INTERNATIONAL COLLEGE FOR GIRLS

Summer Training Project Report

On
A Study of Brokerage Plans of
Globe Securities Ltd.

FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT

FOR THE AWARD OF
Bachelor in Business Administration

Supervised By
Mrs.Preeti Sharma
Management of
Departmental Studies

Submitted By
Preeti Chandani
(Bachelor
of
Business
Management)
International College For Girls
(Jaipur)

DECLARATION
I hereby declare that this report on " STUDY OF BROKERAGE PLANS OF GLOBE
SECURITIES LTD." has been written and prepared by me during the academic year 20112012. This project was done under the able guidance and supervision of Mr. Shivdhan Sharma,
Branch Manager Globe Securities Ltd., Jaipur in partial fulfillment of the requirement for the
Bachelor of Business Management Degree course of the International College For Girls.
I also declare that this project is the result of my own effort and has not been submitted to any
other institution for the award of any Degree or Diploma.
Place: Jaipur

PREETI CHANDANI

ACKNOWLEDGEMENTS
Sometimes words fall short to show gratitude, the same happened with me during this project.
The immense help and support received from Globe Securities limited overwhelmed me during
the project.
My sincere gratitude to MR. SHIVDHAN SHARMA ( Branch Manager Globe Securities
Ltd.), for providing me with an opportunity to work with Globe Securities limited.
Last but not the least, my heartfelt love for my parents, whose constant support and blessings
helped me throughout this project

PREETI CHANDANI

TABLE OF CONTENTS
I.

Declaration

11. Acknowledgement III. Abstract

Chapter 1: Introduction
1.1 Objectives of the project
1.2 Increasing internet trading
Chapter 2: Introduction to brokerage industry
2.1 Brokerage industries insight
2.2 Stock market
2.3 Stock trading
Chapter 3: Globe Enterprises Ltd.
3.1 About Globe
3.2 Pan India expansion
3.3 Financial services provided by Globe
3.4 Corporate Structure
3.5 Area of operations
3.6 Products and Services
Chapter 4: Globe Securities Ltd.
4.1 Company overview
4.2 Products offered
4.3 Equity trading
4.4 Types of accounts
4.5 Client coverage
4.6 Online trading
4.7 Incomes
4.8 SWOT analysis
Chapter 5: The Competitors

5.1 ICICI Direct

5.2 India bulls
5.3 Share khan
Chapter 6: Review of literature
Chapter 7:Hypothesis
Chapter 8: Objectives of the study
Chapter 9: Scope of the study
Chapter 10: Research Methodology
10.1 Descriptive research design
10.2 Sampling Design
10.3 Sample Size and Area
10.4 Details of the survey conducted
10.5 Data Collection Method
Chapter 11: Annexure
Chapter 12: Analysis and Interpretation
Chapter 13: Findings
Chapter 14: Recommendations
Chapter 15: References

LIST OF IILUSTRATIONS
1.

Increasing Internet trading

Graph 1

2.

Percentage of sub brokers present in each region

Graph 2

3.

Percentage of branches in each region

Graph 3

4.

Institutional structure of the Indian stock market

Table 1

5.

Pan India presence expanding

Graph 4

6.

Geographical distribution

Chart 1

7.

Corporate structure of Globe

Fig 1

8.

Globe area of operations

Table 2

9.

Increased client coverage (Equity client)

Graph 5

10. Increased client coverage (Priority client group)

Graph 6

11. Increased online trading client

Graph 7

12. Increased portfolio management client

Graph 8

13. Increased income from total brokerage

Graph 9

14. Increased income from priority service client

Graph 10

ABSTRACT
This project has been a great learning experience for me and at the same time it gave me enough
scope to implement my analytical ability. The project in Globe is to figure out the potential
brokerage plans, which can undertake the various products and services offered by the Globe.
With the advent of the internet, investors can now enter orders directly online, or even trade with
other investors via ECN's (electronic communication networks). So, most of the brokerage
houses have started providing the facility of online trading to the customers. Today even the
banks with the view of expansion and large number of customers has started providing the online
trading terminal to the customers.
As the competition from big players of online trading like Share khan, Kotak Mahindra, ICICI
Direct etc is rising Globe intends to built up a loyal customer base , the project is a step towards
the same. In this era of competition it's becoming difficult for the organizations to acquire and
retain the customers. Hence, for Globe it is of utmost importance to have satisfied existing
customers as well as to attract the other customers.
With the help of this project Globe Securities Ltd could tap the Customers potential in
investment and which would provide them various opportunities of increasing the customer base.
"Customer Relationship and Branch Operations" believes that "They would not remember what
you did but they will always remember what you said".

INTRODUCTION
Globeization has proved to be a boon for the Indian economy. After globeization there has been a
tremendous growth in the Indian economy.
Every sector of the economy has shown an outstanding performance after globeization.
The project was under taken as to study the Indian online trading. Earlier Trading was confined
in limited boundaries but now the scenario has been totally different after the entrance of online
trading. There is a cut throat competition between the broking houses. Now the brokers are more
concerned about their customers to improve their performance. The sector is undergoing
fundamental changes that have diluted its traditional role of protecting small deposits against
capital and income risk and facilitating the conversion of Savings into investment.
Also there have been a drastic increase in the volume of share traded on stock exchange and with
that the online trading has shown Bull Run.

Increasing Internet trading volume

Online trading is the service offered on the internet for purchase and sales of shares. In the real
world you place orders on your stock broker either verbally or in a written form. In online
trading you will access a stock broker's website through your internet enabled PC and place
orders through the brokers internet based trading engine. These orders are routed to the stock
exchange without manual intervention and executed their own in the matter of a few seconds.
From the past two years the volume of the internet trading has increased larrely.

(USD mn)
300,000

265140

250,000
200,000
137153

150,000
100,000
42538
50,000

4318

19653

FY 03

FY 04

FY 05
(Graph 1)

FY 06

FY 07

Introduction to brokerage industry

Post major reforms initiative in early 2000s brokerage industry in India is experiencing rapid
growth and diversity. At present apart of brokerage business industry is also offering wide range
of financial services. These developments have resulted in huge spurt in business and also
growing market share of the large sized brokerage houses has led to surge in enterprise value. In
the year 2007 IPOs of large firms (Motilal Oswal, Globe, and Edelweiss) received huge response
(Indian catalog, 2001). At the same time globe and private equity firms have taken stake in
brokerage firms. In India there are about 45 equity brokerage houses that are at present listed in
the stock exchanges.
Industry Insight

Majority of the broking firms entered the business post 1990. A majority of members
have memberships in more than one stock exchange and across equities, equity derivatives and
commodities futures in domestic and International stock exchange.

On the back of growing equity culture broking activity is spreading in Tier lI and Tier III
cities in India.

Deepening financial system and economic growth has provided growth and expansion
opportunities to broking firms. Access to public equity markets and growing international
investor's interest has enabled them to raise resources.

Although there are more than 9000 brokers registered with SEBI 80% of the turnover in
NSE and BSE is accounted by about 100 brokers.

Majority of branches are located in the North, i.e. around 40%. West has 31%, 24% are
located in South and 5% in East

In terms of sub-brokers, around 55% arc located in the South, 29% in West, 11 % in
North and 4% in East

In terms of various areas of growth, 84% firms have expressed interest in expanding their
institutional clients, 66% firms intend to increase FII clients and 43% are interested in setting up
JV in India and abroad

In terms of IT penetration, 62% firms have provided their website and around 94% firms
have email facility
% of Sub-brokers present in each region
60

55

50
40
29
Companies % 30
20

11

10

0
South

West

North

East

Branches & Sub-Brokers

The maximum concentration of branches is in the North, with as many as 40% of all branches
located there, followed by the Western region, with 31% branches. Around 24% branches are
located in the South and East constitutes for 5% of the total branches of the total sample.
In case of sub-brokers, almost 55% of them arc based in the South. West and North follow, with
30% and 11% sub-brokers respectively, whereas East has around 4% of total sub-brokers.

% of branches in each region

40
40

31
24

30
20
10

0
East

South

West

North

Region

One of the oldest trading industries that have been around even before the establishment of BSE
is the Indian Broking Industry. Post liberalization there have been number of changes, despite
this the stock broking industry was at its pace and retained its sustainable growth.

