SUMMER TRAINING REPORT ON “CUSTOMER STUDY ON SECURITY TRADING”

India Infoline Ltd.
Summer Training Project Report Submitted Towards The Partial Fulfillment For Award Of The Degree Of Master of Business Administration
(2009-2011)

COLLEGE OF SCIENCE & ENGINEERING, JHANSI (U.P) UNDER THE GUIDANCE OF
MR. PARAS CHAUDA
(Relationship Manager)

Submitted To: MR. MANOJ KUMAR SHARMA Head Of Business Administration

Submitted by: JEETENDRA PARSERIA MBA-3rd Sem ROLL NO:-0914570023
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DECLARATION

I do hereby declare that the Project work entitled “A Customer Study On Security Trading” submitted for the partial fulfilment for the award of Master’s Of Business Administration of College Of Science & Engineering , Ambabai, Jhansi (U.P) is my original work and has not previously formed the basis for the award of any degree, diploma, associate ship, fellowship or other similar title or recognition.

JEETENDRA PARSERIA 2

ROLL NO:- 0914570023

ACKNOWLEDGEMENT

I would like to express My sincere thanks to India Infoline Ltd, Noida for giving me the opportunity to carry out the Summer Internship Program in their organization. I express my gratitude to Mr. Paras Chauda (Relationship Manager) & Mr. Divyadeep Arora (Sales Manager) India Infoline Ltd, for their support and guidance during the training period. I am very thankful to Mr. Manoj Kumar Sharma, Head Of Business Administration, College of Science & Engineering, Jhansi (U.P), for giving me the opportunity to complete my training in India Infoline Ltd and giving me the guidance and interest evinced throughout the preparation of this project. I also extend my heartfelt gratitude and thanks to Mr. Ajay Gangele, Assistant Professor, Master’s Of Business Administration. I would like to express my note of gratitude towards my Project Mentor Ms. Ruchi Khanna, Senior Lecturer, Master’s Of Business Administration and all other faculty member of CSE, Jhansi, my thanks to those who encourage me and give values and moral support to complete my summer training successfully. I take this opportunity, also to express My love and sincere thanks to My family members and friends for their support and advice during various stage of work. Last but not the least I thank God almighty for giving me the support for the completion of the task.

JEETENDRA PARSERIA 3

ROLL NO :- 0914570023

PREFACE

No professional curriculum is considered complete without work experience. It is well evident that work experience is an indispensable part of every professional course. In the same manner practical work in any organization is must for each an every individual, who is undergoing management course. Without the practical exposure one cannot consider himself as a qualified capable manager. Entering in the organization is like stepping into altogether a new world. At first, everything seems strange and unheard but as the time passes one can understands the concept and working of the organization and thereby develop professional relationship. Initially it is felt that as if classroom study was irrelevant and it is useless in any concern working. But gradually it is realize that all fundamental basic concepts studied are linked in one or other ways to the organization. But how and what can be done with fundamentals depends upon the intellectual and applicability of an individual.

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ABSTRACT
Indian capital market has seen unprecedented boom in its activity in the last 15 years in terms of number of stock exchanges, listed companies, trade volumes, market intermediaries, investor population, etc. However, this surge in activity has brought with it numerous problems that threaten the very survival of the capital markets in the long run, most of which are due to the large volume of paper work involved and paper based trading, clearing and settlement. Until the late eighties, the common man kept away from capital market and thus the quantum of funds mobilized through the market was meager. A major problem, however, continued to plague the market. The Indian markets were drowned in shares in the form of paper and hence it was problematic to handle them. Fake and stolen shares, fake signatures and signature mismatch, duplication and mutilation of shares, transfer problems, etc. The investors were scared and were under compensated for the risk borne by them. The century old system of trading and settlement requires handling of huge volumes of paper work. This has made the investors, both retail and institutional, wary of entering the capital market. However, lack of modernization become a hindrance to growth and resulted in creation of cumbersome procedures and paper work. However, the real growth and change occurred from mid-eighties in the wake of liberalization initiatives of the Government. The reforms in the financial sector were envisaged in the banking sector, capital market, securities market 5

regulation, mutual funds, foreign investments and Government control. These institutions and stock exchanges experienced that the certificates are the main cause of investors` disputes and arbitration cases.

LITERATURE REVIEW

Investing in equities in a market like India is speculative and involves risk that may be greater than other types of investment strategies. Before investing an Investor should be careful enough about him investment decision to avoid erosion of wealth. As seen in the recent times the volatility of market is more detrimental to the retail investors as it seems to be lucrative for speculative gains of short duration of time. Hence an investor has to evaluate his options carefully for a prudent investment, keeping long-term horizon in mind. The report has tried to bring out the parameters those are of paramount importance to general public dealing in an equity trading on Intra Day and delivery base trading. The working methodology has been discussed i.e. the data collection methods, sampling methods and the survey questionnaire methods. Questionnaire prepared is designed so as to cover a wide range of customer “touch points”. The report given a view about the investors perception that what they think while making investments in shares. A sample of 100 people was selected randomly and survey was done as per the parameters of the questionnaire. The results of every parameter have been included in this report and shown graphically (Pie Charts, bar graphs etc.) A complete structure of the research design has been included. Apart from above discussed points the brief history of India Infoline Securities Ltd, its business diversification and a brief introduction about the concept of share trading. The two largest stock exchanges in India are the Bombay Stock Exchange and the National Stock Exchange of India. The Indian economy has grown rapidly in the last ten to fifteen years, 6

and both of these exchanges have continued to reactively construct new stock market indexes in order to more accurately represent the overall Indian market. The Bombay Stock Exchange (BSE) created the BSE 500 stock market index. This index of 500 stocks is designed to better portray the changing nature of the Indian economy, and represents nearly 93 percent of the market capitalization of the BSE (BSE). Consequently, the BSE 500 is generally considered representative of the Indian stock market. India Index Services and Products Limited (IISL) was created in 1998 to provide a variety of stock market indexes to the National Stock Exchange of India (NSE). IISL has a consulting and licensing agreement with Standard and Poor’s (NSE website).The NSE S&P CNX 500 (NSE 500), a broad-based index of 500 stocks, was created . According to the NSE, this index represents approximately 93 percent of the exchange’s market capitalization and approximately 87 percent of NSE turnover, and is therefore representative of the overall Indian stock market.

We collected values for each index for the last trading day of each month. Data for last trading day of the month for each index were available from June 1999 to June 2010, so that we have ninety-six monthly return observations, i.e. from July 1999 to June 2010 for each index. Since each index represents over ninety percent of the market capitalization of its respective exchange and each index is representative of the overall Indian stock market, we expect similar results for our analysis of each of the two data sets over the sample period.

Adoption of the Internet might be an indicator of changes in the society and adopters and nonadopters might be differentiated according to the demographics (Al-Ashban and Burney, 2001; Karjaluoto et al., 2002; Sathye, 1999) and attitude towards the use of Internet for trading. In recent studies, demographic variables such as age, educational level, and income contributed significantly in discriminating between innovators and early adopters from others (LaBay and 7

Kinnear, 1981; Gatignon and Robertson, 1985; Martinez et al., 1998). Doherty et al. (2003) and (Akinci et al., 2004) found that male and young customers were most likely to adopt the internet for stock trading. The young, educated, and affluent embraced the advent of personal computer as the new wave in digital technology (Lin, 1998; Atkin et al., 1998; Karjaluoto et al., 2002; Mattila et al., 2003; Sathye, 1999). Another study observed that age and education of the respondents did not discriminate between Internet users and the non-users of e-banking (Sohail and Shanmugham, 2003).

Attitude is defined as an individual's degree to respond in a favorable or unfavorable way with respect to a psychological object (Ajzen and Fisherbein, 2000). In the field of Internet stock trading, the more positive the attitude an individual had towards the object, the more likely was the behavioral intention to adopt the same (Gopi and Ramayah, 2007). Many studies had shown the significant effect of the attitude towards intention to adopt the innovation (Mathieson, 1991; Lu et al., 2003; Shih and Fang, 2004; Ramayahet al., 2003; Teo and Pok, 2003; Ramayah et al., 2004; Eri, 2004; Ramayah et al., 2005; Ramayah and Suki, 2006). Another study revealed that attitude and social factors significantly influenced the investors’ intention towards adopting Internet stock trading as they find themselves secure in this trading.(Lee and Ho, 2003). Majer (2010) attempted to examine 100 investors’ opinion on issues ranging from Internet security to their willingness to adopt an Internet-based stock exchange in Canada. It was concluded that Internet stock exchanges would soon catch a valuable niche market in the area of electronic commerce.

“Patel and Evans (2003)” investigated seasonal patterns in the stock markets of the seven most industrialized..

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A period of good returns also boost the investor’s self confidence reducing his psychological risk.(Tversky , A. & Kanheman, D .(1974), Judgement under uncertainity : Heuristics and Biases, Science.

OBJECTIVE OF THE STUDY
1) To study investor’s behavior towards different Factors and service quality such as Convenience, investment in Equities. 2) To study the issues and challenges that investor’s face while making investment in share market. 3) To study the preferences and perceptions of investors regarding various financial products from the stable of India Infoline Securities Ltd. so that the firm can benefit from the findings of the report in launching any new investment product in future. 4) To study the customer behavior in respect of investment in shares. 5) To understand the satisfaction level of clients with India Infoline regarding service provided by staff. 6) To understand the satisfaction level of clients with India Infoline regarding trade confirmation. 7) To understand the what type of trading should be provided to the customers. 8) To learn about the different aspects of the customers. 9) To study the satisfaction level of brokerage. 9 Privacy, Timesaving, User-friendly etc. of

10) To understand the satisfaction level of clients with India Infoline regarding tips. 11) To study the satisfaction level of flexibility provided by India Infoline. 12) To study the overall satisfaction level.

