CONTENTS

Chapter No. Name of the concept Page No.

Introduction

Need of the study

Objectives of the study

I
Scope of the study

Methodology of the study

Limitations of the study

II Review of Literature

III Industry Profile

IV Company Profile

V Data analysis and interpretation

VI Findings, Suggestions and Conclusion

VII Bibliography
CHAPTER I - INTRODUCTION
INTRODUCTION

“Customer Satisfaction” means depends on a product’s perceived performance in

delivering value relative to a buyer’s expectations.

If the product performance falls short of the customer’s expectations, the

buyer is dissatisfied.
If performance matches expectations, the buyer is satisfied.
If performance exceeds expectations, the buyer is delighted.

Outstanding marketing companies go out of their way to keep their customers

satisfied. Satisfied customers make repeat purchases, and they tell others about their
good experiences with the product. The key is to match customer’s expectations with
the company performance.

Marketers alone cannot deliver superior customer value and satisfaction.

Although it plays a leading role, marketing can be only a partner in attracting, keeping
and growing customers.
NEED OF THE STUDY

• In present scenario there exists a severe competition among the various Broking
Companies. It is the customers who decide the fate of any business organization
so there is a need to study the satisfaction of customers.

• In the Indian scenario the phrase “Customer is the king” has much value and it
is important for every company to satisfy the customer. Until and unless the
customer is satisfied one can’t be loyal towards the company. He in turn
publicizes the company’s product.
OBJECTIVES OF THE STUDY

This study is under taken to analyze the customer’s satisfaction with respect to
Durga Prasad & Co .

Objectives

 To know the customer satisfaction about the Durga Prasad & Co

Services
 To identify the factors influencing in using the trading account of the
customers
 To know the customer preference towards new online software’s &
Brokerage plans of Durga Prasad & Co
 To know the customer satisfaction levels with respect to the brand name,
coverage, quality in the service etc.
 To the customer satisfaction levels through the recent complaints
handled by the Durga Prasad & Co.
 To know suitable solutions for improving the market of the company.
RESEARCH METHODOLOGY

For the purpose of study, both primary and secondary data has been collected.
The observational method and survey research method is used to collect the
primary data. The survey research method is used to gain insight into the
knowledge about the opinions of the customers towards the reliance services.
The main research instruments used the required data is a well-structured
questionnaire. A detailed questionnaire has been prepared to reflect the
opinions of the customers towards the Durga Prasad & Co and administered to
the same.

The necessary data has also been collected from official records and other
published sources. The collected data is classified, tabulated, analyzed and
interpreted. Finally conclusion is draw based on the study and suggestions are
offered for improving the market efficiency of Durga Prasad & Co Stock Broking
services.

SAMPLE DESIGN

For ascertaining the customer satisfaction towards the Durga Prasad & Co
Stock broking Service 100 customers have been randomly selected from the
Hyderabad city only.

DATA COLLECTION

There are two types of data collection

1. Primary data
2. Secondary data
Primary data

• Primary data is personally developed data and it gives latest information

and offers much greater accuracy and reliability.
• There are various sources for obtaining primary data i.e., Mail survey,
personal interview,
• Field survey, panel research and observation approach etc.
• The study to maximum extent dependent on primary data, which is
collected by way of structures personal interview with customers.

Secondary data

Secondary data is published data. It is already available for using and its saves
time. The mail source of secondary data are published market surveys,
government publications advertising research report and internal source such
as sales, sales records orders, customers complaints and other business
record etc. the study has also depended on secondary data to little extent,
which is collected through internal source.

For this survey personal interview method was used for collecting primary data.
This survey was conducted by face to face interview customers and found to be
best suited to collect the primary data for this project.
 SCOPE OF THE STUDY

LIMITATIONS

• The study covers the Hyderabad only and due to the limited sample size,
the facts relabeled in the study may not generalize.
• While calculating the percentages, approximations are made to the
nearest figures, for convenience in understanding.
• The analysis is based on customer’s opinion at the time of survey.
• Due to time constraint the detailed information cannot be collected, but
many efforts are taken to collect the actual information.
CHAPTER II - REVIEW OF LITERATURE
 Marketing is a societal process by which individuals & groups obtain what they
need and want through creating, offering and freely exchanging the products and
services of value with others.

Marketing has often been described as the art of selling products. The aim of
Marketing is to know and understand the customers so well that the product or service
fits him and sell it-self.

Marketing is typically seen as the task of creating, promoting and delivering the
goods and services to the customers & businesses.

Marketing people are involved in marketing the goods, services, experiences,

events, persons, places, properties, organizations, information and ideas.

The American Marketing Association defined the marketing management as the

process of planning and executing the conception, pricing, promotion and distribution
of ideas, goods and services to create exchanges that satisfy individual and
organizations goals.

Marketing includes marketing environment, marketing philosophy, marketing

mix, market segmentation, market targeting and market positioning etc.

Marketing environment is the actors and forces outside the marketing that
affects marketing management ability to build and maintain successful relationships
with target customers.
Marketing philosophy are the competing concepts under which organizations
conduct marketing activities. They are :

1. Production Concept.
2. Product Concept.
3. Selling Concept.
4. Marketing Concept and
5. Societal Marketing Concept.
 Marketing Mix is the set of controllable and tactical marketing tools which are
used by the firm to gain the customers. It is also referred as
4 Ps
1. Product.
2. Price.
3. Place.
4. Promotion.