To study the trend in the stock broking industry, if we take the database of over 394 broking
firms. All the data for the study was collected through responses received directly from the
broking firms. The insights have been arrived at through an analysis on various parameters,

pertinent to the equity broking industry, such as region, terminal, market, branches, sub brokers,
products and growth areas.
Some key characteristics of the sample 394 firms are:
On the basis of geographical concentration, the West region has the maximum
representation of 52%. Around 24% firms are located in the North, 13% in the South and
10% in the East.
3% firms started broking operations before 1950, 65% between 19501995 and 32% post
1995.
On the basis of terminals, 40% are located at Mumbai, 12% in Delhi, 8% in Ahmadabad,
7% in Kolkata, 4% in Chennai and 29% are from other cities.
40 In the cash market, around 34% firms trade at NSE, 14% at BSE and 52% trade at
both exchanges. In the derivative segment, 48% trade at NSE, 7% at BSE and 45% at
both, whereas in the debt market, 31% trade at NSE, 26% at BSE and 43% at both
exchanges.

Where one firm looses out to other

Lack of well established branches put smaller brokers at a disadvantage when compared
to larger Brick and Mortar players who have presence in every corner of the country.
Bulk of client base is made up of retail investors. Institutional and other high value high
volume investors prefer to trade with so called blue chip brokers. Retail investors are
"easy come easy go" accompanied with inconsistent trading habits. In Bull Run they gain
confidence to invest but in correction phase they lose confidence easily.
High competition among Stock brokers has put significant pressure on the prices. Market
consolidation and merger are expected to keep the broking industry viable in the long run.
Demanding customers asks for 24/7/365 access to information and transaction capability.
Providing it with minimum overheads is very challenging especially for newer firms who
are yet to realize margin of scale.

Foreign banks for a slice of equity business pie

In the recent period, globe and domestic private equity firms have taken stake in brokerage firms
such as Anand Rathi (Citigroup), Edelweiss (Lehman Brothers), Geojit (BNP Paribas), SMC
(Millennium India), Motilal Oswal (New Vernon), Network Broking (Auras Bank of Hindujas)
and India Infoline (Orient Globe) etc.

STOCK EXCHANGE - BUSINESS TRENDS

INDIAN STOCK MARKETS AND EXCHANGES
There are 23 recognized stock exchanges in India, including the Over the Counter Exchange of
India (OTCEI) for small and new companies and the National Stock Exchange (NSE) which was
set up as a model exchange to provide nation-wide services to investors.

BOMBAY STOCK EXCHANGE (BSE)

Bombay stock exchange is the oldest stock exchange of India For the premier Stock Exchange
that pioneered the stock broking activity in India, 128 years of experience seems to be a proud
milestone. A lot has changed since 1875 when 318 persons became members of what today is
called "The Stock Exchange, Mumbai" by paying a princely amount of Rel.
Since then, the country's capital markets have passed through both good and bad periods. The
journey in the 20th century has not been an easy one. Till the decade of eighties, there was no
scale to measure the ups and downs in the Indian stock market. The Stock Exchange, Mumbai
(BSE) in 1986 came out with a stock index that subsequently became the barometer of the Indian
stock market.

SENSEX
SENSEX is not only scientifically designed but also based on globely accepted construction and
review methodology. First compiled in 1986, SENSEX is a basket of 30 constituent stocks
representing a sample of large, liquid and representative companies. The base year of SENSEX
is 1978-79 and the base value is 100. The index is widely reported in both domestic and
international markets through print as well as electronic media.The index is calculated on the
"Free-float Market Capitalization" methodology. The "Free-float Market Capitalization"
methodology of index construction is regarded as an industry best practice globely. All major
index providers like NIKKEI, NASDAQ and DOW JONES use the free float methodology.
The growth of equity markets in India has been phenomenal in the decade gone by. Right from
early nineties the stock market witnessed heightened activity in terms, of various bull and bear

runs. The SENSEX captured all these events in the most judicial manner. One can identify the
booms and busts of the Indian stock market through SENSEX.

NATIONAL STOCK EXCHANGE (NSE)

The National Stock Exchange of India Limited has genesis in the report of the High Powered
Study Group on Establishment of New Stock Exchanges, which recommended promotion of a
National Stock Exchange by financial institutions (FI's) to provide access to investors from all
across the country on an equal footing. Based on the recommendations, NSE was promoted by
leading Financial Institutions at the behest of the Government of India and was incorporated in
November 1992 as a tax-paying company unlike other stock exchanges in the country.
On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 The
Capital Market (Equities) segment commenced operations in November 1994 and operations in
Derivatives segment commenced in June 2000.
When India's National Stock Exchange (NSE) was started in 1994, few believed it would
survive. How could a stock exchange run by a team of untested professionals headed by a former
development banker succeed against existing stock exchanges run by third generation, savvy
stockbrokers?
Critics even went to the extent of warning that NSE's sophisticated systems would be a misfit in
an Indian capital market dominated by physical deliveries, arbitrary speculative trade, and
lengthy trade settlements.
Today, with number of trades touching 2.5 million a day and turnover touching turnover touching
Rs 100 billion in value terms, NSE towers over all the other stock exchanges in the country.
In a ten-year period (NSE completed a decade on June 30, 2004) the National Stock Exchange
has tilted the market system in favor of investors and away from a significant bias in favor of
intermediaries. For a mass of investors across the country, the NSE is now the focal point for
trading in stocks, and futures and options.
The Stock Exchange, (NSE) came out with a stock index that subsequently became another
barometer of the Indian stock market known as NIFTY.

Nifty been the focal point of investors, as it provides trading the shares as well as index in
futures and options. Before Nifty came into existence trading of index concept was not present it
was introduced by Nifty and is present in it only, till date.

CASH MARKET AND DERIVATIVES

National stock exchange gives the investors different option where an investor can deal the
equities into different market situations like cash market and derivatives. Cash market is simply
the equity market where investors have to pay the security amount which is done in BSE also but
in NSE investors has the choice of dealing in derivatives. Derivatives are the future market
where investors have the option of dealing in the price list of futures for which there a separate
index is present known as NIFTY FUTURE.
In Derivatives there are two choices available for an investor FUTURES AND OPTIONS
FUTURE - In future market shares are deal in lots these lots could be of different numbers like
100, 200, 500 etc. Investors while taking over these lots and coming under the contract takes the
position of the shares by paying the 1/3rd amount of the total holdings. (could be understood by a
formula).
Holdings of investors = (shares lot * price of the lot) / 3.
This formula explains that as investor is interested in taking 2 lots of reliance of 100 shares of
Rs. 900, the investor has to pay:
(2* 100*900) / 3 = 60000/
Which shows the investor is taking the position of Rs. 180000/- in just Rs. 60000/in future
market which the area of attraction of this particular market. These holdings are taken for 1
month, 2 months and three months according to the investor's preference. The beauty of this
contract is that the remaining 2/3rd money of the holdings are paid by the broking house the
investors dealing with. Investor coming into this contract should know that by the time of
contract he is in like of 1 or 2 months investor should clear its position before the last Thursday
of the expiry month.

OPTIONS - Option is a contract where the investor has two options to deal with CALL and
PUT. The concept of call and put is opposite to each other call is the contract where the investors
believe that the market is going to be BULLISH in near future and put option is taken when he
thinks that the market is going to be BEARISH in the future.
In the call option investors is benefited if market drives up in future and input will, be benefited
if it slips down.

 Funds mobilized in primary market rose to Rs l, 74,143 cr through 558 issues in 2007-08
against Rs 55,654 cr through 451 issues in 2006-07. Out of this Rs 87,029 cr were raised
through 124 public and right issues against Rs 33,508 cr through 124 issues in 2006-07.
Total of Rs 42,595 cr was raised through 85 IPOs in 2007- 08 against Rs 28,504 cr raised
through 77 IPOs in 2006-07.
Net resource mobilization by mutual funds grew to Rs 1, 53,801 cr in 200708 with a 63%
rise from Rs 93,984 cr in 2006-07. Cumulative Assets under management rose to Rs 5,
05,152 in March 2008 from Rs 3, 26,292 in March2007.

