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Topic:. ‘‘A STUDY OF ONLINE TRADING AND

STOCK BROKING”

TABLE OF CONTENT

SR. No. Topics Page No.

1 Executive Summary
2 Industry Profile
3 Company profile
4 Research and Analysis
5 Learning Experience
6 Work Flow Model
7 Suggestion
8 Conclusion
9 Bibliography

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 Executive Summary

People invest their money for generating good returns. But in this investment some kind of
risk is involved. All investors have different attitudes towards risk. When it comes to
investing, it is important to consider your risk profile or tolerance carefully, including how
comfortable you are with the possibility of losing money, or that returns on your investments.
The risk profile of investors depends upon their demographic structures or characteristics.
The project deals with the analyzing the investment pattern on the basis of risk profile of
investors at Sharekhan Limited and what are the risk factors that influence the type of
investment made by individuals . As we all know that every person who wants to gain better
returns in future they must have to invest their money in stock market or anywhere else. This
study describes the investment pattern use by different persons while doing investment in
stock market keeping different risk in mind. The main reason to choose this research is to
find out the investment pattern behavior in respect of their risk bearing capacity and this
research helps the company to target the investors according to their risk ability. The
research process chosen by me is qualitative and quantitative research. Questionnaires in part
help me a lot in finding the actual position of the market under the survey method.

.A sample size of about 96 respondents which includes individual investors as well as

corporate investors was taken for purpose from various parts of Delhi and N.C.R . After the
survey was completed, the data was first stored and then analyzed on the chosen parameters.
This analyzed data was later on converted into graphs. Such as pie chart, bar graphs, etc this
was to make result easily comprehensible by any one going through the report. Later on, all
this information was compiled in the form of a presentable and highly comprehensible report.
After analyzing the data, the problem which has been identified that most of the investors are
ready to bear risk in expectation of higher returns. There is a strong relationship in investment
pattern and risk bearing capacity of investors while doing investment. For analyzing the data
we used chi- square and phi-Cramer V test in SPSS V 19.0 and use MS Excel 2007 for
making graphs.

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 The methodological approach to this study is descriptive, because we attempt to identify and
explain variables that exist in a given situation and to describe the relationship that exists
between these variables in order to provide a picture of a particular phenomenon, but not to
ferret out cause-effect relationship. The primary data was collected through questionnaire
filling. The secondary data was collected through the internet. India has a large chunk of
population which is at lower income level and at middle income level. There is a need of
creating awareness among them for share trading and the tremendous potential it has. They
are doing trading on the old methods which were used in the past. Now with the advent of
technology there are many options available to the traders which they can use without any
fear. The trend is moving towards the online share trading but still it has a lot to cover. The
traders are more of young age and middle age and don’t fear from risk taking but the lack of
knowledge doesn’t allows them to do so. So the stock broking companies should take
measures to empower the normal investors so that they can trade with the latest technologies
available. Target the youth as they are most potential customers of the stock market as their
interest towards stock trading is increasing.

The stock broking companies should educate the investors by giving them timely help in the
form of reports and tips.The companies should try to work in more transparent way. People
want good services and are ready for paying extra penny. People prefer Ease of transactions
and security. As per my summer internship project topic, “Consumer Behavior towards
Online Trading in Stock Market” I choose 100 people as the sample size as the part of
research and most of the people who are traded in stock market they are doing it offline. So,
there is the more scope of online trading customer and they can also try to convert the offline
customer into the online trading customer. And they can also catch the attention of those who
are investing in Mutual Fund. They have to attract the more businessmen and the employees
who are working in private or public sector.

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 INDUSTRY PROFILE

Following diagram gives the structure of Indian financial system:

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EQIUTY SHARES

Equity shares were earlier known as ordinary shares. The holders of these shares are the real
owners of the company. They have a voting right in the meetings of holders of the company.
They have a control over the working of the company. Equity shareholders are paid dividend
after paying it to the preference shareholders. The rate of dividend on these shares depends
upon the profits of the company. They may be paid a higher rate of dividend or they may not
get anything. These shareholders take more risk as compared to preference shareholders.
Equity capital is paid after meeting all other claims including that of preference shareholders.
They take risk both regarding dividend and return of capital. Equity share capital cannot be
redeemed during the lifetime of the company. In accounting and finance, equity is the
difference between the value of the assets and the cost of the liabilities of something owned.

Features of Equity Shares:

 Equity share capital remains permanently with the company. It is returned only when
the company is wound up.
 Equity shareholders have voting rights and elect the management of the company.
 The rate of dividend on equity capital depends upon the availability of surplus funds.
There is no fixed rate of dividend one equity capital.

