INDUSTRY OVERVIEW

Stock exchanges to some extent play an important role as indicators, reflecting the performance of the countrys economic state of health. Stock market is a place where securities are bought and sold. It is exposed to a high degree of volatility; prices fluctuate within minutes and are determined by the demand and supply of stocks at a given time. Stock brokers are the ones who buy and sell securities on behalf of individuals and institutions for some commission.

The Securities and Exchange Board of India (SEBI) is the authorized body, which regulates the operations of stock exchanges, banks and other financial institutions. The past performances in the capital markets especially the securities scam by Harshad Mehta has led to tightening of the operations by SEBI. In addition the international trading and investment exposure has made it imperative to better operational efficiency. With the view to improve, discipline and bring greater transparency in this sector, constant efforts are being made and to a certain extent improvements have been made.

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HISTORY
HISTORY OF THE STOCK BROKING INDUSTRY
Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years ago. The earliest records of security dealings in India are meager and obscure. By 1830's business on corporate stocks and shares in Bank and Cotton presses took place in Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers recognized by banks and merchants during 1840 and 1850. The 1850's witnessed a rapid development of commercial enterprise and brokerage business attracted many men into the field and by 1860 the number of brokers increased into 60. In 1860-61 the American Civil War broke out and cotton supply from United States of Europe was stopped; thus, the 'Share Mania' in India begun. The number of brokers increased to about 200 to 250. However, at the end of the American Civil War, in 1865, a disastrous slump began (for example, Bank of Bombay Share which had touched Rs 2850 could only be sold at Rs. 87). At the end of the American Civil War, the brokers who thrived out of Civil War in 1874, found a place in a street (now appropriately called as Dalal Street) where they would conveniently assemble and transact business. In 1887, they formally established in Bombay, the "Native Share and Stock Brokers' Association" (which is alternatively known as "The Stock Exchange"). In 1895, the Stock Exchange acquired a premise in the same street and it was inaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated.

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ABOUT SHAREKHAN COMPANY INTRODUCTION

Sharekhan is stock broking company. Share Khan comes under retail arm of SSKI (Shripal Sevantilal Kantilal Ishwarlal) investors Services Pvt. Ltd. offers World-class facilities for buying and selling Shares on BSE and NSE, Demate Services (DP) Derivatives (F&O). SSKI group also comprises of Institutional broking and Corporate Finance. Sharekhan does not claim expertise in too many things. Sharekhan's expertise lies in stocks and that's what he talks about with authority. So when he says that investing in stocks should not be confused with trading in stocks or a portfolio-based strategy is better than betting on a single horse, it is something that is spoken with years of focused learning and experience in the stock markets. And these beliefs are reflected in everything Sharekhan does for you! Those of you who feel comfortable dealing with a human being and would rather visit a brick-and-mortar outlet than talk to a PC, you'd be glad to know that Sharekhan offers you the facility to visit (or talk to) any of our share shops across the country. In fact Sharekhan runs India's largest chain of share shops with over hundred outlets in more than 80 cities! What's a share shop? How do you locate a share shop in your city? Sharekhan is 80 years old company which is started online in the year 2000 & it is the first company who started online in 1984 they ventured into institutional broking& corporate finance. They have 14 branches, 400 franchises also having 466 shops in 210 cities. In Rajkot branch daily dealing Rs.16 crore & 400 crore daily dealing all over India. Almost 4000 employees and 100000 trading customers SSKI named its online division as SHARE KHAN and it is into retail Broking

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The business of the company overhauled 4 years ago on February 8, 2000.

It acts as a discount brokerage house to a full service investment solutions provider

It has a 150 member strong team. It has specialized research product for the small investors and day traders

Largest chain of share shops, 103 Franchisees & 17 Branches across India.

It has $25m/trades every day. Leading player today with 20% market share Over 8000 online clients The site was also launched on February 8, 2000 and named it as www.sharekhan.com

The Speed Trade account of share khan is the next generation technology product launched on April 17, 2002

SpeedTradePlus was launched on October 28, 2002 for trading in Derivatives

It offers its customers with the trade execution facilities on the NSE, for cash as well as derivatives, depository services

Ensures convenience in trading experience: Share Khans trading services are designed to offer an easy, hassle free trading experience, whether trading is done daily or occasionally. The customer will be entitled to a host of value added services, in the investment process depending on his investing style and frequency. And offers a suite of products and services, providing the customer with a multi-channel access to the stock markets.

