A REPORT ON

A STUDY ON AWARENESS AND PREFERNCE FOR DEMAT SERVICES AND ITS IMPACT ON MARKET SHARE OF SHARE KHAN

By R.S.S .BHAVANARAYANA. Eno: 6ND02859 Center: INC Eluru.

(SHARE KHAN)
1

Contract: A REPORT ON

A STUDY ON AWARENESS AND PREFERENCE FOR DEMAT SERVICES AND ITS IMPACT ON SHARE OF SHAREKHAN. BY R.S.S.BHAVANARAYANA M.B.A.
A report submitted in partial fulfillment of The requirements of MBA / MCA Program (Class of 2007)

Copies marked list:

Company Guide (MrPSrrinivas Reddy..)

2

 Faculty Guide (Mr.T.VIJAY KUMAR)

INTERNSHIP CERTIFICATE
This is to certify that Mr.R.S.S.Bhavanarayana. a bonafide student of ICFAI National College, Eluru pursuing his Masters in Business Administration, has worked on the project in Finance Sector entitled A
STUDY ON AWARENESS AND PREFERENCE FOR DEMAT SERVICES AND ITS OF

IMPACT ON MARKET SHARE

SHAREKHAN,

from March to July, 2007 and has successfully

completed the Internship Program.

During the tenure of the project, his conduct was good and satisfactory. We wish him all the best for his future endeavors.

A.S.M P.Srinivas Reddy Ameer pet, secundrabad.

CERTIFICATE

This is to certify that the Summer Internship Program titled

STUDY ON AWARENESS AND PREFERENCE FOR DEMAT SERVICES AND ITS OF

IMPACT ON MARKET SHARE

SHAREKHAN,

a bonafide work of R.S.S.Bhavanarayana, is original

and has been done under my supervision in partial fulfillment of the requirement for the award of M.B.A for the period of four months from March14th to July14th 2007. This report neither full nor in part has ever before been submitted for awarding of any degree of either this university or any other university. I am pleased to say that his performance during the period was extremely satisfactory.

Mr.Y.Ramakrishna, CENTER HEAD ICFAI NATIONAL COLLEGE DILSHUKNAGAR

CERTIFICATE

This is to certify that the Summer Internship Project titled A

STUDY ON AWARENESS AND PREFERENCE FOR DEMAT SERVICES AND ITS

IMPACT ON MARKET SHARE OF SHAREKHAN, a bona fide work of

R.S.S.Bhavanarayana, is original and has been done under my supervision in partial fulfillment of the requirement for the award of M.B.A for the period of four months from March14th to July14th 2007. This report neither full nor in part has ever before been submitted for awarding of any degree of either this university or any other university. I am pleased to say that his performance during the period was extremely satisfactory.

Mr. T. Vijaykumar, FACULTY GUIDE ICFAI NATIONAL COLLEGE DILSHUKNAGAR.

ACKNOWLEDGEMENT
6

The satisfaction and exhilaration that accompanies the successful completion of all my tasks would be incomplete without mentioning the people who made it possible, whose constant guidance and encouragement, crowned all my efforts with success. At the outset I acknowledge the opportunity provided to me by share khan ltd to work on the project A STUDY ON AWARENESS AND PREFERENCE FOR DEMAT SERVICES AND ITS IMPACT ON MARKET SHARE OF SHAREKHAN for my summer internship. I am grateful to Mr.P.Srinivas Reddy my company guide, Mr.K.Satish Reddy my company Asm for their kind co-operation and valuable advice support all along for the successful completion of this report. I am very thankful to my faculty guide Mr.T.Vijaykumar, Faculty Member, ICFAI National College DSNR, for his valuable inputs, guidance, support and cooperation all along the internship program. This project would not have been possible without his help. Last but by no means the least I would like to convey my special thanks to Mr.Y.Ramakrishna (center head), Mr.T.Subash tej and all the faculty members of ICFAI College for providing me all the needed inputs and facilities for the successful completion of SIP.

R.S.S.BHAVAN ARAYANA ENRLL.NO. 6ND02859

TABLE OF CONTENTS

CERTIFICATE ACKNOWLEDGEMENT
CHAPTER-1 INDUSTRY PROFILE COMPANY PROFILE

3-5

6 -6

08-19 20-27 28-33 34-65 66-68

CHAPTER-2

EXECUTIVE TRAINING

CHAPTER-3

MANAGEMENT THESIS

CHAPTER-4

QUESTIONAIRE AND BIBLOGRAPHY

INDUSTRY PROFILE:
The Bombay stock exchange (BSE) and the national stock exchange of India ltd (NSE) are the two primary exchanges in India. In addition, there are 22 regional stock exchanges. However, the BSE and NSE have established themselves as the two leading exchanges and account for about 90% of the equity volume traded in India. Most key stocks are traded on both the exchanges and hence the investor could buy them on either exchange. The primary index of BSE is BSE Sensex comprising 30 stocks. NSE has the S&P NSE 50 index (Nifty) which consists of 50 stocks.

