Chapter-1

INTRODUCTION

1.1 WHAT IS SHARE

Share is the part of the capital of a company. Every company’s capital is divided
into small-small parts, these small-small parts called shares. In other words, a share
is the interest of a shareholder in the company measured by a sum of money and
represents the rights and obligations of its holder and company.

1.2 WHAT IS SHARE MARKET:

Share market is the place where securities are buying and sale. It is that place
where existing and IPOs securities are traded.

STOCK EXCHANGE:

The stock exchange (or the secondary market) is a highly organized market for the
purchase and sale of second-hand quoted or listed securities. ‘Quoting or Listing of
a particular security implies incorporating that security in the register of the stock
exchange so that it can be bought and sold there.

The Securities Contracts (Regulation) Act, 1956 defines a stock exchange as ‘’An
association, organization or body of individuals, whether incorporated or not ,
established for the purpose of assisting, regulating and controlling business in
buying, selling and dealing in securities.’’

1
S - Securities provide for investor.
T - Tax Benefits planning and exemption.
O - Optimum return on investment.
C - Cautious Approach.
K - Knowledge of Market.
Ex - Exchange of Securities Transacted.
C - Cyclopedia of Listed Companies.
H - High Yield.
A - Authentic Information
N - New Entrepreneur encouraged.
G - Guidance of Investor & Company.
E - Equity

1.3 INTRODUCTION OF BSE:

Established in 1875, BSE Ltd. (formerly known as Bombay Stock Exchange Ltd.),
is Asia’s first Stock Exchange and one of the India’s leading exchange groups.
Over the past 137 years, BSE has facilitated the growth of the Indian corporate
sector by providing it an efficient capital-raising platform. Popularly known as
BSE, the bourse was established as "The Native Share & Stock Brokers'
Association" in 1875.

BSE’s popular equity index - the SENSEX - is India's most widely tracked stock
market benchmark index. It is traded internationally on the EUREX as well as
leading exchanges of the BRCS nations (Brazil, Russia, China and South Africa).

2
1.4INTRODUCTION OF NSE:

National Stock Exchange of India is a stock Exchange that is located in Mumbai,

Maharashtra. The National Stock Exchange basically function in three market
sections, that is, (CM) the Capital Market Section); F&O (The Future and Options
Market Sections) and WDM (Wholesale Debt Market Segment). It is important
place where the trading of shares, debt etc takes place.

It was in year 1992 that the National stock Exchange was for the first time
incorporated in India. It was not regarded as a stock exchange at once. Rather, the
national Stock exchange was incorporated as a tax paying company and had got the
recognition of a stock exchange only in year 1993 the recognition was given under
the provisions of the Securities Contracts (Regulation) Act, 1956.

1.5CAPITAL MARKET:

Capital market is the market for long-term funds both equity, debt and funds raised
within and outside the country. It refers to all the facilities and institutional
arrangements for borrowing and lending terms funds (medium-term and long-term
funds).It is concerned with the raising of money capital for purposes of investment.

Capital Market is divided into two categories:-

Primary market

Securities generally have two stages in their lifespan. The first stage is when the
company initially issues the security directly from its treasury at a predetermined
offering price. This is a primary market. It is referred to as the Initial Public
Offering (IPO). In primary market, securities are offered to public for subscription
for the purpose of raising capital or fund.

3
Secondary Market

Secondary Market refers to a market where securities are traded after being
initially offered to the public in the primary market and/or listed on the Stock
Exchange. Majority of the trading is done in the secondary market.

Secondary market comprises of equity markets and the debt markets. Secondary
market is an equity trading avenue in which already existing/pre- issued securities
are traded amongst investors. Secondary market could be either auction or dealer
market.

1.6HISTORY OF STOCK EXCHANGE

The first stock exchange was established in London in the year 1773. Just after
establishment of London stock exchange various countries like France, Germany
and USA also established their own stock exchange markets. In India, the first
exchange established in Bombay in the year 1875. Later, in year 1908, Calcutta
stock exchange was established which was recognized in the company in 1923.
Mean which in 1920 the madras stock exchange limited in 1973. So far the
government of India has recognized 22 stock exchanges, which was located at
major business centers in different parts of country.

SEBI Act

The government of India has enacted an act (SEBI Act 1952), which provides for
the establishment of a board to protect the interest of investor in securities. The
SEBI has emerged as a monitoring institution of the country for the development
and regulation of stock market, SEBI has issued from time to time guideline to
insider trading listing of securities, registration of intermediaries mutual funds etc.

4
MANAGEMENT OF STOCK EXCHANGE:-

Management of stock exchange is done an elected body of members. These bodies

are known by different names in different stock exchange for example, the
BOMBAY, INDORE and AHEMDABAD stock exchange are managed by a
‘governing board’. ‘Council of management’ governs the MADRAS stock
exchange. A committee manages the CALCUTTA stock exchange. While the’
board of director manages stock exchange.

The Role of Stock Exchanges:

Stock exchanges have multiple roles in the economy, this may include the
following:

 Raising capital for businesses

 Mobilizing savings for investment
 Facilitating company growth
 Profit sharing
 Creating investment opportunities for small investors
 Government capital-raising for development projects

5
 Chapter-2

COMPANY PROFILE

Sharekhan is India’s leading online retail broking house. Launched on February

8/2000 as an online trading portal, Share khan has today a pan-India presence with
over 153 branches serving 1.6 million customers across 575 cities. It also has
international presence through its branches in the UAE and Oman. Share khan
offers services like portfolio management, trade execution in equities, futures &
options, commodities, and distribution of mutual funds, insurance and structured
products. These services are backed by quality investment advice from an
experienced research team which offers investment and trading ideas based on
fundamental and technical research respectively, market related news, statistical
information on equities, commodities, mutual funds, IPOs and much more.
Sharekhan is a member of the Bombay Stock Exchange, the National Stock
Exchange and the country’s two leading commodity exchanges, the NCDEX and
MCX. Share khan is also registered as a depository participant with National
Securities Depository and Central Depository Services. Share khan has set
category leadership through pioneering initiatives like Trade Tiger, an Internet-
based executable application that emulates a broker terminal besides providing
information and tools relevant to day traders.

Its second initiative, First Step, is targeted at empowering the first-time investors.
Share khan has also set its global footprint through the “India First” initiative, a
series of seminars conducted by Sharekhan to help the non-resident Indians
participate and benefit from the huge investment opportunities in India.

6
Share khan is one of the leading retail brokerage of City Venture which is running
successfully since 1922 in the country. Earlier it was the retail broking arm of the
Mumbai-based SSKI Group, which has over eight decades of experience in the
stock broking business. Share khan offers its customers a wide range of equity
related services including trade execution on BSE, NSE, Derivatives, depository
services, online trading, investment advice etc.

Earlier with a legacy of more than 80 years in the stock markets, the SSKI group
ventured into institutional broking and corporate finance 18 years ago. SSKI is one
of the leading players in institutional broking and corporate finance activities.
SSKI holds a sizeable portion of the market in each of these segments. SSKI’s
institutional broking arm accounts for 7% of the market for Foreign Institutional
portfolio investment and 5% of all Domestic Institutional portfolio investment in
the country. It has 60 institutional clients spread over India, Far East, UK and US.
Foreign Institutional Investors generate about 65% of the organization’s revenue,
with a daily turnover of over US$ 2 million.
The content-rich and research oriented portal has stood out among its
contemporaries because of its steadfast dedication to offering customers best-of-
breed technology and superior market information. The objective has been to let
customers make informed decisions and to simplify the process of investing in
stocks.
 SSKI named its online division as SHARE KHAN and it is into Retail
Broking.

 The business of the company overhauled 4 years ago on February 8, 2000.

 It acts as a discount brokerage house to a full service investment solutions

provider.

7
  It has a 250 member strong research team.

 It has specialized research product for the small investors and day traders.

 Largest chain of share shops, 103 Franchisees & 17 Branches across India.

 It has 4 lakh trades every day.

 Leading player today with 20% market share.

