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CHAPTER 1

PROFILE OF THE COMPANY

1.1 BRIEF NARRATIVE ABOUT THE SHAREKHAN

Sharekhan company which was established on 8, feb,2000. Sharekhan named on the SSKI

Group (shatilal, shevantilal, kantilal, Ishwarlal). Sharekhan company is a retail broking

company. The site of the sharekhan company also launched on Feb,2000. Sharekhan is an

online website portal for online trading, investments and stock marketing. The company

was founded in February 2000 by entrepreneur Shripal largest stock broker portal and has

its branches in 575 cities in India. In 2016, Sharekhan has been bought by French bank

"BNP PARIBAS". It also has international presence through its branches in the UAE and

Oman. Sharekhan offers services like portfolio management, trade execution in equities,

futures & options, commodities, and distribution of mutual funds, insurance and structured

products. These services are backed by quality investment advice from an experienced

research team which offers investment and trading ideas based on fundamental and

technical research respectively, market related news, statistical information on equities,

commodities, mutual funds, IPOs and much more. Sharekhan is a member of the Bombay

Stock Exchange, the National Stock Exchange and the country’s two leading commodity

exchanges, the NCDEX and MCX. Sharekhan is also registered as a depository participant

with National Securities Depository and Central Depository Services. Sharekhan has set

category leadership through pioneering initiatives like Trade Tiger, an Internet-based

executable application that emulates a broker terminal besides providing information and

tools relevant to day traders. Its second initiative, First Step, is targeted at empowering the

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first-time investors. Sharekhan has also set its global footprint through the “India First”

initiative, a series of seminars conducted by Sharekhan to help the non-resident Indians

participate and benefit from the huge investment opportunities in India. Sharekhan offers

its customers a wide range of equity related services including trade execution on BSE,

NSE, Derivatives, Depository services, Online Trading, Investment Advice, Mutual Funds,

Online IPO's etc. Sharekhan’s ground network includes over 588 centers in 148 cities in

India, of which 32 are fully-owned branches. Sharekhan is lead by a highly regarded

management team that has invested cores of rupees into a world class Infrastructure that

provides their clients with real time service & 24/7 access to all information and products.

Our flagship Sharekhan Professional Network offers real-time prices, detailed data and

news, intelligent analytics, and electronic trading capabilities, right at their finger-tips. This

powerful technology complemented by their knowledgeable and customer focused

Relationship Managers. In today’s scenario, online Share Trading in Stock market is

gaining popularity. Till now most of the customers were working with offline but in metro

cities Online Share Trading is preferred because no one has much time to go to market and

work with offline. So online share trading come in picture. In Online Share Trading

investors invest their money in stock market through the internet. They do not want to go

to a broker. Today companies provided all information on a company website or make their

own software. Investors buy or sell their securities in a few seconds by clicking a mouse.

Online Share Trading is beneficiary for customer as well as company because in online

customers have not take much pain for investing money in a market. All process is done

automatically in a few seconds. Companies provided research reports, monthly magazine

etc through Internet. Investors get this information online. These reports help investors for

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investment in securities. Online Share Trading is very less time consuming and expensive.

So Online share Trading is much better than offline share trading. Online Share Trading is

safer and faster alternative to the offline Share Trading as it offer freedom from delays,

thefts and paperwork. So Online Share Trading is quick, convenient and efficient. The

Parent Organization of Sharekhan is SSKI group it also comprises institutional broking and

corporate Finance. While the institutional broking division caters to the largest domestic

and foreign institutional investors, telecom and media. SSKI holds a sizeable portion of the

market in each of these segments.

As the forerunner of investment research in the Indian market, we provide the best research

coverage amongst broking houses in India. Our research team is rated as one of the best in

the country. Voted four times as the Top Domestic Brokerage House by Asia-money

Survey. SSKI is consistently ranked amongst the top domestic brokerage houses in India.

Sharekhan company has got three awards like Awaaz award from CNBC Channel in 2004,

Best Preferred Brokerage House award from CNBC Channel in 2005, Awaaz award in

2006. Free Depository A/C, Secure order by voice Tool Dial-n-Trade, Instant cash

transformation, Multiple banking option, Automated portfolio to keep track of the value of

your actual purchases, 24 x 7 voice tool access to your trading account, Special personal

inbox for order and trade confirmations, Online customer service via web chat, anything

ordering, Enjoy automated portfolio.

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1.2 Objectives

a) Academic Objectives

i. To Understand management perspective of different functional areas of a business

entity.

ii. To Work in corporate and Gain knowledge of real business environment and their

corporate culture.

iii. To Develop the analytical skills.

iv. To Develop the skills of technical report writing through data collection, data

presentation, data analysis and data interpretation etc. of the organization.

v. To Analyse application of management concepts in a business situations-degree to

which applied/not applied.

b) Operational Objectives

i. To gain knowledge about online share trading

ii. To sell the three D-mat account in the market for developing the target achieving skills.

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1.3 SOURCE OF DATA COLLECTION

There are two types of data collection methods available.

1.3.1 PRIMARY DATA

1.Staff of Sharekhan Company

I collected data from sharekhan staff where I had done my internship. I have collected data

from my mentor and other employees of sharekhan. Data collected by the direct

communication with the assistant manager (Amit Garg) and employees of the company.

Method used such as direct communication with the supervisor, opinion of different

employees, informal talk with the employees etc. were used collection of data. Some

information also collected by personal observation.

1.3.2 SECONADRY DATA

On the other hand, are those, which have already been passed through statistical process. The

secondary data was obtained from the company’s own records and documents. Secondary data

was collected from the registers, manuals and various other sources. And there are other

secondary sources are as follows: -

1. Annual Report

2. Official website

3. Internet

4. Journals

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1.4 PROFILE OF THE ORGANISATION

The intern has been completed his internship in the share khan company which is located in

sec-8 Rohini, Delhi. Share Khan Company is a retail broking company. This was established in

feb,2000. Share Khan Company is leading by city venture of brokerage house based on SSKI

(Shantilal, Shevantilal, kantilal, ishwarlal). Share Khan Company has 1800 share shops in 550

cities across in India. From 331 shares shops out of 1800 and cities 137 cities out of 550 cities

have the ground network Centre’s like Mumbai, Bangalore , Kolkata, Delhi, Nagpur etc. share

khan company has 750 relationship managers who maintain the relationship from the clients and

try to understand the problems of clients and solve it by give better and valuable advices and try

to satisfying their clients, Share Khan Company is a retail broking company which provides the

online services to their clients 24 hours and 7 week. Share Khan Company provides different type

of products related to stock market like: equity trading, derivatives, commodity market, currency

market, and future and option etc. The content-rich and research oriented portal has stood out

among its contemporaries because of its steadfast dedication to offering customers best-of-breed

technology and superior market information. The objective has been to let customers make

informed decisions and to simplify the process of investing in stocks. On April 17, 2002 Sharekhan

launched speed trade, a net-based executable application that emulated the broker terminals along

with host of other information relevant to the day traders. This was for the first time that a net-

based trading station of this caliber was offered to the traders. In the last six months Speed Trade

has become a de facto standard for the Day Trading community over the net.

Sharekhan has always believed in investing in technology to build its business. The company has

used some of the best-known names in the IT industry like Sun Microsystems, Oracle, Microsoft,

Cambridge Technologies, NexGen, Vignette, VeriSign Financial Technologies India Ltd., Spider

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Software Pvt. Ltd. to build its trading engine and content. The Morakhia family holds a majority

stake in the company. HSBC, Intel & Carlyle are the other investors. With a legacy of more than

80 years in the stock markets, the SSKI group ventured into institutional broking and corporate

finance 18 years ago. Presently SSKI is one of the leading players in the institutional broking and

corporate finance activities. SSKI holds a sizeable portion of the market in each of these segments.

SSKI’s institutional broking arm accounts for 7% of the market for Foreign Institutional portfolio

investment and 5% of all Domestic Institutional portfolio investment in the country. It has 60

institutional clients spread over India, Far East, UK and US. Foreign Institutional Investors

generate about 65% of the organization’s revenue, with a daily turnover of over US$ 2 million.

