Summer Internship Project Report

on
Scope for IL&FS’s Online Product in
Jodhpur and Finding the Market for
the Same

Submitted to:- Submitted by:-

Mr. Mahaveer Chand Jain Amit Bafna
(Project Guide) (Summer Trainee)

1
 ACKNOWLEDGEMENT
Sometimes words are poor substitute in expressing one’s
feelings, but ultimately they are the only means for expressing
oneself. I express my sense of sincere and deep gratitude to my
guide Mr. Mahaveer Chand Jain for his unending support and
ample guidance to help me for enhancing knowledge.

I am greatly thankful to all the faculty members of Aravali

Institute of Management, Jodhpur because in the supervision,
suggestions and guidance of them I gain all the knowledge and
experience. I want to give my thanks to Mr. Amit Bhati (Asst.
Professor) for all the encouragement and appreciations that I
have received from him.

I give my thanks to Prof. Varun Arya, Director of the Aravali

Institute of Management, Jodhpur for his kind and valuable co-
operation to arrange my Summer Training at such a good place.

I want to express my word of appreciation and gratitude to all

the brokerage houses and all the respondents I visited for their
continuous co-operation and valuable inputs in making my
research worth.

I also give my thanks to the staff of IL&FS Investsmart Securities

Limited for their kind co-operation and valuable guidance.

Place: Jodhpur - Amit Bafna

2
Contents:
S. No. Particular Page No.
1) Executive Summary 4

2) Project Title and Objective 5

3) Introduction (HSBC) 6

4) Current Market Scenario 8

5) Introduction 9

6) IIL Online Products 11

7) Research Methodology 18s

8) Data Interpretation and Analysis 19

9) Findings 27

10)Recommendations 29

11)Questionnaire 30

12)Bibliography and References 32

3
 Executive Summery

`
The objective of undertaking this project is ‘To find out potential market for
online products of IL&FS’s and to give recommendation for improvement in
IL&FS’s services in Jodhpur’ for understanding its present status. To give
recommendations for improvement in its services and also to find out potential
market for IL&FS Investsmart Securities Limited. This project has been completed
with the help of primary and secondary data. The survey has been conducted to
know the scope of online products of IL&FS in Jodhpur and find the market for
same.

The findings are well supported by the graphs wherever necessary and finally
some of the recommendations are presented in the report, which is made for the
betterment for the company we have proposed the ways by which they can
increase their sale, reduce the cost.

4
 Project Title

‘Scope for IL&FS’s Online Product in

Jodhpur and Finding the Market for the
Same’

Project Objective

‘To Find Out Potential Market for Online Products of

IL&FS’s and to Give Recommendation for Improvement
in IL&FS’s Services in Jodhpur’

5
 Introduction

HSBC Group entities in India

 The Hongkong and Shanghai Banking Corporation Limited (HSBC)

 HSBC Global Management (India) Private Limited

 HSBC Insurance Brokers (India) Private Limited

 HSBC Operations and Processing Enterprise (India) Private Limited

 HSBC Private Equity Management (Mauritius) Limited

 HSBC Securities and Capital Markets (India) Private Limited

 HSBC Software Development (India) Private Limited

 Infrastructure Leasing and Financial Services (IL&FS) Investsmart

 IL&FS Investsmart Limited

 IL&FS Investsmart Securities Limited

 IL&FS Investsmart Insurance and Risk Management Services

Limited

 IL&FS Academy for Insurance & Finance Limited

 IL&FS Investsmart Asia-Pacific Pvt. Limited

 IL&FS Investment Financial Services Limited

6
 Vision & Mission Statement

Vision:

To become the preferred long term financial

partner to a wide base of customers whilst
optimizing stakeholders value !

Mission:

To establish a base of 1 million satisfied customers by 2010. We

will create this by being a responsible and trustworthy partner !

Corporate Action:

An Approach to Business that reflects Responsibility,

Transparency and Ethical Behavior. Respect for Employees,
Clients & Stakeholder groups.

7
 Current Market scenario of Brokerage Industry:-

In actuality the brokerage industry continues to develop rapidly. Many of the

traditional restrictions against banking activities within the brokerage industry are
being eliminated and the barriers are disappearing. Due to this, some commercial
banks have as subsidiaries, brokerage houses that offer discounts and some of
them have available accounts that offer all of the services that are offered by a
checking account.

