1

A
Project Report
ON

CUSTOMER SATISFACTION OF

Demat Account
SUBMITTED BY S.N.KISHORE

OSMANIA UNIVERSITY

In partial fulfillment of the Award of MASTERS DEGREE IN BUSINESS ADMINISTRATION

K.G.R INSTITUTE OF TECHNOLOGY & MANAGEMENT

(Affiliated to Osmania University & Approved by AICTE) Rampally (Vill), Ghatkesar(Mdl), R.R DISTHyderabad 2010-12

COMPANY GUIDE P.SRINIVASARAO

FACULTY GUIDE SRINVASARAO

ANNEXURE-1

DECLARATION

I hereby declare that this Project Report titled CUSTOMER SATISFACTION ON DEMAT ACCOUNT submitted by me to the Department of Business Management, O.U., Hyderabad, is a bonfied work undertaken by me and it is not submitted to any other University or Institution for the award of any degree diploma / certificate or published any time before.

Name and Address of the Student Student

Signature of the

ANNEXURE II CERTIFICATION

This is to certify that the Project Report title CUSTOMER SATISFACTION ON DEMAT ACCOUNT submitted in partial fulfillment for the award of MBA Programme of Department of Business Management, O.U. Hyderabad, was carried out by S.N.KISHORE under my guidance. This has not been submitted to any other University or Institution for the award of any degree/diploma/certificate.

Name and address of the Guide

Signature of the Guide

ACKNOWLEDGEMENT

I take the opportunity to express my deep and sincere gratitude to the management of INDIA INFOLINE for their gesture of allowing me to under take this project and its various employees who lent their hand towards the compilation of this study.

The co-operation I received form the wide cross-section of employees of INDIA INFOLINE makes it difficult to style out individual for acknowledgement.

However, I am particularly indebted to

P.SRINIVASA RAO

(branch

manager, ) for allowing me to carry out my project work in the organization and for apprising me of the situation with necessary background and helping me to complete this project work.

5 I am also thankful for our college prinicipal

Mr.Dr SRINIVASARAO

and also

faculty of Marketing Mr SRINVASARAO for providing their guidance to

complete this project work.

I would like to thank for all those who helped me directly or indelicately for successful completion of my project.

PREFACE
The successful completion of this project was a unique experience for me because by visiting many place and interacting various person, I achieved a better knowledge about sales. The experience which I gained by doing this project was essential at this turning point of my career this project is being submitted which content detailed analysis of the research under taken by me.

The research provides an opportunity to the student to devote his/her skills knowledge and competencies required during the technical session.

The research is on the topic CUSTOMER SATISFACTION AT INDIAN INFOLINE Demat Account.

Acknowledgement
It was a great opportunity for us to work with INDIAN INFOLINE Ltd., pioneers in the field of Finance Industry. We are extremely grateful to all those who have shared their expertise and knowledge with me and without whom the completion of this project would have been virtually impossible. Firstly, we would like to thank our Company Guide P.SRINIVASA RAO Sir who has been a constant source of inspiration for us during the completion of this project. He gave us invaluable inputs during our endeavor to complete this project.

We are indebted to all staff of INDIAN INFOLINE Ltd for their valuable support and cooperation during the entire tenure of this project. Not to forget, all those who have kept our spirits surging and helped delivering our best.

We thank our faculty guide Mrs. SRINIVASA RAO who helped us out at every critical situation that We faced in our project and gave us her valuable advice to solve problems.

We want to give our special thanks to all members of KGRITM, for providing us opportunity to work on this project with this great organization. At last We would like to thank all the respondents met in the preparation, who gave their valuable time to provide us required information and their honest support to complete our project in time.

CERTIFICATE OF COMPLETION

This is certify that the Final Project report entitled Demat Account submitted Summer Internship report of the requirement for the degree of MBA, is a work carried out by S.N.KISHORE - HT.NO 225610672061 under my supervision and guidance.

Comapany Guide: (_______________________)

CONTENTS

Pg .no

Chapter-1
Introduction product profile Limitations of the study 9 17 27 55

Chapter-II
Objective&scope of study

Chapter-III
Company profile Research and methodology

56

chapter-IV
Data analysis& interptetation

64

Chapter-v
Findings Suggestions Annexure Chapter-VI Bibliography 76

introduction
Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years ago. The earliest records of security dealings in India are meager and obscure. The East India Company was the dominant institution in those days and business in its loan securities used to be transacted towards the close of the eighteenth century. By 1830's business on corporate stocks and shares in Bank and Cotton presses took place in Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers recognized by banks and merchants during 1840 and 1850. The 1850's witnessed a rapid development of commercial enterprise and brokerage business attracted many men into the field and by 1860 the number of brokers increased into 60. In 1860-61 the American Civil War broke out and cotton supply from United States of Europe was stopped; thus, the 'Share Mania' in India begun. The number of brokers increased to about 200 to 250. However, at the end of the American Civil War, in 1865, a disastrous slump began (for example, Bank of Bombay Share which had touched Rs 2850 could only be sold at Rs. 87). In 1887, they formally established in Bombay, the "Native Share and Stock Brokers' Association" (which is alternatively known as "The Stock Exchange"). In 1895, the Stock Exchange acquired a premise in the same street and it was inaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated.

10

Thus in the same way, gradually with the passage of time number of exchanges were increased and at currently it reached to the figure of 24 stock exchanges.

TRANSACTION CYCLE:

Decision to trade

Placing Order

Funds or Securities

Transaction Cycle

Trade Execution

Settlement of trades

Clearing of Trades

A person holding assets (Securities/Funds), either to meet his liquidity needs or to reshuffle his holdings in response to changes in his perception about risk and return of the assets, decides to buy or sell the securities. He selects a broker and instructs

11

him to place buy/sell order on an exchange. The order is converted to a trade as soon as it finds a matching sell/buy order. At the end of the trade cycle, the trades are netted to determine the obligations of the trading members securities/funds as per settlement cycle. Buyer/seller delivers funds/ securities and receives securities/funds and acquires ownership of the securities. A securities transaction cycle is presented above. Just because of this Transaction cycle, the whole business of Securities and Stock Broking has emerged. And as an extension of stock broking, the business of Online Stock broking/ Online Trading/ E-Broking has emerged. At the end of the American Civil War, the brokers who thrived out of Civil War in 1874, found a place in a street (now appropriately called as Dalal Street) where they would conveniently assemble and transact business. In 1887, they formally established in Bombay, the "Native Share and Stock Brokers' Association" (which is alternatively known as The Stock Exchange "). In 1895, the Stock Exchange acquired a premise in the same street and it was inaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated. HISTORY OF ONLINE TRADING:

Online stock trading is very old concept for big institutions who trade thru private networks owned by Reuter's "Instinet" and a system called "Posit" since 1969. But it becomes internet based for lay men only in late 90s.

Funny, that actually idea was first time used by a company making Beer called "WIT beer" to help its shareholders trade its shares. Thats how "WIT Capital" was born which is considered pioneer of this concept. It was made mainstream and household name by a offshoot of Charles Schwab & Co called eSchwab which is used by millions of people in USA. Lot of NRI's i know play in US stock market even when they come to India for holidays via website of eSchwabe.

12

There are other serious players like E*trade, DATEK online etc. All this companies ask you to start account with US $5000 and you can buy and sell stock using these funds. They also issue you a check book which you can use to make payments from this account. Or use their ATM card to withdraw cash from your stock trading account.

Today practically every big name brokerage firm offers online stock trading as it reduces their costs. Earlier they had army of brokers on phone with clients executing trade, which is done by computers accepting orders from clients directly. This firm now offers human access to high net worth accounts, and to rest at charge per trade.

E- Broking - A small beginning:

You have some money to dabble with. Trading shares on BSE/NSE has always been your dream. When will you ever find the time? And besides, the hassle of finding a broker is not easy. Realizing there is untapped market of investors who want to be able to execute their own trades when it suits them, brokers have taken their trading rooms to the Internet. Known as online brokers, they allow you to buy and sell shares via Internet.

There are 2 types of online trading service: discount brokers and full service online broker. Discount online brokers allow you to trade via Internet at reduced rates. Some provide quality research, other dont. Full service online brokerage is linked to existing brokerages. These brokers allow their clients to place online orders with the option of talking/ chatting to brokers if advice is needed. Brokerage rates here are higher. 5Paisa.com, ICICIDirect.com, IndiaBulls.com, INDIAN INFOLINE.com, Geojit securities.com, HDFCsec.com, Tatatdw.com, Kotakstreet.com are some of the online broking sites in India. With Net trading in securities and rapid consolidation between multiple stock exchanges, the international securities marketplace is fast becoming a "global village" through the creation of a universal virtual equity market.

13

Compared to the Western countries, online trading is still in its infancy in India. With trading turnover at around Rs. 10 crores per day from online trading compared to a combined gross turnover of around Rs. 9000-10,000 crores handled by the BSE and NSE together, online trading has a long way to go.

