1.

OVERVIEW OF INDUSTRY AS A WHOLE

NSE launched internet trading in early February 2000. It is the first stock exchange in the country to provide a web-based access to investors to trade directly on the exchange. The process : Log on to the brokers site of your choice where you get real time quotes, place a buy or sell order on the spot, and direct the site to debit the requisite amount. In some time you get confirmation and after the trade settlement your bank and depository account will reflect the changes which you can view anywhere, anytime. Online trading has become seamless. All that you need is a PC, a modem, subscription to an Internet Service Provider (ISP), a saving and a depository account with any bank providing online trading facility. Along with stocks one can trade in mutual funds and investment instruments. The advantage with online trading that you can operate in both BSE and NSE depending on the broking firm. NSE introduced for the first time in India a fully automated screen based trading. It uses a modern fully computerized trading system designed to offer investor across the length and breadth of country a safe and easy way to invest. The NSE trading system called National Exchange for Automated Trading (NEAT) is a fully automated screen-based trading system which adopts the principle of an order driven market.

With over 20 million shareholders, India has the third largest investor base in the world after the USA and Japan. Over 9000 companies are listed on stock exchanges, which are serviced by approximately 7500 stockbrokers. The Indian capital market is significant in terms of the degree of development, volume of trading and its tremendous growth potential.

STOCK EXCHANGE
A stock exchange, share market or bourse is a corporation or mutual organization which provides facilities for stock brokers and traders, to trade company stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities, as well a, other financial instrument and capital events including the payment

of income and dividends. The securities traded on a stock exchange include: shares issued by companies, unit trusts and other pooled investment products an bonds. To be able to trade a security on a certain stock exchange, it has to be listed there. National Stock Exchange

The national stock exchange of India limited (NSE) is a Mumbai-based stock exchange. It is the largest stock exchange in India and the third largest in the world in terms of volume of transaction. NSE is mutually-owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries in India but its ownership and management operate as separate entities. In March 2006, the NSE had a total market capitalization of 4,380,774 crores INR making it the second-largest stock market in south Asia in terms of market-capitalization.

Bombay Stock Exchange

The Bombay stock exchange (or BSE) is there oldest stock exchange in Asia. It is located at Dalal street, Mumbai, India. The Bombay stock exchange was established in 1875. there are around 4800 Indian companies listed with the stock exchange, and has a significant trading volume. As of may 2007, the equity market capitalization of the companies listed on the BSE was about Rs.40.7 trillion (US$999billion). This topic includes the practical experience company products that are followed by studying the consumer preference or interest towards share market. This is a market; which is uncertain sometimes it gives huge profit and also vice-versa; it depends upon the investment customer made. This is a better option to have better returns on the investments then investing in banks, mutual fund or bond et. But risk is high in this case. This products offers customer two type of investment option INTRADAY and DELIVERY both has The topic is to study the consumer preferences towards investment in stock market.

Demat account is a pool of various scripts and securities, whereas online trading is a tool of purchasing/selling of scripts online. These scripts are then transferred to depository account after three days. There own benefits and limitations but a better way to have more returns on investment. Intraday means investing in a share market for a day i.e. purchasing and selling of sharekhan in one day. Delivery is purchasing share and selling those share next day. The charges that company charge in terms of brokerage is different in both the cases. Gone are the days when you left orders with your broker, received conformations on the price and quality of the shares at the end of the day and the payment made upfront or received after delays. Your securities settlement took days to reflect in your account. Internet has changed the way you do trading. The entire process is speedy with limited to zero paper work. NSE launched internet trading in early February 2000. it is the first stock exchange in the country to provide a web-based access to investors to trade directly on the exchange. The process : Log on to the brokers site of your choice where you get real time quotes, place a buy or sell order on the spot, and direct the site to debit the requisite amount. In some time you get confirmation and after the trade settlement your bank and depository account will reflect the changes which you can view anywhere, anytime. Online trading has become seamless. All that you need is a PC, a modem, subscription to an Internet Service Provider (ISP), a saving and a depository account with any bank providing online trading facility. Along with stocks one can trade in mutual funds and investment instruments. The advantage with online trading that you can operate in both BSE and NSE depending on the broking firm.

A stock market is a place where stocks, bonds, or other securities are bought and sold. An association of stockbrokers who meet to buy and sell stocks and bonds according to fixed regulations. A stock exchange, organized market for the trading of stocks and bonds. Such markets were originally open to all, but at present only members of the owning association may buy and sell directly. Members, or Stock Brokers, buy and sell for themselves or for others, charging commissions for their services. A stock may be bought or sold only if it is listed on an exchange, and it may not be listed unless it meets certain requirements set by the exchange's board of governors. The market in which shares are issued and traded either through exchanges or over-thecounter markets. Also known as the equity market, it is one of the most vital areas of a market economy as it provides companies with access to capital and investors with a slice of ownership in the company and the potential of gains based on the company's future performance. This market can be split into two main sections: the primary and secondary market. The primary market is where new issues are first offered, with any subsequent trading going on in the secondary market. A security from a well-established and financially-sound company that has demonstrated its ability to pay dividends in both good and bad times. These stocks are usually less risky than other stocks. Equity The residual value of a business or property beyond any mortgage thereon and liability therein. The market value of securities less any debt incurred shareholder or stockholder is an individual or company (including a corporation) that legally owns one or more shares of stock in a joint stock company. Shareholders The shareholders are the owners of a corporation. Companies listed at the stock market strive to enhance shareholder value. The shareholder concept is the theory that a company only has responsibilities to its shareholders and owners, and should work solely to benefit these people.

The trading of securities such as stocks and bonds is conducted in stock exchanges, which are grouped under the general term stock market. A stock exchange is essentially a marketplace for stocks and bonds, with stockbrokers earning small commissions on each transaction they make. Stocks that are handled by one or more stock exchanges are called listed stocks. For a corporation's stock to be listed on an exchange, the company must meet certain exchange requirements. Each exchange has its own criteria and standards, but in general a company must show that it has sufficient capital and is in sound financial condition. Once a company is listed, trading in its stock will be suspended if the company's financial condition decline to the point that it no longer meets the exchange's minimum requirements. When a person wishes to purchase a stock, she places an order with a brokerage house. The broker gets a quotation or price and sends the order to the firm's representative on the floor of the stock exchange. The representative negotiates the sale and notifies the brokerage house. Transactions happen rapidly, and each one is recorded on a computer system and sent immediately to an electronic ticker that displays stock information on a screen. At one time this information was generally only available at stock brokerage houses, but the daily stock ticker is now available on television and through the Internet. In short selling, the trader borrows stock (usually from his brokerage which holds its clients' shares or its own shares on account to lend to short sellers) then sells it on the market, hoping for the price to fall. The trader eventually buys back the stock, making money if the price fell in the meantime or losing money if it rose. Exiting a short position by buying back the stock is called "covering a short position." This strategy is also used by unscrupulous traders to lower the price of a stock. Hence most markets either prevent a short sell or place restrictions on when and how a short sell can occur. These restrictions are usually referred to as tick rule. In margin buying, the trader borrows money (at interest) to buy a stock and hopes for it to rise.

Stock market indices The movements of the prices in a market or section of a market are captured in price indices called stock market indices, of which there are many, e.g., the S&P, the FTSE and the Euro next indices. The financial system performs three main tasks: firstly, it handles transfer of payments; secondly, it channels savings to investments with a good return for future consumption; and thirdly, it spreads and reduces (local enterprise) economic risks in relation to the players' targeted returns. The smooth functioning of all these activities facilitates economic growth in that lower costs and enterprise risks promote the production of goods and services as well as employment. In this way the financial system contributes to increased prosperity. The stock market is one of the most important sources for companies to raise money. The price of shares and other assets is an important part of the dynamics of economic growth. Rising share prices, for instance, tend to be associated with increased business investment and vice versa. Share prices also affect the wealth of households and their consumption.

SECURITIES MARKET IN INDIA

Initially, trading on stock exchanges in India used to take place through open outcry without use of information technology for immediate matching or recording of trades.

NSE, incorporated on Nov.27, 1992, started its operations on June 30, 1994. It introduced a nation-wide on-line fully-automated screen based trading system (SBTS).

