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A PROJECT REPORT ON “BRAND AWARENESS AND COMPARISON OF INDIABULLS AND PEER GROUP IN PUNE REGION” BY KOMAL SHARMA Roll

No.: 520856394 SUBMITTED TO SIKKIM MANIPAL UNIVERSITY 2008- 10 UNDER THE GUIDANCE OF PROF. VIJAY RAO

Indiabulls Securities Ltd.

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DECLARATION

I, the undersigned, hereby declare that the Project Report entitled “Brand awareness and comparison of Indiabulls and peer group in Pune region” written and submitted by me to the Sikkim Manipal University in partial fulfillment of the requirements for the award of degree of PGP under the guidance of Prof. Vijay Rao, is my original work and the conclusions drawn therein are based on the material collected by myself.

Place: Pune Sharma) Date:

(Komal

Indiabulls Securities Ltd.

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ACKNOWLEDGEMENTS
With due respect and deep gratitude, I would like to express my sincere thanks to Mr. Deepak Singh and Mr. Sharad Mapari for giving me an opportunity to work with Indiabulls Securities Ltd.

I would also like to thank all the Relationship Managers for their invaluable support, guidance and rendering all possible help at every juncture of the study. It was an honor to be under their guidance.

I also take the opportunity to express my profound gratitude and thanks to my project guide, Prof. Vijay Rao for their timely support.

Last, but not the least, I would also like to thank all the staff members and all my classmates for their valuable suggestions and support.

Signature

(Komal Sharma)

CONTENTS
Indiabulls Securities Ltd. Page 56

5. 6. 12. 8. 5-7 8-24 25-30 31-36 37-38 39-42 43-52 53-54 55-56 57-58 59-60 61-64 Indiabulls Securities Ltd. 2. 1. 4. 13. Particulars Executive Summary Industry Profile Company Profile Introduction Objectives & Scope Research Methodology Data Analysis Conclusions Limitations Recommendations and Observations Bibliography and References Annexure Page No. 7. 9. No. Page 56 . 10.Sr. 3.

and other fungible items of value at low transaction costs and at prices that reflect the efficient market hypothesis.EXECUTIVE SUMMARY In economics. Page 56 . Both general markets (where many commodities are traded) and specialized markets (where only one commodity is traded) exist. Financial markets have evolved significantly over several hundred years and are undergoing constant innovation to improve liquidity. a financial market is a mechanism that allows people to easily buy and sell (trade) financial securities (such as stocks and bonds). commodities ( such as precious metals or agricultural goods). Markets Indiabulls Securities Ltd.

investor are directly participating in the equities with considerable proportion of their savings. The small investors or who seldom trade and often would like to hold the stocks for very long period are unwilling to go online. retail investors have two options with them viz. people were investing only in FDs.market economy such as a gift economy. less than a decade ago. the lender will expect some compensation in the form of interest or dividends. People have no doubt in their mind that the introduction of online trading is going to bring a great change in the security market. People have highly voted for transparency feature of online trading. International trade (in the currency markets) Typically a borrower issues a receipt to the lender promising to pay back the capital. thus making it easier for them to find each other. through online share trading or through brokers.work by placing many interested buyers and sellers in one “place”.. To invest in equities. The transfer of risk (in the derivatives markets). Financial markets facilitate• • • The raising of capital (in the capital markets).trading companies is the barrier for the small investors. An economy which relies primarily on interactions between buyers and sellers to allocate resources is known as a market economy in contrast either to a command economy or to a non. People who often trade in the securities market are very much keen to go for online trading. Since retail investors are directly participating in to equities. Minimum charges or an annual levied by e. The most aggressive foray for such an investor would have been either a small holding in equity funds or a small investment in direct equities which he would have acquired more by a default rather than a design. Earlier. post office savings and assured return scheme of banks. Page 56 . Today the time has change. development of market in national and international level Indian companies are growing worldwide and make a good profit so people also trusted on such companies and interested in investing them. These receipts are securities which may be freely bought or sold. In return for lending money to the borrower. Also due to industrialization. That’s why BSE and NSE are gaining a lot. There is still one class of people who still depend on their broker due to unawareness of stock market and the brokers are also providing services on Indiabulls Securities Ltd. brokers and online service provider have also got a lot of business.

competitive charges and achieve customer satisfaction. This is the class of the people, which is comparatively less educated and consist of small traders and old generation people. India bulls has emerged as one of the leading and fastest growing financial company, serves the financial needs of more than 3,00,000 customers with its wide range of financial services and products from securities, derivatives trading, depository services, research and advisory services. In this project, the existing customers of India bulls Securities who were inactive from many days were contacted and were asked about their problems why they were not trading and whether they were interested at that time, if their previous problems were solved. To find out the interest of the people in equity market and compare the brand image of Indiabulls with its competitors. This helped to make some the inactive clients as active. The analysis of data which was collected helped to get the prospective clients and also to find out some suggestions which are helpful to company to raise its business and to be ahead of its competitors.

Indiabulls Securities Ltd.

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INDUSTRY PROFILE

Indiabulls Securities Ltd.

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INDIAN EQUITY MARKET

INDIAN EQUITY MARKET

Indiabulls Securities Ltd.

