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A

PROJECT REPORT
ON
COMPARATIVE STUDY OF SAI KRIPA SECURITY WITH
OTHER BROKING FIRM
AT
SAI KRIPA SECURIIS PVT. LTD.
FOR PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR THE AWARD OF THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
SUBMITTED BY:
BHAVIKA KISHORBHAI CHAUDHARI
(1208001822)
MBA (SEM-IV) FINANCE
UNDER THE GUIDANCE OF:
MR. KUNJAN RANGATIY

Sikkim Manipal University of Health, Medical & Technologies


Sciences Distance Education Wing,
Syndicate House, Manipal-576 119
1

CERTIFICATE BY THE GUIDE

This is to certify that the contents of this report entitled Comparative Study of
SAI KRIPA with other Broking firms by BHAVIKA KISHORBHAI CHAUDHRI to
Sikkim Manipal University for the Award of Master of Business Administration
(MBA Sem-II) is original research work carried out by him/her/them under my
supervision.
This report has not been submitted either partly or fully to any other University
or Institute for award of any degree or diploma.
DATE :
PLACE :

CERTIFICATE BY THE MENTOR

This is to certify that the contents of this report entitled Comparative Study of
SAI KRIPA with other Broking firms by BHAVIKA KISHORBHAI CHAUDHRI
to SIKKIM MANIPAL UNIVERSITY for the Award of Master of Business
Administration (MBA Sem-II) is original research work carried out by him/her under
my mentoring. I, hereby certify the authenticity of the data and facts mentioned in the
report.
This report has not been submitted either partly or fully to any other University
or Institute for award of any degree or diploma.
DATE :
PLACE :

DECLARATION
3

I hereby declare that the work incorporated in this report entitled Comparative
Study of SAI KRIPA with other Broking firms in partial fulfillment of the
requirements for the award of Master of Business Administration (Sem.- II) is the
outcome of original study undertaken by me/us and it has not been submitted earlier to
any other University or Institution for the award of any Degree or Diploma.
I declare that this report has not been submitted to any other university or institute for
any other purposes.

Bhavika Kishorbhai Chaudhri

DATE :
PLACE :

PREFACE
4

I undertake writing this report of the specialization report because we all are of
the few students who are presently undertaking education in the spare of Master of
Business Administration which covers total business activities.
As a student of management, I must be encouraged by the growth and rapid
development taken place in the Steel sector. In India, management is growing body.
Keeping in mind the ever development field of management and great demand for
marketing in our country, the university has arranged specialized programmes in many
field of management. Thus this is our moral and obligatory duty to take this part of
our studies with great enthusiasm and seriousness and give it a due importance.
The report gives information about Comparative Study of SAI KRIPA with
other Broking firms. This training proved to be an experience which is required to
become a true student of Master of Business Administration.
This opportunity gives the students a better chance to apply the theoretical
concepts learned and better insight into the area of the business.
This project presented us with an opportunity to polish our management skills
and to apply them practically. The knowledge and experience gained during this
project work has helped us tremendously and will come in handy for future.
I hope this report will help both the evaluator as well as readers.
Bhavika Kishorbhai Chaudhri

ACKNOWLEDGEMENT
5

I would like to express our gratitude to all those who have gave us the
possibility to complete this project. I am very much thankful to our Brach manager of
SAI KRIPA Mr. Nirav Vdodariya, who has given me this opportunity to be a part of a
corporate house for Two months. He provided me to do our Summer Internship
Programme
I want to thank to our Internal Faculty Guide MR. KUNJAN RANGATIY for
showing us the path to commence this project in the first instance, to do the necessary
research work and to help for using departmental data. He looked closely at the final
version of the project for correction and offered suggestions for improvement.
He has shown me the real corporate world and gave me the suggestion that
when you are selling something, sell yourself
Date:
Place

Bhavika Kishorbhai Chaudhri

TABLE OF CONTENT
SR. NO.

SUBJECT

PAGE NO.

INTRODUCTION TO INDUSTRY

INTRODUCTION OF COMPANY

17

INTRODUCTION TO TOPIC

23

REVIEW OF THE LITERATURE

35

OBJECTIVES OF THE PROJECT

39

RESEARCH METHODOLOGY

40

DATA ANALYSIS

43

LIMITATION

57

FINDINGS

58

10

RECOMMODATION

59

11

CONCLUTION

60

12

BIBLIOGRAPHY

61

13

ANNEXURE

62

INDUSTRY DETAIL
HISTORY OF ONLINE TRADING:
Online stock trading is very old concept for big institutions who trade
thru private networks owned by Reuter's "Instinet" and a system called
"Posit" since 1969. But it becomes internet based for lay men only in late 90s.
Funny, that actually idea was first time used by a company making Beer
called "WIT beer" to help its shareholders trade its shares. Thats how "WIT
Capital" was born which is considered pioneer of this concept. It was made
mainstream and household name by a offshoot of Charles Schwab & Co called
eSchwab which is used by millions of people in USA. Lot of NRI's i know play
in US stock market even when they come to India for holidays via website
of eSchwabe.
There are other serious players like E*trade, DATEK online etc. All this
companies ask you to start account with US $5000 and you can buy and sell
stock using these funds. They also issue you a check book which you can
Use to make payments from this account. Or use their ATM card to withdraw
cash from your stock trading account.
Today practically every big name brokerage firm offers online stock trading
as it reduces their costs. Earlier they had army of brokers on phone with
clients executing trade, which is done by computers accepting orders from
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clients directly. This firm now offers human access to high net worth accounts, and to
rest at charge per trade.
E- Broking - A small beginning:
You have some money to dabble with. Trading shares on BSE/NSE has always
been your dream. When will you ever find the time? And besides, the hassle of finding
a broker is not easy. Realizing there is untapped market of investors who want to be
able to execute their own trades when it suits them, brokers have taken their trading
rooms to the Internet. Known as online brokers, they allow you to buy and sell shares
via Internet.
There are 2 types of online trading service: discount brokers and full service
online broker. Discount online brokers allow you to trade via Internet at reduced
rates. Some provide quality research, other dont. Full service online brokerage is
linked to existing brokerages. These brokers allow their clients to place online orders
with the option of talking/ chatting to brokers if advice is needed. Brokerage rates here
are higher. 5Paisa.com, ICICIDirect.com, IndiaBulls.com, Sharekhan.com, Geojit
securities.com, HDFCsec.com, Tatatdw.com, Kotakstreet.com are some of the online
broking sites in India. With Net trading in securities and rapid consolidation between
multiple stock exchanges, the international securities marketplace is fast becoming a
"global village" through the creation of a universal virtual equity market.
Compared to the Western countries, online trading is still in its infancy in India.
With trading turnover at around Rs. 10 crores per day from online trading compared to
a combined gross turnover of around Rs. 9000-10,000 crores handled by the BSE and
NSE together, online trading has a long way to go.

