Chapter No:01: History of Stock Exchange in India

CHAPTER NO :01
INTRODUCTION
History Of Stock Exchange In India
The Rocky stock exchange was founded by Premchand Roychand, an influential

businessman in the 19th-century Bombay. He made a fortune in the stockbroking
business and came to be known as the Cotton King, the Bullion King or just the Big
Bull. He was also the founder of the Native Share and Stock Brokers Association, an
institution that is now known as the BSE]
While BSE Ltd is now synonymous with Dalal Street, it was not always so. The first
location of the earliest stock broker meetings in the 1850s was in a much more natural
setting — under banyan trees — in front of the Town Hall, where Horniman Circle is
now situated. A decade later, the brokers moved their location to another leafy
setting, this time under banyan trees at the junction of Meadows Street and what then
called Esplanade Road, now Mahatma Gandhi Road. With a rapid increase in the
number of brokers, they had to shift places repeatedly. At last, in 1874, the brokers
found a permanent location, the one that they could call their own. The new place
was, aptly, called Dalal Street (Brokers' Street).
The Bombay Stock Exchange is the oldest stock exchange in Asia. Its history dates
back to 1855, when 22 stockbrokers would gather under banyan trees in front of
Mumbai's Town Hall. The location of these meetings changed many times to
accommodate an increasing number of brokers. The group eventually moved to Dalal
Street in 1874 and became an official organization known as "The Native Share &
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ssStock Brokers Association" in 1875.
On August 31, 1957, the BSE became the first stock exchange to be recognized by
the Indian Government under the Securities Contracts Regulation Act. In 1980, the
exchange moved to the Phiroze Jeejeebhoy Towers at Dalal Street, Fort area. In 1986,
it developed the S&P BSE SENSEX index, giving the BSE a means to measure the
overall performance of the exchange. In 2000, the BSE used this index to open its
derivatives market, trading S&P BSE SENSEX futures contracts. The development of
S&P BSE SENSEX options along with equity derivatives followed in 2001 and 2002,
expanding the BSE's trading platform.
Historically an open outcry floor trading exchange, the Bombay Stock Exchange
switched to an electronic trading system developed by CMC Ltd. in 1995. It took the
exchange only 50 days to make this transition. This automated, screen-based trading
platform called BSE On-Line Trading (BOLT) had a capacity of 8 million orders per
day. Now BSE has raised capital by issuing shares and as on 3 May 2017 the BSE
share which is traded in NSE only closed with Rs.999 .
The BSE is also a Partner Exchange of the United Nations Sustainable Stock
Exchange initiative, joining in September 2012.
BSE established India INX on 30 December 2016. India INX is the first international
exchange of India.[12]
BSE launches commodity derivatives contract in gold, silver
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Organization of the BSE
The day to day functioning of the BSE is managed by a Board of Directors. It consists
of a Managing Director as well as a Chairman along with Public Interest and
Shareholders Directors. They form the rules and policies with respect to the trading of
shares and securities, commodities, derivatives, etc. on the stock exchange
Importance of the BSE
The Bombay Stock Exchange is the oldest stock exchange in Asia. It has played a
very large part of India‘s economy over the last two decades. It has involved India‘s
growing middle class and turned savings to investment. It has a large hand in the
rapid growth of India‘s GDP from 2002 to 2007.
It has also contributed to bringing technology into the financial sector. It introduced
BOLT (BSE online trading system) in 1995 to promote transparency and eliminate
any errors. And then came the dematerialization of shares in 2015. Here, shareholders
convert their physical shares to electronic balances linked to their Demat accounts.
The BSE has also taken many initiatives to educate and train investors and traders.
The idea is to provide maximum investor protection. So the investors need to be
educated and rely on solid analysis rather than only speculative actions.
Stock market in Mumbai
The Bombay Stock Exchange (BSE) is an Indian stock exchange located at Dalal
Street, Mumbai.
Established in 1875, the BSE (formally known as Bombay Stock Exchange Ltd.) is
Asia's oldest stock exchange. The BSE is the world's 10th largest stock exchange with
an overall market capitalization of more than $2.2 trillion on as of April 2018
Mumbai is the commercial and financial capital city of the Indian state of
Maharashtra. Its the most populous and the richest city in India. Also it has the
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highest GDP of any city in South, West or Central Asia as it generates 6.16% of the
total GDP.
Mumbai is the the headquarters of many of India's premier financial institutions such
as the Reserve Bank of India, the Bombay Stock Exchange (BSE), the National Stock
Exchange (NSE), the SEBI and the corporate headquarters of numerous Indian
companies and multinational corporations. The city also houses India's premier
scientific and nuclear institutes like BARC, NPCL, IREL, TIFR, AERB, AECI, and
the Department of Atomic Energy. Mumbai is also a centre of the India's Hindi
(Bollywood) and Marathi film and television industry.
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An Overview of Capital Market In Mumbai
The mumbai capital market has been consistently recording growth. The total value
of Shares traded in BSE and NSE (the Stock exchange in Mumbai) reached a
growth of 1,929.32 billion in the year 2012 42.11 million Transactions were
executed during the same period, which is 2012. At the end of the year 2012 All
Share Index closed at a level of 6,801.22 points compared to 6,417.73 points for the
previous year, recording a gain of 383.49 points or 5.98 percent. Further, the total
market capitalization by the end of the year 2012 rose to SR 1,400.34 billion (US$
373.42 billion), which is an increase of 10.19% from the previous year.
below is the List of brokerage firms in Mumbai, India. This list includes popular
national level broking company's who gives highest turnover in India's national stock
exchanges (i.e. BSE, NSE, MCX) and have a good network of branches around the
city. Most of these brokers provide wide range of financial services and have multiple
offices, branches or sub-broker offices across Brokerage city
a. ICICI Direct (ICICI Securities)
b. Share khan
c. HDFC securities
d. 5paisa
e. Kotak securities
f. Axis direct
g. Zerodha
h. Motilal oswal
i. Angel broking
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Establishment of SEBI (Securities and Exchange Board of India)
Until the late 1980s, BSE was operating with low transparency and unreliable
settlement and clearing systems.
Towards the top of the 1980s, new economic forces, the economic process, and the
currency crisis emphasized the requirement for modernization of the economic
system.
The government created the Securities and Exchange Board of India (SEBI) in 1988
Establishment of NSE (National Stock Exchange)
In April 1992, the Bombay Stock Exchange crashed because of Harshad Mehta Scam.
Therefore that time present finance minister of India Dr. Manmohan Singh urged the
requirement of other Stock Exchange in competition to BSE.
He tapped the industrial Development Bank (IDB) to take the lead of the project of
making competition for BSE.
In November 1992, NSE (National stock exchange) was established as a first

electronically traded Stock Exchange in India.After a couple of years of operations,
the NSE has become the biggest stock market in India
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INVESTORS PREFERENCE IN STOCK MARKET
Though most of the investors want a safe and secure return on their investment, they
also look for maximum returns. The pure debt investment brings an average return
with lesser liquidity as compared to the equity investments. So in search of higher
return (keeping the risk factor in mind) investor are a heading towards equity
investment on analysis of recent year investment trends, FII, entrance and operations
in Indian stock markets, it has been found that equity I gaining ground in India. The
main attraction of equity among investors are1. Higher return (especially I case of
capitalization and dividend if any)
2. Higher Liquidity
3. Option to start trading with small investments
4. Daily trading (as it increase chances of more ―buy or sell‖ transaction which leads
to fast profits/loss generation) With these benefits, equity has a risk factor of poor
dividend payout (as against fixed ―interest‖ income in debt) or the negligible
capitalization. Moreover, sometime the investment in equity trading goes to bottom
level and nothing is expected in return. Still, the attraction of equity remains high in
investors mind become of ―return &liquidity factor. And this perception has leaded
the investment trends from debt to equity and portfolio investment.
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INVESTMENT ALTERNATIVE
There is a wide of range of investment alternative available to an investor in Indian

