You are on page 1of 26

Introduction: Personal finance discipline demands every individual to plan for expenditure and

savings against current income. While moving up in the hierarchy of needs, one must
simultaneously save money for future. As one goes on in life, the standard of living rises, needs
increases and the expenditure to meet those needs also increases. Without proper financial
planning the future can be a miserable struggle to meet these demands.
Role of financial system is to enthuse economic development. As investors are getting more
educated, aware and prudent, they look for innovative investment instruments so that they are
able to reduce investment risk, minimize transaction costs and maximize returns along with
certain level of convenience. As a result there has been advent of numerous innovative financial
instruments such as bonds, company deposits, insurance and mutual funds.
Mutual funds score over all other investment options in terms of safety, liquidity, and returns and
are as transparent, convenient as it can get. Goal of mutual fund is to provide an efficient way to
make money. Different mutual funds have different risks, which differ, because of the fund’s goal,
fund managers and investment styles.
Sharekhan is the retail broking arm of SSKI, an organization with more than eight decades of
trust & credibility in the stock market. It is India's leading retail financial Services Company with
We have over 250 share shops across 115 cities in India. While our size and strong balance
sheet allow us to provide you with varied products and services at very attractive prices, our over
750 Client Relationship Managers are dedicated to serving your unique needs. Sharekhan is lead
by a highly regarded management team that has invested crores of rupees into a world class
Infrastructure that provides our clients with real-time service & 24/7 access to all information and
The objectives of the project report:
- To gain an insight into the level of public awareness regarding mutual fund and shares.
- To understand the existing level of popularity of mutual funds and shares, investments patterns
of individual, their attitude towards and response to different type of mutual fund offerings.
- To know about the awareness of online trading.
- To know about the best brokerage house among the people of Delhi.
- To know whether they are satisfied with their preferred broking house.
- To know whether people prefers to invest in equity or mutual funds.

Project Report Of Share Khan - Document Transcript

Project Report on “ Demat account” By Chintan P. Gandhi Gunjan S. Shah 1
PROJECT TITLE “ Demat account” A report submitted in fulfillment of the requirements of MBA
program COMPANY GUIDE FACULTY GUIDE Mr. Harshit Sur Poonam Purohit MBA – Finance,
MBA- HR, Phd(pursuing) Relationship Manager, BIMS, Sharekhan Ltd., Baroda. Baroda.
SUBMITTED BY Chintan Gandhi 520843213 & Gunjan Shah 520843078 MBA 3rd Semester-
Finance 2
PREFACE The successful completion of this project was a unique experience for me because by
visiting many place and interacting various person, I achieved a better knowledge about sales.
The experience which I gained by doing this project was essential at this turning point of my
career this project is being submitted which content detailed analysis of the research under taken
by me. The research provides an opportunity to the student to devote his/her skills knowledge
and competencies required during the technical session. The research is on the topic “Share
Khan Demat Account”. 3
Acknowledgement It was a great opportunity for us to work with Sharekhan Ltd., pioneers in the
field of Finance Industry. We are extremely grateful to all those who have shared their expertise
and knowledge with me and without whom the completion of this project would have been
virtually impossible. Firstly, we would like to thank our Company Guide Mr. Harshit Sur who has
been a constant source of inspiration for us during the completion of this project. He gave us
invaluable inputs during our endeavor to complete this project. We are indebted to all staff of
Sharekhan Ltd for their valuable support and cooperation during the entire tenure of this project.
Not to forget, all those who have kept our spirits surging and helped delivering our best. We thank
our faculty guide Mrs. Poonam Purohit who helped us out at every critical situation that We faced
in our project and gave us her valuable advice to solve problems. We want to give our special
thanks to all members of BIMS, for providing us opportunity to work on this project with this great
organization. At last We would like to thank all the respondents met in the preparation, who gave
their valuable time to provide us required information and their honest support to complete our
project in time. Chintan Gandhi REG. NO: - 520843213 & Gunjan Shah REG.NO: - 520843078 4
CERTIFICATE OF COMPLETION This is certify that the Final Project report entitled “Demat
Account” submitted Summer Internship report of the requirement for the degree of MBA, is a work
carried out by Chintan Gandhi, Reg No. – 520843213 and Gunjan Shah, Reg No. - 520843078
under my supervision and guidance. Comapany Guide: (_______________________) 5
taBLe oF contentS FoR PRoJect RePoRt Details of Document Page No. 1 Introduction of
Share Market 7 2 Company Profile 17 3 SWOT Analysis 28 4 Discussion on Training 30 5 Demat
Account of Sharekhan Ltd. 34 6 Buying and Selling 57 7 Need for the Study 61 8 Competitors 62
9 Objective 77 10 Research Methodology 78 11 Data analysis and Interpretation 86 12
Observation and Finding 96 13 Limitation 98 14 Suggestion 100 15 Conclusion 102 16
Bibliography 103 Introduction of Stock Market Indian Stock Markets are one of the oldest in Asia.
Its history dates back to nearly 200 years ago. The earliest records of security dealings in India
are meager and obscure. The East India Company was the dominant institution in those days and
business in its loan securities used to be transacted towards the close of the eighteenth century.
By 1830's business on corporate stocks and shares in Bank and Cotton presses took place in
Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers
recognized by banks and merchants during 1840 and 1850. The 1850's witnessed a rapid
development of commercial enterprise and brokerage business attracted many men into the field
and by 1860 the number of brokers increased into 60. In 1860-61 the American Civil War broke
out and cotton supply from United States of Europe was stopped; thus, the 'Share Mania' in India
begun. The number of brokers increased to about 200 to 250. However, at the end of the
American Civil War, in 1865, a disastrous slump began (for example, Bank of Bombay Share
which had touched Rs 2850 could only be sold at Rs. 87). In 1887, they formally established in
Bombay, the "Native Share and Stock Brokers' Association" (which is alternatively known as "The
Stock Exchange"). In 1895, the Stock Exchange acquired a premise in the same street and it was
inaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated. Thus in the same
way, gradually with the passage of time number of exchanges were increased and at currently it
reached to the figure of 24 stock exchanges. TRANSACTION CYCLE: 7
Decision to Placing Order trade Funds or Securities Transaction Trade Execution Cycle
Settlement of trades Clearing of Trades A person holding assets (Securities/Funds), either to
meet his liquidity needs or to reshuffle his holdings in response to changes in his perception
about risk and return of the assets, decides to buy or sell the securities. He selects a broker and
instructs him to place buy/sell order on an exchange. The order is converted to a trade as soon
as it finds a matching sell/buy order. At the end of the trade cycle, the trades are netted to
determine the obligations of the trading member’s securities/funds as per settlement cycle.
Buyer/seller delivers funds/ securities and receives securities/ funds and acquires ownership of
the securities. A securities transaction cycle is presented above. Just because of this Transaction
cycle, the whole business of Securities and Stock Broking has emerged. And as an extension of
stock broking, the business of Online Stock broking/ Online Trading/ E-Broking has emerged. 8
At the end of the American Civil War, the brokers who thrived out of Civil War in 1874, found a
place in a street (now appropriately called as Dalal Street) where they would conveniently
assemble and transact business. In 1887, they formally established in Bombay, the "Native Share
and Stock Brokers' Association" (which is alternatively known as “The Stock Exchange "). In
1895, the Stock Exchange acquired a premise in the same street and it was inaugurated in 1899.
Thus, the Stock Exchange at Bombay was consolidated. HISTORY OF ONLINE TRADING:
Online stock trading is very old concept for big institutions who trade thru private networks owned
by Reuter's "Instinet" and a system called "Posit" since 1969. But it becomes internet based for
lay men only in late 90s. Funny, that actually idea was first time used by a company making Beer
called "WIT beer" to help its shareholders trade its shares. That’s how "WIT Capital" was born
which is considered pioneer of this concept. It was made mainstream and household name by a
offshoot of Charles Schwab & Co called eSchwab which is used by millions of people in USA. Lot
of NRI's i know play in US stock market even when they come to India for holidays via website of
eSchwabe. There are other serious players like E*trade, DATEK online etc. All this companies
ask you to start account with US $5000 and you can buy and sell stock using these funds. They
also issue you a check book which you can use to make payments from this account. Or use their
ATM card to withdraw cash from your stock trading account. Today practically every big name
brokerage firm offers online stock trading as it reduces their costs. Earlier they had army of
brokers on phone with clients executing trade, which is done by computers accepting orders from
clients directly. This firm now offers human access to high net worth accounts, and to rest at
charge per trade. 9
E- Broking - A small beginning: 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 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.,,,, Geojit,,, are some
of the online broking sites in India. With Net trading in securities and rapid consolidation between
multiple stock exchanges, the international securities marketplace is fast becoming a "global
village" through the creation of a universal virtual equity market. Compared to the Western
countries, online trading is still in its infancy in India. With trading turnover at around Rs. 10 crores
per day from online trading compared to a combined gross turnover of around Rs. 9000-10,000
crores handled by the BSE and NSE together, online trading has a long way to go. INTERNET
TRADING IN INDIA: In the past, investors had no option but to contact their broker to get real
time access to market data. The Net brings data to the investor on line and net broking enables
him to trade on a click. Now information has become easily accessible to both retail as well as big
investors. 10
The development of broking in India can be categorized in 3 phases: 1. Stock brokers offering on
their sites features such as live portfolio manager, live quotes, market research and news to
attract more investors. 2. Brokers offering on line broking and relationship management by
providing and offering analysis and information to investors during broking and non-broking hours
based on their profile and needs, that is, customized services. 3. Brokers (now e-brokers) will
offer value management or services such as initial public offerings on line, asset allocation,
portfolio management, financial planning, tax planning, insurance services and enable the
investors to take better and well- considered decisions. In the US, 82 per cent of the deals are
done on line. The European on line broking market is expected to be of $8 billions and is likely to
raise five fold by 2002. In India, presently Internet trading can take place through the order routing
system, which will route client orders to exchanges trading systems for execution of trades on
stock exchanges (NSE and BSE). This will also require interface with banks to facilitate instant
cash debit or credit and the depository system for debit or credit of securities. OBJECTIVES OF
INTERNET TRADING • Increase transparency in the markets. • Enhance market quality through
improved liquidity, by increasing quote continuity and market depth. • Reduce settlement risks
due to open trades, by elimination of mismatches. • Provide management information system
(MIS). • Introduce flexibility in system, to handle growing volumes easily and to support
nationwide expansion of market activity. • Besides, through Internet trading three fundamental
objectives of securities regulation can be easily achieved, these are: Investor protection, creation
of a fair and efficient market and, reduction of the systematic risks. Other leading cities in stock
market operations: 11
Ahmedabad gained importance next to Bombay with respect to cotton textile industry. After 1880,
many mills originated from Ahmedabad and rapidly forged ahead. As new mills were floated, the
need for a Stock Exchange at Ahmedabad was realized and in 1894 the brokers formed "The
Ahmedabad Share and Stock Brokers' Association". What the cotton textile industry was to
Bombay and Ahmedabad, the jute industry was to Calcutta. Also tea and coal industries were the
other major industrial groups in Calcutta. After the Share Mania in 1861-65, in the 1870's there
was a sharp boom in jute shares, which was followed by a boom in tea shares in the 1880's and
1890's; and a coal boom between 1904 and 1908. On June 1908, some leading brokers formed
"The Calcutta Stock Exchange Association". In the beginning of the twentieth century, the
industrial revolution was on the way in India with the Swadeshi Movement; and with the
inauguration of the Tata Iron and Steel Company Limited in 1907, an important stage in industrial
advancement under Indian enterprise was reached.Indian cotton and jute textiles, steel, sugar,
paper and flour mills and all companies generally enjoyed phenomenal prosperity, due to the First
World War. In 1920, the then demure city of Madras had the maiden thrill of a stock exchange
functioning in its midst, under the name and style of "The Madras Stock Exchange" with 100
members. However, when boom faded, the number of members stood reduced from 100 to 3, by
1923, and so it went out of existence. In 1935, the stock market activity improved, especially in
South India where there was a rapid increase in the number of textile mills and many plantation
companies were floated. In 1937, a stock exchange was once again organized in Madras -
Madras Stock Exchange Association (Pvt) Limited. (In 1957 the name was changed to Madras
Stock Exchange Limited). Lahore Stock Exchange was formed in 1934 and it had a brief life. It
was merged with the Punjab Stock Exchange Limited, which was incorporated in 1936. Indian
Stock Exchanges - An Umbrella Growth: The Second World War broke out in 1939. It gave a
sharp boom, which was followed by a slump. But, in 1943, the situation changed radically, when
India was fully mobilized as a supply base. On account of the restrictive controls on cotton,
bullion, seeds and other commodities, those dealing in them found in the stock market as the only
outlet for 12
their activities. They were anxious to join the trade and numerous others swelled their number.
