A Project Report On

ANALYSIS OF INDIAN STOCK MARKET AND COMPARISON OF CORPORATE STOCK

BROKERS

IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE OF

Bachelor of Business Administration (BBA)

Submitted By

Name: Vuyyala Madhu

H.T.No: 18011092684045

Under the guidance of

Dr. P.S.M.L.Vasantha
Department of Commerce

HINDI MAHAVIDYALAYA
(AUTONOMOUS & NAAC-RE ACCREDITED) (ARTS,
COMMERCE, SCIENCE AND P.G. CENTRE)
(Affiliated Osmania University)
Nallkunta, Hyderabad-500 044
( MAY 2021)

1
 DEPARTMENT OF COMMERCE

CERTIFICATION

This is to certify that the Project Report title “ANALYSIS OF INDIAN STOCK
MARKET AND COMPARISON OF CORPORATE STOCK BROKERS ” submitted in partial
fulfillment for the award of BBA Program of Department of Commerce, HINDI
MAHAVIDYALAYA, Hyderabad, was carried out by Mr. Vuyyala Madhu,
H.T.No: -18011092684045 under my guidance.

Dr. P.S.M.L. Vasantha Dr. Y.V.Rao

Project Guide Principal

External Examiner

2
 CANDIDATE DECLARATION

I hereby declare that this project Report entitled “ANALYSIS OF INDIAN STOCK
MARKET AND COMPARISON OF CORPORATE STOCK BROKERS ” submitted by
me to the Department of Commerce HINDI MAHAVIDYALAYA, Hyderabad, is a
bonafide work undertaken by Me. This has not been submitted to any other University
or Institution for the award of any degree/diploma/certificate.

Signature of the student

Roll NUMBER

3
 ACKNOWLEDGEMENTS

I am proud enough to express my sincere thanks to our honorable Principal Dr. Y.V.Rao

his encouragement and valuable suggestions for the Project Work.

My special thanks to Dr. P.S.M.L. Vasantha esteemed project guide for her patronage help, and

inspiring guidance that resulted in completion of this project report.

I extend my sincere thanks to vice principal Mrs. Ashwini Sampurkar for her continuous support in the

completion of this project.

Last but not least I would like to thank my parents, friends and well wishers who encouraged me to do this

project work and all who contributed directly or indirectly in completing this project work.

Name of the student:Vuyyala Madhu

Roll Number: 18011092684045

4
 EXECUTIVE SUMMARY

This report is about the analysis of Indian stock market, the online trading and comparative analysis of
various major corporate stock brokers. The report starts with the overview of Indian Stock Market, followed
by the company profile of Pee Aar Securities Ltd., its history, evolution and achievements. The project report
also details the basic comparison of the company is with the most reputed brokerage players in the market.
The comparison is done through different parameters.

The project also fulfills the requirement in giving full knowledge to the customers about the trading
procedure of securities and various products of Pee Aar Securities Ltd. It shows the factors which influence
the customer to buy the shares online or buy offline.

The report generates awareness about online trading of securities and gives detailed working and information
about Pee Aar Securities Ltd. and compares it with the major corporate stock brokers in the market and
provides the suggestions for improvement.

5
 INDEX Page No.
I. Chapter 1 – Introduction 7-34
1.1 Overview of the Industry as a whole

1.2 About Pee Aar Securities Ltd.

1.3 Profile of the organization

1.4 Competition Information

1.5 SWOT Analysis of the Organisation

II. Chapter 2 – Research Methodology

35-39
2.1 Objectives of the study

2.2 Scope of the Study

2.3 Managerial Usefulness of the study

2.4 Research Design and Data collection

40-47
III. Chapter 3 – Data Analysis & Findings
3.1 Analysis of Data

3.2 Findings

48-49
IV. Chapter 4 – Conclusions
50-52
V. Chapter 5 – Recommendations & Suggestions & Limitations of the
study

53-54
Bibliography

55-56
Annexure

6
 CHAPTER-1
INTRODUCTION

7
1.1 Overview of Indian Financial Market

Origin of Indian Stock Market

The origin of the stock market in India goes back to the end of the eighteenth century when long- term
negotiable securities were first issued. However, for all practical purposes, the real beginning occurred in the
middle of the nineteenth century after the enactment of the companies Act in 1850, which introduced the
features of limited liability and generated investor interest in corporate securities. An important early event
in the development of the stock market in India was the formation of the native share and stock brokers
'Association at Bombay in 1875, the precursor of the present day Bombay Stock Exchange. This was
followed by the formation of associations/exchanges in Ahmedabad (1894), Calcutta (1908), and Madras
(1937). In addition, a large number of ephemeral exchanges emerged mainly in buoyant periods to recede
into oblivion during depressing times subsequently.
Stock exchanges are intricacy inter-woven in the fabric of a nation's economic life. Without a stock
exchange, the saving of the community- the sinews of economic progress and productive efficiency-would
remain underutilized. The task of mobilization and allocation of savings could be attempted in the old days
by a much less specialized institution than the stock exchanges. But as business and industry expanded and
the economy assumed more complex nature, the need for 'permanent finance' arose. Entrepreneurs needed
money for long term whereas investors demanded liquidity – the facility to convert their investment into cash
at any given time. The answer was a ready market for investments and this was how the stock exchange
came into being.
Stock exchange means anybody of individuals, whether incorporated or not, constituted for the purpose of
regulating or controlling the business of buying, selling or dealing in securities. These securities include:
(i) Shares, scrip, stocks, bonds, debentures stock or other marketable securities of a like nature in or of
any incorporated company or other body corporate;
(ii) Government securities; and
(iii) Rights or interest in securities.

8
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 80 per cent of the equity volume
traded in India. The NSE and BSE are equal in size in terms of daily traded volume. The BSE has over 6000
stocks listed. Most key stocks are traded on both the exchanges and hence the investor could buy them on
either exchange. Both exchanges have a different settlement cycle, which allows investors to shift their
positions on the bourses. The primary index of BSE is BSE Sensex comprising 30 stocks. NSE has the S&P
NSE 50 Index (Nifty) which consists of fifty 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.
It facilitates more efficient processing, automatic order matching, faster execution of trades and
transparency; the scrip's traded on the BSE have been classified into 'A', 'B1', 'B2', 'C', 'F' and 'Z' groups. The
'A' group shares represent those, which are in the carry forward system (Badla). The 'F' group represents the
debt market (fixed income securities) segment. The 'Z' group scrip's 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, Mutual Funds, FIIs and other
participants in Indian secondary and primary market is the Securities and Exchange Board of India (SEBI)
Ltd.

9
Structure of Indian Financial Market
Following diagram gives the structure of Indian Financial System:

10
In general, the financial market divided into two parts, Money market and capital market. Securities market
is an important, organized capital market where transaction of capital is facilitated by means of direct
financing using securities as a commodity. Securities market can be divided into a primary market and
secondary market.

PRIMARY MARKET
The primary market is an intermittent and discrete market where the initially listed shares are traded first
time, changing hands from the listed company to the investors. It refers to the process through which the
companies, the issuers of stocks, acquire capital by offering their stocks to investors who supply the capital.
In other words primary market is that part of the capital markets that deals with the issuance of new
securities. Companies, governments or public sector institutions can obtain funding through the sale of a new
stock or bond issue. This is typically done through a syndicate of securities dealers. The process of sellin g
new issues to investors is called underwriting. In the case of a new stock issue, this sale is called an initial
public offering (IPO). Dealers earn a commission that is built into the price of the security offering, though it
can be found in the prospectus.

