Professional Documents
Culture Documents
SHAREKHAN LTD.
1. INTRODUCTION TO MARKETING
The term consumer behaviour refers to the behaviour that consumer display
in searching for purchasing using evaluation and disposing of products and
services that they expect will satisfy the needs .They study of consumer
CAPITAL MARKET :
This deals in shares and debentures. Companies raise the capital through the issue
of shares and debentures. Capital Market provides and opportunity for the
investing public to know the trend of different securities and the conditions
prevailing in the economy. Capital market is the barometer of the company by
which you are able to study the economic conditions of the country and it enables
the Government to take suitable action. The capital market has two components.
They are :
Primary Market :
A primary market is where new securities are offered to the investing public for the
first time. Hence it is also called new issue market. In the primary market , the
government and public sector undertakings as well as corporate units borrow funds
or issue capital in the form of securities, shares bonds etc., The activity here refers
to raising capital of ownership or debit nature.
Secondary Market :
The Secondary Market represents the availability of shares from the stock market
through the brokers. Share are purchased or sold according to the returns or
expectations in the future market. They can buy and sell existing securities, invest
and disinvest or re-channel funds from the company into another or one type of
securities into another the secondary market is an important adjustment of the
primary data.
Financial Institutions :
Every country needs the service of Financial institutions for accelerating the pace
of development. The institutions not only provide Financial Assistance to
Industries undertakings but also help in creating infrastructure facilities. Financial
These Financial Institutions are the main players in the Market, either in the
Primary Market or the Secondary Market. Besides giving loans and advances to
Industrial units, they invest in their debentures and equity shares, provide the seed
capital for new and small entrepreneurs, underwriter stocks, shares , debentures
and various other instruments in the capital market or subscribers to new issues or
buy and sell these instruments in the secondary market.
Apart from these NBFC’s another part of Indian financial system consists of a
large number of privately owned, decentralized and relatively small-sized financial
intermediaries. Most work in different, miniscule niches and make the marker
more broad-based and competitive. While some of them restrict themselves to
fund-based business, may others provide financial services of various types. The
entities of the former type are termed as “Non-Banking Financial Companies
(c) Such other Non-Banking Institutions or class of such Institution as the Bank
may, with the previous approval of the Central Government specify.
Reserve Bank of India has set in place additional regulatory and supervisory
measures the demand more financial discipline and transparency of decision
making on the part of NBFC’s. NBFC’s regulations are being reviewed by the RBI
from time to time keeping in view the emerging situations. Further, one can expect
that some areas of co-operation between the Banks and NDFC’s may emerge in the
coming era of E-commerce and Internet Banking.
The Task Force of NDBC’s appointed by the Government of India submitted its
report in October, 1998, which recommended rationalization of regulations for,
this depends on the jurisdiction, as in some jurisdictions, such as New Zealand, any
company can do the business of banking, and there no banking licenses issued.
Activities of NBFC’s :
Mutual Funds
Consumer Loan / Credit Card
Insurance
Leasing
Hire purchase
Factgoring
Credit Rating
Securitization
Venture Capital
Stock Broking
Primary Leadership
COMPANY PROFILE
SHAREKHAN LIMTIED
Sharekhan is a retail broking arm of S.S. kantilal Ishwarlal Investors Services Pvt.
Ltd., An organization with more than 8 decades of trust and credibility in the stock
market,. Sharekhan Ltd (Formally SSKI Investors Services Pvt Ltd.) was promoted
by Mr. Shripal. S Morkharia and Mr. Shreyas. S Morkhia. It is currently India’s
largest broking house. It is a member of the stock exchange, Mumbai. It is a
depository participant of the NSDL and CDSL. Its business includes stock broking,
depository services, portfolio management and derivatives.
The company’s core specialty lies in its retail distribution with a large network of
branches i.e. 510 share shops (retail shops) in 170 cities in India and sub-
brokers/authorized persons. Its strengths lies in its investment research capabilities.