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TABLE OF CONTENTS

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CHAPTER 1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 2 2.1 2.2 3 3.1 4 4.1 4.2 5 6 7

TITLE Introduction History Of India Infoline Company Profile The Management Team Marketing Strategies Of IIFL About Demat Account Competitors Details History Of Stock Exchange Products & Services Types Of Account Research Methodology Objectives Of The Research Limitations Of The Study Data Analysis & Interpretation Testing Of Hypothesis Conclusion Recommendations Questionnaire My Experience During Training Period Bibliography Annexure

PAGE NO 12 - 13 14 - 16 17 - 22 23 - 25 26 - 36 37 - 45 46 - 48 49 - 54 55 - 61 62 - 69 70 - 71 72 - 73 74 - 75 76 - 106 107 - 112 113 - 114 115 - 118 119 - 130 131 - 132 133 - 138 139

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CHAPTER 1 INTRODUCTION

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INTRODUCTION AND CONCEPT OF SHARE TRADING

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

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CHAPTER 1.1 HISTORY OF THE COMPANY
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HISTORY OF THE COMPANY
India Infoline was originally incorporated on October 18, 1995 as Probity Research and Services Private Limited at Mumbai under the Companies Act, 1956 with Registration No. 11 93797. India Infoline commenced operations as an independent provider of information, analysis and research covering Indian businesses, financial markets and economy, to institutional customers. India Infoline became a public limited company on April 28, 2000 and the name of the Company was changed to “Probity Research and Services Limited”. The name of the Company was changed to “India Infoline.com Limited” on May 23, 2000 and later to “India Infoline Limited” on March 23, 2001. In 1999, India Infoline.com identified the potential of the Internet to cater to a mass retail segment and transformed our business model from providing information services to institutional customers to retail customers. Hence India Infoline launched Internet portal, www.indiainfoline.com in May 1999 and started providing news and market information, independent research, interviews with business leaders and other specialized features. 16

In May 2000, the name of India Infoline was changed to India Infoline.com Limited to reflect the transformation of our business. Over a period of time, India Infoline.com has emerged as one of the leading business and financial information services provider in India. In the year 2000, India Infoline leveraged its position as a provider of financial information and analysis by diversifying into transactional services, primarily for online trading in shares and securities and online as well as offline distribution of personal financial products, like mutual funds and RBI Bonds. These activities were carried on by our wholly owned subsidiaries. India Infoline broking services was launched under the brand name of 5paisa.com through our subsidiary, India Infoline Securities Private Limited and www.5paisa.com, the e-broking portal, was launched for online trading in July 2000. It combined competitive brokerage rates and research, supported by Internet technology besides investment advice from an experienced team of research analysts, India Infoline also offer real time stock quotes, market news and price charts with multiple tools for technical analysis.

Facilities
India Infoline’s main offices are located in approximately 4,000 square feet of office space located in Mumbai, India. India Infoline Branches collectively occupy an additional 10,000 square feet of office space located throughout India, As on March 31, 2005, India Infoline has 73 branches across 36 locations in India.

Terminals
Almost 52% of the terminals in the sample are based in the Western region of India, followed by 25% in the North, 13% in the South and 10% in the East. Mumbai has got the maximum

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representation from the West, Chennai from the South, New Delhi from the North and Kolkata from the East.

CHAPTER 1.2 COMPANY PROFILE
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Industry Profile
India Infoline Ltd is listed on both the leading stock exchanges in India, viz. the Bombay Stock Exchange, (BSE) and the National Stock Exchange (NSE). The India Infoline group, comprising the holding company, India Infoline Ltd and its subsidiaries, straddles the entire financial services space with offerings ranging from Equity research, Equities and derivatives trading, Commodities trading, Portfolio Management Services, Mutual Funds, Life Insurance, Fixed deposits, GoI bonds and other small savings instruments to loan products

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and Investment banking. India Infoline also owns and manages the websites,

www.indiainfoline.com and www.5paisa.com .

India Infoline Ltd, being a listed entity, is regulated by SEBI (Securities and Exchange Board of India). It undertakes equities research which is acknowledged by none other than Forbes as ‘Best of the Web’ and ‘…a must read for investors in Asia’. India Infoline’s research is available not just over the internet but also on international wire services like Bloomberg (Code: IILL), Thomson First Call and Internet Securities where it is amongst the most read Indian brokers. Its various subsidiaries are in different lines of business and hence are governed by different regulators. The subsidiaries of India Infoline Ltd are:

India Infoline Securities Pvt Ltd
India Infoline Securities Pvt Ltd is a 100% subsidiary of India Infoline Ltd, which is engaged in the businesses of Equities broking and Portfolio Management Services. It holds memberships of both the leading stock exchanges of India viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE). It offers broking services in the Cash and Derivatives segments of the NSE as well as the Cash segment of the BSE.

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A SEBI authorized Portfolio Manager, it offers Portfolio Management Services to clients. These services are offered to clients as different schemes, which are based on differing investment strategies made to reflect the varied risk-return preferences of clients.

India Infoline Commodities Pvt Ltd
India Infoline Commodities Pvt Ltd is a 100% subsidiary of India Infoline Ltd, which is engaged in the business of commodities broking. Our experience in securities broking empowered us with the requisite skills and technologies to allow us offer commodities broking as a contra-cyclical alternative to equities broking. We enjoy memberships with the MCX and NCDEX, two leading Indian commodities exchanges, and recently acquired 21

membership of DGCX. We have a multi-channel delivery model, making it among the select few to online as well as offline trading facilities.

India Infoline Distribution Co Ltd (IILD)
India Infoline.com Distribution Co Ltd is a 100% subsidiary of India Infoline Ltd and is engaged in the business of distribution of Mutual Funds, IPOs, Fixed Deposits and other small savings products. It is one of the largest ‘vendor-independent’ distribution houses and has a wide pan-India footprint of over 232 branches coupled with a huge number of ‘feet-onstreet’, which help source and service customers across the length and breadth of India.

Its unique proposition of free doorstep expert advice coupled with free pick-up and delivery of cheques has been met with an enthusiastic response from customers and fund houses alike. Our business has expanded to include the online distribution of mutual funds, wherein users can view and compare different product offerings and download application forms which they can later submit to the product provider.

Mortgages & Loans IILD has also entered the business of distribution of mortgages and loan products during the year 2005-2006. The business is still in the investing phase and We plan to roll the business out across its pan-Indian network to provide it with a truly national scale in operations.

India Infoline Insurance Services Ltd
India Infoline Insurance Services Ltd is also a 100% subsidiary of India Infoline Ltd and is a registered Corporate Agent with the Insurance Regulatory and Development Authority (IRDA). It is the largest Corporate Agent for ICICI Prudential Life Insurance Co Ltd, which is India’s largest private Life Insurance Company. 22

India Infoline Investment Services Ltd
India Infoline Investment Service Ltd is also a 100% subsidiary of India Infoline Ltd. It has an NBFC license from the Reserve Bank of India (RBI) and offers margin-funding facility to the broking customers.

India Infoline Insurance Brokers Ltd
India Infoline Insurance Brokers Ltd is a 100% subsidiary of India Infoline Ltd and is a newly formed subsidiary which will carry out the business of Insurance broking. We have applied to IRDA for the insurance broking license and the clearance for the same is awaited. India Infoline is India's leading retail financial services company with over 177 locations in more than 19 states. While our size and strong balance sheet allow us to provide you with varied products and services at very attractive prices, our over 4400 Client Relationship Managers are dedicated to serving your unique needs. India Infoline 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 products. Our India Infoline 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. India Infoline offers a full range of financial services and products ranging from Equities to Insurance to enhance your wealth and hence, achieve your financial goals. India Infoline Client Relationship Managers are available to you to help with your financial planning and investment needs. To provide the highest possible quality of service, India Infoline provides full access to all our products and services through multichannels. 23

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CHAPTER 1.3 THE MANAGEMENT TEAM

THE MANAGEMENT TEAM

Mr. Nirmal Jain
Nirmal Jain is the Founder and Chairman of India Infoline Ltd. He holds an MBA degree from IIM Ahmedabad, and is a Chartered Accountant (All India Rank 2) and a Cost Accountant. He has had an impeccable professional and academic track record. He started his career in 1989 with Hindustan Lever Limited. During his stint with Hindustan Lever, he 25

handled a variety of responsibilities, including exports and trading in agro-commodities with Rs3bn annual turnover. He then joined hands with two local brokers to set up their equity research division, Inquire, in 1994. His work set new standards for equity research in India. In 1995, he founded his own independent financial research company, now known as India Infoline Ltd.

Mr. R Venkataraman
R Venkataraman is the Co-Promoter and Executive Director of India Infoline Ltd. He holds a B. Tech degree in Electronics and Electrical Communications Engineering from IIT Kharagpur and an MBA degree from IIM Bangalore. He has held senior managerial positions in various divisions of ICICI Limited, including ICICI Securities Limited, their investment banking joint venture with J P Morgan of USA and with BZW and Taib Capital Corporation Limited. He has also held the position of Assistant Vice President with G E Capital Services India Limited in their private equity division. He has varied experience of more than 14 years in the financial services sector.

VISION OF THE COMPANY
“Our vision is to be the most respected company in the financial services space.”

WHERE INDIA INFOLINE STAND IN THE MARKET

INDIA INFOLINE one of the leading financial intermediaries and India's most popular website for business and investment. Its Website has been rated as 'Best of 26

the Web' by Forbes, under the Asia Investing category. Besides providing up-to-date and comprehensive information on business and industry, It is also a leading investment intermediary for Mutual Funds, Bonds, ICICI / IDBI Bonds, Govt. Relief Bonds, Insurance, IPOs and Fixed Deposits in India. India Infoline is direct brokers/ agents with leading financial institutions like RBI, UTI, LIC, GIC, ICICI, IDBI and other private mutual fund like HDFC, Alliance, Prudential ICICI, Templeton, TATA, HSBC, Standard & Chartered, Sun F&C, Birla, DSP Merrill Lynch, Kotak, IL&FS, Sundaram, Zurich and Reliance. The company has more than 500 Investor points in all the leading cities across India, with a team of trained and qualified investment advisors and 1500+associates (sub brokers). Company e-broking web site 5paisa.com, which deals in shares, provides you fast, secure and easy to use trading facilities combined with a wealth of outstanding products and features. Thus, we are uniquely placed with both online and offline presence to maximize customer satisfaction. India Infoline is a growing organization, which is an ideal place for individuals with high ambitions. The working atmosphere is highly charged with a young and energetic team of qualified professionals.

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CHAPTER 1.4 MARKETING STRATEGIES OF IIFL

MARKETING STRATEGY OF INDIA INFOLINE

Market Positioning:
Market positioning statements of India Infoline are “At India Infoline we give you single window service” and “We also ensure your comfort”. So, India Infoline focus on the consumers who prefer almost all investment activities at same place by providing number of various financial services. At India Infoline a person can purchase or sell shares, debentures etc. and at the same place also demat it. India 28

Infoline also provides other investment option to the same person at same place like Mutual Fund, Insurance, Fixed Deposit, and Bonds etc. and help the person in designing his portfolio. By this way India Infoline provides comfort to its customers.

