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PREFACE
Today India is one of the countries in the world which is included in the developed
country, and after a few years it may be converted into developed country.
Therefore being a management student, it is our responsibility to know where the
economy goes. To know this, it requires a practical as well as theoretical
knowledge of the current as well as past and future market knowledge.
Therefore as a partial fulfillment of my M.B.A. Programmed, I have made summer
project on Organization study of India Infoline. During the summer project I had
gain practical knowledge from the Research, selling and by doing some
administrative work in India Infoline.
My main objective behind the summer project is to gain stock market knowledge
as well as clear some financial concepts, which are used in day by day transactions.
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ACKNOWLEDGEMENT
I would like to express my deep sense of gratitude towards Mr. Kamlesh (Br.
Manager and Company Guide), Mr. Chinmay Jani (Sr. Relationship Manager), Mr.
Vivek Jarecha (Sales manager), Mr. Jigar Dave( Sr. Relationship Manager) and
Mr. Vipul Ramanuj (Sr. Relationship Manager) for the precious guidance and
support throughout the period of summer training.
I am indebted to all the respondents and all the staff members of India Infoline for
not only giving me vital information but also for their enthusiasm and co-operation
without which the study would never have been possible.
I am also thankful to my faculty guide Prof. Nitin Pillai for his valuable guidance
and support.
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Sr.NO Content Page No
1 Executive summary 6
2 Industry Details 9
3 Overview of NSDL 24
4 Overview of CDSL 27
5 Main Players in the Brokerage Industry 29
6 Company Profile 30
7 History And Background 32
8 Products 36
9 Services 40
10 Milestones 42
11 Competitors Details 50
12 Objectives 68
13 Research Methodology 67
14 Competitive Analysis 72
15 Findings
16 Suggestions
17 Bibliography
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EXECUTIVE SUMMARY
In this competitive world each organization has to play different role to
accomplishment of organizational goal. The goal is achieved by the effort of the
different department of the organization. These departments are like Operation
department, Finance department, Marketing department and Personal department.
The functions of the each department are required deep study to specify and
understand the role of each function to coordinate each and every activity of the
organization.
India Infoline group has around 560 branches and several sister concerns
companies across all over India like India Infoline Securities Pvt. Ltd., India
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Infoline Distribution co ltd., India Infoline Insurance Services ltd., India Infoline
commodities Pvt. ltd., money tree consultancy services Pvt. ltd etc.
During my summer project I have tried studied the all functions of the each
department. In this project report I have discussed the all aspects related to the
organization of India Infoline group in appropriate manner.
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INDIAN BROKERAGE INDUSTRY
The Indian broking industry is one of the oldest trading industries that have been
around even before the establishment of the BSE in 1875. Despite passing through
a number of changes in the post liberalization period, the industry has found its
way towards sustainable growth.
Share trading in India is undergoing a transition and consolidation phase witnessed
never before. The competition is likely to become so severe after the entry of many
players, retaining a customer is most dicult practice for any service provider.
Though India has a very big untapped market but the players will not ourish
unless they change the way the customers are being served. Given the awareness
level of today customers every player has to treat with care and make the customer
feel that he is the king. Number of Online Share trader in India has crossed the
line. More and more customers are coming under this umbrella and many of the
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existing one are changing pavilion. So customer retention and satisfaction is now
more important as it was never before. Players keep coming with new schemes in
order to attract new customers and retain the existing one. This is being
supplemented with increased advertising and brand building eorts. Success of any
organization depends upon its being proactive. An often quoted marketing adage is
to manage a business well is to manage its future and to manage its future is to
manage information.
The securities market has essentially three categories of participants, viz., the
issuer of securities, the investors in the securities and the intermediaries. The
issuers are the borrowers or decit savers, who issue securities to raise funds. The
investors, who are surplus savers, deploy their savings by subscribing to these
securities. The intermediaries are the agents who match the needs of users and
suppliers of funds for a commission. These intermediaries function to help both the
issuers and investors to achieve their respective goals. There are large variety and
number of intermediaries providing various services in the Indian securities
market. Need for a broker
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As per SEBI (Securities and Exchange Board of India.) regulations, only registered
members can operate in the stock market. One can trade by executing a deal only
through a registered broker of a recognised Stock Exchange or through a SEBI-
registered sub-broker. The nancials and investment industry is a highly
competitive in nature with almost well established rms diversifying and entering
into this industry. As of today there are Over2000 brokers, 10000 sub brokers and
1 crore investors. It is highly Competitive with entry of new aggressive players.
Retail broking is highly fragmented industry with falling brokerages value added
services and online trading, the new fad.
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INDUSTRY DETAILS
Indian Capital Market
Indian Financial System
Capital Market Intermediaries
Capital Market Process
Overview of NSDL
Overview of CDSL
Indian Capital Market
The function of the financial market is to facilitate the transfer of funds from
surplus sectors (lenders) to deficit sectors (borrowers). Normally, households have
excess of funds or savings, which they lend to borrowers in the corporate and
public sectors whose requirement of funds far exceeds their savings.
A financial market consists of investors or buyers, sellers, dealers and does not
refer to a physical location. It means that it is not requirement of existence of any
physical place in the market. We can say any condition that it is market when any
purchaser and seller come into existence.
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And in case of capital market we can say any condition a market when there is an
existence of investors and borrowers of the fund. Formal trading rules and
communication networks for originating and trading financial securities link the
participants in the market.
