Project Report On Finance LKP Shares

COMPARATIVE STUDY OF LKP SHARES WITH OTHER BROKING FIRM
BY
XXXXXXXXXXXX Finance+marketing
UNDER THE GUIDANCE OF

GUIDER NAME R.
COLLEGE NAME, CITY NAME & Mr. PROJECT MAKER NAME, Manager,sales,INDIA LKP shares
COLLEGE NAME CITY NAME-21
Visit www.mbahotspot.com for more
2 info@mbahotspot.com
ACKNOWLEDGEMENT
I take this opportunity to express my sincere thanks to the management and staff of LKP SHARES, LUDHIANA for providing me those learning moments of their organization. I am greatly indebted to Mr. GUIDER NAME r. for his guidance. Special thanks to Mr. PROJECT MAKER NAME, Mr. XXXXXXXXXXXXXX and all other for their whole hearted co-operation and guidance. My special thanks to the entire staff of lkp shares from whom I learned and gained from each and every second of my interaction with them. I express my deep sense of gratitude to Mr. GUIDER NAME r . my project guide who made a Herculean task look simple and without his resourceful guidance this project would have not been completed.
XXXXXXXXXXXXXX Fin+mkt
CONTENT 1) Executive summary 2) Introduction 3) Methodology 4) Company Profile 5) Products of the Company 6) De-Mat a/c, Re-Mat a/c and Trading a/c 7) Different Types of De-Mat A/c 8) Comparative analysis 9) Result 10) Recommendation and Conclusion 11) Bibliography
PAGE NO. 6 7-9 10-13 14-16 16-30 18-27 27-37 38 37-45 46-47 48-53
EXECUTIVE SUMMARY
I joined LKP shares as I have my interest towards the share and securities market . LKP shares is a well established institution in the Indian market . objective of my study was to see how many people are interested in the share market . I also wanted to know the growth potential of this industry. During my internship I get to know the way the operations are done in LKP shares. There are no of clients which are associated with the company and lot of them follow the markets carefully and closely. Few of them do the dealings regularly. Executive officers of the company are in close touch with the clients who wish to enquire or want to engage in buy or sell of the securities. I also came across to some problems being faced by the clients. Sometimes the executives are too busy attending a particular clients that they overlook the other client. Also sometimes the clients are confused regarding securities .
INTRODUCTION
Every modern economy is based on a sound financial system .A financial system is a set of institutional arrangements through which financial surpluses are mobilized from the units generating surplus income and transferring them to the others in need of them. The activities include production, distribution, exchange and holding of financial assets/instruments of different kinds by financial institutions, banks and other intermediaries of the market. The financial markets have two major components; they are money market and capital market. Financial Markets
Money Market
Capital Market
Securities Market
other forms of Lending And Borrowing Stock (Secondary)
New issue (Primary) Market
MONEY MARKET: The Money Market refers to the market where borrowers and lenders exchange short-term funds to solve their liquidity needs. CAPITAL MARKET: The Capital Market is a market for financial investments that are direct or indirect claims to capital (Gart, 1988).
SECURITIES MARKET: It refers to the markets for those financial instruments/claims/obligations that are commonly and readily transferable by sale. It has two inter-dependent and inseparable segments, the new issues (primary) market and the stock (secondary) market. SECONDARY MARKET: The secondary market enables those who hold securities to adjust their holdings in response to changes in their assessment of risk and return. PRIMARY MARKET: The Primary Markets provides the channel of sale of new securities.
OBJECTIVES OF THE PROJECT:
To find out the COMPETITIVE POSITION of LKP shares To promote the sales of LKP shares. To see the satisfaction level of
METHODOLOGY OF STUDY:
The research was carried out through survey method, fieldwork in order to collect data. Data collected through questionnaire and verbal discussion. The analysis of the data was done through simple statistical technique, such as drawing of percentage for generalization. The use of different types of graphs gives a better pictorial understanding about the whole project. PLACE OF STUDY: The study was conducted in different outlets in LUDHIANA, different people selecting through random sampling and LKP SHARES . SAMPLING PLAN: A sample design is definite plan for obtaining an overall analysis from a given population. It refers to the technique or the procedure, the researcher would adopt in selecting items to be included in the sample research should select design which would be reliable and appropriate for the study. SAMPLE SIZE: For the present study respondents have been selected from different places in LUDHIANA. The sample was taken as 50 respondents. SOURCES OF DATA: Data collection is an actively in marketing research. The design of the data collection method is the spine of research design. The sources of data are classified in to two types. The Primary Data. The Secondary Data.
