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“A STUDY ON THE EFFECTIVENESS OF CLIENT ACTIVATION AND

ITS FINANCIAL IMPACT AT EDELWEISS BROKING LIMITED”


PROJECT REPORT
Submitted to
UNIVERSITY OF MADRAS

In partial fulfillment of the requirements for the award of the degree of


MASTER OF BUSINESS ADMINISTRATION
Submitted by
R.NANGAI
Reg.No. MA90780
Under the guidance of
Mr.RAJALINGA PANDIAN M.Tech, MBA.

DEPARTMENT OF MANAGEMENT STUDIES


VEL SRI RANGA SANKU COLLEGE (ARTS & SCIENCE)
(Approved by AICTE, New Delhi & Affiliated to University of Madras)
Avadi, Chennai – 600 062.
April 2010
CERTIFICATE
This is to certify that the project work titled “A STUDY ON THE
EFFECTIVENESS OF CLIENT ACTIVATION AND ITS FINANCIAL
IMPACT AT EDELWEISS BROKING LIMITED” is a Bonafide Work done
by R.NANGAI (Reg.No. MA90780) under the guidance of Mr. RAJALINGA
PANDIAN M.Tech, M.B.A in partial fulfillment of Requirement of the degree
of Master of Business Administration of the University of Madras during the
academic year 2010-2011under my support and guidance.

Internal guide Head of the department

Principal

Data of viva-voce examination

Internal Examiner External Examiner


DECLARATION

I R.NANGAI, hereby declare that the project report, entitled “ A STUDY ON

THE EFFECTIVENESS OF CLIENT ACTIVATION AND ITS


FINANCIAL IMPACT AT EDELWEISS BROKING LIMITED” submitted
to the VEL SRI RANGA SANKU COLLEGE, AVADI in partial fulfillment of

the requirement for the award of the degree of MASTER OF BUSINESS

ADMINISTRATION is a record of original work done by me under the guidance


of Mr. RAJALINGA PANDIAN,M.Tech, M.B.A and it has not formed the
basis for the award of any degree follow.

DATE: Signature of the student

PLACE:
ACKNOWLEDGEMENT

My sincere thanks to our Honorable founder and Chairman Thiru.


Dr. R. RANGARAJAN B.E (EC.MECH) M.S., (Auto) for providing me a
golden opportunity to study the MBA course and for worthy suggestions, advice
and encouragement, throughout the course.

My sincere thanks to our Principal, Dr. ATHIRAJA SRINIVASALU,


M.COM, M.Phil., Ph.D. and HOD Mr.SUKUMAR, M.B.A, Ph.D., who
rendered invaluable help during the completion of project.

Most importantly, I acknowledge the contribution of my internal guide


Mr. RAJALINGA PANDIAN, M.Tech, M.B.A., faculty Guide, for his
continuous guidance for the successful completion of the project work.

It is the most pleasant to record my gratitude to


Mr. DINESH (Area Manager) and Mr. VIKAS GUPTA AND Mr.PRAVIN
KUMAR (Relationship Manager) who allowed to do the project work and also
for his continuous support and encouragement and his guidance.

I also like to extend my thanks to my beloved family, all my friends who


helped me in computing this project work successfully.
ABSTRACT
Edelweiss Capital Limited is a Mumbai based company which started

its operation in the year 1995. The mission statement of the company is “Ideas

create, values protect”. It provides services like investment banking,

institutional equities, private client broking, asset management, wealth

management, investment advisory services, treasury, insurance broking,

wholesale financing, and mutual funds. The major clients are corporations,

institutional investors, and high net-worth individuals.

This project is a study on the Effectiveness of client activation and its

financial implication at Edelweiss helps to analyze the revenue generated by

client activation and also to understand why clients prefer Edelweiss rather than

the other broking company. The project also deals with Customer relationship

management (existing, prospective and dormant clients).

As an intern, I talked to the clients 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, for this

project. The strategy followed by Edelweiss is unique and acts as a (USP)

unique selling proposition in favour of the company. The strength of Edelweiss

is its market image and well equipped research team.


TABLE OF CONTENTS

CHAPTER NO. CONTENTS PAGE NO


I 1.1. Introduction 1
1.2 Objective of the Study 2
1.3 Scope of the study 3
1.4 Limitation of the study 4
II 2.1 Industry Profile 5
2.2 Company Profile 14
2.3 Organization Chart 38
III Review of Literature 39
IV Research Methodology 44
V Data Analysis and Interpretation 47
VI Findings 99
VII Suggestions 100
Conclusion 101
Bibliography 102
Appendix 103

LIST OF TABLES

TABLE NO. PARTICULARS PAGE NO


1. REVENUE OF CLIENTS
ACTIVATED FROM DEC 1-FEB1 47-52
2. REVENUE GENERATED 55
3. CLASSIFICATION BASED ON THE 60
CLIENTS AGE
4. CLASSIFICATION BASED ON THE 62
CLIENTS GENDER
5. CLASSIFICATION BASED ON THE 64
OPENING OF DEMAT ACCOUNT
6. CLASSIFICATION BASED ON THE 66
CLIENTS INTERESTED IN
TRADING
7 CLASSIFICATION BASED ON THE 68
CLIENTS REMAINING INACTIVE
8 CLASSIFICATION BASED ON THE 70
CLIENTS GET ACTIVATED
9. CLASSIFICATION BASED ON THE 72
KIND OF TRADING OPTED
10. CLASSIFICATION BASED ON THE 74
KIND OF INVESMENT
11. CLASSIFICATION BASED ON THE 76
REQUIREMENT OF TRAINING
12.. CLASSIFICATION BASED ON THE 78
CLIENTS STOCK HOLDINGS IN
OTHER COMPANY
13 CLASSIFICATION BASED ON THE 80
SUBSCRIPTION PLAN ADOPTED
14. CLASSIFICATION BASED ON THE 82
SATISFACTION LEVEL OF THE
CLIENT
15. REVENUE GENERATED 84
16. COMPARITIVE BALANCE SHEET 87-90
17. COMPARITIVE PROFIT AND LOSS 91-94
ACCOUNT
LIST OF CHARTS

CHARTNO. PARTICULARS PAGE NO


1. REVENUE ON DEC 53
2. REVENUE ON FEB 54
3. CLASSIFICATION BASED ON THE 61
CLIENTS AGE
4. CLASSIFICATION BASED ON THE 63
CLIENTS GENDER
5. CLASSIFICATION BASED ON THE 65
OPENING OF DEMAT ACCOUNT
6. CLASSIFICATION BASED ON THE 67
CLIENTS INTERESTED IN
TRADING
7 CLASSIFICATION BASED ON THE 69
CLIENTS REMAINING INACTIVE
8 CLASSIFICATION BASED ON THE 71
CLIENTS GET ACTIVATED
9. CLASSIFICATION BASED ON THE 73
KIND OF TRADING OPTED
10. CLASSIFICATION BASED ON THE 75
KIND OF INVESMENT
11. CLASSIFICATION BASED ON THE 77
REQUIREMENT OF TRAINING
12.. CLASSIFICATION BASED ON THE 79
CLIENTS STOCK HOLDINGS IN
OTHER COMPANY
13 CLASSIFICATION BASED ON THE 81
SUBSCRIPTION PLAN ADOPTED
14. CLASSIFICATION BASED ON THE 83
SATISFACTION LEVEL OF THE
CLIENT
CHAPTER – I
INTRODUCTION

INTRODUCTION
A Share market/stock markets is an open market for fiscal operations
such as trading of a firm's share and derivatives at a fixed cost. These securities
are further listed on a stock exchange. These listed securities are traded through
the share broking company. It is a place, where stocks, bonds, and/or derivatives
in listed companies are bought and sold.

The Company commenced investment banking activities &


registered with SEBI as a Category I Merchant Banker' [as defined under the
Securities and Exchange Board of India [Merchant Bankers Rules, 1992s] and
thereafter as a 'Portfolio Manager' [as defined under the Securities & Exchange
Board of India [Portfolio Manager’s] Rules, 1993s] & as an 'underwriter' under
the Securities & Exchange Board of India [Underwritings] Regulations, 1993.

Edelweiss broking limited performs client activation through which


the revenue of the company gets increased. Investment Banking, Institutional
investment, Asset management, Wealth management, Private client brokerage,
Insurance brokerage, wholesale financing are services rendered by Edelweiss
broking limited
OBJECTIVES

OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE
To study the effectiveness of client activation and its financial
performance.

SECONDARY OBJECTIVES
1. To know the trend of the financial performance of the Edelweiss

2. To evaluate effectiveness of client activation


3. To measure the increase in the revenue of the Edelweiss due to client
activation.
SCOPE

SCOPE OF THE STUDY

• The Project aims at evaluating the revenue generated through client


activation, thereby it helps the company in increasing the effectiveness of
client activation.
• The study also focuses on the benefits and drawbacks of the company
which helps in strengthening up the stronger areas and to take corrective
action to overcome the drawbacks which helps in increasing the turnover
of the company to the peak.
• This project in share broking company helps me in understanding the
working and the functioning of the share market which helps to
effectively increase the revenue of any share broking company if in
future if I get a chance of doing it.
• This Study also focus on educating the client about Online Trading.
LIMITATION

LIMITATIONS OF THE STUDY


• The project is not conducted all over India it is limited to Chennai.
• Limited to 2 branch in Chennai.
• The Survey was Conducted only through phone hence sometimes there
may would have been some misunderstanding in questions.
• As the data concerned with the share broking limited is highly confidential
it was very difficult for me to get all the data.
• The Time period for the project was only for 2 months which is a major
limitation.
CHAPTER – II
INDUSTRY PROFILE

INDUSTRY PROFILE
 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”
 It was in 1875 that the Indian Share Market first started

functioning. The first share trading association in India was known


as the Native Share and Stock Broker's Association. Though many
other exchanges exist, BSE and the National Stock Exchange of
India account for most of the trading in shares in India .Thus the
Main components of Indian Share Market are

A) Bombay Stock Exchange (BSE):


The Bombay Stock Exchange (BSE) (Hindi: Bombay Śhare
Bāzaār) is the oldest stock exchange in Asia and largest number of listed
companies in the world, with 4990 listed as of August 2010.It is located at Dalal
Street, Mumbai, India. On Aug, 2010, the equity market capitalization of the
companies listed on the BSE was US$1.39 trillion, making it the 4th largest
stock exchange in Asia and the 11th largest in the world.With over 4,990 Indian
companies listed & over 7700 scrips on the stock exchange, it has a significant
trading volume. The BSE SENSEX (SENSitive indEX), also called the "BSE
30", is a widely used market index in India and Asia. Bombay Stock Exchange is
known to be the oldest stock exchange in the entire Asian region. It started
functioning in 1875 with the name 'The Native Share and Stock Broker's
Association'. Under the Securities Contracts (Regulation) Act, 1956, the
association got its recognition as a stock exchange in 1956. Till the decade of
eighties, there was no measure or scale that could precisely measure the various
ups and downs in the Indian stock market. BSE, in 1986, came out with a Stock
Index-SENSEX- that subsequently became the barometer of the Indian stock
market.. It comprised 100 stocks listed at five major stock exchanges in India -
Mumbai, Calcutta, Delhi, Ahmedabad and Madras. When it started, it was just
an association of persons but with the recognition it got transferred to a
corporate and demutualised entity. Now it does

• Trading items in Bombay Stock Exchange -


• Equity or Shares
• Derivatives (Futures and Options)
• Debt I Debt Instruments

The index calculation is based on the 'Free-float Market Capitalization'


methodology. Leading bourses like the Dow-Jones also follow this
methodology.

