A

SUMMER TRAINING REPORT

ON

“Comparative Analysis of Stock

Brokers in Chandigarh Region”
At

SHAREKHAN PVT. LTD.

In partial fulfillment for the degree of

Master of Business Administration

(Session 2007-2009)
Submitted to

Chitkara Business School, Rajpura

UNDER THE GUIDANCE OF:

Submitted by:
Mr. HARPREET SINGH
VIJAY RANA

1
H.O.D. OF MBA DEPARTMENT
ROLL NO. 7005220239

2
3
 DECLARATION

I’m Vijay Rana, a student of Chitkara Business

School, Which is approved by PTU, Jalandhar hereby
declare that the project entitled “Comparative Analysis
Of Stock Brokers In Chandigarh Region” at
SHAREKHAN Ltd., is the original work done by me and
the information provided in the study is authentic to the
best of my knowledge. This study report has not been
submitted to any other institution or university for the
award or any other degree.

This report is based on my personal opinion hence

cannot be referred to legal purpose.

(Vijay Rana)

Date: -

4
 CONTENTS
1. ACKNOWLEDGEMENT
7
2. INTRODUCTION
10
 Introduction to stock exchange
 Introduction of the company
3. COMPANY PROFILE
18
4. REVIEW OF LITERATURE
37
5. RESEARCH METHODOLOGY
40
 Objective of study
 Type of research
 Sample design
 Size of sample
 Sources of data collection
6. COMPARATIVE ANALYSIS
46
7. FINDING & ANALYSIS
50

5
 8. SUGGESTIONS
60
9. LIMITATIONS
61
10. CONCLUSION 62

11. APPENDIX(Questionnaire)

63
12. BIBLIOGRAPHY

67
PREFACE
“A good broker system must be able to cope with
an extremely complex and dynamic environment.”

The microstructure of the stock market in which brokers

work is highly dynamic and volatile. Many stocks are
available to be bought and sold, each exhibiting its own
patterns and characteristics that are highly unpredictable.
With so many options and considerations that need to be
taken into account, it is an extremely arduous task for a
broker to investigate aspects of the stock market and
consistently provide effective advice to their clients.

6
Thus, brokers perform their day-to-day tasks with the aid
of a broker system. Such a system should provide tools
for interacting with exchanges and performing analysis.
As a consequence, these broker systems are quite large
and complicated by themselves.

This research aims is to analysis Stock broker on the basis

of their services, products, growth, and their subsidiaries.
Because Stockbrokers are one of the main participants in
stock exchanges worldwide, they often act as an agent
for their clients, making trades on their behalf. They also
act as advisors, providing suggestions to their clients on
what stocks to buy and sell.

7
 ACKNOWLEDGEMENT

Preservation, inspiration and motivation have always

played a key role in the success of any venture. In the
present world of competition and success, training is like
a bridge between theoretical and practical working;
willingly I prepared this particular Project. First of all I
would like to thank the supreme power, the almighty god,
who is the one who has always guided me to work on the
right path of my life. I would like to thank Mr. Gurpreet
Singh Kohli for granting me permission to undertake the
training in their esteemed organization.

8
I express my sincere thanks to Mr. Harpreet Singh (Head of
department), Mr. Harpal Singh Saini (Co-ordinator) & others
faculty members of M.B.A. department, for the valuable suggestion and
making this project a real successful.

I also thanks to Mr. Atul Gauri (Team Leader), Mr. Dharmender

Kumar (software guide) for their time-to-time guidance and support in
completing the project. I also thank the other staff of SHAREKHAN
who devoted their valuable time by helping me to complete my project.
Last but not least, my sincere thanks to my
parents and friends who directly or indirectly helped me
to bring this project into the final shape.

VIJAY RANA
DATE:-

9
 Executive Summary
There is growing competition between brokerage firms in
post reform India. For investor it is always difficult to
decide which brokerage firm to choose.
Research was carried out to find which brokerage house
people prefer and to figure out what people prefer while
investing in stock market.
This study suggest that people are reluctant while
investing in stock and commodity market due to lack of
knowledge
Main purpose of investment is returns and liquidity,
commodity market is less preferred by investors due to
lack of awareness. The major findings of this study are
that people are interested to invest in stock market but
they lack knowledge.

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Through this report we were also able to understand,
what are our Company’s (Sharekhan Ltd.) positive and
strong points, on the basis of which we come to know
what can be the basis of pitching to a potential client. We
also gave suggestions to the company, what
improvement can be done to our product.

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 INTRODUCTION
In most industrialized countries, a substantial part of
financial wealth is not managed directly by savers, but
through a financial intermediary, which implies the
existence of an agency contract between the investor
(the principal) and a broker or portfolio manager (the
agent). Therefore, delegated brokerage management is
arguably one of the most important agency relationships
intervening in the economy, with a possible impact on
financial market and economic developments at a macro
level.

In most of the metros, people like to put their money

in stock options instead of dumping it in the bank-lockers.
Now, this trend pick pace in small but fast developing
cities like Chandigarh, Gurgaon, Jaipur etc. My research is
based on the residents of Chandigarh and its nearby
areas.