PRIMARY DATA: The primary data are fresh data collected directly from the field and therefore consist of original information gathered for the specific purpose. It is expensive, laborious, and time consuming. But it assures a greater degree of accuracy and reliability as it comes straight from the horses month.
SECONDARY DATA: The secondary data are the data, which the investigator borrows from other who have collected it for various other purposes. Therefore it may not entirely be reliable. It is less expensive and involves less expensive and involves less time and labor than the collection of primary data. The Sources of collecting Data: I. II. III. IV. V. Reports and publication of Government department and international bodies. Newspaper, magazines, trade journals. Publication of books company records, brochures, catalogues and other documents. Data related by statistical organization. In this study the main sources of data collection is the primary data using the method of structured questionnaire.
Sampling Procedure: For a statistical survey of a population, the investigator may collect information from each and every unit belonging to the population or he may
collect information from some selected representative units only. The group of representative units from which information is collected is called sample. A sample is a representative position of the population. A statistical survey in which a sample is made use of is known as sample survey. The procedure of extracting a sample from a population is called as sampling procedure. Since validity of results of a survey depends mainly on the selection of the sample, the sample should be obtained with utmost care. Important methods of sampling procedure are:
i. ii. iii.
Random sampling. Judgment sampling. Quota sampling.
Random Sampling: A sampling procedure in which units are selected in such a way that all the units in the population have equal change of being selected is random sampling.
Judgment Sampling: When the population is small the investigator personally, according to his judgment way select the units which from the sample, such a sample is called purposive or a judgment sampling. Quota Sampling: If the population has various categories of units the investigators may decide to fix specified quotas for representation for all major categories. In this study Random sampling method is used. FIELD WORK:
This study involves the field work of around 45 days, wherein the target segment i.e. consumers were contacted individually. Prepared questionnaire were administrated to them and answers were collected. Fieldwork was done in different areas in LUDHIANA. The study was conducted from LKP SHARESThe Study attempts to analyze and determine The position of LKP SHARES in Securities Market.
Company Profile Of LKP SHARES LKP A legacy in financial expertise
From a humble beginning in 1948,LKP shares today is a well established and dynamic broking house in India. known for its research ,state of-the-arts system and innovative processes ,LKP offers a single window advantage to its client for all capital and money related activities. LKP Shares offer wide range of services including Equities Broking in cash and Derivatives markets ,Internet based trading, DP Services ,Research ,Debt and Merchant Broking, Merchant Banking (cat.1),Merger and Acquisition,Primarymarket,Commodities Trading ,Mutual Fund Distribution,IPO and Life Insurance. Entertaining no subjective judgement and certainity no guesswork ,LKPs research findings are scrutinized minutely to provide our clients with a distinct advantage in the quickest possible time using cutting edge resources. The research team interacts with the customers sharing new investments ideas and answering your queries.
All our clients are kept well informed 24/7 through website www.lkpsec.com,Emails ,SMS& a bouquet of research products. Analysing raw data,observing current trends ,applying breakthrough insightsThats what research team at LKP do .Dedicated analysts who are always thinking how to reap the maximum benefit from emerging opportunities for their customers.
Inside Out
-Tracks the trades done by the insiders of the company ,like Promoters,Deirectors and Employees.
-A report that captures the open interest of the futures contract on all the indices and stocks in the derivatives segments.
Future Tracks
SERVICES
LKP ONLINE-The only company to offer 2 trading softwares for the clients to choose from. LKP BOSS-A unique service for clients to view their data on the internet. PMS-Portfolio Management Services An exclusive service designed for privileged clients like you who wish to invest but are too busy to spare enough time to manage their portfolio.
TECHNOLOGY BASED PRODUCTS