B)NationalStockExchange(NSE):
The National Stock Exchange (NSE) is a stock exchange
located at Mumbai, India. It is the largest stock exchange in India in terms of
daily turnover and number of trades, for both equities and derivative
trading.NSE has a market capitalization of around 6,393,418 crore
(US$1,438.52 billion) in August 2010 .National Stock Exchange (NSE) is
considered to be the leader in the stock exchange scenario in terms of the total
volume traded. The National Stock Exchange received the recognition of a stock
exchange in July 1993 under Securities Contracts (Regulation) Act, 1956. NSE
is the third largest Stock Exchange in the world in terms of the number of trades
in equities. It is the second fastest growing stock exchange in the world with a
recorded growth of 16.6% The products that are traded in the National Stock
Exchange are:-

• Equity or Share
• Futures (both index and stock)
• Options (Call and Put)
• Wholesale Debt Market
• Retail Debt Market
• Currency futures
• MUTUAL FUND
• STOCKS LENDING & BORROWING

NSE has a fully automated screen based trading system which is known as
the NEAT system. The transactions are carried on with speed, efficiency,
and are all transparent. The risk management system of the National Stock
Exchange is world class and can be considered as the benchmark for other
bourses. The leading index of NSE is known as Nifty 50 or just Nifty. It
comprises of 50 diversified benchmark Indian company scrips and is
constructed on the basis of weighted average market capitalization
method.

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.
 Setting up of SEBI: Regulatory Authority of Indian Share
Market:
The regulatory body for the Indian capital markets was the
SEBI (Securities and Exchange Board of India). The capital markets in
India experienced turbulence after which the SEBI came into
prominence. SEBI or Securities and Exchange Board of India is the
market watchdog and has the responsibility of protecting the investors'
interests, develops regulatory norms and helps in the development of the
securities market in India. The Securities and Exchange Board of India
(frequently abbreviated SEBI) is the regulator for the securities market in
India. It was formed officially by the Government of India in 1992 with
SEBI Act 1992 being passed by the Indian Parliament. Chaired by C B
Bhave, SEBI is headquartered in the popular business district of Bandra-
Kurla complex in Mumbai, and has Northern, Eastern, Southern and
Western regional offices in New Delhi, Kolkata, Chennai and
Ahmedabad. The regulatory body for the Indian capital markets was the
SEBI (Securities and Exchange Board of India). The capital markets in
India experienced turbulence after which the SEBI came into
prominence.
•Functions and responsibilities of SEBI:

 SEBI has to be responsive to the needs of three groups, which


constitute the market:

• The issuers of securities

• The investors
• The market intermediaries.

 SEBI has three functions rolled into one body quasi-legislative,


quasi-judicial and quasi-executive. It drafts regulations in its
legislative capacity, it conducts investigation and enforcement
action in its executive function and it passes rulings and orders in
its judicial capacity

Why to invest in Indian share market?

• An investor does not require a lot of money to start investing in India


share market unlike buying property and paying off a monthly
mortgage.
• Time of trading involved spans from small to big. One can trade for a
short period of time or even a lengthy span.
• It helps you to see 'fast' cash if the market is in robust mood and
helps in fast liquidation.

Type of Indian Markets:

Basically there are two types of markets.

1. Primary market

2. Secondary market

 Primary Market: A primary market is a place where companies,


government and other corporate bodies sell new shares and other
financial products which are also called as financial products. In
primary market trading is not allowed. Like any newly listed
company sells IPO (initial public offer) then it happens in primary
market or whenever any already exiting company goes public then
at that time it issues an IPO in primary market.
 Secondary market: A market place where actual share trading
(buying and selling) takes place is called secondary market.
Majority of share trading in India happens in top two exchanges
called NSE and BSE.

Types of Trading and Investments in Indian Share Market:

 Basically trading and investing are two different methods of earning


money in share market.

Types of Trading:

 Trading is done on stock price for a day or for couple of days.


 Trader is not worried about company performance; he is only
worried to book profits whenever the share price rises.
 Basically there are two types of trading methods

1. Online Trading

2. Day trading and

3. Swing trading.

4. Position Trading

1. Online Trading:
• Online trading is simply a term that refers to the medium used to enter and
execute trades.
• Online traders, which can include long term investors, as well as day,
swing and position traders, use either an Internet connection or a direct
access online trading platform to access and execute trades with Web
based brokers.

2. Day trading:

• Buying and selling of shares on daily basis is called day trading.


• Day trader don’t carry stocks to next day, he square off the positions
(shares) on same day.
• Mainly there are two types of day traders.

i. Scalp trading

ii. Momentum trading

i) Scalp Trading: A scalp trader buys and sells shares at very low profits
(margins) and does multiple trades on daily basis.
ii) ii) Momentum Trading: A momentum trader identifies the trend and buys
shares at bottom and sells at the high of the trend. He may do one or
two trades or at the most three trades in a day. He may not do as
multiple trades as scalp trader on daily basis.

3. Swing Trader:
• A swing trader is just like a day trader but swing trade may hold the
shares (positions) for couple of days like 4 to 5 days, while day trader
doesn’t hold shares even for next day.
• Swing trader basically trades based on news, breakout and breakdown
in technical charts, based on volume surge, based on up and down trade
etc.

4. Position Trading:

• Position trading is similar to swing trading, but with a longer time


horizon. Position traders hold stocks for a time period anywhere
from one day to several weeks or months. These traders seek to
identify stocks where the technical trends suggest a possible large
movement in price is likely to occur, but which may not be fully
played out for several weeks or months.

Types of Investment:

 Basically there are three types of investment methods.

i. Short term investment

ii. Midterm investment

iii. Long term investment


i) Short term investment:

• Investment done from couple of weeks to couple of months is


called short term investment.
• It is done based on breaking news, or based on charts of
technical analysis.

ii) Medium term Investment:

• Investments done from couple of months to couple of years is


called mid tem investment.
• It is done based on analysis of quarterly financial results or
based on fundamental analysis.

iii) Long term investment:

• Investment done from one year to couple of years like 3


years, 5 years, 10 years etc
• Long term investment is basically done after thoroughly
analyzing the fundamentals of the company and its future
growth prospects.
• And also the wise investor invests in companies whose
current share prices are undervalued but its future growth is
huge. Generally long term investor is worry free from daily
markets up and down and share prices volatility
COMPANY PROFILE
COMPANY PROFILE
EDELWEISS GROUP started its journey in Mumbai in the year
1995, by two IIM graduates, Mr. Rashesh Shah and Mr. Venkat
Ramaswami.
“Ideas create, values protect” is the slogan and depict the mission
statement of Edelweiss group.“Our Reputation and Image is more
important than any financial reward. Reputation is hard to build and even
harder to rebuild. Reputation will be impacted by our ability to think for
our clients, maintain confidentiality and by our adherence to our value
system.”

The Logo: Edelweiss, a rare flower found in Switzerland. A graphic flower that
represents ideas! Around it, the protective arms of the letter ‘E’:
 Edelweiss believes ideas create wealth, but values protect it.

 It is the practice of this core thought that has led to Edelweiss

becoming one of the leading financial services company in


India.

KEY PEOPLE: Chairman & Founder: Mr. Rashesh Shah (IIM Graduate
1995 batch) and Venkat Ramaswami.
Designated director: Naresh Kothari.
Directors: Rashesh Shah, Venkat Ramaswami and Hiralal Chopra
Achievements’ and Awards of Edelweiss:
 Edelweiss was adjudged winner in the Best Merchant Banker category
in the Outlook Money NDTV Profit Awards 2008.
 Ranked among the top ten players in Annual Bloomberg and Annual
Thomson-Reuters

History of Edelweiss Broking Ltd.:

• Edelweiss was incorporated on November 21, 1995 as a public limited


company.
• Our Company received its certificate for commencement of business
on January 16, 1996.
• The Company commenced investment banking activities & registered
with SEBI as a 'Category I Merchant Banker' [as defined under the
Securities and Exchange Board of India [Merchant Bankers Rules,
1992s] and thereafter as a 'Portfolio Manager' [as defined under the
Securities & Exchange Board of India [Portfolio Manager’s] Rules,
1993s] & as an 'underwriter' under the Securities & Exchange Board
of India [Underwritings] Regulations, 1993.
• They Entered the business of securities broking in the year 2002 by
acquisition of Rooshnil Securities Private limited which later changed
to Edelweiss Securities Private Limited & is presently known as
Edelweiss Securities Limited.
• The year 2004 witnessed the foray of Company into the businesses of
insurance advisory as well as commodities broking and trading. The
business of insurance advisory is carried through the subsidiary,
Edelweiss Insurance Brokers Limited.
• And in 2005, Edelweiss Broking Limited a subsidiary of Edelweiss
Capital Ltd started the business of commodities broking & trading.

In short

• 2000 Acquisition of Cross border Investments Private Limited


• 2001 F and O license obtained in the year 2001
• 2002 NBFC registration of Cross border Investments Private Limited
Acquisition of Rooshnil Securities Private Limited
• 2004 Commencement of Commodity Broking
• 2005 Commencement of Edelweiss Broking ltd

Board of Directors
Name Designation
Mr. Sanjay Santhanam Director
Mr. Narendra Jhaveri Director
Mr. Ramanan Raghavendran Director
Mr. Venkat Ramaswamy Director
Mr. Rashesh Shah Chairman & Managing director
Mr. Sunil Wadhwani Director
Mr. P N Venkatachalam Director
Mr. Kunnasagaran Chinniah Director

 Aim - building long term relationships with the clients and equipping the
clients about the market knowledge so that they can address the day by
day fast growing opportunities
 Edelweiss is a powerhouse of financial innovation –illuminating both the

solutions and the perils. Edelweiss was previously into niche marketing
only, dealing with the High Net Worth Individuals (HNWI) clients only.
Looking at the current market scenario, company is targeting the Retail
Segment with its new Online Trading Portal.
 The company sights the need for entering into the retail segment by seeing
the saturation of the niche market and the exploration of the areas which
was left untouched by the organization. The idea behind this is to
Reposition the company from niche marketer to mass marketer.
 The strength of Edelweiss is its market image and well equipped research

team, which it uses as a potential selling tool.


 The product or the service that the company has come up with is the

Prepaid Broking Plan for both the retail as well as HNI customers.
Basically every broking firm offers dematerialization and the trading
account with some charges associated to it and the main source of income
is the brokerage that is collected on every transaction made by the
customer, which is a continues source of income.
 USP- The single minded focus on thought leadership and relentless

pursuit of the ‘new’ and ‘different’ is it in products, services or people,


model of employee ownership
Their Approach in Market:
 Client Focus:

• Edelweiss is driven by the emphasis we place on building


long-term relationships with our clients. We work closely
with our clients to equip them with the ability to address
large, fast-growing market opportunities. Our emphasis on
long-term relationships also means that we have a significant
ongoing involvement with almost all of the clients that we
work with.

 Execution Orientation:

• We focus obsessively on delivering high quality execution


through our experienced team of professionals. Each team is
led by senior personnel and is highly research and ideas
driven. We place strong emphasis on confidentiality and
integrity in a sensitive business environment.

 Culture:

• Edelweiss fosters a culture that is entrepreneurial and results-


driven and that emphasizes teamwork and intellectual rigour.
Our team is encouraged to display higher levels of initiative,
drive, and hunger for learning and taking on additional
responsibility.

 Professional Integrity:

• We place a strong emphasis on confidentiality, honesty and


integrity in our business dealings. We expect our people to
maintain high ethical standards, both in their professional and
personal lives. We strive to be fair in all our dealings. We
respect our competitors.

 Research Driven:

• All our businesses are built on a research and analytics


foundation. Our understanding of underlying market trends
and strong analytical expertise has resulted in a demonstrated
ability to identify emerging trends and themes early. We seek
to provide the highest quality research and investment
opinions to our clients.

WHAT DOES EDELWEISS BROKING LTD. OFFERS

1. Personalized Service

• Company believes in providing personalized service and


individual attention to each client to ensure that we
understand their goals and help them achieve it

2. Professional Advice

• Company offers expert advice on equity and debt portfolios


with an objective to provide consistent long-term return
while taking calculated market risks. Companies approach
helps clients build a proper mix of products, and not
concentrate on just one individual product. Hence, serving
long-term objectives in the best way.

3. Long-term Relationship

• Company believes that long-term vision is the only means to


steady wealth creation. However to achieve this one also
needs to take advantage of short-term market opportunities
while not losing sight of long-term objectives. Hence it
partners all its clients in realizing their long-term vision.
4. Access to Research Reports

• Company provides the clients with access to the expert


opinion of economists and analysts.