SECONDARY MARKET
The secondary market is an on-going market, which is equipped and organized with a place, facilities and
other resources required for trading securities after their initial offering. It refers to a specific place where
securities transaction among many and unspecified persons is carried out through intermediation of the
securities firms, i.e., a licensed broker, and the exchanges, a specialized trading organization, in accordance
with the rules and regulations established by the exchanges.

A bit about history of stock exchange they say it was under a tree that it all started in 1875. Bombay Stock
Exchange (BSE) was the major exchange in India till 1994. National Stock Exchange (NSE) started
operations in 1994.

NSE was floated by major banks and financial institutions. It came as a result of Harshad Mehta scam of
1992. Contrary to popular belief the scam was more of a banking scam than a stock market scam. The old

11
methods of trading in BSE were people assembling on what is called a ring in the BSE building. They had a
unique sign language to communicate apart from all the shouting. Investors weren't allowed access and the
system was opaque and misused by brokers. The shares were in physical form and prone to duplication and
fraud.

NSE was the first to introduce electronic screen based trading. BSE was forced to follow suit. The present
day trading platform is transparent and gives investors prices on a real time basis. With the introduction of
depository and mandatory dematerialization of shares chances of fraud reduced further. The trading screen
gives you top 5 buy and sell quotes on every scrip.
A typical trading day starts at 9.00 am ending at 3.30 pm. Monday to Friday. BSE has 30 stocks which make
up the Sensex .NSE has 50 stocks in its index called Nifty. FII s Banks, financial institutions mutual funds
are biggest players in the market. Then there are the retail investors and speculators. The last ones are the
ones who follow the market morning to evening; Market can be very addictive like blogging though stakes
are higher in the former.

MARKET BASICS

• Electronic Trading:
Electronic trading eliminates the need for physical trading floors. Brokers can trade from their offices, using
fully automated screen-based processes. Their workstations are connected to a Stock Exchange's central
computer via satellite using Very Small Aperture Terminus (VSATs). The orders placed by brokers reach the
Exchange's central computer and are matched electronically.

• Exchanges in India:
The Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) are the country's two leading
Exchanges. There are 20 other regional Exchanges, connected via the Inter- Connected Stock Exchange
(ICSE). The BSE and NSE allow nationwide trading via their VSAT systems.

• Index:
An Index is a comprehensive measure of market trends, intended for investors who are concerned with
general stock market price movements. An Index comprises stocks that have large liquidity and market
capitalization. Each stock is given a weight age in the Index equivalent to its market capitalization. At the
NSE, the capitalization of NIFTY (fifty selected stocks) is taken as a base capitalization, with the value set at

12
1000. Similarly, BSE Sensitive Index or Sensex comprises 30selected stocks. The Index value compares the
day's market capitalization vis-à-vis base capitalization and indicates how prices in general have moved over
a period of time.

• Execute an Order:
Select a broker of your choice and enter into a broker-client agreement and fill in the client registration form.
Place your order with your broker preferably in writing. Get a trade confirmation slip on the day the trade is
executed and ask for the contract note at the end of the trade date.

• Need a Broker:
As per SEBI (Securities and Exchange Board of India.) regulations, only registered members can operate in
the stock market. One can trade by executing a deal only through a registered broker of a recognized Stock
Exchange or through a SEBI-registered sub-broker.

• Contract Note:
A contract note describes the rate, date, time at which the trade was transacted and the brokerage rate. A
contract note issued in the prescribed format establishes a legally enforceable relationship between the client
and the member in respect of trades stated in the contract note. These are made in duplicate and the member
and the client both keep a copy each. A client should receive the contract note within 24 hours of the
executed trade.

• Split:
A Split is book entry wherein the face value of the share is altered to create a greater number of shares
outstanding without calling for fresh capital or altering the share capital account. For example, if a company
announces a two-way split, it means that a share of the face value of Rs 10 is split into two shares of face
value of Rs 5 each and a person holding one share now holds two shares.

• Buy Back:
As the name suggests, it is a process by which a company can buy back its shares from shareholders. A
company may buy back its shares in various ways: from existing shareholders on a proportionate basis;
through a tender offer from open market; through a book-building process; from the Stock Exchange; or
from odd lot holders. A company cannot buy back through negotiated deals on or off the Stock Exchange,
through spot transactions or through any private arrangement.

• Settlement Cycle:

13
The accounting period for the securities traded on the Exchange. On the NSE, the cycle begins on
Wednesday and ends on the following Tuesday, and on the BSE the cycle commences on Monday and ends
on Friday. At the end of this period, the obligations of each broker are calculated and the brokers settle their
respective obligations as per the rules, bye- laws and regulations of the Clearing Corporation. If a transaction
is entered on the first day of the settlement, the same will be settled on the eighth working day excluding the
day of transaction. However, if the same is done on the last day of the settlement, it will be settled on the
fourth working day excluding the day of transaction.

• Auction:
An auction is conducted for those securities that members fail to deliver/short deliver during pay- in. Three
factors primarily give rise to an auction: short deliveries, un-rectified bad deliveries, and un-rectified
company objections.

• Rolling Settlement:
The rolling settlement ensures that each day's trade is settled by keeping a fixed gap of a specified number of
working days between a trade and its settlement. At present, this gap is five working days after the trading
day. The waiting period is uniform for all trades. In a Rolling Settlement, all trades outstanding at end of the
day have to be settled, which means that the buyer has to make payments for securities purchased and seller
has to deliver the securities sold. In India, we have adopted the T+5 settlements cycle, which means that a
transaction entered into on Day 1 has to be settled on the Day 1 + 5 working days, when funds pay in or
securities pay out takes place.

Advantages of Rolling Settlements

As mentioned earlier, this is the system practiced in developed countries. Pay outs are quicker than in weekly
settlements, and investors will benefit from increased liquidity. The other benefit of the modified system is
that it keeps cash and forward markets separate. In the current system, the trader has five days to square off
his transaction which leads to a high level of speculation as people even without funds tend to "play" the
market. During volatile markets, especially in a bearish market, this often leads to a payment problem which
has dogged the Indian stock exchanges for a long time. It provides for a higher degree of safety, and once
mechanisms such as futures and stock-lending become popular, it would result in quality speculation and
genuine investor interest.

14
 • Short Selling:
Short selling is a legitimate trading strategy. It is a sale of a security that the seller does not own, or any sale
that is completed by the delivery of a security borrowed by the seller. Short sellers take the risk that they will
be able to buy the stock at a more favorable price than the price at which they "sold short."The selling of a
security that the seller does not own, or any sale that is completed by the delivery of a security borrowed by
the seller, Short sellers assume that they will be able to buy the stock at a lower amount than the price at
which they sold short.