NSDL was set up as a first Depository in India, in November 1996. NSE commenced trading in Dematerialized securities from Dec.26, 1996. NSE launched NIFTY (NSE-50 Index) on April 22, 1996. NSE and NSCCL went live with inaugural session for ALBM, i.e., Automatic Lending and Borrowing Mechanism for lending and borrowing of securities on February 10, 1999.

1.2 PROFILE OF THE ORGANIZATION

Share khan is the retail broking arm of Mumbai-based SSKI Group, which has over eight decades of experience in the stock broking business. SSKI owns 65% in Share Khan Balance ownership is HSBC, first Carlyle and Intel Pacific. It has been into broking since 80 years. And has focused on providing equity solutions to every segment. It boasts of largest ground network of 588 share shops across 213 cities in India. Sharekhan offers its customers a wide range of equity related services including trade execution on BSE, NSE, Derivatives, depository services, online trading, investment advice etc. Through its online trading portal www.sharekhan.com, it provides multi-channel access to the stock markets to its customers. The website 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 one lakh customers. The number of trading members currently stands at over 3 Lacs. While online trading currently accounts for just over 2 per cent of the daily trading in stocks in India, Sharekhan alone accounts for 32 per cent of the volumes traded online. Share khans ground network includes over 588 centers in 148 cities in India, of which 32 are fully-owned branches. 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 Morakhiya family holds a majority stake in the company. HSBC, Intel & Carlyle are the other investors. With a legacy of more than 80 years in the stock markets, the SSKI group ventured into institutional broking and corporate finance 18 years ago. Presently SSKI is one of the 9

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. The Corporate Finance section has a list of very prestigious clients and has many firsts to its credit, in terms of the size of deal, sector tapped etc.

SSKI
With a legacy of more than 80 years in the stock market, the SSKI group ventured into institutional broking and corporate finance 18 years ago. Presently 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, fa east, UK and us. Sharekhan is the retail broking arm of SSKI, an organization with more than eight decades of trust and credibility in the stock market.

SSKI GROUP COMPANIES

SSKI investor services Ltd (sharekhan) S.S. kantilal ishwarlal securities SSKI corporate finance Idream productions

Sharekhan, Indias leading stockbroker is retail arm of S.S.Katilal Ishwarlal (SSKI), having 55% of share in hand of SSKI and 45% of share in hands of HSBC & INTEL PACIFIC. With more than 280 share shops in 123 cities, and Indias premier online trading destination-http://www.sharekhan.com/, their customers enjoy multi channel access to stock markets. Sharekhan offers you trade execution facilities for cash as well as for derivatives, on the BSE and NSE, depository services, commodity trading on the

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MCX and NCDEX and most importantly, they bring to their customers investment advice tempered by eighty years of broking experience. Sharekhan was created when SSKI Investor Services Pvt. Ltd., a company in the securities and equities segment decided to harness the power of the Internet and offer services to its customers through an online stock trading portal. Sharekhan runs India's largest chain of share shops with around 280 outlets in 123 cities. The company offers its services through a combination of online and offline channels. The online model comprises a portal, chat facilities, and 'speed trade' terminals. And the offline model uses a combination of an IVR infrastructure and a team of customer agents to receive orders over the telephone. The company claims to have over 1,00,000 current registered users nationwide. It aims to facilitate a smooth and gentle entry into the supposedly complex jungle of stocks - a responsibility of a company adding over 6,000 new customers every month To cut a long story short, Sharekhan is an equities focused organization tracing its lineage to SSKI, a veteran equities solutions company with over 8 decades of experience in the Indian stock markets. If you experience our language, presentation style, content or for that matter the online trading facility, you'll find a common thread; one that helps you make informed decisions and simplifies investing in stocks. The common thread of empowerment is what Sharekhan's all about! 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 portfolio-based 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 you!

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To sum up, Sharekhan brings to the investors a user- friendly online trading facility, coupled with a wealth of content that will help you stalk the right shares. Those of you who feel comfortable dealing with a human being and would rather visit a brickand-mortar outlet than talk to a PC, you'd be glad to know that Sharekhan offers you the facility to visit (or talk to) any of our share shops across the country. In fact Sharekhan runs India's largest chain of share shops with around 280 outlets in 113 cities. While our size and strong balance sheet allow us to provide you with varied products and services at very attractive prices, our over 750 Client Relationship Managers are dedicated to serving your unique needs. Sharekhan is lead by a highly regarded management team that has invested crores of rupees into a world class Infrastructure that provides our clients with real-time service & 24/7 access to all information and products. Our flagship Sharekhan Professional Network offers real-time prices, detailed data and news, intelligent analytics, and electronic trading capabilities, right at your finger-tips. This powerful technology complemented by our knowledgeable and customer focused Relationship Managers. We are Creating a world of Smart Investor.Sharekhan offers a full range of financial services and products ranging from Equities to Derivatives enhance your wealth and hence, achieve your financial goals. Sharekhan' Client Relationship Managers are available to you to help with your financial planning and investment needs. To provide the highest possible quality of service, Indiabulls provides full access to all our products and services through multichannels .

Training is defined as the systematic development of the knowledge, skills and attitudes required by an individual to perform a given task or job successfully. Training aims at improving the organizations performance through the enhanced performance of the employees. The major purposes of training are preparing an individual to work as per the corporate world, updating skills, managerial succession and satisfying personal growth needs. 12

Organizations provide training as per the company policies and procedures. OJT helps an individual to know the actual working situation and to understand the culture of that organization. The Project given by the organization helps a lot to gain knowledge about their product and services and its competitors. Through this project, a trainee can understand and make comparison between them.

Need of the study

The need of the study arises because of the reason that a trainee must understand the company, its achievements and tasks, products and services and also to collect information about its competitors, its products and services offered. So that, after understanding and collecting information about the organization and its competitors, a trainee will be able to work well for the organization.

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Sharekhan Retail broking

Among the top 3 branded retail service providers (Rs 650 crs avg daily volApr Dec04 No. 2 player in online business Largest network of branded broking outlets in the country servicing 100,000 clients.

About SSKI : Eight Decades of Brokerage Excellence

SSKI Corporate Finance Private Limited (SSKI) ventured into Institutional Broking & Corporate Finance in year 1984. It is a leading India-based investment bank with strong research-driven focus. Their team members are widely respected for their commitment to transactions and for 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. At SSKI Corporate Finance, they provide investment banking and corporate finance services to the clients by leveraging the deep domain knowledge of their highly experienced professionals. They are the best research-driven investment bank involved in India-related equity transactions. Their investment banking team provides a full range of services, from private placements and public offerings to advisory work and mergers and acquisitions. SSKI Corporate Finance is in a very strong position to raise capital for the clients. They have deep and long-standing relationships with most prominent institutional investors in Indian equities; this strength is further bolstered by the relationships that the SSKI Institutional Equities sales team enjoys with institutional investors spread across the globe. Additionally, SSKI Corporate Finance is able to leverage the industry knowledge of the highly respected SSKI Institutional Equities research team - a pioneer in providing in-depth sell-side research on Indian equities to institutional investors. Apart from Sharekhan, the S. S. Katilal Ishwarlal Group also comprises of Institutional broking and corporate finance. The Institutional Broking division caters to 14

domestic and foreign institutional investors, while the Corporate Finance Division focuses on niche areas such as infrastructure, telecom and media. SSKI has been voted as the top brokerage house in research category, twice by Euromoney survey and four times by Asiamoney Survey.

Share khan is the retail broking arm of SSKI Securities Pvt Ltd. SSKI owns 56% in sharekhan, balance ownership is HSBC, First Caryle, and Intel Pacific. Into broking since 80 years Focused on providing equity solutions to every segment Largest ground network of 210 Branded Share shops in 90 Cities

SSKI Group Companies

SSKI Investor Services Ltd (Sharekhan) S.S. Kantilal Ishwarlal Securities SSKI Corporate Finance Idream Productions

Key Foreign Institutional Clients

Alliance Capital Management Emerging Markets Investment Management Edinburgh Fund Management Limited Foreign & Colonial Emerging Markets Goldman Sachs Investment Management

HEIRARCHICAL CHART OF THE ORGANIZATION

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SSKI GROUP & ITS DIRECTORS

GENERAL MANAGER

BRANCH MANAGER

ASSISTANT MANAGER

RELATIONSHIP MANAGER

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SSKI CORPORATE STRUCTURE

Sski securities pvt. Ltd

Morakhia family and associates Retail broking arm of the group 55.5% owned by morakhia(promoters) 18.5% owned by HSBC private equity India fund ltd. 18.5% owned by Carlyle ventures, mauritius . 77.5% owned by intel pacific inc.

