“A STUDY ON THE EFFECTIVENESS OF CLIENT ACTIVATION AND ITS FINANCIAL IMPACT AT EDELWEISS BROKING LIMITED” PROJECT REPORT Submitted to UNIVERSITY OF MADRAS In partial fulfillment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION Submitted by R.NANGAI Reg.No. MA90780 Under the guidance of Mr.RAJALINGA PANDIAN M.Tech, MBA. DEPARTMENT OF MANAGEMENT STUDIES
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“A STUDY ON THE EFFECTIVENESS OF CLIENT ACTIVATION AND
ITS FINANCIAL IMPACT AT EDELWEISS BROKING LIMITED”
PROJECT REPORT
Submitted to
UNIVERSITY OF MADRAS
In partial fulfillment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
Submitted by
R.NANGAI
Reg.No. MA90780
Under the guidance of
Mr.RAJALINGA PANDIAN M.Tech, MBA.
DEPARTMENT OF MANAGEMENT STUDIES
VEL SRI RANGA SANKU COLLEGE (ARTS & SCIENCE)
(Approved by AICTE, New Delhi & Affiliated to University of Madras)
Avadi, Chennai – 600 062.
April 2010
CERTIFICATE
This is to certify that the project work titled “A STUDY ON THE
EFFECTIVENESS OF CLIENT ACTIVATION AND ITS FINANCIAL
IMPACT AT EDELWEISS BROKING LIMITED” is a Bonafide Work done
by R.NANGAI (Reg.No. MA90780) under the guidance of Mr. RAJALINGA
PANDIAN M.Tech, M.B.A in partial fulfillment of Requirement of the degree
of Master of Business Administration of the University of Madras during the
academic year 2010-2011under my support and guidance.
Internal guide Head of the department
Principal
Data of viva-voce examination
Internal Examiner External Examiner
DECLARATION
I R.NANGAI, hereby declare that the project report, entitled “ A STUDY ON
THE EFFECTIVENESS OF CLIENT ACTIVATION AND ITS
FINANCIAL IMPACT AT EDELWEISS BROKING LIMITED” submitted
to the VEL SRI RANGA SANKU COLLEGE, AVADI in partial fulfillment of
the requirement for the award of the degree of MASTER OF BUSINESS
ADMINISTRATION is a record of original work done by me under the guidance
of Mr. RAJALINGA PANDIAN,M.Tech, M.B.A and it has not formed the
basis for the award of any degree follow.
DATE: Signature of the student
PLACE:
ACKNOWLEDGEMENT
My sincere thanks to our Honorable founder and Chairman Thiru.
Dr. R. RANGARAJAN B.E (EC.MECH) M.S., (Auto) for providing me a
golden opportunity to study the MBA course and for worthy suggestions, advice
and encouragement, throughout the course.
My sincere thanks to our Principal, Dr. ATHIRAJA SRINIVASALU,
M.COM, M.Phil., Ph.D. and HOD Mr.SUKUMAR, M.B.A, Ph.D., who
rendered invaluable help during the completion of project.
Most importantly, I acknowledge the contribution of my internal guide
Mr. RAJALINGA PANDIAN, M.Tech, M.B.A., faculty Guide, for his
continuous guidance for the successful completion of the project work.
It is the most pleasant to record my gratitude to
Mr. DINESH (Area Manager) and Mr. VIKAS GUPTA AND Mr.PRAVIN
KUMAR (Relationship Manager) who allowed to do the project work and also
for his continuous support and encouragement and his guidance.
I also like to extend my thanks to my beloved family, all my friends who
helped me in computing this project work successfully.
ABSTRACT
Edelweiss Capital Limited is a Mumbai based company which started
its operation in the year 1995. The mission statement of the company is “Ideas
create, values protect”. It provides services like investment banking,
Insurance brokerage, wholesale financing are services rendered by Edelweiss
broking limited
OBJECTIVES
OBJECTIVES OF THE STUDY
PRIMARY OBJECTIVE
To study the effectiveness of client activation and its financial performance.
SECONDARY OBJECTIVES
1. To know the trend of the financial performance of the Edelweiss2. To evaluate effectiveness of client activation3. To measure the increase in the revenue of the Edelweiss due to client
activation.
