A Summer Training PROJECT REPORT ON (Acquisition of Demat and Trading Account For Edelweiss Broking Limited)

A report submitted to Mahamaya Technical University for the partial Fulfillment of MBA Degree

2010-12
Submitted to :Prof. Hari Prakash Maheshwari Director MBA Greater Noida Institute of Technology Submitted by: Sandeep Kumar Yadav MBA - IIIrd Sem. Roll No. 1027270091

Greater Noida Institute of Technology (Management Institute) Code: 272 7, Knowledge Park-II, Greater Noida (U.P)

CERTIFICATE

This is to certify that the SUMMER TRAINNING Project Report entitled Acquisition of Demat and Trading Account For Edelweiss Broking Limited being submitted by Sandeep kumar yadav fulfillment of the requirement of U.P.Technical University is a record of an independent work done by his under my guidance and supervision.

Prof. Hari Prakash Maheshwari Director-MBA Greater Noida Institute of Technology (Management Institute)-Code: 272 Concerned Faculty Guide Ms. Neelam Sharma GNIT, Greater Noida.

DECLARATION

I,______________________, hereby declare that the

project report entitled Acquisition of

Demat and Trading Account For Edelweiss Broking Limited, being submitted to
the MAHAMAYA TECHNICAL UNIVERSITY for the partial fulfillment of the requirement for the degree of Master of Business Administration is my own endeavors and it has not been submitted earlier to any institution/university for any degree.

Place:

Date:

TABLE OF CONTENT
Particulars Pg. No.

Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Companys Certificate Acknowledgement Declaration Executive Summary Industry Profile Company Profile Research Objectives Research Methodology Major Players in Industry Brokerage details of the competitors Data Analysis Conclusion Recommendation Bibliography Annexure

2 3 5 6 8 13 21 25 26 27 32 48 49 50 51

CHAPTER-1
OBJECTIVES AND LIMITATIONS OF PROJECT

OBJECTIVES:
The objectives for the project given to me and as well as a sneak peek as to what I did so as to attain them are given below:1. Sales promotion of demat and trading account: As per this objective, I had to increase the sales of the demat and trading account for Sharekhan Limited. This objective of the project was completed by me through direct as well as indirect interaction with customers. The details of this are given in the later part of the project. 2. Find out the competitive advantage Sharekhan has over its competitors: As per this objective, I was given the task of visiting different broking houses and collect data as what are they offering to their customers. It also required SWOT analysis, PESTLE analysis and Porters Five Forces analysis. This project gave a chance to interact with competitors and to know and understand as to what are they offering to customers so as to increase their market share. The details of this are provided in the later part of the report. 3. Find out the customer satisfaction: This objective was of great importance as Sharekhan believes in serving its customers to the best. This objective required me to conduct a survey among the present clients/customers of Sharekhan so as to know their satisfaction level. This required one on one interaction with the clients as well as through

calls made to them by the relationship managers assigned to them and data was collected through a questionnaire. The details of this objective is provided afterwards. 4. Find out the customer preference: This objective required me to collect data personally through a survey in which people were asked questions which were able to generate data which could be useful for Sharekhan Limited.

Overall Limitations:
There were many problems in a whole which I faced during the project. The problems faced are given as follows:-

a) The intervention from the side of management was high which restricted the freedom in performing the things I wanted to do. b) The guidelines for performing the objectives were given before hand hence leaving no scope for innovation. c) The data has been collected for 200 on a whole which is a very small sample size and thus cannot generalize the results of the findings. d) There were numerous problems which were faced while setting up canopy. From getting the required permission to the resistance from the people in front of whose office we setup it. This restricted the effectiveness of canopy as a sales promotion tool. e) The respondents were hesitant in providing information which was a barrier in my research work. f) Many of the answers given by respondents were contradictory so I had to discard few of the questionnaires. g) It was very difficult to contact prospective clients at various organizations as without references they do not allow any one to meet with them.

Executive Summary

There is growing competition between brokerage firms in post reform India. For investor it is always difficult to decide which brokerage firm to choose.

Research was carried out to find which brokerage house people prefer and to figure out what people prefer while investing in stock market.

Through this report I was also able to understand, what are our Companys (Edelweiss Broking Ltd.) positive and strong points, on the basis of which we come to know what can be the basis of pitching to a potential client .This project focuses on the strength areas of the company while at the same time tries to identify the weak areas so that it can be overcome. A comparative analysis of Edelweiss with other broking firms has been done.I went for the field work, talked to customers and tracked their investment pattern to help them suggest the kind of financial product they should use according to their risk appetite.

Adding to this, I have been communicating with different types of customers through various media, including client visits, who fall under the sample space for this project. My job here is to advice them to take the suitable products offered by the company, depending on certain criteria, in order to make investing easier for them. I have also worked as a part of sales force of the company and sold Demat account.

I have visited to many places in Gurgaon. Some of the data has been collected from the customers regarding their views about Edelweiss. Having said that, a comparative study has carried out to see where Edelweiss stands in the race for offering Products and services. I have been handling the profile of Customer Relationship Management. I have been talking to existing retail clients of the company over the phone, asking for an appointment following which there will be client visit. In the visit the main focus would be to convince the clients to do more business with the company and telling them about the benefits provided by the company. So tracking the transformation is really interesting and worth appreciating. I have concentrated on existing and dormant clients trying to know their opinion about their association with Edelweiss. Interaction with the clients helped to know the image of the company in the minds of the customers and it helped me to come up with suggestions to further improve the services of the company. I hope my findings are useful for the company.

INTRODUCTION

The Indian broking industry is one of the oldest trading industries that have been around even before the establishment of BSE in 1875

Inception- The roots of a stock market in India began in the 1860s during the American Civil War that led to a sudden surge in the demand for cotton from India resulting in setting up of a number of joint stock companies that issued securities to raise finance.

Bubble burst- The early stock market saw a boom till 1865, and then in Jul 1865, what was then used to be called the share mania ended with burst of the stock market bubble. In the aftermath of the crash, banks, on whose building steps share

brokers used to gather to seek stock tips and share news, disallowed them to gather there, thus forcing them to find a place of their own, which later turned into the Dalal Street. A group of about 300 brokers formed the stock exchange in Jul 1875, which led to the formation of a trust in 1887 known as the Native Share and Stock Brokers Association

Beginning of a new phase- A new phase in the Indian stock markets began in the 1970s, with the introduction of Foreign Exchange Regulation Act (FERA) that led to divestment of foreign equity by the multinational companies, which created a surge in retail investing.

Growth supporting factors-The early 1980s witnessed another surge in stock markets when major companies such as Reliance accessed equity markets for resource mobilization that evinced huge interest from retail investors. A new set of economic and financial sector reforms that began in the early 1990s gave further impetus to the growth 6

of the stock markets in India.

Setting up of SEBI- the Securities and Exchange Board of India (SEBI), which was set up in 1988 as an administrative arrangement, was given statutory powers with the enactment of the SEBI Act, 1992. The broad objectives of the SEBI includeto protect the interests of the investors in securities

to promote the development of securities markets and to regulate the securities markets

Incorporation of NSE- NSE was incorporated in Nov 1992 as a tax paying company, the first of such stock exchanges in India, since stock exchanges earlier were trusts, being run on no-profit basis. NSE was recognized as a stock exchange

under the Securities Contracts (Regulations) Act 1956 in Apr 1993. It commenced operations in wholesale debt segment in Jun 1994 and capital market segment (equities) in Nov 1994. The setting up of the National Stock Exchange brought to Indian capital markets several innovations and modern practices and procedures such as nationwide trading network, electronic trading, greater transparency in price discovery and process driven operations that had significant bearing on further growth of the stock markets in India. To speed the securities s e t t l e m e n t p r o c e s s , T h e 1 9 9 6 w a s p a s s e d t h a t allowe for dematerialization (and dematerialization) of securities in depositories and the transfer of securities through electronic book entry. The National Securities D e p o s i t o r y L i m i t e d ( NSDL) s e t u p Depositories A c t

b y l e a d i n g f i n a n c i a l institutions, commenced operations in Oct 1996.

Despite passing through a number of changes in the post liberalization period, the industry has found its way towards sustainable growth. A stock Broker is a regulated professional who buys and sells shares and other securities through market makers or Agency Only Firms on behalf of investors. To work as a broker a certificate of registration 7

from SEBI is mandatory after satisfying all the terms and conditions.

FINANCIAL MARKETS

The financial markets have been classified as Cash market (spot market) largest traded, the spot market or cash market is a commodities or securities market in which goods are sold for cash and delivered immediately. Derivatives market after cash market, the derivatives markets are the financial markets for derivatives. The market can be divided into two that for exchange traded derivatives and that for over-the-counter derivatives. Debt market - The bond market (also known as the debt, credit, or fixed income market) is a financial market where participants buy and sell debt securities. Commodities m ar k et af t e r com m odi t i es m ar k et , C o m m o d i t y m a r k e t s a r e markets where raw or primary products are exchanged. These raw commodities are traded on regulated commodities exchanges, in which they are bought and sold in standardized contracts.

