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SUBMITTED IN PARTIAL FULLFILLMENT OF POST GRADUATE DIPLOMA IN MANAGEMENT (PGDM) SUBMITTED BY KAVERY CHAKI PGDM-III (FINANCE AND MARKETING) GUIDED BY- Prof. Suresh Vaze ASIAN SCHOOL OF MANAGEMENT Landmark centre, Satara Road pune-400098 2009 – 2011
The successful completion of this project was a unique experience for me because by visiting many place and interacting various person, I achieved a better knowledge about sales. The experience which I gained by doing this project was essential at this turning point of my career this project is being submitted which content detailed analysis of the research under taken by me.
The research provides an opportunity to the student to devote his/her skills knowledge and competencies required during the technical session.
The research is on the topic “Study the mechanism of Sharekhan De-mat Account & Online trading”.
Behind any success, not only a single person use to be there. Success comes from teamwork. Likewise to made my project complete there are few people who guide me & support me to reach at this point. It is my great pleasure to express my gratitude and sincere thanks to those people. First of all, I would like to thanks our Director Mrs. K. Madhavi Khare for supporting me by providing the best faculty guide & the chance to have industry exposure. Then I would like to thanks my Project guide Mr. Ranjeet Kumar & the management staffs of the SHAREKHAN LTD. Pune, for giving me an opportunity to undergo training in the organization & guide me to complete my internship properly with having necessary knowledge of the topic . I would also like to express my gratitude towards my faculty guide Prof. Suresh Vaze for providing me regular guidance and necessary help regarding my project. Lastly I would like to express my gratitude & thanks towards my parents & friends for their blessings & encouragement, which make my work complete.
Pune under my guidance and direction.CERTIFICATE OF INTERNAL GUIDE This is to certify that the the project titled “Study Mechanism of De-mat A/c & Online trading” work carried Chaki is a bonafide out by Kavery for Post in a candidate Graduate Diploma Management. 4 .
Date: Place: Signature of Guide Name: Prof. student of Post . De-Mat Pune carried Diploma 5 A/c is out & in the by in trading” work done Kavery Chaki. Suresh Vaze Designation: Faculty Institute: Asian School of Management CERTIFICATE FROM INSTITUTE This is to certify that the Project Report entitled as “Study the Mechanism Online bonafide Graduate Sharekhan of Ltd.
Management of Asian School Of Management. Pune. She has worked under our guidance and direction. Her Work is found to be satisfactory and complete in all aspect. Date: Place: Signature of Director Name: Madhavi Khare DECLARATION 6 .
This project contains the materials which I have found during my Winter Internship.I Kavery Chaki hereby declare that the project entitled “Study the Mechanism of De-Mat A/c & Online Trading” for Sharekhan Ltd. Date: - Signature (Name of the Student) TABLE OF CONTENTS 7 . Pune is the work done by my own efforts to the best of my knowledge and belief. No previously used or published data are included in this project & also has not been submitted to anybody else in any other educational institute for any other reason.
Serial number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Details of document Introduction of share market Company profile Swot analysis Need for the Study Competitors Comparison among different share broking firm Objectives Research Methodology Data Analysis & Interpretation Hypothesis Finding Limitations Expected Contribution from the Study Suggestions & Recommendations Conclusion Bibliography Appendix Page number 8 18 38 40 41 55 60 62 71 87 89 91 92 94 95 96 97 CHAPTER 1 8 .
marking the beginning of the "Share Mania" in India.e. business in its loan securities gained full momentum.Introduction to Share Market Introduction Stock markets refer to a market place where investors can buy and sell stocks. In 1874 with the rapidly developing share trading business.Independence scenario One of the oldest stock markets in Asia. Pre. In 1875 "The Native Share and Stock Brokers' Association" (also known as "The Bombay Stock Exchange") was established in Bombay 9 . the Indian Stock Markets has a 200 years old history. Trading list by the end of 1839 got broader. The price at which each buying and selling transaction takes is determined by the market forces (i. Business on corporate stocks and shares in Bank and Cotton presses started in Bombay. East India Company was the dominant institution and by end of the 18th century. demand and supply for a particular stock). brokers used to gather at a street (now well known as "Dalal Street") for the purpose of transacting business. In 1860-61 The American Civil War broke which caused a stoppage of cotton supply from United States of America.
Hyderabad 7. Delhi 6. Ahmedabad 5. Bangalore 8. There was a sharp increase in 10 . there are twenty one recognized stock exchanges in India which does not include the Over the Counter Exchange of India Limited (OTCEI) and the National Stock Exchange of India Limited (NSEIL). Bangalore Stock Exchange Limited was registered in 1957 and got recognition only by 1963. Lahore Stock Exchange was closed down after the partition of India. Madras 4.Post Independence Scenario The depression witnessed after the Independence led to closure of a lot of exchanges in the country. and later on merged with the Delhi Stock Exchange. Bombay 2. 1956. Government policies during 1980's also played a vital role in the development of the Indian Stock Markets. Most of the other Exchanges were in a miserable state till 1957 when they applied for recognition under Securities Contracts (Regulations) Act. Calcutta 3. Indore At present. The Exchanges that were recognized under the Act were: 1.
No. (Lakh Rs.) Market Value of 7 Capital per Listed Cos. Rs.) 9 7 1 1 2 9 2 Capital per Listed 6 Cos. (Cr.) 59 58 3 Market value of 5 Capital of Listed Cos. listed companies as well as their capital.) (5/2) Appreciated value 8 of Capital per Listed Cos. of Stock Exchanges 7 1 2 No. Rs. As on 31st December 9 4 6 1 No. of Stock Issues of Listed Cos. (Lakh Rs.) 2 4 6 3 8 6 1 0 7 17 70 55 64 3 5 8 1 7 0 1 4 8 1 2 6 1 7 0 2 6 0 34 4 80 3 11 . 5 0 6 2 7 0 1 9 6 1 7 1 2 0 3 2 1 1 1 7 5 3 1 9 7 1 8 1 5 9 9 2 8 3 8 1 8 1 2 2 6 7 5 1 1 3 1 6 7 1 9 7 5 8 1 5 5 2 3 2 3 0 2 6 1 4 3 2 7 3 1 6 8 2 1 1 1 9 8 0 9 2 2 6 5 3 6 9 7 3 9 7 3 6 7 5 0 1 7 5 2 9 8 1 9 8 5 1 4 4 3 4 4 6 1 7 4 9 7 2 3 2 5 3 0 2 2 2 4 5 8 2 51 4 69 3 11 02 79 47 81 21 32 04 1 89 67 11 78 4 62 29 85 93 20 22 19 91 19 95 4 Capital of Listed Cos.number of Exchanges. 1 2 5 1 3 No. which is visible from the following table: 1 S. of Listed Cos. (Cr. (4/2) (Lakh Rs.
equities and mortgages are traded is known as the capital market. Capital market: . foreign exchange instruments. hybrid instruments and derivative instruments.. commercial papers etc. government securities.It is similar to money market operations. 2. insurance instruments. Industrial Credit and Investment Corporation of India. credit market instruments. Industrial Finance Corporation of India. Wholesale Debt Market: . namely: `-` 1. selected commercial banks and others. debt market operations involve institutional investors and corporate bodies entering into transactions of high value in financial instruments like treasury bills. National Stock Exchange In order to lift the Indian stock market trading system on par with the international standards. all Insurance Corporations. The different types of financial instruments that are traded in the capital markets are equity instruments. On the basis of the recommendations of high powered Pherwani Committee. 12 . The capital market offers both long term and overnight funds.The market where investment funds like bonds. the National Stock Exchange was incorporated in 1992 by Industrial Development Bank of India. The primal role of the capital market is to channelize investments from investors who have surplus funds to the ones who are running a deficit. NSE provides exposure to investors in two types of markets.
Trading members can stay at their offices and execute the trading. which adopts the principle of an order-driven market. They are as follows: NSE brings an integrated stock market trading network across the nation. (b) Participants.There are two kinds of players in NSE (a) Trading members. Participants include trading members and large players like banks who take direct settlement responsibility. NSE has several advantages over the traditional trading exchanges. Trading at NSE takes place through a fully automated screen-based trading mechanism. When the prices match the transaction will be completed and a confirmation slip will be printed at the office of the trading member. Recognized members of NSE are called trading members who trade on behalf of themselves and their clients. Investors can trade at the same price from anywhere in the country since inter-market operations are streamlined coupled with the countrywide access to the securities. The prices at which the buyer and seller are willing to transact will appear on the screen. since they are linked through a communication network. 13 .
