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com

COMPANY PROFILE:
Sharekhan is one of the top retail brokerage houses in India with a strong online trading platform. The company provides equity based products (research, equities, derivatives, depository, margin funding, etc.). It has one of the largest networks in the country with 1200+ share shops in 400 cities and Indias premier online trading portal www.sharekhan.com. With their research expertise, customer commitment and superior technology, they provide investors with end-to-end solutions in investments. They provide trade execution services through multiple channels - an Internet platform, telephone and retail outlets. Sharekhan was established by Morakhia family in 1999-2000 and Morakhia family, continues to remain the largest shareholder. It is the retail broking arm of the Mumbai-based SSKI [SHRIPAL SHEWANTILAL KANTILAL ISWARNATH LIMITED] Group. SSKI which is established in 1930 is the parent company of Sharekhan ltd. With a legacy of more than 80 years in the stock markets, the SSKI group ventured into institutional broking and corporate finance over a decade ago. Presently SSKI is one of the leading players in institutional broking and corporate finance activities. Sharekhan offers its customers a wide range of equity related services including trade execution on BSE, NSE, and Derivatives. Depository services, online trading, Investment advice, Commodities, etc. Sharekhan Ltd. is a brokerage firm which is established on 8th February 2000 and now it is having all the rights of SSKI. The company was awarded the 2005 Most Preferred Stock Broking Brand by Awaaz Consumer Vote. It is first brokerage Company to go online. The Company's online trading and investment site - www.Sharekhan.com - was also launched on Feb 8, 2000. This site gives access to superior content and transaction facility to retail customers across the country. Known for its jargon-free, investor friendly language and high quality research, the content-rich and research oriented portal has stood out among its contemporaries because of its steadfast dedication to offering customers best-of-breed technology and superior market information. Sharekhan has one of the best states of art web portal providing fundamental and statistical information across equity, mutual funds and IPOs. One can surf across 5,500 companies for

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in-depth information, details

about more than 1,500 mutual fund schemes

and IPO data. One can also access other market related details such as board meetings, result announcements, FII transactions, buying/selling by mutual funds and much more. Sharekhan's management team is one of the strongest in the sector and has positioned Sharekhan to take advantage of the growing consumer demand for financial services products in India through investments in research, pan-Indian branch network and an outstanding technology platform. Further, Sharekhan's lineage and relationship with SSKI Group provide it a unique position to understand and leverage the growth of the financial services sector. We look forward to providing strategic counsel to Sharekhan's management as they continue their expansion for the benefit of all shareholders. SSKI Corporate Finance Private Limited (SSKI) is a leading India-based investment bank with strong research-driven focus. Their team members are widely respected for their commitment to transactions and their specialized knowledge in their areas of strength. The team has completed over US$5 billion worth of deals in the last 5 years - making it among the most significant players raising equity in the Indian market. SSKI, a veteran equities solutions company has over 8 decades of experience in the Indian stock markets. If we experience their language, presentation style, content or for that matter the online trading facility, we'll find a common thread; one that helps us make informed decisions and simplifies investing in stocks. The common thread of empowerment is what Sharekhan's all about. "Sharekhan has always believed in collaborating with like-minded Corporate into forming strategic associations for mutual benefit relationships" says Jaideep Arora, Director Sharekhan Limited. Sharekhan is also about focus. Sharekhan does not claim expertise in too many things. Sharekhan's expertise lies in stocks and that's what he talks about with authority. So when he says that investing in stocks should not be confused with trading in stocks or a portfoliobased strategy is better than betting on a single horse, it is something that is spoken with years of focused learning and experience in the stock markets. And these beliefs are reflected in everything Sharekhan does for us! Sharekhan is a part of the SSKI group, an Indian financial services power house, with strong presence in Retail equities Institutional equities Investment banking.

( Word Reader - Unregistered ) www.word-reader.com

In Ahmedabad, It is having centre at Navrangpura road, Ahmedabad.

the branch at Dynamic house, opp. Child care

hospital, Navrangpura road and over 40 franchisees in Ahmedabad. We have been given the

DIRECTORS:

MR. TARUN SHAH CEO- SHARE KHAN

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MR (OPERATION) OF THE COMPANY

SHANKAR

VAILAYA-

DIRECTOR

MR. JAIDEEP ARORA DIRECTOR (PRODUCT & TECHNOLOGY) OF THE COMPANY

OTHER DIRECTORS:

Mr. Baldev L Boolani Mrs. Meena S Jain Mr. Bhupendra T Shah Mr. Hasmukh Sheth

MISSION:
To educate and empower the individual investor to make better investment decisions through quality advice and superior service.

VISION:
To be the best retail brokering Brand in the retail business of stock market.

ACHIEVEMENTS OF SHAREKHAN:

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A wired company along Today, January 2004 edition.

with Reliance, Hll, Infosys, etc by Business

It was awarded Top Domestic Brokerage House four times by Euro and Asia money. It was Winner of Best Financial Website award.
Indias most preferred brokers within 5 years. CNBC Awaaz customers Award 2005.

STRATEGY:
The main strategies used in our training were as follow.

DATA CALLING In data calling we were provided data of mobile numbers and our job was to generate appointments. After that we were required to convert that appointment into closure. Apart from given data we also brought latest business directory. We called to different business people and tried to generate appointments. CALLED CALLING Called calling means to go at different corporate houses and to meet different

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People and to get immediate task Was to call them & to fix appointment. REFERENCE

their visiting card by it we get lead and our

Another important strategy was to use our reference means our family, friends, relatives etc. In marketing or selling we can never neglect references & they always play a major role. STALL ACTIVITY Stall activity means to make stall at public place. Then our job was to give them a newspaper with brochures and to take their name and contact number. So it was another process of generating lead. After that our job was to follow

up and try for appointment and closure.

OBJECTIVES AND SCOPE OF THE STUDY

1) To visit different broking companies to know about their products. 2) To know about the promotional schemes and activities being done by the firms of the same industry 3) To get information from web, magazines and journals. 4) To aware the clients about the services of the Share khan. 5) To compare the services of Share khan with its competitors. 6) To conduct a survey and recommending Sharekhan on weak areas on the basis of findings of the study. The Broad objective of the project is to know about the competitors strategy to make clients and how to retain them, which helps Sharekhan in formulating plans and policies.This will help in convincing the customers about how Share khan services out score there rivals. And how in future they will be benefited from the services offered by Share khan This also helps to multiply the clients by getting the further references. By this we are able to make a chain of the customers, which expands as we satisfy there needs.

CHAPTER 1: INTRODUCTION OF INDIAN CAPITAL MARKET

1.1 BACKGROUND OF STOCK EXCHANGE IN INDIA The emergence of stock market can be traced back to 1830. In Bombay, business passed in the shares of banks like the commercial bank, the chartered mercantile bank, the chartered bank, the oriental bank and the old bank of Bombay and shares of cotton presses. In Calcutta, Englishman reported the quotations of 4%, 5%, and 6% loans of East India Company as well as the shares of the bank of Bengal in 1836. This list was a further broadened in 1839 when the Calcutta newspaper printed the quotations of banks like union bank and Agra bank. It also quoted the prices of business ventures like the Bengal bonded warehouse, the Docking Company and the storm tug company. The first company that issued shares is considered to be the Northern-European copper mining enterprise Stora Kopparberg, in the 13th century.

Between 1840 and 1850, only half a dozen brokers existed for the limited business. But during the share mania of 1860-65, the number of brokers increased considerably. By 1860, the number of brokers was about 60 and during the exciting period of the American Civil war, their number increased to about 200 to 250. The end of American Civil war brought disillusionment and many failures and the brokers decreased in number and prosperity. It was in those troublesome times between 1868 and 1875 that brokers organized an informal association and finally as recited in the Indenture constituting the Articles of Association of the Exchange. On or about 9th day of July,1875, a few native brokers doing brokerage business in shares and stocks resolved upon forming in Bombay an association for protecting the character, status and interest of native share and stock brokers and providing a hall or building for the use of the members of such association.

