PROJECT SYNOPSIS

Study of “INVESTOR INVESTMENT BEHAVIOR IN STOCK

MARKET” with reference to Geojit financial services

Submitted By:

Enrollment No:

Under The Guidance Of:

Submitted To:

INDIRA Gandhi National Open University

In partial fulfillment for the award of the Master’s Degree in Business

Administration (Finance)
 INTRODUCTION

The Securities Contracts (Regulation) Act, 1956, has defined Stock Exchange as an
"association, organization or body of individuals, whether incorporated or not,
established for the purpose of assisting, regulating and controlling business of
buying, selling and dealing in Securities".

Stock exchange as an organized security market provides marketability and price

continuity for shares and helps in a fair evaluation of securities in terms of their
intrinsic worth. Thus it helps orderly flow and distribution of savings between
different types of investments. This institution performs an important part in the
economic life of a country, acting as a free market for securities where prices are
determined by the forces of supply and demand. Apart from the above basic
function it also assists in mobilizing funds for the Government and the Industry
and to supply a channel for the investment of savings in the performance of its
functions.

The Stock Exchange benefits the entire community in a variety of way. It enables
the producers to raise capital which directly and indirectly gives gainful
employment to millions of people on the one hand and helps consumers to get the
variety of goods needed by them on the other. It provides opportunities to savers to
store the value either as temporary abode of purchasing power or as a permanent
abode of purchasing power in the form of financial assets. It also helps the
segments of the savers who put their savings in commercial firms and non-banking
financial intermediaries because these institutions avail themselves of the services
of Stock Exchange to invest the money thus collected.
Trading in Indian stock exchanges are limited to listed securities of public limited
companies. They are broadly divided into two categories, namely, specified
securities (forward list) and non-specified securities (cash list).

Two types of transactions can be carried out on the Indian stock exchanges: (a)
spot delivery transactions "for delivery and payment within the time or on the date
stipulated when entering into the contract which shall not be more than 14 days
following the date of the contract” and (b) forward transactions "delivery and
payment can be extended by further period of 14 days each so that the overall
period does not exceed 90 days from the date of the contract". The latter is
permitted only in the case of specified shares.

Regulations have been framed to prevent insider trading as well as unfair trade
practices. The acquisitions and takeovers are permitted in a well-defined and
orderly manner. The companies are permitted to buy back their securities to
improve liquidity and enhance the shareholders’ wealth.
 Introduction to the organization

Mr. C.J. George and Mr. Ranajit Kanjilal founded Geojit as a partnership firm in
the year 1987. In 1993, Mr. Ranajit Kanjilal retired from the firm and Geojit
became a proprietary concern of Mr. C .J. George. In 1994, it became a Public
Limited Company by the name Geojit Securities Ltd. The Kerala State Industrial
Development Corporation Ltd. (KSIDC), in 1995, became a co-promoter of Geojit
by acquiring 24% stake in the company, the only instance in India of a government
entity participating in the equity of a stock broking company. Geojit listed at The
Stock Exchange, Mumbai (BSE) in the year 2000. In 2003, the Company was
renamed as Geojit Financial Services Ltd. (GFSL). The board of the company
consists of professional directors; including a Kerala government nominee with
2/3rd of the board members being Independent Directors. With effect from July
2005, the company is also listed at The National Stock Exchange (NSE). Geojit is
a charter member of the Financial Planning Standards Board of India and is one of
the largest DP brokers in the country.

Geojit has over over 30 years of in-depth experience in the Indian Capital Market.
The company also has more than 10,00,000 clients, a network of over 470 offices
and manages assets worth over Rs 40,000 crore in Assets Under Management and
Custody (as on 30 December 2021). This is a true reflection of the trust reposed in
our expertise, transparency and our cutting edge technology solutions.
 RATIONALE OF THE STUDY

The Stock Exchanges in India as elsewhere have a vital role to play in the
development of the country in general and industrial growth of companies in the
private sector in particular and helps the Government to raise internal resources for
the implementation of various development programmes in the public sector. As a
segment of the capital market it performs an important function in mobilizing and
channelizing resources which remain otherwise scattered. Thus the Stock
Exchanges tap the new resources and stimulate a broad based investment in the
capital structure of industries. Regulations have been framed to prevent insider
trading as well as unfair trade practices. The acquisitions and takeovers are
permitted in a well-defined and orderly manner. The companies are permitted to
buy back their securities to improve liquidity and enhance the shareholders’
wealth.

The intermediaries and persons associated with securities market shall buy or sell
or deal in securities after obtaining a certificate of registration from SEBI, as
required by Section 12.

This topic is picked to understand Investors or traders behavior like how much
people invest at a time and expected their expected return and time period of the
investment i.e investment or trading is preferred.
 PROBLEM STATEMENT

To study investor investment behavior (like time period of investment, average

amount of investment, investment strategies etc.) in stock market & suggesting
good investment strategy with a case study of Geojit financial services limited.
 OBJECTIVES OF THE STUDY

 To study the investment habit and strategy of the Investors in the stock
market.

 To know about the investors preference for investment, whether investment

or trading.

 To understand the frequency, amount and period of investment in the

market.

 The preference of people for investment in a particular sector/ capitalization

segment.
 RESEARCH METHODOLOGY
To fulfill the objective of the study both primary and secondary data has been
collected. Primary data is the data collected specifically for the study. Data is
collected directly from people or investors via questionnaires or surveys before
being analyzed to reach conclusions concerning the issues covered in the
questionnaire or survey.

NATURE OF DATA: In research methodology data must be collected and there

are two sources of collection of data i.e.

PRIMARY DATA:

OBSERVATIONS - It is the method of noting and recording information without

asking specific question from the respondents’ (i.e investors) but I will not use this
method.

PERSONAL INTERVIEWS - In this method I asks the question to the concerned

persons (i.e investors) in the order questions are listed and record the replies. We
will use this method and more details are mentioned in sampling design.

SECONDARY DATA: Secondary data is the data collected previously by

someone else for some other purpose which can be analyzed and interpreted
according to requirements. For example, sources of secondary data are
government publications, newspapers, worldwide web etc.

INTERNAL SOURCE OF DATA: It originates from the specific field of study

like published brochures, official reports, etc.
EXTERNAL SOURCE OF DATA: It originates outside the field of study like
books, periodicals, journals, newspapers and internet.

SAMPLE DESIGN:

SAMPLING UNIT: Customers (i.e investors) of Geojit financial

limited.

SAMPLE SIZE: Approx 100

RESEARCH LOCATION: Delhi, NCR only

RESEARCH PERIOD: Up to 30 days

SAMPLING PROCEDURE: Random sampling

 LIMITATIONS OF THE STUDY

Efforts will be made to make the study as accurate as possible, 100% accuracy
cannot be claimed because of the following reasons:

 The inspection of applications will be done on the basis of a sample of 100

participants. Though the sample is drawn randomly the possibility of

sampling fluctuations affecting the findings cannot be ruled out.

 Answer of the participants may not be the genuine.

 Location constraint as study only covers Geojit NCR location.

 Time constraint of the study i.e 30 days.