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Sankar Garg

Roll No. 2845

MBA (3rd SEM)



(SESSION 2008-10)

I, Sankar Garg, Roll number 2845, MBA (3rd Semester), student of the Amity
Business School., Manesar, Gurgaon, hereby declare that the project entitled
is an original work and the same has not been submitted to any other institute for the
award of other degree.

A seminar presentation of the training report was made on ………………...….and the

suggestions as approved by the faculty were duly incorporated.

Presentation In-charge Signature of the Candidate



Director of the Institute


A Project report is an assessment of one’s great skill and aptitude. One needs to
devote immense patience, time and brains for the compilation of one such rewarding
outcome of true efforts.

I am indeed thankful to honorable Dr.R.C.Sharma, prof. and advisor, Amity

business School, Manesar who has provided the wonderful opportunity of getting
exposed to industrial and business working know-how. I extend my deepest thanks to
my mentor and guide, Mr. Vikram Singh, faculty, Amity Business School, Manesar
for giving me the opportunity to understand the project and for providing me the
necessary information whenever required. This study enabled me to analyze and
understand the investor’s expectation towards retail share broker companies.

I would like to render my sincere heartfelt gratitude to my Industry Guide Mr.

Harish Mittal for his immense encouragement, and guidance throughout my
Dissertation. He has been an inspirational mentor guiding me through every step of
my project, thus making the entire Dissertation a complete learning process.

Last but not the least I would like to thank all the people who had helped me directly
or indirectly in the completion of the study.

Sankar garg





1. Introduction
2. Significance of the study
3. Conceptualization
4. Focus of the study
5. Objectives
6. Limitations


1. Industry Profile
2. Company Profile


1. Review of Existing Literature

2. Research Methodology


1. Analysis and Interpretation


1. Findings
2. Recommendations
3. Conclusion


1. Introduction
2. Significance of the study
3. Conceptualization
4. Focus of the study
5. Objectives
6. Limitations

The equity brokerage industry in India is one of the oldest in the Asia region. India
had an active stock market for about 150 years that played a significant role in
developing risk markets as also promoting enterprise and supporting the growth of

Trading in shares had been started when securities contract act had been formed in
1956. Transfer of resources from those with idle resources to others who have a
productive need for them is most efficiently achieved through the securities market. It
provides a channel for reallocation of savings to investments.

This project undertakes the study of investors’ expectations towards the share broker
at Value Money Investment (VMI). This project undertakes the study of the market
and collect information regarding the investors.

It also includes the comparative analysis of online share broker like Sharekhan,
indiabulls, icici direct, angle broking and so on. The information regarding this will
help to analyze where angle broking ltd stand with comparison to other trading
companies viz-a-viz brokerages charges, demat account opening charges, and the
various facilities provided by share broker.

Many people use the stock market as a personal financial tool. With the creation of
your personal portfolio, investigate the likelihood that a company will succeed in
business and be a profitable investment.

It is important to know about the type of service offers a retail share broking company
and what various things that a share broker company are providing to the investor. So
to study about the brokerage companies becomes significant for the investors.

This Study Is Helpful:-

• In understanding the behavior shown by investor towards the different

attributes such as expertise knowledge, speed, brand name etc.

• For the company it is important to know what level of service client expects
from a share broker.

• For the readers to gain a good understanding about the share broking
companies and their services.

The brokerage industry continues to develop rapidly. Many of the traditional

restrictions against banking activities within the brokerage industry are being
eliminated and the barriers are disappearing. Due to this, some commercial banks
have as subsidiaries, brokerage houses that offer discounts and some of them have
available accounts that offer all of the services that are offered by a checking account.

The basic function of a brokerage firm is to execute buy and sell orders for clients.
Traditionally these firms have offered the investigation of the quality and the
possibilities of investing in a variety of investment products. It is still accustomed for
brokerage firms to offer information about possible investments free of charge. This
activity of bringing free of charge stock investment reports is one of the main tools
that are utilized by brokerage houses to compete against other firms and to investors it
continues to be an important service.

What Is Share:-

In finance a share is a unit of account for various financial instruments including

stocks, mutual funds, limited partnerships, and REIT's. In British English, the usage
of the word share alone to refer solely to stocks is so common that it almost replaces
the word stock itself.

In simple Words, a share or stock is a document issued by a company, which entitles

its holder to be one of the owners of the company. A share is issued by a company or
can be purchased from the stock market.

Concept of Share Trading:-

Trading in shares is old phenomena its regulation had been started when securities
contract act had been formed in 1956. Transfer of resources from those with idle
resources to others who have a productive need for them is most efficiently achieved
through the securities market. It provides a channel for reallocation of savings to
The share market can be segmented in two parts one is Primary Market another is
Secondary Market.

Primary Market:-

It provides opportunity to issuers of securities government as well as corporate to

raise resources to meet their requirements of investments. Companies issue fresh
securities through public issues and private placements in exchange of funds. The
market design for primary market is provided in the provision of Companies Act,
1956 which deals with issues, listing and allotment of securities. The investors have to
apply the shares by filling the application form issue by the company along with the
application money.