SCOPE
SCOPE OF THE STUDY
• The Project aims at evaluating the revenue generated through client
activation, thereby it helps the company in increasing the effectiveness of
client activation.
• The study also focuses on the benefits and drawbacks of the company
which helps in strengthening up the stronger areas and to take corrective
action to overcome the drawbacks which helps in increasing the turnover
of the company to the peak.
• This project in share broking company helps me in understanding the
working and the functioning of the share market which helps to
effectively increase the revenue of any share broking company if in
future if I get a chance of doing it.
• This Study also focus on educating the client about Online Trading.
LIMITATION
LIMITATIONS OF THE STUDY
• The project is not conducted all over India it is limited to Chennai.
• Limited to 2 branch in Chennai.
• The Survey was Conducted only through phone hence sometimes there
may would have been some misunderstanding in questions.
• As the data concerned with the share broking limited is highly
confidential it was very difficult for me to get all the data.
• The Time period for the project was only for 2 months which is a major
limitation.
CHAPTER – II
INDUSTRY PROFILE
INDUSTRY PROFILE
Inception- The roots of a stock market in India began in the 1860s
during the American Civil War that led to a sudden surge in the
demand for cotton from India resulting in setting up of a number of
joint stock companies that issued securities to raise finance.
Bubble burst- The early stock market saw a boom till 1865, and
then in Jul
1865, what was then used to be called the share mania ended with
burst of the stock market bubble. In the aftermath of the crash, banks,
on whose building steps share brokers used to gather to seek stock tips
and share news, disallowed them to gather there, thus forcing them to
find a place of their own, which later turned into the Dalal Street. A
group of about 300 brokers formed the stock exchange in Jul 1875,
which led to the formation of a trust in 1887 known as the “Native
Share and Stock Brokers Association”
It was in 1875 that the Indian Share Market first started
functioning. The first share trading association in India was known
as the Native Share and Stock Broker's Association. Though many
other exchanges exist, BSE and the National Stock Exchange of
India account for most of the trading in shares in India .Thus the
Main components of Indian Share Market are
A) Bombay Stock Exchange (BSE):
The Bombay Stock Exchange (BSE) (Hindi: Bombay Śhare
Bāzaār) is the oldest stock exchange in Asia and largest number of listed
companies in the world, with 4990 listed as of August 2010.It is located at Dalal
Street, Mumbai, India. On Aug, 2010, the equity market capitalization of the
companies listed on the BSE was US$1.39 trillion, making it the 4th largest
stock exchange in Asia and the 11th largest in the world.With over 4,990 Indian
companies listed & over 7700 scrips on the stock exchange, it has a significant
trading volume. The BSE SENSEX (SENSitive indEX), also called the "BSE
30", is a widely used market index in India and Asia. Bombay Stock Exchange is
known to be the oldest stock exchange in the entire Asian region. It started
functioning in 1875 with the name 'The Native Share and Stock Broker's
Association'. Under the Securities Contracts (Regulation) Act, 1956, the
association got its recognition as a stock exchange in 1956. Till the decade of
eighties, there was no measure or scale that could precisely measure the various
ups and downs in the Indian stock market. BSE, in 1986, came out with a Stock
Index-SENSEX- that subsequently became the barometer of the Indian stock
market.. It comprised 100 stocks listed at five major stock exchanges in India -
Mumbai, Calcutta, Delhi, Ahmedabad and Madras. When it started, it was just
an association of persons but with the recognition it got transferred to a
corporate and demutualised entity. Now it does
Trading items in Bombay Stock Exchange -
Equity or Shares
Derivatives (Futures and Options)
Debt I Debt Instruments
The index calculation is based on the 'Free-float Market Capitalization'
methodology. Leading bourses like the Dow-Jones also follow this
methodology.