Many new associations were constituted for the purpose and Stock Exchanges in all parts of the
country were floated. The Uttar Pradesh Stock Exchange Limited (1940), Nagpur Stock
Exchange Limited (1940) and Hyderabad Stock Exchange Limited (1944) were incorporated. In
Delhi two stock exchanges - Delhi Stock and Share Brokers' Association Limited and the Delhi
Stocks and Shares Exchange Limited - were floated and later in June 1947, amalgamated into
the Delhi Stock Exchange Association Limited. RANGE OF PRODUCT AND SERVICES: Market
Size: Growth of Online Brokerage market: In five years of its existence in India, online broking
has grown to account for a tenth of the total trading volumes. If the numbers are considered for
only the retail segments, the growth is starker. Almost half of the Rs 5,000 crore-6,000 crore daily
market volumes on the NSE are accounted for by non-retail entities such as foreign institutional
investors, domestic institutions, mutual funds and arbitrage traders. Institutions aren't online
customers anyway. Of the rest of the retail segment, current estimates suggest that online
broking's reach is close to 30 per cent. As of September this year, there were 11.7 lakhs Internet
trading accounts registered with the NSE, of which roughly 9.5 lakhs are unique users. It's still a
small proportion of the estimated 3 crore Internet users in the country. As more surfers take to
trading online, analysts expect their number to keep doubling every year until 30-40 per cent of
India's overall trades are done online, as is the case in some mature Internet markets like South
Korea's. The Internet's effect here has more to do with the bandwidth it has created for both
brokers and clients. Banga, director of India bulls offers an example. "Traders from Ajmer use our
online platform. It would otherwise have been prohibitively loss- making to open a branch there."
Thanks to the new channel, volumes are growing 13
faster in the non-metros, where transparency is low in offline trading. "These customers were
made to pay higher charges by small brokers, since they weren't aware of the market rates," says
Vikash Shankar of is one of the reasons why more than 60 per cent of
Sharekhan’s online trading turnover comes from non-metros. Formation of the National Stock
Exchange (NSE): With the liberalization of the Indian economy, it was found inevitable to lift the
Indian stock market trading system on par with the international standards. On the basis of the
recommendations of high-powered Pherwani Committee, the National Stock Exchange was
incorporated in 1992 by Industrial Development Bank of India, Industrial Credit, and Investment
Corporation of India, Industrial Finance Corporation of India, all Insurance Corporations, selected
commercial banks and others. Trading at NSE can be classified under two broad categories: (a)
Wholesale debt market and (b) Capital market. Wholesale debt market operations are similar to
money market operations - institutions and corporate bodies enter into high value transactions in
financial instruments such as government securities, treasury bills, public sector unit bonds,
commercial paper, certificate of deposit, etc. There are two kinds of players in NSE: (a) Trading
members and (b) Participants. Recognized members of NSE are called trading members who
trade on behalf of themselves and their clients. Participants include trading members and large
players like banks who take direct settlement responsibility. Trading at NSE takes place through a
fully automated screen-based trading mechanism, which adopts the principle of an order-driven
market. Trading members can stay at their offices and execute the trading, since they are linked
through a communication network. The prices at which the buyer and seller are willing to transact
will appear on the screen. When the prices match the transaction will be completed and a
confirmation slip will be printed at the office of the trading member. NSE has several advantages
over the traditional trading exchanges. They are as follows: • NSE brings an integrated stock
market trading network across the nation. • Investors can trade at the same price from anywhere
in the country since inter-market operations are streamlined coupled with the countrywide access
to the securities. • Delays in communication, late payments and the malpractices prevailing in the
traditional trading mechanism can be done away with greater operational efficiency and
informational transparency in the stock market operations, with the support of total computerized
network. Unless stock markets provide professionalized service, small investors and foreign
investors will not be interested in capital market operations. And capital market being one of the
major sources of long-term finance for industrial projects, India cannot afford to damage the
capital market path. In this regard NSE gains vital importance in the Indian capital market system.
Why people trust NSE? Unbiased: The National Stock Exchange of India (NSEIL) has been
trusted by the securities markets for its unbiased independence and professionalism. The
function of forecasting has become more meaningful as the information comes from a source,
which is not only reliable but has no vested interest of its own in the market movements. Market
Representation: NSE-MIBID/MIBOR is based on rates polled by NSE from a representative panel
of 31 banks/institutions/primary dealers. 15
Transparent: The reference rate is released to all the market participants simultaneously through
various media, making it transparent with the aspiration of the market. Ensuing transparency
helps the market participants to judge the market mood and the probable rate one is likely to
encounter in the market. This information is useful not only to the banks but also to the issuers
and investors. Reliable: The high level of co-relation between actual deals and the reference rate
gives an indication of its reliability. The bootstrapping technique guards against the possibility of
cartelization and of extreme observations influencing the mean Scientifically Computed: The
methodology of "Polling" with "Bootstrapping" is scientific and the values are generated through a
system that has been extensively tested. The technique involves generating multiple data sets
based on the rates polled with a dynamically determined number of iterations, identification of
outliers, trimming the data set of its extreme values and computation of the mean and its standard
deviation. Elimination of Noise: The trimming procedure is vulnerable to market manipulation of
the rates due to the amount of sampling noise. Excessive trimming may lead to loss of
information whereas no trimming may lead to excessive influence of the extreme values. To
derive a true representative benchmark for the market NSE ensures that trimming at any point
does not exclude more than 20% of the observation for the bid and for the ask rates.
Consistency: The Exchange ensures that everyday the NSE-MIBID/MIBOR along with the
respective standard deviations are disseminated to the market at 0955 (IST) for overnight rate
and at 1215 (IST) for 14 day, 1 month and 3 month rates. Usage: 16
The NSE-MIBID/MIBOR rate is used as a bench mark rate for majority of deals struck for Interest
Rate Swaps, Forward Rate Agreements, Floating Rate Debentures and Term Deposits. Company
Profile Sharekhan Ltd. is one of the leading retail stock broking house of SSKI Group which is
running successfully since 1922 in the country. It is the retail broking arm of the Mumbai-based
SSKI Group, which has over eight decades of experience in the stock broking business.
Sharekhan offers its customers a wide range of equity related services including trade execution
on BSE, NSE, Derivatives, depository services, online trading, investment advice etc. The firm’s
online trading and investment site - – was launched on Feb 8, 2000. The
site gives access to superior content and transaction facility to retail customers across the
country. Known for its jargon-free, investor friendly language and high quality research, the site
has a registered base of over one lakh customers. 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. On April
17, 2002 Sharekhan launched Speed Trade, a net-based executable application that emulates
the broker terminals along with host of other information relevant to the Day Traders. This was for
the first time that a netbased trading 17
station of this caliber was offered to the traders. In the last six months Speed Trade has become
a de facto standard for the Day Trading community over the net. Sharekhan’s ground network
includes over 331 centers in 137 cities in India which provide a host of trading related services.
Sharekhan has always believed in investing in technology to build its business. The company has
used some of the best-known names in the IT industry, like Sun Microsystems, Oracle, Microsoft,
Cambridge Technologies, Nexgenix, Vignette, Verisign Financial Technologies India Ltd, Spider
Software Pvt Ltd. To build its trading engine and content. The Morakhiya family holds a majority
stake in the company. HSBC, Intel & Carlyle are the other investors. 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. Presently 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 Corporate Finance section has a list of very prestigious clients and has many ‘firsts’ to its
credit, in terms of the size of deal, sector tapped etc. The group has placed over US$ 1 billion in
private equity deals. Some of the clients include BPL Cellular Holding, Gujarat Pipavav, Essar,
Hutchison, Planetasia, and Shopper’s Stop. PROFILE OF THE COMPANY : Name of the
company : Sharekhan ltd. Year of Establishment : 1925 Headquarter : ShareKhan SSKI A-206
Phoenix House Phoenix Mills Compound Lower Parel Mumbai - Maharashtra, INDIA- 400013
Nature of Business : Service Provider 18
Services : Depository Services, Online Services and Technical Research. Number of Employees :
Over 3500 Website : Slogan : Your Guide to The Financial Jungle.