stock market.
These may be classified as shown in
NON- MARKETABLE FINANCIAL ASSETS: A good portion of financial assets is
represented by non marketable financial assets. These can be classified into the
following broad.
a. Bank deposits
b. Post office deposits
c. Company deposits
d. Provident fund deposits
EQUITY SHARES: Equity shares represent ownership capital. As an equity
shareholder,
you have an ownership stake in the company. This essentially means that you have a
residual
interest in income and wealth.
a. Blue chip shares
b. Growth shares.
c. Income shares
d. Cyclical shares
e. Speculative shares
BONDS: Bonds or debentures represent long terms debt instruments.
a. Government Securities
b. Savings bonds
c. Government agency securities
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d. PSU bonds
e. Debentures of private sector companies
MONEY MARKET INSTRUMENTS: Debt instruments which have a maturity of
less than one year at the time of issue are called money market instruments.
a. Treasury bills.
b. Commercial paper
c. Certificates of deposit
MUTUAL FUNDS: Instead of directly buying equity shares and/or fixed income
instruments, you can participate in various schemes floated by mutual funds.
a. Equity schemes
b. Debt Schemes
c. Balanced schemes
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CERTAIN CONCEPT PRTAINING TO SUBJECT MATTER
1. FIRM BROKERS: Brokerage firms are financial institutions that help you buy
and sell securities. They act as the middle man between the buyer and the seller.
Depending on the brokerage firm type you choose, you can either make your buys
and sales via telephone, internet, or smartphone. Brokerage firms generally charge
per buy or sell order with assisted telephone orders being more expensive.
2. BROKERAGE: The amount of money that a broker charges.They charged
brokerage of around 10%.
3. DEMAT ACCOUNT::is an account that is used to hold shares and securities
in electronic format. The full form of Demat account is a dematerialised account. The
purpose of opening a Demat account is to hold shares that have been bought or
dematerialised (converted from physical to electronic shares), thus making share
trading easy for the users during online trading.
a. OPENING OF DEMAT ACCOUNT
Demit account allows you to buy,sell and transact shares without the endless
paper works and delays it is also safe,secure and convenient
Eg-say our portfolio has 100 of satyam,50 of Castrol,20 of icici bank,50 of
tech Mahindra, 100 of tcs shares.all these will show in our demit account so
we don‘t have to process in physical certificates showing that we own these
shares.they are all held electronically in our account
b. PROCESS OF PURCHASING DEMAT ACCOUNT
The process for purchasing demat securities is also similar to the process of
buying physical securities
1. Investor instructs DP to receive credits into his account in the
prescribed form.they may be one at a time or many
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2. Investors purchase securities in any of the stock exchanges linked to
depository through a broker
3. Broker receive payments from investors and arranges payment
clearing corporations
4. Broker gives instruction of DP to debit clearing account and credit
clients account.investors receive shares into his account by way of book
entry
c. PROCESS OF SELLING DEMIT ACCOUNT
The processof selling demat securities in stock exchange is similar as selling
physical securities the only major difference is that instead of delivering
physical securities to the broker, the investor instructs his DP to debit his
DEMAT account with the number of securities sold by him and credit the
brokers clearing account. The process for selling Dematerialized account
given below.
1. Investor sells securities in any of the stock exchanges links to depository
through a broker.
2. Investor instructs his DP to debit his demat account with the number of
securities sold and credit the brokers clearing account.
3. Before the pay-in-day, broker of the investor transfer the securities to
clearing corporation.
4. Broker receives payment from the stock exchange.
5. The investors receive payment from the payment for sell of securities in
the same manner as received in case of sell of physical securities.
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4. FINANCIAL SECURITIES: also referred to as financial instruments or
financial assets, is a generic term used to describe stocks, bonds, money market
securities (e.g., treasury bills), and other instruments representing the right to receive
future benefits under a set of stated conditions.
5. STOCK MARKET: refers to the collection of markets and exchanges where
regular activities of buying, selling, and issuance of shares of publicly-held
companies take place. Such financial activities are conducted through
institutionalized formal exchanges or over-the-counter (OTC)
6. RETURN ON INVESTMENT: measures the gain or loss generated on an
investment relative to the amount of money invested. ROI is usually expressed as a
percentage and is typically used for personal financial decisions, to compare a
company's profitability or to compare the efficiency of different investments.
7. SERVICE QUALITY: Service quality has been defined as the degree and
direction between the consumer service expectations and the perceptions. Perceived
service quality was defined as the evaluation of the service across the episodes when
compared to some explicit or implicit standard. Further, it can be seen as how well a
service satisfied the expectations of consumers
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WHY DO INVESTORS BUY STOCKS
Generally investors buys stock because they believe that the company will continue to
grow andthus the value of stock will rise too
Buying the stocks of already well known companies is relatively safe but investors
who acquire stock in anew company are facing a much more substantial risk but they
have much more to gain too for instance those people who brought Microsoft shares
in the 80s and kept them for along time saw an exponential rise in their value-
something most investors only dream of
.
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TRAINNING PROCEDURE ON STOCK EXCHANGE:
1. Selection of a broker:
The buying and selling of securities can only be done through SEBI registered
brokers who are members of the Stock Exchange. The broker can be an individual,
partnership firms or corporate bodies. So the first step is to select a broker who will
buy/sell securities on behalf of the investor or speculator.
2. Opening Demat Account with Depository:

Demat (Dematerialized) account refer to an account which an Indian citizen must
open with the depository participant (banks or stock brokers) to trade in listed
securities in electronic form. Second step in trading procedure is to open a Demat
account.
The securities are held in the electronic form by a depository. Depository is an
institution or an organization which holds securities (e.g. Shares, Debentures, Bonds,
Mutual (Funds, etc.) At present in India there are two depositories: NSDL (National
Securities Depository Ltd.) and CDSL (Central Depository Services Ltd.) There is no
direct contact between depository and investor. Depository interacts with investors
through depository participants only.
Depository participant will maintain securities account balances of investor and
intimate investor about the status of their holdings from time to time.
3. Placing the order

After opening the Demat Account, the investor can place the order. The order can be
placed to the broker either (DP) personally or through phone, email, etc Investor must
place the order very clearly specifying the range of price at which securities can be
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bought or sold. e.g. ―Buy 100 equity shares of Reliance for not more than Rs 500 per
share
4. Executing the Order:

As per the Instructions of the investor, the broker executes the order i.e. he buys or
sells the securities. Broker prepares a contract note for the order executed. The
contract note contains the name and the price of securities, name of parties and
brokerage (commission) charged by him. Contract note is signed by the broker.
5. Settlement:
a) On the spot settlement
It means settlement is done immediately and on spot settlement follows. T + 2
rolling settlement means trade taking place on Monday settles on Wednesday
b) Forward settlement Settlement will take place on future date it can be T+5 orT+7
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History of Stock brokers
Stock brokerage firms have been an established feature in the financial industry for
nearly one thousand years. Dealing in debt securities, brokers employ a variety of
systems to aid investors with the purchase and sales of stocks and bonds in a variety
of markets. The firms have changed over the years, growing to massive organizations
that can affect the entire financial sector positively or negatively with their
performance. Changing with the times, the early twenty-first century saw a rise of
online trading that enabled the average investor to take part in the stock market for
the first time.
During the eleventh century, the French began regulating and trading agricultural
debts on behalf of the banking community, creating the first brokerage system. In the
1300s, houses began to be set up in major cities like Flanders and Amsterdam in
which commodity traders would hold meetings. Soon, Venetian brokers began to
trade in government securities, expanding the importance of the firms. In 1602, the
Dutch East India Company became the first publicly traded company in which
shareholders could own a portion of the business. The stocks improved the size of
companies and became the standard bearer for the modern financial system.
The earliest brokerage firms were established in London coffee houses, enabling
individuals to purchase stocks from a variety of organizations. They formally founded
the London Stock Exchange in 1801 and created regulations and memberships. The
system was copied by brokerage firms across the world, most notably on Chestnut
Street in Philadelphia. Soon, the U.S. exchange was moved to New York City and
various firms like Morgan Stanley and Merrill Lynch were created to assist in the
brokering of stocks and securities. The firms limited themselves to researching and
trading stocks for investment groups and individuals.
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There are two types of stock brokers in India:
1. Full-service brokers (Traditional Broker)
2. Discount brokers (Budget brokers)
Full-Service Brokers (Traditional Brokers)

They are traditional brokers who provide trading, research, and advisory facility for
stocks, commodities, and currency. These brokers charge commissions on every trade
their clients execute as a percentage of each trade executed. They also facilitate
investing in Forex, Mutual Funds, IPOs, FDs, Bonds, and Insurance.
Few examples of full-time brokers are ICICI Direct, Kotak Security, HDFC Sec,
Share khan, Motilal Oswal etc.
Discount Brokers (Budget Brokers)

Discount brokers just provide the trading facility for their clients. They do not offer
advisory and suits for a ‗do-it-yourself‘ type of clients. They offer low brokerage,
high speed and a decent platform for trading in stocks, commodities and currency
derivatives. A few examples of discount brokers are Zerodha, ProStocks, RKSV,
Trade Smart Online, Achiievers, SAS online etc
Distinguish between full service and discount brokers

Particulars Full service brokers Discounted brokers
Brokerage They charge commission They offer a flat fee on
in percentage terms of each trade executed.
each trade executed.
Brokerage rates Typically between 0.3 to Generally Rs 20 per
0.7% trade.
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Primary Service They provide trading They only provide a
platform along with trading platform (no
advisory for investment. investment advisory
provided).
Suitable for Full service brokers suit The discount broker is
those who want advisory suitable for those who
for their investment. research on their own or
have a financial advisor.
Other Facilities Besides stocks, Only stock, commodities
commodities & & current trading
currencies, other facilities available
offered are forex, mutual
funds, IPOs, FDs, bonds,
insurance, etc
Examples/ Top Brokers ICICI Direct, HDFC sec, Zerodha, Prostocks,
Kotak securities, RKSV, Trade smart
Sharekhan, Motilal online, Tradejini, SAS
Oswal, Angel Broking, online etc
Axis direct, Edelweiss,
Aditya Birla money etc
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TOP 5 BROKRAGE FIRMS IN MUMBAI
1. ANGEL BROKING
An Indian stockbrokerage firm established in 1987. The company is a member of the
Bombay Stock Exchange (BSE), National Stock Exchange of India (NSE), National
Commodity &Derivatives Exchange Limited (NCDEX) and Multi Commodity
Exchange of India Limited (MCX). It is a depository participant with Central
Depository Services Limited (CDSL).The company has 8500+ sub-brokers and
franchisee outlets in more than 900 cities across India. The company financial
services Their services include online stock broking, depository services, commodity
trading and investment advisory services. Wealth Management solutions such as
personal loans and insurance are also delivered by this company. In 2006, the
company started it‘s Portfolio Management Services (PMS), IPOs business and
Mutual Funds Distribution (MFD) arm. The company publishes research reports on
areas related to investment broking.
Awards and recognition

a) 2009 - 'Broking House with Largest Distribution Network' Award and 'Best Retail
Broking House' Award at BSE IPF-D&B Equity Broking Awards
b) 2012 - BSE IPF-D&B Equity Broking Award for ‗Best Retail Broking House‘
c) 2012-13 - Among BSE Top 10 Performers in Equity Segment (Retail Trading) FY
2012-13
d) 2013 - BSE-IPF D&B Equity Broking Award for ‗Broking House with Largest
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Distribution Network‘
e) 2013 - BSE-IPF D&B Equity Broking Award for 'Best Retail Equity Broking
House'
f) 2013-14 - Awarded ‗Top Three Clients Traded Members in Equity‘ by the BSE
g) 2014 - BSE-IPF D&B Equity Broking Award for ‗Broking House with Largest
Distribution Network‘
h) 2014 - Global Marketing Excellence Award for 'Best Mobile trading
Future plans and projects

