A

Project Study Report

On

“Comparative Analysis of the various leading Corporate Brokers

and market potential of IL&FS Investmart in Jaipur”

Submitted in partial fulfillment for

Award of degree of

Master of Business Administration

2008-2010

Rajasthan Technical University, Kota

Submitted By: Submitted To:

Mukesh Sharma Ms. Deepti jaimini

Apex Institute of management & Science,

Jaipur

1
 INDEX

S.N. Particulars P. No.

1 Introduction to the Industry 6

2 Introduction to the Organization 18

3 Research Methodology 52

3.1 Title of the Study 53

3.3 Objective of Study 53

3.4 Type of Research 54

3.5 Sample Size and method of selecting sample 54

3.6 Scope of Study 55

3.7 Limitation of Study 55

4. Facts and Findings 56

5. Analysis and Interpretation 58

6. SWOT 83

7. Conclusion 86

8. Recommendation and Suggestions 89

9. Appendix 101

10. Bibliography 116

2
 PREFACE

A good broker system must be able to cope with an extremely complex and dynamic
environment.”

The microstructure of the stock market in which brokers work is highly dynamic and volatile.
Many stocks are available to be bought and sold, each exhibiting its own patterns and
characteristics that are highly unpredictable. With so many options and considerations that
need to be taken into account, it is an extremely arduous task for a broker to investigate
aspects of the stock market and consistently provide effective advice to their clients.

Thus, brokers perform their day-to-day tasks with the aid of a broker system. Such a system
should provide tools for interacting with exchanges and performing analysis. As a
consequence, these broker systems are quite large and complicated by themselves.

This research aims is to analysis Stock broker on the basis of their services, products, growth,
and their subsidiaries. Because Stockbrokers are one of the main participants in stock
exchanges worldwide, they often act as an agent for their clients, making trades on their
behalf. They also act as advisors, providing suggestions to their clients on what stocks to buy

and sell..

3
 ACKNOWLEGDEMENT
I express my sincere thanks to my project guide Ms DEEPTI JAIMINI, for guiding me right from
the inception till the successful completion of the project. I sincerely acknowledge them for
extending their valuable guidance, support for literature, critical reviews of project and the
report and above all the moral support they had provided to me with all stages of this project.

MUKESH SHARMA

4
 EXECUTIVE SUMMARY

The competitive nature of the broking sector has altered significantly in the recent years
around the globe. With the emerging new players, it gets even more challenging for the old
stagers to retain their place in the ever vacillating broking sector. Apart from the fierce
competition, the regulatory environment is also more stringent. Hence, different corporate
brokers are providing a larger basket of investment options to their clients and at varied rates
so as to not only survive in the industry, but also to outshine their competitors. Some of these
factors have led HSBC Group acquire the maximum share of IL&FS Investsmart (IIL) as its
corporate broker in India. Hence both HSBC and IIL provide each other the competitive
advantage in the corporate broking industry. The main aim of this study is to evaluate the
potential of IIL to be the best among the Corporate Brokers in the Indian domestic market, on
the basis of the products and services offered, as well as the customer relations, and its
recognition among the investors, especially after its recent acquisition by the HSBC Group and
how the two are mutually benefitting through their wide basket of offerings. Apart from this,
identifying the various competitors for IIL and determine what combination of options makes
the ‘best fit’ corporate brokerage at the right price.

5
6
1. Industry Introduction –stock broking Industry
In most industrialized countries, a substantial part of financial wealth is not managed directly
by savers, but through a financial intermediary, which implies the existence of an agency
contract between the investor (the principal) and a broker or portfolio manager (the agent).
Therefore, delegated brokerage management is arguably one of the most important agency
relationships intervening in the economy, with a possible impact on financial market and
economic developments at a macro level.

In most of the metros, people like to put their money in stock options instead of dumping
it in the bank-lockers. Now, this trend pick pace in small but fast developing cities like
Chandigarh, Gurgaon, Jaipur etc.

As the per-capita-income of the city is on the higher side, so it is quite obvious that they want
to invest their money in profitable ventures. On the other hand, a number of brokerage houses
make sure the hassle free investment in stocks. Asset management firms allow investors to
estimate both the expected risks and returns, as measured statistically.

BACKGROUND OF STOCK EXCHANGE IN INDIA

The emergence of stock market can be traced back to 1830. In Bombay, business passed in
the shares of banks like the commercial bank, the chartered mercantile bank, the chartered
bank, the oriental bank and the old bank of Bombay and shares of cotton presses. In Calcutta,
Englishman reported the quotations of 4%, 5%, and 6% loans of East India Company as well
as the shares of the bank of Bengal in 1836. This list was a further broadened in 1839 when
the Calcutta newspaper printed the quotations of banks like union bank and Agra bank. It also
quoted the prices of business ventures like the Bengal bonded warehouse, the Docking
Company and the storm tug company.

Between 1840 and 1850, only half a dozen brokers existed for the limited business. But during
the share mania of 1860-65, the number of brokers increased considerably. By 1860, the
number of brokers was about 60 and during the exciting period of the American Civil war, their
number increased to about 200 to 250. The end of American Civil war brought disillusionment

7
 and many failures and the brokers decreased in number and prosperity. It was in those
troublesome times between 1868 and 1875 that brokers organized an informal association and
finally as recited in the Indenture constituting the “Articles of Association of the Exchange”. On
or about 9th day of July,1875, a few native brokers doing brokerage business in shares and
stocks resolved upon forming in Bombay an association for protecting the character, status
and interest of native share and stock brokers and providing a hall or building for the use of the
members of such association.

As a meeting held in the broker’ Hall on the 5 th day of February, 1887, it was resolved to
execute a formal deal of association and to constitute the first managing committee and to
appoint the first trustees. Accordingly, the Articles of Association of the Exchange and the
Stock Exchange was formally established in Bombay on 3 rd day of December, 1887. The
Association is now known as “The Stock Exchange”.

The entrance fee for new member was Re.1 and there were 318 members on the list, when
the exchange was constituted. The numbers of members increased to 333 in 1896, 362 in
1916and 478 in 1920 and the entrance fee was raised to Rs.5 in 1877, Rs.1000 in 1896,
Rs.2500 in 1916 and Rs. 48,000 in 1920. At present there are 23 recognized stock
exchanges with about 6000 stockbrokers. Organization structure of stock exchange varies.

14 stock exchanges are organized as public limited companies, 6 as companies limited by

guarantee and 3 are non-profit voluntary organization. Of the total of 23, only 9 stock
exchanges have been permanent recognition. Others have to seek recognition on annual
basis.

These exchange do not work of its own, rather, these are run by some persons and with the
help of some persons and institution. All these are down as functionaries on stock exchange.
These are

1. Stockbrokers
2. sub-broker
3. market makers
4. Portfolio consultants etc.

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1.)Stockbrokers

Stock brokers are the members of stock exchanges. These are the persons who buy, sell or
deal in securities. A certificate of registration from SEBI is mandatory to act as a broker. SEBI
can impose certain conditions while granting the certificate of registrations. It is obligatory for
the person to abide by the rules, regulations and the buy-law. Stock brokers are commission
broker, floor broker, arbitrageur etc.

Detail of registered brokers

Total no. of registered Total no. of sub-brokers as on

brokers as on 31.03.2010 31.03.2010

9000 24,000

2.) Sub-broker

A sub-broker acts as agent of stock broker. He is not a member of a stock exchange. He

assists the investors in buying, selling or dealing in securities through stockbroker. The broker
and sub-broker should enter into an agreement in which obligations of both should be
specified. Sub-broker must be registered SEBI for a dealing in securities. For getting registered
with SEBI, he must fulfill certain rules and regulation.

3.) Market Makers

Market maker is a designated specialist in the specified securities. They make both bid and
offer at the same time. A market maker has to abide by bye-laws, rules regulations of the
concerned stock exchange. He is exempt from the margin requirements. As per the listing
requirements, a company where the paid-up capital is Rs. 3 crore but not more than Rs. 5
crore and having a commercial operation for less than 2 years should appoint a market maker
at the time of issue of securities.

4.) Portfolio consultants

9
A combination of securities such as stocks, bonds and money market instruments is
collectively called as portfolio. Whereas the portfolio consultants are the persons, firms or
companies who advise, direct or undertake the management or administration of securities or
funds on behalf of their clients.

Products
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 India. 67% firms are engaged in offering IPO related services. The broking industry
seems to have capitalised on the growth of the mutual fund industry, which was pegged at
40% in 2006. More than 50% of the 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.

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Of the total No 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.

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 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 markets.

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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 respectively.

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.

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 Stock brokers deals invarious investments some are:-

Investments can be classified into the following types:

 Stocks
Broadly, investing in stocks (also known as equities) implies buying a share of
ownership in a company and becoming a shareholder. Companies sell shares of
stock to raise money for start-up or growth. There are two types of stocks, namely,
common stock and preferred stock. Common stockholders have a percentage of
ownership in the company and may or may not receive dividends based on company
profits while preferred stockholders are entitled to dividends at specified times and in
predetermined amounts. Investment returns and risks for both types of stocks vary,
depending on factors such as the economy, political scene, the company’s
performance and the other stock market factors. Stocks are more volatile and riskier
than bonds.

 Cash-equivalent investments:
These include passbook savings accounts, certificates of deposit (CDs) and treasury
bills. These investments generally deliver a more stable rate of return. Though, on
the other hand, the rate of return (after taxes are paid) is so low that these don’t
keep pace with inflation. A passbook savings account, money market fund or CD
may give the investor a quick access to his/her cash and may provide more short-
term security. However, they’re not designed for long-term investment goals like
retirement.

- Certificate of Deposit (CDs): It refers to a fixed period, interest-bearing investment

with a bank or savings & loan. An FDIC-insured CD is a low-risk investment.

- Passbook Savings: A bank account that generally provides a low, guaranteed,

fixed rate of return.

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 Debt securities:
This form of investment provides returns in the form of fixed periodic payments and
possible capital appreciation at maturity. It is a safer and more 'risk-free' investment
tool than equities. However, the returns are also generally lower than other
securities.

 Derivatives:
These are financial contracts the values of which are derived from the value of the
underlying assets, such as equities, commodities and bonds, on which they are
based. Derivatives can be in the form of futures, options and swaps. Derivatives are
used to minimize the risk of loss resulting from fluctuations in the value of the
underlying assets (hedging). One of the derivative contracts is Options.

 Options:
Options give the buyer the right to buy or sell an underlying asset at a certain price
within a specified time period. Selling or buying options involves two parties, namely
a buyer and a seller. The strategy of selling options is popular mostly with traders
who are capable of managing the element of risk that is inherent in such
transactions. Options trading involves understanding market conditions and
predicting where the markets are headed. So, when a trader believes that an asset
will appreciate in the future, he/she is likely to buy the asset at a premium value.The
instrument that gives an options holder this right to buy the underlying asset is called
a call option. A put option gives the buyer the right to sell the asset before the
predetermined date.

Options are particularly used for:

o Speculation: Buyers speculate on the extent of price movement in a financial

instrument over a specific period.
o Hedging: You can use options to hedge your investments or business contracts
against a possible downside.
 Types of Options:

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 The various types of options include:

o Exchange traded options: These options have standard contracts that are settled
through clearing houses. Some of the exchange traded options include stock
options, bond options and options in futures contracts.

o Over-the-counter options: These options are contracts between two private parties.
Some of the OTC options are interest rate options and currency cross rate options.

 Commodities:
The items that are traded on the commodities market are agricultural and industrial
commodities. These items need to be standardized and must be in a basic, raw and
unprocessed state. The trading of commodities is associated with high risk and high
reward. Trading in commodity futures requires specialized knowledge and in-depth
analysis. Whoever plans to diversify his/her investment portfolio and earn high
returns from price fluctuations should invest in the commodity market. Despite risk
factors, commodity trading is preferred by investors who like to take risks so as to
earn high returns even when trends are unpredictable.

 Mutual funds:
A mutual fund is a professionally-managed form of collective investments that pools
money from many investors and invests it in stocks, bonds, short-term money
market instruments, and/or other securities.[1] In a mutual fund, the fund manager,
who is also known as the portfolio manager, trades the fund's underlying securities,
realizing capital gains or losses, and collects the dividend or interest income. The
investment proceeds are then passed along to the individual investors. The value of
a share of the mutual fund, known as the net asset value per share (NAV), is
calculated daily based on the total value of the fund divided by the number of shares
currently issued and outstanding.

