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A PROJECT REPORT ON EQUITY MARKET ANALYSIS (SECONDARY MARKET)

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE POST GRADUATION DIPLOMA IN MANAGEMENT

SUBMITTED TO SINHGAD INSTITUTE OF MANAGEMENT & COMPUTER APPLICATION,PUNE

UNDER THE GUIDENCE: PROF SAPNA JUMDE

BY NISHANT VYAS ROLL NO. 19{ FINANCE} PGDM

INDEX
Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17 18. 19. Chapter 1 . 2. . Subject Acknowledgement Declaration Introduction Reason for selection the topic Organization profile About share khan Scope of product & services D mat account Type of dmat account Brokerage How to open account in sharekhan Head office & branches Quality policy & objective About share market Research objective &scope of project Data Analyses, Interpretation and Presentation Conclusion &suggestion Annexure Bibliography Page No. 3 4 5 10 11 12 13 14 15 17 18 21 25 26 28 33 41 43 45

. . 3 4. 5 6 7.

ACKNOWLEDGEMENT Every task even it is performed by one person ,still many other people are knowingly or unknowingly responsible for the completation of that task ,and their contribution and assistance proves to be a great help and it becomes difficult to quantify the importence of a particular person or a group while evaluating their contribution. First of all I would like to thank Dr. APORVA PALKAR (Director, Sinhgad Institute of Management & Computer Application) for giving me the opportunities to face and understand the market in real scenario. I must say that these two months had been most challenging and most learning months of my entire PGDM career. I have furthermore to thank the Company Guide Mr. RAHUL BAROD who gave and confirmed this permission and encouraged me to go ahead with my thesis. I am bound to thank all the other staff of Sharekhan for their stimulating support. I am deeply indebted to my Faculty Guide Prof. SAPNA JUMDE whose help, stimulating suggestions and encouragement helped me in all the times of research for and writing of this project report Last but not least I would also like to express my thanks to god and my other friends who inspired me to put in my best efforts for this project. NISHANT VYAS ROLL NO.19 Finance PGDM

DECLARATION

I hereby declare that this project report Equity Market Analysis (secondary market) is my own work, to the best of my knowledge and belief. It contains no material previously published or written by another person nor material which to a substantial extent has been accepted for the award of any other degree or diploma of any other institute, except where due acknowledge has been made in the text.

NISHANT VYAS Roll no. 19 Finance (PGDM)

INTRODUCTION:

The secondary market is the financial market for trading of securities that have already been issued in an initial private or public offering.[1] Alternatively, secondary market can refer to the market for any kind of used goods. The market that exists in a new security just after the new issue, is often referred to as the aftermarket. Once a newly issued stock is listed on a stock exchange, investors and speculators can easily trade on the exchange, as market makers provide bids and offers in the new stock.

Section 3 of SEBI Act protects the interests of the investors in securities and also promotes the development of, and regulates, the securities market and related matters.

Secondary Market refers to a market where securities are traded after being initially offered to the public in the primary market and/or listed on the Stock Exchange. Majority of the trading is done in the secondary market. Secondary market comprises of equity markets and the debt markets.

For the general investor, the secondary market provides an efficient platform for trading of his securities. For the management of the company, Secondary equity markets serve as a monitoring and control conduitby facilitating value-enhancing control activities, enabling implementation of incentive-based management contracts, and aggregating information (via price discovery) that guides management decisions.

What is the difference between the primary market and the secondary market?

In the primary market, securities are offered to public for subscription for the purpose of raising capital or fund. Secondary market is an equity trading avenue in which already existing/pre- issued securities are traded amongst investors. Secondary market could be either auction or dealer market. While stock exchange is the part of an auction market, Over-the-Counter (OTC) is a part of the dealer market.

SEBI and its Role in the Secondary Market


The SEBI is the regulatory authority established under Section 3 of SEBI Act 1992 to protect the interests of the investors in securities and to promote the development of, and to regulate, the securities market and for matters connected therewith and incidental thereto The following departments of SEBI take care of the activities in the secondary market.

Sr.No. 1.

Name of the Department Market Intermediaries Registration and Supervision department (MIRSD)

Major Activities

2.

3.