As a meeting held in the broker Hall on the 5th day of February, 1887, it was resolved to execute a formal deal of association and to constitute the first managing committee and to appoint the first trustees. Accordingly, the Articles of Association of the Exchange and the Stock Exchange was formally established in Bombay on 3rd day of December, 1887. The Association is now known as The Stock Exchange. The entrance fee for new member was Re.1 and there were 318 members on the list, when the exchange was constituted. The numbers of members increased to 333 in 1896, 362 in 1916and 478 in 1920 and the entrance fee was raised to Rs.5 in 1877, Rs.1000 in 1896, Rs.2500 in 1916 and Rs. 48,000 in 1920. At present there are 23 recognized stock exchanges with about 6000 stock brokers. Organization structure of stock exchange varies 14 stock exchanges are organized as public limited companies, 6 as companies limited by guarantee and 3 are non-profit voluntary organization. Of the total of 23, only 9 stock exchanges have been permanent recognition. Others have to seek recognition on annual basis. These exchange do not work of its own, rather, these are run by some persons and with the help of some persons and institution. All these are down as functionaries on stock exchange. These are 1. Stockbrokers 2. sub-broker 3. market makers 4. Portfolio consultants etc.

1.) Stockbrokers Stock brokers are the members of stock exchanges. These are the persons who buy, sell or deal in securities. A certificate of registration from SEBI is mandatory to act as a broker. SEBI can impose

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certain conditions while granting the certificate of registrations. It is obligatory for the person to abide by the rules, regulations and the buy-law. Stock brokers are commission broker, floor broker, arbitrageur etc. Detail of registered brokers Total no. of registered brokers as on 31.03.2010 12000

Total no. of subbrokers as on 31.03.2010 26,000

2.) Sub-broker A sub-broker acts as agent of stock broker. He is not a member of a stock exchange. He assists the investors in buying, selling or dealing in securities through stockbroker. The broker and sub-broker should enter into an agreement in which obligations of both should be specified. Sub-broker must be registered SEBI for a dealing in securities. For getting registered with SEBI, he must fulfill certain rules and regulation.

3.) Market Makers Market maker is a designated specialist in the specified securities. They make both bid and offer at the same time. A market maker has to abide by bye-laws, rules regulations of the concerned stock exchange. He is exempt from the margin requirements. As per the listing requirements, a company where the paid-up capital is Rs. 3 crore but not more than Rs. 5 crore and having a commercial

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operation for less than 2 years should appoint a market maker at the time of issue of securities. 4.) Portfolio consultants A combination of securities such as stocks, bonds and money market instruments is collectively called as portfolio. Whereas the portfolio consultants are the persons, firms or companies who advise, direct or undertake the management or administration of securities or funds on behalf of their clients. 1.2 ROLE OF STOCK EXCHANGE IN INDIA 1. Raising capital for business. 2. Mobilizing saving for investment. 3. Facilitate Company growth. 4. Redistribution of wealth. 5. Corporate governance. 6. Create investment opportunities for small investors. 7. Government raises capital for development projects.

Ownership The owners and financial backers of a company may want additional capital to invest in new projects within the company. If they were to sell the company it would represent a loss of control over the company. Alternatively, by selling shares, they can sell part or all of the company to many part-owners. The purchase of one share entitles the owner of that share to literally share in the ownership of the company, including the right to a fraction of the assets of the company, a fraction of the decisionmaking power, and potentially a fraction of the profits, which the company may issue as dividends. However, the original owners of the company often still have control of the company, and can use the money paid for the shares to grow the company. In the common case, where there are thousands of

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shareholders, it is impractical to have all of them making the daily decisions required in the running of a company. Thus, the shareholders will use their shares as votes in the election of members of the board of directors of the company. However, the choices are usually nominated by insiders or the board of the directors themselves, which over time has led to most of the top executives being on each other's boards. Each share constitutes one vote (except in a cooperative society where every member gets one vote regardless of the number of shares they hold). Thus, if one shareholder owns more than half the shares, they can out-vote everyone else, and thus have control of the company.

Shareholder rights Although owning 51% of shares does mean that you own 51% of the company and that you have 51% of the votes, the company is considered a legal person, thus it owns all its assets, (buildings, equipment, materials etc) itself. A shareholder has no right to these without the company's permission, even if that shareholder owns almost all the shares. This is important in areas such as insurance, which must be in the name of the company not the main shareholder. In most countries, including the United States, boards of directors and company managers have a fiduciary responsibility to run the company in the interests of its stockholders. Nonetheless, as Martin Whitman writes:

"...it can safely be stated that there does not exist any publicly traded company where management works exclusively in the best interests of OPMI [Outside Passive Minority Investor] stockholders. Instead, there are both "communities of interest" and "conflicts of interest" between stockholders (principal) and management (agent). This conflict is referred to as the principal/agent problem. It would be naive to think that any management would forego management

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compensation, and management entrenchment, just because some of these management privileges might be perceived as giving rise to a conflict of interest with OPMIs." [Whitman, 2004, 5]

Even though the board of directors run the company, the shareholder has some impact on the company's policy, as the shareholders elect the board of directors. Each shareholder has a percentage of votes equal to the percentage of shares he owns. So as long as the shareholders agree that the management (agent) are performing poorly they can elect a new board of directors which can then hire a new management team. Owning shares does not mean responsibility for liabilities. If a company goes broke and has to default on loans, the shareholders are not liable in any way. However, all money obtained by converting assets into cash will be used to repay loans, so that shareholders cannot receive any money until creditors have been paid.

Means of financing Financing a company through the sale of stock in a company is known as equity financing. Alternatively debt financing (for example issuing bonds) can be done to avoid giving up shares of ownership of the company.

Trading Shares of stock are usually traded on a stock exchange, where people and organizations may buy and sell shares in a wide range of companies. A given company will usually only trade its shares in one market, and it is said to be quoted, or listed, on that stock exchange. However, some large, multinational corporations are listed on more than one exchange. They are referred to as inter-listed shares.

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Buying There are various methods of buying and financing stocks. The most common means is through a stock broker. Whether they are a full service or discount broker, they are all doing one thing arranging the transfer of stock from a seller to a buyer. Most of the trades are actually done through brokers listed with a stock exchange such as the New York Stock Exchange. There are many different stock brokers to choose from such as full service brokers or discount brokers. The full service brokers usually charge more per trade, but give investment advice or more personal service; the discount brokers offer little or no investment advice but charge less for trades. Another type of broker would be a bank or credit union that may have a deal set up with either a full service or discount broker. There are other ways of buying stock besides through a broker. One way is directly from the company itself. If at least one share is owned, most companies will allow the purchase of shares directly from the company through their investor's relations departments. However, the initial share of stock in the company will have to be obtained through a regular stock broker. Another way to buy stock in companies is through Direct Public Offerings which are usually sold by the company itself. A direct public offering is an initial public offering a company in which the stock is purchased directly from the company, usually without the aid of brokers. When it comes to financing a purchase of stocks there are two ways: purchasing stock with money that is currently in the buyers ownership or bybuying stock on margin. Buying stock on margin means buying stock with money borrowed against the stocks in the same account. These stocks, or collateral, guarantee that the buyer can repay the loan; otherwise, the stockbroker has the right to sell the stocks (collateral) to repay the borrowed money. He can sell if the share price drops below the margin requirement, at least 50 percent of the value of the stocks in the

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account. Buying on margin works the same way as borrowing money to buy a car or a house using the car or house as collateral. Moreover, borrowing is not free; the broker usually charges you 8-10 percent interest.