Mutual Fund is an instrument of investing money. Nowadays, bank rates have fallen
down and are generally below the inflation rate. Therefore, keeping large amounts of

15
 money in bank is not a wise option, as in real terms the value of money decreases
overa period of time.
A common investor is not informed and competent enough to understand the
intricacies of stock market. This is where mutual funds come to the rescue.

A mutual fund is a group of investors operating through a fund manager to purchase

a diverse portfolio of stocks or bonds. Mutual funds are highly cost efficient and very
easy to invest in. By pooling money together in a mutual fund, investors can
purchase stocks or bonds with much lower trading costs than if they tried to do it on
their own. Also, one doesn't have to figure out which stocks or bonds to buy. But the
biggest advantage of mutual funds is diversification.

Diversification means spreading out money across many different types of

investments. When one investment is down another might be up. Diversification of
investment holdings reduces the risk tremendously.

Types of Mutual Funds:

On the basis of their structure and objective, mutual funds can be classified into
following major types:

 Closed-end Funds
 Open-end Funds
 Large cap Funds
 Mid-cap Funds
 Equity Funds
 Balanced Funds
 Growth Funds
 No load Funds
 Exchange Traded Funds
 Value Funds
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 Money Market Funds
 International Mutual Funds
 Regional Mutual Funds
 Sector Funds
 Index Funds
 Fund of Funds

Studies have shown that financial services and brokerage firms in India have seen
profits go up by 136% on a sequential quarter basis, i.e. compared to the quarter
ended December’08. The improved bottom line was largely due to IL&FS
Investsmart cutting down on its losses from the previous quarter.

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18
2. Company Introduction - IL&FS Investsmart Limited

IL&FS Investsmart is one of India's leading financial services organization providing

varied range of Financial Services for corporates and individuals. Investsmart has a
strong presence across wide range of products and operates in the areas of
Investment Management and Advisory Services, Broking Services, Merchant
Banking, Project Syndication, Equity and Debt Broking, Commodity Broking and
Distribution of Financial Products.

The company is now held by HSBC, one of the world's largest banking and financial
services organisations.

IL&FS Investsmart Ltd has an all India presence through its network of branches and
franchisees over 126 cities. Following a successful Initial Public Offer IPO), IIL has
been listed on both the National Stock Exchange (NSE) and the Bombay Stock
Exchange (BSE). IIL is geared towards understanding and achieving the financial
goals of all its customers, through its specialists in the aforesaid areas.

 Note: Exchange rate used:

1USD = 47.52 INR (as on May 2009)

ORGANISATION STRUCTURE

COMPANY HISTORY

19
The company is providing customized financial management solutions to individuals
and corporate. Their principal activities are to provide brokerage related, investing
and financial services. They also provide loan and credit activities, insurance
products and security dealing services. IL&FS Investsmart Ltd was incorporated as
Investsmart India Ltd on September 1, 1997, as a wholly owned subsidiary of
Infrastructure Leasing & Financial Services Ltd. The company commenced equity
broking on NSE and BSE in February 1998 and August 1999 respectively. In June
2000, the company commenced derivative broking on NSE and in January 2001,
they launched investment advisory products. In January 2002, with the view of
consolidate the IL&FS's interests in the capital markets, IL&FS Merchant Banking
Services Ltd and DebtonNet India Ltd were merged with the company. The company
also forayed into insurance distribution by setting up wholly owned subsidiaries
namely Investsmart Insurance Agency Pvt Ltd and Investsmart Insurance
Distribution Pvt Ltd. In March 2003, the name of the company was changed from
Investsmart India Ltd to IL&FS Investsmart Ltd. During the year 2003-04, the
company acquired 4 branches of Tata TD Waterhouse Securities Pvt Ltd. They
incorporated a wholly owned subsidiary, IL&FS Investsmart Commodity Brokers Ltd
and also acquired IL&FS Academy for Insurance and Finance Ltd during the year.
During the year 2004-05, the company has Inducted two strategic partners namely,
Softbank Asia Infrastructure Fund L P (SBAIF) and E*Trade Financial Corporation.
SBAIF is a large private equity fund with funds under management exceeding USD 6
billion and E*Trade is one of the largest retail broking and banking equity based in
US with the presence in all major world markets. During the year, the company
commenced derivative broking on BSE and also commenced commodity broking
business through their wholly owned subsidiary, IL&FS Investsmart Commodity
Brokers Ltd. During the year 2005-06, the company incorporated a wholly owned
subsidiary namely IL & FS Investsmart Asia Pacific Pvt Ltd in Singapore to
undertake securities services related business. During the year 2009-07, the
company incorporated IL&FS Investsmart Securities Ltd as a wholly owned
subsidiary and transferred their Portfolio Management Services to the subsidiary
company. Also, they acquired 100% stake in Tajir Investment & Properties Ltd, a
Non-Banking Finance Company on a going concern basis. During the year 2007-08,
20
the company transferred Merchant Banking and Underwriting Business to IL&FS
Investsmart Securities Ltd. The company received the 'Best Performing National
Financial Advisor Award' from CNBC for the two years.

Acquisition of IL&FS Investsmart Limited by HSBC Group:

HSBC Group acquired 93.86 per cent of IL&FS Investsmart Limited in the year 2008.
The deal was settled for a total consideration of INR 1,311.0 crore (approximately
US$296.4 million). Investsmart gives HSBC access to the world’s third-largest
investor base, with over 20 million investor base.

Under the transaction agreement, HSBC acquired 43.85 per cent of Investsmart
from E*TRADE Mauritius Limited, an indirectly wholly-owned subsidiary of E*TRADE
Financial Corporation, and 29.36 per cent from Infrastructure Leasing and Financial
Services Limited (IL&FS). The decision to acquire a controlling stake in Investsmart
triggered an open offer to public shareholders, through which HSBC accepted
shares equivalent to 20.65 per cent of Investsmart's capital. E*TRADE Mauritius
Limited, IL&FS and those that tendered shares through the open offer received
INR200 per share for their Investsmart shares. In addition, IL&FS was paid, as part
of a three-year non-compete agreement, INR82.0 crore (approximately US$17.9
million). In accordance with local regulations, HSBC paid interest of INR2.3 per
share to the public shareholders who tendered their shares. This amounted to
INR3.31 crore approximately US$0.72 million).
HSBC was advised on the acquisition by the investment banking division HSBC
Global Banking and Markets.

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 OWNERSHIP PATTERN

Table 2.1 Shareholding Pattern of IL&FS Investsmart Ltd.

No. of Equity % of total paid-up

Shares capital
HSBC Securities 34,922,751 50.01
and Capital
Markets (India)
Pvt. Ltd.
HSBC Violet 30,625,692 43.85
Investments
(Mauritius) Ltd.
Others 4,287,830 6.14
Total 69,836,273 100.00

22
Chart 2.1 A break up of the Equity Shares of IL&FS Investsmart Ltd.

Percent of Total paid-up capital

HSBC Securities & Capital Markets (India) Pvt. Ltd. HSBC Violet Investments (Mauritius) Ltd.
Others

6%

50%

44%

Chart 2.2 Percentage break up of total paid-up capital

DIVISIONS OF THE COMPANY

The following are the divisions of IL&FS Investsmart Limited:

 The Investment Advisory and Broking Division

 Merchant Banking Division
 The Project Syndication Division
 Institutional Equity Broking Division
 Institutional Debt Broking division

NUMBER OF PEOPLE

IL&FS Investsmart’s 1518 employees provide a complete range of investment

solutions to over 160,000 customers in India through its 78 branches and 168
franchisee outlets from over 126 cities. The acquisition by HSBC Group raises the
customer base to 20 million retail investors across the country.

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 THE CHAIN OF COMMAND AND DEPARTMENTS

Chief
Executive
Officer

Executive
Executive
Vice President
President

Vice
Vice Vice
Vice
President President

Zonal Zonal Zonal Zonal

Head Head Head Head
(North)
(North) (East)
(East) (South)
(South) (West)
(West)

State Head State Head State Head State Head

Rajasthan)

District
District District
Head
Head Head
(Jaipur)

Branch
Branch
Branch
Branch manager
manager
Manager
Manager
(Ashok (Vaishali
(Ashok Marg)
Marg) nagar)
nagar)

Dealings Operations Sales

Sales
Department Department
Department Department
Department

Associate Associate
Associate
Operations Sales
Sales
Customer
Customer Customer Customer Sales
Sales
Customer Manager Operations Manager
Manager
Relationships
Relationships Relationships Relationships Manager Manager
Manager
Manager Manager Manager
Manager

Management
Management
Trainess

24
 FINANCIAL PROFILE OF THE COMPANY

 IL&FS Investsmart is listed on the National Stock Exchange (NSE) and Bombay
Stock Exchange (BSE) and its Global Depository Shares are listed on the
Luxembourg Stock Exchange.
 Consolidated net loss after tax of Rs109.43 crore (US$21.54 million) for the year
ended 31 March 2009 – down Rs164.39 crore (US$32.36 million) compared with a
profit of Rs54.96 crore (US$10.82 million) for the previous year.
 Operating income of Rs218.91 crore (US$43.08 million) for the year ended 31 March
2009 – down Rs173.18 (US$34.08 million), or 44.2 per cent, compared with
Rs392.09 crore (US$77.16 million) for the previous year.
 Loss per share of Rs15.67 (US$0.308) for the year ended 31 March 2009 – down
from earnings per share of Rs7.87 (US$0.155) for the previous year.

Commentary
IL&FS Investsmart recorded a net loss of Rs109.43 crore (US$21.54 million) for the
year ended 31 March 2009. This represents a Rs164.39 crore (US$32.36 million)
decrease compared with the year ended 31 March 2008.
The downturn in the equity markets has lead to a steep fall of 50.5 per cent in equity
broking revenue from Rs134 crore (US$26.37 million) to Rs66.4 crore (US$13.07
million). Financing income has reduced 24.3 per cent from Rs129.4 crore (US$25.47
million) to Rs97.9 crore (US$19.27 million) on account of deteriorating market
conditions coupled with implementation of more prudent credit policies.

Operating expenses increased by Rs10.70 crore (US$2.11 million), or 3.5 per cent,
compared to the previous year mainly due to the costs associated with aligning the
business with HSBC and increased provisions for loss contingencies. In addition, a
goodwill impairment charge of Rs8.8 crore was recognised against one of the
subsidiaries.
25
 ASSOCIATE COMPANIES

IL&FS Investsmart Securities Limited (IISL):

IL&FS Investsmart Securities Limited (IISL) is the wholly owned subsidiary of the IIL
and is engaged in Equity market through its memberships on National Stock
Exchange (NSE) & Bombay Stock Exchange (BSE)

IISL offers Equity & Derivatives Broking, PMS, IPO Mobilisation, Mutual Funds
Distribution and other Investment Advisory Services to both retail as well as
institutional clients through a network of branches and franchisees across India. IISL
also, has a quality team of researchers that advise the clients across industries on a
regular basis.

IL&FS Insurance & Risk Management Services (IIIRMSL):

IIRMSL is a wholly owned subsidiary of IIL and offers Insurance Broking services for
individuals, groups as well as corporate clients.  As a broker, we also provide
advisory services for all insurance products offered by various insurance companies.

The current set up is spread across 11 locations involving dedicated teams doing
retail distribution of insurance products. Within a short span of less than 1 year,
IIRMSL has managed be become one of the top 10 insurance broking companies in
India.

IL&FS Academy for Insurance and Finance Limited (IAIFL):

IAIFL is a wholly owned subsidiary of IIL and is one of the first and the largest
Insurance Training Institution licensed by the IRDA and has established a first mover
advantage in this business.  It is the largest training institution in the pre-licensing
segment having a national footprint in 30 cities.

26
IAIFL has till date trained about 40,000 advisors across all the private insurance
companies at various parts of the company. It has implemented a structured
framework for delivery of the 100 hours Agents Training programs, which includes
faculty resources, institutionalised mechanisms for program evaluation, feedback
reports to the clients and ongoing program up-gradation to ensure quality and
uniformity of approach across multiple locations in the country.

