Kotak Mahindra Group

Kotak Mahindra Group
Kotak Mahindra is one of India's leading financial institutions, offering complete financial solutions that encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporate. The group has a net worth of over Rs.1, 550 crore and employs over 3,000 employees in its various businesses. With a presence in 59 cities in India and offices in New York, London, Dubai and Mauritius, it services a customer base of over 5,00,000. Kotak Mahindra has international partnerships with Goldman Sachs (one of the world's largest investment banks and brokerage firms), Ford Credit (one of the world's largest dedicated automobile financiers) and Old Mutual (a large insurance, banking and asset management conglomerate). It is the only company in India, which has Unlimited Liability.
Report on Summer Training at Kotakstreet.com
The Story of Success

The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited. Uday Kotak, Sidney A. A. Pinto and Kotak & Company promoted this company. Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986, and that is when the company changed its name to Kotak Mahindra Finance Limited. Since then, it has been a steady and confident journey to growth and success.
1986 Kotak Mahindra Finance Limited starts the activity of Bill Discounting 1987 Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market 1990 The Auto Finance division is started 1991 The Investment Banking Division is started. Takes over FICOM, one of Indias largest financial retail marketing networks 1992 Enters the Funds Syndication sector 1995 Brokerage and Distribution businesses incorporated into a separate company - Kotak Securities. Investment Banking division incorporated into a separate company - Kotak Mahindra Capital Company 1996 The Auto Finance Business is hived off into a separate company - Kotak Mahindra Primus Limited. Kotak Mahindra takes a significant stake in Ford Credit Kotak Mahindra Limited, for financing Ford vehicles. The launch of Matrix Information Services Limited marks the Groups entry into information distribution. 1998 Enters the mutual fund market with the launch of Kotak Mahindra Asset Management Company. 2000 Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance business. Kotak Securities launches kotakstreet.com - its on-line broking site. Formal commencement of private equity activity through setting up of Kotak Mahindra Venture Capital Fund.
Report on Summer Training at Kotakstreet.com 2
2001 Matrix sold to Friday Corporation Launches Insurance Services 2003 Kotak Mahindra Finance Ltd. converts to bank
Mission Statement
A mission statement is a relatively permanent part of an organizations identity and can do much to unify and motivate members of the organization. A mission statement, a broad based goal based on managers assumptions about the organizations purpose, competencies and place in the world.
To Consistently Provide a Full Spectrum of Intelligent Financial Choices and Be a Preferred Area. Provider of the Highest Quality Service in Our Chosen Business
Corporate Identity
The Journey So Far
Key Group Companies and their Businesses

Kotak Mahindra Bank Ltd.:
Kotak Mahindra Bank Limited (KMBL) is the holding company and the flagship of the Kotak Mahindra Group. It was actually incorporated as Kotak Capital Management Finance Limited on November 2, 1985 and obtained its Certificate of Commencement of Business on February 11, 1986. It commenced operations with Bill Discounting and soon started other fund-based activities like corporate leasing and hire purchase, automobile finance and money market operation. Subsequently, It also entered the funds syndication and the investment banking business. With the liberalization of the Indian economy and the opening up of the financial markets, the Company diversified and started offering a wider spectrum of financial services. To meet the increasing competition, from global players, in the Indian financial markets in terms of capital knowledge base, technology and systems, the company decided to restructure its investment banking and car finance divisions into joint venture companies.
Kotak Mahindra Primus Ltd.:

Kotak Mahindra Primus Limited (KMPL) is a joint venture between Kotak Mahindra Bank Ltd and (USA) (FCII) formed to finance all non-Ford passenger vehicles. The Joint venture is dedicated to financing and supporting automotive and automotive related manufacturers. dealers and retail customers. The Company was incorporated on 28th February 1996 and commenced its operations on 1st November 1996. After incorporation and subsequent commencement of the business by the joint venture, the business of financing non-Ford passenger cars and its related activities, previously carried on by KMFL, is being undertaken by KMP. The company has immensely benefited from the brand equity undertaken by KMP. The Company has immensely benefited from the brand equity of Kotak Mahindra who was market leaders in the auto finance sector.
KMPL has established a centralized customer service activity to ensure high quality and timely response to customer needs. The robust system platform ensures the above standards are met. KMPLs launch of website is a commitment by the organization to provide all stakeholders, including customers, accurate and up to date information.
Kotak Mahindra Capital Company Ltd.:

Kotak Mahindra Capital Compnay Limited (KMCC), Indias premier Investment Bank is a strategic Joint Venture between Kotak Mahindra Bank Limited (KMBL) and the Goldman Sachs Group, LLP. The securities business of the Kotak Mahindra Group is represented by KMCC and Kotak Securities (KS) a joint venture with Goldman Sachs involved in brokerage, distribution and research. KMCC, together with KS, is a full service Investment Bank bringing to the clients the global reach and expertise of Goldman Sachs and the local knowledge and skills of Kotak Mhaindra. As a full service Investment Bank, KMCC has been guided by its philosophy of Ideas First and has pioneered several innovative transactions in India, which has been the hallmark of our success has pioneered several innovative transactions in India, which has been the hallmark of our success and has enabled us to maintain our position as one of the Indias leading Investment Banks. KMCCs core business areas include Equity Issuances, Mergers & Acquisitions, Structured Finance and Advisory Services, Fixed Income Securities and Principal Business.
Kotak Mahindra Asset Management Company:

Kotak Mahindra Asset Management Company (KMAMC), a wholly owned subsidiary of KMBL, is the asset manager for Kotak Mahindra Mutual Fund (KMMF). KMAMC started operations in December 1998 and has over 1,35,000 investors in various schemes. KMMF offers schemes catering to investors with varying risk-return profiles and was the first fund house in the country to launch a dedicated gilt scheme investing only in government securities.
Kotak Mahindra International Ltd.:

Kotak Mahindra International Limited (KMIL) is the international arm of the Kotak Mahindra Group and was incorporated in 1994 in Mauritius, with a branch in Dubai. Today the international operations also cover the United Kningdom, through Kotak Mahindra U.K.Limited and the US, through Kotak Mahindra Inc. USA.These companies are subsidiaries of Kodak Mhaindra Capital Company (KMCC)- the investment Banking Division of the Group. Services offered include GDR and ADR trading and broking, debt syndication, placement of Indian securities and advisory services. Kotak Mahindra was the first Indian group to be registered with the Securities and Futures Authority, U.K.Also, Kotak Mahindra is the first Indian group register in the US providing service to both institutional investors and High Net worth Clients in the US for their investments into the Indian markets.
Kotak Mahindra Venture Capital Fund:

Kotak Mahindra Venture Capital Fund (KMVCF or the Fund), sponsored by Kotak Mahindra bank Limited, was formed to provide growth capital to Indian corporate. This is the Groups formal foray into the venture capital / private equity arena, after having made proprietary investments in the past. KMVCF is a SEBI registered fund, with KMBL as the principal investor, and 30 other private investors. KMBL is the investment manager of the Fund.
Chart of Management Structure
10
11
An Overview of Indian Securities Market

Introduction
Securities market provides a channel for allocation of savings to those who have a productive need for them. As a result, the savers and investors are not constraints by their individual abilities, but by the economys abilities to invest and save respectively, which inevitably enhances savings and investment in the economy.
Market Segments
The securities market has two interdependent and inseparable segments: the primary and the secondary market. The primary market provides the channel for creation of new securities through issuance of financial instruments by public companies as well as Governments and Government agencies and bodies whereas the secondary market helps the holders of these financial instruments to sale for exiting from the investment. The government and corporate sector raised a total of Rs.2, 520,179 million during 2002-03 as against Rs. 2,269,110 million during the preceding year. Government raised about two third of the total resources, with central government alone raising nearly Rs. 1,511,260 million. The price signals, which subsume all information about the issuer and his business including associated risk, generated in the secondary market, help the primary market in allocation of funds. The primary market issuance is not limiting any entity in investing while in private placement; the issuance is done to select people. In terms of the Companies Act, 1956, an issue becomes public if it results in allotment to more than 50 persons. This means an issue resulting in allotment to less than 50 persons private placement. The secondary market enables participants who hold securities to adjust their holdings in response to changes in their assessment of risk and return. They also sell securities for cash to meet their liquidity needs. The exchanges do not provide facility for spot trades in a strict sense. Closest to spot market is the cash market in exchanges where settlement takes place after some time. Trades taking place over a trading cycle (one day under rolling settlement) are settled together after a certain time. All the 23 stock exchanges in the country provide facilities for trading of corporate securities. Trades executed on NSE only are cleared and settled by a clearing corporation, which provides notation and settlement guarantee. Nearly 100% of the trades in capital market segment are settled through demat delivery. NSE also provides a formal trading Report on Summer Training at Kotakstreet.com 12
platform for trading of a wide range of debt securities including government securities in both retail and wholesale mode. NSE also provides trading in derivatives of equities, interest rate as well indices.
Products and Participants

Financial markets facilitate the reallocation of savings from savers to entrepreneurs. Savings are linked to investments by a variety of intermediaries through a range of complex financial products called securities which is defined in the Securities Contracts (Regulation) Act, 1956 to include shares, bonds, scripts, stocks or other marketable securities of like nature in or of any incorporate company or body corporate, government securities, derivatives of securities, units of collective investment scheme, interest and rights in securities, security receipt or any other instruments so declared by the central government.
A Profile
The past decade in many ways has been remarkable for securities market in India. It has grown exponentially as measured in terms of amount raised from the market, number of stock exchanges and other intermediaries, the number of listed stocks, market capitalization, trading volumes and turnover on stock exchanges, and investor population. Along with this growth, the profiles of the investors, issuers and intermediaries have changed significantly. The market has witnessed fundamental institutional changes resulting in drastic reduction in transaction costs and significant improvements in efficiency, transparency and safety.
Dependence on Securities Market

