Execut

iveSummar
y

The conductofa st
udy atshar
ekhan Lt
d was i
nit
iat
ed due t
othe need f
or
under
standi
ngt
henat
ureofor
gani
zat
ion,i
tscul
tur
e,pol
i
cies,pr
ocedur
es,nat
ureand
f
unct
ioni
ngofdi
ff
erentdepar
tment
s&t
hei
rint
err
elat
ionshi
ps,i
tsi
nter
nal&ext
ernal
env
ironmentet
c.

Theobj
ect
iveoft
hest
udywast
opr
ovi
deadescr
ipt
ionofov
eral
lbusi
nessoper
ati
ons
oft
hecompanyal
ongwi
tht
hecont
our
soft
hei
ndust
ry.

Thi
sst
udyi
ncl
udest
hei
ndust
rypr
ofi
l
e,companypr
ofi
l
e,andowner
shi
ppat
ter
n&
or
gani
zat
ionst
ruct
ure.SWOTanal
ysi
shasbeenunder
takent
ounder
standt
hef
ir
m’s
r
elat
ionshi
pwi
tht
heext
ernal
env
ironment
.

Theobj
ect
iveoft
hei
npl
antt
rai
ningi
stoenabl
eabet
terunder
standi
ngoft
he
wor
kingoft
heor
gani
zat
ionandt
odev
elopacompar
ati
veappr
oachbet
weent
he
t
heor
ysubj
ect
sandt
hei
rpr
act
ical
appl
i
cat
ion.

Themet
hodol
ogyempl
oyedi
ncol
l
ect
ingi
nfor
mat
ionhasbeendi
recti
nter
act
ions
wi
thmanager
s,ex
ecut
ivesandt
rai
ningf
acul
tyandr
efer
encef
rom websi
tesand
annual
repor
tsoft
hecompany
.

I
npl
antt
rai
ningatshar
ekhanLt
dwasi
ntel
l
ect
ual
l
yver
yst
imul
ati
ngandIhadan
oppor
tuni
tyt
ohav
eagl
i
mpseatt
hepr
act
icesoft
hecor
por
atewor
ld.

POSTGRADUATEDEPARTMENTOFMANAGEMENTSTUDI
ES-
JSSATEB 1
 ORGANI
SATI
ONSTUDYATSHAREKHANLTD

CHAPTER-
1

I
NTRODUCTI
ONABOUTTHEORGANI
SATI
ONANDI
NDUSTRY

1.
1INTRODUCTI
ONABOUTTHEI
NTERNSHI
P
Thepr
ojecti
sonaboutt
he“
Ast
udyonconst
ruct
ionofopt
imum por
tfol
i
oatshar
ekhan
l
td”por
tfol
i
oisacombi
nat
ionofv
ari
oussecur
it
iessuchasst
ock,bondandmoney
mar
keti
nst
rument
.Themet
hodofmi
xi
ngal
ongt
hebr
oadasset
scl
assessoast
oobt
ain
opt
imum r
etur
nwi
thmi
nimum r
iski
scal
l
edpor
tfol
i
oconst
ruct
ion.

I
tisr
aret
ofi
ndi
nvest
orsi
nvest
ingt
hei
rent
ir
esav
ingsi
nsi
ngl
esecur
it
y.I
nst
ead,t
hey
hav
eat
endencyt
otakeaposi
ti
oni
nav
erycl
ust
erofsecur
it
iessuchcl
ust
erofsecur
it
ies
i
scal
l
edapor
tfol
i
o.Const
ruct
ionofpor
tfol
i
ohel
pst
oreducer
iskwi
thoutsacr
if
ici
ng
r
etur
ns.Por
tfol
i
omanagementdeal
swi
tht
heanal
ysi
sofi
ndi
vi
dualsecur
it
iesmor
eov
er
l
i
ket
hei
deaandpr
act
iceofopt
imal
l
ycombi
ningsecur
it
iesi
ntopor
tfol
i
o.Ani
nvest
or
who under
stand t
he f
undament
alpr
inci
ples and anal
yti
calaspect
s of por
tfol
i
o
managementasabet
terchanceofsuccess.

I
nast
ockBr
oker
agef
ir
m shar
ekhanl
i
mit
edont
het
opi
c“const
ruct
ionofopt
imum
por
tfol
i
oatshar
ekhanl
td”t
hepr
ojecti
stakenbyme.Thest
ockmar
keti
sbr
oadert
hing
i
nthi
sI’
m choosent
he‘
Nat
ional
StockExchangeMar
ket
’formyanal
ysi
soft
hesecur
it
ies.
Ihav
etaken5i
nvest
orst
hati
sA,
B,C,
D,E.Byanal
yzi
ngt
her
efundament
alandt
echni
cal
aspect
soft
heoft
heeachsecur
it
iesofi
nvest
orsandr
ankt
hem ont
hebasi
soft
hei
r
mor
eret
urn&l
essr
iskwi
tht
hisconst
ructaheal
thypor
tfol
i
oofsecur
it
ies.

POSTGRADUATEDEPARTMENTOF
2

MANAGEMENTSTUDIES-JSSATEB
 ORGANI
SATI
ONSTUDYATSHAREKHANLTD

1.
2INTRODUCTI
ONABOUTTHEORGANI
SATI
ON
Shar
ekhanl
tdi
stheoneoft
het
opr
etai
lbr
oker
agehousei
ndi
awi
thast
ongt
radi
ng
pl
atf
orm.Shar
ekhanhast
odayapani
ndi
apr
esencewi
thov
er1800out
let
sser
ving12,
00,
000 cust
omeracr
oss 650 ci
ti
es i
tal
so has i
nter
nat
ionalpr
esence t
hrough i
ts
br
anchesi
ntheUAEandOman.Thecompanypr
ovi
desequi
tybasedpr
oduct
ssuchas
r
esear
ch,cust
omercommi
tment
,andsuper
iort
echnol
ogy
,theypr
ovi
det
radeexecut
ion
ser
vicet
hroughmul
ti
plesuchas,
int
ernetpl
atf
orm,
tel
ephoneandr
etai
lout
let
s.

I
tsst
rengt
hsl
eyi
nit
sinv
est
mentr
esear
chcapabi
l
iti
es.I
tsr
esear
chdi
vi
sionhassev
eral
anal
yst
scont
inual
l
ymoni
tor
ingt
hegl
obal
,nat
ionalandr
egi
onalpol
i
tical
,economi
cand
soci
alsi
tuat
ionssoast
oassesst
hei
rimpactont
heeconomyi
ngener
al,
thesect
orsand
compani
est
heyr
esear
chwhi
chhel
pthem i
fof
fer
ingqual
i
tyr
esear
chandadv
iset
o
cl
i
ent
s.TheSSKIgr
oupcompr
isesofi
nst
it
uti
onalbr
oki
ngdi
vi
sioncat
erst
odomest
ic
andf
orei
gni
nst
it
uti
onali
nvest
ors,
whi
l
ethecor
por
atef
inancedi
vi
sionf
ocusesonni
che
ar
eassuchasi
nfr
ast
ruct
ure,t
elecom and medi
a.SSKIhasbeenv
oted ast
het
op
domest
icbr
oker
agehousei
nther
esear
chcat
egor
ybyeur
omoneysur
veyandbyAsi
a
moneysur
vey
.

Fort
heder
ivat
ivessegment
,toeducat
ethepol
i
ticali
nvest
orst
owar
dst
heshar
emar
kett
hey
pr
ovi
deast
udyki
tnamedt
he‘
der
ivat
ivesdi
gest
’andf
orpot
ent
iali
nvest
orswant
edt
ost
art
t
het
radi
ngi
ntheshar
emar
ketal
sopr
ovi
deast
udyki
t‘f
ir
stst
ept
oinv
est
ingi
ntheshar
e
mar
ket
’gi
vest
hem agener
alunder
standi
ngabouthow t
heshar
emar
ketoper
ates,andi
t
al
sogi
vesani
dear
egar
dingt
her
oleshar
ebr
oker
sint
hecapi
talmar
ket
.Thesear
ethewi
de
r
angi
ngser
vicesof
fer
edbyt
heshar
ekhanl
tdt
oit
scust
omer
s.andmosti
mpor
tant
ly,shar
e
khanl
tdi
sbl
essedwi
thwel
l
-dedi
cat
edsal
eswi
ngs,
whoar
elooki
ngaf
tert
hev
ari
ousneeds
oft
hecust
omer
sinacommi
tt
edmannerandwhi
chpr
ovi
det
hecust
omer
swi
tht
remendous
amountofsat
isf
act
ionandhappi
nessaboutt
hei
rinv
est
ment
.