NEED OF A BROKER

A broker is a person or firm that facilitates trades between customers. It is advisable to conduct transactions through an intermediary. For example one needs to transact through a trading member of a stock exchange if they intend to buy or sell any security on stock exchanges. One needs to maintain an account with a depository if they intend to hold securities in demat form. You need to deposit money with a banker to an issue if you are subscribing to public issues. One gets guidance if you are transacting through an

intermediary. A broker acts as a go between and, in doing so, does not assume any risk for the trade. The broker does, however, charge a commission. A broking firm acts as an intermediary between NSE and Client. Stock Brokers come under the category of Market Players. The membership in the stock exchange can be granted as individual membership and corporate membership.

NSE

BROKER

CLIENT

The market intermediaries play an important role in the development of Securities Market by providing different types of services. There are two major stockexchanges NSE (composition of 50 stocks) and BSE (Composition of 30 stocks).

Edelweiss Capital Limited: A Profile

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Introduction

The Edelweiss Group is a conglomerate of 44 entities including 39 Subsidiaries and 4 Associate companies (September09), engaged in the business of providing financial services, primarily linked to the capital markets. Edelweiss Capital Limited (www.edelcap.com), incorporated in 1995, today has emerged as one of Indias leading integrated financial services conglomerates. The Edelweiss Group offers one of the largest range of products and services spanning varied asset classes and diversified consumer segments. The Groups product offerings are broadly divided into Investment Banking, Brokerage Services, Asset Management and Financing. The companys research driven approach and consistent ability to capitalize on emerging market trends has enabled it to foster strong relationships across corporate, institutional and HNI clients. 10

Edelweiss Capital Limited now employs about 1200 employees, leveraging a strong partnership culture and unique model of employee ownership. It is a listed company since December 2007 under the symbols NSE: EDELWEISS, BSE: 532922 and Bloomberg: EDEL.IN.

Products of the Edelweiss

Equities Mutual Funds IPO Initial Public Offer PMS Portfolio Management Services Commodities Derivatives

Equities
Equities are traditional stocks. If you own an equity, then you own stock in a company, you own equity in that company, and you own part of that company. The term "stock" is often used loosely to include equities, and other products which are traded or tracked in a manner similar to equities. We use the term equities when we want to make it clear that we are only talking about real stocks.

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Mutual Fund
A mutual fund is a company that brings together money from many people and invests it in stocks, bonds or other assets. Portfolio is the bundle/combination of stocks, securities, bonds or other assets. Each investor in the fund owns shares, which represent a part of these holdings. Initial public offering (IPO), When the companies issues shares, debentures etc. to the public for the first time, known as IPO (Initial Public Offering) , they do so for expansion of capital for the fulfill of their projects requirements and some large private companies wants to expand their business to general public. Generally, companies which want to issue shares etc to public have not proper market linkage for IPO then they underwrites their shares to brokers. The commission is paid to underwriters, which is defined in Companies Act, 1956 at the rate 5%. Since in IPO, it is firstly offer to investor, investor has less knowledge for prediction of future probable prices and its market conditions, so it is highly risky as compare to trading through stock exchanges. Portfolio Management Investment management is the professional management of various securities (shares, bonds etc.) and assets, to meet specified investment goals for the benefit of the investors. Investors may be institutions (insurance companies, pension funds, corporations etc.) or private investors

Commodity
A commodity is anything which has its own demand and supply regardless of its qualitative characteristics across the market. It is a products regardless of thinking its producer have act same. It may be milk, petroleum, bags , gold, silver etc.. The prices of commodity fluctuates on market conditions or in simple the price of commodity depends on market rather than its cost.

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There are two markets in which commodity deals. Firstly cash market in which actual physical commodity traded. Secondly derivative market in which future prices and contracts on prices of commodity fixes or deals.

Derivatives
Derivative is a risk-shifted agreement, the value of which is derived from the value of an Underlying asset. The underlying asset could be a physical commodity, an interest rate, a companys stock, a stock index, a currency, or virtually any other tradable instrument upon which two parties can agree. There are many types of derivatives such as future, forward, option, OTC. There are some risk associated with derivatives such as credit risk, market risk, liquidity risk, operational risk etc. These risk can be protected through hedging.

SERVICES PROVIDED BY Edelweiss

Depository Services Online Services Commodities Trading Portfolio Management Dial & Trade Shareshops Fundamental Research Technical Research

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Online Services Edelweiss classic account:This account is basically meant for those who are new to share
market and are still learning about the same. It provides the customer with the opportunity to trade by logging on at the website of Edelweiss and doing the transaction. The website is designed in a manner so that it can provide a jargon free environment and ease in trading to the customers.

Streaming quotes (using the applet based system) Provides the customer to watch multiple lists. It also provides integration of trading, demat and bank account. It also provides opportunity for instant credit as well as instant transfer facility. It also provides the facility to track portfolio by a customer with all the price alerts and

other features. Features Of Classic Account

Provides facility for online trading. Integration of On-line trading, Saving Bank and Demat Account. Provides with the facility to transfer funds from bank account to trading account and vice

versa.

Competitive transaction charges. All the updates and confirmation for the trade done through email. Streaming Quotes. (Cash & Derivatives) Provides a customer with the personalized view of market. It provides single screen for both cash as well as derivative trade. Provides the customer with the option of choosing the trigger price for a stock and to

watch that particular stock online.

Speed trade:

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SPEED TRADE is an internet-based software application that enables you to buy and sell in an instant. It is ideal for active traders and jobbers who transact frequently during days session to capitalize on intra-day price movement. Features:

Instant order Execution and Confirmation. Single screen trading terminal. (NSE) All the current quotes as taking place at the market are provided to the customer. These

can also be viewed with the help of charts and graphs.

Whole of the summary for the market is provided to the customer. This includes features

as what were the hottest stocks, most traded stocks, what was the high price for the stock by the end of the day etc.

All the facilities are provided to the customers as hot keys. This facility is similar to that

of the brokers terminal.

Regular alerts regarding the market price and limit price are provided in addition to the

various other forms of reminders.

In order to make sure that the investor does not loose an opportunity because of bad

telephone lines back up facility is provided to the customers for the direct line.

Dial-n-Trade:
The Dial-n-Trade service enables you to place orders for buying and selling through your telephone.

Share Shop:
Edelweiss has 640 share shops across 280 cities in India to facilitatetrading related services. A Edelweiss shop offers the folling services Online BSE and NSE executions 15

Free access to investment advice from Edelweisss research team Daily research reports and market review Daily trading calls based on Technical analysis Live market information Commodities trading IPOs & mutual funds distribution

Demat services:
Edelweiss Depository services offers dematerialization services to individual and corporate investors. Edelweiss provides its customers with whole team of professional who are equipped with the latest technology to help and provide customers with the most secured and speediest service. Edelweiss makes sure that its customers are never in loss when it comes to service. It seeks to provide the knowledge of market to its customers in order to make them informed investors.

Categories Of Classification Of Stocks

Edelweiss Limited in order to make the decisions of its customers more effective and simple provides classifications of stocks which are based on certain criteria. The classifications are explained below: 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. 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

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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. 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 tenbaggers but you need to be patient. 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. 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. 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

INTRODUCTION TO SHARE MARKET AND RELATED CONCEPTS: SHARE MARKET:

Share market is a financial market were equities, shares, debentures; bonds etc. are purchase and sell. Every day, stocks are exchanged and traded in numerous stock markets around the world. The liquidity they bring is a vital component of economic growth. Share market is a public market were the trading of company stock and at an agreed price, these are the securities listed on a stock exchange as well as those only for trading privately. Stock market is a open market that trade financial assets.it is associated with a company or acting as an individual, stock exchange is place where stocks are purchase or sell. Or it is rightly said 17

that stock exchange deals with a number of financial instruments such as stocks, bonds, and equities. Where both corporate and governments are traded in stock exchange. Stock are the listed and traded on stock exchange which are entities of a corporation or mutual organization specialized in the business of bringing buyers and sellers of the organization to listing stock and securities together.

What is SENSEX? And how it works?

SENSEX is termed as sensitivity index. It runs on companies shares listed in BSE (Bombay stock exchange) and NSE (national stock exchange). Where top companies 50 companies shares listed in NIFTY and top 20 companies shares listed in MINI NIFTY that they goes ups and downs that determines SENSEX index every day in working day.

Functions of Stock Exchanges: An Overview

Stock exchange main function is to facilitate the transactions associated with both the buying and selling of securities. The Buyers and sellers of shares and stocks can track the price changes of securities from the stock markets in which they operate. The ups and downs of stock indexes help the investors to speculate on the return on investment (ROI) of various investment options. In stock exchange Speed and transparency are vital for all stock market transactions. The companies listed in a stock exchange need to provide proper guidance regarding business performance and prospects, mergers and acquisitions, stock prices, dividends and other information at all times. Investors make their investment decisions based on the information obtained from these companies, and the comments of analysts who track those companies. This is an attractive feature in investing in stocks, compared to other less liquid investment such as real state.