INTERNET TRADING IN INDIA:


In the past, investors had no option but to contact their broker to get real time
access to market data. The Net brings data to the investor on line and net broking
enables him to trade on a click. Now information has become easily accessible to both
retail as well as big investors.
The development of broking in India can be categorized in 3 phases:
Stock brokers offering on their sites features such as live portfolio manager,
live quotes, market research and news to attract more investors.
Brokers offering on line broking and relationship management by providing
and offering analysis and information to investors during broking and nonbroking hours based on their profile and needs, that is, customized services.
Brokers (now e-brokers) will offer value management or services such as
initial public offerings on line, asset allocation, portfolio management,
financial planning, tax planning, insurance services and enable the investors
to take better and well-considered decisions.
In the US, 82 per cent of the deals are done on line. The European on line broking
market is expected to be of $8 billions and is likely to raise five fold by 2002. In India,
presently Internet trading can take place through the order routing system, which will
route client orders to exchanges trading systems for execution of trades on stock
exchanges (NSE and BSE). This will also require interface with banks to facilitate
instant cash debit or credit and the depository system for debit or credit of securities.
Objectives of Internet trading:
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Increase transparency in the markets.


Enhance market quality through improved liquidity, by increasing quote
continuity and market depth.
Reduce settlement risks due to open trades, by elimination of mismatches.
Provide management information system (MIS).
Introduce flexibility in system, to handle growing volumes easily and to
support nationwide expansion of market activity.
Besides, through Internet trading three fundamental objectives of securities
regulation can be easily achieved, these are: Investor protection, creation of
a fair and efficient market and, reduction of the systematic risks.
Procedure for Internet trading:
Step-1: Those investors interested in doing the trading over internet system,
that is, NEAT-ISX, should approach the brokers and register with the Stock
Broker.
Step-2: After registration, the broker will provide to them a login name,
password and a personal identification number (PIN).
Step-3: Actual placement of an order. An order can then be placed by using the
place order window as under:
o First by entering the symbol and series of stock and other parameters
such as quantity and price of the scrip on the place order window.
o Second, fill in the symbol, series and the default quantity.
Step-4: It is the process of review. Thus, the investor has to review the order
placed by clicking the review option. He may also re-set to clear the values.
Step-5: After the review has been satisfactory; the order has to be sent by
clicking on the send option.
Step-6: The investor will receive an ``Order Confirmation'' message along with
the order number and the value of the order.
Step-7: In case the order is rejected by the Broker or the Stock Exchange for
certain reasons such as invalid price limit, an appropriate message will appear
at the bottom of the screen. At present, a time lag of about ten seconds is there
in executing the trade.
Step-8: It is regarding charging payment, for which there are different modes.
Some brokers will take some advance payment from the investors and will fix
their trading limits. When the trade is executed, the broker will ask the investor
for transfer of funds by the investor to his account.
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The above figure shows how the internet trading procedure.

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Factors to keep in mind while selecting online brokers:


Brokerage cost: It is important to weigh up the subscription and trading costs charged
by an online broker against benefits offered by the site. All online brokers display their
charges on their sites. Some make sure you find the charges easily, while with others
you will have to search a bit.
Safety: Please make sure site has 128-bit encryption to ensure safety of transaction
online. ICICIDirect.com, 5paisa.com are few sites with 128-bit encryption. You
normally get a secured Login id and password. It is always advisable to frequently
change trading password. Ideally online trading site should be fully integrated. The
greater the backward integration, the better it is for the customer. Ideally broking
account, demat account and bank account should be linked electronically.
Rate refresh: Rate refresh has to be real-time with no time lag. The speed and
reliability comes with huge investment in technology. It is always advisable to check
rates of online broking sites with BSE/ NSE terminal rates.
Speed of execution: System has to be fast and reliable that does just one job- executes
your trades. The last thing you need is a site that is heavily congested with the users
who are downloading heavy jpeg graphs or pulling the latest story why market is
moving. The site should be one click wonder where squaring off all your positions or
canceling all your pending orders takes one click and a confirmation of action.
Trading limit: For trading, all sites provide 4 times buy and sell limit against margin
money put in by customer. For delivery of shares, buying limit is equal to margin
money put in by customer. Couple of sites also provides margin funding for buying of
shares.
Free trial period: Site should allow users free trial period to familiarize yourself with
system before you decide to become trading member of the site.
Intraday chart/ historical chart: The site should provide intraday chart tick by tick time
and price data / historical chart for technical analysis by investors of particular scrip.
Lot of people trade based on charting packages.
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Success Factors for e-broking:


There are three key success factors for e-broking,
Scalability and robustness of the trading system:
The fundamental difference between the Internet as a transaction medium and
the conventional closed user group network is that the Net is a universal
platform providing concurrent access to infinite users at any given point in
time.
Consequently, it becomes imperative for any Net-based application to have a
proven capability for scalability and robustness which ensures the ability to
handle and process requests from multiple users at any given point in time.
Bandwidth optimization:
In the Indian context where availability of a sufficient bandwidth is limited, the
application software should demonstrate intelligence in optimizing the
available bandwidth by deploying advanced technologies such as streaming.
Integration with third party systems:
On the Net, with information feeds available from multiple points, it is prudent
to deploy applications that are built on open architecture methodology for
interfacing with third party systems in the new Net age.