B)NationalStockExchange(NSE):
The National Stock Exchange (NSE) is a stock exchange
located at Mumbai, India. It is the largest stock exchange in India in terms of
daily turnover and number of trades, for both equities and derivative
trading.NSE has a market capitalization of around 6,393,418 crore
(US$1,438.52 billion) in August 2010 .National Stock Exchange (NSE) is
considered to be the leader in the stock exchange scenario in terms of the total
volume traded. The National Stock Exchange received the recognition of a stock
exchange in July 1993 under Securities Contracts (Regulation) Act, 1956. NSE
is the third largest Stock Exchange in the world in terms of the number of trades
in equities. It is the second fastest growing stock exchange in the world with a
recorded growth of 16.6% The products that are traded in the National Stock
Exchange are:-
Equity or Share
Futures (both index and stock)
Options (Call and Put)
Wholesale Debt Market
Retail Debt Market
Currency futures
MUTUAL FUND
STOCKS LENDING & BORROWING
NSE has a fully automated screen based trading system which is known as
the NEAT system. The transactions are carried on with speed, efficiency,
and are all transparent. The risk management system of the National Stock
Exchange is world class and can be considered as the benchmark for other
bourses. The leading index of NSE is known as Nifty 50 or just Nifty. It
comprises of 50 diversified benchmark Indian company scrips and is
constructed on the basis of weighted average market capitalization
method.
Beginning of a new phase- A new phase in the Indian stock markets
began in the 1970s, with the introduction of Foreign Exchange
Regulation Act (FERA) that led to divestment of foreign equity by
the multinational companies, which created a surge in retail investing.
Setting up of SEBI: Regulatory Authority of Indian Share
Market:
The regulatory body for the Indian capital markets was the
SEBI (Securities and Exchange Board of India). The capital markets in
India experienced turbulence after which the SEBI came into
prominence. SEBI or Securities and Exchange Board of India is the
market watchdog and has the responsibility of protecting the investors'
interests, develops regulatory norms and helps in the development of
the securities market in India. The Securities and Exchange Board of
India (frequently abbreviated SEBI) is the regulator for the securities
market in India. It was formed officially by the Government of India in
1992 with SEBI Act 1992 being passed by the Indian Parliament.
Chaired by C B Bhave, SEBI is headquartered in the popular business
district of Bandra-Kurla complex in Mumbai, and has Northern,
Eastern, Southern and Western regional offices in New Delhi, Kolkata,
Chennai and Ahmedabad. The regulatory body for the Indian capital
markets was the SEBI (Securities and Exchange Board of India). The
capital markets in India experienced turbulence after which the SEBI
came into prominence.
Functions and responsibilities of SEBI:
SEBI has to be responsive to the needs of three groups, which
constitute the market:
The issuers of securities
The investors
The market intermediaries.
SEBI has three functions rolled into one body quasi-legislative,
quasi-judicial and quasi-executive. It drafts regulations in its
legislative capacity, it conducts investigation and enforcement
action in its executive function and it passes rulings and orders in
its judicial capacity
Why to invest in Indian share market?
An investor does not require a lot of money to start investing in India
share market unlike buying property and paying off a monthly
mortgage.
Time of trading involved spans from small to big. One can trade for a
short period of time or even a lengthy span.
It helps you to see 'fast' cash if the market is in robust mood and
helps in fast liquidation.
Type of Indian Markets:
Basically there are two types of markets.
1. Primary market
2. Secondary market
Primary Market: A primary market is a place where companies,
government and other corporate bodies sell new shares and other
financial products which are also called as financial products. In
primary market trading is not allowed. Like any newly listed
company sells IPO (initial public offer) then it happens in primary
market or whenever any already exiting company goes public then
at that time it issues an IPO in primary market.
Secondary market: A market place where actual share trading
(buying and selling) takes place is called secondary market.
Majority of share trading in India happens in top two exchanges
called NSE and BSE.
Types of Trading and Investments in Indian Share Market:
Basically trading and investing are two different methods of earning
money in share market.
Types of Trading:
Trading is done on stock price for a day or for couple of days.
Trader is not worried about company performance; he is only
worried to book profits whenever the share price rises.
Basically there are two types of trading methods
1. Online Trading
2. Day trading and
3. Swing trading.
4. Position Trading
1. Online Trading:
Online trading is simply a term that refers to the medium used to enter
and execute trades.
Online traders, which can include long term investors, as well as day,
swing and position traders, use either an Internet connection or a direct
access online trading platform to access and execute trades with Web
based brokers.
2. Day trading:
Buying and selling of shares on daily basis is called day trading.
Day trader don’t carry stocks to next day, he square off the positions
(shares) on same day.