Secondary Market:-

Secondary market is the place for sale and purchase of existing securities. It enables
an investor to adjust his holdings of securities in response to changes in his
assessment about risk and return. It enables him to sell securities for cash to meet his
liquidity needs. It essentially comprises of the stock exchanges, which provide
platform for trading of securities and a host of intermediaries who assist in trading of
securities and clearing and settlement of trades. The securities are traded, cleared and
settled as per prescribed regulatory framework under the supervision of the exchanges
and oversight of SEBI.
Stock Exchange:-

“Stock exchange means anybody or individuals whether incorporated or not,

constituted for the purpose of assisting, regulation or controlling the business of
buying, selling or dealing in securities.”

Bombay Stock Exchange:-

The stock exchange, Mumbai, popularly known as “BSE” was established in 1875 as
“The Native share and stock broker association”, as a voluntary non-profit making
association. It has an evolved over the year into its present status as the premiere stock
exchange in the country. It may be noted that the stock exchanges the oldest one in
the Asia, even older than the Tokyo Stock Exchange, which was founded in 1878.
The Exchange, while providing an effective and transparent market for trading in
securities, uphold the interest of the investors and ensure redressed of their
grievances, whether against the companies or its own member brokers. It also strives
to educate and enlighten the investors by making available necessary informative
inputs and conducting investor education programmers.
National Stock Exchange:-

The NSE was incorporated in Now 1992 with an equity capital of

Rs.25 corers. The international securities consultancy (ISE) of Hong Kong has helped
in setting up NSE. ISE has prepared the detailed business plans and installation of
hardware and software systems. The promotions for NSE were financial institutions,
insurance companies, banks an SEBI capital market ltd., Infrastructure leasing and
financial services ltd. and stock holding corporation ltd.

NSE is not an exchange in the traditional sense where brokers own and manage the
exchange. A two tier administrative set up involving a company board and a
governing abroad of the exchange is envisaged.
NSE is a national market for share PSU bonds, debentures and government securities
since infrastructure and trading facilities are provided.

Trading is the process of buying and selling securities. The procedure of trading
consists of two processes, i.e. Delivery (when securities are sold) and Receipt (when
securities are purchased).
Trading can be of following two types:

Delivery-based Trading:-
Delivery based trading is normally considered as a safer approach for trading in
shares when compared to day trading. Delivery based trading involves buying shares
on a market day and selling them only after receiving the delivery of those shares in
demat account.
Intraday Trading:-
Intraday Trading is trading for that one day only. Whereas some day traders hold
positions overnight intraday traders maintain no overnight positions



BROKERS” mainly focuses on the behavior and the services which an
investor expect from share brokers while dealing with stock market. The study
also gives emphasis on the expected satisfaction from services provided by
stock brokers. The study focuses on the issues regarding the selection of retail
Broking Company by investors. The study also focuses on to find out the most
reliable broking company. This study provides a broad framework to the investor as
well as company.

1. To know about the investors’ expectations towards the various services

provided by retail broking firms.

2. To study investor’s behavior towards different attributes such as risk, return,

liquidity etc. of investment in Equities.

3. To make a comparative study of competitors of ANGEL BROKING LTD.

4. To give the suggestions to share broker to improve the quality of the services.

1. To study share market is a very vast topic and the search is just limited to a
small portion.

2. Time constraint was a limiting factor in the project.

3. Due to the reluctant nature of the respondents it was not an easy task to collect
relevant information from them.

4. It may be possible the information provided by them is not true.

5. The figures have been taken as approximations.

1. Industry Profile
2. Company Profile

The equity brokerage industry in India is one of the oldest in the Asia region. India
had an active stock market for about 150 years that played a significant role in
developing risk markets as also promoting enterprise and supporting the growth of

The roots of a stock market in India began in the 1860s during the American Civil
War that led to a sudden surge in the demand for cotton from India resulting in setting
up of a number of joint stock companies that issued securities to raise finance. This
trend was akin to the rapid growth of securities markets in Europe and the North
America in the background of expansion of railroads and exploration of natural
resources and land development.

Historical records show that as early as 1864, there were about 1,000 brokers with the
stock markets functioning from three places in Mumbai; between 9 am to 7 pm at the
junction of Meadows Street and Rampart Row, from day break till 9 am and from 7
pm to early hours of next morning at Bazargate.

Share prices rose sharply even at that time. A share of Colaba Land Company during
the boom period of the 1860s rose from Rs 10,000 at par to Rs 120,000 and that of
Backbay Shares went up from Rs 2,000 to Rs 54,000. Bombay, at that time, was a
major financial centre having housed 31 banks, 20 insurance companies and 62 joint
stock companies.