Challenges in Internet Trading:


For Internet trading to succeed it is imperative to have both, a robust business
model as well as a comprehensive technology strategy. Some of the challenges are
discussed: Transaction fulfillment--In the Net-based economy, it is both prudent and
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essential for a broker/intermediary to offer total solution to the clients at a single point.
Total solutions would essentially mean offering interfaces with banks, depositories,
information feeds, etc. for efficiency in trade completion and reducing duplication of
client information. The service providers will have to go beyond the stage of mere
order execution and emerge as "informediaries" rather than "intermediaries". This will
not only ensure lower trading costs in terms of offering cross services but will also
help in maximizing RoIs.
A true Internet trading system should deliver cost effective transaction
fulfillment at a single point.
Future of Internet Trading:
International marketplaces are already witnessing re-alignments and changes
with the emergence of electronic communication networks (ECNs) such as INSTINET
and ISLAND, which are already contributing substantial business volumes to mainline
exchanges such as NASDAQ and the NYSE. Concurrently, exchanges worldwide are
looking at striking strategic alliances such as the Global Equity Market (GEM). With
Net trading in securities and rapid consolidation between multiple stock exchanges,
the international securities marketplace is fast becoming a "global village" through the
creation of a universal virtual equity market. Therefore the challenge for the
technology providers is to develop and deploy advanced e-trading tools and
applications using electronic straight through processing technologies.

MARKET TYPES
Every modern economy is based on a sound financial system .A financial
system is a set of institutional arrangements through which financial surpluses are
mobilized from the units generating surplus income and transferring them to the others
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in need of them. The activities include production, distribution, exchange and holding
of financial assets/instruments of different kinds by financial institutions, banks and
other intermediaries of the market.
The financial markets have two major components; they are money market and capital
market.
Financial Markets

Money Market

Capital Market

Securities Market

other forms of

Lending
And
Borrowing
New issue (Primary)

Stock (Secondary)

Market

MONEY MARKET:
The Money Market refers to the market where borrowers and lenders exchange
short-term funds to solve their liquidity needs.
CAPITAL MARKET:

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The Capital Market is a market for financial investments that are direct or
indirect claims to capital.
SECURITIES MARKET:
It refers to the markets for those financial instruments/claims/obligations that
are commonly and readily transferable by sale. It has two inter-dependent and
inseparable segments, the new issues (primary) market and the stock (secondary)
market.
SECONDARY MARKET:
The secondary market enables those who hold securities to adjust their holdings
in response to changes in their assessment of risk and return.
PRIMARY MARKET:
The Primary Markets provides the channel of sale of new securities.

COMPANY PROFILE
SAIKRIPA SECURITIES LTD
Originally established in the year 1944 as R.M. Choksey & Co. a partnership
firm, SAIKRIPA Securities Ltd (SAIKRIPA) today is a leading broking house offering
wide range of diversified financial services with value addition to its Clients.
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Quality is a first step in whatever SAIKRIPA envision or do. Backed by experienced


and dedicated team SAIKRIPA marches and create its own niche in the world of capital
market. It is a constant endeavor of company to create a world class facility for the investors
to become the true friend of capital market. Excellence through commitment and service
through experience always fuels this motto.
Operating from cities of Mumbai and Gujarat SAIKRIPA provides an end to end
solution for the capital market related products which makes it complete financial house for
one stop solution. The client base is a mix of high net worth and retail diversified investors
and corporates. The satisfaction, lasting loyalty and stability of clients has contributed to the
growth and strength of SAIKRIPA.
Apart from providing services through its branches across the cities of Mumbai and
Gujarat, it offers an Internet based Online trading facilities to its Clients. SAIKRIPA also
provides quality Fundamental Research Material and Daily Technical Research Reports,
which are outsourced from analysts, whose credentials are verified. Thus growth with
changing needs of economy is a focus of the SAIKRIPA.
At SAIKRIPA management is constantly honing its experience and analytical skill
with one single minded objective to reach to greater heights with wholesome satisfaction of
all concerned.
Areas of Co-Operation
We look for business associate who wish to service their customers for our financial
services and products. If you have the zeal to service customer in capital market related
services and have business acumen and strength in your region / location, with a small
amount of investment, we would enroll you as our Business Associate and co-operate in
building a suitable support for your growth in this business area.
As our Business Associate, you will actively promote and market our services and
products, enroll and activate clients, and assist & service their market participation in capital
market related services being provided by us (and / or our group companies).
Our Advantage
Services :
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Investment through BSE (in Cash)

Online and VSAT based trading

Browser based and Software based trade execution system for online / Internet clients

IVRS based trading

Online Risk Management System

Research support

24 x 7 Accounts access

Depository services

In case you feel that this is the business you need to take up and develop and growth in
association with us, fill in the details available in the "Inquiry Form" and submit. We will get
in touch with you and further explore the impending opportunities.
COMPANY DETAIL:
SAIKRIPA SECURITIES LTD
SEBI Registration No. Cash Segment : BSE INB - 010970731.
Depository CDSL: IN-DP-CDSL-91-2000
Saikripa Commodity Brokers Pvt. Ltd
MCX Registration No. MCX/TCM/CORP/0307