Institutional Structure of the Indian Stock Market

Market Intermediaries

Number of Intermediaries as on March

31, 2009

Stock exchanges (each Market)

19

Stock Exchange (Derivative Market)

Brokers (Cash Segment)

9487

Corporate Brokers (Cash Segment)

4183

Sub Brokers Cash Segment

44073

Brokers (Derivatives)

1442

FII

1319

Custodians

15

Depositories

Merchant Bankers

155

Bankers to an Issue

50

Underwriters

35

Mutual Funds

40

(Table 1)

Stock Trading

Traditionally stock trading is done through stock brokers, personally or through telephones. As
number of people trading in stock market increase enormously in last few years, some issues like
location constrains, busy phone lines, miss communication etc start growing in stock broker
offices. Information technology (Stock Market Software) helps stock brokers in solving these
problems with Online Stock Trading.
Online Stock Market Trading is an internet based stock trading facility. Investor can trade shares
through a website without any manual intervention from Stock Broker.
In this case these Online Stock Trading companies are stock broker for the investor. They are
registered with one or more Stock Exchanges. Mostly Online Trading Websites in India trades in
BSE and NSE.
There are two different type of trading environments available for online equity trading.
Installable software based Stock Trading Terminals
These trading environment requires software to be installed on investors computer. This
software is provided by the stock broker. This software's require high speed internet
connection. These kind of trading terminals are used by high volume intraday equity
traders.
Advantages:
Orders directly send to stock exchanges rather than stock broker. This makes order
execution very fast.
It provide almost each and every information which is required to a trader on a single
screen including stock market charts, live data, alerts, stock market news etc.

Disadvantages:

 Location constrains - You cannot trade if you are not on the computer where you have
installed trading terminal software.
It requires high speed internet connection.
These trading terminals are not easily available for low volume share traders.
Web (Internet) based trading application
These kind of trading environment doesn't require any additional software installation. They are
like other internet websites which investor can access from around the world through normal
internet connection. Below are few advantages and disadvantages of Online Stock Market
Trading:
Advantages of Online Stock Trading-(Website based):
Real time stock trading without calling or visiting broker's office. Display real time
market watch, historical data's, graphs etc. Investment in IPOs, Mutual Funds and Bonds.
Check the trading history; Demat account balance and bank account balance at any time.
Provide online tools like market watch, graphs and recommendations to do analysis of
stocks.
Place offline orders for buying or selling stocks.
Set alert to inform you certain activity on the stock through email or sms.
Customer service through Email or Chat.
Disadvantages of Online Stock Trading (Website based):
Website performance - sometime the website is too slow or not enough user friendly.
Little long learning curve especially for people who don't know much about computer
and internet.

Globe Entreprises Ltd.

Globe Enterprises ltd (GEL), incorporated in 1984 and promoted by RANBAXY group, is the
holding company of 11 subsidiaries. It is among the leading integrated financial services group in
the country today. Globe is a diversified financial services group of India offering a multitude of
investment options. Each of its subsidiaries is engaged in a wide spectrum of financial products
and services targeted at retail, high-net worth individuals, corporate and institutional clients. The
services offered by the group include share broking, financing loans against shares, IPO
financing, distribution of
Mutual funds, insurance broking, commodity broking, wealth management, advisory services,
private equity, merchant banking and trading in arts and articrafts. The major revenue drivers for
the company are its retail equity broking arm Globe Securities and Globe Finevest, which
finances loans against shares.
The diverse bouquet of financial services which Globe offers can be broadly clubbed across three
key verticals - Retail, Institutional and Wealth spectrums. The services extend from asset
management, Life Insurance, wealth management to equity broking, commodity broking,
investment banking, lending services, private equity and venture capital. Globe has also ventured
into the alternative investments sphere through its holistic arts initiative and Film fund. With a
view to expand, diversify and introduce offerings benchmarked against globe best practices,
Globe operates in the life insurance space under 'AEGON Globe Life Insurance Company
Limited' and wealth management under the brand name 'Globe Macquarie Private Wealth'.
(www.globe.in)
Globe has a pan India presence, 1837* locations across 498* cities and towns. It also currently
operates from nine international locations following its acquisition of London's brokerage &
investment firm, Hichens, Harrison & Co. plc. (Now Globe Hichens, Harrison Plc).

Pan India Presence Expanding

2000
1600
979

1200
800
400

1575

1464

Locations

459

Cities

330

455

465

110

0
FY 06

FY 07

FY 08

1Q FY09

(Graph 4)

Globe ("company") is an integrated financial services institution offering a wide range of

financial products and services to retail investors, high net worth individuals and corporate
and institutional clients including equity and commodity broking, online trading, wealth
advisory services, investment banking and insurance broking.
Globe has grown rapidly from what was larrely an equity trading company into a diversified
financial services company operating through its 11 subsidiaries.
As on June 30, 2009, Globe has operations at 1,575 locations across 465 cities
and towns and a large management team leading group of over 9,500 employees.

Recently acquired Hichens, Harrison & Co. ("Hichens") one of the oldest broking firms in
London, for a sum of GBP 55.5 million.
Acquisition to boost the institutional and investment baking operations of Globe and extend its
geographical reach to London, South Africa, Argentina, Brazila, Dubai, Qatar, Singapore,
Malaysia and Indonesia..

Geographical Distribution

Mumbai; 9%
Gujarat; 11%

North; 31%

Maharashtra; 12%

East; 13%

South; 24%

Diversified Integrated Financial Services Platform

Recently growth and established business testimony of Globe's commitment becoming
the investment gateway of India.
Diversified product portfolio with individually focused management team to create
optimum balance and result.

Globe expansion as on Q1 FY09

Employee strength increased to over 9,500

Pan India presence expanded to 1,575 location in 465 cities across India

Continued focus on expanding network, investment in multiple business & human

resource in new venture of RFL and RIBL

Quarterly Total Revenue recorded al Rs. 2,887.49 run, EBIDTA at Rs. 1,184.17 mn and
Profit after tax at Rs. 36.68 mn

GLOBE SECURITIES LTD

Company Overview
Globe Securities Ltd. ("GSL") is the wholly owned subsidiary of GEL and a securities

firm in India.
Major activities and offerings of the company include equity broking both offline and

online, depository participant services, portfolio management services and institutional

brokerage.
Member of the NSE, BSE, depository participant with NSDL and CDSL, and SEBI

approved portfolio manager.

Businesses under Globe Securities Ltd. include:

Retail Equity Broking

Priority Client Equity Services D Online Investment Portal

Institutional Equity Broking (To be shifted to GCML) D Portfolio Management

Services

Depository Services

Empanelment with 81 institutions including 20 mutual funds, 10 insurance

companies, 35 banks and 11 FIN. Has strong institutional research team covers over 185
companies in 16 sectors

Aggressive ramp up of equity trading client accounts with market share

increasing to 3.8% in June 2008 from 2.7% in FY07 and online trading market share
increased to 8.7% in June 2008 from 7.2% in October, 2007

Received in principal approval from SEBI to act as a sponsor of Asset

Management joint venture with AEGON

Received P1 Credit Rating from CRISIL for its short term debt issuance
program for a sum of Rs. 7,000 million

Globe Securities Limited (GSL) is a leading equity and securities firm in India. The company
currently handles sizeable volumes traded on NSE and in the realm of online trading and
investments it currently holds a reasonable share of the market. The major activities and
offerings of the company today are Equity broking, Depository Participant Services, Portfolio
Management Services, Institutional Brokerage & Research, Investment Banking and Corporate
Finance.
GSL is a member of the National Stock Exchange of India, Bombay Stock Exchange of India,
Depository Participant with National Securities Depository Limited and Central Depository
Services (I) Limited, and SEBI approved Portfolio Manager. Globe has been constantly
innovating in terms of product and services and to offer such incisive services to specific user
segments it has also started the NRI, FII, HNI and Corporate Servicing groups. These groups
take all the portfolio investment decisions depending upon a client's risk / return parameter.
Globe has a very credible Research and Analysis division, which not only caters to the need of
our Institutional clientele, but also gives their valuable inputs to investment dealers. Globe is also
providing in-house Depository services to its clientele and is one of the leading depository
service providers in the country.
Globe Capital is one of the largest growing investment solutions companies that provide a
wide range of services to its vast and diversified client base.The company has its corporate
office in New Delhi with regional offices in Mumbai, Kolkata & Jaipur and growing
network of more than 500+ representative offices across 150+ locations in India with
overseas office in London and Dubai.Globe Capital accounts for more than 10% of NSE
clearing
volumes
in
its
F&O
segment.
In 2008, Globe Capital Market Ltd. attracted US$ 42 million of equity capital in Foreign
Direct Investment (FDI) from Citi Group and its representative is also on the Board of the
Company.
Promoted by a group of professionals, Globe Capital has grown consistently since inception

Services
Being a trusted name in the broking circle we are members of all the major stock exchanges
in India. We also hold membership for DGCX, Dubai. We also offer Clearing Services to the
Trading Member in the F&O segment and are responsible for a significant chunk of the total
clearing activities as high as 10% of the total clearing process.
The Group through Globe Capital Market Limited (GCML) offers trading facilities in the
Capital Market and Futures Options (F&O) segments of NSE as well as of BSE. Through
our Group company, Globe Commodities Limited, we have membership and trading
facilities for all major Commodities Exchanges in India: MCX, NCDEX and NCME. Globe
Comex International DMCC is exclusively responsible for trading on Dubai Gold and
Commodities Exchange.
Globe also holds membership of two major Depositories in the country i.e. NSDL and CDSL
and are catering to over 65000 accounts.
To address varying investment preferences Globe offers Portfolio Management services (PMS).
As a focused service, PMS pays attention to details, and portfolios are customized to suit the
unique requirements of investors. Equities as an asset class outperform almost any other
investment vehicle over a longer time period. PMS aims at providing the same by investing on
behalf of clients on the basis of well-conducted research, experience and expertise of our Fund
Manager,
well
supported
by
our
research
team.
Globe Capital Market is the # 1 clearing member for both NSE FX and MCX SX in currency
trading. At Globe Capital Market we offer currency trading on both NSE FX and MCX SX and is
supported by valued research. We offer expert advice on Currency Arbitrage and Hedging
strategies to our individual and corporate customers.

