SUMMER INTERNSHIP

PROJECT REPORT
ON

COMPARATIVE ANALYSIS OF
DIFFERENT ON-LINE
BROKING HOUSE

Submitted To :- Prof. Bhumika Juneja

Submitted By:- ABHISHEK SHUKLA
3rd sem (MARKETING)

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2
 Declaration

This is to certify that summer training Report entitled WHY KOTAK(COMPARATIVE

ANALYSIS IN INDORE) which is submitted by me in partial fulfillment of the requirement
for the award of degree PGP DUAL, at Indore Indira School Of Career studies ,Indore comprises
my original work and due acknowledgement has been made in the text to all other material used.

Date:- February 3, 2011

NAME:- ABHISHEK SHUKLA
SING:-

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 BONAFIDE CERTIFICATE FROM COMPANY

This is to certify that this project report “COMPARATIVE ANALYSIS

OF DIFFERENT ON-LINE BROAKING HOUSE” is the bonafide work
of “ABHISHEK SHUKLA” who carried out the project work under my
supervision from feb 2,2010 TO march 31,2010.

SAURABH PORWAL
BRANCH MANAGER

TRAINNING HEAD
DEPRTMENT

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 BONAFIED CERTIFICATE FROM INSTITUTION

This is to certify that this project report “COMPARATIVE ANALYSIS

OF DIFFERENT ON-LINE BROAKING HOUSE ”is the bonafied work
of “ABHISHEK SHUKLA” who carried out the project work under my
supervision from Feb. 2,2010 TO March 31,2010.

ANANT GWAL
Academics’ director

BHUMIKA JUNEJA
Training and placement head
INDORE INDIRA SCHOOL OF CAREER STUDIES

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 Acknowledgement

I wish to thank the following individuals for help with various aspects of this project. Would
Like to acknowledge and extend my heartfelt gratitude to the following persons who have made
the completion of this PROJECT REPORT possible:

Our project mentor, SAURABH PORWAL who provided us opportunity to complete our
internship in KOTAK SECURITIES and heartily gratitude for his vital encouragement and
support given under his guidance.

I would like to thanks Mr. Anirudh Gautam and Mr. Roopesh Toopiwala for assisting in the
collecting information and data gathering for the projects reports.

I would also like to thanks Aashish, Ritesh sir and Naresh sir for understanding and assistance
provided by them during our training session.

Last but not least our college IISCS who made all things possible. Our TPO BHUMIKA MAM
to provide us golden opportunity to have a work experience in KOTAK SECURITIES.
Most especially to my family and friends who made all things possible.

Date: - February 3, 2011

Place: - Indore

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 TABLE OF CONTENT
• Cover page
• Declaration
• Bonafide certificate from Company
• Bonafide certificate from Institution
• Acknowledgement
• Abstract
• Introduction of kotak group
• Introduction of kotak securities
• Accolades
• Our offering
• Organizational structure
• SWOT Analysis
• Marketing mix (4 p’)
• Competitor’s Analysis
• Introduction of the concern department
Hierarchy
Description of various duty/responsibility
Description of working
• Scope and Objective
• Requirement of online trading
• Competitive Analysis

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• Competitor Strategy
• If’s and Buts’ of online trading
• Recommendations
• Conclusion
• Bibliography

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 ABSTRACT

The Summer Training is an important component of our training. It is an

Attempt to bridge the gap between the academic institution and the corporate
world.

During Training, this would be a simulation of real work environment,

Requires you to undergo the rigor of professional environment, both in form
And in substance.

In the process, it provides an opportunity for us to satisfy our inquisitiveness about

corporate, provides exposure to technical skills,
and helps us to acquire social skills by being in constant interaction with the
Professionals of other organizations.

During tanning, we are required to undertake assignment\jobs along with the day-
to-day function of the company, both at the assistance and execution level. This
will help to gain a deeper understanding of the work, culture, deadlines, and
pressure etc. of an origination.

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 INTRODUCTION OF
KOTAK

Kotak Mahindra Group

Kotak Mahindra is one of India's leading financial organizations, offering a wide range of
financial services that encompass every sphere of life. From commercial banking, to stock
broking, to mutual funds, to life insurance, to investment banking, the group caters to the diverse
financial needs of individuals and corporates. This company was promoted by Uday Kotak,
Sidney A. Pinto and Kotak & Company.

The group has a net worth of over Rs. 7,500 crore and has a distribution network of branches,
franchisees, representative offices and satellite offices across cities and towns in India and
offices in New York, London, San Francisco, Dubai, Mauritius and Singapore. The Group
services around 6.7 million customer accounts.

Key group companies and their businesses

Kotak Mahindra Bank Industrialists Harish Mahindra and Anand Mahindra took a stake in year
1986 and that’s why the company changed its name to Kotak Mahindra Finance Limited.
The Kotak Mahindra Group's flagship company, Kotak Mahindra Finance Ltd which was
established in 1985, was converted into a bank- Kotak Mahindra Bank Ltd in March 2003
becoming the first Indian company to convert into a Bank. Its banking operations offer a central
platform for customer relationships across the group's various businesses. The bank has presence
in Commercial Vehicles, Retail Finance, Corporate Banking, Treasury and Housing Finance.

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Kotak Mahindra Capital Company (KMCC) is India's premier Investment Bank. KMCC's core
business areas include Equity Issuances, Mergers & Acquisitions, Structured Finance and
Advisory Services.

Kotak Securities Ltd. is one of India's largest brokerage and securities distribution houses. Over
the years, Kotak Securities has been one of the leading investment broking houses catering to the
needs of both institutional and non-institutional investor categories with presence all over the
country through franchisees and coordinators. Kotak Securities Ltd. offers online and offline
services based on well-researched expertise and financial products to non-institutional investors.

Kotak Mahindra Prime Limited (KMP) (formerly known as Kotak Mahindra Primus Limited)
has been formed with the objective of financing the retail and wholesale trade of passenger and
multi utility vehicles in India. KMP offers customers retail finance for both new as well as used
cars and wholesale finance to dealers in the automobile trade. KMP continues to be among the
leading car finance companies in India.

Kotak Mahindra Asset Management Company (KMAMC), a subsidiary of Kotak Mahindra

Bank, is the asset manager for Kotak Mahindra Mutual Fund (KMMF). KMMF manages funds
in excess of Rs 30,000 crore and offers schemes catering to investors with varying risk-return
profiles. It was the first fund house in the country to launch a dedicated gilt scheme investing
only in government securities.

Kotak Mahindra Life Insurance Limited is a joint venture between Kotak Mahindra Bank Ltd.
and Old Mutual plc. Kotak Life Insurance helps customers to take important financial decisions
at every stage in life by offering them a wide range of innovative life insurance products, to
make them financially independent.

Kotak's International Business With a presence outside India since 1994, the international
subsidiaries of Kotak Mahindra Bank Ltd. operating through offices in London, New York,
Dubai, San Francisco, Singapore and Mauritius specialize in providing asset management
services to specialist overseas investors seeking to invest into India. The offerings are
differentiated India investment solutions that span all major asset classes including listed equity,
private equity and real estate. The subsidiaries also lead manage and underwrite international

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issuances of securities. With its commendable track record, large presence on the ground and a
team of dedicated staff in India, Kotak’s international arm is suitably positioned for managing
assets in the Indian Capital markets.