POSTGRADUATEDEPARTMENTOF
 3

MANAGEMENTSTUDI
ES-JSSATEB
 ORGANI
SATI
ONSTUDYATSHAREKHANLTD

1.
3INTRODUCTI
ONABOUTTHEI
NDUSTRY

I
NDI
ANSTOCKMARKET:

I
ntr
oduct
ion:

TheI
ndi
anbr
oki
ngi
ndust
ryhasbeengr
owi
ngf
rom manyy
ear
sasi
nter
msofi
tssi
ze
andscope.Rel
ati
onshi
pbet
weent
hei
nvest
orsandbr
oker
sdev
elopt
hecapi
talmar
ket
andal
sobenef
itt
othebot
hpar
ti
esi
nter
msofi
nvest
orgetgoodr
etur
nandsecur
e
t
ransact
ionsaswel
lasbr
okergetgoodcommi
ssi
onasr
etur
nont
ransact
ions.The
br
okerhasgoodknowl
edgeaboutshar
emar
ketandcompani
es,hewi
l
lpr
ovi
degood
suggest
ionst
othenewi
nvest
ort
ogetgoodl
ongr
etur
nont
hei
rinv
est
ment
s.TheI
ndi
an
St
ockExchangehast
hegoodr
eput
ati
oni
nAsi
aandWor
ldwi
deal
soi
nter
msofqual
i
ty
andadv
ancementoft
echnol
ogy
.

Hi
stor
yoft
heWor
ldandI
ndi
anBr
oker
ageMar
ket
:

“
InI
ndi
a,i
tst
art
edf
ormal
l
yin1875wi
tht
heset
ti
ngupofBombaySt
ockExchange.Si
nce
t
hen,
thepr
ofessi
onhascomeal
ongwayandt
ohav
ebecomea$1bi
l
li
oni
ndust
ryi
nthi
s
count
ry.St
ockBr
oker
susedt
obeanel
i
tegr
oupofBSEmember
sforal
ongper
iodof
t
ime.Becomi
ngabr
okerwasext
remel
ydi
ff
icul
tformany
,mai
nlyduet
othehi
ghcapi
tal
l
ayouti
nvol
ved.Thi
schangeddr
amat
ical
l
yint
hepastcoupl
eofdecadessi
nceNSEwas
set
up i
nthe 1990s and a l
otoft
radi
ng st
art
ed mov
ing t
othe onl
i
ne pl
atf
orms.
Tr
anspar
encyi
ncr
easedandt
radi
ngcost
sreducedwhi
chhel
pedt
het
radi
ngpubl
i
cin
gener
al.I
ntr
oduct
ionofDer
ivat
ivest
radi
nghel
pedi
ndev
isi
nghedgi
ngandot
hert
radi
ng
st
rat
egi
es.
”

“
Dur
ingt
hisper
iod,t
henumberofbr
oker
sincr
easedexponent
ial
l
yduet
orel
axat
ionof
ent
rybar
ri
ersand t
hei
ncr
easi
ng mar
ketsi
ze.Howev
er,ov
ert
hepast5 y
ear
sthi
s
i
ndust
ryhasgonet
hroughamaj
orconsol
i
dat
ionphase.

Ther
eisadecl
i
nei
nthenumberofst
ockbr
oker
sinI
ndi
a.Thi
sdecl
i
necanbeat
tri
but
edt
oa
numberofr
easons.Ti
ght
eni
ng ofr
egul
ati
ons can be seen as a maj
orf
act
or,wi
th
i
ntr
oduct
ionofanumberofKYCandot
hercompl
i
ancenor
ms.SEBIandt
hegov
ernmentar
e
maki
ngev
eryef
for
ttoensur
e
POSTGRADUATEDEPARTMENTOF
4

MANAGEMENTSTUDIES-JSSATEB
 ORGANI
SATI
ONSTUDYATSHAREKHANLTD

i
nvest
orsaf
ety
.Regul
ati
onsar
eimpor
tantt
oensur
ethest
ockmar
ket
sar
eusedi
nthe
r
ightwayasasav
ingsandi
nvest
mentav
enue,asagai
nstapl
atf
ormf
orspecul
ati
onor
gambl
i
ng.

Anot
herr
easoni
stheadv
entofnew di
scountbr
oki
ngpl
ayer
swhi
chhav
etakent
he
t
radi
ti
onalbr
oki
nghousesbysur
pri
seandhav
eputamaj
orpr
ici
ngpr
essur
eont
heol
d
schoolbr
oki
ngpl
ayer
s.I
ncr
easi
ngt
echnol
ogycost
shav
eal
soaf
fect
edal
lthebr
oki
ng
housesast
hecust
omer
shav
est
art
edt
odemandbet
terandswi
ftt
echnol
ogyandt
he
whol
eindust
ryi
sinchi
ngt
owar
dsaut
omat
ionofpr
ocesses;whi
chi
simpor
tantf
ort
he
gr
owt
hoff
inanci
almar
ket
sinI
ndi
a.

Al
so,
ther
evenuesf
rom cor
ebr
oki
ngact
ivi
ti
eshav
edecl
i
nedsi
gni
fi
cant
ly,
byal
most7t
o
8per
centi
nFY16.Der
ivat
ivesv
olumeshav
etakenahi
tasSEBIhasi
ncr
easedt
he
mi
nimum l
otsi
zeoff
utur
esandopt
ionscont
ract
stokeepsmal
linv
est
orsatbayf
rom
t
hesear
guabl
yri
skyt
radi
ngi
nst
rument
s.

Oft
he125-
cror
epeopl
einI
ndi
a,onl
y0.
6Cr
orepeopl
einv
estort
radei
nthest
ock,
commodi
ty
orcur
rencymar
ket
s.I
nChi
naort
heUS,t
hissub-
seti
smor
ethan10per
cent
.SEBI
,st
ock
exchanges,br
oker
s and ot
hermar
keti
nter
medi
ari
es ar
e bur
ning t
hei
rmi
dni
ghtoi
lfor
i
nvest
oreducat
ionandi
thasst
art
edt
oyi
eldr
esul
ts.Newi
nvest
orsar
eent
eri
ngt
hemar
ket
s
ei
therbywayofdi
recti
nvest
ment
sort
hrought
hemut
ualf
undsr
out
e.Ot
herasset
sli
ker
eal
est
ateorgol
dhav
enoty
iel
dedasmuchr
etur
nsast
heequi
tymar
ket
sint
hepast5y
ear
sand
al
otofpeopl
ear
ebegi
nni
ngt
ounder
standt
his.Addi
ti
onal
l
y,t
hel
i
qui
dit
yof
fer
edbyt
he
st
ockmar
ket
sisnotav
ail
abl
ewi
thmostoft
heot
heri
nvest
mentav
enues.Thet
ight
eni
ngof
t
hecompl
i
ancenor
msbySEBIhasr
esul
tedi
ntr
anspar
encyi
nthemar
ket
sandi
ncr
eased
publ
i
c’sf
ait
hint
hei
ntegr
it
yoft
hewhol
eindust
ry.

RAPI
DGROWTH:

Thel
astdecadehasbeenexcept
ional
l
ygoodf
ort
hest
ockmar
ket
sinI
ndi
a.Wi
tht
he
backgr
oundofwi
der
angi
ngr
efor
msi
nregul
ati
onandmar
ketpr
act
iceandt
hegr
owi
ng
par
ti
cipat
ionoff
orei
gn

POSTGRADUATEDEPARTMENTOF
5

MANAGEMENTSTUDIES-JSSATEB
 ORGANI
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ONSTUDYATSHAREKHANLTD

i
nst
it
uti
onali
nvest
ment
,st
ockmar
ket
sinI
ndi
ahav
eshowedphenomenalgr
owt
hint
he
ear
ly1990s.Thest
ockmar
ketcapi
tal
i
zat
ioni
nmi
d-2007i
snear
lyt
hesamesi
zeast
hat
oft
hegr
ossdomest
icpr
oductascompar
edt
oabout25%oft
hel
att
eri
ntheear
ly2000’
s.