The basic function of a brokerage firm is to execute buy and sell orders for clients.
Traditionally these firms have offered the investigation of the quality and the
possibilities of investing in a variety of investment products. It is still accustomed
for brokerage firms to offer information about possible investments free of charge.
This activity of bringing free of charge stock investment reports is one of the main
tools that are utilized by brokerage houses to compete against other firms and to
investors it continues to be an important service.

Despite the previously, not all investors consider that investment reports is an
important service. Some investors prefer other types of services since many
investors don’t believe that these investment reports are useful. In order to capture
this vast diverse clientele, the brokerage industry has segmented itself. After the
restrictions in commissions were eliminated, several brokerages began to open up
their doors as discount brokerage firms. In actuality, brokerage firms may be
classified into full service brokers and discount brokers.

Full service brokerage firms continue to offer informative stock reports and a level
of service much higher than other brokerage houses. Discount brokerage houses
only dedicate themselves to execute orders for clients. Full service brokers are
sellers looking for purchasing and selling for clients and offering more customer
service than is available from discount brokers. It is many times possible that a
client will not even know who is taking care of the buy or sell order that they
placed.

These differences in services and philosophies may lead to great differences in

commission costs. It is evident that these differences may be an important factor in
the return of an investment. This is particularly true when we see that these
commissions are added to the purchase as well as to the sale of a stock or other
investments.

8
 Introduction
IL&FS Investsmart Securities Limited

1. 1Trading Services

Trading services means to provide a platform where an investor can purchase or sell share
and securities of different companies required quantity at his desired price. These services
can be provided only with the prior permission of BSE and NSE no one can provide these
services without the permission of these two. Companies who are providing these services
play the role of agent/mediator for BSE and NSE. IIL provides these services along with
the two different platforms where any of its customers can make a trade of share at any
given point of time. These platforms are Offline trading platform and Online trading
platform. To avail this services any individual has to open an trading account with IIL, to
open that he/she has to fulfill certain conditions which are:-

a.He/she should have PAN number in his/her name, copy of which is to be

submitted with IIL at the time of opening an account

b.He must have an Bank Account with any bank, and a proof of that should be
submitted

c.An copy of Address proof is necessary to open an trading account

d.A cheque of required amount as per the plan opted in name of IL&FS
Investsmart Securities Limited is necessary to submit to IIL

9
Offline Trading: - Offline trading services means to provide a platform to investors
where they can come to purchase and sell the securities they like too. IIL is providing
such platform in which any of its customers can come to its branch or can make a call
to purchase or sell the securities. To avail these services any individual has to open an
offline trading account with IIL. At IIL an advisory services is also provided which
make the work easier for any trader

Online Trading: - Online trading allows you to buy and sell shares on the exchange
through Internet. It is a truly powerful medium to be in direct control of your
investments. The Internet revolution has been changing the fundamentals of our
society. It shapes the way we communicate and the way we do business. It brings us
closer and closer to vital sources of information. It provides us with means to directly
interact with service-oriented computer systems tailored to our specific needs;
therefore, we can serve ourselves better by making our own decisions.

Today, investors can use revolutionary Internet Client-Server technology to buy and
sell stocks nearly anywhere, anytime…

10
IIL provides majorly 2 types of online account:

 Smart Power: This is also sub divided into 03 types

Default: In this an person interested to open this account has to pay

Rs. 950 as account opening charges and the brokerage rate he/she
will be allotted is 0.50% for delivery and 0.05% for intraday
trading. An annual AMC Rs. 300 will be charge every year

Plan 2500: In this person who is interested to open an trading

account don’t have to pay any account opening charges but he has
to give advance brokerage of Rs. 2,500 which will be adjusted in
the bill of your trading. In this scheme brokerage charge will be
0.35% for delivery and 0.04% for intraday transaction

Plan 12500: In this person who is interested to open an trading

account don’t have to pay any account opening charges but he has
to give advance brokerage of Rs. 12,500 which will be adjusted in
the bill of your trading. In this scheme brokerage charge will be
0.25% for delivery and 0.03% for intraday transaction

 Smart Elite: This account is also divided into 02 types of trading account
which are as follows:

Plan 25000: In this person who is interested to open an trading account

don’t have to pay any account opening charges but he has to give
advance brokerage of Rs. 25,000 which will be adjusted in the bill of
your trading. In this scheme brokerage charge will be 0.20% for
delivery and 0.025% for intraday transaction

Plan 50000: In this person who is interested to open an trading account

don’t have to pay any account opening charges but he has to give
advance brokerage of Rs. 50,000 which will be adjusted in the bill of
your trading. In this scheme brokerage charge will be 0.15% for
delivery and 0.02% for intraday transaction.

