Final Projectcustomer Satisfaction Derrivative Market of Sharekhan

SHAREKHAN LIMITED
CMS GANPAT UNIVERSITY
Page 1
SHAREKHAN LIMITED
INTRODUCTION 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. Stockbrokers are the ones who buys and sells 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 Hasrshad 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.
Page 2
SHAREKHAN LIMITED
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. Thus in the same way, gradually with the passage of time number of exchanges were increased and at currently it reached to the figure of 24 stock exchanges.
Page 3
SHAREKHAN LIMITED
THE STOCK BROKING IN INDIA The functioning of stock broking in India was started in 1875. The BSE is oldest stock broking of India. History of Indian stocks trading starts with the 318 person taking membership in Stock Brokers Association and Native Share, which is known by name as Bombay Stock Exchange (BSE). In the year 1965, BSE got a permanent acknowledgment from Government of India which was most required. The National Stock Exchange arrives 2nd to the BSE in the terms of status. NSE and BSE represent themselves as the synonyms of the Indian stock market. History of stock market in India is almost same as history of BSE. An up-beat mood of marketplace was lost abruptly with the Harshad Mehta scam. This came to the public knowledge that Harshad Mehta, who is also called as big- bull and giant of Indian stock market which diverted huge fund from banks by fraudulent means. He also played with millions of shares of many companies. For preventing such frauds, Government formed SEBI, through Act in 1992. The SEBI is statutory body which regulates and controls functioning of brokers, stock exchanges, portfolio manager investment advisors, sub-brokers, etc. SEBI obliged several tough measures to protect interest of investor. Now with inception of the online trade and every day settlements chances for fraud are nil, top official of SEBI says. Sensex crossed 5000 mark in year 1999 and 6000 mark in year 2000. Foreign institutional investor (FII) is investing in stock markets in India on very large scale. Liberal economic policies pursue by successive Government attracted many foreign institutional investors towards large scale. The impulsive behavior and action of market dedicated it tag - 'volatile market.' The factors which affected market in past were the good monsoon, rise to power of Bharatiya Janatha Party's etc. The result of cricket matches between Pakistan and India also affected movements of stock broking in India. National Democratic Alliance which was led by BJP, in 2004 the public election unsuccessfully tried for riding on market sentiment to power. NDA is voted out of the power and sensex recorded biggest fall in day amidst fears which Congress-Communist coalitions would have stall economic reform. India, after US hosts the large number of the listed companies. The Global investors now seek India as preferred location for the investment. Stock market now also appeals to the middle class Indians. Most of the Indian working in foreign country now diverts their savings to the stocks. This new phenomenon is result of diminished interest rate from banks and opening of the online trading. Stock brokers based in the India are opening office in different country mainly to cater needs of the Non Resident Indians. They can sell or buy stocks online while returning from work places. The recent incidents which CMS GANPAT UNIVERSITY Page 4
SHAREKHAN LIMITED
led to the growing interests among all Indian middle class is initial public offer announced by ONGC, Maruti Udyog Limited, Tata Consultancy Services and many big names like such. A bullish run of stock market can associated with steady growth of 6% in GDP, growth of Indian company to MNCs, the large potential of the growth in fields of mass media, telecommunication, education, IT sectors and tourism backed by the economic reforms ensures that the Indian stock market continue its bull run. DEVELOPMENT An important early event in the development of the stock market in India was the formation of the Native Share and Stock Brokers Association at Bombay in 1875, the precursor of the present-day Bombay Stock Exchange. This was followed by the formation of associations /exchanges in Ahmedabad (1894), Calcutta (1908), and Madras (1937). IN addition, a large number of ephemeral exchanges emerged mainly in buoyant periods to recede into oblivion during depressing times subsequently. In order to check such aberrations and promote a more orderly development of the stock market, the central government introduced a legislation called the Securities Contracts (Regulation) Act, 1956. Under this legislation, it is mandatory on the part of a stock exchanges to seek government recognition. As of January 2002 there were 23 stock exchanges recognized by the central Government. They are located at Ahemdabad, Bangalore, Baroda, Bhubaneshwar, Calcutta, Chenni,(the Madras stock Exchanges ), Cochin, Coimbatore, Delhi, Guwahati, Hyderbad, Indore, Jaipur, Kanpur, Ludhiana, Mangalore, Mumbai(the National Stock Exchange or NSE), Mumbai (The Stock Exchange), papularly called the Bombay Stock Exchange, Mumbai (OTC Exchange of India), Mumbai (The Inter-connected Stock Exchange of India), Patna, Pune, and Rajkot. Of course, the principle bourses are the National Stock Exchange and The Bombay Stock Exchange , accounting for the bulk of the business done on the Indian stock market. While the recognized stock exchanges have been accorded a privileged position, they are subject to governmental supervision and control. The rules of a recognized stock exchanges relating to the managerial powers of the governing body, admission, suspension, expulsion, and re-admission of its members, appointment of authorized representatives and clerks, so on and so forth have to be approved by the government. These rules can be amended, varied or rescinded only with the prior approval of the government. The Securities Contracts (Regulation) Act vests the government with the power to make enquiries into the affairs of a recognized stock exchange and its business, withdraw the recognition the task of regulating the stock exchange to the Securities Exchanges Board of India.
Page 5
SHAREKHAN LIMITED
BSE(BOMBAY STOCK EXCHANGE)
The Stock Exchange, Mumbai, popularly known as "BSE" was established in 1875 as "The Native Share and Stock Brokers Association". It is the oldest one in Asia, even older than the Tokyo Stock Exchange, which was established in 1878. It is a voluntary non-profit making Association of Persons (AOP) and is currently engaged in the process of converting itself into demutualised and corporate entity. It has evolved over the years into its present status as the premier Stock Exchange in the country. It is the first Stock Exchange in the Country to have obtained permanent recognition in 1956 from the Govt. of India under the Securities Contracts (Regulation) Act, 1956.
The Exchange, while providing an efficient and transparent market for trading in securities, debt and derivatives upholds the interests of the investors and ensures redressal of their grievances whether against the companies or its own member-brokers. It also strives to educate and enlighten the investors by conducting investor education program and making available to them necessary informative inputs.
A Governing Board having 20 directors is the apex body, which decides the policies and regulates the affairs of the Exchange. The Governing Board consists of 9 elected directors, who are from the broking community (one third of them retire ever year by rotation), three SEBI nominees, six public representatives and an Executive Director & Chief Executive Officer and a Chief Operating Officer.
Page 6
SHAREKHAN LIMITED
NSE(NATIONAL STOCK EXCHANGE) NSE was incorporated in 1992 and was given recognition as a stock exchange in April 1993. It started operations in June 1994, with trading on the Wholesale Debt Market Segment. Subsequently it launched the Capital Market Segment in November 1994 as a trading platform for equities and the Futures and Options Segment in June 2000 for various derivative instruments.
NSE has been able to take the stock market to the doorsteps of the investors. The technology has been harnessed to deliver the services to the investors across the country at the cheapest possible cost. It provides a nation-wide, screen-based, automated trading system, with a high degree of transparency and equal access to investors irrespective of geographical location. The high level of information dissemination through on-line system has helped in integrating retail investors on a nation-wide basis. The standards set by the exchange in terms of market practices, Products , technology and service standards have become industry benchmarks and are being replicated by other market participants. Within a very short span of time, NSE has been able to achieve all the objectives for which it was set up. It has been playing a leading role as a change agent in transforming the Indian Capital Markets to its present form. The Indian Capital Markets are a far cry from what they used to be a decade ago in terms of market practices, infrastructure, technology, risk management, clearing and settlement and investor service.
Page 7
SHAREKHAN LIMITED
NCDEX NATIONAL COMMODITIES AND DERIVATIVES EXCHANGE NCDEX started working on 15th December, 2003. This exchange provides facilities to their trading and clearing member at different 130 centers for contract. In commodity market the main participants are speculators, hedgers and arbitrageurs. Promoters of NCDEX are National Stock Exchange(NSE) ICICI bank Life Insurance Corporation(LIC) National Bank for Agricultural and Rural Development (NABARD) IFFICO Punjab National Bank (PNB) CRISIL WHY NCDEX? NCDEX is nationalized screen based system which is providing transparent, private and easy services. NCDEX is one of the traditional media which gives online information NCDEX is one of the Indian commodity exchange, constructed on the basis of the current national institutes the exchange has been established with the coloration of leading institutes like NABARD, LIC, NSI etc. In India NCDEX has maximum settlement guarantee fund. NCDEX has appointed two exports for checking quality at the time of delivery. FACILITIES PROVIDED BY NCDEX NCDEX has developed facility for checking of commodity and also provides a wear house facility By collaborating with industrial partners, industrial companies, news agencies, banks and developers of kiosk network NCDEX is able to provide current rates and contracts rate. To prepare guidelines related to special products of securitization NCDEX works with bank. To avail farmers from risk of fluctuation in prices NCDEX provides special services for agricultural. NCDEX is working with tax officer to make clear different types of sales and service taxes. NCDEX is providing attractive products like weather derivatives
Page 8
SHAREKHAN LIMITED
Page 9
SHAREKHAN LIMITED
MCX MLTI COMMODITY EXCHANGE MULTI COMMODITY EXCHANGE of India limited is a new order exchange with a mandate for setting up a nationwide, online multi-commodity marketplace, offering unlimited growth opportunities to commodities market participants. As a true neutral market, MCX has taken several initiatives for users In a new generation commodities futures market in the process, become the countrys premier exchange. MCX, an independent and a de-mutualized exchange since inception, is all set up to introduce a state of the art, online digital exchange for commodities futures trading in the country and has accordingly initiated several steps to translate this vision into reality. Market Watch:
The market watch window is used to view the market details for a particular or group of contracts and for a particular instrument type. This window displays the following details: Symbol, Expiry, price quotation unit, buy qty, buy price, sell price, sell qty, last traded price, D.P.R, volume (in 000s), value (in lac),% change, average trade price, high, low, open, close & open interest. CMS GANPAT UNIVERSITY Page 10
SHAREKHAN LIMITED
