. 2000) there will
be no reversal. Advance fee will be reversed only if brokerage generated is more than Rs.
2000 at the end of the tenure.
Scenario 2: If the brokerage given by you is Rs. 2000 (which is equal to Rs. 2000). Advance
fee Rs. 2000 will be reversed, at the end of the tenure.
Scenario 3: If the brokerage given by you is Rs. 5000 (which is more than Rs. 2000).
Advance fee Rs. 2000 will be reversed, at the end of the tenure

After the reversal of the advance fee, if you wish to retain the account then you pay the
advance fee and continue trading.

Product Details:
 Advance Fees Rs. 2000
 Margin amount Rs. 1000
 Application Fees Rs. 500
 Exposure Up to 4 times
 Tenure 6 months (can be renewed)

 Brokerage
For Cash Segment
0.45% on Delivery transactions on both sides
0.05% on intraday transactions on both sides
 For Derivatives Segment
Future Settlement & Sq. off - 0.06% (Both sides)
Option Settlement & Sq. off - 2.5% / Rs.100 (Both sides) whichever is higher.
 Call n Trade First 20 calls free for a month (Rs.20/- per call from the 21st call)
 Sms/Keat Premium
SMS- Rs. 100 per month/quarter,
KEAT Premium –Rs 500 per month.
Keat Lite Free.
 Super Multiple facility available.

Advantages of Kotak Super Saver Account

 Reversible advance fees of Rs. 2000 against brokerage above Rs. 2000 in specified
period.
 Lower Brokerage Rates.
 Buy and sell stocks on phone using Call & Trade.
 Research advice via Kotak Securities SMS alerts, so you don't miss out any
important buying and selling opportunities.
 Kotak Securities Knowledge Centre that helps you learn more about stock markets
and investments.

Super Derivatives

Super Derivatives is a product specially designed for investors who are averse to taking risks
and trade high volumes in futures and options.

Advantages of investing in Derivatives

 Get larger exposure on margin money which helps manage your money better &
gives you an option to take larger positions if needed.
 Use it as a hedging tool to curb your losses on delivery positions.
 Investment combinations using derivatives can be used to be protected from volatile
& uncertain situations. Thus reducing risks.
 Using derivatives you can take positions where losses can be limited.

Benefits of Kotak Super Derivatives

  Combination of Technical and Derivative Analysis: We believe that Technical and
Derivative analysis are different fields of research and hence we have dedicated
teams for both. Independent analysis of both are done and then combined to give
excellent results.
 State of the art Dealing Desk: We have one of the best systems in the industry to
evaluate and analyze the derivatives market. Our information sources and
interpretation of the market movements gives our customers the edge over other
market players.
 Access to both Dealers and Experts: Get access to both dealers and experts. Speak
 to them directly via phone/chat at pre-designated timings. This gives you the
opportunity to know the rationale behind a particular position or strategy at all times,
identify opportunities and know details on market movements etc.
 Focused Account: Since the account mainly focuses on derivative investments there
is better management of funds. Your margins against positions, Mark to Market fund
utilization, are all simpler to understand. There is also a better implementation of
strategies.
 No wastage of time on analyzing data: Save yourself from analyzing various
parameters of derivative data. Our team will do this for you and present it in the
form of opportunities for trading.
 Advanced rebalancing tools: You may have existing positions which may require
hedging; you may have positions which might be out of the money. Our experts can
devise strategies which will rebalance your positions and portfolio to reduce the risk
and better chances of gains.

Advanced derivative strategies: The biggest benefit of Super Derivatives is that you
will be able to use advanced strategies. Our experts will suggest strategies on your positions
where the risk return ratio is much lower.

Account Details
Account opening Charges Nil
Minimum Cash Margin / Stock Margin 25 lakh
Derivative brokerage Futures 0.05% both sides
Derivative brokerage Options 0.05% or Rs 150 per contract
whichever is higher (both sides)
Delivery Brokerage 0.45%

AutoInvest
Presenting AutoInvest - an Online Trading Account based on Systematic Investment
Planning, in Gold ETFs (Exchange Traded Funds), Equities and Mutual Funds. Assistance
in investments, coupled with Systematic Investing, truly makes this product a very good
option for investors.

AutoInvest provides a combination of Gold ETFs, Stocks and Mutual Funds recommended
by our Advisors, depending on an investor's risk appetite and investment view.

AutoInvest is unique from a general SIP in a way that it assesses the risk profile and
investment objectives of the investor, an important practice that Mutual Funds fail to carry.
We offer 4 distinct Investment Portfolios based on your risk taking ability.

How AutoInvest will work?

Step 1. Our relationship manager will suggest an Investment plan based on your Risk
 profile.
Step 2. You need to transfer a fixed amount monthly to your Kotak Securities account.
Step 3. Complete assistance to invest your Money according to the Gold ETF, Stock, MF
prescribed for your profile.
This will be done periodically every month.

Benefits Of AutoInvest
 SIP Styled Investments.
 Diversified investment with Compounding effect.
 Option to Invest In Gold ETFs.
 Option to purchase Gold Bars/Coins at the time of redemption of Gold ETFs.
 Wide Array of Portfolio Selections.
 The Investor holds his stocks in a Demat Account unlike Mutual Funds.
 Investment amount starts as low as Rs. 5000.

Portfolio Management Service

Investing in equities requires time, knowledge and constant monitoring of the market. For
those who need an expert to help to manage their investments, portfolio management service
(PMS) comes as an answer.