Angel Broking has released a new brokerage plan: Angel iTrade Prime plan, where
you can avail zero brokerage on delivery trades along with a flat rate of Rs 20 per
order for intraday, F&O, currency and commodity trading.
Angel Broking launched its campaign titled: ‗Aage Badhne ka Smart Sauda.‘ This
campaign, popularly called the ‗Smart Sauda‘ campaign, showcases a unique flat rate
brokerage structure plan called: Angel iTrade Prime. The key features of this plan are
as follows:
1. Zero brokerage on delivery trades for lifetime.
2. Zero hidden charges.
3. Flat rate of Rs 20 per order for intraday, F&O, currency and commodity trading.
Understanding the Angel iTrade Prime plan: Unlike other plans, where you are
charged a percentage of your trading turnover, the Angel iTrade Prime plan has a flat
brokerage rate. This simply means that irrespective of the trading value, you will be
charged a fixed amount. It is a win-win situation for existing and first-time investors
as one gets the services of a full-time broker at nominal cost
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SWOT ANALYSIS
SWOT analysis of Angel Broking analyses the brand/company with its strengths,
weaknesses, opportunities & threats. In Angel Broking SWOT Analysis, the strengths
and weaknesses are the internal factors whereas opportunities and threats are the
external factors.
SWOT Analysis is a proven management framework which enables a brand like Angel
Broking to benchmark its business & performance as compared to the competitors and
industry. As of 2020, Angel Broking is one of the leading brands in the banking &
financial services sector.
Strengths
a) Innovative range of financial products
b) Known for transparent functioning
c) Innovative I. T solutions for customers
d) Emphasis on building stronger bond with customers
e) services offered include Equity Trading, Commodities, Portfolio
Management Services, Mutual Funds, Life Insurance, IPO, Depository Services,
Investment Advisory
Weakness
a) Less penetration in rural areas
b) Indians are mostly conservative and prefer investing in Gold and land
Opportunities
a) High purchasing power and people looking to more investment opportunities
b) Growing rural market
c) Earning Urban Youth
Threats
a) Stringent Economic measures by Government and RBI
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b) Entry of foreign finance firms in Indian Market
MANAGEMENT TEAM
Name Position
DineshThakkar (CMD)
Mr. Rajiv Phadke (HR & Corporate

Communications)
Mr.AmitMajumdar (Finance& Operations)
Mr. VinayAgrawal (Equities
Broking)
Mr. Nikhil Daxini (Sales & Marketing)
Mr.HitungshuDebnath (Distribution & WMS)
Dr.MuditKulshreshtha (Business Intelligence&

Analytics)
Mr. Adil Kasad (CFO)
Mr. Santanu Syam (Operations)
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2. HDFC SECURITIES
Limited is a financial services intermediary and a subsidiary of HDFC Bank, a private
sector bank in India . It is one of the leading stock broking companies in India and has
completed 19 years of operation. HDFC securities was founded in the year 2000 and is
headquartered in Mumbai with branches across major cities and towns in India.
HDFC securities began operations in April 2000. In the beginning it was a joint
venture between HDFC Bank Limited, HDFC Limited and Indocean eSecurities
Holdings Limited.
Along with offering stock broking services, HDFC securities is also a distributor of
financial products. In 2006, HDFC Bank bought HDFC Ltd's stake and in 2008
acquired another 4% from Indocean eSecurities. Currently HDFC securities is a
subsidiary of HDFC Bank.
a. 2017:Winner in "Retail Broking" category by Outlook Money
b. 2016: Runner up in the "Best e-brokerage House" category by Outlook Money
c. 2015: Runner up in the "Best e-brokerage House" category by Outlook Money
d. 2014: Zee Business – India's Best Market Analyst Award 2014 under Equity
Banking
e. 2014: "Best Financial Markets Technology Implementation of the Year" award by
The Asian Banker
f. 2013: Runner up in the "Best e-brokerage House" category by Outlook Money
g. 2012: Runner up in the "Best e-brokerage House" category by Outlook Money
h. 2011: "Largest e-brokerage house" by BSE-Dun & Bradstreet
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i. 2010: Runner up in the "Best e-brokerage House" category by Outlook Money[
Global investing
Indian investors are constrained to local markets as investing in global markets
involves expenses and cumbersome processes, enabling only ultra-HNIs and
institutions to benefit from cross border investing,‖ according to HDFC Securities.
The brokerage house believes that through GlobalInvesting.in, investing in the US
markets will be almost as easy as investing in local Indian markets. An entire investing
pipeline has been created from US-brokerages, clearing services, custodians, ideation,
execution and portfolio monitoring. On the US side, DriveWealth LLC, a modern
brokerage and clearing services firm with fintech roots, has been brought in as a
partner, creating an entirely digital process.
Nandkishore Purohit, head – digital strategy and analytics, HDFC securities, said,
―While portfolio diversification is one of the fundamental survival trick in any market,
with GlobalInvesting.in, we are looking to give our investors the extra edge through
international investing opportunities.‖ Stockal is a New York-headquartered financial
services company that helps investors to make investments around the world,
irrespective of where they live. Stockal is currently on-boarding investors from
emerging economies like India and the Middle East and will soon launch in Indonesia,
Malaysia and Brazil, according to the company‘s website.
Swot analysis
SWOT analysis is a vital strategic planning tool that can be used by HDFC Bank
Limited managers to do a situational analysis of the firm . It is an important technique
to map out the present Strengths (S), Weakness (W), Opportunities (O) & Threats (T)
HDFC Bank Limited is facing in its current business environment.
The HDFC Bank Limited is one of the leading organizatations in its industry. HDFC
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Bank Limited maintains its dominant position in market by critically analyzing and
reviewing the SWOT analysis. SWOT analysis a highly interactive process and
requires effective coordination among various departments within the company such
as – marketing, finance, operations, management information systems and strategic
planning.
Strengths
a. Superb Performance in New Markets – HDFC Bank Limited has built expertise at
entering new markets and making success of them. The expansion has helped the
organization to build new revenue stream and diversify the economic cycle risk in
the markets it operates in
b. Strong distribution network – Over the years HDFC Bank Limited has built a
reliable distribution network that can reach majority of its potential market.
c. Strong Free Cash Flow – HDFC Bank Limited has strong free cash flows that
provide resources in the hand of the company to expand into new projects.
d. Strong dealer community – It has built a culture among distributor & dealers
where the dealers not only promote company‘s products but also invest in training
the sales team to explain to the customer how he/she can extract the maximum
benefits out of the products.
e. Automation of activities brought consistency of quality to HDFC Bank Limited
products and has enabled the company to scale up and scale down based on the
demand conditions in the market.
f. Highly skilled workforce through successful training and learning programs.
HDFC Bank Limited is investing huge resources in training and development of its
employees resulting in a workforce that is not only highly skilled but also
motivated to achieve more.
g. Highly successful at Go To Market strategies for its products.
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h. Reliable suppliers – It has a strong base of reliable supplier of raw material thus
enabling the company to overcome any supply chain bottlenecks.
Weakness
a. Financial planning is not done properly and efficiently. The current asset ratio and
liquid asset ratios suggest that the company can use the cash more efficiently than
what it is doing at present
b. Limited success outside core business – Even though HDFC Bank Limited is one
of the leading organizations in its industry it has faced challenges in moving to
other product segments with its present culture.
c. Investment in Research and Development is below the fastest growing players in
the industry. Even though HDFC Bank Limited is spending above the industry
average on Research and Development, it has not been able to compete with the
leading players in the industry in terms of innovation. It has come across as a
mature firm looking forward to bring out products based on tested features in the
market.
d. Days inventory is high compare to the competitors – making the company raise
more capital to invest in the channel. This can impact the long term growth of
HDFC Bank Limited
e. The profitability ratio and Net Contribution % of HDFC Bank Limited are below
the industry average.
f. Not very good at product demand forecasting leading to higher rate of missed
opportunities compare to its competitors. One of the reason why the days
inventory is high compare to its competitors is that HDFC Bank Limited is not
very good at demand forecasting thus end up keeping higher in
g. The marketing of the products left a lot to be desired. Even though the product is a
success in terms of sale but its positioning and unique selling proposition is not
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clearly defined which can lead to the attacks in this segment from the
competitors.ventory both in-house and in channel.
Opportunities
a. Organization‘s core competencies can be a success in similar other products field.
A comparative example could be - GE healthcare research helped it in developing
better Oil drilling machines.
b. The new taxation policy can significantly impact the way of doing business and
can open new opportunity for established players such as HDFC Bank Limited to
increase its profitability.
c. New trends in the consumer behavior can open up new market for the HDFC Bank
Limited . It provides a great opportunity for the organization to build new revenue
streams and diversify into new product categories too.
d. New environmental policies – The new opportunities will create a level playing
field for all the players in the industry. It represent a great opportunity for HDFC
Bank Limited to drive home its advantage in new technology and gain market
share in the new product category.
e. New customers from online channel – Over the past few years the company has
invested vast sum of money into the online platform. This investment has opened
new sales channel for HDFC Bank Limited. In the next few years the company can
leverage this opportunity by knowing its customer better and serving their needs
using big data analytics.
Threats
a. The demand of the highly profitable products is seasonal in nature and any
unlikely event during the peak season may impact the profitability of the
company in short to medium term.
b. New technologies developed by the competitor or market disruptor could be a
27
serious threat to the industry in medium to long term future.
c. No regular supply of innovative products – Over the years the company has
developed numerous products but those are often response to the development
by other players. Secondly the supply of new products is not regular thus
leading to high and low swings in the sales number over period of time.
d. Rising raw material can pose a threat to the HDFC Bank Limited profitability.
e. Imitation of the counterfeit and low quality product is also a threat to HDFC
Bank Limited‘s product especially in the emerging markets and low income
markets.
f. Increasing trend toward isolationism in the American economy can lead to
similar reaction from other government thus negatively impacting the
international sales.
g. Intense competition – Stable profitability has increased the number of players
in the industry over last two years which has put downward pressure on not
only profitability but also on overall sales.
h. Shortage of skilled workforce in certain global market represents a threat to
steady growth of profits for HDFC Bank Limited in those markets
28
MANAGEMENT TEAM
NAME POSITION
Dhiraj relli managing director and CEO
director
Bharat Dhirajlal Shah
director
Jagdish Capoor
director
Ashish Kamalkishore Rath
director
Abhay Aima
29
3. KOTAK SECURITIES
operates as a bank. The Bank offers brokerage options, asset classes, trading tools,
various account types, and other value added features. Kotak Securities serves
customers in India
While we strongly believe that our work speaks for itself, it is always a pleasure to be
recognized by the industry as leaders in our field.
The awards we win will only strengthen our humility and our resolve to offer nothing
but the best service to the people who matter the most – our customers.
a) Best Broker by FinanceAsia Country Awards, 2019
b) Gold at ACEF for Email marketing & successful use of technology
c) Silver at ACEF for Data driven marketing & successful of technology
d) Bronze at IAMAI, 2018 in the category ―Best Omni Channel Campaign
Management and Marketing automation‖
e) Awarded ―Early adopter of Analytics‖ at Machine learning conference 2018 for
using Analytics extensively in client management
f) Award for Highest AUM in ETF category awarded by Kotak AMC
g) Best Brokerage India 2018 – by Triple A Asset Country Awards in the Best
Advisors South Asia Category
h) Best Retail IPO Bidding Member, 2018 by NSE
i) NSDL Star Performer Award in category ―Top Performer in New Accounts
Opened – (Non- Bank) – 1st Position 2015, 2016, 2017 and 2018
j) Best Local Brokerage and Best Overall Country Research, 2016 by Asia Money
Brokers Poll
30
k) Smart Order Routing has been awarded with Finnoviti 2015 by Banking Frontiers
l) Best Broker in India, FinanceAsia Country Awards for Achievement 2015 & 2014
m)Best Broker in India, FinanceAsia Country Awards for Achievement 2014
Swot analysis
SWOT analysis of Kotak Mahindra analyses the brand/company with its strengths,
weaknesses, opportunities & threats. In Kotak Mahindra SWOT Analysis, the
strengths and weaknesses are the internal factors whereas opportunities and threats
are the external factors.
SWOT Analysis is a proven management framework which enables a brand like
Kotak Mahindra to benchmark its business & performance as compared to the
competitors and industry. As of 2020, Kotak Mahindra is one of the leading brands in
the banking & financial services sector.
Strengths
a) Innovative financial products of diverse categories
b) Kotak Mahindra Finance Ltd. is the first company in the Indian banking
history to convert to a bank
c) Comprehensive Cash Management System
d) Has over 20,000 employees
e) Customer account base of over 2.7 million
Weaknesses
a) Lesser penetration as being late entrants
b) Low publicity and marketing as compared to other premium banks in the
urban areas
Opportunities
a) Increase in Industry banking
31
b) Explore opportunities abroad by International banking
Threats
a) Economic slowdown
b) Highly competitive environment
c) Stringent Banking Norms
MANAGEMENT TEAM
Name Position
JAIDEEP HANSRAJ Managing Director
FALGUNI SANJAY Director
NAYAR
NARAYAN
SUBRAMANIAM Director
AYYPANKAV
NOSHIR RUSTOM Director
DASTUR
KRISHNAN VENKAT Director
SUBRAMANIAN
RAVI NATHAN IYER Managing Director
32
4. MOTILAL OSWAL
an Indian diversified financial services firm offering a range of financial products and
services. The company was founded by Motilal Oswal and Raamdeo Agarwal in
1987
The company is listed on BSE and NSE stock exchange