The BSE Sensex is the older and more widely followed index. Both these indices are calculated on the basis of market capitalization and contain the heavily traded shares from key sectors. The markets are closed on Saturdays and Sundays.

Both the exchanges have switched over from the open outcry trading system to a fully automated computerized mode of trading known as BOLT ( BSE On Line Trading) and NEAT (National Exchange Automated Trading) system. If facilitates more efficient processing, automatic order matching faster execution of trades and transparency. The scripts traded on the BSE have been classified into A, B1, B2, C, F, and Z groups. The A group shares represent these, which are in the carry forward system (Bada). The F group represents the debt market (fixed income securities) segment. The Z group scripts are the blacklisted companies. The C group covers the odd lot securities in A, B1&B2 groups and rights renunciations. The key regulator governing stock exchanges, brokers, depositories, depository participants.

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ABOUT NSE:

The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges, which recommended promotion of a National Stock Exchange by financial institutions (FIs) to provide access to investors from all across the country on an equal footing. Based on the recommendations, NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the country.

11

On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment commenced operations in November 1994 and operations in Derivatives segment commenced in June 2000.

NSE ACHIEVEMENTS
November 1992 April 1993 Incorporation

Recognition as a stock exchange

May 1993 Formulation of business plan June 1994 Nov 1994 Wholesale Debt Market segment goes live Capital Market (Equities) segment goes live

March 1995 Establishment of Investor Grievance Cell April 1995 Establishment of NSCCL, the first Clearing Corporation

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June 1995

Introduction of centralized insurance cover for all trading members

July 1995 Oct 1995 April 1996 April 1996 June 1996 Nov 1996

Establishment of Investor Protection Fund Became largest stock exchange in the country Commencement of clearing and settlement by NSCCL Launch of S&P CNX Nifty Establishment of Settlement Guarantee Fund Setting up of National Securities Depository Limited, first depository in India, co-promoted by NSE

Nov 1996 Best IT Usage award by Computer Society of India Dec 1996 Commencement of trading/settlement in dematerialized securities Dec 1996 Dec 1996 Feb 1997 Dataquest award for Top IT User Launch of CNX Nifty Junior Regional clearing facility goes live

Nov 1997 Best IT Usage award by Computer Society of India May 1998 Promotion of joint venture, India Index Services & Products Limited (IISL) May 1998 Launch of NSE's Web-site: www.nse.co.in
13

July 1998

Launch of NSE's Certification Programme in Financial Market

Aug 1998

CYBER CORPORATE OF THE YEAR 1998 award

Feb 1999 Launch of Automated Lending and Borrowing Mechanism April 1999 Oct 1999 Jan 2000 Feb 2000 June 2000 Sept 2000 Nov 2000 CHIP Web Award by CHIP magazine Setting up of NSE.IT Launch of NSE Research Initiative Commencement of Internet Trading Commencement of Derivatives Trading (Index Futures) Launch of 'Zero Coupon Yield Curve' Launch of Broker by Dotex International, a joint venture between NSE.IT Ltd. and i-flex Solutions Ltd. Dec 2000 June 2001 July 2001 Commencement of WAP trading Commencement of trading in Index Options Commencement of trading in Options on Individual Securities Nov 2001 Commencement of trading in Futures on Individual Securities Dec 2001 Launch of NSE VaR for Government Securities
14

Jan 2002 May 2002

Launch of Exchange Traded Funds (ETFs) NSE wins the Wharton-Infosys Business Transformation Award in the Organization-wide Transformation category

Oct 2002 Jan 2003 June 2003 Aug 2003 June 2004 Aug 2004

Launch of NSE Government Securities Index Commencement of trading in Retail Debt Market Launch of Interest Rate Futures Launch of Futures & options in CNXIT Index Launch of STP Interoperability Launch of NSEs electronic interface for listed companies

June 2005

Launch of Futures & options in BANK Nifty

15

ABOUT BSE:

