PROJECT REPORT

On

ANALYSIS OF CONSUMER BEHAVIOR

TOWARDS SHARE TRADING AND
SALES PROMOTION OF INDIABULLS
SECURITIES LTD

In the partial fulfillment of the two year full time PGDBM

(Equivalent to MBA)

Project Guide
Faculty Guide
Mr. Vijay Babbar
Rashmi Sundryal
Divisional Sales Head

Miss

NDIM
Indianbulls Securities Ltd.
New Delhi

New Delhi

Submitted by:

Uttam Seth
Roll No: 68
PGDBM (2004-06)

New Delhi Institute of Management

60-61 Tughlakabad Institutional Area \
New Delhi-110062

ACKNOWLEDGEMENTS
I would like to express my sincere thanks to Indiabulls
Securities Ltd., Delhi for giving me the opportunity to carry out the
Summer Internship Program in their organization. The whole period
spent

with

the

organization

has

been

of

immense

learning

experience about the Indian Stock Market.

Preparing a project of such a kind is not an easy task in itself and I
am sincerely thankful to all those people who help me lot, in
preparing and completing this project.
I am grateful to Indiabulls Securities Ltd. who has given me this
opportunity to carry out the project Analysis of Consumer
Behavior Towards Share Trading and Sales Promotion of
Indiabulls Securities Ltd. A study on investors perception their
behavior about equities.
I sincerely thank to Mr. Vijay Babbar (Divisional Sales Head,
Indiabulls Securities Ltd., Delhi) for providing me this valuable
learning opportunity.
I would also like to thank Ms. Rashmi Sundryal Faculty Guide,
NDIM- Delhi for her valuable guidance and insight amidst her busy
schedule.
Finally I would like to thank Mr. Vineet Chandani (Relationship
Manager) my project supervisor without his help and guidance the
completion of this project would have become difficult task.

INDEX

OBJECTIVE

HISTORY OF STOCK EXCHANGE

COMPANY PROFILE
a) Introduction
b) Philosophy
c) History and other corporate matters overview

SHARE TRADING
ORGANIZATION CHART

PRODUCTS AND SERVICES

INDIABULLS IN NEWS 2005

RESEARCH METHODOLOGY

FINDINGS AND ANALYSIS

RECOMMENDATIONS

BIOBLIOGRAPHY

EXECUTIVE SUMMARY
Investing in equities in a market like India is speculative and
involves risk that may be greater than other types of investment
strategies.

Before investing an Investor should be careful enough

about him investment decision to avoid erosion of wealth. As seen

in the recent times the volatility of market is more detrimental to
the retail investors as it seems to be lucrative for speculative gains
of short duration of time.

Hence an investor has to evaluate his

options carefully for a prudent investment, keeping long-term

horizon in mind.
The report has tried to bring out the parameters those are of
paramount importance to general public dealing in an equity trading
on day-to day and delivery base trading. The working methodology
has been discussed i.e. the data collection methods, sampling
methods

and

the

survey

questionnaire

methods.

Thee

questionnaire prepared is designed so as to cover a wide range of

customer touch points
The report given a view about the investors perception that what
thy think while making investments in shares.
A sample of 100 people was selected randomly and survey was
done as per the parameters of the questionnaire.

The results of

every parameter have been included in this report and shown

graphically (Pie Charts, bar graphs etc.) A complete structure of the

research design has been included.
Apart from above discussed points the brief history of Indiabulls
Securities Ltd, its business diversification and a brief introduction
about the concept of share trading.

OBJECTIVE

To study investors behavior towards different attributes such as

risk, return, liquidity etc. of investment in Equities.

To study the issues and challenges that investors face while

making investment in share market.

To study the preferences and perceptions of investors regarding

various financial products from the stable of Indiabulls Securities
Ltd. so that the firm can benefit from the findings of the report in
launching any new investment product in future.

To study the consumers perception in respect of investment in

shares Trading.

To study about Risk Management with the help of equities.

HISTORY OF STOCK EXCHANGE

The only stock exchanges operating in the 19 th century were those

of Bombay set up in 1875 and Ahemadabad set up in 1894. These
were organized as voluntary non-profit making organization of
brokers to regulate and protect their interests. Before the control on
securities trading became a central subject under the constitution in
1950, it was a state subject and the Bombay securities contract
(CONTROL) Act of 1952 used to regulate trading in securities. Under
this Act, the Bombay stock exchanges in 1927 and Ahemadabad in
1937.
During the war boom, a number of stock exchanges were organized
in Bombay, Ahemadabad and other centers, but they were not
recognized. Soon after it became a central subject, central
legislation was proposed and a committee headed by A.D. Gorwala
went into the bill for securities regulation. On the basis of
committees recommendations and public discussions the securities
contracts (regulations) Act became law in 1956.

Definition of Stock Exchange

Stock

exchange

means

anybody

or

individuals

whether

incorporated or not, constituted for the purpose of assisting,

regulation or controlling the business of buying, selling or dealing in
securities.

It is an association of member brokers for the purpose of self

regulation and protecting the internets of its members. It can
operate only if it is recognized by the Govt. under the securities
contract (regulation) Act, 1956 the recognition is granted under
section 3 of Act by the Central Govt. ministry of finance.

Byelaws
Beside the above act, the securities contract (regulation) rules were
also made in 1975 to regulate certain matter of trading on Stock
Exchange. These are also byelaws of the exchanges, which are
concerned with following subjects.
Opening/Closing

of

the

Stock

Exchange,

timing

of

trading,

regulation of blank transfer, regulation of Badla or carryover

business, control of statement, and other activities of stock
exchange, fixation of margins, fixation market price or making
price, regulation of intraday (jobbing), regulation of broker trading,
brokerage charges, trading rules on exchanges, attribution and
settlement of disputes, settlement and clearing of the trading etc.

Regulation of stock exchange

The securities contract (regulation) is the basis of the stock
exchange in India. No exchange can operate legally without the
Govt.

permission or recognition.

Stock exchanges

are

given

monopoly in certain areas under section 19 of the above Act to

ensure that the control and regulation are facilitated. Recognition
can be granted to a stock exchange provided certain condition are

satisfied

and

the

necessary

information

is

supplied

to

the

government. Recognition can also be withdrawn, if necessary.

Where there are no stock exchanges, the government can license
some of the brokers to perform the function of stock exchange in its
absence.

SECURITIES AND EXCHANGE BOARD OF

INDIA (SEBI)

SEBI was setup as an autonomous regulatory authority by the

Government of India in 1988 to perform the interest of investors in
the securities and to promote the development of, and to regulate
the securities market and for matters connected therewith or
incidental thereto. It is empowered by two Acts namely the SEBI
act, 1992 and the securities contract (regulation) Act 1956 to
perform the function of protecting investors right and regulating the
capital market.

Bombay Stock Exchange

The stock exchange, Mumbai, popularly known as BSE was
established in 1875 as The Native share and stock broker
association, as a voluntary non-profit making association. It has an
evolved over the year into its present status as the premiere stock
exchange in the country. It may be noted that the stock exchanges
the oldest one in the Asia, even older than the Tokyo Stock
Exchange, which was founded in 1878.
The Exchange, while providing an effective and transparent market
for trading in securities, uphold the interest of the investors and
ensure

redressed

of

their

grievances,

whether

against

the

companies or its own member brokers. It also strives to educate

and

enlighten

the

investors

by

making

available

necessary

informative inputs and conducting investor education programmes.