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Advantages of Equity Shares:

 Equity shares do not create any obligation to pay a fixed rate of dividend.
 Equity shares can be issued without creating any charge over the assets of the
company.
 It is a permanent source of capital and the company has to repay it except under
liquidation.
 Equity shareholders are the real owners of the company who have the voting rights.
 In case of profits, equity shareholders are the real gainers by way of increased
dividends and appreciation in the value of shares.

Disadvantages of Equity Shares:

 If only equity shares are issued, the company cannot take the advantage of trading on
equity.
 As equity capital cannot be redeemed, there is a danger of over capitalization.
 Equity shareholders can put obstacles for management by manipulation and
organizing themselves.
 During prosperous periods higher dividends have to be paid leading to increase in the
value of shares in the market and it leads to speculation.
 Investors who desire to invest in safe securities with a fixed income have no attraction
for such shares

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 'Initial Public Offering - IPO

An initial public offering (IPO) is the first sale of stock by a private company to the public.
IPOs are often issued by smaller, younger companies seeking the capital to expand, but can
also be done by large privately owned companies looking to become publicly traded.
In an IPO, the issuer obtains the assistance of an underwriting firm, which helps it determine
what type of security to issue (common or preferred), the best offering price and the time to
bring it to market.
Also referred to as a "public offering." There are many advantages for a company going
public. As said earlier, the financial benefit in the form of raising capital is the most distinct
advantage. Capital can be used to fund research and development, fund capital expenditure or
even used to pay off existing debt. Another advantage is an increased public awareness of the
company because IPOs often generate publicity by making their products known to a new
group of potential customers.
Subsequently this may lead to an increase in market share for the company. An IPO also may
be used by founding individuals as an exit strategy. Many venture capitalists have used IPOs
to cash in on successful companies that they helped start-up.

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IPO accords several benefits:

 Enlarging and diversifying equity base.

 Enabling cheaper access to capital.
 Increasing exposure, prestige, and public image.
 Attracting and retaining better management and employees through liquid equity
participation.
 Facilitating acquisitions (potentially in return for shares of stock).
 Creating multiple financing opportunities: equity, convertible debt, cheaper bank loans,
etc.

Disadvantages:

There are several disadvantages to completing an initial public offering:

 Significant legal, accounting and marketing costs, many of which are ongoing.
 Requirement to disclose financial and business information.
 Meaningful time, effort and attention required of management.
 Risk that required funding will not be raised.
 Public dissemination of information which may be useful to competitors, suppliers and
customers.
 Loss of control and stronger agency problems due to new shareholders.
 Increased risk of litigation, including private securities class actions and shareholder
derivative actions

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 FUTURE & OPTIONS

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 FUTURES

A futures contract is an agreement between two parties to buy or sell an asset at a certain time
in the future at a certain price.
Such an agreement works for those who do not have the money to buy the contract now but
can bring it in at a certain date. These contracts are mostly used for arbitrage by traders. It
means traders buy a stock at a low price in the cash market and sell it at a higher price in the
futures market or vice versa. The idea is to play on the price difference between two markets
for the same stock.
In case of futures contracts, the obligation is on both the buyer and the seller to execute the
contract at a certain date. Futures contracts are special types of forward contracts. They are
standardized exchange-traded contracts like futures of the Nifty index

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 OPTIONS

An Option gives the buyer the right but not the obligation. As a buyer, you may choose to let
the option to buy call or put option lapse. The seller has an obligation to comply with the
contract. In the case of a futures contract, there is an obligation on the part of both the buyer
and the seller. Options are of two types - Calls and Puts options:

'Calls' give the buyer the right, but not the obligation to buy a given quantity of the
underlying asset, at a given price on or before a given future date.
'Puts' give the buyer the right, but not the obligation to sell a given quantity of underlying
asset at a given price on or before a given future date.

If the buyer of options chooses to exercise the option to buy, the counter-party (seller) must
comply. A futures contract, on the other hand, is binding on both counter-parties as both
parties have to settle on or before the expiry date.

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 MUTUAL FUNDS

Mutual fund is an investment vehicle, which pools money from investors with common
investment objectives. It then invests their money in multiple assets, in accordance with the
stated objective of the scheme. The investments are made by an ‘asset management company’
or AMC. For example, an equity fund would invest in stocks and equity-related instruments,
while a debt fund would invest in bonds, debentures, etc. As an investor, put your money in
financial assets like stocks & bonds

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 National Securities Depository Limited (NSDL)

NSDL, the first and largest depository in India, established in August 1996 and promoted by
institutions of national stature responsible for economic development of the country.
Using innovative and flexible technology systems, NSDL works to support the investors and
brokers in the capital market of the country.
NSDL aims at ensuring the safety and soundness of Indian marketplaces by developing
settlement solutions that increase efficiency, minimize risk and reduce costs.