Our Core Value

Always
Be
Client
Centric:
Clients' interests always come first. lf we serve our clients well, our own success will follow.
Always
Be
Transparent:
Integrity and honesty are at the heart of our business. We maintain highest ethical standards
and
demonstrate
sound
judgment
in
executing
the
responsibility.
Always
Be
Prudent:
We apply wise financial and business strategies. Our clients rely on our experience, judgment
and
analysis
for
their
hard
earned
wealth
to
grow.
Always
Be
Foresighted:
Long term relationship with our clients is more important than short term gains. Always
anticipate change and be prepared.

Globe Presence
Dubai
The Globe Group Company, Globe Commodities Limited, a wholly owned subsidiary of
Globe Capital, has membership and trading facilities for all major Commodities
Exchanges in India: MCX, NCDEX and NCME. Globe Comex International DMCC,
which is a subsidiary of Globe Commodities Limited, the Indian arm, is devoted to
trading on Dubai Metals and Commodities Exchange.

HISTORY
1994
Globe became the member of National Stock Exchange.
1999
Globe became the depository participant of NSDL.
2000
Globe acquired Trading as well as Clearing membership of NSE F&O.
2000
Globe became the depository participant of CDSL.
2003
Globe group acquired the membership of NCDEX, MCX and NMCE.
2006
Globe group expanded globely and acquired the Trading & Clearing Membership of
Dubai Gold and Commodity Exchange (DGCX)
2007
Globe became the member of Bombay Stock Exchange and trading cum clearing
member in its F&O segment.
2008
Citi bank venture capital invested for a minority stake in the company.
Globe became clearing cum trading member of Currency Derivatives in NSE, BSE and
MCX-SX Acquired the membership of National Spot Exchange (NSEL)
2009
Globe
begin
it's
lending
business
Acquired Clearing cum trading membership in Indian commodity Exchange (ICEX)
2010
Acquired clearing and trading membership in ACE in Commodity segment and the
United Stock Exchange in Currency segment
2011
Globe commenced the corporate finance and International Broking business in London
Globe became the Clearing Member for National Spot Exchanges for clearing of Eseries products

2012
Globe became the member of MCX Stock Exchange and trading cum clearing member
in its F&O segment.

GLOBE MEMBERSHIPS

National Stock Exchange (NSE)

Bombay Stock Exchange (BSE)

Multi Commodity Exchange (MCX)

National Commodities & Derivatives Exchange (NCDEX)

National Multi-commodities Exchange of India Limited (NMCE)

National Securities Depository Limited (NSDL)

Central Depository Services Limited (CDSL)

Dubai Gold & Commodity Exchange (DGCX) (Registered with ESCA,

Dubai)

Portfolio Manager (Registered with SEBI)

Indian Commodity Exchange Limited (ICEX

RMS Policy
Globe Capital Market Ltd.
RMS PROCESS
RMS stands for Risk Management System - To manage the risk of the company from
the volatility of the market.
(1) RMS works on the following concepts:
1.1) Cash: The clear balance available in the customers ledger account in our books.
1.2) Margin: The underlying stake provided by the customer in the form of cash, FDR
and/or stock to mitigate market (price) or settlement (auction) risk
1.3) Exposure: The aggregate of the customers obligations arising out of buy + sell
trades awaiting settlement in the cash segment and profit/ loss amounts that are yet to be
settled on the closed positions.
1.4) Exposure multiple: The number of times that exposure is allowed on the underlying
margin on the cash segment would have to be made either on the availability of cash
margin or on the availability of the stocks (which are to be sold) in our margin account,
by executing a transfer before any order is initiated.
1.5) Stock qualifying for margin in cash segment transactions: Securities in the
approved list of GCML.
1.6) Total Deposit: The aggregate of client deposit available with us in the form of cash,
shares (after applicable hair cut) and FDR.
(2) NATURE OF CUSTOMER TRANSACTIONS
2.1) Intraday - Cash segment: The amounts of purchase (or sale) in a scrip on any
trading day that is reversed by the end of the day by making a contra sale (or purchase)

of the exact same quantity, thereby nullifying the original position.

2.2) Delivery Trades: The net purchase or sale of a scrip in a client account that is settled
by way of a delivery on T+2(or as per settlement schedule). Delivery in respect of sale
transactions in the cash segment has to be settled by the client by tendering securities in
demat form before the pay-in deadline. Else the client faces the risk of auction.
2.3) Sell against Buying : A purchase order executed on the Exchange today and the
(undelivered) purchased stock sold in its entirety on the next trading day. In this case
the first transaction would be settled on T+2 while the sale would be settled on the third
business day after the purchase transaction
Note GCML will not be responsible for any Short payout of security from exchange
(3) MANAGEMENT OF RISK
We have margin based automated RMS system. Total deposits of the clients are
uploaded in the system and client may take exposure on the basis of margin applicable
for respective security as per VAR based margining system of the stock exchange and /
or margin defined by RMS based on their Risk perception. Client may take benefit of
credit for sale i.e, benefit of share held as margin by selling the same by selecting
delivery option through order entry window on the trading platform, the value of share
sold will be added with the value of deposit and on the basis of that client may take fresh
exposure.
In case of exposure taken on the basis of shares margin the payment is required to be
made before the exchange pay in date otherwise it will be liable to square off after the
pay in time or any time due to shortage of margin.
For Example:
Client ABC trade in Capital Market Segment and having: Ledger Balance : Rs.500000/- Cr.
Stock Before Hair Cut : Rs. 250000/Stock After Hair Cut : Rs. 175000/Total Deposit : Rs.675000/- Cr.
VAR margin on XYZ Ltd is 20%, ABC can take position in XYZ Ltd upto Rs.
33,75,000/- . Margin
on position is Rs.675000/- (3375000 X 20%) and he has to make payment of Rs.
28,75,000/(exposure less Ledger credit balance) before the T+2 day

PRODUCTS OFFERED BY GLOBE

Equity and Trading
Race and Rally are the two products offered by Globe Securities ltd which come under equity
and derivatives.

While Rally deals with offline facilities, Race provides for complete online package and facility.
There is difference between both offline and online modes of trading. The difference lies on
account of its schemes, platforms and facilities provided. Initially the clients used to go for
offline modes of trading, but now with increasing use of internet online mode has become the
preference.

Type of Account
R-ACE (Basic)
It's the basic online trading account provided by Globe. Investor can trade and access their
account information online and over the phone as well. This account comes with a browser based
online trading platform and no additional software installation needed.
This account also provides Lifetime free DP account with no annual maintenance charges.
R-ACE Lite (Advanced)
It's the advanced account option for the investor with Globe. This trading account provides the
entire feature of R-ACE (Basic) account. In addition it also provides real-time streaming stock
quotes and alerts. This trading platform is also browser based and no software installation is
needed.
R-ACE Pro (Professional)
As the name indicates this account is for high volume traders. Along with the features from
above 2 accounts, this account also comes with a Trading Terminal, software which needs to
install on your computer. This terminal directly connects the investor to stock market and having
all industry standard Treading tenninal features including technical charting (intra-day and
EOD), multiple watch list, advanced hot-key functions for faster trading, derivative chains,
futures & options calculator. As in basic and advance account, trading is available online through
internet and offline though phone.

Brokerage and Account opening fees:

Globe offers three kinds of accounts as above. Below are detail about fees and activation charges
for each account:
1.

R-ACE Lite
Account activation charges Rs.499/-..

2.

R-ACE Pro
Account activation charges Rs.999/-.