The business of portfolio management has never been an easy one. Juggling the limited
choices at hand with the twin requirements of adequate safety and sizeable returns is a task
fraught with complexities.

Given the unpredictable nature of the market it requires solid experience and strong research
to make the right decision. In the end it boils down to make the right move in the right
direction at the right time. That’s where the expert comes in.

About Kotak Securities Portfolio Management.

Kotak Securities is one of India’s oldest portfolio management companies with over a decade
of experience. It is also one of the largest, with Assets Under Management of over Rs. 3300
Crores. Kotak Portfolio Management comes as an answer to those who would like to grow
exponentially on the crest of stock market, with backing of an expert.

We, at Kotak, measure our success through the success of our clients. Whatever be your
requirement, we will tailor your portfolio to your specific investment need.

At the very base of a financially sound portfolio lies the identification of one’s investment
objective. We help you identify your investment objectives and also outline important
requirements like liquidity, capital appreciation, current income, time span and fiscal
implications and then suggest an appropriate scheme.

How do you benefit from our Portfolio Management Service?

An Investment Relationship Manager will ensure that you receive all the services related to
your investment needs.
A dedicated website and a customer service desk allow you to keep a tab on your portfolio’s
performance.
Your portfolio is tailored after a thorough research backed by the expertise from the Kotak
Securities Research team.
An experienced team of portfolio managers ensure your portfolio is tracked, monitored and
optimised at all times.
The personalised service also translates into zero paper work and all your financial
statements will be e-mailed.

Products: We have a product for every investment need and period.

Following are the offerings:

 BEP – Large cap focus portfolio.

 GEMS Portfolio
 Origin
 Invest guard Portfolio.
 Core Portfolio.
 NRI

Non Discretionary Portfolio Management Service (NDPMS)

When you invest your hard earned money, it is imperative to know all about your
investments. Take a step forward towards Informed Investments, with Kotak Securities Non
Discretionary Portfolio Management Service (NDPMS) - a consultative and transparent
method of investing. With NDPMS you are always consulted and informed of all investment
decisions, thus giving you total control of your portfolio.

How you benefit with NDPMS:

Transparency:
At most times the rationale behind your investments is a matter of concern. With NDPMS our
Portfolio Managers will always keep you apprised of the reason behind investment decisions,
plus you are always kept up-to-date on the allocation and distribution of your funds.

Scientific Investment Decisions:

NDPMS provides a scientific and disciplined basis for investing. Besides you have the
flexibility of making investment decisions after speaking to our Research Team.

Expertise:
Traditional investment options do not provide a team of dedicated investment consultants.
NDPMS will provide you exclusive access to the Research Desk and their Proprietary
Research Reports.
 Learn while
The Consulta
nuances, und

Convenience
View all your
filing.

The NDPM
 A 12
 Speci
 Emph
 Activ

So if you hav

BROKERAGE STRUCTURE:
BROKERAGE STRUCTURE
Delivery

< 1lakh 0.59% Gateway A/C

1 - 5 lakh 0.55%
5 - 10 lakh 0.45%
10 - 20 lakh 0.36%
20 - 60 lakh 0.27%
60 lakh - 2 crore 0.23%
> 2 crore 0.18% Privilege A/C

Intraday brokerages

< 25 lakhs 0.06% both sides Gateway A/C

25 lakhs - 2 crores 0.05% both sides
2 crores - 5 crores 0.04% both sides
> 5 crores 0.03% both sides Privilege A/C

Futures
 Intraday
Settlement
brokerages
< 2 crores 0.07% both sides 0.09% both sides Gateway A/C
2 - 5.5 crores 0.045% both sides 0.073% both sides
5.5 - 10 crores 0.036% both sides 0.046% both sides
10 - 25 crores 0.027% both sides 0.046% both sides Privilege A/C
> 25 crores 0.023% both sides 0.032% both sides
Options

Monthly Minimum Minimum

Intraday Settlement
Premium Brokerage Per Brokerage Per Lot
Brokerage% Brokerage%
Volume Lot (Intraday) (Settlement)
Upto 4Lacs 2.5 2.5 100 100 Gateway
4Lacs-11Lacs 2.25 2.5 100 100
11Lacs-
1.8 2.3 100 100
20Lacs
20Lacs-
1.35 2.3 80 100 Privilege
50Lacs
> 50Lacs 1.15 1.6 70 100

Here Premium Volume is considered as (Premium x Lot Size x No. of Lots). As per this new
structure you will be charged either a fixed minimum brokerage per lot or the new brokerage
rate based on the monthly premium value slabs you achieve, whichever is higher. Kindly note
that this new brokerage structure for option contracts will be applicable with effect from 23rd
February 2007.

Note: Service Tax of 10.2% of brokerage will be charged in addition.

The brokerages charged are as per the volumes that are achieved. Based on these volumes a
client can be either debited or credited an amount which is as per the volumes he/she may
achieve at the end of the month.

Securities Transaction Tax (STT) @ 0.1% of turnover will be charged in addition to the
brokerage on all delivery trades

STT @ 0.02% of turnover will be charged in addition to the brokerage on sell leg of all non
delivery trades in the cash market

STT @ 0.0133% of turnover will be charged in addition to the brokerage on sell leg of all
non delivery trades in the derivative market.

Salient Features Offered by Kotak Securities for its' investors:

K.E.A.T. Kotak E-trading Access Terminal is the live terminal on your
desktop. Wherever you go, with you always. With K.E.A.T. you
get live tick-by-tick updated rates.