• Separate Market for Auctions:

The buy/sell auction for a capital market security is managed through the auction market. As opposed to the
normal market where trade matching is an on-going process, the trade matching process for auction starts
after the auction period is over. If the shares are not bought at the auction, i.e., if the shares are not offered
for sale, the Exchange squares up the transaction as per SEBI guidelines. The transaction is squared up at the
highest price from the relevant trading period till the auction day or at 20 per cent above the last available
Closing price whichever is higher. The pay-in and pay-out of funds for auction square up is held along with
the pay-out for the relevant auction.

• Bad Delivery:
SEBI has formulated uniform guidelines for good and bad delivery of documents. Bad delivery may pertain
to a transfer deed being torn, mutilated, overwritten, defaced, or if there are spelling mistakes in the name of
the company or the transfer. Bad delivery exists only when shares are transferred physically. In "Demat" bad
delivery does not exist.

• Dematerialization:
Dematerialization in short called as 'demat' is the process by which an investor can get physical certificates
converted into electronic form maintained in an account with the Depository Participant. The investors can
dematerialize only those share certificates that are already registered in their name and belong to the list of
securities admitted for dematerialization at the depositories.

• Depository:
The organization responsible to maintain investor's securities in the electronic form is called the depository.
In other words, a depository can therefore be conceived of as a "Bank" for securities. In India there are two

15
such organizations viz. NSDL and CDSL. The depository concept is similar to the Banking system with the
exception that banks handle funds whereas a depository handles securities of the investors. An investor
wishing to utilize the services offered by a depository has to open an account with the depository through
Depository Participant.

• Depository Participant:
The market intermediary through whom the depository services can be availed by the investors is called a
Depository Participant (DP). As per SEBI regulations, DP could be organizations involved in the business of
providing financial services like banks, brokers, custodians and financial institutions. This system of using
the existing distribution channel (mainly constituting DPs) helps the depository to reach a wide cross section
of investors spread across a large geographical area at a minimum cost. The admission of the DPs involves a
detailed evaluation by the depository of their capability to meet with the strict service standards and a further
evaluation and approval from SEBI. Realizing the potential, all the custodians in India and a number of
banks, financial institutions and major brokers have already joined as DPs to provide services in a number of
cities.

OFFLINE TRADING
Offline trading got on the track in India in 1875 after the establishment of Bombay Stock Exchange.
Traditionally stock trading is done through stock brokers, personally or through telephones.
As number of people trading in stock market increase enormously in last few years, some issues–

location constraints

busy phone lines

miscommunication etc

started growing in stock broker offices. Information technology (Stock Market Software) helped stock
brokers in solving these problems with Online Stock Trading.

ONLINE TRADING

Online Stock Market Trading is an internet based stock trading facility. Investor can trade shares through a

16
website without any manual intervention from Stock Broker.

Online trading arrived in India around Year 2000. Somewhere in the nineties there was a whole move to
make shares electronic and fungible (like currency notes, a share are a share) and move them to the
dematerialized (demat) form. Slowly, from the physical world, shares moved into the digital world at the
NSDL. Then, trading became electronic.

First it was a few of the blue chips, then it was most of the blue chips and slowly it has taken over most of
the market. New issues are today, exclusively electronic. If digitization took care of the back end, it has also
made life easy at the front end. The act of placing buy/sell orders for financial securities and/or currencies
with the use of a brokerage's internet-based proprietary trading platforms. The use of online trading increased
dramatically in the mid to late-'90s with the introduction of affordable high-speed computers and internet
connections.

RAPID GROWTH
With introduction of online trading, the growth has been exceptionally good for the stock markets in India.

In the back of wide ranging reforms in regulation and market practice as also the growing

participation of foreign institutional investment, stock markets in India have showed phenomenal
growth since the early 1990s.

Investor base continued to grow from domestic and international markets. The value of share trading

witnessed a sharp jump too.

Stock markets became intensely technology and process driven, giving little scope for manual
intervention that has been the source of market abuse in the past.

Electronic trading, digital certification, straight through processing, electronic contract notes, online

broking have emerged as major trends in technology.

Risk management became robust reducing the recurrence of payment defaults.

Product expansion took place in a speedy manner. Indian equity markets now offer, in addition to

trading in equities, opportunities in trading of derivatives in futures and options in index and stocks.

Stock exchange reforms brought in professional management separating conflicts of interest

between brokers as owners of the exchanges.

17
Essential component - The essential component of Internet-based trading is the interface between

broker, bank and depository participant, and as Net-based trading becomes a reality this interface will
develop.

Why trade online?

Access to Information , Research & statistics on the website

Transparency

Hassle Free

Less Time consuming

Control in the hands of Investor

After Market Orders

Trade any time anywhere

Completely Safe & Secured Transactions

Advantages of online trading

Internet trading facilitates clients to trade as and when they want, provided they have a Net

connection.

Clients who trade through the Net will be able to do it with a lower transaction cost compared to

traditional brokers.

This trading system helps the broker to expand his business.

Without much capital investment, the broker will be able to enlarge his client base.

With just one office in the metro, the broker will be able to do business with many times the number

18
 of existing clients.

Major issues
□ Internet-based trading, to become really popular, should have both seamless trading and seamless

settlement; whereas now only the former is possible this prevents the Internet broking community
from announcing large-scale reductions in brokerage.

□ Ease of trading and settlement along with reduction in transaction costs is what investors look for in

the new system. Hence, bankers and DPs will have to change their systems to enable seamless
settlements.

□ At present, when the client pays an advance deposit, the broker fixes the exposure limit, and if there

is a sudden fluctuation in the share price, the client is not able to trade unless funds move to the
broker physically. This process takes a minimum of two days, by which time the price would have
changed. The ideal situation is where the client is able to trade on the basis of his deposit in the bank,
which will be accessible to the broker through networking.

□ Another serious issue is the efficiency of the Internet infrastructure in the country, which affects the

speed of execution. During the day, traffic is so great that either the line is not available or it is
frustratingly slow, defeating the very purpose of Net-based trading.

□ In short, seamless settlement of Net transactions and improvement of the Internet infrastructure are of

vital importance for exponential growth of Internet-based trading.

19
1.1 About Pee Aar Securities Ltd.(PASL)

Pee Aar Securities Ltd. is a Delhi based full-fledged services broking firm incorporated in the year 1995. Its
clientele comprise high net worth individuals, corporate, NRI, mutual funds, as well as other financial
institutions. The company is one of the leading brokerage firms in the country serving investors both in India
and overseas. With an impressive track record in terms of services to its broad clientele, the key ingredient
for the company's success has been its customer-centric-approach and capital growth through structured
counseling and focus.
Its corporate philosophy has focus on their quality service with a `feel`, thus, justifying fully the very motto
of their establishment, i.e.
P – Promptness, R – Reliability, S - Satisfaction
All this is achieved by a highly dedicated team of professionals supported by a high tech infrastructure. Its
customized approach respects the individuality of their client, who has uniqueness in his own sense, and
upholds his comfort & satisfaction level. Its key objective is to identify emerging growth opportunities for
wealth creations without exposing to undue risk.
Its strength lies in their prominence as a

Member of National Stock Exchange.

Clearing & Trading member of F&O segment of NSE.

A registered depository participant of NSDL & hence offers full-fledged depository services.

Trading terminals of two Commodity Exchanges MCX/NCDEX.

Comprehensive approach towards investments advice for MFs.

A separate section for IPO segment of the financial sector.