Selling Selling stock in a company goes through many of the same procedures as buying stock. Generally, the investor wants to buy low and sell high, if not in that order; however, this is not how it always ends up. Sometimes, the investor will cut their losses and claim a loss. As with buying a stock, there is a transaction fee for the broker's efforts in arranging the transfer of stock from a seller to a buyer. This fee can be high or low depending on if it is a full service or discount broker. After the transaction has been made, the seller is then entitled to all of the money. An important part of selling is keeping track of the earnings. It is important to remember that upon selling the stock, in jurisdictions that have them, capital gains taxes will have to be paid on the additional proceeds, if any, that are in excess of the cost basis.

Technologys on Trading Stock trading has evolved tremendously. Since the very first Initial Public Offering (IPO) in the 13th century, owning shares of a company has been a very attractive incentive. Even though the origins of stock trading go back to the 13th century, the market as we know it today did not catch on strongly until the late 1800s.

Co-production between technology and society has led the push for effective and efficient ways of trading. Technology has allowed the stock market to grow tremendously, and all the while society has

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encouraged the growth. Within seconds of an order for a stock, the transaction can now take place. Most of the recent advancements with the trading have been due to the Internet. The Internet has allowed online trading. In contrast to the past where only those who could afford the expensive stock brokers, anyone who wishes to be active in the stock market can now do so at a very low cost per transaction. Trading can even be done through Computer-Mediated Communication (CMC) use of mobile devices such as hand computers and cellular phones. These advances in technology have made day trading possible. The stock market has grown so that some argue that it represents a country's economy. This growth has been enjoyed largely to the credibility and reputation that the stock market has earned.

Types of shares There are several types of shares, including common stock, preferred stock, treasury stock, and dual class shares. Preferred stock, sometimes called preference shares, have priority over common stock in the distribution of dividends and assets, and sometime have enhanced voting rights such as the ability to veto mergers or acquistions or the right of first refusal when new shares are issued (i.e. the holder of the preferred stock can buy as much as they want before the stock is offered to others). A dual class equity structure has several classes of shares (for example Class A, Class B, and Class C) each with its own advantages and disadvantages. Treasury stock are shares that have been bought back from the public.

Derivatives A stock option is the right (or obligation) to buy or sell stock in the future at a fixed price. Stock options are often part of the package of executive compensation offered to key executives. Some companies extend stock options to all (or nearly all) of their employees. This was especially true during

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the dot-com boom of the mid- to late- 1990s, in which the major compensation of many employees was in the increase in value of the stock options they held, rather than their wages or salary. Some employees at dot-com companies became millionaires on their stock options. This is still amajor method of compensation for CEOs. The theory behind granting stock options to executives and employees of a corporation is that, since their financial fortunes are tied to the stock price of the company, they will be motivated to increase the value of the stock over time.

Primary market (IPOs) In financial markets, an initial public offering (IPO) is the first sale of a company's common shares to public investors. The company will usually issue only primary shares, but may also sell secondary shares. Typically, a company will hire an investment banker to underwrite the offering and a corporate lawyer to assist in the drafting of the prospectus. The sale of stock is regulated by authorities of financial supervision and where relevant by a stock exchange. It is usually a requirement that disclosure of the financial situation and prospects of a company be made to prospective investors. The Federal Securities and Exchange Commission (SEC) regulates the securities markets of the United States and, by extension, the legal procedures governing IPOs. The law governing IPOs in the United States includes primarily the Securities Act of 1933, the regulations issued by the SEC, and the various state "Blue Sky Laws".

Secondary market The secondary market (also called "aftermarket") is the financial market for trading of securities that have already been issued in its initial private or public offering. Stock exchanges are examples of secondary markets. Alternatively, secondary market can refer to the market for any kind of used goods.

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Listing Of Securities

Listing means admission of the securities to dealings on a recognized stock exchange. The securities may be of any public limited company, Central or State Government, quasi-governmental and other financial institutions/corporations, municipalities, etc. The objectives of listing are mainly to: Provide liquidity to securities; Mobilize savings for economic development; Protect interest of investors by ensuring full disclosures. The Exchange has a separate Listing Department to grant approval for listing of securities of companies in accordance with the provisions of the Securities Contracts (Regulation) Act, 1956, Securities Contracts (Regulation) Rules, 1957, Companies Act, 1956, Guidelines issued by SEBI and Rules, Bye-laws and Regulations of the Exchange. A company intending to have its securities listed on the Exchange has to comply with the listing requirements prescribed by the Exchange. SHAREKHAN LIMITED

[I] MINIMUM LISTING REQUIREMENTS FOR NEW COMPANIES

(A) Minimum Capital: 1. New companies can be listed on the Exchange, if their issued & subscribed equity capital after the public issue is Rs.10 Crores. In addition to this the issuer company should have a post issue net worth

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(equity capital + free reserves excluding revaluation reserve) of Rs.20 Crores.

2. For new companies in high technology (i.e. information technology, internet, ecommerce, telecommunication, media including advertisement, entertainment etc.) the following criteria will be applicable regarding threshold limit: i. The total income/sales from the main activity, which should be in the field of information technology, internet, e-commerce, telecommunication, media including advertisement, entertainment etc.should not be less than 75% of the total income during the two immediately preceding years as certified by the Auditors of the company. ii. The minimum post-issue paid-up equity capital should be Rs.5 Crores. iii. The minimum market capitalization should be Rs.50 Crores. (The capitalization will be calculated by multiplying the post issue subscribed number of equity shares with the Issue price). iv. Post issue net worth (equity capital + free reserves excluding revaluation reserve) of Rs.20 Crores.

(B) Minimum Public offer: As per Rule 19(2) (b) of the Securities Contracts (Regulation) Rules, 1957, securities of a company can be listed on a Stock Exchange only when at least 25% of each class or kind of securities is offered to the public for subscription. In case of IPOs by unlisted companies in the IT& entertainment sector, at least 10% of the securities issued by the company may be offered to the public subject to the following: Minimum 20 lac securities are offered to the public (excluding reservation, firm allotment and promoters contribution) The size of the offer to the public is minimum 50 cores. For this purpose, the term "offered to the

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public" means only the portion offered to the public and does not include reservations of securities on firm or competitive basis. SEBI may, however, relax this condition on the basis of recommendations of stock exchange(s), only in respect of a Government company defined under Section 617 of the Companies Act, 1956. 1.3 INTRODUCTION OF THE COMPANY-SHAREKHAN

Sharekhan is one of the leading retail brokerage of Citi Venture which is running successfully since February 2010 in the country. Earlier it was the retail broking arm of the Mumbai-based SSKI Group, which has over eight decades of experience in the stock broking business. Sharekhan offers its customers a wide range of equity related services including trade execution on BSE, NSE, Derivatives, depository services, online trading, investment advice etc. Earlier with a legacy of more than 80 years in the stock markets, the SSKI group ventured into institutional broking and corporate finance 18 years ago. SSKI is one of the leading players in institutional broking and corporate finance activities. SSKI holds a sizeable portion of the market in each of these segments. SSKIs institutional broking arm accounts for 7% of the market for Foreign Institutional portfolio investment and 5% of all Domestic Institutional portfolio investment in the country. It has 60 institutional clients spread over India, Far East,UK and US. Foreign Institutional Investors generate about 65% of the organizations revenue, with a daily turnover of over US$ 2 million. The content-rich and research oriented portal has stood out among its contemporaries because of its steadfast dedication to offering customers best-of-breed technology and superior market information. The objective has been to let customers make informed decisions and to simplify the process of investing in stocks.