Its research division has several analysts continuously monitoring global, national
and regional political, economic and social situations so as to assess their impact
on the economy in general, the sectors so as to assess their impact on the economy
in general, the sectors and companies they research which helps them if offering
quality research and advice to clients.
The SSKI Group Comprises of Institutional broking and Corporate Finance. The
Institutional broking division caters to domestic and foreign institutional investors,
while the Corporate Finance Division focuses on niche areas such as infrastructure.
Telecom and media. SSKI has been voted as the Top Domestic Brokerage House
in the research category by Euro Money Survey and by Asia Money Survey.
For the derivates segment, to educate the potential investors towards the share
market they provide a study kit named the ‘Derivative Digest’. And for potential
investors wanted to start the trading in the share market also provided with the
study kit ‘First Step to investing in the share market’, gives them a general
understanding about how the share market operates, and it also gives an idea
regarding the role of share brokers in the Capital Market.
These are the wide-raging services offered by the share khan to its customers. And
most importantly. Share Khan is blessed with well-dedicated sales wings, who are
looking after the various needs of the customers in a committed manner and which
provide the customers with tremendous amount of satisfaction and happiness
about their investment.
Core Services :
1. Depository Services
2. Online Trading
3. IPO Services
4. Commodity Trading on MCX and NCDEX
5. Port folio Management services.
Vision
1. To be the top most company for providing investment advisory and financial
planning services in India.
MISSION
2. Superior service
a) Integrity
b) Transparency
c) Professionalism
d) Information – product, news, operations
e) Hassle free trading
f) Enjoyable experience our goals is to accomplish top most position in both
online and offline medium of trade and also to remain a customer centric
organization.
QUALITY OBJECTIVES
ACHIEVEMENTS OF SHAREKHAN :
Rated among the top 20 wired companies along with Reliance, HUJl,
Infosys, etc by ‘Business Today’, January 2004 edition.
Awarded ‘Top Domestic Brokerage House’ four times by Euro money and
Asia money
Pioneers of online trading in India amongst the top 3 online trading websites
from India. Most preferred financial destination amongst online broking
customers.
Future Plans :
2,00,000 plus retail customers being serviced through centralized call centers
/ web solutions.
Classic Account :
This is a product for the retail investor who is risk-averse and hence prefers to
invest in stocks selectively or who does not trade too frequently. There is no
volume commitment on the part of the client. The features of the products are as
follows :
The registration charges are Rs. 750/- that is a one-time payment. With the online
package defaults demat a/c. would be opened with SSKI. For the 1st year no demat
charges have to be paid. It’s free.
The client gets exposure of up to 4 time of the deposit amount. For example if the
client has Rs. 5000/- in his/her account he/she can get the exposure up to Rs.
20,000/-
The brokerage applicable is 0.50% on delivery and 0.1 for intra day trading.
SPEED TRADE
The company will be merging speed trade and speed trade plus. There will be a
common exe called speed. Trade which allows customers to trade on both case and
F & O. account opening fee Rs. 1000.
1. Trading Facilities :
Sharekhan as a member of NSE & BSE provides both offline and online
trading facilities nationwide for trading the securities in secondary market to
its clients. The Company’s wide network of outlets spread across the country
facilities to executive the orders in secondary market.
The company also facilitates the trading system for trading in secondary
market under future and options segment of NSE and BSE. The equity
dealers in the company will be eager to give insights into the new sets
introduction in the Indian Capital market futures and options.
3. Depositor Services :
4. Margin Financing :
7. Equity Research :
8. Internet Trading :
Investors can also trade their securities through this facility by logging into
company’s website. The virtual world that Sharekhan offers online trading
services through.
Share Khan was amongst the pioneers of online trading in India and has launched
Sharekhan.com in February 2000. Since the, they have been at the forefront in
understanding customer needs, analyzing trends and brining innovation in their
offerings. They have online trading products that are customized to the habits and
preferences of investors as well as traders.
