A

SUMMER PROJECT REPORT

ON

With reference to
SHAREKHAN PVT. LTD.
In partial fulfillment for the degree of

Masters in Management Studies

(Batch: 2008-2010)

Submitted to:-
DR. SANCHITA C. BANERJI
 A PROJECT REPORT ON

A Comparative Study of Major Players of

Stock Brokers in Mumbai Region

IN PARTIAL FULFILLMENT OF MASTERS OF

MANAGEMENT STUDIES AS PRESCRIBED BY

SUBMITTED BY
NIKUNJ SHAH
 Table of
CONTENTS

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Limitations
Suggestions 2

Conclusion

Bibliography
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Appendix

2
 DECLARATION

I Mr. Nikunj R. Shah of Atharva Institute of Management Studies pursuing

Masters in Management Studies (Semester III) hereby declare that I have
completed this project on “A Comparative Study of Major Players of Stock
Brokers in Mumbai Region” for the Academic period 2008-2010. This
information submitted is true and original to the best of my knowledge. This study
report has not been submitted to any other institution or university for the award or
any other degree.

This report is based on my personal opinion hence cannot be referred to legal

purpose.

(Nikunj R. Shah)

Date: -
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 ACKNOWLEDGEMENT

Preservation, inspiration and motivation have always played a key role in the
success of any venture. In the present world of competition and success, training is
like a bridge between theoretical and practical working; willingly I prepared this
particular Project. First of all I would like to thank the supreme power, the almighty
god, who is the one who has always guided me to work on the right path of my life.

My special thanks to Mr. Yatin Padia (Manager Corporate Communication),

and my sincere thanks to Mr. Rajiv (Marketing Head). Also my Special thanks to
my Training head Mr. Swapnil Naik, and other staff members of SHAREKHAN.

My special thanks to Mr. Sunil Rane (Executive President AET) and Prof. Mr.
N. S. Rajan (Dean AIMS) for constantly guiding, motivating and encouraging me.

I also thank my project Guide and Marketing Faculty Dr. Sanchita C. Banerji and
for giving me their valuable inputs for the project.

I am also thankful to all the teaching and non teaching staff for their continuous
support and guidance.

Last but definitely not the least my gratitude goes to my Mother and my Father
for believing in me.
 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.

This study suggests that people are reluctant while investing in stock and
commodity market due to lack of knowledge.

Main purpose of investment is returns and liquidity, commodity market is less

preferred by investors due to lack of awareness. The major findings of this study are
that people are interested to invest in stock market but they lack knowledge.

Through this report we were also able to understand, what are our Company’s
(Sharekhan 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.

We also gave suggestions to the company, what improvement can be done to our
product.

"
INTRODUCTION

(
Stock Exchange, in Mumbai, is Asia's oldest and
India's largest stock exchange.
*
 The Role Of Stock Exchanges
Stock exchanges have multiple roles in the economy, this may include the
following:

Raising capital for businesses

The Stock Exchange provides companies with the facility to raise capital for
expansion through selling shares to the investing public.

Mobilizing savings for investment

When people draw their savings and invest in shares, it leads to a more rational
allocation of resources because funds, which could have been consumed, or kept in
idle deposits with banks, are mobilized and redirected to promote business activity
with benefits for several economic sectors such as agriculture, commerce and
industry, resulting in stronger economic growth and higher productivity levels and
firms.

Facilitating company growth

Companies view acquisitions as an opportunity to expand product lines, increase
distribution channels, hedge against volatility, increase its market share, or acquire
other necessary business assets. A takeover bid or a merger agreement through the
stock market is one of the simplest and most common ways for a company to grow
by acquisition or fusion.