Target Market:
India Infoline uses demographic segmentation strategy and segment people based on their occupation. India Infoline uses selective specialization strategy for market targeting. Target person for the India Infoline Stock Broking and India Infoline Investment Service are persons who can work as sub-broker for the companies. Companies focus on Advisors of Insurance and post office, Tax consultants and CAs for making sub-broker.

Marketing channel System:
India Infoline uses one level marketing channel for investment product distribution. Sub-brokers work as intermediary between consumer and company. Company has both forward and backward flow of activity through channel. Company distributes stationery, brokerage, and information forward to its sub-broker. The sub brokers send filled forms, queries, amount of investment etc. back to the company.

Training Channel Members:
India Infoline provides training to the sub-brokers because they will be viewed 29

as the company by the investors. The executives of India Infoline explain various new schemes of investment to the sub-brokers with its objective, risk factors and expected return. Company also periodically arrange seminar to guide sub-brokers.

Advertising and Promotion:
The objective of advertising of India Infoline is to create awareness about services of India Infoline among investors and sub-brokers. India Infoline also publishes its weekly Stock Market Newsletter ‘Market Mantra’.

KEY COMPETETIVE STRENGHTHS

Diverse Branch Network
Since Company inception in FY 2000 Company and its subsidiaries have grown from a single location to a nationwide network spread over 177 Offices in 19 states. They have a pan India distribution networks for the purpose of distribution of financial products and services. Such a diverse and integrated network provides a centralized platform to there clients.

Bouquet of financial products and services

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Company and its subsidiaries offer various financial services and products ranging from equity, F & O and wholesale debt, mutual fund, insurance and IPO distribution, equity research analysis, depository services to cater to the specific needs of the retail and institutional investors thus providing all these services in a single platform.

Advanced Technology team that delivers market leading product innovation
There ongoing investment in technology is a key element in expanding there product and service offerings, enhancing there delivery systems, providing fast and consistent client service, reducing processing costs, and facilitating there ability to handle significant increases in client activity without a corresponding rise in risk and staff.

Strong Sales and Marketing Teams with continuous reinvestment and training
Company’s relationship manager channel (through a team of 4400 Relationship Managers) offers a single point contact to retail customers whereby their high net worth clients have separate relationship managers catering to them. These managers offer personalized services to the customers helping build strong and continuing relationships with them. Also, our marketing associate channel helps Company and its subsidiaries in client acquisitions at minimal costs with client loyalty. The marketing associate’s channel also helps Company and its subsidiaries in increasing their penetration in smaller town and cities.

Strong cross Selling Opportunities
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With 177 branches spread over 19 states all over India and variety of financial products and offerings coupled with online, relationship manager & marketing associate channels, Company and its subsidiaries have strong cross product selling opportunities thus providing a multichannel delivery systems to there diverse client base of 3,25,000 clients.

Strong Team of Experienced Promoters
India Infoline has a strong team of promoters who are Managers from Indian Institute of Management and have several years’ experience in financial services industry.

Leading Product innovation and marketing strategies
Management is innovative and nimble and has historically introduced many new and innovative products to the market place that have played a significant role in their growth. Company’s relationship manager model has introduced private banking experience to the clients. The relationship managers are trained and incentives to work with their client base and enhance ability to cross sell and leverage the large client base. India Infoline have launched marketing associate model.

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Strong market presence and increased market share leads to virtuous cycle of growth and profitability
They’re growing client base and market share have increased their market presence, brand recognition enhanced their profitability and increased the available credit facilities from the banks further strengthening its strong balance sheet.

KEY BUSINESS STRATEGIES
Their focus on the client has allowed Company and its subsidiaries to offer a range of services that have changed the investing landscape and created a new model of financial services that melds people and technology to provide an integrated human assisted technology interface service for investors who range from self-directed full-time active investor to those who prefer to deal with through a marketing associate in smaller towns and cities. Their key strategies include:  Defend and maintain their differentiation as the firm that delivers ethical and useful services  Build and expand “Investing Insight” through product offerings such as Equity Analysis which is objective.  Uncomplicated and not driven by commission.

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 Give clients new levels of choice tailored to their desire for help, tools for investing their assets, their willingness to pay for additional services and the level of business they can do with the company.  Provide clients with tools, relationship managers and choices that support their desired investment outcomes. India Infoline has developed a client specific approach as a core element of its business strategy and are constantly focusing on acquiring new clients and expanding their customer base. They believe that the strong secular growth of the Indian financial Markets, due to increased household penetration of financial assets; increasing liquidity and market capitalization of Indian Markets, led by the listing of many public sector entities; and the increasing affluence of Indian households and savers provides an impetus to the growth perspective.

They believe that this diversification and growth strategy will continue to produce results and allow Company and its subsidiaries to grow business at a rapid pace irrespective of market conditions. In addition, management believes that the growth of the Indian financial markets, due to increased household penetration of financial assets; increasing liquidity and market capitalization of Indian markets, led by the listing of many public sector entities; and the increasing affluence of Indian households and savers, favors our long term growth outlook.

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The core pillars of our business strategy are discussed below:
Increase the number of Client Relationships
They are focused on increasing the number of client relationships through a wide network of offices throughout India and having more number of relationship managers to service these relationships. They plan to grow their business by growing the number of client relationships. During a downturn of the markets they believe that increased number of client relationships will add stability to their earnings.

Multiple Channels – Enhance Customer Experience and Opportunities to interact with us
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Company’s clients can access their products and services through 177 offices spread across 19 states; through operator assisted call Centers; or through their website www.India Infoline.com; or through their respective relationship managers or through marketing Associates. These multiple channels provide flexibility to the clients and allow them to utilize their existing business Relationship with them through any channel from any part of India. Company’s strategy is to provide the most convenient, efficient and value added channel to the client at the lowest possible cost, and allow the clients with choice and varied access points. India Infoline believe that their multiple channel strategy has been particularly effective in the affluent segment where many sophisticated clients like to have a close-by office they can access and yet have the flexibility of Internet account management, transactions and electronic funds transfer and settlement.

Relationship Manager driven sales model, provide high quality service and exploit cross-sell opportunities
Company’s clients benefit from the personal attention and advice of the trained and motivated relationship managers. All its relationship managers are qualified and educated professionals, who have been extensively trained in-house to provide the products and services to the clients. These relationship managers are encouraged to develop long-term relationships with the clients and can access a variety of resources within the Company, such as insurance specialists, research services and others to add value to their clients. Most of the clients have dedicated relationship managers irrespective of the channel they use.

Brokerage Offering
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Company’s retail equity business primarily covers secondary market equity broking. It caters to the needs of individual Indian and Non-resident Indian (NRI) investors. They offer broker assisted trade execution and automated online investing and trading facilities to their customers. Automated online investing and trading includes automated order placement and execution of market and limit equity orders; and advanced trading platforms for active traders. All investors have full access to real – time quotes, personalized portfolio tracking, charting and quote applications, real-time market commentary, real-time quotes and news.

Online Automated Channel
Automated Online Business contributes more than 34.6% of its overall revenues. They control more than 20% market share in the online business. Clients are able to obtain financial information and execute trades on an automated basis through their online channel using product offerings like Power India Infoline and India Infoline Market Trader. Online channels include the India Infoline Group Professional Network that provides access via their web-site www.India Infoline.com to information and trading service on the Internet. This covers the Equity, Debt & Derivatives segment in the Indian;

Some of the unique features are:
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i. Trading via branch network, telephones and Internet account. That is Both online and offline (by telephone). ii. Automated Extended Margin Trading Facility. iii. Integrated Trading and Depositary Account.

iv. Technology transforming desktop into NEAT like terminal for Internet trading. v. One Screen for both Cash and Derivatives Trading.

vi. Facility to Buy Today & Sell Tomorrow itself. vii. Equity Research Department which studies the market and provides information. viii. Up-to-date news, data and analysis via India Infoline.com.

ix. Equity Analysis Report to support your investment decisions.

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CHAPTER 1.5 DEMAT ACCOUNT

ABOUT DEMAT ACCOUNT
The term Demat, in India, refers to a dematerialized account. For individual Indian citizens to trade in listed stocks or debentures. The Securities Exchange Board of India (SEBI) requires the investor to maintain a Demat account. In a demat account shares and securities are held in electronic form instead of taking actual possession of certificates. A Demat Account is opened by the investor while registering with an investment broker (or sub broker). The Demat account number which is quoted for all transactions to enable electronic settlements of trades to take place.

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Access to the demat account requires an internet password and a transaction password as well as initiating and confirming transfers or purchases of securities. Purchases and sales of securities on the Demat account are automatically made once transactions are executed and completed.

DEMAT OPTIONS
Banks score over others Around 200 “depository participants” (DPs) offer the demat account facility. A comparison of the fees charged by different DPs is detailed below. But there are three distinct advantages of having a demat account with a bank — quick processing, accessibility and online transaction. Generally, banks credit your demat account with shares in case of purchase, or credit your savings accounts with the proceeds of a sale on the third day. Banks are also advantageous because of the number of branches they have. Some banks give the option of opening a demat account in any branch, while 40

others restrict themselves to a select set of branches. Some private banks also provide online access to the demat account. So, you can check on your holdings, transactions and status of requests through the net banking facility. A broker who acts as a DP may not be able to provide these services.

FEES INVOLVED
There are four major charges usually levied on a demat account: Account opening fee, annual maintenance fee, custodian fee and transaction fee. All the charges vary from DP to DP.

ACCOUNT OPENING FEE
Depending on the DP, there may or may not be an opening account fee. Private banks, such as HDFC Bank and UTI Bank, do not have one. However, players such as ICICI Bank, Globe Capital, Karvy Consultants and the State Bank of India to do so. But most players levy this when you re-open a demat account, though the Stock Holding Corporation offers a lifetime account opening fee, which allows you to hold on to your demat account over a long period. This fee is refundable.

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ANNUAL MAINTENANCE FEE
This is also known as folio maintenance charges, and is generally levied in advance.