Reports on stock markets around that time indicate that an ordinary broker in 1864
earned about Rs 200 per day, a huge sum in those days. The boom period came to an
abrupt end in 1865. In Jul 1865, what was then used to be called the share mania
ended with burst of the stock market bubble? “Never had I witnessed in any place a
run so widely distributed nor such distress followed so quickly on the heels of such
prosperity” thus wrote Richard Temple, who served as the Governor of Bombay at
that time. An interesting aspect is that despite the collapse of the stock market, most
of the brokers met their payment commitments.
In the aftermath of the crash, banks, on whose building steps share brokers used to
gather to seek stock tips and share news, disallowed them to gather there, thus forcing
them to find a place of their own, which later turned into the Dalal Street. A group of
about 300 brokers formed the stock exchange in Jul 1875, which led to the formation
of a trust in 1887 known as the “Native Share and Stock Brokers Association”.

A unique feature of the stock market development in India was that that it was
entirely driven by local enterprise, unlike the banks which during the pre-
independence period were owned and run by the British. Following the establishment
of the first stock exchange in Mumbai, other stock exchanges came into being in
major cities in India, namely Ahmedabad (1894), Calcutta (1908), Madras (1937),
Uttar Pradesh and Nagpur (1940) and Hyderabad (1944). The stock markets gained
from surge and boom in several industries such as jute (1870s), tea (1880s and 1890s),
coal (1904 and 1908) etc, at different points of time.

Beginning of a new equity culture:-

A new phase in the Indian stock markets began in the 1970s, with the introduction of
Foreign Exchange Regulation Act (FERA) that led to divestment of foreign equity by
the multinational companies, which created a surge in retail investing. The early
1980s witnessed another surge in stock markets when major companies such as
Reliance accessed equity markets for resource mobilization that evinced huge interest
from retail investors.

A new set of economic and financial sector reforms that began in the early 1990s gave
further impetus to the growth of the stock markets in India. As a part of the reform
process, it became imperative to strengthen the role of the capital markets that could
play an important role in efficient mobilization and allocation of financial resources to
the real economy. Towards this end, several measures were taken to streamline the
processes and systems including setting up an efficient market infrastructure to enable
Indian finance to grow further and mature. The importance of an efficient micro
market infrastructure came into focus following the incidence of market abuses in
securities and banking markets in 1991 and 2001 that led to extensive investigations
by two respective Joint Parliamentary Committees.
The Securities and Exchange Board of India (SEBI), which was set up in 1988 as an
administrative arrangement, was given statutory powers with the enactment of the
SEBI Act, 1992. The broad objectives of the SEBI include

• to protect the interests of the investors in securities

• to promote the development of securities markets and to regulate the securities

The scope and functioning of the SEBI has greatly expanded with the rapid growth of
securities markets in India in the last fifteen years.

Following the recommendations of the High Powered Study Group on Establishment

of New Stock Exchanges, the National Stock Exchange of India (NSE) was promoted
by financial institutions with an aim to provide access to investors all over the
country. NSE was incorporated in Nov 1992 as a tax paying company, the first of
such stock exchanges in India, since stock exchanges earlier were trusts, being run on
no-profit basis. NSE was recognized as a stock exchange under the Securities
Contracts (Regulations) Act 1956 in Apr 1993. It commenced operations in wholesale
debt segment in Jun 1994 and capital market segment (equities) in Nov 1994. The
setting up of the National Stock Exchange brought to Indian capital markets several
innovations and modern practices and procedures such as nationwide trading network,
electronic trading, greater transparency in price discovery and process driven
operations that had significant bearing on further growth of the stock markets in India.

Faster and efficient securities settlement system is an important ingredient of a

successful stock market. To speed the securities settlement process, The Depositories
Act 1996 was passed that allowed for dematerialization of securities in depositories
and the transfer of securities through electronic book entry. The National Securities
Depository Limited (NSDL) set up by leading financial institutions, commenced
operations in Oct 1996. Regulations governing selection of various types of market
intermediaries as depository participations were made. Subsequently, Central
Depository Services (India) Limited promoted by Bombay Stock Exchange and other
financial institutions came into being.
Rapid Growth:-

The last decade has been exceptionally good for the stock markets in India. In the
back of wide ranging reforms in regulation and market practice as also the growing
participation of foreign institutional investment, stock markets in India have showed
phenomenal growth in the early 1990s. The stock market capitalization in mid-2007 is
nearly the same size as that of the gross domestic product as compared to about 25
percent of the latter in the early 2000s. Investor base continued to grow from domestic
and international markets. The value of share trading witnessed a sharp jump too.
Foreign institutional investment in Indian stock markets showed continuous rise
reaching about USD10bn in each of these years between FY04 to FY06. Stock
markets became intensely technology and process driven, giving little scope for
manual intervention that has been the source of market abuse in the past. Electronic
trading, digital certification, straight through processing, electronic contract notes,
online broking have emerged as major trends in technology. Risk management
became robust reducing the recurrence of payment defaults. Product expansion took
place in a speedy manner. Indian equity markets now offer, in addition to trading in
equities, opportunities in trading of derivatives in futures and options in index and
stocks. ETFs are showing gradual growth. Within five years of introduction of
derivatives, Indian stock markets now are ranked first in stock futures and fourth in
index futures. Indian stock markets are transaction intensive and thus rank among the
top five markets in this regard. Stock exchange reforms brought in professional
management separating conflicts of interest between brokers as owners of the
exchanges and traders/dealers. The demutualization and corporatization of all stock
exchanges is nearing completion and the boards of the stock exchanges now have
majority of independent directors. Foreign institutions took stake in India’s two
leading domestic stock exchanges. While NYSE Group led consortium took stake in
the National Stock Exchange, Deutsche Borse and Singapore Stock Exchange bought
equity in the Bombay Stock Exchange Ltd.
Broking Insights:-

The Indian broking industry is one of the oldest trading industries that has been
around even before the establishment of the BSE in 1875. Despite passing through a
number of changes in the post liberalization period, the industry has found its way
towards sustainable growth. With the purpose of gaining a deeper understanding
about the role of the Indian stock broking industry in the country’s economy, we
present in this section some of the industry insights gleaned from analysis of data
received through primary research.