NATI
ONALSTOCKEXCHANGE(
NSE)

TheNat
ionalSt
ockExchange(
NSE)i
sIndi
a’
sleadi
ngst
ockexchangecov
eri
ngv
ari
ous
ci
ti
esandt
ownsacr
osst
hecount
ry.NSEwassetupbyl
eadi
ngi
nst
it
uti
onst
opr
ovi
dea
moder
n,f
ull
yaut
omat
edscr
een-
basedt
radi
ngsy
stem wi
thnat
ional
reach.

Ther
ear
etwoki
ndsofpl
ayer
sinNSE:

Tr
adi
ngmember
s

Recogni
zedmember
sofNSEar
ecal
l
edt
radi
ngmember
swhot
radeonbehal
fof
t
hemsel
vesandt
hei
rcl
i
ent
s

Par
ti
cipant
s

Par
ti
ci
pant
sincl
udet
radi
ngmember
sandl
argepl
ayer
sli
kebankswhot
akedi
rect
set
tl
ementr
esponsi
bil
i
ty.

NSEof
fer
str
adi
ng,
clear
ingandset
tl
ementser
vicesi
nequi
ty,
equi
tyder
ivat
ives,
anddebt
andcur
rencyder
ivat
ivessegment
s.I
tist
hef
ir
stexchangei
nIndi
atoi
ntr
oduceel
ect
roni
c
t
radi
ngf
aci
l
ityt
husconnect
ingt
oget
hert
hei
nvest
orbaseoft
heent
ir
ecount
ry.NSEhas
2500VSATsand3000l
easedl
i
nesspr
eadov
ermor
ethan2000ci
ti
esacr
ossI
ndi
a.

BOMBAYSTOCKEXCHANGE(
BSE)

Compani
est
radi
ngonBSEhi
tanewpeakofRs116t
ri
ll
i
ononTuesday
,dr
ivenbymut
ual
f
undst
hatst
ockeduponshar
esi
nthebr
oadermar
ket
,ev
enast
hebenchmar
kSensex
cl
osedf
lat
.

POSTGRADUATEDEPARTMENTOF
6

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 ORGANI
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ONSTUDYATSHAREKHANLTD

St
rongdomest
ici
nvest
ori
nter
estf
uel
edmi
d-andsmal
l
-capst
ocks,
alongwi
tht
hef
rontl
i
ne
i
ndices.
TheBSE’
smar
ketcapi
tal
i
zat
ioncl
osedatRs115.
9tr
il
li
ononTuesday
,asi
nvest
orscashedi
n
gai
ns.
TheBSEmi
d-capandBSEsmal
l
-capi
ndi
cesshed0.
56%and0.
63%,
respect
ivel
y.

I
tisper
ti
nentt
onot
ethati
nthi
syear
’sr
all
y,whi
l
eBSE’
s30-
shar
eSensexr
ose6.
41%,
the
BSEmi
d-capandsmal
l
-capi
ndi
ceshav
eri
sen10.
69% and11.
61%,r
espect
ivel
yint
he
sameper
iod.

Tobesur
e,t
her
isei
nlar
gecapst
ockswoul
d,i
nabsol
utet
erms,cont
ri
but
emor
etot
he
mar
ketcapi
tal
i
zat
iongai
ns,ev
enwi
thl
owerper
cent
agegai
ns.Domest
ici
nst
it
uti
onal
i
nvest
ors(
DII
s)hav
ebeenmaj
ori
nvest
orsi
nIndi
anequi
ti
esmar
ketofl
ate,i
nvest
inga
netRs6,855.
93cr
orei
nthe y
earso f
ar.Oft
his,mut
ualf
unds i
nvest
ed a net
Rs6287.
50cr
ores.I
nthesameper
iod,f
orei
gni
nst
it
uti
onali
nvest
orsFI
Ishav
epumpedi
n
amer
eRs1,
590.
96cr
ore.

BSEi
sthewor
ld’
s11l
argestst
ockexchangewi
thanov
eral
lmar
ketcapi
tal
i
zat
ionofmor
e
t
han$2t
ri
ll
i
on.
mor
ethan5500compani
esar
epubl
i
clyl
i
stedonBSE….

Top10St
ockBr
oki
ngFi
rmsi
nIndi
a:

SlNo. St
ockBr
oker
s Numberof
cl
ient
s

1 I
CICISECURI
TIESLTD. 692689

2 HDFCSECURI
TIESLTD. 507608
POSTGRADUATEDEPARTMENTOF
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3 SHAREKHANLTD. 434854

4 AXI
SSECURI
TIESLTD. 321301

5 KOTAKSECURI
TIESLTD. 312217

6 ZERODHA 299217

7 ANGELBROKI
NGPVT.LTD. 293178

8 MOTI
LALOSWALSECURI
TIESLTD. 250306

9 KARVYSTOCKBROKI
NGLTD. 205365

10 I
NDI
AINFOLI
NELTD. 200721

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CHAPTER-2

ORGANI
SATI
ONPROFI
LE

2.
1BACKGROUND

2.
2NATUREOFBUSI
NESS

2.
3VI
SSI
ON,
MISSI
ON,
QUALI
TYPOLI
CY

2.
4WORKFLOW MODEL

2.
5PRODUCT/SERVI
CEPROFI
LE

2.
6OWNERSHI
PPATTERN

2.
7ACHI
EVEMENTSANDAWARDS

2.
8FURUREGROWTHANDPROCEPECTS

2.
1BACKGROUND

PROFI
LEOFTHECOMPANY:

Nameoft
hecompany :
Shar
ekhanl
td.

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YearofEst
abl
i
shment :
2001

Addr
ess :
shar
ekhanl
td

Vi
j
ayanagar
a

Bangl
ore560085

Headquar
ter :
Shar
eKhanSSKI

A-
206Phoeni
xHouse

Phoeni
xMi
l
lsCompound

LowerPar
el

Mumbai
-Mahar
asht
ra,
INDI
A-400013

Nat
ureofBusi
ness :
Ser
vicePr
ovi
der

Ser
vices :
Deposi
tor
ySer
vices,
Onl
i
neSer
vices

andTechni
cal
Resear
ch.

NumberofEmpl
oyees :
35

Websi
te :
www.
shar
ekhan.
com

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Sl
ogan :
YourGui
det
oTheFi
nanci
alJungl
e.

Shar
ekhanLt
d.(
Est
abl
i
shedi
nthey
earof1922)i
sfoundedi
nFebr
uar
y2000,by
Mr
.Shr
ipalMor
akhi
aatMumbai
,Indi
a(Headquar
ter
s).Thepar
entcompanyofShar
e
khani
sBNPPar
ibas.Oper
ati
ngi
ntheFi
nanci
alI
ndust
ryasar
etai
lbr
oki
ngi
ndust
ryand
l
ever
agedont
hef
ir
stwav
eofdi
git
ali
zat
ion,i
tint
roducedt
heel
ect
roni
ctr
adi
ngsy
stem
whendemat
eri
ali
zat
ion(
Demat
)ofsecur
it
iescamei
ntoexi
stencei
nthecount
ry.

Nowt
heShar
ekhanhasmor
ethan4800empl
oyeesal
lov
ert
hecount
ryandi
spr
esenti
n
ov
er575ci
ti
est
hrough150br
anches,
mor
ethan2600busi
nesspar
tner
s.Shar
ekhanhas
1.
6Mi
l
li
oncl
i
ent
sandonanav
erage,
execut
esmor
ethan4l
akht
radesperdayi
nIndi
a.