Three main sets if entities depend on securities market. While the corporate and governments raise resources from the securities market to meet their obligations. The households invest their savings in the securities.
13
Corporate Sector The 1990s witnessed emergence of the securities market as a major source of finance for trade and industry. A growing number of companies are accessing the securities market rather than depending on loans from Financial Institutes/banks. The corporate sector is increasing depending on external sources for meeting its funding requirements. There appears to be growing preference for direct financing (equity and debt) to indirect financing? (Bank loan) within the external sources. In the sector-wise shareholding pattern of companies listed on NSE, it is observed that on an average the promoters hold more than 55% of total sharers. Though the non-promoter holding is about 44%, Indian public held only 17% and the public float (holding by FIIs, Mutual Funds, Indian public) is at best 25%. There is not much difference in the shareholding pattern of companies in different sectors. Strangely, 63% of shares in companies in media and entertainment sector are held by private corporate bodies though the requirement of public offer was relaxed to 10% for them. Government Along with increase in fiscal deficits of the governments, the dependence on market borrowings to finance fiscal deficits has increased over the years. During the year 1990-91, the state governments and the central government financed nearly 14% and 18% respectively of their fiscal deficit by market borrowings did not increase much during the decade 1991-2001. In case of central government, it increased to 77.6% by 2002-03. Household According to RBI data, household sector accounted for 82.4% of gross domestic savings during 200102.They invested 38% of financial savings in deposits, 33% in insurance/provident funds, 11% on small savings, and 8% in securities, including government securities and units of mutual funds during 2001-02.
Population Investor
The Society for Capital Market Research and Development carries out periodical surveys of household investors to estimate the number of investors. Their first survey carried out in 1990 placed the total number of shareowners at 90-100 Lakhs. Their second survey estimated the number of shareowners at around 140-150 Lakhs. as of mid-1993. Their latest survey estimates the number of Report on Summer Training at Kotakstreet.com 14
shareowners at around two crore at 1997 end, after which it remained stagnant up to the end of 1990s. The bulk of increase in number of investors took place during 1991-94 and tapered off thereafter. 49% of the shareowners at the end of 2000 had. For the first time, entered the market before the end of 1990, 44% entered during 1991-94, 6.3% during 1995-96 and 0.8% since 1997.
Distribution of investors:
The Society for capital Market Research & Development estimates that 15% of urban households and only 0.5%-1.0% of semi-urban and rural households own shares. It is estimated that 64% of all households own shares.
_______________________________________________________ Sr. No. States/Union Territories beneficial account _________________ Number % to total _______________________________________________________ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Andhra Pradesh Bihar Chandigarh Delhi Goa Gujarat Himachal Pradesh Jammu & Kashmir Karnataka Kerala Madhya Pradesh Maharashtra Orissa Pondicherry Punjab 194,405 27,340 7,891 323,693 11,374 536,720 3,706 7,320 195,159 76,793 71,158 911,997 14,701 2,481 52,434 6.08 0.85 0.25 10.12 0.36 16.78 0.12 0.23 6.10 2.40 2.23 28.52 0.46 0.08 1.64 15
16 17 18 19 20
Rajasthan Tamilnadu Uttar Pradesh West Bengal Others Total
72,316 230,407 188,835 214,432 54,802 3,197,964
2.26 7.20 5.90 6.71 1.71 100.00
Corporate Securities Average annual capital mobilization from the primary market, which is to be about Rs. 70 crore in the 1960s and about Rs. 90 crore in the 1970s, increased manifold during the 1980s, with the amount raised in 1990-91 being Rs. 4,312 crore. It received a further boost during the 1990s with the capital raised by non-government public companies rising sharply to Rs. 26,417 corer in 1994-95. The capital raised which used to be less than 1% of gross domestic saving (GDS) in the 1970s increased to about 13% in 1992-93. In real terms, the capital raised increased 4 times between 1990-91 and 1994-95. During 1994-95, the amount raised through new issues of securities from the securities market accounted for four-fifth of the disbursements by Financial Institutions. There is a preference for raising resources in the primary market through private placement of debt instruments. Private placements accounted for about 93% of total resources mobilized through domestic issues by the corporate sector during 2002-03. Indian market is getting integrated with the global market though in a limited way through euro issues. Since 1992, when they were permitted access, Indian companies have raised about Rs. 34,264 million through ADRs/GDRs. By the end of March 2003, 502 FIIs were with SEBI. They had net cumulative investments over of US $ 15.8 billion by the end of March 2003. Their operations influence the market as they do delivery-based business and their knowledge of market is considered superior. Government Securities The primary issues of the Central Government have increased many fold during the decade of 1990s from Rs. 89,890 million in 1990-91 toRs.1,511,260 million in 2002-03.The issues by state governments increased by about twelve times from Rs. 25,690 million to Rs. 308,530 million during the same period. The Central Government mobilized Rs. 1,250,000 million through issue of dated securities and Rs.261,260 million through issue T-bills. After meeting repayment liabilities of Rs. Report on Summer Training at Kotakstreet.com 16
274,200 million for dated securities, and redemption T-bills of Rs 195,880 million, net market borrowing of Central Government amounted to Rs 1,041,180 million for the year 2002-03.The state governments collectively raised Rs. 305,830 million during 2002-03 as against Rs.187,070 million in the preceding year. The net borrowings of state Governments in 2002-03 amounted to Rs.290,640 million
Secondary market
Corporate security The number of stock exchange increased from 11 in 1990 to 23 now. All the exchange are fully computerized and offer 100% on-line trading. Today 9,413 companies were available for trading on stock exchanges at the end of March 2003a. The trading platform of the stock exchange was accessible to 9519 members from over 358 cities on the same date. The relative importance of various exchanges in the market has undergone dramatic change during this decade. The increase in turnover took place mostly at the large big exchanges and it was partly at the cost of small exchanges that failed to keep the pace with the changes. NSE is the market leader with more 85% of total turnover in 2002-2003. Top five exchanges accounted for 99.88% of turnover, while the rest 18 exchanges for less than 0.12% during the year 2002-2003. About 10 exchanges reported nil turnovers.
Government Securities The trading volumes in government securities exceeded the combined trading volumes in equity segments of all the exchanges in the country during 2002-03. The aggregate turnover in central and state government dated securities, including 195 treasury bills, through SGL transactions increased by manifold between 1994-95 and 2002-03. During 2002-03 it reached a level of Rs. 19,557,313 million, recording about 24.3% growth over Rs.15,738,930 million in the previous year. Such growing turnover reflects further deepening of the market. The bulk of transactions during 2000-02 were on outright basis. The share of outright transactions in government securities increased from 23.2% in 1995-96 to 71.2% in 2002-03. The share of repo transactions declined correspondingly from 76.8% in 1995-96 to 29% in 2002-03.The shares of WDM segment of NSE in total turnover for government securities decreased marginally from 58.9% in 2000-01 to 52% in 2002-03. As compared to the Report on Summer Training at Kotakstreet.com 17
increase in overall turnover of government securities by 24%, the same on WDM grew by 11% during 2002-03. Share of WDM in transactions of dated securities decreased from 61.1% in 2001-02 to 55.6% in 2002-03. Its share in transactions of T-bills decreased from 27.4% in 2001-02 to 21.5% in 2002-03.Government debts, which constitutes about three-fourth of the total outstanding debt, has the highest level of liquidity amongst the fixed income instruments in the secondary market. The share of dated securities in total turnover of government securities has been increasing over the years. Twoway quotes are available for the active gilt securities from the primary dealers. Though many trades in the gilts take place through telephone, a larger chunk of trades is routed through NSE brokers.
18
National Stock Exchange

The National Stock Exchange (NSE) is India's leading stock exchange covering 364 cities and towns across the country. NSE was set up by leading institutions to provide a modern, fully automated screen-based trading system with national reach. The Exchange has brought about unparalleled transparency, speed & efficiency, safety and market integrity. It has set up facilities that serve as a model for the securities industry in terms of systems, practices and procedures.
NSE has played a catalytic role in reforming the Indian securities market in terms of microstructure, market practices and trading volumes. The market today uses state-of-art information technology to provide an efficient and transparent trading, clearing and settlement mechanism, and has witnessed several innovations in products & services viz. demutualization of stock exchange governance, screen based trading, compression of settlement cycles, dematerializations and electronic transfer of securities, securities lending and borrowing, professionalisation of trading members, fine-tuned risk management systems, emergence of clearing corporations to assume counter party risks, market of debt and derivative instruments and intensive use of information technology.
19
Bombay Stock Exchange
The Stock Exchange, Mumbai, popularly known as "BSE" was established in 1875 as "The Native Share and Stock Brokers Association". It has evolved over the years into its present status as the premier Stock Exchange in the country. A Governing Board having 20 directors is the apex body, which decides the policies and regulates the affairs of the Exchange. The Executive Director as the Chief Executive Officer is responsible for the day-to-day administration of the Exchange and he is assisted by the Chief Operating Officer and other Heads of Departments. The Exchange has inserted new Rule No.126 A in its Rules, Bye-laws & Regulations pertaining to constitution of the Executive Committee of the Exchange. Accordingly, an Executive Committee, consisting of three elected directors, three SEBI nominees or public representatives, Executive Director & CEO and Chief Operating Officer has been constituted. The Committee considers judicial & quasi matters in which the Governing Board has powers as an Appellate Authority, matters regarding annulment of transactions, admission, continuance and suspension of member-brokers, declaration of a member-broker as defaulter, norms, procedures and other matters relating to arbitration, fees, deposits, margins and other monies payable by the member-brokers to the Exchange, etc
Turnover on the Exchange