Board of Directors &

Dr. Shankar Acharya, Non-Executive Part-time Chairman

Mr. Uday Kotak, Executive Vice-Chairman and Managing Director
Mr. Anand Mahindra
Mr. Cyril Shroff
Mr. Shivaji Dam
Mr. C. Jayaram, Executive Director
Mr. Dipak Gupta, Executive Director
Mr. Asim Ghosh
Dr. Sudipto Mundle

GROUP MANAGEMENT

Mr. Uday Kotak Executive Vice Chairman & Managing Director

Mr. C. Jayaram
Mr. Dipak Gupta

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The journey so far

Kotak securities ltd.

Kotak Securities Limited, a subsidiary of Kotak Mahindra Bank, is the stock broking and
distribution arm of the Kotak Mahindra Group. The company was set up in 1994. Kotak
Securities is a corporate member of both The Bombay Stock Exchange and The National Stock
Exchange of India Limited. Its operations include stock broking and distribution of various
financial products - including private and secondary placement of debt and equity and mutual
funds. Currently, Kotak Securities is one of the largest broking houses in India with wide

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geographical reach. The company has four main areas of business: (1) Institutional Equities, (2)
Retail (equities and other financial products), (3) Portfolio Management and (4) Depository
Services.

Institutional Business
This division primarily covers secondary market broking. It caters to the needs of foreign and
Indian institutional investors in Indian equities (both local shares and GDRs). The division
also incorporates a comprehensive research cell with sectoral analysts who cover all the
major areas of the Indian economy.

Client Money Management

This division provides professional portfolio management services to high net-worth
individuals and corporate. Its expertise in research and stock broking gives the company the
right perspective from which to provide its clients with investment advisory services.

Retail distribution of financial products

Kotak Securities has a comprehensive retail distribution network, comprising 870 offices
(own and franchisees) across 309 cities and towns, servicing 590,000 customers. This
network is used for the distribution and placement of a range of financial products that
includes company fixed deposits, mutual funds, Initial Public Offerings, secondary debt and
equity and small savings schemes.

Depository Services
Kotak Securities is a depository participant with the National Securities Depository Limited
and Central Depository Services (India) Limited for trading and settlement of dematerialised
shares. Since it is also in the broking business, investors who use its depository services get a
dual benefit. They are able to use its brokerage services to execute transactions and its
depository services to settle these.

Kotak Securities' width, volume and quality of offerings regularly earn it accolades from
industry monitors.

Kotak Institutional Equities

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Kotak Institutional Equities, among the top institutional brokers in India. It mainly covers
secondary market broking and the marketing of equity offerings, including IPOs, to domestic and
foreign institutional investors. Its full-fledged research division comprises 26 analysts engaged in
macro-economic studies, industry-and company-specific equity research.

Kotak Institutional Equities has full financial service capability, which includes derivatives,
facilitating market access through affiliates and the distinctive offering of corporate access to
investors. The division services over 250 clients including FIIs, domestic institutions and mutual
funds. The division has sales desks in Mumbai, London and New York, with the India desk also
servicing clients in Hong Kong, Singapore, Japan and Australia.

In Kotak Securities, We see investing from your perspective, and make recommendations based
on your needs. One of our important goals is to simplify investing for you; along with this we
also provide long term values to our customers.

We have a million reasons for you to choose us some are:

• Stability:
• Innovators in the Industry:
• Reliability:
• Value:
• Service:

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 • Robust Technology:
• Centralized Risk Management System:
• Exceptional Research:
• Large Presence:

We are also a depository participant with National Securities Depository Limited (NSDL) and
Central Depository Services Limited (CDSL), providing dual benefit services wherein the
investors can avail our brokerage services for executing the transactions and the depository
services for settling them. We process more than 400000 trades a day which is much higher even
than some of the renowned international brokers.

We are present in 331 cities with 843 offices all over the country. Our employee strength extends
beyond 2750.

Kotak Securities Limited has Rs. 2599 crore of Assets under Management (AUM) as of 30th
June, 2009. The portfolio Management Service provides top class service, catering to the high
end of the market. Portfolio Management from Kotak Securities comes as an answer to those
who would like to grow exponentially on the crest of the stock market, with the backing of an
expert

Our Accolades include:

• UTI MF – CNBC TV18 Financial Advisor Awards - Best Performing Equity Broker
(National) for the year 2009
• Finance Asia Award (2009)-Best Brokerage Firm In India
• Best Brokerage Firm in India by Asia money in 2008, 2007 & 2006
• Best Performing Equity Broker in India – CNBC Financial Advisor Awards 2008

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 • Avaya Customer Responsiveness Awards (2007 & 2006) in Financial Services Sector
• The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007
• Euro money Award (2007 & 2006) - Best Provider of Portfolio Management: Equities
• Euro money Award (2005)-Best Equities House In India
• Finance Asia Award (2005)-Best Broker In India
• Finance Asia Award (2004)- India's best Equity House
• Prime Ranking Award (2003-04)- Largest Distributor of IPO's

We have been the first in providing many products and services which have now become
industry standards. Some of them are:

• Facility of Margin Finance to the customers

• Investing in IPOs and Mutual Funds on the phone
• SMS alerts before execution of depository transactions
• Mobile application to track portfolios
• Auto Invest - A systematic investing plan in Equities and Mutual funds
• Provision of margin against securities automatically against shares in your Demat
account

OUR OFFERING:
Once you invest with Kotak Securities, you can enjoy access to a wide range of products and
services to help you make the most of your investments.

Easy Equity & Derivatives

Investing in equity & derivatives was never so easy. As the Best broker in India* our products
and services are focused at making investments in equity & derivatives.

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Research : "What do I Buy?" Isn't this a common question we all have while investing in equity
& derivatives?
SMS Alerts : You can get expert tips and recommendations as SMS on your mobile phone so
that you know what to invest in at all times..
Competitive Brokerages: We bring you brokerage rates which are among the most competitive
in the industry. Our low brokerage rates let you concentrate on investing your savings without
worrying about the cost of investment.
Call and Trade: You can capitalize on market opportunities even when your computer is
inaccessible. Call & Trade essentially provides you the convenience of trading in equity &
derivatives by making a simple phone call. Know more
M-Trade: It is exclusively designed to give you instant access to the stock market through your
mobile phone, thereby allowing you to catch every little market movement when you are on the
move.

Easy Derivatives Trading

If you are not averse of taking risks, Derivatives - A financial contract between two or more
parties and it is derived from the future value of an underlying asset. can prove to be a good
investment option especially with our research.

Easy IPO
Investing in IPOs – IPO is an abbreviation for an initial public offering.
An IPO (also known as floatation) is the process by which a company goes public i.e. offers its
shares to the public for sale for the first time. is not complex anymore, Kotak Securities has
made investing in IPOs very simple.
We also provide with you with information on IPO News , Forthcoming IPOs and a lots more.