The oldest exchange in Asia and the first exchange in the country to be granted permanent recognition under the Securities Contract Regulation Act, 1956, Bombay Stock Exchange Limited (BSE) has had an interesting rise to prominence over the past 130 years. While the BSE is now synonymous with Dalal Street, it wasnt always so. In fact the first venues of the earliest stock broker meetings in the 1850s were amidst rather natural environs - under banyan trees - in front of the Town Hall, where Harmonian Circle is now situated. A decade later, the brokers moved their venue to another set of foliage, this time under banyan trees at the junction of Meadows Street and Mahatma Gandhi Road. As the number of brokers increased, they had
16

to shift from place to place, and wherever they went, through sheer habit, they overflowed in to the streets. At last, in 1874, found a permanent place, and one that they could, quite literally, call their own. The new place was, aptly, called Dalal Street. The journey of BSE is as eventful and interesting as the history of Indias securities markets. Indias biggest bourse, in terms of listed companies and market Capitalization, BSE has played a pioneering role in the Indian Securities Market - one of the oldest in the world. Much before actual legislations were enacted, BSE had formulated comprehensive set of Rules and Regulations for the Indian Capital Markets. It also laid down best practices adopted by the Indian Capital Markets after India gained its Independence. Perhaps, there would not be any leading corporate in India, which has not sourced BSEs services in resource mobilization. BSE as a brand is synonymous with capital markets in India. The BSE SENSEX is the benchmark equity index that reflects the robustness of the economy and finance. At par with international standards, BSE has

17

been a pioneer in several areas. It has several firsts to its credit even in an intensely competitive environment. First in India to introduce Equity Derivatives First in India to launch a Free Float Index First in India to launch US$ version of BSE Sensex First in India to launch Exchange Enabled Internet Trading

Platform First in India to obtain ISO certification for Surveillance, Clearing & Settlement 'BSE On-Line Trading System (BOLT) has been awarded the globally recognized the Information Security Management System standard BS7799-2:2002. First to have an exclusive facility for financial training Moved from Open Outcry to Electronic Trading within just 50 days

18

An equally important accomplishment of BSE is the launch of a nationwide investor awareness campaign - Safe Investing in the Stock Market - under which nationwide awareness campaigns and dissemination of information through print and electronic medium was undertaken. BSE also actively promoted the securities market awareness campaign of the Securities and Exchange Board of India. In 2002, the name The Stock Exchange, Mumbai, was changed to BSE. BSE, which had introduced securities trading in India, replaced its open outcry system of trading in 1995, when the totally automated trading through the BSE Online trading (BOLT) system was put into practice. The BOLT network was expanded, nationwide, in 1997. It was at the BSE's International Convention Hall that Indias 1st Bell ringing ceremony in the history Capital Markets was held on February 18th, 2002. It was the listing ceremony of Bharti Tele ventures Ltd.

19

BSE with its long history of capital market development is fully geared to continue its contributions to further the growth of the securities markets of the country, thus helping India increase its sphere of influence in international financial markets Vision "Emerge as the premier Indian stock exchange by establishing global benchmarks"

20

SHARE KHAN.COM

COMPANY PROFILE:

Share khan, Indias leading stockbrokers the real arm of SSKI, an organization with over eight decades of stock market experience. With more than 175 share shops in over 80 cities, and a presence on internet through

www.sharekhan.com, Indias premier online trading destination, we reach out to customers like no one else.

Share khan offers you trade execution facilities on the BSE and the NSE, for cash as well as derivatives, depositary services and most importantly, investment advice
21

tempered by 80 years of research and broking experience. To ensure that your trading experience with share khan is fast, secure and hassle free. We offer a suite of products and services, providing you with a multi-channel access to the stock markets.

SSKI group also comprises institutional broking and corporate finance. While the institutional broking division caters to the largest domestic and foreign institutional investors. The corporate finance division focuses on niche areas such as infrastructure. Telecom and media. SSKI holds a sizeable portion of the market in each of these segments.

As the forerunner of investment research in the India market, we provide the best research coverage amongst broking houses in India. Our research team is rated as one of the best in the country. Voted four times as the top domestic brokerage house by Asia money survey. SSKI is consistently ranked almagest the top domestic brokerage houses in India

22

Dematerialization in short called as Demat is the process by which an investor can get physical certificates converted into electronic form, Rs 20 per scrip per day (the brokerage per scrip will be charged for the trades resulting in delivery on actual or Rs. 20 whichever is more). (For e.g. If a customer buys 100 shares of sail, total delivery value =2200. Brokerage @ 0.5% = rs 11, but the min chargeable amt per scrip per day = rs 20), so additional rs 9 will be charged as min delivery handling charges)

COMPANY BACKGROUND:
Share khan is the retail broking arm of SSKI, securities pvt ltd. SSKI owns 56% in share khan, balance ownership is HSBC, first caryle, and Intel pacific Into broking since 80 years Focused on providing equity solutions to every segment Largest ground network of 210 branded share shops in 90 cities