The average daily turnover of the Exchange during the financial year 2000-2001 (AprilMarch), was Rs.3984.19 crores and the average number of daily trades was 5.69 lakhs The average daily turnover of the Exchange in the subsequent two financial years, i.e., 200102 & 2002-03, has declined considerably to Rs. 1248.15 corers and Rs. 1251.29 corers respectively. The average number of daily trades recorded during 2001-02 and 2002-03 numbered 5.17 lakhs and 5.63 lakhs respectively The average daily turnover and average number of daily trades during the quarter April-June 2003 were Rs. 1101.05 crores and 5.70 lakhs respectively. The ban on all deferral products like Report on Summer Training at Kotakstreet.com 20
Borrowing & Lending of Securities Scheme (BLESS) and Automated Lending & Borrowing Mechanism (ALBM) in the Indian capital markets by SEBI. w.e.f. July 2, 2001, abolition of account period settlements, introduction of Compulsory Rolling Settlements in all scripts traded on the Exchanges w.e.f. December 31, 2001, etc. has adversely affected the liquidity in the market and consequently there is a considerable decline in the average daily turnover at the Exchange as reflected in above statistics.
21
Stock Market Transaction

Delivery Based Transaction: Delivery Based Transactions one where it results in actual delivery of the underlying scripts. These are buy and sell transaction by which investors desire capital appreciation in their investments. Intraday Transactions (Cash market): Intraday transaction is one where the transaction is done without any intention of delivery of the underlying scripts. Buying and selling is done within the same settlement day. The net difference is paid by/received by the investor at the end of the day. This is not a kind of investment but its called speculation. Derivatives: A financial instrument hose value is derived from the values of other, more basic underlying assets. Underlying assets may be stock, indices, currency, bullion commodities etc. For example, Value September 1 month future contract for Nifty will depend on the current value of Nifty.
Basic types of Derivative

Forward Contracts Future Contracts Options
Forward Contracts: It is an agreement to buy or sell an asset (like stock, indices, currency etc) at a certain future time for a certain price. The contract is usually between two parties without having any involvement of exchange Settled at maturity, when the holder of the short position (seller) delivers the asset to the holder of the long position (Buyer) in return for a cash amount agreed upon. Risk of counter party default 22
Generally popular in foreign currency where different Banks and Corporation enter into forward contracts for different currencies.
Future Contracts: Like a forward contract, a future contract is an agreement between two parties to buy or sell an asset at a certain time in the future for a certain price. Counter party is an exchange and future contracts are traded on exchange. To make trading possible, the exchange specifies certain standardized feature of the contract like minimum size of contract, delivery time (usually in terms of month), margin requirement etc. Daily mark to market accounting is done by the exchange On maturity, it is not required to give actual delivery of an asset but contract is settled based on spot price of an asset. Options: Options name suggest is right but not an obligation of option holder Basic two types of Option Call Option Put Option
A call option gives the holder right to buy the stock by a certain date for a certain price. A put option gives holder right to sell the stock by a certain date for a certain price. The price in the contract is called strike price; the date in contract is known as the expiration date, exercise date, or maturity. The price paid for buying an option is known as option price or option premium. American option can be exercised at any time up to the expiration date while European option can be exercised only on the expiration date itself. Most of the option that is traded on the exchange is American.
23
Buyer of options (long position on Bubb option)
Exchange
Writer of options (short position on options)
Four basic option positions are possible 1. A long positioning call option 2. A long position in a put option 3. A short position in a put option 4. A short position in a put option
Example of a Call Option Suppose today I have purchased a following American call option on Reliance and I have paid Rs. 10/- to hold this option. (Spot price is Rs. 395/-) Strike Price: Maturity: Rs. 400/Last Thursday of August 2001 (if working day)
Then, up to closing of trading session on last Thursday of August 2001, I have right to buy Reliance @ Rs. 400/-. This is my right not an obligation. Obviously, I will exercise my right only if before maturity spot price of Reliance is more than Rs. 410/- (assuming no other charges). If I do not exercise my right than my maximum loss will be Rs. 10/- only.
24
Why should I buy a Call option? I have sold Reliance @ Rs. 390/- that I have purchased @ Rs. 320/- in past. By paying
on Rs. 10/- I can take advantage of any unexpected price movement above Rs. 410/My belief is that Reliance will go up to Rs. 425/- in near future, but I do not want to take delivery in spot market I also want to leverage or my cash position. My downside risk is limited up to Rs. 10/Why should one write a call option? If someone is very bearish about Reliance and think that it will not cross Rs. 410/- till august then he can write a call option at strike rate of Rs. 400/- with a premium of Rs. 10/-. In turn writer assumes an upside risk opportunity loss of option buyer at a premium of Rs. 10/ Pay off form buying a call option
Profit
400 -10 410 Price of Reliance
Example of a put option: Suppose today I have purchased a following American put option on Infosysy, I have paid Rs. 150/to hold this option. (Spot price is Rs. 4100/-) Strike Price: Rs. 3900/25
Maturity:
Last Thursday of August 2001 (if working day)
Then up to closing of trading session on last Thursday of August 2001, I have right to sell Infosys @ Rs. 3900/-. This is my right not an obligation. Obviously, I will exercise my right only if before maturity Spot price of Infosys is less than Rs. 3750. /- (assuming no other charges). If I do not exercise my right than my maximum loss will be Rs. 150/- only.
26
Why should I buy a put option? I have bought Infosys @ Rs. 3850/- with a bullish view and price target of Rs. 5200/- on upside. By paying on Rs. 150/- I can hedge my position for any downfall below Rs.3750/-. My belief is that Infosys will go down to Rs. 3200/- in near future, but I do not have delivery to sell in spot market and I have cash in hand to leverage. My downside risk is limited. Why should one write a put option? If someone is very bullish about Infosys and think that it will not break below Rs. 3750/- till August then he/she can write a put option at strike rate of Rs. 3900/- with a premium of Rs. 150/- In turn writer assumes a downside risk option buyer at a premium of Rs. 150/Pay off buying a put option
3000 3750 -150
Price of Infosys
27
What is minimum contract size? The Standing Committee on Finance, a Parliamentary Committee, at the time of recommending amendment to Securities Contract (Regulation) Act, 1956 had recommended that the minimum contract size of derivative contracts traded in the Indian Markets should be pegged not below Rs. 2 Lakhs. Based on this recommendation SEBI has specified that the value of a derivative contract should not be less than Rs. 2 Lakh at the time of introducing the contract in the market. What is the lot size of a contract? Lot size refers to number of underlying securities in one contract. Additionally, for stock specific derivative contracts SEBI has specified that the lot size of the underlying individual security should be in multiples of 100 and fractions, if any, should be rounded off to the next higher multiple of 100. This requirement of SEBI coupled with the requirement of minimum contract size forms the basis of arriving at the lot size of a contract. For example, if shares of XYZ Ltd are quoted at Rs.1000 each and the minimum contract size is Rs.2 Lacs, then the lot size for that particular scripts stands to be 200000/1000 = 200 shares i.e. one contract in XYZ Ltd. covers 200 shares.
28
Kotak Securities
The company raised over Rs. 19000 crore in the primary market in 1999-2000 alone, and this is twice the amount raised by its closest competitor. In the secondary market, the broking turnover of Kotak uncertainties today, it had become imperative to take control of your financial assets. With lot of external factors affecting the volatility of the market, it is important to channelize investments in an organized fashion. The virtual world of Kotakstreet provides that pedestal, where you as an investor can take control of all investing needs.
Kotakstreet, the retail arm of Kotak Securities, caters exclusively to stock broking and investment requirements. Kotak Securities needs no introduction as one of the largest stock broking houses in the country and a leading distributor of primary market offerings. Kotak Securities limited is a joint venture between Kotak Mahindra Bank and Goldman Sachs, the international investment banking and brokerage firm was Rs. 40000 crore plus during2000-2001. Kotak Securities is a corporate member of both the BSE and the NSE. It is also a depository participant with the National Securities Depository Limited (NSDL) for trading and settlement of dematerialized shares.
29
Kotak Securities - Areas of businesses
Institutional Stock Broking: It covers secondary market broking for foreign and Indian institutional investors in Indian equities. It also has a special research cell with sectoral analysts.
Private Client Services: This is a special investment division for high net-worth individuals, non-resident Indian investors, trust, corporate and banks. This service is also available at the Group's offices in Dubai and London. Client Money Management: This division provides portfolio management services to high net-worth individuals and corporate. The expertise of Kotak in research and stock broking gives it the right perspective to provide all the investments for advisory services.
Retail distribution: Kotak Securities has a comprehensive retail distribution network, consisting of approximately 7000 agents, 13 branches and over 20 franchisees across India. This network is used for the distribution and placement of company fixed deposits, mutual funds, Initial Public Offerings, secondary debt, equity, and small savings schemes. Depository Services: Kotak Securities is a depository participant with the National Securities Depository Limited (NSDL) for trading and settlement of dematerialized shares. Since we are also in the broking business, investors who use the depository services get a dual benefit. They can use our brokerage services to execute transactions and our depository services to settle them. Report on Summer Training at Kotakstreet.com 30
Online Share Trading/ Internet Share Trading

Online share trading is a service offered on Internet for the purchase and sale of shares. In the real world, we place orders verbally (personally or telephonically) or in a written form (fax). In online share trading we access the stockbrokers website enabled PC and place orders through the brokers Internet based trading engine. These orders are routed to the stock intervention and executed thereon in a matter of a few seconds.
Emergence of Online Share trading:

Electronic commerce is associated with buying and selling over computer communication networks. It helps conduct traditional commerce through new ways of transferring and processing information. Information is electronically transferred from computer to computer in an automated way. Ecommerce refers to the paperless exchange of business information, using electronic data interchange, electronic mail, electronic bulletin boards, electronic funds transfer and other network-based technologies. It not only automates manual processes and paper transactions, but also helps organizations move to an electronic environment and change the way they operate. 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 online and net broking enables him to trade on a click. In Internet trading, the Net is used as a medium to communicate orders to the stock exchange through the brokers website. E-broking sites would also provide the client with the opportunity to buy or sell securities from the clients home or office. The investors would be able track the fluctuations in a particular stock and the market as a whole, while deciding to execute the order and also while the order routing system on which net trading will be done is compatible with screen based trading terminals used today. Internet trading brings in total transparency between a broker and an investor in case of secondary market operations. When the open outcry system was prevalent, only the broker knew the actually transacted price. This practice diminished significantly when it was taken Report on Summer Training at Kotakstreet.com 31
over by screen based trading. With online trading investors can now see for themselves the price at which the deal takes place. Investors access a wealth of financial information on the same time as do market and financial professionals including breaking news, developments and market data. Online brokerage provides investors the tools to analyze the information such as research reports. Online trading is leads to freedom form paperwork. Online trading leads to trading from any part of the world in a completely secure environment. Objectives: Internet trading is expected to: 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 systematic risks.
Emergence of Online Share Trading In India:

The National Stock Exchange (NSE) has been the most proactive in bringing about most of these technological innovations, including online trading. It started way back in February 2000 with the Kochi based Geojit Securities which conducted their first Net transaction when 100 shared was traded by SEBI chairman D R Mehta for Geojit owner Kurian. Report on Summer Training at Kotakstreet.com 32
Importance of Online Trading to India:

Online trading is major step that takes India closer to the most advanced capital markets of the world, where a large chunk of trade takes place on the Net. This shall also facilitate foreign investment in India. It will also reduce transaction costs, increase liquidity in the market and ensure total transparency. It allows quick and easy access to valuable research and information to an investor and enables him execute transactions faster and more efficiently on a real time basis. The volume of trade will also increase and will provide depth to the market.
Obstacles to the growth of online trading:

Poor Internet penetration, bandwidth and ISP infrastructure have been obstacles to the growth of online trading. Online trading faces some problems relating to infrastructure and understanding of the concept. Inefficient or not so efficient banking system is also a hindrance. It is resisted by old brokers and even investors. Lack of investor education and resistance from stockbrokers also pose some problems. It changes the very basis of relationship of client-brokers, which is, from personalized to professionalise relationship. Lack of confidence in the online model has prevented online broking from taking off. Not only is consumer but also even broker have not been forthcoming to accept Internet trading.
While there are many factors that need to be understood to justify this as simple fact is worthy of note. The average age of the Indian Internet user according to a recent IDC survey is 27 years. The average age of the head of the Indian equity investor household revealed by the SEBI in 2000 is 45 years. The older, experienced equity investors online today and the fact that older, mature investors are not techsavvy hence unlikely to move to online trading is a major barrier to the growth in India.
Will online share trading ever take off in India?

In the US markets, online brokerage has significantly changed the dynamics of the market place, resulting in one of the biggest shifts in the individual investors relationship with their brokers. In the US, 82% 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 a nation with a middle class population of 200 million, most of whom are better, financially comfortable tomorrow, the stock market is obviously the perfect place to invest-especially when you consider that stock markets can make you considerably rich in as short span of time. However, Indias scam scarred bourses havent exactly inspired trust with investors who want to strike it rich, but who arent too well-versed with the game. The last few years of the last century a wave of technology enhancements sweeping though share markets, wiping out archaic conventions. The processes like online trading are coming to India.
Playing the online game:

According to the BCG study estimates the on line trading in India is about 2% to total traded volumes compared to countries like US (40%) and UK (20%). Nearly 70 brokers have taken permission from NSE to trade online until date. However, all are not very active says market participants. There are currently close to 50 online brokers In India. The following are the some of the online brokers: ICICI Direct.com Kotakstreet.com Sharekhan.com India Bulls.com Geojit secutities.com HDFC sec.com Tatadw.com 5 paisa.com
34
Most of the volumes take place on NS. The daily volumes in cash market range between Rs.200-300 corer and in F &O segment it ranges between Rs.200-400 crore. Better and reliable connectivity is rapidly increasing the penetration of online trading. Although online is reportedly much more profitable as compared to offline business, the waiting period is quiet high, as the initial expenditure is high. According to an estimate, Rs.5-10 corer will need to be spent on infrastructure and networking, depending on the scalability of the software. An equivalent amount will be required for branding and distribution, as people still need human interface for filing up forms, etc. Few firms are said to have major share in the business according to market sources. The major amongst them are ICICI Direct.com, which is the market leader. The total number of accounts registered for online trading ranges between Rs.3-4 lacs, out of which about 30,000 to 40,000 are active.
Choosing the Online Trading Broker:

Choosing an online trading brokerage may feel like a daunting task when you realize that there are literally hundreds of them to choose from. So where does one begin? First, it is important to make a self-assessment as to your familiarity with online trading concepts. If you are the type of person that craves market news and information and you feel you have a good grasp on the online trading requirements, or if you have had prior experience with trading in general, then perhaps you can use an online trading firm with less hands on guidance from your broker. On the other hand, if you are a new trader with little experience in the online trading realm, then perhaps it is better to get a higher personalized level of service from your broker. They can guide you as you select your stock or other investment choices and help build a portfolio well founded in sound investment principles. The slightly higher fees for such a service is going to be worth having the extra guidance as you get things started. Beyond looking at the basic services such as the quality of the market news and charts, and general reputation of your online broker, it is also important to consider some other important factors.
Checkpoints for choosing E-brokers:

35
The investors should check for reliability, easy access, speed and sturdiness and for this, checking should be made to: Response time when investor is logged on to the sites net trading screen. How fast the data is displayed on the screen. Time gap between the price shown on the market watch screen and tat on the stock exchange at any point of time. This gap should be ideally 0-20 seconds. Confirmation of the execution of trade should each the investor with least possible time, preferably within 30 seconds. Uptime of the sites net trading module during trading hours should be given instant. Safety measures: For safety of transactions, world over, and sites protect the connection between the clients computer and brokers server, using SSL technology with 128 bit encryption keys. SEIBI has also asked stock exchanges to ensure that electronic records maintained by brokers are not prone to manipulation. Adequate back up and storage facilities are also mandatory. User identification numbers and passwords will also ensure safety and secrecy. SEBI Guidelines: According to SEBI guidelines on Internet trading, brokers providing E-trading must have a minimum net worth of Rs. 50 lacs, besides obtaining specific permissions of the stock exchange concerned. Stock exchanges should ensue that the systems used by the broker provide for security, reliability and confidentiality of data through use of the encryption technology. For signatures, participants should use authentication technologies and certification agencies as and when notified later. Stock exchanges should also ensure that brokers maintain adequate back-up systems and data storage capacity. Brokers should have adequate system capacity for handling data transfer and arrange for alternate means of communication in case of Internet failure. The following security features are mandatory for all Internet related trading systems: User ID. First level password Automatic expiry of password at the end of reasonable duration. All transaction logs with proper audit facilities to be maintained in the system. 36
Secured socket level security server for access through Internet. Suitable firewalls between trading set up directly connected to an exchange trading system and the Internet trading set up.
SEBI has decided that Internet trading can take place in India within the existing legal framework through use of order routing systems, which will route orders from client to brokers, for trade execution on registered stock exchanges. SEBI has also recommended minimum technical standards for ensuring safety and security of transaction between clients and brokers, which will be enforced by the respective stock exchanges. Brokerage Cost: It is important to weigh up the subscription and trading costs charged by an online broker against benefits offered by the site. All online brokers display their charges on their sites. Some make sure you find the charges easily, while with others you will have to search a bit. Rate refresh: Rate refresh has to be real time with no time lag. The speed and reliability comes with huge investment in technology. It is always advisable to check rates of online broking sites with BSE/NSE terminal rates. Speed of execution: System has to be fast and reliable that does just one job executes your trades. The last thing you need is a site that is heavily congested with the users who are downloading heavy jpeg graphs or pulling the latest story why market is moving. The site should be one click wonder where squaring off all your positions or canceling all your pending order takes one click and a confirmation of action. Trading limit: For trading, all sites provide four times buy and sell limit against margin money put in by customer. Couple of sites also provides margin funding for buying of shares. Report on Summer Training at Kotakstreet.com 37
Free trial period: Site should allow users free trial period to familiarize yourself with system before you decide to become trading member of the site. Intra-day chart/historical chart: The site should provide intraday chart tick by tick and price data/historical chart for technical analysis by investors of particular scrip. Lot of people trade based on charting packages. Before you can trade, you need to open an account and register as a trader as with online broking site. This involves filling up trading account form, demat account form and for faster of moneyInternet enabled bank account. Please read terms and condition of each site before commencing to deal with them. As per SEBI rule, photo id proof and current address proof is a must for opening trading account. Online share dealing on the Internet is now a way of life for thousands of investors. 80% of South Korea and 30-40% US traders are executed online. If you want to deal in shares, there is no easier way. Technology and back office infrastructure: In these early months, online trading is likely to attract a host of entrants as India has already seen so far. However, the key differentiators will be the investment in technology and back-office infrastructure. Even if small time e- broking outfits make the initial investments in technology, the recurring expenses, which would also be high, may prove to a burden in the long run. For investors looking at online trading from a medium to long-term perspective, sites with deep pockets and a pedigree will be a good choice.
38
Market evolution of online Share Trading