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It gives advice based on extensive research to its customers and provides them with relevant and updated information to help him make informed about his investment decisions.

Share khan offers its customers the convenience of a broker-DP. It helps the customer meet his pay-in obligations on time thereby reducing the possibility of auctions. The company believes in flexibility and therefore allows accepting late instructions without any extra charge. And execute the instruction immediately on receiving it and thereafter the customer can view his updated account statement on Internet.

Sharekhan Depository Services offers demat services to individual and corporate investors. It has a team of professionals and the latest technological department. expertise dedicated exclusively to their demat

A customer can avail of Demat \ Remat, Repurchase,

Pledge, Transmission facilities at any of the Share khan branches and business partners outlets.

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CURRENT POSITION
VISION
To empower the investor with quality advice and superior service to help him take better investment decisions. We believe that our growth depends on client satisfaction.

MISSION
To provide the best customer service and product innovation tuned to diverse needs of clientele Continuous up-gradation with changing technology, while maintaining human values. Respond to progressive globalization and achieving international standard. Efficiency and effectiveness built on ethical practices.

CORE VALUE
Customer satisfaction through Providing quality service effectively and efficiently Smile, it enhances your face value is a service quality stressed on periodic customer service Audits Maximization of stakeholder value Success through Teamwork, integrity and People

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MARKET COVERAGE
Ground Network Largest in India
122 Franchisees and 28 branches

Covers 82 cities in 17 states across India Trade execution facility on BSE and NSE for Cash as well as Derivatives Depository/Demat account services Personalized Sharekhan research advice Uniform service standards

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SEVEN PS OF SHAREKHAN
PRODUCT
Product Variety
Share khan offers 3 types of online trading accounts for its customers specially designed according to their volume in share trading. Those 3 varieties are: Classic- for retail investors Speed Trade: for high net worth investors with large and active equity portfolio who need to monitor and action swiftly Speed trade Plus- for high net worth investors dealing in derivative market.

Quality
User Friendly, attractive & colorful Website

Design
The website of Share khan namely www.sharekhan.com has been specially designed to facilitate its users to buy and sell shares in an instant at anytime and from anywhere they like. The site is user friendly allowing even a layman to easily operate without any hassles.

Features:
Share khans product comes with the following features: Trade execution in a fraction of a second! Single Screen Trading Terminal Real time streaming quotes. Price watch on any number of scripts. Hot keys similar to Brokers Terminal. Customized Alerts based on Multiple Parameters. Back up Facility to place trades on Direct Phone Lines.

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 Intraday charts, updated live, tick-by-tick. Instant Order\ Trade Confirmation in the same window Live margin, position, marked to market profit & loss report. Competitive Brokerage Flexibility to customize screen layout and setting Facility to customize any number of portfolios & watch lists Facility to cancel all pending orders at one click Facility to square off all transactions at one click Top Gainers, Top Losers, and Most Active, updated live. Index information; index chart, index stock information live. Market depth, i.e. Best 5 bids and offers, updated live for all scripts Online access to both accounts and DP Live updated Order and Trade Book. Details of pending executed and rejected orders. Online access to Customer Service 128 - Bit super safe encryption. Facility to place after market orders Online fund transfer facility from leading Banks Online intra-day technical calls Exhaustive database of over 2000 companies Historical charts and technical analysis tools Last but not the least, ideas that help you to make money!!!

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 Brand Name
The company as a whole in its offline business has named itself as SSKI Securities Pvt. Ltd -Sevaklal Sevantilal Kantilal and Ishwarlal Securities Pvt. Ltd. The company has preferred to name themselves under a Blanket Family Name. But in its online division started since 1997, the company preferred to name itself as SHARE KHAN. The Brand Name SHARE KHAN itself suggests the business in which the company is dealing so that the consumer could easily identify the product or service category.