Research & Advice To assist you in your investment and trading, our team of experts
and professionals give you research reports on companies,
industries and sectors for making informed investment decisions
research inputs and valuable recommendations.

SMS Alerts Get Free SMS alerts delivered to your mobile phone. This way
you can be in touch with market wherever you are.

Call and Trade Call and Trade enables you to while or the move. Make a call
from where ever you are and get your market on your phone.

Portfolio Advice Get Free Portfolio Advice and constantly monitor the value of
your portfolio with inputs from our expert advisor.

Margin Trading To help you invest in your dream stocks, we offer you margin
Trading Facility.

Easy IPOs With you easy IPO service, you can now apply for IPOs at a
click of a button. You can even place your bid over the phone.
Which means, no more hassles of standing in long queues and
tedious paperwork.

Easy Mutual Funds Easy Mutual Funds is a one stop-shop for multiple mutual funds.
All you have to do is log on our website or simply call us and
invest in the Mutual Fund of your choice.

Easy Payment Kotak Securities, in collaboration with HDFC bank, UTI Bank,
ICICI Bank, Citi Bank and Kotak Mahindra Bank provides
online payment facility. You can make and receive you payment
directly to your bank account. Therefore, no hassle of going to
the bank and stand in long queues, also hassle free transaction of
your money at any time form anywhere across the globe.

LEADING THROUGH RESEARCH

Kotak Securities has a strong research team that is involved in macroeconomic studies, and
industry & company specific equity research. Our research constantly helps investors take
informed investment decisions.
KOTAK RESEARCH PRODUCTS:

Market Morning: A daily dose of vital market information with concise technical review of
the index along with technical support and resistance of the select stock.

Daily Morning Brief: The Daily Morning Brief features economy and corporate news
enabling buy/sell calls based on the company fundamentals. It also lists bulk deals, Nifty
gainers and losers and forthcoming corporate events.

Stock Ideas: A detailed report based on company fundamentals covering research team
analysis of several pick of the companies, which are primarily strong and offer high returns.

Sector Reports: The research team regularly studies various factors, which could impact a
particular sector. It provides a list of all stocks / companies which could either be affected
positively or negatively and give recommendations on the same.

Weekly Technical Analysis: A definitive tool that besides summarizing the calls for the
week.

Monthly Research Reports: A consolidated report of all the research calls \ given during the
month with insights that enable wise financial decisions in a time bound manner.

SMS Alerts: Critical information on the move. Get FREE SMS Alerts delivered to your
mobile phone and stay in touch with the market wherever you are.

SHARES: At Kotak Securities we enhance every opportunity and stretch every possibility in
the equity market for right investment decision based on our in-depth research studies.

DERIVATIVES: Constant risks have stimulated market participants to manage their risks
through various risk management tools. Derivatives product is one such risk management
tool. We will offer you insights into the world of derivatives enabling you to cope with
market volatility.

MUTUAL FUNDS: Kotak Securities offers wealth of mutual fund choices along with
competitive research and advice to help you invest wisely. The investors also have the option
of choosing from some of the best mutual fund options available as we have a tie-up with
most of the leading mutual fund companies in the country.

IPOs: Kotak securities enable you to invest wisely in the potential and lucrative IPOs with all
the ease.

MARGIN TRADING: Kotak Securities enables not just stock trading but also gaining
through it. To help you invest in your dream stock we offer margin-trading facility. We bring
up to 50% of the margin.

Kotak Securities Services:

Training in Shares
Kotak securities offer investors various options while trading in shares.
Delivery Basis
This is a delivery based trading system, which is generally done with the intention of taking
delivery of shares. A case position is meant to be settled by delivery, the required cash or
securities are blocked in full.

For example: If a person place an order to buy 100 shares of Kotak Mahindra Bank, he need
to have 100% of the order value in his available limit/funds, and in case he wishes to sell 100
shares of Kotak Mahindra Bank, he need to have 100% shares in his Demat balance.
Kotak sec. gives the facility of up to 6 times limits against the margin.

Intra Day Trading

Through super multiple offer investors can do an intraday trading 15 times against this
available funds, where in they take long buy /short sell positions in stocks within the intention
of squaring off the position within the same day settlement cycle. Super multiple offers will
give a much against their limit.

BNST-G (Buy now sell tomorrow)

Buy now sell tomorrow (BNST-G) is a facility that allows investors of sell shares even on 2 nd
day after the buy order date, within having to wait for the receipt of shares in to the Demat
account. It is an intermediate option between cash and margin trading sometimes people miss
huge profits because they have purchased shares one day back and the shares have not been
credited to their Demat.

For Example: Assume that a person buys shares of XYZ ltd. at 10:30 a.m. today suppose at
3:00 p.m. today. The price of this script has risen by Rs. 10. But he wants to sell these shares
tomorrow because he feels that the script price will rise further. But the shares would not
have come into your Demat Account tomorrow. BNST-G is the solution to this problem. If he
uses margin funding, he would gain only to the extent of the price rise that happens today i.e.
Rs. 10. However, if he wishes to take advantage of the price rise over a longer times period
he would purchased the share today at 10:30 a.m. and sell it say tomorrow using BNST-G at
3:00 pm. In short, BNST-G helps non intraday square off trading too profitable. BNST-G
gives 2 more trading days, thereby increasing the perfectibility of better returns. So even a
cash trader may like to use BNST-G.

Kotak Securities Advantages:

Convenience:
Through these services investors can trade on a chair, he can buy and sell shares self without
depending on any broker. In this service any cheque or paper are not required.