Market Evolution is a process that parallels the product life cycle. As a product category
matures, the industry goes through stages that mirror the five stages of a product life cycle. Market Evoltion focuses on the what is happening to theoverall market , it yields the market-oriented picture than the product-oriented picture. Market Crystalization: Latent demand for a product category is awakened with the introduction of the new product. Market Expansion: Additional companies enter the market and more consumers become aware of the product category. Market Fragmentaion: The industry is subdivided into numerous well populated competitive groupings as too many firms enter. Market Consolidation: Firms start to leave the industry due to stiff competition, falling prices, and falling profits. Market Termination: Consumers no longer demand the product and companies stop producing it.
39
Online Share Trading Business at its Growth stage

Market Crystlization (Emergence) The need for speedy, simple and paperless job in share broking was realized in the market. The intiation was taken by the Geojit secutities.com a Chennai based company. In online share trading the clients of brokers neither gives cheques nor receive bills or contacts notes. The Payment is done by Internet banking. The contract notes, bills even the memebrs registration is online. Trading is also online no need to call up broker to ask quote and to buy and sell the shares. The techonogy has smothen all the process. Market Expansion This market is now at grwoth stage. Additional palyers have come up. There are few major players. 1. Kotaksteet.com 2. ICICIdirect.com 3. India Bulls 4. Sharekhan 5. 5paisa.com Each payer has some diffentiation in its product. Each player is trying to establish in the same market.
40
Kotakstreet.com
Kotakstreet.com is the online trading service launched by Kotak Securities, a leading player in Indias capital market. It is affiliate to Kotak Mahindra finance limited.Kotakstreet.com is the largest stock broking houses in the country and is a registered Trading member on the Bombay Stock exchange (NSE) and over the counter exchange of India (OTCEI). Kotakstreet.com is the Internet share-trading arm of Kotak Securities Ltd. With kotakstreet.com, you can buy and sell shares online, invest in mutual funds, make and receive payments from the comfort of your home or office, anywhere in this world. Kotakstreet is also a depository participant with limited (NSDL). Kotakstreet.com offers Internet trading facility on the National Stock Exchange of India (NSE). Kotakstreet.com offers a wide array of products and services. Each service is designed to meet specific objectives, catering to different investment needs and trading styles.
41
Products and Services Offered by Kotakstreet:
Shares
Kotak offers a large range of products and services to meet all the investors needs (savvy or starter) Cash Margin: Kotak offers trade up to four times the cash margin deposited e.g. if 10,000 Rs. Are deposited with Kotak than the investor can trade up to Rs. 40,000. Green Channel:
In this the investor can deposit the shares lying ideal and Kotak will treat 60% of their market value as equivalent cash margin and give the investor a trading limit that is four times the equivalent cash margin. Free Way: Kotak allows the investor to pay cash margin and get a trading limit worth 4 times the margin money deposited. Trade as much as investor wants within a maximum exposure of 5 lacks on a flat fee of Rs999. per month. A sum of .03% will be charged on each transaction to cover levies, service tax and other charges. Deliveries will be made as per normal delivery slabs. High Trade: Kotak allows the facility of trading up to 6 times the margin amount in the high trader plans. This is auto square off product where all cash orders will be squared off after 2.55 per month; however sell orders marked for delivery will automatically not be squared off. The investor also use high trader in combination with cash margin, green channel of freeway.
42
Cash Express Way: As a customer to kotakstreet.com registered under any of our three plans listed above the investor will have the facility of spot payments available at the transaction charge of 0.05%. The investor can sell shares, deliver them to Kotakstreet, and then request for the payment by contracting any of Kotaks office or e-mailing at cashexpressway@kotakstreet.com, kotakstreet.com will process the request and issue the payment within 48 hours of receipt of the complete request. Kotakstreet frees the investor from the burden of going through the settlement cycle and waiting for pay out of the stock exchange. This product can be used in conjunction with one or more of the products. Maximum brokerage wills not exceed the limits prescribed by SEBI.
Derivatives Product
Trade and derivatives using any of Kotaks products and get the four times multiple in case a stock base derivative and a ten time multiple in case of an index based derivative.
Initial Public Offering (I.P.O.)

The investor can also apply for IPOS at a click of a button.
Mutual funds
Place orders, swap, and create SIP/SWP in a range of mutual funds, all of this online, without any paper work.
Research and value based products

Morning calls: The investor will get per market analysis and recommendations, which are backed by research and technical analysis in the shares in the derivatives and cash market.
43
Hot picks: The investors receive tips and intra day trading calls during the live market hours. Equity Portfolio recommendations: Create and track the equity portfolio, as advised by expert portfolio fund managers. Stock ideas: Kotak offers stock fundamentals analysis and include specific reports, which are based on critical developments in the industry.
Product advantage of online
Instant credit for delivery marked traders is a great product advantage offered by Kotak Street. When the investor sells shares, he does not realize the payment immediately. The exchange makes the payment to the broker according to the settlement calendar. After receiving payment from the exchange, the broker makes the payment to the client. Realization of the sale proceeds of the shares take minimum 4days from the date of the sale depending on what day of the trading cycle the shares were sold. But with on-line the moment the investor marks them for delivery on the site; it is credited to the investors account and treats as the base capital. The investor can also pay the margin money online through the Internet broking account of Citi Bank, Kotak Mahindra Bank, HDFC Bank, UTI Bank. The investor can also request for the change of product type by filling the on-line request form, and the change of the product will be in effect from the first of the following month.
44
Speciality of the products

The Three in One Account:
Integrate your banking and demat accounts and trade in shares without the botheration of taking settlement cycles. K.E.A.T: Kotak E- Trading Excess Terminal: It is an online trading system that allows you to view tick by tick live rates of your watch list of shares, set price and see derivative chains and many more features. The investor can view unlimited historical charts for a script, sets scripts alert, use most of the charting tools, view the graphs view dynamic net positions, dynamic profit and loss and select indices\sectors of businesses. It also enables to see the trends in the market and take decisions based on the rates. It gets excess to intraday charts EOD charts (right from NSE inception), scrip alerts extra. All these charts come with almost indicators that help the investor decipher the market trends. This software is full customizable as one can view all the4se charts on one screen. These are also available with the order report, trade report and the net position on one screen helping the investor.
BNST-G: Buy now and sell tomorrow with a guarantee. It lets the investor sell 75% of the specified shares the investor has purchased before he gets the delivery of them from the exchange to increase the liquidity and take the benefit of any opportunity that may arise in the market by settlement. It is completely automated services. The investor need not worry about the short allotment. BNST-G is available at no additional charges. The shares that have been bought in BNST-G and subsequently sold will be first credited and then debited from the pay in and pay out. The customer here would not require doing anything different from his normal transactions.
45
Call and Trade: The investor can place orders or get information on shares prices, while on the move. He can just call on the toll free number 1600-22-5075, to speak to any of the Kotaks dealers. The customer can forward the request for selling the shares which are BSE shares and trade to trade settlement (script will be sold in BSE, same will have to be forwarded by the customers else the order will not be placed) AMO orders can be placed from 4:15 p.m. to 5:30 p.m. and post closing orders from 5:30 p.m. to 4:00 p.m. After Market Orders:
Place orders or get information on share from Kotak after market hours. These orders will be placed in the market on the next trading day.
Details of Accounts and Different Charges

To be a member of Kotakstreet client has open one Bank Account,E-broking account and one Demat account. Bank Account: Bank account can be open with either of four banks, viz Kotak Mahindra Bank, UTI Bank, HDFC Bank, CITI Bank. Client can use the facility E-Banking for making payment. Bank account of the client will link with the E-broking account. E-Broking Account: The E-broking account for the maintained for Margin amount, brokerage payment, custody charges, and DP charges and other miscellaneous charges. Margin money will be kept in this account. Clients brokerages and other charges will be debited in this account. If client sell the securities then amount received form will be credited in this account. Clients ought to maintain minimum balance of Rs. 1000/-.in this account. All the payment in this account will make through Bank Account. Demat Account: Report on Summer Training at Kotakstreet.com 46
Demat Account is for preserving clients share. Demat account will be registered with NSDL. Even if the client has Demat account elsewhere he has to compulsorily with Kotak securities. In case clients use Green Channel Product (Share as Margin) will have two Demat account. In One Demat account this Margin Securities will be freeze.
Different Charges
Registration Charges Margin money Brokerage Demat Maintenance Demat Transaction Custody charges Rs. 500/- (for lifetime) Rs. 5000/- (minimum) As per Slab mentioned below* Rs. 240/- p.a 4paisa on each buying and selling transaction Rs. 1.25/- per script (Monthly)
*Brokerage
CASH MARKET-SQUARRING UP VOLUMES PER MONTH >5 CRORE 2 CRORES-5CRORES 25 LAKHS-2CRORES 10LAKHS-20LAKHS <10 LAKHS BROKERAGE 0.04%BOTH SIDES 0.05%BOTH SIDES 0.06%BOTH SIDES 0.08%BOTH SIDES 0.10%BOTH SIDES
(Subject to minimum brokerage of Rs. O.05 per share)
47
CASH MARKET- DELIVERY VOLUME VOLUMES PER MONTH >2 CRORES 60LAKHS-2CRORES 20LAKHS-60LAKHS 10LAKHS-20LAKHS 5 LAKHS-5 LAKHS <1 LAKH 0.30% 0.40% 0.50% 0.65% 0.20% 0.25%
(Charge of Rs.25 per call after the first 20 free calls in a month) DERIVATIVES MARKET VOLUMES PER MONTH >10 CRORES 5.5 CRORES 10 CRORES 2 CRORES - 5.5 CRORES < 2 CRORES
BROKERAGE DAILY SQUARE UP 0.03% BOTH SIDES 0.04% BOTH SIDES 0.05% BOTH SIDES 0.07% BOTH SIDES
BROKERAGE SETTLEMENT 0.05% BOTH SIDES 0.05% BOTH SIDES 0.08% BOTH SIDES 0.10% BOTH SIDES
48
Functional areas at kotakstreet