As the per-capita-income of the city is on the higher

side, so it is quite obvious that they want to invest their
money in profitable ventures. On the other hand, a
number of brokerage houses make sure the hassle free
investment in stocks. Asset management firms allow

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investors to estimate both the expected risks and returns,
as measured statistically. There are mainly two types of
Portfolio management strategies.

1. Passive Portfolio Strategy

2. Active Portfolio Strategy

1. Passive Portfolio Strategy: A strategy that

involves minimal expectation input, and instead
relies on diversification to match the performance of
some market index. A passive strategy assumes that
the marketplace will reflect all available information
in the price paid for securities

2. Active Portfolio Strategy: A strategy that uses

available information and forecasting techniques to
seek a better performance than a portfolio that is
simply diversified broadly.

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 BACKGROUND OF STOCK EXCHANGE IN
INDIA

The emergence of stock market can be traced back to

1830. In Bombay, business passed in the shares of banks
like the commercial bank, the chartered mercantile bank,
the chartered bank, the oriental bank and the old bank of
Bombay and shares of cotton presses. In Calcutta,
Englishman reported the quotations of 4%, 5%, and 6%
loans of East India Company as well as the shares of the
bank of Bengal in 1836. This list was a further broadened
in 1839 when the Calcutta newspaper printed the
quotations of banks like union bank and Agra bank. It also
quoted the prices of business ventures like the Bengal
bonded warehouse, the Docking Company and the storm
tug company.

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Between 1840 and 1850, only half a dozen brokers
existed for the limited business. But during the share
mania of 1860-65, the number of brokers increased
considerably. By 1860, the number of brokers was about
60 and during the exciting period of the American Civil
war, their number increased to about 200 to 250. The end
of American Civil war brought disillusionment and many
failures and the brokers decreased in number and
prosperity. It was in those troublesome times between
1868 and 1875 that brokers organized an informal
association and finally as recited in the Indenture
constituting the “Articles of Association of the Exchange”.
On or about 9th day of July,1875, a few native brokers
doing brokerage business in shares and stocks resolved
upon forming in Bombay an association for protecting the
character, status and interest of native share and stock
brokers and providing a hall or building for the use of the
members of such association.

As a meeting held in the broker’ Hall on the 5th day of

February, 1887, it was resolved to execute a formal deal

15
of association and to constitute the first managing
committee and to appoint the first trustees. Accordingly,
the Articles of Association of the Exchange and the Stock
Exchange was formally established in Bombay on 3rd day
of December, 1887. The Association is now known as
“The Stock Exchange”.

The entrance fee for new member was Re.1 and there
were 318 members on the list, when the exchange was
constituted. The numbers of members increased to 333 in
1896, 362 in 1916and 478 in 1920 and the entrance fee
was raised to Rs.5 in 1877, Rs.1000 in 1896, Rs.2500 in
1916 and Rs. 48,000 in 1920. At present there are 23
recognized stock exchanges with about 6000 stock
brokers. Organization structure of stock exchange
varies.

14 stock exchanges are organized as public limited

companies, 6 as companies limited by guarantee and 3
are non-profit voluntary organization. Of the total of 23,
only 9 stock exchanges have been permanent
recognition. Others have to seek recognition on annual
basis.

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These exchange do not work of its own, rather, these are
run by some persons and with the help of some persons
and institution. All these are down as functionaries on
stock exchange. These are

1. Stockbrokers
2. sub-broker
3. market makers
4. Portfolio consultants etc.

1.) Stockbrokers

Stock brokers are the members of stock

exchanges. These are the persons who buy, sell or deal in
securities. A certificate of registration from SEBI is
mandatory to act as a broker. SEBI can impose certain

17
conditions while granting the certificate of registrations. It
is obligatory for the person to abide by the rules,
regulations and the buy-law. Stock brokers are
commission broker, floor broker, arbitrageur etc.

Detail of registered
brokers

Total no. of Total no. of sub-

registered brokers brokers as on
as on 31.03.2008 31.03.2008

9000 24,000

2.) Sub-broker

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 A sub-broker acts as agent of stock broker.
He is not a member of a stock exchange. He assists the
investors in buying, selling or dealing in securities
through stockbroker. The broker and sub-broker should
enter into an agreement in which obligations of both
should be specified. Sub-broker must be registered SEBI
for a dealing in securities. For getting registered with
SEBI, he must fulfill certain rules and regulation.

3.) Market Makers

Market maker is a designated

specialist in the specified securities. They make both bid
and offer at the same time. A market maker has to abide
by bye-laws, rules regulations of the concerned stock
exchange. He is exempt from the margin requirements.
As per the listing requirements, a company where the
paid-up capital is Rs. 3 crore but not more than Rs. 5
crore and having a commercial operation for less than 2
years should appoint a market maker at the time of issue
of securities.

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4.) Portfolio consultants

A combination of securities
such as stocks, bonds and money market instruments is
collectively called as portfolio. Whereas the portfolio
consultants are the persons, firms or companies who
advise, direct or undertake the management or
administration of securities or funds on behalf of their
clients.