Basics of stock Market Corporations issue official-looking sheets of paper that represent ownership of the company. These are called stock certificates, and each certificate represents a set number of shares. The total number of shares will vary from one company to another, as each makes its own choice about how many pieces of ownership to divide the corporation into. One corporation may have only 2,500 shares, while another, such as IBM or the Ford Motor Company, may issue over a billion shares. Companies sell stock (pieces of ownership) to raise money and provide funding for the expansion and growth of the business. The business founders give up part of their ownership in exchange for this needed cash. The expectation is that even though the owners have surrendered a portion of the company to the public, their remaining share of stock will become increasingly valuable as the business grows. Corporations are not allowed to sell shares of stock on the open stock market without the approval of the Securities and Exchange Commission (SEC). This transition from a privately held corporation to a publicly traded one is called going public, and this first sale of stock to the public is called an initial public offering, or IPO. Why do people invest in the stock market? When you buy stock in a corporation, you own part of that company. This gives you a vote at annual shareholder meetings, and a right to a share of future profits. When a company pays out profits to the shareholder, the money received is called a "Dividend". The corporation's board of directors choose when to declare a dividend and how much to pay. Most older and larger companies pay a regular dividend, most newer and smaller companies do not. The average investor buys stock hoping that the stock's price will rise, so the shares can be sold at a profit. This will happen if more investors want to buy stock in a company than wish to sell. The potential of a small dividend check is of little concern. What is usually responsible for increased interest in a company's stock is the prospect of the company's sales and profits going up. A company who is a leader in a hot industry will usually see its share price rise dramatically. Investors take the risk of the price falling because they hope to make more money in the market than they can with safe investments such as bank CD's or government bonds. CMS GANPAT UNIVERSITY Page 11
SHAREKHAN LIMITED
How does one buy stocks? Buying stocks is not as simple as walking into a stockbroker's office and buying shares like you would a pair of shoes from a store. You are required to open an account with the brokerage, like opening an account at a bank. Some brokers will allow you to open an account with very little money. The firm will then hold this money in an interest earning cash account, awaiting your orders to buy or sell stock, or other securities such as bonds or mutual funds. When you buy or sell, you pay a commission, which is deducted, from your account. When a stock is purchased, the ownership of the shares may be listed in one of two ways. "Listed" means how the corporation tracks the ownership of their stock. If you choose to have the stock listed in your name, you will receive the actual stock certificates. Most investors choose to have the ownership listed in the broker's name, called "held in street name", with the broker keeping track of whose trading account the stock actually belongs to. The benefits are reduced paperwork, consolidated portfolio statements, no concerns about storing and processing the paper certificates, and the ability to instantly sell and transfer the shares. Either way, any dividends are credited to your account. Stocks held in street name are insured up to $500,000 by the federal government against fraud or financial failure of the brokerage company. Why do people sell their stock? The reasons people sell their stock are more complex. A person may just need the money. He or she may have watched the price go up, and have a hunch this is a good time to lock in their profit and sell some or all their shares. Bad news concerning a company or its industry, or a disappointing earnings report is sure to prompt heavy selling. An investor may see better opportunities in another company, and so sell his stocks that aren't moving up. But usually, investors sell because they've watched the price fall, and just want to get out before they lose even more
Page 12
SHAREKHAN LIMITED
Secondary Market Intermediaries Stock brokers, sub-brokers, portfolio managers, custodians, share transfer agents constitute the important intermediaries in the Secondary Market. A stock broker plays a very important role in the secondary market helping both the seller and the buyer of the securities to enter into a transaction. The buyer and seller may be either a broker or a client. The transaction entered cannot be annulled except in the case of fraud, willful misrepresentation or upon prima-facie evidence of a material mistake in the transaction, in the judgment of the existing authorities. If a member of the stock exchange (broker) has orders to buy and to sell the same kind of securities, he may complete the transaction between his clients concerned. When executing an order the stock may on behalf of his client buy or sell securities from his own account i.e. as principal or act as an agent. For each transaction he has to issue necessary contract note indicating whether he as principal or as an agent for another has entered into the transaction. While buying pr selling securities as a principal, the stock broker has to obtain the consent of his client and the prices charged should be fair and justified by the conditions of the market. A sub-broker is one who works along with the main broker and is not directly registered with the stock exchange as a member. He acts on behalf of the stockbroker as an agent or otherwise for assisting the investors in buying, selling or dealing in securities through such stockbrokers. No stockbrokers or sub-brokers shall buy, sell or deal in securities unless he holds a certificate of registration granted by SEBI under the Regulations made by SEBI ion relation to them. The Central Government has notified SEBI (Stock Brokers & Sub-Brokers) Rules, 1992 in exercise of the powers conferred by section 29 of SEBI Act, 1992. These rules came into effect on 20th August, 1992.
Page 13
SHAREKHAN LIMITED
Page 14
SHAREKHAN LIMITED
Brief Introduction to SHAREKHAN Sharekhan traces its lineage to SSKI, an organization with more than eight decades of trust & credibility in the stock market. Sharekhan started of as retail arm of SSKI* Pioneers of online trading in India- Sharekhan.com was launched in 2000 and is now the second most visited broking site in India Has one of the largest network of Share shops in the country Has attracted investment from leading Private equity players of the world
Sharekhan is an equities focused organization tracing its lineage to SSKI(Shripal Sevantilal Kantilal Ishwarlal), a veteran equities solutions company with over 8 decades of experience in the Indian stock markets. If you experience our language, presentation style, content or for that matter the online trading facility, you'll find a common thread; one that helps you make informed decisions and simplifies investing in stocks. The common thread of empowerment is what Sharekhan's all about! Sharekhan is also about focus. 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 portfoliobased 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! To sum up, Sharekhan brings to you a user- friendly online trading facility, coupled with a wealth of content that will help you stalk the right shares. Apart from this, Sharekhan also offers the facility to visit (or talk to) any of the share hops across the country in order to cater to people who are not computer - savvy. In fact Sharekhan runs India's largest chain of share shops with around 1842 outlets in 575 cities. To find the answers of these questions, you must visit Sharekhan. in other words Sharekhan is a company that provides you an outstanding trading facility with a wide variety of products and acts as an investment consultant to manage your portfolio and secure a high rate of return on your investments in the securities market.. Basically, the company is a market leader in providing brokering services and has a top turnover in trading and the high turnover makes it the no.l in the market. The main CMS GANPAT UNIVERSITY Page 15
SHAREKHAN LIMITED
difference is the services that they provide to the investors who really need it. The services are discussed in more detail in the marketing activities. The clients are managed with a friendly corporate culture to give him more benefited investment ideas and motivate him whenever he needs. The company is providing as many tips to the clients (pre-market, online and post-market) for more and more trading ideas and the manager helps each client to concentrate on a few scripts so that he can manage the profit/loss. In short, Sharekhan is currently having a good position in the market with the highest no of transactions and also the highest turnover (buying & selling) in India and a leader in providing better services to the investors. Sharekhan, A research and analysis team is constantly working to track performance and trends. That's why Sharekhan has the trading products, which are having one of the highest success rates in the industry the largest chain of retail share shops in India is of Sharekhan. In future, Sharekhan is planning to enter in Mutual funds, Insurance sector and banking sector to expand beyond the market currently covered by it. And it has started MFs on priority basis but wants to grow in it.
Page 16
SHAREKHAN LIMITED
ABOUT SSKI GROUP SSKI group also comprises institutional broking and corporate Finance. While the institutional broking division caters to the largest domestic and foreign institutional investors, telecom and media. SSKI holds a sizeable portion of the market in each of these segments. As the forerunner of investment research in the Indian market, we provide the best research coverage amongst broking houses in India. Our research team is rated as one of the best in the country. Voted four times as the Top Domestic Brokerage House by Asiamoney Survey. SSKI is consistently ranked amongst the top domestic brokerage houses in India. Broking.personalized If you prefer the assurance and reliability of trading through a broker, you can use our network of 250 branches and 1592 business partner outlets in over 575 cities to trade in equities as well as derivatives. We will help you with the investment process, give you advice based on extensive research and provide you with relevant and updated information to help you make informed investment decisions. Our trading services are designed to offer an easy, hassle free trading experience, whether you trade daily or occasionally. You will be entitled to a host of value-added services, intended to assist you in your investment process depending of your investing style and frequency. Freedom @ www.sharekhan.com however, if you prefer the convenience of trading from wherever you are, you can get yourself a Classic trading account and enjoy the freedom that comes with it. You can now place orders even after the trading hours, and the orders are queued up to be executed as soon as the market opens. Sharekhan.com the winner of several prestigious awards has been the most preferred destination for online trading ever since its launch.
Page 17
SHAREKHAN LIMITED
GENERAL INFORMATION
NAME HEAD OFFICE
: Sharekhan Limited : SHAREKHAN LTD. 10th Floor, Beta Building, Lodha iThink Techno Campus Off. JVLR, Opp. Kanjurmarg Railway Station, Kanjurmarg (East), Mumbai 400042, Maharashtra. : Pvt. Ltd. : 1800 270 7050 / 1800 22 7004 / 1800 22 7050 : igc@sharekhan.com : www.sharekhan.com : TARUN SHAH
TYPE OF BUSINESS PH NO E-MAIL WEB SITE CHIEF EXECUTIVE OFFICER
BRANCH VISITED Sharekhan limited 14/15, first floor, prabhu Complex, Near Rajkamal Petrol Pump, Highway, Mehsana- 384002. Ph:- 02762 230539 Branch in charge: - Rajesh Ayer Total Staff : - 16
Page 18
SHAREKHAN LIMITED
SHAREHOLDERS & THE MANAGEMENT TEAM SHAREHOLDERS CITI VENTURE CAPITAL AND OTHER PRIVATE EQUITY FIRMS BARINGS PVT EQUITY ASIA IDFC EMPLOYEES
MANAGEMENT TEAM TARUN SHAH JAIDEEP ARORA SHANKAR VAILAYA CEO DIRECTOR- PRODUCTS & TECHNOLOGY DIRECTOR- OPERATIONS
Page 19
SHAREKHAN LIMITED
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
Page 20
SHAREKHAN LIMITED
Major players of sharekhan:
S. S. Kantilal Ishwarlal Securities Pvt. Ltd. (sharekhan.com) ICICI WEB TRADE LTD. (ICICIdirect.com KOTAK SECURITIES LIMITED (kotakstreet.com India Bulls MOTILAL OSWAL SECURITIES LTD. (MOSt) HDFC SECURITIES LTD (HDFCsec)
Page 21
SHAREKHAN LIMITED
Recent Award
Tarunbhai Receives the Bloomberg-UTV Financial Leadership Trophy From :- Shri Pranab Mukherjee.
Page 22
SHAREKHAN LIMITED
PRODUCT Sharekhans products are basically divided into online and offline products.
Sharekhan
Off-Line
Classic
On line
Trade tiger
A/c
Other Services: Dial-n-Trade Depository Services Commodity Trading Derivative Trading Mutual fund Portfolio Management Services Online IPO Research Based Information Provided
Page 23
SHAREKHAN LIMITED
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 For 1st Year Demat A/C is Free, On 2nd Year AMC charge is applicable. The various benefits the client gets from the online trading are: Freedom from Paperwork: Integrated trading, bank and Demat account (auto pay-in and pay-out of securities) with digital contracts removes all paperwork. Instant Credit And Transfer: Instant transfer of funds from bank accounts of client's choice to his/her Sharekhan trading account. Trade Anywhere: Enjoy the ease of trading from any part of the world in a completely secure environment. Dial n Trade: Call Sharekhan on a toll free number to place orders through sharekhan's telebrokers. Timely Advice: Make informed decisions with expert advice, investment calls and live market commentary. Real-Time Portfolio Tracking: Benefit from real-time information of your investment and current portfolio value. After-Hour Orders: The Client can place orders after the market hours, which get executed as soon as markets open.
Page 24
SHAREKHAN LIMITED
ONLINE
A/C Opening charges: Rs. 750(life time charges) 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. 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) Mutltiple watchlists 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 enable 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 bookings
