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COMPANY PROFILE
A. BACKGROUND AND INCEPTION OF THE COMPANY
Sharekhan ltd. is a retail broking arm of S.S KantilalIshwarlal Investors Services Pvt Ltd, an organization with more than 8 decades of trust and credibility in the stock market. Sharekhan Ltd (Formally SSKI Investors Services Pvt Ltd) was promoted by Mr.Shripal.SMorakhia and Mr.Shreyas.SMorakhia. It is currently Indias largest broking house. It is a member of the stock exchange, Mumbai. It is a depository participant of the NSDL and CDSL. Its business includes stock broking, depository services, portfolio management and derivatives. SSKI group also comprises institutional broking and corporate finance. While the institutional broking division caters to the largest domestic and foreign institutional investors. The corporate finance division focuses on niche areas such as infrastructure, Telecom and media. SSKI holds a sizeable portion of the market in each of these segments. As the forerunner of investment research in the India market, we provide the best research coverage amongst broking houses in India. Our research team is rated as one of the best in the country. Voted four times as the top domestic brokerage house by Asia money survey. SSKI is consistently ranked almagest the top domestic brokerage houses in India. Share khan is the retail broking arm of SSKI securities Pvt ltd. SSKI owns 56% in share khan, balance ownership is HSBC and Intel pacific. Pioneers of online trading in India- Sharekhan.com was launched in 2000 and is now the second most visited broking site in India.

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B. NATURE OF BUSINESS CARRIED

Sharekhan is a stock broking company. The company offers a complete range of pre trade, trade and post trade service on the BSE (Bombay stock exchange) and the NSE (National stock exchange). Whether the client come in to the companys conventionally located offices and trade in a dedicated environment or issue instructions over the phone, the highly trained team and sophisticated equipment ensure smooth transactions and prompt service. Investment Advisory service Facilitation services to Retail Investors, Corporate. Depository services

Investment options include: Online trading (Includes equity, derivatives) Commodities trading Mutual funds Portfolio management service

Operations: Institutional broking Investment Banking Retail Broking Through trading and settlement process the investor converted into the final product. The clearing house of exchange may act as legal counter party to all dealers for all deals in equity derivatives instruments on exchanges. Thus the both the parties to an equity derivatives met

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either by the party itself or in the event of default on the part of the party, by clearing corporation. A client can trade only through a trading member of the exchange. A clearing member can act as trading member. The process of trading is similar to screen based trading in securities like shares on an exchange. The exchange introduced standardized contract where settlement date, is specified by stock exchange and the client can enter into contracts with different contract/ strike price. In order to minimize the risk of failure parties to contract in full filling their respective obligation under the contract, the Clearing Corporation/trading members. Margins are required to be paid by clearing/trading members who in turn, collect margin from their respective clients.

C. VISION, MISSION AND OBJECTIVES

VISION: To be the best retail broking brand in the Indian equities market MISSION: To educate and empower the individual investor to make better investment decisions through quality advice and superior service OBJECTIVES: To ensure satisfaction through teamwork and professional management To provide good quality of services on a continuous basis to the satisfaction of clients. To extend effective guidance to brokers, to clearing house Corporation, companies and To eliminate paper work and bring in front of electronic stock market in India.

investor in E-Stock Trading.

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QUALITY POLICY User friendly online trading facility

D.

PRODUCTS AND SERVICES PROFILE

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Sharekhan is one of India's leading financial services companies. It provides a complete lifecycle of investment solution in Equities, Derivatives, Commodities, IPO, Mutual Funds, Depository Services, Portfolio Management Services and Insurance. Also offers personalized wealth management services for High Networthindividuals.With a physical presence in over 300 cities of India through more than 800 "Share Shops", and an online presence through Sharekhan.com, India's premier online destination; it reaches out to more than 800,000 trading customers. The product of Share khan can be broadly classified into three types suiting the clients trading habit. Three key products IT enabled call Center for servicing clients Integrated Depository service/Demat account for transparency Online fund transfer facility with HDFC, Citibank, GTB, IDBI Bank. Regular banking Sharekhan also offers personalized research advice through Website, e-mail, SMS and

facility with any bank in India. Messenger

Online products offered by Sharekhan are as follows: 1. CLASSIC ACCOUNT: This account allows the client to the trade throughout website and is suitable for the retail investors. Our online trading website also comes with the Dial Trade service that enables you to buy and sell shares by calling their dedicated toll free number. 2. SPEEDTRADE:

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SPEEDTRADE is a next-generation online trading product that brings the power of your brokers terminal to your PC. It is ideal for active traders who transact frequently during days trading session capitalize on intra-day price movements. SPEEDTRADE is an internet-based application available on a CD, which provides every-thing a trader needs on one screen, thereby, reducing the required to execute a trade. SPEEDTRADE has all the above-mentioned features with the power to trade in cash and derivatives from a single screen.