Intensive equity research (technical as well as fundamental) by investment analysts.

Besides, our other activities include Trading in BSE as well as arbitration etc.

It is, therefore, no surprise that they have achieved consistent & exceptional growth so far & are confident to
achieve newer heights.

20
 History
● Founded in 1995
● Founders – Mr. Ved Prakash Gupta and Ashok Kumar Gupta
● Both the founders are well qualified with more than 20 years of experience in capital markets.

Founders & Promoters

“A journey of a thousand miles always begins with one wise step”

Founded in 1995, by

Mr. Ved Prakash Gupta & Mr. Ashok Kumar Gupta

Mr. Ved Prakash Gupta, Chairman and Managing Director of Pee Aar Securities Ltd. and Mr. Ashok Kumar
Gupta, Chairman and Managing Director of Hi-tech Securities Ltd. are the founders and promoters of Pee
Aar Securities. Both are well qualified. They are an embodiment of professional excellence. They are the
visionaries who planted the sapling of the giant tree called PRS. With rock solid reserve and firm
commitment, they have shaped their vision to reality. They have a rich experience of more than 20 years in
the capital market. Their exceptional leadership skills and outstanding commitment has made PASL as one of
the leading investment solutions and services provider. They both assign top priority to the principles of
transparency, honesty and integrity in all our dealings.

Core Purpose & Values

Vision
At Pee Aar Securities Limited, they remain committed to be the most trusted & globally reputed Stock
Broker House by offering Best Knowledge, Maximum Returns, Lasting Client Satisfaction and Nothing Else
by working collectively as a Team along with their esteemed Sub-Brokers. They aim to be a global major in
providing complete investment solutions, with relentless focus on investor care, through superior efficiency
and complete transparency.

21
Values

1. Customer-centric Approach
At Pee Aar Securities Limited, customers come first. And their satisfaction is not just their top
priority but also the driving force for them, every single day.
2. Transparency
Honesty is their forte. They believe in dealing on thoroughly ethical grounds, being fair and
transparent with their customers.
3. Meritocracy
They recognize and appreciate efforts put in by their employees. And they, as a matter of fact, reward
and distinguish each one of them ceaselessly.
4. Solidarity
They believe in sharing a forthright and respectful relationship with their business partners and
employees. They consider them both as their team associates, who work together, succeed together.
5. Ethical deal
Honesty is the only policy.

22
 Management

Ved Prakash Gupta : Director

(B.SC,L.LB)
Ashok Kumar Gupta : Director
(MA-ECO,M.PHIL)
Nikhil Gupta : Director
(MBA)
Mukesh Pal Verma : Chief Compliance Officer

Milestones

Many landmarks have been achieved and are awaiting more others…………

✔ Year 1988-1995
Mr. Ved Prakash Gupta and Mr. Ashok Kumar Gupta would lay foundation of Primary market and became
Sub-broker of Delhi Stock Exchange. The venture stands out from the rest due to their approach of
Research-based broking even when Sub-brokers.

✔ Year 1995
Mr. Ashok Gupta laid the foundation of Pee Aar Securities Limited. Thereafter, they took the membership
of The National Stock Exchange (NSE).

✔ Year 1996
Mr. Ved Prakash Gupta and Mr. Ashok Kumar Gupta incorporated Pee Aar Securities Limited. Thereafter,
Equity Research commenced and Sub Broker model came to life. The Trading Services are, now, being
offered from their four centers. First of its kind study initiated to identify the biggest and fastest wealth
creating companies in Indian Stock markets.

✔ Year 1997
Hitech, the sister concern of Pee Aar Securities Limited, took the membership of Delhi Stock Exchange.
Today, Pee Aar Securities Limited is the market leader in IPO in Delhi.

23
 ✔ Year 1998
Pee Aar Securities Limited applied for the membership of NSDL for Depository services and floated the
Mutual Fund Division Insurance Division.

✔ Year 1999
Became the member of NSDL with DP id IN301428.

✔ Year 2001
Starts offering Derivatives products and advisory services on NSE.

✔ Year 2002
The website www.peeaar.in developed by the company.

✔ Year 2003
Mr. Nikhil Gupta associated with Pee Aar Securities Limited.

✔ Year 2005
Trading in Bombay Stock Exchange started through its subsidiary.

✔ Year 2006
PRS offered services in Commodity Market through its subsidiary. Mr. Nikhil
Gupta became the Director of the company.

✔ Year 2007
Bombay Stock Exchange trading started through DSE financial services.

✔ Year 2008
Took the membership of MCX Ltd. in its subsidiary. Life insurance
goes live with Private players.
General insurance services started.

✔ Year 2009-2010

24
 Took the membership of NCDEX Ltd., NSE currency segment, and all other relevant exchanges.

✔ End of year 2011

▪ Commanding the faith of more than 50000 trading clients & overall 1,00,000 investors.

▪ More than 20000 DP clients

▪ More than 1000 trading terminals of NSE, BSE, NCDEX & MCX installed

▪ Clearing member for 52 Trading Members MCX/DGCX/NSE/BSE

▪ Dedicated Proprietary Arbitrage Desk with 300+ Arbitragers

▪ Handles 50,000+ trades/day, achieved US$ 500+ Mn volume for the period Apr- Dec, ‟11

▪ Providing advisory services to HNIs & Corporates.

Still counting, various memberships awaited as well as applied for membership of National Multi Commodity
Exchange for the other divisions.

❖ ACCOLADE
Accolade PASL awarded the ISO Certificate 9001:2000 in the year 2006.

Pee Aar Securities Limited was incorporated in July 1995 under the Companies Act, 1956, by the trio of its
visionary Directors Mr. Ashok Kumar Gupta, Mr. Ved Prakash Gupta and Mr. Umesh Kumar Gupta.
Since its inception, the Director remained highly meticulous and particular about not only maintaining but
also setting the high standards in the Insurance Sectors by in compliance with IRDA guidelines, applied and
obtained the membership of The National Stock Exchange (NSE). Thereafter, Equity Research commenced
and Sub Broker model was brought into being by the committed and dedicated Pee Aar Securities Limited
team under the highly motivated leadership of the Directors. As a result of constantly and dedicated
endeavors, the Company has emerged as one of the fastest growing brand name in the Insurance Sector. The
Trading Services are, now, being offered from their four centers. First of its kind study initiated to identify
the biggest and fastest wealth creating companies in Indian Stock markets.

Pee Aar Securities Limited (PASL) is having its Corporate & Registered Office at AG-20, Shalimar Bagh,
New Delhi 110 088. Owing to strict compliance with the strict international Quality norms, the Company is a
well-established name in the Insurance Sector. PASL was awarded the ISO Certificate 9001:2000 in year

25
2006.
On the one hand, upholding the values expressed in Customer-centric Approach, Transparency, Meritocracy
Solidarity reflects PASL‟s objective to grow, while on the other hand, remaining committed to earning
goodwill through its commitment seek recognition as the most trusted and globally reputed Stock Broker
House by offering Best Knowledge, Maximum Returns, Lasting Client Satisfaction and Nothing Else by
working collectively as a Team along with their esteemed Sub-Brokers is Pee Aar Securities Limited motto.
And Pee Aar Securities Limited has been growing steadily on these bench-marks it set for itself that has
turned out to being their strong pillar. Put all these together have placed Pee Aar Securities Limited above
their competitors in the Indian Market. As a result, PASL has emerged a global name.