Page 25
SHAREKHAN LIMITED
You get Instant order and trade confirmations by e-mail Streaming Quotes Personalised Market Scan with your own customized stock ticker! Single screen interface for cash and derivatives Your very own Portfolio Tracker 2) TRADE TIGER: Account Opening Fee: Rs. 1000/-(life time charges) DEMAT A/C free for first year and Rs.400 from 2nd year onwards.(Maintenance charges) Trading through Software/Live Terminal provided by sharekhan.com.NSE & BSE online (through software as well as through website & phone). Monthly Access Fee(for Trade Tiger only) : Rs 500/- a month. The access charges will be applicable to all the new customers signed up from 2nd month of activation. To explain if an account is signed up in January 2005, and the same is activated in January 2005, the access charges will be applicable for Feb 2005 month and the first debit of access charges for the account will happen by the 7th of March 2005. Exceptions applicable for Access Charges : The access charges of Rs. 500 if charged to a client can be refunded in full if the total brokerage by the client is above 3,000 in a Calendar Quarter. BROKERAGE: CASH BROKERAGE:- DELIVERY : 0.30%, INTRADAY : 0.06%* EXPOSURE :- 4 TO 6.6 TIMES* (ON MARGIN MONEY) (* subject to change or as decided by Asstt Manager) F&O BROKERAGE : - ON FIRST LEG{Buy} 0.3% , SAME DAY SQUARE {Sell} OFF: 0.03% SECOND LEG : 0.03%
Settlements of trades follow T+2 transaction cycle. Page 26
SHAREKHAN LIMITED
OTHER FEATURES No Demat Transaction Charges in case of buying and selling through For the fund transfer and withdrawl, we have tie-up with four banks- HDFC Bank,CITI Bank, IDBI Bank & UTIBank. If you are having bank a/c in one of them, you can transfer the funds and withdraw the funds online from Your trading a/c at anytime. BTST (Buy today Sell Tomorrow) Facility in all scrips DIAL-N-TRADE:Call and Trade through Toll free no. From anywhere in India (CUSTOMER CARE: 1800 22 7500, TRADING: 1800 22 7050,30307600) Online IPO filling facility. Freedom from paperwork,trading facilities are completely online. SMS alerts on your mobile phones. Daily sharekhan.com research reports in your mailbox (5 online research papers/magzines).
Page 27
SHAREKHAN LIMITED
OTHER SERVICES 1.Dial-n-Trade
Trade in Equity by using your phone! Free with your sharekhan.com Classic Account, the Dial-n-Trade service enables you to place orders for buying and selling shares through your telephone. All you have to do is dial any one of our dedicated numbers 1800227500 enter your TPIN number (which is provided at the time of opening your account) and on authentication you'll be directed to a telebroker who will buy and sell shares for you. Features of Dial-n-Trade that enable you to trade effortlessly Dedicated numbers for placing your orders with your cellphone or landline. Toll free number: 1800227500. For people with difficulty in accessing the toll-free number, sharekhan.com also have a Reliance number which is charged at Rs. 1.50 per minute for STD calls. Automatic funds transfer with phone banking (for Citibank and HDFC bank customers) Simple and Secure Interactive Voice Response based system for authentication No waiting time. Enter your TPIN to be transferred to telebrokers You also get the trusted, professional advice of telebrokers After hours order placement facility between 8.00 am and 9.30 am (timings to be extended soon)
Page 28
SHAREKHAN LIMITED
2.PORTFOLIO MANAGEMENT SYSTEM
With the Sharekhan Team Managing Your Portfolio, you can be assured that your investments are in safe hands! We follow a multi-disciplined approach incorporating quantitative analysis, fundamental analysis and technical analysis. This multi-pronged approach enables us to provide risk-controlled returns for you. Right from choosing the combination of stocks most suitable for you based on your risk appetite to monitoring their movements and discussing them with you at special events. 3.MUTUAL FUND
Introduction Everybody talks about mutual funds, but what exactly are they? Are they like shares in a company, or are they like bonds and fixed deposits? Will I lose all my money in funds or will I become an overnight millionaire? Big questions that get answered in just five minutes. Meaning A mutual fund is a pool of money that is invested according to a common investment objective by an asset management company (AMC). The AMC offers to invest the money of hundreds of investors according to a certain objective - to keep money liquid or give a regular income or grow the money long term. Investors buy a scheme if it fits in with their investment goals, like getting a regular income now or letting the money accumulate over the long term. Investors pay a small fraction of their total funds to the AMC each year as investment management fees.
Page 29
SHAREKHAN LIMITED
4.SHAREKHAN DEPOSITARY SERVICE Dematerialization and trading in the demat mode is the safer and faster alternative to the physical existence of securities. Demat as a parallel solution offers freedom from delays, thefts, forgeries, settlement risks and paper work. This system works through depository participants (DPs) who offer demat services and hold the securities in the electronic form for the investor Sharekhan Depository services offers dematerialisation services to individual and corporate investors.We have a team of professionals and the latest technological expertise dedicated exclusively to our demat department, apart from a national network of franchisee, making our services quick, convenient and efficient. At Sharekhan, our commitment is to provide a complete demat solution which is simple, safe and secure. 5.RESEARCH BASED ADVICE Every investors needs and goals are different. To meet these needs, Sharekhan provides a comprehensive set of research reports, so that one can take the right investment decisions regardless of their investing preferences! The Research and Development at Sharekhan is done at its Head office Mumbai. The R&D department Head Mr. Hemang Jani forwards all the details regarding all stocks and scripts to all the branches through Internet. At the end of each trading day there is a Teleconference, through which the R&D department Head MR. Hemang Jani talks with each Branch heads and discusses about each days closing position and shows their predictions about next days opening position. The quarries regarding stock positions and other relevant matter of the branch heads of each branch is being solved through teleconference. The various publications of Sharekhan viz. Derivatives Digest, Sharekhans Valueline, Eagle eye, High Noon, Investors Eye, Commodities Buzz, Commodities Beat, Commodity Traders corner, Sharekhan Xclusive, etc. are being prepared by the research team of Sharekhan made up of highly experienced people from diverse field. These all publication provides:
In-depth analysis of the markets Analysis Before, During (live market updates) and After market timings Special sector tracking reports sent regularly
Page 30
SHAREKHAN LIMITED
6. ONLINE IPO Online IPO (Initial Public Offering) is a new service started by Sharekhan for providing the application form of any companys issues of shares just like the TCS issue can be subscribed by filling an online form to reduce the paper work and the fund transfer facility is also provided to the clients for transferring the funds online. It is given on its web-site for helping the clients who are not able to collect the forms manually and the speed of filling and reducing the risk of misplacing of forms, not reaching in time, etc. 7.COMMADITY TRADING Organized futures market evolved in India by the setting up of "Bombay Cotton Trade Association Ltd." in 1875. In 1893, following widespread discontent amongst leading cotton mill owners and merchants over the functioning of the Bombay Cotton Trade Association, a separate association by the name "Bombay Cotton Exchange Ltd." was constituted. Futures trading in oilseeds was organized in India for the first time with the setting up of Gujarati Vyapari Mandali in 1900, which carried on futures trading in groundnut , castor seed and cotton. Before the Second World War broke out in 1939 several futures markets in oilseeds were functioning in Gujarat and Punjab. There were booming activities in this market and at one time as many as 110 exchanges were conducting forward trade in various commodities in the country. The securities market was a poor cousin of this market as there were not many papers to be traded at that time. The year 2003 marked the real turning point in the policy framework for commodity market when the government issued notifications for withdrawing all prohibitions and opening up forward trading in all the commodities. This period also witnessed other reforms, such as, amendments to the Essential Commodities Act, Securities (Contract) Rules, which have reduced bottlenecks in the development and growth of commodity markets. Of the country's total GDP, commodities related (and dependent) industries constitute about roughly 50-60 %, which itself cannot be ignored. Most of the existing Indian commodity exchanges are single commodity platforms; are regional in nature, run mainly by entities which trade on them resulting in substantial conflict of interests, opaque in their functioning and have not used technology to scale up their operations and reach to bring down their costs. But with the strong emergence of: National Multi-commodity CMS GANPAT UNIVERSITY Page 31
SHAREKHAN LIMITED
Exchange Ltd., Ahmedabad (NMCE), Multi Commodity Exchange Ltd., Mumbai (MCX), National Commodities and Derivatives Exchange, Mumbai (NCDEX), and National Board of Trade, Indore (NBOT), all these shortcomings will be addressed rapidly. These exchanges are expected to be role model to other exchanges and are likely to compete for trade not only among themselves but also with the existing exchanges. 8. DERIVATE TRADING The emergence of the market for derivative products, most notably forwards, futures and options, can be traced back to the willingness of risk-averse economic agents to guard themselves against uncertainties arising out of fluctuations in asset prices. By their very nature, the financial markets are marked by a very high degree of volatility. Through the use of derivative products, it is possible to partially or fully transfer price risks by locking-in asset prices. As instruments of risk management, these generally do not influence the fluctuations in the underlying asset prices. However, by locking-in asset prices, derivative products minimize the impact of fluctuations in asset prices on the profitability and cash flow situation of risk-averse investors.
Page 32
SHAREKHAN LIMITED
Page 33
SHAREKHAN LIMITED
BRIEF INTRODUCTION OF DERIVATIVES The term Derivative stands for a contract whose price is derived from or is dependent upon an underlying asset. The underlying asset could be a financial asset such as currency, stock and market index, an interest bearing security or a physical commodity. Today, around the world, derivative contracts are traded on electricity, weather, temperature and even volatility. According to the Securities Contract Regulation Act, (1956) the term derivative includes: (i) (ii) a security derived from a debt instrument, share, loan, whether secured or unsecured risk instrument or contract for differences or any other form of security a contract which derives its value from the prices, or index of prices, of underlying securities.
Types of Derivative Contracts Derivatives comprise four basic contracts namely Forwards, Futures, Options and Swaps. Over the past couple of decades several exotic contracts have also emerged but these are largely the variants of these basic contracts. Let us briefly define some of the contracts 1 Forward Contracts: These are promises to deliver an asset at a predetermined date in future at a predetermined price. Forwards are highly popular on currencies and interest rates. The contracts are traded over the counter (i.e. outside the stock exchanges, directly between the two parties) and are customized according to the needs of the parties. Since these contracts do not fall under the purview of rules and regulations of an exchange, they generally suffer from counterparty risk i.e. the risk that one of the parties to the contract may not fulfill his or her obligation. 2 Futures Contracts: A futures contract is an agreement between two parties to buy or sell an asset at a certain time in future at a certain price. These are basically exchange traded, standardized contracts. The exchange stands guarantee to all transactions and counterparty risk is largely eliminated. The buyers of futures contracts are considered having a long position whereas the sellers are considered to be having a short position. It should be noted that this is similar to any asset market where anybody who buys is long and the one who sells in short. Futures contracts are available on variety of commodities, currencies, interest rates, stocks and other tradable assets. They are highly popular on stock indices, interest rates and foreign exchange. 3 Options Contracts: Options give the buyer (holder) a right but not an obligation to buy or sell an asset in future. Options are of two types - calls and puts. Calls give the buyer the right but not the obligation to buy a given quantity of the underlying asset, at a given price on or before a CMS GANPAT UNIVERSITY Page 34