Profit sharing
Both casual and professional stock investors, through dividends and stock price
increases that may result in capital gains, will share in the wealth of profitable
businesses.
Corporate Governance
By having a wide and varied scope of owners, companies generally tend to improve
on their management standards and efficiency in order to satisfy the demands of
these shareholders and the more stringent rules for public corporations imposed by
public stock exchanges and the government. Consequently, it is alleged that public
companies (companies that are owned by shareholders who are members of the
general public and trade shares on public exchanges) tend to have better
management records than privately-held companies (those companies where shares
are not publicly traded, often owned by the company founders and/or their families
and heirs, or otherwise by a small group of investors). However, some well-
documented cases are known where it is alleged that there has been considerable
slippage in corporate governance on the part of some public companies. The dot-
com bubble in the early 2000s, and the subprime mortgage crisis in 2007-08, are
classical examples of corporate mismanagement. Companies like Pets.com (2000),
Enron Corporation (2001), One.Tel (2001), Sunbeam (2001), Webvan (2001),
Adelphia (2002), MCI WorldCom (2002), Parmalat (2003), American International
Group (2008), Lehman Brothers (2008), and Satyam Computer Services (2009)
were among the most widely scrutinized by the media.

Creating investment opportunities for small investors

As opposed to other businesses that require huge capital outlay, investing in shares
is open to both the large and small stock investors because a person buys the
number of shares they can afford. Therefore the Stock Exchange provides the
opportunity for small investors to own shares of the same companies as large
investors.
Government capital-raising for development projects
Governments at various levels may decide to borrow money in order to finance
infrastructure projects such as sewage and water treatment works or housing estates
by selling another category of securities known as bonds. These bonds can be raised
through the Stock Exchange whereby members of the public buy them, thus loaning
money to the government. The issuance of such bonds can obviate the need to
directly tax the citizens in order to finance development, although by securing such
bonds with the full faith and credit of the government instead of with collateral, the
result is that the government must tax the citizens or otherwise raise additional
funds to make any regular coupon payments and refund the principal when the
bonds mature.

Barometer of the economy

At the stock exchange, share prices rise and fall depending, largely, on market
forces. Share prices tend to rise or remain stable when companies and the economy
in general show signs of stability and growth. An economic recession, depression,
or financial crisis could eventually lead to a stock market crash. Therefore the
movement of share prices and in general of the stock indexes can be an indicator of
the general trend in the economy.

Capital Market is divided into two categories.

1. Primary Market.
2. Secondary Market.

Primary Market.
Securities generally have two stages in their lifespan. The first stage is when the
company initially issues the security directly from its treasury at a predetermined
offering price. This is a primary market offering. It is referred to as the Initial Public
Offering (IPO).
In primary market, securities are offered to public for subscription for the purpose
of raising capital or fund.

Secondary Market.
Secondary Market refers to a market where securities are traded after being
initially offered to the public in the primary market and/or listed on the Stock
Exchange. Majority of the trading is done in the secondary market. Secondary
market comprises of equity markets and the debt markets. Secondary market is
an equity trading avenue in which already existing/pre- issued securities are
traded amongst investors Secondary market could be either auction or dealer
market.

2
 Introduction to the company
SHAREKHAN
Sharekhan Ltd is India’s leading online retail broking house with its presence
through 1288‘Share Shops’ in 325 cities and serving more than 8, 00,000 customers
th
across the nation. Launched on Feb 8 2000 as an online trading portal, Sharekhan
offers its clients trade execution facilities for cash as well as derivatives, on BSE
and NSE, depository services, mutual funds, initial public offerings (IPOs), and
commodities trading facilities on MCX and NCDEX. Besides high quality
investment advice from an experienced research team Sharekhan provides market
related news, stock quotes fundamental and statistical information across equity,
mutual funds, IPOs and much more.

Sharekhan has set category leadership through pioneering initiatives like ‘Speed
Trade’, a net based executable application that emulates a broker terminal besides
providing information relevant to Day traders. Their second initiative, ‘First Step’ is
targeted at empowering first time investors. Sharekhan has also set their global
footprints through the ‘India First’ initiative, a series of seminars conducted by
Sharekhan to help NRIs participate and benefit from the huge investment
opportunities in India.
These exchange do not work of its own, rather, these are run by some persons and
with the help of some persons and institution. All these are down as functionaries on
stock exchange. These are
1. Stockbrokers
2. Sub-broker
3. Market makers
4. Portfolio consultants etc.
1.) Stockbrokers

A Stock broker is a member of a recognized stock exchange, who is permitted to do

trades on the screen-based trading system of different stock exchanges. He is
enrolled as a member with the concerned exchange and is registered with SEBI.
These are the persons who buy, sell or deal in securities. A certificate of registration
from SEBI is mandatory to act as a broker. SEBI can impose certain conditions
while granting the certificate of registrations. It is obligatory for the person to abide
by the rules, regulations and the buy-law. Stock brokers are commission broker,
floor broker, arbitrageur etc.