Speed:
One can get the latest quotes of scrip’s on KotakSecurities.com and place an order almost
instantly.
KEAT Software provides the best Terminal for the investors. With the help of KEAT
investor get profile of any company and see sensex, share prices, nifty and up and down
market position.
KEAT is a dynamic, trading terminal that facilities instant order placement and more.

Things you can do with KEAT –

 Live ticker rates.
 Speedy transactions.
 Script alerts.
 Customize watch list.
 View status of orders.
 Intraday alerts and exchange messages.
 Trade report, net position report, exercise report.
 Company research.

Satisfaction: With Kotak investors satisfy within its services. They care transfer of funds
from trading account to their saving account within only 30 seconds and withdrawal by
ATMs.

Kotak comes from KMG, the organization trusted by millions of Indians.

Centralized Risk Management:

At Kotak Securities Risk Management means state of the art quality management that seeks
to generate, not constrain. Our Risk Management Team comprises 30 members who have
implemented systems in different areas and structured the Risk Management Cell primarily
managing online risk, Market risk and Operational risk.

Centralized Back Office:

To handle large operations an efficient back office is essential. While most broking firms
worked with decentralized back office, we were the ones to set a trend of a centralized back
office. Today, we have a dedicated centralized back office in Mumbai, which has a work
force of over 500 dedicated people.

Robust Direct Sales Force:

Our strong and well-networked direct sales force is available you to sound investment
solutions in an ever changing market environment.

Dedicated Customer Service desk:

In order to assist you in every step of investing. They have a dedicated customer service
desk, ready to answer all your investment related queries.

Leading Edge Technology:

Technology is decisive in raising the competence level in the business of broking. With a
robust and scalable technology platform Kotak Securities has succeeded in managing
customers and their needs.

DEMAT SERVICE:
A Demat account is like a bank account of securities instead of money. In this accounts shares
are transferred in paperless dematerialized electronic form. It increases securities
transparency and control. A person can check the status and holdings of his securities without
visiting DP account.

Demat- Basic Concepts:

The Indian Capital Market has witnessed an unprecedented growth in the past few years
facilitated by modernization of the trading system. Automation of the trading infrastructure in
1994 has given us a trading system comparable with the best in the world. The establishment
of a settlement guarantees scheme has removed counterpart risk in trading.
Though the advent of automated trading brought with it several associated benefits as
transparency in trading and equal opportunity for market players all over the counts the
problems related to settlement of trades such as high instances of bad deliveries, delay in
transfer of ownership has continued. As an answer to settlement problems, National
Securities Depository Ltd. (NSDL) was inaugurated in November 1996 as the first depository
in the country. In a depository system, securities are held in securities account, which is more
or less similar to holding funds in bank accounts. Transfer of ownership is done through
simple account transfers. This method does away with all the risks and the hassles normally
associated with the paper work. Consequently, the account transacting in the deposit
environment is considerably lower as compared to transacting in certificates.

Dematerialization (Demat):
Dematerialization is the process of converting the securities held in physical form
(certificates) to an equivalent number of securities in electronic form and crediting the same
to the investor's Demat account. Dematerialized securities do not have any certificate
numbers or distinctive numbers and are deal only in quantity i.e. the securities are tangible.
Dematerialization of holdings is not mandatory. One can hold its securities either in Demat
form or in physical form. One can also keep part of its holdings (in the same scrip) in Demat
form & part in physical form. However, a select list of securities announced by SEBI can be
delivered only in Demat form in the stock exchanges connected to NSDL

Depository:
A Depository is like a bank where securities are held in electronic (dematerialized) form. In
India, there are two Depositories National Securities Depositories Limited (NSDL) and
Central Depository Services Limited (CDSL). Under the Depositories Act, investors can avail
of the services of the Depositories through Depository Participants (DP) such as ICICI Bank
DPs are like bank branches wherein shares in physical form need to be deposited for
converting the same to electronic (Demat) form.

Depository Participant:
Under the Depositories Act, investors can avail the services of the depositories through
Depository Participants (DPs) such as Kotak Securities Ltd. DPs are like bank branches
wherein shares in physical forms need to be deposited for converting the same to electronic
(Demat) form.

Market Transaction:
When securities are transferred from a beneficiary account of an investor to a clearing
member account of a broker for ensuring delivery of securities on a stock exchange, there it is
a market transaction.
Off-Market Transaction
When securities are transferred from the beneficiary account of one investor to that of
another, and the transaction does not get routed to the stock exchange, it is an off-market
transaction.

Pledge of Securities:
Beneficiary account holders who do not wish to sell their shares but are willing to avail
advances against dematted shares can take loans by marking pledge/lien against those shares.
There are always two parties involved under pledge, pledgor (borrower) and pledgee (lender).
There are certain set procedures that need to be followed.

Rematerialization:
Rematerialization is the process of converting the securities held in electronic form in a
Demat account to an equivalent number of securities in physical form (certificates) after
debiting the same from the Demat account.

Benefits Of the Demat:

In the depository system the ownership and transfer of securities takes place by means of
electronic book entries. At the outset, the system rids the capital market of the dangers related
to the handling of paper.

Several direct and indirect Benefits of Demat are:

 Elimination of bad deliveries: In the depository environment once holdings of

investor are dematerialized, the question of bad delivery does not arise i.e. they cannot
be held under objection. Statistically, in physical environment about 20% of the
delivered stock constitutes bad deliveries. Of these, about 1 % are ultimately absorbed
by the system as the bad delivery cost. Rectification of objection usually involves
extensive follow up by the investor. Also the investor cannot sell the securities till they
are registered.
This means that in the physical environment, every fifth person taking delivery of
stocks gets securities till they are registered.