Registration, supervision, compliance monitoring and inspections of all market intermediaries in respect of all segments of the markets viz. equity, equity derivatives, debt and debt related derivatives. Market Regulation Formulating new policies and Department (MRD) supervising the functioning and operations (except relating to derivatives) of securities exchanges, their subsidiaries, and market institutions such as Clearing and settlement organizations and Depositories (Collectively referred to as Market SROs.) Derivatives and New Supervising trading at derivatives Products Departments segments of stock exchanges, (DNPD) introducing new products to be traded, and consequent policy changes

products dealt in the secondary markets:

Following are the main financial products/instruments dealt in the secondary market:

Equity: The ownership interest in a company of holders of its common and preferred stock. The various kinds of equity shares are as follows

Equity Shares:

An equity share, commonly referred to as ordinary share also represents the form of fractional ownership in which a shareholder, as a fractional owner, undertakes the maximum entrepreneurial risk associated with a business venture. The holders of such shares are members of the company and have voting rights. A company may issue such shares with differential rights as to voting, payment of dividend, etc.

Rights Issue/ Rights Shares: The issue of new securities to existing shareholders at a ratio to those already held.

Bonus Shares: Shares issued by the companies to their shareholders free of cost by capitalization of accumulated reserves from the profits earned in the earlier years.

Preferred Stock/ Preference shares: Owners of these kind of shares are entitled to a fixed dividend or dividend calculated at a fixed rate to be paid regularly before dividend can be paid in respect of equity

share. They also enjoy priority over the equity shareholders in payment of surplus. But in the event of liquidation, their claims rank below the claims of the companys creditors, bondholders / debenture holders.

Cumulative Preference Shares. A type of preference shares on which dividend accumulates if remains unpaid. All arrears of preference dividend have to be paid out before paying dividend on equity shares.

Cumulative Convertible Preference Shares: A type of preference shares where the dividend payable on the same accumulates, if not paid. After a specified date, these shares will be converted into equity capital of the company.

Participating Preference Share: The right of certain preference shareholders to participate in profits after a specified fixed dividend contracted for is paid. Participation right is linked with the quantum of dividend paid on the equity shares over and above a particular specified level.

Security Receipts: Security receipt means a receipt or other security, issued by a securitisation company or reconstruction company to any qualified institutional buyer pursuant to a scheme, evidencing the purchase or acquisition by the holder thereof, of an undivided right, title or interest in the financial asset involved in securitisation. Government securities (G-Secs): These are sovereign (credit risk-free) coupon bearing instruments which are issued by the Reserve Bank of India on behalf of Government of India, in lieu of the Central Government's market borrowing programme. These securities have a fixed coupon that is paid on specific dates on halfyearly basis. These securities are available in wide range of

maturity dates, from short dated (less than one year) to long dated (upto twenty years). Debentures: Bonds issued by a company bearing a fixed rate of interest usually payable half yearly on specific dates and principal amount repayable on particular date on redemption of the debentures. Debentures are normally secured/ charged against the asset of the company in favour of debenture holder. Bond: A negotiable certificate evidencing indebtedness. It is normally unsecured. A debt security is generally issued by a company, municipality or government agency. A bond investor lends money to the issuer and in exchange, the issuer promises to repay the loan amount on a specified maturity date. The issuer usually pays the bond holder periodic interest payments over the life of the loan. The various types of Bonds are as follows-

Convertible Bond: A bond giving the investor the option to convert the bond into equity at a fixed conversion price.

Commercial Paper: A short term promise to repay a fixed amount that is placed on the market either directly or through a specialized intermediary. It is usually issued by companies with a high credit standing in the form of a promissory note redeemable at par to the holder on maturity and therefore, doesnt require any guarantee. Commercial paper is a money market instrument issued normally for a tenure of 90 days.

Treasury Bills: Short-term (up to 91 days) bearer discount security issued by the Government as a means of financing its cash requirements.

REASONS FOR SELECTION OF THE TOPIC


The main reason for selection of this topic is to get a better focus on the market that deals with long term capital so that we can know what exactly happens when securities are sold for the first time. The other reasons are as follows.. 1. It is a market for used goods. Here one investor can buy a security from other investors instead of the issuer. All the securities are first created in the primary market and then, they enter into the secondary market. In the New York Stock Exchange, all the stocks belong to the secondary market 2.Secondary Market is the market where, unlike the primary market, an investor can buy a security directly from another investor in lieu of the issuer. It is also referred as "after market". The securities initially are issued in the primary market, then they enter into the secondary market 3. In other words, secondary market is a place where any type of used goods are available. In the secondary market shares are maneuvered from one investor to other, that is, one investor buys an asset from another investor instead of an issuing corporation. So, the secondary market should be liquid.