Partial fulfillment for degree of M.B.A. programmed, we

received the opportunity from Sharekhan Ltd. for our
summer training project report. It is basically a stock
brokering company which deals in security and
derivative market, Commodity market, mutual funds and
Insurance etc.

20
 INTRODUCTION OF THE
COMPANY
Sharekhan is one of the leading retail brokerage of Citi
Venture which is running successfully since 1922 in the
country. Earlier it was the retail broking arm of the
Mumbai-based SSKI Group, which has over eight decades
of experience in the stock broking business. Sharekhan
offers its customers a wide range of equity related
services including trade execution on BSE, NSE,
Derivatives, depository services, online trading,
investment advice etc.

Earlier with a legacy of more than 80 years in the stock

markets, the SSKI group ventured into institutional
broking and corporate finance 18 years ago. SSKI is one
of the leading players in institutional broking and
corporate finance activities. SSKI holds a sizeable portion
of the market in each of these segments. SSKI’s
institutional broking arm accounts for 7% of the market
for Foreign Institutional portfolio investment and 5% of all
Domestic Institutional portfolio investment in the country.
It has 60 institutional clients spread over India, Far East,
UK and US. Foreign Institutional Investors generate about

21
65% of the organization’s revenue, with a daily turnover
of over US$ 2 million.

The content-rich and research oriented portal has

stood out among its contemporaries because of its
steadfast dedication to offering customers best-of-breed
technology and superior market information. The
objective has been to let customers make informed
decisions and to simplify the process of investing in
stocks.

WORK STRUCTURE OF
SHAREKHAN
Sharekhan has always believed in investing in technology
to build its business. The company has used some of the
best-known names in the IT industry, like Sun
Microsystems, Oracle, Microsoft, Cambridge Technologies,
Nexgenix, Vignette, Verisign Financial Technologies India
Ltd, Spider Software Pvt Ltd. to build its trading engine
and content. The Citi Venture holds a majority stake in
the company. HSBC, Intel & Carlyle are the other
investors.

On April 17, 2002 Sharekhan launched Speed Trade and

Trade Tiger, are net-based executable application that
emulates the broker terminals along with host of other

22
information relevant to the Day Traders. This was for the
first time that a net-based trading station of this caliber
was offered to the traders. In the last six months
SpeedTrade has become a de facto standard for the Day
Trading community over the net.
Sharekhan’s ground network includes over 700+
Shareshops in 130+ cities in India.

The firm’s online trading and investment site -

www.sharekhan.com - was launched on Feb 8, 2000. The
site gives access to superior content and transaction
facility to retail customers across the country. Known for
its jargon-free, investor friendly language and high quality
research, the site has a registered base of over 3 Lacs
customers. The number of trading members currently
stands at over 7 Lacs. While online trading currently
accounts for just over 5 per cent of the daily trading in
stocks in India, Sharekhan alone accounts for 27 per cent
of the volumes traded online.

The Corporate Finance section has a list of very

prestigious clients and has many ‘firsts’ to its credit, in
terms of the size of deal, sector tapped etc. The group
has placed over US$ 5 billion in private equity deals.
Some of the clients include BPL Cellular Holding, Gujarat
Pipavav, Essar, Hutchison, Planetasia, and Shopper’s
Stop.

23
Finally, Sharekhan shifted hands and Citi venture get
holds on it.

PRODUCTS OFFERED BY SHAREKHAN

1- Equity Trading Platform (Online/Offline).

2- Commodities Trading Platform (Online/Offline).
3- Portfolio Management Service.
4- Mutual Fund Advisory and Distribution.
5- Insurance Distribution.

REASONS TO CHOOSE SHAREKHAN LIMITED

Experience
SSKI has more than eight decades of trust and credibility
in the Indian stock market. In the Asia Money broker's
poll held recently, SSKI won the 'India's best broking
house for 2004' award. Ever since it launched Sharekhan
as its retail broking division in February 2000, it has been

24
providing institutional-level research and broking services
to individual investors.

Technology
With their online trading account one can buy and sell
shares in an instant from any PC with an internet
connection. Customers get access to the powerful online
trading tools that will help them to take complete control
over their investment in shares.

Accessibility
Sharekhan provides ADVICE, EDUCATION, TOOLS AND
EXECUTION services for investors. These services are
accessible through many centers across the country
(Over 650 locations in 150 cities), over the Internet
(through the website www.sharekhan.com) as well as
over the Voice Tool.

Knowledge
In a business where the right information at the right time
can translate into direct profits, investors get access to a
wide range of information on the content-rich portal,
www.sharekhan.com. Investors will also get a useful set

25
of knowledge-based tools that will empower them to take
informed decisions.

Convenience
One can call Sharekhan’s Dial-N-Trade number to get
investment advice and execute his/her transactions. They
have a dedicated call-center to provide this service via a
Toll Free Number 1800-22-7500 & 39707500 from
anywhere in India.

Customer Service
Its customer service team assist their customer for any
help that they need relating to transactions, billing,
demat and other queries. Their customer service can be
contacted via a toll-free number, email or live chat on
www.sharekhan.com.