A.) Lead generation B.) Sales C.) Activation D.) Relationship Officer E.) Advisory Desk
Lead Generation:
Keeping pipeline full of qualified lead is critically very important in todays challenging business climate. The consistent lead generation has become imperative for survival in many companies. Kotakstreet uses following avenues for lead generation: 1. Customer relationship 2. Cold calls 3. Tele marketing 4. Flexi stalls 5. Participation in Business fair 6. Visitors of the website 7. References Customer relationship:
Customer relationship Marketing is a practice that encompasses all marketing activities directed toward establishing, developing, and maintaining successful customer relationship. The focus of relationship marketing is on developing long-term relationships and improving corporate performance through customer loyalty and customer retention. With growing buyer concentration-up to 90% of business coming from 10% of customer in certain industries-and declining effectiveness of incentive to channel partners, companies are on the lookout for alternatives to traditional ways of influencing buying decision.
49
B M D F D A O Y O E R T T B M O H S T .
A X O C D E
F M
I C S
E . Y 3 S
R H A R
S C Y S
L E
I S KT C K CI N R G P E R
Q K U I TE
N E T SR I
Cold Calls:
Cold calls are visit to a sales prospects that do not know you. The objective of cold call is to gather information about the prospects potential, educate the benefit of your product or services to get appointment. There are several challenges to make a cold call and they include - fear, getting past assistance, secretaries, and other gate keepers, finding the right contact, and finding the way to make a pitch quickly that will move the sales process forward. Tele Marketing: Telemarketing is one way that business can advertise their product and offer their services. They will often use professional telemarketer or call centre to make telephone calls and faxes to potential customer on their behalf. Some telemarketing organization use automatic dialer to place telephone calls or send faxes. A dead air or hang-up call will occur if a telemarketing representative is not available when the call is answered. The product is explained to customer on phone and the appointments are taken from the interested parties. The lead thus generated is distributed amongst the sales executive in equal base. The telecallers use Tata Yellow Pages, and various other databases like list of Chartered Accountants, Members of NSDL, etc.
50
E H
L E B
E A
C D
I N
Flexi stalls: Flexi stalls are the folding and handy stalls that can be put up at any place within 5-7 minutes. Flexi stalls are usually used to create awareness, promote the product and to generate lead. The stalls are put up in any public place like road, commercial centers, parks, colonies, etc. otaks sales executives are expected to put up flexi stalls. They usually put up the stalls in commercial center and the one visiting the stall is asked his details. This leads to lead generation. The sales executive person to sell the product . Participation in Business Fair: Participation in Business fair leads to awareness and lead generation. The company puts up the stalls with its banners on. The brouchers are distributed and the details of the contacted ones are taken. The interested ones are contacted again and after taking the appointment the sales executive visits the client. Visitors of the Website: The details of the people visiting the site of Kotakstreet are collected and the data is thus gathered. The lead is generated for entire country. The lead is thus then distributed according to the regions. contact the interested
References: Report on Summer Training at Kotakstreet.com 51
The existing clients when are satisfied with the product and the service gives references. The references are contacted and explained the product.
Sales
This is the most important aspect of marketing as this leads to revenue generation for the company. Selling of the product is done aggressively to increase the client base and the thus become the market leader. Sales executives are given the lead, generated by the telecallers or else sales executives generate leads through flexi stalls, cold calls or references. Every month each sales executive is given a target to be achieved. At the end of the month (28th) the target should be achieved. The target is different for each executive. The target meet is organized every month to decide the target of each sales executive. The target is decided on the basis of various criteria, which are as under: Experience with the current job Educational Qualification Past performance Personal abilities of the individual
H T
K M l e e a
t a
S g
t r e e r
e r i t o r y ( S t a t e C i t y H
a n a v e l ) d
C T T e e e a m
i t y L Te
H ea ad
e m e
a r
C l eT a ed a emr
i t y
d l e a d a e r l e s
l eT a ed a emr
l eT a ed a emr
l eT a e da em r
a m x e c ( 8 - 1
u 0
o Tf eS a a m l e s o Tf eS a a m l e s o Tf eS a a m l e s o Tf eS a a m l e s o Tf eS a a m l e s o f S t i ve e x e c u t i ve e x e c u t i ve e x e c u t i ve e x e c u t i v e e x c u t i v e ) ( 8 - 1 0 ) ( 8 - 1 0 ) ( 8 - 1 0 ) ( 8 - 1 0 ) ( 8 - 1 0 )
The sales executives who gets the maximum accounts in the month is considered as the Star executive and his name is displayed on the notice board. Each sales executive is allocated a team (Winners or Achievers) with a team leader who marks the performance of the team leader. The aim is to develop healthy competition among the sales executive.
52
Activation
The online product sold by Kotakstreet is technical in nature and hence requires assistance to the customer in initial few days and later on as and when required. The activation personnel install the product KEAT in the personal computer of the client after the formalities are finished by the sales executive. The activation personnel personally visit each client and demonstrate the product to the client. The activation personnel actually deal on the behalf of the client to show how exactly it functions. There are one more activation personnel who look after the day-to-day queries of the client with the product.
Relationship Officer
Maintaining the long-term relationship with the existing clients is of utmost importance in any business. It is rightly said that it is much more cheaper to maintain the old client than to generate a new client. The major task of the relationship officer is to track the inactive clients and find out the grievances and to make the new clients comfortable with the new system. The Relationship officers are expected to visit the new clients after the week of the activation and keep in touch with the existing clients and solving their queries.
The Advisory Desk

The advisory desk of Kotakstreet is its Unique Selling Point. The major drawback of the online share trading is that it misses the touch of the personal guidance that one gets from the traditional broker. Kotakstreet has developed an advisory desk that calls up its clients and gives the advice for intraday, delivery and derivative market based on the equity research done at the Mumbai head office. The advisor calls up the client in the morning and gives recommendations on daily basis. The advisor usually focuses on the clients on three basis: HNI clients (High Net worth Individuals) One who provides good brokerage Potential clients- One who provides good brokerage but can still gives better brokerage. Inactive clients- One who gives less brokerage or are not using the product of kotak.
The main aim of the advisory is to see that the HNI clients are RETAINED Report on Summer Training at Kotakstreet.com 53
and the Potential clients are guided more and hence converted to HNI and the inactive clients should be made active by guiding, solving their queries and motivating them.
54
Advertising and Promotion

Organizations handle advertising in different ways. In Kotakstreet advertising is handle by Marketing Department at Mumbai. The Job this department is to propose the budget, develop advertising strategy and approve ads and campaigns. business and trade shows. nature. Kotakstreet does more promotion activities than advertising. It introduces many schemes often. Following are some of recent schemes of kotakstreet.com Clients get Client (Every one does marketing): In new era as per Marketing concept, not only marketing department does marketing but everyone does marketing. Here in Kotakstreet even clients do marketing. Kotak has introduced Clients Get Clients scheme. This is the ongoing scheme of Kotakstreet. Under this the existing client will be rewarded if he gives new clients. No of Clients 1 2 3 4 5 6 7 8 9 10 11 Reward Rs. 300credit into ledger in July Rs. 500credit into ledger in July Rs. 800credit into ledger in July Executive bag and pad folio Travel bag Discman-VCD/CD player Digital organizers Code less phone VCD Player 5-in-1 DVD player 55 Kotakstreet advertise itself on T.V as well participate in Kotakstreet is not aggressive in marketing but aggressive in its
performance. As Kotakstreet is in its inception stage advertisements are generally informative in
12 13 14 15 and above
LCD colour TV (970-2.3width) 5-in-1 VCD/MP3/GD/Radio player Digital dairy Kodak digital camera
Chartered accountants: Under this Scheme in the month of June lifetime registration fees of Rs. 500/- for C.As and their HUF was waived off. Special brochure was been sent to all the C.As of Ahmedabad and leads were generated of the interested C.As by the telecalls. The first hundred entries also received a wristwatch from Kotakstreet.com Trading Mela: Kotakstreet has tied up with some cyber cafes where Kotakstreets client can use internet for trading in market hours at confessionals rates by this schemes even cyber cafes also gets permanent customers. Owner of cyber cafes will be rewarded if it gives new client. Awareness campaign: Kotak often put flexi stall in different areas of the city. By that they generates leads as well create the awareness. Contest:
PREDICT THE SENSEX AND FLY TO EUROPE In the month of July Kotakstreet had held the contest. One has to predict the after Budget closing Sensex of July 9th 2004. The participants who wanted to play contest had to log on to Kotaks Website Kotakstret.com. Advertisements for the contest were given on CNBC TV 18 and in Regional News papers. In Gujarat Advertisement was given in the Gujarat Samachar.
56
This was pull strategy of Kotakstreet used by which thousands of entries were received for the contest. Even if person could not predict the sensex will at least visit the site and will get to know about the product. Large number of leads was generated as participants registered their name, address
Our Contribution in Marketing and Promotional Activity