A governing board comprising of 9 elected directors, 2 SEBI
nominees, 7 public representatives and an executive director is the
apex body, which decides the policies and regulates the affairs of
the exchanges.
The executive director as the chief executive officer is responsible
for the day today administration of the exchange.

The average

daily turnover of the exchange during the year 2000-01 (AprilMarch) was Rs. 3984.19 crores and average number of daily trades
5.69 lakhs.
However the average daily turn over of the exchange during the
year 2001-02 has declined to Rs. 1244.10 crores and number of
average daily trades during the period to 5.17 lakhs.
The average daily turn over of the exchange during the year 200203 had declined and number of average daily trades during the
period is also decreased.
The Ban on all deferral products like BLESS AND ALBM in the Indian
capital markets by SEBI with effects from July 2, 2001, abolition of
account period settlements, in all scripts traded on the exchanges
with effect from Dec 31, 2001, etc., have adversely impacted the
liquidity and consequently there is a considerable decline in the
daily turn over at the exchange. The average daily turn over of the

exchange present scenario is 110363 (laces) and number of

average daily trades 1057 (laces).

BSE Indices
In order to enable the market participants analysis etc., to track the
various ups and downs in the Indian stock market, the Exchange
has introduced in 1986 an equity stock index called BSE-SENSEX
that subsequently became the barometer of the moments of the
share prices in the Indian Stock market.
capitalization

weighted

index

of

30

It is a Market
components

stocks

representing a sample of large, well-established and leading

companies.

The base year of Sensex is 1978-79.

The Sensex is

widely reported in both domestic and international markets through

print as well as electronic media.
Sensex is calculated using a market capitalization weighted method.
As per this methodology, the level of the index reflects the total
market value of all 30-component stocks form different industries
related to particular base period.

The total market value of a

company is determined by multiplying the price of its stock by the

number of shares outstanding. Statisticians call an index of a set of
combined variables (such as price and number of shares) a
composite Index.

An Indexed number is used to represent the

results of this calculation is order to make the value easier to work

with the track over a time. It is much easier to graph a chart based
on Indexed values than one based on actual values world over

majority of the well-known Indices are constructed using Market

capitalization weighted method.
In practice, the daily calculation of SENSEX is done dividing the
aggregate market value of the 30 companies in the Index Divisor.
The keeps the Index comparable over a period or time and if the
reference point for the entire Index maintenance adjustments.
SENSEX is widely used to describe the mood in the Indian Stock
Markets.

Base year average is changed as per the formula new

base year average = old base year average* (new market value/old
market value).

National Stock Exchange

The NSE was incorporated in Now 1992 with an equity capital of
Rs. 25 crores.

The international securities consultancy (ISE) of

Hong Kong has helped in setting up NSE.

ISE has prepared the

detailed business plans and installation of hardware and software

systems.

The promotions for NSE were financial institutions,

insurance

companies,

banks

an

SEBI

capital

market

ltd.,

Infrastructure leasing and financial services ltd. and stock holding

corporation ltd.
It

has

been

set

up

to

strengthen

the

move

towards

professionalisation of the capital market as well as provide nation

wide securities trading facilities to investors.

NSE is not an exchange in the traditional sense where brokers own

and mange the exchange. A two tier administrative set up involving
a company board and a governing abroad of the exchange is
envisaged.
NSE is a national market for share PSU bonds, debentures and
government securities since infrastructure and trading facilities are
provided.

NSE-NIFTY
The NSE on April 22, 1996 launched a new equity Index. The NSE50. The new index, which replaces the existing NSE-100 index, is
expected to serve as an appropriate Index for the new segment of
futures

and

options.Nifty

means

National

Index

for

Fifty

Stocks.The NSE-50 comprises 50 companies that represent 20

board Industry groups with an aggregate market capitalization of
around Rs. 1,70,000 crores.

All companies included in the Index

have a market capitalization in excess of Rs. 500 crores each and

should have traded for 85% of trading days at an impact cost of less
than 1.5%.
The base period for the close of prices on Nov 3, 1995, which makes
one year of completion of operation of NSEs capital market
segment. The base value of the Index has been set at 1000.

NSE-MIDCAP INDEX
The NSE madcap Index or the Junior Nifty comprises 50 stocks that
represents 21 abroad Industry groups and will provide proper
representation of the madcap segment of the Indian capital Market.
All stocks in the index should have market capitalization of greater
than Rs. 200 crores and should have traded 85% of the trading
days at an impact cost of less 2.5 %.
The base period for the index is Nov 4, 1996, which signifies two
years for completion of operations of the capital market segment of
the operations. The base value of the Index has been set at 1000.
Average daily turn over of the present scenario 258212 (Laces) and
number of averages daily trades 2160 (Laces).
At present, there are 24 stock exchanges recognized under
the securities contact (regulation) Act, 1956.

INTRODUCTION

Indiabulls is India's leading retail financial services company with

135 locations spread across 95 cities. While its size and strong
balance sheet allow them to provide you with varied products and
services at very attractive prices, over 750 Client Relationship
Managers are dedicated to serving your unique needs.
Indiabulls is lead by a highly regarded management team that has
invested cores of rupees into a world class Infrastructure that
provides there clients with real-time service & 24/7 access to all
information and products. Their flagship Indiabulls Professional
Network

TM

offers real-time prices, detailed data and news,

intelligent analytics, and electronic trading capabilities, right at your

finger-tips. This powerful technology is complemented by there
knowledgeable and customer focused Relationship Managers.
We

are Creating a World of Smart Investor

Indiabulls offers a full range of financial services and products

ranging from Equities to Insurance to enhance your wealth and
hence, achieve your financial goals.
Indiabulls' Client Relationship Managers are available to you to help
with your financial planning and investment needs. To provide the
highest possible quality of service, Indiabulls provides full access to
all our products and services through multi-channels

THE INDIABULLS PHILOSOPHY

YOU COME FIRST

We have created a unique organization that is designed for you

the Smart Investor . We passionately believe in the Smart
Investor who wants to make his own educated investment choices
and demands world class access to a full range of services and
products ranging from Equities to Insurance, combined with the
highest level of integrity, service and professionalism.
Indiabulls is a full service investment firm offering clients access to
a tremendous range of financial services from 135 locations across
95 cities. We have a strong team of over 750 Client Relationship
Managers focussed on serving your unique needs. Our world class
infrastructure, built with tens of crores of investment, provides our
clients with real-time service, multi-channel & 24/7 access to all
information and products. As we've expanded and developed to
serve the needs of all kinds of investors, we've been guided by one
underlying philosophy: You come first.
We are proud to introduce to you Indiabulls Professional
NetworkTM that offers real-time prices, equity analysis, detailed
data

and

news,

intelligent

analytics,

and

electronic

trading

capabilities, right at your finger-tips. This powerful technology is

complemented

by our knowledgeable and customer focussed

Relationship Managers who are available to help with your financial

planning and investment needs.