In this regard NSE gains vital importance in the Indian capital market system. In 2000 the BSE used this index to open its derivatives market. 14 . late payments and the malpractices prevailing in the traditional trading mechanism can be done away with greater operational efficiency and informational transparency in the stock market operations. BSEWEB x. small investors and foreign investors will not be interested in capital market operations. giving the BSE a means to measure overall performance of the exchange. In 1995 The BSE has also introduced the world's first centralized exchangebased internet trading system. The Bombay Stock Exchange developed the BSE Sensex in 1986. trading Sensex futures contracts. India cannot afford to damage the capital market path. Bombay Stock Exchange The Bombay Stock Exchange is the oldest exchange in Asia. Delays in communication.in to enable investors anywhere in the world to trade on the BSE platform.co. with the support of total computerized network. Unless stock markets provide professionalized service. And capital market being one of the major sources of long-term finance for industrial projects.
1. Decision to Trade
2. Placing order
6. Funds / Securitie s
3. Trade Execution
5. Settlemen t of Trades
4. Clearing of Trades
Step 1:- The above cycle is initiated by a client who wants to either buy or sell securities. In that case, he has to make a decision regarding the same. A Decision is taken by the client after considering the liquidity conditions
And requirements or reshuffles his holdings in response to changes in The market conditions or perceptions. Step 2:- He then selects a broker and instructs him to place buy/sell order on an exchange. Step 3:- The order is converted to a trade as soon as it finds a matching sell/buy order. Step 4:- The trades are netted to determine the obligations of the trading Members to deliver securities/funds as per settlement schedule. Step 5:- Buyer/seller delivers funds/securities and receives securities/funds and acquires ownership of the securities.
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 like location constrains, busy phone lines, miss communication etc start growing in stock broker offices. Information technology (Stock Market Software) helps stock brokers in solving these problems with Online Stock Trading. Online trading began in the 1900s with the advent of the Internet. It has opened a new window of opportunity for the investors.
Online Stock Market Trading is an internet based stock trading facility. Investor can trade shares through a website without any manual intervention from Stock Broker. There are several types of online brokers and it is pertinent to choose a reputable company. Some things to consider when choosing an online broker include the minimum investment needed to begin trading; amount of inactivity fees; trading support; commissions and whether the broker is involved in other businesses. Some well-known brokers are Fidelity, TDAmeritrade, E*Trade and Scot trade. The benefits of online trading are the ability to take control of our own future. Online trading eliminates the "middleman," those sales agents who don't really have your best interests at heart. Online stock trading allows you to call your own shots. It also saves on trading commissions.
OBJECTIVES OF INTERNET TRADING • Increase transparency in the markets. • Enhance market quality through improved liquidity, by increasing quote Continuity & market depth. • Reduce settlement risks due to open trades, by elimination of mismatches. • Provide management information system (MIS). • Introduce flexibility in system, to handle growing volumes easily and to support nationwide expansion of market activity.
creation of a fair and efficient market and. Do’s and Don’ts of Online Trading 1. reduction of the systematic risks. we can fix up a buy/sell price based on our judgment and go for limit orders. these are: Investor protection. So we should always make sure not to change our decision until the last moment. For novice traders. Set the stop loss to level to avoid the risks associated. Online trading provides facility to place limit orders. 4. 3. An important feature of stock markets is volatility. Taking time to examine the stock and make decision ahead of time so that we don’t loose while in panic. 2. we might land up in losses. 5. 18 . Moreover limit orders help us to take ample advantage of volatile session during the day. If we don’t have sufficient time to keep track of the stock prices. Online trading is a matter of trust between us and our broker because there is no in-person contact. We should get detailed email statements and contract notes of executed trades time to time from our broker. Prices change at the blink of eye and the transactions are not always in real time.• Besides. But we can’t leave everything on trust. it is better to always trade with stop losses. through Internet trading three fundamental objectives of securities regulation can be easily achieved. So if we don’t keep a close eye on how our stocks move while placing an order.
prudent investor should always be well aware of the various Fees and commissions charged by the broker for various services offered like Mobile services.Branch Head Office A-206. CHAPTER 2 Company profile NAME: . chart and other tools to facilitate easy trade as they really affect our net earnings.6.1925 Punch Line: . It is advisable always to follow security measures related to passwords and other personal information while login into the websites to eliminate chances of theft of identity and information. Security is another important factor for online traders. buy sell alerts.Sharekhan Company Limited Year of Establishment: . Lower panel. 7. Phoenix House 2nd Floor. In addition to the brokerage rate being paid. Phoenix Mills Compound. reporting. Company Logo:Address :.You’re Guide to the Financial Jungle.022-67482000 19 . Mumbai – 400013 Telephone no :.
20 . exclusively suited for the retail investor giving recommendations. International private equity investor like HSBC private equity India fund limited.1800227500 Website :.46% of the equity is between promoters and 0. Online Services and Technical Research. maturities an Intel capital. Since then it has focused on strengthening its presence in the rapidly expanding retail broking market.www.sharekhan.Service Provider. Ltd.Tollfree no :.03% is held by the employees. Services:-Depository Services.51% of the equity capital remaining 55. SS Kantilal Iswarlal Securities Pvt. Company has recently obtained SEBI registration to act as Portfolio Manager.com Nature of Business: . it is one of the first introduced researches. About Sharekhan Sharekhan Limited is in stock broking service for over 80 years now. A first Carlyle venture. collectively hold 44. SSKI has its presence in the retail market since its inceptions over 80 years ago. Further SSKI was incorporated on 20th April 1995. was found and established in 1922 by Kantilal Morakhia. it is known as composite corporate member of stock exchange Mumbai (BSE) holding two cards.
21 . The Company's online trading and investment site - www.was launched on Feb 8. Infosys. Investment advice. “Awaaz customers Award 2005”. Awarded ‘Top Domestic Brokerage House’ four times by Euro Asia money. etc by ‘Business Today’. Most preferred financial destination online trading websites. January 2004 edition. HUJl. 2000. NSE. Winners of “Best Financial Website” award. Depository services.com . SSKI Corporate Finance Private Limited (SSKI) is a leading Indiabased investment bank with strong research-driven focus. online trading.Sharekhan. Amongst online broking customers. Our team members are widely respected for their commitment to transactions and their specialized knowledge in their areas of strength. Pioneers of online trading in India amongst the top 3 money and from India. etc. Sharekhan has 640 outlets in 280 cities in India. and Derivatives. Commodities. India’s most preferred brokers within 5 years. Sharekhan offers its customers a wide range of equity related services including trade execution on BSE. ACHIEVEMENTS OF SHAREKHAN Wired companies along with Reliance.
000 highly valued New initiatives Portfolio management Services and commodities trading. Vision To be the best retail brokering Brand in the retail business of stock market. 00.Future Plans 2. Independent investment managers/ franchisee servicing 50.000 plus retail customers being serviced through centralized call centers/ web solutions. Company’s Objective To increase market share of the company as well as to increase customer’s satisfaction level. Mission To educate and empower the individual investor to make better investment decisions through quality advice and superior service. 1 player in online business 22 . 250¬affluent / aggressive traders through high skill financial advisor. Branches / Semi branches servicing¬centralized call centers/ web solutions. Sharekhan is infact Among the top 3 branded retail service providers No.
Sharekhan has two kinds of accounts to suit the trading habit of the clients Classic account – This account allows the client to through share khan’s website and is suitable for retail investors. Key features of speed trade and speed trade plus: Single screen trading terminal Real time streaming quotes Live tic by tic intra day charting Instant order/ trade confirmation in the same window Hot keys similar to a brokers terminal Customized alerts based on multiple parameters Back up facility to place trades on direct phone lines 23 . Share khan’s online trading website also comes with a dial-n-trade service that enables customer to buy and sell shares by calling toll free number. Largest network of branded broking outlets in the country serving more than 7. Speed trade gives active traders and jobbers the edge with real time access to the market.000 clients. Speed trade and speed trade plus account – These are the state of the art web trading products ideal for active traders and jobbers who transact frequently during the day’s trading session to capitalize on intra day price movements. 00.