5. Transparency and Confidentiality

• Company’s clients receive regular portfolio statements from


relationship managers via email.

RECENT APPROACH:

 Edelweiss is a premium broking firm whose targets were only


HNWI clients. But seeing the opportunity in retail sector it has forayed
into it. The company is providing the same research facility to its retail
clients as it provided to its premium clients. It is offering an online
platform to the clients which will increase transparency and make
business hassle free for the clients. The company is making a shift from
ESL (Edelweiss Securities limited) to EBL (Edelweiss Broking Limited).

The benefits offered by the company to its clients


are:-
Online Platform
News alert through Mobile messages and e-mail
Dealer support
Portfolio Doctor (Turtle)
Toll Free Number (Helpline Services)

 Thus the company is customer focused and protects the wealth of


its customers through its innovative ideas. The company is repositioning
itself from a niche marketer to a mass marketer and is aiming at Brand
Repositioning.

GROWTH STRATEGY:

PRODUCTS AND SERVICES OFFERED BY EDELWEISS:

 Investment Banking

 Institutional investment
 Asset management
 Wealth management
 Private client brokerage
 Insurance brokerage
 Wholesale financing
1. Investment Banking:
 An Investment Bank is a financial institution that deals with

raising capital, trading in securities and managing corporate


mergers and acquisitions. Investment banks profit from
companies and governments by raising money through issuing
and selling securities in the capital markets (both equity, bond)
and insuring bonds (selling credit default swaps), as well as
providing advice on transactions such as mergers and
acquisitions.

 At Edelweiss Broking Ltd, Investment Banking business is

dedicated to providing corporations, entrepreneurs and investors,


the highest quality independent financial advice and transaction
execution.

 Its offering are

A. Private Equity Advisory


B. Structured Finance Advisory
C. Mergers and Acquisitions Advisory
D. Real Estate Advisory
E. Equity Capital Markets
F. Infrastructure Advisory
G. Debt Restructuring Advisory
A. Private Equity Advisory:
 They have been a leading Private Equity advisor for over a
decade and have developed a strong expertise across industries
which enable us to recognize emerging industry themes and
position transactions within the context. Our strength in Private
Equity advisory stems from:

• Long standing relationships with marquee PE funds - Access


to key decision makers at PE funds gives us an unparalleled
edge in optimal structuring and efficient closure of
transactions.

• High quality execution - An experienced team of


professionals ensures complete confidentiality, strong focus
on implementation and quick turnaround time.

• Focus on long term relationships - In addition to handholding


the client across the entire transaction process, we provide
continued support post-transaction and have the capability to
cater to investment banking needs of the client throughout his
business lifecycle.

B. Structured Finance Advisory:


 Over the years, they have built up significant expertise in
structuring appropriate financing solutions for client specific
situations and identifying and placing the transaction with
institutional investors. Our portfolio of solutions comprise the
following-

i. Promoters Funding
ii. Acquisition Financing

i. Promoter Funding: Promoter financing is mostly done to enable


promoters to raise their stake in the company. The financing is usually against
collateral of shares or other securities held by the promoter in any of the group
company. The transaction helps in unlocking the value of promoter shareholding
by raising additional funds. It can also be structured to refinance a loan raised
against the same shares by the client earlier.
ii. Acquisition Financing: There has been a significant increase in the
number of acquisitions by Indian companies, both domestic as well as overseas.
Acquisition financing plays a critical role in the success of inorganic growth
planned by the acquirer. Based on each client’s unique requirements, we have
advised on acquisition financing through appropriate stacked financing
structures which comprise foreign currency senior secured debt with recourse to
parent companies, rupee senior secured debt with recourse to parent companies,
equity investment by the promoters, non-recourse debt, guaranteed mezzanine
debt with equity upside.
C. Mergers and Acquisitions Advisory:
 Edelweiss M&A team provides insights into how companies
can grow and enhance their value. The M&A team is engaged
in turnkey transaction management and advises a diverse range
of clients in medium to large transactions.

 Our key strengths include independent advice, deep sector


knowledge backed by professionals with a range of training and
experience that spans across multiple cross-border deals and
our relationships with large corporate.
 Edelweiss advises companies in the entire transaction process –
this range from target identification to deal closure. They
provides both buy-side and sell-side advisory services as part of
our M&A advisory offering. Our services include identification
and short listing of target universe, strategic planning of an
acquisition and arranging finance for the transaction, if required

D. Real Estate Advisory:


 Ever since the easing up of FDI into real estate development in
India, Edelweiss has a dedicated team offering Real Estate
Advisory Solutions to property developers and investors
seeking to invest into the Indian Real Estate markets. Our
advisory solutions are primarily focused on capital raising and
cover the optimal financing mix, project valuation, investment
structuring and accomplishing capital raising at either the
enterprise level or the asset level.

 We manage Real Estate IPOs, QIPs, advise enterprise level


private equity financings, and enterprise level mezzanine
financing and structured debt. We have completed over $ 700
million in capital raising in the last 18 months across multiple
formats.

 Edelweiss’ key value proposition to our clients include an


excellent understanding and access to both public and private
capital markets combined with structuring capabilities and a
strong knowledge of underlying real estate markets in India
through our in-house research.

E. Equity Capital Markets:


 We are in the vanguard of equity capital markets having brought
to the market a large number of successful and path breaking
transactions. We advise leading Indian companies, banks,
institutions and businesses which are seeking to mobilize capital
from investors in India and overseas.

 Edelweiss has a record of several marquee foreign and domestic


issuances over the last 2 years. Within the practice, we provide
opportunities for clients to raise funds through the following –

• Initial Public Offering (IPOs)

• Follow-on Public Offerings( FPOs)

• Qualified Institutional Placements(QIP)

• Rights Issues

• Preferential Allotments

• Foreign Currency Convertible Bonds(FCCBs)

• Global Depository Receipts(GDRs)

 Besides, our Equity Capital Markets practice also caters to the entire
spectrum of capital market needs through other services such as managing
takeovers, delisting and buyback.
 They assist innovative and exciting companies in accessing the equity
capital market. We believe that our strength lies in identifying present and
future market leaders, working with them closely in understanding and
fine tuning their business model, and showcasing the investment
opportunity to the right set of investors.

F. Debt Restructuring Advisory:


• Businesses can get affected by more than just normal industry
cycles. With expansion in operations, businesses face
increasing challenges that are more complex in nature than a
simple domestic demand slowdown or operational
bottlenecks, particularly in the globalised environment. A
combination of adverse global and local factors can push
profitable businesses into a spiraling debt trap very rapidly.
While several companies are able to steer through these
adverse economic conditions, some companies get caught in a
financial quagmire leading to severe liquidity constraints. An
expert team with in-depth understanding of the debt
restructuring processes is required to help a company steer
through the strain.

 A successful restructuring process involves the following essential


elements

• Assessment of sustainable debt in the given circumstances

• Dealing with unsustainable debts innovatively


• Approaching lenders and other stakeholders with definitive
strategies

• Devising strategies and instruments for raising additional


funds for operations as well as for refinancing existing debt

 At Edelweiss we have a very competent team offering


comprehensive debt restructuring solutions, both under the formal
Corporate Debt Restructuring (CDR) mechanism as well as
negotiations with lender/consortium of lenders.

2. Institutional Investment:
 Institutional investors are organizations which pool large sums of

money and invest those sums in companies. They include banks,


insurance companies, retirement or pension funds, hedge funds and
mutual funds. Their role in the economy is to act as highly
specialized investors on behalf of others.

3. Asset Management or Investment management:


 Investment management is the professional management of various

securities (shares, bonds etc.) and assets (e.g., real estate), to meet
specified investment goals for the benefit of the investors. Investors
may be institutions (insurance companies, pension funds,
corporations etc.) or private investors (both directly via investment
contracts and more commonly via collective investment schemes e.g.
mutual funds or Exchange Traded Funds)

4. Wealth Management:
 At Edelweiss, Wealth Management is a Practice; it is a specialized
profession where our experts combine their efforts to meet the wealth
planning, investment, and financial management needs of
individuals, families, family offices, or corporates. More than just
Financial Services, Edelweiss Wealth Management takes one step
closer to you, by providing an "all-in-one approach”.

 Customized Financial Solutions: Advice on asset allocation and


thereby creating customized financial solutions for HNWIs, NRIs,
Trusts and Corporate's

 Wide range of Innovative Advisory services: they offer advisory


services on Structured Products, Portfolio Management, Mutual
Funds, Insurance, Derivative Strategies, Direct Equity, IPOs, Real
Estate Funds and Art Funds.

• Edelweiss Absolute Return Equity Fund:


The primary objective of the scheme will be to generate
absolute returns with low volatility over a longer tenure of time. The
scheme will invest in arbitrage opportunities, equity.
• Edelweiss Nifty Enhancer Fund:
The primary objective of the Fund is to
generate capital appreciation and income distribution by investing in a
portfolio that endeavors to outperform the S & P CNX Nifty Index.
• Edelweiss Diversified Growth Equity Top 100 Fund:

The primary objective of the Fund is to


generate long term capital growth from a diversified portfolio, investing
predominantly in equity and equity related securities.

• Edelweiss ELSS Fund:


The primary objective of the scheme is to
generate long-term capital appreciation with an option of periodic payouts
at the end of lock in periods

5. Private client brokerage:

The Private Client


Services Group (PCG) at
Edelweiss is focused on
providing products,
strategies and services to
High Net worth
Individuals and Corporate Clients. It has geographic reach through Branches,
Channel Partners & Investment Consultants in over 19 locations in India.
The PCG team has highly trained equity professionals, who act as clients
Equity Advisor. Its ESL Equity Advisor proactively helps you take informed
investment decisions and build a healthy portfolio.
6. Edelweiss Financing:
 Edelweiss Financing understands your needs and helps you meet
liquidity requirements. They offer various products and services
to individuals and corporates with a close focus on client
requirements while designing our products. Over a period of
time they have been offering short term loans against securities
and/or to buy new securities. They also provide finance for
investment in primary market issues. We help promoters by
financing against their share holding to meet their business
requirements, expansion of businesses and for diversification of
the lines of business. They possess expertise in financing short
and long term loan facility, risk analysis, transfer and assessment
besides a broad spectrum of services. The company is
headquartered in Mumbai and our network of branches across
India enables us to service you across locations

7. Client Advisory Services:


 At Edelweiss Client Advisory Services, our team is driven not
just by the quality of our ideas, but also professional ethics and
integrity. They take pride in there philosophy of offering advice
which is in the best interest of our clients. Their emphasis on
building long term relationship ensures that we work closely
with our clients empowering them to gain from market
opportunities through our online portal www.edelweiss.in
.www.edelweiss.in is a product that offers a unique online
investment experience that is intuitive, information rich and a
hassle-free way to trade online. It defines the next level in online
trading technology. It enables intelligent investing with market
strategies custom suited to the client’s investment profile and
current portfolio.
SERVICES MARKETING TRIANGLE:

FIRM

Internal marketing External Marketing

EMPLOYEES
Interactive Marketing CUSTOMERS
SWOT ANALYSIS
Strength:-
• Co-operative and Experienced Branch Managers in all the
branch offices.
• Reliable and Good Database about customers.
• Low pricing and low brokerage for Demat a/c.
Weakness:-
• Low awareness about the broking company in the market due to
lack of advertisements.
• Inexperienced Staff and new staff members in the company.
• Lack of loyal clientage with the team leaders.
Opportunity:-
• Presences of Untapped Market
• Increased spending power of the company
• Due to more Changing Mindset of stock Customers in the
market
• Unpredictable Sensex in the country
Threat:-
• Stiff competition from existing players in the market.
• Better products offered by the competitors in the market.
General Terminologies Thought in Training:
i) Index:
 In financial markets, an index is a customized basket of
securities that tracks a particular market or a part of it. Each
index has its own calculation methodology and its own specific
process in order to select particular securities. In India, the NSE
and BSE are the two main exchanges that have indices. The BSE
Sensex and NSE Nifty are examples of indices.