 Elimination of all risks associated with physical securities: Dealing in physical

securities have associated security risks of theft of stocks, mutilation of certificates,
loss of certificates during movements through duplicate certificates and advertisements
etc. This problem does not arise in depository environment.

 No stamp duty required: There is no stamp duty for transfer of equity instruments
and units of mutual funds in the depository. In case of physical shares stamp duty of
0.5% is payable on transfer of shares.

 Immediate transfer and registration of securities: In the depository environment,

once the securities are credited to the investors account on the payout, he becomes the
legal owner of the securities. There is no need to send it to the company's registrar or
registration. Having purchased securities in the physical environment, the investor has
to send it to the company's registrar so that change of ownership can be registered. The
 process usually take's around three to four months and is rarely completed within the
statutory framework of two months thus exposing the investor to opportunity cost of
delay in transfer and to risk of loss in transit. To overcome this normally accepted
practice is to hold the securities in street names i.e. not to register the change of
ownership. However, if an investor misses a book closure the securities are not good
for delivery and the investor would also stand to lose his corporate entitlements.

 Faster settlement cycle: The exclusive Demat segment follow rolling settlement cycle
of t+2 that is the settlement of trades will be on the 3rd working day. This will enable
faster turnover stock and more liquidity with the investor.

 Faster disbursement of the non-cash corporate bonus etc: NSDL provides for
direct credit of non-cash corporate entitlements to an investor account, thereby
ensuring faster disbursement and avoiding of risk of certificate in transit.

 Reduction in rate of interest of loans granted: Some banks provide this benefit
against pledge of dematerialized securities a dematerialized securities eliminate the
following hassles/risks: getting securities registered in their name at the time of book
closure and risks of stocks coming under objections when they are sent to the
companies registrar for the registration if the pledgee defaults in payment.

 Periodic status report: This is provided to investors on their holdings and

transactions, leading to better controls.

Dematerialized securities can be delivered in the dematerialized or physical segment from

April 1998 at those stock exchanges where trading in dematerialized securities is allowed.
But physical securities are not allowed to be delivered in dematerialized segment held with
the investors more liquid that physical stocks the process of conversion of securities from
electronic to physical form.

Safety in Demat:

There are various checks and balances in the depository design to ensure of the investor
holdings. This includes:

 A depository can be operational only after registration of SEBI, which is based on the
recommendations from NSDL and their own independent evaluation. SEBI has
prescribed criteria for becoming a DP in the regulations.
 Depository accounts are allowed to affect any debit or credit to an account on the
basis of valid instruction from the client.
 Every day there is a system driven mandatory reconciliation between participants.
 There are periodic inspections into the activities of both DP and a RT agent by NSDL.
This also includes records based on which debits and credits are affected.
 The data interchange between NSDL and its business partners is protected by standard
protection measures.
 All the investors have right to receive an account statement periodically from the DP.
  Every month NSDL forwards statement of account to a random sample of investors as
a counter check.

Kotak Securities Ltd. Demat Services boasts of an ever-growing customer base of over 5
Lac account holders. In its continuous endeavour to offer best of the class services to its
customers it offers its customers with the following features:
 Online access to the Demat account. Check your holdings, transactions, and status of
requests and much more.
 Dedicated specially trained customer care executives at its call centre, to handle all
the client queries.
 Holding and Transaction details available round the clock on IVR (Interactive Voice
Response) system.
 With a countrywide network of over 200 branches, you are never far from a Kotak
Securities Demat Services outlet.
 You will find its service charges very competitive, offering the best value for your
money.
 You can also avail yourself of online share trading services from kotaksecurities.com
and go for a 3 in 1 account inclusive of a Demat, Trading and a Kotak Mahindra Bank
account.

What Kotak Securities Services will offer:

 Reduction in brokerage.
 Near-immediate ownership of securities on settlement leading to increased liquidity.
 Clarity in the title of ownership of securities at all times.
 Ready acceptance of securities for pledge and hypothecation.
 Easy receipt of public issue allotment.
 Quick receipt of corporate benefits like rights and bonus.

What Kotak Securities Ltd. Demat Services will take away:

 Bad deliveries caused by signature mismatch.

 Postal delays and loss of certificates in transit.
 Risks of forgery, counterfeiting and loss due to fire, theft or mutilation.
 Stamp duty (as against 0.5 % payable on physical shares).
 Filling up of transfer deeds.

How to open a Kotak Securities Ltd. Demat account:

Approach your nearest Kotak Securities Ltd. Branch.

Fill up the Demat Account Opening Form.

If your shares are held in joint names, be sure to open your account in the same order of
names. If A, Band C jointly hold 100 shares in the company and have three share certificates
all named as ABC, one DP account will suffice.
For different combinations of names, open separate accounts for each combination if the
three certificates are held as ABC, BAC and CBA, three accounts are required.

There is no limit to the number of accounts you can open.

You can even open a multiple-sign Depository Participant - Client Agreement, which each
investor must sign at the time of account opening.

You will receive an account number and a DP ID number with each account. Quote both
these in all future correspondence with Kotak Securities Ltd.

After opening the account, you can hold shares of any number of companies in your account,
provided all such companies have entered the depository system.

Submit a completely filled up Demat Request Form (DRF) in triplicate for each ISIN along
with defaced physical securities. Kotak Securities Ltd. provides you with one blank
Dematerialization Request Form (DRF). Additional forms are available at any of the Kotak
Securities Ltd. branches offering Demat Services.