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1.4 WORK STRUCTURE OF SHAREKHAN

Sharekhan has always believed in investing in technology to build its business. The company has used some of the best-known names in the IT industry, like Sun Microsystems, Oracle, Microsoft, Cambridge Technologies, Nexgenix, Vignette, Verisign Financial Technologies India Ltd, Spider Software Pvt Ltd. to build its trading engine and content. The Citi Venture holds a majority stake in the company. HSBC, Intel & Carlyle are the other investors. On April 17, 2002 Sharekhan launched Speed Trade and after sometime its updated version Trade Tiger which are net-based executable application that emulates the broker terminals along with host of other information relevant to the Day Traders. This was for the first time that a net-based trading station of this caliber was offered to the traders. In the last six months Speed Trade has become a de facto standard for the Day Trading community over the net. Sharekhans ground network includes over 700+ Shareshops in 130+ cities in India. The firms online trading and investment site - www.sharekhan.com - was launched on Feb 8, 2000. The site gives access to superior content and transaction facility to retail customers across the country. Known for its jargon-free, investor friendly language and high quality research, the site has a registered base of over 3 Lacs customers. The number of trading members currently stands at over 11 Lacs. Sharekhan alone accounts for 27 per cent of the volumes traded online. The Corporate Finance section has a list of very prestigious clients and has many firsts to its credit, in

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terms of the size of deal, sector tapped etc. The group has placed over US$ 5 billion in private equity deals. Some of the clients include BPL Cellular Holding, Gujarat Pipavav, Essar, Hutchison, Planetasia, and Shoppers Stop. Finally, Sharekhan shifted hands and Citi venture get holds on it

CHAPTER 2: PRODUCTS OFFERED BY SHAREKHAN

2.1 CLASSIC ACCOUNT This account enables us to buy and sell shares through our website We get features like a) Streaming quotes (using the applet based system) it means we can see the rates of different scrips that refresh automatically. Here we can see the rates of equity & derivatives as well. b) Multiple watchlists i.e. We can save four folders which can save 32 scrips in a single folder. c) Integrated Banking, Demat and Digital contracts i.e. It facilitates online fund transfer from bank to trading a/c and vice-versa. We have tie up with 11 banks through which we can transfer funds online 7) ICICI BANK 8) HDFC BANK 9) IDBI BANK 10) AXIS BANK 11) YES BANK 12) CITI BANK 13) BANK OF INDIA 14) UNION BANK OF INDIA 15) ORIENTAL BANK OF COMMERCE

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16) DEUTSHE BANK 17) INDUSIND BANK Demat refers to electronic encryption of shares. In a layman term it refers to an account where we keep our shares in an electronic form. Digital contract note includes information about the transaction made by a person. It includes buying/selling details of stocks and taxes paid.

d) Instant credit and transfer e) Real-time portfolio tracking with price alerts and ofcourse the assurance of secure transactions. 2.2 DIAL-N-TRADE Free with your Sharekhan Trading Account. The Dial-n- Trade service enables you to place orders for buying/selling through your phone. The phone nos. for Dial-n-Trade are 1800-22-7050 or 1800-2707500 or 30307600). for using this facility, T-pin ID's and Phone ID's are given after there account opening in your welcome along with your online passwords for trading. After dialing the number,authentication will be done and you will be directed to a telebroker who will buy and sell for you. Three dedicated numbers for placing your orders with your cellphone or landline as explained above toll free no.s are 1800-22-7050 and 1800-270-7500. For people with difficulty in accessing the toll free number, we also have a reliance number (your local STD code ) 30307600 which is charged as at local number Features: 1) Simple and secure interactive voice response based system for authentication 2) No waiting time. Enter your T PIN to be transferred to our telebrokers 3) You also get the trusted, professional advice of our telebroker.

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4) After hours order placement facility between 8.30 am and 9 am. 5) Reliable Service where ever you are.

2.3 TRADE TIGER Trade Tiger is one of the best product offer by Sharekhan for online Trading. This is our software based product where we can access live streaming quotes, access all trading calls , advance charting features,create your own technical rules for trading and a single trading screen for all segments. Features of Trade Tiger 1) A single platform for multiple exchange BSE & NSE (Cash and F&O), MCX,NCDEX Mutual funds and IPO's 2) Multiple market watch available on single screen. 3)Multiple charts with Tick by Tick Intraday and End of the day charting powered with various studies. 4)Apply studies such as vertical, horizontal, trend, retracement & free lines. 5)User can save his own defined screen as well as graph template, that is, saving the layout for future use. 6)User-defined alert settings on an input stock price trigger. 7)Tools available to gauge market such as tick query, ticker, market summary, action watch, option premium calculation, span calculator. 8)Shortcut key for fast access to order placements & reports. 9)Online fund transfer activated with 12 banks.

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4.4 PORTFOLIO MANAGEMENT SERVICES This product is particularly for HNI's (High networth individual) who don't have time to manage their money but have the potential to make investments above 10 lakhs. We have two products in PMS a) Pro-Prime b) Pro-Tech a)Pro-Prime: Product offerings The balanced schemes: ideal for investors looking at steady and superior returns with low to medium risk appetite. This portfolio consists of a blend of quality bluechip and growth stocks ensuring a balanced portfolio with relatively medium risk profile. The portfolio will mostly have large capitalization stocks based on sectors & themes who have medium to long term growth potential. Product Approach Investment are based on 3 tenets: i) consistent, steady and sustainable returns ii) margin of safety iii) low volatility Product Characteristics bottom up stock selection

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 in-depth, independent fundamental research high quality companies with relatively large capitalization disciplined valuation approach applying multiple valuation measures medium to long term vision resulting in low portfolio turnover

Product Details minimum investment: Rs 10 lakh lock in period: 6 months Reporting: online access to portfolio holdings, quarterly reporting of portfolio holdings/transactions Charges: 2.5% per annum AMC charged every quarter, 0.5% brokerage 20% profit sharing after 15% hurdle is crossed chargeable at the end of the fiscal year. Profit withdrawal in multiples of 25000 after lock in period b)Pro-Tech : Protech uses the knowledge of technical analysis and the power of derivatives market to identify trading opportunities in the market. The Protech line of products are designed around various risk/rewards/volatility profiles for different kinds of investment needs.

Protech is based on: i) long short strategies ii) focus on absolute returns iii) timing the market Product Approach

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 superior performance can be achieved through sheer market timing, by picking stocks/nifty before the infection points in their trading cycles. Linear returns are possible from having sell market positions in downtrends and by using the options market to change the portfolio beta Money management rules will be in place

Product Characteristics

Using swing based index-trading systems, stop and reverse, trend following and momentum trading techniques

nifty based products for low impact cost and low product volatility both long and short strategies to earn returns even in falling markets

Product Details minimum investment: Rs 10 lakhs lock in: 6 months AMC fees: 0% Reporting: Monthly reporting of transactions, brokerage 0.05% for derivatives, 20% profit sharing on booked profits on quarterly basis Profit withdrawal in multiples of 25000 after lock in period

2.5 COMMODITIES FUTURES TRADING. Commodities Futures are agreement of contracts that are utilized to purchase or sell a specified amount of a given commodity. The agreement will commit the buyer and the seller to a fixed price

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that will be in effect on a specified future date.When this future date arrives, the buyer is expected to have paid the agreed upon price for the futures, and the seller will have delivered ownership of the commodities to the buyer. Commodity futures are based on physical commodities that include items such as gold ,silver, other precious metals and grains. Various types of food items such as corn,wheat,sugar are also considered to be commodities. Commodity futures are based on the perceived worth of the goods today and at some future point in time. Sharekhan offers Online trading Platform ,Trade Tiger as discussed above, where a client can trade online in MCX(Multi Commodity Exchange of India Ltd.) and NCDEX(National Commodity & Derivatives Exchange Limited).These are the two registered Commodities Trading Exchange. Through this software, client can trade online in any commodity instantly. This software is free for customers. Advisory services are also available for Commodities Trading in Sharekhan. Sharekhan is the first broker who offers self owned software based Trading Platform for commodities

2.6 INSURANCE,IPO'S AND MUTUAL FUNDS IPO's Online Customers can apply to all the forthcoming IPOs online. This is quite hassle-free, paperless and time saving. Simply allocate fund to IPO Account, Apply for the IPO and Sit Back & Relax.