CHAPTER-2 ORGANIZATION PROFILE

ABOUT THE COMPANY

ShareKhan Limited, a flagship broking firm in the share market, is structured into strategic businesses Equities, Share, Commodities and Mutual funds are in this firm. The head office of Share Khan is in the Mumbai, this is one of the branches in the Pune. This is only Share and Equity broking firm in India. This is not only Share but bulk of the commodities, Mutual funds. Share khan give more information how to invest in the share market, which types more earn money in the through the share market. Established in 1958, ShareKhan commissioned its shares and equities at Satara Road, Pune in 1962 and has today grown to become the countrys largest integrated share transfer and ranks among the top quartile of low broking intraday and delivery charges in the world. With a strategic intent to achieve vertical integration in the share business, Share Khan acquired two captive markets in Nifty, BSE and NSE Sharekhan Limited offers online security broking and portfolio services to institutions and large corporate houses as well as individual investors. Sharekhan Limited was formerly known as SSKI Investor Services Private Limited. The company is based in Mumbai, India.

SCOPE OF PRODUCTS & SERVICE:


Sharekhan Services Sharekhan, one of India's leading brokerage houses, is the retail arm of SSKI. With over 510 share shops in 170 cities, and India's

premier online trading portal www.sharekhan.com, our customers enjoy multi-channel access to the stock markets

Demat Account

Demat refers to a dematerialised account. Though the company is under obligation to offer the securities in both physical and demat mode, you have the choice to receive the securities in either mode.

If you wish to have securities in demat mode, you need to indicate the name of the depository and also of the depository participant with whom you have depository account in your application. It is, however desirable that you hold securities in demat form as physical securities carry the risk of being fake, forged or stolen. Just as you have to open an account with a bank if you want to save your money, make cheque payments etc, Nowadays, you need to open a demat account if you want to buy or sell stocks. So it is just like a bank account where actual money is replaced by shares. You have to approach the DPs (remember, they are like bank branches), to open your demat account. Let's say your portfolio of shares looks like this: 150 of Infosys, 50 of Wipro, 200 of HLL and 100 of ACC. All these will show in your demat account. So you don't have to possess any physical certificates showing that you own these shares. They are all held electronically in your account. As you buy and sell the shares, they are adjusted in your account. Just like a bank passbook or statement, the DP will provide you with periodic statements of holdings and transactions. Nowadays, practically all trades have to be settled in dematerialised form. Although the market regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of upto 500 shares to be settled in physical form, nobody wants physical shares any more. So a demat account is a must for trading and investing. Most banks are also DP participants, as are many brokers. You can choose your very own DP. To get a list, visit the NSDL and CDSL websites and see who the registered DPs are. A broker is separate from a DP. A broker is a member of the stock exchange, who buys and sells shares on his behalf and on behalf of his clients. A DP will just give you an account to hold those shares. You do not have to take the same DP that your broker takes. You can choose your own.

ONLINE STOCK TRADING Online Stock Trading is a recent way of buying and selling stocks. Now you can buy and sell any stock over the Internet for a low price and you dont need to call up a broker You can buy any stock and sell any stock and it doesnt take much to get started.

1) Type of demat accounts


Classic Account

Allow investor to buy and sell stocks online along with the following features like multiple watch lists, Integrated Banking, demat and digital contracts, Real-time portfolio tracking with price alerts and Instant credit & transfer. a. Online trading account for investing in Equities and Derivatives b. Free trading through Phone (Dial-n-Trade) I. II. III. IV. V. Two dedicated numbers for placing your orders with your cell phone or landline. Automatic funds transfer with phone banking (for Citibank and HDFC bank customers) Simple and Secure Interactive Voice Response based system for authentication Get the trusted, professional advice of our tele brokers After hours order placement facility between 8.00 am and 9.30 am

c. Integration of: Online trading + Bank + Demat account d. Instant cash transfer facility against purchase & sale of shares e. IPO investments f. Instant order and trade confirmations by e-mail g. Single screen interface for cash and derivatives

ShareKhan Speed Trade Account

These accounts for active traders who trade frequently during the day trading session. Following are few popular features of Speed Trade account, a. Single screen interface for cash and derivatives b. Real-time streaming quotes with Instant order Execution & Confirmation c. Hot keys similar to a traditional broker terminal d. Alerts and reminders
e. Back-up facility to place trades on Direct Phone lines.