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INDIAN FINANCIAL SYSTEM:
FINANCIAL SYSTEM
CAPITALMARKET
MONEYMARKET
DEBTMARKET
EQUITYMARKET
TREASURY BILLS
CALL MONEY MARKET
COMMERCIAL BILLS
SECONDARY
MARKET
DERIVATIVES
MARKET
PRIMARYMARKET
CERTIFICATES OF
DEPOSITS
COMMERCIAL PAPERSFUTURES&OPTIONS
NSEPUBLICISSUE
BSEPRIVATEPLACEMENT
TERM MONEYINDEX
OTCEIDOMESTICMARKET
PRIMARY SEGMENT
STOCKISE
INTER.MARKET
SECONDARYSEGMENT
REGIONALSTOCK
EXCHANGES
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Despite rapid expansion of the organized money market through a large network of
banking institutions that have extended their reach even to the rural areas, there is
still an active unorganized market. It consists of indigenous bankers and
moneylenders. In the unorganized market, there is no clear demarcation between
short-term and long-term finance and even between the purposes of finance. The
unorganized sector continues to provide finance for trade as well as personal
consumption. The inabilities of poor to meet them take recourse to the institutions
that still remain outside the regulatory framework of banking. But this market is
shrinking.
The capital market provides the framework in which savings and investment take
place. On the one hand it enables companies to raise resources from the investors
and on the other; it facilitates households to invest their savings in industrial or
commercial activities. Those saving instrument that can be bought or sold freely
are called securities. These include a range of products debt and equity that can be
traded. The market where such trades place is called the securities market where
such trades take place is called the securities market and comprises the various
exchanges, intermediaries and its regulatory institutions.
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The capital market consists of primary and secondary segments. The primary
market deals with the issue of new instruments by the corporate sector such as
equity shares, preference shares and debentures. The public sector consisting of
Central and State Government, various public sector industrial units, statutory and
other authorities such as state electricity boards and port trusts also issue bonds.
The primary market in which public issue of securities is made through a
prospectus is a retail market and there is no physical location. Direct mailing,
advertisements and brokers reach the investors. Screen based trading eliminates the
need for the trading floor.
The secondary market or stock exchange where existing securities are traded is an
auction arena. It may have a physical location like a stock, exchange or a trading
floor. Since 1995 the trading in securities is screen based training eliminates need
for a trading floor. And since the last year Internet-based trading has also made an
appearance in India.
The secondary market consists of23 stock exchanges including the National Stock
Exchange and the over the counter Exchange of India and Inter Connected Stock
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Exchange of India Ltd. The secondary market provides a trading place for the
securities already issued to be bought and sold. It all provides liquidity to the initial
buyers in the primary market to re-offer the securities to any interested buyer at
any price, if mutually accepted. An active secondary market and capital formation
because investors in the primary market are assured of a continuous market and
they can liquidate their investments in the stock exchange.
There are several major players in the primary market. These include the merchant
bankers, mutual funds, and financial institutions, foreign institutional investors
(FIIs) and individual investors. R & T (Registrar and Transfer) agents, custodians
and Depositories are capital market intermediaries that provide important
infrastructure services for both primary and secondary markets.
It is important to ensure a smooth working of this market, as it is the arena where
the players in the economic growth of a country interact. Various laws have been
passed from time to time to meet this objective. The financial market is India was
highly segmented until the initiation of reforms in 1992-93 on account of a variety
of regulations and administered prices including barriers to entry. The reform
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process was initiated with the establishment of Securities and Exchange Board of
India (SEBI)
Capital Market Intermediaries
CAPITAL MARKET
INTERMEDIARIES
MERCHANT
BANKERS
DEPOSITORIESMUTUAL
FUND
CUSTODIANS
STOCK
BROKERS
R & T
AGENT
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Merchant Bankers means any person who is engaged in the business of issue
management either by making arrangements regarding selling, buying or
subscribing or acting as manager, consultant, adviser or rendering corporate
advisory service in relation to such issue management.
R & T agent - Registrars to Issue
R & T agents are governed by SEBI. R & T agents are intermediaries who provide
services to shareholders on behalf of issuers. Issuers may engage share transfer
agents for maintaining Register of Member (ROM), managing corporate benefits
like distribution of dividends, interest on debentures, bonus shares, right forms etc.
R & T agents extend the depository connectivity services in the depository
environment.
Stock Brokers
Stock Brokers are regulated by SEBI (stock brokers and sub brokers) Regulations
1992. The stockbroker is a member of the stock exchange. The stock brokers are
the intermediaries who are allowed to trade in securities on the exchange of which
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they are member. They buy and sell on their own behalf as well as on behalf of
their clients.
Stockbrokers expand their business by engaging sub-broker. Sub-broker means
any person not being a member of a stock exchange who acts on behalf of a stock
broker as an agent or otherwise for assisting the investors in buying, selling or
dealing in securities through such stock-brokers
Custodians
Custodians of securities mean any person who carries on or proposes to carry on
the business of providing custodial services, Custodian service in relation to
securities means safekeeping of securities of a client.
SHCIL, Citibank N.A., Deutshe Bank, Standard Chartered Bank, HSBC Bank, IIT
Corporate Services, HDFC Bank are among the few registered custodians in the
country.
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Mutual Funds
Mutual Funds are financial intermediaries, which collect the savings of small
investors and invest them in a diversified portfolio of securities to minimize risk
and maximize returns for their participants. Mutual Funds have given a major
filliped to the capital market both primary as well as secondary. The units of
mutual funds, in turn are also tradable securities. Their price is determined by their
net asset value that is declared periodically.
There are various types of mutual funds, depending on whether they are open
ended or close ended and the end use of funds. An open-ended fund provides for
easy liquidity and is a perennial fund. A closed ended fund has a stipulated
maturity period, generally five years
Depositories
The principal function of a depository is to Dematerialization securities and
enables their transactions in book entry form.