Details of registered brokers

Total no. of registered Total no. of sub-brokers as on

brokers as on 31.03.2009 31.03.2009

9000 Approx 2,40,000 Approx

2.) Sub-broker

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

Market maker is a designated specialist in the specified securities. They make

both bid and offer at the same time. A market maker has to abide by bye-laws, rules
regulations of the concerned stock exchange. He is exempt from the margin
requirements. As per the listing requirements, a company where the paid-up capital
is Rs. 3 crore but not more than Rs. 5 crore and having a commercial operation for
less than 2 years should appoint a market maker at the time of issue of securities.

4.) Portfolio consultants

A combination of securities such as stocks, bonds and money market
instruments is collectively called as portfolio. Whereas the portfolio consultants are
the persons, firms or companies who advise, direct or undertake the management or
administration of securities or funds on behalf of their clients.
It is basically a stock brokering company which deals in security and derivative
market, Commodity market, mutual funds and Insurance etc.
SHAREKHAN- ONE OF THE FASTEST GROWING
FINANCIAL
SERVICES COMPANY IN INDIA

"
 SHAREHOLDERS & THE MANAGEMENT TEAM

ORGANISATIONAL HIERARCHY OF SHARE KHAN

Regional Sales Manager

TEAM MANAGER TEAM MANAGER TEAM MANAGER

Asst.Mgr Asst.Mgr Asst.Mgr Asst.Mgr Asst.Mgr

F.SALES EXE(5) VAR SALES EXE(5)

(
 WORK STRUCTURE OF SHAREKHAN

Sharekhan has always believed in investing in technology to build its business. The
company has used some of the best-known names in the IT industry, like Sun
Microsystems, Oracle, Microsoft, Cambridge Technologies, Nexgenix, Vignette,
Verisign Financial Technologies India Ltd, Spider Software Pvt Ltd. to build its
trading engine and content. The Citi Venture holds a majority stake in the
company. HSBC, Intel & Carlyle are the other investors.
On April 17, 2002 Sharekhan launched Speed Trade and Trade Tiger, are net-based
executable application that emulates the broker terminals along with host of other
information relevant to the Day Traders. This was for the first time that a net-based
trading station of this caliber was offered to the traders. In the last six months
SpeedTrade has become a de facto standard for the Day Trading community over
the net.
Sharekhan’s ground network includes over 1288+ Shareshops in 325+ cities in
India.
The firm’s online trading and investment site - www.sharekhan.com - was launched
on Feb 8, 2000. The site gives access to superior content and transaction facility to
retail customers across the country. Known for its jargon-free, investor friendly
language and high quality research, the site has a registered base of over 3 Lacs
customers. The number of trading members currently stands at over 8 Lacs. While
online trading currently accounts for just over 5 per cent of the daily trading in
stocks in India, Sharekhan alone accounts for 27 per cent of the volumes traded
online.

The Corporate Finance section has a list of very prestigious clients and has many
‘firsts’ to its credit, in terms of the size of deal, sector tapped etc. The group has
placed over US$ 5 billion in private equity deals. Some of the clients include

*
BPL Cellular Holding, Gujarat Pipavav, Essar, Hutchison, Planetasia, and
Shopper’s Stop.
Finally, Sharekhan shifted hands and Citi venture get holds on it.
 Sharekhan offers the following products.

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

Features
• Online trading account for investing in Equity and Derivatives via
www.sharekhan.com

• 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.