SERVICES OFFERED BY SHAREKHAN 1. Trading Facilities: Sharekhan as a member of NSE& BSE provides both offline and online trading facilities nationwide for trading the securities in secondary market to its clients. The companys wide network of outlets spread across the country facilities to executive the orders in secondary market. 2. Derivatives: (Futures and Options) The company also facilitates the trading system for trading in secondary market under future and options segment of NSE and BSE. The equity dealers in the company will be eager to give insights into the new sets introduction in the Indian Capital Market futures and options. 3. Depository services: Sharekhan is a Depository participant of National Securities Depository Limited and Central Depository and Securities Limited. Sharekhan will open De-mat accounts, which will investors to convert physical certificates of shares into electronic balances in an account maintained. 4. Margin Financing:
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In the present rolling settlement scenario, Sharekhan understand investor need for additional capital availability for daily purchaser shares. It offers unique facility avail finance, for purchasing shares at very competitive interest rates. 5. IPOs and Mutual Funds: Sharekhan offers the change of investing in the potentially lucrative IPO market. Sharekhan is a distribution house for all mutual funds. This is the news scheme introduced by the company and it also offers schemes catering to investors with varying risk return profiles. 6. Stock lending and Borrowing:

One can place an order of shares with Sharekhan. It is approved intermediary of the security or lending scheme. These would be sent out the borrowers, these earnings fees for all investors idle shares. Thus Sharekhan fulfill the investor need for borrowing and lending of shares. 7. Equity Research: Sharekhan has a highly rated research using involved in macroeconomic studies, industry and company specific equity research. The research teams inputs will be available as daily trading calls, quarterly investment picks and long term investment picks, based on the fundamentals of particular company and the industry as a whole. 8. Internet Trading:

Investors can also trade their securities through this facility by logging into companys website. The virtual world that Sharekhan offers online trading services through. 9. Portfolio Management Services:

Sharekhan securities are a registered portfolio manager with SEBI to manage portfolios on behalf of clients with a discretionary and non discretionary right.
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This service is a provision for those who may not have the time to manage their stock investments or require the service of companys highly specialized profession team. 10. Other Services: Free access to investment advice from Share khans research team Sharekhan Value line (A monthly publication with review of recommendations stocks Daily research reports and market review ( high noon and eagle eye) Daily trading calls based technical analyses Cool trading products ( Daring derivatives and market strategy) Personalized advice Live management information Internet- Based online trading Online BSE & NSE executions through BOLT & NEAT terminals).

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E. AREA OF OPERATION OF SHAREKHAN

The area of operations of SHAREKHAN is spread over two countries. They are: 1.INDIA 2. UAE

The services are available through a network of 1437 Share shops spanning 170 major towns and cities in the country along with an international branch in Dubai (UAE) Growing retail network across 1120 franchisees 168 branches 325 cities
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F. OWNERSHIP PATTERN AT SHAREKHAN

Major shareholders Citi Venture Capital And Other Private Equity Firms Barings Pvt Equity Asia IDFC Employees Management Team Mr. Tarun P. Shah. Mr. Shankar Vailaya. Mr. JaideepArora. Mr. Ketan Parekh. 60% 23% 6% 11% CEO. Director-Operations. Director-Product and Technology. Chief Technology Officer.