Any individual who wants to open his/her trading account in IIL can choose a
platform from which he/she can put their respective trades. There are three types of
platforms available in IIL, these are :-

11
 SmartStart: - SmartStart is a powerful browser based trading system for those
who are relatively new to online investing. A unique integrated account, which
integrates your banking, broking, and demat accounts. A comprehensive trading
service, which allows you to invest in equities and derivatives.

SmartStart trading platform allows you the flexibility of trading on any internet
capable system, with access to both the NSE and BSE. Features attached with this
type of platform are:

 Trade on NSE & BSE

 Simple order entry for Equity & Derivatives

 Fully Customizable display

 User friendly Get Quote screen

 Integrated Accounts (Bank. Demat & Trading)

 Live order status

 Track your orders real-time

 Dynamic buying power

 Works behind a Proxy

 Back office access

Benefits of SmartStart are-

 NSE & BSE Access: Flexibility of trading on both the NSE & BSE via a
single screen.
 Fully Customizable display: The save desktop option allows you to save
your created trade screen layout, so the next time you access the application
the created layout is not lost.
 Integrated Accounts (Bank. Demat & Trading): Integrates your
banking, broking and demat accounts. This enables you to trade in shares
without going through the hassles of tracking settlement cycles, writing

12
 cheques and Transfer Instructions, chasing your broker for cheques or Transfer
Instructions etc.
 Live order status: Tracking all your orders is made easy through the order
status screen. Further drill down into all details pertaining to an order is
available in the order detail sub report.
 Track your orders: Track your stock order and trades
 Dynamic buying power: Reflects your credits and debits instantly on every
trade execution. No need to refresh each statement to know your latest buying
limits

 Works behind a Proxy: This platform can be accessed on any Internet

enabled network. You can access it even from your place of work.

 Back Office access: View segment wise ledger bills and contract notes,
trades, positions, account balance, realized/unrealized profit & loss, and
buying power all in real time.

 SmartInvest: This is a browser-based system designed for customers who

transact occasionally. It is ideal for investors who believe in the Buy and Hold
approach towards investment in equities.

SmartInvest's capability as a browser-based trading platform gives you the benefit

of real-time streaming data with the flexibility of trading on any Internet capable
system. With access to both the NSE & BSE, you are in the driver's seat when
routing your order to the best price on either of the exchanges. SmartInvest
sophisticated yet easy to use point and click order entry interface allows you to
react more quickly to the markets and make better decisions.

Features are-

 Instant Loading

 Works behind a Proxy

 Live Streaming quotes

 Multiple Watch lists

13
  NSE& BSE Access

 Single order form for Cash and F&O

 Point and Click order entry

 Hot Key Functions

 Market Depth Window

 Back Office access

Benefits of SmartInvest are:-

 Instant Loading: The browser-based applet system allows you
instant access to your account with no wait time, unlike other
systems that take a few minutes to load.

 Works behind a Proxy: This platform can be accessed on any

Internet enabled network. You can access it even from your place
of work.

 Live Streaming quotes: Keep an eye on the stocks you care

about most with streaming, real-time quotes and customizable
market data. Color-coded price changes help you to spot trends
and react to them quickly .

 Multiple Watch lists: The new watch list option allows you to
create upto 10 watch lists. Each watch list can be personalized by
inserting securities which you would like view as a group.

 NSE& BSE Access: Flexibility of trading on both the NSE &

BSE via a single screen

 Single order form for Cash and F&O: Single order form
offers you the convenience of transacting in various segments of
the market without having to switch between multiple windows.