Mainly there are two types of day traders.
i. Scalp trading
ii. Momentum trading
i) Scalp Trading: A scalp trader buys and sells shares at very low profits
(margins) and does multiple trades on daily basis.
ii) ii) Momentum Trading: A momentum trader identifies the trend and
buys shares at bottom and sells at the high of the trend. He may do one
or two trades or at the most three trades in a day. He may not do as
multiple trades as scalp trader on daily basis.
3. Swing Trader:
A swing trader is just like a day trader but swing trade may hold the
shares (positions) for couple of days like 4 to 5 days, while day trader
doesn’t hold shares even for next day.
Swing trader basically trades based on news, breakout and breakdown
in technical charts, based on volume surge, based on up and down trade
etc.
4. Position Trading:
Position trading is similar to swing trading, but with a longer time
horizon. Position traders hold stocks for a time period anywhere
from one day to several weeks or months. These traders seek to
identify stocks where the technical trends suggest a possible large
movement in price is likely to occur, but which may not be fully
played out for several weeks or months.
Types of Investment:
Basically there are three types of investment methods.
i. Short term investment
ii. Midterm investment
iii. Long term investment
i) Short term investment:
Investment done from couple of weeks to couple of months is
called short term investment.
It is done based on breaking news, or based on charts of
technical analysis.
ii) Medium term Investment:
Investments done from couple of months to couple of years is
called mid tem investment.
It is done based on analysis of quarterly financial results or
based on fundamental analysis.
iii) Long term investment:
Investment done from one year to couple of years like 3
years, 5 years, 10 years etc
Long term investment is basically done after thoroughly
analyzing the fundamentals of the company and its future
growth prospects.
And also the wise investor invests in companies whose
current share prices are undervalued but its future growth is
huge. Generally long term investor is worry free from daily
markets up and down and share prices volatility
COMPANY PROFILE
COMPANY PROFILE
EDELWEISS GROUP started its journey in Mumbai in the year
1995, by two IIM graduates, Mr. Rashesh Shah and Mr. Venkat
Ramaswami.
“Ideas create, values protect” is the slogan and depict the mission
statement of Edelweiss group.“Our Reputation and Image is more
important than any financial reward. Reputation is hard to build and even
harder to rebuild. Reputation will be impacted by our ability to think for
our clients, maintain confidentiality and by our adherence to our value
system.”
The Logo: Edelweiss, a rare flower found in Switzerland. A graphic flower that
represents ideas! Around it, the protective arms of the letter ‘E’:
Edelweiss believes ideas create wealth, but values protect it.
It is the practice of this core thought that has led to Edelweiss
becoming one of the leading financial services company in
India.
KEY PEOPLE: Chairman & Founder: Mr. Rashesh Shah (IIM Graduate
1995 batch) and Venkat Ramaswami.
Designated director: Naresh Kothari.
Directors: Rashesh Shah, Venkat Ramaswami and Hiralal Chopra
Achievements’ and Awards of Edelweiss:
Edelweiss was adjudged winner in the Best Merchant Banker category
in the Outlook Money NDTV Profit Awards 2008.
Ranked among the top ten players in Annual Bloomberg and Annual
Thomson-Reuters
History of Edelweiss Broking Ltd.:
Edelweiss was incorporated on November 21, 1995 as a public limited
company.
Our Company received its certificate for commencement of business
on January 16, 1996.
The Company commenced investment banking activities & registered
with SEBI as a 'Category I Merchant Banker' [as defined under the
Securities and Exchange Board of India [Merchant Bankers Rules,
1992s] and thereafter as a 'Portfolio Manager' [as defined under the
Securities & Exchange Board of India [Portfolio Manager’s] Rules,
1993s] & as an 'underwriter' under the Securities & Exchange Board
of India [Underwritings] Regulations, 1993.
They Entered the business of securities broking in the year 2002 by
acquisition of Rooshnil Securities Private limited which later changed
to Edelweiss Securities Private Limited & is presently known as
Edelweiss Securities Limited.
The year 2004 witnessed the foray of Company into the businesses of
insurance advisory as well as commodities broking and trading. The
business of insurance advisory is carried through the subsidiary,
Edelweiss Insurance Brokers Limited.
And in 2005, Edelweiss Broking Limited a subsidiary of Edelweiss
Capital Ltd started the business of commodities broking & trading.