ORGANIZATION STRUCTURE
Your Investment decisions should not be based on rumours, gut feel or emotions ;
but should be taken after a careful study of facts. Most investors who have made
their money in the stock market are those who have been patient, have backed their
investments with logic and have never lost sight of common sense.
1. Fundamental Research
This requires you to rate a stock based on its historical performance and
growth parameters. This type of research involves a careful scrutiny of the
financials of a company.
2. Technical Analysis
This requires you to predict the trend in the market or the price of a company
based on historical price movements, using certain statistical parameters.
Sharekhan provides news letters and analytical reports to help you decide which
share to select and when to buy or sell them. Account holders get research – based
investment advice with recommendations to buy shares of companies whose
prospects are good. These recommendations are termed as “ Stock Ideas”
Sharekhan customers also get a host of services including timely research reports
(Sharekhan stock Ideas).
CAPITAL MARKETING
Concept of Marketing :
At the recent stage, marketing has gained a wide recognition because of the
increasing pace of production. To a great extend, economic growth of a country
depends on the performance of marketing activities which stimulates the demand
for goods and services and leads to higher production. Marketing is further
widened. The modern marketing helps to explore the means of expanding and
supplementing them, but not to accept the limitation of resources.
Marketing to a great extend, help in the development of the standard products and
services and increases the standard of all field. Marketing itself being a complex
mechanism, involves a number of functions and sub functions which call for
different specialized persons for employment.
The Indian Financial system has established a strong link between savings and
investments by creating a unique mechanism through which varied economic
activates are created, sustained and developed. In this background the Indian
financial system which supplies the necessary financial inputs for the production of
goods and services which in turn promote the well-being and standard of living of
the people in the country.
Thus financial system is a broad and comprehensive term which brings under its
fold the capital market which supports the system.
Capital Market :
The capital market in India may be classified into two categories that is organized
and unorganized. The structure of my capital market consists of the sources of
demand for and supply of long term capital. In the organized sector of capital
market, demand for long term capital comes from corporate enterprises, public
sector enterprises, Government and Institutions. The sources of supply of funds
comprise individual investors, corporate and institutional investors, investment
intermediaries, financial institutions, commercial banks and Governments. The
unorganized sector consist of Indigenous bankers and private money lenders, here
the demand comes from agriculturists, private individuals for consumption rather
than production
Capital Market
Primary Market Secondary Market
Financial Institutions
The new issue market represents the primary market where new securities that is
shares and debentures that have never been previously issued or offered. The prime
function of Primary market is to facilitate the transfer of funds from the willing
investors to the entrepreneurs, setting up new corporate enterprises or going in for
expansion, diversification, growth or modernization. Besides helping corporate
enterprises in securing their funds, the new issue market canalizes the savings of
individuals and others into investment.
BASIC TERMS :
market, securities are offered to the public for subscription for the
purpose of raising capital or fund.
its existing securities or both for the first time to the public. This
paves way for listing and trading of the Issuer’s securities.
Mutual Fund : A mutual fund is set up in the form of trust, which has
sponsor, trustees, asset management company (AMC) and custodian.
The trust is established by a sponsor or more than one sponsor who is
like the promoter of a company. The trustees of the mutual fund hold
its property for the benefit of the unit-holders. An asset management
company (AMC) approved by Sebi managers the funds by making
investments in various types of securities.
Intra-day Profit / Loss : the difference between the price of buy and
sell is a profit or a loss. If the selling price is higher then it is intra-day
profit and vice versa.
Contract Note : a note issued by a broker to his client setting out the
details of the trade done on the stock exchange, with all details such as
name of securities, quantity, traded price, brokerage charged, other
charges if levied, net obligation (amount payable or amount receivable
from client). Many brokers issue contract note cum bill.