ACHIEVEMENTS OF SHAREKHAN: A Rated among the top 20 wired companies along with
Reliance, HUJl, Infosys, etc by ‘Business Today’, January 2004 edition. Awarded ‘Top Domestic
Brokerage House’ four times by Euro money and Asia money. Pioneers of online trading in
India amongst the top 3 online trading websites from India. Most preferred financial destination
amongst online broking customers. Winners of “Best Financial Website” award. India’s most
preferred brokers within 5 years. “Awaaz customers Award 2005”. Future Plans:  2,00,000
plus retail customers being serviced through centralized call centers/ web solutions.  Branches /
Semi branches servicing affluent / aggressive traders through high skill financial advisor.  250
independent investment managers/ franchisee servicing 50,000 highly valued clients.  New
initiatives Portfolio management Services and commodities trading. 19
Vision : To be the best retail brokering Brand in the retail business of stock market. Mission : To
educate and empower the individual investor to make better investment decisions through quality
advice and superior service. Sharekhan is infact- • Among the top 3 branded retail service
providers • No. 1 player in online business • Largest network of branded broking outlets in the
country serving more than 7,00,000 clients. Get everything you need at a Sharekhan outlet! All
you have to do is walk into any of our 640 share shops across 280 cities in India to get a host of
trading related services - our friendly customer service staff will also help you with any accouts
related queries you may have. A Sharekhan outlet offers the following services:  Online BSE and
NSE executions (through BOLT & NEAT terminals)  Free access to investment advice from
Sharekhan's Research team  Sharekhan ValueLine (a monthly publication with reviews of
recommendations, stocks to watch out for etc) 20
 Daily research reports and market review (High Noon & Eagle Eye)  Pre-market Report
(Morning Cuppa)  Daily trading calls based on Technical Analysis  Cool trading products
(Daring Derivatives and Market Strategy)  Personalised Advice  Live Market Information 
Depository Services: Demat & Remat Transactions  Derivatives Trading (Futures and Options) 
Commodities Trading  IPOs & Mutual Funds Distribution  Internet-based Online Trading:
SpeedTrade REASON TO CHOOSE SHAREKHAN LIMITED Experience : SSKI has more than
eight decades of trust and credibility in the Indian stock market. In the Asia Money broker's poll
held recently, SSKI won the 'India's Best Broking House for 2004 ' award. Ever since it launched
Sharekhan as its retail broking division in February 2000, it has been providing institutionallevel
research and broking services to individual investors. Technology : With its online trading account
one can buy and sell shares in an instant from any PC with an internet connection. One can get
access to its powerful online trading tools that will help him take complete control over his
investment in shares. Accessibility : Sharekhan provides ADVICE, EDUCATION, TOOLS AND
EXECUTION services for investors. These services are accessible through its centers across the
country over the internet (through the website as well as over the Voice
Tool. Knowledge : In a business where the right information at the right time can translate into
direct profits, one can get access to a wide range of information on Sharekhan limited’s 21
content-rich portal. One can also get a useful set of knowledge-based tools that will empower him
to take informed decisions. Convenience : One can call its Dial-N-Trade number to get
investment advice and execute his transactions. Sharekhan ltd. have a dedicated call-centre to
provide this service via a Toll Free Number 1800-22-7500 & 1800-22-7050 from anywhere in
India. Customer Service : Sharekhan limited’s customer service team will assist one for any help
that one may require relating to transactions, billing, demat and other queries. Its customer
service can be contacted via a toll-free number, email or live chat on
Investment Advice : Sharekhan has dedicated research teams of more than 30 people for
fundamental and technical researches. Its analysts constantly track the pulse of the market and
provide timely investment advice to its clients in the form of daily research emails, online chat,
printed reports and SMS on their mobile phone. SSKI Group Companies-  SSKI Investor
Services Ltd (Share khan)  S.S. Kantilal Ishwarlal Securities  SSKI Corporate Finance  I
dream Productions  Palm spring estates Pvt Ltd.  Fin flow Investment Pvt Ltd.  I dream
Production UK Pvt Ltd. 22
 Share khan Commodities Pvt Ltd.  Archfund Properties Pvt Ltd. SHAREKHAN LIMITED’S
MANAGEMENT TEAM: Mr. Dinesh Murikya – Owner of the company: The Sharekhan Group of
Companies was brought to life by Mr. Dinesh Murikya. He ventured into stock trading with an
intention to raise capital for his own independent enterprise. However, he recognised the
opportunity offered by the stock market to serve individual investors. Thus India’s first retail-
focused stock- broking house was established in 1925. Under his leadership, Sharekhan became
the first broking house to embrace new technology for faster, more effective and affordable
services to retail investors. Mr. Tarun Shah – Chief Executive Officer (CEO) of the company: A
science graduate from St. Xavier’s College, Mumbai, Mr. Tarun Shah started his professional life
in sales and marketing in a chemicals company. His hands on approach and rigorous experience
in sales led him to higher challenges that the capital markets provided. In 1987, he joined SSKI, a
brokerage firm with over five decades of legendary service to its credit. The capital markets at
that time was undergoing a sea change in its character and SSKI under the vision and guidance
of Shripal Morakhia and 23
the commitment and hardwork of Mr. Shah was able to change and adopt the new business
practices to achieve significant growth in a competitive environment. Accepting new challenges is
a way of life for Mr. Tarun Shah. To ensure that SSKI’s foray into retail stock broking business
through Sharekhan meets with the same success every other SSKI venture has, Mr. Tarun Shah
moved in to spearhead this new effort as CEO of the Sharekhan. Mr. Shankar Vailaya – Director
(Operations) of the company: A graduate in commerce from the University of Mangalore and an
Associate of The Member of the Institute of Chartered Accountants of India, Mr. Shankar Vailaya
heads the operations, finance and legal functions. He is responsible for settlements, depository
operations, risk and compliance and regulatory & other legal commitments and Treasury.
Shankar has managed broking operations through the most turbulent times of the post securities
scam period in 1992 and has managed to steer clear of a flurry of bad papers in the market
during 1994-95. Mr. Jaideep Arora – Director (Products & Technology) of the company: Jaideep
Arora, completed his B.Tech from IIT (Kanpur) and his PGDM from IIM Kolkata. 24
Jaideep worked with ICICI for 8 years where his work spanned a gamut of functions, which
included project finance, equity sales and brokerage, investments etc. During his tenure there he
set up and headed the ‘Institutional Equity Brokerage Desk’ at ICICI Securities & Finance Co. Ltd.
Jaideep joined Sharekhan in June 2000 as Head of Product Development. A year later he took
over the reigns of the online business at Sharekhan. At present Jaideep’s responsibilities include
spearheading Sharekhan’s online foray and overall customer acquisition effort. ➢ Pathik
Gandotra : Head of Research ➢ Rishi Kohli : Vice President of Equity Derivatives ➢ Nikhil Vora :
different types of products and services offered by Sharekhan Ltd. are as follows: • Equity and
derivatives trading • Depository services 25
• Online services • Commodities trading • Dial-n-trade • Portfolio management • Share shops •
Fundamental research • Technical research FINANCIAL PRODUTS AVAILABLE AT
C.E.O. Country Head Cluster Head Regional Head SERVICES: Branch Head Always wanted
help on what the stock market is all about? Been wondering about how all this works? Well, you
don't need to fret any more - the Sharekhan FirstStep is a City Sales Manager designed
especially for those who are brand new program new to investing in shares. All you have to do is
open a Sharekhan FirstStep Dealer account and we'll guide you through the investing process.
Hierarchy of Sharekhan: - Sales Executives ……1........ .…2… ……3……. ……4….. 27 Trainee
SWOT ANALYSIS Strengths: 28
• It is a pioneer in online trading with a turn over of Rs.400crores and more than 800 peoples
working in the organization. • SSKI the parent company of Share Khan has more than eight
decades of trust and credibility in the Indian stock market. In the Asian Money Broker’s poll SSKI
won the “India’s best broking house for 2004” award. • Share Khan provides multi-channel access
to all its customers through a strong online presence with, 250 share shops
in 130 cities and a call-center based Dial-n-Trade facility • Share Khan has dedicated research
teams for fundamental and technical research. Which constantly track the pulse of the market
and provide timely investment advice free of cost to its clients which has a strike rate of 70-80%.
Weakness: • Localized presence due to insufficient investments for country wide expansion. •
Lack of awareness among customers because of non-aggressive promotional strategies (print
media, newspapers, etc). • Lesser emphasis on customer retention. • Focuses more on HNIs
than retail investors which results in meager market-share as compared to close competitors.
Opportunities: • With the booming capital market it can successfully launch new services and
raise its client’s base. • It can easily tap the retail investors with small saving through promotional
channels like print media, electronic media, etc. 29
• As interest on fixed deposits with post office and banks are all time low, more and more small
investors are entering into stock market. • Abolition of long term capital gain tax on shares and
reduction in short term capital gain is making stock market as hot destination for investment
among small investors. • Increasing usage of internet through broadband connectivity may boost
a whole new breed of investors for trading in securities. Threats: • Aggressive promotional
strategies by close competitors may hamper Share Khan’s acceptance by new clients. • Lack of
sufficient branch-offices for speedy delivery of services. • Other players are providing margin
funds to investors on easy terms where as there is no such facility in share khan. • More and
more players are venturing into this domain which can further reduce the earnings of Share Khan.
DISCUSSION ON TRAINING Student’s work profile(role and responsibilities) : I worked there
with SHAREKHAN LTD. with a profile of sales trainee. This profile offers me to understand the
need of customer and provide them the best deal possible with maximization of the profit, both for
the company as well as for the customer. The most important aspect for the role of trainee is
trust. So far fulfillment of the targets one needs to: • Capitalize on the old and loyal clientage
which can be building slowly by advising people in the best possible way. • Generating new leads
through various activities. Generation of leads : Since I was new in the field so I had to start from
scratch and generate new leads to sustain in the market. Cold calling is one of the trusted ways
of getting to the customers without meeting them. Although the rate of conversion remained very
less, for cold calling the quality and accent remains a very important criterion. This activity gives
me mixed result. I often got success and generated many leads through it but it also landed me in
awkward position where the customer were in different mood and made us 31
hear words for which a marketer should be always prepared to hear. Corporate calls always
remained more difficult to crack with respect to retail sector. The corporate were the most difficult
and most temping to get the business from. It took me one one day to crack Hi-tech Gears. At
SHAREKHAN LTD. after getting the product knowledge in the first week at the branch I was also
allotted distributor to work with. In the initial phase I was accompanied by more experienced staff.
After I became known to the market and procedure I started attending calls alone only. After the
third week my performance also improved and I was able to get close to the targets, though it
looked difficult to achieve in the beginning. To get awareness of the every product I attended
diversified calls. This helped me to implement cross selling to get better results. LIMITATIONS: 1.
Cold Calling: • Voice and accent plays a major role. • The right time to call a customer cannot be
decided, as the customer may in a different mood at the time of calling. • Time consuming • Less
success rate 32
2. Corporate: • Time consuming • Contacts with higher authorities play a major role Description of
live experience : I was supposed to use the database provided by the company to make cold calls
or by directly meeting people to get new leads. While making cold calls, we need to have: • Good
Communication Skills (Voice quality is clear and articulate) • Persistent and able to bounce back
from rejection • Good organizational skills. • Ability to project a telephone personality
(Enthusiasm, friendliness) • Flexibility: can adapt to different types of clients and new situations.
Using a good database is very essential. “Eighty percent of our business comes from 20 percent
of our customers" is a frequent statement at any sales convention. There's hardly a sales
executive who is not aware of the 80/20 rule”. While talking to customers, I analyze their needs.
Whether they want to go for investment purpose or insurance or both. Suggest them the plan that
best suits them. If they agree to it then either we send across the agents to close the deal or
close it themselves. 34
Problems faced while selling products: • Customer dissatisfied with the services. • People fear
that Sharekhan Being a Private company and a new entrant may be able to sustain or not. • Past
experience, word of mouth. • Misguidance by agents. • People do not want insurance products. •
Lack of knowledge and less awareness about demat account. 35
• People risk appetite is very low, so they are afraid of mutual fund as well. 36
Share khan Demat Accounts Overview of Demat Account : Demat account allows you to buy, sell
and transact shares without the endless paperwork and delays. It is also safe, secure and
convenient. In India, a demat account, the abbreviation for dematerialized account, is a type of
banking account which dematerializes paper-based physical stock shares. The dematerialized
account is used to avoid holding physical shares: the shares are bought and sold through a stock
broker. This account is popular in India. The Securities and Exchange Board of India (SEBI)
mandates a demat account for share trading above 500 shares. As of April 2006, it became
mandatory that any person holding a demat account should possess a Permanent Account
Number (PAN), and the deadline for submission of PAN details to the depository lapsed on
January 2007. Is a demat account a must? Now a day, practically all trades have to be settled in
dematerialized form. Although the market regulator, the Securities and Exchange Board of India
(SEBI), has allowed trades of up to 500 shares to be settled in physical form, nobody wants
physical shares any more. So a demat account is a must for trading and investing. Why demat?
The demat account reduces brokerage charges, makes pledging/hypothecation of shares easier,
enables quick ownership of securities on settlement resulting in increased liquidity, avoids
confusion in the ownership title of securities, and 37
provides easy receipt of public issue allotments. It also helps you avoid bad deliveries caused by
signature mismatch, postal delays and loss of certificates in transit. Further, it eliminates risks
associated with forgery, counterfeiting and loss due to fire, theft or mutilation. Demat account
holders can also avoid stamp duty (as against 0.5 per cent payable on physical shares), avoid
filling up of transfer deeds, and obtain quick receipt of such benefits as stock splits and bonuses.