Profile of the Organisation

Looking into the day-by-day increasing demand for Online Trading, PASL has successfully launched its
state-of-the-art web based trading platform, through its websites www.peeaar.in and www.nowonline.in.
PRS Online is the techno savvy alternate of our broking services. Online service is for a segment of investors
who have different expectations from an equity wealth manager restricting their willingness and ability to
sort to premium advisory services. PRS has been serving its clients for over two decades in a variety of
disciplines.
PRS Online comes in really handy when an Investor/Trader is a self trader who would not be looking for a
premium advisory service. The big differential at PRS is that even here they have dealers who would assist
for them to trade independently, with just in case help.
PRS takes a client-focused approach to execution by providing unmatched accountability and transparent
dialogue.

Team of experienced professionals dedicated to serving the firm‟s corporate finance clients

Single point person responsible for each client

Focus on best possible execution

Products and Services Offered

❖ Equity trading

❖ Derivative Trading.

❖ Commodities Trading.

26
 ❖ Mutual fund & IPO distribution.

❖ Depository services (ISO 9001:2000) for Shares & Commodities.

❖ Real time internet trading.

❖ Web based accounting.

❖ Research support to the client through SMS and E-mails.

❖ Clearing services for trading members in NSE and Future & Options.

1. Equity
Equity investments generally refers to the buying and holding of share of stock on a stock market by
individuals and firms in anticipation of income from dividends and capital gain as the value of the stock
rises. It also sometimes refers to the acquisition of equity (ownership) participation in a private (unlisted)
company or a start-up (a company being created or newly created).When the investment is in infant
companies, it is referred to as venture capital investing and is generally understood to be higher risk than
investment in listed going-concern situations.
The equities held by private individuals are often held via mutual funds or other forms of pooled investment
vehicle, many of which have quoted prices that are listed in financial newspapers or magazines; the mutual
funds are typically managed by prominent fund management firms. Such holdings allow individual investors
to obtain the diversification of the fund(s) and to obtain the skill of the professional fund managers in charge
of the fund(s).

2. Derivatives
Since derivatives instrument provide good leverage opportunity, it is a great tool for speculation. Leverage is
a double edge sword for which one requires an equity advisor. Their advisors will also help them with
various strategies like Bull Spread, Bear Spread, Cover call writing, hedging strategies etc. This is to help
them to make better trading returns. The Equity Advisor doesn‟t stop at just that, he goes a step further to
ensure that client‟s trades are settled and traded with proper margin in their account in a timely manner. This
allows them to give them a convenient single window service and their advisor becomes the single point
contact for all their equity related matters.
3. Insurance

27
Added Life Insurance during April 2008 to their Wealth Management Portfolio thereby filling the gap in
their basket of the products and thus providing comprehensive financial planning to their clients covering not
all wealth creation solutions, but also wealth protection through proper risk management process. With
complete emphasis on the solution providing, they approach their clients, not merely with insurance product
per se, but with module (life profiler) to help their clients with objective based planning for life, identify and
understand the various risk attached to his/her life and later advising them with appropriate customized
solution.
MOSL through their insurance partners offers insurance coverage and wealth creation opportunities to meet
client‟s different financial goals during the various stages of client‟s life. The plans offer them the control to
manage their protection and investment in one account. It is designed to remove their worries and making
them secure in the knowledge that they and their loved ones are protected against any untoward events.
4. Mutual Fund
A mutual fund is just the connecting bridge or a financial intermediary that allows a group of investors to
pool their money together with a predetermined investment objective. The mutual fund will have a fund
manager who is responsible for investing the gathered money into specific securities (stocks or bonds).
When they invest in a mutual fund, they are buying units or portions of the mutual fund and thus on
investing becomes a shareholder or unit holder of the fund.

Mutual funds are considered as one of the best available investments as compare to others they are very cost
efficient and also easy to invest in, thus by pooling money together in a mutual fund, investors can purchase
stocks or bonds with much lower trading costs than if they tried to do it on their own. But the biggest
advantage to mutual funds is diversification, by minimizing risk & maximizing returns.
5. IPO
IPO or 'New Issues' is it is better known, are a source of great enthusiasm and excitement among investors
across the country. At PRS IPO Desk, they carefully analyze, prepare research notes and recommend IPO for
their clients to invest in. Their IPO Team does rigorous analysis on the quality of new issue, the company's
track record and its business plans. More importantly, it critically evaluates the pricing of the issue and its
friendliness. Given the background and experience of PRS RESEARCH TEAM they are able to identify the
Quality issues out of a series of new issues that hit the market.
6. Depository Services
A depository can be compared to a bank. A depository holds securities (like shares, debentures, bonds,
Government Securities, units etc.) of investors in electronic form. Besides holding securities, a depository
also provides services related to transactions in securities. A depository interfaces with the investors through

28
its agents called Depository Participant (DPs). If an investor wants to avail the services offered by the
depository, the investor has to open an account with a DP. This is similar to opening an account with any
branch of a bank in order to utilise the bank's services.
7. Commodity
Multi Commodity Exchange (MCX) is an independent commodity exchange based in India. It was
established in 2003 and is based in Mumbai. The turnover of the exchange for the period Apr -Dec 2011 was
INR 32 Trillion. MCX offers futures trading in Agricultural Commodities, Bullion, Ferrous & Non-ferrous
metals, Pulses, Oils & Oilseeds, Energy, Plantations, Spices and other soft commodities.

8. Corporate Fixed Deposits

Corporate fixed deposits are similar to banking FD's, except that the money invested is with a company and
not a bank. Deposits under corporate FD's are governed by the Companies Act under Section 58A. However,
these deposits are unsecured, On the other hand, companies FD's apart from giving a superior interest rate
than banks, also provide investors with a short-term deposits option with only a six month lock in period as
well as the benefit of having no income text deducted at source if the interest income is up to Rs 5,000 in one
financial year. Investments can also be spread in more than one company, so that interest from one company
does not exceed Rs 5,000.
Corporate FD' s however do not change their rates during a six month to one year period, which provides
stability to the investment, These deposits, while are not very large from a big company's point of view end
up running more on a constant addition and exclusion of investors. The interest paid by the companies is
usually on a half yearly basis. Majority of the companies who raise money via fixed deposits have quarterly
interest payouts and the interest vary from
9-13% based on the option one chooses. With such large fixed deposit issues available in the market, mutual
funds may lose out in investors who invest in their fixed income products, and give to competition within the
fixed income market space.

9. NSE Currency Derivatives

PEEAAR has currently permitted futures only on the USD-INR rates. PEEAAR Securities Direct Pvt. Ltd.
offers trading facilities to investors on the Currency derivatives segment of the NSE. The contract
Specification of the futures shall be as under:

Underlying Rate of exchange between one USD and INR

Trading Hours (Monday to Friday) 09:00 a.m. to 05:00 p.m.