3.

All the account comes with free annual maintenance charge.

4.

All account comes with free DP account.

5.

Brokerage at Globe
On the basis of volume and frequency of trading; Globe provide different options for
brokerages. On the broader way they divided into three categories:

Advantages of Globe

Globe gives interest on unutilized cash when investor is waiting to make next trade or
online investment.

Globe Allow their investor to trade without having to worry about cash margin. Investor can
get exposure (on cash segment) as high as 20 times for intraday trades.

They provide intraday reports and historical charting.

Lifetime free DP account.

Varity of fee structure to fulfill need of different type of investors.

Equity Broking and Online Trading

Equity client base of over 4.6 lacs, recorded an increase of more than 11 % in last
quarter
Total Equity brokerage of Rs. 749 mn for Q1 FY 09
Equity market share increased from 3.46% to 3.84% in last quarter
Online client base of over 78,500 clients, recorded an increase of 20% in last
quarter
Online brokerage for the quarter accounted for Rs. 32 mn

INCREASED CLIENT COVERAGE

PROJECT PROFILE
Globeization has proved to be a boon for the Indian economy. After globeization there has been a
tremendous growth in the Indian economy.
Every sector of the economy has shown an outstanding performance after globeization.
The project was under taken as to study the Indian online trading. Earlier Trading was confined
in limited boundaries but now the scenario has been totally different after the entrance of online
trading. There is a cut throat competition between the broking houses. Now the brokers are more
concerned about their customers to improve their performance. The sector is undergoing
fundamental changes that have diluted its traditional role of protecting small deposits against
capital and income risk and facilitating the conversion of Savings into investment.
Also there have been a drastic increase in the volume of share traded on stock exchange and with
that the online trading has shown Bull Run.

SWOT ANALYSIS

STRENGTHS

WEAKNESS

Strong corporate

relationship

with its promoter RANBAXY

Collaborations

with

highly

reputed international companies

AEGON and MACQUERIE.

Provides transparency to clients

Highly qualified research team

Strong

network

No satisfactory Brand awareness and no

Brand recall value
In case of intraday the order is
automatically squared off at 3.10 pin
Problem in linking Globe Demat account
with the five banks HDFC, CITIBANK,
AXIS, ICICI, INDUS Bank.

throughout

India, strong presence in WEST,

NORTH and SOUTH

OPPORTUNITIES

THREATS

Even the strong players in the Competition from major players like
market holds 6% of market share,

ICICI DIRECT, SHAREKHAN, INDIA

so there is a good potential, for

BULLS, KOTAK etc.

growth
The growing interest of people in
the stock market
Indian stock market story going
strong

The downfall in the stock market

The Competitors
The existing major players in the stock broking industry besides Globe Securities ltd. are:
1.

ICICI Direct

2.

India Bulls

3.

Share Khan

4.

India Info line

5.

Kotak

ICICI DIRECT

ICICI Direct (or ICICIDirect.com) is stock trading company of ICICI Bank. Along with stock
trading and trading in derivatives in BSE and NSE, it also provides facility to invest in Mutual
Funds and Bonds. Trading is available in BSE and NSE.
Trade In: BSE and NSE
Type of Account
ICICI Direct offers 3 different online trading platforms to its customers:
1. Share Trading Account
Share Trading Account by ICICI Direct is primarily for buying and selling stocks in NSE and
BSE. This account allows Cash Trading, Margin Trading, Margin PLUS Trading, Spot Trading,
Buy Today Sell Tomorrow and Call and Trade on phone.
ICICI Direct.com website is the primary trading platform for this trading account. They also
provide installable application terminal based application for high volume trader.

2. Wise Investment Account

Along with stock trading and IPO investing in BSE and NSE, Wise Investment account also
provide options to invest in Mutual Funds and Bonds online.
Online Mutual funds investment allows investor to invest on-line in around 19 Mutual Fund
companies. ICICI Direct offers various options while investing in Mutual Funds like Purchase
Mutual Fund, Redemption and switch between different schemes, Systematic Investment plans,
Systematic withdrawal plan and transferring existing Mutual Funds in to electronic mode. This
account also provides facility to invest in Government of India Bonds and ICICI Bank Tax

Saving Bonds. ICICIDirect.com website is the primary tool to invest in Mutual Funds, IPOs,
Bonds and stock trading.
3. Active Trader Account
Active Trader account gives more personalized investment options to the investors. It allows
investor to use online and offline stock trading. It also provides with independent market
expertise and support through a dedicated Relationship Manager from ICICI. Active Trader also
provides commodity trading.

Brokerage and fees

1.

Account opening fees: Rs 750/- (One time non-refundable)

2.

Brokerage: ICICIDirect.com brokerage varies on volume of trade and inclusive of Demat

transaction charges, service taxes and courier charges for contract notes. It ranges from
0.1% to 0.15% for margin trades, 0.2% to 0.425% for squared off trades and 0.4% to
0.85% on delivery based trades.

Advantages of ICICI Direct

1.

3-in-1 account integrates your banking, broking and demat accounts. All accounts are from
ICICI and very well integrated. This feature makes ICICI the most interesting player in
online trading facility. There is absolutely no manual interfere require. This is truly online
trading environment.

2.

Unlike most of the online trading companies in India which require transferring money to
the broker's pool or towards deposits, at ICICI Direct you can manage your own Demat and
bank accounts through ICICI direct.com. Money from selling stock is available in ICICI
bank account as soon as the ICICI Direct receive it.

3.

Investment online in IPOs, Mutual Funds, GOT Bonds and Postal Savings Schemes all from
one website. General Insurance is also available from ICICI Lombard.

4.

Trading is available in both BSE and NSE.

Disadvantages of ICICI Direct

1. Getting access to ICICIDirect.com website during market session can be frustrating.
2.

ICICI Direct brokerage is high and not negotiable. 3. Not all stocks are available under
Margin Plus.

INDIA BULLS
India bulls is Indus leading Financial Services and Real Estate Company having presence over
414 locations in more than 124 cities. India bulls Financial Services Ltd is listed on the National
Stock Exchange, Bombay Stock Exchange, Luxembourg Stock Exchange and London Stock
Exchange.

Type of Account
India bulls Equity Trading Account
India bulls Equity Trading Account is standard Online trading account from India bulls and along
with online trading it also provides priority telephone access that gives you direct access to your
relationship Manager and full access to ' India bulls Equity Analysis'.
Application Trading Terminal (Need Installation)
Power India bulls
Power India bulls trading terminal is the most advanced new generation trading platform with
great speed. This trading terminal is built in JAVA.
Power India bulls is extremely reach in features including Live Streaming Quotes, Fast Order
Entry and execution, Tic by Tic Live Charts, Technical Analysis, Live News and Alerts,
Extensive Reports for Real-time Accounting.

Brokerage and fees

1.

Account opening fees: Rs 1200/- (One time non-refundable) as below:

250/- Equity Trading Account opening charge 200/- Demat Account opening charge 750/Software changes

Advantages of India bulls Equity Trading Account

Brokerage is less compare to other online trading companies. Provide trading terminal 'power
bulls', a java based software. It's very fast in terms of speed and execution.

SHARE KHAN
Share khan is online stock trading company of SSKI Group, provider of India-based investment
banking and corporate finance service. Share Khan is one of the largest stock broking houses in
the country. S.S. Kantilal Ishwarlal Securities Limited (SSKI) has been among India's leading
broking houses for more than a century.
Share khan's equity related services include trade execution on BSE, NSE, Derivatives,
commodities, depository services, online trading and investment advice. Trading is available in
BSE and NSE. Along with Sharekhan.com website, Share khan's has around 510 offices (share
shops) in 170 cities around the country.
Share khan has one of the best states of art web portal providing fundamental and statistical
information across equity, mutual funds and IPOs. You can surf across 5,500 companies for indepth information, details about more than 1,500 mutual fund schemes and IPO data. You can
also access other market related details such as board meetings, result announcements, FII
transactions, buying/selling by mutual funds and much more.

Trade In: BSE and NSE

Type of Account

I.

Share Khan Classic account

Allow investor to buy and sell stocks online along with

the

following features like multiple watch lists, Integrated

Banking,

Demat and digital contracts, Real-time portfolio

tracking

with price alerts and Instant credit & transfer.

a.

Online trading account for investing in Equities

and

Derivatives
b.

Free trading through Phone (Dial-n-Trade)

I.

Two dedicated numbers for placing your orders with your cell phone or landline.

11.