Easy Portfolio Management

Investing in equities requires time, knowledge and constant monitoring of the market. For those
who need an expert to help to manage their investments, portfolio management services
(PMS)comes as an answer.

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Given the unpredictable nature of the market it requires solid experience and strong research to
make the right decision. In the end to make the right move in the right direction at the right time.
That’s where the expert comes in.

About Kotak Securities Portfolio Management.

Kotak Securities is one of India’s oldest portfolio management companies with over a decade of
experience. It is also one of the largest, with Assets Under Management of over Rs. 3300 Crores.
At the very base of a financially sound portfolio lies the identification of one’s investment
objective. We help you identify your investment objectives and also outline important
requirements like liquidity, capital appreciation, current income, time span and fiscal
implications and then suggest an appropriate scheme.

Benefit
• An Investment Relationship Manager will ensure that you receive all the services related
to your investment needs
• A dedicated website and a customer services desk allows you to keep a tab on your
portfolio’s performance is tailored after a thorough research backed by the expertise from
Research team
• An experienced team of portfolio managers ensure your portfolio is tracked, monitored
and optimized at all times
• The personalized services also translates into zero paper work and all your financial
statements will be e-mailed

ORGANIZATIONAL STRUCTURE

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 CEO&CMD

ZONAL
MANAGER

BRANCH
MANAGER

RELATIONSHIP
MANAGER AND
DEALERS

SALES
EXECUTIVE

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 SWOT Analysis
STRENGTH:

• Kotak Securities Research Centre- the special research cell where some of India's
finest financial analysts bring you intensive research reports on how the stock market is
faring, when is the right time to invest, when to execute your order and more..
• Trade in D.P.: Unlike other securities in kotak all trade activities of trade are done in
there own D.P. .No transactions are done in pool a/c.
• Transparency is guaranteed or assured, there are no hidden charges in kotak securities.
• 0 balance bank account – while on opening a Dmat a/c you get facility to open an bank
a/c in kotak Mahindra bank which can be maintained on ‘0’ zero balance, along with you
get ATM card and credit card + other facility by depositing initial amount 0f rs. 5000/-
which can be withdrawn later.
• You can open your trading, Demat and Bank account with a single entity. This reduces
your need for maintaining separate accounts with different entities.
• Easy loan & Early payments: If there are share present in your D.P., you can get loan
against that share and equities from kotak Mahindra bank, with in an day or two.
According to SEBI, all shares and securities are transferred to and from D.P. in T+2
days, but in kotak you can get that payment with in a day with help of kotak bank.
• Pay-in & pay-out:- There are only pay-out charges prevailed in kotak, no pay-in
charges are entrained like other securities.
• You do not have to transfer margin money to and from your accounts. Your margin
money is automatically reflected in your accounts.
• Transactions are seamless and you do not lose time in unnecessary transactions.
• Provides off-line and on-line account.
• Through its web portal company provides a single platform for investments in equities,
Mutual Funds and currency derivatives. Available margin can be used for any of the three
segments.

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 • Saxo's global trading platform provided by the company allows direct access to equities,
ETF's and REITS spanning 24 stock exchanges across the USA, Europe, Asia and
Australia.
• Kotak also provides a Call & Trade facility to its customers wherein they can place and
track their orders through phone when they are away from home.
• Kotak Securities provide daily SMS alerts, market pointers, periodical research reports,
stock recommendations etc.
• Kotak provides exclusive online tool to monitor what is happening in the market and also
investor can view gains/losses in real-time.
• Customer support chat helps customers to resolve issues faster.

WEAKNESS:
• Lack of awareness among the people is the biggest limitation found in this sector. Most
of the people is not aware about the, importance and the necessity of the investment in
their life. They are not aware how useful investment can be for their family member in
time of crises.

• Increased competition – Today the competition in the stock market sector has became
very stiff. Currently there are more than 14 stock broking companies working in India.
Today each and every company is trying to increase their relationship manager and sales
executive so that they can increase their reach in the market. This situation has created a
scenario in which to sell became very difficult.

OPPORTUNITY:

• Increasing interest – people are getting attracted towards the share market due to its
high returns more than any other form of investment like in bank, mutual fund, insurance
plans etc.

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THREAT

• Threat of stability of the system: failure of some weak research has often threatened the
stability of the system.

• ¦ Rise in inflation figures which would lead to decrease in interest of person in particular
segment.

• ¦ Increase in the number of foreign players would pose a threat to the private players.

• Perception of the people towards share market sector – People do not get benefit of
Tax saving just as a insurance sector. So today also there is always a rush to buy an
Insurance Policy only at the end of the financial year like January, February and March
where as people avoid to open an DP a/c in this months,

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 Marketing mix :

Various product and services:

AutoInvest

Presenting AutoInvest - an Online Trading Account based on Systematic Investment Planning, in

Gold ETFs Gold ETFs are open-ended mutual fund schemes that will invest the money collected
from investors in standard gold bullion.
These are passively managed funds and are designed to provide returns that would closely track
the returns from physical gold in the spot market (Exchange Traded Funds), Equities and Mutual
Funds. Assistance in investments, coupled with Systematic Investing, truly makes this product a
very good option for investors.

AutoInvest provides a combination of Gold ETFs, Stocks and Mutual Funds recommended by
our Advisors, depending on an investor's risk appetite and investment view.

AutoInvest is unique from a general SIP in a way that it assesses the risk profile and investment
objectives of the investor, an important practice that Mutual Funds fail to carry. We offer 4
distinct Investment Portfolios based on your risk taking ability.

Benefits of AutoInvest
 SIP Styled Investments
 Diversified investment with Compounding effect. Example
 Option to Invest In Gold ETFs
 Option to purchase Gold Bars/Coins at the time of redemption of Gold
ETFs

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  Wide Array of Portfolio Selections
 The Investor holds his stocks in a Demat Account unlike Mutual Funds

 Investment amount starts as low as Rs. 5000

How Do You Get Gold Bars/Coins

On sale of Gold ETFs through us, you will be given a 2-3% discount coupon which you can take
to any Kotak Mahindra Bank branch if you wish to purchase gold. The discount coupon will be
given to you for the trades executed during the day.

Investing in Gold ETFs give you all the advantages of investing in gold while eliminating
drawbacks of physical gold -- cost of storage, liquidity and purity. Gold ETFs allow investment
in gold in small denominations, which makes it easy on the wallet . Investing in GOLD ETFs
gives investors tax advantages over investing in physical gold. Gold ETFs are transparent
investment vehicles that will have to conform to rigid regulations on investment norms and
valuations. This assures the quality of gold that the fund will invest in and transparency in
calculation of NAVs
Kotak Gateway Account

As Investor, you will have access to all the research and trading facilities to execute your trades.
You can decide what to buy, when to buy etc. either based on your own research or use Kotak
Securities research.

Kotak Securities Gateway Account, an Online Trading Account opens the gateway to a world of
investing opportunities for you. You may be anywhere, anytime and still manage to place your
trades using the Internet or our Call and Trade Facility.

Your benefits:

• Kotak Securities Knowledge Center, which helps you learn more about stock markets and
investments.