The Corporate Finance section has a list of very prestigious clients and has many ‘firsts’ to its

credit, in terms of the size of deal, sector tapped etc. The group has placed over US$ 1 billion in

private equity deals. Some of the clients include BPL Cellular holding, Gujarat Pipavav, Essar,

Hutchison, Planet Asia and Shopper’ Stop. The portal of the share khan company is name “Trade

Tiger ” in which share khan provide all the online services to their investors for trade.

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NAME OF THE ORGANISATION SHARE KHAN LTD.

ADDRESS 201-202,2nd floor, 3 community centre ,

Vardhman Prachi plaza, sec-8,

rohini, Delhi-110058

WEBSITE http:/www.sharekhan.com

E- MAIL myaccounts@sharekhan.com

CONTACT NO 022-611511111,61150000

1800227050,1800227500(toll free)

AREA OF OPERATION INDIA and UAE

HEAD OFFICE 10th Floor, Beta Building ,Lodha 1 Think


TEcno Campus , off JVLR, Opposite

Kanjurnmarg East Railway Station,

Kanjurnmarg East, Mumbai – 400042

Table No. 1.1 Company Profile

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1.4.1 NATURE OF THE ORGANISATIION

Share Khan Company is a Retail broking company and it is registered in central security

depository limited (CSDL) and national services depository limited (NSDL). Share Khan

Company also registered throw security exchange board of India (SEBI) under brokerage

legislations. Share Khan Company provides online trading services to their clients through their

software “Trade Tiger”. Share Khan Company also gives a complete range of pre-trade , trade and

post trade services on Bombay stock exchange (BSE) and national stock exchange (NSE).The

Revenue model of the Share Khan Company is service charges. Share Khan Company provides

online trading And Exchange Facility to their clients and charges for services like Rs.0.25 paisa

for per transaction. Foreign institutional investors are generating approx. 65% of the share khan

company’s revenue, from daily turnover of over the US $ 2 million and the rates among the top

20 companies along with Reliance ,Huji , Infosys etc. Share Khan Company was the winner of the

“Best Financial Websites” Award and also “business today” in January 2007 edition share khan

company awarded top domestic brokerage house four times by euro money and Asia money. Share

khan Company has also used of the best well-known names their industry, like sun microsystem.

The settlement process of the share khan company when any investors do not sell and purchase of

shares after given the orders. The time for intraday trading is T+2 days this is the time in which

investors can complete their trad, if the investors do not complete their trade than provide then

T+5 days rules but in which share khan company charges some percentage for delaying in trade

for three days, if the investors not complete the transaction during five days than next sixth days

12 pm the transaction automatically completed by the BSE and NSE on the price of which going

on 12 pm which is also called marl to market settlement (MTM).

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Sharekhan company was launched online trading and investment site on Feb 8,2000. The name

of the site is “Trade Tiger ” and the site is provides access to qualitative transaction and content

facilities to retailer clients across the India. The site is investor understandable language, free from

Jargon , and high quality research, the registered clients on the site over 3 lacs. The number of

clients who currently doing trade on the site stands at over 7 lacs. The online trade is doing

currently accounts approx. 5 per cent of daily transaction trading in the stock market in India,

sharekhan company alone accounts approx.. 27 per cent the 5 per cent of daily trade volumes in

the online. Sharekhan Company provides different type of online products range for the investors

convenience for earning on the products like: Equity, Derivatives, future and option, Commodity

and Mutual funds etc. Sharekhan was established by Morakhia family in 1990-2000 and Morakhia

family, continues to remain the largest shareholder. It is the broking arm of the Mumbai based

SSKL (Shripal, Shewantilal, Kantilal, Iswarlal limited) Group. SSKL which is established in 1930

is the parent company of Sharekhan ltd. With a legacy of more than 80 years in the stock markets,

the SSKL group ventured into institutional broking and corporate finance over a decade ago.

Sharekhan ltd. is now having all the rights of SSKL. The company was awarded the 2005 Most

Preferred Stock Broking Brand by Awaaz consumer vote.

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1.5 COMPANY’S VISION & MISSION

1.5.1 VISION

a) Vision of share khan is to open more branches across India for expand their business.

b) To increase their brand position from 4th to 1st position throw providing better services to

the customers.

c) Share Khan wants to remove far from customers minds therefore they invest their money in

the stock market.

1.5.2 MISSION

a) To build working environment in the organisation for better utilising resources.

b) Provide better information and knowledge to the individual investor so that they can take

better investment decision and superior services.

c) To build ethical practices in the organization. e total equity solution for the entire investment

process

b) To achieve the standardization and globalization in the international market throw providing

better services.

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1.6 PRODUCTS AND SERVICES OF THE COMPANY

Product and services range includes various online and offline platform that help the clients

to move towards their respective goals and investment. Different type of products and

services offered by Sharekhan ltd are:

TYPES OF
DEMAT
ACCOUNT

ONLINE
ACCOUNT

CLASSIC SPEED TRADE


ACCOUNTS ACCOUNT

ONLINE TRADING ACCOUNT

Online exchanges facilitate faster transactions by providing online trading portals and

brokerage houses ease and flexibility. As promised by technology visionaries and forecast

groups over the last decade, the Internet has indeed opened up new avenues for conducting

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business. Stock exchanges worldwide now conduct a bulk of its business online through its

brokers and partners, a major shift from the traditional method. In developed countries, almost

all exchange transactions are conducted online. The trend has slowly picked up in India and

two of the largest exchanges, the National Stock Exchange (NSE) and the Bombay Stock

Exchange (BSE) have been conducting online trade successfully for some time now. Online

trading involves large volumes of data being transacted every day. Just as an example, at BSE

the average daily turnover in 2001-2002 (April-March) was Rs 1244.10 crores and the number

of average daily trades was Rs 5.17 lakh. Sharekhan provide two types of trading account:

1. CLASSIC ACCOUNT(For beginners and medium investor)

This account allows the client to trade through our website www.sharekhan.com &

<http://www.sharekhan.com/>and is suitable for the retail investor who is risk-averse and hence

prefers to invest in stocks. A/C Opening charges: Rs. 49. Demat A/C free for first year and

Rs.400 from 2nd onwards (Annual Maintenance Charges).

Features:-

Online trading account for investing in Equity and Derivatives via www.sharekhan.com

<http://www.sharekhan.com/>

2. Integrated On-line Trading, Demat Account and On-line IPO's.

3. Instant cash transfer facility against purchase & sale of shares.

4. No transaction charges.

5. Instant order and trade confirmation.

6. Streaming Quotes.(Cash & Derivatives)

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7. Personalized market watch.

8. Single screen interface for Cash and derivatives and more.

9. Provision to enter price trigger and view the same online in market watch.

10. Top Gainers, Top Losers, Most Active, updated live.

2. SPEED TRADE (For heavy investor)

SPEED TRADE is an internet-based software application that enables you to buy and

sell in an instant. It is ideal for active traders and jobbers who transact frequently during day's

session to capitalize on intra-day price movement.

A/C opening Fee: Rs. 1000/-

Features:-

1. Trade execution in a fraction of a second.

2. Live streaming quotes & price watch on any number of scrips.

3. Intraday charts, updated live, tick-by-tick.

4. Live margin, position, marked to market profit & loss report.

5. Set any number of price alerts on any number of scrips.

6. Flexibility to customize screen layout and setting.

7. Facility to customize any number of portfolios & watch lists.

8. Facility to cancel all pending orders at one click.

9. Facility to square off all transactions at one click.

10. Top Gainers, Top Losers, Most Active, updated live.

11. Index information; index chart, index stock information live.

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12. Market depth, i.e. Best 5 bids and offers, updated live for all scrips

13. Instant trade confirmation.

14. Online access to both accounts and DP.

15. Live updated Order and Trade Book.

16. Details of pending executed and rejected orders.

17. Online access to Customer Service.

The different type of products and services which are offered by SHAREKHAN Company.