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A depository established under the Depositories Act can provide any service
connected with recording of allotment of securities in the record of a depository.
Depository Participants (DPs)
DPs are described as an agent of the depository. They are intermediaries between
the depository and the investors. The relationship between the DPs and the
depository is governed by an agreement made between the two under Depositories
Act.
A DP can offer depository related services only after attaining a certificate of
registration from SEBI.
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CAPITAL MARKET PROCESS
1)IPO
2)Private Placement
3)Right Issue
4)Stock Trading
5)Internet Broking
1) Initial Public Offering (IPO)
market. This kind of tapping the savings for the first time is called IPO (Initial
Public Offer) and raise the fund from the market for the second time by any
existing company is known as FPO (Forward Public Offer) . SEBI guidelines
regulate various procedures involved in making a public issue but price of shares,
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size of the issue, timing of the issue, listing of the issue is decided by the issuer.
Issuers have to disclose all relevant facts and information in the prospectus.
Prospectus also has to disclose risk factors and management perception about those
risks.
Large initial public offers are made through book building route. Under this route,
market determines the price of issue by offering bids. Companies Act was
necessarily amended directing that all public issues above Rs. 10 crores have to be
necessarily in Demat form. Investor can receive shares in a public issue by writing
DP-Id and Client-Id in the share application form.
2) Private Placement
Methods of raising funds directly from investors without issue of prospectus to the
public are known as private placement. SEBI has prescribed the eligibility criteria
for companies and instruments as well as procedures for private placement.
Privately placed securities can also be listed if such placements fulfill all listing
criteria
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3) Preferential Offer/Rights Issue
Companies can expand their capital by offering the new shares to their existing
shareholders. Such offers for sale can be made to the existing shareholders by
giving them a preferential treatment in allocation or the offer can be on a rights
basis i.e. the existing holders can get by way of their right, allotment of new shares
in certain proportion to their earlier holding. If the shares are offered to a few of
the existing shareholders instead to all shareholders or at a price different from the
price at which they are issue to all, such issues are called preferential allotments.
Preferential allotments require shareholders approval in the general body meeting.
Further, all such offers have also to be in compliance with criteria laid down by
SEBI.
4) Stock Trading
An investor in securities needs assurance that they can convert their security
holdings to cash to meet their cash requirements. The ability to convert value of
securities into cash as and when anybody want is called liquidity. The liquidity is
provided by the stock exchange. Stock exchange is a platform where buyers and
sellers of securities will match their bids and offers for securities and exchange
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securities with cash. The offers and bids are routed through members of the stock
exchange, popularly known as a broker. Stock exchange regulates the
transactions of the broker and ensures that the transactions are conducted fairly and
transparently with justice to both buyers and sellers.
5) Internet broking
With the Internet becoming ubiquitous, many institutions have set up securities
trading agencies that provide online trading facilities to their clients from their
homes. This has been possible since all the players in the securities market, viz.
stockbrokers, stock exchanges, clearing corporations, depositories, DPs etc are
linked electronically. Thus information flows amongst them on a real time basis.
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Overview of National Securities Depository Limited (NSDL)
In a span of about four years, investors have switched over to electronic (Demat)
settlement and NSDL stands at the center of this change
NSDL is the first depository to be set up in India. It was incorporated on Dec. 12,
1995. IDBI the largest development bank in India, UTI the largest Indian mutual
fund and the NSE the largest stock exchange of India sponsored the setting of
NSDL and subscribed to the initial capital. NSDL commenced operations on Nov.
8, 1996.
The following organizations are the shareholders of NSDL
Industrial Development Bank of India
Unit Trust of India
National Stock Exchange
State Bank of India
Global Trust Bank Ltd.
Citibank
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Standard Chartered Bank.
HDFC Bank Ltd.
The Hong Kong and Shanghai Banking Corporation Ltd.
Deutsche Bank.
Dena Bank
Canara Bank
Operations performed at a depository are as follows:-
Holds Securities in accounts
Transfer Securities between accounts
Transfers without handling physical securities.
Safekeeping of securities
In the Depository:-
All joint holders to sign instructions.
No minimum balance required.
Interest can be earned only be participating in Stock Lending Scheme.
Does not move balances in account without account holders authorization.
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Signature and photograph of nominees to be provided.
Providing the safety of shares of the share holders which are in their Demat
account and in the Trading account.
SERVICE STANDARDS OF NSDL
A DP has to deal in business with the following characteristics:-
Sensitive and Demanding clients
Intense competition on the price front due to which the profit margins are under
tremendous pressure
Thin profit margins require high volume of clients/transactions for operating the
DP services profitably
High volume of business is error prone, unless supported by appropriate systems
and quality of manpower.
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Overview about Central DepositoryServices (India) Limited (CDSL)
CDSL is the second depository set up by the Bombay Stock Exchange (BSE) in
India. It commenced its operations on March 22, 1999. It was set up BSE and other
co sponsored with the net worth of Rs. 104 crores. In it BSE has a 45 % stake
while others have 55 % stake. In the same year it has Five Stock Exchanges
established connectivity with it for offering trade in Demat securities and 765
companies signed up with it to get their securities admitted for dematerialization. It
has 13 DPs in 91 cities across 168 locations covering 320 cities. Other co
sponsored are as under.
State Bank of India
Bank of India
Bank of Baroda
HDFC Bank
CDSL has also attained membership of the Asia Pacific Central Securities
Depository Group (ACG). ACG has 22 members including depositories from
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Japan, Jog Kong, Singapore, Malaysia, Australia, and New Zealand. Membership
of the organization is expected to help CDSL enhancing its knowledge base and
contributing to the development of other member organizations in the best
international practices, settlement risk management, cross-border linkage and
technological development. This, in turn, would help CDSL to secure foreign
institutional investors business through their custodian.