SERVICES PROVIDED
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Equity
Equities form the core segment of capital markets offering the best returns for investors.
Although investments in equities carry high risk, returns are considerably high if research on
companies is conducted in a structures manner.
At Saikripa Securities Ltd you will be serviced by an efficient team of experienced dealers
that will execute your trades in a timely manner. Our research team will recommend and help
you identify investment opportunities in the equity markets.
You can start trading in the stock markets just opening a Trading A/C with At Saikripa
Securities Ltd After opening trading account one can trade through traditional channels such
as Phone/Fax or online through the Internet. We also provide trading through the ODIN
Platform which offers the facility of trading in one single screen in BSE on real time. You
will receive Order confirmation, Contracts and Bills through E-mail / Physical mode on a
daily basis and the same will be posted on our website.
Investment is either an increase in human capital or an increase in the stock of capital goods.
Equities as an asset class of investments offer returns on a periodic basis. Further, speculation
is the ownership of an asset with the intent to profit from unexpected changes in supply or
demand, high-risk activity. We promote delivery based share trading.
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Saikripa Securities Ltd offers a gamut of value added services such as: Technical Analysis,
Fundamental Analysis, that are useful for determining entry and exit levels in different
segments. Thus by using latest technological infrastructure and research tools, Saikripa
Securities Ltd will help you make decent returns on your investments.
Depository Services
Saikripa Securities Ltd Is a depository participant with the Central Depository services
(India) limited for trading and settlement of dematerialized shares. As Depository Participant,
Saikripa Securities Ltd facilitates between clients and the depository to deliver the complete
array of services including Dematerialization (converting physical shares to electronic
shares), Rematerialisation (converting electronic shares to physical shares), Transaction and
Maintenance of Securities in electronic form.
Saikripa Securities Ltd uses latest technology to provide you DP services in a safe and
convenient alternative of holding your securities in electronic form instead of physical form.
While opting for the conversion, you retain all the rights and benefits of ownership and
eliminate all hassles caused by events such as loss/mutilation of physical certificates, postal
delays, loss in transit and counterfeiting. This not only enhances efficiency but also enables
safer, faster and easier way of holding and trading securities. We ensure that our clients focus
on investment and trading decisions rather than the drudgery of operational and transactional
processes.
Having Saikripa Securities Ltd demat account coherent with your trading account creates an
efficient seamless delivery capability that brings manifold operational and transactional
benefits in a less intimidating manner. We offer depository services to create an integrated
and seamless transaction platform to execute trades through our stock broking division.
Saikripa Securities Ltd offers you the following Depository Services: Account Opening
Dematerialization Rematerialisation Account Transfer Nomination Pledging / Unpledging
The Beneficiary Account holder can view his holding / transaction statement / bill / ledger
through our website.
Commodities
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The modern commodity markets have their roots in the trading of agricultural
products. While wheat and corn, cattle and pigs, were widely traded using standard futures
instruments in the 19th century in the United States, other basic food items like soybeans
were only added quite recently in most markets.
In India setting up of Bombay Cotton Trade Association Ltd. in 1875 evolved the first
organized futures market. India's commodities market is expanding exponentially. Investors
looking for fast paced dynamic market with ever increasing liquidity can now trade in Indian
commodities market.
Advantage SAIKRIPA Commodity Brokers Pvt. Ltd is a member of the Multi
Commodity Exchange (MCX). This gives our clients easy access to the commodities market,
empowering them to extensively study its evolving nature and offers detailed analysis of a
wide range of commodities.
Advantage over Equity Market One might be surprised to know that globally the
commodities market attract more volume then the equity market. And one would wonder
why? Well here are the reasons:
Commodity trading is about the simple economics of supply and demand. There are
no balance sheet and P&L statements and hence no company specific information is required
to be analyzed.
Commodity trading comes with nil insider trading and company specific risk.
Supports are known, only resistance matters! Minimum support price acts as a
statutory support for many commodities.
No breaking of heads over market direction. Seasonality patterns quite often provide
clue to both short - and long - term players.

Online Trading
Times are changing, Technology is changing. Life is becoming fast. So keeping in
mind all these factors we are now offering Internet based Trading.
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Gone are the days when you had to hang on the Phone talking to your Broker for
getting your trades executed.
We at Saikripa believe in Delivering nothing but the Best hence we have in place a
state of the art infrastructure which includes the world best Hardware, the Best Indian Online
Trading Software, the Best available data encryption and of course the Robust Risk
management system.
We

offer

two

different

products

for

Online

Trading

Browser Based Online Trading (Suitable for Delivery Based & low volume Clients)
Exe Based Online Trading (Suitable for HNIs, Day Traders, etc)
We offer online trading on BSE.

TOPIC DETAIL

DEMAT ACCOUNT
Definition:
De-mat account is a safe and convenient means of holding securities just like a bank
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account is for funds. Today, practically 99.9% settlement (of shares) takes place on
De-mat mode only. Thus, it is advisable to have a Beneficiary Owner (BO) account to
trade at the exchanges.
Benefits Of De-mat Account:
1. A safe and convenient way of holding securities (equity and debt instruments
both).
2. Transactions involving physical securities are costlier than those involving
dematerialized securities (just like the transactions through a bank teller are
costlier than ATM transactions). Therefore, charges applicable to an investor
are lesser for each transaction.
3. Securities can be transferred at an instruction immediately.
4. Increased liquidity, as securities can be sold at any time during the trading
hours (between 9:55 AM to 3:30 PM on all working days), and payment can be
received in a very short period of time.
5. No stamp duty charges.
6. Risks like forgery, thefts, bad delivery, delays in transfer etc, associated with
physical certificates, are eliminated.
7. Pledging of securities in a short period of time.
8. Reduced paper work and transaction cost.
9. Odd-lot shares can also be traded (can be even 1 share).
10. Nomination facility available
11. Any change in address or bank account details can be electronically intimated
to all companies in which investor holds any securities, without having to
inform each of them separately.
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12. Securities are transferred by the DP itself, so no need to correspond with the
companies.
13. Shares arising out of bonus, split, consolidation, merger etc. are automatically
credited into the De-mat account of the investor.
14. Shares allotted in public issues are directly credited into De-mat account of the
applicants in quick time.
Opening a De-mat Account
To start dealing in securities in electronic form, one needs to open a De-mat account
with a DP of his choice. An investor already having shares in physical form should
ensure that he gets the account opened in the same set of names as appearing on the
share certificate; otherwise a new account can be opened in any desired pattern by the
investor.
Note:
1. The agreement required to be signed by the investor details the rights and
duties of the investor and DP.
2.

DP may revise the charges by giving a 30 days prior notice. SEBI has
rationalized the cost structure for inaction by removing account opening
charges, transaction charges for credit of securities and custody charges,
effective from January 28, 2005.

Maximum

Number

of

holders

in

De-mat

Account

A maximum of three persons are allowed to open a joint De-mat account in their
names.

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DEMATERIALISATION
Definition:
Dematerialization is the process of converting physical shares (share certificates) into
an electronic form. Shares once converted into dematerialized form are held in a Demat account.
Dematerialization Process:
An investor having securities in physical form must get them dematerialized, if he
intends to sell them. This requires the investor to fill a De-mat Request Form (DRF)
which is available with every DP and submit the same along with the physical
certificates. Every security has an ISIN (International Securities Identification
Number). If there is more than one security than the equal number of DRFs has to be
filled in.