6000 Nil for 1st year Rs. Sharekhan offers the following services Online BSE and NSE executions (through BOLT & Free access to NEAT terminals) Sharekhan Value Line (an investment advice from Sharekhan's Research team monthly publication with reviews of recommendations. registration fee A/c maintenance Nil for 1st year charges and Rs.300/annum form 2nd year.2000 Nil for 1st year form 2nd year SPEED TRADE PLUS A/C Rs.300/annum and : 4 times of the deposit.Terms and conditions PARTICULARS CLASSIC A/C SPEEDTRADE A/C One time Rs.5% and Rs. 49 Rs. stocks to watch out for etc) Daily research reports and market review (High Noon & Eagle Eye) Daily trading calls based on Technical Pre-market Report (Morning Cuppa) 24 .1% Delivery Exposure : 0. Brokerage Structure:Intraday trading: 0.300/annum form 2nd year.
Cool trading products (Daring Derivatives and Market Strategy). Service provided by Sharekhan R 25 . Live Market Information. Derivatives Trading (Futures and Options) De-mat Transactions IPO’s Trading & Internet-based Online Trading. Personalized Advice & Commodities. Mutual Funds Distribution Speed Trade. Analysis Depository Services: De-mat.
Sales Manager Branch 26 Manager Ass. Sales Manager Branch Manager Ass.The structure of company The structure of company can be diagrammatically presented as below:- Managing Director Zonal Manager Zonal Manager Zonal Manager Zonal Manager Regional Manager Regional manager Regional manager Regional Manager Branch Manager Ass. Sales Manager Branch Manager Ass. Sales Manager .
Dematerialization is the process by which physical certificates of an investor are converted to an equivalent number of securities form and credited into the investor’s account with his/her DP. Custodians. Banks. The Depository Participants (DP) is the link between the Shareholder. Stock Brokers etc. the Company and NSDL. A depository holds the securities of investors in electronic form just like a bank holds cash of its customers. 27 . DP: .Sale 痴 Executives Sale 痴 Executives Trainees Trainees Terms associsted with De-mat A/c & Online trading are as follows 1. The procedure for opening an account with the Depository Participant is similar to opening a Savings Bank Account with the Bank. Financial Institutions.DP refers to Depository Participants.De-mat refers to a Dematerialized account. The National Securities Depository Limited (NSDL) is the first depository in India. De-mat A/c : . 2.
In online share trading all three accounts are interlinked. All the transactions like buy and sell are done through this account.3.An account used to deposit money at a bank or credit union and earn interest on the account over time. A limit order is an order to buy or sell a security at a specific price. Limit order: .A Trading account is an account through which you buy or sell the shares. Saving A/c: . This is a regular bank a/c which is linked to D Mat a/c and trading a/c. By using a limit order we can also protect our self from buying the stock at too high a price. you need to place a limit order rather than a market order. Trading A/c:. A buy limit order can only be executed at the limit price or lower. required amount of money is used for trading from saving a/c. 28 .To avoid buying or selling a stock at a price higher or lower than you wanted. and a sell limit order can only be executed at the limit price or higher. DE-MAT ACCOUNT SAVING ACCOUNT TRADING ACCOUNT 5. 4.
The advantage of a market order is you are almost always guaranteed your order will be executed (as long as there are willing buyers and sellers). Stop Loss Orders: . Short Sell. you can buy the stock at lower price and make the profit. the stop loss order becomes a market order and your broker sells the stock.A sell stop order helps the investors to avoid further losses or to protect a profit that exists if the stock price continues to drop. Market Order: . If the price of the stock drops. 7. The order is entered at a stop price that is always above the current price. If the stock falls to this price point. Stop loss orders are cheap insurance that protects us from a loss. (a) Buy stop order.6. When we enter a stop loss order at a point below the current market price.Investors typically uses a stop order when buying stock to limit a loss or protect a profit on short sell.A stop loss order gives your broker a price trigger that protects us from a big drop in a stock. If the price of the stock rises and you buy it back later at higher price. The disadvantage is the price you pay when your order is executed may not always be the price you obtained from a real-time quote service or were quoted by your broker. you will incur a loss. (b) Sell Stop order.A short sell is generally the sale of a stock you do not own. Investors who sell short believe the price of the stock will fall. A stop order to sell is always placed below the current market price. the stop loss order does nothing. If the stock stays level or rises.A market order is an order to buy or sell a stock at the current market price. 8. 29 .
10. This protects our additional gains. Trailing Stops: . De-mat A/c opening process To open a De-mat account we have to approach DP and he will be guided us the official procedure to open an account. Some brokers have limits on how long they will hold a GTC order. 11. If we have a profit in a stock. we can visit NSDL and CDSL website . which should be quoted in all future transactions. We enter the trailing stop order as a percentage of the market price. 30 .we can choose the DP of our own choice.A day order is any order that is not a good till canceled order. a unique BOID (Beneficial Owner Identification) Number is allotted. To see who the register DP is. we use this order with other order types to specify a time frame for the order.9. Obviously. If the stock continues to rise. On opening a de-mat account.The trailing stop order is similar to the stop loss order. but you use it to protect a profit.A Good till canceled order instructs our broker to keep the order active until we cancel it. we will have to re-enter it the next day. the trailing stop follows it up since it is a percentage of the market price. we can use the trailing stop order to follow it up. Day Order: . as opposed to protect against a loss. If the market price declines by that percentage. the trailing stop becomes a market order and your broker sells the stock. If our broker does not fill our order that day. Good till Cancelled: .
Documents required for opening De-mat A/c To open a de-mat account we have to fill de-mat request form One Passport size photograph. electricity bill or Ration Card.As of April 2006 it is mandatory. if any person want to open a de-mat account should have a PAN CARD (Permanent Account number) . proof of address like Voter ID card. Employee ID Card. Bank attestation Submit the DRF & share certificate(s) to DP.We can open a De-mat account with no balance of shares. Deface the share certificate(s) we want to dematerialize by writing across Surrendered for dematerialization. there is no minimum balance is required. DP would forward them to the issuer / R&T agents. our depository account with our DP would be credited with the dematerialized securities. We have to Submit the PAN Card as a proof of identity . After dematerialization. Without a PAN CARD we are not be eligible to open a De-mat account 31 .
Client Registration Process FORM SUBMISSION SCRUTINY SEGREGATE OPEN A/C OR REJECT BANK VALID FORM INTIMATES CPU OPEN A/C OR REJECT DP 32 .
easy. safe and secure. We can even sold one share as per our choice. no paper work is required. De-mat account holders need not pay stamp duty posted. and we can open your account before you buy your first security. which can be operated by multiple holders. We can purchase. We can save a transaction cost with quick transfer. Shares are credit automatically in De-mat account. hold and sell shares in electronic form. TYPES OF ACCOUNT IN SHAREKHAN LIMITED: 33 . It is quick. it reduces time taken during trading and avoiding the problem like signature mismatch and loss of certificates and the risk due to fire and theft. We can open a multiple de-mat account.Benefits of De-mat Account Nomination facility is available in De-mat account. We can open as many account. there is no limit on that.
Integrated Banking. Real-time portfolio tracking with price alerts and Instant credit & transfer. Online trading account for investing in Equities and Derivatives b.This is a User Friendly Product which allows the client to trade through website www. This account allow investors to buy and sell stocks online along with the following features like multiple watch lists.com and is suitable for the retail investor who is risk-averse and hence prefers to invest in stocks or who does not trade too frequently. De-mat and digital contracts.Sharekhan offers two types of trading account for its clients: ➢ Classic Account (which include a feature known as Fast Trade Advanced Classic Account for the online users) and ➢ Trade Tiger Account CLASSIC ACCOUNT: . This account comes with the following features: a. professional advice of Sharekhan limited Tele Brokers After hours order placement facility between 8.sharekhan.00 am and 9.30 am 34 . Free trading through Phone (Dial-n-Trade): Two dedicated numbers(1800-22-7500 and 39707500) for placing the orders using cell phones or landline phones Automatic funds transfer with phone banking facilities (for Citibank and HDFC bank customers) Simple and Secure Interactive Voice Response based system for authentication get the trusted.
d. Market summary (Cost traded scrip. Integration of: Online Trading + De-mat Account + Cash to Margin. tic-by-tic charts. c. This account comes with the following features: a. It is ideal for active traders and jobbers who transact frequently during day’s session to capitalize on intra-day price movement. which enables one to buy and sell in an instant. b. e. Instant order Execution and Confirmation. Hot keys similar to broker’s terminal. g. f. f.) g. I. Instant order and trade confirmations by e-mail. Technical Studies. Instant cash transfer facility against purchase & sale of shares. d. TRADE TIGER ACCOUNT: . NSE F&O & BSE. Back-up facility to place trades on Direct Phone lines. e. Single screen trading terminal for NSE Cash.c.This is an internet-based software application. highest value etc. Multiple Charting. IPO investments. Single screen interface for cash and derivatives. h. 35 . Alerts and reminders. Real-time streaming quotes.
j. Tarun Shah – Chief Executive Officer (CEO) of the company A science graduate from St. Live market debts. he recognized the opportunity offered by the stock market to serve individual investors. Dinesh Murikya – Owner of the company The Sharekhan Group of Companies was brought to life by Mr.broking house was established in 1925. Tarun Shah started his professional life in sales and marketing in a chemicals company. and Mr. Thus India’s first retail-focused stock. Sharekhan became the first broking house to embrace new technology for faster. However. Under his leadership. Xavier’s College. His hands on approach and rigorous 36 . SHAREKHAN LIMITED’S MANAGEMENT TEAM Mr. Mumbai. more effective and affordable services to retail investors. Dinesh Murikya. Mr. He ventured into stock trading with an intention to raise capital for his own independent enterprise.