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These reforms have led to the development of the Indian equity markets to the standards Indiabulls Securities Ltd. the world markets saw one of the largest ever bull markets of more than ten years. prominent being the capital market reforms. the value of securities in a margin account minus what has been borrowed from the brokerage. Equity markets. For example. equities also hold the potential to be a very risky asset class and expose the portfolio to high levels of volatility. In the context of margin trading. whereas bonds are classified as debt because they represent an obligation to pay and not ownership of assets. The ability of equities to deliver over longer time frames and even outperform other investment avenues like gold. Stock or any other security representing an ownership interest. 3. However. Equity is a term whose meaning depends very much on the context.Equity is: 1. grew at a great speed in the decade of the nineties. This is the primary reason why any fund manager worth his salt always recommends a sufficiently long (at least 3 years) time frame for an equity-oriented investment. the world over. After the bear markets of the late eighties. Stocks are equity because they represent ownership of a company. In general. Page 56 . property and bonds is an often chronicled fact. the amount of the funds contributed by the owners (the stockholders) plus the retained earnings (or losses). a car or house with no outstanding debt is considered the owner's equity since he or she can readily sell the items for cash. On the balance sheet. when the investor is typically closer to retirement (shorter investment horizon) and has a lower risk appetite as well. Similarly financial planners advocate classification of the equity holdings with advancement in the investor’s age. 2. also referred to as "shareholder's equity". The opening up of Indian economy in the 1990's led to a series of financial sector reforms. one can think of equity as ownership in any asset after all debts associated with that asset are paid off. over shorter time frames.

realizing the advantages of resource allocation through market. It may not be an exaggeration to say that the Indian markets are resourceful to put themselves on par with the markets of the developed countries. Page 56 . increase market efficiency and to make it attractive for the retail investors to take part in the equity market. Rightly. All this started with the abolition of Controller of Capital Issues and subsequent free pricing of shares. many a developments that took long time in the developed markets. The Indian markets have assimilated in a relatively lesser time. The importance of equity market is increasing. Series of steps are being taken to remove hurdles. Government of India and Reserve Bank of India have been pushing reforms in equity markets.of the major global equity markets. Indiabulls Securities Ltd.

Page 56 . Securities and Exchanges Board of India (SEBI) has been setup in MUMBAI by the Government to oversee the orderly development of stock exchanges in the country. All companies wishing to raise capital from the public are required to list their securities on at least one stock exchange thus. all ordinary shares. formed for the express purpose of regulating and facilitating the buying and selling of securities by the public and institutions at large. 1956). Stock exchanges also facilitate trading in the securities of the public sector companies as well as government securities. preferences shares and debentures of publicity held companies are listed in one are more stock exchanges. A stock exchange in India operates with the recognition from the government under the securities and contracts (Regulation Act.TWIN TOWERS OF EQUITY MARKET (BSE & NSE) Traditionally. The member brokers are essentially the middlemen. In India the main exchanges are the BSE and the NSE. There are at present 26 stock exchanges in India. Indiabulls Securities Ltd. who transact in securities on behalf of the public for a communism or on their behalf. which contribute to more than 90% of the trade in the capital market. a stock exchange has been an association of individual members called brokers. These two exchanges are the movers and shakers of the equity market in India.

which was established in 1875 as “The Native Share and Stockbrokers Association” (a voluntary non-profit making association). Bombay Stock Exchange Limited (BSE) which was founded with six brokers has now grown into a giant institution with over 874 registered Broker-Members spread over 380 cities across the country.BOMBAY STOCK EXCHANGE (BSE) The Stock Exchange. It may be noted that the Stock Exchange is the oldest one in Asia. Today. BSE's Wide Area Network (WAN) connecting over 8000 BSE Online Trading (BOLT) System Trader Work Stations (TWS) is one of the largest of its kind in the country. Bombay Stock Exchange Limited (BSE) has set up a unique Member Services and Development to attend to the problems of the Broker-Members. Indiabulls Securities Ltd. has evolved over the years into it present status as the premier Stock Exchange in the country. Mumbai. Page 56 . With a view to provide efficient and integrated services to the investing public through the members and their associates in the operations pertaining to the Exchange.

clearing and settlement mechanism.. screen based trading. The market today uses slate – of – art information technology to provide an efficient and transparent trading. professionalization of trading members. Indiabulls Securities Ltd.NATIONAL STOCK EXCHANGE (NSE) The National Stock Exchange (NSE) is India’s leading stock exchange covering various cities and town across the country. market of debt and derivative instruments and intensive use of information technology. It has set up facilities that serve as a model for the securities industry in terms of systems. 1994 and within a short span of 1 year became the largest exchange in India in terms of volumes transacted. NSE has played a catalytic role in reforming the Indian securities market in terms of micro structure. fine – turned risk management systems. market practices and trading volumes. speed and efficiency. dematerialization of stock exchange governance. compression of settlement cycles. dematerialization and electronic transfer of securities. securities lending and borrowing. NSE was set up by leading institutions to provide a modern. Page 56 . NSE started trading in the equities segment (Capital Market segment) on November 3. safety and market integrity. fully automated screen – based trading system with national reach. practices and procedures. and has witnessed several innovations in products and services viz. emergence of clearing corporations to assume counter party risks. The exchange has brought about unparalleled transparency.

promoted by NSE Best IT Usage award by Computer Society of India Commencement of trading/settlement in dematerialized securities Dataquest award for top IT User Indiabulls Securities Ltd.3. During the year 2007-08.17 crores during 1994-95 to Rs. the first Clearing Corporation Introduction of centralized insurance cover for all trading members July 1995 October 1995 April 1996 April 1996 June 1996 November 1996 November 1996 December 1996 December Establishment of Investor Protection Fund Became largest stock exchange in the country Commencement of clearing and settlement by NSCCL Launch of S&P CNX Nifty Establishment of settlement Guarantee Fund Setting up of National Securities Depository Limited.14. Page 56 .038 crores in the equities segment. NSE reported a turnover of Rs. 551. 148 crores during FY 2007-08. co.Trading volumes in the equity segment have grown rapidly with average daily turnover increasing from Rs. November 1992 April 1993 May 1993 June 1994 November 1994 March 1995 April 1995 June 1995 Incorporation Recognition as a stock exchange Formulation of business plan Wholesale Debt Market segment goes live Capital Market (Equities) segment goes live Establishment of Investor Grievance Cell Establishment of NSCCL. first depository in India.