Services
Share khan offers its customers, depository services and trade execution facilities for equities, derivatives and commodities backed with investment advice tempered by decades of broking experience. The teams of its dedicated analysts are constantly at work to track performance and trends. Dial-n-trade is also an exclusive service available to all Sharekhan customers for trading in shares via the telephone. On dialing the toll free number 1600-22-7050 and on entering the customers TPIN number, the customer will be directed to a telebroker who will buy or sell shares for him.

PRICE
List Price CLASSIC One time 750 registration fee Minimum Nil brokerage Charges Quarterly SPEED TRADE 1000 SPEED TRADE PLUS 1500

1000

1500

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 Brokerage
Share khan in its online business charges brokerage as follows: In equity Market On Trading: 0.1% In Derivative Market On Trading: 0.12% (Total brokerage) On Delivery: 0.1% On Delivery: 0.5%

Service Tax
8% on Brokerage

Turnover tax + Stamp duty

0.015% (Rs. 15 on every turnover of Rs. 100000)

Custody Charge
Re. 1 per script held per month.

Discounts
For investors with High Net worth, there are slabs in brokerage rates.

Payment Period
The transaction settlement date in the securities market is T+ 2 days i.e. the payment of the transaction taken place has to be made within two days of its occurrence.

Credit terms
Share khan allows its customers to trade up to 4 times i.e. by keeping 1/4th margin with them.

PROMOTION
Online share trading is totally a new concept in Indian Market. Generally investor doesnt like to come out from conventional way of share trading. Share khan has introduced this product in. The concept and

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Product are still new in the market. Therefore the company has undertaken extensive promotion campaign to create awareness about the product. Share khan adopts the following tools for promoting the product

Advertising
Company advertises its product through TV media on channels like CNBC, Print Media-in leading dailies and outdoors media. It advertises itself as an innovative Brand with a cartoon of tiger-called SHERU. Besides attractive and colorful brochures as well as posters are used giving full details about the product. Mails are sent to people logging on to sites like moneycontrol.com and rediff.com. Also, stalls are opened up now and then at places where prospective customers can be approached.

Sales Promotion
The Company offers Rs.500 instead of Rs.750 for corporate accounts (more than 20 accounts). Also, it provides online trading accounts for just Rs.300 for IIM students.

Sales Force
The Company has an aggressive sales force, which is given incentives, based on their sales. The sales force is given intensive training continuously.

Seminar
The Company also arranges seminar in corporate world for creating awareness about the product. Recently, it had organized for a seminar in ONGC, IIM.

Direct Marketing
Company emphasizes more on direct marketing, as many people are still not aware of this new way of smart trading. For this, the company

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recruits and trains sales representatives so as to explain the product and solve customer queries related to the product. This is the most effective way to communicate the three-in-one concept which company offers.

Telemarketing
This is another promotional tool company is using to boost up its sales. For this, the company collects the database of the people belonging to different professional segments.

PLACE
Share khan uses various channel alternatives to reach to its customers through Internet Tele Marketing Retail Share Shops Franchisee Owners Power Brokers Sales Force

Channels

Coverage
Access to the website from any part of the globe

Locations
Share khan has the largest chain of retail share shops in India. It has 180 share shops located in 90 cities all over India like Pune, Thane, Chennai, Kolkata, Banglore, Luckhnow, Darjleeng, Kanpur, Baroda, Midnapore, Surat, Delhi, Gaziabad, Hydrabad, Allahbad, etc.

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PEOPLE
Selection: Employees are selected on the basis of their experience and qualification as applicable to the job. Training: Intensive training is provided to the employees till a week once they join and even at times required after that. Motivation: The employees are motivated through incentives they are provided.

Employees

Research Team
Share khan has a team of dedicated analysts who have years of working experience in the industries that they track, and a proven track record in using their knowledge of the investment science to deliver results.

Customers
The heart of sharekhan is really treated loyally like the kings. The customer care, which comprises of highly trained executives operating from 9:30 to 8:00 p.m.

PHYSICAL EVIDENCE
In Ahmadabad, two franchise outlets are located in posh areas like Navrangpura and Maninagar. A new franchise is going to open up in Vastrapur.