 The site was also launched and was named as www.sharekhan.com

 The Speed Trade account of share khan is the next generation technology
product launched on April 17, 2002

 Speed Trade Plus was launched on October 28, 2002 for trading in
Derivatives

 It offers its customers with the trade execution facilities on the NSE, for
cash as well as derivatives, depository services

Address of the company-

Full name Sharekhan Limited

3-E/6, Jhandewalan Extension

Ground floor

Delhi-110055

8
MISSION:

 To educate and empower the individual investor to make better

investment decisions through quality advice and superior service.
 Quality advice.
 Innovative products and
 Superior service.

VISION:

 To be the best retail brokering Brand in the retail business of stock

market.

ACHIEVEMENTS OF SHAREKHAN:

 It was awarded ‘Top Domestic Brokerage House’ four times by Euro and
Asia money.
 It was Winner of “Best Financial Website” award.India’s most preferred
brokers within 5 years. “CNBC Awaaz customers Award 2005”.
 Our Company has received the 'Stock Market Award 2008' - Girnar
Award, from the Bruhad Mumbai Gujarati Samaj on January 22, 2009.
 2012 Inventure Growth & Securities has allotted the Bonus in the Ratio
of 3:1.

9
2.1PRODUCTS OF SHAREKHAN COMPANY:

ShareKhan products

Offline Online Other Services

Classic A/C Speed Trade

Other Services:

 Dial-n-Trade
 Depository Services
 Commodity Trading
 Derivative Trading
 Mutual fund
 Portfolio Management Services
 Stock SIP’s
 Online IPO
 Research Based Information Provided

10
2.2 Shareholders & Management team

Fig No 2.1

11
2.3 SWOT ANALYSIS

SWOT Analysis

Strength 1. Widerange of innovative financial products 

2.  Intensive research on all industry sectors

3. Strong I.T infrastructure

4. Have one of the largest network of branches

across country
5. Pan-India presence with over 1,500 outlets
serving 950,000 customers across 450 cities

Weakness 1. Penetration limited to urban areas

Opportunity 1. Growing rural market

2.Earning Urban Youth
3. Educating people about the benefits of
investments to increase target audience

Threats 1.Stringent Economic measures by Government

and RBI
2.Entry of foreign finance firms in Indian Market

Table No 2.1

2.4 Types Of Account Provided By Sharekhan

12
2.4.1 CLASSIC ACCOUNT

Characteristics:

 For 1st Year De-mat A/C is Free, On 2nd Year AMC charge is applicable.
 Typed with 14 banks through which one can transfer or withdraw his fund
online, which are as follows
 HDFC Bank
 IDBI Bank
 Federal bank
 OBC Bank
 CITI Bank
 Indus land Bank
 Union Bank of India
 Yes bank
 ICICI bank
 State bank of India
 Bank of India
 Deutsche bank
 Kotak Mahindra bank
 Axis bank
Anyone who have A/C either of above banks they can use this facility. Otherwise
one has to make fund transfer or withdraw by cheque. This account enables you to
buy and sell shares through Sharekhan’s website.

It has features like:

a) Streaming quotes (using the applet based system)

13
b) Multiple watch lists
c) Integrated Banking, de-mat and digital contracts
d) Real-time portfolio tracking with price alert and, of course, the assurance of
secure transactions.

e) Instant credit and transfer

Features of Classic Account:

 Online trading account for investing in Equities and Derivatives via

sharekhan.com
 Integration of: Online trading + Bank + De-mat account
 Instant cash transfer facility against purchase & sale of shares
 Make IPO booking
 You get Instant order and trade confirmations by e-mail
Streaming Quotes
 Personalized Market Scan with your own customized stock ticker!
 Single screen interface for cash and derivatives
Your very own Portfolio Tracker!

2.4.2SPEEDTRADE
Characteristics:

A/C Opening Charges Rs.5000/-(onetime Charge).

Monthly charges Rs.500/-(But if Client give Brokerage of Rs.1500/-in a Quarter,

then Rs.1500/-that was charged of a Quarter will be Reimbursed).

For 1st Year De-mat A/C is Free, On 2nd Year AMC charge is applicable.

14
Type with 14 banks through which one can transfer or withdraw his fund online,
which are as follows:

 HDFC Bank
 IDBI Bank
 Federal bank
 OBC Bank
 CITI Bank
 Indus land Bank
 Union Bank of India
 Yes bank
 ICICI bank
 State bank of India
 Bank of India
 Deutsche bank
 Kotak Mahindra bank
 Axis bank
Anyone who have A/C either of above banks they can use this facility. Otherwise
one has to make fund transfer or withdraw by cheque.

Features of Speed Trade:

 Instant order Execution & Confirmation

 Single screen trading terminal
 Real-time streaming quotes, tic-by-tic charts
 Market summary (most traded scrip, highest value and lots of other
relevant statistics)

15
  Hot keys similar to a brokers terminal
 Alerts and reminders
 Back-up facility to place trades on Direct Phone lines
 Single screen interface for cash and derivatives

2.5 DIAL-N-TRADE:-

 Along with enabling access for trade online, the CLASSIC and
SPEEDTRADE ACCOUNT also gives Dial-n-trade services. With this
service, one can dial Share khan’s dedicated phone lines 1-800-22-7500,
3970-7500. Beside this, Relationship Managers are always available on
Office Phone and Mobile to resolve customer queries.

2.6 SHARE MOBILE:-

 Sharekhan had introduced Share Mobile, mobile based software where

one can watch Stock Prices, Intra Day Charts, Research & Advice and
Trading Calls live on the Mobile.

2.7 PREPAID ACCOUNT:-

 Customers pay Advance Brokerage on trading Account and enjoy

uninterrupted trading in their Account. Beside this, great discounts are
also available on brokerage.
 Prepaid Classic Account: - Rs750 < Rs. 2000
 Prepaid Speed trade Account: - Rs. 2000 < Above.

2.8 IPO ON-LINE:-

16
  Customers can apply to all the forthcoming IPOs online. This is quite
hassle- free, paperless and time saving. Simply allocate fund to IPO
Account, Apply for the IPO and Sit Back & Relax.

2.9 MUTUAL FUND ONLINE:-

 Investors can apply to Mutual Funds of Reliance, Franklin Templeton

Investments, ICICI Prudential, SBI, Birla, Sundaram HDFC, DSP
Merrill Lynch, PRINCIPAL and TATA with Sharekhan.

Chapter-3
17
 Comparative Analysis

The major players in online trading

 ShareKhan
 5paisa
 KotakStreet
 Karvy
 ICICIDirect
 HDFC Sec
 Motilal Oswal
 Fyres

3.1 Sharekhan

Company Background

• Share khan is the retail broking arm of SSKI Securities Pvt Ltd. SSKI owns
56% in sharekhan, balance ownership is HSBC, First Caryle, and Intel
Pacific
• Into broking since 80 years
• Focused on providing equity solutions to every segment
• Largest ground network of 210 Branded Share shops in 90 Cities

18
Online Account Types

1. Classic account

Allow investor to buy and sell stocks online along with the following features like
multiple watch lists, Integrated Banking, de-mat and digital contracts, Real-time
portfolio tracking with price alerts and Instant credit & transfer.

a. Online trading account for investing in Equities and Derivatives

b. Free trading through Phone (Dial-n-Trade)

 Two dedicated numbers for placing your orders with your cell-phone
or landline.
 Automatic funds transfer with phone banking (for Citibank and HDFC
bank customers)
 Simple and Secure Interactive Voice Response based system for
authentication
 get the trusted, professional advice of our tele-brokers
 After hours order placement facility between 8.00 am and 9.30 am

c. Integration of: Online trading + Bank + De-mat account

d. Instant cash transfer facility against purchase & sale of shares
e. IPO investments
f. Instant order and trade confirmations by e-mail
g. Single screen interface for cash and derivatives

19
 2. Trade Tiger account

This is a net based executable application for active traders who trade frequently
during the day's trading session. Following are few popular features of Trade Tiger
account.

a. A single platform for multiple exchange BSE & NSE (Cash & F&O), MCX,
NCDEX
b. Multiple Market Watch available on Single Screen
c. Hot keys similar to a traditional broker terminal
d. Tie-up with 12 banks for online transfer of funds
e. Different tools available to gauge market such as Tick Query, Ticker,
Market Summary, Action Watch, Option Premium Calculator, Span
Calculator
f. Graph Studies are available including Average, Band- Bollinger, Know Sure
Thing, MACD, RSI, etc

Account Opening Fees & Annual maintenance charges (AMC)

 Trading Account Opening Charges (One Time): Rs 750 (Classic Account),

Rs 1000 (Trade Tiger Account)- charges fully adjusted against first 6 months
brokerage.
 Trading Annual maintenance charges (AMC): Nil
 De-mat Account Opening Charges (One Time): Included in trading account
opening charges
 De-mat Account Annual Maintenance Charges (AMC): Rs 400 (Free for 1st
year with trading account.)