OPERATION PERFORMED BY CDSL
Carrying out actually share transactions
To do PSU disinvestments
To provide Centralized system at one e-space
To secure Foreign Institutional Investors business
Dematerialization of the Securities
Pledge creation in against the securities
Dematerialization
Trading and settlement on day to day basis
Work as a custodian of its cli
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MAIN PLAYERS IN THE INDIAN BROKERAGE INDUSTRY
y India Infoline
y ICICI Direct
y Angel Broking
y Can Money
y Geojit
y HDFC Securities
y KotakSecurities
y Reliance Money
y Religare
y Share Khan
y Way to Wealth
y SBI Demat
y Bridge Securities Limited
y Mothilal Oswal
y Citi Bank Demat
y Frankfin
y KarvySecurities
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COMPANY PROFILE
The IIFL (India Infoline) group, comprising the holding company, India Infoline
Ltd (NSE: INDIAINFO, BSE: 532636) and its subsidiaries, is one of the leading
players in the Indian financial services space. IIFL offers advice and execution
platform for the entire range of financial services covering products ranging from
Equities and derivatives, Commodities, Wealth management, Asset management,
Insurance, Fixed deposits, Loans, Investment Banking, GoI bonds and other small
savings instruments. IIFL recently received an in-principle approval for Securities
Trading and Clearing memberships from Singapore Exchange (SGX) paving the
way for IIFL to become the first Indian brokerage to get a membership of the
SGX. IIFL also received membership of the Colombo Stock Exchange becoming
the first foreign broker to enter Sri Lanka. IIFL owns and manages the website,
www.indiainfoline.com, which is one of Indias leading online destinations for
personal finance, stock markets, economy and business.
IIFL has been awarded the Best Broker, India by FinanceAsia and the Most
improved brokerage, India in the AsiaMoney polls. India Infoline was also
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adjudged as Fastest Growing Equity Broking House - Large firms by Dun &
Bradstreet. A forerunner in the field of equity research, IIFLs research is
acknowledged by none other than Forbes as Best of the Web and a must read
for investors in Asia. IIFL research is available not just over the Internet but also
on international wire services like Bloomberg, Thomson First Call and Internet
Securities where it is amongst one of the most read Indian brokers.
A network of over2,500 business locations spread over more than 500 cities and
towns across India facilitates the smooth acquisition and servicing of a large
customer base. All IIFL offices are connected with the corporate office in
Mumbai with cutting edge networking technology. The group caters to a customer
base of about a million customers, over a variety of mediums viz. online, over the
phone and at our branches.
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History & Background
India Infoline was originally incorporated on October 18, 1995 as Probity Research
and Services Private Limited at Mumbai under the Companies Act, 1956 with
Registration No. 11 93797. It commenced their operations as an independent
provider of information, analysis and research covering Indian businesses,
financial markets and economy, to institutional customers. It became a public
limited company on April 28, 2000 and the name of the Company was changed to
Probity Research and Services Limited. The name of the Company was changed to
IndiaInfoline.com Limited on May 23, 2000 and later to India Infoline Limited on
March 23, 2001.
In 1999, it identified the potential of the Internet to cater to a mass retail segment
and transformed our business model from providing information services to
institutional customers to retail customers. Hence it launched their Internet portal,
www.indiainfoline.com in May 1999 and started providing news and market
information, independent research, interviews with business leaders and other
specialized features.
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In May 2000, the name of our Company was changed to India Infoline.com
Limited to reflect the transformation of our business. Over a period of time, it has
emerged as one of the leading business and financial information services provider
in India.
In the year 2000, they leveraged their position as a provider of financial
information and analysis by diversifying into transactional services, primarily for
online trading in shares and securities and online as well as offline distribution of
personal financial products, like mutual funds and RBI Bonds. These activities
were carried on by our wholly owned subsidiaries.
Their broking services was launched under the brand name of 5paisa.com through
our subsidiary, India Infoline Securities Private Limited and www.5paisa.com, the
e-broking portal, was launched for online trading in July 2000. It combined
competitive brokerage rates and research, supported by Internet technology.
Besides investment advice from an experienced team of research analysts, they
also offered real time stock quotes, market news and price charts with multiple
tools for technical analysis.
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Organization structure
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Corporate Structure
India Infoline Ltd
India InfolineInvestment
Services Ltd
India InfolineMarketingt
Services Ltd
India InfolineCommodities
Ltd
India Infoline
Asia Pte Ltd
India
InfolineWealthManagementLtd
India InfolineCapital Ltd
IIFL Inc.US
Investment
IIFLsecuritiesCe lon Ltd
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PRODUCTS
EQUITY
India Infoline provided the prospect of researched investing to its clients, which
was hitherto restricted only to the institutions. Research for the retail investor did
not exist prior to India Infoline. India Infoline leveraged technology to bring the
convenience of trading to the investors location of preference (residence or oce)
through computerized access. India Infoline made it possible for clients to view
transaction costs and ledger updates in real time.
MUTUAL FUND
A mutual fund is a body corporate registered with SEBI that pools money from the
individuals/corporate investors and invests the same in a variety of different
financial instruments or securities such as Equity Shares, Government Securities,
Bonds, Debentures, etc. The income earned through these investments and the
capital appreciations realized are shared by its unit holders in proportion to the
number of units owned by them. Thus a Mutual Fund is the most suitable
investment for the common man as it offers an opportunity to invest in a
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diversified, professionally managed basket of securities at a relatively low cost.