We invite you to learn more about Indiabulls by calling 1 600 11

1130 (toll free) or visit our 135 Indiabulls Offices Nationwide or
explore the services we offer through the Indiabulls Market Trader.TM

HISTORY AND OTHER CORPORATE MATTERS

OVERVIEW

Indiabulls Financial Services Limited was incorporated on January

10, 2000 as M/s Orbits InfoTech Private Limited at New Delhi under
the Companies Act, 1956 with Registration No. 55 103183. The
name of the Company was changed to M/s. Indiabulls Financial
Services Private Limited on March 16, 2001 due to change in the
main objects of the Company from Infotech business to Investment
& Financial Services business. It became a Public Limited Company
on February 27, 2004 and the name of Company was changed to
M/s. Indiabulls Financial Services Limited. Company was promoted
by three engineers from IIT Delhi, and has attracted more than
Rs.700 million as investments from venture capital, private equity
and institutional investors such as LNM India Internet Ventures Ltd.,
Transatlantic Corporation Ltd., Farallon Capital Partners, L.P., R R
Capital Partners L.P., and Infinity Technology Trustee Pvt. Ltd. and
has developed significant relationships with large commercial banks
such as Citibank, HDFC Bank, Union Bank, ICICI Bank, ABN Ambro
Bank, Standard Chartered Bank, Lord Krishna Bank and IL&FS.
Company and there subsidiaries have facilities from the above
mentioned banks and financial institutions aggregating to Rs. 1760
million. Companies headquarters are co-located in Mumbai and
Delhi, allowing it to access the two most important regions for
Indian financial markets, the Western region including Mumbai, rest
of Maharashtra and Gujarat; and the Northern region, including the

National Capital Territory of Delhi, nearby cities, parts of Haryana,

Uttar Pradesh and Punjab; and access the highly skilled and
educated workforce in these cities. The Marketing and Sales efforts
are headquartered out of Mumbai; with a regional headquarter in
Delhi; and its back office, risk management, internal finances etc.
are headquartered out of Delhi, allowing our Company to scale
these processes efficiently for the nationwide network.

Main Objects Of The Company

The main objects to be pursued by the Company on its
incorporation are:
1. To hold investments in various step-down subsidiaries for
investing, acquiring, holding, purchasing or procuring equity
shares, debentures, bonds, mortgages, obligations, securities
of any kind issued or guaranteed by our Company.
2. To provide financial consultancy services; to provide investment
advisory services on the internet or otherwise; provide financial
consultancy in the area of personal and corporate finance;
publish books and CD ROMs and any other information related
to the above.
3. To conduct the business of sale, purchases, distribution and
transfer of shares, debts, instruments and hybrid financial
instruments and to perform all related, incidental, ancillary and
allied services.

4. To conduct depository participant services; to conduct dematerialization

and

re-materialization

of

shares;

set

up

depository participant centers at various regions in India and to

perform all related, incidental, ancillary and allied services.
5. To receive funds, deposits and investments from the public,
Government

agencies,

financial

institutions

and

Corporate

bodies; grant advances and loans; conduct advisory services

related to banking activities, project financing, funding of
mergers and acquisition activities; fund management and
activities related to money market operations.
6. To carry on the business of portfolio management services,
investment

advisory

services;

custodial

services;

asset

management services; leasing and hire purchase; mutual fund

services and to act as brokers of real estate and financial
instruments.
7. To carry on the business of financing; provide lease and hire
purchase services; to provide consultancy in the area of lease
and hire purchase financing.
8. To operate mutual funds; receive funds from investors; equity or
debt instrument research activity instrument in debt and/or
equity instruments.

Credit Rating
Indiabulls Securities Limited has been granted PR1+ rating for
its unsecured short term borrowing program of Rs. 200 million. Vide

letter dated May 5, 2004 the rating agency has increased the
unsecured short term borrowing limit to Rs. 320 million maintaining
the PR1+ rating. ISL also enjoys A+ rating for medium to long
term unsecured borrowing program of Rs. 200 million. The Rating to
the company has been assigned by Credit Analysis Research
Limited. As for the present issue of equity shares of our Company,
credit rating is not required.

Shareholders Agreement
Shareholders Agreement was entered into by and among our
Company

(formerly

Orbis

Infotech

Private

Limited),

Infinity

Technology Trustee Private Limited as the trustee of Infinity Venture

India Fund, LNM India Internet Ventures Limited, Transatlantic
Corporation

Limited

(together

the

VC

Investors)

and

the

Promoters dated November 2, 2000. The VC Investors invested an

aggregate amount of Rs. 206,000,000 in our Company for which
they were issued 55,425 equity shares at an average price of Rs.
3,716.73 per equity share. Pursuant to a letter agreement (the
Letter Agreement) dated May 27, 2004 between the parties to the
Shareholders Agreement, each of the VC Investors have agreed not
to enforce rights that have accrued to them before the said Letter
Agreements and have agreed that the Shareholders Agreement,
together with all the rights and obligation on the parties will stand
terminated immediately upon the listing of the shares of our
Company

and

consequent

to

the

listing,

the

rights

of

the

Shareholders Agreement, including the rights that have arisen prior

to such termination shall be terminated. A copy of the Shareholders

Agreement, and a copy of the Letter Agreement terminating the
Shareholders Agreement are available for inspection as material
documents at the corporate offices of our Company.

Key Competitive Strengths

Diverse Branch Network
Since Company inception in FY 2000 Company and its subsidiaries
have grown from a single location to a nationwide network spread
over 135 offices in 95 cities. They have a pan India distribution
networks for the purpose of distribution of financial products and
services. Such a diverse and integrated network provides a
centralized platform to there clients.
Bouquet of financial products and services
Company and its subsidiaries offer various financial services and
products ranging from equity, F & O and wholesale debt, mutual
fund, insurance and IPO distribution, equity research analysis,
depository services to cater to the specific needs of the retail and
institutional investors thus providing all these services in a single
platform.
Advanced Technology team that delivers market leading
product innovation
There ongoing investment in technology is a key element in
expanding there product and service offerings, enhancing there

delivery systems, providing fast and consistent client service,

reducing processing costs, and facilitating there ability to handle
significant increases in client activity without a corresponding rise in
risk and staff. Company and its subsidiaries have an in-house
technology team of 27 people comprising of several engineers. The
in-house technology team has been responsible for developing the
technology products for operating at a large scale with efficient back
office systems. The application of technology allows Company and
its subsidiaries to build scaleable product and service offerings. The
in-house technology team developed one of the first Internet
trading platforms in India, one of the first in-house real-time CTCL
link with NSE. Company and its subsidiaries introduced integrated
accounts with automated gateways with client bank accounts so
that they can transfer funds to and from their bank account to their
brokerage account with the Company. This has enhanced customer
ability to access their funds for market related activities. The inhouse technology team has good expertise to create mission critical
applications and in the maintenance and upkeep of high transaction
processing of there web-site.
Strong

Sales

and

Marketing

Teams

with

continuous

reinvestment and training

Companys relationship manager channel (through a team of 1050
Relationship Managers as on April 30, 2004) offers a single point
contact to retail customers whereby their high net worth clients
have separate relationship managers catering to them. These
managers offer personalized services to the customers helping build

strong and continuing relationships with them. Also, our marketing

associate channel helps Company and its subsidiaries in client
acquisitions at minimal costs with client loyalty. The marketing
associates channel also helps Company and its subsidiaries in
increasing their penetration in smaller town and cities.
Strong cross Selling Opportunities
With 135 branches spread over 95 cities all over India and variety of
financial products and offerings coupled with online, relationship
manager