Tarun Shah moved in to spearhead this new effort as CEO of the Sharekhan. Accepting new challenges is a way of life for Mr. Mr. Jaideep worked with ICICI for 8 years where his work spanned a gamut of functions. he joined SSKI. During his tenure there he set up and headed the ‘Institutional Equity Brokerage Desk’ at ICICI Securities & Finance Co. Mr. 37 . Jaideep Arora – Director (Products & Technology) of the company Jaideep Arora completed his B. Ltd. A year later he took over the reigns of the online business at Sharekhan. To ensure that SSKI’s foray into retail stock broking business through Sharekhan meets with the same success every other SSKI venture has. At present Jaideep’s responsibilities include spearheading Sharekhan’s online foray and overall customer acquisition effort. investments etc.Tech from IIT (Kanpur) and his PGDM from IIM Kolkata. Tarun Shah. a brokerage firm with over five decades of legendary service to its credit. Mr. Shankar Vailaya heads the operations. equity sales and brokerage. The capital markets at that time was undergoing a sea change in its character and SSKI under the vision and guidance of Shripal Morakhia and the commitment and hard work of Mr. In 1987. finance and legal functions. Shah was able to change and adopt the new business practices to achieve significant growth in a competitive environment.experience in sales led him to higher challenges that the capital markets provided. Jaideep joined Sharekhan in June 2000 as Head of Product Development. Mr. Shankar Vailaya – Director (Operations) of the company A graduate in commerce from the University of Mangalore and an Associate of The Member of the Institute of Chartered Accountants of India. depository operations. He is responsible for settlements. risk and compliance and regulatory & other legal commitments and Treasury. Shankar has managed broking operations through the most turbulent times of the post securities scam period in 1992 and has managed to steer clear of a flurry of bad papers in the market during 1994-95. which included project finance.
Fin flow Investment Pvt Ltd. SSKI Investor Service Ltd (Sharekhan). Palm spring estates Pvt Ltd. 38 . Arch fund Properties Pvt Ltd. S.S. Share khan Commodities Pvt Ltd. Kantilal Iswarlal Securities Pvt Ltd (Share khan). I dream Productions I dream Production UK Pvt Ltd.➢ Pathik Gandotra: Head of Research ➢ Rishi Kohli: Vice President of Equity Derivatives ➢ Nikhil Vora: Vice President of Research SSKI Group Companies SSKI Corporate Finance.
CHAPTER 3 SWOT ANALYSIS Strengths: It is a pioneer in online trading with a turn over of Rs. 39 .400crores and more than 800 peoples working in the organization. etc).com. Which constantly track the pulse of the market and provide timely investment advice free of cost to its clients which has a strike rate of 70-80%? Weaknesses: Localized presence due to insufficient investments for country wide expansion. Share Khan provides multi-channel access to all its customers through a strong online presence with www. SSKI the parent company of Share Khan has more than eight decades of trust and credibility in the Indian stock market. Lesser emphasis on customer retention. Share Khan has dedicated research teams for fundamental and technical research. Lack of awareness among customers because of non-aggressive promotional strategies (print media. newspapers. 250 share shops in 130 cities and a call-center based Dial-n-Trade facility. In the Asian Money Broker’s poll SSKI won the “India’s best broking house for 2004” award.sharekhan.
Opportunities: With the booming capital market it can successfully launch new services and raise its client’s base. Threats: Aggressive promotional strategies by close competitors may hamper Share Khan’s acceptance by new clients.Focuses more on HNIs than retail investors which results in meager marketshare as compared to close competitors. Other players are providing margin funds to investors on easy terms where as there is no such facility in share khan. Increasing usage of internet through broadband connectivity may boost a whole new breed of investors for trading in securities. more and more small investors are entering into stock market. 40 . Lack of sufficient branch-offices for speedy delivery of services. etc. It can easily tap the retail investors with small saving through promotional channels like print media. 29 As interest on fixed deposits with post office and banks are all time low. electronic media. Abolition of long term capital gain tax on shares and reduction in short term capital gain is making stock market as hot destination for investment among small investors. More and more players are venturing into this domain which can further reduce the earnings of Share Khan.
So that. From the study we have learned very much. its products and services offered. a trainee will be able to work well for the organization. about the company as well as the strategy of the customers. 41 . products and services and also to collect information about its competitors.CHAPTER 4 Need for the Study The need of the study arises because of the reason that a trainee must understand the company. which helps us a lot at our working days. its achievements and tasks. after understanding and collecting information about the organization and its competitors.
India bulls are lead by a highly regarded management team that has invested crores of rupees into a world class Infrastructure that provides real-time service & 24/7 access to all information and products. Its size and strong balance sheet allows providing varied products and services at very attractive prices. our over 750 Client Relationship Managers are dedicated to serving your unique needs. The India bulls Professional Network offers real-time prices. Derivatives. India bulls offers a full range of financial services and products ranging from Equities. De-mat services and Insurance to enhance wealth.CHAPTER 5 Competitors of Sharekhan Limited India bulls India bulls are India's leading retail financial services company with 77 locations spread across 64 cities. detailed data and news. This powerful technology is complemented by our knowledgeable and customer focused Relationship Managers. intelligent analytics. 42 . and electronic trading capabilities. right at your finger-tips.
one of the world’s leading investment banks and brokerage firms) is India’s leading stock broking house with a market share of 5 . has been the largest in IPO distribution .com): Kotak Securities Ltd.Kotak Securities Limited (kotakstreet.6 %. Kotak Securities Ltd. sectoral research and company specific equity research combined with a strong and well networked sales force which helps deliver current and up to date market information and news. a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25% .April 2004.It was ranked number One in 2003-04 as Book Running Lead Managers in public equity offerings by PRIME Database. Kotak Securities Ltd is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) 43 . It has also won the Best Equity House Award from Finance Asia .. The company has a full fledged research division involved in Macro Economic studies.
Kotakstreet.com) is stock trading company of ICICI Bank. it also provides facility to invest in IPO’s. The company has 42 branches servicing around 1. ICICI Direct offers 3 different online trading platforms to its customers.000 customers. Mutual Funds and Bonds.providing dual benefit services wherein the investors can use the brokerage services of the company for executing the transactions and the depository services for settling them. Kotak Securities Limited has newly launched “Kotak Infinity” as a distinct discretionary Portfolio Management Service which looks into the middle end of the market. ICICI DIRECT ICICI Direct (or ICICIDirect. Trading is available in BSE and NSE.com the online division of Kotak Securities Limited offers Internet Broking services and also online IPO and Mutual Fund Investments. Kotak Securities Limited manages assets over 1700 crores under Portfolio Management Services (PMS) which is mainly to the high end of the market. 00. 44 . Along with stock trading and trading in derivatives in BSE and NSE.
ICICI Direct offers various options while investing in Mutual Funds like Purchase Mutual Fund. Buy Today Sell Tomorrow and Call and Trade on phone. Share Trading Account:Share Trading Account by ICICI Direct is primarily for buying and selling of stocks in BSE and NSE. This account allows Cash Trading. 2. Active Trader also provides commodity trading. Wise Investment Account: 1. Redemption and switch between different schemes. Margin Trading. This account also provides facility to invest in Government of India Bonds and ICICI Bank Tax Saving Bonds. Systematic withdrawal plan and transferring existing Mutual Funds in to electronic mode. Spot Trading. It also provides with independent market expertise and support through a dedicated Relationship Manager from ICICI. 45 .com website is the primary trading platform for this trading account. Systematic Investment plans. Margin PLUS Trading. ICICIDirect. Active Trader account gives more personalized investment options to the investors.Type of Account: 1. Online Mutual funds investment allows investor to invest on-line in around 19 Mutual Fund companies. 2. They also provide installable application terminal based application for high volume trader. It allows investor to use online and offline stock trading.