SHAREKHAN LIMITED
given future date. Puts give the buyer the right, but not the obligation to sell a given quantity of the underlying asset at a given price on or before a given date. One can buy and sell each of the contracts. When one buys an option he is said to be having a long position and when one sells he is said to be having a short position. It should be noted that, in the first two types of derivative contracts (forwards and futures) both the parties (buyer and seller) have an obligation; i.e. the buyer needs to pay for the asset to the seller and the seller needs to deliver the asset to the buyer on the settlement date. In case of options only the seller (also called option writer) is under an obligation and not the buyer (also called ption purchaser). The buyer has a right to buy (call options) or sell (put options) the asset from / to the seller of the option but he may or may not exercise this right. In case the buyer of the option does exercise his right, the seller of the option must fulfill whatever is his obligation (for a call option the seller has to deliver the asset to the buyer of the option and for a put option the seller has to receive the asset from the buyer of the option).An option can be exercised at the expiry of the contract period (which is known as European option contract) or anytime up to the expiry of the contract period (termed as American option contract). We will discuss option contracts in detail in chapters 5 and 6. 4 Swaps: Swaps are private agreements between two parties to exchange cash flows in the future according to a prearranged formula. They can be regarded as portfolios of forward contracts. The two commonly used swaps are: Interest rate swaps: These entail swapping only the interest related cash flows between the parties in the same currency. Currency swaps: These entail swapping both principal and interest between the parties, with the cash flows in one direction being in a different currency than those in the opposite direction. Over the Counter (OTC) Derivative Contracts Derivatives that trade on an exchange are called exchange traded derivatives, whereas privately negotiated derivative contracts are called OTC contracts. The OTC derivatives markets have the following features compared to exchange-traded derivatives: (i) The management of counter-party (credit) risk is decentralized and located within individual institutions (ii) There are no formal centralized limits on individual positions, leverage, or margining, (iii) There are no formal rules for risk and burden-sharing (iv) There are no formal rules or mechanisms for ensuring market stability and integrity, and for safeguarding the collective interests of market participants, and (v) The OTC contracts are generally not regulated by a regulatory authority and the exchanges self-regulatory organization. They are however, affected indirectly by national legal systems, banking supervision and market surveillance CMS GANPAT UNIVERSITY Page 35
SHAREKHAN LIMITED
Participants in a Derivative Market The derivatives market is similar to any other financial market and has following three broad Categories of participants: Hedgers: These are investors with a present or anticipated exposure to the underlying asset which is subject to price risks. Hedgers use the derivatives markets primarily for price risk management of assets and portfolios. Speculators: These are individuals who take a view on the future direction of the markets. They take a view whether prices would rise or fall in future and accordingly buy or sell futures and options to try and make a profit from the future price movements of the underlying asset. Arbitrageurs: They take positions in financial markets to earn riskless profits. The arbitrageurs take short and long positions in the same or different contracts at the same time to create a position which can generate a riskless profit.
Page 36
SHAREKHAN LIMITED
Page 37
SHAREKHAN LIMITED
LITERATURE REVIEW The derivatives market is very dynamic and has quickly developed into the most important segment of the nancial market. Competing for business, both derivatives exchanges and OTC providers, which by far account for the largest part of the market, have fuelled growth by constant product and technology innovation. The competitive landscape has been especially dynamic in Europe, which has seen numerous market entries in the last decades. In the process, strong European players have emerged that today account for around 44 percent of the global market in terms of notional amount outstanding. The derivatives market functions very well and is constantly improving. It effectively fullls its economic functions of price efficiency and risk allocation. The imperatives for a wellfunctioning market are clearly fullled: The exchange segment, in particular, has put in place very effective risk mitigation mechanisms mostly through the use of automation and CCPs. For its users, the derivatives market is highly efficient. Transaction costs for exchange-traded derivatives are particularly low. Innovation has been the markets strongest growth driver and has been supported by a benecial regulatory framework especially in Europe. Overall, it is clearly desirable to preserve the environment that has contributed to the impressive development of the derivatives market and the success of European players in it. There is thus no need for any structural changes in the framework under which OTC players and exchanges operate today. However, some aspects of the OTC segment in particular can still be improved further. Safety and transparency, and operational efficiency could be enhanced along proven and successful models helping the global derivatives market to become even safer and more efficient. Sandeep Srivastava, Surendra S Yadav and P K Jain (2008) Derivative Trading in Indian Stock Market: customer s satisfection found that high net worth individuals and proprietary traders contribute to the major proportion of trading volumes in the derivative segment. The survey also revealed investors are using these securities for risk management, profit enhancement, speculation and arbitrage. It also emphasized to popularize option instruments because they may prove to be a useful medium for enhancing retail participation. Several earlier studies done regarding the characteristics of online traders in USA by Barber and Odean (2002) found that young men are more likely to use the Internet for investing, and that online investors tend to increase turnover and decrease their performance after switching to online trading. Research conducted by Konari Uchida (2006) on the characteristics of Japanese online investors found Japanese online investors prefer higher capital gains, choose low-volatility stocks less often, use chart data more frequently, and are more likely to choose stocks to buy and sell themselves.
Page 38
SHAREKHAN LIMITED
Yingzi Xu, Robert Goedegebuure and Beatrice van der Heijden (2006) The study conducted on Customer Perception, Customer Satisfaction, and Customer Loyalty within Chinese Securities Business: Towards a Mediation Model for Predicting Customer Behavior towards derivatives found service quality perceived by customers has a direct, significant effect on customer satisfaction. Also the relationship between perceived service value and customer loyalty is found to be determined by customer satisfaction and risk return trade of is found for derivatives. Derivative as Risk Management Tool Bose, conducted research on The Indian Derivatives Market Revisited in the year 2006. They found that Derivatives products provide certain important economic benefits such as risk management or redistribution of risk away from risk-averse investors towards those more willing and able to bear risk. Derivatives also help price discovery, i.e. the process of determining the price level for any asset based on supply and demand. These functions of derivatives help in efficient capital allocation in the economy; at the same time their misuse also poses a threat to the stability of the financial sector and the overall economy. Spot Future Relationship Dheeraj Mishra, R Kannan and Sangeeta D Mishra (2006), tried to find out the spot - future parity relationship in case of index futures in the Indian stock market. NSE Nifty has been chosen as underlying asset. It also aims at exploring different factors responsible for the violation of spot-future parity relationship. It was found that there exists a theoretical relationship between spot, futures and other relevant variables as dividend yield, maturity etc. the paper also aimed at finding out whether there exists an arbitrage profit due to violation of spot future. It was found that arbitrage profits are higher for far month future contracts than for near month future contracts. Arbitrage profits are more for undervalued future markets than overvalued future Suchismita markets. Volatility in the Market due to Derivative Trading Sen Shankar Som and Ghosh Santanu Kumar (2006) studied the relationship between stock market liquidity and volatility and risk. The paper also deals with time series data by applying Cochrane Orchutt two step procedures. An effort has been made to establish a relation between liquidity and volatility in this paper. It has been found that here is a statistically significant negative relationship between risk and stock market liquidity. Finally it is concluded that there is no significant relationship between liquidity and trading activity in terms of turnover. So the satisfaction of customer is decrease. Trading Volume of Stocks and Open Interest Shenbagraman (2004) reviewed the role of some non-price variables such as open interests, trading volume and other factors, in the stock option market for determining the price of underlying shares in cash market. The study covered stock option contracts for four months from Nov. 2002 to Feb. 2003 consisting 77 trading days. The study concluded that net open interest of stock option is one of the significant variables in determining future spot price of underlying
Page 39
SHAREKHAN LIMITED
share. The results clearly indicated that open interest based predictors are statistically more significant than volume based predictors in Indian context. investors awareness/customer satisfaction. Srivastava Sandeep, Yadav Surendra S, Jain P K, Derivative Trading in Indian Stock Market: customer satisfaction September, 2008, Volume 20, Number 3 Review The authors conducted a survey of satisfection in the recently introduced derivatives markets in India to examine the customers assessment of market activity and their perception of the benefits and costs of derivative trading. The need for such a study was felt as previous studies relating to the impact of derivative securities on the Indian stock market do not cover the satisfaction of market participants who form an integral part of the functioning of derivative markets. The issues covered in the survey included: a) perception of customer about the attractiveness of different derivative securities for clients. b) popularity of a particular derivative security out of the total set c) different purposes for which the clients are using these securities in order of preference; d) issues concerning derivative trading; e) reasons for non usage of derivatives by some investors and f) pricing, liquidity and informational efficiency of the derivative market. Derivative securities have penetrated the Indian stock market and it emerged that investors are using these securities for different purposes, namely, risk management, profit enhancement, speculation and arbitrage. High net worth individuals and proprietary traders account for a large proportion of broker turnover. Interestingly, some retail participation was also witnessed despite the fact that these securities are considered largely beyond the reach of retail investors (because of complexity and relatively high initial investment). Further, there is a need to popularize option instruments because they may prove to be a useful medium for enhancing retail participation in the derivative market. In the study, it was found that derivatives are used as risk Hedging tool and the trend of the spot market affects the trading of Derivatives. But an interesting fact to note down here is that around 80 % of out of the overall amount invested is in derivative market and rest in the cash market. It clearly signifies that the most of the amount is for speculation and not for hedging. In study, investor satisfection about derivative is influenced by the popularity of stock and also affected by the trading of FII and movement in International market. Most of them (43%) invested about 5-10% of their income on investments and only 9% invested more than 20% of their income on investments. Respondents perceived that Market Risk and Credit risk are the two major risk observed in capital markets. CMS GANPAT UNIVERSITY Page 40
SHAREKHAN LIMITED
Six W for SHAREKHAN
who
customers is customer of sharekhan
get information about customer satisfection towards derrivative market of what sharekhan
when
where
During company's time