INTERNET TRADING IN INDIA: In the past, investors had no option but to contact their broker to get real time access to market data. The Net brings data to the investor on line and net broking enables him to trade on a click. Now information has become easily accessible to both retail as well as big investors.

The development of broking in India can be categorized in 3 phases: 1. Stock brokers offering on their sites features such as live portfolio manager, live quotes, market research and news to attract more investors. 2. Brokers offering on line broking and relationship management by providing and offering analysis and information to investors during broking and non-broking hours based on their profile and needs, that is, customized services. 3. Brokers (now e-brokers) will offer value management or services such as initial public offerings on line, asset allocation, portfolio management, financial planning, tax planning, insurance services and enable the investors to take better and wellconsidered decisions.

In the US, 82 per cent of the deals are done on line. The European on line broking market is expected to be of $8 billions and is likely to raise five fold by 2002. In India, presently Internet trading can take place through the order routing system, which will route client orders to exchanges trading systems for execution of trades on stock exchanges (NSE and BSE). This will also require interface with banks to facilitate instant cash debit or credit and the depository system for debit or credit of securities.

OBJECTIVES OF INTERNET TRADING

14

Increase transparency in the markets. Enhance market quality through improved liquidity, by increasing quote continuity and market depth. Reduce settlement risks due to open trades, by elimination of mismatches. Provide management information system (MIS). Introduce flexibility in system, to handle growing volumes easily and to support nationwide expansion of market activity. Besides, through Internet trading three fundamental objectives of securities regulation can be easily achieved, these are: Investor protection, creation of a fair and efficient market and, reduction of the systematic risks.

Other leading cities in stock market operations:

Ahmedabad gained importance next to Bombay with respect to cotton textile industry. After 1880, many mills originated from Ahmedabad and rapidly forged ahead. As new mills were floated, the need for a Stock Exchange at Ahmedabad was realized and in 1894 the brokers formed "The Ahmedabad Share and Stock Brokers' Association". What the cotton textile industry was to Bombay and Ahmedabad, the jute industry was to Calcutta. Also tea and coal industries were the other major industrial groups in Calcutta. After the Share Mania in 1861-65, in the 1870's there was a sharp boom in jute shares, which was followed by a boom in tea shares in the 1880's and 1890's; and a coal boom between 1904 and 1908. On June 1908, some leading brokers formed "The Calcutta Stock Exchange Association". In the beginning of the twentieth century, the industrial revolution was on the way in India with the Swadeshi Movement; and with the inauguration of the Tata Iron and Steel Company Limited in 1907, an important stage in industrial advancement under Indian enterprise was reached.Indian cotton and jute textiles, steel, sugar, paper and flour mills and all companies generally enjoyed phenomenal prosperity, due to the First World War. In 1920, the then demure city of Madras had the maiden thrill of a stock exchange functioning in its midst, under the name and style of "The Madras Stock Exchange" with 100 members. However, when boom faded, the number of members stood reduced from 100 to 3, by 1923, and so it went out of existence. In 1935, the stock market activity improved, especially in South India where there was a rapid increase in the number of textile mills and many plantation companies were floated. In 1937, a stock exchange was once again organized in Madras -

15

Madras Stock Exchange Association (Pvt) Limited. (In 1957 the name was changed to Madras Stock Exchange Limited). Lahore Stock Exchange was formed in 1934 and it had a brief life. It was merged with the Punjab Stock Exchange Limited, which was incorporated in 1936.

Indian Stock Exchanges - An Umbrella Growth:

The Second World War broke out in 1939. It gave a sharp boom, which was followed by a slump. But, in 1943, the situation changed radically, when India was fully mobilized as a supply base. On account of the restrictive controls on cotton, bullion, seeds and other commodities, those dealing in them found in the stock market as the only outlet for their activities. They were anxious to join the trade and numerous others swelled their number. Many new associations were constituted for the purpose and Stock Exchanges in all parts of the country were floated. The Uttar Pradesh Stock Exchange Limited (1940), Nagpur Stock Exchange Limited (1940) and Hyderabad Stock Exchange Limited (1944) were incorporated. In Delhi two stock exchanges - Delhi Stock and Share Brokers' Association Limited and the Delhi Stocks and Shares Exchange Limited - were floated and later in June 1947, amalgamated into the Delhi Stock Exchange Association Limited.

RANGE OF PRODUCT AND SERVICES:

Market Size: Growth of Online Brokerage market:

In five years of its existence in India, online broking has grown to account for a tenth of the total trading volumes. If the numbers are considered for only the retail segments, the growth is starker. Almost half of the Rs 5,000 crore-6,000 crore daily market volumes on the NSE are accounted for by non-retail entities such as foreign institutional investors, domestic institutions, mutual funds and arbitrage traders. Institutions aren't online customers anyway. Of the rest of the retail segment, current estimates suggest that online broking's reach is close to 30 per cent.

16

As of September this year, there were 11.7 lakhs Internet trading accounts registered with the NSE, of which roughly 9.5 lakhs are unique users. It's still a small proportion of the estimated 3 crore Internet users in the country. As more surfers take to trading online, analysts expect their number to keep doubling every year until 30-40 per cent of India's overall trades are done online, as is the case in some mature Internet markets like South Korea's.

The Internet's effect here has more to do with the bandwidth it has created for both brokers and clients. Banga, director of India bulls offers an example. "Traders from Ajmer use our online platform. It would otherwise have been prohibitively lossmaking to open a branch there." Thanks to the new channel, volumes are growing faster in the non-metros, where transparency is low in offline trading. "These customers were made to pay higher charges by small brokers, since they weren't aware of the market rates," says Vikash Shankar of INDIAN INFOLINE.com.That is one of the reasons why more than 60 per cent of INDIAN INFOLINEs online trading turnover comes from non-metros.

Formation of the National Stock Exchange (NSE):

With the liberalization of the Indian economy, it was found inevitable to lift the Indian stock market trading system on par with the international standards. On the basis of the recommendations of high-powered Pherwani Committee, the National Stock Exchange was incorporated in 1992 by Industrial Development Bank of India, Industrial Credit, and Investment Corporation of India, Industrial Finance Corporation of India, all Insurance Corporations, selected commercial banks and others.

Trading at NSE can be classified under two broad categories:

(a) Wholesale debt market and (b) Capital market.

17

Wholesale debt market operations are similar to money market operations institutions and corporate bodies enter into high value transactions in financial instruments such as government securities, treasury bills, public sector unit bonds, commercial paper, certificate of deposit, etc.

There are two kinds of players in NSE:

(a) Trading members and (b) Participants. Recognized members of NSE are called trading members who trade on behalf of themselves and their clients. Participants include trading members and large players like banks who take direct settlement responsibility. Trading at NSE takes place through a fully automated screen-based trading mechanism, which adopts the principle of an order-driven market. Trading members can stay at their offices and execute the trading, since they are linked through a communication network. The prices at which the buyer and seller are willing to transact will appear on the screen. When the prices match the transaction will be completed and a confirmation slip will be printed at the office of the trading member.

NSE has several advantages over the traditional trading exchanges. They are as follows:

NSE brings an integrated stock market trading network across the nation. Investors can trade at the same price from anywhere in the country since inter-market operations are streamlined coupled with the countrywide access to the securities. Delays in communication, late payments and the malpractices prevailing in the traditional trading mechanism can be done away with greater operational efficiency and informational transparency in the stock market operations, with the support of total computerized network.

Unless stock markets provide professionalized service, small investors and foreign investors will not be interested in capital market operations. And capital market being one of the major sources of long-term finance for industrial projects, India

18

cannot afford to damage the capital market path. In this regard NSE gains vital importance in the Indian capital market system.

About IIFL
The IIFL (India Infoline) group, comprising the holding company, India Infoline Ltd (NSE: INDIAINFO, BSE: 532636) and its subsidiaries, is one of the leading players in the Indian financial services space. IIFL offers advice and execution platform for the entire range of financial services covering products ranging from Equities and derivatives, Commodities, Wealth management, Asset management, Insurance, Fixed deposits, Loans, Investment Banking, Gold bonds and other small savings instruments. IIFL C.E.O. recently received an in-principle approval for Securities Trading and Country Head Clearing memberships from Singapore Exchange (SGX) paving the way for IIFL to become the first Indian brokerage to get a membership of the SGX. IIFL also received membership of the Colombo Stock Exchange becoming the first foreign broker to enter Sri Lanka. IIFL owns and manages the website, www.indiainfoline.com, which is one of Indias leading online Cluster Head destinations for personal finance, stock markets, economy and business. Regional Head

Branch Head

City Sales

HIERARCHY

Manager

Dealer Sales Executives

1........

.2

3.

4..

Trainee

19

INDIAN INFOLINE has dedicated research teams for fundamental and technical research. Which constantly track the pulse of the market and provide timely investment advice free of cost to its clients which has a strike rate of 70-80%.

20

Weakness:
Localized presence due to insufficient investments for country wide expansion.

DISCUSSION ON TRAINING
Students work profile(role and responsibilities) :
I worked there with INDIAN INFOLINE LTD. with a profile of sales trainee. This profile offers me to understand the need of customer and provide them the best deal possible with maximization of the profit, both for the company as well as for the customer.