Mutual Fund Online Investors can apply to Mutual Funds of Reliance, Franklin Templeton Investments, ICICI Prudential, SBI, Birla, Sundaram, HDFC, DSP Merrill Lynch, PRINCIPAL and TATA with Sharekhan.

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Insurance Insurance is a policy from a large Financial Institution that offers a person,company or other entity reimbursement or financial protection against possible future losses or damages.Sharekhan has tie up with ICICI Prudential to sell its Insurance to our Existing customers.

CHAPTER 3: MAJOR PLAYERS IN THE INDUSTRY

3.1 INDIA INFOLINE

Its all about money, honey Company BackgroundIndia infoline was founded in 1995 and was positioned as a research firm.India Infoline Securities Pvt. Ltd. is a wholly owned subsidiary of India Infoline.com Ltd and is the stock broking arm of India Infoline.com. The subsidiary was formed to comply with regulatory guidelines.In 2000 e-broking was started under the brand name of 5 paisa.com. Apart from offering online trading in stock market the company offers Mutual funds online. It also acts as a distributor of various financial services i.e GOI securities, Company Fixed Deposits, Insurance. Limited ground network, present in 20 Cities www.5paisa.com is a focused website for online stock market trading. 5paisa.com is a trade name owned by the India Infoline.com group. IILSPL has applied for trading membership of the BSE under Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) Rules 1992. IILSPL is in the business of providing broking services online via the Internet (E-broking Services)

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and has been permitted by the NSE by way of registration permission no: NSEIL/CMO/INET/1103/2000 dated 03/July/2000, and will be applying for permission to the BSE, to provide E-broking Services to its clients. IILSPL is a TRADING MEMBER of the National Stock Exchange of India.

Products offered by IILSPL Stock market:-IILSPL deals in stock market by trading in equity and derivatives. Personal finance:- It Deals In Mutual Fund And Insurance. Online Trading :- It provides services in stock and commodity trading (through Internet).

Online Account Types Investor Terminal: Investors / Retail Trader Terminal: Day Traders / HNIs

PRICING FOR RETAIL CLIENTS1. Investor Terminal Account Opening: Rs 550 Demat 1st Yr: Rs 250(i.e AMC ) Initial Margin : Rs 2500(Compulsory) Min Margin Retainable: Rs 1000 Brokerage: Trading 0.10% each side + ST Delivery 0.50% each side + ST

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PRICING FOR HNI CLIENTS2. Trader Terminal Account Opening: Rs 750

Initial Margin: Rs 10,000(Compulsory) Brokerage: Trading 0.10% each side + ST Delivery 0.50% each side + ST (Negotiable to 0.01 each side & 0.10%)

3.2 ICICI DIRECT

ICICI Web Trade Limited (IWTL) maintains www.icicidirect.com (herein after referred to as the Website) whereas IWTL is an affiliate of ICICI Bank Limited and the Website is owned by ICICI Bank Limited. IWTL has launched and established an online trading service on the Website.

PRODUCTS AND SERVICES OF ICICI DIRECT 1. Investing in Mutual funds 2. Personal Finance 3. Customer Service Features 4. IPOs 5. Margin Trading 6. Margin PLUS Trading 7. Call Trade 8. Trading on NSE/BSE

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9. Trade in derivatives

Account Types ICICI Direct e-invest Account: Plain Vanilla Account with focus on 3 in 1 advantages. Differentiated in services within the account 1.Cash on spot 2.MarginPlus Premium Trading interface of ICICIDirect Link is given to DBC partners and HNIs Account Opening: Rs 750

Schemes: For short periods Rs 750 is refundable against brokerage Generated in a qtr. These schemes are introduced 3-4 times a year. Demat: NIL, 1st year charges included in Account Opening Plus a facility to open additional 4 DPs without 1st yr AMC Initial Margin: Nil Brokerage: All brokerage is inclusive of stamp duty and exclusive of other taxes. Delivery Vol per qtr Brokerage * < 10 lakhs 0.75% 10 lakhs - 25 lakhs 0.70% 25 lakhs -50 lakhs 0.55% 50 lakhs 1 Cr 0.45% 1 Cr 2 Cr 0.35%

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58 2 Cr 5 Cr 0.30% 5 Cr 0.25% Deal Clinchers v/s ICICIDirect Poor online Interface

Slow website interface with no real-time quotes creates a dissatisfaction among high frequency traders Margin trading restriction

The margin trading system is available up to 2:45 p.m, with outstanding net positions under margin segment automatically squared off at any time between 2:45 3:30 p.m. Thus no control of square off price. Restriction of BTST

The sale of shares purchased is restricted to T+1 day and is not permitted on T+2 Day. No leverage for Delivery trades

Delivery is restricted to the total money allocated into the trading account. No flexibility on leverage on Intra-day trades The leverage of 4 times is available for intra- day trades. Restriction of Bank Account The choice of bank is restricted to ICICI Bank. Higher Brokerage rates with slabs

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The delivery brokerage is pegged at 0.75% and trading at 0.15% each side, this makes is very unviable for customers dealing in large volumes. Although progressively the delivery and trading brokerage reduce as volumes go up.

3.3 SMC GLOBAL

Equity & Derivative Trading : SMC Trading Platform offers online equity & derivative trading facilities for investors who are looking for the ease and convenience and hassle free trading experience. They provide ODIN Application, which is a high -end, integrated trading application for fast, efficient and reliable execution of trades. You can trade in the NSE and BSE simultaneously from any destination at your convenience. You can access a multitude of resources like live quotes, charts, research, advice, and online assistance helps you to take informed decisions. We can also trade through their branch network by registering with them as their client. We can also trade through them on phone by calling their designated

35

representatives in the branches where you are registered as a client.

Clearing Services

Being a clearing member in NSE (F&O, Currency), BSE(F&O, Currency),MCX, MCX-SX, NCDEX,and DGCX. They are clearing massive volumes of trades of their trading members in this segment.

Commodity Trading

SMC is a member of 3 major national level commodity exchanges, i.e National Commodity and Derivative Exchange(NCDEX), Multi Commodity Exchange (MCX) and National Multi Commodity Exchange of India(NMCE) offers us trading platform of NCDEX, MCX and NMCE. We can get RealTime streaming quotes, place orders and watch the confirmation, all on a single screen. We use technology using ODIN application to provide us with live Trading Terminals. In this segment, They have spread their wings globally by acquiring Membership of Dubai Gold and Commodities Exchange. They provide trading platform to trade in DGCX and also clear trades of trading members being a clearing member.

Distribution of Mutual Funds & IPOs

SMC offers distribution and collection services of various schemes of all Major Fund houses and IPOs through its mammoth network of branches across India . They are registered with AMFI as an approved distributor of Mutual Funds. They assure you a hassle free and pleasant transaction

36

experience when we invest in mutual funds and IPOs through them. They are registered with all major Fund Houses including Fidelity, Franklyn Templeton etc. They have a distinction of being leading distributors of IPOs. Shortly they will be providing the facility of online investment in Mutual Funds and IPOs

Online back office support

To provide robust back office support backed by excellent accounting standards to their branches, they have ensured connectivity through FTP and Dotnet based Application. To ensure easy accessibility to back office accounting reports to their clients, They have offered facilities to view various userfriendly, easily comprehendible back office reports using the link My SMC Account.

SMC Depository

They are ISO 9001:2000 certified DP for shares and commodities. They are one of the leading DP and enjoy the trust of more than 5.5 lacs investors. They offer a quick, secure and hassle free alternative to holding the securities and commodities in physical form.They are one of the few Depository Participants offering depository facilities for commodities. They are empanelled with both NCDEX & MCX.

SMC Research Based Advisory Services :Their massive R&D facility caters to the need of Investors, who are continuously in need of opportunities for striking rich rewards on their investment. They have one of the most advanced, hitech inhouse R&D wing with some of the best people, process and technology resources providing complete research solutions on Equity, Commodities, IPOs and Mutual

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Funds. They offer proactive and timely world class research based advice and guidance to their clients so that they can take informed decisions. Click on Research to unveil the treasure.