LKP LIVE CHAT-Connects all the dealing offices across India to the Head Office on the net during market hours for timely and authentic information sharing. LKP LIVE WIRE-A sms based broadcasting service to keep the client updated about the development in the market. TELE CONFERENCE CALLS-Telephonic calls connecting all branches for dissentimention of all information.
PRODUCTS
EQUITY
MUTUAL FUNDS
DERIVATIVES
Demat account Definition: De-mat account is a safe and convenient means of holding securities just like a bank account is for funds. Today, practically 99.9% settlement (of shares) takes place on De-mat mode only. Thus, it is advisable to have a Beneficiary Owner (BO) account to trade at the exchanges. Benefits Of De-mat Account:
1. A safe and convenient way of holding securities (equity and debt
instruments both). 2. Transactions involving physical securities are costlier than those involving dematerialized securities (just like the transactions through a bank teller are costlier than ATM transactions). Therefore, charges applicable to an investor are lesser for each transaction. 3. Securities can be transferred at an instruction immediately. 4. Increased liquidity, as securities can be sold at any time during the trading hours (between 9:55 AM to 3:30 PM on all working days), and payment can be received in a very short period of time. 5. No stamp duty charges. 6. Risks like forgery, thefts, bad delivery, delays in transfer etc, associated with physical certificates, are eliminated. 7. Pledging of securities in a short period of time. 8. Reduced paper work and transaction cost. 9. Odd-lot shares can also be traded (can be even 1 share). 10. Nomination facility available. 11. Any change in address or bank account details can be electronically intimated to all companies in which investor holds any securities, without having to inform each of them separately. 12. Securities are transferred by the DP itself, so no need to correspond with the companies. 13. Shares arising out of bonus, split, consolidation, merger etc. are automatically credited into the De-mat account of the investor. 14. Shares allotted in public issues are directly credited into De-mat account of the applicants in quick time.
Opening a De-mat Account To start dealing in securities in electronic form, one needs to open a De-mat account with a DP of his choice. An investor already having shares in physical form should ensure that he gets the account opened in the same set of names as appearing on the share certificate; otherwise a new account can be opened in any desired pattern by the investor. Note:

The agreement required to be signed by the investor details the rights and duties of the investor and DP. DP may revise the charges by giving a 30 days prior notice. SEBI has rationalized the cost structure for inaction by removing account opening charges, transaction charges for credit of securities and custody charges, effective from January 28, 2005.
Maximum Number of holders in a De-mat Account A maximum of three persons are allowed to open a joint De-mat account in their names.
DEMATERIALISATION Definition: Dematerialization is the process of converting physical shares (share certificates) into an electronic form. Shares once converted into dematerialized form are held in a De-mat account. Dematerialization Process: An investor having securities in physical form must get them dematerialized, if he intends to sell them. This requires the investor to fill a De-mat Request Form (DRF) which is available with every DP and submit the same along with the physical certificates. Every security has an ISIN (International Securities Identification Number). If there is more than one security than the equal number of DRFs has to be filled in. The whole process goes on in the following manner :--
THINGS INVESTORS SHOULD KNOW ABOUT ACCOUNT OPENING AND DEMATERIALISATION
Providing the bank account details at the time of account opening It is mandatory for an investor to provide his bank account details at the time of opening a De-mat account. This is done to safeguard investor's own interests. There are two major reasons for this: 1. The interest and dividend warrants can't be en-cashed by any unauthorized person, as the bank account number is mentioned on it. 2. It is convenient and time saving, as dividends and interests given by the companies can be directly credited to the investor's bank account (through ECS facility, wherever available). Change in bank account details It is possible for an investor to make changes to the details of his bank account. The investor must inform any change in his bank account details to his branch. This enables him to receive the cash corporate benefits (such as dividends, interests) directly into his account in time and discourages any unauthorized use by any second party. Change in the address of investor as provided to the branch Any change in your address should be immediately informed to branch. This enables DP to make necessary changes in the records and informing the concerned companies about the same. Opening multiple accounts An investor is allowed to open more than one account with existing DP or with different DPs. Minimum balance of securities required in De-mat account There is no stipulated minimum balance of securities to be kept in a De-mat account. Account opening and ownership pattern of securities One must make sure to open a De-mat account in the same ownership pattern in which the physical securities are held. For example: If you have two share certificates, one in your individual name (say 'X') and the other held jointly with
some other individual (say 'XY'), then in such a case you will have to open two different accounts in respective ownership patterns (one in your name i.e. 'X' and the other account in the name of 'XY'). Same combination of names on certificates but different sequence of names on the certificates or De-mat account Regulations provide that the client receives a contract note indicating details like order number, trade number, time, price, brokerage, etc. within 24 hour of the trade. In case of any doubts about the details of the contract note, you (investor) can avail the facility provided by NSE, wherein you can verify the trades on your website www.nseindia.com/content/equities/eq_trdverify.htm. The Exchange generates and maintains an audit trail of orders/trades for a number of years, and you can counter check details of order/trade with the Exchange. Holding a joint account on "Either or Survivor" basis like a bank account No investor can open a De-mat account on "E or S" basis like a bank account. Allowing somebody else to operate your De-mat account It is possible for an account holder (Beneficiary Owner) to authorize some other person to operate the De-mat account on his behalf by executing a power of attorney. After submitting the power of attorney to the DP, that person can operate the account on behalf of the beneficiary owner (BO).. Addition/deletion of the names of the account holders after opening the account It is not possible to make changes in the names of the account holders of a BO account. A new account has to be opened in a desired holding/ownership pattern. Closing a demat account and transfer of securities to another account with same or different DP An investor, if he wants, can also close his demat account with one DP and transfer all the securities to another account with existing or a different DP. As per a SEBI circular issued on November 09, 2005, there are no charges for account closure or transfer of securities by an investor from one DP to another Freezing/Locking a demat account The account holder can freeze his demat account for a desired time period. A
frozen account prevents securities to be transferred out of (Debit) and transferred into (Credit) the account. Dematerialized shares do not have any distinctive number Dematerialised securities are fungible assets. Therefore they are interchangeable and identical.