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ONLINE ACCOUNT TYPES

Commercial Terms and Conditions to open online trading account Account Opening Fees: CLASSIC ACCOUNT:750/-(Life Time opening charges) SPEED TRADE: 1,000/-up with 9 top international banks. (City Bank, HDFC, IDBI, Oriental Bank of Commerce, UTI , Indus Ind Bank, UBI,Yes Bank& ICICI) Brokerage: 0.10 %( Each leg) + Turnover Tax +Stamp Duty+ Service Tax For each leg of Intra-day trades 5paise (Each leg) +Turnover Tax +Stamp Duty+ Service Tax For each leg of Intra-day trades (Minimum brokerage for shares below Rs.50) 0.50 %( Each leg) + Turnover Tax +Stamp Duty+ Service Tax for trades resulting in delivery 10paise (Each leg) +Turnover Tax +Stamp Duty+ Service Tax For each leg of Intra-day trades (Minimum brokerage for shares below Rs.20) A minimum brokerage Rs.18 for delivery trades. Exposure: You will be given a Trading account with 25% margin i.e. 4 Times your margin
24

With us. CLASSIC PREPAID A/C : Account opening Charges 750/2000/- Advance Brokerage cheque. Brokerage: Delivery 0.40% Intraday 0.07%

SPEED TRADE PREPAID A/C: Account Opening Charges: 1000/6000/- Rs Advance Brokerage Cheque Brokerage: Delivery - 0.25% Intraday 0.05%

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CLASSIC / WEBSITE FEATURES

Facility to integrate choice of 4 banks / DP / trading account Instant credit for shares sold from DP Automatic pick-up of shares from linked DP for pay-in Automatic deposit of shares into linked DP after pay-out 4 times leverage on margin trades Margin trading available for entire market session Slab wise brokerage structure for delivery and margin trades, shortly

26

 Free calls for order placement on toll-free Trusted, professional advice of tele-brokers Facility to enter after market orders online & via phone Daily research newsletter (investor eye) via e-mail Access to new IPO without any paperwork Advanced portfolio monitoring tools Integrated DP account with trading account Option of linking additional 4 DP accounts to trading account Choice of linking 4 banks to trading A/C for online payments Cash and derivatives trading in a single account E-mail confirmations for all transactions Choice of electronic/ physical contracts

27

SPEEDTRADE EXE FEATURES:

All the features of classic Trade execution in 2-3 seconds Instant order / trade confirmations in the same window Hot keys similar to a brokers terminal Multiple tic-by-tic intra-day charts \ with multiple indicators Availability of 2 ISP & 6 Servers ensuring maximum uptime Customized alerts based on multiple parameters Cancel all / square off all facility Window for top gainers, top losers, most active updated live.

28

29

EXECUTIVE TRAINING
INTRODUCTION:
Mr. G.V.L NARAYANA who is our corporate guide

had given task to sell 40 demat accounts during 4 months.

The main task in this ET is to sell 10 demat accounts per month and to generate leads form Internet, Telephone directory, some

references and also from existing customers.

ET (EXECUTIVE TRAINING ) TITLE: SELLING OF 40DEMAT ACCOUNTS PER 4 MONTHS.

TO GAIN KNOWLEDGE FROM THE COROPORATE CULTURE

30

OBJECTIVES:

HOW TO COMMUNICATE THE DIFFERENT TYPE OF PEOPLE LEARN BOOKISH KNOWLEDGE PROCESS OF THE COMPANY . MY OBJECTIVE IS TO GAIN THE KNOWLEDGE OF CORPORATE SECTOR. TO CHOOSE THE POTENTIAL CUSTOMER OF OUR COMPANY.
THROUGH PRACTICAL IMPLEMENTATION.

TARGETS AND TASKS :

TO SELL 40 DEMAT ACCOUNTS PER 4

MONTHS

EVERY MONTH TO SELL TEN DEMAT ACCOUNTS.

EVERY DAY YOU MUST ATTEND THE OUR SALES OFFICE.

31

STRATEGIES FOR ACHIEVING TARGETS:

Firstly we divided the total allotted areas into different phases and we covered these phases according to the schedule. Since the customers are busy with their works we planned to meet them at the timings convenient to them. So we followed the timings from 11:00 am to 1:00 am which is not a peak time. And in the evenings we follow the timings from 4.00 pm to 7.00 pm. Also if the customers are very busy with their works and in the position in which they are not able to respond to the questionnaire we gather the information regarding the main operations of the company. Also our company guide constantly guided us in order to achieve our target tasks. ACHIVEMENTS OF TARGETS: 1stmonth:I had sold five demat a/cs. 2nd month: I had sold seven demat a/cs. 3rd month: I had sold eight demat a/cs. 4th month: I had sold ten demat a/cs.