Brokerage:
Some stock trading companies charge direct percentage while others charge a fixed amount per Rs 100. Sharekhan charges 0.5% for inter day shares and 0.1% for intra day or you could say Sharekhan charges 50 paise per Rs 100.

What is the maximum brokerage that a broker/sub broker can charge?


The maximum brokerage that can be charged by a broker has been specified in the Stock Exchange Regulations and hence, it may differ from across various exchanges. As per the BSE & NSE Bye Laws, a broker cannot charge more than 2.5% brokerage from his clients. This maximum brokerage is inclusive of the brokerage charged by the subbroker. Further, SEBI (Stock brokers and Sub brokers) Regulations, 1992 stipulates that sub broker cannot charge from his clients, a commission which is more than 1.5% of the value mentioned in the respective purchase or sale note

How to open account with Sharekhan?


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

Call them at phone number provided below and ask that you want to open an account with them. Call on Toll free number: 1-800-22-7500 to speak to a Customer Service executive. If you are in Mumbai call on 02266621111

Visit one of their branches. Sharekhan has a huge network all over India. Click on http://sharekhan.com/Locateus.aspx this link to find out your nearest branch. Just select the place near you and you'll find a manager to assist you there.

You can send them an Email on info@sharekhan.com to know about their products and services.

Advantages of Sharekhan:
1. Online trading is very user friendly and one doesn't need any software to access. 2. They provides good quality of services like daily SMS alerts, mail alerts, stock recommendations etc. Sharekhan has ability to transfer funds from most banks. Unlike ICICI Direct, HDFC Sec, etc., so investor not really needs to open an account with a particular bank as it can establish link with most modern banks.

Essential Documents

Account Details

Your Client ID, Depository ID and other details are on this document. Please keept it safely, as these are permanent details that won't be changed and you might have to quote them while speaking to our customer service representatives To be able to log in to your account online, you need your passwords that will give you access. These are

1) MembershipPassword 2) TradingPassword 3) PhoneID 4) TPIN

Client Registration form

The brokers have to maintain a database of their clients, for which you have to fill client registration form. In case of individual client registration, you have to broadly provide following information. Your name, date of birth, photograph, address, educational qualifications, occupation, residential status(Resident Indian/ NRI/others) Unique Identification Number (wherever applicable) Bank and depository account details Income tax No. (PAN/GIR) which also serves as unique client code. If you are registered with any other broker, then the name of broker and concerned Stock exchange and Client Code Number. Proof of identity submitted either as MAPIN UID Card/Pan No./Passport/Voter ID/Driving license/Photo Identity card issued by Employer registered under MAPIN

For proof of address (any one of the following): Passport Voter ID Driving license Bank Passbook Rent Agreement Ration Card Flat Maintenance Bill Telephone Bill

Electricity Bill Certificate issued by employer registered under MAPIN

There are basically two ways in which you can invest in shares: Purchase shares from The primary market (I.e. IPO's) Trade in the Secondary Market, i.e Stock exchanges

Head office & branches


1) Phoenix House marg Lower parel Mumbai-400013 : second floor , senapati bapat

2)Rajendra Place : 3)Nehru Place

ground floor shop no. 61 rajendra bhawan, rajendra place, NEW Shop No. - GF- 3/4/5, Goverdhan DELHI 110008. Bldg, number Nehru Contact 53-54, - 011-30582610 Place, NewContact 30887249 Delhinumber : 110019. 011-30887248/

4) Kalkaji

E-5, Mainm Market, OPP Andhra Bank, Kalkaji, New Delhi, Delhi

Pin-Code: ContactNo.011-32020028/27 Contact 3020027 No.: 011-

110019. 32020028/

6)Malviya Nagar

Ground

Floor,

C-7,

Malviya

Nagar,

Adjoining Hotel Swagat, South Zone, Newdelhi-110017,Delhi. Contact Number : 011-39142867/39142872 7)Nariana Ground Floor, E -46, Naraina Vihar, New Delhi, Delhi. Pin-Code : 110028 8)Shakti Nagar Sharekhan. Ltd, Gf-27/2, Shakti Nagar, Nangia Park, Delhi. Pin-Code: 110007. 9)Rajouri Garden Ground Floor, J-13/41, opp- ICICI BANK, Rajouri 110027. 10) Rohini Ground Floor, Shop No-93-94 & 69-70, North Ex- Mall, Sector-9, Rohini, Near Kadambiri Delhi C.G.H.S, Newdelhi-110085, Garden, New Delhi. Pin-Code:

11)Rani Bagh

Sharekhan.Ltd., Lg 1 & 2, Vikas Sno.44, Rani Bagh, New Delhi, Delhi. Pin-Code: 110034.