In short
2000 Acquisition of Cross border Investments Private Limited
2001 F and O license obtained in the year 2001
2002 NBFC registration of Cross border Investments Private Limited
Acquisition of Rooshnil Securities Private Limited
2004 Commencement of Commodity Broking
2005 Commencement of Edelweiss Broking ltd
Board of Directors
Name Designation
Mr. Sanjay Santhanam Director
Mr. Narendra Jhaveri Director
Mr. Ramanan Raghavendran Director
Mr. Venkat Ramaswamy Director
Mr. Rashesh Shah Chairman & Managing director
Mr. Sunil Wadhwani Director
Mr. P N Venkatachalam Director
Mr. Kunnasagaran Chinniah Director
Aim - building long term relationships with the clients and equipping the
clients about the market knowledge so that they can address the day by
day fast growing opportunities
Edelweiss is a powerhouse of financial innovation –illuminating both the
solutions and the perils. Edelweiss was previously into niche marketing
only, dealing with the High Net Worth Individuals (HNWI) clients only.
Looking at the current market scenario, company is targeting the Retail
Segment with its new Online Trading Portal.
The company sights the need for entering into the retail segment by seeing
the saturation of the niche market and the exploration of the areas which
was left untouched by the organization. The idea behind this is to
Reposition the company from niche marketer to mass marketer.
The strength of Edelweiss is its market image and well equipped research
team, which it uses as a potential selling tool.
The product or the service that the company has come up with is the
Prepaid Broking Plan for both the retail as well as HNI customers.
Basically every broking firm offers dematerialization and the trading
account with some charges associated to it and the main source of income
is the brokerage that is collected on every transaction made by the
customer, which is a continues source of income.
USP- The single minded focus on thought leadership and relentless
pursuit of the ‘new’ and ‘different’ is it in products, services or people,
model of employee ownership
Their Approach in Market:
Client Focus:
Edelweiss is driven by the emphasis we place on building
long-term relationships with our clients. We work closely
with our clients to equip them with the ability to address
large, fast-growing market opportunities. Our emphasis on
long-term relationships also means that we have a significant
ongoing involvement with almost all of the clients that we
work with.
Execution Orientation:
We focus obsessively on delivering high quality execution
through our experienced team of professionals. Each team is
led by senior personnel and is highly research and ideas
driven. We place strong emphasis on confidentiality and
integrity in a sensitive business environment.
Culture:
Edelweiss fosters a culture that is entrepreneurial and results-
driven and that emphasizes teamwork and intellectual rigour.
Our team is encouraged to display higher levels of initiative,
drive, and hunger for learning and taking on additional
responsibility.
Professional Integrity:
We place a strong emphasis on confidentiality, honesty and
integrity in our business dealings. We expect our people to
maintain high ethical standards, both in their professional and
personal lives. We strive to be fair in all our dealings. We
respect our competitors.
Research Driven:
All our businesses are built on a research and analytics
foundation. Our understanding of underlying market trends
and strong analytical expertise has resulted in a demonstrated
ability to identify emerging trends and themes early. We seek
to provide the highest quality research and investment
opinions to our clients.
WHAT DOES EDELWEISS BROKING LTD. OFFERS
1. Personalized Service
Company believes in providing personalized service and
individual attention to each client to ensure that we
understand their goals and help them achieve it
2. Professional Advice
Company offers expert advice on equity and debt portfolios
with an objective to provide consistent long-term return
while taking calculated market risks. Companies approach
helps clients build a proper mix of products, and not
concentrate on just one individual product. Hence, serving
long-term objectives in the best way.
3. Long-term Relationship
Company believes that long-term vision is the only means to
steady wealth creation. However to achieve this one also
needs to take advantage of short-term market opportunities
while not losing sight of long-term objectives. Hence it
partners all its clients in realizing their long-term vision.
4. Access to Research Reports
Company provides the clients with access to the expert
opinion of economists and analysts.
5. Transparency and Confidentiality
Company’s clients receive regular portfolio statements from
relationship managers via email.
RECENT APPROACH:
Edelweiss is a premium broking firm whose targets were only HNWI
clients. But seeing the opportunity in retail sector it has forayed into
it. The company is providing the same research facility to its retail
clients as it provided to its premium clients. It is offering an online
platform to the clients which will increase transparency and
make business hassle free for the clients. The company is making a
shift from ESL (Edelweiss Securities limited) to EBL (Edelweiss
Broking Limited).