IL&FS Investsmart Asia Pacific Private Limited (IIAPPL):

IL&FS Investsmart Asia Pacific Private Limited (IIAPPL) is the wholly owned
subsidiary of the IIL and is based out of Singapore. IIAPPL is involved in servicing
NRI's and FII's from the Asia Pacific region to access the Indian capital markets.
IIAPPL works in close association with both the Retail as Institutional Business
Divisions in India

IL&FS Financial Services Limited (IIFSL):

IL&FS Investsmart Financial Services Limited (IIFSL) (Formerly known as Tajir
Investment & Properties Limited) is a Non-Banking Finance company registered with
Reserve Bank of India. IIFSL has been recently acquired by IL&FS Investsmart
Limited (IIL) as a wholly owned subsidiary. IIFSL was engaged in hire purchase
activity and sale of properties till June 30, 2006. However, in view of the buoyancy
observed in Indian financial sector and its outlook for the coming years,
management decided to diversify into financial sector by offering new products. After
reviewing various options, the management of the company decided to take up
securities financing related activities w.e.f. July 1, 2006 and the Company is
currently offering financing products such as Margin Trade Financing, Loan Against
Shares, IPO Financing and ESOP Financing.

27
 PRODUCTS & SERVICES

The products and services at IIL can be categorized as follows:

1. Retail offerings

These can further be categorized as follows:

 ADVISORY PRODUCTS

Mutual Funds: As a part of IIL’s Mutual Fund Advisory Services, a team of

experts across India helps its customers in selecting the right scheme from over
500 offerings, matching their needs, goals and risks. In addition to this, IIL also
helps its customers constantly monitor their MF portfolio, making changes
according to their changing needs as per the market scenario, in order to make
their money work for them.

At IL&FS Investsmart (IIL), the expert teams of relationship managers interact with
the customers on a regular basis to discern their changing needs, in tune with the
changing environment. Most of us require some assistance in making selections
appropriate to our individual needs. We need sound advice from people who have
expertise to decipher the financial jargon of investment options available today.
The Investment Advisory Team at IIL helps its customers customize and execute
plans, based on their individual needs towards wealth maximization.

Portfolio Management: Financial markets today offer enormous growth

potential. But managing one’s own investments can be an extremely
challenging task. Anticipating market trends, assessing the impact of
socio-economic changes on one’s investments, keeping abreast of latest
corporate developments and financial analysis all IIL provides its
customers with, in its IIL-PMS, a Discretionary Portfolio Management
Service through its team of experts.

28
-About the IIL PMS Options
IL&FS Investsmart offers a choice of two types of PMS schemes since
every investor is unique and has unique investment preferences and risk
appetites. These schemes are:

iPreserve- is a discretionary portfolio management scheme, which invests

in a mix of various mutual fund schemes. Ideal for investors who wish to
invest in maximizing returns from mutual funds but cannot make the right
choices.

iGrowth- is a discretionary portfolio management scheme, focused on equities.

Sub-schemes are based on investors’ risk profile.

IPO Advisory & Distribution Services

IL&FS Investsmart (IIL) is one of India's leading companies engaged in the activity
IPO Advisory and Distribution. Its primary markets division does a comprehensive
research before recommending issues to clients. IIL’s pan India reach helps it in
mobilising large number of applications across India during public offerings, this
has ensured that it constantly figures amongst the top ranking performers in the
primary market distribution space.

As a part of the online offering of IIL, customers can invest in IPO's not only through
its branches but also through its website, which also provides its customers with
regular updates on the IPO scenario, Open IPOs as well as all the forthcoming IPO's
at any given point of time. The primary markets distribution division works in

29
 conjunction with the retail and wholesale distribution networks, as well as its private
client group.

Insurance Advisory Services

IL&FS Investsmart (IIL) works as a one stop shop for all Insurance & Retirement
needs. IIL has also been recognized as Best Retail Financial Advisor by CNBC TV
18 for two years in a row 2006-07 and 2007-08.

IIL is a composite insurance broker providing comprehensive risk management

solutions, both for corporate as well as individuals.

The solutions include identification, measurement and assessment of the risk and
handling of the risk, of which insurance is an integral part. We deal into both life
insurance and general insurance products for all insurance companies across India.

The key service features include the following:-

o Risk management solutions for all

o Comprehensive research for all policies available on a regular basis
o Recommendations on a comprehensive insurance cover based on clients
needs
o Maintain proper records of client policies
o Continuous monitoring of client account

30
  TRADING PRODUCTS

Equities & Derivatives

As a part of the Investment Advisory and Broking Services for individuals, IIL offers
end-to-end solutions to its investors, from capital build-up to wealth generation and
retirement planning, starting with value added investment recommendations that suit
their investment objectives, then executing these and finally step-by-step monitoring
to ensure that they achieve their long term financial goals.

IL&FS Investsmart is a full service broking house offering services across both the
Cash and F&O segments. IIL is a member with National Stock Exchange (NSE) as
well as the Bombay Stock Exchange (BSE).

IIL’s offerings include 3 different trading platforms to suit the individual needs of its
customers, depending upon their profile. These are:

SmartTRADE: Trading platform for the Active Traders

A view of the platform as it would appear on the screen

SmartTrade is an EXE based desktop software designed for active traders who
transact frequently to capture favorable short-term price movements. The platform
offers active traders the tools they need to make critical decisions with confidence.
31
 SmartTrade is designed and built from the ground up to address the needs of active
traders. SmartTrade makes the most of state-of the-art technology to deliver power,
speed and reliability. Through an easy-to-use interface, users are provided with the
same tools and advantages that the professionals enjoy. Its features include:

o Fully customizable display

The save desktop option allows the traders to save their created trade screen layout,
so the next time they access the application the created layout is not lost.

o Dynamic charts with indicators

It provides the traders a wealth of charting capabilities and timing indicators, which
allow them to go right into the action with real-time daily charts, and intra-day charts.
They can watch price movements by minutes, days, or weeks.

o EOD charts
SmartTrade puts up to 5 years of in-depth market history at the trader’s command
with the power to instantly back-test any trading strategy they design, before risking
one rupee of their trading capital.

o Real-time market data

Traders can get real time market data from both the NSE and BSE similar to what
their broker gets.

o Advanced alert capabilities

Alert Window allows the traders to be free from watching every tick. They can be
notified once a security has reached the set parameters. Multiple securities can be
monitored using the set parameters. These alerts can be triggered both visually and
audibly.

o Live order status

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 Tracking all the orders of the trader is made easy through the order status screen.
Further drill down into all details pertaining to an order is available in the order detail
sub report.

o Track orders real-time

Traders can track their stock order and trades in real time.

o Real-time position updates

All the positions of the traders are updated automatically and instantly. There is no
need to use refresh button at all.

o Dynamic buying power

It reflects the trader’s credits and debits instantly on every trade execution. There is
no need to refresh each statement to know the latest buying limits.

o Derivative chain
This feature provides the traders with a list of all derivative contracts available for the
selected security. To view derivative prices of a security, trader just needs to right
click on the symbol and click on derivative chain.

o Lock terminal option

If the trader’s system is unattended this function locks the trading platform for the
trader and can be accessed again only on providing the proper login details.

o Message window docking

This feature enables the trader to receive trading messages, intra-day trading calls,
and messages from both the exchanges flashed real time onto their screen.

33
 SmartINVEST: Trading platform for the Serious Investors

A view of the platform as it would appear on the screen

It is a browser-based system designed for customers who transact occasionally. It is

ideal for investors who believe in the Buy and Hold approach towards investment in
equities. SmartInvest's capability as a browser-based trading platform gives the
investors the benefit of real-time streaming data with the flexibility of trading on any
Internet capable system. With access to both the NSE & BSE, the investor is in the
driver's seat when routing your order to the best price on either of the exchanges.
SmartInvest sophisticated yet easy to use point and click order entry interface allows
you to react more quickly to the markets and make better decisions. Its features
include:

o Instant loading
The browser-based applet system allows the investors instant access to their
account with no wait time, unlike other systems that take a few minutes to load.

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o Works behind a proxy
This platform can be accessed on any Internet enabled network. Investors can
access it even from their place of work.

o Live streaming quotes

Investors can keep an eye on the stocks they care about most with streaming, real-
time quotes and customizable market data. Color-coded price changes help them to
spot trends and react to them quickly.

o Multiple watch lists

The new watch list option allows the investors to create up to 10 watch lists. Each
watch list can be personalized by inserting securities which they would like to view
as a group.

o NSE & BSE Access

It facilitates flexibility of trading on both the NSE & BSE via a single screen.

o Single order form for Cash and FnO

Single order form offers the investors convenience of transacting in various
segments of the market without having to switch between multiple windows.

o Point and click order entry

Makes order entry quick and simple with a click on the security the same gets
inserted into the order form on the investor’s trade screen.

o Hot Key Functions

Using a single keystroke (Hot Key) function, investor can achieve important tasks
very similar to a broker's terminal. Accessing important reports is also one keystroke
away.

35
o Market Depth Window
It gives an immediate "at a glance" info about the stock the investor is following. The
view provides the best 5 bid and offer quotes and the outstanding order quantities.

o Back Office Access

View segment wise ledger bills and contract notes, trades, positions, account
balance, realized/unrealized profit & loss, and buying power all in real time.

SmartSTART: Trading platform for the Beginners

A view of the platform as it would appear on the

screen

36
 It is a powerful browser based trading system for those who are relatively new to
online investing.  A unique integrated account, which integrates the investor’s
banking, broking, and Demat accounts. A comprehensive trading service, which
allows one to invest in equities and derivatives. SmartStart trading platform allows
the investor the flexibility of trading on any internet capable system, with access to
both the NSE and BSE. Its features include:

 Trade on NSE and BSE

Flexibility of trading on both the NSE & BSE via a single screen.

 Fully customizable display

The save desktop option allows you to save your created trade screen layout, so the
next time you access the application the created layout is not lost.

 Integrated accounts (Bank, Demat & Trading)

Integrates your banking, broking and demat accounts. This enables you to trade in
shares without going through the hassles of tracking settlement cycles, writing
cheques and Transfer Instructions, chasing your broker for cheques or Transfer
Instructions etc.

 Live order status

Tracking all your orders is made easy through the order status screen. Further drill
down into all details pertaining to an order is available in the order detail sub report.

 Dynamic buying power

Reflects your credits and debits instantly on every trade execution. No need to
refresh each statement to know your latest buying limits.

 Works behind a Proxy

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 This platform can be accessed on any Internet enabled network. You can access it
even from your place of work.

 Back office access

View segment wise ledger bills and contract notes, trades, positions, account
balance, realized/unrealized profit & loss, and buying power all in real time.

One additional feature that applies to all the Trading Platforms is SmartCall, where
the investor can enjoy the convenience to trade over the phone.

The experienced team of Research Analysts and Advisory Managers guide the
investors with appropriate solutions, backed by in-depth research, knowledge and
expertise on a regular basis and constantly help them with the strategies for
investment in equities, recommendations for trading on futures and options, hedging
with Nifty and other product opportunities of risk-less arbitrage in various segments.

38
  NRI SERVICES

NRI Products from IL&FS Investsmart:

IL&FS Investsmart is committed to creating a differentiated financial services

organisation by leveraging technology to deliver the most compelling combination of
product, service and price to a value driven consumer. IIL’s end-to-end investment
solutions guide its NRI customers at every step of their Investment in India right from
PAN Card Assistance to formulating and executing investment plans based on NRI
requirements, robust trading platforms till the assistance on accounting & income tax
returns filing in India.

NRI Product Offerings:

NREquity

Facilitates easy trading in NSE and BSE listed stocks by offering comprehensive
trading solutions to the customers through its web and software based trading
platforms which is equipped with a host of unique features to cater to their trading
needs.

IL&FS Investsmart, offers its customers a smooth online trading experience with
exceptional trading tools, service and client support enabling them to make quick
trading decisions.
Its 3-in-1 Trading Platform enables its customers to do online delivery based trading
at their convenience. This account links their Banking, Demat and Trading account,
thus providing you a seamless platform to trade efficiently and conveniently.
Customers can also place their orders through their dedicated Call & Trade Facility
or contact their Relationship Manager.

NRI Portfolio Management Services- customized solutions to meet the investment

needs.
39
 Indian markets today offer enormous growth potential. Anticipating the Indian market
trends, assessing the impact of country’s socio economic changes on an individual’s
investments, keeping abreast of latest corporate developments and financial
analysis can be extremely challenging task. Therefore, managing one’s investments
may become nearly a full-time affair that requires considerable time and expertise.
IL&FS Investsmart offers solutions that are tailored to meet the investment needs of
an NRI. It offers a choice of two types of Portfolio Management Services schemes
which are focused on returns from various asset classes.

 iGrowth
It’s a discretionary Portfolio Management Scheme, focusing on investments in
equities with an objective of growth. It aims at creating long-term wealth through
judicious stock selection and asset location.

 iPreserve
This scheme invests in a mix of various mutual fund schemes, ideal for investors
who wish to invest in maximizing returns from mutual funds but cannot make the
right choices.