Locality of the office

Office Environment
The ambience within the office is what can make the customer feel comfortable in trading. The cordial and friendly atmosphere at office is like a full time motivation for the employees.

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 Interiors and Infrastructure

The office is well furnished and has 24 computer terminals on which tick-by-tick price movements of the securities are displayed.

PROCESS
delivery of the service constitutes the process. Here, the process involves adding value or utility so that the customers get full satisfaction for the money spent by them.

In this service organization, the ways in which the customers receive

Here the process begins from the step when customer wants to open einvest account and ends when his account is actually activated.

All Indian residents and NRI are eligible to avail this service. Customers can open a sharekhan e-invest account by filling a single
application form. This form includes 9 agreements like 1. Main form with customer details 2. Agreement between sharekhan and client in respect of the ONLINEINVESTMENT SUPPORT service offered. 3. Agreement between the Depository Participant and the client for providing the transaction statement through Internet. 4. Irrevocable power of attorney 5. Agreement between the DP and the person seeking to open an account with the DP. 6. Maintenance of clients account on a running account bases by SSKI. 7. Agreement giving the right of lien on the credit balance of client in NSE trading. 8. Agreement giving the right of lien on the credit balance of client in BSE trading. 9. Risk disclosure document (cash segment)

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PRODUCTS OF THE SHAREKHAN COMPANY

ShareKhans product

Offline

Online

Other Services

Classic A/C

Speed Trade A/C

Other Services:
1. Dial-n-Trade 2. Depository Services 3. Commodity Trading 4. Derivative Trading 5. Mutual fund 6. Portfolio Management Services 7. Online IPO 8. Research Based Information Provided

OFFLINE
Offline A/c is the A/c for the investors who are not familiar with the use of computer. The A/C opening charges Rs.500(One time)

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 For 1st Year Demit A/C is Free, On 2nd Year AMC charge is applicable.

ONLINE Classic Account

A/C Opening Charges Rs.750 (onetime Charge). For 1st Year Demat A/C is Free, On 2nd Year AMC charge is applicable. Type with 7 banks through which one can transfer or withdraw his fund online. Which are as follows 1. HDFC Bank 2. IDBI Bank 3. UTI Bank 4. OBC Bank 5. CITY Bank 6. Indusind Bank 7. Union Bank of India

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Anyone who have A/C either of above banks they can use this facility. Otherwise one has to make fund transfer or withdraw by cheque. This account enables you to buy and sell shares through our website. You get features like a) Streaming quotes (using the applet based system) b) Multiple watch lists c) Integrated Banking, demat and digital contracts d) Instant credit and transfer e) Real-time portfolio tracking with price alert and, of course, the assurance of secure transactions.

Features of Classic Account that enables you to invest effortlessly

Online trading account for investing in Equities and Derivatives via sharekhan.com Integration of: Online trading + Bank + Demat account Instant cash transfer facility against purchase & sale of shares Make IPO booking You get Instant order and trade confirmations by e-mail Streaming Quotes Personalized Market Scan with your own customized stock Single screen interface for cash and derivatives Your very own Portfolio Tracker! System Requirements youll need access to a computer which has at least the following configuration: Pentium 3 PC, Minimum 128 MB RAM Windows 2000/XP Internet Connection Internet Explorer 6.0 Java enabled in IE ticker!

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 Speedtrade

A/C Opening Charges Rs.1000/-(onetime Charge). Monthly charges Rs.500/-(But if Client give Brokerage of Rs.1500/-in a Quarter, then Rs.1500/-that was charged of a Quarter will be Reimbursed). For 1st Year Demat A/C is Free, On 2nd Year AMC charge is applicable. Type with 7 banks through which one can transfer or withdraw his fund online which are as follows: 1. HDFC Bank 2. IDBI Bank 3. UTI Bank 4. OBC Bank 5. CITY Bank 6. Indusind Bank 7. Union Bank of India

Anyone who have A/C either of above banks they can use this facility. Otherwise one has to make fund transfer or withdraw by cheque.