Commercial Complexes During our tenure, we were asked to generate leads by cold calls. We covered many commercial buildings in Ahmedabad. Like SAKAR- II, III, IV, ABHIJIT I, II Madhuban (Asharam Road), We generated leads form there and passed on the same to the Kotakstreets Sales-Executives. Jwellers We also visited many Jwellers at C.G Road as we thought they can our target market and we certainly got some lead of HNIs, and same were passed on to the HNI desk. New Cloth Market We also made calls to the New Cloth market, were Ahmedabds big cloth merchants have their offices, we found there that many merchants are HNIs and they all were dealing by Anagram as it has its office in the same market. Convincing such client was very difficult. Awareness Campaigns During our tenure we put stall at Atira, Kamdhenu complex (ASE), Sahjanand complex (Shahibaug) and DOS Colony (Vastrapur). We generated leads by putting flexi stalls. Putting Flexi stalls was not permitted everywhere. We had to take prior permission form the respective authorities at each place. We generated leads from each places and same were passed on to the respective authority. Tie-ups with ISP Providers Report on Summer Training at Kotakstreet.com 57
During our tenure, we contacted ISP providers for the Cross-Promotional activities. We visited ECOMM, IQURA, ICENET, JINDAL and SATYAM. We found that ECOMM was more into cross-promotional activities. Cross promotion activities includes promoting to each other which leads to win-win situation at the both ends. ECOMM Private Ltd. also had its own products for promoting its client brand. 1. Bulk mails 2. Pop up advertisements 3. Banner advertisements 4. Contest 5. Discount zones
We asked them give us proposal for all such branding advertisements. We submitted the proposal with Mr. Arpit Desai (Territory Manager, Gujarat), which is been sent to Head Office (Mumbai) for the further approval.
58
Porters Five Force Corporate Strategy

In Michel Porters view an organizations ability to compete in a given market is determined by that organizations technical and economical resources, as well as by five environment forces each of which threatens the organizations venture into a new market. The manager must analyze these forces and propose programs for influencing against them.
Threat of New Entrants
Bargaining Power of Suppliers
Jockeying for position among current competitors
Bargaining Power of Customers
Threat of Substitutes products or services
59
Rivalry among Competitors

In the online share trading including kotakstreet there five major players. 1. ICICI direct.com 2. Kotakstreet 3. Share khan 4. India bulls 5. 5paisa.com There are several other players like HDFC securities, Investmetz.com, Geojit. Securities Ltd.and many more. Comparison of various competitors: Parameters Brokerage Advertise Kotakstreet 65paisa 1.T.V advt ICICIdirect 85 paisa 1.Internet advt (Banner pop-up advt ) Sharekhan 50 paisa 1.Advt on CNBC 3. Internet Banner mails.) Very Good 750/Indiabulls 50paisa 1.Advt on CNBC 2. Newspaper 3.Internet mails, (Banner advt, Bulk mails) Very good 500/Good 500/5paisa 50paisa 1.Internet advt.
advt 2.Newspaper
2.Advt on CNBC (Bulk Website technicality Registration fees Good 500/OK 750/-
The competitors of Kotakstreet have aggressive style of marketing. ICICIdirect.coms reach is very high and it is market leader. India bulls has technical superiority whose server dont goes down as the problem with the rest of the all players, Share khan is spending huge amount on advertising it has cover all most all media (T.V, Newspaper, Internet advt,). It invests 7% of its revenue on advertising and promotion. Where as Kotakstreet has advisory desk by which it attracts the new retail investors. Kotak is well known for its research team who guides its client the stock market
60
Looking at the present scenario of cutthroat competition, Kotak has its future plan to advertise on large scale. It is building up the infrastructure to posses technical superiority.
Threat of New Entrants

Getting into the online share trading business requires huge amount of investment. Kotak has invested 400-500 corers. ICICIdirect and Kotakstreet are the oldest players had started their operation in year 2000. Later on Share khan, India bulls, 5Paisa, HDFC securities, UTI bank, Investmentz.com have come up. There is no big barrier to the entry by any company in this market. It requires around Rs.5-10 crore to be spent on infrastructure and networking, depending on the scalability of the software. An equivalent amount will be required for branding and distribution as people still need human interface for filling up forms, etc. so many banks with strong financial support can certainly be the threat. Motilal Oswal in Mumbai is now into online which is a threat in Mumbais market. In future when NSE will permit only t+1 settlement then certainly online share trading will help the investors, so looking at this future scenario many other players may take advantage and enter into this market.
Threat of Substitutes
Because of high uncertainty of Indian stock market, Investors are now attracted towards other safest mode of investments. Like RBI bonds, Bank F.Ds, Insurance, Mutual Funds, Pension plans, Post- off ice schemes. So all these mode of investments can be threat to the retail broking businesses. RBI Bonds: Safe mode of investment fixed return, which is generally higher than Bank F.Ds. The problem is certainly with that; it is generally by the investors as secondary market is not very active.
61
Bank F.Ds: Safe mode of investment fixed return, are liquid often. Now days Bank scams and all have created some resistance as well bank rates are very low. Mutual Funds: A diversified Investment, which helps small investors to get good return even on their small investments. This industry has made significant in the recent years. Good companies like Franklin Templeton, HDFC mutual Funds, ICICI mutual funds, DSP Merylinch and JP Morgan and Of course Kotak Mahindra Mutual Funds provides handsome return to their client through open ended and close ended schemes. This industry now attracts many share investors to switch their investment in mutual funds. Insurance: In recent year, Insurance is kind of saving as well investment. Generally, salary class people invest some part of their savings in Insurance. Many private players have come up in this sector. People invest in Life Insurance as well in General Insurance. There are many players in the both types of Insurance. Insurance companies also introduces pension Plans as well Education plans. Post office Savings: Post Office offer varieties of schemes like Kisan Vikas Patra, Indira Vikas Patra that are like F.D and gives good return as well the safe mode of investment. All the above mentioned investments can be the substitute for share investors. The Mutual Fund and Insurance sector is burgeoning in the recent days. As per the Findings from the Secondary data in the Investment pattern of 100 Investors as follows
62
Percentage of Investors
5% 2% 2% 13% 19% Stock Market Bank Insurance Govt. Sec 15% 20% Mutual Funds IPO Gold & Silver 24% Others
Offline broking as the Substitute for e-broking business: In India, 98% of the retail broking business dominated by the traditional offline brokers. The offline broker provides with the personal touch in their services. Moreover, in country like India the technology breakthrough is possible any time.
Bargaining Power of Buyers

Offline Traditional Brokers: Clients of Kotakstreet.com have strong bargaining power, as there are offline brokers who facilitate trading at lower brokerage, which ranges between 15 30 paisa. They even do not ask for the margin money, and facilitates 100% buy today and sell tomorrow facility. Moreover, offline brokers provide guidance to investors where to invest? , When to buy shares? , and when to sell? Online Share Brokers: Clients can easily switch over to another competitor, as the switching cost is low. Clients have to pay registration charges which ranges between Rs.500/ to 700/. This fee is waived off if clients put high margin with many competitors. Moreover, client have to pay share transfer fees for transferring the share form one demat account to other demat account which very nominal. If clients are dissatisfied, Report on Summer Training at Kotakstreet.com 63
they can easily switch to the other online brokers. Even there are some brokers whose brokerage is low and have superior technical facilities. This also kind of bargaining power in the hands of buyers.
64
Kotaksteet.com A Market challenger
40% Market Leader
30% Market Challenger
Kotakstreet
20% Market Follower 10% Market Nichers
Market Leader: Market leader is one who has largest market share. It usually leads others in price, new-product introduction, distribution coverage and promotional activity. ICICIdirect.com is the market leader who approximately gets 1000 accounts per month in overall Gujarat. It has high reach and invest aggressively in promotional activities.
65
Market Challenger: Firm that occupies second, third and lower in an industry are called runner-up or trailing firms. Kotakstreet is a Market challenger which holds the runner-up position in the market. Market Followers: Many companies prefer to follow rather than challenge the market leader. HDFC securities is one of them. Market Nichers: Some companies do not be the follower in the large market but be leader in small market or niche. Small firms generally avoid the competition with large firm by targeting markets of little or no interest to the larger firms.
Strategies of Kotalsteet as a Market Challenger

Flnak Attack
The major principle for offensive warfare is concentration of strength against weakness. The enemys weak points are natural target. Kotaksteet has provided terminal of to its NSE client by specialized software KEAT. Client can get accurate quotes. Clients do not need to access the site they directly access KEAT by their user ID and Password. Client does not need to refresh the KEAT to get fresh quotes. System is automatic and provides many more information. Where as ICICIdirect dose not have such facility. Clients have to trade through the site and to get accurate quotes they have to refresh the site. This delays the overall working and does not show the fluctuation of in shared price second through the market hours. KEAT gives Market depth, Companies financial details, Statement of holding, order note contract note .So thus by providing KEAT Kotakstreet has given Flank attack to the market leader.
66
Specific Attack Strategy Improved Services