The most important aspect for the role of trainee is trust. So far fulfillment of the targets one needs to:

Capitalize on the old and loyal clientage which can be building slowly by advising people in the best possible way. Generating new leads through various activities.

Generation of leads :
Since I was new in the field so I had to start from scratch and generate new leads to sustain in the market.

Cold calling is one of the trusted ways of getting to the customers without meeting them. Although the rate of conversion remained very less, for cold calling the quality and accent remains a very important criterion. This activity gives me mixed result. I often got

21

success and generated many leads through it but it also landed me in awkward position where the customer were in different mood and made us hear words for which a marketer should be always prepared to hear. Corporate calls always remained more difficult to crack with respect to retail sector.

The corporate were the most difficult and most temping to get the business from. It took me one one day to crack Hi-tech Gears. At INDIAN INFOLINE LTD. after getting the product knowledge in the first week at the branch I was also allotted distributor to work with. In the initial phase I was accompanied by more experienced staff. After I became known to the market and procedure I started attending calls alone only.

After the third week my performance also improved and I was able to get close to the targets, though it looked difficult to achieve in the beginning. To get awareness of the every product I attended diversified calls. This helped me to implement cross selling to get better results.

LIMITATIONS:
Cold Calling:

1.

Voice and accent plays a major role.

The right time to call a customer cannot be decided, as the customer may in a different mood at the time of calling.

Time consuming

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Less success rate

2. Corporate:

Time consuming

Contacts with higher authorities play a major role

Description of live experience :

I was supposed to use the database provided by the company to make cold calls or by directly meeting people to get new leads.

While making cold calls, we need to have:

Good Communication Skills (Voice quality is clear and articulate)

Persistent and able to bounce back from rejection

Good organizational skills.

Ability to project a telephone personality (Enthusiasm, friendliness)

23

Flexibility: can adapt to different types of clients and new situations.

Using a good database is very essential.

Eighty percent of our business comes from 20 percent of our customers" is a frequent statement at any sales convention. There's hardly a sales executive who is not aware of the 80/20 rule.

While talking to customers, I analyze their needs. Whether they want to go for investment purpose or insurance or both. Suggest them the plan that best suits them. If they agree to it then either we send across the agents to close the deal or close it themselves.

24

Problems faced while selling products: Customer dissatisfied with the services.

People fear that INDIAN INFOLINE Being a Private company and a new entrant may be able to sustain or not. Past experience, word of mouth. Misguidance by agents. People do not want insurance products. Lack of knowledge and less awareness about demat account. People risk appetite is very low, so they are afraid of mutual fund as well

. History & Milestones

1995 Commenced operations as an Equity Research firm 1997 Launched research products of leading Indian companies, key sectors and the economy Client included leading FIIs, banks and companies.

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1999 Launched www.indiainfoline.com 2000 Launched online trading through www.5paisa.com Started distribution of life insurance and mutual fund 2003 Launched proprietary trading platform Trader Terminal for retail customers 2004 Acquired commodities broking license Launched Portfolio Management Service 2005 Maiden IPO and listed on NSE, BSE 2006 Acquired membership of DGCX Commenced the lending business 2007 Commenced institutional equities business under IIFL Formed Singapore subsidiary, IIFL (Asia) Pte Ltd 2008

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Launched IIFL Wealth Transitioned to insurance broking model 2009 Acquired registration for Housing Finance SEBI in-principle approval for Mutual Fund Obtained Venture Capital license 2010 Received in-principle approval for membership of the Singapore Stock Exchange Received membership of the Colombo Stock Exchange

Mr. Nirmal Jain Chairman, India Infoline Ltd. Mr. Nirmal Jain is the founder and Chairman of India Infoline Ltd. He is a PGDM (Post Graduate Diploma in Management) from IIM (Indian Institute of Management) Ahmedabad, a Chartered Accountant and a rank-holder Cost Accountant. His professional track record is equally outstanding. He started his career in 1989 with Hindustan Lever Limited, the Indian arm of Unilever. During his stint with Hindustan Lever, he handled a variety of responsibilities, including export and trading in agro-

27 commodities. He contributed immensely towards the rapid and profitable growth of Hindustan Levers commodity export business, which was then the nations as well as the Companys top priority. He founded Probity Research and Services Pvt. Ltd. (later re-christened India Infoline) in 1995; perhaps the first independent equity research Company in India. His work set new standards for equity research in India. Mr. Jain was one of the first entrepreneurs in India to seize the internet opportunity, with the launch of www.indiainfoline.com in 1999. Under his leadership, India Infoline not only steered through the dotcom bust and one of the worst stock market downtrends but also grew from strength to strength.

Mr. R. Venkataraman Managing Director , India Infoline Ltd. Mr. R Venkataraman, Co-Promoter and Managing Director of India Infoline Ltd, is a B.Tech (electronics and electrical communications engineering, IIT Kharagpur) and an MBA (IIM Bangalore). He joined the India Infoline Board in July 1999. He previously held senior managerial positions in ICICI Limited, including ICICI Securities Limited, their investment banking joint venture with J P Morgan of US, BZW and Taib Capital Corporation Limited. He was also the Assistant Vice President with G E Capital Services India Limited in their private equity division, possessing a varied experience of more than 19 years in the financial services sector.

Mr. Kranti Sinha Independent Director , India

28 Infoline Ltd. Mr. Kranti Sinha Board member since January 2005 completed his masters from the Agra University and started his career as a Class I Officer with Life Insurance Corporation of India. He served as the Director and Chief Executive of LIC Housing Finance Limited from August 1998 to December 2002 and concurrently as the Managing Director of LICHFL Care Homes (a wholly-owned subsidiary of LIC Housing Finance Limited). He retired from the permanent cadre of the Executive Director of LIC; served as the Deputy President of the Governing Council of Insurance Institute of India and as a member of the Governing Council of National Insurance Academy, Pune apart from various other such bodies. Mr. Sinha is also on the Board of Directors of Hindustan Motors Limited and Cinemax (India) Limited.

Mr. A. K. Purwar Independent Director , India Infoline Ltd. Mr. Purwar is currently the Chairman of IndiaVenture Advisors Pvt. Ltd., investment manager to IndiaVenture Trust Fund I, the healthcare and life sciences focussed private equity fund sponsored by the Piramal Group. He has also taken over as the Chairman of IL & FS Renewable Energy Limited in March 2008 and India Infoline Investment Services Ltd in November 2009. He is working as Independent Director in leading companies in Telecom, Steel, Textiles, Power, Auto components, Renewable Energy, Engineering Consultancy, Financial Services and Healthcare Services. He is an Advisor to Mizuho Securities in Japan and is also a member of Advisory Board for Institute of Indian Economic Studies (IIES), Waseda University, Tokyo, Japan. Mr. Purwar was the Chairman of State Bank of India, the largest bank in the country from November 02 to May 06 and held several important and critical positions like Managing Director of State Bank of Patiala, Chief Executive Officer of the Tokyo branch covering almost the entire range of commercial banking operations in his illustrious career at the bank from 1968 to 2006. Mr. Purwar also worked as Chairman of Indian Bank Association during 2005 2006. Mr. Purwar has received the CEO of the year Award from the Institute for Technology & Management (2004);

29 Outstanding Achiever of the year Award from Indian Banks Association (2004); Finance Man of the Year Award by the Bombay Management Association in 2006.

Overview of Demat Account :

Demat account allows you to buy, sell and transact shares without the endless paperwork and delays. It is also safe, secure and convenient. In India, a demat account, the abbreviation for dematerialized account, is a type of banking account which dematerializes paper-based physical stock shares. The dematerialized account is used to avoid holding physical shares: the shares are bought and sold through a stock broker. This account is popular in India. The Securities and Exchange Board of India (SEBI) mandates a demat account for share trading above 500 shares. As of April 2006, it became mandatory that any person holding a demat account should possess a Permanent Account Number (PAN), and the deadline for submission of PAN details to the depository lapsed on January 2007.

Is a demat account a must?

Now a day, practically all trades have to be settled in dematerialized form. Although the market regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of up to 500 shares to be settled in physical form, nobody wants physical shares any more. So a demat account is a must for trading and investing.

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Why demat?
The demat account reduces brokerage charges, makes pledging/hypothecation of shares easier, enables quick ownership of securities on settlement resulting in increased liquidity, avoids confusion in the ownership title of securities, and provides easy receipt of public issue allotments. It also helps you avoid bad deliveries caused by signature mismatch, postal delays and loss of certificates in transit. Further, it eliminates risks associated with forgery, counterfeiting and loss due to fire, theft or mutilation. Demat account holders can also avoid stamp duty (as against 0.5 per cent payable on physical shares), avoid filling up of transfer deeds, and obtain quick receipt of such benefits as stock splits and bonuses.

What is dematerialization?
Dematerialization is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form and credited into the investors account with his/her DP.

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Why DEMAT a/c likes a BANK a/c?