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 • Enjoy higher returns by investing early - through Easy IPO.
• Our Research Reports on the economy, select industries and companies help you make
informed investment decisions while dealing in Easy Equity.
• Research advice via SMS alerts, you don't miss out on important buying and selling
opportunities.
• Buy and sell stocks on phone using Call & Trade.
• Access to 14 top-performing mutual funds through Easy Mutual Fund.
• Low brokerage rates.
• Exposure of upto 12 times your initial margin on select stocks with Super Multiple
• Now, you can trade Currency Derivatives as well through your kotak gateway account

Charges:
You can activate Kotak Securities Gateway with any amount between Rs 20,000 to 5, 00,000/- as
margin. This can be in form of cash deposit or the value of the shares you buy.

BROKERAGE STRUCTURE
Delivery

< 1lakh 0.59% Gateway A/C

1 - 5 lakh 0.55%
5 - 10 lakh 0.45%
10 - 20 lakh 0.36%
20 - 60 lakh 0.27%
60 lakh - 2 crore 0.23%
> 2 crore 0.1 8% Privilege A/C

Intraday brokerages
< 25 lakhs 0.06% both sides Gateway A/C
25 lakhs - 2 crores 0.05% both sides
2 crores - 5 crores 0.04% both sides

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> 5 crores 0.03% both sides Privilege A/C

Futures
Intraday brokerages Settlement
< 2 crores 0.07% both sides 0.09% both sides Gateway A/C
2 - 5.5 crores 0.045% both sides 0.073% both sides
5.5 - 10 crores 0.036% both sides 0.046% both sides
10 - 25 crores 0.027% both sides 0.046% both sides Privilege A/C
> 25 crores 0. 23% both sides 0.032% both sides

Options
Monthly Premium Volume Intraday Brokerage% Settlement Brokerage% Minimum
Brokerage Per Lot (Intraday) Minimum Brokerage Per Lot (Settlement)
Upto 4Lacs 2.5 2.5 100 100 Gateway
4Lacs-11Lacs 2.25 2.5 100 100
11Lacs-20Lacs 1.8 2.3 100 100
20Lacs-50Lacs 1.35 2.3 80 100 Privilege
> 50Lacs 1.15 1.6 70 100

Here Premium Volume is considered as (Premium x Lot Size x No. of Lots). As per this new
structure you will be charged either a fixed minimum brokerage per lot or the new brokerage rate
based on the monthly premium value slabs you achieve, whichever is higher.

Even if a client starts with a Gateway/ value account, it is possible that he may avail brokerages
as low as 0.18%in the cash delivery segment (and 0.03% in the intraday cash square up segment)
depending on his trading volumes.. The minimum brokerage that is applicable in Kotak Gateway
Account is 4 paise on delivery and 4 paise in the cash segment.

Kotak Privilege Circle Account

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Understanding your individual investing needs,At Kotak Securities make sure you get to enjoy
premium and top of the line trading services only with Kotak Securities Privilege Circle. It is an
internet based trading account.
Executing your trades Independently with the Kotak Privileged Account gets you the lowest
charges in the industry as well as privileged services that only a few enjoy.

Your benefits
• A dedicated Privilege Circle customer service desk offers you assistance in opening
accounts, handling day-to-day problems, and more.
• Independent market expertise and support through a dedicated relationship manager.

• Place orders phone through Call & Trade.

• Access to Easy IPO and 14 top-performing mutual funds through Easy Mutual Funds.

• Our Research Reports on the economy, select industries and companies.

• Research advice via Kotak Securities SMS alerts, so you don't miss out on important
market movements.
• 6 times exposure on the margin.
• Access to K.E.A.T Premium - an exclusive premium analysis tool with 52 Indicators for
Technical Analysis, Derivative Chains, Multiple Watchlists, and more.
• Margin finance at attractive rates.
• Lowest delayed payment interest.
• Exposure of upto 12 times your initial margin on select stocks with Super Multiple

Charges
You can activate Kotak Securities Privilege Circle with any amount more than Rs. 10,00,000/- as
margin, by way of cash or stock.
Kotaksecurities.com offers you one of the most competitive brokerage rates in the market.As a
Privilege Client, you can avail one of brokerages as low as 0.18% in the cash delivery segment
and 0.03% in the intraday segment. Detailed below is the brokerage charge on various account
types.

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BROKERAGE STRUCTURE
Delivery
< 1lakh 0.59% Gateway A/C
1 - 5 lakh 0.55%
5 - 10 lakh 0.45%
10 - 20 lakh 0.36%
20 - 60 lakh 0.27%
60 lakh - 2 crore 0.23%
> 2 crore 0.18% Privilege A/C

Intraday brokerages
< 25 lakhs 0.06% both sides Gateway A/C
25 lakhs - 2 crores 0.05% both sides
2 crores - 5 crores 0.04% both sides
> 5 crores 0.03% both sides Privilege A/C

Futures
Intraday brokerages Settlement
< 2 crores 0.07% both sides 0.09% both sides Gateway A/C
2 - 5.5 crores 0.045% both sides 0.073% both sides
5.5 - 10 crores 0.036% both sides 0.046% both sides
10 - 25 crores 0.027% both sides 0.046% both sides Privilege A/C
> 25 crores 0 .023% both sides 0.032% both sides

Options
Monthly Premium Volume Intraday Brokerage% Settlement Brokerage% Minimum
Brokerage Per Lot (Intraday) Minimum Brokerage Per Lot (Settlement)
Upto 4Lacs 2.5 2.5 100 100 Gateway
4Lacs-11Lacs 2.25 2.5 100 100
11Lacs-20Lacs 1.8 2.3 100 100

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20Lacs-50Lacs 1.35 2.3 80 100 Privilege
> 50Lacs 1.15 1.6 70 100

The minimum brokerage that is applicable in Kotak Privilege Circle Account on delivery is 4
paise and 3 paise in the cash segment

Even if a client starts with a Gateway/ value account, it is possible that he may avail brokerages
as low as 0.18%in the cash delivery segment (and 0.03% in the intraday cash square up segment)
depending on his trading volumes. The minimum brokerage that is applicable in Kotak Gateway
Account is 4 paise on delivery and 4 paise in the cash segment.

Additional charges (for both)

Service Tax of 10.30% of brokerage will be charged in addition.
Securities Transaction Tax (STT) @ 0.125% of turnover will be charged in addition to the
brokerage on all delivery trades
STT @ 0.025% of turnover will be charged in addition to the brokerage on sell leg of all non
delivery trades in the cash market
STT @ 0.017% of turnover will be charged in addition to the brokerage on sell leg of all non
delivery trades in the derivative market

Special a/c for NRI

Procedures & Documentation

You can get started with the account once the following formalities are completed:
1.NRI- Trinity Account - A combination of Banking , Demat and Trading accounts, these will be
provided to you by Kotak Securities, so that your online trading experience is seamless and
effortless.
2.Request Letter for PINS permission
Note: We will open your PINS account and Savings account with Kotak Mahindra Bank
Limited.