Investment Advice
Sharekhan has dedicated research teams of more than 30
people for fundamental and technical research. Their
analysts constantly track the pulse of the market and
provide timely investment advice to customer in the form
of daily research emails, online chat, printed reports etc.

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Benefits
• Free Depository A/c
• Instant Cash Tranfer
• Multiple Bank Option.
• Secure Order by Voice Tool Dial-n-Trade.
• Automated Portfolio to keep track of the value of your
actual purchases.
• 24x7 Voice Tool acess to your trading account.
• Personalised Price and Account Alerts delivered
instantly to your Mobile Phone & E-mail address.
• Live Chat facility with Relationship Manager on Yahoo
Messenger
• Special Personal Inbox for order and trade
confirmations.
• On-line Customer Service via Web Chat.
• Enjoy Automated Portfolio.
• Buy or sell even single share
• Anytime Ordering.

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Sharekhan offers the following products:-

CLASSIC ACCOUNT
This is a User Friendly Product which allows the client to
trade through website www.sharekhan.com and is
suitable for the retail investors who is risk-averse and
hence prefers to invest in stocks or who do not trade too
frequently.

Features
• Online trading account for investing in Equity and
Derivatives via www.sharekhan.com
• Live Terminal and Single terminal for NSE Cash, NSE
F&O & BSE.
• Integration of On-line trading, Saving Bank and Demat
Account.
• Instant cash transfer facility against purchase & sale of
shares.
• Competitive transaction charges.
• Instant order and trade confirmation by E-mail.
• Streaming Quotes (Cash & Derivatives).
• Personalized market watch.

28
• Single screen interface for Cash and derivatives and
more.
• Provision to enter price trigger and view the same
online in market watch.
SPEEDTRADE
SPEEDTRADE is an internet-based software
application that enables you to buy and sell in an instant.
It is ideal for active traders and jobbers who transact
frequently during day’s session to capitalize on intra-day
price movement.

Features
• Instant order Execution and Confirmation.
• Single screen trading terminal for NSE Cash, NSE F&O
& BSE.
• Technical Studies.
• Multiple Charting.
• Real-time streaming quotes, tic-by-tic charts.
• Market summary (Cost traded scrip, highest clue etc.)
• Hot keys similar to broker’s terminal.
• Alerts and reminders.
• Back-up facility to place trades on Direct Phone lines.

29
• Live market debts.

DIAL-N-TRADE
Along with enabling access for trade online, the
CLASSIC and SPEEDTRADE ACCOUNT also gives Dial-n-
trade services. With this service, one can dial sharekhan’s
dedicated phone lines 1-800-22-7500, 3970-7500.
Beside this, Relationship Managers are always
available on Office Phone and Mobile to resolve customer
queries.

ShareMobile
Sharekhan had introduced ShareMobile, A mobile
based software where one can watch Stock Prices, Intra
Day Charts, Reasearch & Advice and Trading Calls live on
the Mobile.
(As per SEBI regulations, buying-selling
shares through a mobile phone are not yet permitted.)

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PREPAID ACCOUNT
Customers pay Advance Brokerage on trading
Account and enjoy uninterrupted trading in their Account.
Beside this, great discount are also available (up to 50%)
on brokerage.
Prepaid Classic Account : - Rs. 2000
Prepaid Speed trade Account : - Rs. 6000

IPO ON-LINE
Customers can apply to all the forthcoming IPOs
online. This is quite hassle-free, paperless and time
saving. Simply allocate fund to IPO Account, Apply for the
IPO and Sit Back & Relax.

Mutual Fund Online

Investors can apply to Mutual Funds of Reliance,
Franklin Templeton Investments, ICICI Prudential, SBI,

31
Birla, Sundaram, HDFC, DSP Merrill Lynch, PRINCIPAL and
TATA with Sharekhan.

Zero Balance ICICI Saving Account

Sharekhan had tied-up with ICICI bank for Zero

Balance Account for Sharekhan’s Clients. Now their
customers can have a Zero Balance Saving Account with
ICICI Bank after your demat Account creation with
Sharekhan.
CHARGE STRUCTURE
Fee Structure for General Individuals: -

Speed Trade
Charge Classic Account
Account
Account Opening Rs. NIL Rs. NIL
Monthly Rs. NIL Rs. NIL
Commitment
Brokerage Intra-day – 0.05 Intra-day - 0.05%
%
Delivery - 0.50%
Delivery - 0.50
%
* Taxes as per govt.

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Depository Charges

Account Opening Charges Rs. NIL

Annual Maintenance Rs. NIL first year.
Charges
Rs. 300/= p.a. from
second calendar year
onward

EXPOSURE: 4 TO 6.7 TIMES (ON MARGIN MONEY)

MAJOR PLAYERS IN THE

REGION
1. Karvy

2. Indiainfoline

3. ICICI direct

4. HDFC security

5. Indiabulls

33
KARVY is a premier integrated financial services
provider, and ranked among the top five in the country in
all its business segments, services over 16 million
individual investors in various capacities, and provides
investor services to over 300 corporate, comprising the
who is who of Corporate India. Karvy has a professional
management team and ranks among the best in
technology, operations and research of various industrial
segments.