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LIMITATIONS:
MOST OF THE PEOPLE ARE NOT AWARE OF SHARES. THE TIME LIMIT WAS A GREAT CONSTRAINT. MOST OF THE PEOPLE ARE INTERESTED TO INVEST ONLY AT THE TIME OF
INCOME TAX RETURNS.

CUSTOMERS WHO ARE UNAWARE OF ON LINE TRADING ARE NOT INTERSTED

TO INVEST IN SHARES BECAUSE OF ON LINE TRADING.

33

CONCLUSION:
We are improving our communication skills up to the corporate level. We can able to convenience the customers in order to get the exact information about their operations in the organizations. We can able to know the market share of the share khan and its image in the market when compared to its competitors. We came to know about how to maintain the interpersonal relations with the officials. We learned how to approach the higher officials in the companies.

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35

A REPORT ON

A STUDY ON AWARENESS AND PREFERNCE FOR DEMAT SERVICES AND ITS IMPACT ON MARKET SHARE OF SHARE KHAN

By R.S.S .BHAVANARAYANA. Eno: 6ND02859 Center: INC Eluru.

(SHARE KHAN)
36

Contract: A REPORT ON

A STUDY ON AWARENESS AND PREFERENCE FOR DEMAT SERVICES AND ITS IMPACT ON SHARE OF SHAREKHAN. BY R.S.S.BHAVANARAYANA M.B.A.
A report submitted in partial fulfillment of The requirements of MBA / MCA Program (Class of 2007)

Copies marked list: Company Guide (Mr.G.V.L. NARAYANA)

37

 Faculty Guide (Mr.T.VIJAY KUMAR)

INTRODUCTION TO THE TOPIC:

My topic was A STUDY
MARKET SHARE OF SHARE KHAN . AWARENESS AND

ON

PREFERENCE FOR DEMAT SERVICES AND ITS IMPACT ON

In this project first I want to know how many people were aware about demat services and their preference for demat services and to know how it improves the market share of share khan

COMPANY DEMAND:
Company demand is measured on the basis of its marketing efforts with respect to its competitors. The companys efforts such as effective promotional and advertising strategies, pricing patterns, distribution of the product and effective after sales service determine the companys market share of the product and effective after sales service determine the companys market share of the product depends on the amount of expenditure spent on marketing relative to the competitors.

38

IMPORTANCE OF THE STUDY:

At present, the financial system in India is in a process of rapid transformation, particularly after the introduction of reforms in the financial sector. As a result, the country has witnessed phenomenal changes in the money market, securities market, capital market, debt market and foreign exchange market. In this changed context, the role of financial services has assumed greater significance in our country. At present, numerous new financial intermediaries have started functioning with a view to extending varied services to the investing public in the area of financial services. Share Khan is providing various financial services to the public and also to the corporate. So the present study has much significance and wide scope not only to gain more knowledge about the Theoretical concepts but also to achieve practical experience in this area.

39

NEED OF THE STUDY

To analyze the concept of customer awareness and preference towards the demat services such as mutual funds, Equities, commodities, PMS, IPOs, Derivativites, insurance, postal savings. First a sample survey should be done on these things to know the awareness level of customers in this regard and by this the satisfactory levels of the existing investors who have already invested in shares. There is more competition in this industry so there is a need to retain the customer with the organization. So to sustain in the market the company has to follow various strategies by attracting new investors and to retain the existing investors to improve market share of their organization Now-a-days many of the companies had come into existence and they are giving many opportunities to mobilize the funds and they are following many strategies to attract the new customers and to retain the old customers. So, in this cut throat competition. The people like us are very important to the companies who can help them in developing their business and in monetary aspects also.

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METHODOLOGY OF THE STUDY:

The data collection methods include both primary and secondary collection methods. Primary method: This method includes the data collected from the personal interaction with authorized members of Share khan Securities limited. Secondary method: The secondary data collection method includes: The lecturers delivered by the superintendents of respective departments. The brochures and material provided by Share khan Securities limited. The data collected from the magazines of the NSE, economic times, etc. Various books relating to the investments, capital market and other related topics.

LIMITATIONS OF THE STUDY:

The study is confined to awareness and preference for demat a/csonly. Problems of listing are not covered due to limited time and to keep the study in manageable limits.

41

1.Customers opinions about shares in various aspects:

42

Table1:

OPTION security Assured in returns Less risk Good track of record investment horizon
30 25 20 15 10 5 0 % OF CUSTOMERS

% OF CUSTOMERS 30 20 30 10 10

security Assured in returns Less risk Good track of record investment horizon

INTERPRETATION:
43

From the above graph it is clear that 30% of investors felt shares are good according to security option. 20% of investors felt that shares are good according to returns option. 30% of investors felt that shares are good according to less risk option. 10% of investors felt that shares are good according to good track of record option. 10% of investors felt that shares are good according to investment horizon option.