425% for squared off trades and 0.Brokerage and fees Account opening fees: Rs 750/.4% to 0. HDFC BANK HDFC BANK is one of the leading Depository Participant (DP) in the country with over 8 Lac de-mat accounts. Getting access to ICICIDirect.85% on delivery based trades.2% to 0. It ranges from 0. HDFC Bank De-mat services offers you a secure and convenient way to keep track of your securities and investments. over a period of time.com website during market session can be frustrating. Disadvantages of ICICI Direct: 1.com brokerage varies on volume of trade and inclusive of de-mats transaction charges. service taxes and courier charges for contract notes. without the hassle of handling physical documents that get mutilated or lost in transit. 0.1% to 0.(One time nonrefundable) Brokerage: ICICIDirect.15% for margin trades. 46 .
registration of power of attorney. Holding / Transaction details through Internet / email. Change of address.HDFC BANK is Depository participant both with National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL). Auto Credit of Rights / Bonus / Public Issues /Dividend credit through ECS. Auto Credit of Public Issue refunds to the bank account. Signature. Pledging of Securities. Dividend Mandate. feedback & complaints. Electronic credit in public issue. Features & Benefits: As opposed to the earlier form of dealing in physical certificates with delays in transaction. No stamp duty on transfer of securities held in de-mats form. Secured & easy transaction processing In case we need any more information or have any queries. holding and trading in De-mat form has the following benefits: Settlement of Securities traded on the exchanges as well as off market transactions. Shorter settlements thereby enhancing liquidity. transmission etc. we may please mail there at dphelp@hdfcbank. can be effected across companies held in de-mat form by a single instruction to the Depository Participant (DP). No concept of Market Lots.com 47 .
Also HDFC Bank might ask for additional information / documentation than what has been stated above to process your application / instruction. Disclaimer: Whatever have been stated above are in the good interest of the Investor / De-mat Applicants / holders to provide a brief picture about the depository system. You are requested go through the guidelines of the depositories before taking any further action. SPEED-e offers secured means of transaction processing eliminating preparation of instruction slips and submission of the same across the counter to the depository participant. 48 . you are requested to approach your nearest HDFC Bank branch.com).nsdl.HDFC Bank Ltd provides convenient facility called 'SPEED-e' (Internet based transaction) whereby account holder can submit delivery instructions electronically through SPEED-e website (https://speede. The 'IDEAS' facility helps in viewing the current transactions and balances (holdings) of De-mat account on Internet on real time basis. HDFC Bank will not be responsible for any misunderstanding / act based on the above. For detailed guidelines.
broking space in India. The company offers a slew of products such as stock and derivatives broking. Mumbai. member of National Stock Exchange and The Stock Exchange. one of the leading technology companies in the world promoted by the U K government. 5paisa has emerged as one of leading players in e. Its institutional investors include Intel Capital. Investors can benefit from its analysis and advice available at the click of the mouse. India Infoline investor points are available across the country. India’s leading and most popular finance and investment portal.com 5paisa is the trade name of India Infoline Securities Private Limited (5paisa). TDA and Reeshanar. ICICI. 49 . The company’s brokerage is one of the lowest in the industry.5Paisa. commodities broking and mutual funds. For those who prefer to trade the traditional way. India Infoline was founded by a group of professionals in 1995. It also provides the research on commodities. 5paisa is a wholly owned subsidiary of India Infoline Ltd.
1996 . offering a complete suite of products and services to individual. July 1995 . research.Started operations as a Depository Participant. March 1995 –Commenced Equity Broking on NSE CM segment.Commenced operations as a Portfolio Manager. Our services include fixed income trading. private placements. we have emerged as a leading player in each of these businesses. (IDBI Capital). depository services. institutional and corporate clients. IDBI Capital is a leading Indian securities firm offering a complete suite of products and services to individual. Over the last five years.Started operations as a Primary Dealer.Acquired Derivatives memberships of BSE and NSE. institutional and corporate clients.Built agent Distribution Network across the country October 1996 . 50 . November 1999 . Mumbai. IDBI Capital Market Services Ltd. debt and equity derivatives. is a leading Indian securities firm.IDBI Capital Market Services Ltd. February 1999 – Acquired membership of BSE. April 1998 . equities brokerage.Started to act as Arranger to Privately Placed Bond issues. portfolio management and distribution of financial products. a wholly owned subsidiary of Industrial Development Bank of India (IDBI).Commenced Debt Broking on NSE WDM segment December 1996 . June 2000 .
To broaden the gamut of services offered to its investors.Achieved an outright secondary market turnover exceeding Rs 100. FII. The company urgently handles sizeable volumes traded on NSE and in the realm of online trading and investments. International Advisory Fund Management Services. Religare has been constantly innovating in terms of product and services and to offer such incisive services to specific user segments it has also started the NRI. Depository Participant Services. The major activities and offerings of the company today are Equity Broking. Bombay Stock Exchange of India. Portfolio Management Services. a 100% subsidiary of Religare enterprises Limited is a leading equity and securities firm in India. October 2002. Religare Securities Limited (RSL) Religare Securities Limited (RSL). These groups take all the portfolio investment decisions depending upon a client’s risk / return parameter. Depository Participant with National Securities Depository Limited and Central Depository Services (I) Limited. March 2002 . RSL is a member of the National Stock Exchange of India. 51 . HNI and Corporate Servicing groups. and is a SEBI approved Portfolio Manager. 000. it currently holds a reasonable share of the market. the company offers an online investment portal armed with a host of revolutionary features. Institutional Broking and Research Services.Commenced trading in Interest Rate Swaps.
diversify and in the process. Since then. services over 16 million individual investors in various capacities. History of Karvy: . 52 . Karvy Consultants Limited. and ranked among the top five in the country in all its business segments.The birth of Karvy was on a modest scale in 1981. to innovate. Karvy utilized its experience and superlative expertise to go from strength to strength. and provides investor services to over 300 corporate. KARVY Karvy is a premier integrated financial services provider. Religare has a very credible Research and Analysis division. evolved as one of India’s premier integrated financial service enterprise. They started with consulting and financial accounting automation and carved inroads into the field of registry and share accounting by 1985. comprising the who is who of Corporate India. Karvy has a professional management team and ranks among the best in technology. but also gives their valuable inputs to investment dealers. to better their services. operations and research of various industrial segments. which not only caters to the need of our Institutional clientele. It began with the vision and enterprise of a small group of practicing Chartered Accountants who founded the flagship company.
and IPO and Mutual Fund Investment Advisory Services. The institutional business unit has relationships with several leading foreign institutional investors (FIIs) in the US. with a dominant position in both institutional and retail broking. The retail business unit provides equity investment solutions to more than 50. MOSt provides Advice-Based Broking. Hong Kong and Singapore.Motilal Oswal Securities Ltd. E-Broking Services. mOSt is amongst the best-capitalized firms in the broking industry in terms of net worth. research-based value investing and implementation of cutting-edge technology have enabled it to blossom into a thousand-member team. Commodities Trading. (MOSt) One of the top-3 stock-broking houses in India. Its Value PMS Scheme gave a 160% post-tax return for the year ended March 2004.000 investors through 270 outlets spanning 150 cities and 22 states. In a recent media report MOSt was rated as one of the top-10 brokers in terms of business transacted for FIIs. respect for professionalism. ethical and transparent business practices. UK. 53 . with just two people running the show. Depository Services. MOSt was founded in 1987 as a small sub-broking unit. Focus on customer-first-attitude. Portfolio Management Services (PMS).
Ltd.Sify Securities India Pvt. Refco .Mega Funds .while in 2000 and 2002 it has been rated as the Best Domestic Equity Research House and Second best amongst Indian Brokerage firms respectively. a strong research team consistently provides high-performance ideas.. equities. Its proprietary systems and global infrastructure provide the flexibility to meet all client requirements. and Satyam Info way Limited (NASDAQ: SIFY) to offer online and offline equity and derivatives trading for retail customers as well as execution and clearing services for financial institutions. is a joint venture between the Refco Group Holding Ltd. Ltd Refco-Sify Securities India Pvt. 54 . foreign exchange. USA. MOSt’s equity research has been consistently ranked very highly in surveys conducted by leading international publications like Asia money and Institutional Investor.With value investing at the core of its investment philosophy. Refco also provides clients with prime brokerage services. headquartered in Mumbai. fixed income. OTC derivatives and asset management.. Refco is a leader in providing clients with the latest technological advances in products and services. In Asia Money Brokers Poll 2003 MOSt has been rated as the Best Domestic Research House .