For the broking industry, we started with an initial database of over 1,800 broking
firms that were contacted, from which 464 responses were received. The list was
further short listed based on the number of terminals and the top 210 were selected for
profiling. 394 responses, that provided more than 85% of the information sought have
been included for this analysis presented here as insights. All the data for the study
was collected through responses received directly from the broking firms. The
insights have been arrived at through an analysis on various parameters, pertinent to
the equity broking industry, such as region, terminal, market, branches, sub brokers,
products and growth areas.

Some key characteristics of the sample 394 firms are:

• On the basis of geographical concentration, the West region has the maximum
representation of 52%. Around 24% firms are located in the North, 13% in the
South and 10% in the East
• 3% firms started broking operations before 1950, 65% between 1950-1995
and 32% post1995
• On the basis of terminals, 40% are located at Mumbai, 12% in Delhi, 8% in
Ahmadabad, 7% in Kolkata, 4% in Chennai and 29% are from other cities
• From this study, we find that almost 36% firm’s trade in cash and derivatives
and 27% are into cash markets alone. Around 20% trade in cash, derivatives
and commodities
• In the cash market, around 34% firm’s trade at NSE, 14% at BSE and 52%
trade at both exchanges. In the derivative segment, 48% trade at NSE, 7% at
BSE and 45% at both, whereas in the debt market, 31% trade at NSE, 26% at
BSE and 43% at both exchanges
• Majority of branches are located in the North, i.e. around 40%. West has 31%,
24% are located in South and 5% in East
• In terms of sub-brokers, around 55% are located in the South, 29% in West,
11% in North and 4% in East
• Trading, IPOs and Mutual Funds are the top three products offered with 90%
firms offering trading, 67% IPOs and 53% firms offering mutual fund
• In terms of various areas of growth, 84% firms have expressed interest in
expanding their institutional clients, 66% firms intend to increase FII clients
and 43% are interested in setting up JV in India and abroad
• In terms of IT penetration, 62% firms have provided their website and around
94% firms have email facility


Almost 52% of the terminals in the sample are based in the Western region of India,
followed by 25% in the North, 13% in the South and 10% in the East. Mumbai has
got the maximum representation from the West, Chennai from the South, New Delhi
from the North and Kolkata from the East.

Mumbai also has got the maximum representation in having the highest number of
terminals. 40% terminals are located in Mumbai while 12% are from Delhi, 8% from
Ahmadabad, 7% from Kolkata, 4% from Chennai and 29% are from other cities in
Branches & Sub-Brokers

The maximum concentration of branches is in the North, with as many as 40% of all
branches located there, followed by the Western region, with 31% branches. Around
24% branches are located in the South and East constitutes for 5% of the total
branches of the total sample.

In case of sub-brokers, almost 55% of them are based in the South. West and North
follow, with 30% and 11% sub-brokers respectively, whereas East has around 4% of
total sub-brokers.
Financial Markets

The financial markets have been classified as cash market, derivatives market, debt
market and commodities market. Cash market, also known as spot market, is the most
sought after amongst investors. Majority of the sample broking firms are dealing in
the cash market, followed by derivative and commodities. 27% firms are dealing only
in the cash market, whereas 35% are into cash and derivatives. Almost 20% firms
trade in cash, derivatives and commodities market. Firms that are into cash,
derivatives and debt are 7%. On the other hand, firms into cash and commodities are
3%, cash & debt market and commodities alone are 2%. 4% firms trade in all the

In the cash market, around 34% firms trade at NSE, 14% at BSE and 52% trade at
both exchanges. In the equity derivative market, 48% of the sampled broking houses
are members of NSE and 7% trade at BSE, while 45% of the sample operate in both
stock exchanges. Around 43% of the broking houses operating in the debt market,
trade at both exchanges with 31% and 26% firms uniquely at NSE and BSE
Of the brokers operating in the commodities market, 57% firms operate at NCDEX
and MCX. Around 20% and 21% firms are solely in NCDEX and MCX respectively,
whereas 2% firms trade in NCDEX, MCX and NMCE.