Investment banking arm of the group 50.5 % owned by SSKI securities private ltd 49.5 % owned by Morakhia family

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SHAREKHANS BUSINESS GROWTH 1. NETWORK GROWTH

250

223
200

150

147 122

100

68
50

14
0 2001-2002

25

29

30

2002-2003

2003-2004

2004-2005(till July)

Branch

Franchisee

Sharekhan business and network has shown great improvement over the last few years.as we can see from the above graph that sharekhan has 14 branches in 20012002 which has increased to 30 in 2004-2005. The growth has also remained same for franchisee .In the year 2001-2002 the franchisee was 68 which has rose up to 223 in 2004-2005.

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2. REVENUE GROWTH

7000

6000

5000

1916

4000

653

3000

2000 819 466 716 0 55 207 Apr'01-Mar'02 3523

1000

877

Apr'02-Mar'03

Apr'03-Mar'04

Branch

Online

Franchisee

The revenue of the organization had also shown marked improvement in branch , online and franchisee. In april2001-march2002 the revenue of branch ,online and franchisee was 207,55,and716 whereas in april 2003-march2004 the revenue increased to 3523,653 and 1916.

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3. CLIENT-BASE GROWTH
90000 80000 70000
29796

60000 50000 40000

30991

30000 20000 10000 0

4872 2213 7742 6420

12512

22,086

20514

2001-2002 Ground Clients

2002-2003

2003-2004

2004-2005(till Nov) Franchisee Clients

Web clients

The clients of sharekhan had also increased over the years as we can see in above graph also.The ground clients and web clients in 2001-2002 was 2213 and 4872 whereas these numbers has increased significantly to 20514 and 30991 in 2004-2005 and also 29796 of franchisee clients also introduced.

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4. MARKET SHARE

2.00% 1.83% 1.80% 1.60% 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% 01-02 02-03 03-04

1.07%

0.67%

The market share of the organization has also increased. In 2001-2002 the market share of the organization was 1.07% which has declined to 0.67% in 2002-2003 but it had again rose to 1.83% in 2003-2004.

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PRODUCTS AND SERVICES OFFERED BY SHAREKHAN SHAREKHAN SERVICES

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Services provided by the SHAREKHAN :-1. Equities & Derivatives 2. Sharekhan equity analysis daily. 3. Depository Services :--Value added services for seamless delivery. :--Comprehensive services for independent investors, active traders & Non-Resident Indians. :--Premium research on 401+ companies updated

Equities and Derivatives

Our Retail Equity Business caters to the needs of individual Indian and Non-Resident Indian (NRI) investors. Sharekhan offers broker assisted trade execution, automated online investing and access to all IPO's. Through various types of brokerage accounts, Indiabulls offers the purchase and sale of securities which includes Equity, Derivatives and Commodities Instruments listed on National Stock Exchange of India Ltd (NSEIL), The Stock Exchange, Mumbai (BSE) and NCDEX.

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Choose the service options that fit you best:

Sharekhan Classic account - Comprehensive services including research and investing guidance for independent investors. Sharekhan Fast trade - Sharekhan is dedicated to empower Active Traders through personal service and advanced trading technology.

Sharekhan Speed trade plus - With an extensive range of investment products, you will discover an unwavering commitment to helping you invest in India.

Sharekhan equity analysis

Building and maintaining your ideal portfolio demands objective, dependable information. Sharekhan Equity Analysis helps satisfy that need by rating stocks based on carefully selected, fact-based measures. And because we're not focused on investment banking, we don't have the same conflicts of interest as traditional brokerage firms. This objectivity is only one important difference in our ratings

Type of categories
1. Evergreen: -These stocks are steady compounders, churning out steady growth rates year on year. They are typically significant players in their markets, with sound strategies that will help them achieve and sustain market dominance in the long run. They have strong brands, management credentials and a consistent track record of achieving super normal shareholder returns. We expect stocks in this category to compound at between 18-20% per annum for the next five to ten years.

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2. Apple Green: -These are stocks that have the potential to be steady compounders and are attempting to move upwards, to turn Evergreen. They rank a shade below the Evergreen companies, only because their potential in the five to ten years' time is still not very clear, although they might grow at rates faster than that of the Evergreen stocks in the next year or two. They could grow at 25-30% per annum over the next two to three years. 3. Emerging Star: -These are typically young companies, often in niche businesses, that have the potential to grow and dominate their niches. Even better, they might turn out to be real giants, if their niches explode into full-blown markets in their own rights. These stocks are potential ten-baggers but you need to be patient. 4. Ugly Duckling: -These are companies that are trading below their fair value or at values, which are at a significant discount to that of their peer group, due to a combination of circumstances. But things are now starting to happen in these companies or in their markets that are likely to cause a re-evaluation of their prospects. These stocks could double in two to three years' time. 5. Vulture's Pick: -These are companies with valuable assets or brands that have been trashed to ridiculously low prices. Buy a Vulture's Pick and wait for a predator who finds its assets undervalued to come along. This could be a long wait but the returns could be startlingly high.

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6. Cannonball: -These are companies with valuable assets or brands that have been trashed to ridiculously low prices. Buy a Vulture's Pick and wait for a predator who finds its assets undervalued to come along. This could be a long wait but the returns could be startlingly high. Research Coverage Amongst the widest coverages among broking houses in India. Total coverage exceeds some 100 stocks spread over 20 sectors Sectorwise investment strategies are in place Stock ideas are presented from time to time, in tune with overall strategy. Active coverage of political developments, economy changes

Depository Services

Sharekhan is a depository participant with the National Securities Depository Limited and Central Depository Services (India) Limited for trading and settlement of dematerialised shares. Sharekhan performs clearing services for all securities transactions through its accounts. We offer depository services to create a seamless transaction platform execute trades through Sharekhan Securities and settle these transactions through the Indiabulls Depository Services. ISharekhan Depository Services is part of our value added services for our clients that create multiple interfaces with the client and provide for a solution that takes care of all your needs.

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1.3 Problems of Organization

Share khan has been strongly committed not only to environmental conservation programs but also expresses the increasingly inseparable balance between the economic concerns and the environmental and social issues faced by a business. A business must not grow at the expense of mankind and mans future but rather must serve mankind. Share Khan has failed to evolve into a widespread internet broking firm because of its un-focused promotional strategies (advertisements in electronic media, newspapers, etc) across the length and breadth of India. Although it is a well known broking house in some states like Maharashtra, Gujarat, etc. it still lacks considerable awareness in the northern parts of India where its competitors have been building their reputation very rapidly. The other of Share Khan is that they give more attention to HNIs (high net worth individuals) as compared to retail investors. Most of the processing and clarifications (account opening, payments, etc) are routed to the head office in Mumbai due to lack of decision making powers of local branches which delays the speedy execution of decision

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1.4 Competitors Information

5paisa.com

Company Background Indiainfoline was founded in 1995 and was positioned as a research firm. In 2000 ebroking 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.

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

PRICING FOR RETAIL CLIENTS Investor Terminal Account Opening: Rs 500 Demat 1st Yr: Rs 250

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Initial Margin: Rs 2500(Compulsory) Min Margin Retainable: Rs 1000 Brokerage: Trading 0.10% each side + ST Delivery 0.50% each side + ST

PRICING FOR HNI CLIENTS Trader Terminal Account Opening: Rs 500 Demat 1st Yr: Rs 250 Initial Margin: Rs 5000(Compulsory) Min Margin Retainable: Rs 100 Brokerage: Trading 0.10% each side + ST Delivery 0.50% each side + ST (Negotiable to 0.05% each side & 0.25%)

Account Access Charges

Monthly Rs 800, adjustable against Brokerage Yearly Rs 8000, adjustable against brokerage

Deal Clinchers v/s 5 Paisa

Downtime Recent past 5 paisa Trader Terminal (T.T) is experiencing high frequency trade charting) 29 downtime

between 3 3:30 p.m due to server load (as their T.T is feature heavy compared to Speed

Manual Accounting The 5 paisa accounting system is manual, Online fund transfer through bank is not credited instantly. Limit is provided EOD for shares sold from DP, or call similarly limit released for shares sold under BTST is manual Delay in receiving pay-out of clear funds from trading to Bank Account

Min Account Balance

Concept of Min Rs 1,000 to be maintained in form of cash / securities to keep account active. This can be withdrawn only on closure of account.