SPEEDTRADE
SPEEDTRADE 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 day’s
session to capitalize on intra-day price movement.
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 broker’s terminal.
• Alerts and reminders.
• Back-up facility to place trades on Direct Phone lines.
• Live market debts.

DIAL-N-TRADE
Along with enabling access for trade online, the CLASSIC and
SPEEDTRADE ACCOUNT also gives Dial-n-trade services. With this service, one
can dial Sharekhan’s dedicated phone lines 1-800-22-7500, 3970-7500.
Beside this, Relationship Managers are always available on Office Phone and
Mobile to resolve customer queries.

ShareMobile
Sharekhan had introduced ShareMobile, mobile based software where one
can watch Stock Prices, Intra Day Charts, Research & Advice and Trading Calls
live on the Mobile.
PREPAID ACCOUNT
Customers pay Advance Brokerage on trading Account and enjoy
uninterrupted trading in their Account. Beside this, great discount are also available
on brokerage.
Prepaid Classic Account : - Rs750 < Rs. 2000
Prepaid Speed trade Account : - Rs. 2000 < Above.

IPO ON-LINE
Customers can apply to all the forthcoming IPOs online. This is quite hassle-
free, paperless and time saving. Simply allocate fund to IPO Account, Apply for the
IPO and Sit Back & Relax.

Mutual Fund Online

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

2
 CHARGE STRUCTURE
Fee Structure for General Individuals: -

Charges* Classic Account Speed Trade Account

Account Opening Rs. 750 Rs. NIL

Monthly Rs. NIL Rs. NIL

Commitment

Brokerage Intra-day – 0.05 % Intra-day - 0.05%

Delivery - 0.50 % Delivery - 0.50%
* Taxes as per govt.
EXPOSURE: 4 TO 6.7 TIMES (ON MARGIN MONEY)
BROKERAGE RATES OF SHAREKHAN.COM
MAJOR PLAYERS IN THE REGION
 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.

History of Karvy :- The birth of Karvy was on a modest scale in 1981. It began
with the vision and enterprise of a small group of practicing Chartered Accountants
who founded the flagship company, Karvy Consultants Limited. They started with
consulting and financial accounting automation and carved inroads into the field of
registry and share accounting by 1985. Since then, karvy utilized its experience and
superlative expertise to go from strength to strength, to better their services, to
innovate, diversify and in the process, evolved as one of India’s premier integrated
financial service enterprise.
PRODUCT AND SERVICES OF KARVY GROUP
• Karvy comtrade.
• Karvy consultant ltd.
• Karvy merchant banking.
• Karvy global services ltd.
 ICICI Direct

ICICI Web Trade Limited (IWTL) maintains www.icicidirect.com (herein after

referred to as the "Website") whereas IWTL is an affiliate of ICICI Bank Limited
and the Website is owned by ICICI Bank Limited. IWTL has launched and
established an online trading service on the Website.

PRODUCTS AND SERVICES OF ICICI DIRECT

1. Investing in Mutual funds

2. Personal Finance
3. Customer Service Features
4. IPO’s
5. Margin Trading
6. Margin PLUS Trading
7. Call Trade
8. Trading on NSE/BSE

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

PRODUCT OFFERED BY IILSPL

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

(
 HDFC SECURITY

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.

PRODUCT OFFERED BY HDFC SECURITY

• Online trading for Resident & Non Resident Indians.
• Cash-n-Carry on both NSE and BSE.
• Day trading on both NSE and BSE.
• Trade on Futures & Options on the NSE.
• Online IPO's.
• Telephone-based Broking (Equity & Derivatives).

*
 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 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.