14
  Point and Click order entry: Makes order entry quick and
simple with a click on the security the same gets inserted into the
order form on your trade screen.

 Hot Key Functions: Using a single keystroke (Hot Key)

function you can achieve important tasks very similar to a
broker's terminal. Accessing important reports is also one
keystroke away.

 Market Depth Window: It gives an immediate "at a glance"

info about the stock you are following. The view provides the best
5 bid and offer quotes and the outstanding order quantities

 Back Office access: View segment wise ledger bills and

contract notes, trades, positions, account balance,
realized/unrealized profit & loss, and buying power all in real
time

 SmartTrade : SmartTrade is an EXE based desktop software designed

for active traders who transact frequently to capture favorable short-
term price movements. The platform offers active traders the tools they
need to make critical decisions with confidence.

SmartTrade is designed and built from the ground up to address the

needs of active traders. SmartTrade makes the most of state-of the-art
technology to deliver power, speed and reliability. Through an easy-to-
use interface, users are provided with the same tools and advantages that
the professionals enjoy.

Its features are-

 Fully Customizable display

 Dynamic Charts with Indicators

 EOD Charts

 Real-Time market data

 Advanced Alert capabilities

15
  Live order status

 Track your orders real time

 Real time position updates

 Dynamic buying power

 Derivative chain

 Lock terminal option

 Message window docking

Benefits of SmartTrade are:-

 Fully Customizable display: The save desktop option allows

you to save your created trade screen layout, so the next time you
access the application the created layout is not lost.

 Dynamic Charts with Indicators: Provides you a wealth of

charting capabilities and timing indicators, which allow you to go
right into the action with real-time daily charts, and intra-day
charts. Watch price movements by minutes, days, or weeks.

 EOD Charts: SmartTrade puts up to 5 years of in-depth market

history at your command with the power to instantly back-test any
trading strategy you design, before risking one rupee of your
trading capital.

 Real-Time market data: Get real time market data from both
the NSE and BSE similar to what your broker gets.

 Advanced Alert capabilities: Alert Window allows you to be

free from watching every tick. Users can be notified once a
security has reached the set parameters. Multiple securities can be
monitored using the set parameters. These alerts can be triggered
both visually and audibly.

16
 Live order status: Tracking all your orders is made easy
through the order status screen. Further drill down into all details
pertaining to an order is available in the order detail sub report.

 Track your orders real time: Track your stock order and
trades in real-time.

 Real time position updates: All your positions are updated

automatically and instantly. No need to use the refresh button at
all.

 Dynamic buying power: Reflects your credits and debits

instantly on every trade execution. No need to refresh each
statement to know your latest buying limits.

 Derivative chain: This feature provides you with a list of all

derivative contracts available for the selected security. To view
derivative prices of a security just right click on the symbol and
click on derivative chain.

 Lock terminal option: If your system is unattended this

function locks the trading platform for you and can be accessed
again only on providing the proper login details.

 Message window docking: This feature enables you to receive

trading messages, intra-day trading calls, and messages from both
the exchanges flashed real time onto your screen.

17
 Research Methodology
1. Data Universe

Total Pan Card Holder in Jodhpur

2. Sample Size
100 (50 Business Class and 50 Service Class)

3. Sample Design

Cluster sampling
Convenience sampling

4. Research type

1. Qualitative 2. Quantitative

5. Data collection
Data collection method can be divided in to two parts which are as follows

Primary Data collection – The primary data is collected through questionnaire

and Interviews and from different brokerage houses

Secondary Data collection : The secondary data is collected through websites,

Yellow pages and dictionary

18
 Data Interpretation and Analysis

A). For Business Class

Q. What is your Income level?

Income Level
40
35
30
25
20
15
10
5
0
a. Less b. Rs. 1 c. Rs. 5 d. Rs. 10 e. Rs. 15 Series1
f. Above
then Rs. 1 Lakh to Lakh to Lakh to Lakh to Rs. 20
Series2
Lakh Rs. 5 Rs. 10 Rs. 15 Rs. 20 Lakh
Lakh Lakh Lakh Lakh Series3

Q. What amount of your saving do you invest in Stock Market ?

12 11

10
8
6 Series1
6
4 4 Series2
4
2
2 1
0
a. 0- b. 5- c. 10- d. 15- e. 20- f. 30-
5% 10% 15% 20% 30% 45%