RESEARCH DESIGN
Introduction :
The Indian capital market has gone through a sea change. From that of business
dominated by few individual players institutional members, as did trading open
outcry and hidden deeds to screen best and transparency, facilitated by
modernization of the trading systems. The establishment of a settlement guarantees
scheme has removed counter party risk in trading. With the advent of automated
trading brought with it several associated benefits such as transparency in trading
and equal opportunity for market players all over the country. The market ability of
different financial products in the secondary market has gained much importance
with increasing competition between the institutions and also the different
products. Hence an analysis of different financial products in the secondary market
offered by Sharekhan Ltd., is tested upon the criteria of customer focus, Investment
analysis, risk analysis and management ability.
Many of the existing firms could not cope with this new environment. Most of
them sought to strengthen themselves by merges and acquisitions, diversification
or closure of some business lines which are uneconomical. Others have met the
challenges by better management talent adoption of a new organization structure,
strengthen of the information system and technology and drastic changes in their
Investment in stock market is gaining more significance in recent years with the
drastic change in the index compared to a decade ago. Stock market investment has
attracted all the other sectors of finance, as a result mutual funds, market based
insurance scheme (ULIP) has emerged. India ranked in top 10 countries in terms of
the market capitalization of its stock market.
The Indian capital market has witnessed an unprecedented growth in the past
few years, facilitated by modernization of the trading system. The criteria of tough
competition between the different institutions and the various financial products
offered by these concerns has led, to analyze the marketability of the financial
products with special reference to secondary market dealings, in the context of
Sharekhan Limited in particular.
This study has been undertaken to understand the concept and process of
marketing of financial products in the secondary market, to analyze the
perceptions and attitudes of investors regarding different financial products
offered by the Institution. It also covers the changes in investment habits of
investors as impacted by marketing. The general public is not completely
aware about different financial products offered, its profitability, risk
involvement, lock-in period of investment and functioning of stock market.
The study covers the geographical area of Bangalore City.
Investment in stock market has gained more significance in the recent years. The
public are completely aware about the details and process of dealing in securities a
pilot study conducted among investors in Bangalore city has given a direction to
this study by analyzing the marketability of different financial products offered by
the stock market and the profitability of dealing with these financial products.
Hence this study has been undertaken with the following objectives.
Methodology :
1. Company Profile
2. Articles from the Newspaper
3. Worldwide Web
4. Books and Journals
Sample Design:
Random sampling is applied for the sample survey of the account holders of
Sharekhan Pvt. Ltd.
The sample size for analyzing the perceptions and attitude of investors in relation
to investment criteria is 25.
The sample size for summarizing the findings of the front office services and back
office service offered by Sharekhan Ltd. is .
The sample size for summarizing the source of information about different
financial products by Sharekhan Ltd. is .
The objective of this study is to understand the conditions prevailing among the
investing public. Considering the cost involved, time factor and lack of awareness of
efficient data gathering techniques and tools for analysis, all the online-share trading
public may not be covered. It may not be possible to arrive at the exact value of the
findings. All study is limited to the Bangalore only.
Table -1
25
20
15 Physical
Dematerialized
10 Both
0
18-30 31-45 46-60 >60
Table : 2
25
20
15
10
0
r
es
s ive na
l ed ife en
t
he
sin ut sio loy ew ud Ot
ec p s
St
Bu Ex es Em Ho
u
of
Pr
Table : 3
No. of respondents
9 3
Pleasant
46
friendly
Unpleasant
42
Rude
As seen from chart 3, 46% of the investors said that courtesy of the staff
Table : 4
no 32
yes 68
0 10 20 30 40 50 60 70
As seen from table 4, Out of 85 respondents , 68% told that he faced the
problem while parking while 32% person told no.
Table : 5
No. of Investors
9.42
17.64
Excellent
Good
40 Satisfactory
32.94
Not Satisfactory
Table : 6
No. of respondents
4
15
16
Reasonable
Expensive
Normal
No comments
65
As seen from chart 6 . out of the 85 respondent only 15% people told that
brokerage charge is reasonable and 65 % told it is expensive. 16% told it is
normal
Table : 10
No. of respondents
11 18
9
Easy
Tedious
Vague
Difficult
62
As seen from chart 10, 62% told tedious documentation while only 18% told
it is easy
Table : 11
38
happy satisfied
not satisfied
53
As seen from table 11, 38% person told that they are happy with the facility
Table : 12
Equities
Derivatives
38 Commodities
55
As seen from table 12, many respondents invest in derivatives and equities
compared to commodities. Almost 38% of the business is from derivatives and
55% of the business in equities and remaining 7% towards commodities.