CUSTODIAN FEE
This fee is charged monthly and depends on the number of securities (international securities identification numbers — ISIN) held in the account. It generally ranges between Rs 0.5 to Rs 1 per ISIN per month. DPs will not charge custody fee for ISIN on which the companies have paid one-time custody charges to the depository.

TRANSACTION FEE
The transaction fee is charged for crediting/debiting securities to and from the account on a monthly basis. While some DPs, such as SBI, charge a flat fee per transaction, HDFC Bank and ICICI Bank peg the fee to the transaction value, subject to a minimum amount. The fee also differs based on the kind of transaction (buying or selling). Some DPs charge only for debiting the securities while others charge for both. The DPs also charge if your instruction to buy/sell fails or is rejected. In addition, service tax is also charged by the DPs. In addition to the other fees, the DP also charges a fee for converting the shares from the physical to the electronic form or vice-versa. This fee varies 42

for both demat and remat requests. For demat, some DPs charge a flat fee per request in addition to the variable fee per certificate, while others charge only the variable fee. For instance, Stock Holding Corporation charges Rs 25 as the request fee and Rs 3 per certificate as the variable fee. However, SBI charges only the variable fee, which is Rs 3 per certificate. Remat requests also have charges akin to that of demat. However, variable charges for remat are generally higher than demat. Some of the additional features (usually offered by banks) are as follows. Some DPs offer a frequent trader account, where they charge frequent traders at lower rates than the standard charges. Demat account holders are generally required to pay the DP an advance fee for each account which will be adjusted against the various service charges. The account holder needs to raise the balance when it falls below a certain amount prescribed by the DP. However, if you also hold a savings account with the DP you can provide a debit authorization to the DP for paying this charge. Finally, once you choose your DP, it will be prudent to keep all your accounts with that DP, so that tracking your capital gains liability is easier. This is because, for calculating capital gains tax, the period of holding will be determined by the DP and different DPs follow different methods. For instance, ICICI Bank uses the first in first out (FIFO) method to compute the period of holding. The proof of the cost of acquisition will be the contract note. The computation of capital gains is done account-wise.

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OPENING A DEMAT ACCOUNT
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 1, 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 44

securities, and custody charges vide circular dated January 28, 2005. Further, SEBI has vide circular dated November 9, 2005 advised that with effect from January 9, 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 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.

ADVANTAGES OF DEMAT ACCOUNT
The benefits are enumerated as follows: 1) It’s a safe and convenient way to hold securities. 2) Immediate transfer of securities is there. 3) There is no stamp duty on transfer of securities. 4) Elimination of risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc.
5)

There is a major reduction in paperwork involved in transfer of securities, reduction in transaction cost etc.

6) 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.
7)

Transmission of securities is done by DP eliminating correspondence with companies.

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8) Automatic credit into demat account of shares, arising out of bonus/split/consolidation/merger etc.
9)

Holding investments in equity and debt instruments in a single account.

DISADVANTAGES OF DEMAT ACCOUNT
The disadvantages of dematerialization of securities can be summarized as follows: 1) Trading in securities may become uncontrolled in case of dematerialized securities. 2) It is incumbent upon the capital market regulator to keep a close watch on the trading in dematerialized securities and see to it that trading does not act as a detriment to investors. 3) The role of key market players in case of dematerialized securities, such as stock-brokers, needs to be supervised as they have the capability of manipulating the market. 4) Multiple regulatory frameworks have to be confirmed to, including the Depositories Act, Regulations and the various By-Laws of various depositories.

46

5) Additionally, agreements are entered at various levels in the process of dematerialization. These may cause anxiety to the investor desirous of simplicity in terms of transactions in dematerialized securities. 6) However, the advantages of dematerialization outweigh its disadvantages and the changes ushered in by SEBI and the Central Government in terms of compulsory dematerialization of securities is important for developing the securities market to a degree of advancement. Freely traded securities are an essential component of such an advanced market and dematerialization addresses such issues and is a step towards the advancement of the market.

CHAPTER 1.6 COMPETITORS DETAILS
47

COMPETITORS DETAILS

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.

ICICI DIRECT
ICICI Web Trade Limited (IWTL) maintains www.icicidirect.com (herein 48

after referred to as the "Website") whereas IWTL is an affiliate of ICICI Bank Limited and the Website is owned by ICICI Bank Limited. IWTL has launched and established an online trading service on the Website.

HDFC SECURITY
HDFC security is the subsidiary of HDFC (Housing Development Financial Corporation). www.hdfcsec.com would have an exclusive discretion to decide the customers who would be entitled to its online investing services. www.hdfcsec.com also reserves the right to decide on the criteria based on which customers would be chosen to participate in these services .The present web site (www.hdfcsec.com) contains features of services that they offer/propose to offer in due course. The launch of new services is subject to the clearance of the regulators. i.e. SEBI, NSE & BSE.

INDIABULLS SECURITIES LIMITED
Indiabulls Securities Limited was incorporated as GPF Securities Private Limited on June 9, 1995. The name of the company was changed to Orbis Securities Private Limited on December 15, 1995 to change the profile of the company and subsequently due to the conversion of the company into a public limited company; the name was further changed to Orbis Securities Limited on January 5, 2004. The name of the company was again changed to Indiabulls Securities Limited on February 16, 2004 so as to capitalize on the brand image of the term “Indiabulls” in the company name. ISL is a corporate member of capital market & derivative segment of The National Stock Exchange of India Ltd. At present, ISL accounts for approximately 3% of the total daily turnover of the Exchange with 32,359 client relationships and 70 branches spread across the country as of April 30, 2004.

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CHAPTER 1.7 HISTORY OF STOCK EXCHANGE
50

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HISTORY OF STOCK EXCHANGE
The only stock exchanges operating in the 19th century were those of Bombay set up in 1875 and Ahmadabad set up in 1894. These were organized as voluntary non-profit making organization of brokers to regulate and protect their interests. Before the control on securities trading became a central subject under the constitution in 1950, it was a state subject and the Bombay securities contract (CONTROL) Act of 1952 used to regulate trading in securities. Under this Act, the Bombay stock exchanges in 1927 and Ahmadabad in 1937. During the war boom, a number of stock exchanges were organized in Bombay, Ahmadabad and other centers, but they were not recognized. Soon after it became a central subject, central legislation was proposed and a committee headed by A.D. Gorwala went into the bill for securities regulation. On the basis of committee’s recommendations and public discussions the securities contracts (regulations) Act became law in 1956.

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DEFINITION OF STOCK EXCHANGE
“Stock exchange means anybody or individuals whether incorporated or not, constituted for the purpose of assisting, regulation or controlling the business of buying, selling or dealing in securities.” It is an association of member brokers for the purpose of self regulation and protecting the internets of its members. It can operate only if it is recognized by the Govt. under the securities contract (regulation) Act, 1956 the recognition is granted under section 3 of Act by the Central Govt. ministry of finance.

REGULATION OF STOCK EXCHANGE
The securities contract (regulation) is the basis of the stock exchange in India. No exchange can operate legally without the Govt. permission or recognition. Stock exchanges are given monopoly in certain areas under section 19 of the above Act to ensure that the control and regulation are facilitated. Recognition can be granted to a stock exchange provided certain condition are satisfied and the necessary information is supplied to the government. Recognition can also be withdrawn, if necessary. Where there are no stock exchanges, the government can license some of the brokers to perform the function of stock exchange in its absence.

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SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI)

SEBI was setup as an autonomous regulatory authority by the Government of India in 1988 “to perform the interest of investors in the securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto.” It is empowered by two Acts namely the SEBI act, 1992 and the securities contract (regulation) Act 1956 to perform the function of protecting investor’s right and regulating the capital market.

Bombay Stock Exchange
The stock exchange, Mumbai, popularly known as “BSE” was established in 1875 as “The Native share and stock broker association”, as a voluntary non-profit making association. It has an evolved over the year into its present status as the premiere stock exchange in the country. It may be noted that the stock exchanges the oldest one in the Asia, even older than the Tokyo Stock Exchange, which was founded in 1878. The Exchange, while providing an effective and transparent market for trading in securities, uphold the interest of the investors and ensure redressed of their grievances, whether against the companies or its own member brokers. It also strives to educate and enlighten the investors by making available necessary informative inputs and conducting investor education programmes. A governing board comprising of 9 elected directors, 2 SEBI nominees, 7 public representatives and an executive director is the apex body, which decides the policies and regulates the affairs of the exchanges.

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The executive director as the chief executive officer is responsible for the day today administration of the exchange. The average daily turnover of the exchange during the year 2008-09 (April-March) was Rs. 6984.19 crores and average number of daily trades 15.69 lakhs. Sensex is calculated using a market capitalization weighted method. As per this methodology, the level of the index reflects the total market value of all 30-component stocks form different industries related to particular base period. The total market value of a company is determined by multiplying the price of its stock by the number of shares outstanding. Statisticians call an index of a set of combined variables (such as price and number of shares) a composite Index. An Indexed number is used to represent the results of this calculation is order to make the value easier to work with the track over a time. It is much easier to graph a chart based on Indexed values than one based on actual values world over majority of the well-known Indices are constructed using “Market capitalization weighted method”. In practice, the daily calculation of SENSEX is done dividing the aggregate market value of the 30 companies in the Index Divisor. The keeps the Index comparable over a period or time and if the reference point for the entire Index maintenance adjustments. SENSEX is widely used to describe the mood in the Indian Stock Markets. Base year average is changed as per the formula new base year average = old base year average* (new market value/old market value).

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National Stock Exchange
The NSE was incorporated in Now 1992 with an equity capital of Rs. 25 crores. The

international securities consultancy (ISE) of Hong Kong has helped in setting up NSE. ISE has prepared the detailed business plans and installation of hardware and software systems. The promotions for NSE were financial institutions, insurance companies, banks an SEBI capital market ltd., Infrastructure leasing and financial services ltd. and stock holding corporation ltd. It has been set up to strengthen the move towards professionalization of the capital market as well as provide nation wide securities trading facilities to investors. NSE is not an exchange in the traditional sense where brokers own and mange the exchange. A two tier administrative set up involving a company board and a governing abroad of the exchange is envisaged. NSE is a national market for share PSU bonds, debentures and government securities since infrastructure and trading facilities are provided. The base period for the close of prices on Nov 3, 1995, which makes one year of completion of operation of NSE’s capital market segment. The base value of the Index has been set at 1000. At present, there are 24 stock exchanges recognized under the securities contact (regulation) Act, 1956.