Just as you have to open an a/c with a bank if you want to save your money, make cheque payments etc, you need to open a demat a/c if you want to buy or sell stocks. So it just like a bank a/c where actual money replaced by shares. Example : lets say your portfolio has 100 of SATYAM, 200 of IBM and 120 of TCS shares. All these will show in youre a/c. so you dont have to possess any physical certificate that you own these shares. They all are held electronically in youre a/c.

Steps involved in opening a demat account :

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First an investor has to approach a DP and fill up an account opening form. The account opening form must be supported by copies of any one of the approved documents to serve as proof of identity (POI) and proof of address (POA) as specified by SEBI. Besides, production of PAN card in original at the time of opening of account has been made mandatory effective from April 01, 2006. All applicants should carry original documents for verification by an authorized official of the depository participant, under his signature.

Further, the investor has to sign an agreement with DP in a depository prescribed standard format, which details rights and duties of investor and DP. DP should provide the investor with a copy of the agreement and schedule of charges for their future reference. The DP will open the account in the system and give an account number, which is also called BO ID (Beneficiary Owner Identification number). The DP may revise the charges by giving 30 days notice in advance. SEBI has rationalized the cost structure for dematerialization by removing account opening charges, transaction charges for credit of securities, and custody charges vide circular dated January 28, 2005.

Further, SEBI has vide circular dated November 09, 2005 advised that with effect from January 09, 2006, no charges shall be levied by a depository on DP and consequently, by a DP on a Beneficiary Owner (BO) when a BO transfers all the securities lying in his account to another branch of the same DP or to another DP of the same depository or another depository, provided the BO Account/s at transferee DP and at transferor DP are one and the same, i.e. identical in all respects.

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In case the BO Account at transferor DP is a joint account, the BO Account at transferee DP should also be a joint account in the same sequence of ownership.

Rights:
1. You can open more than one depository account in the same name with single DP/ multiple DPs.

2. No minimum balance is required to be maintained in a depository account.

3. You can give a onetime standing instruction to your DP to receive all the credits coming to your depository account automatically.

DEMAT Benefits?

A safe and convenient way to hold securities. immediate transfer of securities. No stamp duty on transfer of securities(0.5 % on physical shares). Elimination of risks associated with physical certificates such as bad delivery, fake securities , delays , theft etc. Reduction in paper work. Reduction in transaction cost.

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No odd lot problem , even one share can be sold.

Nomination facility.

Holding investment in equity and debt instruments in a single account.etc.

DEMAT Conversion :1.

Surrender the certificates of physical shares dematerialization to your depository participants.

for

2.

Depository participant intimates depository of the request through the system. Depository participant submit the certificates to the registrar to the issuer company. Registrar confirms depository. the dematerialization request from

3.

4.

5.

After dematerializing the certificates, registrar updates accounts and informs depository of the completion of dematerialization. Depository updates its accounts and informs the depository participant. Depository participant updates demat a/c of the investor.

6.

7.

What is a Depository? A depository is an organisation which holds securities of investors in electronic form at the request of the investors through a registered Depository Participant. It also provides services related to transactions in securities.

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SEBI registered depositorys :NSDL :- National securities depository limited CDSL :- Central depository services limited Minimum net worth required for a depository is 100 crores NSDL: Although India had a vibrant capital market, which is more than a century old, the paper-based settlement of trades caused substantial problems like bad delivery and delayed transfer of title till recently. The enactment of Depositories Act in August 1996 paved the way for establishment of NSDL, the first depository in India. This depository promoted by institutions of national stature responsible for economic development of the country has since established a national infrastructure of international standard that handles most of the trading and settlement in dematerialized form in Indian capital market. Using innovative and flexible technology systems, NSDL works to support the investors and brokers in the capital market of the country. NSDL aims at ensuring the safety and soundness of Indian marketplaces by developing settlement solutions that increase efficiency, minimize risk and reduce costs. At NSDL, we play a quiet but central role in developing products and services that will continue to nurture the growing needs of the financial services industry. In the depository system, securities are held in depository accounts, which is more or less similar to holding funds in bank accounts. Transfer of ownership of securities is done through simple account transfers. This method does away with all the risks and hassles normally associated with paperwork. Consequently, the cost of transacting in a depository environment is considerably lower as compared to transacting in certificates. DEPOSITORY PARTICIPANTS:

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A Depository Participant (DP) is described as an agent of the depository. They are the intermediaries between the depository and the investors. The relationship between the DPs and the depository is governed by an agreement made between the two under the Depositories Act. In a strictly legal sense, a DP is an entity that is registered as such with SEBI under the provisions of the SEBI Act. As per the provisions of this Act, a DP can offer depository-related services only after obtaining a certificate of registration from SEBI. SEBI (D&P) Regulations, 1996 prescribe a minimum net worth of Rs.50 lakh for stockbrokers, R&T agents and non-banking finance companies (NBFC), for granting them a certificate of registration to act as DPs. If a stockbroker seeks to act as a DP in more than one depository, he should comply with the specified net worth criterion separately for each such depository. No minimum net worth criterion has been prescribed for other categories of DPs. However, depositories can fix a higher net worth criterion for their DPs. NSDL requires a minimum net worth of Rs.100 lakh to be eligible to become a DP as against Rs.50 lakh prescribed by SEBI (D&P) Regulations. Instruments : The changes in the regulatory framework of the capital market and fiscal policies have also resulted in newer kinds of financial instruments (securities) being introduced in the market. Also, a lot of financial innovation by companies who are now permitted to undertake treasury operations has resulted in newer kinds of instruments - all of which can be traded being introduced. The variations in all these instruments depend on the tenure, the nature of security, the interest rate, the collateral security offered and the trading features, etc Debentures Bonds Preference Share Equity Shares

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Government securities Capital Market Processes Initial Public Offering (IPO) Private Placement Preferential Offer/Rights Issue Private Placement Benefits of Depository System: In the depository system, the ownership and transfer of securities takes place by means of electronic book entries. At the outset, this system rids the capital market of the dangers related to handling of paper. NSDL provides numerous direct and indirect benefits, like: Elimination of bad deliveries In the depository environment, once holdings of an investor are dematerialized, the question of bad delivery does not arise i.e. they cannot be held "under objection". In the physical environment, buyer was required to take the risk of transfer and face uncertainty of the quality of assets purchased. In a depository environment good money certainly begets good quality of assets. Elimination of all risks associated with physical certificates Dealing in physical securities have associated security risks of theft of stocks, mutilation of certificates, loss of certificates during movements through and from the registrars, thus exposing the investor to the cost of obtaining duplicate certificates and advertisements, etc. This problem does not arise in the depository environment.

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No stamp duty For transfer of any kind of securities in the depository. This waiver extends to equity shares, debt instruments and units of mutual funds.

Immediate transfer and registration of Securities In the depository environment, once the securities are credited to the investors account on pay out, he becomes the legal owner of the securities. There is no further need to send it to the company's registrar for registration. Having purchased securities in the physical environment, the investor has to send it to the company's registrar so that the change of ownership can be registered. This process usually takes around three to four months and is rarely completed within the statutory framework of two months thus exposing the investor to opportunity cost of delay in transfer and to risk of loss in transit. To overcome this, the normally accepted practice is to hold the securities in street names i.e. not to register the change of ownership. However, if the investors miss a book closure the securities are not good for delivery and the investor would also stand to loose his corporate entitlements.

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Faster settlement cycle

The exclusive demat segments follow rolling settlement cycle of T+2 i.e. the settlement of trades will be on the 2nd working day from the trade day. This will enable faster turnover of stock and more liquidity with the investor.

Faster disbursement of non-cash corporate benefits like rights, bonus, etc.

NSDL provides for direct credit of non-cash corporate entitlements to an investors account, thereby ensuring faster disbursement and avoiding risk of loss of certificates in transit.

Reduction in brokerage by many brokers for trading in dematerialized securities

Brokers provide this benefit to investors as dealing in dematerialized securities reduces their back office cost of handling paper and also eliminates the risk of being the introducing broker.

Reduction in handling of huge volumes of paper Periodic status reports to investors on their holdings and transactions, leading to better controls. Elimination of problems related to change of address of investor, transmission, etc
In case of change of address or transmission of demat shares, investors are saved from undergoing the entire change procedure with each company or registrar.

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Investors have to only inform their DP with all relevant documents and the required changes are effected in the database of all the companies, where the investor is a registered holder of securities.

Elimination of problems related to selling securities on behalf of a minor

A natural guardian is not required to take court approval for selling demat securities on behalf of a minor.

Ease in portfolio monitoring

Since statement of account gives a consolidated position of investments in all instruments.

Buying and Selling of Dematerialization

INTRODUCTION:
The procedure for buying and selling dematerialized securities is similar to the procedure for buying and selling physical securities. The difference lies in the process of delivery (in case of sale) and receipt (in case of purchase) of securities.

In case of purchase:

The broker will receive the securities in his account on the payout day.

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The broker will give instruction to its DP to debit his account and credit investors account.