Features of Speed Trade that enable you to trade effortlessly

Instant order Execution & Confirmation Single screen trading terminal Real-time streaming quotes, tic-by-tic charts Market summary (most traded scrip, highest value and lots of other relevant statistics) Hot keys similar to a brokers terminal Alerts and reminders

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 Back-up facility to place trades on Direct Phone lines Single screen interface for cash and derivatives System Requirements youll need access to a computer which has at least the following configuration: Pentium 3 PC Minimum 128 MB RAM Windows 2000/XP Dial-up Modem / Cable modem Internet Connection Account Internet Explorer 6.0 Java enabled in IE

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SERVICES

OF SHAREKHAN

Equity and Derivatives trading Depository services Mutual Funds Commodities trading DIAL-N-TRADE Portfolio Management Fundamental Research Technical Research

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POLICY AND PROCEDURES

Sharekhan as a SEBI registered intermediary is mandated to follow the rules regulations circulars of the exchanges and SEBI issued from time and operates through well defined procedures and policies. The following policies have been mandated by SEBI to be made available to the clients. It should not be construed that these are the only policies followed by Sharekhan.

A.Refusal of orders for Penny Stocks

Penny stocks are scrips which have a very low value and may or may not be illiquid. Most times there would be very few buyers /sellers for such scrips. The exchange (NSE and BSE) releases a list of such scrips and they are termed as illiquid securities. Sharekhan retains the right to term a particular scrip as illiquid/penny stock based on the parameters it deems fit. These parameters may include, the past volume of the scrip, the volatility in the scrip among others, whether trading in a particular scrip falls within the purview of fraudulent trades or trades deemed to be fraudulent under the SEBI - prohibition of fraudulent and unfair trade practices relating to securities market regulation 2003. Sharekhan reserves the right to facilitate clients for placing orders with regards to the penny stocks or illiquid scrips as described above. Sharekhan is not under any obligation to push orders which are in the nature of penny stocks/ illiquid scrips. Sharekhan does not encourage trades in penny stock. Sharekhan may permit trades in a penny or illiquid scrip subject to certain conditions, such conditions may include Submission of a declaration, by the client, such declaration would include the reasons for entering into the said transaction and also whether the client has abided by the all the relevant regulations. In case of a buy transaction the client may be asked to deposit the full value of scrip which the clients intends to purchase, in case of sale transaction, the scrip will necessarily be transferred to Sharekhan's margin account prior to placing the sale order. Assessment of the past trading pattern or records of the client prior to giving permission Conducting in person verification of the said client to establish the genuineness of the intended trade. Sharekhan reserves the right to refuse to place such orders whether or not the client fulfils the aforementioned conditions.

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B.Setting Up Client's exposure Limits

Exposure is allowed to the clients based on the margin available in form of funds or approved securities valued after deducting an appropriate haircut. Client is liable to pay applicable initial margins, withholding margins, special margins or such other margins as are considered necessary by the Exchange. Further Sharekhan at its discretion may collect additional margin or may even reduce the margin even though not required by the Exchange. Clients are supposed to maintain sufficient balance with Sharekhan pre trade depending on the channel through which they trade. Sharekhan may levy additional margins or relax the margins earlier imposed based on factors such as, client level positions, volatility in a particular stock or the market in general. Though it shall be our endeavour to ensure that a proper notice is sent to the clients, this may not always be possible taking into consideration the market scenario. Exposure allowed to clients may wary, basis the clients past trading performance, quality of collateral, market circumstances and dynamics and other such factors. Clients may trade themselves through the internet or may trade through the sub-broker or branch. For clients who trade through the internet, the exposure limit may be ascertained by them on the trading portal. Clients executing trades through sub broker or branches may check their exposure positions with the sub-broker/ Branch. Sharekhan shall not be responsible for any variation, reduction or imposition or the Client's inability to route any order through the Stock broker's website on account of any such variation, reduction or imposition of limits. Sharekhan may at any time, at its sole discretion and without prior notice, prohibit or restrict the Client's ability to place orders or trade in securities based on certain risk parameters.