30
Brokerage for NRI Basic Account

A/c Opening Charges Average Quarterly Maintenance in Saving A/c

Rs. 3250/- Rs. 10,000/-
Brokerage - 1 % of the turnover or INR 0.10 (10 paisa) per share, which ever is higher.
> Above Rates are inclusive of Pins Charges
> Demat Charges Extra
> 10.30% Service Charges on Brokerage
> Transaction Tax (STT) of 0.125%

Trinity Account

A 3 in 1 account is an account for internet based trading that integrates your Trading, Bank and
Demat account. With a Trinity Account your transactions will be seamless and very convenient.

Advantages of a 3 in 1 account
• You can open your trading, Demat and Bank account with a single entity. This reduces
your need for maintaining separate accounts with different entities.
• You do not have to transfer margin money to and from your accounts. Your margin
money is automatically reflected in your accounts.
• Transactions are seamless and you do not lose time in unnecessary transactions.

31
KEAT
If you are a first time-investor, use this free online tool to monitor what is happening in the
market and also view your gains and losses in real-time. Click here to know more.

KEAT Pro
KEAT Pro, a free, easy-to-use integrated web based trading platform allows online trading
customers to trade in Equity, Derivatives and Currency Derivatives. KEAT Pro is a high speed
trading platform allows you to monitor the market real time. You can check live market rates of
scrips/contracts in NSE , BSE & NSE Currency, create multiple watch lists and simultaneously
place orders, view order reports, view positions etc.

KEAT Premium
KEAT Premium is an exclusive online tool that makes extensive use of detailed technical charts
to help you monitor what is happening in the market. It also enables you to view your gains and
losses in real-time.

Twin Advantages
This facility is for online trading customers, with Twin Advantage, all online customers not only
get exposure on their margin as cash, but they will also benefit by obtaining margin on the stocks
they have in their demat account.
Twin Advantage offers the following advantages:
With a margin of Rs. 50000 and Stock of 100000

Earlier Margin Exposure = 4 times

Cash Rs. 50000 Rs. 200000
Stock 100000 0

32
Total Rs. 150000 Rs. 200000

With Twin Advantage,

You can now also take a 75% margin against your stock amount plus 4 times the exposure
against it.

Earlier Margin Exposure = 4 times

Cash Rs. 50000 Rs. 200000
Stock 75000 Rs. 300000
(75% margin given against 1 Lac stock)
Total Rs. 150000 Rs. 500000

Get additional exposure on your stocks

You can now get up to 75% margin against the stocks in the Twin Advantage. Based on our
valuation of particular scripts, we will constantly be revising the multiples offered on the scripts
on a timely basis taking into consideration many factors.

Kotak Securities Research Centre

The Kotak Securities Research Centre - the special research cell where some of India's finest
financial analysts bring you intensive research reports on how the stock market is faring, when is
the right time to invest, when to execute your order and more.
Depending on what kind of investor you are, we bring you fundamental, technical research.

As an investor with Kotak Securities, you get access to these research reports exclusively. You
get access to the following reports.

Intraday calls, Daily Technical View, Morning Insight, Weekly Technical Report, Sectoral
Reports, Stock Ideas, Derivative Reports, Portfolio Advice, Research For Investors, Regular
research reports, Ideal for investors, Macro economic research, Industry or sector research ,
Company research

33
 Competitor’s Analysis

ICICIDirect

ICICIDirect (or ICICIDirect.com) is stock trading company of ICICI Bank. Along with stock
trading and trading in derivatives , it also provides facility to invest in IPOs, Mutual Funds and
Bonds. ICICIDirect.com website is the primary tool in investing in any product.

Trade In: BSE and NSE

Type of Account

ICICIDirect offers 3 different online trading platforms to its customers:

Share Trading Account

Share Trading Account by ICICIDirect is primarily for buying and selling of stocks..
This account allows Cash Trading, Margin Trading, Trading, Spot Trading, Buy Today Sell
Tomorrow and Call and Trade on phone. They also provide installable application terminal based
application for high volume trader.

Wise Investment Account

Along with stock trading and IPO investing in BSE and NSE, Wise Investment account also
provide options to invest in Mutual Funds and Bonds online.

34
Online Mutual funds investment allows investor to invest on-line in around 19 Mutual Fund
companies. ICICI Direct offers various options while investing in Mutual Funds like Purchase
Mutual Fund, Redemption and switch between different schemes, Systematic Investment plans,
Systematic withdrawal plan and transferring existing Mutual Funds in to electronic mode. This
account also provides facility to invest in Government of India Bonds and ICICI Bank Tax
SavingBonds.
ICICIDirect.com website is the primary tool to invest in Mutual Funds, IPOs, Bonds and stock
trading.

Active Trader Account

Active Trader account gives more personalized investment options to the investors. It allows
investor to use online and offline stock trading. It also provides with independent market
expertise and support through a dedicated Relationship Manager from ICICI.

Brokerage and fees

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

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

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

For Online Stock Trading with ICICI, investor needs to open 3 accounts ICICI Bank
Account, ICICI Direct Trading Account and ICICI Demat Account (DP Account).

Advantages of ICICIDirect

1. 3-in-1 account integrates your banking, broking and demat accounts. All accounts are
from ICICI and very well integrated. This feature makes ICICI the most interesting

35
 player in online trading facility. There is absolutely no manual interfere require. This is
truly online trading environment.
2. Unlike most of the online trading companies in India which require transferring money to
the broker's pool or towards deposits, at ICICIDirect you can manage your own demat
and bank accounts through ICICIdirect.com. Money from selling stock is available in
ICICI bank account as soon as the ICICIDirect receive it.
3. Investment online in IPOs, Mutual Funds, GOI Bonds, and Postal Savings Schemes all
from one website. General Insurance is also available from ICICI Lombard.
4. Trading is available in both BSE and NSE.

Disadvantages of ICICIDirect

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

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

36
 Indiabulls

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

Type of Account

Indiabulls Equity Trading Account

Indiabulls Equity Trading Account is standard Online trading account from India bulls and along
with online trading it also provides priority telephone access that gives you direct access to
your Relationship Manager and full access to 'Indiabulls Equity Analysis' Application
Trading Terminal

Power Indiabulls

Power Indiabulls trading terminal is the most advanced new generation trading platform with
great speed. This trading terminal is built in JAVA.
Power Indiabulls is extremely reach in features including Live Streaming Quotes, Fast Order
Entry and execution, Tic by Tic Live Charts, Technical Analysis, Live News and Alerts,
Extensive Reports for Real-time Accounting.

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

250/- Equity Trading Account opening charge

37
200/- Demat Account opening charge
750/- Software changes

Advantages of Indiabulls Equity Trading Account

1. Brokerage is less compare to other online trading companies.

2. Provide trading terminal 'powerbulls', a java based software. It's very fast in terms of
speed and execution.

HDFC Securities

HDFC Securities (HDFCsec) is Equity Trading Company of HDFC Bank. HDFC Securities
provide both online trading and trading on phone. The HDFC Securities trading account has a
unique 3-in-1 feature that integrates your HDFC Securities trading account with your existing
HDFC bank savings account and existing Demat account. Funds / shares are seamlessly moved
from the linked Demat/Bank account to execute the transactions.