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Exchanges also act as clearing houses for each of the transaction. Meaning that they collect and deliver the shares and guarantee the payment the seller of the security. Exchange protects the interests of both the buyers and sellers by assuring a timely transfer of money. The participants of a stock market are required to operate within the specified transaction limits fixed by the regulatory authority of that stock market.

TYPES OF STOCK MARKET:The stock Market divided into two categories they are as: Primary Market:
Primary market are the that type of capital market that deals with the issuance of new securities, companies, governments or public sector institutions that can obtained by the funding through issue of new securities, stock or bonds. This is typically done through a syndicate of securities dealers.

It provides the process of selling new issues to investors is called Underwriting. It also provide the new stock issue, this sale is an initial public offering (IPO). Dealers of issuing this IPO can earn a commission that is built into the price of the security offering; through it can be found in the prospectus. Following Features of Primary Market are:

In primary market the securities are directly issued to the investors.

Primary Market Company can receive the money and issue new securities to the investors.

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It is also called as the market for new long term capital. In primary market the market where the securities are sold for the first time. Therefore it is also called New Market Issue (NIM).

In primary issues the companies used for the purpose of setting up new business or for expanding or modernizing the existing business.

It plays a vital role in formation of capital to the economy by facilitating crucial function in market.

In primary market the new issue does not include the certain source of new long term external finance, such as loans from financial institutions. Borrowers in the new issue market may raise capital for converting private capital into public capital this is called as Going Public.

Methods of Issuing Securities in the Primary Market .They are as:-

Initial Public Offer (IPO). Preferential Issue. Right Issue (For Existing Companies).

Secondary Market:
This market is also called as Aftermarket or Second market, it also called a financial market where previously issued securities and financial instruments such as stock, bonds, options, and future are brought or sold.

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Secondary market is termed as the market of any used goods or assets, or an alternative use for an existing product or assets where the customer base in the second market. For example, companies have been traditionally used for primarily for food production and feedstock. Where the 2nd and 3rd market is used or developed for the ethanol production.

Primary issue of securities or financial instruments, or the primary market, Investors purchase these securities directly from issuers such as corporations Issuing share in an IPO or private settlements. After the initial issuance, Investors can purchase from other investor in the secondary market.

Functions of secondary market:

The function of the secondary market is vital to an efficient and modern capital market. In the Secondary market securities are sold and transferred by one investor to the other investor. In the market condition where secondary market be highly liquid. Or fundamentally, secondary markets is to mesh with the investors preference for liquidity for the investors need not to tie up with his or her money for a long period time, or in case of the investor need it to be deal with unforeseen circumstances.

Secondary market allocates accurate share price capital more efficiently. the new projects that are financed through a new primary market offering, but there is also accuracy may also matter in the secondary market because:

It reduce the price accuracy to maintain the agency cost management, or make less risky when take over or moving capital into the hands of better managers. Allocation of accurate share price for the allocation of debt finance whether debt offerings or institutional borrowing. 21

BOMBAY STOCK EXCHANGE (BSE)

In India share market started functioning from 1875. First name share trading associated with India was the native share and stock brokers association which later came to known as Bombay stock exchange (BSE). Exchange operates with the help of stock brokers, the buyers and the sellers participating in a stock market carry out their transaction. The brokers representing selling parties to take their orders to the stock exchange floor and then find brokers representing parties wiling to invest in similar stock . if both parties agree to trade at the fixed price ,the transaction takes place in both the favor. It works the stock that are listed or traded on stock exchanges. Which are entities a corporation or mutual organization for specialized in the business or bringing buyers and sellers of the organizations to a listing of stock and securities together. Stock market in the India includes the trading of all the securities listed on the BSE (Bombay stock exchange) and NSE and the many other regional exchanges like Delhi stock exchange. As an Indian share market enables the buying and selling of the collective shares of the various companies as well as other securities and derivatives. Shares of the Indian market are expressed as a companys sales revenue from Indian share market divided by the total sales revenue available in the Share market of India. The Indian share market is thus one of the most important sources of the companies for raising money. Of the leading stock exchanges that deal with the share trading in the Indian stock market the National Stock Exchange of India NSE is the largest stock exchange in India while the Bombay stock exchange BSE is the oldest. Some others are: 22

Securities and Exchange Board of India (SEBI) Calcutta Stock Exchange Association Limited Delhi Stock Exchange Association Inter-connected Stock Exchange of India

National Stock Exchange (NSE)

NSE is the second largest exchange in the south Asia. It is the leading most stock exchange in India in term of total volume traded. It based in Mumbai but it has presence in over 1500 towns and cities. It got the recognition as a stock exchange in July 1993 under the securities contracts (regulation) Act, 1956. The products that can be traded in NSE are:

Equity or Share. Futures (Both index and stock). Options (Call and Put). Wholesale Debt Market. Retail Debt Market.

NSE is leading index is Nifty 50 or properly Nifty and is composed of 50 diversified Benchmark Indian company stocks. It is constructed on the basis of weighted average market capitalization method. NSE provides its customers with a fully automated screen based trading system known as NEAT system with speedy, efficient and transparent transactions. Hours: NSE trading session start from 09:30am to 03:30pm on all days except Saturdays, Sundays, and holidays declared by the Exchange in advance.

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NIFTY:
Nifty is the major indicator of all the major companies of the NSE. Where the top 50 stocks are that stocks were it is favored by the institutional investors in the 1960s and 1970s that shows the ups and downs of share market. Nifty has two part first is where 50 companies are listed is called big Nifty. And other is called MINI NIFTY. Where 20 companies are listed in it. Companies in this group were usually characterized by consistent earnings growth and high P/E ratios.

MCX (MULTI COMMODITY EXCHANGE)

It is established in 2003 and based in Mumbai. It is an independent commodity exchange board based in India. MCX offer commodity for trading in future like: Agricultural commodities. Bullion Ferrous and Non- ferrous metals Pulses. Oils Seeds. Energy. Plantations. Spices. And other soft commodities.

National Commodity & Derivatives Exchange Limited (NCDEX)

NCDEX is the online commodity based exchange in India. It is located in Mumbai and offer facilities in more than 550 centers in India.

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It was incorporated as a private limited company incorporated on April 23, 2003.Under the Companies Act, and 1956. But it obtained its Certificate For Commencement of Business on May 9, 2003.and started its operations on Dec. 15 2003.

NSDL (National Securities and Depository Limited)

NSDL is the first depository in India that established under depository Act August 1996. This depository promoted by national stature responsible for the economic development of country. Since its establishment a national infrastructure of international standards that handles most of the securities that held and settled in Dematerialized from the Indian capital market. Its main aim to ensure safety and soundness of Indian marketplaces by developing the settlement solutions to increase efficiency, minimize risk and reduce costs. In NSDL, the central role in developing products and services that will continue to grow the nurture needs of the financial services industry.

Promoters & Shareholders in NSDL

NSDL is promoted by:

Industrial Development Bank of India Limited (IDBI) - The largest industrial development bank of India. Unit Trust Of India (UTI) The largest Mutual Fund in India. National Stock Exchange of India Limited (NSE) The largest stock exchange in India.

Above they are the some of the prominent banks in the country have taken a stake in NSDL. And, the other Shareholders that promote the NSDL are as: Citibank.

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Canara Bank. Union Bank of India. State Bank of India. Oriental Bank of Commerce. Dena Bank. HDFC Bank Limited. Standard Chartered Bank. Deutsche Bank. The Hong Kong and Shanghai Banking Corporation Limited. AXIS Bank.

Introduction to Broking Firms

Stock Broker

A Stock Broker is an agent, matching up buyers and sellers on the stock market. He sells or buy stocks on behalf of a customer, charging a fee or commission for his services. Stock brokers may also offer advices in which stock or funds to invest. Taking this view forward we shall try to define stock broking houses:A brokerage firm acts as a liaison between a seller and buyer. Word "broker" means to bring a seller and buyer together to handle all intermediary duties for a sales transaction to occur. Brokers are not just for stocks and bonds but for fine art and real estate too.There are some of the intermediary duties of a broker from start to close of sale.
FUNCTIONS OF BROKERAGE FIRM

There are three different perspectives to define the job of brokerage firm, i.e. from the sellers point of view, from the buyers point of view and from middle men point of view.

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These are as follows:Brokers for the Seller: A brokerage firm that represents the seller will assist in finding a buyer for the product or service that seller has to offer. Once the buyer is secured, the buyer makes and offer to the seller through the firm. Brokers for the Buyer: A broker that represents the buyer will act as a liaison to communicate with the broker of the seller. These brokers are interested in securing the best deal for their client. The Middle Man: Without brokerage firms, there would be practice of complete freetrade in consumer market i.e. there would be no way for a buyer or a seller to influence the market-anyone could sell/buy anything at any price. Money generation ways of brokerage firms: Brokerage firms are contracted on commission, which means that if a sell doesn't occur, the broker will get nothing. This is why firms must make sure they match sellers with the most probable buyers, which requires extensive market research. Supply and Demand:When there is a demand for a product, there will be a demand for a brokerage firm to make that product. Available to consumer.Brokers help to keep the cycle of supply and demand in existence.