&

marketing

associate

channels,

Company

and

its

subsidiaries have strong cross product selling opportunities thus

providing a multi-channel delivery systems to there diverse client
base of 71,000 clients as on July 10, 2005.
Strong Team of Experienced Promoters
Indiabulls has a strong team of promoters who are engineers from
Indian Institute of Technology and have several years experience in
financial services industry. They believe that their strong technical
experience will help them in achieving our key business strategies.
Leading Product innovation and marketing strategies
Management

is

innovative

and

nimble

and

has

historically

introduced many new and innovative products to the market place

that have played a significant role in their growth. Companys
relationship

manager

model

has

introduced

private

banking

experience to the clients. The relationship managers are trained and

incentives to work with their client base and enhance ability to cross

sell and leverage the large client base. Indiabulls have launched
marketing associate model, which replaces the traditional subbroker model with an authorized person that client can appoint
independently and provide them with the benefit of their trading,
clearing and servicing strengths. Its equity analysis product
provides

clients

with

unbiased

research.

Company

plans

to

continuously innovate and introduce market leading products and

services to add to its competitive advantage.
Well capitalized player, with strong banking relationships
and credit ratings
Indiabulls consolidated net worth is Rs. 1023.19 million making us a
well capitalized companies. The Company and ISL have received
sanctioned facilities of Rs. 1760 million from 9 leading commercial
banks

and

financial institutions.

The

details

of the

banking

relationships as of July 24, 2004 are as follows:

Ability to combine People & Technology in unique ways
They provide multiple distribution channels by combining people
and technology. Clients can visit one of the 70 offices in 55 cities or
access via telephone, call centre or online channel. Web enabled
tools such as technical analysis, information, news, interactive web
based programs and tools and back office solutions for clients and
marketing associates; Power Indiabulls an order entry, routing and
management technology through technology platform, for activelytrading investors.

Strong market presence and increased market share leads to

virtuous cycle of growth and profitability
Theyre growing client base and market share have increased their
market presence, brand recognition enhanced their profitability and
increased the available credit facilities from the banks further
strengthening its strong balance sheet. Companys brand and
profitability allows them to recruit good and efficient employees,
compensate them attractively and provides the flexibility toes for
investments in the business and technology systems. These
attributes in turn have a positive effect on the growth of its client
base thereby increasing its market share, leading to higher profits
and credit facilities and thus forming a virtuous circle.

Key Business Strategies

Their focus on the client has allowed Company and its subsidiaries
to offer a range of services that have changed the investing
landscape and created a new model of financial services that melds
people and technology to provide an integrated human assisted
technology interface service for investors who range from selfdirected full-time active investor to those who prefer to deal with
through a marketing associate in smaller towns and cities. Their key
strategies include:

Defend and maintain their differentiation as the firm that delivers

ethical and useful services

Build and expand

investing insight through product offerings

such as Equity Analysis which is objective,

Uncomplicated and not driven by commission

Give clients new levels of choice tailored to their desire for help,
tools for investing their assets, their willingness to pay for
additional services and the level of business they can do with the
company.

Provide clients with tools, relationship managers and choices that

support their desired investment outcomes. Indiabulls has
developed a client specific approach as a core element of its
business strategy and are constantly focusing on acquiring new
clients and expanding their customer base. They believe that the
strong secular growth of the Indian financial Markets, due to
increased household penetration of financial assets; increasing
liquidity and market capitalization of Indian Markets, led by the
listing of many public sector entities; and the increasing
affluence of Indian households and savers provides an impetus to
the growth perspective.

They believe that this diversification and growth strategy will

continue to produce results and allow Company and its subsidiaries
to grow business at a rapid pace irrespective of market conditions.
In addition, management believes that the growth of the Indian
financial markets, due to increased household penetration of
financial assets; increasing liquidity and market capitalization of

Indian markets, led by the listing of many public sector entities; and
the increasing affluence of Indian households and savers, favors our
long term growth outlook.
The table below encapsulates the financial metrics on an annual
basis, and compares that with the Market trading volume.
(NSE Yearly Trading Volume is taken as representative of Market
activity).
The core pillars of our business strategy are discussed
below:
Increase the number of Client Relationships
They are focused on increasing the number of client relationships
through a wide network of offices throughout India and having more
number of relationship managers to service these relationships.
They plan to grow their business by growing the number of client
relationships. During a downturn of the markets they believe that
increased number of client relationships will add stability to their
earnings.
Offer Diversified Financial Products & Services Capture
Greater Share of Wallet
Company and its subsidiaries offer to their clients a wide range of
financial services and products allowing the clients to leverage their
relationship with Indiabulls and get products suiting their varied
needs. This strategy allows them to gain share of wallet of the

clients consumption of financial services. They offer to the client a

comprehensive product offering and are able to increase their
revenues per client by selling different products to the same client.
Indiabulls

offer

equity,

debt

&

derivatives

brokerage,

IPO

distribution, mutual funds and insurance products. Their strategy is

to increase the number of client relationships and then leverage
those client relationships into offering in a whole suite of financial
products.
Multiple Channels Enhance Customer Experience and
Opportunities to interact with us
Companys clients can access their products and services through
135 offices spread across 95 cities; through operator assisted call
Centers; or through their website www.indiabulls.com; or through
their

respective

relationship

managers

or

through

marketing

Associates. These multiple channels provide flexibility to the clients

and allow them to utilize their existing business Relationship with
them through any channel from any part of India. Companys
strategy is to provide the most convenient, efficient and value
added channel to the client at the lowest possible cost, and allow
the clients with choice and varied access points. Indiabulls believe
that their multiple channel strategy has been particularly effective in
the affluent segment where many sophisticated clients like to have
a close-by office they can access and yet have the flexibility of
Internet account management, transactions and electronic funds
transfer and settlement.

Relationship Manager driven sales model, provide high

quality service and exploit cross-sell opportunities
Companys clients benefit from the personal attention and advice of
the trained and motivated relationship managers. All its relationship
managers are qualified and educated professionals, who have been
extensively trained in-house to provide the products and services to
the clients. These relationship managers are encouraged to develop
long-term relationships with the clients and can access a variety of
resources within the Company, such as insurance specialists,
research services and others to add value to their clients. Most of
the clients have dedicated relationship managers irrespective of the
channel they use.
Low cost and highly scalable business
Indiabulls

has

utilized

the

technologies

available

and

have

constantly invested in products and innovations to provide an

enhanced experience to its customers. The benefits of such
infrastructure include integrated customer trading account with
depositary services; electronic gateway for instant funds transfer to
and from the bank to the brokerage account; and comprehensive
client systems that track all activity in various segments. They
believe that technology and systems are one of the key competitive
edges in terms of lowering their operating costs; managing the
business; reducing risk and providing an enhanced experience to
the clients with superior service standards.