Are as follows:-

equity &
derivatives
trading
depository
IPO services

MUTUAL online
FUNDS TRADE service

TIGER
SHARE commodities
SHOPS trading

PORTFOLIO DIAL-N-
MANAGEME TRADE
NT

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a) COMMODITIES TRADING

A commodity is those market where sell and purchase the products or materials which are

not end products. In the commodity market commodity divided into two parts: -

1.Soft commodity

2.Hard commodity

b) EQUITY AND DERIVATIVES TRADING

Share khan main revenue are generating from equity transactions atfter than derivative

trading. In equity market share khan provides information to their clients regarding the

stocks market situation so that investor can take better decisions.

c) DEPOSITORY SERVICES

A "Depository" is a facility for holding securities, which enables securities transactions to

be processed by book entry. In India, a depository is an organization, which holds the

beneficial owner's securities in electronic form, through a registered Depository

Participant(DP). Depository facilitates investor to hold securities in electronic form and to

trade in these securities.

d) ONLINE SERVICES

Online services mean those services which are provided by the internet. Share khan

company is providing the online services where clients can do trading online on share khan

portal which is Trade Tiger.

e) MUTUAL FUNDS

A mutual fund is an investment vehicle made up of a pool of funds collected from many

investors for the purpose of investing in securities such as stocks, bonds, money market

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instruments and similar assets. Mutual funds are operated by money managers, who invest

the fund's capital and attempt to produce capital gains and income for the fund's investors.

A mutual fund's portfolio is structured and maintained to match the investment objectives

stated in its prospectus.

f) IPO

IPO stand for initial public offering, IPO is the part of primary market in which the

company get publicly for equity shares.

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1.7 SIZE OF THE ORGANISATION

a) In terms of manpower

Being a service oriented firm, the size of the company in terms of manpower is large

because it has so many branches in every city. There are around 20 employees in the

company working in marketing, HR and finance department all over in the rohini branch.

Most of the employees are part time workers and interns doing their graduation and post-

graduation in various streams. This type of workforce is easily available and cheap. Most

of the work done through Online , so it can be easy for new comers also.

b) In terms of turnover

Main source of income of Sharekhan ltd is brokerage. It is a well-established firm in the

corporate world. Day by day it is growing and planning to expand in other countries also.

The overall sales volume is generated from national to international level. Sharekhan on a

standalone basis booked a net profit after tax of rs.102.5 crores on a total operating income

of Rs. 440.5 croresin FY 2014 as compared with a net profit of 181.2crores on a total

operating income of Rs. 627.2 crores in FY 2015.

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1.8 ORGANISATIONAL STRUCTURE

Sharekhan ltd. follows the line structure. It is the simplest organization structure. Following

this organizational structure most middle management levels and their functions have been

increased and they have follow hierarchy. It shows the hierarchy of employees working at

sharekhan at different levels i.e. top level, middle level and lower level. The top most position

is the position of Regional head (Mr. Amit pal Singh) every branch comes under regional.

Then branch head, assistant branch manager, sale manager, sales executives and last is trainee.

Despite the issue of the line structure the organization is benefited most of the advantages to

have so many branches and that’s why the opt customer preferences to invest and consult with

them . trainees have to report their concern team.(Tarun Shah), CEO and director of

Sharekhan, has announced his retirement, while Jaideep Arora, director of the retail-focused

brokerage, who has been with Sharekhan since it was founded in 2000, has been appointed

CEO .Cluster head of sharekhan branch in Rohini is(Hemendar Aggarwal). Sumit Gopal is the

assistant branch manager of sharekhan branch in Rohini. Raman goel is the sales manager of

sharekhan branch in Rohini. Rajeev and Vineet is the sales executive of the sharekhan branch

in Rohini. Trainee of sharekhan branch in Rohini are Yogesh and Vijay .They are appointed

as commission base.

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CEO

Regional Regional Regional

Head Head Head

Branch Head

Assistant Branch

Manager

Sales
Manager
Manager

Sales

Executive

Trainee 1 Trainee 2 Trainee 3

Figure No. 1.12 Organization structure of the share khan ltd.

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1.9 MARKET SHARE AND POSITION OF THE COMPANY

Through the market positioning it showing the positioning of the share khan company, for that

taking three companies HDFC, MOTILAL OSWAL and SHAREKHAN COMPANY etc. And

the brand positioning of the share khan company is 4th. As on year 2014 the total market

capitalization of share khan ltd. Has Rs.86.3 Cr, where it’s other competitors such as HDFC

security Rs.507.1 Cr and Motilal Oswal has Rs.13.4 cr. & Others has 393.2 cr.

COMPANY NAME MARKET CAPITALIZATION

(IN CRORE)

SHARE KHAN 86.3

MOTILAL OSWAL 13.4

HDFC 507.1

OTHERS 393.2

Table No. 1.2 Market Capitalization Comparison

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MARKET CAPITALIZATION (IN CRORE
600

507.1
500

393.2
400

300

200

86.3
100

13.4
0
SHAREKHAN MOTILAL OSWAL HDFC OTHERS

Figure No. 1.13 Market Capitalization Comparison.

COMPANY NAME MARKET CAPITALIZATION

(IN PERCENTAGE)

SHARE KHAN 8.63%

MOTILAL OSWAL 1.34%

HDFC 50.71%

OTHERS 39.32%

Table No. 1.2 Market Capitalization Comparison

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MARKET CAPITALIZATION (IN PERCENTAGE)
SHAREKHAN,
8.63%, 9% MOTILAL OSWAL,
1.34%, 1%

OTHERS, 39.32%, SHAREKHAN


39%
MOTILAL OSWAL
HDFC, 50.71%, 51%
HDFC
OTHERS

Figure No. 1.13 Market Capitalization Comparison.

1.10 PRESENT LEADERSHIP

At present leader is Mr. Amit Garg (Assistant manager). He trained the interns and all

students in summer training and increase knowledge about share khan:

NAME DESIGNATION

Dinesh Mukriya Owner of the Company

Tarun shah CEO of the Company

Shankar vailaya Director of the operations Departmentt

Jaideep Arora Director of Services

Nikhil Vora Vice President of Research

Pathik Gandotra Head of Research

Rishi Kholi Vice President of Equity Derivatives

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1.11 ORGANISATION CULTURE

Culture of the sharekhan company is very good and healthy which shows, that type of

environment in which employees doing their work effectively. if any change happens in the

sharekhan company before it takes the advice and suggestion of the employees and increase

the empowerment of the employees. The culture of the sharekhan company focus on the team

work and create a such environment in which employees work together because it is reduce

time, remove mistakes, and create good relation among the employees. For the better

organization culture sharekhan create a different type of polices and in which included

training, rewards and recognition. The Environment of the sharekhan company has

coordination between the Employers and Empolyees, In the meeting of sharekhan company

have board of directors, head of all the departments, members of shareholders, and head of the

Empolyees who presents the all employees perspective etc. throw the coordination of all and

considered all’s advice and suggestions take the better decision

Task/ Achievement Orientation

Sharekhan Limited. Works in a very professional way, they set their targets and work

accordingly to match their benchmark performance. During my internship period we observed

that they follow the rules and regulations set by the company and follows the particular chain

of command which makes things look more organised. The main job there was to attract more

and more customers to open Demat accounts and tell them about different schemes and areas

where they can invest their savings for getting better return. There everything is done by a

person who has a specialised knowledge about his job it actually reduces the wastage of time

and also eliminates the chance of occurring error which may create a very big problem for a

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company who actually help their investors to invest their savings in different shares of the

companies so, power centralization can only be done according to ability of the employee

otherwise it may create a big problem for the company.

People Orientation

As per Our observation, trust factor is there because each and every job there is inter-related

for that matter every employee has to trust each other. All the employees there are very keen

to learn new things and very adaptive to changes as they come to know different things every

single day related to the market and political issues.Delegation of authority there only at some

extant as work there is more complex than any other organization which makes it hard to

delegate authority to the subordinates because there is no room for errors especially when it

comes to a brokerage firm. For the better organization culture Sharekhan create a different

type of polices and in which included training, rewards and recognition.