Kotakstreet

Company Background
Kotakstreet is the retail arm of kotak securities. Kotak Securities limited is a joint venture between Kotak Mahindra Bank and Goldman Sach.

Online Account Types

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Twin Advantage / Green Channel: 2 DPs, Limit against shares Free Way: Flat Rs 999 Cover Charge p.m, 0.03% per transaction High Trader: 6 Times Exposure Cash & Derivatives, Auto sq off 2:55 PRICING OF KOTAK Account Opening: Rs 500 Demat: Rs 22.5 p.m Initial Margin: Rs 5000(Compulsory) Min Margin Retainable: Rs 1000 Brokerage Slab wise: Higher the volume, lower the brokerage. Even older customers (on 0.25% & 0.40%) have been moved to the slab wise structure.

Deal Clinchers v/s Kotakstreet Rigid Account Opening Terms

No Flexibility of A/c opening charges (Rs 500) + Compulsory margin Rs 5000/- Account opening free with Rs 10,000 Margin OR competitor Contract Note.

No Customization of commercial Terms

No Flexibility in Leverage Dependent on Type of Account ( 4 to 6 times only) No flexibility in Brokerage, driven by slab structure

Many Other Charges

Rs 22.5 p.m towards DP AMC charges DP incoming charges extra, 0.02% Rs 1,000 as retainable Margin to keep account active

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Rs 25 per call after 20 calls for the month

INDIABULLS

Company Background
India Bulls is a retail financial services company present in 70 locations covering 62 cities. It offers a full range of financial services and products ranging from Equities to Insurance. 450 + Relationship Managers who act as personal financial advisors

Online Account Type Signature Account: Plain Vanilla Account with focus on Equity Analysis. The
equity analysis is a paid service even for A/c holders

Power India bulls: Account with sophisticated trading tools, low commissions and
priority access to R.M

Pricing of IB Accounts

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Signature Account
Account Opening: Rs 250 Demat: Rs 200 if POA is signed, No AMC for this DP Initial Margin: NIL Brokerage: Negotiable

Power India Bulls

Account Opening: Rs 750 Demat: Rs 200 if POA is signed, No AMC for this DP Initial Margin: NIL Brokerage: Negotiable

Deal Clinchers v/s India Bulls

POA for Clients DMAT All shares held by client trading with IB are moved to IB Pool Account and the same is shown as a reflection in client DP account. Charges are levied to move shares from IB pool Account to client DP account

Paid Research Services

Access to a research even for an IB trading account holder is charged a min of Rs 500 a month

Margin funding hoax

The interest on funding starts on leveraged delivery trades from T+1 day itself @21% p.a, on a daily basis

The role of Relationship Manager

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Each RM is looked upon as a revenue generator and he gets a % on business generated from client. This can lead to over leveraged (Interest) & high frequency (Brokerage) trading, which may not be in the best interest of the client.

ICICIDirect

Company Background
ICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is an affiliate of ICICI Bank Limited and the Website is owned by ICICI Bank Limited

Account Types ICICI Direct e-invest Account: Plain Vanilla Account with focus on 3 in 1
advantage. Differentiated in services within the account

1. Cash on spot 2. Margin Plus 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.

34

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. Slab
wise brokerage ranges from 0.75% to 0.25% depending on volume. Deal Clinchers v/s ICICIDirect

Poor online Interface Slow website interface with no real-time quotes creates 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. Morning Trades Issue Being one of the websites with largest no of after hour orders which are pushed 1 st thing in the morning, creates a choking of orders to the exchange, causes delay of confirmations for new order placed during the early morning trades. Restriction of BTST The sale of shares purchased is restricted to T+1 day and is not permitted on T+2 Day.

35

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 The delivery brokerage is pegged at 0.75% and trading at 0.10% 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.

36

1.5 S.W.O.T. Analysis of Share Khan

A swot analysis focuses on there internal and external environments. Examining strengths and weaknesses in the internal environment and opportunities and threats in the external environment

STRENGTHS

Services
As a product share khan is a extremely innovative product with very less cost services like online trading facility institutional and domestic broking. Customized research with almost 80% efficiency etc. Share khan an edge over its research provides other support services that make retail investors more confident and assured with their trading. SMS alerts (allowing traders and investors to make the most of the available opportunities). Softer intangible features like amagers, equity driving preference. Through efficient trading processes investors can place their orders directly on the internet do all the information seeking and basically own the investing process.

Distribution network
Sharekhan with almost 250 branches spread across 123 cities beefed up by comprehensive online research advice and transaction services. In near future expect to make 200000-retail customers being serviced through centralized call centre/ web solution. 60 branches semi branches servicing affluent aggressive through highly skilled financial advisors. 250 independent advisory roles through fundamental & technical research and new initiatives are being made in portfolio management services & commodities trading.

Marketing
Sharekhan is a product of SSKI a veteran equities solutions company with over decades of experience in the Indian stock markets.

37

Sharekhan does not claim expertise in too many things. Shraekhans expertise lies in stocks and that what it talks about with authority. So when he saves that investing in stocks should not be confused with trading in stocks or a portfolio-based strategy is better than betting on a single horse. It is something that is spoken with years of focused and experience in the stock markets.

Products
Companys product line is quite flexible in the sense that there is a product for every kind of investors. Also all the products cover all the products offered by the other competitors like low cost user-friendly online trading services etc.

WEAKNESS
Localized presence due to insufficient investments for country wide expansion. Lack of awareness among customers because of non-aggressive promotional strategies (print media, newspapers, etc). Lesser emphasis on customer retention. Focuses more on HNIs than retail investors which results in meager share as compared to close competitors. market-

OPPORTUNITIES
The external environment analysis may reveal certain opportunities for profit and growth.

Ever-increasing market
After the NSE brought the screen based trading system stock markets are now more secured which has attracted lot of retail investors and the demand is increasing day by day. This has resulted in improved liquidity and heavy volumes on transaction. Share

38

khan is one of the early entrants here. As to how much it will roar swift it can swoop on the market, the future alone can answer such queries. Sharekhan has been a mega player and is known for being a mover of stocks. It is also known for putting big deals through and enjoys good networking with the FIIs. It has been dynamic enough to move with the times and capture the opportunities that the market throws up from time to time. Improving technology In county like India technology is always improving which gives the company a chance to keep on improving their product with time whereas for the small players like local brokers it will be difficult to keep the same pace as the changing technology. Also with SEBI lying down some strict guidelines small brokers are finding it harder to retain customers with no research department and small capital. The traditional business players may not have systems technology, customer services etc capable of directly servicing so many retail customers.

Education level
The education level in the country is improving year as far as technology goes. With that the understanding of the stock market is also increasing and a lot of retail investors are steeping in the markets which are being shown by increasing volumes, transactions and indices.

THREATS
Aggressive promotional strategies by close competitors may hamper Share Khans acceptance by new clients. Lack of sufficient branch-offices for speedy delivery of services. Other players are providing margin funds to investors on easy terms where as there is no such facility in share khan.

39

 More and more players are venturing into this domain which can further reduce the earnings of Share Khan.

OBJECTIVE & METHODOLOGY

2.1

SIGNIFICANCE OF THE STUDY

This project will accomplish to understand the problem faced by the new client with respect to online share trading and find ways to solve their queries at microscopic level. The study also aims to highlight the possible hurdles that a prospective client faces who are interested to investing in securities but is unaware of the system of online share trading. Its also aims at finding out the brand image of the organization amongst the general investors and give information to the management about the new developments in the market adopted by the competitors and the areas where the company needs to improve.