Automatic funds transfer with phone banking (for Citibank and HDFC bank
customers)

111. Simple and Secure Interactive Voice Response based system for authentication
IV.

Get the trusted, professional advice of our telebrokers

V.

After hours order placement facility between 8.00 am and 9.30 am

c.

Integration of: Online trading + Bank + Demat account

d.

Instant cash transfer facility against purchase & sale of shares

e.

IPO investments

f.

Instant order and trade confirmations by e-mail g. Single screen interface for cash and
derivatives

2.

Share Khan Speed Trade account

This accounts for active traders who trade frequently during the day's trading session. Following
are few popular features of Speed Trade account.
a.

Single screen interface for cash and derivatives

b.

Real-time streaming quotes with Instant order Execution & Confirmation

c.

Hot keys similar to a traditional broker terminal d. Alerts and reminders

e.

Back-up facility to place trades on Direct Phone lines

Brokerage:

Some stock trading companies charge direct percentage while others charge a fixed amount per
Rs 100. Share khan charges 0.5% for inter day shares and 0.1% for intraday or you could say
Share khan charges 50 paisa per Rs 100.
Advantages of Share khan:
A.

Online trading is very user friendly and one doesn't need any software to access.

B.

They provide good quality of services like daily SMS alerts, mail alerts, stock
recommendations etc.

C.

Share khan has ability to transfer funds from most banks. Unlike ICICI Direct, HDFC Sec,
etc., so investor not really needs to open an account with a particular bank as it can
establish link with most modern banks.

Disadvantages of Share Khan

A.

They charge minimum brokerage of 10 paisa per stock would not let you trade stock below
20 Rs. (If you trade, you will loose majority of your money in brokerage).

B.

Lots of hidden rules and charges.

C.

They do not provide facility to book limit order trades during after-hours.

D.

Classic account holder cannot trade commodities.

E.

Cannot purchase mutual funds online

REVIEW OF LITERATURE

The Indian capital market has changed dramatically over the last few years, especially since
1990. Changes have also been taking place in government regulations and technology. The
expectations of the investors are also changing. The only inherent feature of the capital
market, which has not changed is the 'risk' involved in investing in corporate securities.
Managing the risk is emerging as an important function of both large scale and small-scale
investors. Risk management of investing in corporate securities is under active and
extensive discussion among academicians and capital market operators. Surveys and research
analyses have been conducted by institutions and academicians on risk management. The
mutual fund companies in India have conducted specific studies on the 'risk
element' of investing in corporate securities.
Grewal S.S and Navjot Grewall (1984) revealed some basic investment rules and rules
for selling shares. They warned the investors not to buy unlisted shares, as Stock Exchanges
do not permit trading in unlisted shares. Another rule that they specify is not to buy inactive
shares, ie, shares in which transactions take place rarely. The main reason why shares are
inactive is because there are no buyers for them. They are mostly shares of companies, which
are not doing well. A third rule according to them is not to buy shares in closely-held
companies because these shares tend to be less active than those of widely held ones since
they have a fewer number of shareholders They caution not to hold the shares for a long
period, expecting a high price, but to sell whenever one earns a reasonable reward.
Jack Clark Francis (1986) revealed the importance of the rate of return in investments and
reviewed the possibility of default and bankruptcy risk. He opined that in an uncertain
world, investors cannot predict exactly what rate of return an investment will yield.
However he suggested that the investors can formulate a probability distribution of the possible
rates of return. He also opined that an investor who purchases corporate securities must face
the possibility of default and bankruptcy by the issuer. Financial analysts can foresee
bankruptcy. He disclosed some easily observable warnings of a firm's failure, which could be
noticed by the investors to avoid such a risk.
Preethi Singh (1986) disclosed the basic rules for selecting the company to invest in. She
opined that understanding and measuring return m d risk is fundamental to the investment
process. According to her, most investors are 'risk averse'. To have a higher return the
investor has to face greater risks. She concludes that risk is fundamental to the process of
investment. Every investor should have an understanding of the various pitfalls of
investments. The investor should carefully analyse the financial statements with special
reference to solvency, profitability, EPS, and efficiency of the company.
David.L.Scott and William Edward (1990) reviewed the important risks of owning
common stocks and the ways to minimise these risks. They commented that the severity of
financial risk depends on how heavily a business relies on debt. Financial risk is relatively
easy to minimise if an investor sticks to the common stocks of

companies that employ small amounts of debt. They suggested that a relatively easy way to
ensure some degree of liquidity is to restrict investment in stocks having a history of
adequate trading volume. Investors concerned about business risk can
reduce it by selecting common stocks of firms that are diversified in
several unrelated industries.
Lewis Mandells (1992) reviewed the nature of market risk, which according to him is very
much 'globe'. He revealed that certain risks that are so globe that they affect the entire
investment market. Even the stocks and bonds of the well-managed companies face market
risk. He concluded that market risk is influenced by factors that cannot be predicted accurately
like economic conditions, political events, mass psychological factors, etc. Market risk is the
systemic risk that affects all securities simultaneously and it cannot be reduced through
diversification.
Nabhi Kumar Jain (1992) specified certain tips for buying shares for holding and also for
selling shares. He advised the investors to buy shares of a growing company of a growing
industry. Buy shares by diversifying in a number of growth companies operating in a
different but equally fast growing sector of the economy. He suggested selling the shares the
moment company has or almost reached the peak of its growth. Also, sell the shares the
moment you realise you have made a mistake in the initial selection of the shares. The only
option to decide when to buy and sell high priced shares is to identify the individual merit or
demerit of each of the shares in the portfolio and arrive at a decision.
Carter Randal (1992) offered to investors the underlying principles of winning on the
stock market. He emphasised on long- term vision and a plan to reach the goals. He advised the
investors that to be successful, they should never be pessimists. He revealed that though
there has been a major economic crisis almost every year, it remains true that patient
investors have consistently made money in the equities market. He concluded that investing in
the stock market should be an un-emotional endeavour and suggested that investors
should own a stock if they believe it would perform well. L.C.Gupta8 (1992) revealed the
findings of his study that there is existence of wild speculation in the Indian stock market.
The over speculative character of the Indian stock market is reflected in extremely high
concentration of the market activity in a handful of shares to the neglect of the remaining
shares and absolutely high trading velocities of the speculative counters. He opined that,
short- term speculation, if excessive, could lead to "artificial price". An artificial price is one
which is not justified by prospective earnings, dividends, financial strength and assets or
which is brought about by speculators through rumours,manipulations, etc. He concluded
that such artificial prices are bound to crash sometime or other as history has repeated and
proved.
Yasaswy N.J. (1993) disclosed how 'turnaround stocks' offer big profits to bold investors and
also the risks involved in investing in such stocks. Turnaround stocks are stocks with
extraordinary potential and are relatively under priced at a given point of time. He also revealed
that when the economy is in recession and the fundamentals are weak, the stock market, being a
barometer of the economy, also tends to be depressed. A depressed stock market is an

ideal hunting ground for 'bargain hunters', who are aggressive investors. Sooner or later
recovery takes place which may take a very long time. He concluded that the investors' watch
work is 'caution' as he may lose if the turnaround strategy does not work out as anticipated.
Sunil Damodar'o (1993) evaluated the 'Derivatives' especially the 'futures' as a tool for shortterm risk control. He opined that derivatives have become an indispensable tool for finance
managers whose prime objective is to manage or reduce the risk inherent in their portfolios.
He disclosed that the over-riding feature of 'financial futures' in risk management is that these
instruments tend to be most valuable when risk control is needed for a short- term, ie, for a
year or less. They tend to be cheapest and easily available for protecting against or
benefiting from short term price. Their low execution costs also make them very suitable for
frequent and short term trading to manage risk, more effectively.
Yasaswy J.N." (1993) evaluated the quantum of risks involved in different types of
stocks. Defensive stocks are low risk stocks and hence the returns are relatively low but
steady. Cyclical stocks involve higher risks and hence the rewards are higher when
compared to the growth stocks. Growth stocks belong to the medium risk category and they
offer medium returns which are much better. than defensive stocks, but less than the cyclical
stocks. The market price of growth stocks does fluctuate, sometimes even violently during short
periods of boom and bust. He emphasised the financial and organisational strength of
growth stocks, which recover soon, though they may hit bad patches once in a way.
Donald E Fischer and Ronald J. Jordan (1994) analysed the relation between risk, investor
preferences and investor behaviour. The risk return measures on portfolios are the main
determinants of an investor's attitude towards them. Most investors seek more return for
additional risk assumed. The conservative investor requires large increase in return for
assuming small increases in risk. The more aggressive investor will accept smaller increases
in return for large increases in risk. They concluded that the psychology of the stock
market is based on how investors form judgements about uncertain future events and how
they react to these judgements.
R.Venkataramani.l"l994) disclosed the uses and dangers of derivatives. The derivative
products can lead us to a dangerous position if its full implications are not clearly understood.
Being off- balance shekt in nature, more and more derivative products are traded than the cash
market products and they suffer heavily due to their sensitive nature. He brought to the notice
of the investors the 'Over the counter product' (OTC) which are traded across the counters of a
bank. OTC products (eg. Options and futures) are tailor made for the particular need of a
customer and serve as a perfect hedge. He emphasised the use of futures as an instrument of
hedge, for it is of low cost.
K.Sivakumar. '"1994) disclosed new parameters that will help investors identify the best
company to invest in. He opined that Economic Value Added (EVA) is more powerful than
other conventional tools for investment decision making like EPS and price earning ratio. EVA
looks at how capital raised by the company from all sources has been put to use. Higher the
EVA, higher the returns to the shareholder. A company with a higher EVA is likely to show a