Brokerage Offering
Companys retail equity business primarily covers secondary market
equity broking. It caters to the needs of individual Indian and Nonresident Indian (NRI) investors. They offer broker assisted trade
execution and automated online investing and trading facilities to
their customers. Automated online investing and trading includes
automated order placement and execution of market and limit
equity orders; and advanced trading platforms for active traders. All
investors have full access to real - time quotes, personalized
portfolio tracking, charting and quote applications, real-time market
commentary, real-time quotes and news.
Online Automated Channel
Automated Online Business contributes more than 34.6% of its
overall revenues. They control more than 20% market share in the
online business. Clients are able to obtain financial information and
execute trades on an automated basis through their online channel
using product offerings like Power Indiabulls and Indiabulls
Market

Trader.

This

channel

is

designed

to

provide

added

convenience for clients and minimize its costs of responding to and

processing routine client transactions. Online channels include the
Indiabulls Group Professional Network that provides access via
their web-site www.indiabulls.com to information and trading
service on the Internet. Additionally, Power Indiabulls online
trading system is designed for the high volume trader and provides
enhanced

trade

information

and

order

execution

integrated

software-based trading platforms. While most client transactions are

completed through the online channel, they continue to stress the
importance of blending the power of the Internet with personal
service to create a full-service client interface. They offer an online
portal where the clients can execute securities purchase and sales
transactions through the Internet.
This covers the Equity, Debt & Derivatives segment in the Indian
securities market. With an objective of assisting our customers in
taking investment decisions, the portal also provides financial
information on various companies listed. For executing a transaction
clients can directly log on to our website without requiring any
assistance from offline intermediaries
Third Party Financial Products Offering
They distribute third party products and services through our
comprehensive retail distribution network. The products offered
include

third

party

insurance,

mutual

funds

and

initial

and

secondary public offerings. They have a pan India retail distribution

network, comprising 1050 relationship managers and 135 branches
spread over 95 cities.

INTRODUCTION AND CONCEPT OF SHARE

TRADING

Trading in shares is old phenomena its regulation had been started

when securities contract act had been formed in 1956. Transfer of
resources from those with idle resources to others who have a
productive need for them is most efficiently achieved through the
securities market. It provides a channel for reallocation of savings
to investments.
SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI) is a
regulatory governing body of security market. The SEBI Act 1992
was enacted to empower SEBI with statutory powers for:
(a)

Protecting the interests of investors in securities.

(b)

Promoting the development of the securities market

(c)

Regulating the securities market

Its regulatory jurisdiction extends over corporate in the issuance of

capital and transfer of securities. It has powers to register and
regulate all the market all market intermediaries and also to
penalize them in case of violations of the provisions of the ACT,
rules and regulations made there under. SEBI has a full autonomy
and authority to regulate and develop an orderly securities market.
The share market can be segmented in two parts one is Primary
Market another is Secondary Market.

Primary Market
It provides opportunity to issuers of securities government as well
as corporate to raise resources to meet their requirements of
investments. In this market companies issue fresh security sin
exchange of funds through public issues or private placements. The
market design for primary market is provided in the provision of
Companies Act, 1956 which deals with issues, listing and allotment
of securities. The investors have to apply the shares by filling the
application form issue by the company along with the application
money. According to Disclosure and Investor Protection guidelines
of SEBI, 1992 company has to disclose all the necessary information
regarding pricing of issues, listing requirements, disclosure norms
lock-in-period

for

promoters

contribution,

contents

of

offer

documents pre and post issue obligations etc.

Company can issue shares at face value, at premium or at discount.
Another method of pricing which is now days common is issuing the
securities through online system of the stock exchange has to
comply with the section 55 to 68a of the companies Act, 1956 and
SEBI guidelines 2000. The company is required to enter in to an
agreement with the stock exchanges which have the requisite
system for online offer of securities. The advantages for this new
system are:(a)

The investors part with money only after allotment.

(b)

It

eliminates

refunds

except

in

case

of

direct

applications.
(c)

It reduces the time taken for issue process

Secondary Market
Secondary market is the place for sale and purchase of existing
securities. It enables an investor to adjust his holdings of securities
in response to changes in his assessment about risk and return. It
enables him to sell securities for cash to meet his liquidity needs. It
essentially comprises of the stock exchanges which provide platform
for trading of securities and a host of intermediaries who assist in
trading of securities and clearing and settlement of trades. The
securities are traded, cleared and settled as per prescribed
regulatory framework under the supervision of the exchanges and
oversight of SEBI.

Trading Mechanism
Earlier trading on stock exchanges in India used to take place
through open outcry without use of information technology for
immediate

matching

or

recording

of

trades.

This

was

time

consuming and inefficient. This imposed limits on trading volumes

and

efficiency.

In

order

to

provide

efficiency,

liquidity

and

transparency National Stock Exchange introduced a nation wide on

line fully automated screen based trading system where a member
can punch in to the computer quantities of securities and the prices
at which he likes to transact and the transaction is executed as soon

as it finds a matching sale or buy order from a counter party.

Screen based trading electronically matches orders on a price/time
priority and hence cuts down on time, cost and risk of error, as well
as on fraud resulting in improved operational efficiency. It enables
market participants, irrespective of their geographical locations to
trade with one another and it provides equal access to everybody.
NSE has main computer which is connected through Very Small
Aperture Terminal (VSAT) installed at its office. The main computer
runs on a default tolerant STRATUS mainframe computer at the
exchange. Brokers have terminals installed at their premises which
are connected through VSATs. An investor informs a broker to place
an order on his behalf.

ORGANISATIONL CHART

CHAIRMAN & CEO

Rajeev Rattan
President & CEO

Sameer Gehlant
CEO

Gagan Banga
Head online sales

T.S. Muglani
Chief Tech
officer

Surabh Mital
CEO

Oivyesh Shah
Head online sales

Pheeta Nagpal
Head- HR

Ashok Sharma
Finance
Controller

Suresh Jain
V.P

ACCOUNTS AND FEATURES

Through various types of brokerage accounts, they offer purchase
and sale of securities, which includes Equity, Derivatives and
Commodities listed on NSE, BSE and NCDEX. Additionally, they
provide their clients access to a variety of insurance products like
life, term and annuity products through third-party insurance
companies like Birla Sunlife Insurance Company. Indiabulls Group
Signature Client is designed to serve self-directed individual
investors who want to manage their own portfolios. For these
clients, they offer this account, which is a stock trading account that
allows clients to combine investments and cash in one-account and
trade securities. Clients are also eligible to subscribe to Indiabulls
Equity Analysis, a fee based research offering. Other features of
Indiabulls Group Signature Account include priority handling of
their service calls at the Centralized Customer Service Centre and
through

dedicated

relationship

managers.

Indiabulls

Group

Signature account features include online integrated net transfers

via integrated payment gateways with banks such as HDFC Bank.
Power Indiabulls - For active traders, They offer Power Indiabulls
accounts that include access to special features and services such
as advanced trading tool dedicated team of relationship managers.
Indiabulls offers a full range of financial services and products
ranging from Equities to Insurance to enhance your wealth and
hence achieve your financial goals.