HDFCsec provides Cash-n-Carry on both NSE and BSE, Day trading on both NSE and BSE,
Trade on Futures & Options on the NSE and Online IPO Investment.

Features on HDFC Securities Online trading

1. Seamless Transactions - By integrating your accounts, we ensure minimal waste of time

during movement of your funds and shares.
2. Speed - Orders are placed electronically, so proceeds are available instantly.
3. No manipulation - To prevent any mismanagement, we will send you an email
confirmation, the minute your order is executed.
4. Safety and Security - HDFC Securities offer the highest level of security such as 128-bit
encryption technology.
5. Dedicated and Separate contact numbers - for trading over the phone as well as for
customer care.

38
Account opening fees Rs. 799/- (Including trading account, bank account and DP account with
HDFC)
Please note: HDFC Bank savings account required a quarterly minimum balance of Rs. 2,500/-.

5paisa

5paisa is Online Stock Trading Company of India Infoline Securities Private Ltd., Owner of
popular business portal Indiainfoline.com. Besides high quality investment advice from an
experienced research team, the site offers real time stock quotes, market news and multiple tools
for technical analysis.

Trade In: BSE and NSE

Trading Terminals:

5Paisa offers 2 different online trading terminals to its customers:

Investor Terminal (IT)

Investor Terminal is 5Paisa's equity trading terminal for low volume trader. This is web based
terminal and could access from anywhere. This product provides limited features in comparison
of Trader Terminal, which is another product provided by 5Paisa.

Trader Terminal (TT)

Trader Terminal is design for high volume equity traders or day traders. Trader Terminal
provides high volume trading with powerful interface and fast order execution.
Few popular features of trader terminal are:

o Fast trade execution with instant trade confirmation.

o Live streaming quotes and price watch on any number of stocks.
o Intra day charts, updated live, tick-by-tick.
o Live margin, position, marked to market profit & loss report.

39
 o Set any number of price alerts on any number of scrips.
o Flexibility to customize screen layout and setting.
o Facility to customize any number of portfolios & watch lists.
o Facility to cancel all pending orders at one click.
o Facility to square off all transactions at one click.
o Top Gainers, Top Losers, Most Active, updated live.
o Index information; index chart, index stock information live.
o Market depth, i.e. Best 5 bids and offers, updated live for all stocks.
o Online access to both accounts and DP to check live updated Order and Trade
Book.
o Facility to place after market orders.
o Online fund transfer facility from leading Banks including ICICI, HDFC, CITI
and UTI.
o Online intra-day technical calls.
o Historical charts and technical analysis tools.

Brokerage and Account opening fees:

1. Account opening fees: Rs 500/- one time non refundable.

2. 5 paisa offer competitive rates. They charge only 5 paisa for Rs 100 of trade done, which
is 0.05%. brokerage. In case of trade that result in delivery, they charge an additional
0.20% for back office and securities handling.

Advantages of 5paisa

1. Very fast execution speed.

2. Rates are very competitive then other providers.
3. Easy online fund transfer facility from leading Banks including ICICI, HDFC, CITI and
UTI banks.
4. Free facility of subscribing to mutual funds, equity IPOs and other investment products.

Disadvantages of 5paisa

40
 1. No intra-day tick by tick charts in Investor Terminal (IT).
2. Investing in IPO and Mutual Funds is not so easy like in ICICIDirect.
3. Learning 5paisa Trading Terminal is little hard.

IPO / Mutual Funds investment through 5Paisa (IndiaInfoLine)

1. 5Paisa provides free facility of subscribing to mutual funds, equity IPOs and other
investment products using internet banking account of ICICI, HDFC, CITI and UTI
banks.
2. While applying for IPO shares online through 5Paisa, Investor are taken to there
corresponding banks homepage. Investors can use there net banking user id & password
& transfer funds directly using any of these banks.
3. 5Paisa members can use the similar steps to invest in Mutual Funds IPO

Sharekhan

Sharekhan is online stock trading company of SSKI Group, provider of India-based investment
banking and corporate finance service. ShareKhan is one of the largest stock broking houses in
the country. S.S. Kantilal Ishwarlal Securities Limited (SSKI) has been among India’s leading
broking houses for more than a century.

Sharekhan's equity related services include trade execution on BSE, NSE, Derivatives,
commodities, depository services, online trading and investment advice. Trading is available in
BSE and NSE. Along with Sharekhan.com website, ShareKhan has around 510 offices (share
shops) in 170 cities around the country.

Share khan has one of the best state of art web portal providing fundamental and statistical
information across equity, mutual funds and IPOs. You can surf across 5,500 companies for in-
depth information, details about more than 1,500 mutual fund schemes and IPO data. You can

41
also access other market related details such as board meetings, result announcements, FII
transactions, buying/selling by mutual funds and.

Trade In: BSE and NSE

Type of Account

ShareKhan Classic account

Allow investor to buy and sell stocks online along with the following features like multiple
watch lists, Integrated Banking, demat and digital contracts, Real-time portfolio tracking with
price alerts and Instant credit & transfer.

a. Online trading account for investing in Equities and Derivatives

b. Free trading through Phone (Dial-n-Trade)
I. Automatic funds tranfer with phone banking (for Citibank and HDFC
bank customers)
II. Simple and Secure Interactive Voice Response based system for
authentication
III. get the trusted, professional advice of our telebrokers
IV. After hours order placement facility between 8.00 am and 9.30 am
c. Integration of: Online trading + Bank + Demat account
d. Instant cash transfer facility against purchase & sale of shares
e. IPO investments
f. Instant order and trade confirmations by e-mail
g. Single screen interface for cash and derivatives.

ShareKhan Speed Trade account

This accounts for active traders who trade frequently during the day's trading session.

Following are few popular features of Speed Trade account.

a. Single screen interface for cash and derivatives

42
 b. Real-time streaming quotes with Instant order Execution & Confirmation
c. Hot keys similar to a traditional broker terminal
d. Alerts and reminders
e. Back-up facility to place trades on Direct Phone lines

Brokerage:

Some stock trading companies charge direct percentage while others charge a fixed amount per
Rs 100. Sharekhan charges 0.5% for inter day shares and 0.1% for intra day or you could
say Sharekhan charges 50 paise per Rs 100.

Advantages of Sharekhan:

1. Online trading is very user friendly and one doesn't need any software to access.
2. They provide good quality of services like daily SMS alerts, mail alerts, stock
recommendations etc.
3. Sharekhan has ability to transfer funds from most banks. Unlike ICICI Direct, HDFC
Sec, etc., so investor not really needs to open an account with a particular bank as it can
establish link with most modern banks.

Disadvantages of Sharekhan:

1. They charge minimum brokerage of 10 paisa per stock would not let you trade stocks
below 20 rs. (If you trade, you will loose majority of your money in brokerage).
2. Lots of hidden rules and charges.
3. They do not provide facility to book limit order trades during after-hours.
4. Classic account holders cannot trade commodities.
5. Cannot purchase mutual funds online.