History of Karvy :- The birth of Karvy was on a modest

scale in 1981. It began with the vision and enterprise of a
small group of practicing Chartered Accountants who
founded the flagship company, Karvy Consultants
Limited. They started with consulting and financial
accounting automation and carved inroads into the field
of registry and share accounting by 1985. Since then,
karvy utilized its experience and superlative expertise to
go from strength to strength, to better their services, to
innovate, diversify and in the process, evolved as one of
India’s premier integrated financial service enterprise.

PRODUCT AND SERVICES OF KARVY GROUP

34
 1. Karvy comtrade.

2. Karvy consultant ltd.

3. Karvy merchant banking.

4. Karvy global services ltd.

ICICI DIRECT

ICICI Web Trade Limited (IWTL) maintains

www.icicidirect.com (herein after referred to as the
"Website") whereas IWTL is an affiliate of ICICI Bank
Limited and the Website is owned by ICICI Bank Limited.
IWTL has launched and established an online trading
service on the Website.

35
 PRODUCTS AND SERVICES OF
ICICI DIRECT

1. Investing in Mutual funds

2. Personal Finance

3. Customer Service Features

4. IPO’s

5. Margin Trading

6. Margin PLUS Trading

7. Call Trade

8. Trading on NSE/BSE

9. Trade in derivatives

INDIAINFOLINE SECURITY PRIVATE LTD

India Infoline.com Securities Pvt. Ltd. is a wholly owned

subsidiary of India Infoline.com Ltd and is the stock
broking arm of India Infoline.com. The subsidiary was
formed to comply with regulatory guidelines.

36
www.5paisa.com is a focused website for online stock
market trading. 5paisa.com is a trade name owned by the
India Infoline.com group. IILSPL has applied for trading
membership of the BSE under Securities and Exchange
Board of India (Stock Brokers and Sub-Brokers) Rules
1992.

IILSPL is in the business of providing broking services

online via the Internet ("E-broking Services") and has
been permitted by the NSE by way of registration
permission no: NSEIL/CMO/INET/1103/2000 dated
03/July/2000, and will be applying for permission to the
BSE, to provide E-broking Services to its clients. IILSPL is
a TRADING MEMBER of the National Stock Exchange of
India.

PRODUCT OFFERED BY IILSPL

37
Stock market:-IILSPL deals in stock market by trading in
equity and derivatives.

Personal finance:- It Deals In Mutual Fund And

Insurance.

Online Trading :- It provides services in stock and

commodity trading (through Internet).

38
 HDFC SECURITY

HDFC security is the subsidiary of HDFC (Housing

Development Financial Corporation). www.hdfcsec.com
would have an exclusive discretion to decide the
customers who would be entitled to its online investing
services. www.hdfcsec.com also reserves the right to
decide on the criteria based on which customers would
be chosen to participate in these services .The present
web site (www.hdfcsec.com) contains features of services
that they offer/propose to offer in due course. The launch
of new services is subject to the clearance of the
regulators. i.e. SEBI, NSE and BSE.

PRODUCT OFFERED BY HDFC

SECURITY

• Online trading for Resident & Non Resident Indians.

• Cash-n-Carry on both NSE and BSE.
• Day trading on both NSE and BSE.
• Trade on Futures & Options on the NSE.
• Online IPO's.
• Telephone-based Broking (Equity & Derivatives).

39
 INDIABULLS SECURITIES LIMITED

Indiabulls Securities Limited was incorporated as GPF

Securities Private Limited on June 9, 1995. The name of
the company was changed to Orbis Securities Private
Limited on December 15, 1995 to change the profile of
the company and subsequently due to the conversion of
the company into a public limited company; the name
was further changed to Orbis Securities Limited on
January 5, 2004. The name of the company was again
changed to Indiabulls Securities Limited on February 16,
2004 so as to capitalize on the brand image of the term
“Indiabulls” in the company name. ISL is a corporate
member of capital market & derivative segment of The
National Stock Exchange of India Ltd. At present, ISL
accounts for approximately 3% of the total daily turnover
of the Exchange with 32,359 client relationships and 70
branches spread across the country as of April 30, 2004.

INDIABULLS CREDIT SERVICES LIMITED:- Indiabulls

Credit Services has been valued at Rs. 263 crore with the
Rs. 87.6-crore infusion. Indiabulls Credit Services Ltd, the

40
recently formed subsidiary of broking firm, Indiabulls
Financial Services Ltd. Faralon Capital, a San Francisco-
based private equity fund, and its affiliates have acquired
33.3 per cent stake for Rs 87.6 crore.

INDIABULLS REAL ESTATE:- Indiabulls through its

group companies has entered Indian Real Estate business
in 2005. It is currently evaluating several large-scale
projects worth several hundred million dollars. Indiabulls
became the first company to bring FDI in Indian Real
Estate through a JV with Farallon Capital Management, a
respected US based investment firm.