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 Central Depository Services Limited (CDSL)

CDSL is the second Indian central securities depository based in Mumbai. Its main function
is the holding securities either in certificated or uncertificated (dematerialized) form, to
enable book entry transfer of securities.
CDSL is promoted by Bombay Stock Exchange Limited (BSE jointly with State Bank of
India, Bank of India, Bank of Baroda, HDFC Bank, Standard Chartered Bank, Axis Bank and
Union Bank of India.
Major participant in CDSL are LIC, GIC and BSE. CDSL aims to retain the entire data of the
investors in the central database of CDSL.

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 Bombay Stock Exchange (BSE)

Established in 1875, BSE (formerly known as Bombay Stock Exchange Ltd.), is Asia's first
& the Fastest Stock Exchange in world. Over the past 140 years, BSE has facilitated the
growth of the Indian corporate sector by providing it an efficient capital-raising platform.
BSE provides an efficient and transparent market for trading in equity, debt instruments,
derivatives, mutual funds. It also has a platform for trading in equities of small-and-medium
enterprises (SME). More than 5500 companies are listed on BSE which command a total
market capitalization.

BSE also provides a host of other services to capital market participants including risk
management, clearing, settlement, market data services and education. BSE systems and
processes are designed to safeguard market integrity, drive the growth of the Indian capital
market and stimulate innovation and competition across all market segments.

BSE is the first exchange in India and second in the world to obtain an ISO 9001:2000
certifications. It is also the first Exchange in the country and second in the world to receive
Information Security Management System Standard BS 7799-2-2002 certification for its On-
Line trading System (BOLT)

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 National Stock Exchange (NSE)

The National Stock Exchange of India Limited (NSE) is the leading stock exchange of India,
located in Mumbai. NSE was established in 1992 as the first demutualized electronic
exchange in the country. NSE was the first exchange in the country to provide a modern,
fully automated screen-based electronic trading system which offered easy trading facility to
the investors spread across the length and breadth of the country.
NSE offers trading, clearing and settlement services in equity, equity derivatives, debt and
currency derivatives segments. It is the first exchange in India to introduce electronic trading
facility thus connecting together the investor base of the entire country.

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 Securities and Exchange Board of India (SEBI )

Securities Exchange Board of India (SEBI) was set up in 1988 to regulate the functions of
securities market. SEBI promotes orderly and healthy development in the stock market but
initially SEBI was not able to exercise complete control over the stock market transactions.
It was left as a watch dog to observe the activities but was found ineffective in regulating and
controlling them. As a result in May 1992, SEBI was granted legal status. SEBI is a body
corporate having a separate legal existence and perpetual succession.

Reasons for Establishment of SEBI:

With the growth in the dealings of stock markets, lot of malpractices also started in stock
markets such as price rigging, ‘unofficial premium on new issue, and delay in delivery of
shares, violation of rules and regulations of stock exchange and listing requirements. Due to
these malpractices the customers started losing confidence and faith in the stock exchange. So
government of India decided to set up an agency or regulatory body known as Securities
Exchange Board of India (SEBI).

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Functions of SEBI:

The SEBI performs functions to meet its objectives. To meet three objectives SEBI has three
important functions. These are:
i. Protective functions
ii. Developmental functions
iii. Regulatory functions.

Purpose and Role of SEBI:

SEBI was set up with the main purpose of keeping a check on malpractices and protect the
interest of investors. It was set up to meet the needs of three groups.
1. Issuers: For issuers it provides a market place in which they can raise finance fairly and
easily.
2. Investors: For investors it provides protection and supply of accurate and correct
information.
3. Intermediaries: For intermediaries it provides a competitive professional market.

Objectives of SEBI:

The overall objectives of SEBI are to protect the interest of investors and to promote the
development of stock exchange and to regulate the activities of stock market. The objectives
of SEBI are:
1. To regulate the activities of stock exchange.
2. To protect the rights of investors and ensuring safety to their investment.
3. To prevent fraudulent and malpractices by having balance between self regulation of
business and its statutory regulations.
4. To regulate and develop a code of conduct for intermediaries such as brokers,
underwriters, etc.

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 COMPANY PROFILE

Name of the company: Sharekhan ltd.

