SHAREKHAN

Your guide to financial jungle

 Project report
On
Awareness of online Trading&
Comparative analysis

Submitted by
Sunil Dhankhar
Roll no.0810155
HSB HISAR (HR)
INDIA
 Content
• Acknowledgement
• Summary
• Project objective
• Company profile
• Headquarter in india
• Service provided by company
• Documentary procedure
• Comparative analysis
• Conclusion
• Questionnaire
 Acknowledgement

• I express my deepest and most sincere thanks to

(Faculty Guide) and all my teachers of INCs who
provided me their valuable time and information. The
OJT and Project could not be possible without their able
support and guidance. It was a great opportunity for me
to work with Sharekhan, pioneers in the field of online
trading and the retail broking arm of SSKI Investors Pvt.
Ltd. I am extremely grateful to those who have shared
their expertise and knowledge with us and without whom
the completion of this project would have been virtually
impossible.
 Summary
• This research is based on the awareness of
online share trading and comparative analysis of
Sharekhan with other broking houses and study
of Future of Online Share Trading in India. It’s
totally based on realistic approach towards the
online share-trading scenario in India.
• In the first phase I covered some other stock
broking companies as compared to Sharekhan. I
examined thoroughly areas such as number of
players, technology they are offering their
customer base their products and offerings and
how they market their products
 Project Objective
• Main objective of this project is to increase the interest
rate and knowledge level of people about online share
trading. So this course is divided in to two parts:-
• Gathering data about the leading online broking houses
and compare the main points and find the strengths of
Sharekhan compared to them.
• Conducting Market Research in various parts of the city
in order to get response of customer to know that they
are willing or not in online share trading. If no, why they
are thinking such type thing .contact to the customer by
calling or personally if he is agree and invite that
customer for share trading
 Company profile
• COMPANY PROFILE
• Sharekhan Ltd.
• Share khan is the retail broking arm of SSKI, an organization with more than
eight decades of trust & credibility in the stock market. It is India's leading
retail financial Services Company with We have over 250 share shops
across 115 cities in India. While our size and strong balance sheet allow us
to provide you with varied products and services at very attractive prices,
our over 750 Client Relationship Managers are dedicated to serving your
unique needs.Sharekhan is lead by a highly regarded management team
that has invested crores of rupees into a world class Infrastructure that
provides our clients with real-time service & 24/7 access to all information
and products.. This powerful technology complemented by our
knowledgeable and customer focused Relationship Managers. We are
Creating a world of Smart Investor.Sharekhan offers a full range of financial
services and products ranging from Equities to Derivatives enhance your
wealth and hence, achieve your financial goals.Sharekhan' Client
Relationship Managers are available to you to help with your financial
planning and investment needs. To provide the highest possible quality of
service, Sharekhan provides full access to all our products and services
through multi-channels.
 Background of company
• Sharekhan is one leading company in
retail brokerage,
• The site of sharekhan is launched by 8 feb
2000 by name www.sharekhan.com,
• Site is register 1 lakh customer,
• 17 apr 2002 sharekhan launched speed
trade,
Service provided by company
 Documentary procedure
• DOCUMENTS:-

• (A) 2 Passport size photograph

• (B) Copy of Pan Card (mandatory)
• (C)For Identification Proof-
VOTER ID CARD
OR
DRIVING LICENCE
OR
PASSPORT
OR
PAN CARD
(ANY ONE)
(D) FOR RESIDENCE PROOF-
• RATION CARD
OR
• LATEST BANK STATEMENT
OR
VOTER ID CARD
OR
DRIVING LICENCE
OR
PASSPORT
OR
TELEPHONE BILL STATEMENT (Latest bill within two month)
OR
ELECTRICITY BILL STATEMENT (Latest bill within two month)
(ANY ONE)
• (E) A canceled cheque
• (F) Bank Statement (if cheque not personalized)
• g) Company id
 Comparative analysis
• The major players in online trading
•
• •ShareKhan.
• •5paisa.com
• •KotakStreet.
• •IndiaBulls.
• •Icici Direct.com
 5 paisa.com
Indiainfoline was founded in 1995 and was positioned as a research firm. In 2000 e-broking was started under the

brand name of 5 paisa.com. Apart from offering online trading in stock market the company offers mutual funds
online. It also acts as a distributor of various financial services i.e. GOI securities, Company Fixed Deposits,