1994 by Unit Trust of India as a 100% subsidiary and on the repealing of the UTI Act. Standard Chartered UTI Securities (P) Ltd. that is engaged in primary dealership and Government securities. The company has also invested in the joint-venture company with Standard Chartered Bank viz. UTI SECURITIES LTD. Refco understands the unique business requirements of each of its clients and tailors its products and services to meet those requirements. 55 . USEc Commodities Ltd. the capital is now held by the Administrator of the Specified Undertaking of Unit Trust of India (ASUUTI).: (UTISEL) UTI Securities Ltd was incorporated on June 24. The company is very soon going to start Commodity Trading through its subsidiary. which provides facility of commodity trading on NCDEX and MCX. The Company has presence in major cities with 20 branches and 50 franchisees to service a wide range of clients. UTI Securities has been working as an independent professional entity for providing financial intermediary and advisory services to its corporate and retail clientele.Client service is what sets Refco apart from its competitors.
is margin) De-mat A/c Charges Free (1st Year & 415/.CHAPTER 6 Comparison among different Share broking firm Compan y Sharekhan ICICI .per month 500/.com SEC.com HDFC 5Paise INDIA BULLS .per annum No AMC 56 .com 750/NIL (waive off if Religare .from 2nd year onwards Free (1st Year & 300/.from 2nd year onwards 30/.com .per month 250/.com .com 750/420/Fresher And 250/trader Points Opening A/c Charges 20550/(20000 (existing -relation -ship) 700/- trading is > than Rs 1 lack.
A 1000/commitment of brokerage N.A 500/. HMR value A/c.P.Keat Desktop 2.Company Sharekhan ICICI .M ( Negotiable on volume) N. Keats Premium Website Both Website Software Charges Nil N. Investor terminal) 2 types ( classic & trade tiger) Web based gateway A/c.com Religare .com Points Types of Account SEC. HMR high trader A/c.A 57 .com 5 types (HMR HDFC 5Paise INDIA BULLS .com .com .com 2 types ( Traders Web based terminal. HMR freeway A/c Both are software Web based Trading through website or software Both Website 1.Or 300/.
on selling whichever is higher Rs 25/.com .Company Sharekhan ICICI .com HDFC 5Paise INDIA BULLS .05% or Local call charges RM number provided for trading De-mat transaction charges minimum of Nil ( through Sharekhan) Including in brokerage 0.per instruction (on selling) Rs 17/per transaction (on selling) 58 .com Points NSE/BSE /Deriva Tives/ Arbitrage /Mutual Funds SEC.com Religare .04% or Rs 0.M) 15/.com .04% or 25/.on selling whichever is higher Rs 20/.com NSE/BSE NSE/BSE /Derivative / Mutual Funds / Derivative NSE/BSE / Mutual Funds / Derivative NSE NSE/BSE /Deriva Tives/ Arbitrage /Mutual funds NSE/ Deriva Tives On 21 call st Dial-&trade Rs 20/.per Unlimited call (P.or 25/from 21st call RM number provided for trading 0.
com Points SEC.com HDFC 5Paise INDIA BULLS . Citi bank.P. UNION. INDUSIND (HDFC.a Company 59 . Banks UTI. Stanch art) Banks Tie up with IDBI. Global Trust Bank or Centurion Bank (HDFC. OBC. YES.com Religare .com . (compulsory ) HDFC bank only ( ) ( HDFC.com Banks HMR Mahindra ICICI bank only ( compulso ry ) bank.com .M Free No Free No Free No Paid 100/p.a 100/. CITI.Company Sharekhan ICICI . CITI. IDBI. UTI bank.M Free Yes 450 p. Abnamro. CANARA. HDFC bank. CITI. compulsory UTI. ICICI.) Buy today sell tomorrow Yes Yes but only on 127 scrip’s of NSE Yes up to 75% shares value No Yes Yes IPO online Yes Yes Yes No Yes No SMS alert Research reports 100 P. ICICI.
1% (intraday) 0.1% to 15 % (intraday) 0.25% (delivery) by the system Volume requirement Nil Nil 0.85% (Delivery) product 0.05% (intraday) 0.com HDFC 5Paise .com .Points Minimum margin exposure Minimum margin Sharekhan ICICI . according to 5000/Rs 1000/commitment Nil 0.com SEC.59% (delivery) Nil 0.5% (Delivery) CHAPTER 7 OBJECTIVES 60 .or 4 times times (offline) 500 Blocked Nil 5000/- 500000/Yes.15% (intraday) 0.5% (Delivery) excluding taxes as brokerage 0.06% (intraday) 0.5% (delivery) Brokerage 0.4% to 0.1% (intraday) 0. 100000/.com 4 to 6.com 4 to 6 times ( online) 10 4 times onwards 4 to 6 times 5000/-.7 times 4 times Religare .
To provide pricing strategy of competitors to fight cut throat people for opening De-Mat a/c. for online share trading. Secondary objective To know and understand the thinking and perception of different people about D-mat account and online trading account and share market To see the interest of people to be an agent for SHAREKHAN LTD.Primary Objectives: To find out potential customer by creating awareness among the To study the awareness and interest of customers for online trading To find out customer’s satisfaction level. To know the functioning of a Stock Market Scope of the study: To find out customer’s overall perception about the system. Promotion of the product. company. 61 . To create the image about SHAREKHAN financial product. competition. services. To know what motivates prospective customer to think about going To know what options are used by customer in online trading? To get information regarding the current market share of the To know competitors of Sharekhan in the market.
CHAPTER 8 RESEARCH METHoDOLOGY 62 .
approach.Research is an organized activity with specific objectives on a problem or issue supported by compilation of related data and facts. It refers to the analysis of principles of methods. research Instrument. Data Source:(A) PRIMARY DATA:- 63 . My Research Process is as follows:1. DEFINING THE OBJECTIVES: The aim of this project as has already been mentioned was to “Study the Mechanism of De-mat account & online trading. Designing a research Plan calls for taking decision on data sources research. involving application of relevant tools of analysis and deriving logically sound inferences based on originality The system collecting data for research projects is known as Research Methodology.” 2. DEVELOPING RESEARCH PLAN: The second stage of marketing research calls for developing a most efficient plan for gathering needed information. rules & techniques. sampling plan and contact methods.
e-mailed or faxed.In primary data collection. until we publish. The key point here is that the data we collect is unique to us and our research and. There are many methods of collecting primary data and the main methods include: • • • • • • • • Questionnaires Interviews Focus group interviews Observation Case-studies Diaries Critical incidents Portfolios. Questionnaires are a popular means of collecting data. but are difficult to design and often require many rewrites before an acceptable questionnaire is produced. Can be posted. • • 64 . we collect the data our self using methods such as interviews and questionnaires. Questionnaires Method. no one else has access to it. Advantages: • Can be used as a method in its own right or as a basis for interviewing or a telephone survey. 1. Can cover a large number of people or organizations.
Several reminders may be required. Historically low response rate (although inducements may help). I have used survey method for the collection of the necessary data. Respondent can consider responses. Problems with incomplete questionnaires. 2. Survey Method:It is most popular method for the collection of necessary data from the respondents. Possible anonymity of respondent. Disadvantages: • • • • • • • • • • Design problems. No interviewer bias. Require a return deadline.• • • • • • • Wide geographic coverage. Relatively cheap. Questions have to be relatively simple. Assumes no literacy problems. 65 . Avoids embarrassment on the part of the respondent. No control over who completes it. Time delay whilst waiting for responses to be returned. No prior arrangements are needed. Not possible to give assistance if required.