PRODUCT OFFERED BY INDIA BULLS

Equity & Debt Stock Broking

Insurance

Commodity trading

Depository Services

Derivatives Broking Services

Equity Research Services

Mutual Fund Distribution

IPO Distribution

41
 REVIEW OF LITERATURE
According to SEBI, Professional Rating of market
intermediaries, as a concept, is a matter of debate and
discussions. The need for rating is felt not only from the
point of view of greater disclosure requirements for
investor’s interests, considering the important role such
intermediaries play, being an interface between investors
and exchanges but also from the point of view of
measuring the adequacy of systems and controls to meet
internal as well as external compliance requirements.

So that need for Intermediaries Rating services (Brokers),

In view of the developments that are taking place in the
capital markets, the need to constantly upgrade and
improve systems and procedures in operation as well as
skill sets has gained considerable importance. Besides
compliance with regulatory requirements both in letter

42
and spirit has assumed significance so as to mitigate risk
and ensure adequate protection of investors’ interest.

And Rating objectives / benefits are rated entity would be

in a position to brand its image and capitalize the same
for generating more business. In a nutshell, the product
may accrue significant benefits to all stakeholders
including the investors, stock brokers themselves, the
regulator and others who will benefit from the
transparency and the consequential focus on efficiency.

According to SEBI and Intermediaries Regulation and

Supervision Department, different factors are consider for
rating process Organization structure, Policy on Investors
interest, Risk Management Policy and System,
Organization process and procedures, Management policy
on compliance, Financials, History/Background, Firm’s
positioning.

According to Michal Parness, Founder & CEO

Investors don’t Make Money in the Stock Market.

One reason the institutions make so much money

43
is that they are trading. They make money every
time you buy or sell. They make money whether
you win or lose. That means that when you’re
investing, you’re basically just sitting there. You’re
not going anywhere. You’re not making money as
an investor.

Trading the Trend: The Only Way to Make Money in

the Market

If you don’t know this already, “Trend Trading” means

trading trends based on human emotions. Not lagging
indicators. Not complex statistical analysis and not Ph.D.
level mathematical equations. With trend trading, you
look for market movement. That could mean stocks that
are going to move up or down during the course of a day
(intraday). You’ll play the gaps up and down, often
several days a week.

The “Trend trading” means being aware and taking

advantage of trends like the run-ups that happen around
earning sessions. These are trends that have worked time
and time again in the market. They consistently yield
results.

44
 RESEARCH METHODOLOGY
Objective Of Research

Each research study has its own specific purpose. It is like

to discover to Question through the application of
scientific procedure. But the main aim of our research to
find out the truth that is hidden and which has not been
discovered as yet. Our research study has two
objectives:-

45
PRIMARY OBJECTIVE: -How Sharekhan Ltd is best
services providers as a stock broker in the Tri-city region.

SECONDARY OBJECTIVE: -

1. To know about the awareness towards stock brokers

and share market.
2. To study about the competitive position of Sharekhan
Ltd in Competitive Market.
3. To study about the effectiveness & efficiency of
Sharekhan Ltd in relation to its competitors
4. To study about whether people are satisfied with
Sharekhan Services & Management System or not
5. To study about the difficulties faced by persons while
Trading in Sharekhan.
6. To study about the need of improvement in existing
Trading system.

46
 TYPES OF RESEARCH

On the basis of theoretical study a research has many

types. All of these are distributed on the nature of
research. Some of these are like

1. Descriptive and Analytical

2. Qualitative and Quantitative

3. Conceptual and empirical

4. Applied and fundamental

5. One time research

Our research is based on Descriptive, Qualitative and

Quantitative research.

Descriptive Research:- Descriptive research includes

surveys and fact finding enquires of different kinds. The
major purpose of descriptive research is description of
the state of affairs as it exists at present. Researcher has
no control over the variables of this type of research.

47
Qualitative Research:- In our research we need
comparison between different stock brokers. So this
based on all qualitative data. In short, Qualitative
research is especially important in the behavioral
sciences where the aim is to discover the underline
motives of human behavior. Through such research we
can analyses various factors which motivate to people to
behave in a particular manner or which make people like
or dislike a particular thing.

Quantitative research:- Quantitative research is based

on the measurement of quantity or amount. It is
applicable to phenomena that can be expressed in terms
of quantity. So we can use it in our research for collection
of all the numerical data.

SAMPLE DESIGN

48
“A sample design is a definite plan for obtaining a sample
from a given population. It refers to the technique or the
procedure the researcher would adopt in selecting item
for the sample”

Generally Sample designs are two types

1. PROBABILITY RESEARCH DESIGN

2. NON PROBABILITY RESEARCH DESIGN

We used the probability research design.

SAMPLING UNITS

Sampling unit may be a geographical one, such as state,

district, village etc. The researcher will have to decide
one or more of such units that he has to select for his
study.

In my research study Chandigarh as a sampling unit.

SIZE OF SAMPLE

49
“This refers to the number of items to be selected from
the universe to constitute a sample”

In our research sample size is 100.

But we also study the 5 stock broker companies related to

security & commodity market like India-infoline, ICICI
direct, HDFC securities, Karvy consultant ltd. for the
appropriate collection of the information.