Insurance. It has a limited ground network, present in 20 Cities

• Online Account Types • Problems Of 5 Paisa
• •Investor Terminal: Investors / Students •
• •Trader Terminal: Day Traders / HNI’s • •Downtime
• PRICING FOR RETAIL CLIENTS • Recent past 5 paisa Trader Terminal (T.T) is
• Investor Terminal:- experiencing high frequency downtime between
• 3 – 3:30 p.m due to server load (as their T.T is
•Account Opening: Rs 500 feature heavy compared to Speedtrade charting)
• •Demat 1st Yr: Rs 250 • •Manual Accounting
• •Initial Margin: Rs 2500(Compulsory) • The 5 paisa accounting system is manual, Online
• •Min Margin Retainable: Rs 1000 fund transfer through bank is not credited instantly.
• •Brokerage: Limit is provided EOD for shares sold from DP, or
• Trading 0.10% each side + ST call Similarly limit released for shares sold under
• BTST is manual Delay in receiving pay-out of clear
Delivery 0.50% each side + STPRICING funds from trading to Bank Account.
FOR HNI CLIENTS
• •Min Account Balance
• Trader Terminal
• Concept of Min Rs1,000 is to be maintained in form
• •Account Opening: Rs 500 of cash / securities to keep account active. This can
• •Demat 1st Yr: Rs 250 be withdrawn only on closure of account.
• •Initial Margin: Rs 5000(Compulsory) •
• •Min Margin Retainable: Rs 1000
• •Brokerage:
• Trading 0.10% each side + ST
• Delivery 0.50% each side + ST
• (Negotiable to 0.05% each side & 0.25%)
• •Account Access Charges
• Monthly Rs 800, adjustable against
Brokerage
• Yearly Rs 8000, adjustable against
brokerage
 IndiaBulls.
• Company Background
• •
• India Bulls is a retail financial services company
• present in 70 locations covering 62 cities. It offers a
• full range of financial services and products ranging
• from Equities to Insurance. 450 + Relationship
• Managers who act as personal financial advisors
Online Account Type
• •Signature Account: Plain Vanilla Account with focus on
Equity Analysis. The equity analysis is a paid service
even for A/c holders
• and he gets a % on business generated from client.
•Power India bulls: Account with sophisticated trading
tools, low commissions and priority access toAccounts
• Signature Account
• •Account Opening: Rs 250
• •Demat: Rs 200 if POA is signed, No AMC for this DP
• •Initial Margin: NIL
• •Brokerage: Negotiable
• Power IndiaBulls
•
• Problems Of India Bulls
• POA for Clients DMAT
Charges are levied to move shares from IB pool
Account to client DP account All shares held by
client trading with IB are moved to IB Pool Account
and the same is shown as a reflection in client DP
account.Paid Research Services
• Access to a research even for an IB trading
account holder is charged a min of Rs 500 a
month.Margin funding hoax
• The interest on funding starts on leveraged delivery
trades from T+1 day itself @21% p.a, on a daily
basis.
•
• The role of Relationship Manager
• Each RM is looked upon as a revenue generator
This can lead to over leveraged (Interest) & high
frequency (Brokerage) trading, which may not be in
the best interest of the client.