Disadvantages: • Need to set up interviews. Interview Interviewing is a technique that is primarily used to gain an understanding of the underlying reasons and motivations for people’s attitudes. at home. preferences or behavior. the interviewer will personally meet the respondent and will take is interview. etc. Characteristics of respondent assessed – tone of voice. or some other agreed location. (a) In the personal interview. Possible in-depth questions. They can be conducted at work. in the street or in a shopping centre. Interviews can be undertaken on a personal one-to-one basis or in a group. Advantages: • • • • • Serious approach by respondent resulting in accurate information. • • Personal interview. Telephonic survey. Completed and immediate.Different types of the survey are given below. hesitation. 66 . facial expression. Good response rate. The interviewer will ask question in face to face direction to the respondents or group of respondents. 3.
when the information to be collected is limited. Wide geographic coverage. Can cover reasonably large numbers of people or organizations. Can be expensive. Questionnaire required. Quick. 67 . It is mostly used when information to be collected is limited. This method is used. the interviewer will make call to respondents.• • • Time consuming. Not everyone has a telephone. (b). Disadvantages: • • • Often connected with selling. No waiting. in the telephonic interview. inform the respondents about the purpose of the call and then he will ask the related questions to the respondents. High response rate – keep going till the required number. Geographic limitations. Advantages: • • • • • • Relatively cheap.
with the participant taking a number of different roles. Observational methods may be: • • • • • • • Structured or unstructured Disguised or undisguised Natural or contrived Personal Mechanical Non-participant Participant. 4. 5.• • Repeat calls are inevitable – average 2. The main purpose of focus groups is to gain insights by listening to a group of people from the appropriate target market talk about specific issues of interest.5 calls to get someone. Time is wasted. Focus group interviews A focus group is an interview conducted by a trained moderator in a nonstructured and natural manner with a small group of respondents. The moderator leads the discussion. objects and events in a systematic manner. Observation Observation involves recording the behavioral patterns of people. (B) Secondary Data 68 .
In this project the approach used was survey approach & observation approach because the main objective of our survey was to study of the mechanism of De-mat A/c & online trading and have an idea about the customer awareness. RESEARCH APPROACH Out of 4 ways of research approaches i. 3. 1. 4. Experimental research.Any data which had been gathered earlier for other purposes are secondary data in hand of marketing research.sharekhan. company profile are collected from the internet. 2. Sampling The theory of sampling is based on random samples – where all items in the population have the same chance of being selected as sample units. Different web sites like www. Random 69 . internet and Web -sites.com and GOOGLE Search engine help in collecting the detailed information. These data has been collected from company dealer like Dealer profile. The secondary data are collected from the magazines. Focus Group research 4. Observation research.e. industrial profile. Survey Research 3.
This information is usually in the form of an alphabetical list – called the sampling frame. Research Instrument: . Three types of random sample can be drawn – Simple random sample (SRS). Simple random sampling Simple random sampling can be carried out in two ways – the lottery method and using random numbers.samples can be drawn in a number of ways but are usually based on having some information about population members. Systematic sampling Whilst not truly random this is a method that is used extensively because it is easy to operate and quick. Stratified sample and Systematic sample.The research instrument which I have chosen is questionnaire (face to face) method & survey method. 5. but separately from a number of disjoint strata of the population in order to ensure a more representative sample. 70 . even when the population and the sample are large. Stratified sampling A sample that is not drawn at random from whole population.
A customer of SHAREKHAN having de-mat A/c ©. Primary data tells us to asking the question to the person personally to become an adviser. (b). company magazines. sampling size: 100 customer of SHAREKHAN having De-mat account 4. (d). the information is collected. COLLECTING THE INFORMATION: With respect to primary and secondary data. Secondary data means that to get the data from the internet. Sample frame: A list of customer having saving account of SHAREKHAN in Pune city. talking with people and convince them. Data Analysis and Interpretations 71 CHAPTER 9 . Sample unit: . Sample universe: All De-mat account holder from Baner and Kothrud area in Pune.(A).
0 20.0 36. Investment’s Options Frequency Percent Bank Insurance Post office Mutual-fund Total 2 20 10 18 50 4.0 100.0 100.0 44.0 36.0 40.0 100.0 64.0 Cumulative Percent 4.0 72 .01.0 Valid Percent 4.0 20.0 40.
This shows that most of people. BRAND AWARENESS Companies ICICI Sharekhan Kotak Securities HDFC Securities Total No. 20% people are also interested in investing in Post office. of respondents 22 16 07 05 50 Percentage 45% 31% 14% 10% 100% 73 . are interested in investing in Insurance or Mutual Fund. 02. who are observed.
0 100.0 18.BRAND AWARENESS 45% 40% 35% 30% Percentage of People 25% 20% 15% 10% 5% 0% ICICI Sharekhan Kotak HDFC Securities Securities ICICI was at the top of the mind of 45% people out of 100% and Sharekhan securing second position with 31%.0 Frequency Percent yes no Total 41 9 50 82. Is online trading easy? Valid Percent 82.0 74 . 03.0 100.0 18.0 100. followed by Kotak and HDFC with 14% and 10% respectively.0 Cumulative Percent 82.
This proves most of people accept that online trading is easy. 04.0 16.0 Cumulative Percent 84. Do you need training? Valid Percent 84.0 100.0 100.0 75 .0 Frequency Percent yes no Total 42 8 50 84.0 100. This is a plus point for stock trading companies.0 16.
05. SOURCES OF ADVERTISEMENT Sources News papers magazines Friends Other media Total No. of respondents & 32 10 08 50 Percentage 64% 20% 16% 100% 76 .This shows that people need proper training or using online trading although it is easy.
SOURCES OF ADVERTISEMENT 70% 60% 50% Percentage 40% Of people 30% 20% 10% 0% News papers & magazines Friends Other media 63% people come to know about online share trading through news paper and magazines whereas 20% people come to know through friends and 17% people come to know through other media like internet. news channel etc. 77 .
0 Valid Percent 88.0 Cumulative Percent 88.0 100.0 100.06.0 Total 50 This shows that most people like NSE in comparison of BSE.0 12. 78 . Which is better.0 12. NSE or BSE? Frequency Percent NSE BSE 44 6 88.0 100.
of respondents 20 30 50 Percentage 40% 60% 100% Awareness of e-broking 60% 50% 40% 30% yes No l f o g a t n c r e p 20% 10% 0% 1 60% people were unfamiliar of the term e-broking and only 40% people aware were with the concept of e-broking. KNOWLEDGE THROUGH COMPANY WEBSITE 79 . AWARENESS OF E-BROKING Reply Yes No Total No.07. 08.
Reply Yes No Total No. of respondents 22 28 50 Percentage 43% 57% 100% KNOWLEDGE THROUGH COMPANY WEBSITE 60% 50% 40% Percentage 30% Of people 20% 10% 0% Yes No Out of the total sample size 43% people have visited the website of any ebroking company and 57% people have not visited any website regarding ebroking. 80 .
VISIT BY COMPANY REPRESENTATIVE Reply Yes No Total No.09. of respondents 12 38 50 Percentage 24% 76% 100% VISIT BY COMPANY REPRESENTATIVE 80% 70% 60% 50% Percentage of40% People 30% 20% 10% 0% Yes No 81 .
10.Only 24% people who are interested in online share trading have been visited by the representatives of the e-broking company and rest of the 73% people have not been visited. INTEREST IN E-BROKING Reply Yes No Total No. of respondents 48 02 50 Percentage 96% 04% 100% INTEREST IN E-BROKING 100% 90% 80% 70% 60% Percentage 50% Of people 40% 30% 20% 10% 0% Yes No 82 .
Out of the total sample size 97% people found the concept of e-broking interesting and 03% people do not find it interesting. of respondents 26 21 03 50 Percentage 52% 42% 06% 100% PREFERED SYSTEMS OF SHARE TRADING 6% 42% 52% Online Traditional Can 稚 say 83 . 11. PREFERED SYSTEMS OF SHARE TRADING System Online Traditional Can’t say Total No.
Regarding the preferences towards the different systems of share trading. 12. of respondents 20 14 16 50 Percentage 40% 28% 32% 100% 84 .INFLUENCING FACTORS Reason Dependence on broker Lack of computer knowledge Fear of fraudulence Total No. online share trading emerged as a clear cut winner with 53% people preferring it. followed by traditional with 41% while 06% people were unable to answer. TRADITIONAL.
TRADITIONAL- INFLUENCING FACTORS
Dependence on broker Fear of fraudulence
Lack of computer knowledge
39% people opt for traditional system of share trading because of there dependence on broker, 29% people opt for traditional system of share trading because of the lack of computer knowledge and 32% people wants to stick with traditional system due to fear of fraudulence.
13. Preference for Investment
Frequency Percent Large cap Midcap Small cap Total 40 8 2 50 80.0 16.0 4.0 100.0 Valid Percent 80.0 16.0 4.0 100.0 Cumulative Percent 80.0 96.0 100.0
By seeing this we can say that people prefer to invest in large cap companies. It may be due to less risk.