higher increase in the market price of its shares. To be effective in comparing companies, he
suggested that EVA per share (EVAPS) must be calculated. It indicates the super profit per
share that is available to the investor. The higher the EVAPS, the higher is the likely
appreciation in the value in future. He also revealed a startling result of EVA calculation of
companies in which 200 companies show a negative value addition that includes some blue
chip companies in the Indian Stock Market.
Pattabhi Ram.V. (1995) emphasised the need for doing fundamental analysis'and doing
Equity Research (ER) before selecting shares for investment. He opined that the investor should
look for value with a margin of safety in relation to price. The margin of safety is the gap
between price and value. He revealed that the Indian stock market is an inefficient market
because of the absence of good communication network, rampant price rigging, the absence of
free and instantaneous flow of information, professional broking and so on. He concluded that
in such inefficient market, equity research will produce better results as there will be frequent
mismatch between price and value that provides opportunities to the long-term value oriented
investor. He added that in the Indian stock market investment returns would improve only
through quality equity research.
Philippe Jhorion and Sarkis Joseph Khoury (1996) reviewed international factors of risks
and their effect on financial markets. He opined that domestic investment is a subset of the
globe asset allocation decision and that it is impossible to evaluate the risk of domestic
securities without reference to international factors. Investors must be aware of factors
driving stock prices and the interaction between movements in stock prices and exchange
rates. According to them the financial markets have become very much volatile over the
last decade due to the unpredictable speedy changes like oil price shocks, drive towards
economic and monetary unification in Europe, the wide scale conversion of communist
countries to free market policies etc. They ekphasized the need for tightly controlled risk
management measures to guard against the unpredictable behaviour of financial markets.
S.Rajagopal. (1996) commented on risk management in relation to banks. He opined that
good risk management is good banking. A professional approach to Risk Management will
safeguard the interests of the banking institution in the long run. He described risk
identification as an art of combining intuition with formal information. And risk
measurement is the estimation of the size, probability and timing of a potential loss under
various scenarios.
Charles.P.Jonesl (1996) reviewed how to estimate security return and risk. To estimate
returns, the investors must estimate cash flows the securities are likely to provide. Also,
investors must be able to quantify and measure risk using variance or standard deviation.
Variance or standard deviation is the accepted measure of variability for both realised returns
and expected returns. He suggested that the investors should use it as the situation dictates.
He revealed that over the past 12 years, returns in stocks, bonds, etc. have been normal.
Blue chip stocks have returned an average of more than 16% per year. He warned that the
investors who believe that these rates will continue in the future also, will be in
trouble. He also warned the investors not to allow themselves to become victimised by
"investment gurus".

HYPOTHESIS
Hypothesis is an assumption about the population. Consider a study relating to the buyers
behavior. A hypothesis is formulated for a situation where the interference is not explicit.
THEIR ARE TWO TYPES OF HYPOTHESIS:
NULL (HO): Null hypothesis is a hypothesis which a researcher tries to disprove. Normally, the
null hypothesis represents the current view/explanation of an aspect of the world that the
researcher wants to challenge.

ALTERNATIVE (H1):- Research methodology involves the researcher providing an alternative

hypothesis, a research hypothesis, as an alternate way to explain the phenomenon.
The researcher test the hypothesis to disapprove the null hypothesis, not because he/she loves the
research hypothesis, but because it would mean coming closer to finding an answer to a specific
problem. The research hypothesis is often based on observation that evokes suspicion that the
null hypothesis is not always correct.

1-NULL HYPOTHESIS- There is no significant difference between interested or not interested

people to invest their money in the share market.
2-ALTERNATIVE HYPOTHESIS- There is a significant difference between the interested or
not interested people to invest their money in the share market with Globe securities and other
firms.

OBJECTIVES OF THE STUDY

To analyse the career in security market and identifying the key factors for enhancing the
efficiency of the company .
To know the investors experience in the share market .
To analyse the working procedure of the Globe Capital that it differ from the other
broking companies in providing services and strong client maintainence.
To analyse the features that make Globe Capital different from the rest broking firms .
The area of improvement of the Globe Capital .
To study what other services investors expect from the Globe Capital .
To study the various services provided by the Globe Capital To the clients .
To make the consumers familiar with the broking houses in the economy .
To make the most prefered trading type .

SCOPE OF THE STUDY

The report has been based on primary as well as secondary data analysis. The study has been
exploratory as it aims at examining the secondary data for analyzing the various aspects of
international trade. The knowledge thus gained from this preliminary study forms the basis for
the further detailed Descriptive research. In the exploratory study, the various documents
necessary were identified and important ones short listed.
Research inculcates scientific and inductive thinking and it promotes the development of logical
habits of thinking and organization.
The role of research in several fields of applied economics, whether related to business or to the
economy as a whole, has greatly increased in modern times. The increasingly complex nature of
business and government has focused attention on the use of research in solving operational
problems.
Research provides the basis for nearly all government policies in our economic system.

RESEARCH METHODOLOGY

DESCRIPTIVE RESEARCH DESIGN

The research design adopted in this study is DESCRIPTIVE RESEARCH DESIGN. A
descriptive research design is the one which is description of the state of affairs as it exists at
present. It includes survey and fact finding enquiries of different kinds. The researcher has no
control over the variables. The researcher used this research design to find out the respondents
attitude and opinion about ULIP policies offered.
SAMPLING DESIGN
A sample design is a definite plan for obtaining a sample from a given population. It refers to the
techniques or procedures the researcher would adopt in selecting items for the sample.
CONVENIENCE SAMPLING
The researcher adopted convenience sampling. It is the non probability sampling is that sampling
procedures does not any basis for estimating the probability that each item in the population has
of included in the sample. The researcher selects the people according to their convenient.

SAMPLE SIZE
A sample of 50 people was taken for the survey. The required data collected through
questionnaire.

Sample Design
DETAILS OF THE SURVEY CONDUCTED
Sample Size

50
20-30 years
30-40 years

Target Population

40-50 years
above 50 years
Jaipur, Malviya Nagar, Vaishali Nagar.

Location
Type of questionnaire

Structured

No. of Questions involved

15

DATA COLLECTION
The information required for our project was collect mainly from the primary sources and even
from secondary sources. The primary source consists of the data analyzed from questionnaire
and interaction with the user at that time only. And internet is used as secondary source.

DATA COLLECTION METHOD

Data is collected through questionnaire...schedule...method. It means the investigators are trained
to collect the information required for an enquiry through schedule. The trained investigators
meet the people concerned and fill up the schedules with the information supplied by them.

Limitations:

Time limitation

Research has been done only in Jaipur

Companies did not disclose their secrets data and strategies.

Possibility of Error in data collection.

Possibility of Error in analysis of data due to small sample size.

ANNEXURE
QUESTIONNAIRE

NAME:
GENDER:

AGE:

OCCUPATION:

ANNUAL INCOME:

1.

How much income are you able to save or invest?

(a) 0 - 10%

(b) 10 - 20%

(c) 20 - 30%

(d) 30 - 40%

(e) Others
2.

You invest in which of the following financial instruments?

(a) Securities

(b) Mutual fund

(c) Commodities

(d) Insurance

(e) Other Instruments

3.

Do you invest/interested in stock market?

(a) YES

4.

Do you have a Demat account?

(a) YES

5.

(b) NO

(b) NO

If yes, which type of Demat account do you have?

(a) Online

(b)

Offline

6.

In which company you have your Demat account?