Investor will give Receipt Instruction to DP for receiving credit by filling appropriate form. However one can give standing instruction for credit in to ones accounts that will obviate the need of giving Receipt Instruction every time.

In case of sale:-

The investor will give delivery instruction to DP to debit his account and credit the brokers account. Such instruction should reach the DPs office at least 24 hours before the pay-in as otherwise DP will accept the instruction only at the investors risk.

Rights
1. Dematerialized securities can be traded on those stock exchanges connected to NSDL. At present, NSE, BSE, CSE, DSE, LSE, BGSE, OTCEI, MSE, ISE & ASE are connected to NSDL. At these stock exchanges, two segments would be available to trade in dematerialized securities :

Unified (erstwhile physical) segment - In this segment delivery

obligation can be met by delivering dematerialized or physical securities at the option of the seller. However, for a select list of securities prescribed by SEBI, securities cannot be delivered in physical form in the unified segment, of stock exchanges connected to NSDL. This list presently covers 160 securities. This list has been expanded to cover a total of 200 securities with effect from January 17, 2000. Over a period, this list would cover all actively traded securities.

42
o

Exclusive demat segment - In this segment delivery obligation

can be met by delivering dematerialized securities only. Physical securities cannot be delivered in the exclusive demat segment.

Procedure
Trading in dematerialized securities is done through your broker just like trading in physical securities. After your broker executes the trade, your DP will help to deliver shares to your broker (in case you sell) on the basis of valid instruction given by you to your DP and receive shares from your broker (in case you buy) on basis of valid instruction given by your broker to his DP.

Buy dematerialized securities

1. You purchase securities in any of the stock exchanges connected to NSDL through a broker of your choice and make payment to your broker. Make sure you tell your broker you want only demat shares.

2. Broker arranges payment to clearing corporation/ clearing house of the stock exchange.

3. Broker receives credit in his clearing account with his DP on the pay-out day. He can immediately transfer these securities to your depository account, provided your account is already active.

4. Broker gives instructions to his DP to debit his clearing account and credit your depository account.

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5. You give instruction to your DP for receiving credit in your depository account. If you have given standing instruction to receive credits, no separate instruction for receiving credit will be required.

6. If the instructions match, your account with your DP is credited.

Sell dematerialized securities

1. You sell your dematerialized securities in any of the stock exchanges linked to NSDL through a broker of your choice.

2. You give instruction to your DP for debit of your depository account and credit of your brokers clearing member account at least 24 hours i.e. one working day prior to the pay-in date or before the deadline prescribed by your DP, so that your brokers clearing account is credited at the time arranged with him.

3. On the pay-in day, your broker gives instruction to his DP for delivery to clearing corporation/clearing house of the relevant stock exchange.

4. The broker receives payment from the clearing corporation / clearing house.

5. You

receive payment from the broker for the sale in the same manner you would receive payment for a sale in the physical mode.

Points To Remember
1. Trading continues to be through brokers. In case of any problem in execution of trade, contact your broker and if he fails to resolve the problem you may contact the stock exchange.

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2. When you buy securities through the stock exchange, your brokers clearing account is credited to the extent of the securities purchased, on receipt of instruction from clearing corporation/ clearing house of the stock exchange. Your depository account is credited only when your broker gives a delivery instruction to his DP. Securities are not directly credited to your account by the clearing corporation/ clearing house of the stock exchange. In case your broker does not give a delivery instruction, contact him or concerned stock exchange or SEBI. If your depository account is not credited, in spite of your broker giving valid instruction to his DP, contact the DP and if he fails to resolve the same you may contact NSDL.

3. When

you sell securities, you have to give a delivery instruction to your DP to transfer the securities to your brokers clearing account. They are not automatically debited from your account by NSDL or by the clearing corporation/ clearing house of the stock exchange. In case the DP defaults in executing your instruction, the DP is liable to compensate you for the loss incurred, provided your instruction was in order and has been submitted to the DP at least 24 hours i.e. one working day prior to the pay-in date or before the deadline prescribed by DP. In case the DP fails to resolve your problem, you can contact NSDL.

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Need for the Study

The need of the study arises because of the reason that a trainee must understand the company, its achievements and tasks, products and services and also to collect information about its competitors, its products and services offered. So that, after understanding and collecting information about the organization and its competitors, a trainee will be able to work well for the organization. From the study we have learned very much, about the company as well as the strategy of the customers, which helps us a lot at our working days.

Competitors

HDFC BANK is one of the leading Depository Participant (DP) in the country with over 8 Lac demat accounts.

HDFC Bank Demat services offers you a secure and convenient way to keep track of your securities and investments, over a period of time, without the hassle of handling physical documents that get mutilated or lost in transit.

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HDFC BANK is Depository participant both with National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL).

Features & Benefits :

As opposed to the earlier form of dealing in physical certificates with delays in transaction, holding and trading in Demat form has the following benefits:

Settlement of Securities traded on the exchanges as well as off market transactions.

Shorter settlements thereby enhancing liquidity.

Pledging of Securities.

Electronic credit in public issue.

Auto Credit of Rights / Bonus / Public Issues /Dividend credit through ECS.

Auto Credit of Public Issue refunds to the bank account.

No stamp duty on transfer of securities held in demat form.

No concept of Market Lots.

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Change of address, Signature, Dividend Mandate, registration of power of attorney, transmission etc. can be effected across companies held in demat form by a single instruction to the Depository Participant (DP).

Holding / Transaction details through Internet / email.

In case you need any more information or have any queries , feedback & complaints , you may please mail us at dphelp@hdfcbank.com

Secured & easy transaction processing

HDFC Bank Ltd provides convenient facility called 'SPEED-e' (Internet based transaction) whereby account holder can submit delivery instructions electronically through SPEED-e website (https://speede.nsdl.com). SPEED-e offers secured means of transaction processing eliminating preparation of instruction slips and submission of the same across the counter to the depository participant. The 'IDEAS' facility helps in viewing the current transactions and balances (holdings) of Demat account on Internet on real time basis.

Disclaimer: Whatever have been stated above are in the good interest of the Investor / Demat Applicants / holders to provide a brief picture about the depository system. You are requested go through the guidelines of the depositories before taking any further action. For detailed guidelines, you are requested to approach your nearest HDFC Bank branch. HDFC Bank will not be responsible for any misunderstanding / act based on the above. Also HDFC Bank might ask for additional information / documentation than what has been stated above to process your application / instruction.

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ICICI DIRECT

ICICI Direct (or ICICIDirect.com) is stock trading company of ICICI Bank. Along with stock trading and trading in derivatives in BSE and NSE, it also provides facility to invest in IPOs, Mutual Funds and Bonds.

Trading is available in BSE and NSE.

ICICI Direct offers 3 different online trading platforms to its customers.

Type of Account:

1. Share Trading Account: Share Trading Account by ICICI Direct is primarily for buying and selling of stocks in BSE and NSE. This account allows Cash Trading, Margin Trading,

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Margin PLUS Trading, Spot Trading, Buy Today Sell Tomorrow and Call and Trade on phone.

ICICIDirect.com website is the primary trading platform for this trading account. They also provide installable application terminal based application for high volume trader.

2. Wise Investment Account: 1. Online Mutual funds investment allows investor to invest on-line in around 19 Mutual Fund companies. ICICI Direct offers various options while investing in Mutual Funds like Purchase Mutual Fund, Redemption and switch between different schemes, Systematic Investment plans, Systematic withdrawal plan and transferring existing Mutual Funds in to electronic mode. This account also provides facility to invest in Government of India Bonds and ICICI Bank Tax Saving Bonds. 2. Active Trader account gives more personalized investment options to the investors. It allows investor to use online and offline stock trading. It also provides with independent market expertise and support through a dedicated Relationship Manager from ICICI.

Active Trader also provides commodity trading.

Brokerage and fees

Account opening fees : Rs 750/- (One time nonrefundable)

Brokerage: ICICIDirect.com brokerage varies on volume of trade and inclusive of demat transaction charges, service taxes and courier charges for contract notes. It

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ranges from 0.1% to 0.15% for margin trades, 0.2% to 0.425% for squared off trades and 0.4% to 0.85% on delivery based trades.

Disadvantages of ICICI Direct:

1. Getting access to ICICIDirect.com website during market session can be frustrating.

5Paisa.com
5paisa is the trade name of India Infoline Securities Private Limited (5paisa), member of National Stock Exchange and The Stock Exchange, Mumbai. 5paisa is a wholly owned subsidiary of India Infoline Ltd, Indias leading and most popular finance and investment portal. 5paisa has emerged as one of leading players in ebroking space in India. The companys brokerage is one of the lowest in the industry. It also provides the research on commodities. Investors can benefit from its analysis and advice available at the click of the mouse. For those who prefer to trade the traditional way, India Infoline investor points are available across the country.

India Infoline was founded by a group of professionals in 1995. Its institutional investors include Intel Capital, one of the leading technology companies in the world promoted by the U K government, ICICI, TDA and Reeshanar. The company offers a slew of products such as stock and derivatives broking, commodities broking and mutual funds.