Additional NRI Product Offerings:

Mutual Funds

IIL offers an opportunity to spend in a broad spectrum of Mutual Funds with more
than 500 schemes to choose from to match individual needs, goals and risk profiles.
Customers can constantly monitor their MF portfolio and make changes according to
their needs as per the market scenario, in order to make their money work for them.

IPO

40
 As a part of wide range of offerings, NRIs can also invest in IPOs in India by
applying through any of the branches in India or by calling the customer service
desk. Through the company website, one can receive regular updates on the IPO
scenario, ongoing IPOs as well the forthcoming IPOs at any given point of time.

Insurance

IIL serves as the one stop shop for all the Insurance and Retirement needs. As a
composite Insurance Broker, IIL provides comprehensive risk management
solutions. IIL offers both life insurance and general insurance products for all
insurance companies in India.

Other Wealth Management Products

IIL’s basket of Wealth Management products includes Real Estate products, Private
Equity Funds and structured products in order to suit varied individual investment
needs.

Value Added Services to NRIs

IL&FS Investsmart through its rich investment solutions and various alliances,
endeavours to provide the services and support that NRIs need to manage their
investments in India. It helps its customers through the entire investment process,
step-by-step with a host of innovative and efficient services.

- Pan Card Assistance - A doorstep delivery of Pan Card at one’s foreign location.

Permanent Account Number (PAN) Card being a mandatory requirement for NRIs
investing in financial products in India, one has to face an additional task of
communicating with PAN processing agencies in India. Being located in a different

41
 country with a different times zone makes this task all the more difficult and daunting
for NRIs. IIL provides the convenience of applying for the Pan Card at the comfort of
the customer’s home at the time of availing the service itself.

- Accounting and Income Tax Returns filing in India – Making tax filing in India
easy.

IIL provides assistance and expert guidance in filing of taxation returns to its NRI
customers in India, through its exclusive alliances. This helps in better accountability
and maintenance of tax records.

- Research and Advisory – For sound investment decisions

The Investment solutions offered by IIL are backed by in-depth research generated
by top-drawer research team. Facilitates news and updates on the basis of daily and
monthly market analysis to keep track of the investments of its NRI customers in
India.

2. Institutional Offerings

Investment Banking Services:

IL&FS Investsmart (IIL) offers an extensive range of Investment Banking Services

for equity related products and instruments. Its research team advises the customers
on transactions like business structuring and capital raising opportunities based on
their corporate needs and state of capital markets. Services they specialize in
include the Management of:

 Initial Public Offering (IPOs)

 Follow-on Offerings
 Qualified Institutional Placements (QIPs)

42
 Buyback of Equities
 Open Offers
 Mergers & Acquisitions
 Private Equity Placements
 ESOPs

They identify, analyse and respond instantly to the customer’s needs. Since
inception, IIL has been structuring and delivering financial solutions geared towards
its customer’s needs. This is implemented through an understanding of investor’s
business needs and their preferences. IIL’s distribution reach and financial
structuring capabilities of the team ensures a winning combination for the client
company.

Institutional Equity Broking Services:

Our efficient execution, quality research, top quality human resources and complete
compliance with stock exchange regulations, as well as business standard ethics
lend towards our exemplary services to investors, through IPOs, equities, derivatives
and mutual funds

IIL also focuses on identifying undiscovered value stocks to investors. Through its
gamut of services, this division is well-suited to corporate investors, banks, financial
institutions, insurance companies and FII’s. IIL’s Institutional Equity Business (IEB)
is well positioned to offer support for a complete range of investment banking service
to corporates.

It offers a wide array of products and services, specifically aimed at improving

market capitalization of forward looking companies. IIL works closely with
institutional investors, private equity investors and corporates. The research division
has a designated team for each asset class and consists of qualified professionals
who evaluate market trends and make unbiased and objective reports.

43
 IIL has been hosting round table conferences with leading CIOs / Fund Managers
etc. Also, conducts activities like organising of road shows, enabling the senior
management to interact with FIIs, regular conference calls for institutional Investors
etc. This works as a pre-requisite to investing in stocks. Its expertise in this area also
extends to international investors from Singapore, Hong Kong, USA and the UK.

Institutional Debt Broking Services:

IIL’s institutional debt broking division includes, secondary market broking, primary
market debt placement & distribution and provident fund advisory services.

Secondary debt broking is the principle service provided by this division. The clients
mainly comprise of institutional debt players, such as banks, primary dealers, mutual
funds, large provident funds and in some cases corporate treasuries. The division
empanelled with almost all banks, primary dealers and mutual funds, on whose
behalf it acts either on the buying or selling side. All types of debt papers are
covered, including government securities, treasury bills, public sector bonds,
corporate bonds etc. This desk also provides transacting and advisory services to
various provident funds and HNI clients.

The primary market services cover placement of debt paper issued by corporates,
with institutional segments covering banks, mutual funds etc. These services cover
following activities :-

 Advising the clients on the issuance including the instrument, quantum,

timing, other instrument specific structuring such as put / call option, conversion
option and rating. Assisting in the rating exercise and suggesting various means and
options to improve rating if so desired, through “Structured Obligations” or other
mechanisms.
 Pre marketing the placement / issuance
44
 Selling / placing the issuance
 Assisting in any related documentation for the issuance
 Assisting in all other steps to complete the issuance for draw down funds

The debt instrument covered by this division cover both short term as well as longer
term instruments. Commercial paper and MIBOR Linked Bonds are popular among
the short-term instruments. The division uses a proprietary online platform called
“DebtonNet” for online book building of debt issuances.

3. Other Services

Besides the above mentioned services, IIL also provides services like:

 Well versed reports on Mutual funds, Market conditions, Share Market etc. on a daily
as well as weekly basis
 Free of cost timely updates on advisory services through SMS on the request of its
customers
 Providing Market Information and Company Information through an extensive
research team

45
Why Invest with IL&FS Investsmart Linited?

Customisation:

Investment plans are formulated on the basis of customer preference and needs, so
that the best can be brought out of an individual’s or a company’s financial profile.

Expertise:

A huge integrated research team is at work to provide the customers with financial
expertise and thorough understanding of financial markets.

Trust:

Investsmart is spread across the country through more than 300 offices providing
unmatched services.

HSBC advantage:

Acquisition by HSBC provides access to Investsmart to a greater customer base.

Apart from that, Investsmart’s customers get access to direct money transfer facility
to their HSBC accounts.

“Best performing National Financial Advisory”

IL&FS Investsmart bagged the Best Performing National Financial Advisory Award
from CNBC two years in a row in 2007-2008.

One-stop-shop:

IL&FS Investsmart is India’s financial multiplex providing a wide range of financial

services to individuals as well as corporate.

46
 A BRIEF ABOUT HSBC

Headquartered in London, HSBC is one of the largest banking and financial services
organisations in the world. HSBC's international network comprises around 10,000
offices in 82 countries and territories in Europe, the Asia-Pacific region, the
Americas, the Middle East and Africa.

With listings on the London, Hong Kong, New York, Paris and Bermuda stock
exchanges, shares in HSBC Holdings plc are held by around 200,000 shareholders
in over 100 countries and territories. The shares are traded on the New York Stock
Exchange in the form of American Depositary Receipts.

Through an international network linked by advanced technology, including a rapidly

growing e-commerce capability, HSBC provides a comprehensive range of financial
services: personal financial services; commercial banking; corporate, investment
banking and markets; private banking; and other activities.

HSBC India:

The antecedents of the HSBC Group in India can be traced back to October 1853
when the Mercantile Bank of India, London and China were founded in Bombay
(now Mumbai). Starting with an authorized capital of Rs. 5 million, the Mercantile
Bank soon opened offices in London, Madras (Chennai,) Colombo and Kandy,
followed by Calcutta (Kolkata), Singapore, Hong Kong, Canton (Guangchow) and
Shanghai by 1855, the following hundred years where in many ways propitious for
the Mercantile Bank. In 1950 it moved into its new head office building in Mumbai at
Flora Fountain.

HSBC in India has retained the Group's pioneering streak by being an active partner
in the development of the Indian banking industry-even giving Indian its first ATM

47
 way back in 1987. The organization's adaptability, resilience and commitment to its
customers have further enabled it to service through turbulent times and prosper
through good times over the past 150 years.

HSBC India is one of India’s leading banking and financial services institutions, with
over 37,000 employees in its banking, investment banking and capital markets,
asset management, insurance broking, life insurance, software development and
global resourcing operations in the country. The India branches of The Hongkong
and Shanghai Banking Corporation Limited offer a full range of banking and financial
services to over 2.8 million customers through their 47 branches and 173 ATMs
across the 26 cities of Ahmedabad, Bangalore, Chandigarh, Chennai, Coimbatore,
Gurgaon, Hyderabad, Indore, Jaipur, Jodhpur, Kochi, Kolkata, Ludhiana, Lucknow,
Mumbai, Mysore, Nagpur, Noida, New Delhi, Patna, Pune, Raipur, Trivandrum,
Thane, Vadodara and Visakhapatnam.

The HSBC Group acquired a majority stake in Investsmart to enable itself to offer
retail brokerage services to its customers across a wider geography in the country. It
has also entered into a joint venture with two of India’s leading public sector banks to
establish the Canara HSBC Oriental Bank of Commerce Life Insurance Company.

HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in
London. The Group serves customers worldwide from around 9,500 offices in 86
countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle
East and Africa. With assets of US$2,527 billion at 31 December 2008, HSBC is one
of the world’s largest banking and financial services organisations.

HSBC Group Members in India:

 The Hongkong and Shanghai Banking Corporation Limited
 HSBC Asset Management (India) Private Limited
 HSBC Electronic Data Processing India Private Limited
 HSBC Insurance Brokers (India) Private Limited
 HSBC Operations and Processing Enterprise (India) Private Limited
 HSBC Private Equity Advisors (India) Limited
48
 HSBC Professional Services (India) Private Limited
 HSBC Securities and Capital Markets (India) Private Limited
 HSBC Software Development (India) Private Limited

COMPETITORS

Following are the major competitors of IL&FS Investsmart as a Corporate Broker:

ICICI Direct

The URL ICICIDirect is owned by ICICI and managed by ICICI Web Trade Limited.
ICICI Web Trade Limited facilitates trading and related services on the internet
through maintenance of the website. Trades put through ICICIDirect.com are
executed by ICICI Web Trade Limited, which is a trading member of the National
Stock Exchange and The Stock Exchange, Mumbai. Its products and services
include:

 Trading on NSE and BSE

 Investing in Mutual Funds
 Personal Finance
 IPOs
 Margin Trading
 Trading in Derivatives

HDFC Securities Limited

HDFC Securities Limited is one of India’s premier broking houses and is promoted
by the HDFC (Housing Development Financial Corporation) Group. HDFC Securities
provides Online Trading in both Equity & Derivatives Segment on NSE & BSE.
Products offered by HDFC Securities include:
 Online Trading for Resident and Non Resident Indians
 Day Trading at both NSE and BSE
49
 Trading on Futures and Options on the NSE
 Online IPOs
 Telephone-based Broking (Equity & Derivatives)
 Cash-n-Carry on both NSE and BSE

Salient features of HDFC Trading Account:

 Facility to trade either through telephone or the internet

 Instant limits on shares sold
 100% Inter-settlement trade at no extra cost
 Low and Competitive Brokerage
 Highest level of security using features such as 128-bit encryption technology and
Secured Socket Layer

Standard Chartered - STCI

On 11th January 2008, Standard Chartered Bank (Mauritius) Limited acquired 49% of
erstwhile UTI Securities Ltd. from Securities Trading Corporation of India (STCI).
Accordingly, the name of the company was changed from UTI Securities Ltd. to
Standard Chartered- STCI Capital Market Ltd. with effect from January 17 th 2008.
Subsequently, on December 12th 2008, SCBM acquired further 25.9% stake in
Standard Chartered – STCI Capital Markets Ltd. to increase its total stake in the
same from 49.0% to 74.9%.

Standard Chartered – STCI Capital Markets Limited is a broking company with a

pan-india presence and provides a wide range of financial services, including
investment banking, Institutional equity & Derivative Broking, fixed income, research,
retail equity & derivative broking (offline & online), portfolio management, distribution
of financial products and depository services.