IT Launch of NSE Research Initiative February 2000 Commencement of Internet Trading June 2000 September 2000 November 2000 December 2000 June 2001 July 2001 Commencement of trading in Index Options Commencement of trading in Options on Individual Securities November 2001 December Commencement of trading in Futures on Individual Securities Launch of NSE VaR for Government Securities Indiabulls Securities Ltd.IT Ltd.co.in Launch of NSE’s Certification Programme in Financial Market August 1998 CYBER CORPORATE OF THE YEAR 1998 award Best IT Usage award by Computer Society of India Launch of CNX Nifty Junior February 1999 Launch of Automated Lending And Borrowing Mechanism April 1999 October 1999 January 2000 CHIP Web Award by CHIP magazine Setting up of NSE. Commencement of Derivatives Trading (Index Futures) Launch of ‘Zero Coupon Yield Curve’ Launch of Broker Plaza by Dotex International. a joint venture between NSE. and i. Commencement of WAP trading Page 56 .flex Solutions Ltd.nse.1996 December 1996 February 1997 Regional clearing facility goes live November 1997 May 1998 Promotion of joint venture. India Index Services & Products Limited (IISL) May 1998 July 1998 Launch of NSE’s Web-site:www.

Page 56 . CRISIL announce launch of IndiaBondWatch.Infosys Business Transformation Award in the Organization. New Delhi June 2005 December 2006 January 2007 March 2007 Launch of Futures & Options in BANK Nifty Index ‘Derivative Exchange of the Year’.wide Transformation category October 2002 January 2003 June 2003 August 2003 June 2004 August 2004 Launch of NSE Government Securities Index Commencement of trading in Retail Debt Market Launch of Interest Rate Futures Launch of Futures & Options in CNXIT Index Launch of STP Interoperability Launch of NSE’s electronic interface for listed companies March 2005 ‘India Innovation Award’ by EMPI Business School.CNBC TV 18 media centre NSE.2001 January 2002 May 2002 Launch of Exchange Traded Funds (ETFs) NSE wins the Wharton. by Asia Risk magazine Launch of NSE.com June 2007 October 2007 January 2008 NSE launches derivatives on Nifty Junior & CNX 100 NSE launches derivatives on Nifty Midcap 50 Introduction of Mini Nifty derivative contracts on 1st January 2008 March 2008 Introduction of long term option contracts on S&P CNX Nifty Index April 2008 April 2008 Launch of India VIX Launch of Securities Lending & Borrowing Scheme Indiabulls Securities Ltd.

wherein the level of the index reflects the total market value of all the stocks in the index relative to a particular base period. IISL is India's first specialized company focused upon the index as a core product. etc without affecting the index value. which marks the completion of one year of Indiabulls Securities Ltd. index based derivatives and index funds.15% of the traded value of all stocks on the NSE Nifty stocks represent about 59. Impact cost of the S&P CNX Nifty for a portfolio size of Rs. The method also takes into account constituent changes in the index and importantly corporate actions such as stock splits. Page 56 . 1995.S&P CNX NIFTY INDEX S&P CNX Nifty is a well diversified 50 stock index accounting for 21 sectors of the economy. 2008. • The traded value for the last six months of all Nifty stocks is approximately 48. (IISL). which is a joint venture between NSE and CRISIL. who world leaders are in index services. It is used for a variety of purposes such as benchmarking fund portfolios. IISL has Marketing and licensing agreement with Standard & Poor’s (S&P).32% of the total market capitalization as on June 30. S&P CNX Nifty is owned and managed by India Index Services and Products Ltd. The base period selected for S&P CNX Nifty index is the close of prices on November 3.2 crore is 0.14% S&P CNX Nifty is professionally maintained and is ideal for derivatives trading • • • S&P CNX Nifty is computed using market capitalization weighted method. rights.

It aimed at creating a proper and conducive environment required for the raising money from the capital market through rules. It also aimed at endeavoring to restore and safeguard the trust of the investors. Indiabulls Securities Ltd. It has developed a proper infrastructure for facilitating automatic expansion and growth of business of brokers. S. particularly the interest of small investors. It was given a legal status under the ordinance of 1992. customs and relations among institutions. trade practices.2. 1988 on the basis of the recommendations of the high-powered committee on the Stock Exchange Reforms headed by G. mutual funds and merchant bankers. Patel. It was entrusted with a wide range of responsibilities in regulating the activities of almost all the players in the capital market.06 trillion. The base value of the index has been set at 1000 and a base capital of Rs. SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI) Government of India set up the Securities and Exchange Board of India (SEBI) on April 12. jobbers. brokers. investors and companies. Page 56 .operations of NSE's Capital Market Segment. regulation.

the director and the management of the affairs of SEBI vests in a Board of Members.The Central Government has constituted a Board by the name of SEBI under Section 3 of SEBI Act. integrity and standing who have shown capacity in dealing with problems relating to securities market or have special knowledge or experience of law. SEBI consists of the following members. The current chairman of SEBI is Mrs. economics. namely: A Chairman. which exercises all powers and do all acts and things which may be exercised or done by SEBI. From the five members. Page 56 . at least three shall be whole time members to be appointed by the Central Government. shall be useful to SEBI. SEBI may establish offices at other places in India. accountancy. The general superintendence. administration or in any other discipline which.Damodaran Indiabulls Securities Ltd. finance. 1956. The Chairman and the other members are from amongst the persons of ability. The head office of SEBI is in Mumbai. in the opinion of the Central Government. One member from amongst the officials of the Reserve Bank of India. Two members from amongst the officials of the Ministries of the Central Government dealing with Finance and administration of Companies Act.