20
Sharekhan Trading Brokerages Charges:

 Intra-day Trades: 0.1% on the buy side and 0.1% on the sell side.
 Delivery Based Trades: 0.5% or 10 paisa per share or Rs 16 per scrip
whichever is higher.
 F&O Trades: 0.1% on the first leg and 0.02% on the second leg if squared
off on the same day and 0.1% if squared off on any other day.
 Options Trades: Rs 100 per contract or 2.5% on the premium (whichever is
higher).
 Currency Future: 0.1%.
 Currency Options: Rs 30 per lot or 2.5% on premium (whichever is
higher).
 Commodity: 0.1%.

Sharekhan Minimum Brokerage Fee:

 For Intra-day Trades: Sharekhan charges minimum brokerage of 5 paise

per share. This means that while doing intraday trading if the share price you
trade in is Rs 50 or less, a minimum brokerage of 5 paise per share will be
charged.
 For Delivery Based Trades: Sharekhan charges minimum brokerage fee of
10 paise per share. This means; for delivery based trades minimum
brokerage of 10 paise per share is charged when the share price is Rs 20 or
less.
 Minimum DP charges: DP charges of Rs 16 per scrip is charged when the
total traded value is Rs 3200 or less in case of sell transaction.

21
3.2 5paisa
Company Background

5paisa is a Mumbai based discount stock broker. 5paisa is part of India Infoline

(IIFL), India's leading financial services company. 5paisa was re-launched with
new brokerage model for online retail broking services in late 2016.

India-infoline was founded in 1995 and was positioned as a research firm In 2000
e-broking was started under the brand name of 5 paisa.com.

Apart from offering online trading in stock market the company offers mutual
funds online.

It also acts as a distributor of various financial services i.e GOI securities,

Company Fixed Deposits, Insurance. Limited ground network, present in 20 Cities

Account Types

1. Share Trading Account

5paisa is India's fast growing discount broker offering investing and trading
services in segments including stocks, derivatives (F&O) and currency.
5paisa is member of BSE and NSE. 5paisa trading account is backed by the
experience and technology developed by its parent company IIFL for over
20 years in retail broking industry.

5paisa offer trading services under a simple brokerage plan. Customers can
trade across the segments for a flat rate of Rs 10 per executed order,
irrespective of the size of the order. This brings saving up to 90% in

22
 comparison to traditional brokers who charge brokerage fee in % of the total
turnover.

5paisa trading account is well integrated with other products they offer
including mutual funds, etf, bonds and insurance.

2. Mutual Fund Account

Online Mutual Funds Investment Account is a key offering from 5paisa.

You can open just a Mutual Funds Investment Account with 5paisa for free
of charges.

5paisa also offers Systematic Investment Plans (SIP), an automatic periodic

investment option in stock market though mutual funds.

The 'Auto Investor' tool is available free of charge to its customer which
helps with online MF advisory. This tool help in choosing the right funds
based on their risk profile and return expectations.

5 Paisa special offers

 5 Free Trades

Open an account with 5paisa and get 5 free trades. In addition, maintain a margin
of Rs 25000 and get full refund of your account opening and DP AMC (saving of
Rs 1050).

23
5 Paisa brokerage charges in 2018

Account opening fees & Annual Maintenance Charges

 Trading Account Opening Charges (One Time)=Rs 650

 Trading Account Maintenance Charges (AMC)=Rs 0
 De-Mat Account Opening Charges(One Time)=Rs0
 De-Mat Account Maintenance Charges(AMC)=Rs 400 Per Year

Trading Brokerages

 Stock Intra Day Trades : Rs 10 Per executed order( Buy & Sell are taken as
2 orders)
 Stock Cash Delivery Based Trades : Rs 10 Per executed order
 Stock F&O Trades : Rs 10 Per executed order

•Min Account Balance

Concept of Min Rs 1,000 to be maintained in form of cash / securities to keep

account active. This can be withdrawn only on closure of account.

24
3.3 Kotakstreet

Company Background

Kotakstreet is the retail arm of kotak securities. Kotak Securities limited is a joint
venture between Kotak Mahindra Bank and

Goldman Sachs

Online Account Types

•Twin Advantage / Green Channel : 2 DP’s, Limit against shares

•Free Way: Flat Rs 999 Cover Charge p.m, 0.03% per transaction

•High Trader: 6 Times Exposure Cash & Derivatives, Auto sq off 2:55

•Cash Expressway : Spot payment, additional 0.5% charges

For Kotak Fast Lane / Keat Lite / Keat Desktop are trading interfaces.

Keat Desktop with advanced tools comes at a charge of Rs 500 p.m,

Non refundable
PRICING OF KOTAK
•Account Opening : Rs 500

•De-mat: Rs 22.5 p.m

•Initial Margin : Rs 5000(Compulsory)

•Min Margin Retainable : Rs 1000

25
•Brokerage Slab wise: Higher the volume, lower the brokerage. Even older
customers (on 0.25% & 0.40%) have been moved to the slab wise structure wef
1/4/2004

Slab structure of Kotak

Delivery Vol p m Brokerage *

< 1 lakhs 0.65%

1 lakhs - 5 lakh 0.60% Square Vol off p m Brokerage

**

< 10 lakhs 0.10% Both Sides

10lakhs - 25 lakhs 0.08% Both Sides

25lakhs – 2 Cr 0.06% Both Sides

2 Cr - 5 Cr 0.05% Both Sides

> 5 Cr 0.04% Both Sides

Brokerage is inclusive of All Taxes

** Min Brokerage of Rs 0.01 per share

Derivatives Vol off p m Brokerage

< 2 Cr 0.07% Both Sides

2 Cr - 5.5 Cr 0.05% Both Sides

5.5 Cr - 10 Cr 0.04% Both Sides

26
> 10 Cr 0.03% Both Sides

Brokerage is inclusive of All Taxes

5 lakhs -10 lakhs 0.50%

10 lakhs -20 lakhs 0.40%

20 lakhs -60 lakhs 0.30%

60 lakhs – 2 Cr0.25%

>2 Cr 0.20%

DP Charges Extra

Brokerage is inclusive of All Taxes

Min Brokerage of Rs 0.05 per share

No Flexibility of A/c opening charges (Rs 500) + Compulsory margin Rs 5000/-

Account opening free with Rs 10,000 Margin OR competitor Contract Note.

•No Customization of commercial Terms

No Flexibility in Leverage – Dependent on Type of Account ( 4 to 6 times only)

No flexibility in Brokerage, driven by slab structure

•Many Other Charges

Rs 22.5 p.m towards DP AMC charges

27
DP incoming charges extra, 0.02%

Rs 1,000 as retainable Margin to keep account active

Rs 25 per call after 20 calls for the month

•Restricted Access to Terminal Like product

KEAT Desktop restricted distribution on payment of Rs 500, Non refundable

28
3.4KARVY

It also provides a monthly magazine, Finapolis, which provides up-dated market

information on market trends, investment options, and opinions. The company was
founded in 1990 and is based in Hyderabad, India. Karvy Stock Broking Limited
operates as a subsidiary of Karvy Consultants Limited.