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Copyright 2009 ECSL. | Disclaimer | Terms & Conditions | Privacy Policy | Browser Settings About Us | Customer Service | Channel Partners | Our Offerings | Site Map Edelweiss : India`s leading Stock Broking Company provides online BSE and NSE Share Trading Services. Site is best viewed using Browsers Internet Explorer 7.0+ & Mozilla Firefox 2.0+ with resolution 1280 by 768.

The firms online trading and investment site - www.edelweiss.in - was launched on Feb 8, 2009. 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 1 Lacs customers. The number of trading members currently stands at over 7 Lacs. While online trading currently accounts for just over 5 per cent of the daily trading in stocks in India, Edelweiss alone accounts for 27 per cent of the volumes traded online for HNI segment.

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Edelweiss is managed by CLIENT ADVISORY SERVICES group to serve the interests of individual investors.The various products offered by Edelweiss broking ltd are-:

FREE ACCOUNT OPENING This is a User Friendly Product which allows the client to trade through website www.edelweiss.in and is suitable for the retail investors who is risk-averse and hence prefers to invest in stocks or who do not trade too frequently.

Features

Online trading account for investing in Equity and Derivatives via www.edelweiss.in Live Terminal and Single terminal for NSE Cash, NSE F&O & BSE. Integration of On-line trading, Saving Bank and Demat Account. Instant cash transfer facility against purchase & sale of shares. Competitive transaction charges. Instant order and trade confirmation by E-mail. Streaming Quotes (Cash & Derivatives). Personalized market watch. Single screen interface for Cash and derivatives and more. Provision to enter price trigger and view the same online in market watch.

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XPRESS XPRESS is an internet-based software application that enables you to buy and sell in an instant. It is ideal for active traders and jobbers who transact frequently during days session to capitalize on intra-day price movement.

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Features

Instant order Execution and Confirmation. Single screen trading terminal for NSE Cash, NSE F&O & BSE. Technical Studies. Multiple Charting. Real-time streaming quotes, tic-by-tic charts. Market summary (Cost traded scrip, highest clue etc.) Hot keys similar to brokers terminal. Alerts and reminders. Back-up facility to place trades on Direct Phone lines. Live market debts.

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Funds Transfer Transfer funds between your savings account and trading account. Avail a pay-in and pay-out option where you can transfer funds from and to your trading account. Tie ups with HDFC Bank, ICICI Bank and Axis Bank, Yes Bank, Kotak bank wherein you can easily transfer funds from any of these banks.

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MOBILE TRADING EDELWEISS had introduced mobile trading, A mobile based software where one can watch Stock Prices, Intra Day Charts, Reasearch & Advice and Trading Calls live on the Mobile. (As per SEBI regulations, buying-selling shares through a mobile phone are not yet permitted.)

www.edelweiss.in

MOBILE WEBSITE

KEY FEATURES

Instant Market Updates

All Company Stock Quotes

Smart Financial Snapshots

Trading Strategies

Portfolio Tracker

Equity Watchlist

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Global Indices Update

CHARGE STRUCTURE

Plan

Advance Brokerage Fee

Validity Period

Brokerage Rates

Equivalent delivery Turnover limit

Deliver y EBSPN01 Rs 2450 12 months 12 Months 12 Months 12 Months 12 month 0.33 % 0.27%

Futures and Intraday Cash 0.033% 750000

EBSPN02

Rs 4950

0.027%

1800000

EBSPN03 EBSPN04 EBSPN04

Rs 9950 Rs 15000 Rs. 50000 Rs 1,10,000

0.22% 0.17% 0.11%

0.022% 0.017% 0.011%

4500000 9000000 45000000

EBCRB06

12 month

0.09%

0.009%

125000000

EBCRB07

Rs 1,11,111

3 month

0.05%

0.005%

200000000

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MAJOR PLAYERS IN THE INDUSTRY 1. Karvy 2. Indiainfoline 3. ICICI direct 4. HDFC security 5. Indiabulls 6.Religare 7.Edelweiss Broking Ltd. 8.Motilal Oswal ltd 9.Angel Broking ltd

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KARVY

Karvy is a premier integrated financial services provider, and ranked among the top five in the country in all its business segments, services over 16 million individual investors in various capacities, and provides investor services to over 300 corporate, comprising the who is who of Corporate India. Karvy has a professional management team and ranks among the best in technology, operations and research of various industrial segments.

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

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INDIAINFOLINE SECURITY PRIVATE LTD

India Infoline.com Securities Pvt. Ltd. is a wholly owned subsidiary of India Infoline.com Ltd and is the stock broking arm of India Infoline.com. The subsidiary was formed to comply with regulatory guidelines. www.5paisa.com is a focused website for online stock market trading. 5paisa.com is a trade name owned by the India Infoline.com group. IILSPL has applied for trading membership of the BSE under Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) Rules 1992.

ICICI DIRECT
ICICI Direct is the stock broking firm of ICICI bank. It is number one when it comes to online trading customer base. It provides all the services which are provided by any broking house. It provides its investors with the opportunity to invest in BSE, NSE, Mutual Fund, IPOs etc. Types Of Accounts Offered: There are three types of accounts which are offered by ICICI Direct. These accounts are as follows: 1. Share Trading Account 2. Wise Investment Account 3. Active Trader Account Brokerage and Fees Charged By ICICI Direct:

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1) Account Opening and Activation Charges: Rs.750 which is a one payment and is not refundable to the investor. 2) Brokerage Charged: the amount of brokerage charged depends upon the volume of trade done, the service charge applicable and courier charges. It has range from 0.1% to 0.15% when it comes to trade based on margin. It is 0.2% to 0.45% when it comes to squared off trade and 0.4% to 0.85% when it comes to delivery based trade. The point to be noted here is the entire volume slabs given below are on quarterly basis. This gives more to the customer to take advantage and fulfill the slabs so that less brokerage will be applicable. The normal trading + Demat a/c + Savings a/c opening charges is Rs.750/Total Turnover depends volume transaction) quarter. Rs.5 Cr. And Above Rs.2 Cr. to 5 Cr. Rs.1Cr. to 2 Cr. Rs.50lacs to 1 Cr. Rs.25lacs to 50lacs Rs. 10lacs to 25lacs Upto Rs.10 lacs 0.25% 0.30% 0.35% 0.45% 0.55% 0.70% 0.75% Nil Nil Nil Nil Nil Nil Nil 0.125% 0.15% 0.175% 0.225% 0.275% 0.35% 0.375% Eligible Brokerage Charged (which upon of per Second Segment Effective Brokerage Charged Per Segment (Leg) of Squared Off Trade

(Leg) of Traders

There is an additional charge for service tax which is at the rate of 12.24 above brokerage.

Securities Transaction Tax on Equity (STT): It is calculated on the basis of the weighted price that is generated by a client during the day. This value is calculated up to second

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decimal place. 0.125% is charged as STT when it is delivery trade. 0.025% is charged when it is non-delivery trade. Note: All the above charges are in addition to the brokerage. Brokerage Charges When Trade is done in Margin Segment: Total Eligible Turnover (which is based on volume of transaction Brokerage Charged done) per month Rs.20 Cr. And Above Rs.10 Cr. To 20 Cr. Rs. 5 Cr. to 10 Cr. Less than Rs.5 Cr. 0.03% 0.035% 0.40% 0.05%

They have two different schemes other than the above said. The upfront brokerage scheme is called Clear Value Deal and the normal is called Variable Brokerage Deal. These products are only available for cash and carry. Clear Value Deal: In clear value they have again three options Rs.299, Rs.599, Rs.999. The customer can only delivery and BTST in this. Product 299: Monthly charge of Rs.299/- applicable for a delivery volume of Rs.1.5lacs in 3 months. Only 50 thousand is exceeded then 0.75% is charged on the exceeded amount. Product 599: Monthly charge of Rs.599/- applicable for a delivery volume of Rs.3lacs in 3 months. Only 1lac can be done in a month. If Rs.1lac is exceeded then 0.75% is charged on the exceede amount. Product 999: Monthly charge of Rs.999/- applicable for a delivery volume of Rs.6lacs in 3 months. Only 2lac can be done in a month. If Rs.2lac is exceeded then 0.75% is charged on the exceeded amount. Variable Brokerage Plan: Here the brokerages are applicable as per the volume trades. The brokerage charged is given in the table.

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Delivery 0.25%-0.75%

Intraday(on one leg) 0.125%-0.37%

Derivatives 0.03%-0.05%

Zero Brokerage Plans: Below mention are the brokerage charges by ICICI Direct in their zero brokerage plans. Other charges are: Type Transaction charges For Market and Off Market Buy For Market and Off Market Sell Nil Nothing is charged if it is done through ICICI Direct.com. whereas if it is done through einstructions the charges are 0.04% which amounts to the minimum of Rs.10. 0/04% is charged if it is done the call center. 0.04% is charged which amounts to DP Charges

minimum of Rs.30 if the request is submitted to the branch directly. Extra charges which are levied by ICICI for Rs.10 are charged per ISIN processing of TIFDs Rejection / falls Dematerialisation charges Rs.30/Rs.35 is charged per request and Rs.2 are charged extra for each certificate. Rematerialisation charges Closure of account Rs.20 is charged for each request form. Nil

In the case of pledge creation, invocation, 0.02% which amounts to minimum Rs.15 if confirmation, the percentage value for each ICICI bank is the counter party. ISIN in each request 0.02% which amounts to minimum of Rs.30 if ICICI bank is not the counter party.