Team Orientation

The culture of the Sharekhan company focus on the team work and create a such environment

in which employees work together because it is reduce time, remove mistakes, and create good

relation among the employees. Each and every employee working there is pretty much clear

about his/her roles which help them to work smoothly without any hassle. Sometimes

conflicting situations arises because all the employees are inter-dependent to each other, their

work is inter-related like for example for opening a Demat account documentation process has

to be done in first place without completing it, it cannot be considered as for entering into the

excel sheet (Improper documentation may create problem to the employees working on excel

sheet. So, this kind of problem creates conflicting situation between employees.

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Competition Orientation

Sharekhan Company is always ready for the changes and risk coming from external

environment because they keep on study the whole market situation and government policies

which are the major external factors which may cause potential damage to the company. And

they also keep on experimenting new ways to better serve their customers which make the

company more successful.They keep on adding new features to their software and more

information about the different products they are serving in Indian market on their website.For

healthy competition among the employees they pay incentives according to their targets which

ultimately motivates them to work with their full potential.

Openness Orientation

Culture of the Sharekhan Company is very good and healthy which shows, that type of

environment in which employees doing their work effectively. if any change happens in the

Sharekhan company before it takes the advice and suggestion of the employees and increase

the empowerment of the employees. The Environment of the Sharekhan company has

coordination between the Employers and Employees, In the meeting of Sharekhan company

have board of directors, head of all the departments, members of shareholders, and head of

the Employees who presents the all employees perspective etc. throw the coordination of all

and considered all’s advice and suggestions take the better decision

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CHAPTER-2

INTERNAL FACTORS AFFECTING SHAREKHAN

2.1 SWOT ANALYSIS OF COMPANY

A SWOT analysis means strengths, weakness, opportunity and Threats. It analysis internal

and external environment of the sharekhan company. For internal analysis, I used strength

and weakness. For external analysis, the intern has used opportunities threats.

2.1.1STRENGTHS

1. Marketing

In India stock Market, Sharekhan Company spent Their Experience Over the decades and

it is a SSKI’s Product, a veteran equities solution. Sharekhan Company claims their

expertise only in stocks, what it talks about rather than in several things. So instead on

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betting on single horse it provides a basket such as different stocks or a portfolio based

strategy.

2. Services

Sharekhan Company came into the market with low price product strategy and their

services, which includes online trading, international & Domestic Broking and

customized research Reports. Sharekhan Company with their innovative product gives

a competitive edge to their competitors with 80% efficiency level.

3. Distribution Network

Sharekhan Company plays an important advisory role through their fundamental and

technical research skill basis. Its new initiatives to provide value added services through

portfolio management and commodities trading.

4. Products

Sharekhan Company’s product line is quite flexible in the sense that there is a product for every

kind of investors. Also, all the products cover all the products offered by the other competitors

like low cost user-friendly online trading services etc.

2.1.2 WEAKNESS

1. Competition from banks

Now a day client’s perception is that banks are the only safe place for the concern of their

money, due to their brand image and faith of the customers in banking system.

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2. Branding

Investment in portfolio management or investing in shares, large part of investment group

still unware about the company. Here investors expected that they get the product timely

and procedures of sales should be more simplify, but still investors having doubt on their

cash balances whether brokers come with their expertise and knowledge.

3. Customer satisfaction

As far as customer satisfaction goes Sharekhan has to tighten their stock. Many broking houses

catering to heavy investors or small segments of the market can afford to and does provide

relationship mangers for their customers who can understand the trading needs of individual

customers and advise accordingly. However, a broking house like Sharekhan which caters to the

mass segment is in no position to provide relationship managers for individual customers.

4.Confidence from banks

Most of the banks due to good branding have the faith of the customers of the banking database

so they enjoy the liberty of huge data base and customer find it reliable to trade there rather than

with an unknown broker. Also like banks like HDFC Bank and ICICI Bank have the advantage

of linking the trading accounts of their customers to saving accounts .this makes trading easier

and the same time a trader withdraws exactly as much money from his account as is needed to

complete the trade. Similarly sales proceeds are credited directly to saving accounts .

29
2.2 BEST PRACTICES/ USP THAT THE COMPANY

2.2.1 Practices adopted in information technology

i. This software connected with internet for online trading account where client can

buy and sell share at the same time. Client can get access to its powerful online

trading tools that will help him take complete control over his investment in share

ii. Share khan providers has own software named “trade tiger”. This software is user

friendly software and various facility technical research, daily call up dates, funds

transfer etc. are provided.

2.2.2 Practices adopted in Marketing department

i. The main aim of marketing activities to provide customer to enough guidance to

get the best services than the other brokers.

ii. It designs the services for cover the specific target customer and positioning the

products in the mind of customers.

iii. The excellent marketing mix strategy 4ps product, price, place, promotion and 3ps:

People, process, physical are adopted to manage the customer needs and deliver the

maximum value to customer.

iv. The deep rooted network of distribution is yet another USP.

v. The marketing department designs the services for cover the specific target

customer and positioning the products in the mind of clients.

30
vi. The main goal of marketing activities to provide client satisfaction throw provide

better information and services than other competitors.

vii. The marketing department also used their network chain which is the largest

network chain than other competition for promoting share khan company.

2.2.3Practices adopted in human resources department

i. HRM of sharekhan focus on customer’s satisfaction related to their product and

services.

ii. Communicating intra-day trading calls and investment idea to customers.

iii. Training and development makes employee aware about all the needs and wants of

customers

iv. HRM department provided an additional Rs.10,000 for each outlet of share khan to

motivate its employees by performance appraisal.

v. Maintaining regular relation with clients.

vi. Punching in trades for clients.

2.2.4 Practices adopted in operation sector

i. Quality of products are high and consistent in delivering services to customers.

ii. Flexibility is related with has introduction new services and providers range to

select an option to the customer.

iii. It providers competitive advantages and vertical integration to the firm.

31
iv. It provides most important i.e., management function carried our national, regional

level.

2..2.5 Practices adopted in Finance Department

i. Share Khan Company Awarded top “ Domestic brokerage house” 4 times by euro

money and Asia money.

ii. Share Khan Company also Awarded by the “best financial website award”.

2.3 THE VARIATION/DEVIATIONS

Variation comes with increase or decrease in product or item in the project of sharekhan.

Sharekhan Company is client’s oriented and main goal share khan company to fulfil the all

needs and wants of the clients regarding investment. If the requirement of clients changes

then it creates variation in sharekhan products. Share khan Company has deviations in the

set targets segmentations and achievements as such.Deviation represents a more severe

amendment made to the contract which changes nature of the said work. It does not matter

that what are the parameters may change during the running projects but due to change in

requirements of the client or because of may technological changes and advancement in

the industry and changes in law, rules and regulations it brings deviation in sharekhan

company.

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2.4 EXTERNAL FACTORS EFFECTING SHARE KHAN COMPANY

1. Political factor

In political scenario for stock broker firms these kinds of factors influence these

companies at a major level. Ex. Modi govt. came in India they bring their own

agenda and plans which boost the Indian economy after the congress govt. now

India is a better place for doing businessand foreign investors investing in India

which increase the growth of Indian economy and it’s also better for Sharekhan co.

2. Economic growth

Higher economic growth or better prospects for growth will help firms be more

profitable because there will be more demand for goods and services. This will help

boost company dividends and therefore share prices.

Lower interest rates. Lower interest rates can make shares more attractive for two

reasons. Lower interest rates help boost economic growth making firms more

33
profitable. Also lower interest rates make shares relatively more attractive than

saving money in a bank or holding bonds. If bond yields fall, it may encourage

investors to switch into shares which give a relatively better dividend.

Stability. Stock markets dislike shocks that could threaten economic stability and

future growth. Therefore, they will tend to fall on news of terrorist attacks or spikes

in the price of oil. They will also dislike political instability which may make it

difficult to pursue strong economic policies.

On the basis of above factors that comes under economic parameter, these factors

can cause major problems to Sharekhan limited because investors want to invest

their money in that company only which is growing on a continual basis and if they

finds the company’s position stable in the market then more and more investors

want to invest their time and money.