Karvy offers 3 type of accounts:

1. Zero Account

Key features of Zero Account:

 Zero account opening fees for de-mat and trading a/c

 Upfront payment of minimum Rs 10,000 as a margin
 Free e-Insurance Account
 Zero AMC for 1 year
 Daily research reports through SMS / Email
 Premium subscription plan are available
 Pay one time Rs 1200 and get lifetime free AMC

2. Express Account

Key feature of Express Account:

 Open account online with e-KYC and digital signature in just few
minutes
 Get access to your account instantly
29
  Premium subscription plan are available
 Pay one time Rs 1200 and get lifetime free AMC

3. Priority Account

Key features of Priority Account:

 Offers investment strategies in equities based on Techno-Funda

Analysis
 Access to dedicated relationship managers and equity advisors
 Access to research team
 All requests and applications made by you are processed on
priority.
 A range of service requests are processed over the counter. Karvy
Account Opening Specials

Karvy offering Rs 5500 brokerage credit on account opening. Note:

 The credit is available for trading done in first 30 days.

 The maximum credit taken per segment is Rs 1100.
 Karvy Account Opening Charges

Customer pays account opening fee for trading account opening with Karvy. The
account opening fees are as below:

 Karvy Account Opening Charges (Trading Acct): ₹0

 Karvy AMC Charges (Trading Acct): ₹0
 Karvy Account Opening Charges (De-mat Acct): ₹0
 Karvy AMC Charges (De-mat Acct): ₹500

30
3.5ICICIDirect
Company Background
ICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is an

Affiliate of ICICI Bank Limited and the Website is owned by ICICI BankLimited

Account Types
 ICICI Direct e-invest Account : Plain Vanilla Account with focus on 3 in 1
advantage. Differentiated in services within the account

1. Cash on spot

2. Margin Plus

Premium Trading interface of ICICI-Direct Link is given to DBC partners and

HNI’s

 Account Opening : Rs 750

 Schemes : For short periods Rs 750 is refundable against brokerage
generated in a qtr. These schemes are introduced 3-4 times a year.
 De-mat: NIL, 1st year charges included in Account Opening Plus a facility to
open additional 4 DP’s without 1st yr AMC
 Initial Margin : Nil
 Brokerage : All brokerage is inclusive of stamp duty and exclusive of other
taxes.

31
Delivery Vol per qtr Brokerage * Square Vol off p m Brokerage **

< 10 lakhs 0.75%

10 lakhs - 25 lakhs 0.70%

25 lakhs -50 lakhs 0.55%

50 lakhs – 1 Cr 0.45%

1 Cr – 2 Cr 0.35%

2 Cr – 5 Cr 0.30%

> 5 Cr 0.25%

 Poor online Interface

 Slow website interface with no real-time quotes creates a dissatisfaction
among high frequency traders

Margin trading restriction - The margin trading system is available up to 2:45 p.m,
with outstanding net positions under margin segment automatically squared off at
any time between 2:45 – 3:30 p.m. Thus no control of square off price.

 Morning Trades Issue

Being one of the websites with largest no of after hour orders which are pushed 1st
thing in the morning, creates a choking of orders to the exchange, causes delay of
confirmations for new order placed during the early morning trades

32
  Restriction of BTST
 The sale of shares purchased is restricted to T+1 day and is not permitted on
T+2 Day.
 No leverage for Delivery trades
 Delivery is restricted to the total money allocated into the trading account.
 No flexibility on leverage on Intra-day trades
 The leverage of 4 times is available for intra- day trades.
 Restriction of Bank Account
 The choice of bank is restricted to ICICI Bank.

Higher Brokerage rates with slabs

The delivery brokerage is pegged at 0.75% and trading at 0.10% each side, this
makes is very unviable for customers dealing in large volumes. Although
progressively the delivery and trading brokerage reduce as volumes go up.

33
3.6HDFC Securities
Company Background

HDFC Securities Ltd, is promoted by the HDFC Bank, HDFC and Chase Capital C
Partners and their associates. Pioneers in setting up Dial-a-share services with the
largest team of Tele-brokers

Online Account Type

HDFC Online Trading A/c : Plain Vanilla Account with focus on 3 in 1 advantage

Pricing of HDFC Account

 Account Opening : Rs 750

 De-mat: NIL, 1st year charges included in Account Opening
 Initial Margin : Rs 5000/- for non HDFC Bank customers ( AQB)
 Brokerage :
 Trading 0.15%* each side + ST
 Delivery 0.50%** each side + ST
 Rs 25 Min Brokerage per transaction
 Rs 8 Min Brokerage per transaction
 Poor online Interface

Apart from having no product to cater to Day-Traders, the hdfcsec.com website is

plagued with downtime. The same is currently being revamped.

34
•Lack of focus on Broking

The core business of HDFC is Housing Finance and that of HDFC Bank is
Banking. Broking as a business is a small part of the portfolio of financial services
and hence the commitment to resources is limited.

•No Leverage

No leverage is available to clients even for Intra-Day trades, effectively all clients
are on cash and carry system.

•No flexibility in commercial terms

The delivery brokerage is pegged at 0.5% and trading at 0.15% each side, this
makes it unviable for customers dealing in large volumes.

35
3.7 Motilal oswal

Incorporated in 1987, Motilal Oswal Securities Ltd. (MOSL) is a Mumbai, India

based diversified financial services firm offering a range of products and services
such as Private Wealth Management, Retail Broking and Distribution, Institutional
Broking, Asset Management, Investment Banking, Private Equity, Commodity
Broking, Currency Broking and Home Finance. Motilal Oswal has diversified
client base that includes retail customers (including High Net worth Individuals),
mutual funds, foreign institutional investors, financial institutions and corporate
clients.

Account Types

1. Value Pac:

Value Pac is the upfront subscription scheme, which gives significant discounts in
brokerage rates with defined time period to use it. With the wide range of Value
Pacs, based on the Volume of Trade and the Validity period one can enjoy the
benefits of placing trades at reduced charges.

2. Margin account:

Margin account is suitable for those who don't want to commit to a Value Pac
(upfront subscription). In Margin Account investor have to give defined upfront
margin amount at the time of opening the account.

36
Motilal Oswal Special Offers

Free (Trading & De=mat Account) + Free Brokerage for 1st Month

Motilal Oswal offers FREE Trading + De-mat Account (₹500 waived). You can

also avail free brokerage for first month, free access to research & advice and free
use of trading platform

Motilal Oswal Brokerage Charges 2018

Account Opening Fees & Annual maintenance charges (AMC)

 Trading Account Opening Charges (One Time): Rs 0

 Trading Annual maintenance charges (AMC): NA
 De-mat Account Opening Charges (One Time): NA
 De-mat Account Annual Maintenance Charges (AMC): Rs 441
Trading Brokerages:
Value Pac Schemes

 Delivery Based Trades: 0.25% to 0.18%

 Intra-day Trades: 0.03% to 0.015%
 Futures Trades: 0.03% to 0.025%
 Options Trades: Rs 60 to Rs 50 per contract
o Margin Schemes
 Delivery Based Trades: 0.30% to 0.25%
 Intra-day Trades: 0.03% to 0.025%
 Futures Trades: 0.03% to 0.025%
 Options Trades: Rs 100 to Rs 50 per contract

37
3.8 FYERS

Incorporated in 2015, Fyers Securities is a Bangalore based online discount stock

broker. Fyers offers trading in Equity Cash, F&O and Currency Derivatives
segments at NSE. FYERS word is an acronym of "Focus Your Energy & Reform
the Self", representing the core values of the company.

The company is founded by young entrepreneurs who believes in building the best
trading platforms, being transparent and keeping the cost of trading at its lowest in
India.

Fyers's Trading Platforms

Unlike most other brokers, Fyers has developed its own trading platform. This
includes front end as well as backend (including risk management engine and order
management system). The trading platform is still in evolution and tons of new
features are being added every month.

Fyers trading platform has 3 major applications:

1. Fyers One (Trading Terminal)

Build for profession traders, Fyers installable trading terminal is loaded with
industry standard features including advanced charting, flexible
workspaces, F&O Analysis tools, stock screeners, advanced end-of-day
reporting and portfolio tracker.

