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SUBMITTED BY:
Mukesh Jha
ID NO:-D0911SSISBE10029(DEL-4/DC-1157)
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ACKNOWLEDGEMENT
project.
for extending the advice and direction that is required to carry on a study
of this nature, and for helping me with the intricate details of the project
Finally I would like to thank all the employees and clients who
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OBJECTIVE
1. EXECUTIVE SUMMARY
2. RESEARCH METHODOLOGY
3. COMPANY PROFILE
5 SWOT ANALYSIS
6 INTRODUCTION TOPUBLICEQUITY
MARKET
7 COMPARATIVE ANALYSIS
8 REFRENCES
9 ANNEXURE
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CHAPTER 1 - OBJECTIVE
1.1 OBJECTIVES:
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PRIMARY OBJECTIVE:
SECONDARY OBJECTIVE:
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CHAPTER 2 - EXECUTIVE SUMMARY
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CHAPTER 3 -RESEARCH METHODOLOGY
OBJECTIVES
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3.1.1 DESIGNING A RESEARCH PLAN:
For the purpose of getting proper information and then further analysis
the research plan was efficiently and effectively designed. Various
decisions were taken related to
Data sources
Research approaches
Research instruments
Primary data
Secondary data
Primary data
Secondary data
Observation
Survey
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I met various individuals and I gained their responses through a
structured, non-disguised questionnaire, a copy of questionnaire is
attached.
Questionnaire
Verbal Interaction
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CHAPTER 4 -COMPANY PROFILE
VISION
MISSION
4.2 INTRODUCTION:
The Company was promoted by three engineers from IIT Delhi, and has
attracted more than Rs.700 million as investments from venture capital,
private equity and institutional investors such as LNM India Internet
Ventures Ltd., Transatlantic Corporation Ltd., Farallon Capital Partners,
L.P, R R Capital Partners L.P, and Infinity Technology Trustee Pvt. Ltd.
and has developed significant relationships with large commercial banks
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such as Citibank, HDFC Bank, Union Bank, ICICI Bank, ABN Ambro
Bank, Standard Chartered Bank, Lord Krishna Bank and IL&FS.
The Company and its subsidiaries have facilities from the above-
mentioned banks and financial institutions aggregating to Rs. 1765
million. The company headquarters are co-located in Mumbai and Delhi,
allowing it to access the two most important regions for Indian financial
markets, the Western region including Mumbai, rest of Maharashtra and
Gujarat; and the Northern region, including the National Capital Territory
of Delhi, nearby cities, parts of Haryana, Uttar Pradesh and Punjab; and
access the highly skilled and educated workforce in these cities. The
Marketing and Sales efforts are headquartered out of Mumbai, with a
regional headquarter in Delhi; and its back office, risk management,
internal finances etc. are headquartered out of Delhi, allowing the
Company to scale these processes efficiently for the nationwide network.
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4.4 WHY INDIABULLS? MAKING YOUR INVESTMENT EASY!
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• Equity Research Department, which studies the market and provides
information.
4.5 SUBSIDIARIES:
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INDIABULLS INSURANCE ADVISORS PVT. LTD
3. Depository Services
4. Insurance
5. Personal Loans
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EQUITIES & DERIVATIVES
• Active traders
INDIABULLS OFFERS
TYPES OF ACCOUNTS
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• Non-Resident Indian (NRI) Investor Services - With an
extensive range of investment products, you will discover an
unwavering commitment to helping you invest in India.
Peer analysis
Fundamental analysis
Ratio analysis
Industry outlook
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Ease of use and understandable ratings
No conflict of interest
Regular Updates
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Client could consider the ratings, financials, analyzing the peer group and
the different analyst’s opinions to make a smart investment decision.