At Bank to know about customer satisfection on derrivatives market questionnaire and personal interview
why way
Page 41
SHAREKHAN LIMITED
Page 42
SHAREKHAN LIMITED
RESEARCH OBJECTIVES 1. To study and analyze the customer satisfaction towards derivatives of sharekhan. 2. To study the factor affecting the satisfaction towards trading in derivatives market 3. To identify which factors influence the customers to trade in derivative Market. RESEARCH QUESTION: 1. What are the main factors that affect customer satisfaction towards derivatives of sharekhan? 2. Is there any relationship between trade in derivatives & customer satisfaction? 3. Is Customers aware towards the risk transfer in derivatives market?
Page 43
SHAREKHAN LIMITED
Page 44
SHAREKHAN LIMITED
RESEARCH METHODOLOGY 1) 2) 3) 4) 5) 6) Types of research design : exploratory and conclusive Exploratory research: secondary data, computerized data and internet. Conclusive research: Single cross sectional Descriptive Research : Survey method Survey method :Personal interview Survey Instrument : Questionnaire
(7) Target Population Definition: TARGET POPULATION DEFINATION 1. Target population: All the customers of sharekhan who trade in derivative market. 2. Element: A customer of sharekhan. 3. Sampling unit: A customer of sharekhan. 4. Sampling frame: Not available. 5. Extent: Mehsana (Mehsana District) 6. Time: April to June Sampling Method: 1. Scaling Technique :Likert Scale 2. Software for Data analysis :SPSS 3. Sampling method :- (Probability) simple random sampling. 4. Sample Size Determination:Likert Scale (5-1) / 6 = 0.67 95% Interval Z= 1.96 6= 0.67 e = 0.131(tolerable Error) n = 100 (Sample Size)
Page 45
SHAREKHAN LIMITED
Page 46
SHAREKHAN LIMITED
1) Do you have trading account in the Sharekhan? Trading account Frequency Percent Valid yes 100 100.0 Valid Percent 100.0 Cumulative Percent 100.0
INTERPRETENSION:As per above chart shows that All 100 responded have a trading account in sharekhan.
Page 47
SHAREKHAN LIMITED
2) Do you know about derivative? Know derivative Frequency Percent Valid yes 100 100.0 Valid Percent 100.0 Cumulative Percent 100.0
INTERPRETENSION:As per above chart shows that All 100 responded are known about derivative
Page 48
SHAREKHAN LIMITED
3) Are you trading in derivatives market? Trade in derivative Frequency Percent Valid yes 100 100.0 Valid Percent 100.0 Cumulative Percent 100.0
INTERPRETENSION:As per graph shows that All 100 responded are trading in derivatives.
Page 49
SHAREKHAN LIMITED
4) Which of the following derivatives instrument do you deal in? Instrument use in derivative Frequency Percent Valid Stock future Stock future index 9 40 2 46 3 100 9.0 40.0 2.0 46.0 3.0 100.0 Valid Percent 9.0 40.0 2.0 46.0 3.0 100.0 Cumulative Percent 9.0 49.0 51.0 97.0 100.0
stock option stock option currency Total index
INTERPRETENSION:As graph shows that 9 respondent are use stock future, 40 respondent are use stock index future, 2 respondent use stock option, 46 respondent use stock index option and 3 respondent use currency instrument in derivatives market,
Page 50
SHAREKHAN LIMITED
5) How many percentage of income you trade in derivatives market? Percentage of income u trade in derivative Frequency Percent Valid less than 5% 18 6 to 10% 11 to 15 % 16 to 20 % Total 67 9 6 100 18.0 67.0 9.0 6.0 100.0 Cumulative Valid Percent Percent 18.0 67.0 9.0 6.0 100.0 18.0 85.0 94.0 100.0
INTERPRETENSION:From above graph we can say that the 18 respondent are spent less than 5% of their income in derivatives market. 67 respondent are ready to spent 6 to 10 % of their income, 9 respondent are ready to spent 11to 15 % and only 6 respondent are ready to spent 16 to 20% of their income in derivatives market.
Page 51
SHAREKHAN LIMITED
6) You participant in derivatives market as? Participant in derivative market Frequency Percent Valid hedger Aebitrager 13 27 13.0 27.0 32.0 28.0 100.0 Cumulative Valid Percent Percent 13.0 27.0 32.0 28.0 100.0 13.0 40.0 72.0 100.0
Speculation 32 other Total 28 100
INTERPRETENSION:As per graph shows that 13 respondent are participant as a hedger, 27 respondent are participant as arbitrager, 32 respondent are participant as speculator and 28 respondent participant as other.
Page 52
SHAREKHAN LIMITED
7) What is the rate of return you expect on the derivatives market? Rate of return u expect in derivative market Frequency Percent Valid less than 5% 20 6 to 10 % 11 to 15 % 16 to 20% Total 67 8 5 100 20.0 67.0 8.0 5.0 100.0 Cumulative Valid Percent Percent 20.0 67.0 8.0 5.0 100.0 20.0 87.0 95.0 100.0
INTERPRETENSION:As per the graph shows that 20 respondent are expect return less than 5% in derivatives, 67 respondent are expect 6 to 10 %, 8 respondent are expect 11 to 15 % return and 5 respondent are expect 16 to 20 % are return in derivatives market.
Page 53
SHAREKHAN LIMITED
8) Why are you using derivative as security? Why u use derivative as security Frequency Percent Valid risk management 10 10.0 61.0 23.0 6.0 100.0 Cumulative Valid Percent Percent 10.0 61.0 23.0 6.0 100.0 10.0 71.0 94.0 100.0
profit enhancement 61 Speculation Arbitrage Total 23 6 100
INTERPRETENSION:As per graph shows that 10 respondent are use derivative as risk management, 61 respondent use as profit enhancement, 23 respondent use as speculation , and 6 respondent use as arbitrage to derivatives.
Page 54
SHAREKHAN LIMITED
9) You are using derivatives as risk return trade off? Using derivative as risk return trade off Frequency Percent Valid neither disagree Agree Strongly agree Total agree nor 2 82 16 100 2.0 82.0 16.0 100.0 Cumulative Valid Percent Percent 2.0 82.0 16.0 100.0 2.0 84.0 100.0
INTERPRETENSION:As per graph shows that 82 respondent are agree to use as risk return trade off and 16 respondent are strongly agree with statement and only 2 respondent are neutral about use of derivative as risk return trade off.
Page 55
SHAREKHAN LIMITED
10) Will you increase to spent more money in derivative market by online trading? Increase more money in derivative Frequency Percent Valid yes no 88 12 88.0 12.0 100.0 Cumulative Valid Percent Percent 88.0 12.0 100.0 88.0 100.0
Total 100
INTERPRETENSION:From the graph we says that 88 respondent are ready to spent more money in derivatives only 12 respondent are not ready to spent more money in derivative market.
Page 56
SHAREKHAN LIMITED
DELIVERY 1) Deliver the Account No and password on Time after opening Account deliver1 Frequency Percent Valid strongly disagree Disagree Neither disagree Agree strongly agree Total agree nor 1 3 10 63 23 100 1.0 3.0 10.0 63.0 23.0 100.0 Cumulative Valid Percent Percent 1.0 3.0 10.0 63.0 23.0 100.0 1.0 4.0 14.0 77.0 100.0
INTERPRETENSION:As per graph shoes that 4 respondent are disagree , 10 respondent are neutral and 83 respondent are agree and strongly agree with the delivery of account no or password in time.
Page 57
SHAREKHAN LIMITED
2) Delivery is fast than any other brokerage firm deliver2 Frequency Percent Valid strongly disagree disagree neither agree agree strongly agree Total disagree nor 1 3 13 61 22 100 1.0 3.0 13.0 61.0 22.0 100.0 Cumulative Valid Percent Percent 1.0 3.0 13.0 61.0 22.0 100.0 1.0 4.0 17.0 78.0 100.0
INTERPRETENSION:4 respondent are totally disagree with the statement 13 respondent are neutral and 61 respondent are agree and 22 respondent are strongly agree with the statement.
Page 58
SHAREKHAN LIMITED
STAFF AND SERVICES 1) sales staff are provide Courtesy information about derivative market staffandservice1 Frequency Percent Valid strongly disagree disagree neither agree agree strongly agree Total disagree nor 2 3 12 61 22 100 2.0 3.0 12.0 61.0 22.0 100.0 Cumulative Valid Percent Percent 2.0 3.0 12.0 61.0 22.0 100.0 2.0 5.0 17.0 78.0 100.0
INTERPRETENSION:As per graph shows 5 respondent are disagree, 12 respondent are neither disagree nor agree, 61 respondent are agree, and 22 respondent are strongly agree with the statement. CMS GANPAT UNIVERSITY Page 59
SHAREKHAN LIMITED
2) Sharekhan employees are provide the trade tiger software with demo staffandservice2 Frequency Percent Valid strongly disagree disagree 2 3 2.0 3.0 6.0 62.0 27.0 100.0 Cumulative Valid Percent Percent 2.0 3.0 6.0 62.0 27.0 100.0 2.0 5.0 11.0 73.0 100.0
"neither disagree nor 6 agree" Agree strongly agree Total 62 27 100
INTERPRETENSION:5 respondent are disagree , 6 respondent are neither disagree nor agree, 62 respondent are agree and 27 respondent are strongly agree on sharekhan employees provide trade tiger demo. CMS GANPAT UNIVERSITY Page 60
SHAREKHAN LIMITED
3) Representatives are available in the office for query. staffandservice3 Frequency Percent Valid disagree neither agree agree strongly agree Total disagree nor 6 7 56 31 100 6.0 7.0 56.0 31.0 100.0 Cumulative Valid Percent Percent 6.0 7.0 56.0 31.0 100.0 6.0 13.0 69.0 100.0
Interpretension As per above graph we can say that only6 respondence is strongly disagree, 7 respondence are disagree , 56 respondence are agree and 31 respondence are strongly agree for sharekhan staff represent are available in the office for query.
Page 61
SHAREKHAN LIMITED
4) Representative's has knowledge about the derivative product and market staffandservice4 Frequency Percent Valid strongly disagree disagree neither agree agree strongly agree Total disagree nor 3 2 8 48 39 100 3.0 2.0 8.0 48.0 39.0 100.0 Cumulative Valid Percent Percent 3.0 2.0 8.0 48.0 39.0 100.0 3.0 5.0 13.0 61.0 100.0
Interpretension As per above graph we can say that only3 respondence is strongly disagree, 2 respondence are disagree , 8 respondace are neither agree nor disagreee48 respondence are agree and 39 respondence are strongly agree for sharekhan staff has knowledge about the derivatives product and market. CMS GANPAT UNIVERSITY Page 62
SHAREKHAN LIMITED
5) The staff are Friendliness to you staffandservice5 Frequency Percent Valid strongly disagree Disagree neither agree Agree strongly agree Total disagree nor 1 3 11 44 41 100 1.0 3.0 11.0 44.0 41.0 100.0 Cumulative Valid Percent Percent 1.0 3.0 11.0 44.0 41.0 100.0 1.0 4.0 15.0 59.0 100.0