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India Bulls
Indiabulls is India's leading retail financial services company with 77 locations spread across 64 cities. Its size and strong balance sheet allows providing varied products and services at very attractive prices, our over 750 Client Relationship Managers are dedicated to serving your unique needs. Indiabulls is lead by a highly regarded management team that has invested crores of rupees into a world class Infrastructure that provides real-time service & 24/7 access to all information and products. The Indiabulls Professional Network offers real-time prices, detailed data and news, intelligent analytics, and electronic trading capabilities, right at your finger-tips. This powerful technology is complemented by our knowledgeable and customer focused Relationship Managers. Indiabulls offers a full range of financial services and products ranging from Equities, Derivatives, Demat services and Insurance to enhance wealth.

Kotak Securities Limited (kotakstreet.com):

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Kotak Securities Ltd., a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25% - one of the worlds leading investment banks and brokerage firms) is Indias leading stock broking house with a market share of 5 - 6 %. Kotak Securities Ltd. has been the largest in IPO distribution - It was ranked number One in 2003-04 as Book Running Lead Managers in public equity offerings by PRIME Database. It has also won the Best Equity House Award from Finance Asia - April 2004. The company has a full fledged research division involved in Macro Economic studies, sectoral research and company specific equity research combined with a strong and well networked sales force which helps deliver current and up to date market information and news. Kotak Securities Ltd is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the company for executing the transactions and the depository services for settling them. The company has 42 branches servicing around 1, 00,000 customers. Kotakstreet.com the online division of Kotak Securities Limited offers Internet Broking services and also online IPO and Mutual Fund Investments. Kotak Securities Limited manages assets over 1700 crores under Portfolio Management Services (PMS) which is mainly to the high end of the market. Kotak Securities Limited has newly launched Kotak Infinity as a distinct discretionary Portfolio Management Service which looks into the middle end of the market.

Motilal Oswal Securities Ltd. (MOSt):

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One of the top-3 stock-broking houses in India, with a dominant position in both institutional and retail broking, MOSt is amongst the best-capitalized firms in the broking industry in terms of net worth. MOSt was founded in 1987 as a small sub-broking unit, with just two people running the show. Focus on customer-first-attitude, ethical and transparent business practices, respect for professionalism, research-based value investing and implementation of cutting-edge technology have enabled it to blossom into a thousand-member team. The institutional business unit has relationships with several leading foreign institutional investors (FIIs) in the US, UK, Hong Kong and Singapore. In a recent media report MOSt was rated as one of the top-10 brokers in terms of business transacted for FIIs. The retail business unit provides equity investment solutions to more than 50,000 investors through 270 outlets spanning 150 cities and 22 states. MOSt provides Advice-Based Broking, Portfolio Management Services (PMS), E-Broking Services, Depository Services, Commodities Trading, and IPO and Mutual Fund Investment Advisory Services. Its Value PMS Scheme gave a 160% post-tax return for the year ended March 2004. With value investing at the core of its investment philosophy, a strong research team consistently provides high-performance ideas. MOSts equity research has been consistently ranked very highly in surveys conducted by leading international publications like Asiamoney and Institutional Investor. In Asia Money Brokers Poll 2003 MOSt has been rated as the Best Domestic Research House - Mega Funds ,while in 2000 and 2002 it has been rated as the Best Domestic Equity Research House and Second best amongst Indian Brokerage firms respectively.

IDBI Capital Market Services Ltd.

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IDBI Capital is a leading Indian securities firm offering a complete suite of products and services to individual, institutional and corporate clients. IDBI Capital Market Services Ltd. (IDBI Capital), a wholly owned subsidiary of Industrial Development Bank of India (IDBI), is a leading Indian securities firm, offering a complete suite of products and services to individual, institutional and corporate clients. Our services include fixed income trading, equities brokerage, debt and equity derivatives, research, private placements, depository services, portfolio management and distribution of financial products. Over the last five years, we have emerged as a leading player in each of these businesses. March 1995 - Commenced Equity Broking on NSE CM segment July 1995 - Built agent Distribution Network across the country October 1996 - Commenced Debt Broking on NSE WDM segment December 1996 - Started operations as a Depository Participant 1996 - Started to act as Arranger to Privately Placed Bond issues April 1998 - Commenced operations as a Portfolio Manager February 1999 - Acquired membership of BSE, Mumbai November 1999 - Started operations as a Primary Dealer June 2000 - Acquired Derivatives memberships of BSE and NSE March 2002 - Achieved an outright secondary market turnover exceeding Rs100,000 cr in G-Secs October 2002- Commenced trading in Interest Rate Swaps

Refco - Sify Securities India Pvt. Ltd

Refco-Sify Securities India Pvt. Ltd., headquartered in Mumbai, is a joint venture between the Refco Group Holding Ltd., USA; and Satyam Infoway Limited

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(NASDAQ: SIFY) to offer online and offline equity and derivatives trading for retail customers as well as execution and clearing services for financial institutions. Refco also provides clients with prime brokerage services, fixed income, equities, foreign exchange, OTC derivatives and asset management. Refco is a leader in providing clients with the latest technological advances in products and services. Its proprietary systems and global infrastructure provide the flexibility to meet all client requirements. Client service is what sets Refco apart from its competitors. Refco understands the unique business requirements of each of its clients and tailors its products and services to meet those requirements.

UTI SECURITIES LTD.: (UTISEL) UTI Securities Ltd was incorporated on June 24, 1994 by Unit Trust of India as a 100% subsidiary and on the repealing of the UTI Act, the capital is now held by the Administrator of the Specified Undertaking of Unit Trust of India (ASUUTI). UTI Securities has been working as an independent professional entity for providing financial intermediary and advisory services to its corporate and retail clientele. The Company has presence in major cities with 20 branches and 50 franchisees to service a wide range of clients. The company has also invested in the joint-venture company with Standard Chartered Bank viz. Standard Chartered UTI Securities (P) Ltd. that is engaged in primary dealership and Government securities. The company is very soon going to start Commodity Trading through its subsidiary, USEc Commodities Ltd, which provides facility of commodity trading on NCDEX and MCX.

KARVY Karvy is a premier integrated financial services provider, and ranked among the top five in the country in all its business segments, services over 16 million

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individual investors in various capacities, and provides investor services to over 300 corporate, comprising the who is who of Corporate India. Karvy has a professional management team and ranks among the best in technology, operations and research of various industrial segments. History of Karvy :- The birth of Karvy was on a modest scale in 1981. It began with the vision and enterprise of a small group of practicing Chartered Accountants who founded the flagship company, Karvy Consultants Limited. They started with consulting and financial accounting automation and carved inroads into the field of registry and share accounting by 1985. Since then, karvy utilized its experience and superlative expertise to go from strength to strength, to better their services, to innovate, diversify and in the process, evolved as one of Indias premier integrated financial service enterprise.

OBJECTIVE
The primary objective is:
Checking the awareness level of online share trading. Evaluation of preferred investments in various mode and industry.

To collect the real time information about preference level of customers using Demat account and their inclination towards various other brokerage firms e.g. India bulls, Angel broking, India infoline, Religare, Alan- kit, Unicon. To expand the market penetration of INDIAN INFOLINE ltd.

To provide pricing strategy of competitors to fight cut throat competition. Study of influencing factors affecting the purchase decision.

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Analyzing the preferred broking house. Checking the satisfaction level of the customers towards preferred broking house.

The secondary objective is:

To make clients and let them know about the different services offered by the INDIAN INFOLINE.

To understand the problem faced by customers and finding way to solve the queries.

RESEARCH METHODOLOGY
INTRODUCTION
Research Methodology refers to search of knowledge .one can also define research methodology as a scientific and systematic search for required information on a specific topic. The word research methodology comes from the word advance learner s dictionary meaning of research as a careful investigation or inquiry especially through research for new facts in my branch of knowledge for example some author have define research methodology as systematized effort to gain new knowledge.

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Methodology of the project starts with

In the first phase we are trained and they teach us different things about market. After that they conduct a mock viva, in this they ask about the real life problem faced by the customers. They provide leads and after that we make calls. Then after that we have to provide details of product and convince them. Then we have to visit them and get the formed filled from them. Maintaining dairy of clients and contacting them at regular basis. Get the knowledge of technical as well as fundamental methods. Observe the patterns of the scripts.

Exploratory Research:
Exploratory research is a type of research conducted because a problem has not been clearly defined. Exploratory research helps determine the best research design, data collection method and selection of subjects. Given its fundamental nature, exploratory research often concludes that a perceived problem does not actually exist. Exploratory research often relies on secondary research such as reviewing available literature and/or data, or qualitative approaches such as informal discussions with consumers, employees, management or competitors, and more formal approaches through in-depth interviews, focus groups, projective methods, case studies or pilot studies.