44

2. OPINIONS OF INVESTORS TOWARDS SHARES: Table 2:

OPINIONS OF INVESTORS TOWARDS SHARES Fully satisfied Satisfied Partially satisfied Not satisfied

% OF INVESTORS 10 40 30 20

40 35 30 25 20 15 10 5 0 % OF INVESTORS Fully satisfied Satisfied Partially satisfied Not satisfied

45

INTERPRETATION:
In this survey, I came to conclude that 10% of total investors are fully satisfied by investing in shares, 40 % of investors are satisfied and 30% are partially satisfied, by investing in shares. The remaining 20% of investors are not satisfied because of various reasons.

3. Opinion of investors on various Investment objectives towards shares

Table 3:

OPINIONS OF INVESTORS High return Safety Regular returns Tax benefits

% OF INVESTORS 20 30 30 20

46

3 0 2 5 2 0 1 5 1 0 5 0

H hre rn ig tu Tx a b n fits ee H h ig re rn tu S fe a ty R g la eu r re rn tu s T xb n fits a ee

% F O IN E VS T R OS

INTERPRETATION:
In

this survey, I came to conclude that 20% of total investors

made their investment objective based on the high returns from the shares and, 30 % of investors made their investment objective based on the safety they get by shares and 30% of investors made their investment objective based on the regular returns getting out the shares and The remaining 20% of investors made their investment objective based up on the tax benefit they get through shares.

47

4. Source of information about demat services and its awareness. Table 4:

Source of information Friends/relatives Financial advisors/C.A

% OF INVESTORS 50 20

Personal analysis

30

100 80 60 40 20 0 % OF INVESTORS Personal analysis Financial advisors/C.A Friends/relatives

48

INTERPRETATION:
From the above graph it is clear that about 50% of the customers get the source of information about demat services through their friends/relatives ,and 20% of the customers from financial advisor/C.A ,And the remaining 30 % of the customers through their personnel analysis.

7.Analysis on Age factor who are aware about demat services: Table 7:

AGE 18-25 26-35 36-45 46-60 >60

% OF INVESTORS 10 25 35 20 10

49

This graph represents the perceptions of investors especially towards demat services according to age factor. Persons in the age group of 36-45 are more interested to know about demat services rather than the persons in the remaining age groups. Later the persons in the age group of 26-35 are interested know about demat services. persons who are in the beginning of their careers and the retired employees are less interested to know about demat services. .

Graph 7:

A e fac r an sis g to aly

>0 6 age range 10 20

46 0 -6 36 5 -4 26 5 -3

3 5 25

18 5 -2 0

10 10 20 %o in sto f ve rs 3 0 4 0

50

8.Awareness in customers about demat services: Table8:

Awareness about demat services Yes know, but not exactly No Graph8:
L v lo a a n s e e f w re e s

% of customers 25 40 35

2% 5 3% 5

4% 0

ys e

k o ,b t n t e a tly nw u o xc

n o

51

Interpretation: In Hyderabad city, approximately 25% of the people knew well about demat services, 40% of the people know about demat services. But 35 % of the people dont have any awareness about demat services.

9. Analysis on Age factor who are preference for demat services: Table 9:

AGE 18-25 26-35 36-45 46-60 >60

% OF preferances 10 25 35 20 10

This graph represents the perceptions of people preferences especially towards demat services according to age factor.

52

Persons in the age group of 36-45 are the age group who give more preference for demat services rather than the persons in the remaining age groups. Later the persons in the age group of 26-35 are giving preference for demat services. persons who are in the beginning of their careers and the retired employees are giving less preference for demat services. .

Graph 9:
Age factor analysis
>60 10 20

46-60 age range 36-45 26-35

35 25

18-25 0

10 10 20 % of investors 30 40

53

Most of the investors are interested to invest in shares because of its facilities like more returns, diversification, good tax benefits, more liquidity and especially professional management. Many persons in the age group of 30-50 years are interested to invest in shares.

People who have just started their career are also interested to invest, but through Systematic Investment Plan (SIP). People in the age group of more than 55 years are less interested to invest in shares because they dont want to take any risk. Most of the business people have awareness shares about rather than other category of people. Among employees, people that who are working in financial institutions have more awareness about this concept.

54

 Persons that who are in the mid of their careers are more interested to invest than the persons that who are in the beginning and end of their careers. When compared with the last 10 years, the number of people that who know about shares and who are interested to invest in shares is increasing gradually. The persons who have already invested in shares, the overall satisfactory levels are around 60% In all aspects.

Approximately 40% of the investors opined that investing in shares is good.