Rematerialization
The process of getting the securities in an electronic form, converted back into the physical form is known as Dematerialization. An investor can rematerialize his shares by filling in a Remat Request Form (RRF). The whole process goes on as follows: ---
Note:
Depository - An organization that facilitates holding of securities in the electronic form and enables DPs to provide services to investors relating to transaction in securities. There are two depositories in India, namely NSDL and CDSL. As per a SEBI guideline, the minimum net worth stipulated for a depository is Rs.100 crore. NSDL/CDSL - The securities are held in depository accounts, like the funds are held in bank accounts. There are two depositories in India namely NSDL and CDSL. NSDL (National Securities Depository limited) was established in August 1996 and is the first depository in India. CDSL (Central Depository Securities Limited) is the other depository and was established in 1999. DP (Depository Participant) - A Depository Participant can be a financial organization like banks, brokers, financial institutions, custodians, etc., acting as an agent of the Depository to make its services available to the investors. There are a total of 1334 DPs registered with SEBI, as on March 31, 2009 and each DP is assigned a unique identification number known as DP-ID.
Trading account:
It is that type of account with the help of which a De-Mat account holder can buy or sell shares. LKP SHARES Provide their customer software Trade Terminal for trading by free of cost and unlimited number of scripts.
Formalities required for opening of De-Mat and Trading a/c in LKP SHARES. For Individual PAN Card(compulsory for all joint holders) Address proof of all joint holders Specimen copy of cheque For NRI Foreign and Indian Address proof PAN Card(compulsory) Bank a/c indicating type of a/c as NRE/NRO Specimen copy of cheque For HUF Address proof and identity proof of karta PAN Card of HUF(compulsory) Specimen copy of cheque Declaration giving details of the family members of the HUF with their names, date of birth & relationship with the karta.
:-
COMPARITIVE STUDY BETWEEN DIFFERENT BROKERAGE FIRMS:
Icici
A/C opening charge-750/Name of the software used- Trader Terminal. Software installation charge- Nil. No. of scripts provided by the software- Unlimited. Maintainance charge- Nil. Exposure- 8 times (intra day) 3 times (delivery). Name of the bank with the help of which customer get the facility of net banking- HDFC Bank, Axis Bank, ICICI Bank. Services provided- Equity,IPO,MF,PMS,Commodities,Insurance,Wealth Management Services, Mortgages. DP sells charge- 15 per instruction + service tax. Brokerage- 0.05% intraday 0.50% deliveries. Transaction Report- SMS, mail, daily courier, Prepaid Scheme- Not available. Types of trading accounts provided- De-Mat a/c, Trading a/c , Margin a/c.
Network- 1341 branches customers. Margin money-Minimum Secrecy- Telephone logger with recorder. Prepaid Scheme- Not available. Types of trading accounts provided- De-Mat a/c, Trading a/c , Saving a/c. Network- 2124 branches across the countries and 19 foreign branches. Margin money- Rs.975/-
and 800000
2555/-
Secrecy- Password provided to the customers and it can be changed by the customer only.
A/C opening charge- 900/Name of the software used- PIB(Power India Bulls) Software installation charge- 750/No. of scripts provided by the software- unlimited Maintenance charge- nil
Exposure- 20 times delivery. Name of the bank with customer get the facility HDFC,IDBI,ICICI and Axis Services provided- Equity, Housing Loan, Personel Loan, Insurance. DP sell charge- 10/Brokerage- Intraday-.03% & Delivery-.50% Transaction Report- Through mail & courier(Free of cost) Prepaid Scheme- not available.
intraday and 8 times
the help of which of net bankingBank.
Types of trading accounts provided- Cash a/c , Intra a/c, Margin a/c. Network- 718 branches and 4500000 customers across the country. Margin money- NIL Secrecy- use logger phone so that the broker cannot go beyond their word.
A/C opening Name of the software used- Java Software installation charge- 500/Maintenance charge- 300/Exposure- 4 times( For Intraday)
charge- 415/-
Name of the bank with the help of which customer get the facility of net banking- HDFC, ICICI , AXIS Bank, City Bank, Standard Chartered Bank. Services provided- Equities,Derivatives,ebroking,PMS,IPO,Commodities,Depository Services. DP sell charge- included in the a/c opening. Brokerage- intraday-0 .03% & Delivery-0.30% Transaction Report- Through Courier(Free of Cost) Prepaid Scheme- not available. Types of trading accounts provided- De-Mat a/c, Trading a/c ,Bank a/c. Network- 5,30,234 customers in over 377 cities and 1200 business locations Margin money- it is not restricted. Secrecy- 128-bit SSL technology to ensure the highest security on online transactions.
A/C opening chargeName of the software Software installation charge-NIL Maintainance charge-Rs.50/-p.a Exposure- 5 times(For Intraday)
750/used- Java