Contract Size USD 1000

29
 Tick Size 0.25 paise or INR 0.0025
Trading Period Maximum expiration period of 12 months

Contract Months 12 near calendar months

Final Settlement date / Value date Last working day of the month (subject to holiday
calendars)

Last Trading Day Two working days prior to Final Settlement Date

Settlement Cash settled

Final Settlement Price The reference rate fixed by RBI two working days
prior to the final settlement date will be used for
final settlement

The Currency Derivatives trading system of NSE, called NEAT -CDS (National Exchange for Automated
Trading – Currency Derivatives Segment) trading System, provides a fully automated screen-based trading
for currency futures on a nationwide basis as well as an online monitoring and surveillance Mechanism. It
supports an order driven market and provides complete transparency of trading operations. The online
trading system is similar to that of trading of equity derivatives in the Futures & Options (F&O) segment of
NSE.

Distinct Features of PASL’s Online Trading Products

✔ Online transfer of funds through multiple banks.

✔ Trade in NSE cash, NSE F&O and BSE on a single screen.

✔ Real time streaming quotes.

✔ Instant order/trade confirmations on the same window.

✔ Integrated DP, back office and trading a/c.

✔ Trade online and over phone.

✔ 24x7 customer support centre.

✔ Benefit against selling of stock.

30
 Competition Information

MOST REPUTED PLAYERS IN THE MARKET

HDFC SECURITIES

RELIANCE MONEY

KOTAK SECURITIES

INDIA BULLS

ICICI DIRECT

Indiabulls has emerged as one of the leading and fastest growing financial company in less than two year,
since its initial public offering in September 2004. It is India‟s leading Financial Services and Real Estate
Company having over 640 branches all over India. Indiabulls serves the financial needs of more than
4,50,000 customers with its wide range of financial services and products from securities, derivatives
trading, depositary services, research & advisory services, consumer secured & unsecured credit, loan
against shares and mortgage & housing finance. With around 4000 Relationship Managers, Indiabulls helps
its clients to satisfy their customized financial goals.

HDFC Securities, a trusted financial service provider promoted by HDFC Bank and JP Morgan Partners and
their associates, is a leading stock broking company in the country, serving a diverse customer base of
institutional and retail investors. HDFCsec.com provides investors a robust platform to trade in Equities in
NSE and BSE, and derivatives in NSE. With HDFCsec.com, An investor gets Speed, Convenience, Timely

31
and Relevant Information, and Expertise. The 3-in-1 Advantage Account integrates bank account; demat
account and their online trading account.

Reliance Money is part of the Reliance Anil Dhirubai Ambani Group and is promoted by Reliance Capital,
the fastest growing private sector financial services company in India, ranked amongst the top 3 private
sector financial companies in terms of net worth. Through its state of art of online trading platform Reliance
Money is making its active foray into equity, commodity and forex broking. For the first time in India R
trade will provide the Indian investors the facility of trading in Equity, Commodity, Forex, Derivatives,
Mutual Funds, IPO‟s, Insurance and Credit Cards on a single platform.

ICICI Direct is the sister concern of ICICI Bank. It is an online broking firm which provides the investors to
trade in equity, IPO‟s, mutual funds and derivatives online. ICICI direct provides a 3 in 1 account that gives
an investor: Convenience, Speed, Control, Independence, and Trust. Presently, it is the most preferred stock
broker in the market as compared to other stock brokers.

Kotak Securities, a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (one of the
world‟s leading investment banks and brokerage firms, holding 25% stake in the company) is India‟s
leading stock broking house with market share close to 9%. Set up in 1994, Kotak Securities is a leader in
Institutional Stock Broking, Portfolio Management, Retail Broking & Distribution and Depository Services.
Kotak Securities has 835 outlets servicing over 3,35,000 customers and a coverage of 295 cities.

32
SWOT Analysis of Pee Aar Securities Ltd.

STRENGTHS

□ One of the largest broking house of India

□ Low charges on its products as compared to most of its competitors.

□ Advanced products given

□ After sale services are very good. Investors need is taken care off

□ Clearing & Trading member of F&O segment of NSE.

□ Trading terminals of two Commodity Exchanges MCX/NCDEX

□ Market leader in IPO in Delhi

□ Comprehensive approach towards investments advice for MFs

□ Intensive equity research (technical as well as fundamental) by investment analysts

□ Commanding the faith of over 1,00,000 satisfied investors

□ More than 1000 trading terminals of NSE, BSE, F&O, NCDEX and MCX installed

□ Highly dedicated workforce of employees and financial advisors in PASL

□ Strong presence in the business with a rich experience of over 20 years

□ Equipped with hi-tech in-house Research wing and technological resources providing

complete research solutions

□ Fast, Transparent and easy to use Online Internet Trading Platform

33
WEAKNESSES

❖ Lacks awareness amongst most of the people.

❖ Dual portal system of trading which causes problems sometimes.

OPPORTUNITIES

❖ India has one of the world's lowest transaction cost based on screen based transaction,

paperless trading and T+2 settlement cycle

❖ Growing retail investor participation, growing internet usage, faster telecom connectivity and

increasing comfortable levels with internet trading.

❖ Great enthusiasm about our membership and business dealings with commodity exchanges

❖ Great opportunities also lie in the field of portfolio management services.

THREATS

❖ Very sensitive

❖ Effect of political environment, government policies, global economy, physical infrastructure.

❖ Competition from other top brokerage firms specially kotak securities and Indiabulls
securities.

34
 CHAPTER-2
RESEARCH
METHODOLOGY

35
2.1 OBJECTIVES of the Study

The objective of my project is divided into various parts:

To get an overview of Indian Financial Market

To understand the working of Indian Stock Market

To study about the evolution of the Indian Stock Market

To gain an insight into operations of Pee Aar Securities Ltd.

To know about the products and services offered by Pee Aar Securities Ltd.

To understand customers‟ perception about Pee Aar Securities Ltd.

To understand strengths & weaknesses of Pee Aar Securities Ltd.

To perform a competitive analysis of Pee Aar Securities Ltd. on the basis of various factors

36
2.1 SCOPE of the Study
The scope of the project is to study and know about Indian Stock Market and Indian Financial System. By
studying the Online Trading, a clear option of dealing in stock exchange is been understood. Unlike olden
days the concept of trading manually is been replaced for fast interaction of shares of shareholder. By this
one can access anywhere and know the present dealings in shares.
In outcry, the broker has to buy or sell securities for which he has received the orders. For this, the broker
or his authorized representatives goes to the stock exchange. Basically the broker shouts while buying
or selling the securities. The floor of the stock exchange is divided into a number of market also „post pit‟ or
wing based on particular securities dealt there. In the post pit or wing, the broker using „open outcry‟
method makes an offer or bid price. For making the necessary bargain, he codes his purchase or sales price,
also known as offer or bid price. The dealer, to whom the price is quoted, quotes his own price quotation of
the dealer suits the broker, he may lose the bargain. If he is not satisfied with the quote price he may turn to
some other dealer .On the close of the bargain, the dealer sell as well as the broker makes a brief notes of the
particulars of the deal. Such notes are made on some pad and on it the number of shares, the price agreed
upon, the name of the party, what membership number etc., are noted. The disadvantages of outcry
system are it lack transparency, the scope of manipulation, Inaudibility and also speculation
and malpractice is more, in order to overcome the above problems, online trading came in to existence.
Hence the need to study the advantages of online trading system and its importance in making the market
operations and smooth while retaining the flexibility of conventional trading practices.
Since the year 2000 a big boom has been witnessed in the Indian Stock Market when the market showed the
coming up of Online Trading System. Many online stock trading companies came but initially due to lack of
online trading some companies vanished and some survived. The companies which survived are getting the
handsome returns also attracting the foreign Investment Companies. Nowadays this sector is facing cut-
throat competition and also provides huge growth prospects. The study then goes to evaluate and analyze the
findings so as to present a clear picture of the trends in the online trading sector.