Mutual fund units are issued and redeemed by the Asset Management Company
(AMC) based on the funds net asset value (NAV), which is determined at the end
of each trading session.
COMMODITIES
India Infolines extension into commodities trading reconciles its strategic intent to
emerge as a one stop solutions nancial intermediary. Its experience in secu- rities
broking has empowered it with requisite skills and technologies. Increased
oering: The Companies commodities business provides a contra-cyclical alterna-
tive to equities broking. The Company was among the rst to oer the facility of
commodities trading in Indias young commodities market (the MCX commenced
operations only in 2003). Average monthly turnover on the commodity exchanges
increased from Rs 0.34 bn to Rs 20.02 bn. The commodities market has several
products with dierent and non-correlated cycles. On the whole, the business is
fairly insulated against cyclical gyrations in the business.
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INSURANCE
An entry into this segment helped complete the clients product basket; concur-
rently, it graduated the Company into a one stop retail nancial solutions provider.
To ensure maximum reach to customers across India, we have employed a multi
pronged approach and reach out to customers via our Network, Direct and Aliate
channels. Following the opening of the sector in 1999-2000, a number of private
sector insurance service providers commenced operations aggressively and helped
grow the market.
PMS
India Iinfolines Portfolio Management Service is a product wherein an equity in-
vestment portfolio is created to suit the investment objectives of a client. We at
India Infoline invest your resources into stocks from dierent sectors, depending
on your risk-return prole. This service is particularly advisable for investors who
cannot aord to give time or dont have that expertise for day-to-day management
of their equity portfolio. It is all about your money, being managed by the experts,
while you continue with your routine life. Isnt it simple and totally hassle free.
Whats more, you can keep track of your dividends / bonus / rights issues with
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paperless tracking. So you always know how fast your investment is growing. It
basically means assigning the right job to the right person.
DERIVATIVES
The Derivatives Market is meant as the market where exchange of derivatives
takes place. Derivatives are one type of securities whose price is derived from the
underlying assets. And value of these derivatives is determined by the fluctuations
in the underlying assets. These underlying assets are most commonly stocks,
bonds, currencies, interest rates, commodities and market indices. As Derivatives
are merely contracts between two or more parties, anything like weather data or
amount of rain can be used as underlying assets.The Derivatives can be classified
as Future Contracts, Forward Contracts, Options, Swaps and Credit Derivatives.
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y
Services Provided by IIFL
1) E-Broking
y Multiple exchanges on single screen
y Intra-day calls
y Historical charts with technical tools
2) Research
o Daily services
o Technical services
o Fundamental service
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3) DAILY SERVICES
y Market Outlook At 9:30 P M
y Technical Report At 6:00 P M
y Deravative Analysis Report
y Stock Analysis
y Intra-Day Calls
y Derivative Strategies
y COMMODITIES SERVICES
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Milestones:
October 1995 Incorporated as Probity Research and Services Private Limited
March 1996 Launched Probity 200, research reports on 200 leading listed Indian
companies
June 1998 Launched Probity Sector reports
May 1999 Launched our internet portal www.indiainfoline.com and changed our
name to India Infoline Limited
April 2000 Forayed into distribution of mutual funds, fixed deposits, RBI bonds
and other small savings products
July 2000 Launched www.5paisa.com, the e-broking portal and started online
trading with membership of BSE & NSE
December 2000 Corporate agency for ICICI Prudential Life Insurance Company
Limited
September 2001 IIFL became the Depositary Participant of NSDL
March 2004 Launched commodities trading by taking membership of MCX
April 2004 Received license from SEBI to offer Portfolio Management Service
August 2004 launched Portfolio Management Services
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May 2005 listed on BSE & NSE
May 2005 acquired NBFC license
Oct 2005 acquired 75% stake in Money tree Consultancy Services, which is a
distributor of mortgages & other loan products
Dec 2005 acquired 100% equity of Marchmont Capital Advisors Pvt. Ltd. which
have ventured into merchant banking
Dec 2005 DSP Merrill Lynch Capital subscribed to convertible bonds aggregating
Rs.80 crs.
2006 Acquired membership of DGCX
Commenced the credit & finance
March 2007 Theircurrent stake in India Infoline is a little over 14%.
2007 Formed Singapore subsidiary, IIFL (Asia) Pte Ltd
2008 Launched IIFL Wealth
2009 Acquired to insurance for Housing Finance
SEBI in-principle approval for Mutual Fund
Obtained Venture Capital License
2010 Received in-principle approval for membership of the Singapore Stock
Exchange .
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Received membership of the Colombo Stock Exchange.
2011 Received SEBI final approval for IIFL Mutual Fund.
Vision
Our vision is to be the most respected company in the financial
services space.
Mission
To become a full-fledged financial services company known for
its quality of advice, personalized services and cutting edge
technology
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IIFL CSR Initiatives
Barsana Eye Camp
The IIFL Foundation sponsored an eye and dental camp held in February, 2010
with the support of expert doctors and surgeons from the Bhaktivedanta Hospital in
Barsana near Mathura. While over2,600 people underwent eye tests and over 800
were selected for free eye surgery, a total of over 1,800 dental procedures like
extraction, scaling and filling, among others, were performed
Pandharpur Medical Camp
The IIFL Foundation sponsored the Pandharpur medical camp which was held by
the Bhaktivedanta Hospital in July 2010 at Pandharpur. Free medical treatment
was given at 4 camp sites, to approximately 49,815 pilgrims who had come to
Pandharpur during Ashadi Ekadashi. The pilgrims were treated for
fever,injuries,fractures,gastroenteritis,myalagia,headache,epilepsy,malaria,respirat
ory infections etc, during the camp.