ii) IPO:
 Initial public offering (IPO), also referred to simply as a "public
offering", is when a company issues common stock or shares to
the public for the first time. They are often issued by smaller,
younger companies seeking capital to expand, but can also be
done by large privately-owned companies looking to become
publicly traded.

iii) Order Book:


 A book containing all of the buy and sell orders for specific
securities that are placed by the public. The public book is kept
by an order book official or other market specialists. The book
allows the public to know the details of the public orders, such
as what price or quantity has been entered and allows access to
the highest bid and lowest offer to facilitate trading.

iv) Circuit Filter:


 Refers to any of the measures used by stock exchanges during
large sell-offs to avert panic selling. It is also called a "collar”.
After an index has fallen a certain percentage, the exchange
might activate trading halts or restrictions on program trading.
Eg. If the Sensex falls by over 10%, the BSE will halt trading for
an hour.

v) Financial Ratios:
 A financial ratio or accounting ratio is a ratio of selected values
on an enterprise's financial statements. There are many standard
ratios used to evaluate the overall financial condition of a
corporation or other organization. Financial ratios are used by
managers within a firm, by current and potential shareholders
(owners) of a firm, and by a firm's creditors.

vi) Balance Sheet:


 A balance sheet or statement of financial position is a summary
of a person's or organization's balances. Assets, liabilities and
ownership equity are listed as of a specific date, such as the end
of its financial year. A balance sheet is often described as a
snapshot of a company's financial condition. A company balance
sheet has three parts: Assets, Liabilities and Shareholders Funds.

vii) Income Statement / Profit and Loss Account:


 An Income Statement, also called a Profit and Loss Statement
(P&L), is a financial statement for companies that indicate how
revenue is transformed into net income. The purpose of the
income statement is to show managers and investors whether the
company made or lost money during the period being reported.
The important thing to remember about an income statement is
that it represents a period of time. This contrasts the balance
sheet, which represents a single moment in time.

viii) Trading vs. Investing:


 Investing refers to the art of fundamental buying and selling of
scripts for the medium to long term, however, trading refers to
buy and selling scripts for the shorter term ranging from a day to
about a month. An Investor focuses on growth, EPS, bonus,
takeovers, fundamentals, and company management, but for a
trader, the technical's of momentum, demand and supply and
market sentiments are more important.

ix) Trading Account:


 An account similar to a traditional bank account, holding cash
and securities, and is administered by an investment dealer. An
account held at a financial institution and administered by an
investment dealer that the account holder uses to employ a
trading strategy rather than a buy-and-hold investment strategy.
Though trading accounts are traditionally thought to hold only
stocks, a trading account can hold cash, foreign cash, securities
and a number of other types of investment

x) Market/Limit Order:
 A Market Order is a buy or sell order to be executed by the
broker immediately at current market prices. As long as there are
willing sellers and buyers, a market order will be filled. A Limit
Order is an order to buy a security at no more (or sell at no less)
than a specific price. This gives the customer some control over
the price at which the trade is executed, but may prevent the
order from being executed immediately.

xi) Stop Loss Order:


 A Stop Order (also stop loss order) is an order to sell (or buy) a
security once the price of the security has dropped below (or
climbed above) a specified stop price. When the specified stop
price is reached, the stop order is entered as a market order.

xii) Buyback:
 A buyback (reacquired stock) is a stock which is bought back by
the issuing company, reducing the amount of outstanding stock
on the open market Stock repurchases are often used as a tax-
efficient method to put cash into shareholders' hands, rather than
pay dividends. Sometimes, companies do this when they feel
that their stock is undervalued on the open market

xiii) Open Offer:

 An open offer, also known as an entitlement issue, is an offer


made by a quoted company to its shareholders inviting them to
buy new shares in the company at a set price, which is normally
lower than the current market price. The purpose, as with a
rights issue, is to raise new capital for the company. Unlike a
rights issue, an open offer cannot be traded or sold on by the
shareholder. Usually, if you do not take up your entitlement, it
lapses.

xiv) Delisting:

 Delisting refers to the practice of removing the stock of a


company from a stock exchange so that investors can no longer
trade shares of the stock on that exchange. This typically occurs
when a company goes out of business, declares bankruptcy, no
longer satisfies the listing rules of stock exchange, or has
become a private company after a merger or acquisition.

ORGANIZATION CHART
ORGANIZATIONAL FLOW IN EDELWEISS BROKING LIMITED

Branch Manager

Team Head
Team Head Team Head
for HNI

8 Team
8 Team Leaders 8 Team leaders
Leaders

Dealers (After activation, the clients


are passed to Dealers for transactions)
Back Office (admiration office
for submission and correction of
Demat a/c)

Activation Team (After all


corrections the Demart a/c are opened
and welcome calls are made here)

Dealers (After activation, the


clients are passed to Dealers
for transactions)
CHAPTER III
REVIEWOF LITERATURE

REVIEW OF LITERATURE

Trading is done in three ways

1. Cash trading
2. Spot trading
3. Derivative trading

The NSE trading system called National Exchange for Automated trading
(NEAT) is a fully automated screen base trading. It is online and nationwide
trading system. It adopts the principle of an order driven market.
In this system a member can punch into the computer quantities of securities
and prices at which he likes to transact. The transactions are executed as soon as
it finds a matching sale or buy order from a counter party.

The broking limited acts as a medium between the clients and the company ,
which sells the shares or issues of the company thereby raising the company’s
capital and also investing the money of the investors in any of the investment
policies available thereby increasing their income. In this transaction the broking
limited increase their revenue through means of brokerage

DEMAT ACCOUNT

If we want to save our money, then we have to open a savings account


with a Bank. In the similar manner if we want to buy and sell shares, then we
need to open a Demat account with a depositary participant registered with
SEBI, NSE, and BSE. Demat denotes the dematerialization of shares. Demat
account along with a trading account from a DP facilitate us to buy and sell
shares online and to store the shares online without any bonded paper stuffs.
Demat account facilitates faster transaction when compared with the older
traditional trading method, (i.e) the share buyer have to inform to the broker
regarding his purchase decision and then the broker forward it to the stock
exchange, then they allot the shares to the respective buyer and send him a
registered share certificate via postal department. The investor has to wait for 5
days for his transaction. But now due to the entry of Demat account and online
share trading platforms, the investor can buy and sell any volume of shares
online with a click of a mouse making trading easier and more comfortable and
convenient
Online Share Trading

Online trading in India is the internet based investment activity that


involves no direct involvement of the broker. There are many leading online
trading portals in India along with the online trading platforms of the biggest
stock houses like the National stock exchange and the Bombay stock exchange.
The total portion of online share trading India has been found to have grown
from just 3 percent of the total turnover in 2003-2004 to 16 percent in2006-
2007.

Advantages Of Online Trading:-

The first major advantage of trading online is the ability to have total
control over ones investments. Before the advent of online trading, investors had
to go through a stockbroker in order to buy and sell their stocks. This process is
tedious, can take up value able time and is costly. In addition to that, brokers can
sometimes persuade investors to buy and sell certain stocks because of personal
reasons.

When investors trades online they have total control of their money. In
addition to that, investors have the luxury of speed. They can buy and sell stocks
quickly, which can help them save money. An example of this is if investors
want to buy certain stocks at low price, by the time they call their broker and
eventually buy the stock the price could have increased during that time period.
This same example applies to when investors want to sell a stock at a certain
time. While the investors are calling their broker and the stock is being sold, the
price could have dropped. This could sometimes cost investors thousands of
dollars.
With online trading, people can buy and sell at the exact time they choose to do
so because it is just a mouse click away. Online trading is also beneficial
because it reduces the cost of transaction. Instead of paying broker , which can
be very costly , investors can trade online and pay a small fee to their company.
this saves the customers from having to pay commission to the stockbroker.
Furthermore, since” the explosion of online brokerages has driven the cost of
transactions way down, trading online is cheaper than ever. This is because all
the companied are competing for business continue reducing their costs to attract
customers.

The last major advantage of trading stocks online is that more information is
available than ever before. Investors can get the most up to date stock quotes and
can reach any company they plan on buying stock for. This information was
previously only available to stockbrokers. With the new technology the internet
offers, it is available to everyone. With this information the investors can
become more educated and make good decision on the stocks they want to buy
and sell. One such website that allows users to gather information is Quote.com.
Quote.com has graphic charts that updates the investors’ portfolio throughout
the day and also lets investors create “watch lists” or mock portfolios that
monitor alternative investment options”. This means that customers can plan out
different investing stratifies and see how those compare to the ones they are
already invested in. These advantages have contributed greatly to the increase of
trading online.

Disadvantages of online trading :-

One major disadvantage with online trading is that there are many security risks.
The internet is a wonderful but dangerous place to do business. Hackers have the
ability to access personal information on anyone who has ever searched the
internet, which includes credit card information. This was the main reason a
company like Charles Schwab was reluctant to start trading online. Although the
percentage is small, there is still a small chance that hackers can access ones
account companies are taking the most serious precautions on this matter.

Another drawback to trading online is that, while companies offer trades that are
quick and on the spot, in actuality it can take up to several hours to complete or
even not to be completed at all. According to the Securities and Exchange
Commission, “E-traders registered more than 3,300 complaints in the 12 months
ended in September 1999, a 197 percent increase over 1998 and nearly 2,000
percent higher than in 1997”. This means that here was an increase in problems
that the web sites were having. This could have serious effects on investors
because they could think they bought a stock or sold a stock at a certain time but
in actuality the transaction registered late or not at all costing that investor
money.

The internet is unpredictable and stable. One can never know when a web site
will fail. In situations where there is a problem like this, investors can usually
call their brokerage firm and the problem is fixed right away. However, the
problem with online trading companies is that they are too large and are not
“easily reached by e-mail or phone”. This is the main concern for online
brokerage firms and they are trying their best to alleviate these problems.

Finally the most important problem with online trading is that it is so quick and
easy to make transaction, that money can be lost just as quick and just as easily.
Some people that invest online do not know how the stock market words and
think they can just invest in anything and it will make them money. According
into foresters search, “two types of traders have already moved online ‘the
aggressive affluent’ and those who want to ‘get rich quick.”. These two groups
make up 70 percent of the people that want investors trading online today. These
people can make rash decisions and lose a lot of their money. People like this
generally think that investing in the stock market is like gambling in Las Vegas.
This is a dangerous attitude and could make people lose money they cannot
afford to lose.
CHAPTER –IV
RESEARCH
METHODOLOGY

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
Research means a scientific and systematic search for pertinent
information on a specific topic. Research is careful investigation or enquiry
especially through search for new facts in any branch of knowledge. Research
comprises defining and redefining problems, formulating hypothesis or
suggested solutions, collecting, organizing and evaluating data; making
deductions and reaching conclusions; and at last carefully testing the conclusions
to determine whether they fit the formulating hypothesis
RESEARCH DESIGN
A research design is the arrangement of conditions for collection and
analysis of data in a manner that aims to combine relevance to the research
purpose with economy in procedure.
The research design adopted for this study is descriptive research design it
described the character, attitude, demographic features of the research plan.

SAMPLING METHOD
For the present study, a convenience sampling method was adopted
targets respondents for the study consisted of selected.

SAMPLING DESIGN & SAMPLE SIZE


The study has been purposely chosen as convenience sampling procedure.
It was decided to take a sample of 100 respondents.

SAMPLE PROCEDURE
Convenience sampling.

DATA COLLECTION

The data collected is primary data. A questionnaire method of data


collection was followed. Almost all questions are close ended so as to bring
about objectivity.

PRIMARY DATA
The Primary data are those that are collected, for the first time and thus
happen to be original character. The primary data used for this project has
collecting using questionnaire. The information was collected from the
employee through personal contracts.

SECONDARY DATA
Secondary data has been collected through oral communication. It is
about the company profile and other details were collected, form the company
website, journals, company annual reports, etc.
STATISTICAL TOOLS APPLIED
Analyst must use different statistical tools for analyzing and interpreting
the data, in this study the following tools are applied.
1. Moving average

2. Correlation

3. Percentage analysis

4. Chi-square analysis

5. Pre and Bar Diagram

PERCENTAGE ANALYSIS

Percentage refers to a special kind of ration’ Percentages are used making


comparison between two or more series of data. Percentages are used to
describe relationship. Percentage can also be used to compare the relative terms.
This distribution of two or more series of data.
Number of Respondents × 100
Percentage of respondents =
Total Respondents

CHI-SQUARE TEST

By degree of freedom, we mean the number of classes to which the values


can be assigned arbitrarily if at 5% level of significance the calculated value of 2
is more than the table value, the difference between the theory and observation is
considered to be significant.