Time for Payment In delivery base transaction, Kotak permits its clients to make payment as per the t+2 settlement. If client buys securities on Monday then he has make payment until Wednesday Morning. Where as ICICIdirects client has to make payment on the same day before market hours. Failing so the transaction will be squared off at the end of the day. As well in the Intra-day, transactions ICICIdirect clients are supposed to Square-off their position before 2:30 pm. But in this case, clients miss the peak time gains. Where as with Kotaksteet clients can square-off their position before 3.30pm. Therefore, in this way Kotaks client gets more time for making payment. Banking Facility: Clients of ICICIdirct.com have to have Bank account only with the ICICI Bank with minimum balance of Rs.5000/. Where as Kotaks client are free to open their bank account any of the from Kotak Mahindra Bank, (Rs. 2500/-), HDFC bank (Rs. 2500/-), UTI Bank (Rs. 1000/-) and Citi Bank (Rs. 10000/-). This gives client choices as per their convenience. So client who have already bank account with either of bank will not need open another account. They only have get activate the E-banking Facility.
67
Product Life Cycle (PLC)
Believe it or not, the Product Life Cycle (PLC) is based upon the biological life cycle. For example, a seed is planted (introduction); it begins to sprout (growth); it shoots out leaves and puts down roots as it becomes an adult (maturity); after a long period as an adult, the plant begins to shrink and die out (decline). In theory, it is the same for a product. After a period of development it is introduced or launched into the market; it gains more and more customers as it grows; eventually the market stabilizes and the product becomes mature; then after a period of time the product is overtaken by development and the introduction of superior competitors, it goes into decline and is eventually withdrawn. However, most products fail in the introduction phase. Others have very cyclical maturity phases where declines see the product promoted to regain customers.
68
Strategies for the differing stages of the PLC

Introduction: The need for immediate profit is not a pressure. The product is promoted to create awareness. If the product has no or few competitors, a skimming price strategy is employed. Limited numbers of product are available in few channels of distribution. Growth: Competitors are attracted into the market with very similar offerings. Products become more profitable and companies form alliances, joint ventures and take each other over. Advertising spend is high and focuses upon building brand. Market share tends to stabilize. Maturity: Those products that survive the earlier stages tend to spend longest in this phase. Sales grow at a decreasing rate and then stabilize. Producers attempt to differentiate products and brands are key to this. Price wars and intense competition occur. At this point, the market reaches saturation. Producers begin to leave the market due to poor margins. Promotion becomes more widespread and uses a greater variety of media. Decline: At this point, there is a downturn in the market. For example, more innovative products are introduced or consumer tastes have changed. There is intense price-cutting and many more products are withdrawn from the market. Profits can be improved by reducing marketing spend and cost.
Kotakstreet at the stage of Introduction

Kotak Securities had started online share trading four years back. The Kotaksteet came into existence in the year 2000. However, this business line is in focus for last one year. SEBI permits the T+2 settlement. Now there is no rolling settlement. So now, investors need simple, fast and paperless job. Report on Summer Training at Kotakstreet.com 69
Direct marketing: At its introduction, stage Kotakstreet put more efforts in creating awareness of its product. It does direct marketing. It generates leads by own and visits the potential. It has 16 team Sales- executives only at Ahmedabad office. Promotion: It induces the product trial by introducing various exciting schemes. It gives Registration fees discount, as well negotiates the brokerage at large volumes. Increasing Reach: Kotakstreet is increasing its reach by setting up it branches in various cities. Recently it has set up its branch in Gandhidham and Rajkot in Gujarat. Choosing the Right Target Market: Kotakstreet put conscious efforts to find out the right target market. It targets Businessmen, Professional like C.A, Tax Consultants and high-salary income class.
70
Recommendations
Distribution of investors
The Society for capital Market Research & Development the distribution of investors in India is as follows:
Sr. No.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
State/Union Territory
Andhra Pradesh Bihar Chandigarh Delhi Goa Gujarat Himachal Pradesh Jammu & Kashmir Karnataka Kerala Madhya Pradesh Maharashtra Orissa Pondicherry Punjab Rajasthan Tamil Naidu Uttar Pradesh West Bengal Others Total
No. of investors
194,405 27,340 7,891 323,693 11,374 536,720 3,706 7,320 195,159 76,793 71,158 911,997 14,701 2,481 52,434 72,316 230,407 188,835 214,432 54,802 3,197,964
%
6.08 0.85 0.25 10.12 0.36 16.78 0.12 0.23 6.10 2.40 2.23 28.52 0.46 0.08 1.64 2.26 7.20 5.90 6.71 1.71 100.00
From the above distribution Kotakstreet can understand that there is great potentiality in Maharashtra, Gujarat, Delhi and Tamilnadu, West Bengal and and Andhra Pradesh and 75.41% investors of India are from these six states. Kotakstreet has already branches in all these states. State/Union Territory Gujarat City Branches Ahmedabad, Surat, Baroda,
71
Maharastra Tamilnadu Delhi West Bengal Andhra Pradesh
Gandhidham, Rajkot Mumbai, Pune, Nagpur Chennai Delhi Kolkata Hyderabad
Nasik,
But Kotakstreet can concentrate and focus these markets and should increase its reach in all these markets because these are where its potential clients lie. Kotakstreet should have more promotional activities in these six major states.
Advisory Desk
The advisory desk of the Kotakstreet, which is its unique selling point, should be more structure and should be given targets for brokerage earnings. It can be structured as per the following model:
A D M H N I C L S I E P C P N O L
D E
V S M
I S K S
M T N
TT SE N I E N
T I NI A A L C T CS L I E
I V E T S
HNI clients ( High Net worth Individuals)- One who provides good brokerage Potential clients- One who provides good brokerage but can still give better brokerage. Inactive clients- One who trades rarely trough Kotakstreet.com.
By this segregation of the clients, the advisory should see that the HNI clients who are giving good business should be given frequent information of the stock market. The Potential clients who can still give better business to the company should be encouraged for more trading by providing them Report on Summer Training at Kotakstreet.com 72
with regular information of the market. The inactive clients should be converted into active clients by guiding, solving their queries and motivating them. Kotakstreet can tie up with ISP providers who can offer the Internet service to its client at the concessional rates and improved services. This will lead to win-win situation, where by the ISP providers will get new clients and Kotaks clients will also be benefited. Distribution of a Quarterly Magazine about the Kotaks working to all its customers so it would not only act as a tool of advertisement but also make the existing customers feel Kotaks concern for their investments. Internet can be used as a promotion media by giving pop-up advertisements, sending bulk mails, banner advertisements and tie-ups with Google, MSN, Yahoo etc so that as soon as one starts surfing for the stock market Kotaks advertisements may spring up. This can act as a great source of advertisement and lead generation. Kotakstreet can tie up with cyber cafes, which can offer the Internet access to its clients at concessional rates during market hours. This can be beneficial to cyber cafes as they can generate more clients during the afternoon timing, which are not the peak hours for cyber cafes. Cyber cafes can be asked to display the brouchers of the Koatkstreet, which can promote Kotaks product and the cyber caf owner will be given a specified incentive for providing the facility.
Bibliography: www.kotakstreet.com www.kotak.com www.moneycontrol.com

www.nse.com www.bseindia.com www.icicidirect.com www.indiabulls.com www.sharekhan.com www.mbateacher.com www.wikipedia.org
Kotler, P., Marketing Management, 11th edition, Pearson, Delhi.
Stoner, Gilbert., Organisational Structure and Dynamics, 8th edition, Pearson, Delhi.
Shah, Hina.,Focused on retail, Business India, 12-25th April, Business Standard Publication.
74

Kotak Mahindra Group

Загружено:

Сведения о документе

Исходное описание:

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Kotak Mahindra Group

Загружено:

Авторское право:

Доступные форматы

Kotak Mahindra Group

Report on Summer Training at Kotakstreet.com

The Story of Success

Report on Summer Training at Kotakstreet.com

Report on Summer Training at Kotakstreet.com

Report on Summer Training at Kotakstreet.com

The Journey So Far

Report on Summer Training at Kotakstreet.com

Key Group Companies and their Businesses

Kotak Mahindra Primus Ltd.:

Report on Summer Training at Kotakstreet.com

Kotak Mahindra Capital Company Ltd.:

Report on Summer Training at Kotakstreet.com

Kotak Mahindra Asset Management Company:

Kotak Mahindra International Ltd.:

Kotak Mahindra Venture Capital Fund:

Report on Summer Training at Kotakstreet.com

Chart of Management Structure

Report on Summer Training at Kotakstreet.com

Report on Summer Training at Kotakstreet.com

An Overview of Indian Securities Market

Products and Participants

Dependence on Securities Market

Report on Summer Training at Kotakstreet.com

Report on Summer Training at Kotakstreet.com

Rajasthan Tamilnadu Uttar Pradesh West Bengal Others Total

72,316 230,407 188,835 214,432 54,802 3,197,964

2.26 7.20 5.90 6.71 1.71 100.00

Report on Summer Training at Kotakstreet.com

National Stock Exchange

Report on Summer Training at Kotakstreet.com

Bombay Stock Exchange

Turnover on the Exchange

Report on Summer Training at Kotakstreet.com

Stock Market Transaction

Basic types of Derivative

Report on Summer Training at Kotakstreet.com

Report on Summer Training at Kotakstreet.com

Buyer of options (long position on Bubb option)

Writer of options (short position on options)

Report on Summer Training at Kotakstreet.com

400 -10 410 Price of Reliance

Report on Summer Training at Kotakstreet.com

Last Thursday of August 2001 (if working day)

Report on Summer Training at Kotakstreet.com

3000 3750 -150

Report on Summer Training at Kotakstreet.com

Report on Summer Training at Kotakstreet.com

Report on Summer Training at Kotakstreet.com

Kotak Securities - Areas of businesses

Online Share Trading/ Internet Share Trading

Emergence of Online Share trading:

Emergence of Online Share Trading In India:

Importance of Online Trading to India:

Obstacles to the growth of online trading:

Will online share trading ever take off in India?

Playing the online game:

Report on Summer Training at Kotakstreet.com

Choosing the Online Trading Broker:

Checkpoints for choosing E-brokers:

Report on Summer Training at Kotakstreet.com

Report on Summer Training at Kotakstreet.com