2.2 MANAGERIAL USEFULNESS OF THE STUDY

The stock market is one such institution whose very existence has been challenged by the growth in information technology. It has turned very idea of a stock market on its head. Technology has impact the working of stock markets in every sense. However, useful starting point for this study would be the study of dematerialization, or demat as it is popularly known as. This is simply because demat has change the way stocks are held and traded and therefore has effect on every other function of the market. Dematerialization in simple terms means the conversion of shares from physical to electronic form.

40

Demat, enabled by the use of technology is probably is single most important factor which has repercussions on every aspect of the stock markets. Demat in India started with the creation of NSDL (National stock depository limited) in 1996. UTI was one of the first institutions to use demat when it decided to dematerialize 50% of its holdings in 1997. SEBI gave a boost to demat, with compulsory trading on shares in demat form in specified scrips by institutional investors from Jan 15, 1998. Table: Number of scrips under compulsory demats and value of demat shares Timeline Mar 1999 Mar 2000 Oct 2000 Table:2.1 Consequently, an increasing percentage of the share trading is done in demat form: The exhibit below shows the percentage of demat shares in the total value traded at NSE over a period of 6 years. No. of scrips 31 462 1413 Year 2000 2001 2002 Value of demat shares 1,14,255 Cr 4,00,000 Cr 4,35,000 Cr

Table: percentage of trade in demat form Timeline Percentage of trade in demat form

Apr 1998 Dec 1999 Since 2003 Table2.2

2.5% 79.3% 99%

Dematerialization has benefited the market and the market players in more than one way.

Demat is instrumental in:

41

Abolition of market lots Introduction of rolling settlements Enhancing liquidity Brining stamp duty to zero Reducing chances of bad delivery Increased lending by banks and other FIs

SEBI extended demat to IPOs during capital reforms in capital markets in 2002. The premise being elimination of problems due to loss of allotment letters, share certificates etc., encouraging shareholders to out of for demat credit allotments, trading compulsorily in demat form within an option of holding shares in physical form for retail investors. BSE, the first exchange to be set up in India, started as a floor-based exchange. However, NSE, setup as an alternative to BSE, was an electronic (computerized) exchange. With advancements in technology, both these exchanges moved to SBTS (Screen Based Trading System) in `997. While NSE introduced NEAT (NSEs Online Trading System) in May 1997, BSE introduced BOLT (BSEs Online Trading System) in September 1997 in Mumbai. The outcome has phenomenal with respect to the number of trades taking place on these two exchanges. Further, trading in stocks has reached retail investors home via the Internet in 2003-2004, SEBI proposed Internet based trading under ORS (Order Routing System) Trading via Internet was an instant hit, with 18 members being granted licenses in 20042005 and trades touching 767 Cr. During the first six months itself. Although security concerns still exist regarding the safety of data transfer over the Internet, companies like VERISIGN and RSA, who specialize in security algorithms and data encryption ensure high degree of authenticity and trust in trades.

42

Information Flow
Any trading system disseminates data to market constituents, in other words, information is freely available. This has two disadvantages It makes easier for off-exchange transactions to occur because of availability of

information. It makes off-exchange transactions attractive due to absence of trading costs.

On the other hand rapid flow of information has also meant increased volatility in the markets. In financial terms, volatility is: The degree to which the price of a security, commodity, or market rises or falls within a short-term period. An obvious reason for market volatility is technology. This includes more timely information dissemination, improved technology to make trades and more kinds of financial instruments. The faster information is disseminated, the quicker markets can react to both negative and positive news. Improved trading technology makes it easier to make it easier to take advantage of arbitrage opportunities, and the resulting price alignment arbitrage causes. Finally, more kinds of financial instruments allow investors more opportunity to move their money to more kinds of investments positions when conditions change.

43

2.3
.

Objectives of the study

To develop the qualities required for a manager and provides an excellent learning opportunity.

To understand The Financial Market with due Focus on Trading in Stock Markets.

To understand the significance of share brokers as regards trading in Stock market.

To compare services provided by Share khan vis--vis other brokers. The SIP provides the students to know the actual working situation and understand the corporate culture.

To make understand how to undertake assignments/job along with the daytoday functions of the company.

To provide a platform to take up On-thejob training and develop a network which will be useful in enhancing career prospects.

To gain a deeper understanding of the work, culture, deadlines, work pressure and achieving targets of an organization.

2.4

Scope of the study

To study the present Competition Analysis of Sharekhan and Marketing and Promotion of Online trading account in the organization at various levels, company which can prefer this new technology to transfer their data with full security and reliability and with great speed of data transmission.

44

2.5 Methodology Primary Data

Methods of collecting primary data and the main methods include: questionnaires interviews focus group interviews observation

Secondary data
Secondary data is data that has already been collected by someone else for a different purpose to yours. For example, this could mean using: Data collected by a hotel on its customers through its guest history system Data supplied by a marketing organisation Annual company reports Government statistics.

THE RESEARCH PLANS

The development of research plan has the following steps: Data used is primary as well as secondary. Primary data was collected by personally visiting the Share broking houses. Secondary data was accessed through Internet, Brochures, and Business Dailies. Sample size. Data of 6 selected Share Broking Companies.

45

RESEARCH APPROACH: Surveys are best suited for descriptive research.

Surveys are undertaken to learn about peoples knowledge, beliefs, preferences, satisfaction and so on and to measure these magnitudes in the general public. Therefore I have done this survey for the descriptive research process

RESEARCH INSTRUMENT: Questionnaire was conducted for survey had both

closed-ended and open-ended. A questionnaire considered a set of question was presented to customers.

SAMPLING PLAN: The sampling plan calls for three decisions: SAMPLING UNIT: Sampling unit is who is to be surveyed? The target population
must be defined thats to be sampled it is necessary so as o develop sampling frames so that everyone in the target population has an equal chance of being sampled. My sample unit was key account outlets owner / business related persons in Delhi.

SAMPLE UNIT SIZE: Sample size is how many people have to be surveyed?
Generally, large samples give more results than the smaller samples. The sample refers to the number of respondents from the universe. My sample size was total 170 key account outlets in Delhi comprising all sale territory in Delhi i.e. south, north, central, west and east Delhi. 6 outlets were to be covered in a day.

CONTACT METHOD: Once the sampling plan has determined, the question was
how the subject should be contacted, i.e. by telephone, mail or personal interviews. But the single way to contact the subject was personal interviews.

SAMPLE TECHNIQUE: It is a plan for obtaining the sample. ANALYSE THE INFORMATION: The next step is to extract the pertinent
findings from the collected data. In this report the collected data is tabulated and developed frequency distribution. Thus frequencies and percentages were prepared to render impact of the study. 46

CONCEPTUAL DISCUSSION

47

Equity and Derivatives Trading Technical Research Depository Services

Fundamental Research
SHAREKHAN

Online Trading Simplifying it all for you

Share shops

Commodities Trading

Portfolio Management

Dial-n- trade

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FUTURE PLANS

2,00,000+ retail customers being serviced through centralized call centre / web solution.

90 branches/semi branches servicing affluent/aggressive traders through highly skilled financial advisors.

550 independent investment managers/franchisees servicing 90000 highly valued clients.

Strong advisory role through Fundamental & technical research. New initiatives - Portfolio Management Services & Commodities trading

49

MULTIPLE INVESTMENT OPTIONS

Share Shops Online Trading

Dial-n- Trade

For Customer Support

Website Call centre Live Chart SMS Relationship Managers

E-mail

50

SHAREKHAN ONLINE TRADING INTERFACES

The customer can choose the online trading interface that meets his requirement based on his trading habits and preferences. * CLASSIC / APPLET

The website is meant for customers who Invests in Equities.

* SPEEDTRADE EXE Based The speed trade is meant for customers who trade in Equities. * DIAL-N-TRADE Toll Free The DNT is a value added services meant for all customers who want to transact but are not online.

51

CLASSIC ACCOUNT
Online trading account for investing in Equities and Integration of: Online trading + Bank + Demat account. Instant cash transfer facility against purchase & sale of shares. Make IPO bookings online. Get Instant order and trade confirmations by e-mail. Single screen interface for cash and derivatives. Live terminal of NSE & BSE. BROKERAGE 0.50% (Delivery) 0.10% (Intra-day) Derivatives.