Market Segmentation means dividing a market in to distinct group of buyers

with distinct needs, characteristics or behavior who might require separate products or
marketing mix.

Target Marketing is the process of evaluating each market segment’s

attractiveness and selecting one or more to enter.

Market Positioning is creating a clear and distinct image of products in the

minds of the target customers relating to the competing products.
 CUSTOMER SATISFACTION

According to PETER DRUCKER “Marketing is so basic that it cannot be

considered a separate function. It is the whole business seen from the point of view its
final results, that is from the consumers point of view business success is not
determined by the producers but by the consumers.

The definition of marketing management as approved by the American Marketing

Association in 1985 is “Marketing Management is the process of planning and
executing the conception, pricing, promotion and distribution of goods and services and
ideas to create exchange with target group that satisfy consumer and conditional
objectives.

The definition recognize that marketing management is a process involving

analysis, planning implementation and control that it covers goods, services and ideas
that it rests in the notion of exchange and that the goods is to produce satisfaction for
the parties involved.

CUSTOMER SATISFACTION

The buyer forms a judgment of volume and acts. Whether the buyer is satisfied
after purchase depends upon the offers performance in relation to the buyers
expectations. According to PHILLIP KOTLER, the definition of customer satisfaction
is the level of a persons felt state resulting from comparing a product perceived
performance (or outcome) in relation to the persons expectations.
Thus the satisfaction level is a function of the difference between perceived
performance and expectations. A consumer could experience may be three broad levels
of satisfaction. It the performance falls short of expectations. If the performance
matches the expectations, the consumer is satisfied. It the performance exceeds
expectations, the consumer is highly satisfied, pleased or delighted.
 Companies are aiming high because who are just satisfied with still find it easy to
switch supplies when a better offer comes along. The fact is that high satisfaction or
delight creates an emotional affinity with the brand not just a rational preference, and
they creates high consumer loyalty.

The challenge is to create a company culture such that everyone within the
company aims to delight the consumer. Companies seeking to win in today’s markets
must track their consumers expectations perceived company performance and
consumable satisfaction that need to monitor this for their competitors as well.

For consumer centered companies, customer satisfaction is both a goal and a

marketing tool. Companies that achieve high customer satisfaction ratings make sure
that their customer satisfaction ratings make sure that their target market knows it.
Although the consumer centered firm seeks to create high consumer satisfaction. It is
not all to maximum consumer satisfaction. First, the company can increase customer
satisfaction by lowering its price or increasing its services, but his may result in lower
profits. Second, the company might be able to increase it profitability in other ways,
such as by improving its manufacturing or invest in more in R & D. Third, the
company has many stock holders including.

employees, dealers, supplier and stock holders. Spending more to increase customer
satisfaction of other “partners” Ultimately the company must operate on the
philosophy that it is trying to deliver a high level of customer satisfaction subject
delivering at lest acceptable levels of satisfaction to other stock holders within the
constraints of its total resources.
IMPORTANCE OF THE CUSTOMER SATISFACTION

Company’s primary task is “to create customers” But today’s customers face a
vast array of product and brand choices, prices and suppliers. How do customers make
their choices?
We believe that customers estimate which offer will deliver the most value.
Customers are value- maximizes, within the bounds of search costs and limited
knowledge, mobility, and income. They form and expectation of value and act on it.
Then they learn whether the offer lived up to the value expectation and this affects their
satisfaction and their repurchase probability.

CUSTOMER VALUE

Customer delivered value is the difference between total customer value and total
customer cost. And total customer value is the bundle of benefits customers expects
from a given product or service.

CUSTOMER SATISFACTION

Satisfaction is the level of a person’s felt state resulting from comparing a

product’s performance in relation to the person’s expectations. The satisfaction level is
a function of the difference between perceived performance and expectations.

A customer could experience one of three broad levels of satisfactions. If the

performance falls short of expectation, the customer is dissatisfied. If the performance
matches the expectations, the customer is satisfied. If the performance exceeds
expectations, the customer is highly satisfied, pleased, or delighted.
 Companies are aiming high because customers who are just satisfied will still
find it easy to switch suppliers when a better offer comes along. In one consumer
packaged-goods category, 44% of those reporting satisfaction subsequently switched
brands. Those who are highly satisfied are much less ready to switch.

One study showed that 75% of Toyota buyers were highly satisfied and about
75% said they intended to buy a Toyota again. The fact is that high satisfaction or
delight creates and emotional affinity with the brand, not just a rational preference, and
this creates high customer loyalty.

The challenge is to create a company culture such that everyone within the
company aims to delight the customer. Unisys, the computer company, recently
introduced the term “customize” in its ads, and defined it as follows: “To make a
company more responsive to its customers and better able to attract new ones.” Unisys
sees this as a matter of extending information’s system capabilities to field locations
and other points of customer contact and support. But “customizing” a company calls
for more than providing good information to customer contact employees. The
company’s staff must be “converted” to practicing a strong customer orientation.
Company’s staff must be “converted” to practicing a strong customer orientation. Anita
Roddick, founder of the Body Shop, wisely observes: “Our people (employees) are my
first line of customers.

Companies seeking to win to today’s markets must track their customer’s

expectations, perceived company performance, and customer satisfaction. They need to
monitor this for their competitors as well. Consider the following.
 For customer-centered companies, customer satisfaction is both a goal and a
marketing tool. Companies that achieve high customer satisfaction ratings make sure
that their target market knows it.