C.Applicable Brokerage
The brokerage applicable shall be as agreed upon from time to time. In case of any modification in the brokerage rate, the client shall confirm the same as required by Sharekhan. The client agrees to pay to Sharekhan, brokerage, Exchange related charges, statutory levies and any other charges (including but not limited to security handling charges on settlement) as are prevailing from time to time and as they apply to the client's account, transactions and to the services that member renders to the client. Sharekhan does not charge brokerage more than the maximum brokerage permissible as per the rules and regulations and bye laws of the Exchanges/SEBI. However the minimum brokerage as stipulated by the exchanges will be levied. The brokerage shall be charged as a percentage of the value of the trade or as a flat fee or otherwise, together with the statutory levies as may be applicable

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from time to time on the same. In addition to the brokerage charged the following charges will also be levied.

Schedule of charges
1. Account opening fees 2. SEBI turnover fees as applicable 3. Exchange Transaction charges as applicable 4. Securities Transaction Tax (STT)* :- The STT rates will vary with regards to trades done on delivery basis, non delivery basis and trades done in the derivative segment . 5. Service tax * 6. Stamp duty: - State wise stamp duty as applicable will be levied. 7. Education Cess and higher Education Cess * 8. In addition to the above Sharekhan shall debit the demat charges to the trading account. 9. In case there are any bank charges or any other charges levied by the exchange or any other authority on account of any violation done by the client, the same shall be charged to 10. Delivery Handling Charges (DHC) would be levied on each sale transaction in case if the value of brokerage levied is less than Rs 16/-. The value of DHC would be difference of Rs 16/- and the brokerage charged. 11. In case where the brokerage levied as a percentage on the value of the shares/ contract is less than the minimum brokerage payable per share/contract. The client will be charged such minimum rate of brokerage per share instead of the percentage. *These are government levies and are subject to change from time to time and will be charged in addition to the brokerage as applicable All the above charges would be subject to change from time to time. Such changes shall be displayed on the website or such other URL used by Sharekhan from time to time.

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In case the brokerage rate is not specified on the brokerage chart within the KYC, the default brokerage as mentioned below will be applicable.

Default Brokerage Cash Market Brokerage

First Leg Second Leg(Same day Sq. off) Delivery Brokerage

%
0.10 0.10 0.50

Min. Paisa Per Share

5 5 10

Derivatives Segment
First Leg Same day square off Next day square off Futures % 0.10 0.02 0.10 Options % 2.50 2.50 2.50

Currency Derivatives
Futures % 0.10 Nil 0.10 Options % 2.50 nil 2.50

In case of futures, the minimum brokerage of 0.01paise per share will be charged. In case of futures options, minimum brokerage will be Rs. 100/- per lot or the above whichever is higher. In case of currency futures, the minimum brokerage of 0.01paise per quantity will be charged. In case of currency options, minimum brokerage will be Rs. 30/- per lot or the above whichever is higher.

Standard Brokerage Percentage Index / Stock Options Segment Min. amount per lot
100 90 80 70 60

Currency Options Segment Min. amount per lot

30 25 20 15 10

2.50 2 1.50 1 0.50

D. Imposition of Penalty / Delayed payment charges by either party, specifying the rate and period. Delay pay-in charges are levied to clients for non payment or delay in payment of their fund obligation on time which may be due on account of charges, margins or any other sum due to Sharekhan. Clients are required to pay margins before placing any trades. Clients are allowed to place margins in form of funds or