Thepr
esentCEOoft
heShar
ekhani
sMr
.Jai
deepAr
ora.

r
d
Shar
ekhani
stheI
ndi
a’
s3 l
argestbr
oker
agef
ir
m af
tert
heI
CICIDi
rectandHDFC
Secur
it
iesi
nthet
ermsofcust
omer
’sbase.Shar
ekhani
sgoodi
nonl
i
net
radi
ngi
nIndi
a.
I
tof
fer
sbr
oadr
angeoff
inanci
alpr
oduct
sandser
vicest
othecl
i
ent
sli
kesecur
it
ies
br
oker
age,l
oanagai
nstshar
es,ESOPf
inanci
ng,et
c.Shar
ekhanpr
ovi
desauserf
ri
endl
y
onl
i
net
radi
ngf
aci
l
ity
.

AboutShar
ekhan–Al
way
sthef
ir
st

Theshar
ekhani
sst
art
edi
n2000andi
tisahol
dbyBNPPar
ibassi
nceNov
ember2016,
Shar
ekhanwast
hef
ir
stbr
oker
stoof
feronl
i
net
radi
ngi
nIndi
a.

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Gui
dingI
ndi
a'
sret
ail
stocki
nvest
orsf
or16y
ear
s

Regi
ster
edwi
thNSEandBSEf
orcapi
tal
mar
ket
,fut
uresandopt
ionsandcur
rencysegment
s
andCDSLandNSDLf
ordeposi
tor
yser
vices.

Af
ull
-ser
vicest
ockbr
oki
ngf
ir
m pr
ovi
dingonl
i
neser
vicesr
ightf
rom onl
i
neaccountopeni
ng
t
otr
adi
ngandi
nvest
ment
s.

Cr
eat
edI
ndi
a’
sbestonl
i
net
radi
ngpl
atf
orms:Websi
te(
www.
shar
ekhan.
com)
,Tr
adeTi
ger
(
theul
ti
mat
edeskt
opt
radi
ngsof
twar
e),Shar
ekhanApp(
avai
l
abl
eforAndr
oidandI
OS
dev
ices)andShar
ekhanMi
ni(
alowbandwi
dthwebsi
teespeci
all
yformobi
l
ebr
owser
s)

Ast
rongbr
ick-
and-
mor
tarnet
wor
kwi
thov
er2600out
let
sin575+ci
ti
es

Resear
ch-
basedf
inanci
aladv
iceonal
lassetcl
assest
osui
tal
li
nvest
ingandt
radi
ngst
yles

Dedi
cat
edEducat
ionandt
rai
ningcour
sesf
ori
nvest
orsandt
rader
sinassoci
ati
onwi
th
Onl
i
neTr
adi
ngAcademy

Shar
ekhanwasf
oundedbyMumbai
-basedent
repr
eneurShr
ipal
Mor
akhi
ain2000.Shar
e
khanpi
oneer
edt
heonl
i
ner
etai
lbr
oki
ngi
ndust
ryandl
ever
agedont
hef
ir
stwav
eof
di
git
izat
ion,
when

Demat
eri
ali
zat
ion(
demat
)ofsecur
it
iescamei
ntoef
fectandel
ect
roni
ctr
adi
ngwas
i
ntr
oducedi
nthest
ockexchange.

PARTNERSI
NSUCCESS

I
nthepast16y
ear
s,wehav
ejoi
nedhandswi
thsomeoft
hesmar
testpr
ofessi
onal
sand
ent
repr
eneur
s oft
he count
ryt
o expand ourbr
ick-
and-
mor
tarnet
wor
k and connectt
o our
cust
omer
sbet
ter
.Todaywehav
emor
ethan2,
000busi
nesspar
tner
sin525ci
ti
esandwet
hinkof
t
hem asourext
endedf
ami
l
y.

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Shar
ekhan:
Maki
ngadi
ff
erencequi
etl
y

I
nar
emot
ehaml
etnearv
il
lageVadi
vel
ampal
ayam,br
ightl
i
ttl
eNandhi
niwoul
dof
ten
dr
eam ofgoi
ng t
o schoolt
olear
n aboutt
hebi
ggerwor
ld out
side.Butherf
ather
Ganeshamoor
thy
,anagr
icul
tur
all
abour
er,wasnotabl
etof
ulf
il
lherdr
eam becauset
he
near
estschoolwasabout12.
5km awayandt
her
ewasnodi
rectt
ranspor
tfr
om t
hei
r
pl
acet
otheschool
.Wi
thasenseofr
egr
etandt
ear
fuley
esNandhi
niwoul
dwat
cht
he
ol
derchi
l
drent
akeanov
ercr
owdedst
ategov
ernmentbus(
theonl
yonet
otheci
ty)t
ogo
t
oschool
ever
yday
.

Notmanyknow t
hatShar
ekhani
sther
easonwhyNandhi
niandmanyot
herchi
l
dren
r
esi
ding wi
thi
nar
adi
us ofabout25km ofI
sha Vi
dhy
a Mat
ri
cul
ati
on Schooli
n
Sandegoundenpal
ayam v
il
lageofCoi
mbat
orecannowl
ookf
orwar
dtoabr
ight
erf
utur
e.
Soci
alr
esponsi
bil
i
tyhasal
way
sbeenatt
hecor
eofShar
ekhan’
sbusi
nessmodelandt
he
companyqui
etl
yfundedt
hepur
chaseoft
hreenew SMLS7busesf
ort
heschooli
n
Sept
embert
hisy
ear
.

2.
2NATUREOFBUSI
NESS

Shar
ekhani
sast
ockbr
oki
ngcompany
.Thecompanyof
fer
sacompl
eter
angeofpr
e
t
rade,t
radeandpostt
radeser
viceont
heBSE(
Bombayst
ockexchange)andt
heNSE
(
Nat
ional
stockexchange)
.

Whet
hert
hecl
i
entcomei
ntot
hecompany
’sconv
ent
ional
l
ylocat
edof
fi
cesandt
radei
na
dedi
cat
edenv
ironmentori
ssuei
nst
ruct
ionsov
ert
hephone,t
hehi
ghl
ytr
ainedt
eam and
sophi
sti
cat
edequi
pmentensur
esmoot
htr
ansact
ionsandpr
omptser
vice.
I
nvest
mentAdv
isor
yser
vice
Faci
l
itat
ionser
vicest
oRet
ail
Inv
est
ors,
Cor
por
ate.

Deposi
tor
yser
vices

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I
nvest
mentopt
ionsi
ncl
ude:
Onl
i
net
radi
ng(
Incl
udesequi
ty,
der
ivat
ives)
Commodi
ti
est
radi
ng
Mut
ual
funds
Por
tfol
i
omanagementser
vice

Oper
ati
ons:
I
nst
it
uti
onal
broki
ng
I
nvest
mentBanki
ng
Ret
ail
Broki
ng

Thr
ought
radi
ngandset
tl
ementpr
ocesst
hei
nvest
orconv
ert
edi
ntot
hef
inal
pr
oduct
.Thecl
ear
inghouseofexchangemayactasl
egalcount
erpar
tyt
oal
ldeal
ersf
or
al
ldeal
sinequi
tyder
ivat
ivesi
nst
rument
sonexchanges.Thust
hebot
hthepar
ti
est
oan
equi
tyder
ivat
ivesmetei
therbyt
hepar
tyi
tsel
fori
ntheev
entofdef
aul
tont
hepar
toft
he
par
ty,
bycl
ear
ingcor
por
ati
on.

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2.
3VI
SION,
MISSI
ON,
QUALI
TYPOLI
CYANDVALUES

v
isi
on: Tobet
hebestr
etai
lbr
oker
ingbr
andi
nther
etai
lbusi
nessofst
ock
mar
ket
ing.

Mi
ssi
on:

Toeducat
eandempowert
hei
ndi
vi
dual
inv
est
ort
omakebet
teri
nvest
ment
deci
si
onst
hrought
hequal
i
tyadv
iceandsuper
iorser
vices.

Qual
i
typol
i
cy:

Excel
l
encei
sal
laboutt
hequal
i
tyofwor
k.West
ri
vef
ordel
i
ver
ythati
s100%
er
rorf
reeandy
etatl
i
ght
ningspeed.Excel
l
encedeal
swi
tht
hequal
i
tyofwor
k.