INDIABULLS CREDIT SERVICES LIMITED: - Indiabulls Credit

Services has been valued at Rs. 263 crore with the Rs. 87.6-crore infusion.
Indiabulls Credit Services Ltd, the recently formed subsidiary of broking firm,
Indiabulls Financial Services Ltd. Faralon Capital, a San Francisco-based private
equity fund, and its affiliates have acquired 33.3 per cent stake for Rs 87.6 crore.
INDIABULLS REAL ESTATE: - Indiabulls through its group companies has
entered Indian Real Estate business in 2005. It is currently evaluating several large-
scale projects worth several hundred million dollars. Indiabulls became the first
company to bring FDI in Indian Real Estate through a JV with Farallon Capital
Management, a respected US based investment firm.
 OTHER PRODUCT OFFERED BY INDIA BULLS
• Equity & Debt Stock Broking.
• Insurance.
• Commodity trading.
• Depository Services.
• Derivatives Broking Services.
• Equity Research Services.
• Mutual Fund Distribution.
STRENGTHS
• Employees are highly empowered.
• Strong communication network.
• Management philosophy and commitment to maximize shareholders returns
• Upgraded product design and development facilities to develop new products
and aid diversification.
• Ongoing activities to support up gradation of operational performance and
rise in productivity
• Team of talented and committed professionals available to improve
company’s performance weakness.
• Good co-operation between employees.
• Number 1 registrar and transfer agent in India.
• Number 1 dealer of investment products in India

WEAKNESS
• Competition from cheap imports
• Low customer base.
• High employee turnover.

OPPORTUNITIES
• Growth rate of mutual fund industry is 40 to 50% during last year and it
expected that this rate will be maintained in future also.
• Marketing at rural and semi-urban areas.

2
Threats, Risks & Concerns
• Increasing number of local players.
• Constant pressure to be cost competitive to meet customer
expectations.
• Relentless pressure to maintain profitability due to rising input/raw
material prices.
 RESEARCH METHODOLOGY

Objective of Research
Any activity done without an objective in a mind cannot turn fruitful. An objective
provides a specific direction to an activity. Objectives may range from very general
to very specific, but they should be clear enough to point out with reasonable
accuracy what researcher wants to achieve through the study and how it will be
helpful to the decision maker in solving the problem.
Each research study has its own specific purpose. It is like to discover to Question
through the application of scientific procedure. But the main aim of our research to
find out the truth that is hidden and which has not been discovered as yet. Our
research study has two objectives:-

OBJECTIVE FOR DOING THE PROJECT : -

1. To know about the awareness of the consumers towards stock brokers and share
market.
2. To study the market share of Sharekhan Ltd in the Share market and identify the
areas of competitive advantage over other players
3. To study about consumer awareness & satisfaction, about operational Services &
procedures of Share khan Ltd.
4. To study about the difficulties faced by the clients/trades while trading with
Sharekhan.
5. To identify the lacunae in the present system suggesting the measures
improvement in current Trading system.
 TYPES OF RESEARCH

On the basis of theoretical study a research has many types. All of these are
distributed on the nature of research. Some of these are like
1. Descriptive and Analytical
2. Qualitative and Quantitative
3. Conceptual and empirical
4. Applied and fundamental
5. One time research
Our research is based on Descriptive, Qualitative and Quantitative research.
Descriptive Research: - Descriptive research includes surveys and fact finding
enquires of different kinds. The major purpose of descriptive research is description
of the state of affairs as it exists at present. Researcher has no control over the
variables of this type of research.

Qualitative Research: - In our research we need comparison between different

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

Quantitative research: - Quantitative research is based on the measurement of

quantity or amount. It is applicable to phenomena that can be expressed in terms of
quantity. So we can use it in our research for collection of all the numerical data.
SAMPLE DESIGN
“A sample design is a definite plan for obtaining a sample from a given population.
It refers to the technique or the procedure the researcher would adopt in selecting
item for the sample”
Generally Sample designs are two types

1. PROBABILITY RESEARCH DESIGN

2. NON PROBABILITY RESEARCH DESIGN

We used the probability research design.

SAMPLING UNITS
Sampling unit may be a geographical one, such as state, district, village etc. The
researcher will have to decide one or more of such units that he has to select for his
study.

SIZE OF SAMPLE
“This refers to the number of items to be selected from the universe to constitute a
sample”
The sample size in this project is 50.
But we also study the 5 stock broker companies related to security & commodity
market like India-infoline, ICICI direct, HDFC securities, Karvy consultant ltd. for
the appropriate collection of the information.