G. COMPETITORS INFORMATION
The Indian retail brokerage market, which is going through a wonderful phase with high growth rate. The total trading volume of the Indian brokerage companies stood at US$ 1239.1 billion in the year 2004, which increased to US$ 1492.1 billion in 2005. It is further expected to reach US$ 6535.7 billion by the year 2015. List of Top 10 Brokerage Firms in India- Competitors for SHAREKHAN Among all the Indian brokerage companies, the top 10 Brokerage Firms in India can be listed as below: Name Terminals
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Kotak Securities Limited 4320

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Sub Brokers No. of Employees No. of Branches Name Terminals Sub Brokers No. of Employees No. of Branches Name Terminals Sub Brokers No. of Employees No. of Branches Name Terminals Sub Brokers No. of Employees No. of Branches Name Terminals Sub Brokers No. of Employees No. of Branches Name Terminals Sub Brokers No. of Employees No. of Branches
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910 4008 350 Karvy Stock Broking Limited 1700 19000 3910 581 Indiabulls 2876 NA 5873 522 IL&FS Investmart Limited 1644 NA 1900 294 MotilalOswal Securities 7923 890 2193 63 Reliance Money 2428 1494 2037 142
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Name Terminals Sub Brokers No. of Employees No. of Branches Name Terminals Sub Brokers No. of Employees No. of Branches Name Terminals Sub Brokers No. of Employees No. of Branches Name Terminals Sub Brokers No. of Employees No. of Branches KARVY

India Infoline 173 173 NA 605 Angel Broking Limited 5715 NA 284 NA AnandRathi Securities Limited 1527 320 4566 220 Geojit 627 247 343 314

KARVY, is premier integrated financial services provide, and ranked among the top five in the country all its business segments, services over 16 million individual investors in various capacities, and provide investor services to over 300 corporate, comparing the who is who of corporate India. KARVY covers the entire spectrum of financial services such as Stock broking, Depository Participants, Distribution of financial products Mutual funds, Bonds, Fixed

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Services, Merchant Banking & Corporate Finance, Placement of equity, IPOs among others. Karvy has various industrial segments. KOTAK SECURITIES Kotak Mahindra is one of Indias leading financial institutions, offering complete financial solutions that encompass every sphere of life. From commercial banking, to stock broking to mutual funds, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporate. The group has a net worth of around Rs. 2000 crore and the AUM across the group is around 120 billion and employs over 6000 employees in its various businesses. With a presence in 216 cities in India and offices New York, Landon, Dubai, and Mauritius, it services a customer base of over 10,00,000. The group specializes in offering top class financial services, catering to every segment of the industry. INDIA INFOLINE: The India Infoline Group comprises the holding the parent company, India Infoline Ltd owns and manages the web properties www.indiainfoline.com and www.5paisa.com. It also undertakes research, customized and off the shelf. Launched on 11 May 1999, www.indiainfoline.com is Indias leading and most comprehensive business and financial information website. The site provides quality information and analysis earlier restricted to a few people to the common man, absolutely free. INDIABULLS The market capitalization of Indiabulls is around USD 1100 Million and consolidated net worth of the company is around USD 725Million some of the large shareholders of Indiabulls are the largest financial institutions of the worlds such as Fidelity Funds, Capital international, Goldman Sachs, Merrill Lynch, Lloyd George and Feallon Capital. Revenue of the company grew at a CAGR of 184% from FY06 to FY09 during the same period profit of the co grow at a CAGR of 215%.

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H. INFRASTRUCTURAL FACILITIES AT SHAREKHAN Sharekhan outlets are designed to be places where retail investors can come in touch with Investment opportunities in an atmosphere of convince and comfort. The look and feel of the offices across India projects a consistent branch image for the company. The features that enable a unique facility for retailing financial service include among others.
Business Focus: The main focus is Customer - Customer service, Customer education,

Customer support, Customer relations and last but not the least Customer acquisition.
Strong Product Basket: Specific products catering to each customer segment. Training Sessions: Comprehensive 3 day training program & dedicated online platform

for ongoing training requirements.

Multi-Channel Access: SHAREKHAN serves its

customers better via multiple

channels.
Customized Retail Design: The office premises at all share shops have an invigorating

look, synonymous with its corporate identity.

Research-based Investment Advice: Access to all fundamental and technical research at

a real time basis.

Technology Infrastucture Support: Comprehensive & robust technology infrastructure

to run a fully automated back-office.

Pioneering Online Trading Systems: The customers can trade online, get news,

research

and

access

to

special

reports

through

the

companys

web

portal

www.sharekhan.com
Support: Dedicated support for various aspects of business including Equity sales, Risk

management, Business development and Operations. www.sharekhan.com

I.