19
 Q. Are you presently investing in Stock Market

a. Yes, 28, a. Yes

56% b. No, 22,
44% b. No

Q. Are you doing Online Trading?

1, 1, 4%

1
2

2, 27, 96%

Q. Do you know about IL&FS (group company of HSBC)?

A. Yes, 4,
8%

A. Yes
B. No

B. No, 46,
92%

20
 Q. Who all influence your investment decision?

14
12
10
8
13
6
4
4 4 4 3
2
0
A) Family B) Friends C) D) Self E) Others
Colleagues
Series1

Q. Which type of return do you prefer on what risk?

12 11
10 8
8 Series1
6
6 Series2
4 3
Series3
2
0
A) High risk B) Low risk C) Moderate D) Fixed return
high return low return risk moderate on very low
return risk

21
Q. According to you, what type of services or benefit you expect from
your broker, kindly rank them ?

A) Low Brokerage

B) Advisory
7, 25% , 0%
C) Information about your
13, 46% balance at regular basis
1, 4% D)HighLimit

5, 18% 2, 7% E) Convenience

F)Other

Q. Are you satisfied with your present broker? If no why?

1, 4%

a. Yes
b. No

27, 96%

22
 B) For Service class

Q. What is your annual income level?

Income Level

50
40
40
30
20
10 7
2 1
0
a. Less then Rs. b. Rs. 1 Lakh to c. Rs. 5 Lakh to d. Rs. 10 Lakh to
1 Lakh Rs. 5 Lakh Rs. 10 Lakh Rs. 15 Lakh

Series1 Series2 Series3

Q. What amount of your saving do you invest in Stock Market?

23
7
6
5
4
3
2
1
0
e
5% 10
%
15
%
20
%
30
%
45
%
bo
v
0- 5- 0- 5- 0- 0- A
a. b. 1 1 2 3 d
c. d. e. f. an
5 % Series1
g .4 Series2

Q. Are you presently investing in Stock Market

a. Yes
b. No
b. No
44%

a. Yes
56%

Q. Are you doing Online Trading

a. Yes
43%
b. No
57%

a. Yes
b. No

24
Q. Do you know about IL&FS (Group Company of HSBC)?

A. Yes
30%
A. Yes
B. No
B. No
70%

Q. Who all influence your investment decision?

18
16
14
12
10
17
8
6
4
5
2 2 3
1
0
A) Family B) Friends C) D) Self E) Others Series2
Colleagues
Series1

Q. Which type of return do you prefer on what risk?

25
 16 14
14
12
10 9 Series1
8 Series2
6 4 Series3
4
2 1
0
A) High risk B) Low risk C) Moderate D) Fixed return
high return low return risk moderate on very low
return risk

Q. According to you, what type of services or benefit you expect from your
broker, kindly rank them?

A) Low Brokerage

B) Advisory

21%
32% C) Information about
your balance at
regular basis
18% D)HighLimit
4%4% 21%
E) Convenience

F)Other

Q. Are you satisfied with your present broker? If no why?

26
 b. No
14%

a. Yes
b. No

a. Yes
86%

Findings:

For Business Class

 8% Investors are only aware of IL&FS and also the fact that it is the
part of HSBC Group

 In Business Class 56 % Investors are investing presently in Stock

Market

 70% Investors income lies between Rs. 1lakh to Rs. 5 lakh and 24%
Income lies between Rs. 5 lakh to Rs. 10 lakh

 40% of current investors are investing there Income’s 10-15% saving

in stock market

 4% of current investors are doing online trading and 96% are doing
offline trading

27
 47% of current investors take there decision self

 40% of current investors prefer to take moderate risk for moderate

return and 29% take high risk for high return

 49% of current investors ranked low brokerage first and 25% ranked
convenience as first (or benefit they expect from there broker)

Findings:

For Service Class

 40% Investors are aware of IL&FS and 30% are aware of the fact that
it is the part of HSBC Group

 In Service Class 56 % Investors are investing presently in Stock

Market

 80% Investors income lies between Rs. 1lakh to Rs. 5 lakh and 14%
Income lies between Rs. 5 lakh to Rs. 10 lakh