The benefits offered by the company to its clients
are:-
Online Platform
News alert through Mobile messages and e-mail
Dealer support
Portfolio Doctor (Turtle)
Toll Free Number (Helpline Services)
Thus the company is customer focused and protects the wealth of its
customers through its innovative ideas. The company is repositioning
itself from a niche marketer to a mass marketer and is aiming at Brand
Repositioning.
GROWTH STRATEGY:
PRODUCTS AND SERVICES OFFERED BY EDELWEISS:
Investment Banking
Institutional investment
Asset management
Wealth management
Private client brokerage
Insurance brokerage
Wholesale financing
1. Investment Banking:
An Investment Bank is a financial institution that deals with
raising capital, trading in securities and managing corporate
mergers and acquisitions. Investment banks profit from
companies and governments by raising money through issuing
and selling securities in the capital markets (both equity, bond)
and insuring bonds (selling credit default swaps), as well as
providing advice on transactions such as mergers and
acquisitions.
At Edelweiss Broking Ltd, Investment Banking business is
dedicated to providing corporations, entrepreneurs and investors,
the highest quality independent financial advice and transaction
execution.
Its offering are
A. Private Equity Advisory
B. Structured Finance Advisory
C. Mergers and Acquisitions Advisory
D. Real Estate Advisory
E. Equity Capital Markets
F. Infrastructure Advisory
G. Debt Restructuring Advisory
A. Private Equity Advisory:
They have been a leading Private Equity advisor for over a
decade and have developed a strong expertise across industries
which enable us to recognize emerging industry themes and
position transactions within the context. Our strength in Private
Equity advisory stems from:
Long standing relationships with marquee PE funds - Access
to key decision makers at PE funds gives us an unparalleled
edge in optimal structuring and efficient closure of
NOTE:-Revenue due to Client Activation December 57,635 January 30,247
Activation Team contributes 64.11% of total clients activated for the month of January
CHART NO-1
CHART NO-2
INTERPRETATION:-• From the graph we are able to interpret that the revenue generated due to
client activation in the month of December was more than that of the revenue generated by client activation in the month of January. This is due to the market downtrend in the month of January.
• This also shows that even though the market was down it was only the client activation which has increase the revenue of the month by 64.11%
TABLE NO-2
MOVING AVERAGE
Trading revenue Trading revenue Trading revenueDate DEC Date JAN Date FEB
From the moving average graph we could find that the revenue generated by client activation is high during previous months and from January middle it has been highly reduced, which means that the client activation has not been done effectively due to the reason that there is only two client activators for more than 3500 clients and this revenue decrease is also due to the market downtrend for the past three months.
INFERENCE:- From the above table it is found that 18.75% of respondents are in the age
group 21-30, 32.5% of respondents are in the age group of 31-40, 27.5% of
respondents are in the age group 40-50, 21.25% of respondents are in the age
group of above 50 which shows that most of the clients who make investment
are in the age group of 31-40.
CHART NO-3CLASSIFICATION BASED ON THE CLIENTS AGE
TABLE NO-4
CLASSIFICATION BASED ON THE CLIENTS GENDER
S.NO GENDER NO OF RESPONDENTS
PERCENTAGE(%)
1 Male 60 75
2 Female 20 25
Total 80 100
INFERENCE:- From The above table it is found that 75%of the clients are male and 25%of the clients are female which means that mostly men are investing more in share market.
CHART NO-4CLASSIFICATION BASED ON THE CLIENTS GENDER
TABLE NO-5
CLASSIFICATION BASED ON THE OPENING OF DEMAT ACCOUNT
S.NO OPENING DEMAT
ACCOUNT
NO OF RESPONDENTS
PERCENTAGE (%)
1 Before March 12 152 March to June 15 18.753 June to December 36 45
4 After December 17 21.25Total 80 100
INFERENCE:- From the above table it is found that 15% of the clients have opened the demat account before March, 18.75% of the clients have opened the demat
account in the period of March to June,45 of the respondents have opened in the period of June to December and21.25% of the respondents have opened in the period after December .