Blood Donaton Drive
IIFL regularly organizes blood donation drives via camps at its various locations
across India. Over 800 employees have participated in these camp
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Recent awards and accolades
1) Best Equity broker 2011
Best Equity Broker of the year at Bloomberg UTV Financial Leadership Awards
2011
2) Best Market Analyst 2009
Best Analyst Awards in the Oil & Gas and Commodities sectors at the Zee
business for2009
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3) Best Brokerage 2009
Amongst the top 3 for best Brokerage in India by Asia Money for2009.
4) Indias Most Valuable CEOs 2009
Nirmal Jain ranked second in Indias most valuable CEOs by Business World for
2009.
5) Best Broker India 2008
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6) Most Improved Brokerage-India 2008
7) Fastest Growing Broking House
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Management Team
Chairman : Nirmal Jain Managing Director :R .Venkitaraman
Institutional Equities H.Nemkumar
Investment Banking Ajit Menon,Donald D Souza
Consumer Finance Pratima Ram
Retail Broking Nandip Vaidya
Wealth Management Karan Bhaget
International Operations Bharat Parajia
Offshore Asset Management Deepesh Pandey, Manish Srivastava
Insurance Distribution Mukesh Kumar Singh
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Corporate Governance
Independent Directors of Group Companies
A.K.Purwar Independent Director
Nilesh Vikamsey Independent Director
Kranti Sinha Independent Director
M.N.Singh Independent Director
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COMPETITORS DETAILS
Angel Broking
Share Khan
Indian Bulls
Marwadi Group
KotakSecurities
Religare
ICICI
HDFC
Reliance Money
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Angel Broking
Angel Group has emerged as one of the top 3 retail broking houses in India.
Incorporated in 1987, it has memberships on BSE, NSE and the two leading
commodity exchanges in India i.e. NCDEX & MCX. Angel is also registered as a
depository participant with CDSL.
Rliance Money
Reliance Money is the subsidiary of Reliance Capital ltd. This is promoted by Anil
dhirubhai ambani group (ADAG).Whose Chairman is Mr. Anil Dhirubhai Ambani.
Reliance Money, through its affiliates/Partners, facilitates transaction in equities,
Equity & commodity derivative, Offshore Investments, Mutual Funds, IPO, Life
Insurance & General Insurance Products. The company is in the process of
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launching a comprehensive financial portal enabling to carry out on-line trading
and investment activities in a secured, cost-effective and in convenient manner. It
has presence in 95 cities across the country
SHAREKHAN
Share khan is an equities focused organization tracing its lineage to SSKI, a
veteran equities solutions company with over 8 decades of experience in the Indian
stock markets.
Share khan does not claim expertise in too many things. Sharekhan's expertise lies
in stocks and that's what he talks about with authority. So when he says that
investing in stocks should not be confused with trading in stocks or a portfolio-
based strategy is better than betting on a single horse, it is something that is spoken
with years of focused learning and experience in the stock markets.
Share khan brings a user- friendly online trading facility, coupled with a wealth of
content that will help investors stalk the right shares.
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INDIA BULLS
India Bulls is Indias leading retail financial services company with over 300
locations in more than 110 cities. They have 4400 Client Relationship Managers
are dedicated to serving customers unique needs. It is a public company and listed
on the National Stock Exchange, Bombay Stock Exchange, Luxembourg Stock
Exchange and London Stock Exchange. The company ranks at 82 positions in the
list of most valuable companies in India. Net worth of it is $400 million. Product
Offered by India Bulls are Stock Broking, Insurance Consultancy, Deliver and
receive cheque and securities, Obtain market information
MARWADI SHARES AND FINANCE PRIVATE LIMITED
Marwadi Shares And Finance Pvt. Ltd. Was incorporated in 1992.Marwadi
Group servicing more than 75000 clients, more than 554 pin codes. The company
ranked among top 50 broking houses. It has 250 franchisee / sub-brokers and
authorized persons network.
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KOTAKSECURITIES
Kotak Securities, an affiliate of Kotak Mahindra Bank, is the stock-broking and
distribution arm of the Kotak Mahindra Group. The institutional business division,
which brings you AKSESS, primarily covers secondary market broking. It caters to
the needs of foreign and Indian institutional investors in Indian equities (both local
shares and GDRs, Global Depository Receipts). The division also has a
comprehensive research cell with sartorial analysts covering all the major areas of
the Indian economy.
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 a net worth of over Rs.1, 550 crores and employs over3,000 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
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Kotak Mahindra has 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).
ICICI WEB TRADE LTD. (ICICIdirect.com):
ICICIdirect.com was the first entrant into e-broking. ICICdirect.com provides the
3-in-1 to the users which ties in their saving bank account and their Demat account
to their brokerage account electronically. This integration ensures that money is
transferred to/from their bank account and the shares are transferred from/to their
Demat account automatically without writing any cheques or transfer instructions
while carrying out their trades in shares.
ICICIdirect.com has the option of trading in shares in cash, margin or spot
segments. An investor can also invest in 14 Mutual Funds (Prudential ICICI MF,
Franklin Templeton India MF, Alliance Capital MF, JM MF, Birla Sun Life MF,
Sundaram MF, IL&FS MF, Principal MF, HDFC MF, Standard Chartered MF,
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Reliance Capital MF, Kotak Mahindra MF, TATA MF and DSP MERRILL
LYNCH MF) through their trading account.
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Activation ,brokerage and other charges of different stockbroking companies
CRITERIA India Infoline Ltd.