43
INTRODUCTION OF THE CONCERN
DEPARTMENT

HIERARCHY

ASHLESH TIWARI
INDORE HEAD

SOURABH PORWAL
BRANCH HEAD

RELATIONSHIP
MANAGER AND
DEALER

44
Target assigned by the company –
• The target assigned to team is to open 3 demat accounts in two month and also to
make them to do trade after the opening of account.
• Make 6 appointments in a week.
• Do punch at least 15 forms in a week.
• Do at least 80-90 calls a day.
• To provide best services to the clients because company believes in quality not in
quantity.
STRATEGY ADOPTED
• Tele-calling
• Personal appointments
• Making arrangements for the requirements
• Open Demat Account
• Again visit for trading

Document required to open Kotak Securities Trading Account

For individual investors

1. Photograph (Three)
2. PAN Card (Three)
3. Proof of Address (Passport, Driver's License, Ration Card, Voter's Identity card,
Telephone bill, and Electricity bill, Bank Passbook / Bank Statement or Rent Agreement)

45
4. Proof of Identity (Passport, PAN Card, Voter's Identity Card, Driver's License or MAPIN
UID Card)
5. Signature Verification
6. Personalized cheque leaf or (cheque leaf along with Bank Statement or Bank Passbook).
7. Banker’s verification (from a Schedule commercial bank only)

Scope &Objective:

The main of the present study of is accomplishing the following objective.

 Proper understanding and analysis of Equity Market.

 To know about brand awareness of Kotak Securities and customer’s
preference about Kotak Securities
 Training aims at recruiting maximum number of trainee and to Sell the
maximum DMAT A/C for the company and bring the business for the
company which ever is going at the particular point of time.
 Along with it I will be gaining the thorough knowledge of SHARE
MARKET. This will give me in more confidence in marketing products
given to me.
 As the Kotak Securities well reputed company in India it’s great chance

for me to observed different products launch by other competitor

companies like ICICI IDIRECT, SHARKHAN, HDFC,5PAISA AND
INDIABULLS etc. In all, it is to understand the overall working of the
SHARE MARKET

46
.

Requirement for opening online account-

Internet has given a whole new meaning to the financial service industry and changed it in a
manner that was never predicted. The online way of doing trade has gained huge popularity due
to the comfort and convenience it has offered to the consumers and supplier across the globe.
Online Stock trading when came into existence took over the market and crossed the threshold of
conventional brokerages in an unbelievable way. Online Stock Trading added ease, speed, and
convenience to the industry of commerce.

Online stock trading brokers have an edge over the conventional brokers and realizing the
benefits of internet, they are also creating an online presence for themselves. Since mid ‘90’s,
when Online Stock Trading came into being, it drastically transformed the financial services
industry and created a strong foothold in the commercial market. Online Stock Trading created a
virtual world of trading that is within the reach anyone and everyone. All you need to have is an
internet connection and you can log on from anywhere and anytime and carry out your trades
stocks Online.

Online Stock Trading gave the Online stock trading brokers an easy and economical way to carry
out trade by just holding online trading accounts. There was a rapid boom in the Online Stock
Trading scenario due the lower commission structures in comparison to the conventional
brokerages. There was also a tremendous increase in the Online Stock Trading accounts and
there was a major hike in the transaction volumes.

47
Depository Services Dematerialization and trading in the demat mode is the safer and faster
alternative to the physical existence of securities. Demat as a parallel solution offers freedom
from delays, thefts, forgeries, settlement risks and paper work. This system works through
depository participants (DPs) who offer demat services and the securities are held in the
electronic form for the investor directly by the Depository.

Kotak Depository Services offers dematerialization services to individual and corporate

investors. We have a team of professionals and the latest technological expertise dedicated
exclusively to our demat department, apart from a national network of franchisee, making our
services quick, convenient and efficient. our commitment is to provide a complete demat
solution Which is simple, safe and secure.

ADVANTAGES OF ONLINE STOCK TRADING

Easy Access: Online stock trading brokers have an easy access to the market with advent of
internet as all they need to have is an Online Stock Trading account. The traders can check out
real time stock quotes and go through historical stock price trends; this will give them a fair idea
about the deal they are entering into. They can also assess the market analysis and do their own
research on various firms. They can also interact with the online stock trading brokers via forums
or chat rooms.

Eliminate middlemen: Online stock trading brokers have eliminated the long line of middlemen
involved in stock trading otherwise. It allows the traders to invest wisely and make buying and
selling of stocks much easier and simpler. It allows the traders to directly contact online stock
trading brokers whenever and wherever without any hassle.

Lower commission: Making an Online Stock Trading account is much more economical then
going in for the help of a conventional broker who are always looking for chance to make money
out of the client. On the other hand, online stock trading brokers only charge a fixed amount of
commission and help you in making deals that are beneficial for you. Traditional brokerage
houses turn out to be very expensive which gives the online stock trading brokers leverage in

48
comparison.

Rich Information Source: Online Stock Trading has bridged the gap between the traders and
the commercial market. With the help of internet the traders can gain any type of information
related to stocks, companies, market trends, etc.

Wider Investment Choice: Online Stock Trading gave the traders a wider choice in terms of
investment. They can invest in stocks, bonds, mutual funds, mortgages, insurance, derivatives,
futures, options, etc. depending upon their choice. Online investment phenomenon offered an
extensive variety of products to the traders.

Quick trade execution: Online Stock Trading has significantly speeded up the process of
commerce. It have made things accessible and available to the traders and decreased the time
related to the completion of the overall trading procedure drastically.

49
 COMPETATIVE ANALYSIS

BASIC ICICI KOTAK INDIA HDFC 5PAISA SHER

STRUCTURE DIRECT SEC. BULLS SEC. KHAN
A/C 750 750 500 750 0.425 750
CHARGES
BROAKRAGE 0.75 0.04 0.50 0.75 0.251 0.50
DILIVERY/
0.15 0.40 0.05 0.15 0.071 0.05
INTRADAY
SERVICE TAX 10.02 10.02 10.02 10.02 10.02 10.02
%
SST 0.01 0.01 0.01 0.01 0.01 0.01

CASH ICICI KOTAK INDIA HDFC 5PAISA SHER

SEGEMENT DIRECT SEC. BULLS SEC. KHAN
DILIVERY 0.08% 0.40% 0.08% N.A 0.50% N.A

TRADE
NON-DILIVERY 0.15% 0.04% 0.15% N.A 0.10% N.A
TRADE
MIN.ORDER Rs.500 Rs.500 Rs.500 Rs.500 N.A N.A

MIN.BROKRAGE Rs.25 N.A Nil N.A N.A N.A 10 paise

BROKERAGE 1% 0.05% N.A 0.05% 0.05% N.A

50
 JOBBING N.A 3.10 p.m 3.15 p.m N.A 2.40 p.m 3.15 p.m

SPOT ICICI KOTAK INDIA HDFC 5PAISA SHER

SEGEMENT DIRECT SEC. BULLS SEC. KHAN
MIN. TRADE RS.500 RS.500 RS.500 RS.500 N.A N.A
MAX.AMOUNT RS.10 lakh no limit no limit no limit N.A N.A