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IDBI Paisabuilder

IDBIPaisabuilder is a dedicated web portal of IDBI (……………….) for IDBI Online

Trading. IDBI Paisabuilder is an easy-to-use website where one can invest in
mutual funds, equity shares, IPOs, and derivatives. The trading platform is known as
Paisapower Classic.

AXIS Bank

Axis Bank is a private sector Indian bank. The bank has a net worth of Rs. 2872.19
crores. Public holding of Axis Bank shares stood at 57.60% ending 31st March,
2008.Axis Bank, in alliance with the Geojit Financial Services, provides its customers
the Online Trading facility. The service provides an integrated 3-in-one Savings
Bank Account, Demat Account and an Online Trading Account. Geojit Financial
Services Limited together with its subsidiaries provides stock and share broking
services in India. It offers trading in Equity and derivatives including index futures
and options and stock futures and options. The company was founded in 1987 and
is based in Kochi, India.

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52
 RESEARCH METHODOLOGY
STATEMENT OF PROBLEM
Because of the rising competition in the brokerage industry, be it due to new entrants or the
new government policies, there is a need for every broker to adopt strategies to not only
survive in the market but also to stay ahead of its counterparts. In this report, a detailed
comparative study is done on the products and services of six Corporate Brokers in India,
namely IL&FS Investsmart, ICICIDirect, HDFC Securities, IDBI Paisabuilder, Standard
Chartered STCI and AXIS Bank. The focus is mainly on the trading products and the services
related to them. Moreover, the report aims at analyzing the strategies on competitive
advantage for IL&FS Investsmart over the other players in the volatile market, particularly after
becoming a part of the HSBC Group recently.
- Problem Definition / Title Of The Study
Comparative Analysis of the various leading Corporate Brokers and market potential of IL&FS
Investmart in jaipur .

Duration of the project

My report on Comparative Analysis of the various leading Corporate Brokersand market
potential of IL&FS Investmart, project have been completed in 15 days(HSBC Group) .

Objective Of The Study

 To identify and compare the various Corporate Brokers in India that stand in competition with
IL&FS Investsmart.
 To analyze what gives IL&FS Investsmart a Competitive Advantage, especially after its
acquisition by the HSBC Group.
 To discover IL&FS Investsmart’s loopholes, if any, and ways to mend them.
 Know the market potential of IL&FS considering the fact that there are many competitors in
this field with some more firms expected to join the fray in the near future. This will be done with
the help of a questionnaire.

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 Provide suggestions to the company regarding what else it can do to stand apart in this ever
competitive field and thereby emerge as a market leader.
Type of Research

Descriptive Research Descriptive research includes and fact finding enquires of different
kinds. The major purpose of descriptive research is description of the state of affairs as it
exists at present. Researcher has no control over the variables of this type of research.The
methodology of the study is based on primary and secondary data. The secondary data was
gathered from the various brokerage firms so as to establish a comprehensive comparison
with the help of statistical charts and tables.

Data Collection:
Primary Data:Data is collected primarily through personal contact, meeting, interview and
questionnaire with the concerned authority of the organization and respondents

 Secondary Data:
A part of the secondary data was obtained from the flyers on the various investment plans of
the brokerage firms that were collected by personally visiting them. Some data was collected
by gathering information from concerned personnel at these firms and the rest was collected
from the various journals and websites.

Sample Size &Method Of Selecting Sample

The sampling method so as to obtain a representative sample is the Non-probability

sampling methods. Under Non-probability sampling, the question addressed the basic
questions relating to investing or trading in stocks and whether trading takes place online or
offline, if online-which broking house and why.

A random sample of 100 people was taken. I selected the respondents to the survey on the
basis of judgment sampling with convenience taken into account.

54
 Scope of the study
 This research is useful for the company as it helps the company in its comparative analysis
 This research is useful for the company to know their competitive advantage
 This research is useful for customers as it the help of this report they can compare the two
option on the basis of brokerage rate & offered services & can select the best one.
 This research also provide the information regarding the competitors plans . it helps top
manager in decision making

limitations of the study

 Insufficient data: The data available for the report was inadequate. Most companies are
reluctant to providing accurate data. As a result, some parts of the study had to be built on
some assumptions as well.
 Difficulty in Qualitative Comparison: Since the different brokers offer different investment plans,
it becomes difficult to compare them accurately on the qualitative grounds for services. For
example, in the case of online trading, some brokers charge their brokerage on a turnover
basis, while others don’t.
 The respondents who have not given any information are not included in the sample but do
come under the population.
 It was not possible to cover each and every client of each and every broking house and hence a
sample of 100 people was taken.
 The market share of all the online share trading products is only for the city of JAIPUR. The
market share of all the companies may differ in different cities. It may also differ nationally.

55
56
 FACTS AND FINDINGS

 Survey reveals that most of the traders prefer brokerage above all factors while trading online.
 ICICI is the most popular online share trading product followed by HDFC but there is a huge
difference between them.
 Internet is the most effective medium to know about the online trading account.
 Survey reveals that most of the approximately 42% traders prefer IL&FS trading account due
to less brokerage charges.
 The brokerage rates for the delivery of shares are the highest for ICICI Direct and the lowest
for IIL, HDFC Securities and Standard Chartered.
 Brokerage rates for the Intraday Trading are the highest for HDFC Securities and the lowest
for IIL, ICICI Direct and Standard Chartered.
 The annual maintenance charges, are the highest for ICICI Direct, HDFC Securities and AXIS
Bank while the lowest for only IIL
 The brokerage rates for futures are the highest for IDBI Paisabuilder while all the other brokers
charge the equal rates.
 Minimum brokerage is highest for Standard Chartered and the lowest for AXIS Bank.

57
ANALYSIS AND INTERPRETATION
58
STUDY IS BASED ON PRIMARY DATA:-

CHART1: AGE GROUP

18-35 50

35-50 35

50 and above 15

50
45
40
35
30
25
20
15
10
5
0
18-35yr 35-50yr 50 and above

Interpretation: As can be seen from above charts, 50% of the people using online share
trading products fall in the age group of 18-35 years, which shows that the popularity of online
share trading products is at its peak in this age group and is the lowest for the age group of 50
years and above. This may be due to the fact that people in the age group of 18-35 years are
well versed with computers, have fewer responsibilities and can afford to take risks. The age
group of 35-50 years shows a little smaller figure, which may be because at this stage some
people use computers while some don t and some are just unwilling to put money into shares
due to increasing responsibilities and hence the question of online trading does not arise.
People above 50 years are nearing retirement and in some cases even retired, so they might
have some excess cash and hence they too are willing to invest in shares through Internet,
which is less cumbersome and tedious as compared to offline trading.
CHART 2: OCCUPATION
59
Student 5

Service 20

Professional 35

Self employed 40

40

35

30

25

20

15

10

Interpretation: Survey was conducted majorly on individuals who are employed. The major
chunk were of self employed people and other professionals from different areas. Quarter of
them were from service sector and rest were students.

CHART 3: Do You Trade Online?

60
Online 86

Offline 14

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Interpretation: Out of the 100 respondents, (86%) had invested in shares through any online
trading product. this shows that the penetration of online share trading product among the
populace is high inspite of the fact that it was introduced only 6 years ago. However, this reach
is in a city like Mumbai, which is considered the commercial hub of the country; hence one can
expect the penetration level of online share trading products to be a little low in other smaller
cities/towns

61
CHART 4: Important Parameter While Selecting An Online Share Trading
Account?

Brand name 20
Brokerage 45
Security 5
Location 5
Other facility 10

45

40

35

30

25

20

15

10

Interpretation:
Survey reveals that most of the traders prefer brokerage above all factors while trading online.
Brand image and security follows next as they got preference by 23% and 13% respectively.
Location of firm and other facilities are least considered while trading online.

CHART 5: Through Which Online Share Trading Account Do You Trade?

62
ICICI 30

KOTAK 10

HDFC 25

IL&FS 15

AXIS 20

30

25

20

15

10

Interpretation:ICICI is the most popular online share trading product followed by HDFC but
there is a huge difference between them. HDFC is at 25% and AXIS with 20%. IL&FS is at the
fourth position with 15% popularity and KOTAK is fifth with 10% popularity. IL&FS s popularity
is quite encouraging from the company s point of view considering the fact that it has begun its
online trading operations only about a year ago

CHART 6: How Did You Come To Know About IL&Fs Online Trading
Account?

63
Print 32

TV 8

Internet 49

Friends 8

50

45

40

35

30

25

20

15

10

Interpretation:49% of the respondents came to know about the online trading account
through the Internet itself, hence it may be concluded that the Internet is the most effective
medium as far as getting the customer s attention is concerned. Second most popular medium
turned out to be print (newsletter), which are not much far from the internet.32% of the
respondents, came to know about the online trading account through the newsletter
subscription. The potential of television and print friends of promotion doesn’t seem to have
been utilized fully as they lag behind with only 11% and 8% respectively of the total respondents
interviewed came to know about the online trading accounts them
CHART 7: Why Did You Choose IL&Fs Online Trading Account?

Brokerage 45

64
Advice 25

Efficient 20

Security 10

45

40

35

30

25

20

15

10

Interpretation:
Survey reveals that most of the approximately 42%traders prefer IL&FS trading account due to
less brokerage charges. 22% prefers IL&FS due to their good advice. Rest adopted online
trading account of IL&FS due to its efficiency and security.

CHART 8: Are You Satisfied With Your Choice?

65
Yes 70

No 30

70

60

50

40

30

20

10

Interpretation: Most of the people are satisfied with their choices. However 30 % of the
total respondents were not satisfied with their products, which could be a potential avenue for
consumers waiting to be tapped by the competitors as well as new firms entering into the e-
trading market.

STUDY IS BASED ON SECONDARY DATA:-

66
Table 3.1 Charges for Opening Online Trading Account
Broker Online Trading Account Opening
Charges
IL&FS Investsmart (HSBC) Rs. 950
ICICIDirect Rs. 975
HDFC Securities Rs. 750
Standard Chartered – STCI Rs. 499
IDBI Paisabuilder Rs. 499
AXIS Bank Rs. 1050

1200

1000

800

600
Online Trading A/C Opening
400 Charges (Rs.)

200

Chart 3.1 Online Trading A/C Opening Charges of the Corporate Brokers

Interpretation:
An online trading account enables the investors to trade in the stock market through online
trading platforms. According to table 3.1 and chart 3.1,the charges for opening an online
trading a/c are the highest for AXIS Bank and the lowest for Standard Chartered. The charges
at IIL are neither too high, nor too low.

Table 3.2 Brokerage Rates on Delivery (Basic Plan)

67
Broker Brokerage on Delivery
IL&FS Investsmart (HSBC) 0.50%
ICICI Direct 0.75%
HDFC Securities 0.50%
Standard Chartered-STCI 0.50%
IDBI 0.65%
AXIS Bank 0.55%

0.80%

0.70%

0.60%

0.50%

0.40%

0.30% Brokerage on Delivery

0.20%

0.10%

0.00%

Chart 3.2 Brokerage Rates on Delivery

Interpretation:

The brokerage rates for the delivery of shares are the highest for ICICI Direct and the lowest
for IIL, HDFC Securities and Standard Chartered.

Table 3.3 Brokerage Rates on Intraday Trading (Basic Plan)

68
Broker Brokerage on Intraday Trading

IL&FS Investsmart (HSBC) 0.05%

ICICI Direct 0.05%
HDFC Securities 0.15%
Standard Chartered- STCI 0.05%
IDBI Paisabuilder 0.055%
AXIS Bank 0.10%

0.16%

0.14%

0.12%

0.10%

0.08%

0.06% Brokerage on Intraday Trading

0.04%

0.02%

0.00%

Chart 3.3 Brokerage Rates on Intraday Trading

Interpretation:

Intraday trading refers to opening and closing a position in a security in the same trading
day.Brokerage rates for the Intraday Trading are the highest for HDFC Securities and the
lowest for IIL, ICICIDirect and Standard Chartered.

Table 3.4 Annual Maintenance Charges for Demat A/C (Basic Plan)

69
Broker AMC for Demat A/C
IL&FS Investsmart (HSBC) Rs. 300
ICICI Direct Rs. 500
HDFC Securities Rs. 500
Standard Chartered –STCI Rs. 400
IDBI Paisabuilder Rs. 350
AXIS Bank Rs. 500

500
450
400
350
300
250
200
150
AMC for Demat A/C
100
50
0

Axis Title

Chart 3.4 Annual Maintenance Charges for the Demat A/C

Interpretation:

A Demat a/c holder needs to pay annual maintenance charges, which on a certain turnover
level is refunded by some of the brokers. The charges are the highest for ICICIDirect, HDFC
Securities and AXIS Bank while the lowest for only IIL.