Demat a/c opening charges 555/-( lifetime)
Brokerage intra day, delivery Classic Plan :- 5p,50p
Freedom Plan:- 1p,10p
AMC(Annual Maintenance Charges) Nil
Trading funding intra day, delivery 10 times
Interest rate
Debit period T+ 4 days
Mode of trading Both online and offline
Margin money 10000
Software installation charges No extra charges
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CRITERIA ANGEL STOCK BROKING
Demat a/c opening charges 660
Brokerage intra day, delivery Classic plan: 3p ,20p
Freedom plan; 1p,10p
AMC(Annual Maintenance Charges) Rs.225
Trading funding intra day, delivery 6times,4 times(minimum stock Rs50000)
Interest rate 18 %pa
Debit period T+2 DAYS
Mode of trading Both online and offline
Margin money 5000,5000,10000
Software installation charges No extra charges
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CRITERIA RELIGARE SECURITIES LTD
Demat a/c opening charges 500
Brokerage intra day, delivery
25P&25P,3P&30P,2P&20P
AMC(Annual Maintenance Charges) Nil
Trading funding intra day, delivery 6times,4 times
Interest rate 18 %pa
Debit period T+2 DAYS
Mode of trading Both online and offline
Margin money 2500,5000 and10000
Software installation charges No extra charges
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CRITERIA
HDFC
Demat a/c opening charges Ist Year Free.
Brokerage intra day, delivery 3P,35P
AMC(Annual Maintenance Charges) 3oo
Trading funding intra day, delivery 5 Time
Interest rate Nil
Debit period 6 Days
Mode of trading Both Online and Offline
Margin money Not required but bank account
compulsory with minimum balance of
10000
Software installation charges Nil
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CRITERIA ICICI DIRECT
Demat a/c opening charges RS 750/-
Brokerage intra day, delivery 50P,75P
AMC(Annual Maintenance Charges) RS 500/-
Trading funding intra day, delivery 3-4 times of the available funds.
Interest rate 18% p.a.
Debit period T+2 DAYS
Mode of trading Both Online & Offline
Margin money
Software installation charges
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CRITERIA Kotak securities
Demat a/c opening charges 750
Brokerage intra day, delivery 2.5P,0.25P
AMC(Annual Maintenance Charges) RS 30pm
Trading funding intra day, delivery 7times,4 times
Interest rate 21%
Debit period T+2
Mode of trading Offline
Margin money Rs5000/-
Software installation charges -
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CRITERIA Shrekhan Securities
Demat a/c opening charges 750
Brokerage intra day, delivery 5P,50 P
AMC(Annual Maintenance Charges) 400
Trading funding intra day, delivery 10 times
Interest rate 21%
Debit period 5 days
Mode of trading Online
Margin money Rs5000/-
Software installation charges Nil
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CRITERIA Marwadi Securities
Demat a/c opening charges 750
Brokerage intra day, delivery 3P,30P
AMC(Annual Maintenance Charges) 250
Trading funding intra day, delivery 10 times
Interest rate Nil
Debit period 5 days
Mode of trading Online and Offline
Margin money Rs5000/-
Software installation charges Nil
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CRITERIA Reliance Money
Demat a/c opening charges 750 For One Year
Brokerage intra day, delivery 2P,75P
AMC(Annual Maintenance Charges) 50
Trading funding intra day, delivery 10 times
Interest rate Nil
Debit period 7Days
Mode of trading Online and Offline
Margin money Rs5000/-
Software installation charges Nil
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Objective
1) To study the criterion of different companies for opening demat account
and trading account
2) To study the all kinds of financial services provided by IIFL to its client
3) To make a comparative analysis of the client services of different companies
4) To study the satisfaction level of existing client of IIFL
5) To analyze the policies of IIFL and its comparison with peers.
6) To know the functioning of a Stock Market
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Research Methodology
Research is scientific and systematic search for relevant information on specific
topic and the topic is Comparative analysis of Brokerage firms with respect
to IIFL
Research Objective:-
1 To study the various features of equity market
2) To study the criterion of different companies for opening demat account
and trading account
3) To study the all kinds of financial services provided by IIFL to its client
4) To make a comparative analysis of the client services of different companies
5) To study the satisfaction level of existing client of IIFL
6) To analyze the policies of IIFL and its comparison with peers.
7) To know the functioning of a Stock Market
Sampling design
Types of sampling
y Random Sampling
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Research Approach
y Descriptive approach
Techniques to be used in research approach
y Survey and interview
Sampling Unit
y Questionnaire
In this project Questionnaire is used as the research instrument. These
questionnaires include Close Ended as well as Open Ended questions. The
questionnaire is attached at the end of Annexure.
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Data collection
Primary Data Collection
y Structured questionnaire for the customer.
Secondary data collection
y Journals
y Web-sites
y News papers
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COMPETITIVE ANALYSIS
1) Are you aware of the different Brokerage firms in Ahmedabad?
Interpretation: 70% of the respondents are aware of the different brokerage firms
in Ahmedabad and 30% are not aware.
2) Your annual Earnings
Interpretation: Of the people who have invested in share market, 45% earn income
over Rs. 7 lakhs.
Yes
No
Less than 1 lac
1 lac to 2.5 lac
2.5 lac to 4 lac
4 lac to 7 lac
More than 7 lac
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3) Have you invested in share market?
Interpretation: Out of 100 respondents, 67%of the respondents have invested in
share market and 23% of the respondents have not invested in share market.
4) In which of these Financial Instruments do you invest into?
Interpretation: 30% of the respondents have invested in Bank FD and 30% of the
respondents invested in share market also, 20% invested in insurance, 10% have
invested in Mutual Fund and 10% have invested in Commodities.