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Addition Account Statements

Rs.20/Per debit instruction the charge is Rs.6 and in case of commercial papers it is nil.

Remateralisation of Certificates Pledge

Rs.10 per certificate is charged Rs.25/- per instruction

Advantages and Merits of having an Account at ICICI Direct: There are some advantages of having an account at ICICI Direct. These are enumerated as below:1) ICICI provides 3 accounts facilities. It provides demat and trading account in addition to savings account. 2) A person can easily transfer money from one form of account to another in no time by logging to the ICICI website. 3) As all the three accounts are well integrated it provides a lot of comfort for the customer to handle. 4) ICICI Direct provides a whole lot of opportunities for the customer when it provides with all types of investment opportunities that are available to a person. Difficulties and Demerits of having Account in ICICI Direct: ICICI Direct has the following disadvantages:1) The brokerage which is charged by ICICI Direct is quite high. 2) The margin amount to start with is very high when it comes to opening an account at ICICI Direct. 3) The website of ICICI Direct becomes overloaded during the market hours making the online transactions for customers difficult. 4) All types of stocks and market instruments are not made available by ICICI Direct.

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Indiabulls
India Bulls is one of the largest financial service provider in the country. It is also quite evident in the realty sector also. With one of the largest chains of retail outlets, India Bulls is one of the biggest competitor of India Bulls. Types of Account They have only one type of product i.e. the normal account. The brokerage applicable can be negotiated with huge volumes and huge margin money. India Bulls Equity Trading Account and a brief Introduction: It is the standard and the basic product which is offered by India Bulls to its customers. It is the standard online trading and demat account facility that is provided by India Bulls. The special feature of this account is that it provides a priority telephone facility using which a customer can directly approach its relationship manager. Power India Bulls: The software based service:It is the innovative step on the part of India Bulls. This online trading terminal provides lightning speed service. With the features like live streaming quotes, tic by tic charts and many features it has become the new generation face for online trading service providers. Documentation Requirements of India Bulls in order to open an Account: 1) One passport size photograph of the applicant. 2) One photocopy of PAN card of the applicant. 3) One photocopy of Identity proof which could be either driving licence or PAN card or voter id card etc. 4) One photocopy of Address proof. 5) Bank Account Proof which could be either Bank Pass Book or Bank Account Statement. Fees And Brokerage Charged By India Bulls: Account Opening and Activation Charges: Rs.900/Initial Margin: Rs.1000/Exposure: 4 times (intraday) DP Charges: Rs.250/- @12.24% 42

The software using charges: Rs.750/-(One Time Cost). This Trading Software is called Power Trade as discussed above.

HDFC security is the subsidiary of HDFC (Housing Development Financial Corporation). www.hdfcsec.com would have an exclusive discretion to decide the customers who would be entitled to its online investing services. www.hdfcsec.com also reserves the right to decide on the criteria based on which customers would be chosen to participate in these services .The present web site (www.hdfcsec.com) contains features of services that they offer/propose to offer in due course. The launch of new services is subject to the clearance of the regulators. i.e. SEBI, NSE and BSE.

HDFC Securities
HDFC sec is brought to you by HDFC Securities Limited (HDFC Sec), a broking house promoted by the HDFC Group. HDFC securities is a big name today when it comes to stock broking industry. With the back up in the form of banking, HDFC provides its customers with various services. From banking to trading, HDFC provides its clients with three accounts under one scheme. Linking of savings account opened at HDFC with the demat and trading account of a person provides great comforts when it comes to transferring of funds. HDFC provides its customers with expertise knowledge, many articles published with the view to provide enhanced knowledge, online databases and financial tools to take better decisions when it comes to investing in market. Procedure for Opening Account at HDFC: In order to open an account here at HDFC, a person has to open a savings account in order to have a demat and trading account through HDFC. Documentation: Following documents are required in order to open an account here at HDFC:a) Passport Size Photograph: One in number.

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b) Photocopy of an Identity proof which could be PAN card, Voter Id card or Driving Licence. c) Photocopy of the address proof which could be Driving Licence, Voter Id card. Telephone bill etc. Brokerage and Fees Charged By HDFC: Account Activation Fees Charged:Rs799 in which a persons bank account, trading account and demat account all are opened at once. Minimum Margin to be maintained by a person in its account is Rs.2500 Exposure: Up to 4 times exposure is provided to a client. Annual Maintenance Charges: Rs.500 is charged after the first year. Before that the Annual Maintenance Charges are waived. Brokerage: The brokerage for Intraday is 0.15% whereas for delivery it is .50%.

INDIABULLS SECURITIES LIMITED

Indiabulls Securities Limited was incorporated as GPF Securities Private Limited on June 9, 1995. The name of the company was changed to Orbis Securities Private Limited on December 15, 1995 to change the profile of the company and subsequently due to the conversion of the company into a public limited company; the name was further changed to Orbis Securities Limited on January 5, 2004. The name of the company was again changed to Indiabulls

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Securities Limited on February 16, 2004 so as to capitalize on the brand image of the term Indiabulls in the company name. ISL is a corporate member of capital market & derivative segment of The National Stock Exchange of India Ltd. At present, ISL accounts for approximately 3% of the total daily turnover of the Exchange with 32,359 client relationships and 70 branches spread across the country as of April 30, 2004.

SHAREKHAN

Sharekhan is one of the leading retail brokerage of Citi Venture which is running successfully since 1922 in the country. Earlier it was the retail broking arm of the Mumbai-based SSKI Group, which has over eight decades of experience in the stock broking business. Sharekhan offers its customers a wide range of equity related services including trade execution on BSE, NSE, Derivatives, depository services, online trading, investment advice etc.

FEATURES OF SHAREKHAN LIMITED AND KNOWING ITS COMPETITORS:

We have already had deep introduction about Sharekhan Limited but it is now important to understand and know the features and other aspects of Sharekhan Limited. It is also important to know about the competitors of Sharekhan Limited and also see to as to what they offer and how they are better or not so good as compared to Sharekhan Limited. In this we shall first of all look at various features of Sharekhan Limited and know about its competitors. Then we shall have a SWOT analysis and Porters Five Forces analysis to comprehend the situation in a better manner.

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Features offerd by sharekhan limited: Types of account:1. Sharekhan Classic Account:

Allow investor to buy and sell stocks online along with the following features like multiple watch lists Integrated Banking, Demat and digital contracts, Real-time portfolio tracking with price alerts and Instant credit & transfer. a. Online trading account for investing in Equities and Derivatives b. Free trading through Phone(Dial-n-Trade) Two dedicated numbers for placing your orders with your cell phone or landline. Automatic funds transfer with phone banking(for Citibank and HDFC bank customers) Simple and Secure Interactive Voice Response based system for authentication. Get the trusted, professional advice of our teleprocess. After hours order placement facility between 8:00 am and 9:30 am

c. Integration of: Online trading + Bank + Demat account. d. Instant cash transfer facility against purchase & sale of shares. e. IPO investments. f. Instant order and trade confirmations by e-mail. g. Single screen interface for cash and derivatives. 2. Trade Tiger Account: This is a software based facility provided by Sharekhan to its customers. This basically meant for those customers who are very active in share market and have knowledge to certain extent. This Trade Tiger has certain features which are enumerated as below:a) Single screen interface for cash and derivatives. b) Real-time streaming quotes with Instant order Execution & Confirmation.

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c) Hot keys similar to a traditional broker terminal. d) Alerts and reminders. e) Back-up facility to place trades on Direct Phone lines. Fees and Brokerage Charged: Sharekhan charges 0.05% for intra day transaction and 0.5% for delivery. Other Charges:Account Opening Charges: 375 Rs + 5000 (margin money) or 200 Rs + 10,000 (margin money) or 0 Rs + 25,000 (margin money) Annual maintenance charges 400 Rs (from the second year) Call and Trade charges Nill Merits and Advantages of Opening an Account At Sharekhan Limited: 1) Many services are provided to the customers as SMS alerts, updates on emails, tips related to stocks etc. 2) All time relationship manager facilities are provided to the customers with the help of which it can call its relationship manager even after market hours. 3) Sharekhan provides the facility of transferring funds from various banks. Sharekhan has a tie up with eleven banks through which a customer can transfer its funds into the trading

47

and demat account from savings account or from trading and demat account to savings account. 4) No Annual Maintenance Charges for the first year provides customers with an opportunity to test Sharekhan and its services. Demerits and Difficulties Faced For An Account At Sharekhan Limited: 1) All the users are not provided the facility to trade in commodities. Only those who started with an amount of Rs.25000 and above are provided this service. 2) There are many hidden cost and service charges which are cleared before hand. 3) After trade hour facilities are not so great as compared to other broking houses. 4) It was problem that a person cannot purchase mutual funds online. But now this problem has been rectified.