13)Karol Bagh

Ground Floor, 59/30, Adjoining Karur Vyasya Bank, New Rohtak Road, Karol Bagh, New Delhi. Pin-Code: 110005. Contact number : 011-32518095

14)Shalimar Bagh

Near Reebock Show Room, Shalimar Bagh, New Delhi,.Pin-Code:110088. Contact No.: 011- 32028155

15) Cannaught Place

Ground Floor & Second Floor, Arunachal Bhawan, Barakhambaroad,NewDelhi-110001. Contact number : 011-30485572

16)Paschim Vihar

Sharekhan.ltd., B-1/18-B, Paschim Vihar, Opp.Reliance Web World, New Delhi, Delhi. Pin-Code: 110053. Contact No. : 011-32020026

17)HPT College Road

So- Fine Color Lab, Varadmurti Building, Opp. Takle Jewelers,Hptcollegeroad,Nasik-422005,Maharashtra. Contact Number : 0253-3918123/ 3918115

18)Wanowarie

Sharekhan. Ltd, Shop No G-23, Ground Floor, Sacred World Complex Wanowarie, Pune, Maharashtra.Pin-Code: Contact Number : 020-30483143/44 411040.

19)Bhandarkar Road

Sharekhan Ltd, Amar Building, Ground Floor, Opp. Lord Shrikrishna Bank, Bhandarkar Road, Pune-411004, Maharashtra. Contact Number : 020-66207534 / 7535

Quality policy & objective

We have a dedicated and highly trained team of dealers at our Dial & Trade Desk to execute orders in all the three markets, i.e., equity, commodities and offshore investments. Our dealers are available to accept orders till the respective markets are open. Online trading is very user friendly and one doesn't need any software to access. They provides good quality of services like daily SMS alerts, mail alerts, stock recommendations etc. Sharekhan has ability to transfer funds from most banks. Unlike ICICI Direct, HDFC Sec, etc., so investor not really needs to open an account with a particular bank as it can establish link with most modern banks.

ABOUT SHARE MARKET


Investment in Share Markets are possible either through Stock Exchanges, or Over-the-Counter. Stock Exchanges are organized market places where stocks, bonds and other equivalents are traded between the buyers and sellers in an organized market and the contracts are standardized ones. But in case of Over-the-Counter (OTC), the trade takes place through a network of dealers. Generally, the OTC contracts are bilateral customized contracts unlike the standardized ones.

There are two channels through which investment can be done in the share market, one is Primary Market and the other is Secondary Market. Primary Market deals with securities that are channelized through the Initial Public Offer (IPO) route. In the Secondary Market, investors trade the securities among themselves for the quest of profit.

HOW STOCK MARKET WORKS


In order to understand what stocks are and how stock markets work, we need to dive into history--specifically, the history of what has come to be known as the corporation, or sometimes the limited liability company (LLC). Corporations in one form or another have been around ever since one guy convinced a few others to pool their resources for mutual benefit. The first corporate charters were created in Britain as early as the sixteenth century, but these were generally what we might think of today as a public corporation owned by the government, like the postal service. Privately owned corporations came into being gradually during the early 19th century in the United States , United Kingdom and western Europe as the governments of those countries started allowing anyone to create corporations. In order for a corporation to do business, it needs to get money from somewhere. Typically, one or more people contribute an initial investment to get the company off the ground. These entrepreneurs may commit some of their own money, but if they don't have enough, they will need to persuade other people, such as venture capital investors or banks, to invest in their business. They can do this in two ways: by issuing bonds, which are basically a way of selling debt (or taking out a loan, depending on your perspective), or by issuing stock, that is, shares in the ownership of the company. Long ago stock owners realized that it would be convenient if there were a central place they could go to trade stock with one another, and the public stock exchange was born. Eventually, today's stock markets grew out of these public places.