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The results of exploratory research are not usually useful for decisionmaking by themselves, but they can provide significant insight into a given situation. Although the results of qualitative research can give some indication as to the "why", "how" and "when" something occurs, it cannot tell us "how often" or "how many." Exploratory research is not typically generalizable to the population at large. Research is exploratory when you use no earlier model as a basis of your study. The most usual reason for using this approach is that you have no other choice. Normally you would like to take an earlier theory as a support, but there perhaps is none, or all available models come from wrong contexts. Exploratory research means that hardly anything is known about the matter at the outset of the project. You then have to begin with a rather vague impression of what you should study, and it is also impossible to make a detailed work plan in advance. Analysis in exploratory research is essentially abstraction and generalization. Abstraction means that you translate the empirical observations, measurements etc. into concepts; generalization means arranging the material so that it disengages from single persons, occurrences etc. and focuses on those structures (invariances) that are common to all or most of the cases. It will seldom be possible to divide exploratory study into such clear phases as is common in the case that the object has been studied earlier. According to Alasuutari (1993 p.22), in qualitative analysis of empirical findings, you can distinguish two phases but these two overlap: simplification of observations interpretation of results (or "solving the enigma") In the simplification phase, the material is inspected from the theoretical point of view of the study project, and only the points relevant from this angle are noted. Details differing from one individual to another at random are omitted or pushed aside so that the general lines of the data can be discerned more easily.

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Simplification continues by finding the relationships between separate bservations or cases. Some tools for this work are comparison and classification. The goal is to find the general rule or model that is valid in all or most of the observations. This model can be, for example, development or evolution, causality, or a conscious action to attain an outcome which is typical in normative research. -- In any case the analysis starts from separate cases and aspires to create one or a few general models. "Solving the enigma" does not always mean answering exactly those questions that were asked at the outset of the project. Sometimes the most interesting questions are found at the end of the research, when the researcher has become an expert on the subject. It is often said that "data teach the researcher". The purpose of descriptive exploratory research is to extract a structure from the source material which in the best case can be formed as a rule that governs all the observations and is not known earlier (per the definition of exploratory study). Finding the unknown structure may need some creative innovation, because even the most sophisticated computerized analysis methods cannot automatically uncover which type of structure is concealed in data. Usually you first have to formulate a tentative pattern for the assumed structure in the observations and then you can ask the computer to estimate how well the data corresponds to the model, cf. Tools for Analysis.

METHODS OF DATA COLLECTION

In the project work Primary data secondary data (both) sources of data has been used .

1. Primary data collection:

In dealing with real life problem it is often found that data at hand are inadequate, and hence, it becomes necessary to collect data that is appropriate. There are several ways of collecting the appropriate data which differ considerably in context of money costs, time and other resources at the disposal of the researcher.

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Primary data can be collected either through experiment or through survey. The data collection for this study was done in the following manner:

Through personal interviews:A rigid procedure was followed and we were seeking answers to many preconceived questions through personal interviews.

Through questionnaire:Information to find out the investment potential and goal was found out through questionnaires.

Through Tele-Calling:Information was also taken through telephone calls.

2. Secondary sources of data:

In the secondary sources of data is used. (Internet , magazine ,books, journals) In research, secondary data is data collected and possibly processed by people other than the researcher in question. Common sources of secondary data for social science include censuses, large surveys, and organizational records. In sociology primary data is data you have collected yourself and secondary data is data you have gathered from primary sources to create new research. In terms of historical research, these two terms have different meanings. A primary source is a book or set of archival records. A secondary source is a summary of a book or set of records.

Secondary data analysis:

There are two different types of sources that need to be established in order to conduct a good analysis. The first type is a primary source which is the initial material that is collected during the research process. Primary data is the data that the researcher is collecting themselves using methods such as surveys,direct observations, interviews, as well as logs(objective data sources). Primary data is a reliable way to collect data because the researcher will know where it came from

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and how it was collected and analyzed since they did it themselves. Secondary sources on the other hand are sources that are based upon the data that was collected from the primary source. Secondary sources take the role of analyzing, explaining, and combining the information from the primary source with additional information. Secondary data analysis is commonly known as second-hand analysis. It is simply the analysis of preexisting data in a different way or to answer a different question than originally intended. Secondary data analysis utilizes the data that was collected by someone else in order to further a study that you are interested in completing. Common sources of secondary data are social science surveys and data from government agencies, including the Bureau of the Census, the Bureau of Labor Statistics and various other agencies. The data collected is most often collected via survey research methods. Data from experimental studies may also be used.

Sources of secondary data:

Sources of secondary data may be classified into qualitative and quantitative. Examples of qualitative sources are biographies, memoirs, newspapers, etc. Quantitave sources include published statistics (e.g., census, survey), data archives, market research, etc.[1] Today, with the aid of our internet capabilities, thousands of large scale datasets are at the click of a mouse for secondary data analyst. Globally, there are many sources available. These sources can arrive from the data arranged by governmental and private organizations, to data collected by any social researcher. Secondary data analysis is a growing research tool in our modern day society. Social scientists have the opportunity to explore massive amounts of secondary data. Collecting, reviewing, and analyzing secondary data

The Design and Purpose of Research

Secondary data analysis consists of collecting data that was compiled through research by another person and using that data to get a better understanding of a concept. A good way to begin your research using secondary data that you are collecting to further support your concept is to clearly define the goals of your

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research and the design that you anticipate using. An important thing to remember when defining your plan is to ensure that you have established what kind of data you plan on using for your research and the exact goal. Establishing what type of research design is an important component. In terms of using secondary data for research it helps to create an outline of what the final product will look like consisting of all the types of data to be used along with a list of sources that were used to compile the research. In order to use secondary data three steps must be completed: 1. locate the data 2. evaluate the data 3. verify the data Locating the data can be easily done with the advancements of searching sources online. However, people need to be aware of the details when searching online since pages can be out of date or poorly put together. Therefore, use caution and pay attention to whether it is a reliable data source online and check when the last update was. To evaluate the data a researcher must carefully examine the secondary data they are considering to ensure that it meets their needs and purpose of study. The person must look at the population and what the sample strategy and type were. It is also important to look at when the data was collected, how it was collected, how it was coded and edited, along with the operational definitions of measures that were used. Finally, the data must be verified to ensure good quality material to be used in new research.

Determining the Types of Data and Information Needed to Conduct Analysis

Data and information collection for secondary data analysis will depend entirely upon the subject that is central to the focal point of the study. The purpose of conducting secondary data analysis is to further develop an improved understanding of the subject matter at hand. Some important types of data and information that should be collected and summarized include demographic information, information gathered by government agencies (i.e. the Census), and social science surveys. There is also the possibility of reanalyzing data that was collected in experimental studies or data collected with qualitative measures that

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can be applied in secondary data analysis. The most important component is to ensure that the information and data being collected needs to relate to the subject of study.

Determine the Quality of Sources of Data

In secondary data analysis, most individuals who do not have much experience in research training or technical expertise can be trained accordingly. However, this advantage is not without difficulty as the individual must be able to judge the quality of the data or information that has been gathered. These key tips will assist you in assessing the quality of the data: Determine the original purpose of the data collection, attempt to discover the credentials of the source(s) or author(s) of the information, consider if the document is a primary or secondary source, verify that the source well-referenced, and finally find out the: date of the publication; the intended audience, and coverage of the report or document.

RESEARCH DESIGN
For the proper analysis of data simple quantitative technique such as percentage were used. It help in marketing more accurate generalization From the data available .The data which was collected from a sample of population was assumed to be representing entire population was interested .Demographic factor like age, income and educational background was used for the classification purpose .

On The Job Training

On the job training is an important component of our training. It is an attempt to bridge the gap between the academic institution and the corporate world. During OJT, which would be a simulation of real work environment, requires you to

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undergo the rigor of professional environment, both in form and in substance. In the process, it provides an opportunity for us to satisfy our inquisitiveness about corporate, provides exposure to technical skills, and helps us to acquire social skills by being in constant interaction with the professionals of other organizations. During OJT we are required to undertake assignment\jobs along with the day-today function of the company, both at the assistance and execution level. This will help to gain a deeper understanding of the work, culture, deadlines, and pressure etc. of an origination.

STRATEGY
Tele-calling Personal appointments Making arrangements for the requirements Open Demat Account Again visit for trading

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DATA ANALYSIS AND INTERPRETATION

Q1. In which of these Financial Instruments do you invest into?
Financial Instrument Mutual Fund Bond Online trading Derivative Percentage of respondent 75% 16% 7% 2%

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Result of Preference of Investment

Interpretation: This shows that although the mutual funds market is on the rise yet, the most favored investment continues to be in the Share Market. So, with a more transparent system, investment in the Stock Market can definitely be increased.

Q2. Are you aware of online Share trading?

Aware of online share trading Yes No

Percentage of respondent 72% 28%

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Result of awareness of online trading

Interpretation: With the increase in cyber education, the awareness towards online share trading has increased by leaps and bounds. This awareness is expected to increase further with the increase in Internet education.

Q3. Heard about INDIAN INFOLINE ltd.?

Awareness of INDIAN INFOLINE Percentage of respondent ltd. Yes 70% No 30%

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Result of Awareness of INDIAINFOLINE ltd.