SOURES OF DATA COLLECTION

While deciding about the method of data collection to be

used for the study the researcher should keep to types of
data.

1. Primary

2. Secondary Data.

We use in our research primary data, as well as

secondary data. Primary means collected a fresh, and the
first time data and secondary means which are already
available like annual report, magazines etc.

50
Survey Method: - Survey refers to the method of
securing information concerning phenomena under study
from all or selected number of respondents of the
concerned area. In a survey the investigator examines
those phenomena which exist in the universe
independent of his action. We used the Scheduling
Method.

Scheduling: - In this method the enumerators along

with schedules, go to respondents, put to them the
questions from the Performa in the order the questions
are listed and recorded the replies in the space meant
for the same in the Performa.

51
 COMPARATIVE ANALYSIS
After the whole study, we find out the following results:

Results on the Basis of charges

There are the two type of the transaction:-

1. Intra-day based

2. Delivery based

52
All the figures are in paisa/100 rupees.

Comment:- According to the survey HDFC securities

charge maximum brokerage as compare to others
whereas India Infoline Ltd. charge only 0.20 paisa on
maximum investment.

Results On the basis of Account opening

charges
HDFC securities ltd:- Account opening charges w.e.f.
April 2005 are as follows:- Rs.749, if the customer has an
existing relationship with HDFC

Sharekhan ltd:- There is no ACCOUNT OPENING

CHARGES but require margin money of Rs 5000 for
trading purposes.

ICICI direct:- A one-time charge of Rs. 750 at the time of

account opening will be charged. You may later upgrade

53
your Invest account to an ICICI direct.com share trading
account when you desire to trade in equity.

India Infoline:- There is a nominal charge of Rs. 500

only towards stamp duty, legal and processing fees for
opening the account. This includes the registration and
account opening charges. Bank and Depository
Participant (DP) account opening charges, if applicable,
are payable separately.

KARVY consultants ltd:- Account Opening Charges Are

452 But now SEBI banned on opening of new demat
account of Karvy.

Indiabulls:- Account opening charges are Rs. 900. There

is no AMC and no margin money is required.

Comment:- India Bulls charge maximum account

opening charges but there are no such charges in
Sharekhan pvt. Ltd.

54
 Results on the basis of customer
preferences

1. According to survey 70 % peoples are satisfied with

Sharekhan Ltd because of their RM’s facility and power of
Sharekhan Ltd software.

2. According to survey, Sharekhan Ltd open new branches

for individually handle to their customer, but in ICICI
direct, HDFC security there is no separate offices for this
.So people prefer Sharekhan Ltd.

Results On The Basis Of Facilities

Basis of Sharek K India ICIC Indiab HD
differen han arv Infoli I ulls FC
ce Ltd. y ne dire

55
 ct

Share Yes Yes Yes Yes Yes Yes

trading
Commo Yes Yes Yes Yes Yes Yes
dity
trading
d-mat Yes No Yes Yes Yes No
opening
rights

Karvy and HDFC securities are not providing complete

range of trading facilities.

FINDINGS & ANALYSIS

1) Do you know about investment options available?

KNOWLEDG %AGE
E
Yes 80%

No 20%

TOTAL 100

56
COMMENT

Only 80% people knows the exact meaning of

investment. Because of remaining 20% take his/her
residential property as an investment. According to law
purpose this is not an investment because of it is not
create any profit for the owner.

2) Most preferable investment scenario.

INVESTMENT %AGE
SCENARIO

Banks 24%

57
Derivatives & 28%
securities market

Insurance 4%
Bonds 20%

Real estate 20%

Others 4%

TOTAL 100

58
COMMENT

Today scenario is changed so that most area covered by

the derivative and securities market. It is 28% of the total
population.

3) What is the basic purpose of your investment?

INVESTME PERCENTA
NT GE
PURPOSE
Liquidity 30%
Returns 25%
Capital 10%
appreciatio
n
Tax benefits 20%
Risk 5%
covering
Others 10%

59
 TOTAL 100

COMMENT:- 75% people are interested in liquidity,

returns and tax benefits. And remaining 25% are
interested in capital appreciations, risk covering, and
others.

4)Most important things you take into your mind while

making investments?

FACTOR %AGE

Risk 8%

Returns 17%
Both 75%

60
TOTAL 100

COMMENT

75% people are considered the both factors risk as well

as returns but, only 25% considered the risk or returns
factor.

5) Awareness related to security markets

KNOWLEDGE PERCENTAGE
Complete 8%
Partial 75%
Nil 17%
TOTAL 100

61
COMMENT

On that basis, we conclude that 17% people know nothing

about the securities investments and 75% people have
partial knowledge about it, so, some promotional
activities are required for increasing the awareness about
security market.

6) Do you have any de-mat & trading account?

ACCOUNTS PERCENTAGE
Yes 60%
No 40%
TOTAL 100%

62
COMMENT

Only 75% respondents have de-mat and trading account

and remaining 25% says no because they don’t know why
shares move up and down.

7) In which company you have d-mat and trading

account?