38
2. Fyers Markets (Mobile Trading App)

Built for traders and investors who likes to trade on the mobile phones,
Fyers Markets is an advance mobile trading app with rich features. The
mobile app is available for Android and iOS devices. Key feature of Fyers
trading app includes multiple watch list, stock screener, pre-loaded options
strategies, technical indicator and live stock quotes. Customers can also
transfer funds to & from Fyers through this mobile app.

3. Fyers Web Trader

Build for investors/traders who are comfortable with website based trading,
the Fyers Web Trader is fully functional online trading application. The
Fyers Web Trader can be accessed from any web browsers. The feature of
this application include portfolio tracker, auto-screened option strategies
(multi-leg Orders) and live data feed.

Fyers Brokerage Charges 2018

 Trading Account Opening Charges (One Time): Nil (Free)

 Demat account Opening Charges (One Time):
 Trading Annual maintenance charges (AMC): Nil (Free)
 Demat Account Annual Maintenance Charges (AMC): Rs 400 per year
(payable upfront every year)

39
Fyers Brokerage Charges

 Equity Delivery: 2% of turnover or Rs 20 per trade whichever is lower

 Equity Intraday: Rs 20 per executed order
 Equity Future: Rs 20 per executed order
 Equity Options: Rs 20 per executed order
 Currency Futures: Rs 20 per executed order
 Currency Options: Rs 20 per executed order

40
 CHAPTER -4

Research Methodology

Objective of the Study

4.1 Learning about dematerialization

4.1.1 How to convert your security to de-mat form:--

Process of conversion of securities into the de-mat form Securities specified as

being eligible for dematerialization by the depository in its bye laws and as under
the SEBI (Depositories and Participants) Regulations, 1996 (the Regulations) can
be converted or issued in a dematerialized form. The process of conversion of
securities into a dematerialized form or the issuance of the same in a
dematerialized form can be explained thus:

1. Firstly, the issuer company, whose securities are eligible for dematerialization,
has to enter into an agreement with a depository for dematerialization of securities
already issued, or proposed to be issued to the public or existing shareholders .

2. The investor is given an option to hold the securities in a dematerialized form

and it is his prerogative to exercise the option to hold the securities in that manner.

3. The depository enters into an agreement with the participants who are the agents
of the depository and co-functionaries in the process of dematerialization of
securities.

41
4. Any person can then enter into an agreement, through the participant, with the
depository for availing the services provided by the depository.

5. Upon the entering into such agreement with the depository, the person has to
surrender the certificate pertaining to the securities sought to be dematerialized to
the issuer. This surrender is affected in the following manner
(i) The person (beneficial owner) who has entered into an agreement with the
participant for dematerialization of the securities has to inform the participant
about the details of the certificate of such securities.
(ii) The beneficial owner has to then surrender the said certificate to the
participant.

(iii) The participant informs the depository about the particulars of the securities to
be dematerialized and the agreement entered into between him and the beneficial
owner.

(iv) The participant then transfers the certificate pertaining to the said securities to
the issuer along with the details and particulars of the securities.

(v) These certificates are mutilated upon receipt by the issuer and substituted in the
records against the name of the depository, who is the registered owner of the said
securities. A certificate to this effect is sent to the depository and all stock
exchanges where the security is listed.

(vi) Subsequent to this, the depository enters the name of the person who has
surrendered the certificate of security as the beneficial owner of the dematerialized
securities.

42
(vii) The depository also enters the name of the participant through whom the
process has been carried out and sends an intimation of the same to the said
participant.

6. Once the aforesaid process of dematerialization is carried out, the depository has
the responsibility to maintain all the records pertaining to the securities that have
been dematerialized.

4.2 Benefits of Depository System:--

In the depository system, the ownership and transfer of securities takes place by
means of electronic book entries. At the outset, this system rids the capital market
of the dangers related to handling of paper. NSDL provides numerous direct and
indirect benefits, like:

 Elimination of bad deliveries In the depository environment, once holdings

of an investor are dematerialized, the question of bad delivery does not arise
i.e. they cannot be held "under objection". In the physical environment,
buyer was required to take the risk of transfer and face uncertainty of the
quality of assets purchased. In a depository environment good money
certainly begets good quality of assets.
 Elimination of all risks associated with physical certificates
 Dealing in physical securities have associated security risks of theft of
stocks, mutilation of certificates, loss of certificates during movements
through and from the registrars, thus exposing the investor to the cost of
obtaining duplicate certificates and advertisements, etc. This problem does
not arise in the depository environment.

43
 No stamp duty for transfer of any kind of securities in the depository. This
waiver extends to equity shares, debt instruments and units of mutual funds.
 Immediate transfer and registration of securities In the depository
environment, once the securities are credited to the investors account on pay
out, he becomes the legal owner of the securities. There is no further need to
send it to the company's registrar for registration. Having purchased
securities in the physical environment, the investor has to send it to the
company's registrar so that the change of ownership can be registered. This
process usually takes around three to four months and is rarely completed
within the statutory framework of two months thus exposing the investor to
opportunity cost of delay in transfer and to risk of loss in transit. To
overcome this, the normally accepted practice is to hold the securities in
street names i.e. not to register the change of ownership. However, if the
investors miss a book closure the securities are not good for delivery and the
investor would also stand to loose his corporate entitlements.
 Faster settlement cycle The exclusive demat segments follow rolling
settlement cycle of T+2 i.e. the settlement of trades will be on the 2nd
working day from the trade day. This will enable faster turnover of stock and
more liquidity with the investor.
 Faster disbursement of non cash corporate benefits like rights, bonus, etc.
 NSDL provides for direct credit of non cash corporate entitlements to an
investors account, thereby ensuring faster disbursement and avoiding risk of
loss of certificates in transit.
 Reduction in brokerage by many brokers for trading in dematerialized
securities

44
  Brokers provide this benefit to investors as dealing in dematerialized
securities reduces their back office cost of handling paper and also
eliminates the risk of being the introducing broker.
 Reduction in handling of huge volumes of paper
 Periodic status reports to investors on their holdings and transactions,
leading to better controls.
 Elimination of problems related to change of address of investor,
transmission, etc
 In case of change of address or transmission of de-mat shares, investors are
saved from undergoing the entire change procedure with each company or
registrar. Investors have to only inform their DP with all relevant documents
and the required changes are effected in the database of all the companies,
where the investor is a registered holder of securities.
 Elimination of problems related to selling securities on behalf of a minor
 A natural guardian is not required to take court approval for selling demat
securities on behalf of a minor.
 Ease in portfolio monitoring, Since statement of account gives a
consolidated position of investments in all instruments.

4.3 Ifs and Buts of Indian online share trading

You have some money to dabble with. Trading shares on BSE/NSE has always
been your dream. When will you ever find the time? And besides, the hassle of
finding a broker is not easy.

Realizing there is untapped market of investors who want to be able to execute

their own trades when it suits them, brokers have taken their trading rooms to the

45
Internet. Known as online brokers, they allow you to buy and sell shares via
Internet.

There are 2 types of online trading service: discount brokers and full service online
broker. Discount online brokers allow you to trade via Internet at reduced rates.
Some provide quality research, other don’t. Full service online brokerage is linked
to existing brokerages. These brokers allow their clients to place online orders with
the option of talking/ chatting to brokers if advice is needed. Brokerage rates here
are higher. 5Paisa.com, ICICIDirect.com, Sharekhan.com, Geojit securities.com,
HDFCsec.com, Tatatdw.com, Kotakstreet.com are some of the online broking sites
in India.

There are currently close to 50 online brokerages in India with ICICIDirect, Home
Trade, KotakStreet, Sharekhan, Motilal Oswal, and 5Paisa being some major
players. However, due to limited volumes, no online brokerage is currently making
money and a shakeout is imminent in the near future. The going is expected to get
tougher with the advent of capital account convertibility. Players such as TD
Waterhouse have already entered the Indian market, while others such as Schwab
are expected shortly. On an average, Rs 40 crore per day (Rs 1,000 crore per
month) is likely to be the threshold breakeven for online brokerages.