37
 ✔ This study can assist the management in decision making process.

✔ This study gives information about the competitors in the industry to the management.

✔ This study can help the management to innovate new ideas regarding products and services which

can further fulfill the need of the existing as well as the potential investors.

✔ This study provides a comparative analysis of major brokerage houses in the market to the

management.

✔ This study gives a SWOT analysis of the organization to the management.

Research Design

✔ NON-PROBABILITY

The non-probability respondents have been researched by selecting the persons who does the stock
trading. Those persons who do not trade in stocks have not been interviewed.

✔ EXPLORATORY AND DESCRIPTIVE RESEARCH

The research is primarily both exploratory and descriptive in nature. The sources of
information are both primary and secondary.
The objective of the exploratory research is to gain insights and ideas.

The objective of the descriptive research study is typically concerned with determining the frequency
with which something occurs.
A well structured questionnaire was prepared for the primary research and personal interviews were
conducted to collect the responses of the target population.

Sample Size
The sample size taken for the purpose of questionnaire is 30 clients of Pee Aar Securities Ltd.

and 50 clients of other corporate brokers. On the basis of their responses, the conclusions have been drawn.

38
Data Collection
To determine the appropriate data for research mainly two kinds of data was collected namely primary &
secondary data as explained below:

✔ PRIMARY DATA

Primary data are those, which were collected afresh & for the first time and thus happen to be
original in character. However, there are many methods of collecting the primary data; all have not
been used for the purpose of this project. The ones that have been used are:

● Questionnaire
● Informal Interviews
● Observation

✔ SECONDARY DATA

Secondary data is collected from previous researches and literature to fill in the respective
project. The secondary data was collected through:

● Text Books

● E-Books
● Websites

❖ STATISTICAL TOOLS USED

The main statistical tools used for the collection and analyses of data in this project are:

● Pie Charts and other Charts

● Tables

39
CHAPTER-3 DATA
ANALYSIS
&

FINDINGS

40
 ANALYSIS OF DATA

Comparative Analysis of Major Corporate Stock Brokers

Top corporate stock brokers of India are being compared on the following parameters:

● VALUE INDICATOR MATRIX

1. Products offered
2. Brokerage charged
3. Services offered
4. Account opening and other charges

● VALUE PROPOSITION
1. Tie up with banks
2. Additional Services Offered
3. Customer base

41
 PRODUCT COMPARISON

Equity Derivativ
Mutual Commod IPO’s
Name of the broking firm es
funds ities

KOTAK SECURITIES ✔ ✔ ✔ ✔ ✔

INDIA BULLS ✔ ✔ ✔ ✔ ✔

RELIANCE MONEY ✔ ✔ ✔ ✔

ICICI DIRECT ✔ ✔ ✔ ✔

HDFC SECURITIES ✔ ✔ ✔

PEE AAR SECURITIES ✔ ✔ ✔ ✔ ✔

BROKERAGE COMPARISON

Deliver Futures Options

Name of the broking firm Intraday
y

KOTAK SECURITIES 0.45 0.05 0.06 0.06

INDIA BULLS 0.50 0.05 0.05 0.05
RELIANCE MONEY Flat Flat Flat Flat
ICICI DIRECT 0.75 0.05 0.05 0.05
HDFC SECURITIES 0.50 0.05 0.05 0.05
PEE AAR SECURITIES 0.25 0.03 0.03 0.03

42
 SERVICES COMPARISON

Onlin Softw Advis BNST % in Delive Intrad Resea A Days

e are or facilit BNST ry ay rch d
Name of the broking firm termi with y facilit Expos Expos Repor v for
nal client y ure ure ts i
s A/c
o activat
r ion
y
E
x
p
i
n
y
e
a
r
s
KOTAK SECURITIES ✔ ✔ ✔ ✔ 75 4-6 6 ✔ 14 7-8

INDIA BULLS ✔ ✔ ✔ ✔ 100 4 8 ✔ 3-4 5

✔ ✔ ✔ 100 Nil 5 ✔ 7
RELIANCE MONEY

ICICI DIRECT ✔ ✔ ✔ 100 4 20 ✔ 7 7

HDFC SECURITIES ✔ ✔ 100 4 4 ✔ 5 7

PEE AAR SECURITIES ✔ ✔ ✔ 100 NIL 6 ✔ 7

43
 OTHER CHARGES COMPARISON

Account Account Reversal of Stamp duty SMS

opening maintenan A/c opening charged charges Per
Name of the broking firm
fee (Rs) ce fee (p.a) fee month in
in (Rs) (Rs)

KOTAK SECURITIES 750 360 250 Nil 100

INDIA BULLS 900* Nil 900 Nil 100

RELIANCE MONEY 750 50 Nil Nil 125

ICICI DIRECT 750 500 Nil Nil 100

HDFC SECURITIES 799 Nil Nil Yes Nil

PEE AAR SECURITIES 500 250 500 NIL 75

*Rs 900 charged as account opening fee by India bulls is reversed back at the time of closure of the account.

3.1.1 VALUE PROPOSITION

Competitive positioning of corporate stock brokers is studied on the following parameters:

TIE UP WITH BANKS

Name of the broking firm Bank Tie ups

Kotak Securities ICICI, UTI, CITI, HDFC, Kotak Mahindra

India bulls ICICI, UTI, HDFC
Reliance Money UTI, HDFC, IDBI,ICICI
ICICI Direct ICICI
HDFC Securities HDFC
Pee Aar Securities ICICI,UTI,HDFC

44
 Additional Services offered
PMS AMO MARGIN
FUNDING
KOTAK ✔ ✔ ✔
INDIABULLS □ ✔ ✔
RELIANCE MONEY ✔ □ □
ICICI ✔ □ □
HDFC □ □ □
PEE AAR SECURITIES □ ✔ □

❖ PMS-Portfolio Management Service

❖ AMO-After Market Order

CUSTOMER BASE
Name of the broking firm Customer Base
Kotak Securities 800000
India bulls 5000000
Reliance money 1500000
ICICI Direct 5000000
HDFC Securities 100000
PEE AAR Securities 100000

INTERPRETATION:
From the above analysis, we can conclude that PEE AAR Securities is growing day by day. Its performance
is much satisfactory and is giving a very tough competition to the other corporate stock brokers in the
market. Thus, we can conclude that PASL Network has a very bright future if it goes on improving its
performance like before.

45
 FINDINGS
The findings from the study of the project and above analysis can be listed as below:-

□ Pee Aar Securities is among the largest broking house of India.

□ It is a market leader in IPO in Delhi.