For his work and contribution to the capital markets, Oswal has received several
awards including
a) Mr. Motilal Oswal, Chairman & MD is awarded as Outstanding Institution Builder
of the year in The AIMA Managing India Awards
b) Special Contribution award to Indian Capital Markets‘ Award by Zee Business
c) The Hall of Fame for Excellence in Franchising‘ by Franchising World Magazine
d) Champion of Arthshastra‘ by the Rotary Club
e) Oswal has received the Rashtriya Samman Patra [12] awarded by the Government
of India for being amongst the highest income taxpayers in the country for a period
of 5 years from FY95–FY99.
f) Oswal is associated with various social organisations. He is the President of the Jain
International Trade Organisation (JITO) [13] and a Trustee of "Agarwal-Oswal
Chhatravas" of the Rajasthan Vidyarthi Griha; among others [14]
g) He has authored two books of quotations on ‗The Essence of Business &
Management‘ and ‗The Essence of Life‘.
33
Motilal Oswal Real Estate , the real estate investment arm of Motilal Oswal Private
Equity Advisors Pvt. Ltd (MOPE), has invested 518 crore across nine deals, mostly in
residential projects, a senior executive said.
The investment comes at a time when the housing sector is facing a slowdown in sales
and a squeeze in liquidity from non-bank lenders.
The investments have been made from MOPE‘s Indian Realty Excellence Fund or
IREF-IV. The fund, which invests in mid-income residential projects and selectively in
mid-sized commercial office projects, is in the last lap of raising capital. It has
raised 1,100 crore since it was launched in mid-2018, largely from high-networth
investors and family offices, and is expected to make a final close at 1,200 crore next
month.
Swot analysis
Swot analysis of Motilal Oswal Financial Services analyses the brand/company with its
strengths, weaknesses, opportunities & threats. In Motilal Oswal Financial Services
SWOT Analysis, the strengths and weaknesses are the internal factors whereas
opportunities and threats are the external factors.

Motilal Oswal Financial Services to benchmark its business & performance as
compared to the competitors and industry. As of 2020, Motilal Oswal Financial
Services is one of the leading brands in the banking & financial services sector.
Stength
a) Wide range of financial products and focus on premium traders Emphasis is on
efficient execution of trades
b) Strong private equity operations
34
c) Have over 1500 offices in India
d) Financial products and services such as Wealth Management, Broking &
Distribution, Commodity Broking, Portfolio Management Services, Institutional
Equities, Private Equity, Investment Banking Service
Weaknesses
a) Less penetration in developing cities
b) Lack of advertising causes low awareness amongst investors
Opportunities
a) Growing rural market
b) Earning Urban Youth looking for investments
Threats
a) Stringent Economic measures by Government and RBI
b) Entry of foreign finance firms in Indian Market
MANAGEMENT TEAM
NAME POSITION
Mr.Motilal Oswal chairman and MD

Mr.rammdeoAgrawal Non-Executive director
Mr. Navin Agarwal Non-Executive Director
Mr. Ashutosh maheswari CEO-MOIA
Mr.VishalTulsya CEO-MOVC
35
5. SHARE KHAN
is the 5th largest retail brokerage firm in India in terms of customer base Sharekhan is
one of the pioneers of online trading in India. It offers a broad range of financial
products and services including securities brokerage, mutual fund distribution, loan
against shares, ESOP financing, IPO financing and wealth management.
Sharekhan was founded by Mumbai-based entrepreneur Shripal Morakhia in 2000.