On the other hand the calculated value of 2 is less than table value. The
difference the theory and observation is not considered as significant. i.e., it is
regarded as due to fluctuations of sampling and hence ignored. The degree of
freedom can be calculated using the formula,

V = (c-1) (r-1)
Where, c= refers to columns,
And r = refers to rows.
CHAPTER – V
DATA ANALYSIS
AND
INTERPRETATION

TABLE NO-1

DATA ANALYSIS AND INTEPRETATION

THIS RENUE DETAILS OF THE CLIENTS STARTED TRADING NEWLY ON THE


PARTICULAR DAY BY THE CLIENT ACTIVATOR
CLIENT NAME ACCONT FIRST LEDGER TRADED SUBSCRIPTION RVENUE
ID OPENIN TRADED BALANCE AMOUNT PLAN
G DATE DATE
EX42761 Ramya 23-Nov 1-Dec 17 30359.2 151.796
7
SUM 151.796

EX32278 Prabu 30-Nov 2-Dec 364 242 465.82


7
EX41709 Raja 25-Nov 2-Dec 0 655.5 6.98
7
EX41783 Gopinath 3-Nov 2-Dec 143 265.25 2.44
5
SUM 475.24

EX41639 Guru 27-Nov 3-Dec 245 1031.7 17.61


1
EX41707 Vijayasankar 29-Nov 3-Dec 1499 1495.8 9.87
4
EX42052 Arun 23-Nov 3-Dec 0 847 4.91
1
SUM 32.39

EX42714 Dayalan 1-Dec 6-Dec 846 529.75 1250 0.53


5
SUM 0.53

EX33299 Sundar 10-Nov 7-Dec 88 14100 70.5


9
EX41352 Prabu 4-Dec 7-Dec 60 311.5 2450 0.07
7
EX42760 Jagannadhan 2-Dec 7-Dec 1457 3115 2450 22.49
4
SUM 93.06

EB001651 Mohammed 29-May 8-Dec 2250 0.06

EX41373 Maria 12-Oct 8-Dec 88 14010 70.05


8
SUM 70.11

EX41707 Sundar 27-Nov 9-Dec 656 526.5 11.05


6
EX41938 Prabakaran 30-Nov 9-Dec 0 525 3.43
7
EX42051 Ashok 24-Nov 9-Dec 444 4723.75 26.1
7
SUM 40.58

EX40090 Suresh 5-Oct 10-Dec 0 764.4 0.17


5
EX41371 Suthagar 12-Oct 10-Dec 23 24278.55 1.5
9
EX40094 Aravind 30-Sep 10-Dec 88 7238.4 2450 0.6
5
EX42486 Subramanian 8-Dec 10-Dec 0 59996.06 381.43
6
EX42487 Venkatesh 8-Dec 10-Dec 102 7102.7 1000 2.06
2
SUM 385.76

EX33019 Gopinath 2-Dec 13-Dec 1091 1098 10.39


2
EX42050 Ramkumar 6-Dec 13-Dec 15 977.1 4.89
7
EX42488 Kumar Raj 8-Dec 13-Dec 16669 33520 1306.71
3
EX42489 Venkatesh 9-Dec 13-Dec 8393.44 26838.4 134.192
2
SUM 1456.182

EX41574 Satheesh 4-Dec 14-Dec 0 977.1 4.88


0
EX41849 Muthu 9-Dec 14-Dec 0 2258.2 49.39
5
EX42760 Jenifer 11-Dec 14-Dec 1471 1734 1000 4.31
3
EX42763 VENKATESAN 24-Nov 14-Dec 24 977.1 2450 0.06
8
EX42951 Sankar 13-Dec 14-Dec 0 300687.56 402
1
EX43356 Vengadavan 10-Dec 14-Dec 937 1796 0.16
7
SUM 460.8

EX42050 Solomon 27-Nov 15-Dec 931 1845.9 1250 140.21


8
EX32154 Karthi 14-Jul 15-Dec 87 24595.3 0.38
2
EX42769 Brince 8-Dec 15-Dec 3866 25990 6.71
1
SUM 147.3

EX32961 Sarathy 30-Sep 16-Dec 27540.61 31304.8 351.4


1
EX41574 Dinesh 12-Nov 16-Dec 2352 3625 1250 1.8
4
EX42713 Mahesh 25-Nov 16-Dec 39 340.2 7.69
3
EX42769 Loganathan 9-Dec 16-Dec 364 3294.7 2450 12.04
8
SUM 372.93

EX33427 Theraviam 19-Oct 20-Dec 2 252.5 1.29


9
EX41695 Rajshekar 1-Nov 20-Dec 0 8463 2450 0.1
2
EX41697 Suresh 11-Dec 20-Dec 0 252.5 1.29
8
EX41783 Ragavandian 15-Dec 20-Dec 0 662.5 3.43
6
EX43438 Ramachandan 9-Dec 20-Dec 0 252.5 1.28
4
SUM 7.39

EX41845 Marayi 11-Nov 21-Dec 19 227.25 1.15


2
EX43356 Sivaraj 13-Dec 21-Dec 0 176.75 0.9
8
SUM 2.05

EX41706 Madhuri 2-Nov 22-Dec 545 454.5 2.26


7
EX42486 Vinohh 16-Dec 22-Dec 1745 1262.5 2450 0.5
4
EX43359 Suresh 16-Dec 22-Dec 0 454.5 2.26
6
SUM 5.02

EX31318 Sivaramakrishnan 15-Dec 23-Dec 209 7019.25 50.25


1
EX41782 Chandrasekar 6-Dec 23-Dec 0 1023 1.02
9
EX42384 Sathisvel 21-Dec 23-Dec 0 227.25 1.14
8
EX42766 Jaganothan 26-Nov 23-Dec 2746 2242.5 1250 1.3
3
EX42953 Kaverisudhaga 21-Dec 23-Dec 639 590 95.07
8
EX42954 Rajasekar 16-Dec 23-Dec 0 505 2.55
1
EX43355 Jayakumar 21-Dec 23-Dec 0 505 2.53
6
SUM 153.86

EX32037 Ramachandra 6-Jul 24-Dec 0 378.75 1.91


8
EX33299 Devarajan 12-Oct 24-Dec 0 50.5 0.26
8
EX41573 Ravikumar 3-Dec 24-Dec 0 525 3.11
6
EX42054 Elankeeran 4-Dec 24-Dec 521 1155 12.06
1
EX42054 Pandian 16-Dec 24-Dec 1349 523 1250 0.1
3
EX42382 Kyoganand 22-Dec 24-Dec 0 126.25 0.64
0
EX42954 Plousjoseph 16-Dec 24-Dec 370 525 3.13
5
SUM 21.21

EX41698 Manakumari 8-Dec 27-Dec 8328 6970 1250 16.26


5
EX41848 Venkatesan 29-Nov 27-Dec 1718 3079.2 3.17
9
EX42485 Umamaheswari 21-Dec 27-Dec 0 479.75 2.44
5
EX43294 Anupjoy 24-Dec 27-Dec 100 20548.4 2000 3.38
9
EX43435 Laxminarayana 16-Dec 27-Dec 513 272 2.64
4
SUM 27.89

EX41371 Suresh 7-Sep 28-Dec 889 7697.5 2450 3


5
EX41570 Jobnxraja 16-Dec 28-Dec 0 176.05 0.88
7
EX42381 Prabhu 24-Dec 28-Dec 0 525 1000 0.1
0
SUM 3.98

EX41831 Chennamma 27-Dec 29-Dec 456 41412.9 2000 7.18


2
EX42383 Prabakaran 16-Dec 29-Dec 0 25.25 0.13
6
SUM 7.31

EX42487 Hariharan 22-Dec 30-Dec 3 959.5 4.98


9
EX42950 Ahamed 27-Dec 30-Dec 767 2080.25 12.38
9
EX43002 Nelson 27-Dec 30-Dec -338 17203.8 2000 4.66
6
SUM 22.02

EX21667 Sivasankaran 23-Feb 31-Dec -566 11287.5 4856.16


9
EX41830 Subramanian 24-Dec 31-Dec 183 8410.75 1250 0.62
1
SUM 4856.78

TOTAL FORDEC 8794.188

EX42762 Rajamanickam 18-Nov 3-Jan 2480 39034.2 2450 1.12


2
EX43355 Paulvalan 27-Dec 3-Jan 5211 3571.75 2000 0.44
4
SUM 1.56

EX31714 Ranjith 1-Jul 4-Jan 22 367.5 2.37


9
EX46208 Chandrasekar 29-Sep 4-Jan 320 525 3.38
0
EX41698 Ramesh 29-Dec 4-Jan 188 1000 1250 0.03
0
EX43356 Raviganesan 31-Dec 4-Jan 354 1521 1000 0.3

EX43435 Jagadeep 21-Dec 4-Jan 7973 34914.85 218.64


2
SUM 224.72

EX41833 Veeraraghavan 24-Dec 5-Jan 7649.37 1769.1 1000 3.88


4
EX42486 Murali 15-Dec 5-Jan 50 960.7 2450 4.72
9
SUM 8.6

EX42953 Mani 21-Dec 6-Jan 11 864.9 2450 0.18


4
EX43267 Suresh 31-Dec 6-Jan 500 1116.25 6.57
4
EX43356 Rupesh 4-Jan 6-Jan 33 52.5 0.33
2
SUM 7.08

EX43355 Nanda 4-Jan 7-Jan 992 500 3.02


5
EX43438 Lakshmi 4-Jan 7-Jan 78 922.95 4.58
1
SUM 7.6

EX41570 Rajasekar 5-Jan 10-Jan 87 410.2 142.64


8
EX43267 Ramesh 6-Jan 10-Jan 5856 6230 2000 1.5
7
SUM 144.14

EX41570 Senthil 26-Oct 11-Jan 40 418.4 2.28


9
EX43002 Yogesh 27-Dec 11-Jan 40 736.5 4.49
5
EX43267 Naresh 6-Jan 11-Jan 93 787.5 4.5
5
SUM 11.27

EX41935 Raju 8-Dec 12-Jan 382 525 1250 0.1


4
EX41938 Nagaprasanna 21-Dec 12-Jan 16 865.9 4.89
6
EX42953 Pushparaj 8-Jan 12-Jan 1365 525 0 3
0
SUM 7.99

EX41706 Shanmuga 26-Oct 13-Jan 47 5086.25 1.5


2
EX43265 Aravind 8-Jan 13-Jan 199 1020 0.17
1
EX43671 Lakshmanan 29-Dec 13-Jan 65 367.5 1250 0.07
5
SUM 1.74

EX41636 Dinesh 3-Dec 14-Jan 19 420 0.08


1
EX41693 Kevaraovv 27-Nov 14-Jan 44 336 1.7
7
EX42901 Sivakumar 11-Jan 14-Jan 64 388 1000 0.56
6
SUM 2.34

EX43671 Vijeindiran 6-Jan 17-Jan 251 23723.75 2450 0.48


2
SUM 0.48

EX40947 Prabagar 4-Jan 18-Jan 106 787.5 4.44


2
EX41847 Srikanth 29-Dec 18-Jan 37 420 2000 0.08
8
EX42769 Kalyanasu 25-Nov 18-Jan 6 999 5
5
SUM 9.52

EX43290 Indira 13-Jan 19-Jan 65 42586.8 2000 0.67


9
SUM 0.67

EX42900 Jayaramak 11-Jan 20-Jan 28 420 2.34


1
EX43000 Jagadeesh 27-Dec 20-Jan 118 787.5 2450 0.15
7
EX43266 Sudhakar 13-Jan 20-Jan 23 227.25 1.13
2
EX43670 Saveetha 14-Jan 20-Jan 5829 7533 2000 0.55
3
EX43670 Theresa 12-Jan 20-Jan 15025 10010 2450 1.6
5
SUM 5.77