SMC Investor Awareness Forum

Their dedicated team of professionals is conducting investor meet/seminars across India . They believe that a well-informed investor is an empowered investor. They also seek feedback on their services in these Investor meets.

3.4 ANGEL BROKING Angel Broking's with excellence in customer relations began in 1987. Today, Angel has emerged as one of the most respected Stock-Broking and Wealth Management Companies in India. With its unique retail-focused stock trading business model, Angel is committed to providing Real Value for Money to all its clients

The Angel Group is a member of the Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and the two leading Commodity Exchanges in the country: NCDEX & MCX. Angel is also registered as a Depository Participant with CDSL.

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Angel Group Angel Broking Ltd. Angel Commodities Broking Ltd. Angel Securities Ltd

Their Vision To provide best value for money to investors through innovative products,

trading/investments strategies, state of the art technology and personalized service. Their Motto To have complete harmony between quality-in-process and continuous improvement to deliver exceptional service that will delight Customers and Clients. Their CRM Policy : Customer is King A Customer is the most Important Visitor on our premises. He is not dependent on us, but we are dependent on him. He is not an interruption in our work. He is the purpose of it. He is not an outsider in our business. He is part of it. We are not doing him a favour by serving him. He is doing us a favour by giving us an opportunity to do so

Business Philosophy

Ethical practices & transparency in all dealings Customers interest above their own

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Always deliver what we promise

Effective cost management

3.5 RELIGARE

This Company was originally incorporated as Vajreshwari Cosmetics Private Limited on January 30, 1984.The name of our Company was subsequently changed to Religare Enterprises Private Limited pursuant to a special resolution of our shareholders dated January 10, 2006. The fresh certificate of incorporation consequent to the change of name was granted to our Company on January 31, 2006, by the Registrar of Companies, Punjab, Himachal Pradesh & Chandigarh at Jalandhar.

The status of the Company was changed to a public limited company by a special resolution of the members dated July 14, 2006. The fresh certificate of incorporation consequent to the change of name was granted to the Company on August 11, 2006, by the Registrar of Companies, NCT at New Delhi.

At the time of incorporation, the main object of our Company was to purchase, sell, import, export,manufacture, pack, replace or otherwise deal in all types of tooth paste, tooth brush, face powder, face cream and other cosmetics. Changes in our Registered Office

40

The companies mentioned below have been recently acquired by their Company and have become theirsubsidiaries. (a) Religare Securities Limited (b) Religare Finvest Limited (c) Religare Commodities Limited (d) Religare Insurance Broking Limited (e) Religare Venture Capital Private Limited.

Key Events and Milestones Year Events 1994 RSL received membership of the NSE as stock broker 2000 RSL received membership of the Futures and Options segment of RSL received registration as Depository Participant with NSDL the NSE

2001

RFL received registration as non-banking financial institution not accepting public deposits with RBI

2002 RSL received registration as Portfolio Manager from SEBI 2003 RSL received registration as Depository Participant with CDSL. 2004 RSL received membership of the BSE as stock broker RCL received membership of MCX as trading-cum-clearing member

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RCL received membership of NCDEX as trading-cum-clearing member

2005 RFL received enrollment as AMFI registered mutual fund advisor 2006 Establishment of representative office in London. RCL received membership of NMCE. RIBL received licence from IRDA to act as composite broker. Joint venture agreement with Aegon International N.V. for carrying on the business of mutual fund asset management. RSL received registration as Merchant Banker in Category - I from SEBI. 2007 RSL received membership of derivative segment of the BSE as trading-cum-clearing member Religare Enterprises to enter the capital market-Religare - Macquarie Joint Venture for Wealth Management 2008 Religare to acquire UK brokerage Hichens Religare strengthens its Bancinvest Channel Adds Karur Vysya Bank to its kitty Religare AEGON Asset Management Company Private Limited, a joint venture between Religare and AEGON, has received the final regulatory approval from the Securities and Exchange Board of India (SEBI) to launch mutual fund business in the country. Religare Enterprises gets SEBI nod for LOTUS acquisition 2009 Religare, a diversified financial services company, and Andhra

42

Bank, a well known Public Sector Bank in the country, have entered into a strategic tie-up offering Religare's internet trading services platform to the Bank's customers. Religare and Swiss Re join hands to enter India health insurance space

3.6 Motilal Oswal

Company History - Motilal Oswal Financial Services History and background of Our Company:

The Issuer was incorporated under the Companies Act as Motilal Oswal Financial Services Limited vide Certificate of Incorporation No. 11- 153397 dated May 18, 2005 issued by the ROC and received the certificate of commencement of business on June 3, 2005. The Issuer, along with its Subsidiaries, offers a diversified range of financial products and services such as retail wealth management including commodities broking, portfolio management services and institutional broking, investment banking services, and venture capital management and advisory.

Mr. Motilal Oswal and Mr. Raamdeo Agrawal initially conducted business as sub-brokers. Around 1990 Mr. Motilal Oswal acquired membership of the BSE. Subsequently, Vasant Holding Private Limited (VHPL), a group company acquired the membership of the NSE in 1994. On July 5, 1994, Deo Securities Private Limited was incorporated by Mr. Motilal Oswal and Mr. Raamdeo Agrawal to

43

carry on the business of stock broking and other financial services.

On August 22, 1995 Mr. Motilal Oswal and Mr. Raamdeo Agrawal incorporated another company, Motilal Oswal Stock Brokers (I) Limited, for carrying on the broking and asset management activities. The name Motilal Oswal Brokers (I) Limited was changed to Motilal Oswal Securities Limited, on February 12, 1996. Pursuant to the order dated January 21, 1999 passed by the Hon'ble High Court of Judicature at Bombay, sanctioning the scheme of amalgamation of VHPL with Motilal Oswal Securities Limited, the entire business and undertakings and all properties, interests and assets of VHPL were transferred to Motilal Oswal Securities Limited.

With a view to achieving better and more profitable utilization of the primary and secondary markets and also the growth in mutual fund industry, motilal oswal securities limited was restructured. the retail and institutional stock broking division was hived off to deo securities private limited along with its facilities of in-house equity research, pursuant to the scheme of arrangement sanctioned by the hon'ble high court on october 19, 2000. thus, motilal oswal securities limited continued to carry on the activities of investments, while deo securities private limited carried on the activity of stock broking.

On November 30, 2000, Motilal Oswal Securities Limited was renamed Motilal Oswal Investments Limited and subsequently changed to Motilal Oswal Investments Private Limited on December 12, 2002. Deo Securities Private Limited was renamed as Deo Securities Limited on November 14, 2000 and was subsequently changed to Motilal Oswal Securities Limited and received fresh certificate of incorporation on November 30, 2000. Motilal Oswal Investments Private Limited was renamed as Passionate Investment

44

Management Private Limited (PIMPL), and received a fresh certificate of incorporation on February 23, 2006. Motilal Oswal Investments Private Limited was renamed as Passionate Investment Management Private Limited (PIMPL), and received a fresh certificate of incorporation on February 23, 2006.