Online Broker Sharekhan brokerage charges Karvy brokerage charges ICICI direct brokerage charges Indiabulls brokerage charges HDFC Securities brokerage charges

Brokerage for Delivery

Brokerage for Intraday trading 0.03% - 0.10%

AMC*

0.03% - 0.50%

300 300 500 Nil 500

0.30% - 0.50%

0.03% - 0.15%

0.75%

0.15%

0.25% - 0.50%

0.05% - 0.10%

0.50%

0.15%

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Religare brokerage charges Reliance Money brokerage charges Indiainfoline brokerage charges

0.20% - 0.30%

0.02% - 0.03%

250

0.01%

0.01%

card system

0.50%

0.10%

Nil

AMC=ACCOUNT MAINTENANCE CHARGES.

RESEARCH OBJECTIVES

Our research study has two objectives:PRIMARY OBJECTIVE: To study about the competitive position of Edelweiss Broking ltd in Competitive Market.

SECONDARY OBJECTIVE: 1. To know about the awareness towards stock brokers and share market. 2. To study about the effectiveness & efficiency of Edelweiss Broking Ltd in relation to its competitors. 3. To study about whether people are satisfied with Edelweiss Services & Management System or not.

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Research Methodology

Sampling design Types of sampling Random Sampling

Research Approach Descriptive approach

Techniques to be used in research approach Survey and interview

Sampling Unit Questionnaire

In this project Questionnaire is used as the research instrument. These questionnaires include Close Ended as well as Open Ended questions. The questionnaire is attached at the end of Annexure.

Data collection Primary Data Collection Structured questionnaire for the customer.

Secondary data collection Journals Web-sites News paper

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BROKERAGE DETAILS OF THE COMPANY

ANGEL BROKING

CRITERIA

ANGEL STOCK BROKING

Demat a/c opening charges Brokerage intra day, delivery

660 Classic plan: 3p ,20p Freedom plan; 1p,10p

AMC(Annual Maintenance Charges) Trading funding intra day, delivery

Rs.225 6times,4 times(minimum stock Rs 50000)

Interest rate Debit period Mode of trading Margin money

18 %pa T+2 DAYS Both online and offline ,5000,10000

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CRITERIA Demat a/c opening charges Brokerage intra day, delivery

RELIGARE SECURITIES LTD 299,499,999 Classic plan: 5p ,50p Freedom plan; 3p,30p

AMC (Annual Maintenance Charges) Trading funding intra day, delivery

No amc 6times,4 times(minimum stock rs 500000)

Interest rate Debit period Mode of trading Margin money Software installation charges

18 %pa T+2 DAYS Both online and offline 5000,5000,10000 No extra charges

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CRITERIA Demat a/c opening charges Brokerage intra day, delivery AMC(Annual Maintenance Charges) Trading funding intra day, delivery

ICICI DIRECT RS 750/50P,75P RS 500/3-4 times of the available funds.

Interest rate Debit period Mode of trading Margin money Software installation charges

18% p.a. T+2 DAYS Both Online & Offline -

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CRITERIA Demat a/c opening charges Brokerage intra day, delivery AMC(Annual Maintenance Charges) Trading funding intra day, delivery

Kotak securities .com RS 550 2.5P,25P RS 30pm 7times,4 times

Interest rate Debit period Mode of trading Margin money Software installation charges

21% T+2 Offline Rs8000/_

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CRITERIA Demat a/c opening charges Brokerage intra day, delivery AMC(Annual Maintenance Charges) Trading funding intra day, delivery

HDFC securities Rs 799/15p,50p Nil 10times,4 times

Interest rate Debit period Mode of trading Margin money Software installation charges

T+ 2days Both 5000,10000 -

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DATA ANALYSIS
QUESTIONNAIRE ANALYSIS

Q. 1 Through which of the channels do you usually buy a financial product?

Direct from the company Internet Broker

20%

5% 75%

Direct from the company 20%

Internet 5%

Broker 75%

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Conclusion: When it comes to channels of buying a financial product most of the people prefer to buy it from a broker as it is the most trusted source and they have a good market and product knowledge. Many people like to inquire themselves directly from the company while 5% of the people look for internet as a medium. This graph shows that broking business is a profitable one as it attracts the large volume of potential customers.

Q.2 What is your preferable tool of investment?

Preferable tools Equity share Real state Derivative instrument Mutual fund Gold and bullion Bank deposit

In Percentage 22 7 5 25 5 36

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Preferable tool of investment

Bank Deposit 36%
Equity shares 22% Gold and bullion 5%

mutual fund 25% Derivative instrument 5%

Real estate 7%

ConclusionWhen it comes to investing ones income 36% of the people prefer to be on the safer side and avoid risk by investing in the bank deposits. The next option is mutual funds as they are comparatively risk free. Equity shares are the next best option according to the respondents. So it can be said that most of the people prefer risk-free return. While a 22% of graph shows that equity shares are considered as a good option by the investors due to their high return.

58

Q3. How did you come to know about Edelweiss?

Know Through Internet Print and Electronic media Reference group By Chance

In Percentage 12.7 20.3 27.6 39.4

50 40 30 20 10 0 Internet Print and Electronic Media Reference group By Chance Series1

Conclusion: The above responses shows that most of the people came to know about Edelweiss by chance while many through reference group. Reference group is a good source of information about the company.

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Q.4 Are you aware of all the products offered by Edelweiss?

Yes No

30 % 70%

Chart Title

Yes 30%

No 70%

Conclusion70% of the people are not aware of the products offered by the Edelweiss. In this category few of the respondents knew about the equity share trading but were not aware of all the products, while a large chunk of respondents had never heard of Edelweiss.

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Q5. Have you used any Edelweiss financial product?

Yes No

22% 78%

80 70 60 50 40 30 20 10 0 Yes No

Series1

Conclusion: In response to the question 78.0% of the respondents said that they are not using any Edelweiss product at present, so it gives a clear picture that there is a huge untapped segment among which the product needs to be pitched.

61

Q.6 Which Edelweiss product are you using now?

Product Mutual fund De-Mat Debenture Other (structured Product)

In Percentage 40 10 45 5

50 40 30 20 10 0

40

45

10

Mutual fund

De-Mat

Debenture

Other (structured Product)

Series1

Conclusion: From the response it can be seen that De-mat (equity shares) is the highest selling product of Edelweiss followed by mutual fund. Of the 21.56% of people using Edelweiss products nearly 50% prefer equity shares.

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Q.7 Best company according to the respondents ?

Company ICICI Direct Share khan Motilal oswal Religare Edelwiess

Percentage 30 21.44 12 4 10

Company Indiabulls HDFC Securities Indiainfoline Enarn

Percentage 7.56 6 4 5

30
30 25 20 15 10 5 0

21.44 12 10

7.56

Series1

Conclusion 30% of the respondents ranked ICICI Direct as the number one share trading company. This is mainly because of its good Brand Image and linked bank account. Sharekhan is preferred for its customer friendly approach and trading terminal. Still Edelweiss stands in the competition and is preferred mainly because of its research facility. 63

Q.8 Factors affecting the choice of a company?

Factors affecting Brand Image innovation Service Proximity with residence Dealer support Advance R&D Brokerage

In Percentage 28 3.5 6.89 8 18 20 23

28 30 25 20 15 10 5 0 18 3.5 6.89 8 20 23

Series1

64

Conclusion: When it comes to the choice of the company the factor that affects the decision to the largest extent is the Brand Image i.e. the reputation of the company. The best example is ICICI. Brokerage is the second most important factor. Edelweiss has good research so it has the capability of attracting customers. Of the above factors all are present in Edelweiss except a good Brand Image, which it needs to build.

Q.9 Possible sources searched for financial product information?

Source Television / Radio Internet / website Newspaper / Magazine Friend Word of Mouth

In Percentage 19 21 11 32 17

65

Chart Title
Word of Mouth 17%

Television / Radio 19%

Friend 32%

Internet / website 21%

Newspaper / Magazine 11%

Conclusion:

Most of the respondents 32% trust their friends advice when it comes to financial product information especially in stock market. They trust on their experience with the company and act accordingly.

ANALYSIS OF THE QUESTIONNAIRE FOR EXISTING CLIENTS

1) Association with the company

Duration

Customer in Percentage

66

6 month 1 year 2 year More than 2 year

43 38 11 8

Association with company

2 year 11% more than 2 year 8% 6 month 43%

1 year 38%

Conclusion Most of the customers are newly acquired.

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2) Satisfaction level of the customers

Satisfaction Level Extremely Satisfaction Satisfied Neutral dissatisfaction

Customer in Percentage 11 49 32 8

Satisfaction level of the customers

dissatisfaction

8%

Extremely Satisfaction 11%

Netural 32%

Satisfaction
49%

Conclusion: 49% of the customers are satisfied and 8% dissatisfied. The company needs to work on these customers and minimize their dissatisfaction. 68

3) Expectations of the customers

Expectations Reduction in brokerage Improved service Quality More tips Customer friendly norms

Customer in Percentage 34 31 13 22

Expectations of the customers

Series1 34

31 22 13

Reduction in brokerage

Improved service Quality

More tips

Customer friendly norms

Conclusion: Most of the customers want the brokerage to be reduced and services to be improved.