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CHAPTER 1.8 PRODUCTS & SERVICES

57

FUNCTIONAL AREAS OF INDIA INFOLINE

The product range offered by India Infoline includes

A. Equities
B. Portfolio Management Service

C. Research D. Commodities E. Mortgages F. Invest Online G. Insurance

A) EQUITIES
India Infoline provided the prospect of researched investing to its clients, which was hitherto restricted only to the institutions. Research for the retail investor did not exist prior to India Infoline. India Infoline leveraged technology to bring the convenience of trading to the investor’s location of preference (residence or office) through computerized access.

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B) PORTFOLIO MANAGEMENT SERVICE
Our Portfolio Management Service is a product wherein an equity investment portfolio is created to suit the investment objectives of a client. We at India Infoline invest your resources into stocks from different sectors, depending on your risk-return profile. This service is particularly advisable for investors who cannot afford to give time or don't have that expertise for day-to-day management of their equity portfolio.

C) RESEARCH

Sound investment decisions depend upon reliable fundamental data and stock selection techniques. India Infoline Equity Research is proud of its reputation for, and we want you to find the facts that you need. Equity investment professionals routinely use our research and models as integral tools in their work. They choose Ford Equity Research when they can clear your doubts.

D) COMMODITIES
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India Infoline’s extension into commodities trading reconciles its strategic intent to emerge as a one-stop solutions financial intermediary. Its experience in securities broking has empowered it with requisite skills and technologies. The Company’s commodities business provides a contra-cyclical alternative to equities broking. The Company was among the first to offer the facility of commodities trading in India’s young commodities market (the MCX commenced operations only in 2003). Average monthly turnover on the commodity exchanges increased from Rs 0.34 bn to Rs 20.02 bn. The commodities market has several products with different and non-correlated cycles. On the whole, the business is fairly insulated against cyclical gyrations in the business.

E) MORTGAGES
During the year under review, India Infoline acquired a 75% stake in Moneytree Consultancy Services to mark its foray into the business of mortgages and other loan products distribution. The business is still in the investing phase and at the time of the acquisition was present only in the cities of Mumbai and Pune. The Company brings on board expertise in the loans business coupled with existing relationships across a number of principals in the mortgage and personal loans businesses. India Infoline now has plans to roll the business out across its panIndian network to provide it with a truly national scale in operations.

F) INVEST ONLINE
India Infoline has made investing in Mutual funds and primary market so effortless. All you have to do is register with us and that’s all. No paperwork no queues and No registration charges

G ) INSURANCE
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An entry into this segment helped complete the client’s product basket; concurrently, it graduated the Company into a one-stop retail financial solutions provider. To ensure maximum reach to customers across India, we have employed a multi pronged approach and reach out to customers via our Network, Direct and Affiliate channels. Following the opening of the sector in 1999-2000, a number of private sector insurance service providers commenced operations aggressively and helped grow the market. The Company’s entry into the insurance sector derisked the Company from a predominant dependence on broking and equity-linked revenues. The annuity based income generated from insurance intermediation result in solid core revenues across the tenure of the policy.

FUNDAMENTAL INFORMATION
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Under this parameter the company’s share is compared with the industry and market which is based on the following parameters: Revenue: Income generated from sales of the product. Market Capital : Number of shares * market price. Price/Sales: Stock's current price / revenue per share

SCHEDULE OF CHARGES
NSDL CDSL

Documents required:
1) Residence Proof 2) Identity Proof 3) Bank A/C Proof

D. EQUITY & DERIVATIVE
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Equity Business caters:  Needs of independent investors.  Active traders.  Non-Resident Indian (NRI) investors.

India Infoline offers:
 Broker assisted trade execution.  Automated online investing.  Access to all IPO's.

India Infoline offers the purchase and sale of securities, which includes Equity, Derivatives and Commodities Instruments listed on National Stock Exchange of India Ltd (NSEIL), The Stock Exchange, Mumbai (BSE) and NCDEX.

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CHAPTER 1.9 TYPES OF ACCOUNT

TYPES OF ACCOUNTS
 Investor Terminal : Investors/ Students
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 Trade Terminal : Day Trader/ HNI’s

All of this comes to you backed by your Relationship Manager available to you 24x7.

 India Infoline is one of India's leading retail financial services company with 177 locations spread across 19 States.  Over 4400 Client Relationship Managers are dedicated to serving your unique needs.  Is complemented by our knowledgeable and customer focussed Relationship Managers.  Provides our clients with real-time service & 24/7 access to all information and products.

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PRICING FOR RETAIL CLIENTS

Investor Terminal

•De-mat A/C Opening Charge: Rs5500 + Rs 250 For life time.

• Margin Money: Rs 250

•Min Margin Retainable: Rs 1000

•Brokerage: Trading 0.05% each side + ST Delivery 0.50% each side + ST

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PRICING FOR HNI CLIENTS
Trader Terminal

De-mat A/C opening charge: Rs5500

•Initial Margin: Rs 100000 (Compulsory)

•Brokerage: Trading 0.05% each side + ST Delivery 0.50% each side + ST (Negotiable to 0.05% each side & 0.50%)

•Account Access Charges NIL

•Min Account Balance Concept of Min Rs 1,000 to be maintained in form of cash / securities to keep account active. This can be withdrawn only on closure of account.

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SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI)
SEBI is a regulatory governing body of security market. The SEBI Act 1992 was enacted to empower SEBI with statutory powers for: a) Protecting the interests of investors in securities. b) Promoting the development of the securities market. c) Regulating the securities market. Its regulatory jurisdiction extends over corporate in the issuance of capital and transfer of securities. It has powers to register and regulate all the market all market intermediaries and also to penalize them in case of violations of the provisions of the ACT, rules and regulations made there under. SEBI has a full autonomy and authority to regulate and develop an orderly securities market.

\

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Financial market can be divided into following four sub-markets

Financial Market

Money Market

Capital Market

Primary Market

Capital Market

Secondary Market

Capital Market

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Primary Market
It provides opportunity to issuers of securities government as well as corporate to raise resources to meet their requirements of investments. In this market companies issue fresh security sin exchange of funds through public issues or private placements. The market design for primary market is provided in the provision of Companies Act, 1956 which deals with issues, listing and allotment of securities. The investors have to apply the shares by filling the application form issue by the company along with the application money. Company can issue shares at face value, at premium or at discount. Another method of pricing which is now days common is issuing the securities through online system of the stock exchange. The company is required to enter in to an agreement with the stock exchanges which have the requisite system for online offer of securities.

The advantages for this new system are:(a) (b) (c) The investors part with money only after allotment. It eliminates refunds except in case of direct applications. It reduces the time taken for issue process.

Secondary Market
Secondary market is the place for sale and purchase of existing securities. It enables an investor to adjust his holdings of securities in response to changes in his assessment about risk and return. It essentially comprises of the stock exchanges which provide platform for trading of securities and a host of intermediaries who assist in trading of securities and clearing and settlement of trades.

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What is an Index?
To understand the use and functioning of the index derivatives markets, it is necessary to understand the underlying index. A stock index represents the change in value of a set of stocks, which constitute the index. A market index is very important for the market players as it acts as a barometer for market behavior and as an underlying in derivative instruments such as index futures.

The Sensex and Nifty
In India the most popular indices have been the BSE Sensex and S&P CNX Nifty. The BSE Sensex has 30 stocks comprising the index which are selected based on market capitalization, industry representation, trading frequency etc. It represents 30 large well-established and financially sound companies. The Sensex represents a broad spectrum of companies in a variety of industries. It represents 14 major industry groups. Then there is a BSE national index and BSE 200. However, trading in index futures has only commenced on the BSE Sensex. While the BSE Sensex was the first stock market index in the country, Nifty was launched by the National Stock Exchange in April 1996 taking the base of November 3, 1995. The Nifty index consists of shares of 50 companies with each having a market capitalization of more than Rs 500 crore.

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CHAPTER 2 RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY

Topic: “Customer Study On Security Trading” Objective: To study the satisfaction level while security trading.

Hypothesis:

H1: Recommendation to friend is dependent on the service quality.

H2: More the frequency of trading higher is the percentage of earning traded.

H3: Higher the Respondent higher is the investment on trading.

H4: Higher the service quality higher the satisfaction level. Research Design: Descriptive
Sampling Design Sample Size Sample Unit Data Collection Method Survey Area Data Analysis : : : : : : hypothesis. 73 Convenience 100 Individual involved in Security Trading. Primary Survey, Questionnaire Method. Noida.(NCR) Using SPSS (12 version) for f-test & testing

CHAPTER 2.1 OBJECTIVES OF RESEARCH

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OBJECTIVES OF THE RESEARCH
1) To study investor’s behavior towards different Factors and service quality such as Convenience, etc. of investment in Equities. 2) To study the issues and challenges that investor’s face while making investment in share market. 3) To study the preferences and perceptions of investors regarding various financial products from the stable of India Infoline Securities Ltd. so that the firm can benefit from the findings of the report in launching any new investment product in future. 4) To study the customer behavior in respect of investment in shares. 5) To understand the satisfaction level of clients with India Infoline regarding service provided by staff. 6) To understand the satisfaction level of clients with India Infoline regarding trade confirmation. 7) To understand the what type of trading should be provided to the customers. 8) To learn about the different aspects of the customers. 9) To study the satisfaction level of brokerage. Privacy, Timesaving, User- friendly

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10) To understand the satisfaction level of clients with India Infoline regarding tips. 11) To understand the satisfaction level of clients with India Infoline regarding trade confirmation. 12) To study the satisfaction level of flexibility provided by India Infoline.

CHAPTER 2.2 LIMITATIONS OF THE STUDY

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LIMITATIONS OF THE STUDY
1) To study share market is a very vast topic and the search is just limited to a small portion. 2) Due to the reluctant nature of the respondents it was not an easy task to collect relevant information from them. 3) Sometime it was difficult to make the respondents understand the purpose of the survey. 4) Busy schedule of the respondents was also a major hindrance to establish a contact with them. 5) It may be possible the information provided by them is not true.