3. Social factor

In sharekhan limited their are different employees from different cultural

background and of different age groups which can create problem for the company

to deal with them individually. So, company conduct different programs to sort out

these kinds of problem and it provide full health facilities to their employees to

make sure they are physically and mentally fit for the job. And also conduct

grievance handling problems.

4. Technological factors

Plays an important role for the firms like Sharekhan Limited because these firms

needs software that shows continuous market watch and the same time prices of

shares of different companies and at the same time which shows the company’s

34
performance chart to their investors. Software like this needs timely up gradation

according to the investors need and the technology used by competitors in the

market. Currently Sharekhan limited is using a software named as “Trade tiger”

which it claims is the best software in the market and they provide this software to

their customers free of cost which gives them a competitive advantage in the

market.

5. Environmental factors

Posses great problem for the company and it needs proper solution. Sharekhan

Limited. provide good working environment to their employees and also help the

society for making better environment externally.

6. Legal factors

Sharekhan Limited. completes its legal obligations responsively thats why it’s

running its business of trading from so many years successfully.

The brokerage applicable shall be as agreed upon from time to time. In case of any

modification in the brokerage rate, the client shall confirm the same as required by

Sharekhan. Sharekhan does not charge brokerage more than the maximum

brokerage permissible as per the rules and regulations and bye laws of the

Exchanges/SEBI.

35
2.5.1OPPORTUNITIES

1. Improving Technology

India is a developing country where technology changing day to day which is indicate that

the sharekhan company has a chance to keep improve their technology to make its advance

and updated from the other competitors.

2. Ever-Increasing Market

Now a day’s people get more educated and professional they are aware the stock market

and wants to learn it. They are interested in investing in stock market and earn more money.

Sharekhan company has the opportunity in to grab those investors. Sharekhan company

has been dynamics enough to move with the times and capture the opportunities that the

market gives from time to time.

3. Education level

In India the education literacy rate increase year to year means people get more educate

and professional with the understanding of the stock market is also increasing and a lot of

retail investors are sleeping in the markets which are being shown by increasing volumes,

transactions and indices. So it is the opportunity for the sharekhan company to attract those

customers.

36
2.5.2THREATS

1. New Competitors

In the stock broking industries have a lot of competitors like: ICICI, HDFC , Motilal oswal

and Kotak etc. These are creating a lot of competition for large players like share khan

company and they are creating lots of confusion in the minds of the clients about the services

provided by the brokers.

2. Technology based business

Stock market’s all transaction became online and electronically after the dematerialization.

Online trading is totally based on the technology which is quite complex. It’s become the

threats because unless until uneducated people cannot use it. It is working properly it is good

but internet is not that safe.

3. Stringent Economic measures by government and RBI

Stringent Economic policies by government and RBI is one of the threats for the Sharekhan

company. Sharekhan company has to follow and apply stringent policies in their

organisaton.

4. Entry of foreign finance firms in Indian Market

Entry of new competitors and foreign finance firms in India market is giving direct

competition to sharekhan company that’s why entry of foreign companies in Indian market

is also one of the threat’s for sharekhan.

37
CHAPTER – 3

DATA COLLECTION AND PRESENTATION

A. DATA COLLECTION

3.1. Sources of data collection

Data for the project is from both primary and secondary sources of data collection are as

follows:-

a) PRIMARY DATA:

This method includes the data collected from the personal interaction with authorized

members, clerks of the SHAREKHAN Ltd.

b) SECONDARY DATA:

The secondary data collection method includes:

i. The lecturers delivered by the superintendents of respective departments.

ii. The brochures and material provided by Share Khan Securities limited.

iii. The data collected from the magazines of the NSE, economic times, etc.

iv. Various books relating to the investments, capital markets and other related topics.

3.1.2. Collection of data in Key Functional areas

A. HUMAN RESOURCE MANAGEMENT

Recruitment, Selection and Introduction Process - Human resources management start

from the recruitment process where share khan company calls the application for hiring

38
human resources. In the process sharekhan company follow two ways first is internal and

another is external. After the deciding the source of recruitment company selected the

human resources on the different parameters like: Knowledge, communication skills and

mental thinking etc. After the selection of human resource the sharekhan company gives

the introduction and aware the human resource from the companies rule, regulation,

process and environments etc. human resource is the main important part of the sharekhan

company because without human a company cannot survive. The human resources is

helping the sharekhan company to achieve the company goals. Filling the vacancies y the

head office in the Mumbai through written exam and interview for all the branches

vacancies and the recruitment is also done by the branches itself and the selection is

performed by head office by the screened application.

The two methods are as follow of recruitment by sharekhan company. They are as follow:-

a) Internal – Sharekhan company follows the various different internal methods of

recruitment and these are:-

i) Employee’s references: Employee references means fill the vacancies through

the references.

ii) Internal job posting: If the sharekhan company have any vacancies than it first

of fill by the internal employees.

b) External – sharekhan company also focus on the externals various methods of the

recruitment. These are:-

i. Online portal: Sharekhan company also used the online portal for recruitment

of the employees like: Naukri, Times and Monster.

39
ii. Advertisement: Sharkhan company gives advertisement for recruitment in

newspaper like: Times of India.

iii. Campus recruitment: Sharekhan company also recruitment done from the

various management colleges like: JIMS, Bharti, Vidyapeeth.

c) Process of recruitment consist of 4 steps which are as follows.

Job Analysis

Sourcing

Screening

Lateral Thinking

Figure No.3.11 Recruitment Process

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Training

After they recruit new employees send to training & Development (T&D) Department of the

sharekhan company which is covered under human resource department (HRD). Specific Job

Training is provided in the head office and the person has to keep in touch with concerned

department at head office on internet because employees has to solve many conflicts arising

in the investor’s mind and have to update information regarding the rules, procedures and any

new facilities or policies to resolve the problems of the clients. Through the T&D program

makes employee aware related all the activities and job within the department where the

employees are to be recruiting.

Sharekhan company gives the various different types of training to their employees for

building their skills and aware their employees about all the different activities related to their

job and works. These are as follows :-

a) Soft skill training – Sharekhan company aware to their employees throw different

various soft skill training like :-

i. Better communication skills.

ii. Personality etiquettes.

iii. Motivational training.

b) Process training – Sharekhan company also given to their employees related to process

training like :-

i. Software awareness of the sharekhan company.

ii. Different type of trading process.

iii. Process of account (d-mat) open.

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Performance Appraisal and Recognition system.

Sharekhan company provided that kind of environment in the work place to their employees

where employees had helpful to each other through better coordination. Sharekhan company

used for their employees performance appraisal is 360 degree appraisal where the employee

evaluated by top management, subordinate and lower management etc. Sharekhan company

also provided an additional Rs.10000 for each share shops of sharekhan company for motivate

their employees.

B. Marketing

Sharekhan company’s main objectives have the better satisfying their clients for than any

brokerage company. For provided better services to their clients sharekhan company

segmented the market on the trading basis. Sharekhan company provided different type of the

product to their client convenience like: equity trading, Commodity trading, currency trading,

derivatives trading and mutual funds etc. Sharekhan company have the highest network of

broking outlets. It is having the largest retail distribution chain in India. Sharekhan is also

provided different financial and client services, not only a share-broking firm.

Marketing Mix

The marketing mix means using different types of tools for promoting the product and services.

In which also used the better communication of tools of marketing mix to attract more and

more clients. Sharekhan company also used marketing mix techniques for covering more

market in India. Sharekhan company also used marketing mix technique for covering more

market in India. This objective of satisfying the customer as to make him delighted with

affordable prices and convenient services. Sharekhan using fourth P’s, for the promotion of

42
the marketing mix. It is the best way to attract more clients in India. Sharekhan have achieved

that because it is having the maximum turnover than any other brokerage in India. Sharekhan

company provided different type of accounts like: the classic account, speed trade account plus

and speed trade account etc. which are one of the bests in the market. The marketing

management department of the sharekhan company is doing in the best way because they

increasing the market covering in India.

a) Product

Sharekhan Ltd is engaged in providing trading facility in equity cash, derivatives (NSE, BSE),

currency futures (NSE and MCX), Commodity Trading (MCX & NCDEX), portfolio management

services and distribution of third Party Products like mutual funds, IPOs & personal loans.