The survey also revealed that in the past couple of years, apart from trading, the firms
have started offering various investment related value added services. The sustained
growth of the economy in the past couple of years has resulted in broking firms
offering many diversified services related to IPOs, mutual funds, company research
etc. However, the core trading activity is still the predominant form of business,
forming 90% of the firms in the sample. 67% firms are engaged in offering IPO
related services. The broking industry seems to have capitalized on the growth of the
mutual fund industry, which was pegged at 40% in 2006. More than 50% of the
sample broking houses deal in mutual fund investment services. The average growth
in assets under management in the last two years is almost 48%. Company research is
another lucrative area where the broking firms offer their services; more than 33% of
the firms are engaged in providing company research services. Additionally, a host of
other value added services such as fundamental and technical analysis, investment
banking, arbitrage etc are offered by the firms at different levels.

Of the total sample of broking houses providing trading services, 52% are based in the
West, followed by 25% from North, 13% from South and 10% from the East. Around
50% of the firms offering IPO related services are based in the West as compared to
27% in North, 13% in South and 10% in East. In providing mutual funds services, the
Western region was dominant amounting to 49% followed by 27% from North; The
South and the East are almost at par with 13% and 11% respectively
Future Plans:-

68% of the firms from the sample have envisaged strategies for future growth. With
the middle class Indian investor as well as foreign investor willing to invest in the
stock market, majority of the firms preferred expansion of institutional and the
Foreign Institutional Investor clients in their areas of growth. Around 84% have
shown interest in expanding their institutional client base. Nearly 51% of such firms
are located in the West, 25% in North, 15% are from South and 9% from East. Since
the past couple of years, India, along with Korea and Taiwan, has been one of the
preferred destinations for the FIIs. With corporate restructuring, rising market
capitalization and sect oral friendly policies helping the FIIs, more than two thirds of
the firms are interested in increasing their FII client base. Amongst these firms, West
again has maximum representation of 53%, followed by North with 22%. South has
15% firms and east makes up for 9%

India has 270 million bank accounts, 30 million mutual fund folios, but only 6 million
unique demat accounts. “This low level of penetration by existing brokerages means
that the scope for business is tremendous.

In a nation with a middle class population of 200 million, most of whom dream of a
better, financially comfortable tomorrow, the stock market is obviously seen as the
perfect place to invest—especially when you consider that stock markets can make
you considerably rich in a short span of time, provided you play your cards right.
However, India’s scam-scarred bourses haven’t exactly inspired trust with retail
investors who want to strike it rich, but who aren’t too well-versed with the rules of
the game. The last few years of the last century and the first year of the 21st century
though have seen a wave of technology enhancements sweeping though the Indian
share markets wiping out archaic conventions. And we have seen processes like
online trading gradually coming to India.

Investing in share market can bring very good returns compared to other kind of
investments like bank fixed deposits, bonds etc. Selecting the right stock in the right
sector at the right time is important for success in equities. Price of the stocks
increases according to the growth of the company plus companies will give bonus and
dividend at periodic intervals.

There are many online brokerage firms in India like Sharekhan, angle broker ltd,
ICICI Direct, India Bulls, Motilal Oswal etc.

There are currently close to 50 online brokerage houses in India with ICICIDirect,
Home Trade, KotakStreet, Sharekhan, Motilal Oswal, IndiaBulls and angle brooking
ltd being some major players. However, due to limited volumes, no online brokerage
is currently making money and a shakeout is imminent in the near future. The going is
expected to get tougher with the advent of capital account convertibility. There is
scope for multiple players as the entire segment is in a growth stage.
Hence, notwithstanding the current sentiment in the market, potential for online
trading is still immense in India.








• icici direct has about 50% market share ,

• indiabulls have 20%market share,

• Sharekhan has 20% and

• Angel trade has 3% market share in broking industry.



Investment is the oxygen of growth. Country’s Increasing investments in Securities

Market, the Co is also investing in multiple spheres - people, technology, capacity
expansion and brand building. This is essential for sustaining the growth momentum
and continuous Value creation. Due to Dematerialization of regional stock exchanges
and favorable terms of SEBI, different investor’s can be a part of Exchange.


Illiquidity outside the scrip’s in futures and options may lead to large scale price
manipulation in illiquid scrip’s and lower price realizations in such counters. Poor
Indian Accounting disclosures may lead to large scale manipulation of figures by
publicly traded companies.


A large domestic market that is still into traditional fixed income and other
government savings is all buy bound to enter the market sooner if not later.


Global Economic slowdown, Currency mismanagement, High global commodity

prices, Over valuation in Index scripts, Non Liquidity in non-derivatives related
scripts, Change in government focus on controlling inflation are the major threats of
the industry.

“Value Money Investment” is a fee based financial counseling firm providing

financial advisory, mediation, and litigation support services since 2003. Our client
base includes high net worth individuals, estates, trusts, corporate executives, and
professionals in various fields.

Whether rendering advice or managing client affairs, our firm subscribes to the seven
principles found in the Code of Ethics of the Financial Planning Association (FPA) -
Integrity, Objectivity, Competence, Fairness, Confidentiality, Professionalism, and

All client matters are held in strict confidence. VMI works closely with the client and
other recognized professional specialists to assist in providing complete, competent,
and confidential counsel in a no conflict of interest environment that is dedicated to
placing the client's interest first and to helping them achieve their financial goals.