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ANALYSIS OF QUESTIONNAIRE FOR DORMANT CLIENTS

1) Reason for disassociation

Reason for Disassociation Liquidity crisis Alternate brokerage firm lost faith in capital market temporary breaks

In percentage 11 7 26 56

Reason for disassociation

Liquidity crisis 11% Alternate brokerage firm 7%

temporary breaks 56%

lost faith in capital market 26%

Conclusion: Because of the present turmoil in the stock market most of the people have taken temporary breaks and are not trading, While 7% of the people have found alternate broking houses.

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2) Attractive features of the competitors

Features of Competitors low brokerage proximity to residence trained people in desk good system support good research

In Percentage 43 12 10 32 3

43
45 40 35 30 25 20 15 10 5 0

32

12

10 3

low proximity trained brokerage to people in residence desk Series1

good system support

good research

Conclusion: Low brokerage is what attracts most of the customers. Besides Edelweiss needs to improve its quality of service.

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ANALYSIS AND INTERPRETATION FOR CUSTOMER PRFERENCES

We shall now begin with the analysis and interpretation part for customer preferences.

Q1. Have you invested in any investment plan?

have you invested in any investment plan? Cumulative Percent 68.0 100.0

Frequency Valid Yes No Total Missing Total System 68 32 100 1 101

Percent 67.3 31.7 99.0 1.0 100.0

Valid Percent 68.0 32.0 100.0

Interpretation: As we can see from the above table, 68% of have invested their money in some or the other investment plan. Whereas there are 32% of people who have not invested in any plan what so ever. It is good to see that the majority of people have an investment in some form or the other, but the rest 32% is also not a small figure. It shows that there is a lot of people who idle money with them which can be invested in something fruitful. 72

The above table has been depicted with the help of a pie chart which is as follows:-

73

Q2. If no, then what are the reasons for the same?

if no, then what are the reasons for the same? Cumulative Percent 68.0 80.0 91.0 100.0

Frequency Valid no answer lack of fund lack of proper knowledge lesser returns Total Missing Total System 68 12 11 9 100 1 101

Percent 67.3 11.9 10.9 8.9 99.0 1.0 100.0

Valid Percent 68.0 12.0 11.0 9.0 100.0

Interpretation: We can see from the above table that the most of the people who are not investing in any plan is due to the lack of funds. This table suggests that lack of fund is the major problem. The second most important is that lack of knowledge in terms of market. This is a big hurdle. And if it is not eradicated there will always be a lot idle money which shall not be invested anywhere.

74

Q3. If yes, then in what do you invest?

if yes, then what do you invest in? Cumulative Percent 32.0 42.0 78.0 83.0 100.0

Frequency Valid no answer Fixed deposits saving accounts post office provident fund Total Missing Total System 32 10 36 5 17 100 1 101

Percent 31.7 9.9 35.6 5.0 16.8 99.0 1.0 100.0

Valid Percent 32.0 10.0 36.0 5.0 17.0 100.0

Interpretation: We can see clearly from the table that the most number of people in terms of investment have only savings bank account. The next option which has been on a high scale is provident fund. This shows that even though the people who are investing are high in numbers but they are investing in things those are less risky and can earn a stable and constant income.

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Q4. What income group do you belong to?

what income group do you belong to? Cumulative Percent 9.0 56.0 91.0 100.0

Frequency Valid rs.100000-rs.300000 rs.300000-rs.500000 rs.500000-rs.2500000 rs.2500000 and above Total Missing Total System 9 47 35 9 100 1 101

Percent 8.9 46.5 34.7 8.9 99.0 1.0 100.0

Valid Percent 9.0 47.0 35.0 9.0 100.0

Interpretation: We see from the table above that most of our respondents belong to the income group of Rs.300000-Rs.500000 and the second highest percentage comes from Rs.500000Rs.2500000. but still there are many people who do not invest in any thing more risky and full of higher returns and among them are many who do not invest at all.

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Q5. If asked to invest, what would be your term of investment?

if asked to invest what will be your term of investment? Cumulative Percent 73.0 100.0

Frequency Valid long term Short term Total Missing Total System 73 27 100 1 101

Percent 72.3 26.7 99.0 1.0 100.0

Valid Percent 73.0 27.0 100.0

Interpretation: From the above table we can clearly see that most of the people are interested in long term investment which shows that people look towards more of a stable income over longer period of time.

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Q6. If asked to invest, with what amount would you like to invest?
If asked to invest with what amount would you invest? Cumulative Percent 57.0 90.0 99.0 100.0

Frequency Valid rs.5000-rs.10000 rs.10000-rs.25000 rs.25000-rs.100000 rs.100000-rs.500000 Total Missing Total System 57 33 9 1 100 1 101

Percent 56.4 32.7 8.9 1.0 99.0 1.0 100.0

Valid Percent 57.0 33.0 9.0 1.0 100.0

Interpretation: We can see from the table above that the most of the people are interested in investing only Rs.5000-Rs.10000. It shows that most of the people are interested only in investment which is small in terms of denominations and requirement and would not lead much loss hence less risky. Now let us look at some of the Cross Tabs which I have done.

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CROSS TABS: 1) It is between those whose have done some sort of investment and the income group they belong to.
if yes, then what do you invest in? * what income group do you belong to? Crosstabulation Count what income group do you belong to? rs.100000rs.300000 if yes, then what do you invest in? no answer fixed deposits saving accounts post office provident fund Total 4 0 4 1 0 9 rs.300000rs.500000 10 4 20 2 11 47 rs.500000rs.2500000 13 6 10 2 4 35 rs.2500000 and above 5 0 2 0 2 9

Total 32 10 36 5 17 100

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Interpretation: We can see from the above table and graph that those who say to have an investment plan mostly invest in savings account and mostly belong to the income group of Rs.300000-Rs.500000. this is a huge group and shows that they are interested in the nominal returns and are not yet ready for the big step. This risk aversive ness shows that the investors are still not ready to invest in other ventures whether it be land, shares, gold or something else.

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2) It is between the amount the people are interested in investing and the income group they belong to.
if asked to invest what will be your term of investment? * what income group do you belong to? Crosstabulation Count what income group do you belong to? rs.100000rs.300000 if asked to invest what will be your term of investment? Total long term short term 6 3 9 rs.300000rs.500000 29 18 47 rs.500000rs.2500000 33 2 35 rs.2500000 and above 5 4 9

Total 73 27 100

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Interpretation: Here we can see that when asked the people about what would be their term of investment we can clearly see that the most of the people answer in favour of long term investment. It is interesting to see that those who are income group of Rs.300000-Rs.500000 and Rs.500000-Rs.2500000 are majority in this. From this we can conclude that the most of the people that lie in this category are in favour of long term investment as compared to short term gain or benefit.

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3) This one is between the questions whether you want to trade in shares and how would you like to make your decision when it comes to trading in shares.

Interpretation: For this question asked all respondent what way would they choose in order to come up to a decision? In this I asked even those who responded no to the question whether they invest in shares or not. It can be seen from the above table and graph that the most of the respondents in the category of people, who responded favourably to the question of whether they

83

trade in shares or not, said that they would like to base their decision upon the information they get through business magazines. When we see the category of the respondents who said to whether they trade in shares or not, they favour first their personal analysis and then the information they get through business magazines. This shows that the respondents are well aware and know how to take a decision. This can be said to be great opportunity for Sharekhan in terms of its magazines and reports which it issues monthly, quarterly and annually.

4) In this we cross tab the questions have you invested in any investment plan and what income group do you belong to.
have you invested in any investment plan? * what income group do you belong to? Crosstabulation Count what income group do you belong to? rs.100000rs.300000 have you invested in any investment plan? yes no Total 5 4 9 rs.300000rs.500000 37 10 47 rs.500000rs.2500000 22 13 35 rs.2500000 and above 4 5 9

Total 68 32 100

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5) This one is between the questions if asked to invest with what would you like to start with and the income group you belong to:
If asked to invest with what amount would you invest? * what income group do you belong to? Crosstabulation Count what income group do you belong to? rs.100000rs.300000 if asked to invest with rs.5000-rs.10000 what amount would you invest? rs.10000-rs.25000 rs.25000-rs.100000 rs.100000rs.500000 Total 9 0 0 0 rs.300000rs.500000 20 22 4 1 rs.500000rs.2500000 20 11 4 0 rs.2500000 and above 8 0 1 0

Total 57 33 9 1

47

35

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6) In this one I have taken the data from the questions if you do not invest in shares what are the reasons for the same and the income group they belong to. The analysis for the same is as follows:

if no, then the reasons for the same? * what income group do you belong to? Crosstabulation Count

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what income group do you belong to? rs.100000rs.300000 if no, then the reasons no answer for the same? lack of knowledge lack of capital lack of better deals lack of transperancy in operations Total 3 2 2 1 1 rs.300000rs.500000 35 6 4 2 0 rs.500000rs.2500000 20 6 2 4 3 rs.2500000 and above 4 0 1 3 1

Total 62 14 9 10 5

47

35

100

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Interpretation: We can see it clearly that the most of the people those who do not invest in shares is because of lack of knowledge of share market. And the most important reason is the lack of better deals. It is important to impart knowledge to the prospective customers about share market. If they are not taught about the procedures and functioning of share market, they will always be reluctant in terms of investment. As far as better deals are concerned in this stiff competition among broking firms if anyone wants to survive and be able to capture a good market share it is necessary that it offer better deals as compared to its competitors and then only can it survive in todays competition.