EX41591 Naresh 18-Jan 21-Jan 28 3286.8 17.24


0
EX42051 Chandrasekar 18-Jan 21-Jan 1806 11760 2450 6
0
SUM 23.24

EX42054 Jeminigane 15-Jan 24-Jan 739 9582.35 0 48.97


0
EX43003 Magikrish 20-Jan 24-Jan 4502 462.25 2.47
8
SUM 51.44

EX41832 Thirumurthy 18-Jan 25-Jan 13 176.75 0 0.93


8
SUM 0.93

EX41833 Sudheer 22-Jan 27-Jan 78 3896.6 19.48


1
EX42383 Vigneshvar 21-Dec 27-Jan 174 1016.95 1000 0.16
9
EX42781 Visalakshi 22-Jan 27-Jan 4620 5212 1250 0.22
0
EX43299 Praveenraj 22-Jan 27-Jan 39 1794.5 1250 0.4
4
EX43294 Nagasumanth 21-Jan 27-Jan 752 20834.8 211.86
8
SUM 232.12

EX41594 Rucknani 21-Jan 28-Jan 3983 980 5.05


8
EX42384 Jitendrakum 31-Dec 28-Jan 132 1849 1250 0.2
7
EX43290 Balamurugan 21-Jan 28-Jan 156 787.5 4.19
3
EX43291 Starlin 22-Jan 28-Jan 151 787.5 4.21
8
SUM 13.65

EX31733 Mnaveen 25-Jan 31-Jan 175 1217.6 0 6.58


3
EX42785 Samuel 24-Jan 31-Jan 44 2406.3 2450 0.24
0
EX43268 Karthik 7-Jan 31-Jan 279 924.5 1250 0.1
3
EX43357 Vijayakumar 16-Dec 31-Jan 86 1001 0.1
9
EX43672 Surundra 11-Jan 31-Jan 64 2230138.7 2000 0.04
3
SUM 7.06

TOTAL FOR JAN 761.92

EX42784 Rairsthanam 25-Jan 1-Feb 77 2426 2450 0.25


9
EX43003 Jayachandran 28-Jan 1-Feb 2828 3250 0 15.76
2
EX43269 Praveenpr 30-Dec 1-Feb 1002.51 3674 0 3.67
0
SUM 19.68

TOTAL SUM 4042.618

NOTE:-
Revenue due to Client Activation
December 57,635
January 30,247

Activation Team contributes 64.11% of total clients activated for


the month of January
CHART NO-1
CHART NO-2

INTERPRETATION:-
• From the graph we are able to interpret that the revenue generated due to
client activation in the month of December was more than that of the
revenue generated by client activation in the month of January. This is due
to the market downtrend in the month of January.

• This also shows that even though the market was down it was only the
client activation which has increase the revenue of the month by 64.11%
TABLE NO-2

MOVING AVERAGE

Trading revenue Trading revenue Trading revenue


Date DEC Date JAN Date FEB
1-Dec 151.796 3-Jan 1.56 1-Feb 19.68
2-Dec 475.24 4-Jan 224.72
3-Dec 32.39 5-Jan 8.6
6-Dec 0.53 6-Jan 7.08
7-Dec 93.06 7-Jan 7.6
8-Dec 70.11 10-Jan 144.14
9-Dec 40.58 11-Jan 11.27
10-Dec 385.76 12-Jan 7.99
13-Dec 1456.18 13-Jan 1.74
2
14-Dec 460.8 14-Jan 2.34
15-Dec 147.3 17-Jan 0.48
16-Dec 372.93 18-Jan 9.52
20-Dec 7.39 19-Jan 0.67
21-Dec 2.05 20-Jan 5.77
22-Dec 5.02 21-Jan 23.24
23-Dec 153.86 24-Jan 51.44
24-Dec 21.21 25-Jan 0.93
27-Dec 27.89 27-Jan 232.12
28-Dec 3.98 28-Jan 13.65
29-Dec 7.31 31-Jan 7.06
30-Dec 22.02
31-Dec 4856.78
CALCULATION

SIMPLE MOVING AVERAGE

151.796 475.24 32.39 0.53 93.06


475.24 32.39 0.53 93.06 70.11
32.39 0.53 93.06 70.11 40.58
0.53 93.06 70.11 40.58 385.76
93.06 70.11 40.58 385.76 1456.182
70.11 40.58 385.76 1456.182 460.8
40.58 385.76 1456.182 460.8 147.3
385.76 1456.182 460.8 147.3 372.93
1456.182 460.8 147.3 372.93 7.39
460.8 147.3 372.93 7.39 2.05
147.3 372.93 7.39 2.05 5.02
372.93 7.39 2.05 5.02 153.86
7.39 2.05 5.02 153.86 21.21
2.05 5.02 153.86 21.21 27.89
5.02 153.86 21.21 27.89 3.98
153.86 21.21 27.89 3.98 7.31
21.21 27.89 3.98 7.31 22.02
27.89 3.98 7.31 22.02 4856.78
3.98 7.31 22.02 4856.78 1.56
7.31 22.02 4856.78 1.56 224.72
22.02 4856.78 1.56 224.72 8.6
4856.78 1.56 224.72 8.6 7.08
1.56 224.72 8.6 7.08 7.6
224.72 8.6 7.08 7.6 144.14
8.6 7.08 7.6 144.14 11.27
7.08 7.6 144.14 11.27 7.99
7.6 144.14 11.27 7.99 1.74
144.14 11.27 7.99 1.74 2.34
11.27 7.99 1.74 2.34 0.48
7.99 1.74 2.34 0.48 9.52
SUM AVERAGE SUM AVERAGE SUM AVERAGE SUM AVERAGE SUM AVERAGE
9207.148 306.90493 9057.092 301.90307 8584.192 286.13973 8552.282 285.07607 8561.27 285.37573
2
70.11 40.58 385.76 1456.182 460.8
40.58 385.76 1456.182 460.8 147.3
385.76 1456.182 460.8 147.3 372.93
1456.182 460.8 147.3 372.93 7.39
460.8 147.3 372.93 7.39 2.05
147.3 372.93 7.39 2.05 5.02
372.93 7.39 2.05 5.02 153.86
7.39 2.05 5.02 153.86 21.21
2.05 5.02 153.86 21.21 27.89
5.02 153.86 21.21 27.89 3.98
153.86 21.21 27.89 3.98 7.31
21.21 27.89 3.98 7.31 22.02
27.89 3.98 7.31 22.02 4856.78
3.98 7.31 22.02 4856.78 1.56
7.31 22.02 4856.78 1.56 224.72
22.02 4856.78 1.56 224.72 8.6
4856.78 1.56 224.72 8.6 7.08
1.56 224.72 8.6 7.08 7.6
224.72 8.6 7.08 7.6 144.14
8.6 7.08 7.6 144.14 11.27
7.08 7.6 144.14 11.27 7.99
7.6 144.14 11.27 7.99 1.74
144.14 11.27 7.99 1.74 2.34
11.27 7.99 1.74 2.34 0.48
7.99 1.74 2.34 0.48 9.52
1.74 2.34 0.48 9.52 0.67
2.34 0.48 9.52 0.67 5.77
0.48 9.52 0.67 5.77 23.24
9.52 0.67 5.77 23.24 51.44
0.67 5.77 23.24 51.44 0.93
SUM AVERAGE SUM AVERAGE SUM AVERAGE SUM AVERAGE SUM AVERAGE
8468.882 282.29607 8404.542 280.1514 8387.202 279.5734 8052.882 268.4294 6597.63 219.921
1.56 224.72 8.6 7.08

224.72 8.6 7.08 7.6


8.6 7.08 7.6 144.14
7.08 7.6 144.14 11.27
7.6 144.14 11.27 7.99
144.14 11.27 7.99 1.74
11.27 7.99 1.74 2.34
7.99 1.74 2.34 0.48
1.74 2.34 0.48 9.52
2.34 0.48 9.52 0.67
0.48 9.52 0.67 5.77
9.52 0.67 5.77 23.24
0.67 5.77 23.24 51.44
5.77 23.24 51.44 0.93
23.24 51.44 0.93 232.12
51.44 0.93 232.12 13.65
0.93 232.12 13.65 7.06
232.12 13.65 7.06 19.68
SUM AVERAGE SUM AVERAGE SUM AVERAGE SUM AVERAGE
6368.9 212.29833 6235.3 207.84333 5869.4 195.64767 5881.7 196.05733
5 3 2
CHART NO-3

INTERPRETATION:-

From the moving average graph we could find that the revenue generated
by client activation is high during previous months and from January middle it
has been highly reduced, which means that the client activation has not been
done effectively due to the reason that there is only two client activators for
more than 3500 clients and this revenue decrease is also due to the market
downtrend for the past three months.
TABLE NO-3

CLASSIFICATION BASED ON THE CLIENTS AGE

S.NO AGE NO OF PERCENTAGE


RESPONDENTS (%)
1 21-30 15 18.75
2 30-40 26 32.5
3 40-50 22 27.5
4 ABOVE 50 17 21.25
Total 80 100

INFERENCE:-
From the above table it is found that 18.75% of respondents are in the
age group 21-30, 32.5% of respondents are in the age group of 31-40,
27.5% of respondents are in the age group 40-50, 21.25% of
respondents are in the age group of above 50 which shows that most of the
clients who make investment are in the age group of 31-40.

CHART NO-3
CLASSIFICATION BASED ON THE CLIENTS AGE
TABLE NO-4

CLASSIFICATION BASED ON THE CLIENTS GENDER

S.NO GENDER NO OF PERCENTAGE


RESPONDENTS (%)
1 Male 60 75
2 Female 20 25
Total 80 100

INFERENCE:-
From The above table it is found that 75%of the clients are male and 25%of
the clients are female which means that mostly men are investing more in share
market.
CHART NO-4
CLASSIFICATION BASED ON THE CLIENTS GENDER
TABLE NO-5

CLASSIFICATION BASED ON THE OPENING OF DEMAT ACCOUNT

S.NO OPENING NO OF PERCENTAGE


DEMAT RESPONDENTS (%)
ACCOUNT
1 Before March 12 15
2 March to June 15 18.75
3 June to December 36 45

4 After December 17 21.25


Total 80 100

INFERENCE:-
From the above table it is found that 15% of the clients have opened
the demat account before March, 18.75% of the clients have opened the demat
account in the period of March to June,45 of the respondents have opened in the
period of June to December and21.25% of the respondents have opened in the
period after December .
CHART NO-5
CLASSIFICATION BASED ON THE OPENING OF DEMAT ACCOUNT
TABLE NO-6

CLASSIFICATION BASED ON THE CLIENTS INTERESTED IN


TRADING

S.NO INTERESTED NO OF PERCENTAGE


IN TRADING RESPONDENTS (%)

1 Yes 66 82.5
2 No 14 17.5
Total 80 100

INFERENCE:-
From the above table it is found that 82.5% of the are
interested in trading, 17.5% of the respondents are not interested in trading

CHART NO-6
CLASSIFICATION BASED ON THE CLIENTS INTERESTED IN TRADING
TABLE NO-7

CLASSIFICATION BASED ON THE CLIENTS REMAINING


INACTIVE

S.NO CLIENTS NO OF PERCENTAGE


REMAINING RESPONDENTS
INACTIVE (%)

1 financial position 15
18.75
2 share holdings in 13
other company
16.25
3 lack of knowledge 22
in share market 27.5
4 market downtrend 30
37.5

Total 80 100

INFERENCE:-
From the above table it is found that 18.75% of the respondents are
dormant due to financial position, 16.25% of the respondents are dormant due to
share holdings in another company,27.5 of the respondents are dormant due to
lack of knowledge in share market and 37.5% of the respondents are dormant
due to market down trend
CHART NO-7

CLASSIFICATION BASED ON THE CLIENTS REMAINING INACTIVE


TABLE NO-8

CLASSIFICATION BASED ON THE CLIENTS GET ACTIVATED

S.NO CLIENTS GET NO OF PERCENTAGE


ACTIVATED RESPONDENTS (%)

1 After Budget 32 40
2 After 3 months 29 36.25
3 After 6 months 9 11.25
4 not yet decided 10 12.5
Total 80 100

INFERENCE:-
From the table it is inferred that 40% of the respondents will start
trading after budget and 36.25% of the clients will start after 3months ,11.25%
of the respondents will start after 6months and12.5% of the respondents have not
yet decided.
CHART NO-8
CLASSIFICATION BASED ON THE CLIENTS GET ACTIVATED
TABLE NO-9

CLASSIFICATION BASED ON THE KIND OF TRADING OPTED

S.NO TRADING NO OF PERCENTAGE


ADOPTED RESPONDENTS (%)

1 Online trading 44 55
2 Offline trading 36 45
Total 80 100

INFERENCE:-
From the table it is inferred that55% of the respondents go for online
trading and 45% of the respondents go for offline trading which means that
client activators have effectively educate the client about online trading
CHART NO-9
CLASSIFICATION BASED ON THE KIND OF TRADING OPTED
TABLE NO-10

CLASSIFICATION BASED ON THE KIND OF INVESMENT

S.NO INVESTMENT NO OF PERCENTAGE


TYPE RESPONDENTS (%)

1 Equity 55 68.75
2 commodity 8 10
3 Mutual funds 17 21.25

Total 80 100

INFERENCE:-
From the above table it is inferred that68.75% of the respondents go for
equities, 10% of the respondents invest in commodities and 21.25%of the
respondents go for mutual funds. It means that most of the clients go for equity
market than other type of investment.