specify in this behalf. by notification. portfolio managers. (b) Registering and regulating the working of stock brokers. credit rating agencies and such other intermediaries as SEBI may. participants. registrars to an issue. as it thinks fit. bankers to an issue.FUNCTIONS OF SEBI SEBI has been obligated to protect the interests of the investors in securities and to promote and development of. custodians of securities. underwriters. Page 56 . trustees of trust deeds. Indiabulls Securities Ltd. sub-brokers. foreign institutional investors. share transfer agents. (f) Prohibiting fraudulent and unfair trade practices relating to securities markets. investment advisers and such other intermediaries who may be associated with securities markets in any manner. The measures referred to therein may provide for: (a) Regulating the business in stock exchanges and any other securities markets. merchant bankers. (c) Registering and regulating the working of the depositories. (d) Registering and regulating the working of venture capital funds and collective investment schemes including mutual funds. and to regulate the securities market by such measures. (e) Promoting and regulating self-regulatory organizations.

(l) Performing such functions and exercising according to Securities Contracts (Regulation) Act. (n) Conducting research for the above purposes. as may be specified by SEBI. 1956. (j) Calling for information from. intermediaries and self-regulatory organizations in the securities market. as may be delegated to it by the Central Government. conducting inquiries and audits of the stock exchanges. undertaking inspection. (o) Calling from or furnishing to any such agencies. (h) Prohibiting insider trading in securities. other persons associated with the securities market.(g) Promoting investors' education and training of intermediaries of securities markets. (m) Levying fees or other charges for carrying out the purpose of this section. (i) Regulating substantial acquisition of shares and take-over of companies. State or Provincial Act in respect of any transaction in securities which is under investigation or inquiry by the Board. Page 56 . such information as may be considered necessary by it for the efficient discharge of its functions. Indiabulls Securities Ltd. mutual funds. (k) Calling for information and record from any bank or any other authority or board or corporation established or constituted by or under any Central.

It may vary from the 0. the brokerage charge is different for different type of transaction.5 to 0. we started with an initial database of over 1. The list was further short listed based on the number of terminals and the top 210 were selected for profiling.800 broking firms that were contacted. Broking firms act as intermediately between customer who wants to buy or sell the securities in the market. They charge brokerage for rendering this service to the customer. that provided Indiabulls Securities Ltd. Page 56 . ● BROKING MECHANISM:As per the rule laid down by the government no one can buy or sell securities directly so the SEBI the independent body who looks over all the matters of exchange has given this power to eligible candidate or organization after qualifying some terms & condition. we present in this section some of the industry insights gleaned from analysis of data received through primary research.2 or sometimes lower than this. from which 464 responses were received. For the broking industry. Despite passing through a number of changes in the post liberalization period. With the purpose of gaining a deeper understanding about the role of the Indian stock broking industry in the country’s economy. 394 responses.The Indian broking industry is one of the oldest trading industries that have been around even before the establishment of the BSE in 1875. the industry has found its way towards sustainable growth.

whereas in the debt market. 24% are located in South and 5% in East In terms of sub-brokers. IPOs and Mutual Funds are the top three products offered with 90% firms offering trading. sub brokers. 48% trade at NSE. All the data for the study was collected through responses received directly from the broking firms. West has 31%. 13% in the South and 10% in the East • 3% firms started broking operations before 1950. the West region has the maximum representation of 52%. around 40%. Page 56 . Some key characteristics of the sample 394 firms are: • On the basis of geographical concentration. 26% at BSE and 43% at both exchanges • Majority of branches are located in the North. products and growth areas. i. we find that almost 36% firm’s trade in cash and derivatives and 27% are into cash markets alone. pertinent to the equity broking industry. 14% at BSE and 52% trade at both exchanges. branches. 66% firms intend to Indiabulls Securities Ltd. 40% are located at Mumbai. 12% in Delhi. Around 20% trade in cash. market. 7% at BSE and 45% at both. around 55% are located in the South. 29% in West. The insights have been arrived at through an analysis on various parameters. 8% in Ahmedabad. 65% between 19501995 and 32% post1995 On the basis of terminals. 84% firms have expressed interest in expanding their institutional clients. 4% in Chennai and 29% are from other cities • • From this study. around 34% firm’s trade at NSE. 7% in Kolkata. 11% in North and 4% in East Trading. such as region.e.more than 85% of the information sought have been included for this analysis presented here as insights. terminal. 31% trade at NSE. 67% IPOs and 53% firms offering mutual fund transactions • • • In terms of various areas of growth. In the derivative segment. Around 24% firms are located in the North. derivatives and commodities • In the cash market.

increase FII clients and 43% are interested in setting up JV in India and abroad • In terms of IT penetration. 62% firms have provided their website and around 94% firms have email. Page 56 . PROFILE OF INDIABULLS Indiabulls Securities Ltd.

Indiabulls Securities Ltd. Page 56 . Indiabulls came out with its initial offer (IPO) in September 2004. mutual fund. F&O. Company focused on brand building and franchise model. It expands its services offering to include Equity. IPO distribution and Equity Research. Indiabulls credit services Ltd. Merrill Lynch and Goldman Sac. Farallon Capital and its affiliates. Indiabulls started its consumer finance business. with around 31% share in online trading. since its initials public offering in September 2004. Indiabulls won bids for landmark properties in Mumbai. Indiabulls entered the India Real Estate market and become the first company to bring FDI in the Indian Real Estates.PROFILE OF THE ORGANIZATION Indiabulls has emerged as one of the leading and fastest growing financial company in less than two years. It has acquired over 115 acres of land in Sonepat for residential home site development. the world largest hedge fund committed Rs. 2000 million for Indiabulls subsidiaries viz. Indiabulls financial services Ltd. Indiabulls ventured into Insurance distribution and commodities trading. one of the renowned investment banks in the world have increased their shareholding in Indiabulls. It is a market leader in securities brokerage industries. and wholesale Debts. It has a market capitalization of around USD 800 million and consolidated net worth of around 500 million. and Indiabulls Housing Finance Ltd. is established as India’s one of the first trading platforms with the development of an in house team.