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The

whole

process

goes

on

in

the

following

manner

:--

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RAD ccount
egiem satt riar iraarcoml ies atupdatmi o nuniofecdatt hbyee s twh iet hR tegih e s t e r and t h e D eposi t o r y
AcerlDi ccount
sonre yars about
tr e emeposi
izgia sfitiatt rcatoataccount
tr of te ho updat
te h ofofe DtthehP ede f obyi sr suerdemt h e Catome r ipanya l i z at i o n
Dicern eposi
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o
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o
com
fir
m
t
h
e
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e
quest
tD eposi
if o r fim catedt o re about
sy andi s doneDt hpe ibys comi nt fhoeplr me tedi o n aboutof D em at e r i a l i z at i o n
irPne rovestquestcee rssi s updat e d by
rt he egi ssamt e r e
DP
THINGS INVESTORS SHOULD KNOW ABOUT ACCOUNT OPENING AND
DEMATERIALISATION
Providing the bank account details at the time of account opening
It is mandatory for an investor to provide his bank account details at the time of
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opening a De-mat account. This is done to safeguard investor's own interests. There
are two major reasons for this:
1. The interest and dividend warrants can't be en-cashed by any unauthorized
person, as the bank account number is mentioned on it.
2. It is convenient and time saving, as dividends and interests given by the
companies can be directly credited to the investor's bank account (through ECS
facility, wherever available).
Change

in

bank

account

details

It is possible for an investor to make changes to the details of his bank account. The
investor must inform any change in his bank account details to his DP. This enables
him to receive the cash corporate benefits (such as dividends, interests) directly into
his account in time and discourages any unauthorized use by any second party.
Change

in

the

address

of

investor

as

provided

to

the

DP

Any change in your address should be immediately informed to DP. This enables DP
to make necessary changes in the records and informing the concerned companies
about the same.
Opening

multiple

accounts

An investor is allowed to open more than one account with existing DP or with
different
Minimum

DPs.
balance

of

securities

required

in

De-mat

account

There is no stipulated minimum balance of securities to be kept in a De-mat account.


Account

opening

and

ownership

pattern

of

securities

One must make sure to open a De-mat account in the same ownership pattern in which
the physical securities are held. For example: If you have two share certificates, one in
your individual name (say 'X') and the other held jointly with some other individual
(say 'XY'), then in such a case you will have to open two different accounts in
28

respective ownership patterns (one in your name i.e. 'X' and the other account in the
name of 'XY').
Same combination of names on certificates but different sequence of names on
the

certificates

or

De-mat

account

Regulations provide that the client receives a contract note indicating details like order
number, trade number, time, price, brokerage, etc. within 24 hour of the trade. In case
of any doubts about the details of the contract note, you (investor) can avail the
facility provided by NSE, wherein you can verify the trades on your website
www.nseindia.com/content/equities/eq_trdverify.htm. The Exchange generates and
maintains an audit trail of orders/trades for a number of years, and you can counter
check

details

of

order/trade

with

the

Exchange.

Holding a joint account on "Either or Survivor" basis like a bank account


No investor can open a De-mat account on "E or S" basis like a bank account.
Allowing

somebody

else

to

operate

your

De-mat

account

It is possible for an account holder (Beneficiary Owner) to authorize some other


person to operate the De-mat account on his behalf by executing a power of attorney.
After submitting the power of attorney to the DP, that person can operate the account
on

behalf

of

the

beneficiary

owner

(BO)..

Addition/deletion of the names of the account holders after opening the account
It is not possible to make changes in the names of the account holders of a BO
account. A new account has to be opened in a desired holding/ownership pattern.
Closing a demat account and transfer of securities to another account with same
or

different

DP

An investor, if he wants, can also close his demat account with one DP and transfer all
the securities to another account with existing or a different DP. As per a SEBI circular
issued on November 09, 2005, there are no charges for account closure or transfer of
securities

by

Freezing/Locking

an

investor

from

one

demat

DP

to

another

account

The account holder can freeze his demat account for a desired time period. A frozen
account prevents securities to be transferred out of (Debit) and transferred into
29

(Credit)
Dematerialized

the
shares

do

not

account.
have

any

distinctive

number

Dematerialised securities are fungible assets. Therefore they are interchangeable and
identical.

REMATERIALIZATION
The process of getting the securities in an electronic form, converted back into
the physical form is known as Dematerialization. An investor can rematerialize his
shares by filling in a Remat Request Form (RRF).
The whole process goes on as follows: --30

RIDR n Peev gp mi ino s fstao ri tart omr r yus p ct dho aen t fi e r s m s t h e


AI n c v c e o s u t no tr s r ea cr e i uv ep sd a t e d b y
eeDr e s er q ip ua o e ls si i zt o t ro y t h e r e g i s t r a r o f
at h c ec o Dc u e e n r p tt ios fi s c ia at no t der y s p a r ni n d t s d e t a i l s
taatc oh eb t reroi t oui sfi tn sc tu a h et e er s C fo o m r p a n y
af r r o e m p rt oh ve i d r e gd i st ot e tr h e D P
rPt he r qe o iu n ce v es e t ss t o r
s
Note:
Depository - An organization that facilitates holding of securities in the
electronic form and enables DPs to provide services to investors relating to
transaction in securities. There are two depositories in India, namely NSDL and
CDSL. As per a SEBI guideline, the minimum net worth stipulated for a
depository is Rs.100 crore.
31

NSDL/CDSL - The securities are held in depository accounts, like the funds are
held in bank accounts. There are two depositories in India namely NSDL and
CDSL. NSDL (National Securities Depository limited) was established in
August 1996 and is the first depository in India. CDSL (Central Depository
Securities Limited) is the other depository and was established in 1999.
DP (Depository Participant) - A Depository Participant can be a financial
organization like banks, brokers, financial institutions, custodians, etc., acting
as an agent of the Depository to make its services available to the investors.
There are a total of 1334 DPs registered with SEBI, as on March 31, 2009 and
each DP is assigned a unique identification number known as DP-ID.