Research design - Descriptive research

Research instrument - Questionnaire

Questionnaire-Open ended and close ended

46
4.4 Research Design
There are three types of research design. They are
 Descriptive design

 Exploratory design

 Causal design

In this research the research design adopted is Descriptive research design.

4.5 Descriptive Research Design

It is designed to describe something, such as demographic characteristics of
consumers who use the products. It deals with determining frequency with
something occurs or how two variables vary together.

4.6 Importance of Descriptive Study

 During the analysis of characteristics of certain groups, for e.g. users of a

product with different age, sex, education etc.

 To forecast the future trends, e.g. sales of a company’s product in each of

next five years.

 To study whether certain variables are associated, e.g. income and usage of a
product.

47
  Contact method- Survey
 Method of data Collection - Primary data and Secondary data
 Sampling method- Non-probability sampling
 Sampling type – Purpose of sampling
 Sampling unit - Consumers
 Sampling size - 50

4.7 Questionnaire Design

Designing and implementing the questionnaire is one of the most interesting and
challenging tasks of conducting research. Questionnaire designing also becomes
important and necessary when he/she observes that unless the data discussion or
otherwise is noted down, is basic form will be distorted. The questionnaire is the
backbone for obtaining data during a personal interview, telephone survey, and
mail survey.

4.8 Meaning of Questionnaire

A questionnaire is a form prepared and distributed to secure response to certain
question. The term questionnaire refers to a self administration process here by the
respondent himself/herself reads the questionnaire and records his/her answer
assistance of an interviewer.
Purpose of questionnaire is two fold
 To collect information from the respondent who are scattered in a vast area.

 To achieve success in collecting reliable and dependable data.

48
4.9 Determining Type of Question
After specifying the required data, the researcher must decide the type of question
required to be asked from the respondents to collect this data. He/she must
understand various existing types of question and decide which of these would suit
the most of his/her project situation. There are different types of questions they are
as follows:
Direct question – Direct question are just what their name indicates e.g. Have you
ever purchased brand?
Indirect question – Indirect refers to those whose responses are used to indicate or
suggest date about respondents other than the actual facts given in the answer. For
e.g. why you think most other people buy prefer SHAREKHAN?
Open ended question – Sometimes these question are called free answer questions
the respondent answer in his/her words, for e.g. and open ended question on a
study on “Orange squashes” can be asked as what suggestion do you make for
improving orange squashes? In this case no answer choice is given to the
respondent and he/she may give any answer he/she thinks.

Close ended question – Such guests are also called fixed alternative questions. The
alternative questionnaire may take the form of dichotomous question multiple
choice question checklist and rating scales, such as ordinal scale nominal scale etc.

Question method of data collection is quite popular and consists of question

printed or typed in a form or set of forms. Care was taken in the main aspect as
general form. Question sequence, question formulation and wording, the study was
associated with both the question i.e., closed ended and open ended questions. Free
responses were invited from the respondents.

49
4.10 Types of Questionnaire
The study conducted by using structural and undisguised questionnaire. It
comprises of both open and closed ended questions. Questions are rather framed
for the customer attitude including the multiple choice and dichotomous questions.
The following are the contact method generally user for survey.
1. Mail survey
2. Telephone interview
3. Personal interview

4.11Method of Data Collection

The task of collecting data being after a research problem has been defined and
plan is chalked and plan is chalked out. This study pertains to collect data from
primary sources primary data and from secondary sources secondary data.

Primary data
Primary data are that information which is collected, fresh and fir the first time
thus happens to be original in character primary data can be collected in marketing
by three basic methods, viz., survey, observation and experiments.

Secondary data

On the other hand are those, which have already been passed through the statistical
process. The secondary data are that information which is collected from internal
sources as well as external sources, Wiz’s from the company own the records and
documents. Secondary data was collected from the registers, manuals,
information bulletins maintained by the personnel department and other records,
information collected in this manner was
50
4.12Sampling Procedures
Sampling can be carried out fewer than two important methods, in order to obtain a
respective of the sample they are classified as:
1. Probability sampling
2. Non-probability sampling

4.13Sampling Size
50 consumers are taken as samples.

51
 Limitations

The disadvantages of dematerialization of securities can be summarized as follows:

A. Trading in securities may become uncontrolled in case of dematerialized
securities.

B. It is incumbent upon the capital market regulator to keep a close watch on the
trading in dematerialized securities and see to it that trading does not act as a
detriment to investors. The role of key market players in case of dematerialized
securities, such as stock-brokers, needs to be supervised as they have the capability
of manipulating the market.

C. Multiple regulatory frameworks have to be confirmed to, including the

Depositories Act, Regulations and the various Bye Laws of various depositories.
Additionally, agreements are entered at various levels in the process of
dematerialization. These may cause anxiety to the investor desirous of simplicity in
terms of transactions in dematerialized securities.
However, the advantages of dematerialization outweigh its disadvantages and the
changes ushered in by SEBI and the Central Government in terms of compulsory
dematerialization of securities are important for developing the securities market to
a degree of advancement. Freely traded securities are an essential component of
such an advanced market and dematerialization addresses such issues and is a step
towards the advancement of the market.

52
 CHAPTER -5
DATA ANALYSIS& INTERPRETATION

1. AGE:-

Table 5.1

20-30 18

30-40 7

40-50 20

ABOVE 50 5

Figure 5.1

TOTAL NUMBER OF PEOPLE

5
20-30
18 30-40
40-50
ABOVE 50
20

INTERPRETATION :- From the above study the result is 18 respondent

between 20 – 30 age , 7 respondent between 30 – 40 age , 20 respondent between

40 – 50 age , and only 5 respondent Above 50 age are the interested in Equity

trading in SHAREKHAN . majority40 – 50 age people are came.

53
2. GENDER:-

Table 5.2

MALE 36

FEMALE 14

14

MALE FEMALE
3rd Qtr 4th Qtr

36

Figure 5.2

INTERPRETATION: - From the above study we can clarify that out of 50, 36
male respondent and 14 female respondent are doing trading in SHAREKHAN.
So we can clarify that male are more interested compare to female in Equity
trading in sharekhan.

54
3. OCCUPATION:-

Table 5.3

STUDENT 10

PUBLIC SECTOR JOB 8

PVT. SECTOR JOB 9

PROFESSIONAL 7

BUSINESS 12

OTHERS 4

Figure 5.3

4
10
STUDENT
12 PUBLIC SECTOR JOB
PRIVATE SECTOR JOB
PROFESSIONAL
8
BUSINESS
OTHERS
7
9

INTERPRETATION :- From the above study we can see that out of 50

respondent , 10 respondent are students , 8 respondent have public sector job , 9
respondent have Pvt. Sector job, 7 respondent are professionals, 12 respondent are
Businessman, and 4 are related to the other work. We can justify that business
people are more interested in equity trading with SHAREKHAN.
Q1. ARE YOU DOING ONLINE TRADING IN EQUITY MARKET?

Table 5.4

55
 OPTIONS TOTAL NUMBER PERCENTAGE
OF PEOPLE
YES 45 90%
NO 5 10%

Figure 5.4

10%

Yes
No

90%

INTERPRETATION: - we can see that out of 50 respondent , 45 respondentare

aware and only 5 respondent are not aware about the online trading. From the
above mention graph we can clearly identify that most of the people are aware
about the online trading.

Q2.WHAT IS YOUR OPINION ABOUT EQUITY SHARES?

Table 5.5

56
 OPTIONS TOTAL PERCENTAGE
NUMBER OF
PEOPLE
It offers an investment 14 28%
facility
It make earn quick 12 24%
profit / gain
It is a part of an 10 20%
investment
It offers easy liquidity 14 28%

Figure 5.5

Frequency
it offers investment
28% 28% opportunity
it make quick gain
it is a part of investment
it offers easy liquidity
20% 24%

INTERPRETATION :- out of 50 respondent , 28% are believes that shares offer

an investment facility , 24% people are believes that shares are earn quick profit /
gain , 20%are believe that it is a part of an investment , 28% people are believes
that shares are useful for easy liquidity.
Q3. HOW DID YOU COME TO KNOW ABOUT SHAREKHAN ONLINE
TRADING EQUITY SHARES?