Documents Required:
 Two passport size photographs.
 One Xerox of ID proof (PAN card, Passport etc).
 One Xerox of address proof (Driving License, Recent 2 months Bank statement etc.).
 One cancelled cheque.
 One cheque of margin amount + application fee.

Introduction to Project

I like to introduce my project as “Study on Perception of Potential Investors towards Stock

Market Investment”.

In this project, I tried to analyze the potential investor’s perception to invest in stock market.
I have prepared a questionnaire for getting more appropriate result. I have undergone a detailed
survey of direct investors. In this survey I have taken sample size of about 100 investors to know
about their investment profile and investment policies in different investment sectors.

Major concentration was on those investors who do not invest in the stock market. I have
noticed the trends of these investors that where they are interested to invest their savings.

There are several factors which influence the investment preferences of the investors like
higher return, lower risk, higher degree of certainty, easy investment and accordingly most of
the investors prefer to invest in insurance policies due to higher degree of certainty, some
invest in mutual funds due to lower risk and almost good return due to diversified investment
of money.

Those who lack in knowledge of capital market or do not understand the workings of capital
market prefer to invest in postal savings and fixed deposits.

On the basis of my analysis, I have tried to provide some solution and suggestion. I have also
mentioned the limitation of my project work.

Background to the Research Problem:

Stock market is considered as very much volatile in its nature. Therefore despite having good
savings most of the people do not attract towards making investment in share market. Not
only its volatility but lack of knowledge, complex decisions to make investment in shares and
higher risk are the other factors which contribute equally in the formation of very hard reason
which restricts the potential investors from making investment in this unstable capital market.

So it is very much important and necessary to analyze and understand the perception of
potential investor towards share market investment.

Objectives of Project:
1: Study of work done in Kotak Securities.
2: Investors awareness in stock market investment.
3: Finding the trend of perception for stock market investment.
Investor’s Preferences: An Overview.
Investment constraints are generally in terms of predetermined levels of liquidity
Tax savings, legal compliance, and Investment horizons. On the other hand are generally
imposed on the portfolio by the investor himself, such as a desire to invest at least 25% of the
total funds in sectors such as information technology or in the other areas at the other extreme
in government securities. The investment policy should be a fine blend of the goals with the
constraints and preferences.

To put it differently each investor has his/her own set of objectives and constraints.
While most of these are known only in qualitative terms, they will eventually lead to form
quantitative objectives and constraints by the investment manager which in turn from the
basis for the formulation of the optimal portfolio.

Investors have highly diverse objectives, constraints and preferences they do form
homogeneous groups each of which distinctly differ from the other.
Investors can be categorized into individual investors and institutional investors.
While most of what we discussed above in principle applies to both, the following differences
can be noticed.

Individual investors generally treat risk as ‘the possibilities of losing money’, or sometimes
even as ‘losing money’. Institutions are more technical, sophisticated and define risk clearly
as the standard deviations or in more general terms as the variability of the return.
Individual investors can be categorized based on psychological characteristics such as being
an introvert or extrovert, aggressive or conservative, confidant etc. Institutions, on the other
hand fit more readily in to a definition, based on the nature of their liabilities and the
requirements of their owners or beneficiaries in to pension funds provident funds insurance
companies, banks etc.

Investment policies of the investors can be laid down based on what the investor think is best
for them while often the investment policies of the institutions are determined to a significant
extent based on various legal requirements.
For example in India the government lays down the investment pattern of provident funds
and also insurance companies and the freedom available to portfolio managers while handling
the portfolio of these institutions is limited

Investment policies of the individuals generally become complex because they are subject to
taxes. Allocation of a significant portion of the portfolio to tax saving investments makes the
job of the portfolio manager much more difficult as the returns have to be brought up to the
desired level with the remaining funds.
Most of the major investment institutions are other hand exempt from tax.

Investors’ Goals

The investors have different goals under different market conditions. It is not sufficient to
decide about the investment motives but one has to cautiously watch the market conditions to
protect their goals.
In the recent years, investors have lost a lot of money worldwide due to the tech melt down.
Still investors hope to make money and their primary goal of investment is capital
appreciation. Considering the volatility of markets the question that arises “will capital
appreciation still be the primary goal of primary investors?” the capital appreciation is the
obvious answer for majority of the investors but one has to invest to earn a return on his
money in excess of the risk free rate considering the risk involved in investing stock market.
Above all returns should exceed the average return on a benchmark return; say sensex or S&P
500 to achieve investment goals.

The primary goal of capital appreciation does not arise if the investors do not preserve the
capital. Therefore, it can be said that capital preservation must be the primary goal of any
investor in comparison to capital appreciation. Many of the investors have lost money this
process, as they are only bothered about making money by beating the market without even
thinking of the survival of their portfolio.

Few have thought about capital preservation during the 1990s bull runs in the U.S. as people
could make returns of over hundred percent in a few months time. People started believing
that the only way the stock markets can move is upward. It is said that everything is fine in
the bull market. One may call it insane or irrationality but when reality sets in situations turns
worse when it enters a bear phase.

One key lesson is that market movement change but investors do not.
In spite of sophistication in research, technology, level of maturity in markets, the
fundamental analysis is glaringly insufficient in incorporating the behaviour of investors. It is
not that technical analysis is perfect in this area. Time after time analysts changed the per
share valuation without incorporating the behaviour of investors and traders.

Research Methodology:
1. Source of data.
2. Questionnaire design.
3. Interview Schedule.
4. Sampling
5. Analysis and Interpretation.