Stocks

A corporation is generally entitled to create as many shares as it pleases. Each share is a small piece of ownership. The more shares you own, the more of the company you own, and the more control you have over the company's operations. Companies sometimes issue different classes of shares, which have different privileges associated with them. So a corporation creates some shares, and sells them to an investor for an agreed upon price, the corporation now has money. In return, the investor has a degree of ownership in the corporation, and can exercise some control over it. The corporation can continue to issue new shares, as long as it can persuade people to buy them. If the company makes a profit, it may decide to plow the money back into the business or use some of it to pay dividends on the shares. Public Markets How each stock market works is dependent on its internal organization and government regulation. The NYSE (New York Stock Exchange) is a non-profit corporation, while the NASDAQ (National Association of Securities Dealers Automated Quotation) and the TSE (Toronto Stock Exchange) are for-profit businesses, earning money by providing trading services. Most companies that go public have been around for at least a little while. Going public gives the company an opportunity for a potentially huge capital infusion, since millions of investors can now easily purchase shares. It also exposes the corporation to stricter regulatory control by government regulators. When a corporation decides to go public, after filing the necessary paperwork with the government and with the exchange it has chosen,

CHAPTER -3

RESEARCH OBJECTIVE & SCOPE OF RESEARCH PROJECT

Step 1:

Problem Definition

The first step in any research project is to define the problem. In defining the problem, the researcher should take into account the purpose of the study, the relevant background information, what information is needed, and how it will be used in decision making. Problem definition involves discussion with the decision makers, interviews with industry experts, analysis of secondary data, and, perhaps, some qualitative research, such

as focus groups. Once the problem has been precisely defined, the research can be designed and conducted properly. The company would not raise enough or targeted return from their Product even they have well reputation in share broker industry . specifically in demat account they have lag behind very much beside other stock company, company brokerage rate is very high for that company should try new innovative idea to overcome this problem . They charge minimum brokerage of 10 paisa per stock would not let you trade stocks below 20 rs. (If you trade, you will lose majority of your money in brokerage).Lots of hidden rules and charges. They do not provide facility to book limit order trades during after-hours. Classic account holders cannot trade commodities. Cannot purchase mutual funds online. Customer dont know about the company ,so company make efficient marketing for its awareness among customer

Step 2: Development of an Approach to the Problem


Development of an approach to the problem includes formulating an objective or theoretical framework, analytical models, research questions, hypotheses, and identifying characteristics or factors that can influence the research design. This process is guided by discussions with management and industry experts, case studies and simulations, analysis of secondary data, qualitative research and pragmatic considerations. To know of need demat account in present business scenario To know the process of online trading To know documentation demat account To know different product in stock market industry

Step 3: Research Design Formulation


A research design is a framework or blueprint for conducting the research project. It details the procedures necessary for obtaining the required

information, and its purpose is to design a study that will test the hypotheses of interest, determine possible answers to the research questions, and provide the information needed for decision making. Conducting exploratory research, precisely defining the variables, and designing appropriate scales to measure them are also a part of the research design. The issue of how the data should be obtained from the respondents (for example, by conducting a survey or an experiment) must be addressed. It is also necessary to design a questionnaire and a sampling plan to select respondents for the study.

Descriptive research
Descriptive research includes surveys & fact- finding enquiries of different Kinds. The major purpose our research is description of the state of affair as it exists at present. The main characteristics of this method is that the researcher. Has no control over the variables; he can only report what has happened or what is happening. All data related to study are generated through descriptive Research, formulating the research design involves the following steps : 1. Secondary data analysis 2. Qualitative research 3. Methods of collecting quantitative data (survey, observation, and experimentation) 4. Definition of the information needed 5. Measurement and scaling procedures 6. Questionnaire design 7. Sampling process and sample size 8. Plan of data analysis

SAMPLING PLAN

In practice there are two types of sample plan non probability & probability sampling .I used non probability sampling plan .in this type sampling Item for the sample are selected deliberately by researcher, his choice concerning The item remains supreme. In other words ,under non-probability sampling the organizer of the inquiry purposively choose the particular units of the universe For constituting a sample on the basis that the small mass that they so select out Of a huge one will be typical or representative of the whole. For my survey Select pune as universe for finding awareness of demat account among people. We are selected pune for intensive study on above mention topic , judgment of The organizer of the study play an important part in this sampling design.