57
 Table 5.6

OPTIONS TOTAL NUMBER PERCENTAGE

OF PEOPLE
Share broker 12 24%
Friends 5 10%
Bankers 24 48%
Online adv. 9 18%

Figure 5.6

frequency
18%
24%
sharebroker
friends
10% bankers
Online advertisements
48%

INTERPRETATION :- Out of 50 respondent , 24% people got information

about sharekhan from share brokers , 10% people got information about sharekhan
from friends ,48% people got information about sharekhan from bankers , 18%
people got information about sharekhan from online advertisement . So we can
justify that majority people have got information from friends and relatives.
Q4.WHAT IS YOUR OBJECTIVE BEHIND INVESTING IN EQUITY
SHARES?
Table 5.7

OPTIONS TOTAL PERCENTAGE

58
 NUMBER
OF PEOPLE
Additional return 10 20%
Earn high 17 34%
dividends
Easy liquidity 8 16%
Capital 15 30%
appreciation in
the long run
Figure 5.7

Frequency
20% Additional return
30%
Earn high dividends
Easy liquidity
Capital appreciation
16% 34% in the long run

INTERPRETATION :- Out of 50 respondent , 20% people are thinks that

investing in share is additional return, 34% people are thinks that investing in
share is earn high dividend ,16% people are thinks that investing in share is easy
liquidity , 30% people are thinks that investing in share is capital appreciation for
long term . Most of the people are investing only for earn high profit / gain.
Q5. HOW FREQUENTLY YOU INVEST IN EQUITY SHARES?

Table 5.8

OPTIONS TOTAL NUMBER PERCENTAGE

59
 OF PEOPLE
Monthly 22 44%
Every 3 months 8 16%
Every 6 months 9 18%
Intraday 11 22%

Figure 5.8

Frequency
22% Monthly
Every 3 months
44% Every 6 months
Intraday
18%

16%

INTERPRETATION :- Out of 50 respondent , 44% people are invest in

shares Monthly, 16% people are invest in shares Every 3 month , 18%
people are invest in shares Every 6 month , 22% people are invest in
intraday.

Q6.HOW MUCH RISK CAN YOU TAKE AT A TIME IN EQUITY

MARKET?

Table 5.9

OPTIONS TOTAL NUMBER PERCENTAGE

OF PEOPLE

60
 Whole money 5 10%
Half money 7 14%
Depends on market 11 22%
On particular brand 10 20%
only
Can’t say 17 34%

Figure 5.9

Frequency
10%
Whole money
34% 14% Half money
Depends on market
On particular brand only
22% Can’t say
20%

INTERPRETATION :- Out of the 50 people , 10% people are take risk on whole
money , 14% people are take risk on Half money , 22% people are take risk on the
depends on market , 20% people are take risk on a particular brand only , 34%
people are take risk for them Can’t say.

Q7.Have you ever felt dissatisfied with any of the services of our company
Sharekhan?

Table 5.10

OPTIONS TOTAL No. OF PEOPLE PERCENTAGE

Slow operation 15 30%
Delayed correspondence 17 34%

61
Inaccessibility to the service 7 14%
centre
Fund transfer facility 11 22%

Figure 5.10

Frequency
22% Slow operation
30%
Delayed correspondence
14% Inaccessibility to the service centre
Fund transfer facility
34%

INTERPRETATION: - Out of the 50 respondent 30% people are dissatisfied

with services of sharekhan is Slow operation, 34% people are dissatisfied with
services of sharekhan is Delayed operation, 14% people are dissatisfied with
services of sharekhan is inaccessibility to the service centre, 22% people are
dissatisfied with services of sharekhan is Fund transfer facility.

Q8.Are you satisfied by the brokerage charges of transactions when compared

to other competitors in the equity market?

Table 5.11

OPTIONS TOTAL PERCENTAGE

NUMBER OF
PEOPLE
Satisfied 23 46%
Dissatisfy 15 30%
Can’t say 12 24%

62
 Figure 5.11

Frequency
24%
Satisfied
46%
Dissatisfy
Can’t say
30%

INTERPRETATION :- Out of 50 Respondent , 46% are satisfied with Brokerage

of Sharekhan , 30% people are Dissatisfied with Brokerage of Sharekhan , 24%
people can’t say for Brokerage of Sharekhan

Q9.Are you satisfied by the options provided by the BTST/DELIVERY (buy

today sell tomorrow) company?

Table 5.12
OPTIONS TOTAL NUMBER OF PERCENTAGE
PEOPLE
Yes 40 80%
No 10 20%

Figure 5.12

63
 Frequency

20%
Yes
No

80%

INTERPRETATION: - Out of 50 respondent, 80% people are satisfied by the

options BTST/DELIVERY (buy today sell tomorrow), 20% people Dissatisfied by
the options BTST/DELIVERY (buy today sell tomorrow).

Q10.Are you aware of the absence of AMC (Annual maintenance charges)

with reference to Sharekhan?
Table 5.13

OPTIONS TOTAL NUMBER PERCENTAGE

OF PEOPLE
Yes 50 100%
No 0 0%

Figure 5.13

64
 Frequency

Yes
No

INTERPRETATION: - Out of 50 respondent all 50 are aware about the AMC.

Q11. Are you aware of TRADE TIGER software, which is being used for the
online transactions?

Table 5.14
OPTIONS TOTAL NUMBER PERCENTAGE
OF PEOPLE
Yes 47 94%
No 3 6%

Figure 5.14

65
 Sales
6%

Yes
No

94%

INTERPRETATION: - From the 50 respondent , 94% are aware about the

TRADE TIGER, only 6% are not aware.

Q12.Are you satisfied by the overall services provided by Sharekhan?

Table 5.15
OPTIONS TOTAL PERCENTAGE
NUMBER OF
PEOPLE
Satisfied 35 70%
Dissatisfy 10 20%
Can’s say 5 10%

66
 Figure 5.15

Sales
10%

20% Satisfied
Dissatisfy
Can’s say

70%

INTERPRETATION: - From the 50 respondent, 70% are satisfied by the overall

services provided by Sharekhan , 20% are Dissatisfied by the overall services
provided by Sharekhan , 10% people can’t say by the overall services provided
by Sharekhan.

Q13.What factor you consider the most while purchasing shares of a

company?

Table 5.16

OPTIONS TOTAL PERCENTAGE

NUMBER OF
PEOPLE

67
 Promoters 11 22%
background

Premium 10 20%
account

Performances 25 50%
of company

Sector 4 8%
performance

Figure 5.16

Frequency
8%
22%
Promoters background
Premium account
Performances of company
Sector performance

50% 20%

INTERPRETATION: Out of 50 respondent, 22% people purchase share on basis

of the Promoter’s background, 20% people are purchasing the shares on basis of
premium account, 50% people are purchasing shares on basis of the performance
68
of the company, 8% people are purchasing their shares on basis of sector
performance.

Q14. Which exchange would you like to trade most?

Table 5.17

OPTIONS TOTAL NUMBER PERCENTAGE

OF PEOPLE
Bombay stock 20 40%
exchange
National stock 20 40%
exchange
Can’t say 10 20%

Figure 5.17

69
 Frequency
20%

40% Bombay stock exchange

National stock exchange
Can’t say

40%

INTERPRETATION: Out of 50 people, 40% people would like to trade in

Bombay stock Exchange, 40% people would like to trade in National stock
exchange and 20 % people can’t Say where they would like to trade

Q15. What do you think about the tips provided by sharekhan?

Table 5.18

OPTIONS Total no. of PERCENT

people AGE

Satisfactory 30 60%

Dissatisfactor 10 20%
y

Can’t say 10 20%

70
 Figure 5.18

Frequency

20%
Satisfactory
20% 60%

INTERPRETATION: Out of 50 people, 60% people are satisfied by the tips

provided bysharekhan, 20% people are dissatisfy with tips provided by sharekhan,
20% people can’t say about the tips provided by sharekhan.