What is dematerialization? Dematerialization is the process by which physical certificates of an
investor are converted to an equivalent number of securities in electronic form and credited into
the investor’s account with his/her DP. Why DEMAT a/c likes a BANK a/c? 38
Just as you have to open an a/c with a bank if you want to save your money, make cheque
payments etc, you need to open a demat a/c if you want to buy or sell stocks. So it just like a
bank a/c where actual money replaced by shares. Example : let’s say your portfolio has 100 of
SATYAM, 200 of IBM and 120 of TCS shares. All these will show in you’re a/c. so you don’t have
to possess any physical certificate that you own these shares. They all are held electronically in
you’re a/c. Steps involved in opening a demat account : First an investor has to approach a DP
and fill up an account opening form. The account opening form must be supported by copies of
any one of the approved documents to serve as proof of identity (POI) and proof of address
(POA) as specified by SEBI. Besides, production of PAN card in original at the time of opening of
account has been made mandatory effective from April 01, 2006. All applicants should carry
original documents for verification by an authorized official of the depository participant, under his
signature. Further, the investor has to sign an agreement with DP in a depository prescribed
standard format, which details rights and duties of investor and DP. DP should provide the
investor with a copy of the agreement and schedule of charges for their future reference. The DP
will open the account in the system and give an account number, which is also called BO ID
(Beneficiary Owner Identification number). The DP may revise the charges by giving 30 days
notice in advance. SEBI has rationalized the cost structure for dematerialization by removing
account opening charges, transaction charges for credit of securities, and custody charges vide
circular dated January 28, 2005. Further, SEBI has vide circular dated November 09, 2005
advised that with effect from January 09, 2006, no charges shall be levied by a depository on DP
and consequently, by a DP on a Beneficiary Owner (BO) when a BO transfers all the securities
lying in his account to another branch of the same DP or to another DP of the same depository or
another depository, provided the BO Account/s at 39
transferee DP and at transferor DP are one and the same, i.e. identical in all respects. In case the
BO Account at transferor DP is a joint account, the BO Account at transferee DP should also be a
joint account in the same sequence of ownership. Rights: 1. You can open more than one
depository account in the same name with single DP/ multiple DPs. 2. No minimum balance is
required to be maintained in a depository account. 3. You can give a onetime standing instruction
to your DP to receive all the credits coming to your depository account automatically. DEMAT
Benefits?  A safe and convenient way to hold securities.  immediate transfer of securities. 
No stamp duty on transfer of securities(0.5 % on physical shares).  Elimination of risks
associated with physical certificates such as bad delivery, fake securities , delays , theft etc. 
Reduction in paper work.  Reduction in transaction cost.  No odd lot problem , even one share
can be sold. 40
 Nomination facility.  Holding investment in equity and debt instruments in a single
account.etc. DEMAT Conversion :- 1. Surrender the certificates of physical shares for
dematerialization to your depository participants. 2. Depository participant intimates depository of
the request through the system. 3. Depository participant submit the certificates to the registrar to
the issuer company. 4. Registrar confirms the dematerialization request from depository. 5. After
dematerializing the certificates, registrar updates accounts and informs depository of the
completion of dematerialization. 6. Depository updates its accounts and informs the depository
participant. 7. Depository participant updates demat a/c of the investor. What is a Depository? A
depository is an organisation which holds securities of investors in electronic form at the request
of the investors through a registered Depository Participant. It also provides services related to
transactions in securities. SEBI registered depository’s :- NSDL :- National securities depository
limited CDSL :- Central depository services limited Minimum net worth required for a depository is
100 crores 41
NSDL: Although India had a vibrant capital market, which is more than a century old, the paper-
based settlement of trades caused substantial problems like bad delivery and delayed transfer of
title till recently. The enactment of Depositories Act in August 1996 paved the way for
establishment of NSDL, the first depository in India. This depository promoted by institutions of
national stature responsible for economic development of the country has since established a
national infrastructure of international standard that handles most of the trading and settlement in
dematerialized form in Indian capital market. Using innovative and flexible technology systems,
NSDL works to support the investors and brokers in the capital market of the country. NSDL aims
at ensuring the safety and soundness of Indian marketplaces by developing settlement solutions
that increase efficiency, minimize risk and reduce costs. At NSDL, we play a quiet but central role
in developing products and services that will continue to nurture the growing needs of the
financial services industry. In the depository system, securities are held in depository accounts,
which is more or less similar to holding funds in bank accounts. Transfer of ownership of
securities is done through simple account transfers. This method does away with all the risks and
hassles normally associated with paperwork. Consequently, the cost of transacting in a
depository environment is considerably lower as compared to transacting in certificates.
DEPOSITORY PARTICIPANTS: A Depository Participant (DP) is described as an agent of the
depository. They are the intermediaries between the depository and the investors. The
relationship between the DPs and the depository is governed by an agreement made between
the two under the Depositories Act. In a strictly legal sense, a DP is an entity that is registered as
such with SEBI under the provisions of the SEBI Act. As per the provisions of this Act, a DP can
offer depository-related services only after obtaining a certificate of registration from SEBI. SEBI
(D&P) Regulations, 1996 prescribe a minimum net worth of Rs.50 lakh for stockbrokers, R&T
agents and non-banking finance companies (NBFC), for granting them a certificate of registration
to act as DPs. If a stockbroker seeks to act as a DP in more than one depository, he should
comply with the specified net worth criterion separately for each such depository. No minimum
net worth criterion has been prescribed for 42
other categories of DPs. However, depositories can fix a higher net worth criterion for their DPs.
NSDL requires a minimum net worth of Rs.100 lakh to be eligible to become a DP as against
Rs.50 lakh prescribed by SEBI (D&P) Regulations. Instruments : The changes in the regulatory
framework of the capital market and fiscal policies have also resulted in newer kinds of financial
instruments (securities) being introduced in the market. Also, a lot of financial innovation by
companies who are now permitted to undertake treasury operations has resulted in newer kinds
of instruments - all of which can be traded – being introduced. The variations in all these
instruments depend on the tenure, the nature of security, the interest rate, the collateral security
offered and the trading features, etc • Debentures • Bonds • Preference Share • Equity Shares •
Government securities • Capital Market Processes • Initial Public Offering (IPO) • Private
Placement • Preferential Offer/Rights Issue • Private Placement Benefits of Depository System: In
the depository system, the ownership and transfer of securities takes place 43
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. · 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, 44
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 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. 45
· Elimination of problems related to change of address of investor, transmission, etc In case of
change of address or transmission of demat 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. 46
TYPES OF ACCOUNT IN SHAREKHAN LIMITED : Sharekhan offers two types of trading
account for its clients : ➢ Classic Account (which include a feature known as Fast Trade
Advanced Classic Account for the online users) and ➢ Trade Tiger Account CLASSIC ACCOUNT
: This is a User Friendly Product which allows the client to trade through website and is suitable for the retail investor who is risk-averse and hence prefers to
invest in stocks or who does not trade too frequently. This account allow investors to buy and sell
stocks online along with the following features like multiple watch lists, Integrated Banking, Demat
and digital contracts, Real-time portfolio tracking with price alerts and Instant credit & transfer.
This account comes with the following features: a. Online trading account for investing in Equities
and Derivatives 47
b. Free trading through Phone (Dial-n-Trade): I.Two dedicated numbers(1800-22-7500 and
39707500) for placing the orders using cell phones or landline phones II. Automatic funds transfer
with phone banking facilities (for Citibank and HDFC bank customers) III. Simple and Secure
Interactive Voice Response based system for authentication IV. get the trusted, professional
advice of Sharekhan limited’s Tele Brokers V. After hours order placement facility between 8.00
am and 9.30 am c. Integration of: Online Trading + Demat Account + Cash to Margin. 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. TRADE TIGER
ACCOUNT: This is an internet-based software application, which enables one to buy and sell in
an instant. It is ideal for active traders and jobbers who transact frequently during day’s session to
capitalize on intra-day price movement. This account comes with the following features: a. Instant
order Execution and Confirmation. b. Single screen trading terminal for NSE Cash, NSE F&O &
BSE. 48
c. Technical Studies. d. Multiple Charting. e. Real-time streaming quotes, tic-by-tic charts. f.
Market summary (Cost traded scrip, highest value etc.) g. Hot keys similar to broker’s terminal. h.
Alerts and reminders. i. Back-up facility to place trades on Direct Phone lines. j. Live market
debts. CHARGE STRUCTURE : Fee structure for General Individual: Charges Classic Account
Trade Tiger Account Account Opening Nil Nil Brokerage Intra – day – 0.10% Intra – day – 0.10%
Delivery – 0.50% Delivery – 0.50% BROKARAGE: 49
It is the charge taken by the guiding company for helping you in buying and selling your shares.
There are different charges for Intraday and Delivery. INTRADAY: The day to day buying and
selling or daily transactions are called as Intraday. You have to buy or sell the shares within the
day only. DELIVERY: It is the three day transaction. The day you buy the share and the next two
days after that day is called as Delivery. It includes thre days. If you are buying any share then
you have to sell it within three days including the buying day. T+2 = Today + 2 days Depository
Charges: Account Opening Charges Nil Annual Maintenance Charges 1st Year Nil 2nd Year
415/- 50
PREPAID ACCOUNT: There are three types of Prepaid account are provided to the customers
accordingly they make transactions more and more. All Prepaid accounts are valid for One year
only. Scheme of Prepaid Brokerage : Prepaid Brokerage Cash Futures and Options (p.a) Futures
Options 2000/- Intra-day – 0.07% 0.07 2% or Rs.90, (Single Side) whichever is Delivery – 0.40%
higher 6000/- Intra-day – 0.05% 0.05 1.5% or Rs.75, Delivery – 0.25% whichever is higher
18000/- Intra-day – 0.04% 0.04 1% or Rs.50, Delivery – 0.20% whichever is higher EXPOSURE:
Sharekhan also helps their customers by providing them a Four time Exposure. Example :- If a
customer invests Rs. 20000, then he will get a exposure of 4 times of Rs. 20000 that means Rs.
20000 * 4 = Rs. 100000. But only for Five days, within 5 days the customer have to pay back the
amount otherwisw they will sell your shares. But yes, they will sell the loss amking shares first. If
you make any frod , then also you may face the sane problem. 51
But Exposure always helps the customer to invest more and more in profit making scripts. It is
like an Overdraft which you have to return within 5 days. HOW TO OPEN AN ACCOUNT WITH
SHARE KHAN LIMITED ? For online trading with Sharekhan Ltd., investor has to open an
account. Following are the ways to open an account with Sharekhan Ltd.:  One need to call
them at phone number provided below and asks that he want to open an account with them. a.
One can call on the Toll Free Number: 1-800-22-7500 to speak to a Customer Service executive
b. Or If one stays in Mumbai, he can call on 022-66621111  One can visit any one of Sharekhan
Limited’s nearest branches. Sharekhan has a huge network all over India (640 centers in 280
cities).  One can also log on to “” link to find out the nearest
branch.  One can send them an email at to know about their products and
services.  One can also visit the site and click on the option “Open an
Account” to fill a small query form which will ask the individual to give details regarding his name,
city he lives in, his email address, phone number, pin code of the city, his nearest Sharekhan Ltd.
shop and his preferences regarding the type of account he wants. These information are
compiled in the headquarter of the company that is in Mumbai from where it is distributed through
out the country’s branches in the form of leads on the basis of cities and nearest share shops.