Interpretension As per above graph we can say that only1 respondence is strongly disagree, 3 respondence are disagree , 11respondance are neither agree nor disagree 44 respondence are agree and 41 respondence are strongly agree for sharekhan staff are friendliness to customer.
Page 63
SHAREKHAN LIMITED
6) Representatives do the return call if your call is missing. staffandservice6 Frequency Percent Valid strongly disagree disagree neither agree agree strongly agree Total disagree nor 2 5 12 53 28 100 2.0 5.0 12.0 53.0 28.0 100.0 Cumulative Valid Percent Percent 2.0 5.0 12.0 53.0 28.0 100.0 2.0 7.0 19.0 72.0 100.0
Interpretension As per above graph we can say that only2 respondence is strongly disagree, 5 respondence are disagree , 12 respondance are neither agree nor disagree, 53 respondence are agree and 28 respondence are strongly agree for sharekhan staff do the return call to their customer. CMS GANPAT UNIVERSITY Page 64
SHAREKHAN LIMITED
7) Your Complaints are resolution as possible as early by Staff members. staffandservice7 Frequency Percent Valid strongly disagree disagree neither agree agree strongly agree Total disagree nor 1 3 10 47 39 100 1.0 3.0 10.0 47.0 39.0 100.0 Cumulative Valid Percent Percent 1.0 3.0 10.0 47.0 39.0 100.0 1.0 4.0 14.0 61.0 100.0
Interpretension As per above graph we can say that only1 respondence is strongly disagree, 3 respondence are disagree , 10respondance are neither agree nor disagree ,47 respondence are agree and 39 respondence are strongly agree for sharekhan staff are resolution the customer complain as early as possible. CMS GANPAT UNIVERSITY Page 65
SHAREKHAN LIMITED
8) Sharekhan employees provide After sales service to you staffandservice8 Frequency Percent Valid Strongly disagree disagree neither agree agree strongly agree Total disagree nor 1 4 9 48 38 100 1.0 4.0 9.0 48.0 38.0 100.0 Cumulative Valid Percent Percent 1.0 4.0 9.0 48.0 38.0 100.0 1.0 5.0 14.0 62.0 100.0
Interpretension As per above graph we can say that only1 respondence is strongly disagree, 4 respondence are disagree , 9 respondance are neither agree nor disagree ,48 respondence are agree and 38 respondence are strongly agree for sharekhan staff areprovide after sales service to customer.
Page 66
SHAREKHAN LIMITED
THE COMPANY 1) Company has Reputation in derivative market thecompany1 Frequency Percent Valid strongly disagree disagree neither agree agree strongly agree Total disagree nor 1 4 4 53 38 100 1.0 4.0 4.0 53.0 38.0 100.0 Cumulative Valid Percent Percent 1.0 4.0 4.0 53.0 38.0 100.0 1.0 5.0 9.0 62.0 100.0
Interpretension As per above graph we can say that only1 respondence is strongly disagree, 4 respondence are disagree , 4 respondance are neither agree nor disagree ,53 respondence are agree and 38 respondence are strongly agree that sharekhan company has a reputation in derrivative market for trading. CMS GANPAT UNIVERSITY Page 67
SHAREKHAN LIMITED
2) Company is doing business Ease way thecompany2 Frequency Percent Valid disagree neither agree agree strongly disagree Total disagree nor 5 9 52 34 100 5.0 9.0 52.0 34.0 100.0 Cumulative Valid Percent Percent 5.0 9.0 52.0 34.0 100.0 5.0 14.0 66.0 100.0
Interpretension As per above graph we can say that there is no respondence of strongly disagree, only 5 respondence are disagree , 9 respondance are neither agree nor disagree ,52 respondence are agree and 34 respondence are strongly agree that sharekhan is doing business easy way. CMS GANPAT UNIVERSITY Page 68
SHAREKHAN LIMITED
3) Company provide Invoice clarity thecompany3 Frequency Percent Valid disagree neither agree agree Strongly agree Total disagree nor 2 10 49 39 100 2.0 10.0 49.0 39.0 100.0 Cumulative Valid Percent Percent 2.0 10.0 49.0 39.0 100.0 2.0 12.0 61.0 100.0
Interpretension As per above graph we can say that there is no respondence of strongly disagree, only 2 respondence are disagree , 10 respondance are neither agree nor disagree ,49 respondence are agree and 39 respondence are strongly agree that sharekhan is provide invoice clarity.
Page 69
SHAREKHAN LIMITED
4) Company provide Invoices on time thecompany4 Frequency Percent Valid strongly disagree disagree neither agree agree strongly agree Total disagree nor 1 3 8 41 47 100 1.0 3.0 8.0 41.0 47.0 100.0 Cumulative Valid Percent Percent 1.0 3.0 8.0 41.0 47.0 100.0 1.0 4.0 12.0 53.0 100.0
Interpretension As per above graph we can say that only1 respondence is strongly disagree, 3 respondence are disagree , 8 respondance are neither agree nor disagree ,41 respondence are agree and 47 respondence are strongly agree that sharekhan company provide Invoice ON TIME.
Page 70
SHAREKHAN LIMITED
CHARGES 1) Company is take less brokerage charge than any other brokerage firm charges1 Frequency Percent Valid strongly disagree disagree neither agree agree strongly agree Total disagree nor 1 2 8 53 36 100 1.0 2.0 8.0 53.0 36.0 100.0 Cumulative Valid Percent Percent 1.0 2.0 8.0 53.0 36.0 100.0 1.0 3.0 11.0 64.0 100.0
Interpretension As per above graph we can say that only1 respondence is strongly disagree, 2 respondence are disagree , 8 respondance are neither agree nor disagree ,53 respondence are agree and 36 respondence are strongly agree that sharekhan company is take less brokerage charh=ge than any other brokerage firm. CMS GANPAT UNIVERSITY Page 71
SHAREKHAN LIMITED
2) Company is take less maintenance charge than others brokerage firm. charges2 Frequency Percent Valid strongly disagree disagree neither agree agree strongly agree Total disagree nor 1 4 7 51 37 100 1.0 4.0 7.0 51.0 37.0 100.0 Cumulative Valid Percent Percent 1.0 4.0 7.0 51.0 37.0 100.0 1.0 5.0 12.0 63.0 100.0
Interpretension As per above graph we can say that only1 respondence is strongly disagree, 4 respondence are disagree , 7 respondance are neither agree nor disagree ,51 respondence are agree and 37 respondence are strongly agree that sharekhan company is take less maintenance charge than other firms. CMS GANPAT UNIVERSITY Page 72
SHAREKHAN LIMITED
3) Company is take advance moneys as per SEBIs guidelines charges3 Frequency Percent Valid strongly disagree disagree neither agree agree strongly agree Total disagree nor 1 1 2 31 65 100 1.0 1.0 2.0 31.0 65.0 100.0 Cumulative Valid Percent Percent 1.0 1.0 2.0 31.0 65.0 100.0 1.0 2.0 4.0 35.0 100.0
Interpretension As per above graph we can say that only1 respondence is strongly disagree, 1 respondence are disagree , 2 respondance are neither agree nor disagree ,31 respondence are agree and65 respondence are strongly agree that sharekhan company take advance money as per SEBIs guideline.
Page 73
SHAREKHAN LIMITED
4) Company provides limit for trading in derivative market as per SEBIs guidelines charges4 Frequency Percent Valid strongly disagree neither agree agree strongly agree Total disagree nor 1 3 17 79 100 1.0 3.0 17.0 79.0 100.0 Cumulative Valid Percent Percent 1.0 3.0 17.0 79.0 100.0 1.0 4.0 21.0 100.0
Interpretension As per above graph we can say that only1 respondence is strongly disagree, 3 respondance are neither agree nor disagree ,17 respondence are agree and 79 respondence are strongly agree that sharekhan company is provide limit for trading as per SEBIs guidelines.
Page 74
SHAREKHAN LIMITED
12) Please indicate your degree of SATISFACTION towards Derivatives Market of Sharekhan Your degree of satisfaction Frequency Percent Valid dissatisfied neither Satisfied dissatisfied Satisfied highly satisfied Total nor 3 1 69 27 100 3.0 1.0 69.0 27.0 100.0 Cumulative Valid Percent Percent 3.0 1.0 69.0 27.0 100.0 3.0 4.0 73.0 100.0
Interpretension As per above graph we can say that 3 respondence are dissatisfied ,1 respondence is neither satisfied nor dissatisfied, more than sixty respondent are satisfied and 27 response are strongly satisfied on derivatives market provide by sharekhan.. CMS GANPAT UNIVERSITY Page 75
SHAREKHAN LIMITED
PERSONAL DETAILS I) Gender Gender:Cumulative Valid Percent Percent 80.0 20.0 100.0 80.0 100.0
Frequency Percent Valid male 80 80.0 20.0 100.0
female 20 Total 100
Interpretension As per the above graph we can see that 80 respondence are male and 20 respondence are female. Women also take interest in trading now days.
Page 76
SHAREKHAN LIMITED
II) Age group:Age group Frequency Percent Valid 18 -25 26 - 35 36-40 6 53 31 6.0 53.0 31.0 10.0 100.0 Cumulative Valid Percent Percent 6.0 53.0 31.0 10.0 100.0 6.0 59.0 90.0 100.0
above 40 10 Total 100
Interpretension As per above graph we can say that 6 respondence are 18-25 age group , 53 respondence are 2535 age group 31 respondence are 35-40 age group and 10 respondence are above 40 age group.
Page 77
SHAREKHAN LIMITED
III) Occupassion:Occupassion Frequency Percent Valid government employees self employees Professional other Total 12 49 27 12 100 12.0 49.0 27.0 12.0 100.0 Cumulative Valid Percent Percent 12.0 49.0 27.0 12.0 100.0 12.0 61.0 88.0 100.0
Interpretension Here 12are government employees, 49 are self employees, 27 are professional and12 are other.
Page 78
SHAREKHAN LIMITED
IV) Income Income:Cumulative Valid Percent Percent 10.0 38.0 30.0 22.0 100.0 10.0 48.0 78.0 100.0
Frequency Percent Valid 0-299999 10 10.0 38.0 30.0 22.0 100.0
300000-599999 38 600000-899999 30 above 900000 Total 22 100
Interpretension Here in Sharekhan the 10 peoples income is 0-299999, 38 peoples income is 300000-599999, 30 peoples income is 600000-899999 and 22peoples income is more than 900000.
Page 79
SHAREKHAN LIMITED
HYPOTHESIS TESTING ANOVA 1) Age group and satisfaction. H0: There is no difference in satisfaction between different age group. H1: There is difference in satisfaction between different age group. ANOVA Your degree of satisfaction Sum Squares Between 2.659 Groups Within Groups 33.341 Total 36.000 Conclusion:Significance value of ANOVA sample test is 0.06 which is more than .05 so we accept our null hypothesis. So we can conclude that there is no difference in satisfaction between different age group. of Df 3 96 99 Mean Square F .886 .347 2.552 Sig. .060