Key services by Sharekhan Ltd are:

1. Sharekhan Equity Trading: Sharekhan is registered member of NSE and BSE, you can

trade in Equity Cash and Equity Derivatives with Sharekhan using online or offline

(branch / sub brokers) network. ShareKhan equity research team is there for you to give

daily research report, weekly research report, latest market updates and news and intra-

day stock tips.

2. Sharekhan Commodity Trading: Sharekhan is registered member of MCX & NCDEX,

trade in commodity future with Sharekhan using online or offline (branch / sub brokers)

network. Sharekhan broking commodity research team is there for you to provide daily

commodity research report, weekly commodity research report, commodity news and

more.

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3. Sharekhan First Step Account: For beginner in stock market, this account will give you

step by step guide how to trade in stock market, guidance and easy to understand

research reports. With First Step account client will get features like Streaming quotes,

multiple watch-lists, integrated banking, demat and digital contracts, instant credit and

transfer, real-time portfolio tracking with price alerts and of course, the assurance of

secure transactions. This account is only for the new customers not for the existing

customers.

4. Sharekhan Classic Account: With this 100% online trading account from Sharekhan,

client will get live analysis before, during & after-market hours. From daily intra-day

calls to long-term stock recommendations, you will get timely advice with well-defined

profit targets. Top picks research basket will give you quick investment option from

research team.

5. Sharekhan Wealth Optimizer - Portfolio Management Service(PMS) : Under the

Sharekhan portfolio management services, the funds of the Client will be managed by

a team of experienced professionals. The Portfolio Manager's investment philosophy

underlines maximizing the risk adjusted returns depending on the client's risk tolerance.

In order to achieve the same, a disciplined investment approach with adequate risk

controls has been adopted. Investment in PMS service is done on basis of fundamental

research, technical research, arbitrage strategy [Buying the underlying stock and

Selling the futures, which bring the investments in relatively low risk assets], model

portfolio. The investments will be generally made in Equities and its derivatives,

money market instruments and in Mutual Funds. No particular sector forms more than

44
20% of the client’s portfolio. Sharekhan PMS provide Discretionary Services as well

as Non-Discretionary/Advisory Services -

a. Discretionary Services - Under these services, the choice and the timing of the

investment decision is with the Portfolio Manager.

b. Non-Discretionary/Advisory Services - Under these services, the client decides his

own investments. The Portfolio Manager is responsible for providing advice and

facilitating the execution of transactions. The Portfolio Manager's role is limited to

providing research, investment guidance and trade execution at the Client's request.

6. Sharekhan Mutual Fund Service: With Sharekhan you can invest in major mutual

funds. Sharekhan Mutual fund service helps you to diversify your portfolio. Sharekhan

Mutual Fund research service is available for you for free of cost.

7. Sharekhan IPO Investment: With Sharekhan you can invest in IPOs. Sharekhan IPO

investment service is paperless and available online. Sharekhan IPO Flash research

service is available for you to take better decision before applying IPO.

8. Sharekhan Depository Services: Sharekhan is registered as a Depository Participant

with CDSL. You can avail Demat service with Sharekhan to get fast and paper less

transaction.

b) Promotional policies

Sharekhan has adopted several promotional activities to increase its brand awareness. It is

one of the most visible and Recognized brands in the Indian market since its inception.

The company emphasizes on personal contact so that it can serve better by maintaining

direct contact. Sharekhan has adopted several campaigns for advertising and it is mainly

done through social media platforms like e-mails and web dealings. It has also taken help

45
of print media via newspapers to gain further penetration in the market. In order to increase

its brand visibility, it organizes presentations and seminars that give it maximum exposure.

Sharekhan has an apt tagline your guide to the financial jungle.

i. Advertising

Sharekhan company used advertising for capturing the target market, therefore sharekhan

company provide Rs. 2000 per month per branch. Sharekhan company also used different type

of sources for promoting their product through pamphlets, magazines, newspaper and banners

etc. for attracting the more clients.

ii. Direct Marketing

In Direct marketing sharekhan company executive reach to the door to door of the clients for

providing the information related to stock market and aware the clients from the sharekhan

brand. This technique is very popular in the market. First of all sharekhan company executive

fixed appointment with the clients and then meet the clients and give demo and all information

related to sharekhan company.

c) Pricing

Finance is an integral part of any business that has a direct impact on all its operations.

Sharekhan has an accounts department for calculating payout and pay-in of funds and is

dependent on profit/loss of client portfolio. The company has targeted investors from both

rural and urban sector as its potential customers. It offers maximum value to its clients so

as to keep them happy. Sharekhan faces stiff competition from several rival companies and

has adopted a competitive pricing policy to gain a competitive advantage over its

competitors. It has levied reasonable rates so as to increase its client base because

affordable rates will gain larger volumes and will ultimately lead to greater gains.

Brokerage on the delivery-based transaction is levied at .50% on both sides for selling and

46
purchasing and .10% single side on intra-day transactions. Brokerage charges for

commodities are .10% of its trade value and if carried forward then extra .02% on the total

trade.

Product Price Benefits

Classic account Rs. 750(1st time)+Rs. 1000 Demat free for 1year (other

facilities included)

Speed trade Rs. 1000(brokerage deposit Online trading on your PC

of 3000/quarter) with Demat free and other

facilities

Speed trade plus Rs. 1500(brokerage deposit Facilities as per speed trade

of 6000/half) with F&O trading

Streamer Rs. 2000/ quarter Facilities for viewing the

market online

Figure no. 3.12

47
d) Place

Sharekhan has its presence in India with its headquarters base at Mumbai in Maharashtra.

It has one of the strongest IT infrastructures that include a large network of branches spread

across several parts of India. Its Pan-India presence consists of 1,500 outlets in nearly 450

cities that serve estimated, 950,000 customers. Sharekhan has a capable, trained and

experienced workforce that enables the smooth running of its organization. It has extended

its presence to international markets in Oman and UAE also. Over the years, sharekhan

ltd. has expanded its operations domestically as well as internationally. The headquarter of

Sharekhan ltd. In Mumbai. Sharekhan continues to hold a strong position in the retail

broking space with a network of 200 own branches and 2000 franchisee servicing more

than 20 lakh retail clients as on December 31,2016.

C. Customer relationship (CRM) Policies

In the phase of globalization, the changing customer preferences and choices has lead to a

challenge of retaining potential customers for a long period of time, thus organizations

now a day go for a systematic CRM program. The strategies adopted by major consulting

firms like Sharekhan. were studied to understand current CRM System and Services

provided from the company and its effect on Customer Needs, Satisfaction Level, their

response and emotions. Also, the objective of this study to analyze existing customer

satisfaction as those customers are the key sources to new customers with respect to the

performance, sales efforts and sales service. As these companies are the most preferred

portfolio managers in share market by the investors in India in aspect of turnover, it is clear

that it has very strong Customer Relationship Management System and perfect people to

handle it properly for the benefit of customers and firm as well. Sharekhan provides

48
personal relationship manager to its customer. work of relationship manager in Sharekhan

Ltd. Is as follow-

i. To maintain the good relation from clients.

ii. To Punching in trades for clients.

iii. To Communicating intra-day trading calls and investment ideas to customers.

iv. To Conducting business development activities in branches.

v. To Monitoring day to day operations at branch.

vi. To Maintaining regular relations with clients therefore sharekhan company retain them

and brings to new clients.

Sharekhan company organized different types of seminars and presentation across the

country from time to time in order to educate investors in various subjects related to the

stock, derivatives and commodities markets. These exclusive seminars are organized by

Sharekhan for its online trading customers for free. These seminars will equip and customer

to take an investment decision. It is also doing for first step customers who have never

invested his share before.