Year of Establishment: 1925
Headquarter : Sharekhan SSKI
A-206 Phoenix House
Phoenix Mills Compound
Lower Parel
Mumbai - Maharashtra, INDIA- 400013
Nature of Business : Service Provider
Services : Depository Services, Online Services and
Technical Research.
Number of Employees : Over 3500
Revenue : Data Not Available
Website : www.sharekhan.com
Slogan : Your Guide to The Financial Jungle.

Vision
To be the best retail brokering Brand in the retail business of stock market.

Mission
To educate and empower the individual investor to make better investment decisions through
quality advice and superior service.

Sharekhan is infact-
• Among the top 3 branded retail service providers
• No. 1 player in online business
• Largest network of branded broking outlets in the country serving more
than 7, 00,000 clients

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 INTRODUCTION OF SHAREKHAN LTD

 Sharekhan is an online website portal for online trading, investments and stock
marketing.
 Slogan is “Your guide to the financial jungle”
 The company was founded in February 2000 by entrepreneur Shripal Morakhia.
 2nd largest stock broker portal and has its branches in 575 cities in India
 Sharekhan Ltd was formerly known as SSKI (S.S.Kantilal & Ishwarlal ) Investor
Services Private Limited.
 Sharekhan has set Trade Tiger Application which helps in providing information
and tools relevant to day traders.
 Member of BSE, NSE, MCX, NCDEX
 Mission of the Sharekhan: “To educate and empower the individual investor to
make better investment decisions through quality advice and superior service.”
 Vision of the Sharekhan: “To be the best retail brokering Brand in the retail business
of stock market.”
 Sharekhan offers services like Portfolio Management, Trade execution in equities,
futures & options, commodities, IPO and Distribution of mutual funds, insurance and
structured products.
 These services are backed by quality investment advice from an experienced research
team which offers investment and trading ideas based on fundamental and technical
research respectively, market related news, statistical information on equities,
commodities, mutual funds, IPOs and much more.
 Sharekhan is also registered as a depository participant with National Securities
Depository Ltd and Central Depository Services Ltd.
 Awarded as “‘Top Domestic Brokerage House” four times by Euro and Asia
money & “CNBC Awaaz customers Award 2005”.
 Winner of “Best Financial Website” award.

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 PRODUCT AND SERVICES OF SHAREKHAN

DEMAT ACCOUNT

In India, shares and securities are held electronically in a dematerialized (or "Demat")
account, instead of the investor taking physical possession of certificates.
Demat account is like your bank account. In bank account, we hold money whereas in Demat
account we hold shares. Demat account will show the opening balance of shares, shares
purchased during the year, shares sold during the year and closing balance.

What is a Demat account?

Just like a bank account holds money, a Demat account holds shares, mutual funds, bonds, government
securities and electronic traded funds (ETFs). Every time you buy a share, it is credited to your Demat
account and vice versa. It is mandatory for every investor to have a Demat account.

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 How to open a Demat account?

2. Select a DP: Choose the one offer good services. You can also select a DP that offers online
services like SAS Online by visiting their site sasonline.in.
3. Application: Submit a duly filled Demat account opening form along with copies of KYC
documents. These include PAN Card, proof of address, proof of identity, and bank account
details.
4. Documentation: On submitting all the documents you receive a copy of rules and
regulations and the charges you would incur. A copy of the terms of the agreement is
also submitted.
5. Verification: A personnel from DP will visit you in person or call you to verify all
the information furnished to them.
6. Account number: On successful completion of the verification, you will get a
unique account number and ID from the DP.

Features –

 No Account Opening Charges.

 Waiver on the 1st year AMC
 Preferential pricing for the imperia, Preferred & Classic customers.

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Documentation –

To open a Demat account you have to provide documents which fulfill the requirements of
KYC (Know Your Customer) norms. You have to sign a contract with Stock broker.
Generally the documents are:
 PAN (Compulsory).
 Bank statement (last 3 months).
 Address Proof.
 Income Tax Return.
 Passport size photo.

 Bank crossed Cheque (If required)

Demat accounts of investors who failed to furnish their PAN card details were frozen at
midnight on Dec 31. Depositories National Securities Depository Ltd and Central Depository
Services Ltd have frozen about 20 lakh Demat accounts following the failure of the account
holders to submit PAN card details before December 31 deadline.
SEBI had made it mandatory for all investors to provide PAN card details for transactions in
the cash market from January 1, 2007. However, the freezing of accounts is not an
irredeemable event. The accounts can be re-started once the details are provided and verified.