Table : 13
No. of respondents
20 20
Reasonable
Expensive
21 Normal
No comments
39
As seen from chart 13, 20% customer told Excellent , 39% told good And 18%
satisfactory
FINDINGS :
1. The age group between 18-30 project both physical and dematerialized
shares. the age group from 46-60 prefer dematerialized shares. overall the
investors prefer dematerialized share.
5. The investors, around 32.94% find the ambience and comfort satisfactory
7. The majority of the investors are satisfied with the facilities provide by
Sharekhan.
SUGGESTIONS
Reduction of charges
CONCLUSION
The success of the capital market reforms motivated the government to kick off
refers in the secondary market. Indian Investor community has undergone sea
changes in the past few years. India now has a very large investor community now
has a very large investor population and shall increasing volumes of trades.
The growing importance of the Indian stock market place may be noted in terms
of increased mobilization of funds growing number of investors account.
Indian stock market industry has remained cantered around limited product
range. Efforts to expand and develop the market innovative products have been
negligible. This has happened due to the tendency to avoid risk, inability to
understand future market development and changes in investor preference.
The absence of product diversification and a confused market situation has been
made more by the absence of an innovative marketing network. Online is
considered as one of the innovative network. The product range offered by stock
broking firms needs to be redesigned to cater the changes in the short term,
medium term and long term savings and investment markets.
The innovative product should meet the need of not only the conventional
risk-averse type of investors. The future of the Indian economy belongs to the debt
market. Therefore security dealing firms should take early initiative to capture the
potential with innovative schemes and products.
The market success of any new product particularly financial product depends
largely on its acceptance by consumers, in the case investors. Stock market
industry must undertake a well-designed and comprehensive program of investor
education especially aimed at investors in rural and semi-urban area. However this
has been mostly neglected in India. In India most of the broking business comes
from the small investors and efforts shall be concentrated about serving them
efficiently, and this would help them in being a good intermediary for providing
various financial services due to its reach to the mile.
SEBI has been playing a significant role in the regulation of stock market
SEBI’s steps like dematerializing, and trading through net etc., has increased the
transparency of the trading than before.
Even though SEBI has taken so many steps to make our stock market trading
system more transparent, always we can see that one or another scams taking place
in stock market. The government has to take necessary steps to avoid all these kind
of bad things, which rule our stock market.
In the global market place no industry can afford to be struck by inertia. But it is
management, which is crucial to the success of any business operation.
BIBLIOGRAPHY
Books
1. Business World
2. Business India
3. Business Today
4. Capital Market
5. The Economic Times
6. Business Line
Websites
1. www.tradersplace.in
2. www.sharekhan.com
3. www.bse.com
4. www.nse.com
5. www.nsdl.com
INTERVIEW SCHEDULE
(For dealers and officers)
Present Status
Process of Settlement
Process of Trading
ANNEXURE - II
QUESTIONAIRE
1. Name :
3. Age :
4. Your Preference :
a. Physical
b. Demat
c. Both
5. Occupation :
a. Business
b. Executive
c. Professional
d. Employed
e. Housewife
f. Student
a. Pleasant
b. Unpleasant
c. Friendly
d. Rude
a. Excellent
b. Good
c. Satisfactory
d. Not Satisfactory
a. Reasonable
b. Expensive
c. Normal
d. No Comments
a. Easy
b. Tedious
c. Vague
d. Difficult
a. Happy
b. Satisfied
c. Not Satisfied
a. Equities
b. Derivatives
c. Commodities
a. Excellent
b. Good
c. Satisfactory
d. Not Satisfactory