"
 SOURES OF DATA COLLECTION
While deciding about the method of data collection to be used for the study the
researcher should keep to types of data.

1. Primary Data
The Primary Data Is Collected Using Sampling Method And By Survey Using
Questionnaire.

2. Secondary Data
Secondary data includes information regarding present market scenario, information
regarding mutual funds and competitors are collected by internet, magazines and
news papers and books.

Survey Method: - Survey refers to the method of securing information

concerning phenomena under study from all or selected number of respondents of
the concerned area. In a survey the investigator examines those phenomena which
exist in the universe independent of his action.

Scheduling: - In this method the enumerators along with schedules, go to

respondents, put to them the questions from the performa in the order the
questions are listed and recorded the replies in the space meant for the same in
the performa. In present report Scheduling Method is used.

(
 COMPARATIVE ANALYSIS

A Comparative analysis was done and following results were found:

There are the two type of the transaction:-

1. Intra-day based

Another way of saying “within the day". Intraday price movements are
particularly important to short-term traders looking to make many trades over
the course of a single trading session

2. Delivery based

Delivery based trading is normally considered as a safer approach for trading

in shares when compared to day trading. Delivery based trading involves
buying shares on a market day and selling them only after receiving the
delivery of those shares in demat account.

2*
 Results on the Basis of charges/Brokerage.

All the figures are in paisa/100 rupees.

COMMENT
According to the survey HDFC securities charge maximum brokerage as compare
to others whereas India Infoline Ltd. charges only 0.20 paisa on maximum
investment.

2
 Results On the basis of Account opening charges

HDFC securities ltd: - Account opening charges w.e.f. April 2005 are as follows: -
Rs.749, if the customer has an existing relationship with HDFC.

Sharekhan ltd: - There are no account opening charges with sharekhan only if the
client is an HNI (High Networth Individual) i.e. he churns more money in market,
or else he has to pay Rs 750 as an account opening charges but require minimun
margin money of Rs 5000 for trading purposes.
ICICI direct: - A one-time charge of Rs. 750 at the time of account opening will be
charged. You may later upgrade your Invest account to an ICICI direct.com share
trading account when you desire to trade in equity.

India Infoline: - There is a nominal charge of Rs. 500 only towards stamp duty,
legal and processing fees for opening the account. This includes the registration and
account opening charges. Bank and Depository Participant (DP) account opening
charges, if applicable, are payable separately.

KARVY consultants ltd: - Account Opening Charges Are 452 But now SEBI
banned on opening of new demat account of Karvy.

Indiabulls: - Account opening charges are Rs. 900. There is no AMC and no
margin money is required.

Comment: - India Bulls charge maximum account opening charges but there are no
such charges in Sharekhan Pvt. Ltd.

Results on the basis of customer preferences

2
1. According to survey 70 % peoples are satisfied with Sharekhan Ltd because of
their RM’s facility and power of Sharekhan Ltd software.

2. According to survey, Sharekhan Ltd open new branches for individually handle
to their customer, but in ICICI direct, HDFC security there is no separate offices for
this .So people prefer Sharekhan Ltd.

Results On The Basis Of Facilities

Basis of Sharekhan Karvy India ICICI Indiabulls HDFC
difference Ltd. Infoline direct
Share
trading Yes Yes Yes Yes Yes Yes
Commodity
trading Yes Yes Yes Yes Yes Yes

D-mat
opening Yes No Yes Yes Yes No
rights

2
 FINDINGS & ANALYSIS
1) Do you know about investment options available?
KNOWLEDGE AGE (%)
Yes 80%
No 20%
TOTAL 50

COMMENT:- Only 80% people know the exact meaning of investment. Because of
remaining 20% take his/her residential property as an investment. According to law
purpose this is not an investment because of it is not create any profit for the owner.

22
2) Most preferable investment scenario.