Table 3.5 Brokerage Rates for Futures (Basic Plan)

70
Broker Brokerage on Futures
IL&FS Investsmart (HSBC) 0.05%
ICICI Direct 0.05%
HDFC Securities 0.05%
Standard Chartered – STCI 0.05%
IDBI Paisabuilder 0.055%
AXIS Bank 0.05%

0.06%
0.05%
0.05%
0.05%
0.05%
0.05%
0.05% Brokerage Rates for Futures
0.05%
0.05%

Axis Title

Chart 3.5 Brokerage Rates for Futures by different Brokers

Interpretation:

The brokerage rates for futures are the highest for IDBI Paisabuilder while all the other brokers
charge the equal rates.

Table 3.6 Minimum Brokerage per Executed Order Value

71
Broker Brokerage
IL&FS Investsmart (HSBC) Rs. 25 or 2.5% whichever is lower
ICICI Direct Rs. 25 or 2.5% whichever is lower
HDFC Securities Not Available
Standard Chartered - STCI Rs. 25 or 2.5% whichever is higher
IDBI Paisabuilder Rs. 20 or 2.5% whichever is higher
AXIS Bank Rs. 20 or 2.5% whichever is lower

Interpretation:

The plan for minimum brokerage that is chargeable per executed order value varies for
different brokers, in a way that Rs. 25 is maximum amount chargeable by IIL and ICICIDirect,
Rs. 25 is the minimum amount chargeable by Standard Chartered, Rs. 20 is the minimum
amount chargeable by IDBI Paisabuilder and Rs. 20 is the maximum amount chargeable by
AXIS Bank. The charges for HDFC Securities are not available. Hence, among the 5 brokers,
the highest would be for Standard Chartered and the lowest would be for AXIS Bank.

Table 3.7 SMS Alerts Service

72
Broker Charges
IL&FS Investsmart (HSBC) NIL
ICICI Direct Chargeable
HDFC Securities NIL
Standard Chartered- STCI Chargeable
IDBI Paisabuilder Chargeable
AXIS Bank Chargeable

Interpretation:

The brokers provide SMS Alerts Service updating their customers on the share market and
giving advice on investments on a regular basis. Some brokers like IIL and HDFC Securities
provide this facility free of cost. While the others charge some fee.

Table 3.8 Research Reports

73
Broker Charges
IL&FS Investsmart (HSBC) Nil
ICICI Direct Nil
HDFC Securities Nil
Standard Chartered -STCI Chargeable
IDBI Paisabuilder Chargeable
AXIS Bank Chargeable

Interpretation:

Various brokers avail their customers of research reports on topics like trends in the market,
position of mutual funds, IPOs, comparative studies of different companies, investment
opportunities in a particular sector etc. IIL, ICICI and HDFC provide these for free, while the
others charge a certain amount.

Table 3.9 Failed Instruction Charges

Broker Charges
74
IL&FS Investsmart (HSBC) Rs. 25
ICICI Direct Rs. 30
HDFC Securities Not Available
Standard Chartered- STCI 25
IDBI Paisabuilder 30
AXIS Bank 10

30

25

20

15 Failed Instruction Charges

10

0
IL&FS Inv. -HSBC ICICI Direct StanChart IDBI Paisabuilder AXIS Bank

Chart 3.6 Failed Instruction Charges

Interpretation:

The Charges in this category are the highest for IDBI and ICICI, while lowest for AXIS. For ILL,
these charges are neither too high nor too low.

Table 3.10 Demat Charges

Broker Charges

75
IL&FS Investsmart (HSBC) 35
ICICI Direct 35
HDFC Securities Not Available
Standard Chartered- STCI 30
IDBI Paisabuilder 30
AXIS Bank 50

50

45

40

35

30

25 Demat Charges

20

15

10

0
IL&FS Inv. -HSBC ICICI Direct StanChart IDBI Paisabuilder AXIS Bank

Chart 3.7 Demat Charges

Interpretation:

Demat refers to a dematerialized account. Just as one has to open an account with a bank, if
he/she wants to save his/her money, make cheque payments etc., one needs to open a demat
account if he/she wants to buy or sell and transact sharesDemat Charges are the highest for
AXIS while lowest for Standard Chartered and IDBI. IIL charges are neither too high nor too
low.

Table 3.11 Charges for Remat

Broker Charges

76
IL&FS Investsmart (HSBC) 25
ICICI Direct 20
HDFC Securities Not Available
Standard Chartered- STCI 50
IDBI Paisabuilder 20
AXIS Bank 50

50

45

40

35

30

25 Charges for Remat

20

15

10

0
IL&FS Inv. -HSBC ICICI Direct StanChart IDBI Paisabuilder AXIS Bank

Chart 3.8 Charges for Remat

Interpretation:

The electronic holdings can be converted back into certificates if one wishes to get back
his/her shares in physical form. This is called Rematerialisation or Remat. Remat Charges are
highest for Standard Chartered and AXIS and lowest for ICICI and IDBI. IIL charges are
neither too high nor too low.

Table 3.12 Charges for Pledge Creation

Broker Charges
IL&FS Investsmart (HSBC) 25

77
ICICI Direct 30
HDFC Securities Not Available
Standard Chartered- STCI 50
IDBI Paisabuilder 100
AXIS Bank 25

50
45
40
35
30
25
20
Charges for Pledge Creation
15
10
5
0

Chart 3.9 Charges for Pledge Creation

Interpretation:

Pledge is an activity of taking loan against securities by the investor. The investor is called as
‘pledgor’ and he entity who is giving the loan against the securities is called as ‘pledgee’.
Charges in this category are the highest for Standard Chartered and AXIS while lowest for IIL
and IDBI.

Table 3.13 Charges for Pledge Closure

Broker Charges
IL&FS Investsmart (HSBC) 25
ICICI Direct 30
HDFC Not Available
78
StanChart 50
IDBI 25
AXIS Bank 50

50
45
40
35
30
25
20
Charges for Pledge Closure
15
10
5
0

Chart 3.10 Charges for Pledge Closure

Interpretation:

After the pledgor repays the loan to the pledgee, the pledgor will submit an instruction to its DP
to initiate the closure of pledge/hypothecation by indicating the option "close the
pledge/hypothecation" in the pledge/hypothecation form. This is known as Pledge Closure.
Here, the charges are highest for Standard Chartered and AXIS and lowest for IIL and IDBI.

Table 3.14 Account Statement Charges

Broker Charges
IL&FS Investsmart (HSBC) 25
ICICI Direct 20
HDFC Not Available
StanChart 50
IDBI 20
79
AXIS Bank 100

100
90
80
70
60
50
40
Account Statement Charges
30
20
10
0

Chart 3.11 Account Statement Charges

Interpretation:

Here, the AXIS charges extraordinarily high fee while ICIC and IDBI charge the lowest. IIL, on
the other hand, charges just a little above the lowest rates.

Table 3.15 Pledge Invocation Charges

Broker Charges
IL&FS Investsmart (HSBC) 50
ICICI Direct 30
HDFC Not Available
StanChart 50
IDBI 100
AXIS Bank 50

80
 100

90

80

70

60

50 Pledge Invocation Charges

40

30

20

10

0
IL&FS Inv. -HSBCICICI Direct StanChartIDBI PaisabuilderAXIS Bank

Chart 3.12 Pledge Invocation Charges

Interpretation:

When a pledgee does not repay the loan amount, the shares pledged with the Bank can be
transferred in their favor. This is similar to the physical shares being transferred in the name of
the lender in the event of a default, who will receive the corporate actions like dividends, bonus
etc in Pledged shares. This is pledge invocation. The charges for these are extremely high for
IDBI, while lowest for only ICICI. IIL, Standard Chartered and AXIS charge average rates.

Table 3.16 Turnover on the basis of Deposit Amount

Broker Turnover
IL&FS Investsmart (HSBC) 4 Times
ICICI Direct 4 Times
HDFC 3 Times
StanChart 3 Times
IDBI 4 Times
AXIS Bank 3 Times

81
 4

3.5

2.5

2 Turnover

1.5

0.5

0
IL&FS Inv. -HSBC ICICI Direct HDFC Securities StanChart IDBI Paisabuilder AXIS Bank

Chart 3.13 Turnover on the Deposit Account

Interpretation:

Turnover on the basis of deposit account is the limit which is given by the broker to the
customer for doing intraday trading on his/her deposit amount. The higher it is, the better. The
results of the research show that it is the highest for IIL, ICICI and IDBI.

82
83
 SWOT ANALYSIS OF THE COMPANY:

Strengths:

 Management philosophy and commitment to maximize shareholders returns

 Upgraded product design and development facilities to develop new products and aid
diversification

 Ongoing activities to support up gradation of operational performance and rise in productivity

 Team of talented and committed professionals available to improve companies performance

 Online trading platform.

 Diverse Branch Network provides ample opportunities to penetrate deep into the existing &
untapped market.  

 It does not keep any condition as to collect minimum amount of brokerage from its clients

 Equity analysis report to support the investment decision of its clients

 Trading via branch network, telephones and internet account i.e. both online and offline

Weakness:

 High degree of Competition in market.

 Demand of new product.

 Low market capitalization.

 Unawareness about the products.

 Low product portfolio

84
 High brokerage charges from competitors.

Opportunities:

 Increasing demand of investment.

 Market expansion i.e. opening branches at untapped areas

 ATM facility should be provided for easy withdrawals.

 The Capital market in the last few years has turned out to be one of the favorable avenues for
the retail investors

 Scope of online trading on BSE and NSE.

Threats:

 Constant pressure to be cost competitive to meet customer expectations

 Relentless pressure to maintain profitability due to rising prices

 Increasing popularity of other competitors, such as ICICI Direct, Indiabulls, India infoline, Angel
Broking poses new challenges for the company.

 Banks with demat facility jockeying for position.

 Local brokers capable of charging lower brokerage.

 Industry competitors vying for the same target segment.

85
 Changes in SEBI guidelines & other tax implications.

86
87
 CONCLUSION

According to the study, IL&FS Investsmart takes the lead in the category of Corporate Brokers
with an advantage of HSBC Group at its side. IIL is better service provider than its competitors
because of its value added services like free SMS Alerts and free research reports and expert
financial advice etc.. and other services at minimal charges.

The findings also showed that AXIS Bank charges exceptionally high fee for almost all of its
services, hence stands quite behind as a competitor for IL&FS Investmart, and infact was least
preferred among the respondents.

A large number of people have their Demat and Trading accounts and prefer to invest in
derivatives and securities market. Maximum number of people seeks returns and tax benefits
from their investments. Most of the respondents that had Demat and Trading accounts were
businessmen.

The maximum number of respondents preferred IIL over other Corporate Brokers. However,
IDBI is a close competitor to IIL,be it the quality of service or the charges and fees. Hence,
there is still some room for improvement for IIL. Following recommendations might prove of
some help:

 There is a need to actively promote the products and services for IL&FS Investsmart (IIL).
Recent acquisition by HSBC Group can prove a very effective weapon for IIL, since HSBC
Group is one of the largest financial organisations of the world. With merely its brand name, IIL
can build a larger customer base across the country.
 Clients need to be acknowledged of the benefits of diversified investments, since most of the
people are reluctant to invest due to the fear of capital loss and lack of awareness.
 Trainings and seminars should be constantly held for the staff to improve their strategies and
skills, especially since they face bigger challenge on quality services, being a part of HSBC
Group.
 It can be concluded that IL&FS INVESTSMART, although new to the online share trading field,
has been able to build a sound customer base if the survey conducted is to be believed.
 IL&FS INVESTSMART has a strong presence in almost every part of the country which can
eventually lead to a very big customer base.
88
 The company will find it relatively easy to further introduce its other latest products through its
strong reach throughout the country.
 A sound base in almost the entire country and as much as six different mediums used by the
company to reach out to potential customers means that the company is going all out to
increase its market share.