Page 80
SHAREKHAN LIMITED
2) Different income and satisfaction
H0: There is no difference in satisfaction between different income groups. H1: There is difference in satisfaction between different income groups. ANOVA Your degree of satisfaction Sum Squares Between 1.800 Groups Within Groups 34.200 Total 36.000 of Df 3 96 99 Mean Square F .600 .356 1.685 Sig. .175
Conclusion:Significance value of ANOVA sample test is 0.175 which is more than .05 so we accept our null hypothesis. So we can conclude that there is difference in satisfaction between different income groups.
Page 81
SHAREKHAN LIMITED
3) Satisfaction and delivery H0: There is no difference in satisfaction and between deliveries provided by company. H1: There is difference in satisfaction and deliveries provided by company. ANOVA Your degree of satisfaction Sum of Squares Between Groups Within Groups Total 14.631 21.369 36.000 df 6 93 99 Mean Square 2.439 .230 F 10.613 Sig. .000
Conclusion:Significance value of ANOVA sample test is 0.00 which is less than .05 so we reject our null hypothesis. So we can conclude that there is difference in satisfaction and delivery provided by company.
Page 82
SHAREKHAN LIMITED
4) Satisfaction and Staffs Service of company. H0: There is no difference in satisfaction and between staffs service of company. H1: There is difference in satisfaction and between staffs service of company.
ANOVA Your degree of satisfaction Sum of Squares Between Groups Within Groups Total 26.090 9.910 36.000 df 21 78 99 Mean Square 1.242 .127 F 9.778 Sig. .000
Conclusion:Significance value of ANOVA sample test is 0.00 which is less than .05 so we reject our null hypothesis. So we can conclude that there is difference in satisfaction and between staffs service of company.
Page 83
SHAREKHAN LIMITED
5) Satisfaction and the Company.
H0: There is no difference in satisfaction and between The Company. H1: There is difference in satisfaction and between The Company.
ANOVA Your degree of satisfaction Sum of Squares Between Groups Within Groups Total 17.537 18.463 36.000 Df 11 88 99 Mean Square 1.594 .210 F 7.599 Sig. .000
Conclusion:Significance value of ANOVA sample test is 0.00 which is less than .05 so we reject our null hypothesis. So we can conclude that there is difference in satisfaction and between The Company.
Page 84
SHAREKHAN LIMITED
6) Satisfaction and the Charges of Company. H0: There is no difference in satisfaction and between The Charges of Company. H1: There is difference in satisfaction and between The Charges of Company. ANOVA Your degree of satisfaction Sum of Squares Between Groups Within Groups Total 9.672 26.328 36.000 df 9 90 99 Mean Square 1.075 .293 F 3.674 Sig. .001
Conclusion:Significance value of ANOVA sample test is 0.001 which is less than .05 so we reject our null hypothesis. So we can conclude that there is difference in satisfaction and between The Charges of Company.
Page 85
SHAREKHAN LIMITED
Chi square Test 1. Instrument deal in derivative market and income trade in derivatives market H0: There is no association between derivative instrument deal and percentage of income trade in derivatives market. H1: There is association between derivative instrument deal and percentage of income trade in derivatives market Case Processing Summary Valid N Percent Instrument do use INDERRIVATIVE * percentage of income u trade in derivative 100 100.0% Cases Missing N Percent 0 .0% Total N Percent 100 100.0%
Instrument do use IN DERRIVATIVE * percentage of income u trade in derivative Cross tabulation Count Percentage of income u trade in derivative less than 5% 6 to 10% 11 to 15 % 16 to 20 % Instrument do use INDERRIVATIVE Stock future Stock index future stock option stock index option Currency Total 3 9 1 3 2 18 4 30 0 33 0 67 1 0 0 8 0 9 1 1 1 2 1 6 Total 9 40 2 46 3 100
Page 86
SHAREKHAN LIMITED
Chi-Square Tests Monte Carlo Sig. (2-sided) Asymp . Sig. (2df sided) 95% Confidence Interval Sig. Lower Bound Upper Bound .030 .030 .030 .047 .000 .030 .010b Monte Carlo Sig. (1-sided) 95% Confidence Interval Lower Bound Upper Bound Sig.
Value
Pearson Chi33.948a 12 .001 .000b .000 Square Likelihood 33.722 12 .001 .000b .000 Ratio Fisher's Exact 32.454 .000b .000 Test Linear-byLinear 3.381c 1 .066 .020b .000 Association N of Valid 100 Cases a. 15 cells (75.0%) have expected count less than 5. The minimum expected count is .12. b. Based on 100 sampled tables with starting seed 624387341. c. The standardized statistic is 1.839.
Conclusion:Significance value of chi-square sample test is 0.01 which is less than .05 so we reject null hypothesis. So we can conclude that there is association between derivative instrument deal and percentage of income trade in derivatives market.
Page 87
SHAREKHAN LIMITED
2. Instrument deal in derivative and participant derivative market. H0: There is no association between derivative instrument deal and participant in derivatives market. H1: There is association between derivative instrument deal and percentage of income trade in derivatives market. Case Processing Summary Valid N Percent Instrument do use INDERRIVATIVE * participant in derivative market 100 100.0% Cases Missing N Percent 0 .0% Total N Percent 100 100.0%
Instrument do use INDERRIVATIVE * participant in derivative market Cross tabulation Count Participant in derivative market hedger Instrument do use INDERRIVATIVE Stock future Stock index future stock option stock index option currency Total 2 6 2 1 2 13 Arbitrager Speculation 3 12 0 12 0 27 3 7 0 22 0 32 other 1 15 0 11 1 28 Total 9 40 2 46 3 100
Page 88
SHAREKHAN LIMITED
Chi-Square Tests Monte Carlo Sig. (2-sided) Asymp. Sig. (2sided) 95% Confidence Interval Sig. Monte Carlo Sig. (1sided) 95% Confidence Interval Sig.
Value
Df
Lower Lower Upper Bound Upper Bound Bound Bound .030 .030 .030 .648 .139 .301 .22 0b
Pearson Chi35.686a 12 .000 .000b .000 Square Likelihood Ratio 31.222 12 .002 .000b .000 Fisher's Exact 26.762 .000b .000 Test Linear-byLinear .449c 1 .503 .550b .452 Association N of Valid Cases 100 a. 12 cells (60.0%) have expected count less than 5. The minimum expected count is .26. b. Based on 100 sampled tables with starting seed 957002199. c. The standardized statistic is .670.
Conclusion:Significance value of chi-square sample test is 0.00 which is less than .05 so we reject null hypothesis. So we can conclude that there is association between derivative instrument deal and percentage of income trade in derivatives market.
Page 89
SHAREKHAN LIMITED
3. Percentage of income trade in derivative market and participant in derivative market H0: There is no association between percentage of income trade in derivatives market and participant in derivatives market. H1: There is association between percentages of income trade in derivatives market participant in derivatives market. Case Processing Summary Valid N Percent Percentage of income u trade in derivative * participant in derivative market 100 100.0% Cases Missing N Percent 0 .0% Total N Percent 100 100.0%
Percentage of income u trade in derivative * participant in derivative market Cross tabulation Count Participant in derivative market hedger Arbitrager Speculation Percentage of income u less than 5% trade in derivative 6 to 10% 11 to 15 % 16 to 20 % Total 7 4 0 2 13 4 22 0 1 27 4 16 9 3 32 other 3 25 0 0 28 Total 18 67 9 6 100
Page 90
SHAREKHAN LIMITED
Chi-Square Tests Monte Carlo Sig. (2-sided) Asymp. Sig. (2sided) 95% Confidence Interval Sig. Lower Bound Upper Bound .030 .030 .030 .486 .113 .267 .190b Monte Carlo Sig. (1-sided) 95% Confidence Interval Lower Bound Upper Bound Sig.
Value
Df
Pearson Chi41.202a 9 .000 .000b .000 Square Likelihood 41.119 9 .000 .000b .000 Ratio Fisher's 33.214 .000b .000 Exact Test Linear-byLinear .638c 1 .424 .390b .294 Association N of Valid 100 Cases a. 10 cells (62.5%) have expected count less than 5. The minimum expected count is .78. b. Based on 100 sampled tables with starting seed 92208573. c. The standardized statistic is .799.
Conclusion:Significance value of chi-square sample test is 0.00 which is less than .05 so we reject null hypothesis. So we can conclude that There is association between percentage of income trade in derivatives market participant in derivatives market.
Page 91
SHAREKHAN LIMITED
MEAN TABLE
Mean value DELIVERY Deliver the Account No and password on Time after opening Account Delivery is fast than any other brokerage firm STAFF AND SERVICES sales staff are provide Courtesy information about derivative market Sharekhan employees are provide the trade tiger software with demo Representatives are available in the office for query. Representative's has knowledge about the derivative product and market The staff are Friendliness to you Representatives do the return call if your call is missing. Your Complaints are resolution as possible as early by Staff members. Sharekhan employees provide After sales service to you THE COMPANY Company has Reputation in derivative market Company is doing business Ease way Company provide Invoice clarity Company provide Invoices on time CHARGES Company is take less brokerage charge than any other brokerage firm Company Is take less maintenance charge than others brokerage firm. Company is take advance moneys as per SEBIs guidelines Company provides limit for trading in derivative market as per SEBIs guidelines 4.02 4.04 4 4.12 3.98 4.09 4.12 4.18 4.21 4 4.2 4.18 4.2325 4.23 4.15 4.25 4.3 4.4275 4.21 4.19 4.58 4.73
Page 92
SHAREKHAN LIMITED
CONCLUSION: As per mean table shows that the highest mean is charges mean which is 4.42 so we conclude that Charges of the company is main factor to affect on customer satisfaction. After charges the companys mean is high so we conclude that people is attract by company name for trading and also people satisfied with brand or name of the company. We can says that the People satisfied with staff of the company and their services .because staff and service mean is also more than 4. The companys delivery about product is also more than 4 is good for the company but company has to increase the delivery of account number and password detail more quickly.