The financial planning services rendered by VMI include the following:

• INSURANCE PLANNING- review and recommendations regarding life,

health, and disability insurance coverage for the protection of individuals and
their families.


analysis and review of present investments and trading in respect to the Stock
Market (Primary and Secondary) along with recommendations regarding new
investments including, but not limited to, equities, fixed income, real estate
and other investment options; development of appropriate asset allocation
strategies, risk and return analyses, both historical and projected, along with
determination of specific investment vehicles to accomplish client goals and
We are presently handling 3 sub-broker ships with the companies like Angel
Broking Limited, Arcadia Share & Stock Brokers Pvt. Ltd. and Raj Laxmi
Commodities Pvt. Ltd.

Our Clients largely depends on our expertise advises before investing in the
Stock Market and other investment ventures. We guide them by providing up-
to date information about the companies being traded in the cash markets and
also providing them about the pros and cons of various other opportunities like
MFs and Insurances given by various companies. We help clients by
determining the best way to allocate their assets keeping in mind their overall
risk tolerance, time horizons, and investment objectives in a manner designed
to balance risk while at the same time exposing them to a diverse number of
investment opportunities. We also answer questions about your investments,
monitor performance and make changes as warranted by market conditions or
changes in clients’ personal needs.

VMI is channel partner with angle broking:

Angel Brookings’s tryst with excellence in customer relations began in 1987. Today,
Angel has emerged as one of the most respected Stock-Broking and Wealth
Management Companies in India. With its unique retail-focused stock trading
business model, Angel is committed to providing ‘Real Value for Money’ to all its

The Angel Group is a member of the Bombay Stock Exchange (BSE), National Stock
Exchange (NSE) and the two leading Commodity Exchanges in the country: NCDEX
& MCX. Angel is also registered as a Depository Participant with CDSL.

Angle broking deals in:-

• Equity Trading
• Commodities
• Portfolio Management Services
• Mutual Funds
• Life Insurance
• Personal Loans
• Depository Services
• Investment Advisory

The company has its presence in:-

• Nation-wide network of 21 Regional Hubs

• Presence in 124 cities
• Over 6810 Sub-Brokers & Business Associates
• More than 5.9 lacks Clients

Angel Broking Limited is a corporate member of The Stock Exchange, Mumbai.

The membership of the company with The Stock Exchange Mumbai was originally in
the name of Mukesh R. Gandhi, which was eventually turned into a corporate
membership in the name of Angel Broking Limited.

Angel Broking Limited is managed by Mr. Dinesh Thakkar and he is well supported
by Mr. Mukesh Gandhi, a fifteen years veteran in the market.

The group is well supported by a professional and qualified research team and
efficient operations and back office team, which comprises of highly dedicated and
qualified individuals. Angel has an in-house, state of art research department.

Angel believes in reaching out to the customer at the farthest end rather than by
reaching out to them. The company in its endeavor to give its client the best has
opened up several branches all over Mumbai, which are efficiently integrated with the
Head Office.

Angel Broking Limited is primarily into retail stock broking, with a customer base of
retail investors, which has been increasing at a compounded growth rate of 100%
every year. The company has huge network sub-brokers in Mumbai and other places
outside Mumbai, registered with SEBI, who act as channel partners for the company.
The company presently has total staff strength of around 150 employees who are
spread accordingly across the head office and all the branches.

1. Review of Existing Literature
2. Research Methodology

Kint Dorwin(1988):”Re-Positioning a leading stock broker”- In his study, the

strategic planner of the largest American discount securities, describe how a
comparatively young firm took step to re-positioning itself in the market so as not to
be caught unaware by the problem of encroaching maturity. The lessons of the
exercise are: listen to customer, examine the competition and stake out the ground you
intend to hold in the future

Ko de Ruyter, Jose Bloemer and Pascal Peeter (2000):” Merging service quality
and service satisfaction—In their study, recent research linking service quality and
service satisfaction has raised issues which require conceptual and empirical
elaboration. Among these are the conceptual overlap as well as distinction between
these two customer judgments, the role of expectations and perceptions and question
whether service satisfaction is a super ordinate concept to quality or vice versa. In this
article, an integrative model is presented in which both concept and antecedents are
delineated on the bases of the conceptual advances made in the service marketing
literature recently.

Robert Hudson, Kevin Keasey and Kevin Littler (2006):” Share Trading on the
Web”- In the study, they had given the rapid increase, over the past couple of years,
of share dealing service available on the web. This paper describes the findings of a
research study into the design specification of web – based (net) share trading sites.
The purpose of the research is to highlight the key features of net trading sites across
the global and to identify ‘best of breed’ examples of the features. The research is
based on the latest available literature and review of the majority of the sites across
the globe. With this background in mind, the paper of the first comprehensive review
of the types of features that is available on the net trading sites across the globe

The MARCH survey “Investor Perceptions: A Survey by MARCH Marketing

Consultancy and Research” by D Satish attempts to know the investor’s perception
towards share broker. It examines some interesting choices of the retail investor,
including the reasons behind investing in share market and the risk tolerance levels of
the investors. The investor’s knowledge about the market and what according to him
the best broking company is also analyzed.