DATA COLLECTION
Data collection is take place through questionnaire method so far as general form of it is concern; it can either be structure or unstructured questionnaire. Structured questionnaire are those questionnaire in which there are definite, concrete & pre-determine questions. The question are presented with exactly the same wording & in the same order to all respondents. The form the questions may be either closed or open but should be constructed in advanced ,to be successful ,questionnaire should be short & simple that is size of questionnaire should kept to the minimum .question should proceed in logical sequence moving from easy to more difficult question personal & intimate question should left to the end .

Primary data:

we collect primary data during the course of doing

descriptive type, we collect primary data through direct communication with respondent by hand over questionnaire to respondent.

Sample size: we select finite universe, sampling unit is geographical


that is district size of sample is number item to be selected from the universe to constitute sample, our project sample size is100.we done our among that much people.

Research Limitation:the organization and its functions was not possible.

Because of the limited time span for project work, maximum study of

The lack of response of the respondents leads to get insufficient information. Because of unavailability of a data collection instrument we cant collect sufficient information regarding to the project work. It is difficult to guess the income category of respondents to approach them Because of the wrong perception of people towards the share market they dont go through the stock investment

DATA ANALYSIS , INTERPRETATION & PRESENTATION

Firstally we should understand about investment. WHAT EXACTLY ARE INVESTMENTS ? Investing is a method of purchasing assets in order to gain profit in the form of reasonably predictable income (dividends, interest, or rentals) and appreciation over the long term. Judging by the fact that you've taken the trouble to navigate to this page my guess is that you don't need much convincing about the wisdom of investing. However, I hope that your quest for knowledge/information about the art/science of investing ends here. Read on. Knowledge is power. It is common knowledge that money has to be invested wisely. If you are a novice at investing, terms such as stocks, bonds, futures, options, Open interest, yield, P/E ratio may sound Greek and Latin. Relax. It takes years to understand the art of investing. You're not alone in the quest to crack the jargon. To start with, take your investment decisions with as many facts as you can assimilate. But, understand that you can never know everything. Learning to live with the anxiety of the unknown is part of investing. Being enthusiastic about getting started is the first step, though daunting at the first instance. That's why my investment course begins with a dose of encouragement: With enough time and a little discipline, you are all but guaranteed to make the right moves in the market. Patience and the willingness to invest your savings across a portfolio of securities tailored to suit your age and risk profile will propel your revenues and cushion you against any major losses. Investing is not about putting all your money into the "Next big thing," hoping to make a killing. Investing isn't gambling or speculation; it's about taking reasonable risks to reap steady rewards. Why should you invest? Simply put, you should invest so that your money grows and shields you against rising inflation. The rate of return on investments should be greater than the rate of inflation, leaving you with a nice surplus over a period of time. Whether your money is invested in stocks, bonds, mutual funds or certificates of deposit (CD), the end result is to create wealth for retirement, marriage, college fees, vacations, better standard of living or to just pass on the money to the next generation or maybe have some fun in your life and do things you had always dreamed of doing with a little

extra cash in your pocket. Also, it's exciting to review your investment returns and to see how they are accumulating at a faster rate than your salary. When to Invest? The sooner the better. By investing into the market right away you allow your investments more time to grow, whereby the concept of compounding interest swells your income by accumulating your earnings and dividends. Considering the unpredictability of the markets, research and history indicates these three golden rules for all investors 1. Invest early 2. Invest regularly 3. Invest for long term and not short term

While its tempting to wait for the best time to invest, especially in a rising market, remember that the risk of waiting may be much greater than the potential rewards of participating. Trust in the power of compounding. Compounding is growth via reinvestment of returns earned on your savings. Compounding has a snowballing effect because you earn income not only on the original investment but also on the reinvestment of dividend/interest accumulated over the years. The power of compounding is one of the most compelling reasons for investing as soon as possible. The earlier you start investing and continue to do so consistently the more money you will make. The longer you leave your money invested and the higher the interest rates, the faster your money will grow. That's why stocks are the best long-term investment tool. The general upward momentum of the economy mitigates the stock market volatility and the risk of losses. Thats the reasoning behind investing for long term rather than short term. How much to invest? There is no statutory amount that an investor needs to invest in order to generate adequate returns from his savings. The amount that you invest will eventually depend on factors such as:

1 Your risk profile made

2. Your Time horizon

3. Savings

Remember that no amount is too small to make a beginning. Whatever amount of money you can spare to begin with is good enough. You can keep increasing the amount you invest over a period of time as you keep growing in confidence and understanding of the investment options available and So instead of just dreaming about those wads of money do something concrete about it and start investing soon as you can with whatever amount of money you can spare.