Chapter-6

FINDINGS

In the prevailing competitive environment existing in the share industry, the

market potential and promotional strategy is changing from time to time. So there
is a need to analyze the market efficiency and promotional strategy prevailing in
the market
For the development of SHAREKHAN.
It is found from the study customer awareness toward SHAREKHAN in different
aspects are as follows:
1. AGE wise highest people come between the ages of 40 – 50 i.e. 20. Second
highest 20 – 30 i.e. 18.

71
2. As SHAREKHAN deals with online shares, 47 of the customers are aware of
the online shares and 3 of the respondents are not aware of online shares.
3. Out of 50 respondent, 14 are believes that shares offer an investment policy , 12
people are believes that shares are earn quick profit / gain , 10 are believe that it
is a part of an investment , 14 people are believes that shares are useful for easy
liquidity.
4. Maximum no. of customers got knowledge about SHAREKHAN through Out
of 50 respondent , 24% people got information about Sharekhan from share
brokers , 10% people got information about Sharekhan from friends ,48%
people got information about Sharekhan from bankers , 18% people got
information about Sharekhan from online advertisement . So we can justify that
majority people have got information from friends and relatives.

5. Majority of the customers main objective is to invest in shares is earn high

returns that is 17 , easy liquidity around 8 , 10 of the respondents invest because
of the tax-saving rest to 15 capital appreciation in long-run. So overall result is
people invest shares only for earning high dividends and Capital appreciation
for long term.
6. Around 8 of the customers invest shares in the time gap within 3 months. 22 of
the customers invest Monthly. It is the major in numbers.
7. When we talk about risk taking Out of the 50 people , 10% people are take risk
on whole money , 14% people are take risk on Half money , 22% people are
take risk on the depends on market , 20% people are take risk on a particular
brand only , 34% people are take risk for them Can’t say.
8. Out of the 50 respondent 30% people are dissatisfied with services of
Sharekhan is Slow operation, 34% people are dissatisfied with services of
Sharekhan is Delayed operation, 14% people are dissatisfied with services of
72
 Sharekhan is inaccessibility to the service center, 22% people are dissatisfied
with services of Sharekhan is Fund transfer facility
9. Out of 50 Respondent , 46% are satisfied with Brokerage of Sharekhan , 30%
people are Dissatisfied with Brokerage of Sharekhan , 24% people can’t say
for Brokerage of Sharekhan
10. 40 of the customers are satisfied with the BTST provided by the company; only
few customers that are 10 are not satisfied and said no.
11. AMC’s absence in the company is aware to all 50 of the customers and not
aware that is 0.
12.Company’s TRADE TIGER software used for online transaction is aware to 47
of the customers and only few, 3 are not aware.
13. Out of 50 respondent 22% people purchase share on basis of the Promoter’s
background, 20% people are purchasing the shares on basis of premium
account, 50% people are purchasing shares on basis of the performance of the
company, 8% people are purchasing their shares on basis of sector performance.
14.Out of 50 people, 40% people would like to trade in Bombay stock Exchange,
40% people would like to trade in National stock exchange and 20 % people
can’t Say where they would like to trade
15. Out of 50 respondents 60% people are satisfied by the tips provided by
Sharekhan, 20% people are dissatisfied with tips provided by Sharekhan, 20%
people can’t say About the tips provided by Sharekhan

73
 Chapter-7
Conclusion
Indian economy has been globalized and the capital market has been linked to the
international with the increases in cyber education awareness toward share market
and share trading has leaps and bounds; the awareness is expected to increases
future with the increase in internet education. On the basis of the study it is found
that share khan ltd is better services provider than the other share brokers because
of their study and research and personalized advice on what stocks to buy and sell.

Share khan lt provides TRADE TIGER as well as relationship manager

the facility for encouragement and protect the interest of the investors. It also
provides their information through the mail and mobile alerts that what IPOs are
coming in the market and it also provides its research on the future prospect of the
IPOs. Share khan is looked upon revenue generated and he gets a 100 % on
74
business generated from client. This can lead to over leverage and high frequency
trading which may in best interest of the customer Financial market.

Foreign individuals and institutional investors have encouraged participating into

it. So, there is a need for raising the Indian Capital market in to the international
standards in terms of efficiency and transparency. Dematerialization of securities
and under this system is one of the major steps aimed at improving and
modernizing the capital market and enhancing the levels of investor’s protection
measures which aims at eliminating the bad deliveries and forgery of shares and
expediting the transfer of shares. The study showed that there is a growth in the
shares included in the Dematerialization process both in terms of volume of shares
and value of shares.

Chapter-8

SUGGESTIONS

From the analysis of the survey and personal observation of the customer towards
the awareness of the share and the share company SHAREKHAN. Lots of
experience gained from the survey. This will help the company to survive in the
market and also improvise their market potential in the current competitive
environment. With this the company should take immediate steps to improve the
nature of the business.
From the survey: -
1) Try to encourage people who come between the age group of 30 – 40. They are
very less in number.
2) Most of the customers got information about the company only through the
Friends. The company should take necessary steps to concentrate on the

75
 advertisements. Through they are advertising online, it is necessary to advertise
in TV, radio, presses; only when they give these kinds of advertisements they
can get lots of customers. Also they have to go for boarding, which can be
viewed by everyone passing by.
3) It was found that maximum no of customer is investing in shares after a time
gap of 3 months. The company should explain the benefits of intraday (buy
today and sell today) operations certain customers invest in shares with a long
term on capital apperceptions. The benefits of short term trading can be
explained to the customers so that they may be persuaded to go in for the same.
4) There is an unfavorable feedback from the customers about brokerage charges
as per transactions. . The company should take necessary steps to concentrate
on the Brokerage charges according to competitors.
Chapter-9

Bibliography

 www.sharekhan.com
 www.moneycontrol.com
 www.bseindia.com
 www.nseindia.com
 www.sebi.gov.in
 www.investopedia.com

 Training Kit Provided by the Sharekhan.

76
 Chapter-10

Annexure

Q1. Are you doing online trading in equity shares?

A) Yes
B) No

Q2. What is your opinion about shares?

A) Shares offer an investment opportunity
B) Shares make earn quick profit/ gain
C) Share is a part of an investment
D) Shares offer easy liquidity

Q3. How did you come to know about Sharekhan online trading share?
77
A) Share broker
B) Bankers
C) Friends
D) Online Advertisement

Q4. What is your objective behind investing in shares?

A) Additional return
B) Earn high dividends
C) Easy liquidity
D) Capital appreciation in the long run

Q5. How frequently you invest in shares?

A) Monthly
B) Every 3 months
C) Every 6 months
D) Others

Q6. How much risk can you take at a time?

A) Your whole money
B) Half of money
C) Depends on market
D) On particular brand only
E) Can’t say

78
Q7. Have you ever felt dissatisfied with any of the services of our company
Sharekhan?

A) Slow operation

B) Delayed correspondence

C) Inaccessibility to the service centre

D) Fund transfer facility

Q8. Are you satisfied by the brokerage charges of transactions when

compared to other competitors in the market?
A) Satisfied
B) Dissatisfied
C) Can’t say
Q9. Are you satisfied by the options BTST/DELIVERY (buy today sell
tomorrow) provided by the company?
A) Yes
B) No

Q10. Are you aware of the absence of AMC (Annual maintenance charges)
with reference to Sharekhan?
A) Yes
B) No
Q11. Are you aware of TRADE TIGER software, which is being used for the
online transactions?
A) Yes
B) No

79
Q12. Are you satisfied by the overall services provided by Sharekhan?
A) Satisfied

B) Dissatisfied

C) Can’t say

Q13. What factor you consider the most while purchasing shares of a
company?

A) Promoters background

B) Premium account

C) Performance of the company

D) Sector performance

Q14. Which exchange would you like to trade most?

A) Bombay stock exchange

B) National stock exchange
C) Can’t say

Q15. What do you think about the tips provided by sharekhan ?

A) Satisfactory

B) Dissatisfactory

C) Can’t say

80
81