Share khan pioneered the online retail brokerage industry and leveraged on the first
wave of digitization, when dematerialization (demit) of securities came into effect
and electronic trading was introduced in the stock exchanges
In India, Share khan has 4800+ employees, and is present in over 575 cities through
153 branches, and more than 2,500 business partners. The company has 1.4 million
customer base and on an average, executes more than 4 lakh trades per day.
Share khan is now a fully owned subsidiary of BNP Paribas, it was rebranded as
Share khan by BNP Paribas.
A rated among top among 20 wired companies along with reliance ,Infosys etc by
―business today‖,January 2004 edition
Awarded ―top domestic house‖four times by euro money and asia money
Winner of ―best financial website‖award
Indias most preferred broker within 5years ‗awaz customer award 2005‘
Sharekhan, the largest standalone broking firm in India, plans to double its customer
36
base from the current 1.4 million in the next five years.
The company commands 6 per cent market share in the 25-million strong online
customer segment.
Sharekhan, incorporated in 2000, pioneered the online retail broking industry and
leveraged on the first wave of digitisation when dematerialisation of shares took off
in 2002. In terms of cash market volumes, it has a market share of 4.2 per cent.
SWOT ANALYSIS
SWOT analysis of ShareKhan analyses the brand/company with its strengths,
weaknesses, opportunities & threats. In ShareKhan SWOT Analysis, the strengths
and weaknesses are the internal factors whereas opportunities and threats are the
external factors.
ShareKhan to benchmark its business & performance as compared to the competitors
and industry. As of 2020, ShareKhan is one of the leading brands in the banking &
financial services sector.
Strengths
a) Widerange of innovative financial products
b) Intensive research on all industry sectors
c) Strong I.T infrastructure
d) Have one of the largest network of branches across country
e) Pan-India presence with over 1,500 outlets serving 950,000 customers across
450 cities
Weaknesses
Penetration limited to urban areas
37
Opportunities
a. Growing rural market
b. Earning Urban Youth
c. Educating people about the benefits of investments to increase target audience
Threats
a. Stringent Economic measures by Government and RBI
b. .Entry of foreign finance firms in Indian Market
MANAGEMENT TEAM
Name Position
Mr shripal Morakhia director
Mr jaideep Aroro director
Mr tarun shah CEO
Mr kaliyan raman Online sales head
Mr jasoon panday and Dp head
Mr pradeep
Mr hemendra aggarwal Cluster head
Mr amit pal singh and Regional sales manager
maneet rastogi
38
Company profile
Angel broking
Founded 1987
Headquarters mumbai
subsidiaries Angel Commodities Broking Pvt. Ltd.,
Angel Fincap Pvt. Ltd, Angel Financial
Advisors Pvt Ltd, Angel Securities Ltd.
Active client 576,414
Revenue $1.3B
employees 4875
39
HDFC SECURITIES
Founded 2000
Headquarters MUMBAI
subsidiaries
Revenue $17.6M
employees 1,500
40
Kotak securities
Founded 1994
Headquarters Mumbai
subsidiaries Kotak Securities (Institutional Equities)
Kotak Securities Limited, Depositary
Bank
Kotak Mahindra Financial Services
Ltd.
Revenue $ < 1M
employees 22
41
Motilal oswal
Founded 1987
Headquarters Mumbai
subsidiaries Motilal Oswal Commodities Broker
Private Limited
MOPE Investment Advisors Private
Limited
Motilal Oswal Investment Advisors
Limited
Revenue $341.9M
employees 3,249
42
Share khan
Founded 2005
Headquarters Mumbai
subsidiaries Sharekhan Limited, Research Division
Sharekhan Limited, Asset Management
Arm
Revenue $3.5B
employees 5,500
43
SERVICES OFFERED BY RESPECTIVE FIRMS
BROKRAGE FIRMS SERVICES OFFERED

Angel broking Equity trading
Commodities
Portfolio Management Services
Mutual funds
Life insurance
Health insurance
IPO
Depository Services
Investment Advisory
HDFC securities Equities – Invest online in stocks of
listed companies
Mutual Funds – Invest in mutual funds
including equity, hybrid, tax saving or
debt schemes from asset management
companies
SIPs – Systematic investment plan that
allows automated investments
IPOs - Invest in initial public offerings
(IPO)
Derivatives – Hedge or speculate on the
44
price movement of stocks or index
through its derivative products viz.
Futures and Options
Bonds, NCDs & Corporate FDs – Invest
in fixed income instruments such as
bonds, NCDs and Corporate FDs
ETFs - Invest in exchange-traded funds
Value Added Services - Provides
investing and trading ideas, along with
financial tools and calculators, tax
solutions, will planning and robot
advisors.
MCX - Invest in bullion, metals, energy
and agricultural commodities[8]
smallcases - Invest in a curated basket of
stocks based on a theme or market trend.
Kotak securieties Equity
Derivatives
Mutual Funds
Initial Public Offerings (IPO)
Currency Derivatives, Tax Free
Bonds, Stock Lending and Borrowing
(SLB), Gold Funds, interest Rate
Futures (IRF)
Motilal oswal Broking, Mutual Funds, Wealth
management
45
sharekhan Demat Services
Trading Services
3 in 1 Account
Intraday Services
IPO Services
Stock Recommendations
Robo Advisory
PMS
Trading Institution
Trading Exposure
Virtual Trading
NRI Services
Investment Banking
Debt Funding
Issue Management
Depository Services
46
CHAPTER NO :02
RESEARCH METHODOLOGY
OBJECTIVES
a. To know the training procedure of stock exchange
b. To have knowledge about brokerage,broking firm,services offered by them etc
c. Investors prospective regards to investment through firm brokers
d. To get the idea of stock market it‘s existence,backgroundand development
e. To find out the satisfaction of investors on online share trading and satisfaction of investors
on online share trading regarding brokerage houses.
METHOD OF DATA COLLECTION

PRIMARY DATA
The primary source of data is being collected by preparing a survey & it is collected only from
investors who invest in stocks Population
o Sample size:
10 responses
o Sampling method:
Convenience sampling-survey
o Sampling frame:
a) Sampling area:
Mumbai city
b) Research instrument:
structured question
SECONDARY DATA
a. Data collected from newspaper and magazine
b. Data obtained from company journal
c. Data collected from brokers
d. Data collected from various books and sites
47
e. Data collected from internet
IMPORTANCE
a. Investing in securities ensures presents and future long term financial securities
b. Investment provides financial securities and income
c. Investing is essential to good money management because it ensures both present as well as
future financial securities
d. Services provided by brokers and satisfaction level of investors helps reviewing brokerage
firms and companies for further consumer benefit
e. The study provides brief knowledge about stock market,trading in securities with brokers
help
f. Study provides brief analysis by comparisons among different brokers
LIMITATION
o Data collected are of previous records
o Data regarding availability of management team w.r.t brograge firm is limited because of
data availability
o Selected firms either have the brances or their headquarters in Mumbai they are not wholly
located in Mumbai such got selected because of the study
o The study is focused more on brokers providing full brokers serviceS
48
CHAPTER NO :03
REVIEW OF LITRETURE
A study by Kauffman et al. carried out in 2000 indicated that, due to the
intensive essence of information, most traditional form of stock trading marker
players will eventually move towards leveraging IT in order to operate their
businesses in an Internet-based trading manner. This in turn brings about many
potential benefits for the users i.e. the investors, such as faster trading speeds,
better information transparency,and much lower operating costs (George, 2000).
Gupta (1972) in his book has studied the working of stock exchanges in India
and has given anumber of suggestions to improve its working. The study
highlights the' need to regulate thevolume of speculation so as to serve the needs
of liquidity and price continuity. It suggests the enlistment of corporate securities
in more than one stock exchange at the same time to improve liquidity. The study
also wishes the cost of issues to be low, in order to protect small investors
Gupta (1981) in an extensive study titled `Return on New Equity Issues' states
that the investment performance of new issues of equity shares, especially those
of new companies, deserves separate analysis. The factor significantly
influencing the rate of return on new issues to the original buyers is the `fixed
price' at which they are issued. The return on equities includes dividends and
capital appreciation. This study presents sound estimates of rates of return on
equities, and examines the variability of such returns over time.
S. Chris Robertson (2006), his study entitle ―Benefits of using a stock broker as a
new investor‖, in his study he reported the aspects like stock trading and
investment opportunities in present scenario. A new investor is probably facing
tremendous pressure in the financial world today with each and every investment
opportunities that arises every day, and that potentially brings wealth and
prosperity to the investor. Online stock trading creates worldwide investment
49
opportunity and as a new investor, all these can be understood with the help of a
stock broker who will help him take his decision concerning his investment and
help him manage his investments. Therefore, for a new investor the stock broker
can be a solution for all his problems.
Jennifer Lynn Hanson, (2009) in her study entitled ―Internet Stock Broker
advantage cheap online stock investing‖ found that Stock trading can be done
through internet websites with the help of stock brokers. Hanson was of the
conclusion that no one makes a financial investment with the goal of losing
money and making a financial gain is everyone‘s objective and many investors
who were at an disadvantage earlier have found the goal to be achievable after
the use of internet for stock market trading. After the internet was invited and
made available to the investor and also the common man, a smooth outline
trading has been created by effective guidance of brokerage agency. Hanson is
also of the opinion that the internet stock trading has eliminated the tradition
method of brokerage.
J VICTOR (2011) in his study entitled, ―The Brokers Role in Investing is of the
opinion that the stock broker is an agent and is performing a service for the
investor and the broker acts as an agent for the buyer and seller of the security
and ensures best investment on commission basis. The broker will buy for the
investor and sell for the seller each time ensuring that the best price is obtained
from the client and provide valuable services and information to help him make
the right investment decision.
Anurag Bansal (2015), the customer has been empowered by the broking
industry along with the regulators and exchanges through the numerous
initiatives which include the introduction to the new investment avenues,
educating and making the investors aware, increasing the reach, advancement of
technology and higher accountability of the various market participants. These
steps will encourage the retail investors to invest in the stock market and these
50
points have been highlighted by ANURAG BANSAL in his study
In an article in Form Views (2015) mentions that the mobile trader app is
attracting huge attention and will increase the growth in volume. The endeavor
for exchange and increasing internet and mobile participation over the years
helped broking industry to increase their business operations.
Mamunur Rashid and Ainun Nishat (2009) emphasized that most investors were
young and inexperienced but educated, with shortages of skills and income. The
study suggests the importance of effective regulation, disclosure requirements to
ensure a supply of quality information, investor education and technology driven
trading in brokerage houses for overall investor satisfaction.
Ganapathi and Ramasamy (2007) found that‘s the most preferred share brokers
and the customers are expecting main services of proper response from the
dealer, executing the order without delay, timely advice and guidance and giving
exposures properly from their brokers. They also found that share brokers and
their experience have a significant influence on the level of satisfaction of the
customer
Nidhi Walia and Ravinder Kumar (2007) found that the Indian investors are
more conservative, they do not change brokers for trading, whereas net traders
are more comfortable with online trading for its transparency and complete
control of the terminal.
Panda et al. (2011) revealed that majority of the investors relied on newspapers
as the source of information. Financial journals and business magazines were
ranked next to newspapers. A large number of investors were of the opinion that
they were not in a position to get the required information from the company in
time. A sizable number of investors were found to face problems while selling
securities. ‗Safety and Regular Return‘ stood first and second with regard to the
51
factors associated with investment activities. Equity shares were preferred for
their higher rate of return by the investors
Kasisomayajula (2012) found that investors are facing problems for trading in
stock market due to lack of information of stock market. Investors are more
focused to invest their money in post office schemes; banks etc. and they are
very confined towards stock market
Abdhul Rahim (2013) analysed the problems and prospects of online share
trading practices in India and found that the main benefit derived out of online
share trading is wider choice followed by better value and source of information.
Results also revealed that inadequate technology is the major problem faced by
online share traders followed by lack of professional management.
Mohita Mathur (2014) found that majority of the respondents felt online trading
is more convenient than mobile trading, online trading is still considered a better
option as far as the availability of features is concerned, online trading to be
more suitable mode as it is holding better techniques for analysis, processing
speed is faster in case of online trading, online trading is providing more and
better application software, online trading provides better visibility than mobile
trading and reviewing process is easier in terms of online trading than mobile
trading.
Bhuvanam and Sivarethina Mohan (2015) concluded that the strongest predictors
towards customers perception towards online share trading is ease of use,
behavioral intentions, and followed by perceived usefulness. Perceived trust and
security were the weakest predictors in this study. Perceived privacy created
negative influence towards customers‘ perception on online share trading. Result
also revealed majority of the respondents agree that online trading systems have
sufficient technical capacity to ensure that the data cannot be modified by any
third party.
52
Krishna Mohan Vaddadi and Merugu Pratima (2016) revealed that majority of
the respondents do online trading on a daily basis and capital appreciation is the
primary objective driving online investors, followed by earning regular income,
investment diversification, tax savings and stock safety. Results also revealed
that majority of online investors prefer to invest around one to two lakhs and
business news channels like CNBC, NDTV and stock trading tools provided by
online stock broking sites are the preferred information source assisting the
online investors‘ in their investment decisions and age of the respondent
influences the online trading frequency of the respondents.
Prabakaran (2017) found that all investors considered other relevant information
in relating to share market before entering into the online share trading and the
higher income people make the investment in shares via online trading, because
that they knew the all kinds of information as well as facing their risk.
Christine Ennew, Nigel Waitel2, (2007) in their book published 'Financial