DEPOSITORY SERVICES
• NSDL
• CDSL
INSURANCE
PERSONAL LOANS
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Features of Easymoney are:
You take today and you can pay it tomorrow with no penalties
DOCUMENTS REQUIRED:
• Residence Proof
• Identity Proof
• Income Proof
• Provides our clients with real-time service & 24/7 accesses to all
information and products.
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• Indiabulls offers a full range of financial services and products
ranging from Equities to Insurance to enhance your wealth and hence,
achieve your financial goals.
• Place orders
• Get access to IPO’s via the Book Building route as well as to all the
fixed price issues.
• Passport
• PAN Card
• Voter ID
• Driving License
• Ration Card
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Features of Power Indiabulls (It is a unique offering by the company
which helps an investor to trade online).
An investor can avail this feature by paying a fee of Rs. 750, with this he
can track all the listed scripts at NSE.
• Technical Analysis
• Margin trading of 4 times the cash deposited for delivery based trade.
• Margin trading of 8 times the cash deposited for intra-day based trade.
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• Buy today Sell tomorrow for all securities facility.
The major core philosophy of the company has been to provide the best
service to the customer.
TECHNOLOGY
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• Risk Management System is built around real time technology
requiring minimal human intervention
ISL’s Internet Based Share trading system handles over 22,871 clients
spread all across the country. At the core of the Internet based share
trading system is an in-house developed application that interfaces with
the NSE and allows users to carry out stock transactions online. This
application has following features:
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• India bulls Equity Research & Analysis
• Streaming Quotes
The main components of the Internet Based Share Trading cum CTCL
application are explained below:
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orders placed by customers against the limits available to them as per our
risk management logic. This module accepts and forwards to the
exchange all orders that pass the risk management criteria while rejecting
any that do not meet them. This component of the application is written
in C and runs on the Tru-64 Unix platform with interfaces to the
Database.
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• Bandwidth throttling for better performance on slow Internet
connections at client end.
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4.7 COMPETITIVE STRENGTHS TO BE THE MARKET
LEADER
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ETHICAL VALUES
CORE COMPETENCY
Their focus on the client has allowed the company to offer a range
of services that have changed the investing landscape and created a new
model of financial services that melds people and technology to provide
an integrated human assisted technology interface service for investors
who range from self-directed full-time active investor to those who prefer
to deal with through a marketing associate in smaller towns and cities.
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Give clients new levels of choice tailored to their desire for help, tools
for investing their assets, their willingness to pay for additional
services and the level of business they can do with us
SOCIAL INITIATIVES
Does the business house think of the society and the nation or are
they basically concerned about profit generation only.
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CHAPTER 5 - SWOT ANALYSIS
ENVIRONMENTAL SCAN
SWOT MATRIX
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STRENGTHS:
A firm’s strengths are its resources and capabilities that can be used as
a basis for developing a competitive advantage. Examples of such
strengths include:
• Patents.
WEAKNESS:
In some cases, a weakness maybe the flip side of a strength. Take the
case in which a firm has a large amount of manufacturing capacity. While
this capacity may be considered as strength that competitors do not share,
it also maybe considered a weakness if the large investment in
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manufacturing capacity prevents the firm from reacting quickly to
changes in the strategic environment.
OPPURTUNITIES:
• Loosening of regulations.
THREATS:
• New regulation.
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and upcoming opportunities. In some cases, the firms can overcome a
weakness in order to prepare it to pursue a compelling opportunity.
Depository Services
Commodities
Insurance
Mutual Funds
IPO’s
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Loans
• No custodial charge
• Real time online transfer fund and exposure updating facility with
HDFC, CITIBANK, ICICI, IDBI, Standard Charted, Federal Bank,
AbnAmro.
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WEAKNESS OF INDIABULLS:
• It should have its own mutual funds i.e. Indiabulls as of now does
not have its own mutual funds, instead of providing advises in
mutual funds it should have its own mutual funds.
• It does not display the scripts in BSE on its terminal i.e. POWER
INDIABULLS. To trade in scripts in BSE the customer has to open
the website www.bseindia.com.