28
  22% of current investors are investing there Income’s 5-10% and
22% are investing 15-20% saving in stock market

 43% of current investors are doing online trading and 57% are doing
offline trading

 61% of current investors take there decision self

 50% of current investors prefer to take moderate risk for moderate

return and 32% take high risk for high return

 32% of current investors ranked low brokerage first and 22% ranked
convenience as first (i.e. benefit they expect from there broker)

Recommendations:-

 The major obstacle is about lack of awareness of brand of IL&FS

Investsmart among the investors and also the fact that it is part of the
HSBC Group for this there is requirement of promotion of HSBC
IL&FS Investsmart as it can be done with the help of Canopy, taking
sponsorships for events like educational seminar . Also by organizing
seminars on programmes for Investment Decision
 The edge that IL&FS’s competitor is having is that they provide the
facility of doing online as well as offline trading both together, If
IL&FS also provide this facility to there investors than it will also give
footage to IL&FS Investsmart
 As 25% in business class and 22% in service class Investors had
ranked first to convenience for this IL&FS can open or give its
franchisee to others

29
  As opening charges of online account is Rs. 950 and we are providing
web based software. If IL&FS provide browser based software to there
clients in Rs. 950 this will give edge to IL&FS Investsmart

Potential Market

Only 4% of current investors in Business Class are doing Online Trading

and 96% are doing offline trading and it is because of many reasons like
operating the technical devices, time deficiency, believe in traditional way
due to less education qualification i.e. to trade through broker and in
service class 43% of current investors are doing Online Trading .
So IL&FS should focus more on service class Investors as it is the main
potential segment for IL&FS Investsmart

IL&FS Investsmart Securities Limited

Dear Sir\Madam

We are conducting research on scope of online products of IL&FS and find the
market for same in Jodhpur. We assure you of full confidentially of the information
shared by you.

Questionnaire:-
Name………………..……………………………….……………………………………

Age…………………………………………..Occupation………………………………

ContactNo.……………………….....…Email…………………………………………….

1. Q. What is your annual income level?

30
 A) Less then Rs.1 Lakh B) Rs.1 Lakh to Rs.5 Lakh
C) Rs. 5 Lakh to Rs.10 Lakh D) Rs.10 Lakh to Rs.15 Lakh
E) Rs. 15 Lakh to Rs. 20 Lakh F) Above Rs. 20 Lakh ( )

2. Q. Do you have Demat? Accounts? If Yes, then with which broking house?
A) Yes ( )
B) No

3. Q. What amount of your saving do you invest in Stock Market?

A) 0-5% B) 5-10% C) 10-15% D) 15-20% E) 20-30% F) 30-45%
G) 45% & above

4. Q. Do you prefer to trade in Securities?

A) Yes B) No

5. Q. Are you doing Online Trading

A) Yes B) No ( )

6. Q. Do you know about IL&FS (group company of HSBC) ?

A) Yes B) No

7. Q. Who all influence your investment decision?

A) Family B) Friends C) Colleagues D) Other ( )

8. Q. Which type of return do you prefer on what risk?

A) High risk high return
B) Low risk low return
C) Moderate risk moderate return
D) Fixed return on very low risk

9. Q. According to you, what type of services or benefit you expect from your
broker, kindly rank them ?
A) Low Brokerage B) Advisory C) Information about your balance at
regular basis D)High Limit E) Convenience F)Other ( )
Ranking Order ( )

10. Q. Are you satisfied with your present broker? If no why?

A} Yes ( )
B) No ( )

31
 With Regards
Amit Bafna (Summer Trainee)

References and Bibliography

Direct Interaction:

 Motilal Oswal Securities Limited

 Khandwala Securities (KIFS)

 Angel Broking Services

 Sharekhan Securities

Books:

 FAQ to CDSL

Websites:

 www.theinvestor.tv/money/thebrokerageindustry.htm

 www.investsmartindia.com/ilfs-webapp/RetailOfferings/RetailIndex.jsp

 www.investsmartindia.com/ilfs-webapp/RetailOfferings/Forms/
RetailOfferingAction.do?reqCode=getOnlineIndex

 www.nseindia.com

 www.cdslindia.com

32
 www.hsbc.co.in

33
34