Trading account:
It is that type of account with the help of which a De-Mat account holder can
buy or sell shares. SAI KRIPA Ltd. Provide their customer software Trade Terminal
for trading by free of cost and unlimited number of scripts.
Formalities required for opening of De-Mat and Trading a/c in SAI KRIPA Ltd.
For Individual
32

PAN Card(compulsory for all joint holders)


Address proof of all joint holders
Specimen copy of cheque
De-Mat a/c and Trading a/c these are as follows:Individual Account
Account opening charge 555/Margin Money- 2555/- (minimum)
Exposure 3 times for intraday & 5 times for delivery.
Software installation charge- NIL
Annual Maintenance Charge- NIL
Brokerage- Intraday-.05% & Delivery-.50%
Joint Holders Account
Account opening charge-555/Margin money- 2555/-(minimum)
Exposure- 3 times for intraday & 5 times for delivery
Software installation charge- NIL
Annual Maintenance Charge- NIL
Brokerage- Intraday-.05% & Dilivery-.50%

33

COMPANY TO COMPARE
SHARE KHAN SECURITIES
A/C opening charge- 750/-

Name of the software used- Java


Software installation charge-NIL
Maintainance charge-Rs.50/-p.a
34

Exposure- 5 times(For Intraday)


Name of the bank with the help of which customer get the facility of net
banking- ICICI bank, AXIS bank, HDFC bank, IDBI.
Services provided- Equity Trading,Derivatives,Forex,Commodity,IPO,MF &
Insurance.
DP sell charge- 12/ Brokerage- intraday-0.05%-0.07%& Delivery-0.25%-0.40%
Transaction Report- By mail(Free of Cost)
Prepaid Scheme- not available.
Types of trading accounts providedo De-Mat a/c ,Trading a/c ,Commodity a/c.
Network- 10000 outlet in5000 different cities and 22 lakh customers.
Margin money- it is not restricted.
Secrecy- Extra Security Features with Security Token which is the most
secure and tested technology in the computer world. Customers account is
safeguarded with a unique security number that changes every 32 seconds.

Comparative Analysis of charges and facilities provided by different companies

Company

Account
Opening

Margin
Money

Brokerage
IntraDelivery(%)

AMC

Exposure
(for intra)

branches

35

SAI KRIPA

0/-

2555/-

0.05-0.50

250/-

8 times

607

Share khan

750/-

5000/-

0.03- 0.30

500/-

4 times

250

REVIEW OF THE 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
36

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 Francis2 (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.
37

Preethi Singh3(1986) disclosed the basic rules for selecting the company
to invest in. She opined that understanding and measuring return md 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 Edward4 (1990) reviewed the important
risks of owning common stocks and the ways to minimize 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 inseveral unrelated industries.
Lewis Mandells (1992) reviewed the nature of market risk, which
according to him is very much 'global'. He revealed that certain risks that are so
global 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 Jain6 (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
38

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 longterm 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.Gupta (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
39

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 short-term 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 shortterm, 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.

OBJECTIVES OF THE PROJECT


To study the various functional department of the SAI KRIPA SECURITIES.Ltd.
To promote the sales of SAI KRIPA SECURITIES.
To know the contribution of SAI KRIPA SECURITIES in Stock Broking Industry.

40

RESEARCH METHODOLOGY
The research was carried out through survey method, fieldwork in order to
collect data. Data collected through questionnaire..
PLACE OF STUDY:
The study was conducted in different Retail outlets in SURAT, different people
selecting through random sampling and SAI KRIPA Securities Pvt. Ltd.
SAMPLING PLAN:

41

A sample design is definite plan for obtaining an overall analysis from a given
population. It refers to the technique or the procedure, the researcher would adopt in
selecting items to be included in the sample research should select design which
would be reliable and appropriate for the study.
SAMPLE SIZE:
For the present study respondents have been selected from different places in
SURAT. The sample was taken as 100 respondents.
PRIMARY DATA:
The primary data are fresh data collected directly from the field and therefore
consist of original information gathered for the specific purpose. It is expensive,
laborious, and time consuming. But it assures a greater degree of accuracy and
reliability as it comes straight from the horses month. The information is collected
with the help of questionnaires a set of 11 questions.
SECONDARY DATA:
The secondary data are the data, which the investigator borrows from other
who have collected it for various other purposes. Therefore it may not entirely be
reliable. It is less expensive and involves less expensive and involves less time and
labor than the collection of primary data.
SAMPLING PROCEDURE:
For a statistical survey of a population, the investigator may collect information
from each and every unit belonging to the population or he may collect information
from some selected representative units only. The group of representative units from
which information is collected is called sample. A sample is a representative position
of the population. A statistical survey in which a sample is made use of is known as
sample survey.
The procedure of extracting a sample from a population is called as sampling
procedure. Since validity of results of a survey depends mainly on the selection of the
42

sample, the sample should be obtained with utmost care. Important methods of
sampling procedure are:
i.

Random sampling.

ii.

Judgment sampling.

iii.

Quota sampling.

Random Sampling:
A sampling procedure in which units are selected in such a way that all the
units in the population have equal change of being selected is random sampling.
Judgment Sampling:
When the population is small the investigator personally, according to his
judgment way select the units which from the sample, such a sample is called
purposive or a judgment sampling.
Quota Sampling:
If the population has various categories of units the investigators may decide
to fix specified quotas for representation for all major categories.
In this study Random sampling method is used.

FIELD WORK:
This study involves the field work of around 60 days, wherein the target segment i.e.
consumers were contacted individually.
Prepared questionnaire were administrated to them and answers were collected.
Fieldwork was done in different areas in SURAT. The study was conducted from SAI
KRIPA Securities Pvt. Ltd.The Study attempts to analyze and determine The
position of SAI KRIPA in Securities Market.

43

ANALYSIS
We have undergone a survey of various investors to know the investors perspective
while investing in the share market. Sampling method for the survey is convenient
sampling. We have divided the entire sample in three major categories.
1. Age group
2. Occupation
3. Investment Amount
4. Investment period
5. DealinG
44

Age group
21-25
25-30
30-40
Above40
Total

Response
18
25
35
22
100

AGE
21-25

25-30

22%

30-40

Above40

18%

25%
35%

Interpretation

We have taken care of the age groups while taking survey because of different
decision making methods of the different investors due to their age level.
The major chunk of our respondents is of 30-40 age group, this age group people has
developed their career and secured a better living. This age group people are also
experienced and have knowledge over the various investments. During our survey we
have seen that this age group people want to take moderate e risk and look for a sure
opportunity for profit making.