14. INFLUENCING FACTORS
Factors Transparency Hassle Free Service Economical Time saving Total No. of respondents 32 07 06 05 50 Percentage 64% 14% 12% 10% 100%
Hassle Free Service
15. economical with 12% and time saving with 10% respectively.Out of the four fascinating factors of online share trading transparency is at the top as 64% people has voted for it followed by hassle free with 14%. FUTURE PLANNING FOR ONLINE TRADING Reply Yes No Can’t say Total No. of respondents 26 22 02 50 Percentage 52% 44% 04% 100% FUTURE PLANNING FOR ONLINE TRADING Can 稚 say 4% No 44% Yes Percentage of people 52% 88 .
of respondents 27 15 08 50 Percentage 54% 30% 16% 100% 89 .Out of the total sample size 53% people are planning to go for online share trading and 43% people do not want to go for it while 4% people have not yet decided. 16. REASONS FOR NOT ENTERING INTO E-BROKING Reasons Relationship with broker Trade rarely Other reasons Total No.
REASONS FOR NOT ENTERING INTO E-BROKING 60% 50% 40% Percentage of 30% People 20% 10% 0% Relationship Trade rarely Other reasons With broker 55% people do want to do online share trading because they have good relationship with there broker. CHAPTER 10 Hypothesis 90 . 30% people trade rarely and 15% have some other reasons.
Post office was 3rd favorable option for investing. FINDINGS It is found that people who were observed.The hypothesis cannot be formulated because the research methodology used to carryout the project which is based on secondary data. Professionals and executive category are found to 91 . It may be due to less knowledge of Share-market as well as it is considered risky. kotakstreet.com.com. ICICI is found to be most popular among all. People are well aware of various services providers like sharekhan. And mutual funds are also a good option for them.com. hdfcsecurities. they are yet investing in CHAPTER 10 Insurance.
41% people rarely want to go for online trading. So it must be provided to them so that they can trade comfortably via online. According to most of the people observed NSE is better than BSE. It is also seen that people think that online trading is convenient and easy to operate but they also need initial guidance and training. Business class prefer off line share trading as most of them have good relationship with their broker. . 93% people found to be aware of online trading of securities. The representative of at least one service provider has visited 24% people. convenient & interesting. They showed interest in going for online share trading. economical and time saving features. People prefer to invest in large cap companies because of less risk. News and magazines are found to be of major source of information. 43% people said that they have visited at least one of the website for the online share trading concept. 90% of the total population agrees that the concept is easy. Still only 53% people are sure to go for online share trading. People have highly voted for transparency feature of the online trading followed by hassle free service. 92 .be in favor of the online share trading.
93 . The research is totally based on the personal opinion of the respondents which may vary depending upon their personal view. LIMITATIONS There is no activity without limitations so it had too. The main Limitation has been faced during project research are as follows: The research has been carried on time span of one & half months. Business class which can be defined as the people who are self employed entrepreneurs are found to be less interested and would like to stick to the traditional system and are much dependent on their broker regarding investments. The others which can be described as who are below 200000 incomes and which rarely trade in share. They are unwilling to go online as they cannot afford the service charges. CHAPTER 11 Budget for research was limited.
Also Internet penetration is poor in India. Although people have heard about online trading of securities still people have great doubt about its operational feasibility as they are not clear about the concept. CHAPTER 12 Expected Contribution from the Study 1. Special awareness programs using various media mixes should be carried out to remove fear from the minds of people and make it familiarize. 94 . The study is limited to the different schemes available under the De-mat account selected. Lack of awareness of capital market: Since the area is not known before it takes lot of time in convincing people to start investing in shares primarily in IPO’s. Lack of Techno Savvy people and poor internet penetration: Since most of the people are quite experienced and also they are not techno savvy. Due to instability of market people were afraid of it. People’s response was also not favorable. The research has done along with achieving our target given by company. Misleading concepts: Some people think that as all the shares are in electronic form and they don’t have any physical proof. so they were interested in these things. Sometimes this leads to a great misconception of the entire process.
who trades in small volume or make infrequent transactions or like to hold the stock as a long term investment. There are large numbers of prospective customers. Development in public relation management and customer relationship management will lead organization towards strong brand image as well goodwill. 4. There is a demand for services like insurance.Trading companies should look at such class.2. dividend policies will create interest in online trading.com can go for banking business as it has large customer base. 8. 5. No E-trading company is offering this. Awareness campaigns like giving idea about futures and options. 6. derivatives. Sharekhan. 7. Many times customer faces problem because of lack of coordination between management of e-trading company and bank. 3. as the bank or ATM facilities are not available. And this helps organization for market positioning as well as mind positioning. More emphasis should be laid on the convenience that the trading facilities offer by either introducing kiosks in the centre where the clients could have a demonstration for themselves and understand the various features of the product. mutual funds and other capital market instruments. In case of HDFC and ICICI I it becomes difficult for the client to operate from outside the metros. 95 . The current price structures are not at all suitable for such population. Clients should be allowed to have bank and DP accounts in the banks of their own choice. Introduction of these products will surely increase the number of customers. Generally e-trading are not in banking business but this can be done as it will provide convenience. E. This could help them determine how conventional mode of trading is.
2. CHAPTER 13 Suggestions and Recommendations 1. 4. Corporate people do not go for share trading due to lack of time. Their account opening charges is more than other companies.9. 96 . 11. magazines for their products And various schemes. They should do advertisement in newspaper. Comparative study of customer care and services provide by other companies will help develop business strategies as well business policies. This kind of seminar will motivate them and make them aware about e-trading. 10. Tie-up with banks will facilitate the customer as maximum customers have their salary accounts in banks and this account can be used for net banking as well share trading. They should introduce some new schemes. Seminars can be conduct at corporate level so as to increase potential customer base. 3. so it Should be reduce or more facilities should be given to customers. Their should be proper information provided to the customers during opening De-mat account.
as most of people find the concept of online share trading very interesting but none of them have been visited by the representative of any company. Sharekhan is very well known among the investors but from the analysis. Depository Participants are the one who provide the services of De-mat. For investing in share market every investor need to have an agreement with a Depository Participants.CHAPTER 14 Conclusion Shares are the best kind of investment available over a long period of time. 97 . I found that ICICI Direct Securities is one of the major competitors. During my research I found that there is a large market which is untapped. And also share market is a place where money earns money.
During my research I also found that many people want to stick with the traditional system of share trading because of lack of computer knowledge and also many people are dependent of their personal broker. In the research I observed that Sharekhan limited is not effective in the advertisement of its products.R.sharekhan. KOTHARI (2nd Edition) Research Methodology ▪ RAMA SWAMI Research Design COMPANY WEBSITES: www.com 98 . CHAPTER 15 BIBLIOGRAPHY ▪ ▪ PHILIP KOTLER (11th Edition) Marketing Management C.
Gender: (a) Male 3. www.com CHAPTER 16 Appendix QUESTIONNAIRE Personal Information: 1.google.com www.nseindia. Name: 2. Address: (b) Female 99 .
which company’s de-mat a/c do you have? (a)Sharekhan (b) Reliance (c) Religare (d) India-Infoline (e) ICICI (f) Others 13.4. Are you employed? (a) Yes 9.: 5. Which is the best investment-option for you? (a)Bank (b) Insurance (c)Post office (d) Mutual Funds (e)Stock-market (g) Others 11. Which is the best company according to you? (a)Sharekhan (b) Reliance (c) Religare (d) India-Info line (e) ICICI (f) Others 100 . Education: (a) Postgraduate (c) 12th 8. Are you married? (a) Yes 7. Do you have De-Mat A/C? (a) Yes (b) No 12. What is your monthly income? (In Rs) (a) Below 10000/(b) Between 10000-20000/(c) Between 20000-30000/(d) Above 30000/(b) Between 22-25years (d) Above 30 years (b) No (b) Graduate (d) below 12th (b) No Research-Questions: 10. Contact No. Age: (a) Between 20-22 years (c) Between 25-30years 6. If yes.
Do you agree that online trading is easy & convenient? (a) Yes (b) No 17. Are you interested to open a de-mat a/c. Which options do you use? (a)Intraday (c) Short sells (e) All (b) No (b) Delivery (d) Margin trading 19. Do you need training for online trading? (a) Yes 18. Have you done Online-Trading? (a) Yes (b) No (b) No 16. Which is better according to you? (a) NSE 20. Have you ever done Share-trading? (a) Yes 15.14. Which is your preference for investing? (a)Large-cap (c)Small-cap (b) BSE (b) Mid-cap (d) All 21. with Sharekhan? (a) Yes (b) No 101 .
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