Page 93
SHAREKHAN LIMITED
Page 94
SHAREKHAN LIMITED
SWOT Analysis During this training at Sharekhan, we had come to know the Strengths Weaknesses 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: Large primary market to sit as a book runner for the other companies just like Kotak securities ltd. that runs the books of share holdings for many companies Slope of stock market towards delivery based transactions. 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 brokers & DPs. An indirect opportunity generated by the market from its bullishness. 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. Indirect threat from instable stock market, i.e., low/no profit of Sharekhans clients would lead them to go for other broker/DP.
Page 95
SHAREKHAN LIMITED
Page 96
SHAREKHAN LIMITED
RECOMMDATION People using derivatives as risk return trade off so convinced other people about trading in derivatives for taking risk return trade off. Convinced peoples to increase spent more money in derivatives for profit enhancement and for risk return trade off. The company has to improve their delivery of password and account detail of new customer. The company has to give more information about derivatives and also try to improve the all the service quality more so all customer are highly satisfied.
Page 97
SHAREKHAN LIMITED
Page 98
SHAREKHAN LIMITED
CONCLUSION Share khan is currently having good position in the market with highest turnover in India and providing better services to the investor its performance is good because of innovative products and having good team. A research and analysis team is constantly working to track performance and trends. That's why Sharekhan has the trading products, which are having one of the highest success rates in the industry the largest chain of retail share shops in India is of Sharekhan From the above report I found that sharekhans most of the customer is dealing in derivatives market. I can conclude that most of the people are trade in stock index future and stock index option. I can also conclude that people are ready to spent more money in derivatives market for trading. I can conclude that the entire customers are satisfied with the service provided by sharekhan in derivatives market. From this research I can also prove our hypothesis that the customers are satisfied towards derivatives market of sharekhan. Customers are satisfied with the service quality. From the report it also define that there is No different in satisfaction and different income group and age group. From the hypothesis testing the report shows that there is difference in between satisfaction and delivery, Staffs services, brand name and charges taken by the company. The factor Like Company name, charges of the company, Delivery, Staff service. This factor affect the customers satisfaction it is prove in hypothesis testing. From the hypothesis I have define that there is association between derivative instrument use and percentage of income trade Most of the customer are pay more for stock index future and for stock index option. I have also find that there is association between derivative instrument deal and percentage of income trade in derivatives market by the customers. Its also concluding that there is association between percentages of income trade in derivatives market participant in derivatives market. Customers are agreeing that sharekhan limited is taking less maintenance and brokerage charge from the mean table. From the mean table I found that there is main factor which affect the customer is satisfaction is charges taken by company if company take less charge or as per SEBIs guideline than customer is more satisfied After charge the Name of the company is affect on customer satisfaction and than Staffs service is affects the customers satisfaction.
Page 99
SHAREKHAN LIMITED
Page 100
SHAREKHAN LIMITED
LIMITATIONS OF THE RESEARCH STUDY: All marketing research projects have limitations caused by time, area covered and other organization constraints. Furthermore the research design adopted may be limited in terms of various types of errors, and some of those may be serious enough to warrant discussion. We also have to pass through such kind of limitations. It was not possible for us to cover all the people for the purpose of market research, so that we took a sample of 100 from Mehsana There are chances of response error, which can be arising from peoples who do respond but give inaccurate answers, or their answers are misreported or misanalyses. The result of these report is limited up to Mehsana region it is possible that in other area, other region the result is different. So the results in our report are totally based on the answers given by the people, falling in taken sample. The authentication of their answers is possible no more.
Page 101
SHAREKHAN LIMITED
Page 102
SHAREKHAN LIMITED
BIBILOGRAPHY
http://www.bseindia.com/static/about/introduction.aspx?expandable=0 http://www.mcxindia.com/aboutus/aboutus.htm http://www.nseindia.com/global/content/about_us/about_us.htm http://www.ncdex.com/AboutUs/Profile.aspx http://www.q4points.com/2012/04/history-of-sharekhan.html http://www.ukessays.com/essays/finance/literature-review-of-derivatives-and-their-usefinance-essay.php#ixzz2UZBnPJDd http://www.ukessays.com/dissertation/literature-review/literature-review-on-criteria-of-astock-brokers.php#ixzz2UBRTOZve
Literature Sandeep Srivastava, Surendra S Yadav and P K Jain (2008) Yingzi Xu, Robert Goedegebuure and Beatrice van der Heijden (2006) Suchismita The Indian Derivatives Market Revisited year 2006 Srivastava Sandeep, Yadav Surendra S, Jain P K, Derivative Trading in Indian Stock Market: customer satisfaction September, 2008, Volume 20, Number 3 Review
Page 103
SHAREKHAN LIMITED
Page 104
SHAREKHAN LIMITED
QUESTIONAIRE ON FACTOR AFECTING OF CUSTOMER SATISFACTION TOWARDS DERIVATIVES MARKET 1) Do you have trading account in the Sharekhan? YES 2) Do you know about derivative? YES 3) Are you trading in derivatives market? YES NO NO NO
4) Which of the following derivatives instrument do you deal in? Stock future Stock index future
Stock option
Stock index option
Swaps Currency 5) How many percentage of income you trade in derivatives market? Less than 5% 11 to 15 % 6) You participant in derivatives market as? Hedger Speculator 6 to 10% 16 to 20%
Arbitrager Other
7) What is the rate of return you expect on the derivatives market? Less than 5 % 11 to 15 % 6 to 10 % 16 to 20%
Page 105
SHAREKHAN LIMITED
8) Why are you use derivative as security Risk management Speculation Profit Enhancement Arbitrage.
9) You are using derivatives as risk return trade off Strongly Disagree Disagree Neither agree nor Disagree
Agree
Strongly Agree
10) Will you increase to spent more money in derivative market by online trading? YES NO
11) The following statements are related to customer satisfaction towards derivatives in sharekhan limited Give your answer using the following scale:1=Strongly Disagree, 2= Disagree, 3= neither Agree nor Disagree, 4= Agree, 5= Highly Agree. Statement Strongly Disagree Neither Agree Strongly Disagree agree Agree nor Disagree DELIVERY Deliver the Account No and password on Time after opening Account Delivery is fast than any other brokerage firm STAFF AND SERVICES sales staff are provide Courtesy information about derivative market Sharekhan employees are provide the trade tiger software with demo Representatives are available in the office for query. Representative's has knowledge about the derivative product and market CMS GANPAT UNIVERSITY Page 106
SHAREKHAN LIMITED
The staff are Friendliness to you Representatives do the return call if your call is missing. Your Complaints are resolution as possible as early by Staff members. Sharekhan employees provide After sales service to you THE COMPANY Company has Reputation in derivative market Company is doing business Ease way Company provide Invoice clarity Company provide Invoices on time CHARGES Company is take less brokerage charge than any other brokerage firm Company Is take less maintenance charge than others brokerage firm. Company is take advance moneys as per SEBIs guidelines Company provides limit for trading in derivative market as per SEBIs guidelines 12) Please indicate your degree of SATISFACTION towards Derivatives of Sharekhan Highly Dissatisfied 1 Neither Satisfied Satisfied nor Dissatisfied 3 4 Highly Satisfied 5
Dissatisfied 2
Page 107
SHAREKHAN LIMITED
PERSONAL DETAILS Name :Address:Gender:Male Age group:18-25 36-40 26-35 Above 40 Female
Occupassion:Government Employees Self employees.
Professional
Other
Income:0 2, 99,999 3, 00,000 - 5, 99,999
6, 00,000 8 ,99,999
above 9, 00,000
Page 108

Final Projectcustomer Satisfaction Derrivative Market of Sharekhan

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Final Projectcustomer Satisfaction Derrivative Market of Sharekhan

Uploaded by

Copyright:

Available Formats

SHAREKHAN LIMITED

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

BSE(BOMBAY STOCK EXCHANGE)

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

NAME HEAD OFFICE

TYPE OF BUSINESS PH NO E-MAIL WEB SITE CHIEF EXECUTIVE OFFICER

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

Settlements of trades follow T+2 transaction cycle. Page 26

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

Six W for SHAREKHAN

customers is customer of sharekhan

During company's time

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

stock option stock option currency Total index

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

Speculation 32 other Total 28 100

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

profit enhancement 61 Speculation Arbitrage Total 23 6 100

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

CMS GANPAT UNIVERSITY

"neither disagree nor 6 agree" Agree strongly agree Total 62 27 100

CMS GANPAT UNIVERSITY