Name of the bank with the help of which customer get the facility of net banking- ICICI bank, AXIS bank, HDFC bank, IDBI. Services provided- Equity Trading,Derivatives,Forex,Commodity,IPO,MF & Insurance. DP sell charge- 12/Brokerage- intraday-0.05%-0.07%& Delivery-0.25%-0.40% Transaction Report- By mail(Free of Cost) Prepaid Scheme- not available. Types of trading accounts providedDe-Mat a/c ,Trading a/c ,Commodity a/c. Network- 10000 outlet in5000 different cities and 22 lakh customers. Margin money- it is not restricted. Secrecy- Extra Security Features with Security Token which is the most secure and tested technology in the computer world. Customers account is safeguarded with a unique security number that changes every 32 seconds.
A/C opening charge- 450/Name of the software used- Odin Software installation charge- 900/Maintenance charge- 250/- from 3rd year.
Exposure- 20 times for intraday. Name of the bank with the help of which customer get the facility of net banking- AXIS bank ,ICICI bank, HDFC bank. Services provided- Equity, Commodities,Insurance,Wealth Management Services,Insurance,Investment Banking. DP sell charge- 8/Brokerage- intraday-.03% & Delivery-.3% Transaction Report- Through mail(Free of Cost) Prepaid Scheme- Not available. Types of trading accounts provided- De-Mat a/c, Trading a/c, Margin a/c. Network- 1837 locations more than 498 cities. Margin money-50000/- for R-ALLY & R-ALLY Lite. 10000/-for R-ALLY Pro. Secrecy- Password provided to the customer has to change every after 15 days.
A/C opening charge- 750/Name of the software used- Java ssn. Software installation charge- nil Maintenance charge- unlimited Exposure- 4 times for intraday and delivery both. Name of the bank with the help of which customer get the facility of net banking- AXIS bank, HDFC bank, UBI, IDBI,City Bank. Services provided- Equity,IPO,MF,Derivatives,Commodities. DP sell charge- NIL Brokerage- intraday-0.05%-.07% & Delivery-.25%-.40% Transaction Report- Through mail(Free of Cost) Prepaid Scheme- yes Types of trading accounts provided- Classic a/c (for sudden user) Spend Trade a/c(for frequent user)
Network- 510 centers across 170 cities 2,18,000 customers. Margin money- Rs.5000/Secrecy- Security Socket Layer(SSL),a security that the information transmitted between customer and agent , given by Versign , universally accepted world wide web.The security
encripton level in Sharekhan is 128 bit.
LKP SHARES
A/C opening charge- 799/Software installation charge- NIL Maintenances charge- NIL Exposure- 5 times the transaction limit to sell stock from DP account. Name of the bank with the help of which customer get the facility of net bankingHDFC& Axis Bank. Services provided- Equity,MF,Commodities,Derivatives,IPO,PMS. DP charge- First year Nil, Rs. 200 SECOND YEAR ON WARDS, Prepaid Scheme- not available. Types of trading accounts provided- De-Mat a/c.
Minimum initial Margin Amount- cash-50000 .
A/C opening charge- 731/Name of the software used- Odin. Software installation charge- NIL Maintenances charge- 300/Exposure- 4 times, and if the person cant return money within 5 days then extra 15 days he will get and 16% charge will be taken for that. Name of the bank with the help of which customer get the facility of net banking- AXIS bank, ICICI bank, HDFC bank, SBI. Services provided- E broking, PMS, Investment advisory, Wealth Management Services, Commodity Trading. DP sells charge- 12/Brokerage- intraday-.03% & Delivery- .3% Transaction Report- Through courier(Free of Cost) Prepaid Scheme- Not available. Types of trading accounts provided- De-Mat a/c, Trading a/c , Margin a/c. Network- 120 branches across 120 cities and 31 regional offices. Margin money- 5000/36 info@mbahotspot.com
Secrecy- Log in ID and regular basis and recorder.
Password change on a telephone with
A/C opening charge- 799/Name of the software used- Sun Java. Software installation charge- NIL Maintenances charge- 500/- from 2nd year. Exposure- 5 times for intraday. Name of the bank with the help of which customer get the facility of net banking- HDFC ,SB I, ICICI, Axis Bank. Services provided- Equity,IPO,PMS,Derivatives,Mutual Funds. Brokerage- Delivery-.50% & Intraday-.05% Transaction Report- Through mail/courier(Free of cost) Prepaid Scheme- not available. Types of trading accounts provided- De-Mat a/c, Trading a/c, Margin a/c. Network- 480 branches in 230 cities. Margin money- 5000/Secrecy- password cannot be accessed through internet.HDFC Secuerities offer the highest
level of security such as 128-bit encrypton and SSL(Secured Socket Layer) technology.
Comparative Analysis of charges and facilities provided by different companies
Company
Account Opening
Margin Money
Brokerage IntraDelivery(%) 0.05-0.50 0.06- 0.59 0.075- 0.05 0.03- 0.30 0.025-0.25 NIL 0.03- 0.30 0.03- 0.30 0.05- 0.25 0.03- 0.30 0.05-0.50
AMC
Exposure (for intra)
branches
India infoline Kotak securities ICICI direct Motilal oswal Religare LKP SHARES Geojit India bulls Reliance money Share khan Hdfc
38
750/750/500/415/299/799/650/900/750/750/799/-
10,000/5000/975/Not Restricted 5000/5000/Nil Nil Not Restricted 5000/5000/-
250/360/450/300/Nil 200/Nil Nil 50/500/500/from 2
8 times 4 times 5 times 4 times 20 times 5 times 20 times 20 times 5 times 4 times 5 times
607 890 2124 430 1837 120 500 718 10000 250 NA
info@mbahotspot.com
nd yr
Graphical representation Of Survey Report
Customer awareness towards Share Market
80 70 60 50 40 30 20 10 0 CUSTOMER AWARENESS TOWARDS SHARE MARKET
AWARE NOT AWARE
TOTAL 100
INTERESTED IN SHARE MARKET- 25 NOT INTERSTED IN SHARE MARKET -75
Customer holding demat a/c
90 80 70 60 50 40 30 20 10 0 CUSTOMER HAVING DEMAT A/C
Having Not Having
TOTAL- 100 NOT HAVING DEMAT ACCOUNT-15 HAVING DEMAT ACCOUNT- 85