Advantages of Demat Account –

 Easy and convenient way to hold securities.

 Immediate transfer of securities.
 No stamp duty on transfer of securities.
 Safer than paper-shares (earlier risks associated with physical certificates such as bad
delivery, fake securities, delays, thefts etc. are mostly eliminated)
 Reduced paperwork for transfer of securities
 Reduced transaction cost
 No "odd lot" problem: even one share can be sold

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 Change in address recorded with a Depository participant DP gets registered with all
companies in which investor holds securities eliminating the need to correspond with
each of them separately.
 Transmission of securities is done by DP, eliminating the need for notifying companies.
 Automatic credit into Demat account for shares arising out of bonus/split,
consolidation/merger, etc.
 Single Demat account can hold investments in both equity and debt instruments.
 Traders can work from anywhere (e.g. even from home).

Disadvantages of Demat Account –

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

 It is compulsory for the capital market regulator to keep a close watch on the trading in
dematerialized securities and to check that trading does not act as a detriment to
investors.
 The role of key market players such as stock-brokers needs to be supervised as they have
the capability of manipulating the market.
 Multiple regulatory frameworks have to be followed, including the Depositories Act,
Regulations and the various Bye-Laws of various depositories.
 Agreements are entered at various levels in the process of dematerialization. Investors
may find the process complicated.
 There is no provision to close a Demat account, which is having illiquid shares. The
investor cannot close the account and he and his successors have to go on paying the
charges to the participant, like annual folio charges etc.
 After liquidating the holdings, many Indian investors don't close their DP account. They
are unaware that DPs charge even on dormant accounts

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Charge Structure :

Fee structure for General Individual:

Delivery Charges Intraday Charges

Buying 0.50 Paise 0.10 Paise
Selling 0.50 Paise Nil

Brokerage:

It is the charges taken by guiding company for helping you in buying and selling your shares.
There are different charges for Intraday and Delivery.

Intraday:

The day to day buying and selling or daily transactions are called as Intraday. You have to
buy or sell the shares within the day only.

Delivery:

It is the three day transaction. The day you buy the shares and the next two days after that
day it called as Delivery. It includes three days. If you are buying any shares then you have to
sell it within three days including the buying days

T+2=Today+2 days

Depository Charges:

Account Opening Charges Nil

Annual Maintenance Charges 1’’Year Nil
2”year 415\-

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Steps to unfreeze Demat Account:

 Check your Demat Account status with your DP or from your transaction statement.
 If your account status is “Suspended for Debit” due to non – submission of PAN details,
provide copy of your PAN CARD to your DP with the original for verification.
 Your DP will verify the same and update the PAN CARD details.
 Your DP will then unfreeze your account, after which your account will become
operational.

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TRADE TIGER

Trade tiger is a next-generation online trading product that brings the power of broker’s
terminal to customer pc. It is session to capitalize on intra-day price movement. Trade tiger is
an internet –based application available on a CD, which provides everything a trader needs
on one screen.

Features of Trade Tiger

 A single platform for multiple exchange BSE & NSE (Cash & F&O), MCX, NCDEX,
Currency, Mutual Funds, IPOs.
 Multiple Market Watch available on a Single Screen.
 Multiple Charts with Tick by Tick Intraday and End of Day Charting powered with
various Studies.
 Graph Studies include Average, Band-Bollinger, Know Sure Thing, MACD etc.
 Apply studies such as Vertical, Horizontal, Trend, Retracement & Free lines
 User can save his own defined screen as well as graph template, that is, saving the
layout for future use.
 User-defined alert settings on an input Stock Price trigger.
 Tools available to gauge market such as Tick Query, Ticker, Market Summary,
Action Watch, Option.
 Premium Calculator, Span Calculator.
 Shortcut key for FAST access to order placements & reports
 Online fund transfer activated with 14 Banks

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31
 CURRENCY TRADING:

Currency trading means to trade in currency of different countries and price varies because of
supply and demand. Currency trading is mostly done by large companies or by people who is
import-export business. In price of currency there is always fluctuation. So it can be
dangerous for people who have import-export business. So they make reverse position or it is
also known as hedging. So by this way people minimize their risk with the help of currency
trading. Currency trading is not much useful to individual investors. Share khan is providing
offline currency trading to interested customers. Online currency trading is not given because
individual investors still not prefer currency trading.