45

We can see in above table that the second major respondents of our survey are from
25-30 age groups. It is the age group at which the person is developing in its career
and the risk taking ability is more. During our survey we have seen that persons of this
age group want to take risk as well as to secure its position also.
The major chunk of our respondents is of 30-40 age group, this age group people has
developed their career and secured a better living. This age group people are also
experienced and have knowledge over the various investments. During our survey we
have seen that this age group people want to take moderate e risk and look for a sure
opportunity for profit making.
21-25 age group people are developing their career. They are less experienced and
new to investment instruments. These age group people are willing to take risk more
and want to try all the investment avenues as seen during our survey.
Above 40 group people are grown and developed their careers. But at this age level
they are willing for security so they invest in more secure investment instruments
only.

OCCUPATION
Occupation
Employee
Government officer
Business man
Professional
Total

Respondents
24
22
35
19
100

Interpretation
The second segment characteristic of our survey sample is occupation because it plays
major role in persons investment ability in the investment decision-making. Different
46

occupation people look for different investment avenues due to various needs like
security, liquidity, profit making etc.

Occupation
Employee

Government officer

Business man

Professional

19%
35%

24%
22%

3 Investment Amount

INCOME GROUP
Income group

Respondents

47

Below 50,000
51,000-1,00,0000
101,000-1,50,0000
Above 1,51,0000
Total

28
20
42
10
100

INCOME GROUP
45
40
35
30
25
20
15
10
5
0
Below 50,000

51,000-1,00,0000

101,000-1,50,0000

Above 1,51,0000

Interpretation
Income can also be considered the most crucial factor in persons decision making
regarding investment. Different income level person would have different needs,
expenses and savings.
So during our survey we have also taken care of the investment opportunity to
different income level & investment period group people

INVESTMENT PERIODS
Investment period
1-5 year
5-10 year
10-15 year
More than 15

Respondents
28
36
26
10
48

Total

100

INVESTMENT PERIOD
1-5 year

5-10 year

10-15 year

More than 15

10%
28%
26%

36%

DEALING
Account
Intraday
Delivery Base
Total

Respondent
s
45
55
100
49

DEALING

55

Delivery Base

45

Intraday

10

20

30

40

50

60

Respondents

Interpretation
The other much interesting factor for our survey is dealing account. intraday
respondent in the survey are less then delivery base, it turned a reason that most of
investment decisions regarding investment is dependent on their account.

PEOPLE CAN JOIN COMPANY


Company
Sai kripa securities
Share khan
Other
Interpretation

Response
32
53
15

50

Our next objective was to know the most preferred company; we came to know that
the most of the investors are willing to preferred and helpful services of company.
Today there are lot of Brokerages Company located in the SURAT city preference of
investors towards it is cold as seen in our following data table.
60

53

50
40

32

30
20

15

10
0

51

Security invest
Ranking of investment
instruments
Mutual funds
Equity
Insurance
Commodity
Bank deposit
Total

Total

30
18
26
10
16
100

36
29
15
14
6
100

15
19
13
43
10
100

17
24
30
22
7
10
0

2
10
16
11
61
100

100
100
100
100
100

First preference
35
30

30
26

25
20

18

Respondents 15

16
10

10
5

0
mutual fundsequity insurancecommodity
bank deposit
Investment instrutments

Interpretation
As we can see from the above data table that the investors prefer more amount to be
invested in the mutual funds followed by insurance. Commodity market are still
ranking 4th after equity.
But our aim is to know the composite ranking of the investments so we have
given weight to the responses. The 5th rank has been given 5 weight and then 4 th rank
given 4 weight and so on. So we got following data table
Investment instruments
Mutual funds

Preference (weighted
method)
3.75

Ranks
1
52

Equity
Insurance
Commodity
Bank deposit
Interpretation

3.21
3.05
2.9
2.09

2
3
4
5

So we can see that from second position in preference matrix equity has gained second
position and the mutual funds are at first place. Commodities are preferred at the
fourth spot after insurance. It suggests that people want to prefer less risky and more
return oriented instruments first, then they invest in high risky instruments.

Preference(weighted method)
4

3.75

3.5

3.21

3.05

2.9

2.5

2.09

2
1.5
1
0.5
0
mutual funds

equity

insurance

commodity

bank deposit

Investment instrutments

53

Customer satisfied or Unsatisfied


Sevice
Online
Offline
Transaction
Secrecy
Custmer care
SMS

Satisfied
85
65
60
65
90
80

Satisfied
SMS

Transaction

Offline

Online

Unsatisfied

80

Custmer care

Secrecy

Unsatisfied
20
35
40
35
10
20

20

90

65

10

35

60

40

65

35

85

20

Interpretation
Our next objective was to know in which investors prefer to services more over We
asked the investors to choose from various services. Among the 100 customers who
are having demat account in various broking firms. The investor satisfied or
unsatisfied can you show in the pie chart.

54

FACTORS AFFECTING DECISION-MAKING


In this survey our third major objective for conducting the survey is to know
investors rationale while investing in stock market. We given them a few statements
and asked them whether they are agreeing or disagree with the statement. Further we
have given them a choice of strongly agree and disagree to check the density.
If the respondent is not sure of his position then he may choose somewhat agree. Thus
we have given five option to choose one position his.

When the market goes down, I tend to sell


some of my riskier assets and put the money in
safer assets.
40
35
30
25
20
15
10
5
0
Agree
Strongly
Disagree

Disagree Somewhat
Agree

Agree

Strongly

Interpretation
In above diagram it is clear that the investors are risk takers but as the market overall
reaction we can see that majority are not taking risk , whenever there is negative
position or market are bearish investors tend to sell some part of their risky asset and
invest into the safer investments.

55

I would invest in stock market based


solely on a brief conversation with a
friend, coworker or relative.
35
30
25
20
15
10
5
0
Agree
Strongly
Disagree

Disagree Somewhat
Agree

Agree

Strongly

Interpretation
In above diagram we can see when we asked our respondents to choose between
friends advice or brokers tip, the results are also same that while investing friend or
peers advice plays an important role.