• It does not provide with the indices of major world markets, ADR
prices of Indian scripts.
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OPPURTUNITIES TO INDIABULLS:
• The Capital market in the last few years has turned out to be one of
the favorable avenues for the retail investors. This is due to the
performance of the Indian Industry in various sectors and the
Economy in general. Even the future outlook looks promising.
• Indiabulls has tied up with other third party companies to sell their
products. Due to the high client base of Indiabulls, there exists an
opportunity to cross sell these products in the market.
THREATS TO INDIABULLS:
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• Government Regulations.
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ORGANIZATION STRUCTURE:
Vice President-Sales
Branch Manager
Team Leader
Relationship Manager
Sales Executive
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5.5 BACK - OFFICE OPERATIONS OF INDIABULLS
• There are other two people who carry on the activities related to
Dematerialization of Shares and basic query handling of clients.
THE OPERATIONS:
• HDFC
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• ICICI
• CITI bank
• IDBI
• ABN AMRO
• STANDARD CHARTERED
• UTI
After scanning and punching, the cheques are segregated for the
aforesaid banks and deposited. The amount is credited to the client’s
trading a/c the same evening for the above-mentioned banks. In case of
other banks, the entire procedure takes a span of 3 days.
Courier Services: The courier services aiding the process of Franking etc
are as follows:
• Skylark
• Over Nite
• Blue Dart
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sends a mail, containing the details of the client such as his Id, amount to
be withdrawn etc to the back office, where the request is taken up. This
request is then put by the back office personnel on the Webex software.
Then withdrawal cheque is drawn in the name of the client. Finally,
amount is transferred to client’s a/c. The entire procedure takes 2 days
time.
DEMATERIALIZATION OF SHARES
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FAILURE REPORTING SYSTEM
Suggestions:
• The time lag between giving in the kits for registration and opening
the account should be reduced to ensure speedy and efficient service.
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cost-effective manner. The major reasons for business failure are poor
marketing, lack of sales ability and lack of momentum in the sales
department. In almost every troubled company I have consulted for,
ineffective marketing—leading to poor sales—has been the major
problem or cause of slipping revenues and financial problems.
1. The product: Exactly what product or service you are going to sell to
this market? Define it in terms of what it does for your customer. How
does it help your customer to achieve, avoid or preserve something?
You must be clear about the benefit you offer and how the customer's
life or work will be improved if he or she buys what you sell.
Depository Services
Commodities
Insurance
Mutual Funds
IPO’s
Loans
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2. The price: Exactly how much are you going to charge for your
product or service, and on what basis? How are you going to price it to
sell at retail? How are you going to sell it at wholesale? How are you
going to charge for volume discounts? Is your price correct based on your
costs and the prices of your competitors?
• No custodial charge
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COMPARISON CHART
Account
Rs. 750 Rs. 500 Rs. 700
Opening Charges
Deliver
Intraday Delivery Intraday Delivery Intraday
Brokerage (%) y
Exposure on
NIL 4 times 4 times 4 times 4 times 8 times
Cash
Annual NIL
Maintenance Rs 300 Rs. 260
Charges (For POA)
Trading with
other Demat N.A. N.A. Possible
Account
Net Banking
ICICI Bank Kotak/HDFC/CITI
facility
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Off-line
Tradi N.A. N.A. Through Phone
ng
3. The place: Where are you going to sell this product at this price? Are
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services, sell them at different prices, offer them in different places or
promote them differently.
You can change any one of these elements and then test to
determine whether this change improves sales or profitability. Sometimes
you may have to change several factors at once to achieve a quantum leap
upward in sales results. But in any case, your marketing mix should be a
dynamic combination of elements that is always changing.
Apart from the aforesaid means there are self-generated leads by the
managers through
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• Word of mouth
• Cold calling
• References
The duly filled up kit is then forwarded to the back office for data
entry and other formalities.