Although the customer-centered firm seeks to create high customer satisfaction,

it is not out to maximize customer satisfaction. First, the company can increase
customer satisfaction by lowering its price or increasing its services, but this may result
in lower profits. Second, the company might be able to increase its profitability in other
ways, such as by improving its manufacturing or investing more in R & D. Third; the
company has many stakeholders including employees, dealers, suppliers, and
stockholders. Spending more to increase customer satisfaction would divert funds from
increasing the satisfaction of other “partners” Ultimately, the company must operate on
the philosophy that it is trying to deliver a high level of customer satisfaction subject to
delivering at least acceptable levels of satisfaction to the other stakeholders within the
constraints of its total resources.

COMPLAINT AND SUGGESTION SYSTEMS:

A customer – centered organization would make it easy for its customer to

deliver suggestions and complaints. Many restaurants and hotels provide forms for
guests to report their like and dislikes. A hospital could place suggestion boxes in the
corridors, supply comment bikes ads to existing patients, and hire a patient advocate to
handle patient grievances. Some customer-centered companies- P & G, general
Electric, Whirlpool-establish “ customer hot lines” to maximize the ease with which
customers can inquire, make suggestions or complain.
SOME CAUTIONS IN MEASURING CUSTOMERS SATISFACTION:

When customers rate their satisfaction with an element of the company’s

performance, say delivery, we need to recognize that customers will vary in how they
define good delivery. It could mean early delivery, on-time delivery, order
competences, and so on. Yet if the company had to spell our every element in detail,
customers would face a huge questionnaire. We must also recognize that two customers
can report being “ highly satisfied” for different reasons. One may be easily satisfied
most of the time and the other might he hared to pleasure but was pleased on this
occasion.

OBSERVATIONS ON CUSTOMER SATISFACTION:

Customer satisfaction will be lower in industries where the industry offers a

homogeneous product to a heterogeneous market. On the other hand, industries that
supply a high- quality homogeneous product to a homogeneous market will register
high satisfaction.

Customer satisfaction is lower in industries where repeat buyers face high

switching costs. They have to buy from the supplier even though their satisfaction is
low.
Industries which depend upon repeat business generally create a higher level of
customer satisfaction. As a company increases its market share, customer satisfaction
can fall. This is because more customers with heterogeneous demands are drawn into
buying a fairly homogeneous product.
DELIVERING CUSTOMER VALUE AND SATISFACTION:

Given the importance of customer value and satisfaction, what does it take to
produce and deliver it? To answer this, we need to introduce the concepts of a value
chain and value-delivery systems.

VALUE CHAIN:

New product realization process: all the activities involved in identifying,

researching, developing, and successfully laughing new products with speed, high
quality, and target cost attainment. Inventory management process: all the activities
involved in developing and managing the right inventory locations of raw materials,
semi finished materials, and finished goods so that adequate supplies are available
while avoiding the costs of high overstocks.

Order-to-remittance process: all the activities involved in receiving orders,

approving them, shipping the goods on time, and collecting payment.

Customer service process: all the activities involved in receiving orders,

approving them, shipping the goods on time, and collecting payment.

Customer service process: all the activities involved in making it easy for
customers to reach the right parties within the company and receive quick and
satisfactory service, answers, and resolutions of problems.
RETAINING CUSTOMERS:

Companies are not only seeking to improve their relations with their partners in
the supply chain. Today they are intent on developing stronger bonds and loyalty with
their ultimate customers. In the past, many alternative suppliers were just as deficient in
quality and service, or the market was growing so facts that the company did not worry
about fully satisfying its customers. The company could lose 100 customers a week and
gain another 100 customers and consider its sales to be satisfactory. But this is a
condition of high customer churn and it involves a higher cost than if the company
retained all 100 customers and acquired no new ones. Such a company is operating on a
“leaky bucket” theory of its business, namely that there will always be enough
customers to replace the defecting ones.

METHODS OF TRACKING CUSTOMER SATISFACTION

A company’s tools for tracking and measuring customer satisfaction range from
the primitive to the sophisticated. Companies use the following methods to measure
how much customer satisfaction they are creating.

COMPLAINT AND SUGGESTIONS SYTEMS

A consumer-centered organization would make it easy for its consumer to deliver

suggestions and companies with many good ideas and enable them to act more rapidly
to resolve problems.

CUSTOMER SATISFACTION SURVEYS

A company must not conclude that it can get a full picture of customer
satisfaction and dissatisfaction by simply running a complaint and suggestion system
consumer may feel stupid, or that no remedy will be offered. Most consumers will buy
less or switch rather tan complain. The result is that the company as needlessly lost
consumers.
 Therefore, companies cannot use complaint levels as a measure of consumer
satisfaction. Responsive companies obtain as direct measure of customer satisfaction
by conducting periodic surveys. They send questionnaires or make telephone calls to
random sample to their recent consumers to find all how they feel about various aspects
of the company performance. They will also solicit buyers views on their competitors
performance.