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 Depository Participant (DP)

A depository is an institution as DP-ID. As on date, total of 275 DPs are registered with
NSDL & 583 DP’s are registered with CDSL.
At present two Depositories viz. National Securities Depository Limited (NSDL) and Central
Depository Services (I) Limited (CDSL) are registered with SEBI.
The minimum net worth stipulated by SEBI holding shares in electronic mode that offers
efficient settlement of transactions. A Depository Participant (DP) is an intermediary between
the investor and the depository. A DP is typically a financial organization like a bank, broker,
financial institution, or custodian acting as an agent of the depository to make its services
available to the investors. Each DP is assigned a unique identification number known for a
depository is Rs.100 crore.

To avail the services of a depository an investor is required to open an account with a

depository participant of any depository.
As an investor has to give bank account details at the time of account opening for the
protection of investor’s interest. The bank account number will be mentioned on the interest
or dividend warrant, so that such warrant cannot be en-cashed by anyone else. Further, cash
corporate benefits such as dividend, interest will be credited to the investors account directly
through the ECS (Electronic Clearing Service) facility, wherever available, by the company.

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 SERVICES OF SHAREKHAN LIMITED

The different types of products and services offered by Sharekhan Ltd. are as follows:

 Equity and derivatives trading

 Depository services
 Online services
 Commodities trading
 Dial-n-trade
 Portfolio management
 Share shops
 Fundamental research
 Technical research.

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 HOW TO OPEN AN ACCOUNT WITH SHAREKHAN LIMITED?

For online trading with Sharekhan Ltd., investor has to open an account. Following are the
ways to open an account with Sharekhan Ltd.:

 One need to call them at phone number provided below and asks that he want to
open an account with them.
o One can call on the Toll Free Number: 1-800-22-7500 to speak to a
Customer Service executive
o Or If one stays in Mumbai, he can call on 022-66621111

 One can visit any one of Sharekhan Limited’s nearest branches. Sharekhan has a
huge network all over India (640 centers in 280 cities). One can also log on
to“http://sharekhan.com/Locateus.aspx” link to find out the nearest branch.

 One can send them an email at info@sharekhan.com to know about their products
and services.

 One can also visit the site www.sharekhan.com and click on the option “Open an
Account” to fill a small query form which will ask the individual to give details
regarding his name, city he lives in, his email address, phone number, pin code of the
city, his nearest Sharekhan Ltd. shop and his preferences regarding thetype of
account he wants.

These information are compiled in the headquarter of the company that is in Mumbai
from where it is distributed through out the country’s branches in the form of leads on the
basis of cities and nearest share shops. After that the executives of the respective branches
contact the prospective clients over phone or through email and give them information
regarding the various types of accounts and the documents they need to open an account and
then fix appointment with the prospective clients to give them demonstration and making
them undergo the formalities to open the account. After that the forms that has collected from
the clients, is scrutinized in the branch and then it is sent to Mumbai for further processing
where after a few days the clients’ account are generated and activated. After the accounts are
activated, a Welcome Kit is dispatched from Mumbai to the clients’ address mentioned in the
documents provided by them. As soon as the clients receive the Welcome Kit, which contains
the clients’ Trading ID and Trading Password, they can start trading and investing in shares.

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 Generally the process of opening an account follows the following steps:

LEAD MANAGEMENT SYSTEM (LMS) / REFERENCES

CONTACT THE PERSON OVER PHONE OR THROUGH EMAIL

FIXING AN APPOINTMENT WITH THE PERSON

GIVING DEMONSTRATION
YES

DOCUMENTATION NO

FILLING UP THE FORM

SUBMISSION OF THE FORM

LOGIN OF THE FORM

SENDING ACCOUNT OPENING KIT TO THE CLIENT

TRADING

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Apart from two passport size photographs, one needs to provide with the following
documents in

order to open an account with Sharekhan Limited.:

 Photocopy of the clients’ PAN Card which should be duly attached
 Photo copy of any of the following documents duly attached which will serve
as correspondence address proof:

a. Passport (valid)
b. Voter’s ID Card
c. Ration Card
d. Driving License (valid)
e. Electricity Bill (should be latest and should be in the name of the client)
f. Telephone Bill (should be latest and should be in the name of the client)
g. Flat Maintenance Bill (should be latest and should be in the name of the client)
h. Insurance Policy (should be latest and should be in the name of the client)
i. Lease or Rent Agreement.
j. Saving Bank Statement** (should be latest)

 Two cheques drawn in favour of Sharkhan Limited, one for the Account Opening
Fees and the other for the Margin Money (the minimum margin money is Rs. 5000).

** A cancelled cheque should be given by the client if he provides Saving Bank Statement as
a proof for correspondence address.

NOTE: Only Saving Bank Account cheques are accepted for the purpose of Opening an
account.