Of the a/c. every individual client has a RM who assists him in his
dealings with the Stock Market.
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• Entertaining requests of clients pertaining to ledgers, a/c balances,
receipts etc.
Indiabulls in this case has done very well; the process is simple and
easy
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• Customer Satisfaction Survey
The results of these reviews are used to update the systems and
procedures, thus institutionalizing continual improvement processes.
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intervals to the concerned branch /zonal in-charge for review and
necessary corrective & preventive action.
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CHAPTER 6 -INTRODUCTION TO PUBLIC EQUITY MARKET
However, public equity capital has some costs too. These include
e. Under-pricing
• Typically, IPO prices are below the level that they reach on the
market a few days or weeks later, when more public information is
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available (under pricing). However the extent of under-pricing will
narrow with several companies coming up for listing.
Governments:
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• CHAPTER 9 –COMPARITIVE ANALYSIS
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TYPES OF MUTUAL FUND SCHEME
Mutual fund schemes may be classified on the basis of its structure and its
investment objective.
BY STRUCTURE
1 Open-end Funds
An open-end fund is one that is available for subscription all through the
year. These do not have a fixed maturity. Investors can conveniently buy and
sell units at Net Asset Value ("NAV") related prices. The key feature of
open-end schemes is liquidity.
2. Closed-end Funds
A closed-end fund has a stipulated maturity period which generally ranging
from 3 to 15 years. The fund is open for subscription only during a specified
period. Investors can invest in the scheme at the time of the initial public
issue and thereafter they can buy or sell the units of the scheme on the stock
exchanges where they are listed. In order to provide an exit route to the
investors, some close-ended funds give an option of selling back the units to
the Mutual Fund through periodic repurchase at NAV related prices. SEBI
Regulations stipulate that at least one of the two exit routes is provided to
the investor.
3. Interval Funds
Interval funds combine the features of open-ended and close-ended schemes.
They are open for sale or redemption during pre-determined intervals at
NAV related prices.
BY INVESTMENT OBJECTIVE
1. Growth Funds
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The aim of growth funds is to provide capital appreciation over the medium
to long term. Such schemes normally invest a majority of their corpus in
equities. It has been proved that returns from stocks, have outperformed
most other kind of investments held over the long term. Growth schemes are
ideal for investors having a long-term outlook seeking growth over a period
of time.
2. Income Funds
The aim of income funds is to provide regular and steady income to
investors. Such schemes generally invest in fixed income securities such as
bonds, corporate debentures and Government securities. Income Funds are
ideal for capital stability and regular income.
3. Balanced Funds
The aim of balanced funds is to provide both growth and regular income.
Such schemes periodically distribute a part of their earning and invest both
in equities and fixed income securities in the proportion indicated in their
offer documents. In a rising stock market, the NAV of these schemes may
not normally keep pace, or fall equally when the market falls. These are
ideal for investors looking for a combination of income and moderate
growth.
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for Corporate and individual investors as a means to park their surplus funds
for short periods.
OTHER SCHEMES
These schemes offer tax rebates to the investors under specific provisions of
the Indian Income Tax laws as the Government offers tax incentives for
investment in specified avenues. Investments made in Equity Linked
Savings Schemes (ELSS) and Pension Schemes are allowed as deduction u/s
88 of the Income Tax Act, 1961. The Act also provides opportunities to
investors to save capital gains u/s 54EA and 54EB by investing in Mutual
Funds.
2. Special Schemes
• Index Schemes
• Sectoral Schemes
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HOW TO INVEST IN MUTUAL FUND
The important thing is to choose the right mutual fund scheme, which suits
your requirements. The offer document of the scheme tells you its objectives
and provides supplementary details like the track record of other schemes
managed by the same Fund Manager. Some factors to evaluate before
choosing a particular Mutual Fund are the track record of the performance of
the fund over the last few years in relation to the appropriate yardstick and
similar funds in the same category. Other factors could be the portfolio
allocation, the dividend yield and the degree of transparency as reflected in
the frequency and quality of their communications.