55

THE TRADING

MAJOR

PLAYERS

IN

ONLINE

SHAREKHAN.COM 5PAISA.COM KOTAKSTREET.COM INDIABULLS.COM ICICIDIRECT.COM HDFCSEC.COM

HDFC SECURITIES: Company Background:
HDFC Securities Ltd is promoted by the HDFC Bank, HDFC and Chase Capital Partners and their associates. Pioneers in setting up Dial-a-share service with the largest team of Telebrokers.

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

Pricing of HDFC Account

Account Opening: Rs 750

Demat: NIL, 1st year charges included in Account Opening

56

 Initial Margin : Rs 5000/- for non HDFC Bank Customers (AQB) Brokerage: Trading 0.15%* each side + ST Delivery 0.50%** each side + ST *Rs 25 Min Brokerage per transaction **Rs 8 Min Brokerage per transaction

ICICI Direct: Account Opening: Rs 750 Schemes: For short periods Rs 750 is refundable against
brokerage generated in a qtr. These schemes are introduced 34 times a year.

Demat: NIL, 1st year charges included in Account Opening

Plus a facility to open additional 4 DPs without 1st yr AMC. Only Rs 100 as linking charges per DP

Initial Margin : Nil Brokerage: ICICIs brokerage rates are inclusive of Stamp
duty (0.002%) for trading and 0.010% for delivery while service tax (10.2%) on BROKERAGE land turnover tax is EXTRA.

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 Delivery Vol per QTRBrokerage Square

Brokerage < 10 lakhs .10% Both Sides 10 25 lakhs Cr .08% Both Sides 25 50 lakhs .05% Both Sides 50 lakhs - 1 Cr Cr .04% Both Sides 1 Cr 2 Cr 035% Both Sides 2 Cr 5 Cr Both Sides > 5 Cr 0.25% 0.30% 0.35% 0.45% 0.55% 0.70% 0.75%

Vol

P.M.

< 50 lakhs 50 lakhs 2 2Cr-5Cr 5Cr- 10 10Cr -20 Cr > 20 Cr ---. .03%

INDIABULLS:
Company Background: India Bulls is a retail financial services company present in 70 locations covering 62 cities. It offers a full range of financial services and products ranging from Equities to Insurance. 450 + Relationship Managers who act as personal financial advisors.

58

Online Account Type:

Signature Account: Plain Vanilla Account with focus on

Equity Analysis. The equity analysis is a paid service even for A/c holders. low commissions and priority access to R.M. Pricing of IB Accounts: Signature Account Bulls * Account Opening: Rs 250 Opening: Rs 750 * Demat: Rs 200 if POA is signed, Rs.200 if POA is signed, No AMC for this DP this DP * Initial Margin: NIL Margin: NIL * Brokerage: Negotiable Negotiable * Brokerage: * Initial No AMC for * Demat: * Account Power India

Power India bulls: Account with sophisticated trading tools,

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PAID Research: SCHEME WebBased-1-Month-500: Website WebBased-1-Month-6000: Website PrintReport-1-Month-750: Website + 10 Reports Delivered PrintReport-1-Month-9000: Website + 10 Reports Delivered View & Print on View & Print on View & Print on FACILITY View & Print on

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Kotakstreet:
Company Background: Kotakstreet is the retail arm of Kotak Securities. and Goldman Sachs. Online Account Type Twin Advantage / Green Channel : 2 DPs, Limit against shares Free Way: Flat Rs 999 Cover Charge p.m, 0.03% per transaction High Trader : 6 Times Exposure Cash & Derivatives, Auto sq off 2:55 Cash Expressway : Spot payment, additional 0.5% charges For Kotak FastLane / Keat Lite / Keat Desktop are trading interfaces. Keat Desktop with advanced tools comes at a charge of Rs 500 p.m, Non refundable. PRICING OF KOTAK Account Opening : Rs 500 Demat: Rs 22.5 p.m Initial Margin : Rs 5000(Compulsory)
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Kotak

Securities limited is a joint venture between Kotak Mahindra Bank

 Min Margin Retainable : Rs 1000 Brokerage Slab wise: brokerage. Higher the volume, lower the

Even older customers (on 0.25% & 0.40%) have been moved to the slab wise structure w.e.f 1/4/2004

Slab structure of Kotak Delivery Vol p m P.M. Brokerage ** < 1 lakhs 0.10% Both Sides 1 lakhs 5 lakhs 0.08% Both Sides 5 lakhs 10 lakhs 0.05% Both Sides 10 lakhs - 20 lakhs Both Sides 20 lakhs 60 lakhs 0.035% Both Sides 60 lakhs - 2 Cr 0.03% Both Sides 0.25% ---do--0.30% > 5 Cr 0.40% 2 Cr 5 Cr 0.04% 0.50% 25 lakhs 2 Cr 0.60% 10 lakhs 25 lakhs 0.65% < 10 lakhs Brokerage * Square Vol

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>2 --------

0.20%

---* Brokerage is

* Brokerage is inclusive of All Taxes inclusive of All Taxes * DP Charges Extra * Min Brokerage of Rs 0.05 per share of Rs 0.01 per share Derivatives Vol off p m < 2 Cr 2 Cr - 5.5 Cr 5.5 Cr 10 Cr > 10 Cr Brokerage

* Min Brokerage

0.07% Both Sides 0.05% Both Sides 0.04% Both Sides 0.03% Both Sides

* Brokerage is inclusive of All Taxes.