After that the executives of the respective branches contact the prospective clients over phone or
through email and give them information regarding the various types of accounts and the
documents they need to open an account and then fix appointment with the 52
prospective clients to give them demonstration and making them undergo the formalities to open
the account. After that the forms that has collected from the clients, is scrutinized in the branch
and then it is sent to Mumbai for further processing where after a few days the clients’ account
are generated and activated. After the accounts are activated, a Welcome Kit is dispatched from
Mumbai to the clients’ address mentioned in the documents provided by them. As soon as the
clients receive the Welcome Kit, which contains the clients’ Trading ID and Trading Password,
they can start trading and investing in shares. Apart from two passport size photographs, one
needs to provide with the following documents in order to open an account with Sharekhan
Limited.:  Photocopy of the clients’ PAN Card which should be duly attached  Photo copy of
any of the following documents duly attached which will serve as correspondence address proof:
a. Passport (valid) b. Voter’s ID Card c. Ration Card d. Driving License (valid) e. Electricity Bill
(should be latest and should be in the name of the client) f. Telephone Bill (should be latest and
should be in the name of the client) g. Flat Maintenance Bill (should be latest and should be in the
name of the client) h. Insurance Policy (should be latest and should be in the name of the client) i.
Lease or Rent Agreement. j. Saving Bank Statement** (should be latest)  Two cheques drawn
in favour of Sharkhan Limited, one for the Account 53
Opening Fees and the other for the Margin Money (the minimum margin money is Rs. 5000). ** A
cancelled cheque should be given by the client if he provides Saving Bank Statement as a proof
for correspondence address. NOTE: Only Saving Bank Account cheques are accepted for the
purpose of Opening an account. Generally the process of opening an account follows the
Sharekhan Demat Account Services : Sharekhan – Transacting and investing simplified. Get
ready to change the way you transact and invest in financial products and services. Whether you
wish to transact in equity, equity & commodity derivatives, IPO’s offshore investments or prefer to
invest in mutual funds, life & general insurance products or avail money transfer and money
changing services, you can do it all through Angel. Simply open a Angel account and enjoy the
convenience of handling all your key financial transactions through this one window. Benefits of
having an Sharekhan account: • It’s cost effective You pay comparatively lower transaction fees.
As an Introductory offer, we invite you to pay a flat fee of just Rs. 750/- and transact through
Sharekhan. • Its offers single – Through Sharekhan’s associates, you can transact in equity,
equity and commodities derivatives, offshore investments mutual funds, IPO’s life insurance,
general insurance, money transfer, money changing and credit cards, amongst others. • Its
convenient You can access Sharekhan’s services through 55
•The internet •Transaction kiosks •The phone (call & transact) •Our all – India network of
associates on an assisted trade. Its Safe your account is safeguarded with a unique security
number that changes every 32 seconds. This number works as a dynamics password to keep
your account extra safe. It provide you value- added services at , you get •
Reliable research, including views of external experts with an enviable track record • Live news
updates from Reuters and Dow Jones • CEO’s / expert views on the economy and financial
markets • Tools that help you plan your investments, tax, retirement, etc. in the personal finance
section • Risk Analyzer for analysis of your risk profile • Asset allocators to build an appropriate
investment portfolio • Innovative use of technology for facilitating The benefits:- Benefits of Demat
Account • A safe and convenient way to hold securities; • Immediate transfer of securities; 56
• No stamp duty on transfer of securities; • Elimination of risks associated with physical
certificates such as bad delivery, fake securities, delays, thefts etc.; • Reduction in paperwork
involved in transfer of securities; • Reduction in transaction cost; • No odd lot problem, even one
share can be sold; • Nomination facility; • Change in address recorded with DP gets registered
with all companies in which investor holds securities electronically eliminating the need to
correspond with each of them separately; • Transmission of securities is done by DP eliminating
Correspondence with companies; • Automatic credit into demat account of shares, arising out of
bonus/split/consolidation/merger etc. • Holding investments in equity and debt instruments in a
single account. Benefit For Investors Demat account has become a necessity for all categories of
investors for the following reasons/ benefits: f SEBI has made it compulsory for trades in almost
all scrip’s to be settled in Demat mode. Although, trades up to 500 shares can be settled in
physical form, physical settlement is virtually not taking place for the apprehension of bad delivery
on account of mismatch of signatures, forgery of signatures, fake certificates, etc. 57
It is a safe and convenient way to hold securities compared to holding securities in physical
form.. No stamp duty is levied on transfer of securities held in Demat form. N Instantaneous
transfer of securities enhances liquidity. I It eliminates delays, thefts, interceptions and
subsequent misuse of certificates. I Change of name, address, registration of power of attorney,
deletion of deceased's name, etc. - can be affected across companies by one single instruction
to the DP. Each share is a market lot for the purpose of transactions - so no odd lot problem.
Any number of securities can be transferred/delivered with one delivery order. Therefore,
paperwork and signing of multiple transfer forms is done away with. It facilitates taking advances
against securities on low margin/low interest. Points To Remember 1. You may choose your DP
based on your evaluation of their reputation, service standards, charges, other conveniences, etc.
2. Open depository account with the same holding pattern as there on existing physical securities.
You will need to open separate accounts for every different combination of holding pattern. Eg.: If
100 securities of company ABC & 200 58
securities of company PQR are registered in the name of X as first holder & Y as second holder,
one account in name of X as first holder & Y as second holder is sufficient. Whereas, if 100
securities of company ABC are registered in the name of X as first holder & Y as second holder &
200 securities of company PQR are registered in the name of Y as first holder & X as second
holder, you will need to open two accounts, one in the name of X as first holder & Y as second
holder and the second in the name of Y as first holder and X as second holder. 3. Account
opening procedure should typically take 2-5 days. 4. In case of holdings of a partnership firm, the
account should be opened in the name of the partner(s). 5. In case of holdings of a HUF, the
account should be opened in the name of the Karta. 6. In case of a minor, the depository account
should be opened in the name of the minor and the guardian’s name should be mentioned. The
guardian will sign as signatory on behalf of the minor. For selling the securities of the minor, a
court order should be obtained. 7. In case of any difficulties, contact your DP. 8. Only securities
admitted by NSDL can be dematerialized. The list is available with your DP. 9. Only securities
registered in the name of the account holder can be dematerialized. 59
10.Dematerialization is normally completed within 15 days after the share certificates have
reached the issuer/their R&T Agent. Thus it may take you a month from the date you hand over
shares, to receive demat credit. 11.Dematerialization would be done only when the issuer / their
R&T Agent is satisfied of genuineness of securities & ownership status 12. All the joint holders
should sign the DRF. 13.The pattern of holding in the DRF should match the pattern of holding on
the share certificate & the pattern in which account is opened. 14.Demat requests with name(s)
not matching exactly with the name(s) appearing on the certificates merely on account of initials
not being spelt out fully or put after or prior to the surname, would be processed, provided the
signature(s) of the client(s) on the DRF tallies with the specimen signature(s) available with the
issuer/ their R & T agent. 15.If the signature in the DRF does not match with the signature
available with the issuer/ their R & T agent, the issuer/ their R & T agent may at the time of demat
confirmation, ask for additional documentation (like bank attestation/ notarization, etc.) to prove
that the certificate belongs to the person who forwarded the DRF. 16.In case there is any problem
in processing the DRF, contact your DP and if he cannot resolve the problem you may contact
NSDL. 60
RESEARCH SECTION IN SHAREKHAN LIMITED : Sharekhan Limited has its own in-house
Research Organisation which is known as Valueline. It comprises a team of experts who
constantly keep an eye on the share market and do research on the various aspects of the share
market. Generally the research is based on the Fundamentals and Technical analysis of different
companies and also taking into account various factors relating to the economy. Sharekhan
Limited’s research on the volatile market has been found accurate most of the time. Sharekhan's
trading calls in the month of November 2007 has given 89% strike rate. Out of 37 trading calls
given by Sharekhan in the month of November 2007, 33 hit the profit target. These exclusive
trading picks come only to Sharekhan Online Trading Customer and are based on in-depth
technical analysis. As a customer of Sharekhan Limited, one receives daily 5-6 Research Reports
on their emails which they can use as tips for investing in the market. These reports are named
as Pre-Market Report, Eagle Eye, High Noon, Investors Eye, Daring Derivatives and Post-Market
Report. Apart from these, Sharekhan Limited issues a monthly subscription by the name of
Valueline which is easily available in the market. 61
Buying and Selling of Dematerialization INTRODUCTION: The procedure for buying and selling
dematerialized securities is similar to the procedure for buying and selling physical securities. The
difference lies in the process of delivery (in case of sale) and receipt (in case of purchase) of
securities. In case of purchase:- • The broker will receive the securities in his account on the
payout day. • The broker will give instruction to its DP to debit his account and credit investor’s
account. • Investor will give ‘Receipt Instruction to DP for receiving credit by filling appropriate
form. However one can give standing instruction for credit in to ones accounts that will obviate the
need of giving Receipt Instruction every time. In case of sale:- 62
The investor will give delivery instruction to DP to debit his account and credit the broker’s
account. Such instruction should reach the DP’s office at least 24 hours before the pay-in as
otherwise DP will accept the instruction only at the investor’s risk. Rights 1. Dematerialized
securities can be traded on those stock exchanges connected to NSDL. At present, NSE, BSE,
CSE, DSE, LSE, BGSE, OTCEI, MSE, ISE & ASE are connected to NSDL. At these stock
exchanges, two segments would be available to trade in dematerialized securities : o Unified
(erstwhile physical) segment - In this segment delivery obligation can be met by delivering
dematerialized or physical securities at the option of the seller. However, for a select list of
securities prescribed by SEBI, securities cannot be delivered in physical form in the unified
segment, of stock exchanges connected to NSDL. This list presently covers 160 securities. This
list has been expanded to cover a total of 200 securities with effect from January 17, 2000. Over
a period, this list would cover all actively traded securities. o Exclusive demat segment - In this
segment delivery obligation can be met by delivering dematerialized securities only. Physical
securities cannot be delivered in the exclusive demat segment. Procedure Trading in
dematerialized securities is done through your broker just like trading in physical securities. After
your broker executes the trade, your DP will help to deliver shares to your broker (in case you
sell) on the basis of valid instruction 63
given by you to your DP and receive shares from your broker (in case you buy) on basis of valid
instruction given by your broker to his DP. Buy dematerialized securities 1. You purchase
securities in any of the stock exchanges connected to NSDL through a broker of your choice and
make payment to your broker. Make sure you tell your broker you want only demat shares. 2.
Broker arranges payment to clearing corporation/ clearing house of the stock exchange. 3. Broker
receives credit in his clearing account with his DP on the pay-out day. He can immediately
transfer these securities to your depository account, provided your account is already active. 4.
Broker gives instructions to his DP to debit his clearing account and credit your depository
account. 5. You give instruction to your DP for receiving credit in your depository account. If you
have given standing instruction to receive credits, no separate instruction for receiving credit will
be required. 6. If the instructions match, your account with your DP is credited. Sell
dematerialized securities 1. You sell your dematerialized securities in any of the stock exchanges
linked to NSDL through a broker of your choice. 64
2. You give instruction to your DP for debit of your depository account and credit of your brokers
clearing member account at least 24 hours i.e. one working day prior to the pay-in date or before
the deadline prescribed by your DP, so that your brokers clearing account is credited at the time
arranged with him. 3. On the pay-in day, your broker gives instruction to his DP for delivery to
clearing corporation/clearing house of the relevant stock exchange. 4. The broker receives
payment from the clearing corporation / clearing house. 5. You receive payment from the broker
for the sale in the same manner you would receive payment for a sale in the physical mode.