Major events in the history of Our Company: Year Events: 1996 Commencement of 'Wealth Creation Study' to identify the fastest wealth creating listed companies 2001 MOSL registered with SEBI as a Dealer of OTC Exchange of India 2003 Commencement of portfolio management service by MOSL 2004 Commencement of commodities broking business by MOCB 2005 Incorporation of the Issuer to offer financial services and products 2006 MOSL became a subsidiary of MOFSL upon acquisition of shares of MOSL from the Promoters, Mr. Motilal Oswal and Mr. Raamdeo Agrawal and some members of the Promoter Group MOCB became a subsidiary of MOFSL upon acquisition of shares from Promoter, PIMPL New Vernon Private Equity Limited and Bessemer Venture Partners Trust subscribed to the equity shares and OCRPS of the Issuer MOSL acquired the customer rights and other assets of:

45

i. Peninsular Capital Markets Limited, (a broking entity based in Kerala); ii. Mani Stock Brokers Limited, (a broking entity based in Uttar Pradesh); and MOIA was incorporated to conduct investment and merchant banking MOVC was incorporated to conduct venture fund management and advisory services

CHAPTER:4 ANALYSIS OF SALES PROMOTION SCHEMES

SALES PROMOTION

SALES ADVERTISING GIVES A REASON TO BUY SALES PROMOTION GIVES AN INCENTIVE TO BUY

WHEN THE PRODUCT'S QUALITY AND IT'S ADVERTISING PERSUASIVENESS FAIL TO MEET COMPETITION ,THE GREATER IS THE NEED FOR PROMOTION TO IMPROVE PRICE-VALUE.

MEANING: Marketing communication activities ,other than Advertising , Personal selling and Public relations, in which a short term incentive motivates a purchase. Sales Promotion

46

offers an incentive to buy.

4.1 SHAREKHAN

LMS -Lead Management System is the Basic USP of Sharekhan Plus the Prepaid AMC's as per the pocket of the customers Provides Free Opening of Account and charge comparatively less Brokerage in Equities Advisory Services and customer Care support acts as a backbone of Sharekhan Company's software product, Trade Tiger is one of the best self owned software product in the Industry. Putting up Canopies & Stalls in Big Fairs like Trade Fair, Money Expo, Noida Deep Utsav etc. Different Sales Team has been Designed to grab the Retail as well as HNIs Clients.

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4.2 ANGEL BROKING

Doesn't Pursue any special kind of promotional activity. Provides discount on bulk Account opening. Lead Generation is done by means of customer care support who makes a call and fix an appointment.

Data for calling comes from tie up Banks USP of this company is it's brokerage rate plus it's DNT calling numbers

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4.3 INDIA INFOLINE

This Organization uses various techniques for boosting the sales such as

Corporate Visits Pamphlets Distribution Advertisements etc.

LEAD GENERATION: Leads are generated through the website i.e

www.tradeindia.com (tie up)

Putting up CANOPIES at various locations in Delhi like shopping malls etc.

USP lies in brokerage which negotiable at any limit without any margin even without knowing the profile of the client whether he is eligible for that much of lower brokerage. Also DNT facility which provide fastest service to their clients.

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4.4 SMC GLOBAL

Direct Seliing is the concept which is being used in this new company It does not do any sales promotion activity, just try to provide the lowest brokerage comparative to its competitors- to grab the customers.

Only DNT available, no Telecaller This company do not have any separate Sales department especially for grab the new accounts.

Only Relationship Managers and Dealers who bring the clients himself and get them traded.

There salaries are variable as per their target achievement. So survival in this organisation is quite difficult as no support for fresh business

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acquisition is there.

4.5 MOTILAL OSWAL

Motilal Oswal seems quite aggressive in terms of Sales Promotion Presently launched a scheme of providing discount of rs 200/- on A/c opening Secondly, a coupon of Rs 500 for trading is provided if a customer generate a brokerage of Rs 500/- in the same month of account opening. This coupon is valid for subsequent 3 months. Activities:

Advisory services on an investment of investment 0 TO 50000 50001 TO 100000 100001 and above from CNT LAD (Local Advisory Desk) CAD(Central Advisory Desk)

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LEAD GENERATION:

This company appoints only experienced staff who are having their references Another major Lead generation is Pop ups A small Data is also made available through canopies ,corporate visits and advertisements.

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4.6 ICICIDIRECT:

Company itself is quite renouned and uses the advantage of its Brand image Generally they provide three-in one Account to their customers.Mostly they sell their Demat along with their Savings Accounts in corporates.

Although its charges are quite high and also does not do any special kind of promotional activities but still having the largest customer database

CRUX-Advisory services are provided free of cost to the new clients Advisory desk advices are much accurate as compare to other competitors in the Industry.

Advertisement is also done on small scale Major Emphasize on customer relationship.

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4.7 RELIGARE:

Concept of one man army is followed Only DNT,no telecallers Very rare canopies Only brokerage is the thing on which complete Sales structure of Religare is dependent

There major focus is to open Accounts with Prepaids(advance brokerage). There Prepaid brokearge slabs are really competitive. Due to large Sales force, company is able to increase its numbers.

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4.8 BASIC REASONS TO CHOOSE SHAREKHAN

Experience SSKI has more than eight decades of trust and credibility in the Indian stock market. In the Asia Money brokers poll held recently, SSKI won the Indias best broking house for 2004 award. Ever since it launched Sharekhan as its retail broking division in February 2000, it has been providing institutionallevel research and broking services to individual investors. Technology With their online trading account one can buy and sell shares in an instant from any PC with an internet connection. Customers get access to the powerful online trading tools that will help them to take complete control over their investment in shares.

Accessibility Sharekhan provides ADVICE, EDUCATION, TOOLS AND EXECUTION services for investors. These services are accessible through many centers across the country (Over 650 locations in 150 cities), over the Internet (through the website www.sharekhan.com) as well as over the Voice Tool.

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Knowledge In a business where the right information at the right time can translate into direct profits, investors get access to a wide range of information on the content-rich portal, www.sharekhan.com. Investors will also get a useful set of knowledge-based tools that will empower them to take informed decisions. Convenience One can call Sharekhans Dial-N-Trade number to get investment advice and execute his/her transactions. They have a dedicated call-center to provide this service via a Toll Free Number 1800-227500 & 39707500 from anywhere in India.

Customer Service Its customer service team assist their customer for any help that they need relating to transactions, billing, demat and other queries. Their customer service can be contacted via a toll-free number, email or live chat on www.sharekhan.com.

Investment Advice Sharekhan has dedicated research teams of more than 35 people for fundamental and technical research. Their analysts constantly track the pulse of the market and provide timely investment advice to customer in the form of daily research emails, online chat, printed reports etc.

Benefits

Free Depository A/c Instant Cash Transfer Multiple Bank Option. Secure Order by Voice Tool Dial-n-Trade.

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Automated Portfolio to keep track of the value of your actual purchases. 24x7 Voice Tool access to your trading account. Personalized Price and Account Alerts delivered instantly to your Mobile Phone & E-mail address.

Live Chat facility with Relationship Manager on Yahoo messenger

Special Personal Inbox for order and trade confirmations. On-line Customer Service via Web Chat. Enjoy Automated Portfolio. Buy or sell even single share Anytime Ordering.

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CHAPTER5: RESEARCH METHODOLOGY

OBJECTIVE OF RESEARCH: Each research study has its own specific purpose. It is like to discover to Question through the application of scientific procedure. But the main aim of our research to find out the truth that is hidden and which has not been discovered as yet. Our research study has two objectives:-

PRIMARY OBJECTIVE: -How Sharekhan Ltd is best services providers as a stock broker in the Tricity region. SECONDARY OBJECTIVE: 1. To know about the awareness towards stock brokers and share market. 2. To study about the competitive position of Sharekhan Ltd in Competitive Market. 3. To study about the effectiveness & efficiency of Sharekhan Ltd in relation to its competitors 4. To study about the need of improvement in existing Trading system.

TYPES OF RESEARCH On the basis of theoretical study a research has many types. All of these are distributed on the nature of research. Some of these are like 1. Descriptive and Analytical 2. Qualitative and Quantitative

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3. Conceptual and empirical 4. Applied and fundamental 5. One time research

Our research is based on Descriptive, Qualitative and Quantitative research. Descriptive Research:- Descriptive research includes surveys and fact finding enquires of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. Researcher has no control over the variables of this type of research.