Services marketing' has highlighted major aspects of consumer buying behavior
in financial services. They have observed the empirical studies relating to
important factors affecting such as confidence, trust and customer loyalty.
Therefore they come to the conclusion that, consumer is more interested in the
functional quality dimensions of financial services. (I.e. how the services are
delivered) than the technical quality dimensions (i.e. what is actually received as
the outcome of the production process).
Jacques Horovitz14 (2004) in his book published 'Services Strategy' has

discussed perception, needs and expectations of consumers. According to author
three factors affect perception, those are physical filters that reduce or modify the
level of quality and its reliability. Psychological filters which may include
memory, knowledge, beliefs and values. Also the image of the company may
affect the level of perception of a customer. Further author establishes the
53
connection between needs and expectation. Needs (unmet and met) are modified
by perception, which intern modify our expectations.
Keiningham et. el. (2005) found that a simplistic focus on improving customer
satisfaction for all customers in order to improve share-of-wallet and customer
revenue does not seem to represent the best management approach to maximize
overall firm profitability. In fact, it could actually result in a negative return on
investment. Therefore, customers should first be segmented by their profitability
to the firm before expending resources to improve customer satisfaction and
share-of-wallet. Customer expectations are the customer-defined attributes of
your product or service you must meet or exceed to achieve customer
satisfaction. There are many reasons why customer expectations are likely to
change over time. Process improvements, advent of new technology, changes in
customer's priorities, improved quality of service provided by competitors are
just a few examples.
A growing body of literature built in undertaken in recent times suggests that

providing customer satisfaction leads to a Firm‘s success (Gronroos, 1990;
Eriksson and Vaghult, 2000).In a broad context, customer satisfaction is
determined by developing models of consumer satisfaction. Customer
satisfaction begins by providing some very rudimentary facilities (Venkitaraman
and Jaworski, 1993), which fulfills the basic needs of a customer in a
financial market, investment firm or a bank. Customer satisfaction is the gap
between his/her perception of a service and the evaluation of the actual service
itself. If the service exceeds the expectations of the customer, the customer is
delighted. In the context of investor satisfaction, availability of preliminary
information, collection and processing of information influences the degree of
customer satisfaction in a competitive marketplace (Holbrook and Hirschman,
1981; Engel et al, 1995). The consequence of customer dissatisfaction with a
service provider is also significant. A customer is likely to give a positive word
of mouth to a limited customer, say about three to five people, when there is a
54
positive experiences, but if there is dissatisfaction, he is likely to give his
negative word of mouth communication to say, seven to twenty people about the
negative experience (Kan, 1995). This rule would also apply to individual stock
investors. Investor satisfaction with the availability of basic mechanisms of a
market structure has an effect on the sustainable development of stock market
(Baker and Aslem, 1973).
From a stock market point of view, we can say that investor satisfaction relates to
a satisfactory experience of the investor with the process of market, the
transaction systems in place, provision of brokerage environment and other
constituents of market structure. In the context of online securities brokerage
services, Yang and Fang (2004) undertake a study to examine the reviews of
brokerage firms by adopting the methodology of content analysis. Results of this
exploratory research showed that there are similarities in the primary service
quality dimensions between online customer satisfaction and traditional services
however, the key factors leading to online brokerage service dissatisfaction is
linked to information systems quality. A study undertaken in Hong Kong,
examines investors selection criteria of brokerage firms to have a better
understanding of investor behavior, improvements in the quality of services and
effective segmentation by brokerage \firms (Chan et al, 1991). Another study
undertaken in Bangladesh, examined the mechanisms of market structure, which
lead to the satisfaction level of individual investors. The study concluded that
investors lay a great deal of emphasis on effectiveness of investment analysis;
ease of the transaction process, effectiveness in the management of information
and timely risk management, in that order (Rashid and Nish at, 2009
55
RECENT TRENDS ISSN: 2348 - 9715
A Referred International Journal of Multidisciplinary Research Vol: 3, ISSUE: 3,
December-2016 represent the best management approach to maximize overall
firm profitability. In fact, it could actually result in a negative return on
investment.
y to change over
time.
Process improvements, advent of new technology, changes in customer's
priorities,
improved quality of service provided by competitors is just a few examples.
factors that
influence a person into making a decision to get service from which brand of
stock broking firms, which factors are important in satisfying the customer's
needs and to know how Broking Agencies is ensuring its customers satisfaction.
in direction to corroborate the existing assumptions
regarding the influencing factors. It should be in a position to verify that the steps
various players are taking to stimulate volumes are in the right direction, and
would eventually lead to an increase in market share by satisfying the
expectations of investors who invested in Broking Agencies.
ctations of those
investors who invested in Broking Agencies and their satisfaction levels with the
services provided by the stock broking agencies.
respect to various services
and investment options provided by broking agencies.
broking agencies.
customers are empowered and brand loyalty erosion is increasing, will have to
56
move to customer relationship management (CRM).
tor has been the most radically transformed of
the financial services industries, principally by the emergence of low price on-
line securities trading and free financial information services (Kalakota and Frei
1997). Service quality is particularly essential in the financial services context
because providers tend to be viewed as relatively undifferentiated, and hence it
becomes a key to competitive advantage (Almossari, 2001; Stafford, 1996).
customer satisfaction to profits. In particular, satisfaction is thought to improve

share-of spending, which in turn leads to higher customer revenue and customer
profitability.
Keiningham ET. el. (2005) found that a simplistic focus on improving customer
satisfaction for all customers in order to improve share-of-wallet and customer
revenue does not seem to
Determinants of Investor Satisfaction with brokerage firms
Extant literature has identified determinants of investor satisfaction with

brokerage firms. We review literature on these elements
Reliability and Creditability