Points To Remember 1. Trading continues to be through brokers. In case of any problem in
execution of trade, contact your broker and if he fails to resolve the problem you may contact the
stock exchange. 2. When you buy securities through the stock exchange, your brokers clearing
account is credited to the extent of the securities purchased, on receipt of instruction from
clearing corporation/ clearing house of the stock exchange. Your depository account is credited
only when your broker gives a delivery instruction to his DP. Securities are not directly credited to
your account by the clearing corporation/ clearing house of the stock exchange. In case your
broker does not give a delivery instruction, contact him or concerned stock exchange or SEBI. If
your depository account is not credited, in spite of your broker giving valid instruction to his DP,
contact the DP and if he fails to resolve the same you may contact NSDL. 65
3. When you sell securities, you have to give a delivery instruction to your DP to transfer the
securities to your brokers clearing account. They are not automatically debited from your account
by NSDL or by the clearing corporation/ clearing house of the stock exchange. In case the DP
defaults in executing your instruction, the DP is liable to compensate you for the loss incurred,
provided your instruction was in order and has been submitted to the DP at least 24 hours i.e.
one working day prior to the pay-in date or before the deadline prescribed by DP. In case the DP
fails to resolve your problem, you can contact NSDL. 66
Need for the Study The need of the study arises because of the reason that a trainee must
understand the company, its achievements and tasks, products and services and also to collect
information about its competitors, its products and services offered. So that, after understanding
and collecting information about the organization and its competitors, a trainee will be able to
work well for the organization. From the study we have learned very much, about the company as
well as the strategy of the customers, which helps us a lot at our working days. 67
Competitors HDFC BANK is one of the leading Depository Participant (DP) in the country with
over 8 Lac demat accounts. HDFC Bank Demat services offers you a secure and convenient way
to keep track of your securities and investments, over a period of time, without the hassle of
handling physical documents that get mutilated or lost in transit. HDFC BANK is Depository
participant both with National Securities Depositories Limited (NSDL) and Central Depository
Services Limited (CDSL). Features & Benefits : As opposed to the earlier form of dealing in
physical certificates with delays in transaction, holding and trading in Demat form has the
following benefits: Settlement of Securities traded on the exchanges as well as off market
transactions. Shorter settlements thereby enhancing liquidity. 68
Pledging of Securities. Electronic credit in public issue. Auto Credit of Rights / Bonus / Public
Issues /Dividend credit through ECS. Auto Credit of Public Issue refunds to the bank account. No
stamp duty on transfer of securities held in demat form. No concept of Market Lots. Change of
address, Signature, Dividend Mandate, registration of power of attorney, transmission etc. can be
effected across companies held in demat form by a single instruction to the Depository Participant
(DP). Holding / Transaction details through Internet / email. In case you need any more
information or have any queries , feedback & complaints , you may please mail us at Secured & easy transaction processing 69
HDFC Bank Ltd provides convenient facility called 'SPEED-e' (Internet based transaction)
whereby account holder can submit delivery instructions electronically through SPEED-e website
( SPEED-e offers secured means of transaction processing eliminating
preparation of instruction slips and submission of the same across the counter to the depository
participant. The 'IDEAS' facility helps in viewing the current transactions and balances (holdings)
of Demat account on Internet on real time basis. Disclaimer: Whatever have been stated above
are in the good interest of the Investor / Demat Applicants / holders to provide a brief picture
about the depository system. You are requested go through the guidelines of the depositories
before taking any further action. For detailed guidelines, you are requested to approach your
nearest HDFC Bank branch. HDFC Bank will not be responsible for any misunderstanding / act
based on the above. Also HDFC Bank might ask for additional information / documentation than
what has been stated above to process your application / instruction. ICICI DIRECT ICICI Direct
(or is stock trading company of ICICI Bank. Along with stock trading and trading
in derivatives in BSE and NSE, it also provides facility to invest in IPOs, Mutual Funds and
Bonds. 70
Trading is available in BSE and NSE. ICICI Direct offers 3 different online trading platforms to its
customers. Type of Account: 1. Share Trading Account: Share Trading Account by ICICI Direct is
primarily for buying and selling of stocks in BSE and NSE. This account allows Cash Trading,
Margin Trading, Margin PLUS Trading, Spot Trading, Buy Today Sell Tomorrow and Call and
Trade on phone. website is the primary trading platform for this trading account.
They also provide installable application terminal based application for high volume trader. 2.
Wise Investment Account: 1. Online Mutual funds investment allows investor to invest on-line in
around 19 Mutual Fund companies. ICICI Direct offers various options while investing in Mutual
Funds like Purchase Mutual Fund, Redemption and switch between different schemes,
Systematic Investment plans, Systematic withdrawal plan and transferring existing Mutual Funds
in to electronic mode. This account also provides facility to invest in Government of India Bonds
and ICICI Bank Tax Saving Bonds. 2. Active Trader account gives more personalized investment
options to the investors. It allows investor to use online and offline stock trading. It also provides
with independent market expertise and support through a dedicated Relationship Manager from
Active Trader also provides commodity trading. Brokerage and fees Account opening fees : Rs
750/- (One time nonrefundable) Brokerage: brokerage varies on volume of trade
and inclusive of demat transaction charges, service taxes and courier charges for contract notes.
It ranges from 0.1% to 0.15% for margin trades, 0.2% to 0.425% for squared off trades and 0.4%
to 0.85% on delivery based trades. Disadvantages of ICICI Direct: 1. Getting access to website during market session can be frustrating. 5paisa is the trade
name of India Infoline Securities Private Limited (5paisa), member of National Stock Exchange
and The Stock Exchange, Mumbai. 5paisa is a wholly owned subsidiary of India Infoline Ltd,
India’s leading and most popular 72
finance and investment portal. 5paisa has emerged as one of leading players in e- broking space
in India. The company’s brokerage is one of the lowest in the industry. It also provides the
research on commodities. Investors can benefit from its analysis and advice available at the click
of the mouse. For those who prefer to trade the traditional way, India Infoline investor points are
available across the country. India Infoline was founded by a group of professionals in 1995. Its
institutional investors include Intel Capital, one of the leading technology companies in the world
promoted by the U K government, ICICI, TDA and Reeshanar. The company offers a slew of
products such as stock and derivatives broking, commodities broking and mutual funds. India
Bulls Indiabulls is India's leading retail financial services company with 77 locations spread
across 64 cities. Its size and strong balance sheet allows providing varied products and services
at very attractive prices, our over 750 Client Relationship Managers are dedicated to serving your
unique needs. Indiabulls is lead by a highly regarded management team that has invested crores
of rupees into a world class Infrastructure that provides real-time service & 24/7 access to all
information and products. The Indiabulls Professional Network offers real-time prices, detailed
data and news, intelligent analytics, and electronic trading capabilities, right at your finger-tips.
This powerful technology is complemented by our knowledgeable and customer focused
Relationship Managers. Indiabulls offers a full range of financial services and products ranging
from Equities, Derivatives, Demat services and Insurance to enhance wealth. 73
Kotak Securities Limited ( Kotak Securities Ltd., a strategic joint venture
between Kotak Mahindra Bank and Goldman Sachs (holding 25% - one of the world’s leading
investment banks and brokerage firms) is India’s leading stock broking house with a market share
of 5 - 6 %. Kotak Securities Ltd. has been the largest in IPO distribution - It was ranked number
One in 2003-04 as Book Running Lead Managers in public equity offerings by PRIME Database.
It has also won the Best Equity House Award from Finance Asia - April 2004. The company has a
full fledged research division involved in Macro Economic studies, sectoral research and
company specific equity research combined with a strong and well networked sales force which
helps deliver current and up to date market information and news. Kotak Securities Ltd is also a
depository participant with National Securities Depository Limited (NSDL) and Central Depository
Services Limited (CDSL) providing dual benefit services wherein the investors can use the
brokerage services of the company for executing the transactions and the depository services for
settling them. The company has 42 branches servicing around 1, 00,000 customers. the online division of Kotak Securities Limited offers Internet Broking services
and also online IPO and Mutual Fund Investments. Kotak Securities Limited manages assets
over 1700 crores under Portfolio Management Services (PMS) which is mainly to the high end of
the market. Kotak Securities Limited has newly launched “Kotak Infinity” as a distinct
discretionary Portfolio Management Service which looks into the middle end of the market. 74
Motilal Oswal Securities Ltd. (MOSt): One of the top-3 stock-broking houses in India, with a
dominant position in both institutional and retail broking, MOSt is amongst the best-capitalized
firms in the broking industry in terms of net worth. MOSt was founded in 1987 as a small sub-
broking unit, with just two people running the show. Focus on customer-first-attitude, ethical and
transparent business practices, respect for professionalism, research-based value investing and
implementation of cutting-edge technology have enabled it to blossom into a thousand-member
team. The institutional business unit has relationships with several leading foreign institutional
investors (FIIs) in the US, UK, Hong Kong and Singapore. In a recent media report MOSt was
rated as one of the top-10 brokers in terms of business transacted for FIIs. The retail business
unit provides equity investment solutions to more than 50,000 investors through 270 outlets
spanning 150 cities and 22 states. MOSt provides Advice-Based Broking, Portfolio Management
Services (PMS), E-Broking Services, Depository Services, Commodities Trading, and IPO and
Mutual Fund Investment Advisory Services. Its Value PMS Scheme gave a 160% post-tax return
for the year ended March 2004. With value investing at the core of its investment philosophy, a
strong research team consistently provides high-performance ideas. MOSt’s equity research has
been consistently ranked very highly in surveys conducted by leading international publications
like Asiamoney and Institutional Investor. In Asia Money Brokers Poll 2003 MOSt has been rated
as the Best Domestic Research House - Mega Funds ,while in 2000 and 2002 it has been rated
as the Best Domestic Equity Research House and Second best amongst Indian Brokerage firms
respectively. 75
IDBI Capital Market Services Ltd. IDBI Capital is a leading Indian securities firm offering a
complete suite of products and services to individual, institutional and corporate clients. IDBI
Capital Market Services Ltd. (IDBI Capital), a wholly owned subsidiary of Industrial Development
Bank of India (IDBI), is a leading Indian securities firm, offering a complete suite of products and
services to individual, institutional and corporate clients. Our services include fixed income
trading, equities brokerage, debt and equity derivatives, research, private placements, depository
services, portfolio management and distribution of financial products. Over the last five years, we
have emerged as a leading player in each of these businesses.  March 1995 - Commenced
Equity Broking on NSE CM segment  July 1995 - Built agent Distribution Network across the
country  October 1996 - Commenced Debt Broking on NSE WDM segment  December 1996 -
Started operations as a Depository Participant  1996 - Started to act as Arranger to Privately
Placed Bond issues  April 1998 - Commenced operations as a Portfolio Manager  February
1999 - Acquired membership of BSE, Mumbai  November 1999 - Started operations as a
Primary Dealer  June 2000 - Acquired Derivatives memberships of BSE and NSE  March 2002
- Achieved an outright secondary market turnover exceeding Rs100,000 cr in G-Secs  October
2002- Commenced trading in Interest Rate Swaps 76
Refco - Sify Securities India Pvt. Ltd Refco-Sify Securities India Pvt. Ltd., headquartered in
Mumbai, is a joint venture between the Refco Group Holding Ltd., USA; and Satyam Infoway
Limited (NASDAQ: SIFY) to offer online and offline equity and derivatives trading for retail
customers as well as execution and clearing services for financial institutions. Refco also
provides clients with prime brokerage services, fixed income, equities, foreign exchange, OTC
derivatives and asset management. Refco is a leader in providing clients with the latest
technological advances in products and services. Its proprietary systems and global infrastructure
provide the flexibility to meet all client requirements. Client service is what sets Refco apart from
its competitors. Refco understands the unique business requirements of each of its clients and
tailors its products and services to meet those requirements. UTI SECURITIES LTD.: (UTISEL)
UTI Securities Ltd was incorporated on June 24, 1994 by Unit Trust of India as a 100% subsidiary
and on the repealing of the UTI Act, the capital is now held by the Administrator of the Specified
Undertaking of Unit Trust of India (ASUUTI). UTI Securities has been working as an independent
professional entity for providing financial intermediary and advisory services to its corporate and
retail clientele. The Company has presence in major cities with 20 branches and 50 franchisees
to service a wide range of clients. The company has also invested in the joint-venture company
with Standard Chartered Bank viz. Standard Chartered UTI Securities (P) Ltd. that is engaged in
primary dealership and Government securities. The company is very soon going to start
Commodity Trading through its subsidiary, USEc Commodities Ltd, which provides facility of
commodity trading on NCDEX and MCX. 77
KARVY Karvy is a premier integrated financial services provider, and ranked among the top five
in the country in all its business segments, services over 16 million individual investors in various
capacities, and provides investor services to over 300 corporate, comprising the who is who of
Corporate India. Karvy has a professional management team and ranks among the best in
technology, operations and research of various industrial segments. History of Karvy :- The birth
of Karvy was on a modest scale in 1981. It began with the vision and enterprise of a small group
of practicing Chartered Accountants who founded the flagship company, Karvy Consultants
Limited. They started with consulting and financial accounting automation and carved inroads into
the field of registry and share accounting by 1985. Since then, karvy utilized its experience and
superlative expertise to go from strength to strength, to better their services, to innovate, diversify
and in the process, evolved as one of India’s premier integrated financial service enterprise.