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2.
4WORKFLOW MODEL

Deci
si
ont
o
t
rade Pl
aci
ng
Or
der

Fundsor Tr
ad
e
Secur
it
ies Tr
ansact
ion Execut
io
n
Cy
cle

Sett
lement Cl
eari
ng
oft
rades of
Trades

Aper sonhol
dingassets,eit
hertomeethisliquidit
yneedsortoreshuff
lehisholdi
ngsin
responsetochangesi nhisper
ceptionaboutriskandretur
noftheassets,decidestobuyor
sellt
hesecuri
ties.Heselectsabrokerandinstructshi
mt opl
acebuy /
sellorderonan
exchange.Theor der
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i
sconv er t
edt oat r
adeassoonasi tfi
ndsamat chi
ngsell/
buyorder.Attheendofthe
tradecy cl
e,thetradersarenet
tedtodeter
minetheobligat
ionsofthetradi
ngmember s
securit
ies/fundsasperset t
lementcycl
e.Buyer
/sel
lerdeli
versf
unds/securit
iesand
receiv
essecur it
ies/fundsandacqui
resownershipofthesecuri
ti
es.

2.
5PRODUCT/
SERVI
CE

Shar
ekhanpr
ovi
de
Demataccount
Tr
adi
ngaccountf
orcashcal
cul
ator
Bankaccountf
orf
undt
ransf
er

PRODUCTS

Mut
ual
fundschemes.
I
nsur
ance.
Por
tfol
i
omanagementsy
stem.
Shar
es-onl
i
neandof
fl
ine.
Bonds.
Fi
xeddeposi
ts.
Commodi
ti
es

Maj
orcompet
it
orsofShar
ekhan:
Kot
akSecur
it
ies
I
ndi
abul
l
s

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I
CICIdi
rect
.com
Rel
igare
Motil
alOswal
BAJAJCAPI TAL
RELIANCEMONEY
HDFCSecur i
ti
es
I
ndiaInfol
ine

2.
6OWNERSHI
PPATTERNOFSHAREKHANLTD

CEO

Countr
y
head

Regi
onal
Head

Branch
Head

Ci
tySal
es
Manager

Deal
er

Sales
Executi
ves

SE SE SE SE4
1 2 3

TRAI
NEE TRAI
NEE TRAI
NEE TRAI
NEE

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2.
7ACHI
EVMENTSANDAWARDS

Awiredcompani
esal
ongwi
thr
eli
ance,
hil
l
,Inf
osy
s,et
c.‘
busi
nesst
oday
”,Januar
y2004,
edi
ti
on

Thebestbr
oker
agef
ir
mforOv
eral
lSer
viceCat
egor
yforLi
qui
dit
yManagement
,Indi
a
ThebestWor
kingCapi
tal
Sol
uti
on,
Indi
aforNov
ateurEl
ect
ri
cal
&Di
git
alSy
stems
Pr
ivat
eLi
mit
ed
ThebestCashManagementSol
uti
on,
Indi
aforPubl
i
csGr
oup
Thebestf
inanci
alwebsi
teawar
d
Awir
edcompani
esal
ongwi
thr
eli
ance,
hil
l
,Inf
osy
s,et
c‘busi
nesst
oday
’,Januar
y2004,
edi
ti
on
I
twasawar
ded‘
Topdomest
icbr
oker
agehouse’
,fourt
imesbyEur
oandAsi
amoney
I
twaswi
nnerof“
BestFi
nanci
alWebsi
te’
’awar
ds
I
ndi
a’
smostpr
efer
redbr
oker
swi
thi
n5y
ear
s“Awaazcust
omer
sawar
d2005’
’

OURDREAMS

Wehav
emanydr
eams.Wedr
eam ofbecomi
ngI
ndi
a'
sleadi
ngdi
git
al
sav
ingsandi
nvest
mentpar
tner
.10pr
inci
plest
ogui
deourv
isi
on2020

2.
8FUTUREGROWTHANDPROSPECTS:
Togr
owasdi
str
ibut
ionnet
wor
ksI
ndi
a.
Tosuppor
tLev
erager
esear
chandadv
isor
y
Tobr
ingI
nvest
orawar
enessandeducat
ion.
ToI
ncr
easedi
str
ibut
ionofmut
ual
fundandi
nsur
ancepr
oduct
s

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Tof
ocusonweal
thsol
uti
onsandnewpr
oductof
fer
ing.Tohav
eaj
udi
cioususeof
capi
tal
thatensur
eshi
ghRet
urnonEqui
tyandl
owl
ever
age.
Tohav
eaFl
exi
blecostst
ruct
uret
hatmai
ntai
nspr
ofi
tabi
l
ityacr
ossmar
ketcy
cles.
ToBui
l
dSt
rongerI
nst
it
uti
onal
rel
ati
onshi
pthr
oughwi
derandqual
i
tyr
esear
ch.
ToI
ncr
easer
esear
chsuppor
t.
Bui
l
dingPri
nci
pal
Str
ategi
esGr
oupt
omaxi
mizer
etur
nsusi
ngr
iskf
reear
bit
rage
str
ategi
es

Mer
gers and acqui
sit
ions:Inthe hi
ghlycompet it
ive and overcrowded market
,
shakeoutsandbankruptci
esofonli
nebr okerscanbeant i
cipat
ed.Thetrendis
towardsagradualconsoli
dat
ionofret
ailinvest
orstoaf ew dominantpl
ayersor
part
nershi
ps.

St
ockbroki
ngapplicat
ionsthatpr
ovidedserv
icesi
nvari
ousdel
i
ver
ymodes,i
.e.
,i
nter
net
,
WAP,pal m pi
l
ots,pocketPCsetcwi l
lgetmorecommonasmor eandmorepeople
star
tusingthesegadgets.Onli
nebrokingwouldhaveacompl
etel
ynew meani
ngin
thi
sscenari
o.

I
n acrowded stockbr oking i
ndust
ry,diff
erenti
ati
on becomest hekeyt o hi
gher
rev
enues.Bett
erservice,st
rai
ghtthr
oughpr ocessing(STP)
,immediat
eexecution,
port
fol
io ser
vices,i
nv est
mentadv isor
sand t elephonecallcent
ersorbr anch
i
nvestmentofficesareneededt oretai
ncustomer sandt oincr
easetherevenue
base.

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CHAPTER–3
Mcki
nsy
’s7sf
ramewor
kandpor
ter
’sf
ivef
orcemodel
0f
shar
ekhan

St
ruct
ure:
shar
ekhanbasi
cal
l
yfol
l
owsf
unct
ional
str
uct
ureandshar
ekhani
sfl
exi
ble
i
nter
msofmaki
ngt
empor
aryst
ruct
ural
changest
ocopeupwi
thspeci
fi
c
st
rat
egi
ctaskswi
thoutanyhassl
es.I
fneedar
isest
het
opmanagementcan
assi
gnt
her
olet
oanyofi
tsempl
oyeeswhi
chi
tconsi
der
scapabl
eandski
l
lful
.

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St
rat
egy:

Tel
emar
ket
ing:

I
ntheor
gani
zat
ion,dat
abaseofcont
actnumber
sofv
ari
ouscat
egor
yofpeopl
ear
e
mai
ntai
nedwhomayormaynotknowaboutt
heser
vices.Sal
esexecut
ivesandassi
stant
manager
smakephonecal
l
stot
hesepeopl
eandi
ftheyar
eint
erest
ed,gi
vev
ari
ous
det
ail
saboutt
heser
vicesandpr
oduct
s.Thi
swi
l
lmakepeopl
etooptf
orShar
ekhani
n
f
utur
eev
eni
ftheyar
enoti
nter
est
edt
oent
erst
ockmar
ketcur
rent
ly.

Semi
nar
s:

Thesal
esper
sonnelofShar
ekhanpr
epar
esemi
nar
sdependi
ngupont
het
ypeofpeopl
e
t
heyar
e goi
ng t
o meeti
.e.st
udent
s orcor
por
ate peopl
e.Theygo t
orespect
ive
i
nst
it
uti
onsandt
akesemi
nar
sgi
vi
ngv
ari
ousdet
ail
ssui
ti
ngt
hatcat
egor
ypeopl
eandt
he
cont
actnumber
sofShar
ekhansal
esper
sonnel
tocont
actf
urt
heri
fint
erest
ed.