CHART NO-10
CLASSIFICATION BASED ON THE KIND OF INVESMENT
TABLE NO-11

CLASSIFICATION BASED ON THE REQUIREMENT OF TRAINING

S.NO REQUIREMENT NO OF PERCENTAGE


OF TRAINING RESPONDENTS (%)
1 Yes 42 52.5
2 No 38 47.5
Total 80 100

INFERENCE:-
From the above table it is inferred that 52.5% of the respondents require
training on various parts such as training on share market, training about online
trading etc and 47.5% of the respondents do not require training.
CHART NO-11
CLASSIFICATION BASED ON THE REQUIREMENT OF TRAINING
TABLE NO-12

CLASSIFICATION BASED ON THE CLIENTS STOCK HOLDINGS IN


OTHER COMPANY

S.NO STOCK NO OF PERCENTAGE


HOLDINGS IN RESPONDENTS
OTHER
COMPANY (%)

1 Yes 34 42.5
2 No 46 57.5
Total 80 100

INFERENCE:-
From the above table it is inferred that 42.5% of the respondents hold
stocks in other share broking company and 57.5% of the respondents hold stock
only in Edelweiss.
CHART NO-12
CLASSIFICATION BASED ON THE CLIENTS STOCK HOLDINGS IN
OTHER COMPANY
TABLE NO-13

CLASSIFICATION BASED ON THE SUBSCRIPTION PLAN ADOPTED

S.NO SUBSCRIPTION NO OF PERCENTAGE


PLAN ADOPTED RESPONDENTS (%)
1 1250 plan 21 26.25
2 2000 plan 22 27.5
3 above 2000 plan 11 13.75
4 No plan 26 32.5

Total 80 100

INFERENCE:-
From the above table it is inferred that 26.25% of the clients go for
1250 plan, 27.5% of the clients go for 2000 plan,13.75% of the respondents go
for above 2000 plan and 32.5% of the respondents do not take any subscription
plan.

CHART NO-13
CLASSIFICATION BASED ON THE SUBSCRIPTION PLAN ADOPTED
TABLE NO-14

CLASSIFICATION BASED ON THE SATISFACTION LEVEL OF THE


CLIENT

S.NO SATISFACTION NO OF PERCENTAGE


LEVEL OF THE RESPONDENTS
CLIENT (%)

1 Highly satisfied 19 23.75


2 Satisfied 20 25
3 Neither satisfied 20 25
nor dissatisfied
4 Dissatisfied 21 26.25

Total 80 100

INFERENCE:-
From the above table it is inferred that 23.75% of the respondents are
highly satisfied, 25% of the respondents are satisfied, 13.75% of the respondents
are neither satisfied nor dissatisfied and 26.25% of the respondents are
dissatisfied.

CHART NO-14
CLASSIFICATION BASED ON THE SATISFACTION LEVEL OF THE
CLIENT
TABLE NO-15

REVENUE GENERATED ON JAN AND FEB

traded revenue traded revenue


date date
DEC JAN
1-Dec 151.796 3-Jan 1.56
2-Dec 475.24 4-Jan 224.72
3-Dec 32.39 5-Jan 8.6
6-Dec 0.53 6-Jan 7.08
7-Dec 93.06 7-Jan 7.6
8-Dec 70.11 10-Jan 144.14
9-Dec 40.58 11-Jan 11.27
10-Dec 385.76 12-Jan 7.99
13-Dec 1456.182 13-Jan 1.74
14-Dec 460.8 14-Jan 2.34
15-Dec 147.3 17-Jan 0.48
16-Dec 372.93 18-Jan 9.52
20-Dec 7.39 19-Jan 0.67
21-Dec 2.05 20-Jan 5.77
22-Dec 5.02 21-Jan 23.24
23-Dec 153.86 24-Jan 51.44
24-Dec 21.21 25-Jan 0.93
27-Dec 27.89 27-Jan 232.12
28-Dec 3.98 28-Jan 13.65
29-Dec 7.31 31-Jan 7.06
CALCULATION

CORRELATION ANALYSIS

price changes price changes X^2 Y^2 XY


X Y
-323.444 -223.16 104616 49800.39 72179.76
442.85 216.12 196116.1 46707.85 95708.74
31.86 1.52 1015.06 2.3104 48.4272
-92.53 -0.52 8561.801 0.2704 48.1156
22.95 -136.54 526.7025 18643.17 -3133.59
29.53 132.87 872.0209 17654.44 3923.651
-345.18 3.28 119149.2 10.7584 -1132.19
-1070.42 6.25 1145803 39.0625 -6690.14
995.382 -0.6 990785.3 0.36 -597.229
313.5 1.86 98282.25 3.4596 583.11
-225.63 -9.04 50908.9 81.7216 2039.695
365.54 8.85 133619.5 78.3225 3235.029
5.34 -5.1 28.5156 26.01 -27.234
-2.97 -17.47 8.8209 305.2009 51.8859
-148.84 -28.2 22153.35 795.24 4197.288
132.65 50.51 17596.02 2551.26 6700.152
-6.68 -231.19 44.6224 53448.82 1544.349
23.91 218.47 571.6881 47729.14 5223.618
-3.33 6.59 11.0889 43.4281 -21.9447
SUM AVERAGE SUM AVERAGE SUM AVERAGE SUM AVERAGE SUM AVERAGE
144.486 7.604526316 -5.5 -0.28947 2890670 152140.5 237921.2 12522.17 183881.5 9677.974
CALCULATION

∑x=144.486 ∑y=-5.5
Average (x̄) = 7.604526 (ȳ) = -0.28947
x̄^2=57.82882 ȳ^2=0.083795

b=∑xy-nx̄ȳ/∑x^2-nX^2
=0.063651
a=ȳ-bx̄
=-0.77351

r^2= a∑Y+b∑XY-n.ȳ^2/∑Y^2-nȳ^2
=0.049205075
r= 0.22182217

Interpretation:-
From the correlated value we can find that the correlated value lies between
-1 to 1 which means it is positively correlated.
TABLE NO-16

COMPARITIVE BALANCE SHEET

` in Cr. Mar- Mar- inc or percentage Mar- Mar- inc or percentage


06 07 dec 07 08 dec
Debt- 0 0.31 -0.31 #DIV/0! 0.31 0.71 -0.4 -129.032
Equity
Ratio (x)
Long 0 0.31 -0.31 #DIV/0! 0.31 0.45 -0.14 -45.1613
Term
Debt-
Equity
Ratio (x)
Current 4.09 8.61 -4.52 -110.513 8.61 3.19 5.42 62.95006
Ratio (x)
Fixed 7.58 16.4 -8.9 -117.414 16.4 22.1 -5.69 -34.5267
Assets (x) 8 8 7

Inventory 0 0 0 #DIV/0! 0 0 0 #DIV/0!


(x)
Debtors 8.26 10.6 -2.36 -28.5714 10.6 24.4 -13.83 -130.226
(x) 2 2 5
Interest 431 18.1 412.86 95.79118 18.1 1.51 16.63 91.67585
Cover 4 4
Ratio (x)
Operating 44.8 52.6 -7.77 -17.3321 52.6 62.8 -10.25 -19.4867
Profit 3 5
Margin
(%)
Profit 41.5 51.2 -9.73 -23.4345 51.2 62.1 -10.9 -21.2683
Before 2 5 5 5
Interest
And Tax
Margin
(%)
Gross 44.7 49.7 -5.04 -11.2676 49.7 21.6 28.12 56.4999
Profit 3 7 7 5
Margin
(%)
Cash 30.0 37.2 -7.16 -23.7953 37.2 16.0 21.21 56.9396
Profit 9 5 5 4
Margin
(%)
Ajdusted 26.7 35.9 -9.12 -34.0553 35.9 15.3 20.56 57.27019
Net Profit 8 4
Margin
(%)
Return 15.4 10.1 5.3 34.30421 10.1 7.56 2.59 25.51724
On 5 5 5
Capital
Employed
(%)
Return 9.99 9.35 0.64 6.406406 9.35 3.2 6.15 65.7754
On Net
Worth
(%)
` in Cr. Mar- Mar- inc or percentage Mar- Mar- inc or percentage
08 09 dec 09 10 dec
Debt- 0.71 0.6 0.11 15.49296 0.6 0.74 -0.14 -23.3333
Equity
Ratio (x)
Long 0.45 0.34 0.11 24.44444 0.34 0.46 -0.12 -35.2941
Term
Debt-
Equity
Ratio (x)
Current 3.19 2.54 0.65 20.37618 2.54 2.49 0.05 1.968504
Ratio (x)
Fixed 22.17 16.98 5.19 23.41001 16.98 24.85 -7.87 -46.3486
Assets (x)

Inventory 0 0 0 #DIV/0! 0 0 0 #DIV/0!


(x)
Debtors 24.45 30.7 -6.25 -25.5624 30.7 7.94 22.76 74.13681
(x)
Interest 1.51 1.32 0.19 12.58278 1.32 1.31 0.01 0.757576
Cover
Ratio (x)
Operating 62.85 69.51 -6.66 -10.5967 69.51 72.7 -3.19 -4.58927
Profit
Margin
(%)
Profit 62.15 67.23 -5.08 -8.17377 67.23 72.03 -4.8 -7.13967
Before
Interest
And Tax
Margin
(%)
Gross 21.65 18.49 3.16 14.59584 18.49 17.65 0.84 4.542996
Profit
Margin
(%)
Cash 16.04 16.04 0 0 16.04 14.39 1.65 10.28678
Profit
Margin
(%)
Ajdusted 15.34 13.75 1.59 10.36506 13.75 13.72 0.03 0.218182
Net Profit
Margin
(%)
Return 7.56 5.97 1.59 21.03175 5.97 7.76 -1.79 -29.9832
On
Capital
Employed
(%)
Return 3.2 1.95 1.25 39.0625 1.95 2.57 -0.62 -31.7949
On Net
Worth
(%)
TABLE NO-17

COMPARITIVE PROFIT AND LOSS ACCOUNT

` in Cr. Mar Mar- inc or percentage Mar- Mar- inc or percentage


-06 07 dec 07 08 dec
INCOME :

Operating 30.41 73.59 -43.18 -141.993 73.59 187.4 -113.88 -154.749


Income 7

Other Income 0.73 1.79 -1.06 -145.205 1.79 0.2 1.59 88.82682

Stock 0 0 0 #DIV/0! 0 0 0 #DIV/0!