Out of 150 people who were interested in share market 100 peoples already had demat a/c, and 50 doesnt have demat a/c.
Customers holding demat a/c in different broking firms
30 25 20 15 10 5 30
18
15
10 8 6 5
Column2
T0TAL CUSTOMERS 100
The graph indicates distribution of number of customers of different broking firms among hundred customers who are already having demat account.
Customer Segmentation
TOTAL -100 ONLINE CUSTOMERS -30 OFFLINE CUSTOMERS -70
Among the 100 customers who are having demat account in various broking firms the pie chart shows that 30%of the customers are doing online trading, and 70% of the customers are offline trading in the share market.
The graphical representation shows the number of customers who are satisfied or unsatisfied with the various broking firms operating in the market.
Findings
Brokerage of India infoline is higher than Others broking firms like Religare,Motilal Oswal,Indiabulls,they are charging 0 .03% for Intraday and 0 .30% for Delivery where India Infoline is taking 0 .05% for Intraday and 0 .50% for Delivery. Margin money of India infoline is higher than other firm like Indiabulls,Geojit,Motilal Oswal,there is no restriction of margin moneye.But in India Infoline,the minimum margin money should be 5000/2555 rs.. Exposure is less than other firms. India Infoline offers eight times exposure on margin where as Religare and Indiabulls offer twenty times exposure on margin money. HDFC, ICICI direct provide their customers three types of account (de-mat a/c, trading a/c, bank a/c) but India infoline provide only De-mat a/c and Trading a/c. Religare takes Rs.299 for lifetime services, where as India infoline takes Rs.555. Relationship manager changes many times, it creates problem for the offline customers . Securities are not so much reliable. India Infoline has hidden charges, Customer are not much aware about that. Customer satisfaction of India infoline not so good. Most of the customers are trading offline. Most of the customers approach towards the broking firm is through the relationship manager. Most of the people are not much aware of share market and its benefit.
Recommendation
To increase awareness about Share Market and the name India Infoline itself, the company should organize campaign. The campaign can be weakly, monthly, yearly, it will give a good result to the company to capture market in the competitive position. The company should reduce the margin money. It can help to acquire more customers, if the firms bring plans for no boundation of margin money. The Company should increase their focus on the less margin money customers also .It can help to make more customers of low margin money which can increase the revenue of the firm. The Relationship managers focus only to the high margin money customer because from them they will get high brokerage that should not be happened from the less margin money customer. Transaction error should be avoided .Transaction should be done properly, taking in consideration that it is one of the most required quality of a firm. Wrong transaction or default transaction may lead the prestige of the company to be down. Brokerage rate should be reduced. Religare,Motilal Oswal,Indiabulls, are charging as 0 .03% for Intraday and 0 .30% for Delivery where as India Infoline is charging 0 .05% for Intraday and 0 .50% for Delivery.Though it is negotiable but for high margin money customer not for less margin money customer. The Company should increase Exposure. It is the good tool to capture the market.
Conclusion:
I am much thankful to lkp shares for providing me the opportunity for doing training programme in the organization as management trainee. While doing my sip in the reputed broking firm I had got a chance for knowing and analyzing the share market. I was also able to know about the business environment and business ethics of the business world. I also came to know about what does a firm or an organization require or wants from a employee or a trainee.
LIMITATIONS: the project survey is carried out only in ludhiana region the results are based only according to customers response which may vary. Sample size of survey to determine the position of the firm is only 100, hence the level of significance may vary. brokerage rate of the different firms are based on the information collected by me via visiting the broking firms and using website of the firms which may vary. The project survey for comparison was carried only on the basis of demat account.
BIBLIOGRAPHY
I had collected the datas from various recourses from Internet,Library,Company itself.The sources are given below..
1. www.traderji.com 2. reliance money obtain approval for acquiring stake in nmce www.reliancemoney.com 3. executive summary available at www.indiainfoline.com accessed 10 July 2009 4. annual audited consolidate results available at www.www.motilaloswal.com. 5. www.5paisa.com 6. www.indiabulls.com 7. www.icicidirect.com 8. www.sharekhan.com 9. www.tradersedgeindia.com 10. www.tradingpicks.com 11. www.masteroftrading.com 12. www.kotaksecurities.com 13. www.religareonline.com 14. www.angeltrade.com 15. www.google.com 16. www.scribd.com
QUESTONARIE FOR CUSTOMERS
Visit www.mbahotspot.com for more 1) You are customer of
2) For how many years are you investing in share trading? a)6 months or less than 1 year b)1 year c)greater than1 year
3) How you came to know about .? a)internet b)news paper c) friend d)rm approach e)others
4) Are you trading online or offline? a)online b)offline
5) Are you satisfied with the broking firm services? Service Online Offline Transaction Secrecy Customer care Sms Satisfied Unsatisfied
6) How would you categorize the firm? a)Excellent b)Good c)Ok d)Bad 7) Would you like to change or shift to other broking firm? a)yes b)no
8) Which broking firm you would like to shift? 50 info@mbahotspot.com
Visit www.mbahotspot.com for more a)Share khan b)India bulls c)India infoline d)Il&fs e)Religare f)Motillal oswal g)Kotak securities h)Icici direct i)others
9) Do you have any suggestion for the broking firm? .
Name: Phone no: Date:
QUESTONARIE FOR BROKERAGE FIRM
1) What is the rate of your brokerage? Intra day 51 info@mbahotspot.com delivery
Future
option
2) What is the margin for De-mat A/c? 3) Do you have lifetime facility? a) Yes b) no
4) The broking firm is registered with? SEBI IRDA NSE BSE 5) What are your products? Equity Mutual funds Demat Gold coins Derivatives Commodities Insurance Others
6) Which is the most popular product? . 7) Do you provide both online and offline facility? a)onine only b)offline only c)both 52 info@mbahotspot.com
Visit www.mbahotspot.com for more 8) What is the name of the terminal or what kind of software is used for online trading? 9) The transaction report is provided to customer through ? a)sms b)courier c)email d)call 10) How many branches do you have in CITY NAME/India?
..
11)Does your brokerage firm have service? a)pre paid b)post paid 12)How does the secrecy of the customer is maintained? ..
Name: Designation: Phone no: Broking firm: Date:

Project Report On Finance LKP Shares

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Project Report On Finance LKP Shares

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COMPARATIVE STUDY OF LKP SHARES WITH OTHER BROKING FIRM

UNDER THE GUIDANCE OF

COLLEGE NAME CITY NAME-21

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other forms of Lending And Borrowing Stock (Secondary)

New issue (Primary) Market

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OBJECTIVES OF THE PROJECT:

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Random sampling. Judgment sampling. Quota sampling.

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Company Profile Of LKP SHARES LKP A legacy in financial expertise

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TECHNOLOGY BASED PRODUCTS

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THINGS INVESTORS SHOULD KNOW ABOUT ACCOUNT OPENING AND DEMATERIALISATION

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COMPARITIVE STUDY BETWEEN DIFFERENT BROKERAGE FIRMS:

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intraday and 8 times

the help of which of net bankingBank.

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encripton level in Sharekhan is 128 bit.

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Minimum initial Margin Amount- cash-50000 .

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Secrecy- Log in ID and regular basis and recorder.

Password change on a telephone with

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Comparative Analysis of charges and facilities provided by different companies

Exposure (for intra)

10,000/5000/975/Not Restricted 5000/5000/Nil Nil Not Restricted 5000/5000/-

250/360/450/300/Nil 200/Nil Nil 50/500/500/from 2

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Graphical representation Of Survey Report

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Customer awareness towards Share Market

80 70 60 50 40 30 20 10 0 CUSTOMER AWARENESS TOWARDS SHARE MARKET