Indiabulls

Professional

NetworkTM

offers

real-time

prices,

detailed data and news, intelligent analytics, and electronic trading

capabilities, right at your finger-tips. This powerful technology is
complemented

by

our

knowledgeable

and

customer

focused

Relationship Managers.
Indiabulls' Relationship Managers are available to you to help with
your financial planning and investment needs. To provide the
highest possible quality of service, Indiabulls provides full access to
all products and services through multi-channels.

Equities and Derivatives

Our Retail Equity Business caters to the needs of individual Indian
and Non-Resident Indian (NRI) investors. Indiabulls offers broker
assisted trade execution, automated online investing and access to
all IPO's.
Through various types of brokerage accounts, Indiabulls offers the
purchase and sale of securities which includes Equity, Derivatives
and Commodities Instruments listed on National Stock Exchange of
India Ltd (NSEIL), The Stock Exchange, Mumbai (BSE) and NCDEX.

THE FACILITIES PROVIDED BY INDIABULLS

Indiabulls Signature Account

A multitude of ways to access your account either through priority
access to Relationship Manager over phone or online access to your
Account & Research Tools.
Indiabulls Signature Account Features
Priority Service Enjoy priority telephone access that gives you
direct access to your Relationship Manager.
Premium Research Benefit from full access to Indiabulls Equity
AnalysisTM, our objective, fact-based approach to rating stocks.
Online Accounting Stay on the top of your investments with a
snapshot of your Account Statements. Get access to Portfolio
statement and access to digital contract notes.
Benefits
Control Stay on top of your investments with convenient access
to your account online or by phone.
Confidence Support your investing decisions with premium indepth research - Indiabulls Equity Analysis.TM
Value Enjoy competitive commissions and get the service and
support you need at a fair price.

Power Indiabulls
Indiabulls is dedicated to empower Active Traders through personal
service and advanced trading technology.
Active Trader - Get More At Indiabulls
Regardless of how the market is performing or which way the
economic winds are blowing, you, as a trader, are researching,
charting, crafting a strategy, buying and selling. You are getting in,
getting out and moving on to the next trade.
Choose from a comprehensive offering of accounts, platforms and
products. Customize our technology and services to support the way
you work.
Features of Power IndiabullsTM
Live Streaming Quotes
Fast Order Entry
Tic by Tic Live Charts
Technical Analysis
Live News and Alerts
Extensive Reports for Real-time Accounting

Benefits
Comprehensive Financial Services As an Active trader, you'll
have the tools, resources and support you need to execute your
trading strategy, plus your choice of a wide range of investment
products and services.
Dedicated Support and Services Enjoy priority access to
Relationship Managers who are dedicated to supporting your trading
and investing needs.
Non-Resident Indian (NRI) Investor Services
With an extensive range of investment products, you will discover
an unwavering commitment to helping you invest in India.
Facilities
Indiabulls

NRI

Trading

Account

Provides

access

to

comprehensive trading tools for independent NRI investors

Indiabulls

Depository

Services

Integrated

services

for

seamless delivery
HDFC Bank Account - NRE/NRO Accounts with built in tax
management

solutions

and

facility

to

source

all

regulatory

approvals.
Indiabulls

Equity

AnalysisTM

companies updated daily.

Premium

Research

on

200

Benefits
Indian Investments Brings You More Choices
Investing in India, one of the world's fastest emerging financial
markets, means a wider choice of investment opportunities and
industries. At Indiabulls, you can take full advantage of the
emerging Indian market.
See what indiabulls offer
Indiabulls provide you with a Seamlessly integrated trading,
depository and bank account enabling you to trade from anywhere
in the world.
Investing in India, one of the world's fastest emerging financial
markets, means a wider choice of investment opportunities and
industries. At Indiabulls, you can take full advantage of the
emerging Indian market.
Indiabulls provide you with a Seamlessly integrated trading,
depository and bank account enabling you to trade from anywhere
in the world.

Depository Services
Indiabulls is a depository participant with the National Securities
Depository Limited and Central Depository Services (India) Limited
for trading and settlement of dematerialized shares. Indiabulls
performs clearing services for all securities transactions through its
accounts. They offer depository services to create a seamless

transaction platform execute trades through Indiabulls Securities

and settle these transactions through the Indiabulls Depository
Services. Indiabulls Depository Services is part of value added
services for their clients that create multiple interfaces with the
client and provide for a solution that takes care of all your needs.
ISL is a depository participant with the NSDL and CDSL for trading
and settlement of dematerialized shares. It performs clearing
services for all securities transactions through its accounts. Clients
of the brokerage business are able to use the depositary services to
execute their trade through ISL and settle these transactions
through our depositary services. Indiabulls depositary service is part
of the value-added offerings to create multiple interfaces with the
client.

INSURANCE OVERVIEW

When you hear the word Insurance, the words boring and mundane
probably enter your mind.
Insurance Products
IIAPL is a Corporate Agent of Birla Sunlife Insurance Co., which is
Indias second largest private insurance company. It offers life
insurance and annuity products. The insurance experts assist
relationship managers in evaluating the near term and long term
financial needs of clients and design programs that they believe
would best suit their needs and help them manage their risks.
Insurance experts also co-ordinate with underwriting partners to
complete the insurance transaction. IIAPL has a network of 77
insurance experts spread across its branch network. IIAPL has been
awarded the Flying Start award by Birla Sunlife Insurance Co. for
outstanding contribution towards growth and success of the
partnership.
When it comes to business, you are right up there. Taking all those
split second decisions, avoiding pitfalls and making sure your money

works hard for you. But don't you think the business of life requires
just as much attention and probably even more. That's we are
proud to bring to you an offer exclusively for you. As a part of our
endeavor to provide you with world-class products and services,
Indiabulls gives you the opportunity to avail of the whole range of
Birla Sunlife Insurance Products through the Indiabulls network of
1050 Relationship Managers over 135 locations nationwide. Which
means you can take care of life, while taking care of business. As
always, we put your needs first.
Products: Individual Life
Live Long Retirement Plan
Flexi Save Plus Endowment Plan
Flexi Cash Flow Money Back Plan
Flexi Life Line Plan
Flexi Secure Life Retirement Plan
Premium Back Term plan
My Child
Riders
Birla Sun Life Term Plan
Single Premium Bond
Classic Life

Critical Illness Plus Rider

Critical Illness-Women Rider
Products : Group Life
Group Term Insurance
Group Superannuation Plan
Group Gratuity Plan
Forms
FAQ : Group Protection Solution Plan
FAQ : Group Superannuation Plan
FAQ : Group Gratuity Plan
Bima Kavach Yojana

Indiabulls Equity Analysis

They seek to provide their clients with customized research reports
called Indiabulls Equity Analysis. It provides clients with an
objective stock rating system on more than 200 stocks, assigning
each equity a single grade: A, B, C, D, or E. On average, A-rated
stocks are expected to strongly outperform the overall market over
the next 12 months, while E-rated stocks are expected to strongly
underperforms the market. Indiabulls Equity Analysis leverages
their

strong

methodology.