I generally take a chance on a new


situation.
30
25
20
15
10
5
0
Agree
Strongly
Disagree

Disagree Somewhat
Agree

Agree

Strongly

56

Interpretation
Same as above diagram this diagram also suggest that the investors are willing to take
risk on a new situation whenever the return is involved.

My objective to invest in commodity is to hedge my risk or secure my position

35
30
25
20
15
10
5
0
Agree
Strongly
Disagree

Disagree

Somewhat
Agree

Agree

Strongly

Interpretation
The commodity investors are not hedger but a speculator it is cleared by above trend
because they are not investing for hedging purposes. So in India the retail investors
are willing to invest in commodities for earning return only.
I making my investment decisions I take into considerations my brokers advice.

30
25
20
15
10
5
0
Agree
Strongly
Disagree

Disagree Somewhat
Agree

Agree

Strongly

Interpretation
57

The same thing here when asked then it was clear that the broker are the important
adviser while investing into commodity. And most of the people were strongly agree
towards the same.

I invest in a commodity after looking


at its past performance.
30
25
20
15
10
5
0
Agree
Strongly
Disagree

Disagree

Somewhat
Agree

Agree

Strongly

Interpretation
This time we bifurcated research and advice, we asked that if broker has advised you a
particular commodity the do you consider its past performance. The result is
surprising. The investors are blindly relying ion the brokers advice only and the y do
not undergone a self research for investment. But here the results are not even clear
because traders are dispersed equally.

LIMITATIONS:

The project survey is carried out only in Kolkata region


58

The results are based only according to customers response which may
vary.
Sample size of survey to determine the position of the firm is only 100,
hence the level of significance may vary.
Brokerage rate of the different firms are based on the information collected
by me via visiting the broking firms and using website of the firms which
may vary.
The project survey for comparison was carried only on the basis of demats
account.

FINDINGS

59

Brokerage of SAI KRIPA is higher than Others broking firms like Share Khan,
they are charging 0 .03% for Intraday and 0 .30% for Delivery where SAI
KRIPA is taking 0 .05% for Intraday and 0 .50% for Delivery.
Margin money of SAI KRIPA is higher than other firm .But in India Infoline,
the minimum margin money should be Rs. 5000/2555.
Exposure is less than other firms. SAI KRIPA offers eight times exposure on
margin where as Sharekhan offer twenty times exposure on margin money.
OTHERS provide their customers three types of account (de-mat a/c, trading
a/c, bank a/c) but SAI KRIPA provide only De-mat a/c and Trading a/c.
Relationship manager changes many times, it creates problem for the offline
customers .
Securities are not so much reliable.
SAI KRIPA has hidden charges, Customer are not much aware about that.
Customer satisfaction of SAI KRIPA not so good.
Most of the customers are trading offline.
Most of the customers approach towards the broking firm is through the
relationship manager.
Most of the people are not much aware of share market and its benefit.

RECOMMENDATION
60

To increase awareness about Share Market and the name SAI KRIPA itself, the
company should organize campaign. The campaign can be weakly, monthly,
yearly, it will give a good result to the company to capture market in the
competitive position.
The company should reduce the margin money. It can help to acquire more
customers, if the firms bring plans for no boundation of margin money.
The Company should increase their focus on the less margin money customers
also .It can help to make more customers of low margin money which can
increase the revenue of the firm. The Relationship managers focus only to the
high margin money customer because from them they will get high brokerage
that should not be happened from the less margin money customer.
Transaction error should be avoided .Transaction should be done properly,
taking in consideration that it is one of the most required quality of a firm.
Wrong transaction or default transaction may lead the prestige of the company
to be down.
Brokerage rate should be reduced. Indiabulls, are charging as 0 .03% for
Intraday and 0 .30% for Delivery where as SAI KRIPA is charging 0 .05% for
Intraday and 0 .50% for Delivery.Though it is negotiable but for high margin
money customer not for less margin money customer.
The Company should increase Exposure. It is the good tool to capture the
market.

CONCLUSION
I am much thankful to SAI KRIPA for providing me the opportunity for doing
training programme in the organization as management trainee. While doing my sip in
the reputed broking firm SAI KRIPA I had got a chance for knowing and analyzing
the share market. I was also able to know about the business environment and
61

business ethics of the business world. I also came to know about what does a firm or
an organization require or wants from a employee or a trainee. From the survey, I
found that SAI KRIPA is in the top three position in the share market.

BIBLIOGRAPHY
I had collected the datas from various recourses
Internet,Library,Company itself.The sources are given below..
www.traderji.com
www.indiainfoline.com

from

62

www.5paisa.com
www.indiabulls.com
www.sharekhan.com
www.kotaksecurities.com
www.angeltrade.com
www.google.com
www.scribd.com

ANNEXTURE
QUESTIONNAIRE
Sources of information accessed by people when investing money in stock
market.
(Note: - Please tick mark on appropriate option, mark on more than 1 option
when necessary.)
63

(1)
(2)

Name:
________________________________________________________
Age group
21-25
25-30
30-40

(3)

(4)

(5)

(6)

Above- 40

Occupation
Employee

Government officer

Business man

Professional

How much amount you investment in stock market?


Below -50,000

51,000 1,00,000

1,01,000 1,50,000

Above 1,51,000

How many period you interest to investment in stock market?


1-5 years

5-10 years

10-15years

More than 15

In which type of dealing you can do ?


Intraday

(7)

Delivery base

In which company you can join?


Sai kripa
securities
Share khan
othes

(8)

In which types of security you can invest?


Investment
instruments

Mutual funds
64

Equity
Insurance
Commodity
Bank deposit

(9) Are you satisfied with the broking firm services?


Yes
No
(10)

What will you see when investing money in stock market?


Agre
e

Strongly Som Disagree Strongly


agree
e
disagree
what
agree

When the market goes


down, I tend to sell
some of riskier assets
and put the money in
safer assets.
I would invest in stock
market solely on a brief
conversation with a
friend, coworker or
relative.
My objective to invest
in stock market is to
hedge my risk or secure
my position.
I making my investment
decision I take into
considerations my
65

brokers advice.
I generally take a
chance on a new
situation.
I invest in a stock
market after looking at
its past performance.
(11) As per your opinion which kind of service improves?
-______________________________________________________________
THANK YOU

66

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