Religare Securities Limited (RSL) Religare Securities Limited (RSL), a 100% subsidiary of
Religare nterprises Limited is a leading equity and securities firm in India. The company urrently
handles sizeable volumes traded on NSE and in the realm of online trading and investments; it
currently holds a reasonable share of the market. The major activities and offerings of the
company today are Equity Broking, Depository Participant Services, Portfolio Management
Services, International Advisory Fund Management Services, Institutional Broking and Research
Services. To broaden the gamut of services offered to its investors, the company offers an online
investment portal armed with a host of revolutionary 78
features. • RSL is a member of the National Stock Exchange of India, Bombay Stock Exchange of
India, Depository Participant with National Securities Depository Limited and Central Depository
Services (I) Limited, and is a SEBI approved Portfolio Manager. • Religare has been constantly
innovating in terms of product and services and to offer such incisive services to specific user
segments it has also started the NRI, FII, HNI and Corporate Servicing groups. These groups
take all the portfolio investment decisions depending upon a client’s risk / return parameter. •
Religare has a very credible Research and Analysis division, which not only caters to the need of
our Institutional clientele, but also gives their valuable inputs to investment dealers. 79
COM NIL 750/-(waive 20550/-(20,000 750/- 420/-(fresher) 700/- A/C off if trading is as margin)
(EXISTINGR And 250/- OPENING more than Rs. ELATIONSH (Traders) CHARGE 1 lakh) IP) S
OR 799/- FREE (1ST FREE FOR 30 p.m. 500 p.a. 250/-P.A. NO AMC YEAR) 1ST YEAR
ONWARDS S ONWARDS 2(CLASSIC & Web based 5type(1.HMR Web based 2(TRADER Web
A/C) 80
/- N.A. 1000/- N.A. WARE p.m. commitment of CHARGE (NEGOTIABL brokerage S E ON
VOLUME) DAIL-N- UNLIMITED On 21st 15/- TO 25/- RM Local call RM TRADE call Rs 20/-
minimum of RS. 17/- TRANSAC- (THROUGH IN 25/- ON 25 whichever Rs. 20/- per PER TION
4 to 6 4 TIMES MINIMU 4 TO 6.7 4 TIMES 4 TO 6 TIMES 4 times times(online) ONWARDS M
TIMES 10 MARGIN times(Offline) EXPO- SURE 5000/-,1,00,00 500 MINIMU Nil 5000/- 0/-or
5000/- 5000/- BLOCKED M 5,00,000/- BY MARGIN (according to THE account) SYSTEM
Volume Nil Nil Yes, according Nil Rs 1000/- NIL require- to Commitment as ment product
brokerage BROKE- .1% .1%to.15% .06% .15% .05% .1% RAGE (INTRADAY) (INTRA-
to .85% (DELIVERY) .5% (DELIV-ERY) .5% (DELIVERY (DELIV- (DELIVER ERY) Y) (excluding
taxes) 83
OBJECTIVE The primary objective is:  Checking the awareness level of online share trading. 
Evaluation of preferred investments in various mode and industry.  To collect the real time
information about preference level of customers using Demat account and their inclination
towards various other brokerage firms e.g. India bulls, Angel broking, India infoline, Religare,
Alan- kit, Unicon.  To expand the market penetration of Sharekhan ltd.  To provide pricing
strategy of competitors to fight cut throat competition.  Study of influencing factors affecting the
purchase decision.  Analyzing the preferred broking house.  Checking the satisfaction level of
the customers towards preferred broking house. The secondary objective is:  To make clients
and let them know about the different services offered by the SHAREKHAN.  To understand the
problem faced by customers and finding way to solve the queries. 84
RESEARCH METHODOLOGY INTRODUCTION Research Methodology refers to search of
knowledge .one can also define research methodology as a scientific and systematic search for
required information on a specific topic. The word research methodology comes from the word
“advance learner ‘s dictionary meaning of research as a careful investigation or inquiry especially
through research for new facts in my branch of knowledge for example some author have define
research methodology as systematized effort to gain new knowledge. Methodology of the project
starts with –  In the first phase we are trained and they teach us different things about market. 
After that they conduct a mock viva, in this they ask about the real life problem faced by the
customers.  They provide leads and after that we make calls.  Then after that we have to
provide details of product and convince them.  Then we have to visit them and get the formed
filled from them.  Maintaining dairy of clients and contacting them at regular basis.  Get the
knowledge of technical as well as fundamental methods.  Observe the patterns of the scripts.
Exploratory Research: Exploratory research is a type of research conducted because a problem
has not been clearly defined. Exploratory research helps determine the best research design,
data collection method and selection of subjects. Given its fundamental nature, exploratory
research often concludes that a perceived problem does not actually exist. Exploratory research
often relies on secondary research such as reviewing available literature and/or data, or
qualitative approaches such as informal discussions with consumers, employees, management or
competitors, and more formal approaches through in-depth interviews, focus groups, projective
methods, case studies or pilot studies. The results of exploratory research are not usually useful
for decisionmaking by themselves, but they can provide significant insight into a given situation.
Although the results of qualitative research can give some indication as to the "why", "how" and
"when" something occurs, it cannot tell us "how often" or "how many." Exploratory research is not
typically generalizable to the population at large. Research is exploratory when you use no earlier
model as a basis of your study. The most usual reason for using this approach is that you have
no other choice. Normally you would like to take an earlier theory as a support, but there perhaps
is none, or all available models come from wrong contexts. Exploratory research means that
hardly anything is known about the matter at the outset of the project. You then have to begin
with a rather vague impression of what you should study, and it is also impossible to make a
detailed work plan in advance. Analysis in exploratory research is essentially abstraction and
generalization. Abstraction means that you translate the empirical observations, measurements
etc. into concepts; generalization means arranging the material so that it disengages from single
persons, occurrences etc. and focuses on those structures (invariances) that are common to all
or most of the cases. 86
It will seldom be possible to divide exploratory study into such clear phases as is common in the
case that the object has been studied earlier. According to Alasuutari (1993 p.22), in qualitative
analysis of empirical findings, you can distinguish two phases but these two overlap: ·
simplification of observations · interpretation of results (or "solving the enigma") In the
simplification phase, the material is inspected from the theoretical point of view of the study
project, and only the points relevant from this angle are noted. Details differing from one
individual to another at random are omitted or pushed aside so that the general lines of the data
can be discerned more easily. Simplification continues by finding the relationships between
separate bservations or cases. Some tools for this work are comparison and classification. The
goal is to find the general rule or model that is valid in all or most of the observations. This model
can be, for example, development or evolution, causality, or a conscious action to attain an
outcome which is typical in normative research. -- In any case the analysis starts from separate
cases and aspires to create one or a few general models. "Solving the enigma" does not always
mean answering exactly those questions that were asked at the outset of the project. Sometimes
the most interesting questions are found at the end of the research, when the researcher has
become an expert on the subject. It is often said that "data teach the researcher". The purpose of
descriptive exploratory research is to extract a structure from the source material which in the
best case can be formed as a rule that governs all the observations and is not known earlier (per
the definition of exploratory study). Finding the unknown structure may need some creative
innovation, because even the most sophisticated computerized analysis methods cannot
automatically uncover which type of structure is concealed in data. Usually you first have to
formulate a tentative pattern for the assumed structure in the observations and then you can ask
the computer to estimate how well the data corresponds to the model, cf. Tools for Analysis. 87
METHODS OF DATA COLLECTION In the project work Primary data secondary data (both)
sources of data has been used . 1. Primary data collection: In dealing with real life problem it is
often found that data at hand are inadequate, and hence, it becomes necessary to collect data
that is appropriate. There are several ways of collecting the appropriate data which differ
considerably in context of money costs, time and other resources at the disposal of the
researcher. Primary data can be collected either through experiment or through survey. The data
collection for this study was done in the following manner: Through personal interviews:- A rigid
procedure was followed and we were seeking answers to many pre- conceived questions through
personal interviews. Through questionnaire:- Information to find out the investment potential and
goal was found out through questionnaires. Through Tele-Calling:- Information was also taken
through telephone calls. 2. Secondary sources of data: In the secondary sources of data is used.
(Internet , magazine ,books, journals) In research, secondary data is data collected and possibly
processed by people other than the researcher in question. Common sources of secondary data
for social science include censuses, large surveys, and organizational records. In sociology
primary data is data you have collected yourself and secondary data is data you have gathered
from primary sources to create new research. In terms of historical 88
research, these two terms have different meanings. A primary source is a book or set of archival
records. A secondary source is a summary of a book or set of records. Secondary data analysis:
There are two different types of sources that need to be established in order to conduct a good
analysis. The first type is a primary source which is the initial material that is collected during the
research process. Primary data is the data that the researcher is collecting themselves using
methods such as surveys,direct observations, interviews, as well as logs(objective data sources).
Primary data is a reliable way to collect data because the researcher will know where it came
from and how it was collected and analyzed since they did it themselves. Secondary sources on
the other hand are sources that are based upon the data that was collected from the primary
source. Secondary sources take the role of analyzing, explaining, and combining the information
from the primary source with additional information. Secondary data analysis is commonly known
as second-hand analysis. It is simply the analysis of preexisting data in a different way or to
answer a different question than originally intended. Secondary data analysis utilizes the data that
was collected by someone else in order to further a study that you are interested in completing.
Common sources of secondary data are social science surveys and data from government
agencies, including the Bureau of the Census, the Bureau of Labor Statistics and various other
agencies. The data collected is most often collected via survey research methods. Data from
experimental studies may also be used. Sources of secondary data: Sources of secondary data
may be classified into qualitative and quantitative. Examples of qualitative sources are
biographies, memoirs, newspapers, etc. Quantitave sources include published statistics (e.g.,
census, survey), data archives, market research, etc.[1] Today, with the aid of our internet
capabilities, thousands of large scale datasets are at the click of a mouse for secondary data
analyst. Globally, there are many sources available. These sources can arrive from the data
arranged by governmental and private organizations, to data collected by any social researcher.