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CHAPTER 3 DATA ANALYSIS & INTERPRETATION

78

DATA ANALYSIS AND INTERPRETATION
ANALYSIS OF FREQUENCIES: 1). Investment trading: Investment Preference
Freque ncy Valid strongly disagree Disagree Agree strongly agree Total 10 23 37 30 100 Percent 10.0 23.0 37.0 30.0 100.0 Valid Percent 10.0 23.0 37.0 30.0 100.0 Cumulati ve Percent 10.0 33.0 70.0 100.0

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Investment preference
40

30

20

10

Percent

0 strongly dissaggre Disagree agree strongly agree

Investment preference

Interpretation: out of 100 respondents surveyed 67% people believe that they do prefer most of investment in security trading.

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2) Convenience Preference

Convenience Preference
Freque ncy Valid not importan t partially importan t Importan t most importan t Total 11 11 35 43 100 Percent 11.0 11.0 35.0 43.0 100.0 Valid Percent 11.0 11.0 35.0 43.0 100.0 Cumulati ve Percent 11.0 22.0 57.0 100.0

convenience preference
50

40

30

20

Percent

10

0 not important partilly important important most important

convenience preference

Interpretation: Out of 100 respondent surveyed 78%peopel believe that convenience is the important factor for security trading, while rest 22% believes that it is not an important factor.

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3) Privacy Preference Privacy Preference
Frequen cy Valid not important partially important Important most important Total 22 18 20 40 100 Percent 22.0 18.0 20.0 40.0 100.0 Valid Percent 22.0 18.0 20.0 40.0 100.0 Cumulativ e Percent 22.0 40.0 60.0 100.0

privacy preference
50

40

30

20

Frequency

10

0 not important partially important important most important

privacy preference

Interpretation: in the question of privacy preference 60% of the respondent believe that they need privacy in their transactions, while other 40% differ from them.

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4) Time Saving Preference

Time Saving Preference
Frequen cy Valid not important partially important Important Most important Total 8 23 39 30 100 Valid Percent 8.0 23.0 39.0 30.0 100.0 Cumulati ve Percent 8.0 31.0 70.0 100.0

Percent 8.0 23.0 39.0 30.0 100.0

time saving preference
50

40

30

20

10

Percent

0 not important partially important important most important

time saving preference

Interpretation: 69% of the respondent favor this factor that time saving is important for their security trading, while 23% says that it is partially important for security trading.

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5) User Friendly Preference

User Friendly Preference
Frequen cy Valid not important partially important Important most important Total 7 24 40 29 100 Valid Percent 7.0 24.0 40.0 29.0 100.0 Cumulativ e Percent 7.0 31.0 71.0 100.0

Percent 7.0 24.0 40.0 29.0 100.0

user friendly preference
50

40

30

20

10

Percent

0 not important partially important important most important

user friendly preference

Interpretation: in the factor of user friendliness 69% respondent mark that it is important factor in security trading, mean while 24% and 7% tick the mark on partially and not important.

6) Brokerage Preferring
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Brokerage Preferring
Frequen cy Valid not important partially important Important most important Total 7 19 28 46 100 Percent 7.0 19.0 28.0 46.0 100.0 Valid Percent 7.0 19.0 28.0 46.0 100.0 Cumulativ e Percent 7.0 26.0 54.0 100.0

brokerage preferring
50

40

30

20

10

Percent

0 not important partially important important most important

brokerage preferring

Interpretation: brokerage is the factor which highest response of importance i.e. 74% while got only 24%.

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7) Exposure Preferring

Exposure Preferring
Frequen cy Valid not important partially important Important most important Total 2 22 38 38 100 Percent 2.0 22.0 38.0 38.0 100.0 Valid Percent 2.0 22.0 38.0 38.0 100.0 Cumulativ e Percent 2.0 24.0 62.0 100.0

exposure prefering
50

40

30

20

10

Percent

0 not important partially important important most important

exposure prefering

Interpretation: Out of 100 respondent surveyed 76% people believe that exposure is the important factor for security trading, while rest 22% believes that it is not an important factor.

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8) Guidance Preferring

Guidance Preferring
Frequen cy Valid not important partially important Important most important Total 11 26 41 22 100 Percent 11.0 26.0 41.0 22.0 100.0 Valid Percent 11.0 26.0 41.0 22.0 100.0 Cumulativ e Percent 11.0 37.0 78.0 100.0

guidance prefering
50

40

30

20

10

Percent

0 not important partially important important most important

guidance prefering

Interpretation: in the factor of guidance 63% respondent mark that it is important factor in security trading, mean while 26% and 11% tick the mark on partially and not important.

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9) Research Report Preferring

Research Report Preferring
Frequen cy Valid not important partially important Important most important Total 5 23 45 27 100 Percent 5.0 23.0 45.0 27.0 100.0 Valid Percent 5.0 23.0 45.0 27.0 100.0 Cumulativ e Percent 5.0 28.0 73.0 100.0

research report prefering
50

40

30

20

10

Percent

0 not important partially important important most important

research report prefering

Interpretation: under the various service factors, research reports got 72% importance out of 100.

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10) Dial Up Trade Preferring Dial Up Facility Preferring
Frequen cy Valid not important partially important Important Important Total 15 34 32 19 100 Percent 15.0 34.0 32.0 19.0 100.0 Valid Percent 15.0 34.0 32.0 19.0 100.0 Cumulativ e Percent 15.0 49.0 81.0 100.0

dial up facility prefering
40

30

20

10

Percent

0 not important partially important important important

dial up facility prefering

Interpretation: 49% people says that dial up facility is not or partially important for them while rest 51% says that it is important for them.

89

11) Trading Information Preferring

Trading Information Preferring

Frequen cy Valid not important partially important Important most important Total 10 25 34 31 100

Percent 10.0 25.0 34.0 31.0 100.0

Valid Percent 10.0 25.0 34.0 31.0 100.0

Cumulativ e Percent 10.0 35.0 69.0 100.0

trading information prefering
40

30

20

10

Percent

0 not important partially important important most important

trading information prefering

Interpretation: trading information is important for 65% out of 100% respondents while other 25% and 10% says it is partially and not important for them.

90

12) Convenience Rating

Convenience Rating
Frequen cy Percent 6 6.0 18 18.0 47 47.0 29 100 29.0 100.0 Valid Cumulativ Percent e Percent 6.0 6.0 18.0 24.0 47.0 71.0 29.0 100.0 100.0

Valid

Poor Fair Good Excell ent Total

convenience rating
50

40

30

20

10

Percent

0 poor f air good excellent

convenience rating

Interpretation: 47%% people says that convenience of their existing security trading firm is good, 29% says its excellent, mean while rest says its fair or poor.

91

13)

Privacy Rating
Frequen cy Percent 3 3.0 28 28.0 48 48.0 21 100 21.0 100.0 Valid Cumulativ Percent e Percent 3.0 3.0 28.0 31.0 48.0 79.0 21.0 100.0 100.0

Valid

Poor Fair Good Excell ent Total

privacy rating
60

50

40

30

20

Percent

10

0 poor fair good excellent

privacy rating

Interpretation: privacy level is good says by 48% respondent, of their existing security trading firm, 21% says it’s excellent, while 28% says it fair and rest says its poor.

92

14) Time Saving Rating Time Saving Rating
Frequen cy Percent 7 7.0 30 30.0 40 40.0 23 100 23.0 100.0 Valid Cumulativ Percent e Percent 7.0 7.0 30.0 37.0 40.0 77.0 23.0 100.0 100.0

Valid

Poor Fair Good Excell ent Total

time saving rating
50

40

30

20

10

Percent

0 poor fair good excellent

time saving rating

Interpretation: privacy level is good says by 40% respondent, of their existing security trading firm, 23% says it’s excellent, while 30% says it fair and rest says its poor.

93

15) Brokerage Service Rating

Brokerage Service Rating
Frequen cy Percent 1 1.0 13 13.0 37 37.0 49 100 49.0 100.0 Valid Cumulativ Percent e Percent 1.0 1.0 13.0 14.0 37.0 51.0 49.0 100.0 100.0

Valid

Poor Fair Good Excell ent Total

brokerage service rating
60

50

40

30

20

Percent

10

0 poor fair good excellent

brokerage service rating

Interpretation: brokerage service is excellent says by 49% respondent, of their existing security trading firm, 37% says it’s good, while 13% says it fair and rest says its poor.

94

16) Exposure Rating Exposure Rating
Frequen cy Percent 3 3.0 21 21.0 42 42.0 34 100 34.0 100.0 Valid Cumulativ Percent e Percent 3.0 3.0 21.0 24.0 42.0 66.0 34.0 100.0 100.0

Valid

Poor Fair Good Excell ent Total

exposure rating
50

40

30

20

10

Percent

0 poor fair good excellent

exposure rating

Interpretation: exposure is good says by 42% respondent, of their existing security trading firm, 34% says it’s excellent, while 21% says it fair and rest says its poor.

95

17) Guidance Rating

Guidance Rating
Frequen cy Percent 2 2.0 17 17.0 44 44.0 37 100 37.0 100.0 Valid Cumulativ Percent e Percent 2.0 2.0 17.0 19.0 44.0 63.0 37.0 100.0 100.0

Valid

Poor Fair Good Excell ent Total

guidance rating
50

40

30

20

10

Percent

0 poor fair good excellent

guidance rating

Interpretation: privacy level is good says by 44% respondent, of their existing security trading firm, 37% says it’s excellent, while 17% says it fair and rest says its poor.

96

18) Research Rating Research Rating
Frequen cy Percent 7 7.0 33 33.0 34 34.0 26 100 26.0 100.0 Valid Cumulativ Percent e Percent 7.0 7.0 33.0 40.0 34.0 74.0 26.0 100.0 100.0

Valid

Poor Fair Good Excell ent Total

research rating
40

30

20

10

Percent

0 poor fair good excellent

research rating

Interpretation: privacy level is good and excellent says by 60% respondent, of their existing security trading firm, 40% says it’s fair and poor.

97

19) Dial Up Facility Rating

Dial Up Facility Rating
Frequen cy Percent 19 19.0 30 30.0 32 32.0 19 100 19.0 100.0 Valid Cumulativ Percent e Percent 19.0 19.0 30.0 49.0 32.0 81.0 19.0 100.0 100.0

Valid

Poor Fair Good Excell ent Total

dial up facility rating
40

30

20

10

Percent

0 poor fair good excellent

dial up facility rating

Interpretation: privacy level is good and excellent says by 51% respondent, of their existing security trading firm, 49% says it’s fair and poor.