INVESTMENT %AGE
SCENARIO
Banks 24%
Derivatives & securities 28%
market
Insurance 4%
Bonds 20%
Real estate 20%
Others 4%

TOTAL 50
____________________ ________________

COMMENT
Today in the changing scenario, people are more interested in derivatives &
securities markets. According to the above graph, it can be seen that out of total
responses, 28% goes in favor of derivatives & securities market. 24% are interested
in bank securities, 20% are interested in bond and real estate, and a very small
amount of consumers are interested to invest into insurance securities.

2
 3) What is the basic purpose of your investment?

INVESTMENT PERCENTAGE
PURPOSE
Liquidity 30%
Returns 25%
Capital 10%
appreciation
Tax benefits 20%
Risk covering 5%
Others 10%
TOTAL 50

COMMENT:-75% people are interested in liquidity, returns and tax benefits.

And remaining 25% are interested in capital appreciations, risk covering, and
others.

2
4) Most important things you take into your mind while making
investments?

FACTOR %AGE

Risk 8%

Returns 18%
Both 74%
TOTAL 50

COMMENT75% people are considered the both factors risk as well as returns but, only 8%
considered the risk and 17% on returns factor.
2
5) Awareness related to security markets

KNOWLEDGE PERCENTAGE
Complete 8%
Partial 74%
Nil 18%
TOTAL 50

COMMENT

On that basis, we conclude that 17% people know nothing about the securities
investments and 75% people have partial knowledge about it, so, some promotional
activities are required for increasing the awareness about security market.

2"
6) In which company you have d-mat and trading account?
COMPANY PERCENTAGE
SHAREKHAN 38%

INDIAINFOLINE 20%

ICICI DIRECT 14%

INDIA BULLS 12%
KARVY 8%
Others 8%

TOTAL 50

COMMENT:- In Sharekhan Ltd 38% respondents have de-mat & trading account because of
better services and no annual maintenance for the First year and other charges, 20% are with
indiainfoline because of their web portal 5paisa.com, 14% are with ICICI Direct because they
have their accounts in ICICI bank.
2(
8) Are you satisfied with you present broking firm?

YES 58%
NO 42%
TOTAL 50

COMMENT: -
According to the above graph it shows that 65% of respondents are not satisfied from
their present broking firm and only 35% of respondents are satisfied from their brokers
mainly because of their Product or their Services.

*
9) Specify the reason of satisfaction with the current broking house.

SATISFACTION PERCENTAGE
Operating expenses 28.57%
Services 33.33%
Brokerage 38.10%
TOTAL 100

COMMENT
According to the above graph it shows that 57% of the clients are satisfied because
of the brokerage that they charge, 25% of clients are satisfied because of the
services that they are given, and 18% because their operating expenses are low.
CROSS TABS
"In which Company do you have D-Mat and Trading Account" * "Are you
satisfied with your present Broking Firm" Crosstabulation
Count
"Are you satisfied with your
present Broking Firm"

YES NO Total

"In which Company do SHAREKHAN 14 5 19

you have D-Mat and INDIAINFOLINE 6 4 10
Trading Account"
ICICI DIRECT 3 4 7

INDIA BULLS 2 4 6

KARVY 3 1 4

OTHERS 1 3 4
Total 29 21 50

"In which Company do you have D-Mat and Trading Account" * "The Reason for yuor
satisfaction with the current broking firm" Cross tabulation
Count

"The Reason for your Dis-satisfaction with

the current broking firm"

OPERATING
EXPENSES SERVICES BROKERAGE Total

"In which Company do SHAREKHAN 2 1 2 5

you have D-Mat and INDIAINFOLINE 1 3 0 4
Trading Account"
ICICI DIRECT 2 1 1 4

INDIA BULLS 0 0 4 4

KARVY 0 0 1 1

OTHERS 1 2 0 3
Total 6 7 8 21
 FINDINGS
According to the survey most of the customers of “Sharekhan Ltd” says that it is
pocket friendly.
Coming to faith 70% say Sharekhan Ltd is better than others stock brokers due
to customers satisfaction.
Main purposes of investments are returns & liquidity.
Investors take risk as well as returns into their mind while making the
investment.
Businessmen are more interested in the stock market than others.
Commodity market is less preferred by the investors.
People want to invest their money in the security market but they don’t have the
proper knowledge. They are also not aware of hedging in stock market.
Traders pay more emphasis on brokerage than service provided by brokerage
houses.