48% yes 52% no

Interpretation: This pie-chart shows that This brand image should be further leveraged by the company to increase its market share over its competitors.

Q4. Do you know about the facilities provided by INDIAN INFOLINE ltd.

Awareness of INDIAN INFOLINE Percentage of respondent ltd. Services Yes 36% No 64%

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Awareness of INDIAN INFOLINE ltd.Facilities

36%

yes No 64%

Interpretation: Although there is sufficiently high brand equity among the target audience yet, it is to be noted that the customers are not aware of the facilities provided by the company meaning thereby, that, the company should concentrate more towards promotional tools and increase its focus on product awareness rather than brand awareness.

Q.5 Which company provide a less BROKARAGE rate ?

Company Name INDIAN INFOLINE ltd. HDFC ICICI

Percentage of respondent 22 11 17

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25 20 15 10 5 0 INDIAINFOLINE HDFC ICICI

INTERPRTETATION: 44% have respondent of INDIAN INFOLINE ltd., 22% have respondent of HDFC, 34% have respondent of ICICI.

Q. 6 Which company provide you a large number of product and services?

Company Name INDIAN INFOLINE ltd. HDFC

Percentage of respondent 22 10

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ICICI

18

25 20 15 10 5 0 INDIAINFOLINE

HDFC

ICICI

INTERPRETATION:44% have respondent of INDIAN INFOLINE ltd., 20% have respondent of HDFC, 36% have respondent of ICICI.

Q. 7 How many of you satisfy with the level of current broker?

S t fa io le e a o gCu t m rsw h a is ct n v l m n s o e it cu n b k r rre t ro e

Yes - 92%

No- 8%

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Interpretation: This pie chart accentuates the fact that Strategic marketing, today, has gone beyond only meeting Sales targets and generating profit volumes. It shows that all the competitors are striving hard not only to woo the customers but also to make them Brand loyal by generating customer satisfaction.

Q. 8 How many of do training:

A) Daily B) Monthly C) Weekly D) Yearly

Frequency of Trading

Daily - 9% Weekly - 27% Monthly -53% Yearly -11%

Interpretation:

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In spite of the huge returns that the share market promises, we see that there is still a dearth of active traders and investors. This is because of the non transparent structure of the Indian share market and the skepticism of the target audience that is generated by the volatility of the stock market. It requires efficient bureaucratic intervention on the part of the Government.

Q. 9According to your perspective which investment gives you maximum return?

(1) Share market (2) Mutual funds (3) Purchasing insurance policy

share market mutual funds purchasing insurance policies

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Interpretation As of today people believe in secured investment with no risk & high return. So insurance policy are the best option for them as they give good return after a period of time .Share market has also come up in a big way though the risk factor is a bit too high despite good return.

Represent a pie chart

US OFD ER EMATACCOUNT
INDIAINFOLINE ICICI HDFC

28%

41%

31%

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OBSERVATION
To study the sales and distribution management and improve the Customer Acquisition Process by analyzing the consumer behavior, response and mindset towards the product and services the company offers.

1. Preference of Investment:
Consumers want to invest 75% in Mutual funds, 16% in Bonds, 7% in online trading and 2% in Derivatives.

2. Awareness on Online Share Trading:

72% consumers are aware of online share trading and 28% consumers are not aware of online share trading.

3. Awareness of INDIAN INFOLINE ltd.:

70% consumers are know about INDIAN INFOLINE ltd. and 30% consumers are not know about INDIAN INFOLINE ltd.

4. Awareness about facilities provided by INDIAN INFOLINE ltd. :

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36% consumers are aware about the facilities provided by INDIAN INFOLINE ltd. and 64% consumers are not know about the facilities provided by INDIAN INFOLINE ltd.

5. Provide a less BROKARAGE rate:

44% have respondent of INDIAN INFOLINE ltd., 22% have respondent of HDFC, 34% have respondent of ICICI.

6. Provide a large no. of Products and services:

44% have respondent of INDIAN INFOLINE ltd., 20% have respondent of HDFC, 36% have respondent of ICICI.

FINDINGS
According to the survey most of the customers of INDIAN INFOLINE Ltd says

that it is pocket friendly.

Coming to faith 70% say INDIAN INFOLINE Ltd is better than others stock

brokers due to customers satisfaction. Main purposes of investments are returns & liquidity. Investors take risk as well as returns into their mind while making the investment. Businessmen are more interested in the stock market than the others. Commodity market is less preferred by the investors. People want to invest their money in the security market but they havent the proper knowledge. People are not aware of hedging in stock market.
People pay more emphasis on brokerage than service provided by brokerage

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houses.

Questioner

Q.1) do you in share market? a) Yes

b) No

Q.2) please tick the following: a) Type of trading you generally do---

Intraday/Delivery/Both less than 20 k/20k 1

b) Amount of investment you generally do-lacs/more than 1 lacs c) Time period of investment---than 6 mnths

less than 1 mnths /1-6 mnths/more

Q.3) In your option what is the biggest problem of trading? a) Lack of proper knowledge and experience b) Unsatisfactory services of broking firms.

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c) Charges by broking firms. Q.4) What is your opinion about the problem of marketing uncertainty in trading? a) Its a big challenge b) Its manageable c) Its an opportunity. Q.5) Does unsatisfactory services provide by the breaking firms create problems in trading? a) Yes b) Partial c) No

Q.6) which charge do you consider charged by the companies is a problem in trading? a) Broking charge b) Undisclosed hidden charges c) Annual maintenance charges. Q.7) Name of the company with which you are making your investment? a)India bulls b)angel securities c)India infoline d)religare securities e)ICICI f) others Q.8) Are you satisfied in trading with your broking firm? a.) Highly Satisfied b.) Satisfied c) Neutral d) Dissatisfied e) Highly Dissatisfied Q.9) Are you aware of products and services offered by Indiabulls? a.) Yes b.) No

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Q.10) Are you satisfied with the charges charged by indiabulls for opening DMat account (with annual maintenance charge)? a.) Highly Satisfied b.) Satisfied c.) Partial d) Dissatisfied e) Highly dissatisfied Q.11) what is your perception regarding India Bulls? a.) Best b) Good c.) Average Q.12) Please specify reasons? a.) Servicesgood/average / bad b.) Brokeragegood / average / bad c.) Relationship manager's support good / average / bad d.) Transparencygood / average / bad Q.13) At which office location you are more comfortable with Indiabulls: a.) Ballygunge b.) Sovabazar d) Bad e) Worst

LIMITATION

Lack of awareness of capital market:

Since the area is not known before it takes lot of time in convincing people to start investing in shares primarily in IPOs.

Some people are comfortable with traditional system:

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As people are doing trading from there respective brokers, they are quite comfortable to trade via physical form of paper.

Lack of Techno Savvy people and poor internet penetration: techno

Since most of the people are quite experienced and also they are not savvy. Also Internet penetration is poor in India.

Some respondents are unwilling to talk:

Some respondents either do not have time or willing does not respond, as they are quite annoyed with the phone call.

Inaccurate Leads:

Sometimes leads are provided which had error in it, which varies from only 5digit phone number to wrong phone number

Misleading concepts:

Some people think that as all the shares are in electronic form and they dont have any physical proof. Sometimes this leads to a great misconception of the entire process. The time constraint was one of the major problems. The study is limited to the different schemes available under the Demat account selected. The lack of information sources for the analysis part.

Geographical locations.

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Extreme variability in MARKET.

SUGGESTIONS
1. MORE BRANCHES Need to open more branches to be a topper in market Because it has a low distribution network.

2. LESS TIME
They should try to make some arrangements to reduce account opening time by verifying documents at branch it selves.

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3. LINK-BANK A/Cs Linked as many accounts as client wants to its online account. 4. NEW BANKS IN THE KITTY Need to tie up with major banks like SBI, Allahabad Bank, Bank of Baroda etc. 5.CUSTOMER SATISFACTION The company should focus on the customer satisfaction not on just taking money from their pocket.

7.CONTROLLED BRANCHES The company would have to make some arrangements to control the branches and make standardized procedures for all of them for their better control and performance appraisal.

Commitment should be equalized for every person.

Provide the facility of free demonstrations for all.

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Improvement in the opening of De-mat & contract notice procedure is required.

There should be a limited number of clients under the relationship manger. So that he can handle new as well as old customer properly.

Some promotional activities are required for the awareness of the customer.

People at young age should be encouraged to invest in stock market.

Seminars should be held for providing information to prospective and present customers.

CONCLUSION

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

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

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

BIBLIOGRAPHY
Websites:

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www.Google.com www.bseindia.com www.nseindia.com 4. www.moneycontrol.com 5. www.INDIAN INFOLINE.com 6. www.icicidirect.com 7. www.5paisa.com 8. www.Indiabulls.com 9. www.hdfcsecurities.com 10. WWW.KARVY.COM
1. 2. 3.

NEWSPAPERS:
1. ECONOMIC TIMES 2. TIMES OF INDIA 3. FINANCIAL EXPRESS