Doorst
eps:

Thesal
esper
sonnelal
sogot
odomest
ichomesofpeopl
eandv
ari
ousi
nst
it
uti
ons(
meet
ev
eryper
son i
n per
son,notl
i
ke semi
nar
s).
Theyexpl
aint
othem i
n det
ail
,var
ious
schemes,pr
oduct
sandser
vices.Theyal
soexpl
ainaboutt
hedocument
srequi
redt
o
openanaccountwi
thShar
ekhan.I
ftheper
soni
sint
erest
edt
hesal
esper
sonnelwi
l
l
acqui
ret
hedocument
sandwi
l
lpr
oceedf
urt
her
.

KI
OSKS:

Thesal
est
eam put
supst
all
sinv
ari
ousl
ocat
ionsandpr
ovi
depamphl
etscont
aini
ng
det
ail
saboutv
ari
ouspr
oduct
sandser
vicesofShar
ekhan.
Theyal
soexpl
ainor
all
yto
peopl
ewhoar
eint
erest
ed.

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ES-JSSATEB
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Onl
i
neadv
ert
isi
ng:
Shar
ekhanhaslinkstovar
iouswebsi
test
hroughwhi
chtheymarketthei
rproductsand
ser
vicesi
ethr
oughpop-upwindowsandfl
ashtext
swhichwhencli
ckeddir
ectl
yleadsto
Shar
ekhan’
swebsit
e.

Medi
a:
Shar
ekhanal
sousesadv
ert
isement
sinTVchannel
sli
keCNBC.

Sy
stem :
thi
sconst
it
utesofal
lthet
rai
ninganddev
elopmentsy
stems,
est
imat
ing
budget
sandt
heaccount
ingsy
stem ofshar
ekhan.

St
yle:
Itgener
all
yfol
l
owsdemocr
ati
cfor
m ofl
eader
shi
pwher
ethemanager
s
encouraget
hei
rsubor
dinat
esorempl
oyeest
opar
ti
cipat
ingdeci
sionmaki
ng
process.

St
aff:shar
ekhanv
aluesi
tsempl
oyeesasi
tsasset
sandt
her
efor
ecar
eful
l
ytr
ains
and moti
vates t
hem bygivi
ng t
hem i ncent
ives atregul
ari nterv
als.Tal
ented
employ
eesar eassi
gnedasment
or sandgivenr ealr
esponsi
bil
ityandmov edinto
hi
gherposi
ti
ons.Therear
e35employeesavail
ableint
heorganization

Ski
l
ls:t
het
erm ski
l
lsr
efert
othoseact
ivi
ti
esor
gani
zat
ionsdobestandf
orwhi
ch
theyareknown.Shar ekhani sknownf ori t
stimelyadvice,whi
chitcat
erstoits
customersandi tsboast
sof70%- 90% str
ikeratesinbookingrecommendati
ons.
Some oft he ski
ll
s aretechnicalskill
s,communi cat
ion ski
l
ls,fl
exi
bil
i
ty and
adoptabi
l
ityski
ll
s,anal
yti
calandproblem solvi
ngskil
ls.

Shar
edv
alues:shar
ekhanadopt
sasetofobj
ect
ives,
val
uesandaspi
rat
ionswhi
ch
canmakeal
otofdif
fer
enceinnur t
uri
ngt hecor
por
atecult
ureandrel
ati
onshi
ps.
Someoft
hev
aluesar
eteam spi
ri
t,humil
it
y,adapt
abi
l
ity
,si
mplici
ty,
andopt
imism

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 ORGANI
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Port
er’
sfivefor
cemodelofwi
thspeci
alr
efer
encet
o
or
ganizati
onunderst
udy

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 ORGANI
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ONSTUDYATSHAREKHANLTD

Bar
gai
ningpowerofsuppl
i
ers:
nat
ionalsecur
it
iesdeposi
tor
yli
mit
ed(
NSDL)&cent
raldeposi
tor
yser
vicesl
i
mit
ed
(
CSDL)ar
ether
egul
ator
ybodi
esf
ordeposi
tor
ypar
ti
cipant
sli
keSSKI
,SHCI
L,I
CICI
di
rect
.Com,et
c,al
sot
heser
egul
ator
ybodi
eshav
egotanupperhandast
he
bar
gai
ningpowerst
ockbr
oki
nghousesl
i
keSSKI
,et
c,woul
dbel
ess.

NSE&BSEar
epl
aygr
oundswher
ecommoni
nvent
orsi
nvest
orst
radet
hrough
st
ockbr
oki
nghouses,
forwhi
cht
heyhav
etot
akeper
missi
onf
rom NSE/
BSE.

NSE/
BSEar
eundert
hepur
viewofSEBI
,that
’swhyst
ockbr
oki
nghousesl
i
keSSKI
,
hav
elow bar
gai
ningpower
.Buther
eNSE/
BSEhav
eoneadv
ant
age,t
heycannot
gof
orf
orwar
dint
egr
ati
on.

MCX&NCDEXar
est
ockexchanges,whi
cht
radei
ncommodi
ti
esadder
ivat
ives.
Her
eagai
nst
ockbr
oki
nghouseshav
etof
lowr
ulesadr
egul
ati
onoft
hesame.

Bar
gai
ningpowerofBuy
ers:

Ther
ear
evar
ioust
ypesofi
nvest
orswhot
radet
hroughst
ockbr
oki
nghousesl
i
ke
SSKI
,whi
chi
ncl
udesi
nvest
orsl
i
kesmal
linv
est
orsl
i
kesmal
linv
est
ors,medi
um
networ
thi
nvest
ors,busi
nesspar
tner
s,i
nst
it
uti
onali
nvest
orsandmut
ualf
und
compani
es.

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Her
ethebar
gai
ningpowerofst
ockbr
oki
nghousesdependsonhow bi
gthe
i
nvest
ori
s.Soher
ewecansayt
hatbar
gai
ningpowerofst
ockbr
oki
nghousesi
s
hi
ghi
ncaseofsmal
li
nvest
ors&HUF

Whi
l
ethebar
gai
ningpoweri
smoder
atei
ncaseofHNI(
highnewwor
thi
nvest
ors)
MNI
’
s(medi
um networ
thi
nvest
ors)andbusi
nesspar
tner
s.

Buti
ncaseofmut
ual
fundcompani
esandi
nst
it
uti
onal
inv
est
orsbar
gai
ningpower
i
sless.

Ther
ear
ecompet
it
ivebuzzi
nst
ockbr
oki
ngi
ndust
ry;compet
it
orsar
eof
feri
nlow
br
oker
ageandbestser
viceswi
thaddedf
utur
e.Sot
hebuy
ercaneasi
l
yswi
tch
ov
ert
ocompet
it
orspr
oduct
.

Compet
it
ors:

t
hecompanyi
sfaci
ngt
hecompet
it
ionf
rom l
ocalaswel
lasnat
ionall
evelpl
ayer
s.
Thel
ocalpl
ayer
spr
ovi
def
aci
l
ityf
orof
f-
li
net
radi
ngwhi
l
ethenat
ionalpl
ayer
sli
ke
I
CICI
dir
ect
.com and kot
akst
reet
.com,HDFC secur
it
y pr
ovi
de onl
i
ne t
radi
ng
ser
vices.

Ther
ear
eal
soot
herbi
gnamesl
i
kei
ndi
abul
l
s,mot
il
aloswal
,5pai
saandmar
wadi
,
whi
chenci
rcl
ethecompanyf
rom bot
hthesi
desbypr
ovi
dingonl
i
neandof
f-
li
ne
t
radi
ngwi
thcompet
it
iveser
vices.

Thr
eat
sofnewent
rant
s:

Thepot
ent
ial
ent
rant
sli
kei
nvest
ment
,jeoj
i
tandci
pher
,whi
char
ecomi
ngi
nnear
f
utur
etoRaj
kotci
ty.

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Nati
onal
izedbanksar
eal
sopl
anni
ngt
oent
ert
hisf
iel
dbyt
ypi
ngupwi
thbr
oki
ng
houses,
e.g.
bankofbar
oda.

Thr
eat
sofSubst
it
ues:

Heresubst
it
utesar
esuchi
nst
rument
s,whi
chcanbeusedi
nst
eadofi
nvest
ingi
n
shar
es.