Consumer’s satisfaction can be measured in a number of ways. It can be

measured directly by asking. “Indicate how stratified you are with service X on the
following scale ; highly dissatisfied, indifferent, satisfied, highly satisfied, (directly
reported satisfaction) respondents can be asked as well to rate how much they expected
of a certain attribute and also how much they experienced (derived dissatisfaction).
Still another method is to ask respondents to list any problems they have had with the
offer and to list any improvements they could suggest (problem analysis) finally,
companies could ask respondents to rate various elements of the offer in terms of the
importance of each element and how well the organiza5tion performed each element
(importance performance ratings). This last method helps the company to know it is
under performing on relatively unimportant elements. While collecting consumers
satisfaction data, it would also be useful to ask additional questions to measure
consumers repurchase intention. This will normally be high, if the customer
satisfaction is high. A highly positive word of month score indicates that the company
is producing high consumer satisfaction.

GHOST SHOPPING

Another useful way to gather a picture of customer satisfaction is to hire persons to

pose as potential buyers to report their findings on strong and weak points they
experienced in buying the companies and competitors products. These ghost shoppers
can even pose certain problem to test whether the company’s sales personnel handle the
situation well.
LOST CONSUMER ANALYSIS

Companies should contact consumers who have stopped buying or two have
switched to another supplier to learn why this happened. They mount a through effort
to learn where they failed – is their price too high, their service deficient, their products
unreliable and so on.

OBSERVATIONS ON CUSTOMER SATISFACTION

The measured value of industrial output is not necessarily a measure of customer

satisfaction with that output. Here are some of Professor fornells’ findings on the
industrial level;

• Customer satisfaction will be lower in industries where the industry offers a

homogeneous product to a heterogeneous market. On the other hand, industries
that supply a high quantity homogeneous product to a heterogeneous market
will register high satisfaction.

• Customer satisfaction is lower in industries where repeat buyers force high

switching costs. They have to buy from the supplier even thought their
satisfaction is low.

• Industries, which depend upon repeat business generally, create a high level of
consumer satisfaction.

• As a company increases its market share, customer satisfaction can fall. This is
because more consumers with heterogeneous demands are drawn into buying a
fairly homogeneous product.
CHAPTER III - INDUSTRY PROFILE
FINANCIAL MARKETS

Finance is the pre-requisite for modern business and financial institutions play a vital

role in the economic system. It is through financial markets and institutions that the

financial system of an economy works. Financial markets refer to the institutional

arrangements for dealing in financial assets and credit instruments of different types

such as currency, cheques, bank deposits, bills, bonds, equities, etc.

Financial market is a broad term describing any marketplace where buyers and sellers

participate in the trade of assets such as equities, bonds, currencies and derivatives.

They are typically defined by having transparent pricing, basic regulations on trading,

costs and fees and market forces determining the prices of securities that trade.

Generally, there is no specific place or location to indicate a financial market. Wherever

a financial transaction takes place, it is deemed to have taken place in the financial

market. Hence financial markets are pervasive in nature since financial transactions are

themselves very pervasive throughout the economic system. For instance, issue of

equity shares, granting of loan by term lending institutions, deposit of money into a

bank, purchase of debentures, sale of shares and so on.

In a nutshell, financial markets are the credit markets catering to the various needs of

the individuals, firms and institutions by facilitating buying and selling of financial

assets, claims and services.

CLASSIFICATION OF FINANCIAL MARKETS

Financial markets

Organized markets Unorganized markets

Money Lenders,
Capital Markets Money Markets
Indigenuos Bankers

Industrial Securities
Call Money Market
Market

Commercial Bill
Primary Market
Market

Secondary market Treasury Bill Market

Government
Securities Market

Long-term loan
market
Capital Market

The capital market is a market for financial assets which have a long or indefinite

maturity. Generally, it deals with long term securities which have a period of above one

year. In the widest sense, it consists of a series of channels through which the savings

of the community are made available for industrial and commercial enterprises and

public authorities. As a whole, capital market facilitates raising of capital.

The major functions performed by a capital market are:

1. Mobilization of financial resources on a nation-wide scale.

2. Securing the foreign capital and know-how to fill up deficit in the required

resources for economic growth at a faster rate.

3. Effective allocation of the mobilized financial resources, by directing the same

to projects yielding highest yield or to the projects needed to promote balanced

economic development.

Capital market consists of primary market and secondary market.

Primary market: Primary market is a market for new issues or new financial claims.

Hence it is also called as New Issue Market. It basically deals with those securities

which are issued to the public for the first time. The market, therefore, makes available

a new block of securities for public subscription. In other words, it deals with raising of

fresh capital by companies either for cash or for consideration other than cash. The best

example could be Initial Public Offering (IPO) where a firm offers shares to the public

for the first time.

Secondary market: Secondary market is a market where existing securities are traded.

In other words, securities which have already passed through new issue market are

traded in this market. Generally, such securities are quoted in the stock exchange and it

provides a continuous and regular market for buying and selling of securities. This

market consists of all stock exchanges recognized by the government of India.

Money Market

Money markets are the markets for short-term, highly liquid debt securities. Money

market securities are generally very safe investments which return relatively low

interest rate that is most appropriate for temporary cash storage or short term time

needs. It consists of a number of sub-markets which collectively constitute the money

market namely call money market, commercial bills market, acceptance market, and

Treasury bill market.

Derivatives Market

The derivatives market is the financial market for derivatives, financial instruments like

futures contracts or options, which are derived from other forms of assets. A derivative

is a security whose price is dependent upon or derived from one or more underlying

assets. The derivative itself is merely a contract between two or more parties. Its value

is determined by fluctuations in the underlying asset. The most common underlying

assets include stocks, bonds, commodities, currencies, interest rates and market

indexes. The important financial derivatives are the following:

• Forwards: Forwards are the oldest of all the derivatives. A forward contract

refers to an agreement between two parties to exchange an agreed quantity of an

asset for cash at a certain date in future at a predetermined price specified in that

agreement. The promised asset may be currency, commodity, instrument etc.