Page 56 . L N Mittal promoted LNM India internet venture Ltd.440 million in Indiabulls Financial Services Ltd. 6. acquired 8. Indiabulls Financial Services Ltd is included in the prestigious Morgan Stanley Capital International Index (MSCI).8 acres of land from Delhi Development Authority through a competitive bidding process for Rs 450 crores to develop residential apartments.steel tycoon Mr. Indiabulls entered in 50/50 joint venture with DLF. KBD has acquired 35. Indiabulls Securities Ltd. ORANIZATIONAL STRUCTURE: Following diagram shows the organizational hierarchy of Indiabulls Securities Ltd. Kenneth Builders and Developers (KBD).2% stake in Indiabulls credit securities Ltd. Farallon Capital has agreed to invest Rs.

Lloyd George and Farallon Capitals. Indiabulls has demonstrated deep understanding and commitment to Indian Real Estate market by winning competitive bids for landmark properties Indiabulls Securities Ltd.Indiabulls is India’s leading Financial Services and Real Estate Company having presence over 414 locations in more than 124 cities. Luxembourg Stock Exchange and London Stock Exchange. Indiabulls helps its client to satisfy their customized financial goals.000 customers with its range of financial services and products from securities. consumer secured and unsecured credit. Indiabulls is ranked 82nd in the list of most valuable companies in India in BT500. Revenue of the company grew at a CAGR of 268%. Goldman Sachs.00. depository services. Indiabulls serves the financial needs of more than 3. is listed on the National Stock Exchange. a respected US based investment firm. Indiabulls and its groups have attracted USD 300 millions of equity capitals in Foreign Direct Investments (FDI) since March 2000. Indiabulls became the first company to bring FDI in Indian Real Estate through a JV with Farallon capital management LLC. Capital Internationals. The market capitalization of Indiabulls is around USD 500 million. Some of the large share holders of Indiabulls are the largest financial institutions of the world such as Fidelity Funds. Merrill Lynch.business of the company has grown in leaps and bounds since its inception. It is currently evaluating several large scale projects worth several hundred million dollars. Indiabulls Financial Services Ltd. research and advisory services insurance. loan against share and mortgage and housing finance with around 5000 Relationship Manager. Page 56 . derivatives trading. Bombay Stock Exchange. Indiabulls through its group companies has entered India Real Estate business in 2005.

Support for making investment decisions with premium in- Value: Enjoy competitive brokerage and get the service and support at a fair price. Confidence: depth research.in Mumbai and Delhi. Indiabulls is on the 1st position in the Security Business in Pune City. Indiabulls Securities Ltd. Page 56 . INDIABULLS USPs: • • Wide range of products offered under one roof 24/7 Customer Support and ease of access Features: Control: One can stay on top of the investments with convenient access to their account online or by phone. Indiabulls announced demerger of its real estate division to a separate entity. In April 2006. having almost 40% of Total Revenue Share in the business.

Indiabulls ventured into insurance distribution and commodities trading.Benefits: Priority Service: The client gets direct access to his/her relationship Manager through our telephone service. GROWTH OF INDIABULLS SECURITIES LTD. our objective. Indiabulls expands its service offerings to include equity. 2001-02 2001-04 Indiabulls Securities Ltd.based approach to rating stocks. 2000-01 Indiabulls Financial Services Ltd. Online Accounting: Get access to account statement online and access to digital contract notes. since its initial public offering in September 2004. fact. Indiabulls has emerged as one if the leading and fastest growing financial company in less than two years. It has a market capitalization of around USD 800 million and consolidated net worth of around USD 500 million. Company focused on brand building and franchise model. wholesale debt. F&O. mutual fund. established as India’s one of the first trading platforms with development of an in house team. Page 56 . Premium Research: Benefit from access to Indiabulls Equity Analysis. IPO distribution and equity research.

a respected U. one of the renowned investment banks in the world have increased their shareholding in Indiabulls. 450 crore to develop residential apartments. L. Farallon capital and its affiliates.8 acres of land from Delhi Development Authority through a competitive bidding process for Rs.N.2% stake in Indiabulls Credit Services Ltd. based investment firm. 2005-06 2006-07 Indiabulls entered in a 50/50 joint venture with DLF. Indiabulls become the first company to bring FDI in Indian Real Estate through a JV with Forallon capital management LLC. Merrill Lynch and Goldman Sac. Steel Tycoon Mr. KBD has acquired 35. Indiabulls has acquired over 115 acres of land in Sonepat for residential home site development. Indiabulls is a market leader in securities brokerage industry. Mittal promoted LNM India internet venture Ltd. Page 56 . Indiabulls has demonstrated deep understanding and commitment to Indian Real Estate market by winning competitive bids for land mark properties in Mumbai and Delhi. Indiabulls won bids for landmark properties in Mumbai. It enters the Indian real estate market and become the first company to bring FDI in Indian real estate. acquired 8. 2000 million for Indiabulls subsidiaries viz. the world’s largest hedge fund committed Rs.It started its consumer finance business.2001-05 Indiabulls came out with its initial public offer in September 2004. Kenneth Builders & developers (KBD). 2007-08 Indiabulls Securities Ltd.S. with around 31% share in online trading.

Page 56 . Instead of keeping the savings idle individual may use savings in order to get return on it in future. This is called as Investment. Why should one invest? One needs to invest to: • Earn return on your idle resources Indiabulls Securities Ltd.INTRODUCTION Investment: The money earned is partly spent and the rest saved for meeting future expenses.