89
90
 RECOMMENDATION & SUGGESTIONS

The recommendations, which are to be suggested to IL & FS, are as follows: 

 IL&FS should enhance the customers care department, wherein queries of clients can
be timely solved.
 More authority should be delegated to the Branch Offices in order to speed up the
working process of opening accounts.
 Technical Connectivity at IL&FS should have a proper check and control by the team of
experts from time to time.
 IL&FS should organize some cultural events quarterly or yearly basis to increase the
bonding among the employees.
 IL&FS should try to make effective pay out system to business partner i.e. franchise
owner.
 Company should have to adopt turnover based brokerage rate policy to enhance their
customer’s turnover.
 IL&FS should also try and increase its level of presence in certain sections of the media
such as Television and Radio. Tie-ups with business channels such as CNBC, NDTV
PROFIT or ZEE BUSINESS can be of great advantage.
 Increase the distribution network for in form of drop boxes and get in tie ups with mobile
phone galleries with reliance web shops or set up drop boxes at railways stations which will
facilitate easy payment opportunities for the client.
 Increase after market hours time to benefit of the customers.
 The above mentioned steps might increase the company s expenditure initially but it
can be a profitable exercise in the long run.

91
 DIFFERENT INVESTMENT PLANS OF DIFFERENT CORPORATE HOUSES

1) HSBC (IL&FS) – SOME ADVANCE BROKREAGE PLANS OF IL&FS

 SMART POWER

Advance subscription value (Rs) 2500

- Delivery Brokerage 0.35%
- Intraday Trading Brokerage CM – first leg 0.04%
- Intraday Trading Brokerage CM – Second leg 0.04%
- Intraday Trading Brokerage F&O – first leg 0.04%
- Intraday Trading Brokerage F&O – Second leg 0.04%
- OptionsTrading Brokerage – each leg 2.5% or Rs 90/-
(whichever is higher)
Minimum brokerage per executed order value @ Rs Y
25 or 2.5% (which is lower)

Advance subscription value (Rs) 12500

- Delivery Brokerage 0.25%
- Intraday Trading Brokerage CM – first leg 0.03%
- Intraday Trading Brokerage CM – Second leg 0.03%
- Intraday Trading Brokerage F&O – first leg 0.03%
- Intraday Trading Brokerage F&O – Second leg 0.03%
- Options Trading Brokerage – each leg 1% or Rs 60/-
(whichever is higher)
Minimum brokerage per executed order value @ Rs Y
25 or 2.5% (which is lower)

 In both of these plans company can’t provide software . For software customer have to
pay 3000/- p.a.

 SMART ELITE

Advance subscription value (Rs) 25000

- Delivery Brokerage 0.20%
- Intraday Trading Brokerage CM – first leg 0.025%
92
 - Intraday Trading Brokerage CM – Second leg 0.025%
- Intraday Trading Brokerage F&O – first leg 0.025%
- Intraday Trading Brokerage F&O – Second leg 0.025%
- Options Trading Brokerage – each leg 0.75% or Rs 40/-
(whichever is higher)
Minimum brokerage per executed order value @ Rs NA
25 or 2.5% (which is lower)

Advance subscription value (Rs) 50000

- Delivery Brokerage 0.15%
- Intraday Trading Brokerage CM – first leg 0.02%
- Intraday Trading Brokerage CM – Second leg 0.02%
- Intraday Trading Brokerage F&O – first leg 0.02%
- Intraday Trading Brokerage F&O – Second leg 0.02%
- Options Trading Brokerage – each leg 0.6% or Rs 30/-
(whichever is higher)
Minimum brokerage per executed order value @ Rs NA
25 or 2.5% (which is lower)

 In smart elite there is no need to purchase a software. It is free.

 Advance subscription value is valid for one year

 The amount which is given in form of Advance subscription value adjusted only in
brokerage

2) STANDARD CHARTERED – SOME PLANS OF STANDARD CHARTERED

FOR USING DIFFERENT SOFTWARE

 ADVANCE TRADE

Account opening fees – Rs 799/-

Software fees – Rs 500/- quarterly

DELIVERY BASED TRANSACTIONS

93
 Total Eligible turnover per Month Brokerage (%) on each leg
Below Rs 5 lac 0.50%
Rs 5 lac –Rs 10 lac 0.45%
Rs 10 lac - Rs 25 lac 0.35%
Rs 25 lac – Rs 50 lac 0.30%
More than Rs 50 lac 0.25%
Min. charges Rs 25/- or 2.5% whichever is higher

INTRADAY TRANSACTIONS

Total Eligible turnover per Month Brokerage (%) on each leg

Below Rs 2 Cr 0.050%
Rs 2 Cr - Rs 5 Cr 0.040%
Rs 5 Cr – Rs 10 Cr 0.035%
More than Rs 10 Cr 0.030%
Min. charges Rs 25/- or 2.5% whichever is higher

FUTURES TRANSACTIONS

Total Eligible turnover per Month Brokerage (%) on each leg

Less than Rs 10 Cr 0.050%
More than Rs 10 Cr 0.040%

OPTIONS TRANSACTIONS

Min Brokerage 1% or Rs 100 Whichever is Minimum

 In this plan company provided a software to do online trading.

 Advance Trade differential brokerage charges shall be debited from “Buying Power” at
the end of quarter

3)ICICI – SOME PLANS OF ICICI ON THE BASIS OF MONTHLY

SUBSCRIPTION AND TURNOVER
94
 PLAN A
Fee Payable – Rs 299 Per Month
Maximum quarterly free turnover (CASH & BTST) - Rs 1,50,000
After this charges as follows -:
DELIVERY BASED TRANSACTIONS
Total Eligible turnover per Brokerage (%) on each leg
quarter
Below Rs 10 lac 0.75%
Rs 10 lac –Rs 25 lac 0.70%
Rs 25 lac - Rs 50 lac 0.55%
Rs 50 lac – Rs 1 Cr 0.45%
Rs 1 Cr – Rs 2 Cr 0.35%
Rs 2 Cr – Rs 5 Cr 0.30%
Above 5 Cr 0.25%
INTRADAY BASED TRANSACTIONS

Total Eligible turnover per Month Brokerage (%) on each leg

Below Rs 5 Cr 0.05%
Rs 5 Cr –Rs 10 Cr 0.04%
Rs 10 Cr - Rs 20 Cr 0.035%
Above Rs 20 Cr 0.03%

FUTURES BASED TRANSACTIONS

Total Eligible turnover per Month Brokerage (%) on each leg

Below Rs 5 Cr 0.05%
Rs 5 Cr –Rs 10 Cr 0.04%
Rs 10 Cr - Rs 20 Cr 0.035%
Above Rs 20 Cr 0.03%

OPTIONS BASED TRANSACTIONS

Total Eligible turnover per Month Brokerage (Rs) on each leg

Below Rs 2 lac 95
Rs 2 lac –Rs 5 lac 85
Rs 5 lac - Rs 10 lac 75
Rs 10 lac – Rs 20 lac 70
Above Rs 20 lac 65
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 PLAN B

Fee Payable – Rs 999 Per Month

Maximum quarterly free turnover (CASH & BTST) - Rs 6,00,000

After this charges as follows -:

DELIVERY BASED TRANSACTIONS

Total Eligible turnover per Brokerage (%) on each leg

quarter
Below Rs 10 lac 0.75%
Rs 10 lac –Rs 25 lac 0.70%
Rs 25 lac - Rs 50 lac 0.55%
Rs 50 lac – Rs 1 Cr 0.45%
Rs 1 Cr – Rs 2 Cr 0.35%
Rs 2 Cr – Rs 5 Cr 0.30%
Above 5 Cr 0.25%

INTRADAY BASED TRANSACTIONS

Total Eligible turnover per Month Brokerage (%) on each leg

Below Rs 5 Cr 0.05%
Rs 5 Cr –Rs 10 Cr 0.04%
Rs 10 Cr - Rs 20 Cr 0.035%
Above Rs 20 Cr 0.03%

FUTURES BASED TRANSACTIONS

Total Eligible turnover per Month Brokerage (%) on each leg

Below Rs 5 Cr 0.05%
Rs 5 Cr –Rs 10 Cr 0.04%
Rs 10 Cr - Rs 20 Cr 0.035%
Above Rs 20 Cr 0.03%

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 OPTIONS BASED TRANSACTIONS

Total Eligible turnover per Month Brokerage (Rs) on each leg

Below Rs 2 lac 95
Rs 2 lac –Rs 5 lac 85
Rs 5 lac - Rs 10 lac 75
Rs 10 lac – Rs 20 lac 70
Above Rs 20 lac 65

 In all these plans ICICI bank provides maximum different quarterly free turnover on
the basis of the charges of plans and on this free turnover bank could charge any
amount of brokerage.
 If the customer can cross the limit of free quarterly turnover after this bank can be
charge brokerage on the excess amount.
 The amount of brokerage can be charge on the basis of the turnover of the customer.

4) IDBI Paisabuilder – SOME PLANS OF IDBI BANK

 CLASSIC

Account opening charges – 700/-

DELIVERY BASED TRANSACTIONS

Total Eligible turnover per Month Brokerage (%) on each leg

Below Rs 2 lac 0.50%
Rs 2 lac –Rs 5 lac 0.45%
Rs 5 lac - Rs 10 lac 0.40%
Rs 10 lac – Rs 20 lac 0.35%
Rs 20 lac – Rs 40 lac 0.30%
Rs 40 lac – Rs 1 Cr 0.25%
Rs 1 Cr – Rs 5 Cr 0.20%
Rs 5 Cr – above 0.15%

INTRADAY BASED TRANSACTIONS

Total Eligible turnover per Month Brokerage (%) on each leg

Below Rs 2 Cr 0.050%
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 Rs 2 Cr –Rs 4 Cr 0.045%
Rs 4 Cr - Rs 6 Cr 0.040%
Rs 6 Cr – Rs 8 Cr 0.035%
Rs 8 Cr – Rs 10 Cr 0.030%
Above Rs 10 Cr 0.020%

FUTURES BASED TRANSACTIONS

Total Eligible turnover per Month Brokerage (%) on each leg

Below Rs 2 Cr 0.048%
Rs 2 Cr –Rs 5 Cr 0.040%
Rs 5 Cr - Rs 10 Cr 0.035%
Above Rs 10 Cr 0.025%

OPTIONS TRANSACTIONS

Min Brokerage 1% or Rs 100 Whichever is Minimum

 According to this plan customer have to pay Rs 700/ - for the account opening
 In this plan brokerage is based on turnover per month of the customer .
 More the turnover lesser the brokerage

 PREMIUM - ADVANCE SUBSCRIPTION PLAN

Account Opening Fee – 5000

DELIVERY BASED TRANSACTIONS

Total Eligible turnover as per Brokerage (%) on each leg

vol/day
1 – 15000 NIL
15000 – 25000 0.25%
25000 – 50000 0.20%
50000 – 1 lac 0.15%
1 lac – above 0.10%

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 INTRADAY BASED TRANSACTIONS

Total Eligible turnover as per Brokerage (%) on each leg

vol/day
1 – 1.5 lac NIL
1.5 lac – 2.5 lac 0.025%
2.5 lac – 5 lac 0.020%
5 lac – 10 lac 0.015%
10 lac – above 0.010%

FUTURES BASED TRANSACTIONS

Total Eligible turnover as per Brokerage (%) on each leg

vol/day
1 – 1.5 lac NIL
1.5 lac – 2.5 lac 0.025%
s2.5 lac – 5 lac 0.020%
5 lac – 10 lac 0.015%
10 lac – above 0.010%

OPTIONS TRANSACTIONS

Min Brokerage 0.75% or Rs 75 Whichever is higher

 Advance subscription value is valid for one year

 The amount which is given in form of Advance subscription value adjusted only in
brokerage.
 The amount which is given in form of Advance subscription value is not refundable.
 According to this plan the amount of brokerage has been calculated on the basis of
turnover of volume of shares per day.

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 APPENDIX

QUESTIONNAIRE

1) WHAT IS YOUR NAME?

ANS:

2) WHAT IS YOUR AGE?

ANS:

3) WHAT IS YOUR GENDER?

1] MALE 2] FEMALE

4) WHAT IS YOUR OCCUPATION?

1] STUDENT 2] SERVICE
3] PROFESSIONAL 4] SELF EMPLOYED

5) WHAT WOULD BE YOUR LIKELY INVESTMENT OVER THE NEXT ONE YEAR?
1] UPTO RS 1 LAKH 2] RS 1- 3 LQKH
3] RS 3- 5 LAKH 4] RS 5 LAKH AND ABOVE

6) DO YOU TRADE OFFLINE OR ONLINE?

ANS:

7) WHICH IS THE MOST IMPORTANT PARAMETER WHILE SELECTING AN ONLINE

SHARE TRADING ACCOUNT?
1] BRAND NAME 2] BROKERAGE
3] SECURITY 4] LOCATION
5] OTHER FACILITIES

8) THROUGH WHICH ONLINE SHARE TRADING ACCOUNT DO YOU TRADE?