• •Account Opening: Rs 750

• •Demat: Rs 200 if POA is signed, No AMC for this DP
• •Initial Margin: NIL
• •Brokerage: Negotiable
 KOTAK SECURITIES
• Problems of Kotakstreet
• Rigid Account Opening Terms
• No Flexibility of A/c opening charges (Rs 500) +
• Company Background Compulsory margin Rs 5000/- Account opening
• free with Rs 10,000 Margin .
• No Flexibility in Leverage – Dependent on Type of
• Kotakstreet is the retail arm of kotak securities. Kotak Account ( 4 to 6 times only) No flexibility in
• Securities limited is a joint venture between Kotak Brokerage, driven by slab structure.
• Mahindra Bank and Goldman Sachs. • No Customization of commercial Terms.
• Restricted Access to Terminal like product
• KEAT Desktop restricted distribution on payment of
Rs 500, Non refundable
• Online Account Types • Many Other Charges:
• • Twin Advantage / Green Channel: 2 DP’s, Limit • Rs 225 p.m towards DP AMC charges
against shares • DP incoming charges extra, 0.02%
• • Free Way: Flat Rs 999 Cover Charge p.m, 0.03% • Rs 1,000 as retainable Margin to keep account
per transaction active
• • High Trader: 6 Times Exposure Cash & • Rs 25 per call after 20 calls for the month
Derivatives, Auto sq off 2:55
• Pricing of KOTAK
• • Account Opening: Rs 500
• • Demat: Rs 225 p.m
• • Initial Margin: Rs 5000(Compulsory)
• • Min Margin Retainable: Rs 1000
• • Brokerage Slab wise: Higher the volume, lower
the brokerage. Even older customers (on 0.25% & 0.40%)
have been moved to the slab wise structure.
 ICICI Direct.com
• Company Background
• segment automatically squared off at any time
• ICICI Web Trade Limited (IWTL) maintains
• ICICIdirect.com. IWTL is an affiliate of ICICI Bank Limited
• and the Website is owned by ICICI Bank Limited
• Account Types
• ICICI Direct e-invest Account:
• Premium trading interface of ICICIDirect Link is given to DBC
partners and HNI’s Plain Vanilla Account with focus on 3 in 1
advantage. Differentiated in services within the account.
• 1. Cash on spot
• 2. MarginPlus
• Account Opening: Rs 750
• Schemes: For short periods Rs 750 is refundable against
brokerage generated in a qtr. These schemes are introduced
3-4 times a year.
• Demat: NIL, 1st year charges included in Account Opening
Plus a facility to open additional 4 DP’s without 1st yr AMC.
• Initial Margin: Nil
• Brokerage: All brokerage is inclusive of stamp duty and
exclusive of other taxes.
• Slab wise brokerage ranges from 0.75% to 0.25% depending
on volume
• Problems Of ICICIDirect
• Poor online Interface
• Slow website interface with no real-time quotes
creates dissatisfaction among high frequency
tradersMargin trading restriction
• The margin trading system is available up to 2:45
p.m, with outstanding net positions under margin
between 2:45 – 3:30 p.m. Thus no control of square
off price.Morning Trades Issue
• Being one of the websites with largest no of after
hour orders which are pushed 1st thing in the
morning, creates a choking of orders to the
exchange, causes delay of confirmations for new
order placed during the early morning
trades.Restriction of BTST
• The sale of shares purchased is restricted to T+1
day and is not permitted on T+2 Day.
•
No leverage for Delivery trades
• Delivery is restricted to the total money allocated
into the trading account. No flexibility on leverage
on Intra-day trades
• The leverage of 4 times is available for intra- day
trades.Restriction of Bank Account
• The choice of bank is restricted to ICICI
Bank.Higher Brokerage rates with slabs
• The delivery brokerage is pegged at 0.75% and
trading at 0.10% each side, this makes is very
unviable for customers dealing in large volumes.
Although progressively the delivery and trading
brokerage reduce as volumes go up.
 Conclusion
• Indian economy has been globalized and the capital market has been
linked to the international financial market. Foreign individuals and
institutional investors are now encouraged to participate into it. So, there is
a need for raising the Indian Capital market in to the international standards
in terms of efficiency and transparency. One such measure is the passing
out of the Depository Act during the year 1996. Dematerialization of
securities and under this system is one of the major steps aimed at
improving and modernizing the capital market and enhancing the levels of
investor’s protection measures which aims at eliminating the bad deliveries
and forgery of shares and expediting the transfer of shares.
• Thus online share trading is gaining its popularity. Though
it still has to go a long way but it has established its foothold in the
metropolitan cities like Delhi, Mumbai etc. The dematerializing of shares
coupled with the huge growth of internet has been the fuel for the online
trading which is now a considerable part of the total trading.
• It can therefore be said that online share trading is here to stay and will only
grow to bigger proportions and will penetrate deeper into the economy. So
online trading would become the order of the day, taking over the traditional
norms in the years to come.
 QUESTIONNAIRE
• Q1. In which of these Financial Instruments do you invest into?
•
• (i) Shares (ii) Mutual Funds (iii)Bonds (iv) Others
• Q2. Which type of trading you prefer?
•
• (i) Online (ii) Offline (iii) Not Applicable
•
• Q3. If you prefer Online Trading then the reasons for it?
• (i) Privacy (ii) User friendly & Time Saving

• (iii) Convenience (iv) All The Above

• Q4. What factors motivates you to invest in securities?
• (i) New IPO's (ii) Entry of FII's (iii)
More returns in less time (iv) Others
• Q5. Does online trading system motivate you to deal in securities?
• (i) Yes (ii) No
• Q6. Have you heard about Sharekhan?
•
• (i) Yes (ii) No
• Q7. Which Brokerage Firm do you prefer for Online Trading?
• (i) ICICI Direct (ii) ShareKhan (iii) Indiabulls
 QUESTIONNAIRE
• Q8. What differentiates your Share Trading Company from others?
•
• (i)Brokerage (ii) Research Report (iii) Dial up trade facility
• (iv)Magazine (v) Exposure (vi) Account opening charges
• Others
•
• Q9. How often do you trade?
• (i) Daily (ii) Weekly (iii) Monthly (iv) Yearly
• Q10. In which category does your income fall? (Per month in Rs)
• i) 0-15000 ii) 15000 – 35000 iii) 35000 – 60000 iv) Above 60000
• Q11. What percentage of your earnings do you invest in share trading?
• (i)Up to 10% (ii) Up to 25% (iii) Up to 50% (iv) Above 50%
•
• Q12. According to your preference rank the attributes of a share trading company.(1=Most Important, 5= Not Important at all)
•
• 1. Customer Service ____
• 2. Proper Guidance ____
• 3. Regular Updates ____
• 4. Trustworthiness____
• 5. Brokerage Charges_____
•
• Q13. Rank these share trading companies according to the quality of service they provide.(1=Excellent, 5= Very poor)
•
1. 2. 3. a. Sharekhan

• b. ICICI Direct
• 4. 5. c. India Bulls
• d. Kotak Securities
• e. others (specify )
•
Q14. What additional features do you wish to have in Online Share Trading?
•
Personal Information
•
• Name:
• Age:
• Sex: Male Female
•
• Phone No:
• Occupation
• Thanks