• Futures: Future contract is very similar to a forward contract in all respects

excepting the fact that it is completely a standardized one. It is nothing but a

standardized forward contract which is legally enforceable and always traded on

an organized exchange.

• Options: A financial derivative that represents a contract sold by one party

(option writer) to another party (option holder). The contract offers the buyer

the right, but not the obligation, to buy (call) or sell (put) a security or other

financial asset at an agreed-upon price (the strike price) during a certain period

of time or on a specific date (exercise date). Call options give the option to buy

at certain price, so the buyer would want the stock to go up. Put options give the

option to sell at a certain price, so the buyer would want the stock to go down.

• Swaps: It is yet another exciting trading instrument. Infact, it is the combination

of forwards by two counterparties. It is arranged to reap the benefits arising

from the fluctuations in the market – either currency market or interest rate

market or any other market for that matter.

Foreign Exchange Market

It is a market in which participants are able to buy, sell, exchange and speculate on

currencies. Foreign exchange markets are made up of banks, commercial companies,

central banks, investment management firms, hedge funds, and retail forex brokers and

investors. The forex market is considered to be the largest financial market in the

world. It is a worldwide decentralized over-the-counter financial market for the trading

of currencies. Because the currency markets are large and liquid, they are believed to be

the most efficient financial markets. It is important to realize that the foreign exchange

market is not a single exchange, but is constructed of a global network of computers

that connects participants from all parts of the world.

Commodities Market

It is a physical or virtual marketplace for buying, selling and trading raw or primary

products. For investors' purposes there are currently about 50 major commodity

markets worldwide that facilitate investment trade in nearly 100 primary

commodities. Commodities are split into two types: hard and soft commodities. Hard

commodities are typically natural resources that must be mined or extracted (gold,

rubber, oil, etc.), whereas soft commodities are agricultural products or livestock (corn,

wheat, coffee, sugar, soybeans, pork, etc.)

INDIAN FINANCIAL MARKETS

India Financial market is one of the oldest in the world and is considered to be the

fastest growing and best among all the markets of the emerging economies.

The history of Indian capital markets dates back 200 years toward the end of the

18th century when India was under the rule of the East India Company. The

development of the capital market in India concentrated around Mumbai where

no less than 200 to 250 securities brokers were active during the second half of

the 19th century.

The financial market in India today is more developed than many other sectors because

it was organized long before with the securities exchanges of Mumbai,

Ahmadabad and Kolkata were established as early as the 19th century.

By the early 1960s the total number of securities exchanges in India rose to eight,

including Mumbai, Ahmadabad and Kolkata apart from Madras, Kanpur, Delhi,

Bangalore and Pune. Today there are 21 regional securities exchanges in India

in addition to the centralized NSE (National Stock Exchange) and OTCEI (Over

the Counter Exchange of India).

However the stock markets in India remained stagnant due to stringent controls on the

market economy that allowed only a handful of monopolies to dominate their

respective sectors. The corporate sector wasn't allowed into many industry segments,

which were dominated by the state controlled public sector resulting in stagnation of
the economy right up to the early 1990s. Thereafter when the Indian economy began

liberalizing and the controls began to be dismantled or eased out; the securities markets

witnessed a flurry of IPO’s that were launched. This resulted in many new companies

across different industry segments to come up with newer products and services.

A remarkable feature of the growth of the Indian economy in recent years has been the

role played by its securities markets in assisting and fuelling that growth with money

rose within the economy. This was in marked contrast to the initial phase of growth in

many of the fast growing economies of East Asia that witnessed huge doses of FDI

(Foreign Direct Investment) spurring growth in their initial days of market decontrol.

During this phase in India much of the organized sector has been affected by high

growth as the financial markets played an all-inclusive role in sustaining financial

resource mobilization. Many PSUs (Public Sector Undertakings) that decided to offload

part of their equity were also helped by the well-organized securities market in India.

The launch of the NSE (National Stock Exchange) and the OTCEI (Over the Counter

Exchange of India) during the mid 1990s by the government of India was meant to

usher in an easier and more transparent form of trading in securities. The NSE was

conceived as the market for trading in the securities of companies from the large-scale

sector and the OTCEI for those from the small-scale sector. While the NSE has not just

done well to grow and evolve into the virtual backbone of capital markets in India the

OTCEI struggled and is yet to show any sign of growth and development. The

integration of IT into the capital market infrastructure has been particularly smooth in
India due to the country’s world class IT industry. This has pushed up the operational

efficiency of the Indian stock market to global standards and as a result the country has

been able to capitalize on its high growth and attract foreign capital like never before.

The regulating authority for capital markets in India is the SEBI (Securities and

Exchange Board of India). SEBI came into prominence in the 1990s after the capital

markets experienced some turbulence. It had to take drastic measures to plug many

loopholes that were exploited by certain market forces to advance their vested interests.

After this initial phase of struggle SEBI has grown in strength as the regulator of

India’s capital markets and as one of the country’s most important institutions.
FINANCIAL MARKET REGULATIONS

Regulations are an absolute necessity in the face of the growing importance of capital

markets throughout the world. The development of a market economy is dependent on

the development of the capital market. The regulation of a capital market involves the

regulation of securities; these rules enable the capital market to function more

efficiently and impartially.