1] ICICI 2] KOTAK 3] HDFC
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 4] IL&FS 5] AXIS

9) HOW DID YOU COME TO KNOW ABOUT IL&FS ONLINE TRADING ACCOUNT?
1] TV 2] PRINT
3] INTERNET 4] FRIENDS

10) WHY DID YOU CHOOSE IL&FS ONLINE TRADING ACCOUNT?

1] BROKERAGE 2] ADVISE
3] EFFICIENT AND QUICK TRADING 4] SECURITY

11) ARE YOU SATISFIED WITH YOUR CHOICE? IF NOT, WHY?

ANS:

12) GIVEN AN OPPORTUNITY, WOULD YOU LIKE TO CHANGE OVER TO ANOTHER

ONLINE SHARE TRADING ACCOUNT AND FOR WHAT REASONS?
ANS:

Documents and flyers collected from (in serial order):

 ICICIDIrect
 AXIS Bank
 IDBI Paisabuilder
 IL&FS Investsmart
 Standard Chartered

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102
.

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REGISTERED OFFICE : 5th Floor, Mafatlal Centre, Nariman Point, Mumbai 400 021.
BACK OFFICE OPERATIONS : IDBI Building, Ground Floor, ‘B’ wing, Plot No. 39-41, Sector 11, CBD Belapur, Navi Mumbai - 400
614.

Schedule A - IDBIpaisabuilder.in Fee Structure from 9th February 2009

1. Basic

Pricing & Features

Account Opening Charges Rs.499         

Delivery Brokerage 0.65% Each Leg

Intraday Brokerage 0.055% Each Leg

Futures Brokerage; 0.055% Each Leg for Open position

1.25% of premium or Rs100 per

Each Leg on buy & sale for open position
Options Brokerage
and same day square off
Lot*whichever is higher

* Per Option Contract Traded Platform

Classic Streaming EXE

Offered Free Not Offered Not Offered

2.Classic

Pricing & Features

Account opening charges           Rs.700/-

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(A) DELIVERY-BASED TRANSACTIONS

Total Eligible Turnover per Month      Brokerage Per Leg (%)

   Up to Rs. 2,00,000                  0.50

   Rs. 2,00,001 - Rs. 5,00,000                 0.45

   Rs. 5,00,001 - Rs 10,00,000                 0.40

   Rs. 10,00,001 - Rs 20,00,000                 0.35

   Rs. 20,00,001 - Rs 40,00,000                 0.30

   Rs. 40,00,001 - Rs. 1,00,00,000                 0.25

   Rs. 1,00,00,001 - Rs. 5,00,00,000                 0.20

   Above Rs. 5,00,00,000                 0.15

(B) INTRADAY TRANSACTIONS

Total Eligible Turnover per Month Brokerage Per Leg (%)

Up to Rs. 2,00,00,000                0.050

Rs. 2,00,00,001 - Rs. 4,00,00,000                 0.045

Rs. 4,00,00,001 - Rs. 6,00,00,000                  0.040

Rs. 6,00,00,001 - Rs. 8,00,00,000                  0.035

Rs. 8,00,00,001 - Rs. 10,00,00,000                  0.030

Rs. 10,00,00,001 and above           Enquire with us

(C) FUTURES TRANSACTIONS Platform

Total Eligible Turnover per Month Brokerage Per Leg (%)

Up to Rs. 2,00,00,000 0.048

Rs. 2,00,00,001 - Rs. 5,00,00,000 0.040

Rs. 5,00,00,001 - Rs. 10,00,00,000 0.035

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Rs. 10,00,00,001 & Above Enquire with us

Classic Streaming EXE + Streaming

Offered Free Rs. 600/- per year Rs 2000/- per year

Note: The brokerage slabs above are on an incremental basis

1% on the premium, subject to a minimum of Rs. 100/- per Lot for options trade. (On both buy & sell)

3. Premium

Pricing & Features

(A) Annual subscription - Rs.5000 subscription(Non-Refundable)

Validity - 1 Year

Classic Streaming Intraday & Futures

 Option 
Trades
Vol/day Brokerage Vol/day Brokerage

1 to 15000 NIL 1 to 1.5 lac NIL

0.75% of
15001 - 25000 0.25% 1.5lac to 2.5 Lac 0.025% premium or
Rs. 75 per
25001-50000 0.20% 2.5lacs to 5lacs 0.020%
Lot

50001-100000 0.15% 5lacs to 10 lacs 0.015% whichever is

higher
100001 &  Above 0.10% 10lacs & Above 0.010%

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(B) Half yearly Subscription - Rs. 1900 Subscription(Non-Refundable)
Validity - 6 Months

Classic Streaming Intraday & Futures

 Option 
Trades
Vol/day Brokerage Vol/day Brokerage

1 to 15000 NIL 1 to 1.5 lac NIL

0.75% of
15001 - 25000 0.35% 1.5lac to 2.5 Lac 0.035% premium or
Rs. 75 per
25001-50000 0.30% 2.5lacs to 5lacs 0.030%
Lot

50001-100000 0.25% 5lacs to 10 lacs 0.025% whichever is

higher
100001 &  Above 0.20% 10lacs & Above 0.020%

Platform

Classic & Streaming EXE + Streaming

Offered Free Rs. 2000/- per year

Note: • Account Opening Charges Rs599/-

 • After the expiry of the validity of the subscription, the client would be charged as per the classic plan of IDBI Capital without any
prior intimation.
 • The upfront amount paid by the client for availing such benefit will be charged as subscription fee & would be non refundable.
 • There would be no exposure limits given against such subscription fees paid by the client.
 • The brokerage slabs above are on an incremental basis
 • The volumes specified are on daily basis and no carry forward of volumes are allowed
• The brokerage would initially be charged at the highest slabs in the respective segments as tabulated above and the differential
brokerage benefit would be credited to the clients account on a monthly basis.
• IDBI Capital reserves the right to change the time interval for passing such credit of differential brokerage benefit to it's clients from
time to time.

4. Select

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Pricing & Features

Franking
A/c Charges at
Brokerage opening Default Platform
Rs450/-
Min Upfront Max Upfront charges
Subscription Subscription to be born by

Intraday &
Delivery Option Trades
Futures

0.75% of premium or
5000 9999 0.120% 0.0120% Rs. 75 per Lot Nil Client streaming+EXE
whichever is higher

0.70% of premium or
10000 14999 0.090% 0.0090% Rs. 70 per Lot Nil ICMS streaming+EXE
whichever is higher

0.65% of premium or
15000 19999 0.070% 0.0070% Rs. 65 per Lot Nil ICMS streaming+EXE
whichever is higher

0.60% of premium or
20000 24999 0.050% 0.0050% Rs. 60 per Lot Nil ICMS streaming+EXE
whichever is higher

0.50% of premium or
25000 Above 0.045% 0.00450% Rs. 50 per Lot Nil ICMS streaming+EXE
whichever is higher

Note:
• The upfront amount paid by the client for availing such benefit will be charged as subscription fee & would be non refundable
• There would be no exposure limits given against such subscription fees paid by the client
• Client can choose to pay any amount above the minimum of Rs. 5000/- plus service tax as applicable from time to time.
• Based on the upfront subscription fee paid by the client, corresponding brokerage rates would be levied as per the table above
• Client's slab would be decided on net value of subscription charges paid by him excluding service tax.
• Applicable brokerage rates would be valid till client reaching a total brokerage equal to the net upfront subscription amount paid by
the client or a period of 1 year from the start of such scheme benefits which ever is earlier
• After the expiry of the validity of the subscription, the client would be charged as per the classic plan of IDBI Capital without any
prior intimation to the client.
• To give effect of the above said benefit of 'Select Plan' to existing clients, IDBI Capital would take at least 2 working days after
receipt of duly filled in & signed documents at it's head office
Terms & Conditions for all the above brokerage plans (Basic,Classic,Premium & Select) :

108
(i) Minimum Brokerage:
In all the above schemes except Premium, the minimum brokerage charged would be: 2 paise per share for Delivery subject to an
overall minimum of Rs. 20 per contract, whichever is higher. Contracts will be separate for NSE and BSE, normal segment and for
Trade-to-Trade segment. 1 paisa per share for intraday square off subject to an overall minimum of Rs. 20 per contract note,
whichever is higher. Contracts will be separate for NSE and BSE. However in Premium, the minimum brokerage charged would be
0.0001% of the applicable turnover.
(ii) General Terms:
• Securities Transaction Tax, Service Tax and other levies would be charged extra on actual
• If DELIVERY transactions are SQUARED-OFF within the same Day / Settlement, INTRA-DAY BROKERAGE will be charged for all
such transactions (both sides).
• For NSE Trades Brokerage is calculated on a per share basis and is rounded off to the second decimal.
• The Final value of the Brokerage and Service Tax is arrived at by multiplying the per share value in four decimals with the Quantity
and then rounding it off to second decimal.
• For Futures intra-day square-off (a contract or a position being entered and squared-off on the same day), brokerage will be
charged only for the first leg of the transaction and for the second leg which is in the nature of square-off or the reversal of the first
leg, no brokerage will be charged.
• In case of same day square off in the options contract, brokerage would be charged on both buy and sell sides.
• It is clarified that brokerage on options contracts shall not exceed 2.5% of the premium amount or Rs 100/- (per lot) whichever is
higher.
 • In case of change of brokerage plan for any client, platform charges shall be applicable as per new plan.
 • Time validity period will be computed on the basis of the month in which account gets activated for respective brokerage plans.

(iii) Demat Charges for IDBIpaisabuilder.in customers

Nature of Service DP Charges

Client registration charges for Demat A/c NIL

Annual Maintenance Charge (AMC) for Demat A/c Free for the first Year. AMC Rs. 350 from year twoonwards.

Transaction charges for DP - Buy (only for off market transactions) NIL

Transaction charges for DP - Sell (Online) Rs. 6 per transaction done through IDBIpaisabuilder.in

Rs. 100 per instruction/scrip for the Delivery Instruction Slip

Market and Off Market Sell
submitted at IDBI Capital branches.

Demat Rejection/Instruction fails Rs. 30 per instruction

Dematerialisation/Certificate Rs. 3

Amount charged per request (dematerialisation) Rs. 30

Rematerialisation Rs. 20

Pledge Creation/Invocation Rs. 100

Transaction Statement other than mandatory statement/Extra Rs. 20 per request

109
Invocation/Closure of Pledge Rs. 25

Service Tax Extra as applicable    

• Clients will have to submit the cheque for the depository charges at the time of submission of DIS slip and/or demat request at IDBI
Capital branches.
• There will be a charge of Rs. 100/- for dishonor of any cheque. The depository services are liable to discontinuation if IDBI Capital
is unable to recover charges from the customer for any reason whatsoever. In such cases there will be a charge of Rs. 250/- for
resumption of services and the services will be resumed after a minimum of three working days from the date of receipt of request at
Central Processing Office, Mumbai.
• If the Demat Account is closed during the year, no pro-rata refund of Annual Service Charge will be made
• Any service that is not indicated above will be charged separately as per the rates applicable from time to time.

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 WEBLIOGRAPHY

 www.ibef.org/industry/financialservices.aspx

 http://www.hdfcbank.com/aboutus/default.htm
 http://www.kotaksecurities.com/home/index.html

 http://www.idbi.co.in/about_us.aspx
 http://www.isnare.com/?aid=308470&ca=Finances
 http://www.calicutnet.com/articles/gopinath/online-trading/
 http://www.icici.com/aboutus/cg/interim_reports.htm
 http://www.moneycontrol.com/stocks/marketstats/index.php
 http://www.investopedia.com/university/fundamentalanalysis/

BIBLIOGRAPHY
REFERENCES:
 Kristi A Tange, Derivatives operations, Goldman Sachs & Co., New York, USA (2008)
 VCCircle analysis of the financials (2009)
 Goldman Sachs (May 2009)
 Dealogic, the Global Deal Data Provider (2009)
 Indian Brand Equity Foundation (June 2009)
 News Release by HSBC Holdings plc (April29, 2009)
 The Association of Investment Trust Companies (October 2004)
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 BOOKS:
 Kothari C. R.: Research Methodology=methods and techniques.
 Kotler Phillip: Marketing Management Eleventh revised edition, 2002.
 Gupta S. P.: Statistical Methods Thirteen revised edition, 2001.
 Khan, M Y , Financial services, Tata McGraw-Hill, New Delhi 2006.
 Khan, M Y ,Indian Financial system, Tata McGraw-Hill, New Delhi 2007

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