“A Study of Attitudes and Trading Behavior of Stock Market Investors” by C S

Shylajan and Sushama Marathe identifies the major factors responsible for
determining the attitudes and trading behavior of stock market investors. The main
factors which have been identified from the review of literature are confidence level
that an investor has, control over his investments, risk taking ability, confidence of the
investor as compared to formal sources such as financial analysts and advisors,
expectation to perform better than the stock market and short-term investment

Nature of Research

The nature of the study entitled “investors expectations towards retail brokerage
companies” is descriptive as well as exploratory in nature. Descriptive research
enables to determine the answer to various questions formulated by the researcher
with prior knowledge of the situation or the problem under study.


The universe taken for the study is delhi.

Data Collection

Both Primary and Secondary data have been collected.

Primary data

It has been collected with the help of questionnaire.

Secondary data

It has been collected through Internet, Books, and Journals

Research Instrument

The research instrument used for the study is structured questionnaire.

Sampling techniques:

For the present study, the techniques of convenience sampling (i.e. non-probability
sampling) is used.
Sample Technique: Convenient sampling

Sample Area: delhi

Sample Size: 30
Analysis Pattern

Graphical presentation has been used to represent data.

Interpretation of data has been done by the way of percentage.

1. Analysis and Interpretation

The collected primary data has been analyzed with the help of percentage analysis and
graphical method.
Q: 1 what is your Occupation?



1 BUSINESS 12 40



4 EMPLOYEE 12 40

It is inferred from the above that 40% of the respondents are doing business, 20%of
the respondents are professionals, and 40% of the respondents are employees.
Q: 2 Name of broker Service you use?



2 KARVY 2 6.66




It is clear from the above 50% of the respondents are trading with ICICI DIRECT,
20% of the respondents are trading with India bulls, 20% with, Sharekhan, 3.33%
with indiainfoline. And these all also trade with angle trade.
Q: 3 what is the amount invested in share trading?


1 Less than RS. 25,000 3 10

2 Rs.25001 to Rs.50000 5 16.67

3 Rs.50001 to Rs.100000 9 30

4 Rs.100001 to Rs.500000 12 40

5 More than Rs.500000 01 3.33

30% of the respondents invested from Rs.50001 to Rs.100000, 40% of the

respondents have invested from Rs.100001 to Rs.500000.

Q: 4 are investment decision is influenced by Past performance of company?

60% respondents say yes they study profile of the company before making
investment.40% respondents say no

Q: 5 what is the basic purpose of your investment?


1 Liquidity 6 20

2 Returns 15 50

3 Capital appreciation 0 0

4 Risk covering 9 30

It is interfered from the chart that 20% of respondent invest in share trading due to
liquidity, 50% for returns and 30% for risk covering.

Q: 6 what is your Mode of Trading?


1 Online 06 20

2 Offline 24 80

mode of trading

Online Offline



It is clear from the above 20% of the respondents are following online mode of
trading and 80% of the respondents are following offline mode of trading.

The ranking of the expected facilities in the software by the respondents is given
in table


1 To view positions taken, traded, etc. IV

2 To view ledger, contact note etc. V

3 Alert facilities depends upon price, percentage changes in the price, VI

volume of the shares etc.

4 Putting orders easily I

5 To view exposures, margin amount etc. II

6 To view charts & to add shares VII

7 To open multiple screens VIII

8 Placing orders in broker office if there is any difficulty to place the order III
from the customers terminal

According to the facilities provided by the brokers, ‘putting orders easily’ is ranked 1st
2nd rank occupies ‘to view exposures, margin amount etc., facility , 3rd and 4th rank
goes to the facilities of ‘placing orders in the brokers office if there is any difficulty to
place the order from the customers’ terminal’ and ‘to view positions taken up by
traded shares etc. 5th rank and 6thrank facility of ‘to view ledger, contact note etc, and
‘alert facilities depends upon price, percentage changes in the price, volume of the

Q: 8 Criteria of Choosing a Share Broker?

Brokerage Expertise Exposure limit Brand name

10 50 30 10
50% respondents choose their broking house on basis of information provided by
them.30% prefer by the exposure limit and the loan facility provided to them.10%
prefer by brand name and brokerage each.

Q: 9 Is there any need of expertise Knowledge before investment?

90% respondents say yes, they required expertise knowledge.10% respondents say no.

Q: 10 most important Service Parameters concerned by investor?

The most important service parameter that came up as a result of survey is
Information i.e. the investors feel that the information contained in the service
package is the key to more profits.

Second major parameter is Quality of service.

20% investors feel that the quickness of service is above par than any other aspect.


I have taken five companies for comparative analysis.

1. angle broking

2. indiabulls

3. Sharekhan

4. icici direct


Comparison on the basis of account opening charges charges minimum charges i.e. 550

On the basis of transaction charges

There are two types of transaction charges.

1. intra-day basis

2. delivery basis

Intra-day basis

Angel broking ltd charges minimum i.e. 0.02% of trade value.

Delivery basis charges minimum 0.25% of trade value.