• • Generate a specified sum of money for a specific goal in life Make a provision for an uncertain future Beside these reasons. By investing early you allow your investments more time to grow. Page 56 . one of the important reasons why one needs to invest wisely is to meet the following factors: • • Cost of Inflation Need to live Cost of Inflation: Inflation is the rate at which the cost of living increases. Commodities etc. year after year. Need to live: Inflation causes money to lose value because it will not buy the same amount of goods or services in the future as it does now or did in the past. Three golden rules for all investors are: • • • Invest early Invest regularly Invest for long term and not short term The options available for investment are: • Physical Assets like Real Estate. whereby the concept of compounding increases your income. Perfect time to start investing: As such there is no perfect time to start investing. The sooner one starts investing the better. The cost of living is simply what it costs you to buy the goods and services. by accumulating the principal and the interest or dividend earned on it. Gold/ Silver. Indiabulls Securities Ltd.

such as the U.S.” Exposure to the consequences of uncertainty constitutes a risk. Indiabulls Securities Ltd. PF etc or security market related instruments like shares. The capital market includes the stock market and the bond market. or we say that “Risks are events or conditions that may occur. insurance. small instruments with post offices. where new issues are distributed to investors. • Regulatory: Change of policy by state. Page 56 .g. where companies and governments can raise long. Risk: Risk is a concept that denotes a potential negative impact to some characteristic of value that may arise from a future event. Financial regulators. and the secondary market. the Euro). In everyday usage. Securities and Exchange Commission. cross cutting policy decisions (e.• Financial Assets such as FDs with bank. if it does take place. and whose occurrence.term funds. bonds. debentures etc. The capital markets consist of the primary market. oversee the capital markets in their designated countries to ensure that investors are protected against fraud. Capital Market: The capital market is the market for securities. where existing securities are traded. risk is often used synonymously with the probability of a known loss. Risk communication and risk perception are essential factors for all human decision making. has a harmful or negative effect.. Categories of risks: • Political: Change of government. national or multinational regulatory bodies.

Economic: Ability to attract and retain staff in the labor market. effect of global economy on UK economy. exchange rates affect costs of international transactions. fire.• Market: Fundamental change in supply and demand functions or global prices for commodities. etc. traffic management. flood. storm. opportunity arising from technological development. • Contractual: Associated with the failure of contractors to deliver devices or products to the agreed cost and specification. vibration. • Operational: Relating to existing operations. food safety. • • Professional: Associated with the nature of each profession. • Health and safety: Buildings. vandalism. chemical and biological hazards. vehicles. • Technological: Obsolescence of current systems cost of procuring best technology available. noise. and damage to vehicles. equipment. • Environmental: Buildings need to comply with changing standards.culture: Demographic change affects demand for services.both current delivery and building and maintaining. stress. other related weather. mobile plant and equipment. Indiabulls Securities Ltd. stakeholder expectations change. asbestos. arson. • Socio. disposal of rubbish and surplus equipment needs to comply with changing standards. • Physical: Theft. Page 56 . building related risks.

Page 56 .COMPARISON OF INDIABULLS AND ITS PEER GROUP IN DIFFERENT AREAS Indiabulls Securities Ltd.

15%0.5 0% 0.5 0% 0.5 0% 0.5 0% 0.30%0.5 500/810/520/700/600/555/- Compulso ry Compulso ry Compulso ry Compulso ry Optional 400/Free 450/350/250/Free Online Both Both Online Both Both 1500/799/750/600/Free Free Yes No No No No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Compulso Indiabulls Securities Ltd. Page 56 .5 0% 0.10%0.5 0% 0.10%0.0 1% 0.02%0.10%0.05%0.5 0% Karvy Indiabu lls 12 Yes times (intrada y) Angel 850/Broking Religar e HDFC ICICI Relianc e Money Motilal Oswal LKP Net Worth IDBI Bonanz a India 500/750/975/750/- Compulso ry Compulso ry Compulso ry Compulso ry Compulso ry 450/250/300/450/200/- Both Online Both Online Both Free On site Free On site Free Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes On site Yes Yes 0.05%0.30%0.01%0.20%0.5 0% 0.Name of the compan y A/c openi ng charg es Demat opening is compuls ory or not Compulso ry Compulso ry Compulso ry A/c mainten ance charges Availabi lity of online/ offline Softwa re & its charge s RM Facili ty Expos ure facility Daily tip throu gh sms or call Brokerag e charges IntradayDel ivery Sharekh an 750/350/900/- 320/400/Free Both Both Both Free 650/750/- Yes Yes Yes 4 times Yes Yes Yes 0.5 0% 0.2 0% 0.10%0.2 0% 0.05%0.5 0% 0.10%0.

Page 56 .Infoline ry 0% OBJECTIVE & SCOPE Indiabulls Securities Ltd.

Relationship manager facilities. annual maintenance charges etc. To compare Indiabulls with its groups in terms of their brokerage charges. To know how much people are aware about Indiabulls Securities Ltd. Indiabulls Securities Ltd. Page 56 .The main objectives & scopes of this study are as follows: • • • • • To know the awareness about equity market. To know while opening a demat account what factors influences their decision. Online trading facilities. To know the things which customers like about Indiabulls Securities Ltd.

RESEARCH DESIGN & METHODOLOGY Indiabulls Securities Ltd. Page 56 .