Thei
nst
rument
sli
kebankFD,
insur
ance,
mut
ual
fundsar
ethesubst
it
utes.

I
ftheuseoft
hisi
nst
rument
sincr
easet
hismaybedi
sadv
ant
ageousf
ort
hest
ock
br
oki
nghouses.

Thecompani
esandbanks,
whi
char
ehav
ingt
hesei
nst
rument
s,canpl
ungei
ntot
his
i
ndustr
y.

Ent
rybar
ri
ers:

Hugecapi
tal:capi
tali
snecessar
ynotonl
yforf
ixedf
aci
l
iti
esbutal
sof
or
cust
omer
’scr
edi
tandabsor
bingst
artupl
osses.Tost
artast
ockbr
oki
nghouse,
oneneedshugecapi
tal
fort
echnol
ogyupgr
aduat
ionandski
l
ledmanpower
.

Technol
ogy:t
echnol
ogyf
orst
ockbr
oki
nghousesi
sli
fesav
ingdev
ice.St
ock
br
oki
ngr
equi
reshugecapi
talt
omaket
hei
rpr
oduct
suserf
ri
endl
y,whi
chi
ntur
n
r
equi
rescapi
talt
oempl
oyski
l
ledmanpower
.Thus,
technol
ogycoul
dbeoneoft
he
ent
rybar
ri
ers.

Regul
ator
yconst
rai
nts:
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Obt
aini
ngal
i
censei
stedi
ousj
obf
orast
ockbr
oki
nghouses.I
tshoul
dcompl
y
wi
tht
her
egul
ati
onoft
hegov
erni
ngbodi
esl
i
keSBI
,
NSDL,
etc.f
orast
ockbr
oki
ng
housest
opl
ungei
ntot
hest
ockbr
oki
ngi
ndust
ry,i
tneedst
ohav
esomeki
ndof
f
inanci
albackgr
oundandexper
ti
se.Thus,
regul
ator
sconst
rai
ntscoul
dbeanent
ry
bar
ri
er.

Exper
iencecur
ve:

Thecor
ecompet
encyi
nhi
sindust
ryi
stheser
vices,
whi
char
epr
ovi
dedt
otheend-
user
sandt
her
esear
ch,basedact
ivi
ti
esWhi
chi
ncl
udes“
TIPS’
’fundament
alas
wel
last
echni
cal

scr
iptanal
ysi
s.Al
sot
hemosti
mpor
tantt
hingwhi
chhel
pst
heal
readyest
abl
i
shed
f
ir
msi
s–“
TRUST’
’whi
chpeopl
ewoul
dbehav
ingonf
ir
msl
i
keSSKI
,mot
il
aloswal
,
et
c.whi
chi
sver
ydi
ff
icul
tfornewcompani
est
oimi
tat
e.

Net
wor
k:

t
he“
reach’
’
tot
hecust
omeri
sthekeyf
act
ori
nthei
ndust
ry.Thenet
wor
koft
he
compani
esl
i
kemot
il
aloswal
,shar
ekhanandI
CICIi
sver
yef
fi
cientandspr
eadal
ov
eri
ndi
a.I
twi
l
ltaket
imef
oranewent
rantt
oest
abl
i
shsuchahugenet
wor
k(e.
g.
mar
wadi
),whi
chsay
s.“
net
wor
kcancomeupast
hemostdi
ff
icul
tent
rybar
ri
erst
o
ov
ercome.
’
’

Expect
edr
etal
i
ati
on:

Whenev
eranewpl
ayercomesi
nthei
ndust
ry,t
heol
dcompani
eshav
eanopt
ion
t
oreducet
hepr
icesoft
hei
rpr
oduct
.Thi
ski
ndopr
act
icei
scal
l
edexpect
ed
r
etal
i
ati
on,whi
chi
sal
sopossi
blei
nthei
ndust
ryi
nter
msofl
essbr
oker
ager
ates
andr
educedaccountopeni
ngchar
ges.E.
g.bef
oret
heent
ryofsomanynew
compani
es,shar
ekhanwashav
ingt
wot
ypesofaccount
svi
z.speedt
radeand
speed t
rade pl
us,whi
ch wer
e cost1000 & 1500 accountopeni
ng char
ges
r
espect
ivel
y.butduet
ocompet
it
ion,
theyhav
ecomeupwi
yhonl
yoneaccountIe.
speedt
radepl
uswi
tht
heaccountchar
gesofRs1000.
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CHAPTER-
4

SWOTANALYSI
SOFSHAREKHAN:

STRENGTHS:
Numberoner egist
rarandtransf
eragentanddeal
erofi
nvest
mentpr
oduct
sinI
ndi
a.
Goodco- operati
onbetweenempl oyees.
Costadv antage
Ef
f ect
ivecommuni cati
on
Highresearchanddev elopment
Onlinegr owth

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marketshareleadershi
p
pr
ici
ng
st
rongfinanci
alpositi
on
gr
owt hoftechnologyandawar
eness

uniqueproduct
s
i
ncr easedi
nter
netusage
reputati
onmanagement

WEAKNESS:
Hi
ghempl oyeet
urnov
erlackofawarenessamongcustomersbecauseofnon-
aggressi
vepromoti
onalst
rategi
es(pri
ntmedi
a,newspaper
s,etc.
).
Di
seconomies
Hi
ghempl oyeet
urnov
er
I
nfr
astr
uctur
enotuptothemar k

OPPORTUNI TIES:
Marketi
ngatr ural andsemi-ur
banareas.
Asinterestonfixeddepositswithpostoff
iceandbanksar
eal
lti
mel
ow,
mor
eand
moresmal linvestorsar
eent er
ingi
ntost ockmar
ket
.
Growthoft echnology
Productandsev iceexpansion
I
ncreasei nwealth
Posit
ivemar ketsent i
ments
I
ncreasei nawar enessaboutthestockmar ket

THREATS:

Lackofsuf ficientbranch-off
icesf orspeedydel
iver
yofser
vices.
Increasingnumberofcompet i
tors.
Shar ekhan’ saccept ancebynewcl i
ents.
Cheapert echnol ogy
Economi cslowdown
External char ges(gov ernment ,poli
ti
cs,tax
es,
etc)
Exchanger atesf luct
ions
Pricewar s
Global economi cslowdown
TheI ndiancapi t
al marketisfluctuati
ng

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CHAPTER–5

ANALYSI
SOFFI
NANCI
ALSTATEMENTS

1.Currentrat
io
Cur
rentassetsrat
io Current
= assets
Currentl
iabi
l
iti
es
(
rsi
ncr
ores)

Par
ti
cul
ars 2019 2018
Cur
rentasset
s 75.
24 74.
94
Cur
rentl
i
abi
l
iti
es 34.
31 35.
69
Cur
rentr
ati
o 2.
19 2.
09

cur
rentr
ati
o
2.
2
2.
18

2.
16

2.
14

2.
12

2.
1

2.
08

2.
06

2.
04
2018 2019

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Cur
rentr
ati
odef
inet
heabi
l
ityoft
hef
ir
mtomeeti
scur
rentl
i
abi
l
ity
.Thecur
rentasset
s
shoul
dbesuf
fi
ci
entenought
omeett
hecur
rentl
i
abi
l
iti
es.I
nthey
ear2018,
i
twas2.
09

Andinthey ear2019cur
rentr
ati
owas2.
19i
tisal
way
sbenef
ici
alconsi
der
abl
yhi
gh
cur
rentrat
io.
I
tiscl
earfrom t
hebal
ancesheett
hatt
hef
ir
m hasnodi
ff
icul
tyi
nmeet
ingi
nshor
tter
m
l
i
abil
it
ies.

2.Netpr
ofi
trat
io

Netpr
ofi
trat
io=Netpr
ofi
t/Netsal
esx100

Par
ti
cul
ar 2019 2018
Netpr
ofi
t 2.
46 3.
69
Netsal
es 141.
85 144.
94
Netpr
ofi
trat
io 1.
73 2.
54

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r
etunoni
nvest
ment
30

25

20

15

10

0
2018 2019

Netpr
ofi
trat
io=PBTt
osal
es.Thusi
tdependsont
het
otal
sal
esoft
hecompany
.The
netpr
ofi
trat
iohasdecr
easedf
rom 2.
54t
o1.
73.t
hust
hepr
ofi
thasdecr
easedmar
ginal
l
y.