CHARGES:
Account Opening charges: Rs. 750(life time charges) ANNUAL MAINTENANCE CHARGES free for first year and Rs.300 from 2nd year onwards. DEMAT TRANSACTION CHARGES- NIL EXPOSURE- 4 to 8 times.

Trading through website: Live NSE and BSE terminal. Sharekhan provides research reports, which is sent to every customer on regular basis. Research Reports provided are(i) (ii) (iii) (iv) (v) Pre-Market Report. High Noon. Post Market Report. Investor Eye. Eagle Eye

Sharekhan also provides Sharekhan Valueline ( a monthly magazine for its customers).

52

SPEEDTRADE
Software based Account. Live terminal of NSE & BSE. Demat A/C is opened free of cost with online trading A/C. In it one can see 500 scripts at a time on the live terminal. BROKERAGE 0.50% (Delivery) 0.10% (Intra-day)

CHARGES:
Account Opening - Rs.1000 (lifetime charges) Annual Maintenance Charges Free for 1st year & Rs.300 from 2nd year onwards. Demat Transaction Charges - Nil. Exposure - 4 to 8 times Software Maintenance Charges Rs.500p.m. (waived if brokerage generated >=Rs.500p.m.)

DIAL-N-TRADE
A person can do trading through Dial-n-trade option by calling on 1.800.22.7050 landline. Automatic funds transfer with phone banking (for Citibank and HDFC bank customers) OR 30307600. or TWO dedicated numbers for placing your orders with your cell phone

53

Simple and Secure Interactive Voice Response based system for authentication. No waiting time. Enter TPIN to be transferred to our telebrokers. Trusted, professional advice of telebrokers. After hours order placement facility between 8.00 am and 9.30 am.

Sharekhan has also an Alert Section. Alerts are basically the messages sent to the customers for confirming or informing about events in the market. The Alerts are Trade alerts, Research alerts, Information alerts, Email alerts, SMS alerts. Trade Alerts are exclusively for trading customers. Whenever an order of a person is executed, cancelled, modified or if an account has been debited or credited or any other such transactions take place, they can notify that person about the event and its details. Research Alerts are exclusively for trading customers. A customer can keep his stocks updated with latest investment Ideas and Trading Calls on a real time basis. Information and Other Alerts are available to Trading and Registered users of Sharekhan. A person set alert to receive his Portfolio Valuation at the end of the day, content alerts like News, Board meeting etc. Email Alerts- Along with the mandatory notifications, he can also choose to get additional alerts delivered directly to the inbox of his choice. SMS Alerts- Through SMS, a customer can get latest alerts in his mobile and update with latest investment ideas.

54

STEPS FOLLOWED TO OPEN AN ACCOUNT

Step: 1

Step: 2

Get the Leads

Make calls

Step: 4

Step: 3

Attend the Appointment

Fix the Appointment

Step: 5

Step: 6

Documentations

Account Opened

Step: 8 Make the client traded

Step: 7 Trading Kites

55

SHAREKHANS CONVENIENT, SECURE AND AUTOMATED DEMAT SERVICES

Dematerialization and trading in the demat mode is the safer and faster alternative to the physical existence of securities. Demat as a parallel solution offers freedom from delays, thefts, forgeries, settlement risks and paper work. This system works through depository participants (DPs) who offer demat services and the securities are held in the electronic form for the investor directly by the Depository. Sharekhan Depository Services offers dematerialization services to individual and corporate investors. They have a team of professionals and the latest technological expertise dedicated exclusively to the demat department, apart from a national network of franchisee, making their services quick, convenient and efficient. At Sharekhan, commitment is to provide a complete demat solution which is simple, safe and secure.

Therefore,

Share Khan provides a user-friendly online trading facility that will help to

every customer in the investment of shares.

56

ONLINE MONEY TRANSFER Share Khan has a tie-up with 7 banks.

HDFC Bank CITI Bank UTI Bank IDBI Bank IndusInd Bank Union Bank of India Oriental Bank of Commerce

Sharekhan offers a full range of financial services and products ranging from Equities to Derivatives enhance customers wealth and hence, achieve their financial goals. To Sharekhan Clients, Relationship Managers are available to help about their financial planning and investment needs. ShareKhan also provides services like if a person is interested in opening an account, he can call at Toll free number - 1-600-7500. A person can also call on 022-66621111 if he is in Mumbai. Alternatively he can call on 39707500 (Local Call Charges).

57

PRICING FOR RETAIL CLIENTS Investor Terminal Account Opening: Rs 500 Demat 1st Yr: Rs 250 Initial Margin: Rs 2500(Compulsory) Min Margin Retainable: Rs 1000 Brokerage: Trading 0.10% each side + ST Delivery 0.50% each side + ST PRICING FOR HNI CLIENTS Trader Terminal Account Opening: Rs 500 Demat 1st Yr: Rs 250 Initial Margin: Rs 5000(Compulsory) Min Margin Retainable: Rs 1000 Brokerage: Trading 0.10% each side + ST Delivery 0.50% each side + ST (Negotiable to 0.05% each side & 0.25%) Account Access Charges Monthly Rs 800, adjustable against brokerage Yearly Rs 8000, adjustable against brokerage

58

Rigid Account Opening Terms No Flexibility of A/c opening charges (Rs 500) + Compulsory margin Rs 5000/Account opening free with Rs 10,000 Margin OR competitor Contract Note.

No Customization of commercial Terms

No Flexibility in Leverage Dependent on Type of Account ( 4 to 6 times only) No flexibility in Brokerage, driven by slab structure

Many Other Charges

Rs 22.5 p.m towards DP AMC charges DP incoming charges extra, 0.02% Rs 1,000 as retainable Margin to keep account active Rs 25 per call after 20 calls for the month

Restricted Access to Terminal like product

KEAT Desktop restricted distribution on payment of Rs 500, Non refundable

ONLINE ACCOUNT TYPE

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Signature Account: Plain Vanilla Account with focus on Equity Analysis. The equity analysis is a paid service even for A/c holders.

Power Indiabulls: Account with sophisticated trading tools, low commissions and priority access to R.M

Pricing of IB Accounts Signature Account Account Opening: Rs 250 Demat: Rs 200 if POA is signed, No AMC for this DP Initial Margin: NIL Brokerage: Negotiable Power IndiaBulls Account Opening: Rs 750 Demat: Rs 200 if POA is signed, No AMC for this DP Initial Margin: NIL Brokerage: Negotiable PAID Research SCHEME WebBased-1-Month-500: WebBased-1-Year-6000 PrintReport-1-Month-750: FACILITY View & Print on website View & Print on website View & Print on website + 10 Reports Delivered

60

PrintReport-1-Year-9000:

View & Print on website + 10 Reports Delivered

SHAREKHAN V/S INDIABULLS POA for Clients DMAT All shares held by client trading with IB are moved to IB Pool Account and the same is shown as a reflection in client DP account. Charges are levied to move shares from IB pool Account to client DP account

Paid Research Services Access to a research even for an IB trading account holder is charged a min of Rs 500 a month Margin funding hoax The interest on funding starts on leveraged delivery trades from T+1 day itself @21% p.a, on a daily basis

The role of Relationship Manager Each RM is looked upon as a revenue generator and he gets a % on business generated from client. This can lead to over leveraged (Interest) & high frequency (Brokerage) trading, which may not be in the best interest of the client.

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ICICIDIRECT ACCOUNT TYPES ICICI Direct e-invest Account: Plain Vanilla Account with focus on 3 in 1 advantage. 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 < 10 lakhs 10 lakhs - 25 lakhs

Brokerage *

Square Vol off p m

Brokerage **

0.75% 0.70%

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25 lakhs -50 lakhs 50 lakhs 1 Cr 1 Cr 2 Cr 2 Cr 5 Cr > 5 Cr

0.55% 0.45% 0.35% 0.30% 0.25%

SHAREKHAN V/S ICICIDIRECT Poor online Interface Slow website interface with no real-time quotes creates 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 there is no control of square off price.