technology

strengths

to

systematic

ratings

Objective guidance to help you buy or sell

Building and maintaining your ideal portfolio demands objective,
dependable information. Indiabulls Equity AnalysisTM helps satisfy
that need by rating stocks based on carefully selected, fact-based
measures. And because we're not focused on investment banking,
we don't have the same conflicts of interest as traditional brokerage
firms. This objectivity is only one important difference in our
ratings.
A scale of A, B, C, D and E
A to E ratings are applied to over 401 Indian headquartered stocks
using a wide variety of investment criteria from four broad
categories.
Rating is Understandable and Actionable
Over the next 12 months, A-rated stocks have a return outlook of
strongly outperforming the market while E-rated stocks have a
return outlook of strongly underperforming the market. Find out
more about using Indiabulls Equity AnalysisTM
The Indiabulls Equity AnalysisTM model attempts to gauge investor
expectations, since stock prices tend to move in the same direction
as changes in investor expectations.
Stocks

with

low

and

potentially

improving

expectations tend to receive A or B ratings.

investor

Stocks with high and potentially falling investor expectations

tend to receive D or E ratings.
Special Considerations
Indiabulls Equity AnalysisTM also do not reflect the possible impact
of late-breaking news since the ratings are updated daily. Thus, it is
important to conduct additional research prior to making a trading
decision Indiabulls' systematic approach is dependent on the
accuracy of financial data provided by third parties. Indiabulls
Equity AnalysisTM may not capture more subjective, qualitative
influences on return and risk, such as management changes and
pending lawsuits.
Parameters

used

by

Indiabulls

to

give

grades

to

the

individual stock
Indiabulls

Equity

Analysis TM'

four

underlying

components

(Fundamentals, Valuation, Momentum and Risk) are provided to

give you further insight into why a stock has a particular Indiabulls
Equity Rating. The component grades should not be used alone in
making investment decisions. Always consider your investment
goals, portfolio diversification and tax situation and check recent
news before making an investment decision on an individual stock.
Fundamentals
The

Fundamentals

grade

underlying

the

Indiabulls

Equity

AnalysisTM is based upon several earnings-quality measures derived

from

recent

financial

statement

data.

Stocks

with

strong

fundamental attributes such as a track record of high net profit

margin and return on equity tend to have better Fundamentals
grades.
Valuation
The Valuation grade underlying the Indiabulls Equity AnalysisTM is
based upon several value-oriented investment criteria. Companies
that are commanding a higher valuation in the market currently as
compared to others having similar earnings and other parameters
shall get a lower rating than others. The aim of this component is to
judge the attractiveness of a particular stock. Typically stocks with
lower PE ratio and other valuation related parameters would get
higher valuation grades.
Momentum
The Momentum grade underlying the Indiabulls Equity AnalysisTM
measures the potential of the stock to keep performing at a
stronger than market level in the near future. IndiaBulls uses the
opinions collected from a panel of analysts to get to a momentum
rating for a company.
Risk
The Risk grade underlying the Indiabulls Equity AnalysisTM is based
upon several diverse measures of investment risk. Larger stocks
with good risk related attributes (such as low stock price volatility,
low debt-equity ratio, high stock liquidity etc.) tend to have better
risk grades.

Mutual Funds
They provide various mutual funds (equity, debt and balanced
mutual funds) through our retail distribution network. They offer
clients a wide variety of mutual funds from Asset Management
Companies like Prudential ICICI Mutual Fund, HDFC Mutual Fund
etc.

Indiabulls Easy Money

No questions. Only Loans.
No matter where you work, or how much you earn, we offer you the
shortest route to a loan with minimum paperwork and procedures.
With EasymoneyTM, you can avail of easy loans for a minimum of
Rs.10, 000 to a maximum amount of Rs.1, 00,000.
With absolutely No Prepayment Penalty.
Easymoney Team features
Flexible loan tenor of up to 4 years (i.e. 1 month to 48 months).
Loans available from a minimum of Rs.10,000 up to a maximum of
Rs.100,000.
Easy monthly repayment through equated monthly installments
(EMI).
Mediclaim Insurance bundled with every loan you avail.
Easy documentation and quick disbursal.

You take today and you can pay it tomorrow with no penalties

INDIABULLS-IN NEWS 2005

Farallon pays Rs 88cr for 33% stake in Indiabulls arm [The

Times Of India ( Jan 3, 2005 )
Merrill Lynch acquires 2% in Indiabulls

[Economic Times -

India ( June 29, 2005 ) ]

Amaranth to pick up 42.5% stake in Indiabulls [Economic
Times - India ( June 08, 2005 ) ]
US Fund Amaranth LLC Acquires 42.5 Percent Stake In
Indiabulls IPO ...

[Business Wire -San Francisco, CA, USA ( June

07, 2005 ) ]
Toddler takes giant steps [Business India ( Feb 28-Mar 13,
2005 ) ]
Indiabulls raises $60m via GDR issue

[ Sify ( Feb 25, 2005 ) ]

Indiabulls GDR priced at Rs 107 per share

[Moneycontrol.com

(Feb 25, 2005)]

Indiabulls prices $45mn GDR issue

[Business Standard (Feb

25, 2005 ) ]
Indiabulls raises $60 mln via GDR issue - BSE [Reuters India
(Feb 25, 2005)]

Indiabulls Financial prices GDR issue at US $45 million

[Myiris.com (Feb 25, 2005)]
Indiabulls GDR priced at Rs 107/share

[Economic Times (Feb

25, 2005)]
Indiabulls' net grows 173% in Q3

[Economic Times (Jan 13,

2005)]
Indiabulls for FII stake in Credit Services

[Moneycontrol.com

(Jan 13, 2005)]

Indiabulls

third-quarter

net

jumps,

income

rises

too

[Hindustan Times (Jan 13, 2005)]

Indiabulls Q3 net soars 175% to Rs 18.4cr - New Delhi,India
[Moneycontrol.com (Jan 13, 2005)]
Indiabulls Q3 profits soar 173% to Rs. 18.4 crores

[Sify (Jan

13, 2005)]
Indiabulls plans to hike FII limit to 100%, EGM postponed:
[New Kerala (Jan 13, 2005)]
Farallon buys 33% in Indiabulls arm

[The Economic Times

(Jan 3, 2005)]
Farallon buys 33% in Indiabulls Credit
(Jan 3, 2005)]

[Business Standard

RESEARCH METHODOLOGY

The methodology section is the blue print for researcher activity and
specifies bow the investigator intents to study the people or
describe social settings. In other words the methodology section
make explicit the study desire and constitutes the how to do it
phase.
The project study has been conducted by collecting primary data
only using structured questionnaire. No secondary data is used.
I have put my best possible effort to do this research and collect the
necessary information to learn about this topic thoroughly.

OBJECTIVES OF THE RESEARCH

To study investors behavior towards different attributes such as

risk, return liquidity etc. of investment in Equities.

To study the issues and challenges that investors face while

making investment in share market.

To study the preferences and perceptions of investors regarding

various financial products from the stable of Indiabulls Securities
Ltd. so that the firm can benefit from the findings of the report in
launching any new investment product in future.

DATA COLLECTION

The data collected was a primary in nature no secondary data was

used. Primary data was collected using structured questionnaire.
The questionnaire has been designed for the target group to get the
best amount of data possible keeping in view the importance and
authenticity of the information and convenience of the respondent.
The selection of investor was predetermined in nature Personal
contacts were established to conduct a face-to-face interview.
Interview was conducted under strict supervision to maintain the
standards of the data collected.