Page 56 .Define Method of Research Market research can be defined as “The systematic gathering. Descriptive Research: .Exploratory research is preliminary study of an unfamiliar problem about which the researcher has little or no knowledge. upon the suitability of the method selected for it. It is the simplest type of research. 3. Types of Research The quality of research project depends. Pure Research: . It is thus problem oriented and action directed. It aims at extension of knowledge. among the other things. The Indiabulls Securities Ltd. 2.findings investigation with adequate interpretation. 1. recording and analyzing of data about problems relating to the marketing of goods and services” American Marketing Association (AMA). 4.Descriptive study is a fact. as it has focus on particular aspects or dimensions of the problem studied. It is not necessarily problem oriented. It is more specific than an exploratory study.Pure research is undertaken for the sake of knowledge without any intention to apply it in practice. There are basically 5 types of research. Exploratory Research: . It may lead to either discovery of a new theory or refinement of an existing theory.Applied research is carried on to find solution to a real life problem requiring an action or policy decision. Applied Research: . It is similar to doctor’s initial investigation of a patient suffering from an unfamiliar malady for getting some clues for identifying it. Hence care should be taken in selecting the appropriate method of research for any project.

The data should be divided into primary and secondary data.findings investigation with adequate interpretation.methods of research utilized in descriptive research are survey methods of all kind. Company’s database 4. Yellow Pages 2. including comparative and correlation methods. Analytical Research: . Secondary Source of DataSecondary database had been collected through 1. Data Type:There are two types of data type are as follows: A. A descriptive study aims at identifying the various characteristics of a community or institution or problem under study. Newspapers 3. 5.It is primary concerned with testing hypothesis and specifying and interpreting the relationship. It is the simplest type of research. It is more specific than an exploratory study. The major purpose of descriptive research is description of the state of affairs as it exists at present. but it does not deal with the testing of hypothesis. Reason of Selecting Descriptive Research: Descriptive study is a fact. Internet Data Collection: Researcher has to gather data that are appropriate. Descriptive studies help us to understand the customers’ profile. Indiabulls Securities Ltd. Page 56 . as it has focus on particular aspects or dimensions of the problem studied. B. Primary Source of DataPrimary data had been collected through survey method which had done at starting of project and by filling the questionnaire of customer.

the researcher tried to carry out descriptive research. as it is focused on particular aspect or dimensions of the problem studied.Primary data had been collected through survey method which had done at starting of project and by filling the questionnaire of customer. Research Design: In the later stage. Page 56 . Primary data 2.As the name specified is second hand data which has been earlier published in the magazines. Under nonprobability sampling the organizers of the inquiry purposively choose the particular unit of the universe. the investigator has considered small and medium industry as sampling unit. It is more specific than an exploratory study. school etc. sample unit.1. Secondary data 1) Primary Data:. For the research. Descriptive research is a facts and findings investigation with adequate interpretation. There is always the danger of bias entering Indiabulls Securities Ltd. district. Sampling Method: For the research. newspaper and websites . village etc. It may be a social unit such as family. sampling method. the researcher has used nonprobability sampling. (i) (ii) (iii) Sample size: 100 customers Sample universe: In Pune region only Sample frame: I met around 60 customers of middle age and 40 customers of older age as sample frame Sampling Unit: Sampling unit may be a geographical one such as state. Research Design includes following manner Sampling Plan: It includes all the information about sample size. It is also called as purposive sampling. 2) Secondary Data:.

Time required is very less as there is no set of rules for selection. Indiabulls Securities Ltd.into this type of sampling technique. percentage. For analyzing the data the researcher used various tools such as average. Page 56 . pie.charts. Following are the advantages of this type of sampling. bar graphs etc. Processing and analysis of data: Analysis means the computation of certain indices or measures along with searching for patterns of relationship that exist among the data group. It is use full for testing a questionnaire. • • • • This sampling scheme is very easy and convenience to operate. Low cost of selection and low cost of field work.

1.DATA ANALYSIS. RESULT AND INTERPRETATION Q. Page 56 .   Are you aware about equity market? Yes No Indiabulls Securities Ltd.

Q. Page 56 . I came to know that more than 90% of the population is aware about the equity market.2.   Do you have a demat account? Yes No Indiabulls Securities Ltd.Interpretation: From the above figure.

Interpretation: As most part of the population is aware about the equity market but all are not investing their part of savings in that. Q. Page 56 . Not to put their savings in the market it’s better to put in banks. I found that it’s because of the uncertainty of the market or their orthodox mentality. ICICI Direct Sharekhan Religare Indiabulls Securities Ltd. then through which broking company?     Indiabulls Securities Ltd.3. If yes.

Reliance Money. Q. There are other broking firms which have good hold in the market like Angel Broking. ICICI Direct comes at position 3rd. Page 56 .4. Any other (Please Specify) Interpretation: I found that Indiabulls Securities Ltd. is market leader but its close competitor is Sharekhan. Motilal Oswal etc. How do you trade?   Online Offline Indiabulls Securities Ltd.

More than 50% do trading through offline. still most of the customers prefer offline trading rather than online.5. Every company has its software in which you can see market scenario very easily but clients are not so friendly with that. Q.Interpretation: In today’s era. Page 56 . How frequently do you do trading?   Intraday Once a week Indiabulls Securities Ltd.

As this market is high risk high returns but you take that much risk which you can bear. Q.6. What influences your decision while opening an account? (Tick as many as applicable)   Location Charges Indiabulls Securities Ltd. it’s better to invest your money in long term. As shown in graph. Page 56 . a large percentage of clients are in long term investment and once a month followed by intraday trading. In today’s market.   Once a fortnight Once a month Long term investment Interpretation: Most of people prefer long term trading.

while opening an account they prefer to open in that broking firm either near their home or working place.    Trading calls Brand name Exposure facility Any other (Please Specify) Interpretation: As most clients trade offline that’s why. Page 56 . Location and exposure facility ranked first followed by trading calls. Have you seen any promotional campaign of brokering company?  Yes Indiabulls Securities Ltd. Q. various charges and in the last brand matters for them.7. At the same time exposure facility is also very important factor.