ACHIEVEMENTS AND AWARDS WON BY SHAREKHAN

Sharekhan, the retail broking arm of SSKI Group and one of the largest stock broking

houses in the country, has won the prestigious Awaaz Consumer Vote Awards 2005 for the Most
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Preferred Stock Broking Brand in India, in the Investment Advisors category. This was Indias largest Customer Study initiated by CNBC Awaaz and conducted by AC Nielson covering 7000 respondents, 21 products and services across 21 major cities. Rated among the top 20 wired companies along with RELIANCE, HLL, and ORG Marg award by CNBC. India internet World 2008 for the Best Finance site. Sharekhans online trading and investment site www.sharekhan.com was launched in INFOSYSetc. by Business Today.

2000. Sharekhans ground network includes over 250 centers across 123 cities in India and having around 120000 customers and an equal number of demat customers. The reasons behind the preferences for brands were unveiled by examining the following: Tangible features of product / service Softer, intangible features like imagery, equity driving preference Tactical measures such as promotional / pricing schemes

J. WORK FLOW MODEL

CUSTOMER OVERVIEW

CALL DESK

ONLINE DESK

SALES REP

APPLICATION

PROCESSING

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GENERATION OF CLASSIC

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PORTFOLIO ANALYSIS & RESEARCH

PAYMENT FOR INVESTMENT IN DP

TRADING THROUGH SHAREKHAN

HOLDINGS & STATEMENTS

RETURNS The three main components of this model include: 1. SHARE SHOPS

CUSTOMER SERVICE

The Service Delivery Model of SHAREKHAN is a blend of both tradition and technology.

All one has to do is walk into any of the 1200 share shops across 400 cities in India to get a host of trading and investment related services. Our friendly customer service staff will also help you with any account related queries you may have. A Sharekhan outlet offers the following services:

Online BSE and NSE executions (through BOLT & NEAT terminals) Free access to investment advice from Sharekhan's Research team SharekhanValueLine (a monthly publication with reviews of recommendations, stocks to

watch out for etc)

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Daily research reports and market review (High Noon & Eagle Eye) Pre-market Report (Morning Cuppa) Daily trading calls based on Technical Analysis Cool trading products (Daring Derivatives and Market Strategy) Personalized Advice Live Market Information Depository Services: Demat & Remat Transactions Derivatives Trading (Futures and Options) Commodities Trading IPOs & Mutual Funds Distribution Internet-based Online Trading: SpeedTrade

2 .DIAL N TRADE

Free with your Sharekhan Trading Account, the Dial-n-Trade service enables the

customer to place orders for buying and selling shares through your telephone. All the customer has to do is dial any one of the dedicated numbers (1-800-22-7050 or 1-800270-7050or 30307600), enter the TPIN number (which is provided at the time of opening the account) and on authentication the customer will be directed to a telebroker who will buy and sell shares for him. Features of DIAL N TRADE

THREE dedicated numbers for placing orders with cell phone or landline. Toll free

numbers: 1-800-22-7050 & 1800-270-7050. For people with difficulty in accessing the toll-free number, we also have a Reliance number (Your Local STD Code) 30307600 which is charged at as local number.

Simple and Secure Interactive Voice Response based system for authentication No waiting time. Enter TPIN to be transferred to telebrokers Trusted, professional advice of our telebrokers After hours order placement facility between 8.30 am and 9.00 am
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Reliable service, wherever the customer is.

3. ONLINE TRADING The online trading model at sharekhan consists of a choice of three trading interfaces: a. b. c. Trade tiger exe for active traders Web based classic interface for investors Web based applet fast trade for investor

K. FUTURE GROWTH AND PROSPECTS.

Mergers and acquisitions: In the highly competitive and over crowded market, shakeouts

and bankruptcies of online brokers can be anticipated. The trend is towards a gradual consolidation of retail investors to a few dominant players or partnerships. Stock broking applications that provided services in various delivery modes, i.e., internet,

WAP, palm pilots, pocket PCs etc will get more common as more and more people start using these gadgets. Online broking would have a completely new meaning in this scenario.

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In a crowded stock broking industry, differentiation becomes the key to higher revenues. Better service, straight through processing (STP), immediate execution, portfolio services, investment advisors and telephone call centers or branch investment offices are needed to retain customers and to increase the revenue base.

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