D. BRAND MANAGEMENT

Brand management aims to create an emotional connection between products, companies

and their customers and constituents. Brand managers may try to control the brand image,

Brand managers create strategies to convert a suspect to prospects, prospect to buyer, buyer

to customer and customer to brand advocates.

49
E. FINANCE

Finance management in the sharekhan company is worked on managing the stocks or

securities in the d-mat accounts and funds in the margin & trading accounts. Like blood is

the most important factor in our body, Finance is the blood of any business. Finance is

needed for all the activities like production or services as well as their distribution. The

finance department directly influences all the functions of the other departments. Also

finance has to give equal important to administrative area or set of administrative function

in an organization may have the means to carry out its objective as satisfactorily as possible.

Sharekhan has special accounts department for separate calculation of pay-in and pat-out

of funds according to the client`s Profit/Loss. Finance management is done at Sharekhan

is done by managing the stocks in the Demat accounts and funds in the margin & trading

account

F. Operations

Operational process

i. The input used in the sharekhan company for the operation process like land and

building, equipment, technology, employees and materials etc. in different

branches of the sharekhan company.

ii. transformation process of the sharekhan company where transform the inputs. Here

sharekhan company generates the income after the services and products like

commission, brokerage charges and account maintain charges etc.

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iii. Output means the final product and services which are generating after the

transformation process. Output of the sharekhan company are different type of

services and final products like classic account, speed trade account and speed trade

plus account etc.

Inputs

a) As it is a service sector company the inputs are mainly the server, software through

which trading takes place. The software name “Trade Tiger” is used for trading.

Computer system, employees, technology etc are mainly the inputs.

b) Vendor Management System- In Sharekhan Ltd. vendor management system is

followed. Blue Dart Express, a courier service which is delivering the documents

related to login id and password which is known as “Welcome Kit” given to the

customers through which trading takes place.

INPUTS

1.Human OUTPUT
The
resource
Transformation 1. Services
2.Facilities & Process
Location

3.Technology

Figure no. 3.13 Production & Operation Process

51
G. Information Technology

Sharekhan company using online portal for information technology for providing all

information and details about the stock market on the websites software portal the name of

the portal of sharekhan company is trade tiger. Internet is vast technology which connected

from the large distance. Internet is worldwide, self-governed network connecting other

several smaller network and millions of computers and persons, to mega sources of

information. After the dematerialization by NSDL and CSDL all work done through the

online and electronically way. Sharekhan company use IT in that manner to provide all the

trading transaction at online software “trade tiger”.

The software named TRADE TIGER has the following features :

i. A single platform for multiple exchange BSE & NSE (cash and F & O), MCX,

NCDEX, currency, mutual fund, IPOs.

ii. Multiple market watch available on a single screen.

iii. Multiple charts with tick by tick intraday and end of day charting powered with various

studies.

iv. Graph studies include average, band bollinger, know sure things, MACD etc.

v. Apply studies such as vertical, horizontal, trend, retracement and free lines.

vi. User can save his own defined screen as well as graph template that is saving the

layout for future use.

vii. User defined alert settings on an input stock price trigger.

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B & C. DATA PRESENTATION AND ANALYSIS

3.2 NET PROFIT AFTER TAX

Net profit after tax of sharekhan company of 2015 and 2016

YEAR PROFIT AFTER TAX (Cr.)

2015 1006

2016 1823

Table No. 3.2 Net Profit After Tax

PROFIT AFTER TAX (IN CRORE)


100%
90%
80%
70%
60%
50% 1006 1823
40%
30%
20%
10%
0%
2015 2016

Figure No. 3.14 Net Profit Tax

Interpretation: Profit after Tax of 2016 is Rs 1823 that indicates the profits of the

sharekhan company increased by Rs 817 cr. during the year 2015 to 2016 .

53
3.3 LIQUIDITY RATIO

Liquidity ratios which shows the company’s Liquidity position means how fast a company

can convert its security into cash, for example : current ratio, Quick ratio, cash ratio etc.

3.7.1 CURRENT RATIO

Current ratio of the sharekhan company of the year 2015 to 2016

YEAR Current assets Current liabilities CURRENT RATIO

2015 9028 7871 1.14

2016 10869 7116 1.52

Table No. 3.3 Current Ratio

CURRENT RATIO
1.6 1.52

1.4
1.14
1.2
1
0.8
0.6
0.4
0.2
0
2015 2016

Figure No.3.14 Current ratio

Interpretation: Current ratio of 2016 is 1.52 it shows that current asset is over current

liabilities. 2016 Current Ratio indicates that a firm may have a high level of liquidity and

less chance of a cash squeeze & Current Ratio increased from 2015 to 2016. The Figure
54
no.3.15 which shows the current ratio of the 2015 to 2016 is 1.14 to 1.52 it increases from

2015 to 2016 which is showing that current assets increased and current liabilities

decreased this duration.

Current ratio = Total current assets divided by total current liabilities (total current

assets\total current liabilities).

3.3.2 QUICK RATIO

Quick ratio of the sharekhan company of year 2015 to 2016

YEAR Quick assets Current liabilities QUICK RATIO

2015 6388 7116 0.897

2016 8467 7871 1.075

Table no. 3.4 Quick ratio

QUICK RATIO
1.1 1.075

1.05
1
0.95
0.897
0.9
0.85
0.8
2015 2016

Figure No. 3.16 Quick ratio

55
Interpretation: 2016 Quick ratio is 1.075 it shows that quick asset is over than total current

liabilities. The Figure no.3.16 which shows the quick ratio of the 2015 to 2016 is 0.897 to

1.075. Quick ratio is increasing by 0.178 which is showing that incremental in the Quick

assets of the sharekhan company. The quick ratio of 1.075 of 2016 indicates that the

company can cover 100% of current liabilities by using its current assets and still they will

left with some current assets in their account.

Quick ratio = Quick Assets divided by (Quick Assets\total current liabilities).

3.3.3 CASH RATIO

Cash Ratio of the share khan company 2015 to 2016

YEAR CASH Current liabilities CASH RATIO

2015 5213 7116 0.73

2016 6303 7871 0.80

Table No.3.5 Cash Ratio

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CASH RATIO
0.82
0.8
0.8

0.78

0.76

0.74 0.73

0.72

0.7

0.68
2015 2016

Figure No.3.17 Cash Ratio

Interpretation: The 2016 cash ratio 0.8, which suggests that the firm can only cover 80%

of its current liabilities with its cash and short-term marketable securities. The figure

no.3.17 Shows the Cash Ratio of year 2015 to 2016 is 0.73 and 0.80. which is increase by

0.07 and shows increase in liquidity of sharekhan.

Cash ratio = Cash & Bank plus marketable security divided by total current liabilities (cash

& bank+ marketable Securities\ Current liabilities).

3.5 LEVERAGE RATIO

Leverage ratio which shows the levered position of the company and effects of it on the

capital structure of the company like: debt equity ratio and total debt ratio.

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3.5.1 DEBT EQUITY RATIO

Debt equity ratio of the share khan company from 2015 to 2016

YEAR DEBT SHAREHOLDER FUND DEBT EQUITY RATIO

2015 3393 7845 0.433

2016 3393 9623 0.353

Table no.3.9 Debt Equity Ratio

DEBT EQUITY RATIO


0.5
0.433
0.4 0.353

0.3

0.2

0.1

0
2015 2016

Figure No.3.21 Debt Equity Ratio

Interpretation: A 2016 ratio of 0.353 indicates that the firm able to settle their all debt &

still left with shareholder fund for future events. The figure no.3.21 which shows the debt

equity ratio of sharekhan company year 2015 is 0.433 and year 2016 is 0.353 and it is

decreasing debt by 0.08. This means that shareholder fund of the sharekhan company

increased from 2015 to 2016.

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Debt Equity Ratio = Total long term debts divided by shareholder fund (Total long term

debts/ shareholder fund).