Secondary data analysis is a growing research tool in our modern day society. Social scientists
have the opportunity to explore massive amounts of secondary data. Collecting, reviewing, and
analyzing secondary data The Design and Purpose of Research Secondary data analysis
consists of collecting data that was compiled through research by another person and using that
data to get a better understanding of a concept. A good way to begin your research using
secondary data that you are collecting to further support your concept is to clearly define the
goals of your research and the design that you anticipate using. An important thing to remember
when defining your plan is to ensure that you have established what kind of data you plan on
using for your research and the exact goal. Establishing what type of research design is an
important component. In terms of using secondary data for research it helps to create an outline
of what the final product will look like consisting of all the types of data to be used along with a list
of sources that were used to compile the research. In order to use secondary data three steps
must be completed: 1. locate the data 2. evaluate the data 3. verify the data Locating the data
can be easily done with the advancements of searching sources online. However, people need to
be aware of the details when searching online since pages can be out of date or poorly put
together. Therefore, use caution and pay attention to whether it is a reliable data source online
and check when the last update was. To evaluate the data a researcher must carefully examine
the secondary data they are considering to ensure that it meets their needs and purpose of study.
The person must look at the population and what the sample strategy and type were. It is also
important to look at when the data was collected, how it was collected, how it was coded and
edited, along with the operational definitions of measures that were used. Finally, the data must
be verified to ensure good quality material to be used in new research. 90
Determining the Types of Data and Information Needed to Conduct Analysis Data and
information collection for secondary data analysis will depend entirely upon the subject that is
central to the focal point of the study. The purpose of conducting secondary data analysis is to
further develop an improved understanding of the subject matter at hand. Some important types
of data and information that should be collected and summarized include demographic
information, information gathered by government agencies (i.e. the Census), and social science
surveys. There is also the possibility of reanalyzing data that was collected in experimental
studies or data collected with qualitative measures that can be applied in secondary data
analysis. The most important component is to ensure that the information and data being
collected needs to relate to the subject of study. Determine the Quality of Sources of Data In
secondary data analysis, most individuals who do not have much experience in research training
or technical expertise can be trained accordingly. However, this advantage is not without difficulty
as the individual must be able to judge the quality of the data or information that has been
gathered. These key tips will assist you in assessing the quality of the data: Determine the
original purpose of the data collection, attempt to discover the credentials of the source(s) or
author(s) of the information, consider if the document is a primary or secondary source, verify that
the source well-referenced, and finally find out the: date of the publication; the intended audience,
and coverage of the report or document. RESEARCH DESIGN For the proper analysis of data
simple quantitative technique such as percentage were used. It help in marketing more accurate
generalization From the data available .The data which was collected from a sample of population
was assumed to be representing entire population was interested .Demographic factor like age,
income and educational background was used for the classification purpose . 91
On The Job Training On the job training is an important component of our training. It is an attempt
to bridge the gap between the academic institution and the corporate world. During OJT, which
would be a simulation of real work environment, requires you to undergo the rigor of professional
environment, both in form and in substance. In the process, it provides an opportunity for us to
satisfy our inquisitiveness about corporate, provides exposure to technical skills, and helps us to
acquire social skills by being in constant interaction with the professionals of other organizations.
During OJT we are required to undertake assignmentjobs along with the day-to- day function of
the company, both at the assistance and execution level. This will help to gain a deeper
understanding of the work, culture, deadlines, and pressure etc. of an origination. STRATEGY – ·
Tele-calling · Personal appointments · Making arrangements for the requirements · Open Demat
Account · Again visit for trading 92
DATA ANALYSIS AND INTERPRETATION Q1. In which of these Financial Instruments do you
invest into? Financial Instrument Percentage of respondent Mutual Fund 75% Bond 16% Online
trading 7% Derivative 2% Result of Preference of Investment Interpretation: 93
This shows that although the mutual funds market is on the rise yet, the most favored investment
continues to be in the Share Market. So, with a more transparent system, investment in the Stock
Market can definitely be increased. Q2. Are you aware of online Share trading? Aware of online
share trading Percentage of respondent Yes 72% No 28% Result of awareness of online trading
Interpretation: 94
With the increase in cyber education, the awareness towards online share trading has increased
by leaps and bounds. This awareness is expected to increase further with the increase in Internet
education. Q3. Heard about Sharekhan ltd.? Awareness of Sharekhan ltd. Percentage of
respondent Yes 70% No 30% Interpretation: 95
This pie-chart shows that This brand image should be further leveraged by the company to
increase its market share over its competitors. Q4. Do you know about the facilities provided by
Sharekhan ltd.? Awareness of Sharekhan ltd. Percentage of respondent Services Yes 36% No
64% Awareness of Sharekhan ltd.Facilities 36% yes 64% No Interpretation: 96
Although there is sufficiently high brand equity among the target audience yet, it is to be noted
that the customers are not aware of the facilities provided by the company meaning thereby, that,
the company should concentrate more towards promotional tools and increase its focus on
product awareness rather than brand awareness. Q.5 Which company provide a less
BROKARAGE rate ? Company Name Percentage of respondent Sharekhan ltd. 22 HDFC 11
ICICI 17 97
INTERPRTETATION: 44% have respondent of Sharekhan ltd., 22% have respondent of HDFC,
34% have respondent of ICICI. Q. 6 Which company provide you a large number of product and
services? Company Name Percentage of respondent Sharekhan ltd. 22 HDFC 10 ICICI 18 98
INTERPRETATION:- 44% have respondent of Sharekhan ltd., 20% have respondent of HDFC,
36% have respondent of ICICI. Q. 7 How many of you satisfy with the level of current broker?
Satisfaction level among Customers with current broker Yes - 92% No- 8% 99
Interpretation: This pie chart accentuates the fact that Strategic marketing, today, has gone
beyond only meeting Sales targets and generating profit volumes. It shows that all the
competitors are striving hard not only to woo the customers but also to make them Brand loyal by
generating customer satisfaction. Q. 8 How many of do training: A) Daily B) Monthly C) Weekly
D) Yearly Frequency of Trading Daily- 9% Weekly- 27% Monthly-53% Yearly-11% 100
Interpretation: In spite of the huge returns that the share market promises, we see that there is
still a dearth of active traders and investors. This is because of the non – transparent structure of
the Indian share market and the skepticism of the target audience that is generated by the
volatility of the stock market. It requires efficient bureaucratic intervention on the part of the
Government. Q. 9According to your perspective which investment gives you maximum return? (1)
Share market (2) Mutual funds (3) Purchasing insurance policy 101
share market mutual funds purchasing insurance policies Interpretation As of today people
believe in secured investment with no risk & high return. So insurance policy are the best option
for them as they give good return after a period of time .Share market has also come up in a big
way though the risk factor is a bit too high despite good return. Represent a pie chart 102
OBSERVATION To study the sales and distribution management and improve the Customer
Acquisition Process by analyzing the consumer behavior, response and mindset towards the
product and services the company offers. 103
1. Preference of Investment: Consumers want to invest 75% in Mutual funds, 16% in Bonds, 7%
in online trading and 2% in Derivatives. 2. Awareness on Online Share Trading: 72% consumers
are aware of online share trading and 28% consumers are not aware of online share trading. 3.
Awareness of Sharekhan ltd.: 70% consumers are know about Sharekhan ltd. and 30%
consumers are not know about Sharekhan ltd. 4. Awareness about facilities provided by
Sharekhan ltd. : 36% consumers are aware about the facilities provided by Sharekhan ltd. and
64% consumers are not know about the facilities provided by Sharekhan ltd. 5. Provide a less
BROKARAGE rate: 44% have respondent of Sharekhan ltd., 22% have respondent of HDFC,
34% have respondent of ICICI. 6. Provide a large no. of Products and services: 44% have
respondent of Sharekhan ltd., 20% have respondent of HDFC, 36% have respondent of ICICI.
v According to the survey most of the customers of “Sharekhan Ltd” says that it is pocket
friendly. v Coming to faith 70% say Sharekhan Ltd is better than others stock brokers due to
customers satisfaction. v Main purposes of investments are returns & liquidity. v Investors take
risk as well as returns into their mind while making the investment. v Businessmen are more
interested in the stock market than the others. v Commodity market is less preferred by the
investors. v People want to invest their money in the security market but they haven’t the proper
knowledge. v People are not aware of hedging in stock market. v People pay more emphasis
on brokerage than service provided by brokerage houses. LIMITATION 105
• Lack of awareness of capital market: Since the area is not known before it takes lot of time in
convincing people to start investing in shares primarily in IPO’s. • Some people are comfortable
with traditional system: As people are doing trading from there respective brokers, they are quite
comfortable to trade via physical form of paper. • Lack of Techno Savvy people and poor internet
penetration: Since most of the people are quite experienced and also they are not techno savvy.
Also Internet penetration is poor in India. • Some respondents are unwilling to talk: Some
respondents either do not have time or willing does not respond, as they are quite annoyed with
the phone call. • Inaccurate Leads: Sometimes leads are provided which had error in it, which
varies from only 5- digit phone number to wrong phone number • Misleading concepts: Some
people think that as all the shares are in electronic form and they don’t have any physical proof.
Sometimes this leads to a great misconception of the entire process. • The time constraint was
one of the major problems. 106
• The study is limited to the different schemes available under the Demat account selected. • The
lack of information sources for the analysis part. • Geographical locations. • Extreme variability in
1. MORE BRANCHES – Need to open more branches to be a topper in market Because it has a
low distribution network. 2. LESS TIME – They should try to make some arrangements to reduce
account opening time by verifying documents at branch it selves. 3. LINK-BANK A/Cs – Linked as
many accounts as client wants to its online account. 4. NEW BANKS IN THE KITTY – Need to tie
up with major banks like SBI, Allahabad Bank, Bank of Baroda etc. 5.CUSTOMER
SATISFACTION – The company should focus on the customer satisfaction not on just taking
money from their pocket. 7.CONTROLLED BRANCHES – The company would have to make
some arrangements to control the branches and make standardized procedures for all of them for
their better control and performance appraisal.  Commitment should be equalized for every
person.  Provide the facility of free demonstrations for all. 108
 Improvement in the opening of De-mat & contract notice procedure is required.  There should
be a limited number of clients under the relationship manger. So that he can handle new as well
as old customer properly.  Some promotional activities are required for the awareness of the
customer.  People at young age should be encouraged to invest in stock market.  Seminars
should be held for providing information to prospective and present customers. 109
CONCLUSION On the basis of the study it is found that Sharekhan Ltd is better services provider
than the other stockbrokers because of their timely research and personalized advice on what
stocks to buy and sell. Sharekhan Ltd. provide the facility of Trade tiger as well as relationship
manager facility for encouragement and protect the interest of the investors. It also provides the
information through the internet and mobile alerts that what IPO’s are coming in the market and it
also provides its research on the future prospect of the IPO. Study also concludes that people are
not much aware of commodity market and while it’s going to be biggest market in India. The
company should also organize seminars and similar activities to enhance the knowledge of
prospective and existing customers, so that they feel more comfortable while investing in the
stock market. 110
BIBLIOGRAPHY Websites: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. WWW.KARVY.COM NEWSPAPERS: 1.
gandhichintan + FOLLOW
11684 views, 25 favs, 2 embeds

Sunil Dhankhar


A Comparative Study Of Major Players Of Stock Brokers In M…


summer training report on sharekhan




India Financial System


A Comparative Study Of Major Players Of Stock Brokers In M…



About this document

© All Rights Reserved

Views on
Views on
Total Views
2 views on
1 views on
View text version

Uploaded via SlideShare
Uploaded as Microsoft Word
Flag as inappropriate
File a copyright complaint
1 this is very useful for meso plz send it to my ma
Follow SlideShare
SlideShare Blog