□ The Company is growing at a very rapid rate. Its performance is much satisfactory and is giving a

very tough competition to the other corporate stock brokers in the market. It has witnessed a growth
not only the financial revenue but also in the number of clients and the employee strength. It has
low charges on its products as compared to most of its competitors and advanced products are given
by the company.

□ It provides 24x7 customer support centre. At Pee Aar Securities, customers come first. And their

satisfaction is not just their top priority but also the driving force for them, every single day. The
after sale services are very good. Investors need is taken care off.

□ It has a highly dedicated workforce of employees and financial advisors. It has a team of
experienced professionals dedicated to serving the firm‟s corporate finance clients.

□ It has a diversified business model. The Company offer various financial services and products

ranging from equity, F & O and wholesale debt, insurance and IPO distribution, depository services
to cater to the specific needs of the retail and institutional investors thus providing all these services
in a single platform. It has a comprehensive approach towards investments advice for MFs.

□ It provides the facility of Relationship manager. This is one of the unique services that PASL

offers to its customers. Every customer is provided with a relationship manager, where in the
customers can contact these managers at anytime of the day to get information on the market or
get their queries clarified.

46
□ It is equipped with hi-tech in-house Research wing and technological resources providing complete

research solutions. Since the launch of their website, www.peeaar.in and their online trading
platform, they have invested in building a technology platform. Their trader terminal is an
application which allows customers to trade on both the BSE and the NSE. It has a fast, transparent
and easy to use Online Internet Trading Platform.

47
 CHAPTER-4
CONCLUSIONS

48
CONCLUSIONS

The online trading is growing with a rapid pace with the rising level of education among the customers. The
other factors being that the Indian Investor nowadays wants to deal himself in trading rather than depending
upon other middlemen. They also consider the factors like time saving in doing the online transactions,
convenience etc. Although some people feel that online trading is not secure but the people doing the trading
online is happy about the increasing security concerns among the companies. The year 2010 has not been so
good for the stock market and the SENSEX and NIFTY has been dipping and affecting the business
negatively for these companies. This is due to the fact that at these times people do not prefer to open the
DMAT and Trading accounts. So the companies have to reduce their account opening fees to attract more
and more customers. Also people trade very less in the bearish market and the company‟s profits against
brokerage fees soars downwards. It is also a found fact that during the bearish market the ratio of online
trading becomes very less. Also there is an intense competition among the companies and the companies
come up with new and new promotion schemes such as discounted and negotiable brokerages, Zero balance
accounts, waiving a/c opening fee and AMC etc. As the internet penetration is growing in India this business
holds a huge potential for growth.

New ideas are to be implemented to catch the customers. The strategy of giving more benefits to the high
end customers is very useful. Because stock market is a volatile market, anything can happen to this market.
But then again if anyone study the market well he can earn a lot. Again like every coin has its two sides,
similarly every financial instrument has its own features, its advantage & disadvantage. So finally investor
himself/herself has to decide where to invest.

The mantra for success in the current situation will be educating the customers about the benefits of
online trading and the amount of ROI that can be generated through it.

The total trading volume of brokerage companies has increased from US$1239.1 billion in 2008 to US$
1492.1 billion in 2011, and is expected to reach US$ 6535.7 billion by 2015.

49
 CHAPTER-5
RECOMMENDATIONS
& SUGGESTIONS

&

LIMITATIONS OF THE STUDY

50
RECOMMENDATIONS AND SUGGESTIONS

❖ HDFC should start online mutual funds and commodities trading as soon as possible in order to

compete. It should also work on its browser so that trading can be done swiftly. ODIN facility should
also be started in order to make trading more convenient. Facilities such as PMS, AMO and margin
funding should also be looked upon.

❖ ICICI has huge number of investors therefore in order to retain them it should minimize its charges.

Should provide software so that rates change automatically. Should start giving online commodities
trading.

❖ Reliance Money in order to retain its position in the market should work upon its after sales service.

Should also introduce online recharge facility of accounts. ODIN software should also be given to all
its investors.

❖ KOTAK securities should allow 100% sale of shares on BTST. Should also reconsider their broking

charges and make them more economical. They have high margin money which can be cut down to an
extent to attract more investors.

❖ FOR PEE AAR SECURITIES

▪ PASL should take proper steps to build up its brand image.

▪ It should resolve the dual portal system of trading.

▪ It should start the portfolio management services, margin funding.

▪ Offer more attractive services in order to remain competitive.

▪ Make Odin software easy to operate.

▪ Improvement in the time delay of account opening is required.

▪ There should be a specific number of clients under each relationship manger, so that each client

can be attended properly and can be imparted desired time.

51
Limitations of the Study

1. There is lack of awareness among people about investing in stock market. So the people who are
aware of such things were found in specific areas for survey purposes.

2. Most people are comfortable with traditional system in small towns and like to trade from their
respective brokers, hence not providing a true opinion of theirs.

3. Most of the people they are not techno savvy. Though Internet penetration is growing still it is not at
the required level.

4. Some of the respondents who did not do online trading were able to respond to only some questions.

5. Due to wide spread information of the data, the scope of project becomes very wide.
6. Given the time constraints, all the information could not be gathered.
7. The study is confined to online trading procedure only.

8. P ro bl em s o f l i s t i n g a r e n ot c ov e r ed du e t o l imi t ed t im e a n d t o k e ep t h e s t u
d y i n manageable limits.
9. The data is collected from the primary and secondary sources and thus is subject to slight variation
than what the study includes in reality.
10. The observations drawn are of past and present years only.
11. Detailed study on the topic was not possible due to limited size of the project.

52
BIBLIOGRAPHY

53
The following sources have been sought for the preparation of this report:
Books:
1. Nassar, David S., 2001, “How to Get Started in Electronic Day Trading”, McGraw-Hill, London
2. Khan, M.Y., 2006, “Indian Financial System 5E”, Tata McGraw-Hill Education, London
3. Kothari. C. R, “Research Methodology”, New Age International (P) Ltd., New Delhi (2008
Edition).
4. Harper W. Boyd, Jr. Ralph Westfall, Stanley F. Stasch,” Marketing Research”, 2007 Edition.

Websites:
● peeaar.in/overview.html
● peeaar.in/award.html
● www.rsec.co.in/home
● peeaar.in/ISO_company.html
● peeaar.in/onlinetrading.html
● kotaksecurities.com/home/index.html
● hdfcsec.com
● peeaar.in/nse-currency-derivative.html
● nseindia.com
● nseindia.com/content/indices/ind_niftylist.csv
● tradersedgeindia.com/bse_sensex.htm
● indiahowto.com/what-is-sensex-nifty.html
● indiabulls.com/default.htm
● icicidirect.com/newsitecontent/Home/Home.asp
● Wikipedia.org

54
ANNEXURE

55
 Comparative analysis of the leading stock brokers on different parameters

1. Do you invest in Share market?

2. What are your avenues
3. How often do you invest?
4. Your mode of investing?
5. Do you know about Pee Aar Securities?
6. Are you satisfied with your present service provider?

7. For how long you have been investing with PEEAAR?

8. What are your avenues of investment?
9. Your major trading platform?
10. What are the changes would you like to recommend in online/offline trading system?
11. What is your volume of trade weekly?
12. Are you taking the services of a relationship manager?
13. If yes, are you satisfied with their services?
14. Your recommendations and suggestions -

56