8. Few of them have seen but they do not remember which one does they like the most. No Interpretation: 80% of the clients don’t know see any promotional campaign of any broking firm. Page 56 . This shows that promotional campaign does not matter for it’s the service which they remember at the end of the day. Q. which features you like the most?  Brokerage charges Indiabulls Securities Ltd.(a) If you are the clients of Indiabulls Securities.

.8.? Brokerage charges Indiabulls Securities Ltd. Brokerage charges and account opening charges also play a role. they guide throughout the market hour. They give the best tip to trade. These are some features which clients like about their RM. Ltd. It followed by Power Indiabulls Software which is very user friendly. As RMs gives trading calls to their clients regularly. why you not prefer Indiabulls Securities Ltd.    RM facility Power Indiabulls Software Account opening charges Any other (Please Specify) Interpretation: While opening an account in Indiabulls Securities.(b)  If you are not. clients like RM facility the most. Page 56 . Q.

Page 56 . they thought that account opening charges are quite high i. Rs.e. 900/-.. Some thought that brokerage charges are very high and brand awareness of the company is quite low.   Brand awareness Account opening charges Any other (Please Specify) Interpretation: Customers do not prefer Indiabulls Securities Ltd. Indiabulls Securities Ltd.

is a customer oriented broking firm which focuses on the needs of the customers by introducing services like Power Indiabulls Software which help the customer Indiabulls Securities Ltd.CONCLUSION 1. Indiabulls Securities Ltd. Page 56 .

how to solve your customers problems matter the most? You should always stand behind your customers in their each and every need. 4. 6. 7.to see the current market position and help them to take the decisions. 5. 2. In broking firms. Indiabulls Securities Ltd. While opening account customers prefer those Relationship Managers which send them tips regularly and guide their portfolio well. Page 56 . People are influenced by friends mostly to take any decision. In service industry. 3. most of the big clients want to negotiate on brokerage. Quality is the first aspect that customer considers while any services. Customers prefer service with moderate expenses. which are easily accessible and provide full value for their time and money.

LIMITATIONS Indiabulls Securities Ltd. Page 56 .

so they were not interested in doing trading. Due to lack of time. So people didn’t show interest in trading. Many people had suffered great losses. The market condition was dropping during the project period.The study had the following limitations too: 1. some respondents were reluctant to give proper information and some didn’t show interest in opening an account as they were saying that we were there only for two months and who would take care of them after we will leave the company. so their contact numbers were not updated. Since some accounts were very old and the clients were not in contact. 2. 3. 4. The duration of project was very short. Indiabulls Securities Ltd. Hence they couldn’t be contacted. Page 56 .

Page 56 .RECOMMENDATIONS Indiabulls Securities Ltd.

so that the clients get to know about their new RMs and contact them whenever they are interested in trading. • The clients who have account in other firms should be given special attention. I have derived some suggestions: • The number of Relationship Managers should be increased so that each RM has less number of clients to handle and thus he can give proper attention to each and every client.From the analysis of the feedback of the clients and from the data. • Some sessions must be organized for those clients who are interested in trading but could not trade due to lack of knowledge about the market. as a part of Customer Relationship Management. because they are trading already and if we give them proper service and solve their problems then they might trade with Indiabulls too. Page 56 . This would help in building good image of the RM as well as the firm in the minds of the clients. even if they don’t trade regularly. • The clients must be given regular tips for trading. This will help in reducing the complaints of clients regarding service and also will reduce the feeling of being neglected. • Futures and Options trading must be focused. • The new Relationship Managers must contact all of their clients. Indiabulls Securities Ltd.

BIBLIOGRAPHY & REFERENCES Indiabulls Securities Ltd. Page 56 .

Reliance Money website 8. Page 56 . National Stock Exchange website 2. 11.com The Business Standard Indiabulls Securities Ltd. Motilal Oswal website 6. ICICI Direct 10. Indiabulls website 5. NSE’s NCFM Books Wikipedia. Bombay Stock Exchange website 3. Religare website 7. Moneycontrol. 12.1.com 4. Angel Broking website 9.

ANNEXURE Indiabulls Securities Ltd. Page 56 .

3. ii. iv. Indiabulls Securities Ltd. ii. Yes No Q. Online Offline Indiabulls Securities Ltd. How do you trade? i.QUESTIONNAIRE Q. ii. If yes. iii. Do you have a demat account? i.4. then through which share broking company? i.2.1. Page 56 . Are you aware about equity market? i. v. ii. Yes No Q. ICICI Direct Sharekhan Religare Any other (Please specify) Q.

vi. Location Charges Trading calls Brand Name Exposure facility Any other (Please specify) Q. ii. Have you seen any promotional campaign of brokerage company? i. Page 56 . v. Indiabulls Securities Ltd.Q.5. iv.6. Intraday Once a week Once a fortnight Once a month Long term investment Q. What influences your decision while opening an account? (Tick as many as applicable) i. iii.7. iii. which one does you like the most (Please specify) ………………………………………………………………………………………………… ………………. ii. Yes No If yes. iv. How frequently do you do trading? i. v. ii.

iii. which features you like the most? i. …………………………… Age group: Kindly tick whichever is applicable     <25 25-34 35-44 45 and above Address: Occupation: Indiabulls Securities Ltd.8. ii. iii. Page 56 .? i.(b) If you are not. v. Brokerage charges RM facility Power Indiabulls Software Account opening charges Any other (Please specify) Q. Brokerage charges Brand awareness Account opening charges Any other (Please specify) Something about you Name: Mr. iv. why you not prefer Indiabulls Securities Ltd. iv. / Mrs.Q. ii.(a) If you are the clients of Indiabulls Securities. / Ms.8.

Indiabulls Securities Ltd. Page 56 .