LIMITATIONS

• Due to limitation of time a sample size of only 50 respondents were chosen.

• The survey was carried through questionnaire and the questions were based on
perception.

• The sample for research was chosen only from a limited area.

• Some of the respondents may be biased in giving responses.

• Complete data was not available due to company privacy and secrecy.
 SUGGESTIONS

The facility of free demonstrations should be provided for all.

Improvement in the opening of De-mat & contract notice procedure is required.
There should be a limited number of clients under the relationship manger, so
that he can handle new as well as old customer properly.
Some promotional activities are required for the awareness of the customer,
seminars should be held for providing information to prospective and present
customers.
People at young age should be encouraged to invest in stock market.
There is high potential market for mutual fund in Mumbai city, but this market
needs to be explored as investors are still hesitated to invest their money in
mutual funds.

Investors have inadequate knowledge about mutual funds, so proper marketing

of various schemes is required; company should arrange more and more
seminars on mutual funds.

2
 CONCLUSION

On the basis of the study it is found that Sharekhan Ltd is better services
provider than the other stockbrokers because of their timely research and
personalized advice on what stocks to buy and sell. Sharekhan Ltd. provides the
facility of Trade tiger as well as relationship manager facility for encouragement
and protects the interest of the investors. It also provides the information through
the internet and mobile alerts that what IPO’s are coming in the market and it also
provides its research on the future prospect of the IPO.

Study also concludes that people are not much aware of commodity market and
while it’s going to be biggest market in India.

The company should also organize seminars and similar activities to enhance the
knowledge of prospective and existing customers, so that they feel more
comfortable while investing in the stock market.
 BIBLIOGRAPHY

Books

G C. BERI - MARKETING RESEARCH

NEW DELHI, TATA Mc GRAW-HILL PUBLISHING COMPANY

LIMITED.

C.R.KOTHARI - RESEARCH METHODOLOGY

NEW AGE INTERNATIONAL LTD.

Magazines

VALUELINE (SHAREKHAN MONTHLY RESEARCH MAGAZINE)

CAPITAL MARKET (5PAISA.COM), NEW DELHI.

THE FINAPOILS (YOUR PERSONAL FINANCE ADVISOR FROM

KARVY).
 Webliography

http://www.moneycontrol.com

http://www.capitaline.com

http://www.sharekhan ltd.com

http://www.indiainfoline.com

http://www.icicidirect.com

http://www.hdfcsecurity.com

http://www.karvy.com

http://www.bseindia.com

http://economictimes.indiatimes.com/
 APPENDIX
QUESTIONNAIRE

DATE:

NAME

OCCUPATION

AGE

CONTACT NO.

1) Do you know about Investment options available?

a) Yes b) No

2) Do you know about the different types of investment alternatives?

a) Insurance & mutual funds b) Banks

c) Real estate d) Share market

e) Commodity f) Others

3) What is the basic purpose of your investment?

a) Liquidity b) Returns

c) Capital appreciation d) Risk covering

e) Tax benefits

"
4) What are the most important things you take into account, while making
any investment?

a) Risk b) Returns c) Both

5) Do you have any knowledge of share markets?

a) Partial b) Complete c) Nil

6) Do you have any D-mat & Trading account?

a) Yes b) No

7) In which company you have D-mat & Trading account?

a) Sharekhan Ltd b) Karvy

c) Indiainfoline d) ICICI direct

e) Indiabulls f) HDFC securities

g) Others

8) Are you satisfied with your present broking company?

a) Yes b) No

9) What is the reason? Please specify.

a) Services _______________________________________

b) Brokerage _____________________________________

c) Operating expenses ______________________________

d) Others ________________________________________

(
10) What is your trading exchange preference?

a) NSE b) BSE

c) MCX d) NCDEX

Suggestion:-