5paisa Company Background

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

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Apart from offering online trading in stock market the company offers

Mutual funds online.

It also acts as a distributor of various financial services i.e. GOI securities, Company Fixed Deposits, Insurance. Limited ground network, present in 20 cities Online Account Types Investor Terminal : Investors / Students Trader Terminal : Day Traders / HNIs PRICING FOR RETAIL CLIENTS Investor Terminal Account Opening : Rs 500

Demat 1st Yr : Rs 250

Initial Margin : Rs 2500 (Compulsory) Min Margin Retainable : Rs 1000 Brokerage : Trading 0.10% each side + ST Delivery 0.50% each side + ST PRICING FOR HNI CLIENTS Trader Terminal Account Opening : Rs 500
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Demat 1st Yr : Rs 250

Initial Margin : Rs 5000(Compulsory) Min Margin Retainable : Rs 1000 Brokerage : Trading 0.10% each side + ST Delivery 0.50% each side + ST (Negotiable to 0.05% each side & 0.25%) Account Access Charges Monthly Rs 800, adjustable against Brokerage Yearly Rs 8000, adjustable against brokerage

Recommendations

Steps should be taken to increase the awareness of people towards Demat services. It is better to concentrate on middle level income segment through Systematic Investment Plans, because most of the current investors of shares belong to high level income groups. Stock Exchange should provide a better Service to their respective investors & distributors.
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 The care should be taken to have a better professional management.

Steps should be taken to increase the awareness of people by mass communication by the Stock Exchange.

Conclusion:

Things have changed for the better with the SHAREKHAN going on-line coupled with endeavor to stream line the whole trading system, things have changed dramatically over the last 3 to 4 years. New and advanced technologies have breached geographical and cultural barriers, and have brought the countrywide market to doorstep. In the present scenario to compete with the Brokers would require sound infrastructure and trading as per international standards. The introduction of on-line trading would influence the investors resulting in an increase in the business of the exchange. It has helped the brokers handling a vast amount of transactions and this can be an efficient trading, delivering, settlement system with
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adequate protection to investors. The trading of SHAREKHAN of the first day was Rs. 1.8 crores.

Due to invention of online trading there has been greater benefit to the investors as they could sell / buy shares as and when required and that to with online trading. The brokers has a greater scope than compared to the earlier times because of invention of online trading. The concept of business has changed today, this is a service oriented industry hence the survival would require them to provide the best possible service to the clients.

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Questioners
MARKET RESERCH ON INVESTERS PREFERENCES (CAPITAL MARKET)
1. Personal Details. Name : Address: Contact No: E-mail ID : 2. Age : ________

3. Occupation : __________________ 4: MonthlyIncome : ________________ 5. Which company do you prefer to perform trading SHARE KHAN/ICICI Direct/Indian Bulls/UTI Securites If not SHARE KHAN , Reason __________________________ 6. Are you satisfied with the services of SHARE KHAN If No, Reason __________________________ 7. Are You interested in Trading / Investing : Yes / No If No, Reason __________________________

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8. If provided proper guidance are you interested in Trading / Investing : Y/ N 9. Reason behind trading / investments : Future plannings/ Earnings / Exemption in tax/ Others 10. What type of investment would you prefer? Mutual funds Derivatives. 11. Your investments are usually for : Short term / Medium term / Long Term 12. In a scale of 1- 10 rate the areas of your knowledge . Mutual funds Derivatives. 13. Do you have a D-mat Account : Yes / No if Yes, where do you have your D-mat Account : _____________ 14. Do you Prefer : Online Trading or Offline Trading / Equities / Commodities / PMS / IPO ? / Equities / Commodities / PMS / IPO ?

For Official Use: Interviewers Opinion:

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BIBLIOGRAPHY:
To identify the market potential customers we need to study the entire market, so we have to learn some of the typical marketing terminologies for that I gone through Business today ICFAI Journal To update my knowledge in the field of marketing to do my project effectively I refer some of the books like Philip kotlers marketing ideas, ideas, ICFAI Journals. www.icfaijournals.com www.valueresearchonline.com www.sharekhan.com

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