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7) In this I have tried to do cross tab between two questions that are if you trade in shares and if yes, then through which firm and the income group they belong to. The analysis for the same is as follows.
if yes, through which broking house? * what income group do you belong to? Crosstabulation Count what income group do you belong to? rs.100000rs.300000 if yes, through which broking house? no answer sharekhan angel broking karvy religare icici direct Total 6 1 1 1 0 0 9 rs.300000rs.500000 12 16 7 4 6 2 47 rs.500000rs.2500000 15 10 5 0 5 0 35 rs.2500000 and above 5 2 2 0 0 0 9

Total 38 29 15 5 11 2 100

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Interpretation: it can be seen from the above graph that most of the person used to trade through share khan. It shows the customer belief in share khan. It can be seen that still many of the persons belonging the income group of 500000-2500000 Rs. are not investing any where. It shows that if we target for that income group we can get a good response. By the graph we can see that income group of 300000-500000 is more interested to invest in stock market and here we have maximum no. of customers than any other firm and still there is still a huge gap of customers who are unaware of the trading so we have to target that customers group more effectively to get a good response.

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CONCLUSION

Competitor analysis- various competitors of the company have been found out to know the position of Edelweiss and help it formulate the strategies accordingly Risk Taking Ability- The risk taking ability of people decrease with an increasing age, people take more risks when they are young Preferred channel for buying a financial product- Brokers- From the analysis of the questionnaires it was found out that brokers are the preferred channel for buying a financial product Preferred tool of investment by the customers The preferred tool of investment was found out to be deposits as they have less risk Popularity of the Edelweiss products- Among the Edelweiss products equity is the most preferred investment option Factors affecting the choice of a company- Brand image and Brokerage play a vital role when it comes to the choice of a company

Expectations of the customers- Customers expect the company to improve its service. Competitive advantage of Edelweiss over its rivals- Edelweiss competitive advantage

is its research and development department and online trading platform that is user friendly.

Customer base of Edelweiss- The customer base of Edelweiss is basically of institutional clients

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RECOMMENDATIONS

Make the complaint process and complaint redressal process easy so that there is a scope of improvement

Increase two way communications between the company and the client

If the customer complaints are handled properly they will again do business with the company

There should be more number of brokers and sub- brokers so that they can tap a large chunk of the customers The company needs to go for aggressive advertisement campaign The company should leverage on its research and aggressively use it to promote the products Special training about company products to sales team so that they create awareness among the people Edelweiss should leverage its competence not only for HNWIs but also for retail and corporate clients Bring student plan to attract the student to capture customer before others.

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BIBLIOGRAPHY

www.edelcap.com www.nseindia.com www.edelweiss.in www.google.com www.wikepedia.com

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ANNEXURE

QUESTIONNAIRE

Dear Customer,

As a Management Trainee currently working with Edelweiss Broking I want to thank you for giving us the opportunity to serve you. Please help us serve you better by taking a couple of minutes to tell us about the service that you have received so far. We appreciate your business and want to make sure we meet your expectations.

1. Income

Annual

a) > 3 lakh

b) 3 lakh- 5lakh

c) 5 lakh- 7 lakh

d) 7 lakh and above

2. What are the possible sources that you search for financial product information before making any decision?

a) Television/Radio c) Newspaper/Magazine e) Word of Mouth

b) Internet/Website d) friends f) others, please specify

93

3. Through which one of the channels do you usually buy a financial product? a) Internet c) Direct from the company b) Broker d) others, please specify

4. What is your preferable tool of investment?

a) Bank deposits c) Derivative instruments e) Gold and bullion

b) Real Estate d) Mutual funds f) Equity shares

5. How did you come to know about Edelweiss?

a) Internet c) Reference group

b) Print and electronic media d) By chance

6. Are you aware of all the products offered by Edelweiss? a) Yes b) No

7. Have you used any Edelweiss Financial products?

a) Yes

b) no

8. Which Edelweiss Products are you using now?

a) Mutual Fund

b) demat

c) Debentures

d) others, please specify

94

9. How long have you been associated with Edelweiss? a) Less than 1 month c) 6-12 months b) 1month-3month d) more than 1 year

10. Evaluate the performance of following firms by ranking them on a scale in ascending order

ICICI direct.com Share khan Motilal oswal HDFC securities Edelweiss India Infoline Religare India bulls 5paise.com 11. Please indicate the level of importance regarding your decision factor in buying a financial product in the following scales: 1-not important extremely important 5-

1 Reputation of the company Innovative products Service of the firm Proximity of firm with residence/office Dealer support and guidance Advanced research & development department 95

12. Please rate the overall performance of Edelweiss on following scales a) Extremely satisfied c) Neutral e) Dissatisfied b) Satisfied d) less satisfied

13. Will you recommend Edelweiss products to your friends/family?

a) Yes

b) no

14. If currently you are not using Edelweiss products and edelweiss further enhances its products/services by adding your desirable features, will you buy it?

a) Yes

b) no

15. Are you satisfied with Edelweiss current services in sales and distribution?

a) Yes

b) no

16. What is your opinion about selling strategy of Edelweiss? a) Excellent c) Average b) Above average d) below average

17. In the current financial turmoil according to you what should be the sales promotional strategy for Edelweiss?

a) Point of purchase display television c) Through leaflet e) Personal selling

b) Aggressive add campaign in radio and

d)telemarketing

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18. According to you what is the competitive advantage of Edelweiss over its rivals? a) Minimum cost c) Quality of service providing persons service e) Diversified product portfolio b) Our quality of service d) easy availability of f) Good research input

19. Personal Information

(i) Name:

..

(ii) Age:

less than 25

25-35

35-45

45-55

more than 55

(iii) Gender: (iv) Marital status:

male Married

female single 10th pass 12th pass graduate

(v) Educational Qualifications: post graduate (vi) Occupation: service

business

profess ion

other, please specify

Phone no:

Email id:

97

FOR DORMANT CLIENTS

QUESTIONNAIRE

1. Why you are not associated with Edelweiss?

a) Liquidity crisis c) Alternate brokerage firm

b) lost faith in capital market d) temporary breaks

2. If you are associated with other firm, what are the features that attract you?

a) Low brokerage c) Proximity to residence e) Trained people in the desk

b) Good system support d) Research input

3. What according to you is the weakness of Edelweiss?

a) Low brand awareness c) Services

b) brokerage d) others, please specify

98

4. You prefer to return back with Edelweiss in

a) 6 months years and more

b) 1 year c) 2 d) never

5. Which sectors performance is best?

a) Equity Insurance

b) mutual fund c) d) portfolio

6. Do you support the transition of Edelweiss from niche to mass market? a) Yes b) No

7. In which product did you faced the problem?

a) Equity and Derivatives c) Portfolio

b) Commodity d) E-broking

e) Any others, please specify...........

8. Any suggestion that you would like to put forward by which Edelweiss can improve on its services . 99

9. Personal Information

(i)Name:

(ii) Age:

less than 25 male Married

25-35

35-45 female single

45-55

more than 55

(iii) Gender: (iv) Marital status:

(v) Educational Qualification 10th pass 12th pass

graduate

post graduate

(v) Occupation:

service

business

profess ion other, please specify

(vi)Contact Details:

Phone no: Signature:

Email id:

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EXISTING CLIENTS

QUESTIONNAIRE

1. Since how long you have been associated with Edelweiss?

a) 6 months

b) 1 year

c) 2 years

d) more than 2 years

2. What are the products that you have opted from Edelweiss?

a) Equity

b) Dematerialization

c) Insurance

c) Portfolio management

e) Any other. (Please specify).

3. As a customer, mention your level of satisfaction derived from Edelweiss. a) Excellent c) Good e) Poor 101 b) Very good d) below average

4. In current global turmoil scenario, what are your expectations from Edelweiss?

a) Reduction in brokerage

b) Providing more tips

c) Improvement in service quality

d) providing more lenient and flexible

Customer friendly norms

5. You would recommend Edelweiss to your

a) Family

b) friends

c) Anyone without hesitancy

d) no one

6. Your recommendation to make Edelweiss better? .

102

7. Personal Information ..

(i)Name:

(ii) Age: 55 (iii) Gender:

less than 25

25-35

35-45

45-55

more than

male Married
th

female single

(iv) The marital status:

(v) Educational graduate Qualification:

10

12th

graduate

post

(vi) Occupation:

service

business

profession

other, please specify

(vii) Contact Details: Phone no: Signature: Email id:

103