A well regulated market has the potential to encourage additional investors to partake,

and contribute in, furthering the development of the economy. The chief capital market

regulatory authority is Securities and Exchange Board of India (SEBI).

SEBI is the regulator for the securities market in India. It is the apex body to develop

and regulate the stock market in India It was formed officially by the Government of

India in 1992 with SEBI Act 1992 being passed by the Indian Parliament. Chaired by C

B Bhave, SEBI is headquartered in the popular business district of Bandra-Kurla

complex in Mumbai, and has Northern, Eastern, Southern and Western regional offices

in New Delhi, Kolkata, Chennai and Ahmedabad. In place of Government Control, a

statutory and autonomous regulatory board with defined responsibilities, to cover both

development & regulation of the market, and independent powers has been set up.

The basic objectives of the Board were identified as:

• to protect the interests of investors in securities;

• to promote the development of Securities Market;
• to regulate the securities market and
 • For matters connected therewith or incidental thereto.

Since its inception SEBI has been working targeting the securities and is attending to

the fulfillment of its objectives with commendable zeal and dexterity. The

improvements in the securities markets like capitalization requirements, margining,

establishment of clearing corporations etc. reduced the risk of credit and also reduced

the market.

SEBI has introduced the comprehensive regulatory measures, prescribed registration

norms, the eligibility criteria, the code of obligations and the code of conduct for

different intermediaries like, bankers to issue, merchant bankers, brokers and sub-

brokers, registrars, portfolio managers, credit rating agencies, underwriters and others.

It has framed bye-laws, risk identification and risk management systems for Clearing

houses of stock exchanges, surveillance system etc. which has made dealing in

securities both safe and transparent to the end investor.

Another significant event is the approval of trading in stock indices (like S&P CNX

Nifty & Sensex) in 2000. A market Index is a convenient and effective product because

of the following reasons:

• It acts as a barometer for market behavior;

• It is used to benchmark portfolio performance;

• It is used in derivative instruments like index futures and index options;

• It can be used for passive fund management as in case of Index Funds.

Two broad approaches of SEBI is to integrate the securities market at the national level,

and also to diversify the trading products, so that there is an increase in number of

traders including banks, financial institutions, insurance companies, mutual funds,

primary dealers etc. to transact through the Exchanges. In this context the introduction

of derivatives trading through Indian Stock Exchanges permitted by SEBI in 2000 AD

is a real landmark.

SEBI has enjoyed success as a regulator by pushing systemic reforms aggressively and

successively (e.g. the quick movement towards making the markets electronic and

paperless rolling settlement on T+2 bases). SEBI has been active in setting up the

regulations as required under law.

STOCK EXCHANGES IN INDIA

Stock Exchanges are an organized marketplace, either corporation or mutual

organization, where members of the organization gather to trade company stocks or

other securities. The members may act either as agents for their customers, or as

principals for their own accounts.

As per the Securities Contracts Regulation Act, 1956 a stock exchange is an

association, organization or body of individuals whether incorporated or not,

established for the purpose of assisting, regulating and controlling business in buying,

selling and dealing in securities.

Stock exchanges facilitate for the issue and redemption of securities and other financial

instruments including the payment of income and dividends. The record keeping is

central but trade is linked to such physical place because modern markets are

computerized. The trade on an exchange is only by members and stock broker do have

a seat on the exchange.

List of Stock Exchanges in India

Bombay Stock Exchange

National Stock Exchange 19. Uttar Pradesh
OTC Exchange of India 20. Vadodara
Regional Stock Exchanges
1. Ahmedabad
2. Bangalore
3. Bhubaneswar
4. Calcutta
5. Cochin
6. Coimbatore
7. Delhi
8. Guwahati
9. Hyderabad
10. Jaipur
11. Ludhiana
12. Madhya Pradesh
13. Madras
14. Magadh
15. Mangalore
16. Meerut
17. Pune
18. Saurashtra Kutch
 BOMBAY STOCK EXCHANGE

A very common name for all traders in the stock market, BSE, stands for Bombay

Stock Exchange. It is the oldest market not only in the country, but also in Asia. In

the early days, BSE was known as "The Native Share & Stock Brokers Association."

It was established in the year 1875 and became the first stock exchange in the country

to be recognized by the government. In 1956, BSE obtained a permanent recognition

from the Government of India under the Securities Contracts (Regulation) Act, 1956.

In the past and even now, it plays a pivotal role in the development of the country's

capital market. This is recognized worldwide and its index, SENSEX, is also tracked

worldwide. Earlier it was an Association of Persons (AOP), but now it is a

demutualised and corporatised entity incorporated under the provisions of the

Companies Act, 1956, pursuant to the BSE (Corporatisation and Demutualization)

Scheme, 2005 notified by the Securities and Exchange Board of India (SEBI).

BSE Vision

The vision of the Bombay Stock Exchange is to "Emerge as the premier Indian stock

exchange by establishing global benchmarks."

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BSE Management

Bombay Stock Exchange is managed professionally by Board of Directors. It

comprises of eminent professionals, representatives of Trading Members and the

Managing Director. The Board is an inclusive one and is shaped to benefit from the

market intermediaries participation.