1)Investment through secondry market by people


In the secondary market, securities are sold by and transferred from one investor or speculator to another. It is therefore important that the secondary market be highly liquid (originally, the only way to create this liquidity was for investors and speculators to meet at a fixed place regularly; this is how stock exchanges originated, In finance, the private equity secondary market (also often called private equity secondaries or secondaries) refers to the buying and selling of preexisting investor commitments to private equity and other alternative investment funds. Sellers of private equity investments sell not only the investments in the fund but also their remaining unfunded commitments to the funds. By its nature, the private equity asset class is illiquid, intended to be a long-term investment for buy-and-hold investors. For the vast majority of private equity investments, there is no listed public market; however there is a robust and maturing secondary market available for sellers of private equity assets. Collection of data takes place through questionnaires. This data after collection has to be processed & analyzed in accordance with the outline laid down for the Purpose at the time of developing the research plan before put data for analysis. Its processing has to be done through editing ,coding, classification & tabulation of collected data so that they are amenable to analysis. I completed my survey among 100 people regarding to Investment through secondry market by people of different income category this data has been transfer into

tabulated, Graph format .this data show that people who are come under 0-5000 income Category are more in percentage in term of unawareness then people who are In 5000-20000 income category hold second position , income category20000-40000 & 40000<contain people who are more aware about demat Account & its operation. The only reason behind that the people which are from 40000< income category are educated & from high society.

40%

60%

60% = people who invest there money through secondry market. 40% = people who invest there money through primary market.

How many punites know about share trading?

40%

60%

60% =. dont know about share trading 40% = know about share trading

From the data it is clear that ignorance of punites about share market is more which is 60% that means that % market is block for stock industry.

Do you satisfy with share khan online service?

satisfaction

45% yes no

55%

It is clear that more customers are satisfied with sharekhan online Service Company has to add more innovative idea for 100% satisfaction.

Have u invested money in share market 75% = no 25% = yes From above data we can know that there is a large amount of people who have not invested in share market.

FINDING:

1. From above data analysis we can find out that most of the low income population is unaware of the demat account.

2. While doing survey most of the population come under low income likes to know about the working of share market & how to invest money and trade.

3. There are lots of hidden charges because of this most of the people keep away themselves from share market & as well as they think it as gambling.

4. All share trading companies should go for the public awareness campaign in the public.

CONCLUSIONS & SUGGESTION

CONCLUSION:
On the basis of collected its come to know that people have more invested in sharemarket through SECONDRY MARKET. Awareness of demat Account among customer is more which are from higher income Category & awareness is low in lower income category people the main reason behind that there wrong thinking about share market & they dont have enough fund for investment.some people even they have demat account ,they dont have knowledge about there operation..

SUGGESTION:

Stock company has to organized Demat account awareness program .

They should motivate to lower income people for investing the money into Stock market. They have to motivate their sale force because they play very important role to convincing the customer. They have to cut down brokerage rate for entire customer.

ANNEXURE
QUESTIONNAIRE DESIGN

A) PERSONAL DETAILS NAME : AGE :

ADDRESS : Ph.no, MOBILE NO: EMAIL ID: OCCUPATION:

B)

WHAT IS YOUR ANNUAL INCOME? Less than Rs. 100000 Rs.100000-250000 Rs.250000-500000 Above Rs.500000

C)

DO YOU BELIVE IN INVESTING SHARE MARKET? 1) YES 2) NO

D)

DO YOU KNOW ABOUT DEMAT ACCOUNT? 1) YES 2) NO

E)

DO YOU HAVE DEMAT ACCOUNT? 1) YES 2) NO

F) IF YES, IN WHICH COMPANY DO YOU HAVE DEMAT ACCOUNT? 1) SHAREKHAN.LTD 3) INDIA INFOLINE 2) RELIANCE MONEY 4) ANY OTHER

G) IF NO, WOULD YOU LIKE TO INTERSTED IN OPEN DEMAT ACCOUNT? 1) YES 2) NO

H) WHAT DO YOU THINK ABOUT SHAREKHAN DEMAT ACCOUNT SERVICE? 1) GOOD 3) AVERAGE 2) EXCELANT 4) WORST

BIBLIOGRAPHY
1 .Text book of research methodology by C.R.KOTHARI.

2 .www.sharekhan.com

3. www.Google.com

4. www.sharemarketbasic.com