98

20) Trading Information Rating

Trading Information Rating
Frequen cy Percent 22 22.0 15 15.0 49 49.0 14 100 14.0 100.0 Valid Cumulativ Percent e Percent 22.0 22.0 15.0 37.0 49.0 86.0 14.0 100.0 100.0

Valid

Poor Fair Good Excell ent Total

trading information rating
60

50

40

30

20

Percent

10

0 poor fair good excellent

trading information rating

Interpretation: exposure is good says by 49% respondent, of their existing security trading firm, 14% says it’s excellent, while 22% says it poor.

99

21) OftenYou Trade Often You Trade
Frequen cy Valid Occasion ally once a week 2-3 times/we ek every day Total 12 22 36 30 100 Percent 12.0 22.0 36.0 30.0 100.0 Valid Percent 12.0 22.0 36.0 30.0 100.0 Cumulativ e Percent 12.0 34.0 70.0 100.0

often u trade
40

30

20

10

Percent

0 occasionally once a w eek 2-3 times/w eek every day

often u trade

Interpretation: 36% people says that they trade 2-3 times in week, and 30% says they trade daily, while 22% and 12% says they trade once a week or occasionally. 100

22) Invest Of Trading

Invest Of Earning
Frequen cy Valid up to 5% 5-10% 1015% >15% Total 22 42 29 7 100 Percent 22.0 42.0 29.0 7.0 100.0 Valid Percent 22.0 42.0 29.0 7.0 100.0 Cumulativ e Percent 22.0 64.0 93.0 100.0

invest of earning
50

40

30

20

10

Percent

0 up to 5% 5-10% 10-15% >15%

invest of earning

Interpretation: most of the people say that they invest 5-15% their earning in security trading, while 22% say they invest only up to 5% and only 7% says they can invest more than 15%.

101

23) Service Quality Service Quality
Frequen cy Percent 8 8.0 30 30.0 44 44.0 18 100 18.0 100.0 Valid Cumulativ Percent e Percent 8.0 8.0 30.0 38.0 44.0 82.0 18.0 100.0 100.0

Valid

Poor Fair Good Excell ent Total

service quality
50

40

30

20

10

Percent

0 poor fair good excellent

service quality

Interpretation: service quality is good says by 44% respondent, of their existing security trading firm, 18% says it’s excellent, while 30% says it fair and rest says its poor.

102

24) Satisfaction Level Satisfaction Level
Frequen cy Percent 6 6.0 33 46 15 100 33.0 46.0 15.0 100.0 Valid Cumulativ Percent e Percent 6.0 6.0 33.0 46.0 15.0 100.0 39.0 85.0 100.0

Valid

Dissatisfied somewhat satisfied Satisfied highly satisfied Total

satisfaction level
50

40

30

20

10

Percent

0 dissatisfied somew hat satisfied satiesfied highly satiesfied

satisfaction level

Interpretation: 46% respondent are satisfied with their service provider and 33% says they are somewhat satisfied.

103

25) Recommend To Friend

Recommend To Friend
Frequen cy 35 65 100 Percent 35.0 65.0 100.0 Valid Cumulativ Percent e Percent 35.0 35.0 65.0 100.0 100.0

Valid No Yes Total

recommend to friend
70 60 50 40 30 20

Percent

10 0 no yes

recommend to friend

Interpretation: 65% respondent says they will recommend this trading firm to their friends and relatives.

104

26) Gender Of Respondent Gender Of Respondent
Frequen cy Percent 78 78.0 22 100 22.0 100.0 Valid Cumulativ Percent e Percent 78.0 78.0 22.0 100.0 100.0

Valid

Male Femal e Total

gender of respondent
100

80

60

40

Frequency

20

0 male female

gender of respondent

Interpretation: 78% of the respondents are male.

105

26) Age Of Respondent Age Of Respondent
Frequen cy Valid 20-34 years 35-49 years 50-64 years >65 years Total 45 33 18 4 100 Percent 45.0 33.0 18.0 4.0 100.0 Valid Percent 45.0 33.0 18.0 4.0 100.0 Cumulativ e Percent 45.0 78.0 96.0 100.0

age of respondent
50

40

30

20

10

Percent

0 20-34 years 35-49 years 50-64 years >65 years

age of respondent

Interpretation: 78% of the respondents of age between 20 to 49 do invest in shares.

106

27) Education Of Respondent Education Of Respondent
Frequen cy Valid High school under grad Grad pg/profes sional Total 4 2 39 55 100 Percent 4.0 2.0 39.0 55.0 100.0 Valid Percent 4.0 2.0 39.0 55.0 100.0 Cumulativ e Percent 4.0 6.0 45.0 100.0

education of respondent
60

50

40

30

20

Percent

10

0 high school under grad grad pg/professional

education of respondent

Interpretation: 94% of the respondents are highly educated.

107

28) Occupation Of Respondent

Occupation Of Respondent
Frequen cy Valid Govt service private service business Retired Total 11 45 28 16 100 Percent 11.0 45.0 28.0 16.0 100.0 Valid Percent 11.0 45.0 28.0 16.0 100.0 Cumulativ e Percent 11.0 56.0 84.0 100.0

occu of respondent
50

40

30

20

10

Percent

0 govt service private service business retired

occu of respondent

Interpretation: 73% of the respondents are from private sector and business.

108

29) Income Of Respondent

Income Of Respondent
Frequen cy Valid up to 15000 1500130000 3000145000 >45000 Total 28 38 29 5 100 Percent 28.0 38.0 29.0 5.0 100.0 Valid Percent 28.0 38.0 29.0 5.0 100.0 Cumulativ e Percent 28.0 66.0 95.0 100.0

income of respondent
40

30

20

10

Percent

0 up to 15000 15001-30000 30001-45000 >45000

income of respondent

Interpretation: 95% of the respondents are of income level less than 45000/-

109

CHAPTER 3.1 TESTING OF HYPOTHESIS

110

TESTING OF HYPOTHESIS

1) Recommendation to friends to depended on the service quality offered by company. Crosstabs

Case Processing Summary
Valid N above and below mean values of service quality * recommend to friend 100 Percent 100.0% Cases Missing Percen N t 0 .0% Total N 100 Percent 100.0%

Above and Below mean values of service quality * recommend to friend Crosstabulation Recommend to friend No Yes 18 20 47.4% 17 27.4% 35 35.0% 52.6% 45 72.6% 65 65.0%

above and below mean values of service quality

1.00

2.00

Total

Count % within above and below mean values of service quality Count % within above and below mean values of service quality Count % within above and below mean values of service quality

Total 38 100.0% 62 100.0% 100 100.0%

111

Chi-Square Tests
Asymp. Sig. (2Value Pearson Chi4.121(b) Square Continuity 3.291 Correction(a) Likelihood Ratio Fisher's Exact Test Linear-by-Linear 4.080 Association N of Valid Cases 100 1 .043 4.080 1 1 .070 .043 .053 .035 1 .042 Df sided) Exact Sig. (2sided) Exact Sig. (1sided)

a Computed only for a 2x2 table b 0 cells (.0%) have expected count less than 5. The minimum expected count is 13.30.

H1: The above hypothesis is accepted at the significance level of 0.042 (p=4.121).Thus recommendation for security trading depends on service quality offered by the company.

112

2) More the frequency of trading higher is the percentage of earning traded.

Correlations
Invest of Often You earning Invest of earning Pearson 1 Correlation Sig. (2-tailed) N Pearson . 100 .368(**) .000 100 1 . 100 trade

often u trade

.368(**) Correlation Sig. (2-tailed) .000 N 100 **Correlation is significant at the 0.01 level (2-tailed).

H2: The above hypothesis is accepted at the significance level of 0.000 (p=0.368).thus higher the frequency of trading higher is the investment on trading.

113

3) Higher the no. of respondent higher will be the investment on trading.

Correlations
Invest of earning Invest of earning Pearson 1 Correlation Sig. (2-tailed) N Pearson . 100 .395(**) .000 100 1 . 100 Income of respondent

income of respondent

.395(**) Correlation Sig. (2-tailed) .000 N 100 ** Correlation is significant at the 0.01 level (2-tailed).

H3: The above hypothesis is accepted at the significance level of 0.000 (p=0.395). The correlation of 0.395 can be attributed as moderate and thus it is believed that higher the no. of respondent higher will be the investment on trading.

114

4) Higher the service quality higher the satisfaction level .

Correlations
Service quality service quality Pearson 1 Correlation Sig. (2-tailed) N satisfaction level Pearson . 100 .721(**) Correlation Sig. (2-tailed) .000 N 100 **Correlation is significant at the 0.01 level (2-tailed). .721(**) .000 100 1 . 100 Satisfactio n level

H4: The above hypothesis is accepted at 0.00 level of significance (p=0.721). A high degree of correlation is found at 0.721 which shows that higher the service quality, higher will be the satisfaction level.

115

CHAPTER 4 CONCLUSION

CONCLUSION

116

The perception of people about the share market is relatively weak but they can be influenced by giving them appropriate information about how to invest, when to invest, so that there confidence will build up.

There is a lot of scope for trading companies in respect of investment they get from their client, which can be improved by giving them better service facilities, which will not only increase their investment but also would result in their recommendation about investing through their company in share market.

Those who are already trading do not have complete information about the basic terms related to the market which opens up the gate for the companies to increase their awareness by giving them full information about the market through seminars or conference.

117

CHAPTER 4.1 RECOMMENDATION

RECOMMENDATIONS
 INTRODUCTION PROGRAMS must be held for the sales teams before letting them go into the field. In these induction classes the experienced sales staff employees should share their valuable live

118

experiences and knowledge, which they have experienced while in field.  Weekly magazines must be published and distributed to the investors that can help them for making better investments.  Sales team must be fully equipped with latest technology such as using Laptop that can be used for making presentation to the customers especially to the corporate clients about their product and services provided by them.  Make your site user friendly so that more and more people know about trading and do the same also.  Advertisement through Canopy, help to generate leads.  Company should advertise with a concern that has a brand name in the market.

119

Other Recommendations
Strong Need Of Brand Building Promotional Strategies Solid Network Required To Develop The Business Further Make The Branch Self Informative The RM should provide an in depth demonstration of the software and client should be assisted regularly. Provision of a manual for online clients for ease of operation. Time lag between the complaints put and follow up should be reduced. Database should be verified properly, so that repeated entries do not occur. This will reduce inconvenience to the clients, who complained about multiple calls received.