Investing in just one Mutual Fund scheme may not meet all your investment
needs. You may consider investing in a combination of schemes to achieve
your specific goals.
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Step four - Invest regularly
The best approach is to invest a fixed amount at specific intervals, say every
month. By investing a fixed sum each month, you buy fewer units when the
price is higher and more units when the price is low, thus bringing down
your average cost per unit. This is called rupee cost averaging and do
investors all over the world follow a disciplined investment strategy. You
can also avail the systematic investment plan facility offered by many open-
end funds.
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balanced in this way, the value of the overall portfolio should
gradually increase over time, even if some securities lose value.
• Professional Management: Most mutual funds pay topflight
professionals to manage their investments. These managers decide
what securities the fund will buy and sell.
• Liquidity: It's easy to get your money out of a mutual fund. Write a
check, make a call, and you've got the cash.
• Low cost: Mutual fund expenses are often no more than 1.5 percent of
your investment. Expenses for Index Funds are less than that, because
index funds are not actively managed. Instead, they automatically buy
stock in companies that are listed on a specific index
• Transparency
• Flexibility
• Choice of schemes
• Tax benefits
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Drawbacks of Mutual Funds
• Taxes: During a typical year, most actively managed mutual funds sell
anywhere from 20 to 70 percent of the securities in their portfolios. If
your fund makes a profit on its sales, you will pay taxes on the income
you receive, even if you reinvest the money you made.
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SHARE MARKET
What is share?
Share or stock is a document issued by a company, which entitles its holder
to be one of the owners of the company. A share is issued by a company or
can be purchased from the stock market.
What is share market?
A market where dealing of securities is done is known as share market.
There are basically two types of share market in India:
1. Bombay Stock Exchange (BSE)
2. National Stock Exchange (NSE)
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DIFFERENCE BETWEEN PRIMARY AND SECONDARY MARKETS
In the primary market securities are issued to the public and the proceeds go
to the issuing company. Secondary market is a term used for stock
exchanges, where stocks are bought and sold after they are issued to the
public.
PRIMARY MARKET
Individuals
apply to get
shares of the
company
Company
IPO
Company Owners
Companies allocate shares to individuals and those who get
the shares become part owners of the company.
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SECONDARY MARKET
Stock Broker
Company
Exchange Individual
Investors
Companies get themselves listed on popular stock exchanges like BSE and
NSE
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DYNAMICS OF THE SHARE MARKET
Similar process happens for the transfer of shares from the seller’s end.
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MULTI CHANNEL ACCESS TO THE STOCK MARKET
Relationship Manager
Live chat
Call centre
SMS
Website Email
CUSTOMER SUPPORT
Multi Channel
Investment Option
Online Trading
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TERMINOLOGY USED IN SHARE MARKET
1. Stock Broker / Sub – Broker: - People like you and me cannot just go to a
stock exchange and buy and sell shares. Only the members of the stock
exchange can. These members are called stockbrokers and they buy and
sell shares on our behalf. So, if you want to start investing in shares, you
can do it only through a broker. Every stockbroker has to be registered
with the Securities and Exchange Board of India, which is the stock
market regulator. You can either choose a broker (who is directly
registered with SEBI) or a sub-broker (people licensed by brokers to
work under them).
2. Demat account: - Gone are the days when shares were held as physical
certificates. Today, they are held in an electronic form in demat accounts.
Demat refers to a dematerialized account. Let's say your portfolio of
shares looks like this: 40 shares of Infosys, 25 of Wipro, 45 of HLL and
100 of ACC. They will show in your demat account. You don't have to
possess any physical certificates showing you own these shares. They are
all held electronically in your account. Periodically, you will get a demat
statement telling you what shares you have in your demat account.