(a) India Info line

(b)

India Bulls

(c) Kotak

(d)

Globe

(e) ICICI direct

(f)

Share khan

(g) Others
7.

Do you trade in Futures and Options?

(a) YES
(b) NO

8.

9.

How often you trade in the stock market

(a) Everyday

(b) 2-3 Days a week

(c) 12-18 days a month

(d) 2-3 days a month

Do you pay AMC (Annual Maintenance Charge)?

(a) Yes

10.

(b) No

How much Brokerage do you pay on Intraday?

(a) (0.01 - 0.02) %

(b) (0.02 - 0.03)

(c) (0.03 - 0.04) %

(d) (0.04 - 0.05)

(e) 0.05 % or more

11.

How much Brokerage do you pay on Delivery?

(a) (0.1 - 0.2) %

(b) (0.2 - 0.3)

(c) (0.3 - 0.4) %

(d) (0.4 - 0.5)

(e) 0.5 % or more

12.

Are you satisfied with the services of Globe Securities ?

(a) Yes

(b) No

ANALYSIS AND INTERPRETATION

1.

How much income are you able to save or invest?

a.

0-10%

b. 10-20%

c.

20-30%

d. 30-40%

e.

others

30-40%; 18%
22%
0-10% 20-30%;10-20%

ANALYSIS:

Other; 6%

20-30%

0-10%; 16%

10-20%;
30-40% 38%

Other

Among the 50 questionnaires filled, it was clear that among them maximum people invest in the
category of 10-20%. Thus Globe has the opportunity to capture this segment. But people are not
aware of the services so here Globe has to work in this area.

2-You invest in which of the following financial instruments?

(a)

Securities

(b)

Mutual fund

(c)

Commodities

(d)

Insurance

(e)

Other Instruments

6
4

Securities

Insurance

18

Mutual Funds

Commodities

Other Instruments

15

ANALYSIS:
The above observation speaks about the financial instruments in which the people invest; most of
the people invest in the securities through share market and then invest in the insurance. Thus

more focus should be made on securities so that company has the maximum investment. This
would ultimately increase the profits..

3.

Do you invest/interested in stock market?

(a)

YES

(b) NO

No; 42%
Yes; 58%
Yes

No

ANALYSIS:
It can be seen that among the whole population around 58% people either invest in stock market
or they are actually interested, but don't have a good knowledge about it. So these people can
actually become Globe's target market but globe has to provide them the better services and
brokerage plans and also, providing them the initial platform of online trading.

4.

Do you have a Demat Account?

(a)

YES

(b)

NO

Yes

No

ANALYSIS:
Among 50 respondents 32 actually have a demat account and are aware of the dealings in stock
trading. The rest 18 are still in the other category. so strategies should be made to convert these
people in to our potential customers.

5.

If yes, which type of Demat account do you have?

(a)

Online

(b)

Offline

Online; 34%
Offline; 66%
Online

Offline

ANALYSIS:
Among 50 respondents 32 had a Demat account of these 32, 21 have their demat account offline
and rest 11 have their Demat accounts online. As online broking is still at a premature stage in
India. Thus more awareness should be made about the online broking services.

6.

In which company you have your Demat account?

(a)

India Info line

(b) India Bulls

(c) Kotak

(d)

Globe

(e) ICICI direct

(f) Share Khan

(g)

Others

5
Indiabulls

globe

Sharekhan

ICICI direct

Indian Foline

Kotak

Others

ANALYSIS:
Among these 32 people most of them have their Demat account with Share Khan and India bulls.
Thus these two are Globe's biggest competitors. Also ICICI Direct gives a good competition to
Globe. These brands have a good brand recall as compared to Globe.

7.

Do you trade in Futures and Options?

(a)

Yes

(b)

No

37%
63%

Yes

No

ANALYSIS:
It can be seen that among the population who invest in stock market, around 37% people either
trade in future or they trade in option. So these people can actually become Globe's target market
as they generate heavy brokerage for the company. Globe has to provide them the better services
and brokerage plans and also, providing them the initial platform of online trading.

8.

How often you trade in the stock market

(a)

Everyday

(b) 2-3 Days a week

(c)

12-18 days a month

(d) 2-3 days a month

11%

6%

19%
Everyday

2-3 Days a Week

12-18 days a month

64%

2-3 days a month

ANALYSIS:
The above observation speaks about the; most of the people do trading every day. Thus more
focus should be made on the traders which are every day traders. The company should also focus
on the others also because they are the traders for the long terms investment and also, provide
heavy brokerage to the company.

9.

Do you pay AMC (Annual Maintenance Charge)?

(a)

Yes

(b)

No

17%

Yes

83%

No

ANALYSIS:
A good percentage of people give the annual maintenance charge to the company, Globe can
have the advantage of attracting their customers as they don't charge the AMC on its brokerage
plans and which will work to generate sales.

10.

How much Brokerage do you pay on Intraday?

(a)

(0.01-0.02) %

(b) (0.02-0.03) %

(c)

(0.03-0.04) %

(d) (0.04-0.05) %

(e)

0.05 % or more

27%

(0.01-0.02)%

(0.02-0.03)%
18%

3%
26%
(0.03-0.04)%

(0.04-0.05)%

26%

0.05% or More

ANALYSIS:
It can be seen that the companies are charging brokerage according to their own means. So, the
companies are creating biasness between the customers, Even if the customers portfolio is the
same then also the brokerage may vary from the person to person. So Globe has the best feature
of providing less brokerage and according to the customers wants.

11.

How much Brokerage do you pay on Delivery?

(a)

(0.1-0.2) %

(b) (0.2-0.3) %

(c)

(0.3-0.4) %

(d) (0.4-0.5) %

(e)

0.5 % or more

25%

(0.01-0.02)%

19%
(0.02-0.03)%

1%

(0.03-0.04)%

24%

(0.04-0.05)%

31%

0.05% or More

ANALYSIS:
Here also you can see that the long term investors have to give brokerage according to what the
company wants. So, here also the biasness is created in the mind of the customers. So, Globe got
a great opportunity to attract the customers by giving the brokerage plans according to what the
customer want.

12.

Are you satisfied with the services of Globe Securities ?

(a)

Yes

(b)

No

36%
Yes

No

64%

ANALYSIS:
It can be seen from the observations that there are customers who are not satisfied by the services
given by the brokerage companies can be converted by providing better services to them.
Sometimes even if the customers have the same or more investment then also, he is getting fewer
services than the other one. So, Globe can convert them by providing better services to them.

FINDINGS

According to the survey most of the customers say that

Globe Capital is a pocket friendly.
People want to invest their money in the security market
but they do not have the proper knowledge .
Commodity market is less preferred by the investors .
The main purpose of investments are returns and the
liquidity .
The traders pay more emphasis on the brokerage than the
services provided by the brokerage firms .
Investors take risk as well as returns into their mind while
making the investments .

RECOMMENDATIONS
On the basis of these findings and analysis, It has can be surely said that in stock broking
industry, differentiation can become the key to higher revenues. Better service, straight through
processing (STP), immediate execution, portfolio services, investment advisors and telephone
call centers or branch investment offices are needed to retain customers and to increase the
revenue base. As more number of people will get comfortable with internet/technology, broking
(especially online broking) will have a completely new meaning with more fringes coming into
the picture and more firms will offer umbrella services to their clients. Thus more of strategies
should be undertaken
Providing better plans and schemes than our competitors like Share khan, India bulls, and
ICICI direct are providing in terms of brokerage and subscription.
Formulation of more corporate schemes for employees of organizations falling under
Globe's corporate category. Drafting a website which is both professional and user
friendly Associating Globe with Ranbaxy to make it a power brand. Taking Globe from
the brand recognition stage to brand insistence stage.
Globe should make its brokerage structure more flexible to give a good competition to
the investors
D Some more collaboration with international firms and increasing its outlets not only in
India but also outside the world
D Also, to attract the NRIs so, that to increase its share in the stock exchanges as they
provide the largest shares in terms of the investment.

REFERENCES

http://www.globeonline.com

http://globesecurities.com/trade.asp

http://www.hinduonnet.com/businessline/iw/2000/09/0703g051.htm

http://www.traderji.com/

http://www.ShareKhan.com

http://www.indiabulls.com

http://www.icicidirect.com

http://chittorgarh.com/newportal/online-stock-brokers-list.asp

www.financialtimes.net

http://www.globe.in/

www.globecapital.com

Newspapers

The Economic Times

The Business Standard

The Times of India

The Hindu

The Financial Express

The Hindustan Time

The Indian Express

The Hindu Business Line