In the psychological literature, a vast body of research has examined the
questions of attitude formation. With the introduction of the Internet as an
emerging tool for the delivery of services, the issue of credibility and reliability
has gained importance and attention of researchers. Most brokerage firms offer
services through Internet. Credibility and reliability are two important
determinants of investor satisfaction. Reliability and credibility are among the
two prominent factors in evaluating quality, in the online context (Yang and Jun,
2002; Cox and Dale, 2001)
Investment analysis
57
In order to ensure a successful stock investment, the investor will have to make a
timely entry in the market, perform the information processing, make the right
investment decision, and finally take a proper action of investment (Rashid and
Nishat, 2009). Investment analysis is a broad concept and comprises
management of companies, the economic scenarios, regulatory government
environment and reforms, the industry outlook and other macroeconomic indices
that include inflation, foreign direct investment (FDI), up to date stock market
performance and gross domestic product (GDP) growth rate (Murphy & Soutar,
2004). The problem in an emerging city like Mumbai is that investors are
deprived of such insightful analysis. Therefore, we say that performance
investment analysis function and its availability to investors will lead to investor
satisfaction.Prospective investors lack information on stock trading. To a retail
investor, norms of brokerage house and changes may appear complex. This poses
challenges, for example, imposition of margin rules and changes in transaction
costs hinder the own of operation of an exchange (Merton, 1987; Brown,
2004). Hence, investors look for information analysis and rely on brokerage
firms for many decisions. Successful brokerage firms adopt various initiatives
to make it easy for investors, facilitate transactions, provide satisfaction and
increase investor participation
Information management
A function of brokerage firm is to provide information to its customers on all
stocks... The key function that makes an individual a better investor is the
availability of information provided by the brokerage firm (Loibl & Hira,
2009). Good management of information reduces behavioral irrationality
(Hirshleifer, 2001; Ritter, 2003). Most investors in Mumbai are small
investors. Individually subscribing to information sources is not affordable.
Some of the large brokerage firms in Mumbai have their own market research
department, which provides trading and investment advice. Some of these also
provide portfolio and investment management services to their customers. Such
information management initiatives by brokerage firms will influence investor
58
satisfaction
Special offers
Brokerage firms in Mumbai often resort to providing ‗special offers‘ to its
clients. This promotional program offers reduced brokerage fees to its
customers. In Mumbai, such offers have become a competitive necessity. This is
not only used by brokerage firms as customer relation management tool, but
has also been effective in providing investors with satisfaction offers
Reliability&
credibility INVESTORS
Investment SATISFACTION
analysis
Information
management
Special offers
A business that wants to succeed in today's global competitive market, where

customers are empowered and brand loyalty erosion is increasing, will have to
move to customer relationship management (CRM). Customer relationship
management enables organizations to provide excellent real-time customer
service through the effective use of individual account information (Kilter and
Keller, 2006: 152).
The retail stock brokerage sector has been the most radically transformed of the
financial services industries, principally by the emergence of low price on-line
securities trading and free financial information services (Kalakota and Frei
1997).
Service quality is particularly essential in the financial services context because
59
providers tend to be viewed as relatively undifferentiated, and hence it
becomes a key to competitive advantage (Almossari, 2001; Stafford, 1996). In
addition, financial services, like other services are intangible, difficult to
evaluate, and rest on experience and credence quality (Zeithaml, 1981;
Zeithaml et al., 1985).
Customer satisfaction is a measure of how products and services supplied by a

company can meet the customer's expectations. With better understanding of
customers' perceptions, companies can determine the actions required to meet
the customers' needs. They can identify their own strengths and weaknesses,
where they stand in comparison to their competitors, chart out path future
progress and improvement. Customer satisfaction measurement helps to
promote an increased focus on customer outcomes and stimulate improvements
in the work practices and processes used within the company.
Customer satisfaction is an important theoretical as well as practical issue for
the marketers and consumer researchers (Fournier and Mick, 1999; Meuter
et.al., 2000).
Customer satisfaction can be considered as the essence of success in today's

highly competitive world of business. The importance that customers place on
service quality attributes is the driver of satisfaction. Loyalty is a crucial output
to a firm's resource allocation strategy and quality improvement efforts. Many
researchers have proposed a virtuous chain of effects from improved customer
satisfaction to profits. in particular, satisfaction is thought to improve share-of
spending, which in turn leads to higher customer revenue and customer
profitability.
60
CHAPTER NO:04
DATA ANALYSIS
Company Brokerage for Brokerage for

delivery intraday trading
Angel broking 0.50% 0.02% to 0.03%

Hdfc securities 0.50% 0.15%
Kotak securities 0.80% 0.15%
0.30% to 0.50% 0.03% to 0.15%
Motilal oswal
Sharekhan
0.03%to0.50 0.03%to0.10
61
Financial health
Company Angel Hdfc Kotak Motilal Sharekhan
Broking Securities Securities oswal
Profit
after Tax 101.8Cr 344.4 Cr 540.3 Cr 327.1 Cr 70.2 Cr
FY17/18
Profit
after Tax 32.04 Cr 215.9 Cr 365.2 Cr 110.7 Cr 84.7 Cr
FY16/17
Profit
after Tax
31.3 Cr 133.3 Cr 251.5 Cr 594 Cr 130 Cr
FY15/16
Profit
after Tax
42.95 Cr 164.9 Cr 283.3 Cr 105.8 Cr 13 Cr
FY 14/15
Debt FY
1064.8 Cr 0 2249.7Cr 1243 Cr 336.4 Cr
17/18
Debt FY
705 Cr 0 988.9 Cr 888.5 Cr 335.1 Cr
16/17
Debt
322 Cr 0 1973 C 409.6 Cr 335.1 Cr
FY15/16
Debt
FY14/15 151 Cr 0 567 Cr 174.6 Cr 0
Profit to
Equity(%) 27 43 18 48 6
FY17/18
Profit to
Equity(%) 9 32 14 14 8
FY16/17
62
Profit to
Equity(%) 9.1 23.3 10.3 8.2 13.8
FY15/16
Profit to 14 37 13 16 19
Equity(%)
FY14/15
Balance 2272 Cr 1637.8Cr 8524.7Cr 4975.6 Cr 2683.9 Cr
Sheet
Size
FY17/18
Balance
1716 Cr 1380 Cr 6564.2Cr 3012.3 Cr 2476.3 Cr
Sheet
Size
FY16/17
Balance
Sheet
Size 1094 Cr 1054 Cr 4262 Cr 2060 Cr 2161 Cr
FY15/16
Balance
Sheet
Size 862 Cr 947 Cr 4649 Cr 1670 Cr 1559 Cr
FY14/15
63
Transparency and other cost
Particulars Angle broking HDFC Kotak Motilal Sharekhan
securities securities oswal
0.03% for Intraday & 0.3% 0.5% for
Equity for Delivery Delivery 0.00325% of 0.00325% 0.00325%
Negotiable & 0.05% Turnover of of
for Turnover Turnover
Intraday -
Negotiable
0.03% of 0.05% on
Futures TurnoverNegotiablee0.03 Turnover - 0.00436% of 0.00200% 0.0021%
% of Turnover- Negotiable Negotiable Turnover of of
Turnover Turnover
Rs 60/lot - Negotiable Rs 100/lot 0.0594% of 0.0594% of 0.055% of
Options Negotiable Premium Premium Premium
Turnover Turnover Turnover
0.03% of Turnover- NA 0.00436% of 0.0025% of 0.0027%
Commodities Negotiable Turnover Turnover of
Turnover
Rs50/Month Free Rs400/year
AMC charge 300 Rs750/year
0.04% or Rs Rs20/Debit Rs 30 or
DP Rs 25/debit Transaction 0.04% or 27/debit Transactio 0.03%
Transaction Rs transaction n whichever
Charge 25/debit whichever is is higher
transaction higher
whichever
is higher
Rs 20/call Nil Nil
Offline order NIL NIL after the first
placing 20 orders
Charge every month
64
Account opening cost
Particulars Angle HDFC Kotak Motilal Share khan
broking securities securities oswal
Trading only NA NA NA NA NA
Trading and Rs 600 Rs 999 Rs 750 Free, but Rs 500

demit with
Margin which will
Cheque be adjusted
with
brokerage
Commodity Rs 300 NA RS 250 Free, but

with NIL
Margin
Cheque
65
MARGINS
Particulars Angle HDFC Kotak Motilal oswal Sharekhan

broking securities securities
Upto 15 Upto 10 Times Upto 10 Times

Upto 3x 2x with Times for for Intraday, for Intraday & 5
with Intrest Intraday, For & For Times for
Equity 24% Delivery upto Delivery Upto Delivery(Interes
interest 3 times but at 3 times t charged)
per year Interest of Rs @24%/Annu
75/Lakh/day m
or
@24%/annu
m
Nil
Equity Upto 2 Times Upto 2 times Upto 5 times
Futures Upto 4x Intraday for Intraday Intraday
nil
Upto 2 times Upto 2 times No Leverage
Currency Intraday Intraday
Futures Upto
2times
nil Buying No
Currency Upto Margin, NA NO
Options 5times Shorting upto LEVERAGE
2 times for
for Intraday
sorting nill
Commodity Upto 2 times Upto 2 times Upto 2 times

Intraday Intraday Intraday
3times
66
INVESTMENT OPTION AVAILABLE WITH FIRMS
Angel broking Equity investment ,mutual funds