Ret
urnoni
nvest
ment

Ret
urn on i
nvest
ment = Net pr
ofi
t / Tot
al i
nvest
ment x
100

Par
ti
cul
ar 2019 2018
Netpr
ofi
t 2.
46 3.
69

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Tot
ali
nvest
ment 10.
33 19.
33
Ret
urnoni
nvest
ment 23.
81% 19.
09%

Ret
urnoni
nvest
ment
30

25

20

15

10

0
2019 2018

Ev
erycompany
’spr
ofi
tabi
l
itydependsont
henat
urei
tachi
evesont
het
otali
nvest
ment
i
tmakes.t
husr
etur
noni
nvest
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etobeconsi
der
edt
odet
ermi
nehow wel
lthe
companyi
sdoi
ng.Thecompani
esr
etur
noni
nvest
menthasi
ncr
easedt
remendousl
y
f
rom 19.
09%t
o23.
81%

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Ret
urnonasset
srat
ioRet
urnon

asset
srat
io=Neti
ncome

Av
eraget
otal
asset
s

Par
ti
cul
ar 2019 2018

Neti
ncome 2.
46 3.
69

Av
eraget
otalasset
s 56.
30 55.
37

Ret
urnonasset
srat
io 0.
04 0.
07

Ret
urnonasset
s
0.
08

0.
07

0.
06

0.
05

0.
04

0.
03

0.
02

0.
01

0
2019 2018

Ser
ies1

POSTGRADUATEDEPARTMENTOF
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2018returnonassetsrati
oi s0.
07and2019r et
urnonasset srat
iois0.04,when
comparet ot
he2018ratio,
2019returnonasset
srati
oisdecreased0.03,t
hisr
ati
ois
repr
esentedasaproductofthepr
ofitmargi
nandthetot
alassetstur
nov er
.

CHAPTER–6
LEARNI
NGEXPERI
ENCE
Ihav
elear
nedal
otoft
hingswheniwor
kedi
nShar
ekhanasani
nter
n.Bef
oreIj
oined
Shar
ekhanihadv
eryl
essknowl
edget
hest
ockmar
ketandhow i
tfunct
ions.Il
ear
ned
howst
ocksandcommodi
ti
esar
etr
adedonl
i
neandhowonl
i
net
radi
ngi
scar
ri
edabout
.I
wast
houghthowt
ooper
ateasof
twar
edesi
gnedf
oronl
i
net
radi
ngcal
l
ed‘
TradeTi
ger
’.

Il
ear
nedhowi
mpor
tantbei
ngpunct
ual
tot
heof
fi
cewas.I
nter
ningatShar
ekhangav
eme
anexper
ienceofwor
kingi
nav
eryf
ri
endl
ywor
kenv
ironment
.Al
ltheempl
oyeest
reat
ed
measoneoft
heempl
oyeesandnotasani
nter
norast
udent
.

Il
ear
nedhowt
oint
eractwi
thcl
i
ent
s.Cl
i
entmanagementski
l
l,andI
nShar
ekhanIhav
e
l
ear
nedhow t
omai
ntai
ngoodr
elat
ionswi
tht
hecust
omer
sbygi
vi
ngt
hem t
hepr
oper
ser
viceandsol
vi
ngt
hei
rquer
iesr
egar
dingt
heshar
emar
ket
.Lear
nedaboutv
ari
ous
pr
oduct
susedi
ntheshar
emar
ketespeci
all
yDemataccount
sandMut
ual
Funds.

Lear
nedhowt
ouseonl
i
net
radi
ngt
ermi
nal
.

Enhancedmycommuni
cat
ionandconv
inci
ngski
l
ls.

Lear
nedhowt
otakeappoi
ntment
s.

Lear
nedhowt
oappr
oacht
hecust
omer
s.

Lear
nedt
hev
ari
ouspol
i
ciesoft
hecompany
.

Lear
nedt
omanaget
imepr
oper
ly.

Learnedt
hei
mpor
tanceoft
heExcel
sheet
.Imai
ntai
nedal
lmydai
l
yrecor
dsi
ntheExcel
sheet.

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BI
BLI
OGRAPHY

www.
shar
ekhan.
com
www.
economi
cti
mes.
com
www.
money
cont
rol
.com
www.
bsei
ndi
a.com
www.
nsei
ndi
a.com
www.
sebi
.gov
.i
n
www.
inv
est
ors.
com
www.
inv
est
opedi
a.com

Newspaper
s:-
TheTi
mesofI
ndi
a
TheEconomi
cTi
mes

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Tabl
e5.
1:Bal
anceSheet (
Rs.I
nCr
ores)

Par
ti
cul
a March Mar
ch2018
rs 2019
Sour
cesOfFunds
Equi
tyshar
ecapi
tal 10.
33 10.
33
Reser
ve&sur
plus 41.
74 40.
54
Shar
eAppl
i
cat
ionMoney 0 0
Pr
efer
enceShar
eCapi
tal 0 0
Reser
ves 0 0
Rev
aluat
ionReser
ves 0 0
Networ
th 52.
07 50.
87
Secur
edLoans 4.
24 4.
50
Unsecur
edLoans 0 0
Tot
alDebt 0 0
Tot
alLi
abi
l
iti
es 56.
30 55.
37

Appl
i
cat
ionOfFunds
Gr
ossBl
ock 37.
88 37.
95
Less:
Accumul
ated.Depr
eci
ati
on 22.
82 22.
22
NetBl
ock 15.
06 15.
73
Capi
tal
Wor
kinPr
ogr
ess 0.
28 0.
35
I
nvest
ment
s 0.
03 0.
03
Netcur
rentasset
s
Cur
rentasset
s,l
oans&adv
ances 75.
24 74.
94

Less:curr
entLi
abi
l
iti
es& 34.
31 35.
69
provi
sions
Tot
alNetCur
rentAsset
s 40.
94 39.
25
Tot
alasset
s 56.
30 55.
37

RANGANATHM SRANGANATHM S 1
 ORGANI
SATI
ONSTUDYATSHAREKHANLTD

Tabl
e5.
2:Pr
ofi
tandl
ossaccount (
Rs.I
nCr
ores)

Par
ti
cul
ars Mar
ch2019 Mar
ch2018
I
ncome

Oper
ati
ngi
ncome 145.
94 150.
58

Expensesmat
eri
alconsumed 124.
16 125.
71

Manuf
act
uri
ngexpenses 3.
82 5.
08

Per
sonnel
expenses 5.
15 4.
82

Sel
l
ingexpenses 0 0

Admi
nist
rat
iveexpenses 8.
73 9.
34

Costofsal
es 141.
85 144.
94

Oper
ati
ngpr
ofi
t 4.
09 5.
63

Ot
herr
ecur
ri
ngi
ncome 1.
56 1.
37

Adj
ust
edPBDI
T 5.
64 7.
01

Fi
nanci
alexpenses 0.
26 0.
44

Depr
eci
ati
on 1.
2 1.
15

Adj
ust
edPBT 4.
18 5.
42

Taxchar
ges 1.
71 1.
51

Adj
ust
edPAT 2.
46 3.
9

Nonr
ecur
ri
ngi
tems 0 -
0.21

Ot
hernoncashadj
ust
ment
s 0 0

POSTGRADUATEDEPARTMENTOF
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Repor
tednetpr
ofi
t 2.
46 3.
69

Ear
ningbef
oreappr
opr
iat
ion 9.
14 8.
77

Equi
tyDi
vi
dend 0.
86 1.
29

Ret
ainedear
nings 8.
1 7.
22

POSTGRADUATEDEPARTMENTOF
3

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POSTGRADUATEDEPARTMENTOF
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MANAGEMENTSTUDIES-JSSATEB
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ONSTUDYATSHAREKHANLTD

POSTGRADUATEDEPARTMENTOF
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MANAGEMENTSTUDIES-JSSATEB
 ORGANI
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POSTGRADUATEDEPARTMENTOF
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