Morning Trades Issue Being one of the websites with largest no of after hour orders which are pushed 1 st thing in the morning, creates a choking of orders to the exchange, causes delay of confirmations for new order placed during the early morning trades

Restriction of BTST The sale of shares purchased is restricted to T+1 day and is not permitted on T+2 Day.

63

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 The delivery brokerage is pegged at 0.75% and trading at 0.10% 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.

HDFC SECURITIES ONLINE ACCOUNT TYPE HDFC Online Trading A/c: Plain Vanilla Account with focus on 3 in 1 advantage PRICING OF HDFC ACCOUNT Account Opening: Rs 750 Demat: NIL, 1st year charges included in Account Opening Initial Margin: Rs 5000/- for non HDFC Bank customers (AQB) Brokerage: Trading 0.15%* each side + ST

64

Delivery 0.50%** each side + ST * Rs 25 Min Brokerage per transaction ** Rs 8 Min Brokerage per transaction

SHAREKHAN V/S HDFC SECURITIES Poor online Interface Apart from having no product to cater to Day-Traders, the hdfcsec.com website is plagued with downtime. The same is currently being revamped.

Lack of focus on Broking The core business of HDFC is Housing Finance and that of HDFC Bank is banking. Broking as a business is a small part of the portfolio of financial services and hence the commitment to resources is limited.

No Leverage No leverage is available to clients even for Intra-Day trades, effectively all clients are on cash and carry system.

No flexibility in commercial terms The delivery brokerage is pegged at 0.5% and trading at 0.15% each side, this makes it unviable for customers dealing in large volumes.

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ACCOUNT OPENING CHARGES

SHAREKHAN - Rs.750 (Classic), Rs.1000 (Speed Trade).

Kotak securities - Rs.500

ICICIdirect

- Rs.750 (waive off if trading is more than Rs.100000)

5Paisa.com

- Rs.555

Indiabulls

- Rs. 250 (Signature), Rs.750 (Power Indiabulls)

HDFCsec

- Rs. 750.

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ANNUAL MAINTENANCE CHARGES SHAREKHAN - Free for 1st year & Rs.300p.a. From 2nd year onwards.

Kotak securities - Rs. 300 p.a.

ICICIdirect

- Rs.500p.a.

5Paisa.com

- Rs.250 p.a.

Indiabulls

- No AMC.

HDFCsec

- Rs.300.p.a

BROKERAGE

SHAREKHAN - 0.50% (Delivery) 0.10% (Intra-day)

Kotak securities -0.65% (Delivery) 0.10% (Intra day)

ICICIdirect

- 0.85% (Delivery) incl.taxes 0.15% (Intra-day) incl.taxes

67

5Paisa.com

- 0.25% (Delivery) 0.05% (Intra-day)

Indiabulls

- 0.50 %( Delivery) 0.10 %( Intra-day)

HDFCsec

- 0.50%(Delivery) 0.15( Intra-day)

IPO ONLINE FACILITY

SHAREKHAN Available

Kotak securities - Available

ICICIdirect

- Available

5Paisa.com

- Available

Indiabulls

- Available

HDFCsec

- Available

SOFTWARE CHARGES
SHAREKHAN (Speedtrade)- Rs.500 p.m.

68

(Waive off if brokerage generated is Rs.500 p.m.) (Classic) - No Charge

Kotak securities No Software.

ICICIdirect

No software

5Paisa.com -

Rs.8, 000 p.a.

Indiabulls -

No Software.

HDFCsec -

No Software.

TRADING
SHAREKHAN -BSE / NSE / Derivatives / IPO / PMS / Mutual Funds / Commodities.

Kotak securities -NSE /Mutual Funds / Derivatives

ICICIdirect -BSE / NSE / Derivatives / IPO / PMS/ Mutual Funds/ Commodities.

5Paisa.com -NSE / Derivatives / Mutual Fund /

Arbitrage on delivery.

69

Indiabulls NSE/BSE/Derivatives/PMS/Mutual Funds.

HDFCsec - NSE/BSE/IPO/Mutual Funds/ Equity & Derivatives.

MINIMUM MARGIN REQUIREMENT (compulsory)

SHAREKHAN -NIL

Kotak securities Rs. 5000/ICICIdirect 5Paisa.com Indiabulls -NIL -Rs.5000/- NIL

HDFCsec -Compulsory for non HDFC bank customers Rs. 5000

TYPES OF ACCOUNTS
SHAREKHAN -Classic & Speed Trade. Kotak securities Kotak Fast Lane/ KEAT desktop. ICICIdirect 5Paisa.com - ICICI direct e-invest account. -Trader Terminal (Day Trader and HNI) & Investor Terminal.-(Students and Investor) Indiabulls HDFCsec - Signature Account and Power Indiabulls. HDFC Online Trading account.

70

DP CHARGES
SHAREKHAN - Nil. Kotak securities Not included in Brokerage Extra charge for DP. ICICIdirect 5Paisa.com - Included in brokerage. -0.05% or minimum Rs.20 Per transaction (on selling). Indiabulls - Charges are levied to move from IB account to Client DP account. HDFCsec - Included in brokerage.

DIAL-N-TRADE FACILITY
SHAREKHAN - All calls free on toll free no. Kotak securities - Local Call charges. ICICIdirect 5Paisa.com Indiabulls HDFCsec - First 20 calls free & Rs. 20 per call onwards. - Local call charges. - Local call charges. - Local call Charges.

BUY TODAY SELL TOMORROW (BTST)

SHAREKHAN-

Available.

Kotak securities - Not Available.

ICICIdirect -

Available only on 127 scripts of NSE.

71

5Paisa.com -

Available.

Indiabulls HDFCsec -

Available. Available.

SMS FACILITY
SHAREKHAN Rs.100 p.m.

Kotak securities - N.A. ICICIdirect 5Paisa.com Indiabulls HDFCsec Free N.A. N.A. N.A.

EXPOSURE
SHAREKHAN - 4 to 8 times. Kotak securities - 4 times. ICICIdirect 5Paisa.com - 4 times. - 4 to 6 times Online 10 times Offline. Indiabulls HDFCsec - 4 to 15 times. - N.A.

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DATA ANALYSIS
Software/Website liked by customers SOFTWARE/ WEBSITE LIKED BY CUSTOMERS? ICICI direct Sharekhan Kotak Indiabulls Paisa5 HDFCsec 28.8% 24.4% 17.6% 12.4 % 11.2% 5.6%

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SOFTWARE/WEBSITE LIKED BY CUSTOMERS?

12.4% Indiabulls

HDFCsec 5.6%

Sharekhan

24.4%

Paisa 5

Kotak
11.2%

ICICIdirect

17.6%

28.8%

INTERPRETATION 28.8% customers like the Software/Website of ICICI Direct 24.4% customers like the Software/Website of Sharekhan 17.6% customers like the Software/Website of Kotak 12.4% customers like the Software/Website of Indibulls 11.2% customers like the Software/Website of Paisa5 5.6% customers like the Software/Website of HDFC Sec

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Satisfaction in services provided by different stock broking companies SATISFACTION IN SERVICES PROVIDED BY DIFFERENT STOCK BROKING COMPANIES Sharekhan ICICIdirect Kotak Indiabulls Paisa5 HDFC Sec 26.8% 24.8% 18.4% 14.4% 9.6% 6.0%

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SATISFACTION IN SERVICES PROVIDED BY DIFFERENT STOCK BROKING COMPANIES ?

6.0%
HDFCsec Indiabulls Sharekhan

14.4%
Paisa 5 Kotak ICICIdirect

26.8%

9.6% 18.4% 24.8%

INTERPRETATION
26.8% respondent's are satisfy in services provided by Sharekhan 24.8% respondent's are satisfy in services provided by ICICI Direct 18.4% respondent's are satisfy in services provided by Kotak 14.4% respondent's are satisfy in services provided by Indiabulls 9.6% respondent's are satisfy in services provided by Paisa5 6.0% respondent's are satisfy in services provided by HDFC Sec.