,national pension scheme ,public
provident fund, fixed deposit
Hdfc securities Equity option ,mutual fund
Kotak securities Equity trading account, NRI account,
Qualified Foreign Investors (QFI),
RGESS, PMS,
Motilal oswal Deposit in small finance bank, sukanya
samriddhi account,tax saving bonds and
tax free bonds,
Share khan Religare Tax Plan, HDFC Long Term
Advantage Fund, Reliance Tax Saver
(ELSS) Fund, L&T Tax Advantage
Fund, ICICI Prudential Tax plan
INTERPRETATION
For the keen investor, there is a wide assortment of investment options available in
the market.
For instance, investors seeking stable long-term returns can invest in the fixed
deposit of their
choice. Meanwhile, investors with high risk appetites can develop their trade
strategies and invest directly in the equity market. The key is to determine one‘s
financial goals as well as other specifics such as your risk appetite, duration of
investment and purpose of investment. Once these are settled, choosing the
appropriate investment option becomes easier and more effective for your
investment strategy.
67
INTERPRETATION
o The given chart shows the age group who invests through stock brokers
o Out of 100% 90%of investor who are between the age group of 10-30 invest these can
be categorize as the youth investors
o The data also shows that 30-40 age group people invests in average of 10% which is
low in number might they don‘t refer investing through brokers because of their
knowledge and experience they directly invest in market
o Might be 60 and above age group people believe in savings or fixed deposits etc
68
INTERPRETATION
o Many people invest for a tenure of only 1 year i.e 50% ,these people
don‘t believe in long term return
o 20% of investments is for more then 2 years
o 30% people invest for a period of 1 or 2 years
o None of the above investors invested for 5 or more years
69
INTERPRETATION
o maximum people invest in equity asmode of investment which is the services
offered by every stock brokers
o As equity is considerably a low cost purchase compare to others investment
options
o Other than equity people invest debt is the other source of investment
o Only 10%of total population invests in debt
o Considering portfolio investment people don‘t prefare it
70
INTERPRETATION
o The above survey shows about 80% people allow their existing
investments to continue i.e they don‘t withdraw this means their
investments are not affected or with minimum speculation in stocks
don‘t change their decision to witdraw their investment
o On the other side 10%considers withdrawing and rest 10% considers
changing the brokers services means they do considers brokers
specialization
o And the option for new investment is not taken into account
71
INTERPRETATION
o About 50% people considers credit rating issused to brokers by
agencies before any investment which means among the population
maximum investors are sound one and they are aware about the risk and
the returns about the brokers
o 30% people don‘t consider credit ratings might be they uses another
sources to know about respective firm
o With very minimum percentage of 20 people don‘t look forward the
criteria of credit rating it can be sometime they do sometime not
o This charts shows the awarness of investors
72
INTERPRETATION
o Many people invest in share khan as the stock broker becouse
definetly of its wide range of services
o Other than sharekhan people prefer investing in others where it
includes HDFC securities and etc
o Angel broking comes with 20%of investors consulting with them
o Kotak securities is the least option before lkp securities
o All the percentage is recorded after considering the factors such as its
awarness,services etc
73
INTERPRETATION
o Maximum people considers wealth creation as the main objectives and
given the priority
o These investors considers investment just as a source of income
o Secondly people who considers investment to meet their retirement are
30% of total population these people belive investment to be a long
term planning options
o Only 10% people invest to meet major commitment such a sort of
asuarance
o The overall pictures shows a negative interpretatation as 10% only
considers future outcomes
74
INTERPRETATION
o In the above chart x-axis shows ratings and y –axis shows no.of people
o About 6 people are satisfied with the services of brokers as the rating is 4/5
which is a good figure
o About 3/5 ratings given by 3 people ranks second among the list
o this shows stock broking firms specialization level
o Among the given population many are satisfied with the services of brokers
75
INTERPRETATION
o About 80%people considers risk before investments these people
considers the long term risk attached to it and simultaneously they takes a
decision whether to invest or not
o With 70%people considers return these people do considers the risk first
and then the return concept
o And with 10% people thoughts of liquidity
76
CHAPTER NO:05
CONCLUSIONS AND SUGGESTIONS
CONCLUSION
This study has confirmed that measurement of the factors leading to

investor satisfaction with brokerage firms in Mumbai . Brokerage firms
operating in the Mumbai market and wanting to provide investor satisfaction
should pay close attention to the findings of this study. This study, being a
first of its kind in Mumbai , makes a valuable contribution to the existing
knowledge related to the Mumbai stock market. However, as in case of several
other empirical studies, there are some limitations. First, the study has not
examined the possibility of any socio-demographic influences between the
factors on the relationship and investor satisfaction.
A suggestion for future research is examine the effects of demographic and
psychographic variables. For example, examining investor satisfaction in Hong
Kong, Chan et al, (1991) segmented the market into four types of investors
based on demographic and psychographic profiles. It will be interesting to
undertake a similar study, given the cultural differences between Mumbai and
other countries
Second, the sample for this study is while being representative, confined to
only one of province, the eastern province of Mumbai It is suggested that
future studies must examine larger samples from across the Kingdom. This will
ensure generalisability of findings. Third, the study had a limited number of
women participants. With numerous options for online trading, an increasing
number of women are engaged in trading activities. The scope of future studies
can be enhanced
77
FINDINGS
o According to the data that have been collected all the people who were
surveyed are aware of share market and trading.
o Survey shows that almost all people prefer online trading rather than that of
offline trading through broke
o People like to invest more in equity rather than other investment sectors
o Newspaper and Internet are the most preferred mode for awareness of the
broking firms and share trading
o Among given options of firm people invest more in sharekhan and others
which is other than all including hdfc securities
o The survey shows many people invests for wealth creation among other
things
o Many investors considers investment reviews before and after investing
o From the given ratings people are satisfied with the services offered by
brokers but need a little improvement as it is 4/5and not 5/5
78
SUGGESTION
o People of youth age group should be encouraged to invest in stock market

o Investors have inadequate knowledge about many of the stoke brokers they are
required to promote ,advertise themselves
o There is high potencial market for equity funds,so proper marketing of various
scheme is required
o Facility of free demonstration is required
o Investors should consider investment as other than source of income they
should invest considering retirement planning and major commitments
o To reach 5/5 needs improvement in pricing policy ,specialization technique ,etc
79
CHAPTER NO:06
BIBLIOGRAPHY
o www.academia.edu
o www.slideshare.net
o www.theinternationaljournal.org
o www.google.com
o www.angelbroking.com
o www.hdfcsec.com
o www.kotaksecurities.com
o bestbrokerindia.com
o www.motilaloswal.com
o www.sharekhan.com
o www.semanticscholar.org
o www.bloomberg.com
o www.timesjobs.com
o www.researchgate.net

Chapter No:01: History of Stock Exchange in India

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Chapter No:01: History of Stock Exchange in India

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CHAPTER NO :01

History Of Stock Exchange In India

The Rocky stock exchange was founded by Premchand Roychand, an influential

BSE launches commodity derivatives contract in gold, silver

Importance of the BSE

Stock market in Mumbai

Establishment of NSE (National Stock Exchange)

In November 1992, NSE (National stock exchange) was established as a first

There is a wide of range of investment alternative available to an investor in Indian

instruments, you can participate in various schemes floated by mutual funds.

2. Opening Demat Account with Depository:

3. Placing the order

4. Executing the Order:

Full-Service Brokers (Traditional Brokers)

Discount Brokers (Budget Brokers)

Distinguish between full service and discount brokers

Awards and recognition

Future plans and projects

Mr. Rajiv Phadke (HR & Corporate

Dr.MuditKulshreshtha (Business Intelligence&

f. 2013: Runner up in the "Best e-brokerage House" category by Outlook Money

g. 2012: Runner up in the "Best e-brokerage House" category by Outlook Money

h. 2011: "Largest e-brokerage house" by BSE-Dun & Bradstreet

Awards and recognition

SWOT Analysis is a proven management framework which enables a brand like

Mr.Motilal Oswal chairman and MD

Sharekhan was founded by Mumbai-based entrepreneur Shripal Morakhia in 2000.

BROKRAGE FIRMS SERVICES OFFERED

METHOD OF DATA COLLECTION

Christine Ennew, Nigel Waitel2, (2007) in their book published 'Financial

Jacques Horovitz14 (2004) in his book published 'Services Strategy' has

A growing body of literature built in undertaken in recent times suggests that

customer satisfaction to profits. In particular, satisfaction is thought to improve

Determinants of Investor Satisfaction with brokerage firms

Extant literature has identified determinants of investor satisfaction with

Reliability and Creditability

A business that wants to succeed in today's global competitive market, where

Customer satisfaction is a measure of how products and services supplied by a

Customer satisfaction can be considered as the essence of success in today's

Company Brokerage for Brokerage for

Angel broking 0.50% 0.02% to 0.03%

Trading and Rs 600 Rs 999 Rs 750 Free, but Rs 500

Commodity Rs 300 NA RS 250 Free, but

Particulars Angle HDFC Kotak Motilal oswal Sharekhan

Upto 15 Upto 10 Times Upto 10 Times

Commodity Upto 2 times Upto 2 times Upto 2 times

Angel broking Equity investment ,mutual funds

This study has confirmed that measurement of the factors leading to

o People of youth age group should be encouraged to invest in stock market

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