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securities. Exposure is given to the client based on the stocks submitted by the client towards margin to Sharekhan. Appropriate haircut is applied on such stocks. They are then expected to make the full payment for the purchase on the settlement date. In case there is a debit balance in the clients account, the same shall be liable for the delayed payment charges. The calculation of these charges is an automated process. The charges to be levied would be up to 2 % per month. These charges have been introduced so that they act as a deterrent for delaying the payment of funds. In case where any penalty / charges /fees / taxes etc. of whatever nature, is levied on Sharekhan on account of trades or orders placed by clients, such penalty /charges /fees / taxes etc. shall be debited to the client's account. E. Right to sell client's securities or close client's positions, without giving notice to the client on account of non payment of client's dues:Margin collection - Margin is collected upfront from the client's i.e. prior to executing any trades. Based on the margin thus available with Sharekhan - exposure is given to the client. The applicable margin may vary and the client may be asked to replenish the margin by tendering additional funds or securities. In accordance with Exchange guidelines, Sharekhan retains the right to square off the position without giving any notice to the client. The client agrees to pay for the shares purchased through Sharekhan before the pay-in date in order to enable Sharekhan to make the requisite pay-in to the exchange. In case the client fails to make the payment, Sharekhan may liquidate the securities in the clients account in order to ensure that adequate credit is received for the shares purchased. This square off may be done on or before the 5th day from the settlement date. The client also agrees to maintain adequate margin for the positions taken in any segment. However in case the credit available is lower than the minimum margin required, the client's positions would be liquidated in a manner that the there is no shortfall of margin. Sharekhan shall endeavour to ensure that adequate prior information is given to the client for such liquidation. It shall inform the client through the mobile number and or email id updated with Sharekhan. For clients to whom a login and password is given to access their account on the website www.sharekhan.com, or such other URL that may be provided by Sharekhan from time to time, where they are required to login and check the limit statement uploaded therein. It shall be the clients' responsibility to ensure that adequate credit balance is available in the account.

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 The above guidelines may be changed based on the discretion of Sharekhan and in terms of the market conditions. In cases where the market is volatile and there is a sudden spurt in scrip price then Sharekhan may square off position without any notice due to the paucity of time and other such circumstances Whenever Sharekhan endeavours that the positions are to be liquidated, it shall not be responsible for any liabilities in case the same cannot be liquidated. The priority of the positions to be squared off, i.e. which positions to be squared off first, would be at the discretion of Sharekhan. Sharekhan may follow the following priority for squaring-off positions:a) Lower Margin scrip's will be squared off first. b) Only futures position will be squared off (option position to be square off manually) c) In case where there is a position in cash and derivative segment, futures positions would be squared off first then cash positions would be square off in case shortfall still exist.

F. Shortages in obligations arising out of internal netting of trades

Internal Shortage Policy
BSE has a window wherein internal short deliveries can get auctioned as per the normal auction process. Internal short deliveries are not covered by the Auction conducted on the NSE. It is due to this limitation on the NSE we follow the procedure as mentioned below 1. The client may not receive shares on T+2 in case there is an internal shortage situation within Sharekhan, i.e. the buyer and seller are both Sharekhan clients and the seller defaults in delivery due to which the buyer may not receive the shares.

2. In case of an internal shortage, firstly the defaulting seller would

be debited with a value as on the previous day of the paying day + 30 % for the default till such time the auction process can be completed.

3. In case there is an internal shortage in BSE, the exchange

conducts an auction through which the shares would be purchased and delivered to the buyer. The seller would be debited at the rate at which the exchange would have purchased these

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shares. Additionally, brokerage, statutory costs and other incidental charges including penalty for non-delivery may be debited to the client. In case the exchange is unable to purchase these shares, the exchange will inform Sharekhan of a close out rate, at which the buyer would be allowed credit and the seller would be debited for the same amount. In case of any corporate action for internal shortages, if original trade was executed at cum-rate, then Sharekhan will repurchase the shares at ex-rate in its Internal Shortage a/c. The amount / quantity of corporate action, as applicable will be debited to the Sellers a/c and will be credited to the Buyers account. In case of securities being delisted from trading / unable to buy on account of corporate action, Sharekhan will close out internal shortages at last traded price / last traded cum rate price + 10 % (credit to buyer & debit to seller).

4. In case there is an internal shortage in NSE, Sharekhan purchases

the shares from the normal market and provides the shares to the buyer, on receipt of delivery. The defaulting seller would be debited with the rate at which these shares were purchased, including the brokerage, statutory charges and other incidental charges including penalty if any. In case of non receipt of delivery to purchase the shares, the buyer would be offered credit at a close out rate applicable on T+4 day + 3% or and the new seller would be debited at the same rate. In case where Sharekhan is unable to purchase the shares on account of the scrip being in buying circuit, the position would then be closed out on the closing price of the exchange on T+2 at the circuit percentage of 2 days (Maximum up to 20%). In case of any corporate action for internal shortages, if original trade was executed at the cum-rate, then Sharekhan will repurchase the shares at ex-rate in its Internal Shortage a/c. The amount / quantity of corporate action, as applicable will be debited to the Sellers a/c and will be credited to the Buyers account. In case of securities being delisted from trading / unable to buy on account of corporate action, Sharekhan will close out internal shortages at last traded price / last traded cum rate price + 10 % (credit to buyer & debit to seller).