COMPANY PERCENTAGE
SHAREKHAN 38%

63
INDIAINFOLINE 20%

ICICI DIRECT 14%

INDIA BULLS 12%
KARVY 9%
Others 7%

TOTAL 100

COMMENT
In Sharekhan Ltd 38% respondents have de-mat & trading
account because of better services and no annual
maintenance and other charges.

64
8) Specify the reason of satisfaction with the current
broking house.

SATISFACTION PERCENTAGE
Operating expenses 18%
Services 25%
Brokerage 57%
TOTAL 100

FINDINGS

65
 According to the survey most of the customers of
“Sharekhan Ltd” says that it is pocket friendly.
 Coming to faith 70% say Sharekhan Ltd is better than
others stock brokers due to customers satisfaction.
 Lack of promotional activities undertaken by Sharekhan
securities Ltd. in Chandigarh Region.
 Main purposes of investments are returns & liquidity.
 Investors take risk as well as returns into their mind while
making the investment.
 Businessmen are more interested in the stock market
than the others.
 Commodity market is less preferred by the investors.
 People want to invest their money in the security market
but they haven’t the proper knowledge.
 People are not aware of hedging in stock market.
 People pay more emphasis on brokerage than service
provided by brokerage houses.

SUGGESTIONS

66
 Commitment should be equalized for every person.
 Provide the facility of free demonstrations for all.
 Improvement in the opening of De-mat & contract notice
procedure is required.
 There should be a limited number of clients under the
relationship manger. So that he can handle new as well
as old customer properly.
 Some promotional activities are required for the
awareness of the customer.
 People at young age should be encouraged to invest in
stock market.
 Seminars should be held for providing information to
prospective and present customers.

LIMITATIONS

67
 As only CHANDIGARH dealt in survey so it does not

represent the view of the total Indian market.

 Size of the research may not be substantial.

 There was lack of time on the part of respondents.

 The survey was carried through questionnaire and

the questions were based on perception.

 There may be biasness in information by market

participant.

 Complete data was not available due to company

privacy and secrecy.

CONCLUSION

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On the basis of the study it is found that Sharekhan Ltd is
better services provider than the other stockbrokers
because of their timely research and personalized advice
on what stocks to buy and sell. Sharekhan Ltd. provide
the facility of Trade tiger as well as relationship manager
facility for encouragement and protect the interest of the
investors. It also provides the information through the
internet and mobile alerts that what IPO’s are coming in
the market and it also provides its research on the future
prospect of the IPO.

Study also concludes that people are not much aware of

commodity market and while it’s going to be biggest
market in India.

The company should also organize seminars and similar

activities to enhance the knowledge of prospective and
existing customers, so that they feel more comfortable
while investing in the stock market.

69
 APPENDIX

QUESTIONNAIRE

DATE:

NAME
OCCUPATION
AGE
CONTACT NO.

1) Do you know about Investment options available?

a) Yes b) No

2) Do you know about the different types of investment

alternatives?

a) Insurance & mutual funds b) Banks

c) Real estate d) Share market

70
e) Commodity f) Others

3) What is the basic purpose of your investment?

a) Liquidity b) Returns

c) Capital appreciation d) Risk covering

e) Tax benefits

4) What are the most important things you take into

account, while making any investment?

a) Risk b) Returns c) Both

5) Do you have any knowledge of share markets?

a) Partial b) Complete c) Nil

6) Do you have any D-mat & Trading account?

a) Yes b) No

71
7) In which company you have D-mat & Trading account?

a) Sharekhan Ltd b) Karvy

c) Indiainfoline d) ICICI direct

e) Indiabulls f) HDFC securities

g) Others

8) Are you satisfied with you present broking company?

a) Yes b) No

9) What is the reason? Please specify.

a) Services _______________________________________

b) Brokerage _____________________________________

c) Operating expenses ______________________________

d) Others ________________________________________

72
10) What is your trading exchange preference?

a) NSE b) BSE

c) MCX d) NCDEX

12) Do you know about Sharekhan Ltd?

a) Yes b) No

Suggestion:-

BIBLIOGRAPHY
73
Books:

BERI

G C. MARKETING RESEARCH

NEW DELHI, TATA Mc GRAW-HILL PUBLISHING COMPANY

LIMITED.

KOTHARI

RESEARCH METHODOLOGY

NEW DELHI, VIKAS PUBLISHING HOUSE PVT.LTD.1978.

GOYAL, DR.ALOK,

FINANCIAL MARKET OPERATION

NEW DELHI, V.K. (INDIA) ENTERPRISES .

Magazines:

74
VALUELINE (SHAREKHAN MONTHLY RESEARCH MAGAZINE)

CAPITAL MARKET (5PASISA.COM), NEW DELHI.

THE FINAPOILS (YOUR PERSONAL FINANCE ADVISOR

FROM KARVY).

Internet:

http://WWW.MONEYCONTROL.COM

http://WWW.CAPITALINE.COM

http://WWW.SHAREKHAN LTD.COM

http://WWW.INDIAINFOLINE.COM

http://WWW.ICICIDIRECT.COM

http://WWW.HDFCSECURITY.COM

http://WWW.KARVY.COM

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