Yes
No
Equity
Mutual Fund
Bonds
Commodities
Insurance
Govt.Securities
Bank F D
Other
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5) What term period do you choose for Investment?
Interpretation: 45% of the respondents prefer long term investment (Below
3years), 20% of the respondents prefer long term investment (5-10Yrs), 30% of the
respondents prefer mid-term investment (3-5Yrs) and 5% of the respondents prefer
Tatkal model investment(15 days).
6) Do you have a De-mat a/c?
Interpretation: 70% of the respondents have DEMAT account and 30% of the
respondents dont not have DEMAT account.
Long term(5-10Yrs)
Mid term(3-5Yrs)
Short term(Below 3 Yrs)
Tatkal(15 Days)
Yes
No
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7) Which Broker do you prefer for Trading?
Interpretation: 28% of the respondent prefer ICICI, 25% of the respondents prefer
India Infoline,15% prefer Kotak securities, 12% prefer Indiabulls, 10% prefer
Share Khan and 10% prefer Angel broking.
8) Which type of trading you prefer?
0
0.5
1
1.5
2
2.5
3
ICICI ShareKhan Indiabull Kotak
Securities
Angel
Broking
India
Infoline
Other
Online
Offline
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Interpretation: 55% of the respondents prefer offline trading and 45% of the
respondents prefer online trading.
9) On Which Basis you trade?
Interpretation: 57% of the respondents prefer intraday trading, 32% of the
respondent prefer delivery trading and 11% of the respondents prefer Future &
Option.
10) Are You Satisfied with service of your Company?
Intraday
Delivery
Future&Option
Yes
No
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Interpretation: 90% of the respondents are satisfied with their companys service
only 10% are not satisfied.
11) How to differentiate your company from others?
Interpretation : 30% of the respondents prefer their company because of less
brokerage,25% of the respondents prefer their company because of good research
report,23% of the respondents prefer their company because of less De mat
opening charge,12% respondent s prefer their company because of good RM and
10% of the respondents prefer their company because of good software.
Brokerage
Research Report
Software
RM
A/C Opening charge
Products
Others
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12) How do you rate these trading companies? ( Rank 1 for highest and 5 for
lowest)
1. ___________
2. ____________
3. ___________
4. _____________
5. ____________
6._____________
7.______________
8.______________
0
0.5
1
1.5
2
2.5
3
ICICI ShareKhan India bull Kotak
Securities
Religare Angel
Broking
India
Infoline
ICICI DirectShareKhanIndiabullsKotak SecuritiesReligareAngel BrokingIndia InfolineOthers____________
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Interpretation: 25 of the respondents given highest rank to ICICI, Second highest
rank in India infoline, Third in Share Khan, and respondents given same rank for
India bulls, Kotak securities, Religare and Angel broking.
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Questionnaire on
Competitive Analysis of Broking Industries
13)Are you aware of the different Brokerage firms in Ahmadabad?
YesNo
14)Your annual Earnings
Less than 1 lacRs. 1 lac to 2.5 lac
Rs. 2.5 lac to 4 lacRs 4 lac to 7 lacMore than 7 lac
15)Have you invested some where else?
YesNo
16)In which of these Financial Instruments do you invest into?
EquityMutual FundsBondsCommoditiesInsuranceGovt. SecuritiesBank F.D.Other______________________
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17)What term period do you choose for Invest?
Long term (5 to 10 Yrs.)Midterm (3 to 5 Yrs.)
Short term (below 3 Yrs.)Tatkal ( 15 Days)
18) Do you have a De-mat a/c?
YesNo
19)Which Broker do you prefer for Trading?
ICICI DirectShareKhanIndiabullsKotak SecuritiesReligareAngel BrokingIndia InfolineOther________________________
20)Which type of trading you prefer?
OnlineOffline
21)On Which Basis you trade?
IntradayDeliveryFutureOption
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22)Are You Satisfied with service of your Company?
YesNo
23)How to differentiate your company from others?
BrokerageResearch Report servicesSoftwareRelationship ManagerAccount Opening Charges
ProductsOthers_______________________________
24)How do you rate these trading companies?( Rank 1 for highest and 5 for lowest)1. ___________
2. .____________3. .___________4. _____________5. .____________
6._____________7.______________8.______________
25)What additional features do you want to add in Broking firm?________________________________________________________
_________________________________________________________
_________________________________________________________
ICICI DirectShareKhanIndiabullsKotak SecuritiesReligareAngel Broking
India InfolineOthers____________
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Personal Information
Name:_____________________
Age: _____________________
Sex: Male Female
Phone No:
Occupation:
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Findings
1) According to this data 70% of the peoples know about the share market in
Ahmedabad.
2) People like to invest their money in to bank fixed deposit rather than share
market
3) According to this data the best preferred broking firm among the people of
Ahmedabad is ICICI followed by India Infoline
4) 90% of the people are satisfied with their broking firm.
5) People like to invest their money in to long term basis.
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Suggestion
1) Brokerage should be reduce to the possible extent , so that new customers can
be attracted
2) Margin amount should be reduced, so that new customers can be attracted
3) Advertisement should be given in news papers so that the persons who do not
know online facility of share trading can be attracted.
4) Some discount/offer can be given to those who are opening account in groups.
5) People not that much aware about commodity marketing ,so company arrange
seminar or special class for public.
6) The company should also organize seminars and similar activities to enhance
the knowledge of prospective and existing customers, so that they feel more
comfortable while investing in the stock market.
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Bibliography
www.india infoline .com
www.nseindia .com
www.bseindia .com
www.moneycontroll.com