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 REASON TO CHOOSE SHAREKHAN LIMITED

Experience

Share Khan has more than eight decades of trust and credibility in the Indian stock market. In
the Asia Money broker’s poll held recently, it won the India’s Best Broking House for 2004'
award. Ever since it launched Share khan as its retail broking division in February 2000. It
has been providing institutional-level research and broking services to individual investors.
Technology

With its online trading account one can buy and sell shares in an instant from any PC with an
internet connection. One can get access to its powerful online trading tools that will help him
take complete control over his investment in shares.
Accessibility

Share khan provides advice, education, tools and execution services for investors. These
services are accessible through its centers across the 16country over the internet (through the
website www.sharekhan.com) as well as over the Voice Tool.
Knowledge

In a business where the right information at the right time can translate into direct profits, one
can get access to a wide range of information on Share khan Limited’s content-rich portal.
One can also get a useful set of knowledge-based tools that will empower him to take
informed decisions.

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Convenience

One can call its Dial-N-Trade number to get investment advice and execute his transactions.
Share khan ltd. has a dedicated call-centre to provide this service via a Toll Free Number
1800-22-7500 & 1800-22-7050 from anywhere in India.

Customer Service

Share khan Limited’s customer service team will assist one for any help that one may require
relating to transactions, billing, Demat and other queries. Its customer service can be
contacted via a toll-free number, email or live chat on www.sharekhan.com.
Investment Advice

Share khan has dedicated research teams of more than 30 people for fundamental and
technical researches. Its analysts constantly track the pulse of the market and provide timely
investment advice to its clients in the form of daily research emails, online chat, printed
reports and SMS on their mobile phone.

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 COMPETITORS OF SHAREKHAN LTD.

There are currently close to online brokerages in India with ICICI direct, HDFE securities,
Kotak Street, Share Khan, India Bulls and 5paisa,Motilal oswal being some major
competitors of Sharekhan . However, due to limited volumes, no online brokerage is
currently making money and a shakeout is imminent in the near future. The going to be
expected to get tougher with the advent capital account; convertibility, players such as TD
Water house have already entered the Indian market, while others such as Schwab are
expected shortly. On an average, Rs. 40 crores per day (Rs. 1300 crores per month) is likely
to be the threshold breakeven for online brokerages.

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 SWOT ANALYSIS

Strengths

1. Strong credibility among investors because of its heritage.

2. Excellent reputation among the business society.

3. Capability of providing superior customer service.

4. Quality research team.

5. Easier access to the customer due to largest ground network of 280 branded

share shops in 120 cities.

6. Abundant information about economy and companies.

7. Ability to attract and retain superior and quality personnel.

8. Highly sophisticated infrastructure.

9. Efficient research and analysis team, which by interpreting the economy

and company’s performance accurately is enhancing the profitability of the

clientele.

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Weaknesses

1. Limited customer appeal as the company product line does not include mutual

funds which is increasingly becoming a preferred customer investment option.

2. Inadequate product awareness among the retail investors.

3. Limited customer appeal as the company does not have access to the BSE

online space.

4. Brand awareness is low in the financial market.

5. Promotional activities conducted by the company are not at par with the other firms.

Opportunities

1. Hyderabad covers only 2% of investors which gives huge potential for the

market penetration.

2. Bullish phase of the market attracts investing public.

3. Access to the BSE online space for the retail investors creates opportunity to

increase clientele base.

4. Awareness campaigns about online trading create new market.

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Threats

1. Availability of Unit Linked Insurance Policies (ULIP’s) and mutual funds in the

market.

2. Threat of entry is high in this industry as the manpower required is less and

capital requirement is medium.

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 Research & Analysis

Research

Research design - Descriptive research

Statistical tools - Percentage method

ANOVA (F – test)

- Chi square (x2)

Research instrument – Questionnaire

Questionnaire - Open ended and close ended

Contact method – Survey

- Personal interview
- Online interview

Method of data Collection - Primary data and Secondary data

Method of data collection –

Sampling method - Non-probability sampling

Sampling type - Area sampling

Sampling unit – Consumers

Sampling size – 50

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 Method of Data Collection

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

Primary data

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

Secondary data

On the other hand are those, which have already been passed through the statistical
process. The secondary data are that information which is collected from internal
sources as well as external sources, Wiz‟s from the company own the records and
documents. Secondary data was collected from the registers, manuals, information
bulletins maintained by the personnel department and other records, information
collected in this manner was immediately complied processed manually and a
statistical structure was given to the data to help interpretation of the statistical data.