The Board exercises complete control and formulates larger policy issues. The day-

to-day operations of BSE are managed by the Managing Director and its school of

professional as a management team.

BSE Network

The Exchange reaches physically to 417 cities and towns in the country. The

framework of it has been designed to safeguard market integrity and to operate with

transparency. It provides an efficient market for the trading in equity, debt

instruments and derivatives. Its online trading system, popularly known as BOLT, is a

proprietary system and it is BS 7799-2-2002 certified. The BOLT network was

expanded, nationwide, in 1997. The surveillance and clearing & settlement functions

of the Exchange are ISO 9001:2000 certified.

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BSE Facts

BSE as a brand is synonymous with capital markets in India. The BSE SENSEX is

the benchmark equity index that reflects the robustness of the economy and finance. It

was the –

• First in India to introduce Equity Derivatives

• First in India to launch a Free Float Index

• First in India to launch US$ version of BSE Sensex

• First in India to launch Exchange Enabled Internet Trading Platform

• First in India to obtain ISO certification for Surveillance, Clearing &

Settlement

• 'BSE On-Line Trading System’ (BOLT) has been awarded the globally

recognized the Information Security Management System standard

BS7799-2:2002.

• First to have an exclusive facility for financial training

• Moved from Open Outcry to Electronic Trading within just 50 days

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BSE with its long history of capital market development is fully geared to continue

its contributions to further the growth of the securities markets of the country, thus

helping India increases its sphere of influence in international financial markets.

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 NATIONAL STOCK EXCHANGE OF INDIA
LIMITED

The National Stock Exchange of India Limited has genesis in the report of the High

Powered Study Group on Establishment of New Stock Exchanges, which

recommended promotion of a National Stock Exchange by financial institutions (FI’s)

to provide access to investors from all across the country on an equal footing. Based

on the recommendations, NSE was promoted by leading Financial Institutions at the

behest of the Government of India and was incorporated in November 1992 as a tax-

paying company unlike other stock Exchange in the country.

On its recognition as a stock exchange under the Securities Contracts (Regulation)

Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debt Market

(WDM) segment in June 1994. The Capital Market (Equities) segment commenced

operations in November 1994 and operations in Derivatives segment commenced in

June 2000.

NSE GROUP

National Securities Clearing Corporation Ltd. (NSCCL)

It is a wholly owned subsidiary, which was incorporated in August 1995 and

commenced clearing operations in April 1996. It was formed to build confidence in

clearing and settlement of securities, to promote and maintain the short and consistent

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settlement cycles, to provide a counter-party risk guarantee and to operate a tight risk

containment system.

NSE.IT Ltd.

It is also a wholly owned subsidiary of NSE and is its IT arm. This arm of the NSE is

uniquely positioned to provide products, services and solutions for the securities

industry. NSE.IT primarily focuses on in the area of trading, broker front-end and

back-office, clearing and settlement, web-based, insurance, etc. Along with this, it

also provides consultancy and implementation services in Data Warehousing,

Business Continuity Plans, Site Maintenance and Backups, Stratus Mainframe

Facility Management, Real Time Market Analysis & Financial News.

India Index Services & Products Ltd. (IISL)

It is a joint venture between NSE and CRISIL Ltd. to provide a variety of indices and

index related services and products for the Indian Capital markets. It was set up in

May 1998. IISL has a consulting and licensing agreement with the Standard and

Poor's (S&P), world's leading provider of investible equity indices, for co-branding

equity indices.

National Securities Depository Ltd. (NSDL)

NSE joined hands with IDBI and UTI to promote dematerialization of securities. This

step was taken to solve problems related to trading in physical securities. It

commenced operations in November 1996.

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NSE Facts

• It uses satellite communication technology to energize participation from

around 400 cities in India.

• NSE can handle up to 1 million trades per day.

• It is one of the largest interactive VSAT based stock exchanges in the world.

• The NSE- network is the largest private wide area network in India and the

first extended C- Band VSAT network in the world.

• Presently more than 9000 users are trading on the real time-online NSE

application.

Today, NSE is one of the largest exchanges in the world and still forging ahead. At

NSE, we are constantly working towards creating a more transparent, vibrant and

innovative capital market.

OVER THE COUNTER EXCHANGE OF INDIA

OTCEI was incorporated in 1990 as a section 25 company under the companies Act

1956 and is recognized as a stock exchange under section 4 of the securities Contracts

Regulation Act, 1956. The exchange was set up to aid enterprising promotes in

raising finance for new projects in a cost effective manner and to provide investors

with a transparent and efficient mode of trading Modeled along the lines of the

NASDAQ market of USA, OTCEI introduced many novel concepts to the Indian

capital markets such as screen-based nationwide trading, sponsorship of companies,

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market making and scrip less trading. As a measure of success of these efforts, the

Exchange today has 115 listings and has assisted in providing capital for enterprises

that have gone on to build successful brands for themselves like VIP Advanta, Sonora

Tiles & Brilliant mineral water, etc.

Need for OTCEI:

Studies by NASSCOM, software technology parks of India, the venture capitals funds

and the government’s IT tasks Force, as well as rising interest in IT, Pharmaceutical,

Biotechnology and Media shares have repeatedly emphasized the need for a national

stock market for innovation and high growth companies.