Qualitative Research:- In our research we need comparison between different stock brokers. So this based on all qualitative data. In short, Qualitative research is especially important in the behavioral sciences where the aim is to discover the underline motives of human behavior. Through such research we can analyses various factors which motivate to people to behave in a particular manner or which make people like or dislike a particular thing.

Quantitative research:- Quantitative research is based on the measurement of quantity or amount. It is applicable to phenomena that can be expressed in terms of quantity. So we can use it in our research for collection of all the numerical data.

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FINDINGS:
Lead Management System is the Strong point in Sharekhan to capture the Retail Investor Trade Tiger is one of the Best software of Sharekhan lying after NEAT and ODIN

provided by Exchange Main purpose of investments are returns & liquidity. Investors take risk as well as returns into their mind while making the investment. Businessmen are more interested in the stock market than the others. Commodity market is less preferred by the investors. Yet this is a growing market. Dabba Trading is more prevalent in Commodities Trading as black money got easily

absorbed under such Trading. People want to invest their money in the security market but they havent the

proper knowledge. People are not aware of hedging in stock market. People pay more emphasis on brokerage than service provided by brokerage

Houses Good Investment advice is provided by Sharekhan. First Step Program for new Investors is the only concept in Sharekhan to enhance the basic knowledge for stock Market

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SUGGESTIONS:

Major emphasis should be laid on Expertise advise Commitment should be equalized for every person. Provide the facility of free demonstrations for all. Increase executives efficiency and productivity through time to time training There should be a limited number of clients under the relationship manger. So that he can handle new as well as old customer properly.

Some promotional activities are required for the awareness of the customer. Enhanced call monitoring for improved service quality People at young age should be encouraged to invest in stock market. Seminars should be held for providing information to prospective and present customers. Free gifts (such as silver coins) should be provided on account opening in order to attract large force of customers.

Lack of Promotional activities in Delhi-NCR by Sharekhan. Promotional activities should be more emphasized for Commodities and Currency Trading as

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capturing this market can increase the business manifolds. Professional Feedback form should be given to all the Advisory Guys .It should mandate for all of them to get the form fill for better services and knowing their own loop holes in adviseline.

CONCLUSION:

On the basis of the study it is found that Sharekhan Ltd is better services provider than the other stockbrokers because of their timely research and personalized advice on what stocks to buy and sell. Sharekhan Ltd. provides the facility of Trade tiger as well as relationship manager facility for encouragement and protect the interest of the investors. It also provides the information through the internet and mobile alerts that what IPOs are coming in the market and it also provides its research on the future prospect of the IPO. Study also concludes that people are not much aware of commodity market and while its going to be biggest market in India. The company should also organize seminars and similar activities to enhance the knowledge of prospective and existing customers, so that they feel more comfortable while investing in the stock market.

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APPENDICES & ANNEXURES

APPENDICE A: COMPARATIVE ANALYSIS After the whole , find out the following results Account Opening Fee

Sharekhan takes only Rs. 250 as an account opening fee which is lowest in the

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Industry.

ANNUAL MAINTENANCE CHARGE

Sharekhan does not charge any AMC in 1st year and also provide opening of account that too free though it charges Rs. 400/- as AMC from 2nd year onwards. On the contrary, other broking houses include AMC in account opening fee itself plus charge AMC from subsequent years

Comparison chart for AMC

500 400 300 200 100 0

AMC

(from 2nd year onwards) 450 400 300 300

100 0
SMC 0 II 300 RELI 100

100
MO 100 ICICI 450 AB 300 ShKhn 400

Name of companies

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MIN. MARGIN MONEY

Minimum margin money which is required to be given at the time of Account opening is explained Below. The Investor can use the whole amount of money for either trading or investment. This is not limit which is always required to be maintained in the account.

30000 25000 20000 15000 10000 5000 0 SMC II RELI MO ICICI AB ShKhn

25000 20000 20000

10000 5000

10000 5000

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THE FACT............

All broking firms provide exposure of 4 to 6 times on their margin amount and provide leverage of 2 days from the date of purchase of stock i.e t+2 days, after that interest of 16% per day per annum is levied on the complete transaction amount.

Only RELIGARE, MOTILAL ,OSWAL and IndiaInfoline is charging 18% after t+2 days and slowly other firms are facing ahead to adopt this change

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BROKERAGE COMPARISON

Brokerage is negotiable from client to client.

0 0 0 0 0 0 0 0 0

. 8 . 7 . 6 . 5 . 4 . 3 . 20 . 1 5 1 05 . 0 M C I I 2 5 0 . 01 . 0 S 0 . 2 5 0 . 2 . 0 R 2 0 E L 0 . 2 . 0 IM 2 O 0

. 7

. 1

5 0

0 0 . 1 . 0 IA 1 0 B S

. 2 . 0 h 2 K h n

I C

I C

(All the figures are in paisa/100 rupees, above a turnover of 2Lac)

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NOTE:Red bars indicate Delivery Brokerage and Blue bars indicate Intraday brokerage.

APPENDIX B:

QUESTIONNAIRE

Q-1. Do you know about Stock Market? a) Yes b)No

Q-2.Do you know any of the investment instrument? a) Equity d) Mutual Funds b) Commodity e) IPOs c) Foreign Exchange f)Portfolio Management Services

Q-3. If Yes, Have you ever invested in any of the Investment Options available above? a)Yes b)No

Q-4. Do you know about Online Demat-cum-Trading Account? a) Yes b) No

Q-5.Do you want demonstration of Online Trading at your door step? a) Yes b) No

Q-6. Are you Trading with any other Brokerage firm? a)Yes b)No

Q-7. Which service do you like in your Existing Broker? a) Terminal b) Brokerage Yes/No Yes/No

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c) Research

Yes/No

Contact Details: Name:Contact No:Address:Occupation:-

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APPENDICE 1: REVIEW OF LITERATURE According to SEBI, Professional Rating of market intermediaries, as a concept, is a matter of debate and discussions. The need for rating is felt not only from the point of view of greater disclosure requirements for investors interests, considering the important role such intermediaries play, being an interface between investors and exchanges but also from the point of view of measuring the adequacy of systems and controls to meet internal as well as external compliance requirements. So that need for Intermediaries Rating services (Brokers). In view of the developments that are taking place in the capital markets, the need to constantly upgrade and improve systems and procedures in operation as well as skill sets has gained considerable importance. Besides compliance with regulatory requirements both in letter and spirit has assumed significance so as to mitigate risk and ensure adequate protection of investors interest. And Rating objectives / benefits are rated entity would be in a position to brand its image and capitalize the same for generating more business. In a nutshell, the product may accrue significant benefits to all stakeholders including the investors, stock brokers themselves, the regulator and others who will benefit from the transparency and the consequential focus on efficiency. According to SEBI and Intermediaries Regulation and Supervision Department, different factors are consider for rating process Organization structure, Policy on Investors interest, Risk Management

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Policy and System, Organization process and procedures, Management policy on compliance, Financials, History/Background, Firms positioning. According to Michal Parness, Founder & CEO investors dont Make Money in the Stock Market. One reason the institutions make so much money is that they are trading. They make money every time you buy or sell. They make money whether you win or lose. That means that when youre investing, youre basically just sitting there. Youre not going anywhere. Youre not making money as an investor. Trading the Trend: The Only Way to Make Money in the Market If you dont know this already, Trend Trading means trading trends based on human emotions. Not lagging indicators. Not complex statistical analysis and not Ph.D. level mathematical equations. With trend trading, you look for market movement. That could mean stocks that are going to move up or down during the course of a day (intraday). Youll play the gaps up and down, often several days a week. The Trend trading means being aware and taking advantage of trends like the run-ups that happen around earning sessions. These are trends that have worked time and time again in the market. They consistently yield results.

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APPENDICE 2: BIBLIOGRAPHY

www.sharekhan.com www.moneycontrol.com www.bloomberg.com www.nseindia.com www.amfi.com www.google.com

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