1. Source of data: For finding the reason behind perception of potential investors. I have
collected data from both the sources i.e. primary source and secondary source.

Primary Source:
Primary data has been collected by interacting with various persons.
Some of the investor’s contacts were given to me by company staffs, but most of being I
have covered through my friends contact, visiting different areas of Raipur covering
shopkeepers, malls and many others.

Secondary Source:
1: www.kotaksecurities.com
2: www.kotak.com
 3: Books
4: Brochures and forms of Kotak Securities.

2. Questionnaire design:
The questionnaire contained 12 questions helped me in collecting the relevant data for
my project. It includes close ended questions. In order to get the information through the
questionnaire, I adopted personal interview method also and it helped both the purpose of
getting the information, which was mentioned, in the questionnaire and some vital
additional information, which employees expressed while talking to me.

3. Interview Schedule: I used to schedule interviews for the contacts being referred to
me by office members and staffs. For some of the contacts, I have telephonically
interviewed because of lack of time. And rest of them were by personally visiting to
them. But most of the surveyed people are directly contacted by visiting them.

4. Sampling:
 Sampling procedure: The sample is selected in a random way, irrespective of them
being investor or not. It was collected through personal visits to the known and
unknown persons, by formal and informal talks and through filling up the
questionnaire prepared.
 Sample size: The sample size of my project is limited to 100 only.
 Sample design: Data has been presented with the help of column chart and pie charts.

5. Analysis and Interpretation: I had conducted survey of sample size 100.

Following are the analysis and interpretation for each questions of questionnaire.

Table shows the no. of potential investors knows about different financial instruments:-

Financial Instruments No. of respondent

Mutual funds 96
Insurance 100
Fixed Deposits 100
Post office Savings 100
Equity Shares 97
Others (Real Estate, 77
Property etc.)
Analysis
Interpretation: The sample size consists of 100 investors and out of which almost all the
people are aware of financial instruments like insurance, fixed deposits, equity shares and
mutual funds.

Table shows investors source of information about those financial instruments.

Source of Information No. of Respondents

Advertisements 57
(Television/Internet)
Company Sales Force 19
Friends/ Relatives/ 13
Colleagues
Magazines/Newspaper 11
Others 0

Analysis :
Interpretation : Above chart shows that out of 100 investors more than 50 % of investors
get informed about those financial instruments by advertisements in televisions and internet.
And rest of them were come to know by company sales force, friends/ relatives/ colleagues
and magazines/ newspaper.

Table shows investors more preferred financial instruments as per their investment
preference.

Financial Instruments Prefered Rating

Mutual Funds 19
Insurance 21
Fixed Deposits 44
Post Office Savings 8
Equity Shares 13

Analysis Shows the investors rating acc. to their preference for different financial
instruments.
Interpretation : Out of 100 investors 44% of investors prefered fixed deposits, and the
rest prefered insurance with 21%, mutual with 19%, equity shares with 13% and post office
savings with 8%.

Table shows investors opinion for factor considered in doing investment.

Factors No. of Respondent

Return 44
Tax Saving 7
Liquidity 4
Regular Income Flow 9
Safety 23
Risk 13
Analysis :

Interpretation : Out of 100 investors, most are of the opinion that return and safety are the
main reasons behind their investment decisions.

Table shows investor’s opinion for their % of savings wants to invest .

% of savings No. of investors

>50 20
30 – 50 35
15 – 30 34
<15 11

Analysis :
Interpretation: Most of the investors surveyed were mostly those who invest 30% to 50 % of
their money in these instruments.

Table shows the investment horizon of the investors.

Investment Horizon No. of respondent
Less than 6 months 7
6 months – 1 year 10
1 year – 3 year 15
More than 3 year 68

Analysis:
Interpretation: Out of 100 investors mostly were of the view that they invest their money
for more than 3 years. And the rest of them choose for less than 3 years of period.

Table shows the expected return from any financial instrument.

Expected Return No. of Respondent

10% - 20 % 54
20% - 30% 23
30% - 50% 18
More than 50 % 5

Analysis :
Interpretation : Out of 100 investors most of them expects 10% -20% of return of their
investments while rest of them expects more than 10% - 20%.

Table shows the risk profile of the investors :

Risk Profile No. of investors

High risk-high return 34
Medium Risk-Medium 55
Return.
Low Risk-Low Return. 11
Analysis :

Interpretation : The above chart shows that 55% investors want medium risk-medium
return. 33%wants high risk-high return and rest 12% of them wants low risk-low return.

Table shows that if investors opinion to invest in share market.

Investors Opinion No. of respondent

Yes 38
No 62

Analysis :
Interpretation : The above result shows that 62% of people does not want to invest in
share market, while 38% wants to invest in share market.

Table shows the factors affecting most for not to invest in share market:
Here the sample size is 62

Affecting Factor No. of respondents Percentage

Lack of Knowledge 22 35%
High Risk 24 39%
Uncertainity 11 18%
Other factors 5 8%
Analysis :

Interpretation : Out of 62 investors, most of them donot want to invest due to high risk
and lack of knowledge. While rest of them donot want to invest due to uncertainity and other
factors.

Table shows the investors opinion to overcome lack of knowledge ground.

Here the sample size is 62

Investors Opinion No. of respondents Percentage

Yes 37 60%
No 14 23%
Can’t say 11 17%

Analysis :
Interpretation : Out of 62 investors, 60% of investors wants to overcome lack of
knowledge ground, 23% donot wants to overcome lack of knowledge ground and 17% of
investors can’t say anything about overcoming lack of knowledge ground.