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 OBJETIVE OF THE STUDY

 How the depositories are working and to know there marketing strategy.
 To know about the various depositories running in market and there procedure.
 The objective of the study is to know how many people are aware about the share
market.
 To create awareness about share market.
 To know the company awareness among the people.

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 SCOPE OF THE PROJECT

Globalization of the financial market has led to a manifold increase in investment. New
markets have been opened. New instruments have been developed, and new services have
been launched. Besides, a number of opportunities and challenges have been thrown open.
Online share trading is a new to equity market in India. Mainly two exchanges are involved
in online trading in India BSE & NSE.
The scope of the study is to create awareness about the share market and company into the investors, how to yield
high rate of return, how to do trading in to the market, how to minimize and manage the risk etc.

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 Learning Experience

 A Study of Online Trading in Market.

 How the Market is going up & down which Industry affected to Market.
 Meet to Customer and Sale Company Policy.

 For e.g. Open Demat Account, SIP(Systematic Investment Plan),Trading Account.

 How to communicate to the People.

 Customer Interaction.

 Resolving the Problems.

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 Work Flow Model

Our world is changing and so are the ways we receive information, consume and even work.
Today, people want more than just a job. They are looking to enjoy real experiences, learn
new skills, share objectives as well as results with their colleagues, all the while expressing
their creativity. In short, they want to blaze their own trail in a unique, responsible and
sustainable way. At BNP Paribas, we recruit new employees with the understanding that they
will help us to design tomorrow’s world and the financial institution of the future.
Discover our employee value proposition.

The institutions, services and products that comprise the financial services sector vary from
country to country, but generally include the central bank; depository organizations such as
banks, building societies or mortgage banks and companies; credit unions or credit
cooperatives; insurance and pension funds; general financiers; cash management firms; and
other engaged in financial intermediation or asset management. Financial intermediaries may
themselves include securitizers, investment firms, leasing companies, hire purchase and the
provision of personal and consumer credit. In some cases, a broader perspective of the
financial services sector needs to incorporate not only the financial industry but also the
business services that support its operation.

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 Suggestion

From the analysis of the survey and personal observation of the customer towards the
awareness of the share and the share company SHAREKHAN . Lots of experience gained
from
the survey. This will help the company to survive in the market and also improvise their
market
potential in the current competitive environment. With this the company should take
immediate
steps to improve the nature of the business.

From the survey : -

1) Try to encourage people wo comes between the age group of 30 – 40. They are very
less in number.
2) Most of the customers got information about the company only through the Friends .
The company should take necessary steps to concentrate on the advertisements. Through
they are advertising online, it is necessary to advertise in TV, radio, presses; only when
they give these kinds of advertisements they can get lots of customers. Also they have to go
for boarding, which can be viewed by everyone passing by.
3) It was found that maximum no of customer is investing in shares after a time gap of
3 months. The company should explain the benefits of intraday (buy today and sell
today) operations certain customers invest in shares with a long term on capital
apperceptions. The benefits of short term trading can be explained to the customers so
that they may be persuaded to go in for the same.
4) There is a unfavorable feedback from the customers about brokerage charges as per
transactions. . The company should take necessary steps to concentrate on the
Brockrage charges according to competitiors .
5) Many of the customers are not aware of my broker software. This usefulness should
be explained to them.
6) Customers with money to invest may be living in isolated areas with no proper
telephone or computer facility, the company may think of deputing relationship managers
to help
the customers through proper guidance and by passing on relevant information.
7) More number of customers are dissatisfied with slow operation and delay operation
of transaction , so it is advisable to take some steps for that .

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 CONCLUSION

 Importance of information technology in the field of stock broking is immense.

 Buying and selling of shares through the internet is so easy.
 As soon as prices of shares goes up and comes down then the customer can sell or
purchase the share instantly within seconds.
 In Share khan the current scheme is that opening the de-mate account is free of charge
and there is no other charge on it for a year. Also the unique software of “trade tiger”
is allowed free of charge for life time.
 Because of time limitation and also internet available problems, mostly people are
doing off-line trading. But now in days numbers of customers are increasing for
online trading.
 After listening the current scheme 80% people are ready to opening the account.

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 BIBLIOGRAPHY

I Had Collected the Data’s From Various Recourses from Internet, Company & from
practical experience. The Sources Are Given Below………..
o http://www.sharekhan.com
o https://sasonline.in
o http://www.bseindia.com
o http://www.nseindia.com
o http://www.mutualfunds.com
o http://www.derrivatives.com
o www.google.com
o www.scribd.com

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