3.5.2 TOTAL ASSETS TO DEBT RATIO

Total debt ratio of the sharekhan company from 2015 to 2016

YEAR TOTAL ASSETS LONG TERM DEBT DEBT EQUITY RATIO

2015 19115 3393 5.63

2016 20134 3393 5.94

Table No.3.10 Total Debt Ratio

TOTAL DEBT RATIO


6
5.94
5.95
5.9
5.85
5.8
5.75
5.7
5.65 5.63
5.6
5.55
5.5
5.45
2015 2016

Figure No.3.22 Total Debt Ratio

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Interpretation: Total Debt Ratio of 2016 is 5.94 that means Sharekhan have ability to pay

off its liabilities with its assets. The figure No. 3.22 which shows the total debt ratio from

year 2015 is 5.63 and year 2016 is 5.94 and it is increased total assets by 0.31.

Total Debt Ratio = total debt is divide by the total assets (total debt/total assets).

3.5.3 PROPERIETARY RATIO

YEAR SHAREHOLDER FUND TOTAL ASSETS PROPERIETARY RATIO

2015 7845 19115 0.478

2016 9623 20134 0.411

Table No.3.11 PROPERIETARY RATIO

Interpretation

The proprietary ratio establishes the relationship between shareholders funds to total assets.

It determines the long-term solvency of the firm. This ratio indicates the extent to which

the assets of the company can be lost without affecting the interest of the company. There

is no increase in the capital from the year2015. The share holder’s funds include capital

and reserves and surplus. The reserves and surplus is increased due to the increase in

balance in profit and loss account, which is caused by the increase of income from services.

Total assets, includes fixed and current assets. The fixed assets are reduced because of the

depreciation and there are no major increments in fixed assets

3.6.2 NET PROFIT RATIO

Net profit ratio of the sharekhan company from 2015 to 2016

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YEAR NET PROFIT AFTER TAX TOTAL REVENUE NET PROFIT RATIO

2015 1006 4597 21.88

2016 1823 6532 27.90

Table No.3.12 Net profit ratio

NET PROFIT RATIO


30.00% 27.90%

25.00%
21.88%

20.00%

15.00%

10.00%

5.00%

0.00%
2015 2016

Figure No.3.24 Net profit ratio

Interpretation: Net Profit Ratio of 2016 is 27.90% that suggests that for every 1 of revenue

generated by the sharekhan, 0.2790 is created for the shareholders. The figure no.3.24

which shows the net profit of the sharekhan company from year 2015 is 21.88% and year

2016 is 6.02%. This means that the revenue of sharekhan company increased and other

expenses decreased by decreasing ratio.

Net profit ratio = Net profit after tax is divided by the net revenue and multiply by hundred.

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CHAPTER – 4

SUMMARY AND CONCLUSION

4.1 FINDINGS

I find out some different type of facts related to the sharekhan company and stock exchange

market, At the time of internship in sharekhan company which are as follow: -

4.1.1 Marketing at sharekhan company is considered to be the backbone which uses

different channel of marketing with the aim of adding value to the organization

4.1.2 Sharekhan company brand is the top 4th brand position in brokerage retail

companies in India.

4.1.3 In HR practice, all need of employees are fulfill by the company like compensation,

good working condition etc from which employees are satisfied by the HR policies.

4.1.4 Different programmes like reward and recognition are done to motivate as well as

to retain employees by giving bonus.

4.1.5 IT at Sharekhan company who got the online trading of the stock market product

(equity, derivatives, commodity and currency) is the first brokerage company in

India.

4.1.6 Sharekhan company is providing the software for online trading which is “trade

tiger” and all the transactions are doing on this software for dealing in stock market.

4.1.7 Finance practice in sharekhan company is the charges for services for sharekhan

company are 0.25 paisa per transaction. It is the lower brokerage charges than other

brokerage firm.

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4.1.8 Strength of sharekhan company is Wide range of innovative financial

products, Intensive research on all industry sectors, Strong I.T infrastructure, Have

one of the largest network of branches across country, Pan-India presence with over

1,500 outlets serving 950,000 customers across 450 cities.

4.1.9 Weakness of sharekhan company is Penetration limited to urban areas.

4.1.10 Opportunities of sharekhan company is. Growing rural market, Earning Urban

Youth, educating people about the benefits of investments to increase target

audience.

4.1.11 Threats of sharekhan company is Stringent Economic measures by Government and

RBI, Entry of foreign finance firms in Indian Market.

4.1.12 Competitors of sharekhan company is Reliance Capital, India bulls, Angel Broking

etc.

4.1.13 Sharekhan company have 1800 share shop in 550 cities in across India for providing

the better services and satisfying their clients which are more than 11,00,000.

4.1.14 Sharekhan company is providing a mutual fund facility to the customers where they

can invest their money and earn profit. Sharekhan company is providing the two

ways of investing in mutual funds first one SIP and another one is lump sum.

4.1.15 In India people are not well educated and aware of the stock market, therefore they

fear to invest their money in stock market because they think that returns of stock

market are not secured.

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4.2 LESSON LEARNT

After completion, the internship in sharekhan I have learnt and aware from stock market

and its fundamental and terminologies. Before going to the internship in sharekhan

company I have not enough knowledge about share market but after completion of the

internship in sharekhan company I got the enough knowledge about the sharekhan policy,

brokerage charges, strategy, promotion, advertising and different products.

4.2.1 Corporate world is a place of discipline and everybody working there maintains a

cordial relationship.

4.2.2 Authority and Responsibility is well disseminated and no one cross there, stipulated

limits.

4.2.3 Every employee is trying to achieve his/her target so that the company can achieve

its overall target very easily.

4.2.4 The leaders of the organization are dedicated and the team members are motivated

by the leaders.

4.2.5 For poor performance punishment is obvious but with proper mentorship.

4.2.6 Personally, I have learnt how to deal the share-market in a proper manner with

minimal loss.

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4.3 SUGGESTIONS

After interpretation and analysis, I am giving certain suggestions to the company which I

hope may be helpful for the company.

1. MORE BRANCHES

Need to open more branches to be a topper in market Because it has alow distribution

network.

2. LESS TIME

They should try to make some arrangements to reduce account openingtime by verifying

documents at branch it selves.

3. LINK-BANK A/Cs

Linked as many accounts as client wants to its online account.

4. NEW BANKS IN THE KITTY

Need to tie up with major banks like SBI, Allahabad Bank, Bank of Baroda etc.5.

5. CUSTOMER SATISFACTION

The company should focus on the customer satisfaction not on just taking moneyfrom

their pocket.

6. CONTROLLED BRANCHES

The company would have to make some arrangements to control the branches andmake

standardized procedures for all of them for their better control and performance appraisal.

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4.4 CONCLUSION

The strategy adopted by me in completion of this project help me a lot till now in making

comparison between share market and mutual funds. From the analysis, we can say that if

there is more risk there is more return and we can say that share market is totally dependent

on the risk taken by the investors in investing in shares. And in mutual funds there is less

risk as the money of investors invested in different sectors so it can divide the risk in

different portfolio adopted by mutual funds companies. At last I can say that money

invested in this rise and fall market it is better to invest in mutual funds for those investors

who are risk adverse and for those who are risk taker it is better for them to invest in share

market. We can also say that in share market customers is decision maker while in mutual

funds investors is totally dependent on assets management company, investors do not have

active control on money invested by him/her. In OJT, the strategy adopted by me in

achieving my target helped me a lot. This strategy helped me in knowing the customer

reaction towards share market, customer’s attitude towards share broking firms and in this

I helped how to interact with the customers which is beneficial for me in future.

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REFERENCES\BIBLIOGRAPHY

Text books: -

2) Rustagi, R.P. (2008). Financial Management: Basic Financial Management. Daryaganj

, Delhi: Sultan Chand & Sons.

3) Chhabra, T.N. (2005). Human Resource Management: Concept and Issues. Model

Town, Delhi : Gagan Kapur For Dhanpati Rai & Co. (P) Ltd..

4) Kotler, Philip. (2003). Marketing Management. Patparganj, Delhi: Pearson Education

(Singapore) Pte.Ltd..

Website :-

1) http://www.sharekhan.com/home.aspx

2) http://www.moneycontrol.com

3) http://en.m.wikipedia.org/wiki/sharekhan

4) http://www.mca.gov.in/mcafoportal/log

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