Table shows the satisfaction level of their present investment decision.

Here sample size is 100.

Level of satisfaction No. of respondent

Highly Satisfied 15
Satisfied 20
Less Satisfied 39
No Satisfaction 26
Analysis:

Interpretation: The above result shows that 39% of investors are less satisfied with
present investment decision, 26% of investors are not satisfied, 20% of investors are satisfied
while 15% of investors are highly satisfied.

Findings of survey:

In this survey, I have come across different persons of different professions who invest
differently in different investment schemes according to the limits of investment from their
savings. But the main aspect that came in front of me was that all the investors have one thing
common in their mind, it is as follows

“LOWEST RISK FACTOR AND HIGHEST RETURN”

But according to the business policy of different schemes of various companies it is very
obvious that where there is low risk there is most probably the low return. In case of stock
markets the common investor (investor lacking the knowledge of stock market) feels that
stock market is a risky field to get-in due to the high degree of uncertainty in these markets.

So due to this uncertainty factor I asked the investors that what if some experts assist them to
overcome this lack of knowledge ground? And the result was – most of the investors agreed
with this assistance plan.

Suggestions:

I have surveyed at many places and different persons who can invest in share markets but
presently does not invest in these equity share market due to some above mentioned reasons.
My major constraint was on these types of people who can be the customers of “KOTAK
SECURITIES” in near future as they might invest in stock markets after overcoming the
above mentioned problems.
The following are the suggestions that can be used to convert the prospective customer into
permanent customer of the company.

1) The customer should be educated about the stock market to overcome his fear of
uncertainty in these markets.
2) The customer must be assured of expert advice in case of market fluctuations.
3) The customer should be educated about the benefits of investment in stock markets
over other investment schemes.
4) Regular customer meets should be arranged to know the satisfaction level of the
customers.

Conclusion:

This project is based on a survey of prospective investors who can invest in stock markets but
presently does not invest in these markets. There are many reasons for such investors not to
invest in stock market. The main reasons for the customer not to invest in stock markets are –

 High risk
 High uncertainty
 Lack of knowledge
 High rate of fluctuations
These are the reasons why investors hesitates to invest in stock markets but there are some
suggestions provided in this project through which these hesitations of the customers can be
overcome, so that they can easily invest in stock markets by the assistance of experts of these
markets.

LIMITATIONS:

Although full efforts have been made in the study but the following limitations should be
kept in the mind before making any conclusion:

1: Shortage of time.
2: The sample size is a limitation in this report as I only considered 100 investors, which is
not representative of the whole city.
3: More over our research depends on the behaviour of the respondents. So it can also vary
from person to person

Achievements:
In this project, I have also been taught
 How to open Demat accounts?
 How to make Sub broker for primary market (i.e. for IPO’s, mutual funds etc)? and
 How to make Sub broker/Franchisee for secondary market?

So along with this project work, my achievements are:

 2 Demat accounts opened.
 5 sub brokers for primary market. and
 1 sub broker for secondary market is not yet final, but under processing.

Bibliography:
www.kotak.com : About company profile.
www.kotaksecurities.com : About company profile.
http://demataccount.com : About Demat account.
www.amfiindia.com : For primary market sub broker’s information.
www.google.com : About Demat Services.
http://en.wikipedia.org/wiki/Demat_account :

References:
C.R. Kothari, Research Methodology, “Sampling Techniques”.
ANNEXURE:
Questionnaire

Name:
Age:
Occupation:
Contact No:

Q –1.Do you know about the following financial instruments?

a) Mutual Fund Yes No
b) Insurance Yes No
c) Fixed Deposits Yes No
d) Post Office Savings Yes No
e) Equity Share Yes No
f) If any other please specify................................

Q–2.How do you get information about these financial instruments?

a) Advertisement
b) Company sales force
c) Friends/ Relatives / Colleagues
d) Magazines/Newspaper.
e) If any other please specify....................................

Q–3.Please rate the financial instruments as per your preference....

Financial Instruments More Preferred

Mutual Fund
Insurance
Fixed Deposits
Post Office Savings
Equity Shares

Q–4.What is the factor which you consider while investing in any financial instrument?
a) Return (Capital Appreciation)
b) Tax Saving
c) Liquidity
d) Regular Income Flow
e) Safety
f) Risk

Q–5.How much % of savings you wants to invest?

a) >50 %
b) 30 % - 50 %
c) 15 % - 30 %
d) < 15 %

Q–6.How long you prefer to keep your money in any financial instrument?
a) Less than 6 months.
b) 6 months – 1 year
c) 1 year – 3 year
d) More than 3 year
Q-7.How much returns you expect from any financial instrument?
a) 10 % to 20 %
b) 20 % to 30 %
c) 30 % to 50 %
d) More than 50 %

Q-8.As per your view on Risk, which option will you prefer to be better for you?
a) High Risk-High return.
b) Medium Risk-Medium Return.
c) Low Risk-Low Return.

Q–9.Do you want to invest your money in share market?

a) Yes
b) No

Q–10.If No, then what are the factors affecting you most for not to invest in share
market?
a) Lack of knowledge
b) High Risk
c) Uncertainty
d) Other factors

Q–11.What you think if some experts assist you to overcome this lack of knowledge
ground?
a) Yes b) No c) Can’t say.

Q–12.Are you currently satisfied with your investment decision. Please rate.
a) Highly satisfied.
b) Satisfied
c) Less satisfied.
d) No satisfaction.