[ and indiabulls charges nothing for maintains of account.

1. Findings
2. Recommendations
3. Conclusion


The findings of the present study are represented below:

 Most of the male respondents are interested to invest and 40% are running
their own business.
 Respondents prefer the ICICI DIRECT the most.
 40% of the respondents have invested their savings between the level of Rs
100001 and Rs 500001 for share trading.
 Maximum respondent use offline mode of trading and give preference to put
order easily.
 Almost all of the respondents feel that they require expertise knowledge
before investment.
 40% of respondent feels that information provided by the share broker is the
main parameter to judge.
 More than 60% of investor likes to study company profile before the
 It was found that mainly investors look for expertise knowledge while
selecting the broker and for exposure provided by brokers.


Induction Programs
In induction classes the experienced sales staff employees should share their valuable
live experiences and knowledge, which they have experienced while in field.

Weekly magazines:

Must be published and distributed to the investors that can help them for making
better investments.

Sales team must be fully equipped

with latest technology such as using Laptop that can be used for making presentation
to the customers especially to the corporate clients about their product and services
provided by them.

Make your site user friendly so that more and more people know about trading and
do the same also.

 Mode of communication should be very fast and easy and for this the
company can have more terminals and dealers.
 The share brokers can charge Rs 100 for opening and account and for annual
maintenance charge of demat Account.
 They can open the account within 2-4 days,by increasing the process. It will
increase the customer’s confidence level to invest a sizeable amount in the
share market.
 They can provide the exposure more than 15-20 times for the selected
 They can issue the cheque within 4 days after selling the customer shares. So
the customer’s confidence toward the share brokers can be increased.
 Most of customers are not aware of the hidden charges (taxes, stamp duty)
charged by the broking houses. The charge need to be revealed to the

Investing in various types of securities is an interesting activity that attracts people
from all walks of life irrespective of their occupation, economic status, education and
family background. When a person has more money than he requires for current
consumption, he would be coined as a potential investor. The problem of surplus
gives rise to the question of where to invest.
For an investor the main investment objectives are increasing the rate of return &
reducing the risk other objectives like safety, liquidity & hedge can be considered as
subsidiary objectives.
While investing in stock market the first step is to assess a company from a qualitative
standpoint and determining whether you should invest in it are as important as
looking at sales and earnings. This strategy may be one of the simplest, but it is also
one of the most effective ways to evaluate a potential investment.
Moreover growth investors are concerned with growth. The guiding principle of
growth investing is to look for companies that keep reinvesting into themselves to
produce new products and technology. Even though the stocks might be expensive in
the present, growth investors believe that expanding top and bottom lines will ensure
an investment pays off in the long run.
Lastly the Technical analysis is unlike any other stock picking strategy--it has its own
set of concepts, and it relies on a completely different set of criteria than any strategy
employing fundamental analysis. However, regardless of its analytical approach,
mastering technical analysis requires discipline and savvy, just like any other strategy.
The Indian Capital Market constitutes of various investment options for retail
investors. Recently there has been a change in the investment patterns of individual
investors. The investors have started of taking risk in the capital markets. They are
after the higher returns on their investments and thus they look towards broking firms
for their investments.


1. Haugen, Robert A., Modren Investment Theory, Pearson Education, New

2. Kothari, C.R.(2006), Research Methodology Methods & Techniques, New
Age International Publisher, Second Edition
3. Sharpe, Alexander & Wiley, Investment, Prentice Hall, New Delhi




Name of Respondent:-_______________Age:-___________Gender:-___________

Q:-1 what is your Occupation?

1. Business 2.Professional 3.Student

4. Employee 5.House wife

Q: - 2 Name of broker Service you use?

1. Kotak 2. Karvy 3. Sharekhan

4. India Bulls 5. India Info line

6. Angle Broking 7. Others

Q: -3 what is the amount invested in Share Trading?

1. Less than Rs.25000

2. Rs. 25001 to Rs.50000

3. Rs.50001 to Rs.100000

4. Rs. 100001 to RS. 500000

5. More than 5000000

Q: - 4 is investment decision influenced by Past performance of company?

1. Yes 2.No

Q:-5 what is the basic purpose of your investment?

1. Liquidity
2. Returns
3. Capital appreciation
4. Risk covering
5. others

Q: 6 what is your Mode of Trading?

1. Online 2. Offline

Q: - 7 Ranking of the expected facilities in the software by the respondents?

1. To view position taken traded etc.

2. To view Ledger, Contact notes etc.

3. To alert facilities depends upon Price, Percentage change in Price, Volume of

Share etc.

4. Putting Order Easily.

5. To view Exposure, Margin amount etc.

6. To view Charts & to add shares.

7. To open multiple Screens.

8. Placing order in the broker’s office.

Q: -8 Criteria of Choosing a Share Broker?

1. Brand Name 2. Exposure and Loan facility provided by the

3. Expertise Knowledge 4. Brokerage

Q:-9 Is there any need of expertise Knowledge?

1. Yes 2.No

Q:-10 most important Service Parameters concerned by investor?

1. Speed 2. Information

3. Quality 4. Others