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On the basis of Research ON THE BASIS OF RESEARCH Sharekhan Kotak ICICIdirect Indiabulls HDFCsec Indian infoline 21% 20% 17% 15% 14% 13%

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O N T H E B AS IS O F R E S E AR C H

HDF C S EC 14% INDIABULLS 15% INDIAINF O LIN E ICICI DIRECT 13% 17%

S HAREKHAN 21%

KO T AK 20%

INTERPRETATION
21% respondent's are satisfy on the basis of research done by

Sharekhan
20% respondent's are satisfy on the basis of research done by Kotak 17% respondent's are satisfy on the basis of research done by ICICI

Direct
15% respondent's are satisfy on the basis of research done by

Indiabulls
14% respondent's are satisfy on the basis of research done by HDFC

Sec.
13% respondent's are satisfy on the basis of research done by Indian

Infoline

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RESULT OF THE ANALYSIS

Sharekhan provides highly authentic reports. It provides maximum comfort to the customers in terms of account opening by providing personalized services. It has networking with seven top leading banks for funds transfer.

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FINDINGS & RECOMMENDATIONS

FINDINGS
Sharekhan has a competitive edge over its competitors in Research reports and Online Live Terminal. Sharekhan is one of the few brokers providing Software based Online Trading Account. Sharekhan still lags behind ICICIdirect as far as no. of customers is concerned because of patronage enjoyed by the ICICI Bank. Sharekhan give completely toll free no. unlike ICICIdirect & 5paisa.com. Sharekhan provides after hour order placement facility. In Sharekhan, No minimum balance is compulsory but In 5 paisa and Kotak, Concept of Min Rs 1,000 to be maintained in form of cash / securities to keep account active. This can be withdrawn only on closure of account.

In Sharekhan, the interest on funding starts on leveraged delivery trades from T+2 day itself @14% p.a, on a daily basis and in Indiabulls its from T+1 itself @ 21% p.a.

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RECOMMENDATIONS

They need to maintain their competitive edge by large scale advertisement They need to innovate new software in this line. The customers are expecting frequent and timely correspondence from the consultancy regarding their funds and monthly market overview.Therefore the organization needs to give more weightage on this concern.

The organization should focus on developing long term relationships with customers.

The organization should focus on their service segment as customers are highly dissatisfied with after sales service.

The organization should have CRM(Customer Relationship Manager) which will have a greater impact of the company in the minds of the people.

The maximum amount of awareness which has been generated is through newspapers and tv.So the company should take care of it as it can be one of the potential media for advertisements.

The organization must also give free SMS facility to their customers as ICICI is also providing.

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Most of the respondents have their own

personal, consultant or company

consultants. Sharekahn have to differentiate their services from other consultant effectively by delivering value added services to their sustomers.

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CONCLUSIONS
As most of the respondents who were taken as our sample unit were from middle class or upper middle slass, they have a decent amount of saving. 21% of respondents are satisfied with the research report provided by Sharekhan,26.8% respondents are satisfied with the services provided by Sharekhan , but only 24.4% like the software/website provided whereas 28.8% respondents like the software/website provided by ICICI direct. So it is important for the organization to make its website/software customer friendly so that the customers may not find any difficulty in operating the website/software.

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ANNEXURE

QUESTIONNAIRE

Name : Gender : Age : Marital status : Occupation : Company : Mobile no :

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Q1

Are you aware of the market condition now a days? [ ]yes [ ]no

Q2 What is the source of your stock market information? [ ]TV channels [ ]newspapers [ ]others

[ ]sharekhan research magazines Q3. What is your investment pattern? [ ] fixed deposits and bonds [ ] gold [ ] mutual funds and commodities [ ] stocks Q4. Which segment you prefer to deal in? [ ] online [ ] offline

Q5. If offline, what would be your preference? [ ] local [ ] corporate

Q6. If corporate, which one would be your preference? [ [ [ [ [ [ [ [ ] sharekhan ] kotak securities. ] icici direct ] indiainfoline. ] indiabulls. ] hdfc securities. ] research reports. ] customer care.

Q7. And why?

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[ [ [ [ [

] software/ website. ] brokerage. ] any. ]yes ]no

Q8 Are you satisfied with the facilities given to you by the company?

Q9. If no, specify the reason______________ Q10. How would you rate the following companies? A. on the basis of research on a scale of 5? sharekhan [1 2 3 4 5] kotak securities [1 2 3 4 5] icici direct [ 1 2 3 4 5 ] indiainfoline [ 1 2 3 4 5 ] indiabulls [1 2 3 4 5 ] B. on the basis of customer care and after sale services? sharekhan [ 1 2 3 4 5 ] kotak securities [ 1 2 3 4 5 ] icici direct [ 1 2 3 4 5 ] indiainfoline [1 2 3 4 5 ] indiabulls [ 1 2 3 4 5 ] C. on the basis of software/ website? sharekhan [ 1 2 3 4 5 ] kotak securities [ 1 2 3 4 5 ] icici direct [ 1 2 3 4 5 ] indiainfoline [1 2 3 4 5 ] indiabulls [ 1 2 3 4 5 ]

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FINANCIAL STATEMENT OF SHARE KHAN

(Rs in crores) Year ended 31st March Net profit (Rs cr) No of shares (cr) EPS (Rs) yoy change (%) PER (x) Price/BV (x) EV/EBIDTA(x) RoCE (%) RoNW (%) FY2003 -0.4 0.8 -0.6 13.0 150.7 7.8 -5.5 FY2004 1.4 0.8 1.8 72.0 13.0 45.9 14.3 18.1 FY2005 2.7 1.1 2.4 32.9 54.2 13.0 26.5 18.7 23.9 FY2006 7.1 1.4 5.2 116.3 25.0 7.4 14.6 29.8 29.6 FY2007 15.9 1.4 11.6 123.9 11.2 3.4 7.1 36.2 30.2

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PROFIT AND LOSS STATEMENT OF SHARE KHAN

(Rs in crores) Particulars Sales Expenditure EBITDA Depreciation Interest Other income PBT Tax PAT items Net profit FY2003 28.6 27.9 0.7 0.5 1.1 0.4 -0.4 0.0 -0.4 -0.2 -0.7 FY2004 53.4 Total 50.9 2.4 1.2 1.2 1.4 1.4 0.0 1.4 Extraordinary -1.1 -0.2 0.3 2.5 79.5 5.9 2.0 1.3 0.2 2.9 0.2 2.7 0.0 7.1 149.5 12.1 3.1 1.4 0.2 7.9 0.8 7.1 274.4 23.9 4.5 1.9 0.3 17.7 1.8 15.9 0.0 15.9 FY2005 85.5 FY2006 161.7 FY2007 298.3

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BALANCE SHEET OF SHARE KHAN

(Rs in crores) Particulars FY2007 Share capital 13.7 Reserves and Surplus 39.1 Networth 52.7 Total debt 18.5 Capital employed 71.2 Net fixed assets 3.2 CWIP 3.0 Investments 1.5 Intangible assets 4.5 Net current assets 59.1 Deferred revenue Expenditure 0.0 P/L debit balance 0.0 Capital deployed 71.2 FY2003 7.9 0.0 7.9 9.0 16.9 1.4 0.0 0.0 1.6 9.6 1.5 2.8 16.9 FY2004 7.9 0.0 7.9 11.6 19.6 1.5 0.9 1.5 1.0 11.2 0.9 2.5 19.6 FY2005 11.4 0.0 11.4 12.0 25.1 2.5 2.2 1.5 3.2 15.5 0.2 0.0 25.1 FY2006 13.7 10.3 24.0 13.1 37.1 1.7 6.0 1.5 3.8 24.2 0.0 0.0 37.1

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BIBLIOGRAPHY
Books
Philip kotler , Marketing ManagemntPrentice Hall Of India.New Delhi,10th edition ,2001 Kothari C.R.Research MethodologyWishwa Prakashan,New Delhi,2nd edition ,2001. Kulkarni M.V.Marketing ResearchEverest Publishing House,Mumbai, Millinium edition,2001.. Training Kit Provided by the Sharekhan. Indian financial system by M.Y KHAN NSDL Depository operations module :--NCFM The Economic Times ,Business Standard ,Business Line.

Websites:
www.indiainfoline.com www.economics times.com http://www.investopedia.com/articles/ www. nse-india.com www.bseindia.com www.moneycontrol.com www.sharekhan .com

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