Innovative companies are critical to developing economics like India, which is

undergoing a major technological revolution. With their abilities to generate

employment opportunities and contribute to the economy, it is essential that these

companies not only expand existing operations but also set up new units. The key

issue for these companies is raising timely, cost effective and long term capital to

sustain their operations and enhance growth. Such companies, particularly those that

have been in operation for a short time, are unable to raise funds through the

traditional financing methods, because they have not yet been evaluated by the

financial world.

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CHAPTER IV - COMPANY PROFILE

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 DURGA PRASAD & CO

Durga Prasad & Co is a leading Hyderabad-based financial services and

commodities operations company doing stock market operations in
National Stock Exchange, Bombay Stock Exchange (through Hyderabad
Stock Exchange), Hyderabad Stock Exchange and Multi Commodity
Exchange of India limited.

The company started in 1996 as a partnership firm, with a good network.

The company has more than 20 branches throughout Andhra Pradesh
today.

The company’s services include trading in

• Equities
• Derivatives
• Commodities
• Currency
• Mutual Funds
The company is located in Ameerpet, Hyderabad. The company’s
website is www.dpsec.com

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PRODUCTS & SERVICES

Equities

Durga Prasad & Co provided the prospect of researched investing to its clients, which

was hitherto restricted only to the institutions. Durga Prasad & Co leveraged

technology to bring the convenience of trading to the investor’s location of preference

(residence or office) through computerized access. Durga Prasad & Co made it

possible for clients to view transaction costs and ledger updates in real time. The

Company is among the few financial intermediaries in India to offer a complement of

online and offline broking. The Companies network of branches also allows

customers to place orders on phone or visit our branches for trading.

Commodities

Durga Prasad & Co’s extension into commodities trading reconciles its strategic

intent to emerge as a one stop solutions financial intermediary. Its experience in

securities broking has empowered it with requisite skills and technologies. The

Companies commodities business provides a contra-cyclical alternative to equities

broking. The Company was among the first to offer the facility of commodities

trading in India’s young commodities market (the MCX commenced operations in

2003). Average monthly turnover on the commodity exchanges increased from Rs

0.34 bn to Rs 20.02 bn.

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Insurance

An entry into this segment helped complete the client's product basket; concurrently,

it graduated the Company into a one stop retail financial solutions provider. To ensure

maximum reach to customers across India, it has employed a multi pronged approach

and reaches out to customers via our Network, Direct and Affiliate channels.

Mutual Funds

Durga Prasad & Co has made investing in Mutual funds and primary market so

effortless. Only registration is needed. No paperwork no queues and No

registration charges. Durga Prasad & Co offers a host of mutual fund choices

under one roof, backed by in-depth research and advice from research house and

tools configured as investor friendly.

Wealth Management

The key to achieving a successful Investment Portfolio is to have a carefully planned

financial strategy based on a thorough understanding of the client's investment

needs and risk appetite. The Private Wealth Management Team of financial

experts will recommend an appropriate financial strategy to effectively meet

customer’s investment requirements.

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Asset Management

Durga Prasad & Co is a leading pan-India mutual fund distribution house associated

with leading asset management companies. It operates primarily in the retail

segment leveraging its existing distribution network to reach prospective clients.

It has received the in-principle approval to set up a mutual fund.

Portfolio Management

Portfolio Management Service is a product wherein an equity investment portfolio is

created to suit the investment objectives of a client. Durga Prasad & Co invests

the client’s resources into stocks from different sectors, depending on client’s

risk-return profile. This service is particularly advisable for investors who cannot

afford to give time or don't have that expertise for day-to-day management of

their equity portfolio.

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 CHAPTER V

DATA ANALYSIS & INTERPRETATIONS

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 CHAPTER VI

FINDINGS, SUGGESTIONS & CONCLUSION

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FINDINGS

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SUGGESTIONS

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CONCLUSION

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 Customer’s Satisfaction In Durga Prasad & Co stock Broking Ltd

Customer Name:
Age:
Occupation:
Income:
Address:

1)For how long you are using this demat account in Durga Prasad & Co?

[ ]

a) 0-1 (years) b) 2-3 (years) c) 4-5(years) d) 5- above

2) Have you used any Demat before this? [

]

a) Yes b) No

3) Which company covers maximum satisfaction?

[ ]

a) Durga Prasad & Co b) sharekhan c) India ifoline d)

Indiabulls

4) Are you satisfied with the present service? [

]

a) Yes b) No

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5) Our services is good compared to other services? [
]

a) Yes b) No

6) What is Response of the Customer Care ?

[ ]

a) Good b) Bad c) Average

7) Is the Brokerage of the Durga Prasad & Co demat account Reasonable?

[ ]

a) Yes b) No

8) Which type of service you prefer offline or online? [

]

a) Offline b) Online

9) Are you satisfied with the Brokerage schemes and plan? [

]

a) Yes b) No

10) According to you which service best when compared? [

]

a) Durga Prasad b) sharekhan c) India infoline d) Indiabulls

11) Any problem has been occurred while using this Demat?
[ ]

a) Yes b) No

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12) Are you getting any benefits from other mobile when compared with
Durga Prasad Demat Account?
[ ]

a) Yes b) No

13) What type of Suggestions you give this for Durga Prasad?

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 BIBLIOGRAPHY

MARKETING MANAGEMENT : Phillip Kotler

MARKETING MANAGEMENT : V.S.Ramaswamy

BUSINESS RESEACH METHODOLOGY : C.R.Kothari

MARKETING A MANAGERIAL INTRODUCTION : J.C. GANDHI

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