120

Promotional Strategies

 Press publicity:  Outdoor publicity:

Press Publicity:
    

Paper inserts. Advertisements in newspaper (local and national). Interest cards distribution. Mailers/personal invitations to selective section of the society. Leaflets

Outdoor Publicity:
   

Banners in commercial areas and prime sites. Air balloons at shopping complex. Bus stands shelters. Off site ATM for developing business

121

CHAPTER 4.2 QUESTIONAIRRE

122

QUESTIONAIRRE Customer Study on Security Trading
Tick all relevant boxes.
1. I prefer to do most of my investments in securities? Agree Satisfied Disagree No Need

123

2.

The Trading firm you own a D-Mat A/c.

Trading Firm India Bulls India Infoline ICICI Direct Kotak Securities ShareKhan

D-Mat A/c

The A/c you prefer to use mostly ___________________

124

3.

How important is each of the following in your preference for

security trading? FACTORS Convenience Privacy Time saving User friendly Most Important Important Partially Important Not Important

125

4.

How Important are each of the following services for preferring a

particular security trading company? SERVICES Brokerage Exposure Guidance Research Report Dial up trade facility Information about Trading Most Important Important Partially Important Not Important

5.

How do you rate each of the following facilities provided by your security-trading firm?

126

FACTORS Convenience Privacy Time saving User friendly

Excellent

Good

Fair

Poor

127

6.

How do you rate each of the following services provided by your

trading company?

SERVICES Brokerage Exposure Guidance Research Report Dial up trade facility Information about Trading

Excellent

Good

Fair

Poor

7.

How often do you trade?

128

Every day

2-3 times/wee k

Once a week

Occasionally

8.

What percentage of your earnings do you invest in share trading?

129

Up to 5%

5-10%

10-15%

15-20% or more

9.

How do you rate the service quality of your security-trading firm? 130

Excellent

Good

Fair

Poor

131

10.

To what extent are you satisfied by the services offered by your security-trading firm?

Highly Satisfied

Satisfied

Somewhat Satisfied

Dissatisfied

11.

Would you like to recommend your trading firm to your friends

and relatives? 132

Yes

No

133

CHAPTER 5 MY EXPERIENCE DURING TRAINING PERIOD

MY EXPERIENCE DURING TRAINING PERIOD
134

The 14th of June2010, I was introduced to senior officials, at India Infoline and from the very first day I was believed to be Sincere and Responsible. I along with other trainees underwent a theoretical training for a day in which I was made aware of India Infoline Ltd- as a Share Trading and Broking company, its history and formation and its financial products. I along with the other trainee was taught what is a De-mat Account, why an individual should have an account, and last but not the least how to open a De-mat Account. After that I was also given a demo session of telecalling to equip our self for cold calling. The very next day I was very much comfortable with the environment and products of India Infoline and I was also given the responsibility to make some cold and reference calls, in order to do telephonic marketing of De-mat Account after a week.

During this project, I was then given practical exposure by gaining an opportunity to sit in front of the trading terminal and watch and learn how online trading is done and various aspects related to it. It was a wonderful experience to observe how market behaves and also how the jobbers react in response to the fluctuations in the market in order to benefit both the company as well as the customers. After observing how the market is performing and gaining knowledge about key terms related to this field like- limit, exposure, margin call, circuit(upper and lower), brokerage charges, put and call options, I was given somewhat more practical exposure as I was sent to a lead call with one of my seniors to observe and learn how the deal gets finalized and what sort of questions a client can ask and in which manner we should response. But even though first few days at India Infoline was really a struggle period for me and then gradually as I kept on gaining knowledge and experience about its financial products I started performing well and soon I was able to develop a network of some prospective clients for my company.

135

CHAPTER 6 BIBLIOGRAPHY

136

BIBLIOGRAPHY
1) Tversky , A & Kahneman , D.(1974). “Judgement under uncertainity: heuristics and biases”. 2) Taleb , Nassim Nicholaas (2008). Fooled by Randomness: The Hidden Role of Chance in life and in the Markets, 2nd edition Random House. 3) Hagstrom , Robert G (2001). The Essential Buffett: Timeless Principles for the New Economy. New York : John Wiley & Sons. 4) Mandelbrot , Benoit & Hudson , Richard L. (2006). The Misbehaviour of Markets: A Fractal View of Financial Turbulance, Annot Edition. 5) Cutler, D. Poterba, J. & Summers, L.(1991). “ Speculative dynamics”. Review of Economics Studies 58. 6) Murray Sayle, “Japan Goes Dutch”, London Review of books xxiii.7. April 5,2001. 7) Ortega, Edgar, and Yalman Onaran.”UBS, Goldman Threaten NYSE, Nasdaq With Rival Stock Markets.” Bloomberg , 4 December 2006. 8) Stephen Morris and Hyun Song Shin, Oxford Review of Economic Policy, vol 15, no 3, 1999. 9) Sergey Perminov, Trendocracy and Stock Market Manipulations (2008, ISBN 9781435752443). 10) Shiller, Robert (2005).Irrational Exuberance (2nd Edition).Princeton University Press. 11) Finance.(2009). In Encyclopedia Britannica. Retrieved June 23, 2009, from Encyclopedia Britannica Online: Finance. 12) Govt, P .et al .1961. Finance. Webster’s Third New International Dictionary of the English Language Unabridged. Springfield, Massachusetts: G & C.Merriam Company. 137

13) NCFM W. Breen,” Low Price-Earnings Ratio & Industry Relatives”, Financial Analysts’ Journal, July-February 1968. 14) W. Breen & Savage J.” Portfolio Distribution & Security Selection Models”, Journal of Finance, December 1968. 15) S. Basu, ”Investment Performance of Common stocks in Relation to Their Price Earning Ratios: A Test of the Efficient Market Hypothesis “, Journal of Finance, June 1977. 16) Basu, Sanjoy, “ The Relationship between Earnings Yield, market Value and Return for NYSE Common stocks: Further Evidence.” Journal of Financial Economics 12 (1983). 17) Carney, John (June 26, 2009). “UBS Accuses Three Quant Traders Of Stealing Its Secret Code”. 18) Geoffrey Rogow, Rise of the (Market) Machines, The Wall Street Journal, June 19, 2009. 19) Enter algorithmic trading systems race or lose returns warns, Financial Times, October 2, 2006. 20) The Associated Press, July 2, 2007 Citigroup to expand electronic trading capabilities by buying Automated Trading Desk, accessed July 4, 2007. 21) C Fieldler, design high frequency system (algorithmic trading system),dbcoretech .com, June. 2010. 22) Pleasures and pains of Cutting-Edge Technology Mar 19, 2007. 23) “LSE leads race for quicker trades” by Alister MacDonald The Wall Street Journal Europe , June 19, 2007. 24) Miners superfast shares warning BBC News, Tuesday 3 November 2009. 138

25) The Financial Times, April 16, 2007. 26) Citigroup to expand electronic trading capabilities by buying Automated Trading Desk” , The Associated Press, July 2 , 2007. 27) Rob Curren, Watch Out for Sharks in Dark Pools, The Wall Street Journal, August 19, 2008. 28) Artificial Intelligence applied heavily to picking stocks by Charles Duhigg, November 23, 2006. 29) “Trading with the help of ‘guerrillas’ and ‘snipers’, Financial Times, March 19, 2007. 30) “Opalesque Exclusive: High frequency trading under the microscope” by Opalesque , 4 August 2009. 31) “Hurrying into the Next Panic” , New York Times: by Wilmott & Paul , July 29, 2009. 32) Critical Market Crashes by Sornette , August 13, 2003. 33) A London Hedge Fund That Opts for Engineers, Not MBA.’s By Heather Timmons ,August 18 , 2006. 34) “Algorithmic Trading, Ahead of the tape”, By The Economist , June 23 , 2007. 35) Moving markets Shifts in trading patterns are making technology ever more important by Economist , February 2 , 2006. 36) The Real Story of trading Software Espionage By Rob Iati, July 10 , 2009. 37) “ A Relationship Approach , 2nd Edition By Svend Hollenson March 23, 2010. 38) Marketing in the public sector By Nancy Lee & Philip Kotler March 23 , 2010. 139

39) International Marketing & Export Management, 2nd Edition , By Gerald Albaum, Edwin Duerr , May 10, 2008. 40) (About The India Infoline Company) www.indiainfoline.com 41) (About The National Stock Exchange) www.nseindia.com 42) (About Bombay Stock Exchange) www.bseindia.com 43) (About Security Exchange Board Of India) www.sebi.gov.in 44) (About Money Controlling at Trading) www.moneycontrole.com 45) Magazine Business Today 2nd Edition July 23 , 2000 46) Newspaper Economic Times Of India September 11, 2001 47) India Infoline Brochures and Mannuals June 22 , 2002 48) http://www.seekingalpha.com 49) http://www.CIA.gov 50) http://www.investopedia.com 51) http://www.belgiumview.com 52) http://www.charitytimes.com 53) http://www.ncfm.com 54) http://www.economist.com 55) http://www.opalesque.com 56) http://www.tempelhove.de/en/scientific.in 57) http://www.nytimes.com 58) http://www.ftknowledge.com 59) http://www.amazon.com 140

60) http://www.businessinsider.com 61) http://www.iht.com 62) http://www.afajof.org/afa/forthcoming/.pdf 63) http://www.economics.com 64) http://www.sciencedirect.com 65) http://www.business world.com 66) http://www.5paisa.com 67) http://www.scribed.com 68) http://www.googlescholar.com 69) http://www.wikipedia.com 70) http://www.google.com 71) http://www.mbafantasy.com 72) http://www.indiabulls.com 73) http://www.karby.com 74) http://www.sharekhan.com 75) http://www.publicradio.org 76) http://www.cnbc.com 77) http://www.webcitation.org 78) http://www.advancetrading.com 79) http://www.business.timesonline.co.uk 80) http://www.reuters.com 81) http://www.bis.org 141

CHAPTER 7 ANNEXURE

142

ANNEXURE
Please fill the following particulars
Name ________________________ Male Phone No______________ Gender Female 1) Age (in Years) 20-34 years 2) Education High School Under Grad. Grad. PG/ Professional 35-49 years 50-64 years 65+

3)
Govt. Service Up to 15000

Occupation Private Service Business Retired

4) Income (in Rs. per Month) 1500130000 3000145000 Above 45000

143

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