5. Sharekhan may also levy charges on the defaulting seller for nondelivery of stocks within the stipulated time. G. Conditions under which a client may not be allowed to take further position or the broker may close existing position of a client /Temporary suspending or close a client's account at the client's request and Deregistering a client a) In the event where overall position in any scrip or derivative contract has reached the limit prescribed by regulators or exchanges. For example, in case of NRI clients where the PIS Limits are prescribed by RBI are breached or in case of Exchange

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wise, scrip wise limit prescribed by Exchanges for derivative contracts are breached. In all such cases the client may not be permitted to take additional positions b) Sharekhan has the right to stop or block the client to trade in case where there is a debit balance in his/her account. c) Sharekhan retains the right to block the client to take a position in certain specified scraps basis the risk management systems of Sharekhan. d) In case where Sharekhan is apprehensive the client to be an entity debarred by any regulatory authority, it shall retain the right to stop the trading activities of such a client. e) In case where Sharekhan perceives risk with regards to any regulatory action or with regards to delay or non payment of margin or any other obligation Sharekhan may temporary block or suspend the trades of such clients. f) In case where the client's account is dormant for a period of more than 3 months Sharekhan may mark such clients as inactive, and trades in the futures and options segment / Cash segment will be restricted till the receipt of the request from the clients for activating the account. g) In case where suspicious transactions are observed, including but not limited to off market transactions. h) In case where clients are not reachable at their contact details mentioned in the client registration form or in the client master changes form. i) In case where unprofessional, or unruly behaviour of the client is observed. j) In case of any ongoing dispute with the client, we may not permit the client to take further positions and may even close out his open positions. k) Further in case of clients breaching the risk parameters mentioned in point H above we may close the clients' positions without any intimation. In the event of death or insolvency of the client, winding up or liquidation or the client otherwise becoming incapable of receiving and paying for or delivering or transferring securities which the client has ordered to be bought

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or sold, the Stock Broker may close out the transaction of the client and the client or his legal representative as the case shall be would be liable for any losses, costs and be entitled to any surplus which may result there from.

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SWOT ANALYSIS
During this training at sharekhan, we had come to know the StrengthsWeaknesses-Opportunities-Threats for the company and it is very useful for a company to analyze them. Therefore, the SWOT analysis is presented here and the suggestions for maintaining strengths and removing weaknesses are explained.

Strengths:
Well-maintained infrastructure. Dedicated, Intelligent and Loyal staff. On-line trading products. Lowest brokerage and other charges w.r.t. Competitors. The best investment advice correct up to 70-90 % through dedicated Research and reports. Wide product range to enable the clients to choose the best alternative. One of the best DPs in India. A positive image in the existing clients.

Weaknesses:
Less awareness in the market. Time consuming process for account opening, resolving the problems of the customers, etc. Service quality is not maintained accordingly how they are promoted.

Opportunities:
Slope of stock market towards delivery based transaction. Large potential market for delivery and intra-day transactions. Open interest of the people to enter in stock market for investing. Attract the customers who are dissatisfied with other broker & DPs. An indirect opportunity generated by the market from its bullishness. Large untapped market in the Saurashtra region of Gujarat.

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 Threats:
Decreasing rates of brokerage in the market. Increasing competition against other brokers & DPs Poor marketing activities for making the company known among the customers. A threat of losing clients for any kind of weakness of the company. Losing the untapped market with the entry of the competitors.

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SERVICE BLUEPRINT OF SHAREKHAN LTD

The Blueprint will have 5 components Physical Evidence Customer Actions( Line of Interaction) Onstage Contact Employee Actions (Line of visibility) Backstage Employee Actions (Line of internal interaction) Support Processes

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