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The depository has agents who are called Depository Participants. In India,
there are over a hundred DPs. Think of it like a bank. The head office, where all
the technology rests and the details of all the accounts are held, is like the
depository. The DPs are like the branches of banks that cater to individuals.
A broker, however, is not similar to a DP. A broker is a member of the stock
exchange and he buys and sells shares for his clients and for himself. A DP, on
the other hand, gives you an account where you can hold those shares.
To get a list of the registered DPs, visit the NSDL and CDSL Web sites.
3. Get a PAN: - The taxman demands that you get yourself a Permanent
Account Number. This is a unique 10-digit alphanumeric number
(AABPS1205E, for example) that identifies and tracks an individual in the
taxman's database. Almost every money transaction demands the use of a PAN.
Whenever a trader / investor buys or sells a security and on the same day before
the market closes, he sells or buys that particular security (in the same quantity),
the transaction is called as square off transaction or a trading transaction. Shares
lying in the T, TS and T are not square off the same day.
5. Delivery Transaction:-
Delivery transactions are those transactions which are not squared off at the day
end, and the investor/trader is ready to take / give the delivery of the security.
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6. Settlement Period :-
Currently the settlement period is T+2. Settlement period i.e. T+2 means one
has to give the delivery of the shares sold within 2 days of the date of the
transaction. In case of purchase transaction, one will get the delivery within 2
days of the date of transaction.
7. Shares Category:-
The stock exchange has divided the shares into the categories according to the
performance of the company.
Auction:-
In case of failure of delivery of shares for sale transaction within the stipulated
time period, the BSE auction those shares as per the rules and regulations.
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ROLE OF STOCK EXCHANGE
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RESULTS AND FINDINGS
The feedback of 300 customers has been taken and the findings along with
its analysis are as follows: -
• I asked from the customers about the securities in which they invest there
savings.
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59 EQUITY
60
50
Percentage
MUTUAL FUND
40
30 25
FIXED DEPOSITS
20
9 7
10 INSURANCE
0
Sector
72
Which sector is more secure.
5%
40%
55%
73
Which sector gives more return.
23%
77%
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• Investment decisions of the customers are influenced on the basis of
following grounds.
40 36
Oneself
35
30
Brokers
24
Percentage
25
20
20 Eco. Policies
15
8 Market Ramous
10
5 Friends/Relatives
0
Investment Decisions
75
• Are you satisfied with your current investment?
42%
58%
Yes No
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• What are the factors which you considered before investing in
particular company?
40 36 Financial
35 Positions
30 Current market
24 Positions
Percentage
25
20 Goodwill
20
15 12 Future Prospects
10 8
5 Any other
0
factors
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CONCLUSION
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ANNEXURE
i. Mutual funds
ii. Govt. of India Securities
iii. Share market
iv. Fixed Deposits
v. Any other.
Q2. Which sector is more secure?
i. Mutual Funds
ii. Share market
iii. Other
Q3. Which sectors give more return?
i. Share market
ii. Mutual Funds
Q4. Are you satisfied with your current investment?
i. Yes
ii. No
Q5. Your investment decisions are influenced by
i. Oneself
ii. Broker
iii. Eco.Policies
iv. Market Research
v. Friends/Relatives
vi. An other
Q6. Are you satisfied with company services?
i. Yes ii. No
Q7. What are the factors which you considered before investing in a
particular company?
i. Financial Position
ii. Current Market Position
iii. Goodwill
iv. Future Prospects
v. Any others.
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PERSONAL DETAILS:
Name Mr./Mrs./Miss__________________________
Address____________________________________
___________________________________________
Email ______________________________________
Occupation
1. _________________________________
2. _________________________________
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REFRENCES
WEBSITE USED:
1) http:/icf.som.yale.edu/confidence.index
2) www.rbi.org.in
3) www.sebi.org.in
4) www.google.com
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