BROKERAGE 0.10% 0.05% N.A 0.05% 0.25% 0.05%

MARGIN ICICI KOTAK INDIA HDFC 5PAISA SHER

SEGMENT DIRECT SEC. BULLS SEC. KHAN
MIN. TRADE RS.500 RS.500 RS.500 RS.500 N.A N.A
MAX.AMOUNT RS 15 N.A N.A RS 15 N.A N.A
BROKERAGE 0.04% N.A N.A 0.05% N.A 0.05%

DERIVATIVE ICICI KOTAK INDIA HDFC 5PAISA SHER

SEGEMENT DIRECT SEC. BULLS SEC. KHAN
SERVICE TAX 10.20% 10.20% 10.20% 10.20% 10.20% 10.20%

STT 0.01% 0.125 0.01% 0.01% 0.01% 0.01%

MIN. BALANCE Rs 5000 N.A N.A Rs 5000 Rs 2000 N.A

BANK ICICI KOTAK INDIA HDFC 5PAISA SHER

CHARGES DIRECT SEC. BULLS SEC. KHAN
MIN.BALANCE Rs 5000 Zero N.A Rs 5000 N.A N.A
PENELTY Rs 750 NIL N.A NIL N.A NIL
A/C CHARGES NIL NIL N.A NIL N.A NIL
CUSTODY Rs 2.25 NIL N.A N.A N.A N.A
CHARGES
TRANS. BUY 0.02% N.A N.A NIL 2.50% Free
SELL 0.04% Rs 20 per N.A 0.04% 2.50% Free

51
 form
STAMP 0.02% N.A N.A N.A Rs 420 p. 0.01%
CHARGES form
DMAT ICICI KOTAK INDIA HDFC 5PAISA SHER
ACCOUNT DIRECT SEC. BULLS SEC. KHAN
REJECTION Rs.20 N.A Rs.20 NIL Rs 20entry N.A
PLEDGE 0.20% NO 0.02% RS.10 RS 30 0.02%
CHARGES N.A 380 P.A. N.A Rs 3 p.ce Rs 5 N.A
p.cer

DEPOSITORY ICICI KOTAK INDIA HDFC 5PAISA SHER

RELATIONSHIP DIRECT SEC. BULLS SEC. KHAN
ADVANCE RS.2500 RS 3500 - N.A. RS.2500 RS.2000 N.A.
AMOUNT 5000
FUNDING YES YES 21%P.A. YES N.A. YES
IPO YES YES YES YES N.A. YES
RESEAECH 65% 70-80% 75% N.A. NO 70-80%
REPORT
EXPOSURE 4 times 5-6 times 6 times 6-7 times N0

COMPETITOR STRATEGIES

According to me ICICI DIRECT and INDIA BULLS are the main competitor of the KOTAK
SECURITIES.

Accounting charges of all the banks are close to the figure of Rs. 700-750 and if KOTAK
SECURITIES has to win the race in the competition they have to lower down their
accounting charges to between Rs. 600-700.

52
Brokerage charges of the entire competitor are similar with the KOTAK SECURITIES i.e. .
04-0.40 % except ICICI that is charging .65%. So the strategy to compete with ICICI is to
provide more service with the same brokerage.

KOTAK SECURITIES should select a strategy of POSITION DEFENCE.KOTAK

SECURITIES should be focused on customer satisfaction and the product availability and
treat their customer as GOD. The best way of competing with the competitor is to make your
customer satisfied, which results in the loyalty of your customers for your company.

KOTAK SECURITIES should continuously do a RESEARCH AND DEVELOPMENT

ROGRAMME, which will result in the information about the customers. For that they should
appoint R&D depts. Which will continuously do this work?

ICICIDirect brokerage is high and not negotiable, whereas in kotak securities brokerage are
negotiable for high trading /turnover customer. Not all stocks are available under Margin
Plus whereas in kotak securities customer can access each and every script.

Learning kotak securities Trading Terminal is very easy unlike 5paisa which is hard for a
new investor.

There are lots of rules and hidden charges prevailed in securities like Sharkhan, Adatiya Birla
but, in kotak securities transparency is assured.

The brokerage involved in ICICI is very high i.e. 0.75% ( Motilal Oswal brokerage is very
less just .2% for delivery).Which result that we can not do day trading as a result. The
options are also very less flexible as compared to kotak securities.

In ICICIDirect, customer also face problem like if you go for intra day trading and the stock
price falls, you can’t take the delivery and have to sell at lower price. If you go for buy today
sell tomorrow feature, you can’t sell the same day. And the high brokerages eat away your
profit.

53
Another problem faced in online trading is whenever there is huge volatility in the market,
the site stops working most of the time.

I would suggest not to go for ICICIDirect as these people charges hell lot of brokerage as
compared to other brokers especially like kotak securities.

It is common practice of the ICICIDirect that they Sometimes in intraday trades square off
your positions before 3:00 pm and sometimes it accidentally keep it open and settle it on next
day.

After considering this problem Kotak securities is the best available option in market.

ICICIDirect are often recommended to the long term investor as its safe and secure except
for high brokerage and if you are going to day trade then forget about ICICI.

BROKERAGE CHARGES :

54
Ifs and Buts of Indian online share trading

55
Mostly people comfortable with traditional brokers : - As people are doing trading
from there respective brokers, they are quite comfortable to trade via phone.

Lack of Techno Savvy people and poor internet penetration : - Since most of the
people are quite experienced and also they are not techno savvy. Also internet
penetration is poor in India. Also whenever there is huge volatility in the market, the site
stops working most of the time.

Some respondents are unwilling to talk: - Some respondents either do not have time or
willing does not respond, as they are quite annoyed with the phone call.

Finding accurate data – There is always problem in finding in which script to invest
where to invest it took lots of time in finding that the data which is accurate.

Market Time – This was the biggest problem as we could contact our Assistant Manager
only after the share market closed and they completed their work and settlements that is
after 4 P.M.

RECOMMENDATIONS

56
MORE BRANCHES –Need to open more branches to be a topper in market Because it has a
low distribution network.

LESS TIME –They should try to make some arrangements to reduce account opening time by
verifying documents at branch it selves.

LESS CHARGE –Since they are charging more in comparison to others, they should reduce the
account opening charges.

NEW BANKS IN THE KITTY –Need to tie up with major banks like SBI, Allahabad Bank,
Bank of Baroda etc.

CUSTOMER SATISFACTION –The company should focus on the customer satisfaction not
on just taking money from their pocket.

CONTROLLED BRANCHES -The company would have to make some arrangements to

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

CONCLUSION

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“From the above study, it can be concluded that although kotak securities has

earned a very good reputation in market in terms of consumer satisfaction ,

research .

But it has long way to go in terms of awareness and get established and
standardized.”

BIBLIOGRAPHY

Books

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Security Analysis And Portfolio Management
SMU MODULE

Other Sources –
· Securities Market (Basic) Module: --NCFM
· Economic Times.
· Business world.
· Training Kit Provided by the kotak securities

Websites:
www.kotaksecurities.com
www.sharekhan.com
www.equitymaster.com
www.icicidirect.com
www.hdfcsecurities.com
www.indiabulls.com

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