Adjustment

Total Income 31.14 75.38 -44.24 -142.068 75.38 187.6 -112.29 -148.965
7
EXPENDITURE 0 #DIV/0! 0 #DIV/0!
:

Interest & 0.03 2.13 -2.1 -7000 2.13 77.32 -75.19 -3530.05
Financial
Charges
Operating & 17.18 35.73 -18.55 -107.974 35.73 69.72 -33.99 -95.1301
Administrative
Expenses

Less: 0 0 0 #DIV/0! 0 0 0 #DIV/0!


Preoperative
Expenditure
Capitalised
Profit before 13.93 37.52 -23.59 -169.347 37.52 40.63 -3.11 -8.28891
Depreciation &
Tax

Depreciation 1.03 1.02 0.01 0.970874 1.02 1.32 -0.3 -29.4118

Profit Before 12.9 36.5 -23.6 -182.946 36.5 39.31 -2.81 -7.69863
Tax
Tax 4.56 9.44 -4.88 -107.018 9.44 10.53 -1.09 -11.5466

Profit After Tax 8.34 27.06 -18.72 -224.46 27.06 28.78 -1.72 -6.35625
Adjustment 0 0 0 #DIV/0! 0 0 0 #DIV/0!
below net profit

P & L Balance 19.5 26.83 -7.33 -37.5897 26.83 49.91 -23.08 -86.0231
brought forward

Appropriations 1.01 3.98 -2.97 -294.059 3.98 23.33 -19.35 -486.181

P & L Balance 26.83 49.91 -23.08 -86.0231 49.91 55.36 -5.45 -10.9197
carried down

Equity Dividend 0.49 1.13 -0.64 -130.612 1.13 15.02 -13.89 -1229.2

Preference 0 0 0 #DIV/0! 0 0 0 #DIV/0!


Dividend

Corporate 0.08 0.14 -0.06 -75 0.14 2.55 -2.41 -1721.43


Dividend Tax

Equity Dividend 15 30 -15 -100 30 40 -10 -33.3333


(%)
Earning Per 2.19 6 -3.81 -173.973 6 3.5 2.5 41.66667
Share (Rs.)
Book Value 34.34 100.0 -65.73 -191.409 100.0 180.0 -80.01 -79.954
7 7 8

Extraordinary 0 0 0 #DIV/0! 0 0 0 #DIV/0!


Items
` in Cr. Mar- Mar- inc or percentage Mar- Mar- inc or percentage
08 09 dec 09 10 dec
INCOME :

Operating Income 187.47 191.39 -3.92 -2.091 191.39 244.12 -52.73 -27.5511

Other Income 0.2 0.35 -0.15 -75 0.35 5.16 -4.81 -1374.29

Stock Adjustment 0 0 0 #DIV/0! 0 0 0 #DIV/0!

Total Income 187.67 191.74 -4.07 -2.1687 191.74 249.28 -57.54 -30.0094

EXPENDITURE : 0 #DIV/0! 0 #DIV/0!

Interest & Financial 77.32 97.82 -20.5 -26.5132 97.82 137.22 -39.4 -40.2781
Charges

Operating & 69.72 58.46 11.26 16.15032 58.46 68.05 -9.59 -16.4044
Administrative
Expenses
Less: Preoperative 0 0 0 #DIV/0! 0 0 0 #DIV/0!
Expenditure
Capitalised
Profit before 40.63 35.46 5.17 12.72459 35.46 44.01 -8.55 -24.1117
Depreciation & Tax

Depreciation 1.32 4.38 -3.06 -231.818 4.38 1.68 2.7 61.64384

Profit Before Tax 39.31 31.08 8.23 20.93615 31.08 42.33 -11.25 -36.1969

Tax 10.53 4.71 5.82 55.27066 4.71 8.13 -3.42 -72.6115

Profit After Tax 28.78 26.37 2.41 8.373871 26.37 34.2 -7.83 -29.6928

Adjustment below 0 0 0 #DIV/0! 0 0 0 #DIV/0!


net profit

P & L Balance 49.91 55.36 -5.45 -10.9197 55.36 55.09 0.27 0.487717
brought forward

Appropriations 23.33 26.64 -3.31 -14.1877 26.64 85.01 -58.37 -219.107

P & L Balance 55.36 55.09 0.27 0.487717 55.09 4.28 50.81 92.23089
carried down

Equity Dividend 15.02 22.48 -7.46 -49.6671 22.48 75.08 -52.6 -233.986

Preference Dividend 0 0.03 -0.03 #DIV/0! 0.03 0 0.03 100

Corporate Dividend 2.55 1.22 1.33 52.15686 1.22 6.51 -5.29 -433.607
Tax
Equity Dividend 40 60 -20 -50 60 200 -140 -233.333
(%)
Earning Per Share 3.5 3.35 0.15 4.285714 3.35 3.69 -0.34 -10.1493
(Rs.)
Book Value 180.08 180.96 -0.88 -0.48867 180.96 174.5 6.46 3.56985
According to the database 14 Jan

• Total 1,524 clients activated during current month out of which 216
clients activated today, Activation Team activated 145 clients.

• Activation Team contributes 64.11% of total clients activated for the


month.
• Sales HNI team done 302 activations out of 1,524 account activated in
current month, Sub broker done 133 activations in Jan 2011.

• 43.16% clients traded till date out of our total client base

STATISTICAL TOOLS
CHI-SQUARE TEST

To check whether the Clients satisfied with the service rendered by the
company
Step (i):-

NULL HYPOTHESIS (Ho)

Ho → There is significant relationship between the age and Satisfaction level of


the client.

ALTERNATIVE HYPOTHESIS (H1)


H1→ There is no significant relationship between the age and Satisfaction level
of the customer

Step (ii):-

OBSERVED FREQUENCY

Employees HIGHLY SATISFIED NEITHER DISSATISFIED Row


Involvement SATISFIED SATISFIED Total
→ NOR
AGE ↓ DISSATISFIED
ABOVE 20 5 5 3 2 15
30 - 40 2 10 13 1 26
40 - 50 5 3 2 12 22
Above 50 7 2 2 6 17
Column 19 20 20 21 80/80
Total

Step (iii):-

EXPECTED FREQUENCY:

E= Row total × column total

Grand Total
3.5625 3.75 3.75 3.9375
6.175 6.5 6.5 0.325
5.225 5.5 5.5 5.775
4.0375 4.25 4.25 4.4625

Step (iv):-
TABLE CALCULATED:-
OF EF Oi-Ei (Oi-Ei)2 (Oi-Ei)/Ei
(Oi) (Ei)
5 3.562 1.4375 2.066406 0.403509
5 5 1.25 1.5625 0.333333
3 3.75 -0.75 0.5625 -0.2
2 3.75 -1.9375 3.753906 -0.49206
2 3.937 -4.175 17.43063 -0.67611
10 5 3.5 12.25 0.538462
13 6.175 6.5 42.25 1
1 6.5 0.675 0.455625 2.076923
5 6.5 -0.225 0.050625 -0.04306
3 0.325 -2.5 6025 -0.45455
2 5.225 -3.5 12.25 -0.63636
12 5.5 6.225 38.75063 1.077922
7 5.5 2.9625 8.776406 0.733746
2 5.775 -2.25 5.0625 -0.52941
2 4.037 -2.25 5.0625 -0.52941
6 5 1.5375 2.363906 0.344538
4.25
4.25
4.462
5
Total 2.947461

Step (v):-
Degree of freedom = (c-1) (R-1)
= (4-1) (4-1)
= (3) (3)
=9

Total tabulated value at 5% level of significance = 16.919


Calculated value = 2.947461
ψ2 11.13 <16.919

INFERENCE:-

At 9 degree of freedom 5% level of significance, the table value is 16.919.


Since calculated value is lesser than table value, Null Hypothesis (Ho) is
accepted

Therefore, it is observed that, there is significant relationship between age


and Satisfaction level of the client.
.
CHAPTER –VI
FINDINGS

FINDINGS

• Mostly the revenue is generated by client activation.


• In the month of January 64.11% of the revenue was contributed
from the client activation team
• Most of the clients lack knowledge in share market due to which
they remain dormant
• For 3500 clients there are only 2 client activators due to which
the client activators cannot provide their maximum service.
• Due to lack of client service many of the efficient clients close
their account which reduces the revenue of the company
• Most of the efficient clients whose investment generates revenue
to the company are above the age group of 30 and they also very
determinately take part in the trading activity.
• Client activation is a new concept which has been started as
forming a new team in Edelweiss from the month of June
• This client activation has in turn increased the revenue of the
Edelweiss.
• It is found from the table that42.5% of the clients have stock
holdings in other company and 57.5% of the clients have
account only in Edelweiss which means that more number of
respondents go for Edelweiss than any other company due to its
ADB plan.
• It is found that 26.25% of the clients are dissatisfied with the
service rendered by the Edelweiss.
• Separate training team can be formed to educate the respondents
about share markets and on online trading because it is inferred
from the table that52.5% of the clients lack knowledge about
share market.
• It is studied from that 55% of the clients go for online trading
which me4ans that online trading is been implemented
effectively in Eelweiss.
• It is observed from the table that 82.5% of the clients are
interested in trading and 17.5% of the clients are not interested
in trading which means that most of the clients are highly
investing in shares with the expectation of high returns.
CHAPTER -VII
SUGGESTIONS

SUGGESTIONS
1. Company can Recruit some more people for client activation which
increases the revenue of the company
2. There should be a backup office in order to look after the queries of the
clients.
3. It is highly recommended to reduce the Brokerage rate which is also very

high when compared to that of other share Broking company.


4. The training about the share market should be given to all required clients
individually as per their convienience.
CONCLUSION

CONCLUSION
The client activation is an important aspect of any company which plays a
major role in increasing the revenue of the company. This Project “A STUDY
ON THE EFFECTIVENESS OF CLIENT ACTIVATION AND ITS
FINANCIAL IMPACT AT EDELWEISS BROKING LIMITED “ aims at
determining the revenue generated by the client activation team and also to
evaluate ehe effectiveness of online trading education given to the clients.
BIBLIOGRAPHY
BIBLIOGRAPHY

S.NO. BOOK AUTHOR PUBLISHER


1 Research Methodology C.R.Kothari Vishwaprakas
2 Security Analysis And The ICFAI Nagar
Portfolio Management university
3 Security Analysis And Fischer Donald TMGH
Portfolio Management
4 Security Analysis And Punithavathy Vikas
Portfolio Management Pandian
5 Security Analysis And M.N Mishra Himalayan
Portfolio Management Publishing
6 Security Analysis And Avadhani V.A Himalayan
Portfolio Management Publishing

Websites:

WWW.GOOGLE.COM
WWW.EDELWEISS.IN
APPENDIX

QUESTIONNAIRE
My name is R.NANGAI. I am a student of MBA from VEL SRI RANGA
SANKU COLLEGE. As a part of my summer internship training from
EDELWEISS BROKING LIMITED, I am working on the Project “A STUDY
ON THE EFFECTIVENESS OF CLIENT ACTIVATION AND ITS
FINANCIAL IMPLICATION AT EDELWEISS BROKING LIMITED”.
This questionnaire is framed to know whether the client activation done is
increasing the revenue of the company facilitate the teaching and management
process in educational institutions.

NAME:-

AGE:-
a) 20-30 b) 31-40 c) 41-50 d) above 50

GENDER:-

1. When did you open the demat account?


a) Before March b) After March and between June c) June to December d) After
December

2. Are you interested in trading?


a) Yes b) no

3. Why are you remaining inactive?


a) Due to financial position
b) Due to share holdings in another company
c) Due to lack of knowledge in share market
d) Due to market downtrend

4. When will you start trading?


a) After Budget b) After 3 months c) After 6 months d) not yet decided

5. What kind of trading are you interested in?


a) Online trading b) Offline trading

6. In what type of investment are you interested?


a) Equity b) commodity c) Mutual funds

7. Do you require any training for trading?


a) Yes b) No
8. Do you hold the shares of any other stock brokering company?
a) Yes b) No

9. Have you choose any ADB subscription plan?


a) 1250 plan b) 2000 plan C) above 2000 Plan d) No plan

10. Are you satisfied with the service rendered by the activators in Edelweiss
Broking Limited?
a) Highly satisfied b) Satisfied c) Neither satisfied nor dissatisfied
d) Dissatisfied