Research Design

Research Idea

Research Question

Research Statement

Research Methodology

Data Collection and Surveying

Data Analysis

Findings and Recommendations

Research design
Research design is a specification of methods and procedures for
acquiring the information we need to solve the problems. Research
design was adopted for the purpose of collection and analysis of
data in a manner aimed at getting relevant information. It was
conceptual

structure

within

which

research

was

conducted,

collected, measured and analyzed.

Research Idea
To know the market scene of trading and Investment in equities
through Indiabulls securities Ltd.

Research Question
What is the market trend regarding investment? What difficulties
and challenges investors are facing while making investments?

Research Statement
To get an insight into the mind of investors regarding trading and
investment in Equities
To get an insight into the mindset of investors regarding the
importance assigned to different attributes such as risk, return,
liquidity etc. of various investment channels such as equities. In the
report this tries to understand the investors behavior while trading.

To study the preferences and perceptions of investors regarding

various financial products from the stable of Indiabulls Securities
Ltd. so that the firm can benefit from the findings of the report in
launching any new investment product in future.

RESEARCH METHODOLOGY
Defining the populations: The population taken for the research
consists

of

investors

of

only

Delhi

region

(both

retail

and

institutional)
Defining the Sample: A random sample has been taken for the
purpose of extensive market survey. A structured questionnaire has
been prepared and the results are analyzed for precise findings.
Size & Type of Sample: A random sample of size 100 is taken for
surveying.
Method to be used: A frequency count has been done for different
parameters/

question

and

the

most

important

factors

suggested to the company for betterment of sales operations.

have

LIMITATIONS OF THE STUDY

To study share market is a very vast topic and the search is just
limited to a small portion.

Due to the reluctant nature of the respondents it was not an

easy task to collect relevant information from them.

Sometime it was difficult to make the respondents understand

the purpose of the survey.

Busy schedule of the respondents was also a major hindrance to

establish a contact with them.

It may be possible the information provided by them is not true.

SURVEY QUESTIONNAIRE

Name

Address

Phone no

1. Where do you prefer to invest your money?

a) Bank Deposits
b) Shares
c) Mutual Funds

d) Real

estate
e) Insurance Plans
2. What are the factors, which attracts you for the investment?
a) High Return
c) Low Risk

b)

Moderate Return
d) Moderate Risk

3. Do you prefer to invest in shares?

a) Yes
b) No
4. If yes, out of following, which intermediating company would you
go For?

a) Kotak Securities

b) Indiabulls

Securities
c) ICICI

d)

Fortis Securities
d) Others, please specify
5. If Indiabulls, What are the factors, which attract you to deal with
Indiabulls?

6. If Others, What are the factors, which attract you, please specify?

7. What attracts you to invest in Shares?

a) Brokerage

b)

Expertise Knowledge
c) Exposures/loan

d) Brand

8. On what basis do you prefer to trade in shares?

a) Daily

b) Monthly

c) Yearly

d) other, please

specify
9. Does the companies profile matter for the investment decisions?

a) Yes

b)

No
10. Do you require the opinion of portfolio managers to manage
your

investment?
a) Yes

b)

No

11. What is the most important service parameter that you look for
while trading.
a) Information

b) Speed

c) Quality

d) Other

12. Any recommendation / Suggestion

ANALYSIS OF THE PREFERRED INVESTMENT AREA

The investment was broadly divided into five areas, mainly-Bank
deposits. Shares, Mutual Fund ,Real Estate and insurance plans.

45
40
35
30
25
20

No. of Respondents

15
10
5
0
Bank
Deposits

Shares

Mutual
Funds

Real
Estates

Insurance
plan

Following observations can be made on the basis of above

analysis:

Bank Deposits being the most preferred area, 43% respondents

out of hundred invested in bank deposits.

The second preferred area was Shares as 27% respondents were

investing in the share market.

Then preferred area was the Mutual Funds with 13% of

respondents

Real estates were the least preferred area i.e. only 7%

ANALYSIS OF THE FACTORS AFFECTING THE

INVESTMENT

The factors are categorized in to four parameters to know the

purpose of investment made by the investor.

15
4

52
29

High returns
Moderate Return
Low Risk
Moderate Risk

52% respondents go invests for higher returns.

29%

respondents

prefer

investments.

15% prefer moderate risk.

Only 4% for Low risk.

Moderate

Return

for

their

ANALYSIS FOR INTERMEDIATING COMPANY

These factors are categorized into brokerage, Information provided

by them the exposure limit or loan facility provided by them and
their Brand Name.

21% respondents choose Kotak Securities Ltd.

38% respondents choose Indiabulls Securities Ltd. for trading.

7% respondents choose ICICI direct.

4% respondents choose Fortis.

30% go for others.

ANALYSIS OF THE FACTORS FOR BROKING HOUSE

These factors are categorized into brokerage, Information provided

by them the exposure limit or loan facility provided by them and
their Brand Name.

16

12
Brokerage
Expertise Know ledge
Exposure/Loan

28

44

Brand nam e

44% respondents choose their broking house on basis of

information provided by them.

28% prefer by the exposure limit and the loan facility provided to
them.

12% by the brokerage charge by the broking house.

16% by Brand Name.

ANALYSIS OF THE INFLUENCE OF THE PAST

PROFILE OF A COMPANY

NO
42%

58% respondents say yes they study profile of the company

before making investment.

Yes
58%

42% respondents say no.

ANALYSIS OF THE REQUIREMENT OF EXPERTISE

NO
7%

Yes
93%

93%

respondents

say

yes,

they

required

expertise

knowledge.

7% respondents say no.

MOST IMPORTANT SERVICE PARAMETER

Service Parameters

3%

20%
Speed
Quality
Information
Others

42%

35%

The most important service parameter that came up as a result

of survey is Information i.e. the investors feel that the
information contained in the service package is the key to more
profits.

Second major parameter is Quality of service.

20% investors feel that the quickness of service is above par

than any other aspect.

RECOMMENDATIONS

INDUCTION PROGRAMS must be held for the sales teams before

letting them go into the field. In these induction classes the
experienced sales staff employees should share their valuable
live experiences and knowledge, which they have experienced
while in field.

Weekly magazines must be published and distributed to the

investors that can help them for making better investments.

Sales team must be fully equipped with latest technology such as

using Laptop that can be used for making presentation to the
customers especially to the corporate clients about their product
and services provided by them.

Make your site user friendly so that more and more people know
about trading and do the same also.

Advertisement through Canopy, help to generate leads.

Company should advertise with a concern that has a brand name

in the market.

BIBLIOGRAPHY

www.indiabulls.com

www.nseindia.com

www.bseindia.com

www.moneycontrole.com

Economics Times

C.R. Kothari, Marketing Research

NCFM

Date: 1st July, 2006

TO WHOM IT MAY CONCERN

This is to certify that Mr. Mohammad Kashif Aftab, student of

Master of Business Administration, Institute of Management in
Studies, Ghaziabad

has successfully completed his training

from 1st May 2006 20th June 2006 with us and the project
report on STUDY OF OEM & REPLACEMENT TYRE
SEGMENT FOR MARUTI SWIFT is a original study done by him
under our guidance.

JOSEPH ALEX
(Marketing Manager)