CHART NO-5CLASSIFICATION BASED ON THE OPENING OF DEMAT ACCOUNT
TABLE NO-6
CLASSIFICATION BASED ON THE CLIENTS INTERESTED IN TRADING
S.NO INTERESTED IN TRADING
NO OF RESPONDENTS
PERCENTAGE(%)
1 Yes 66 82.52 No 14 17.5
Total 80 100
INFERENCE:-
From the above table it is found that 82.5% of the are interested in trading, 17.5% of the respondents are not interested in trading
CHART NO-6CLASSIFICATION BASED ON THE CLIENTS INTERESTED IN TRADING
TABLE NO-7
CLASSIFICATION BASED ON THE CLIENTS REMAINING INACTIVE
S.NO CLIENTS REMAINING INACTIVE
NO OF RESPONDENTS
PERCENTAGE
(%)
1 financial position 1518.75
2 share holdings in other company
13
16.253 lack of knowledge
in share market22
27.54 market downtrend 30
37.5
Total 80 100
INFERENCE:- From the above table it is found that 18.75% of the respondents are dormant due to financial position, 16.25% of the respondents are dormant due to share holdings in another company,27.5 of the respondents are dormant due to lack of knowledge in share market and 37.5% of the respondents are dormant due to market down trend
CHART NO-7
CLASSIFICATION BASED ON THE CLIENTS REMAINING INACTIVE
TABLE NO-8
CLASSIFICATION BASED ON THE CLIENTS GET ACTIVATED
S.NO CLIENTS GET ACTIVATED
NO OF RESPONDENTS
PERCENTAGE(%)
1 After Budget 32 402 After 3 months 29 36.253 After 6 months 9 11.254 not yet decided 10 12.5
Total 80 100
INFERENCE:- From the table it is inferred that 40% of the respondents will start trading after budget and 36.25% of the clients will start after 3months ,11.25% of the respondents will start after 6months and12.5% of the respondents have not yet decided.
CHART NO-8CLASSIFICATION BASED ON THE CLIENTS GET ACTIVATED
TABLE NO-9
CLASSIFICATION BASED ON THE KIND OF TRADING OPTED
S.NO TRADING ADOPTED
NO OF RESPONDENTS
PERCENTAGE(%)
1 Online trading 44 552 Offline trading 36 45
Total 80 100
INFERENCE:- From the table it is inferred that55% of the respondents go for online trading and 45% of the respondents go for offline trading which means that client activators have effectively educate the client about online trading
CHART NO-9CLASSIFICATION BASED ON THE KIND OF TRADING OPTED
INFERENCE:- From the above table it is inferred that68.75% of the respondents go for equities, 10% of the respondents invest in commodities and 21.25%of the
respondents go for mutual funds. It means that most of the clients go for equity market than other type of investment.
CHART NO-10CLASSIFICATION BASED ON THE KIND OF INVESMENT
TABLE NO-11
CLASSIFICATION BASED ON THE REQUIREMENT OF TRAINING
S.NO REQUIREMENT OF TRAINING
NO OF RESPONDENTS
PERCENTAGE(%)
1 Yes 42 52.52 No 38 47.5
Total 80 100
INFERENCE:- From the above table it is inferred that 52.5% of the respondents require training on various parts such as training on share market, training about online trading etc and 47.5% of the respondents do not require training.
CHART NO-11CLASSIFICATION BASED ON THE REQUIREMENT OF TRAINING
TABLE NO-12
CLASSIFICATION BASED ON THE CLIENTS STOCK HOLDINGS IN OTHER COMPANY
S.NO STOCK HOLDINGS IN
OTHER COMPANY
NO OF RESPONDENTS
PERCENTAGE
(%)
1 Yes 34 42.52 No 46 57.5
Total 80 100
INFERENCE:- From the above table it is inferred that 42.5% of the respondents hold stocks in other share broking company and 57.5% of the respondents hold stock only in Edelweiss.
CHART NO-12CLASSIFICATION BASED ON THE CLIENTS STOCK HOLDINGS IN
OTHER COMPANY
TABLE NO-13
CLASSIFICATION BASED ON THE SUBSCRIPTION PLAN ADOPTED
S.NO SUBSCRIPTION PLAN ADOPTED
NO OF RESPONDENTS
PERCENTAGE(%)
1 1250 plan 21 26.252 2000 plan 22 27.53 above 2000 plan 11 13.754 No plan 26 32.5
Total 80 100
INFERENCE:- From the above table it is inferred that 26.25% of the clients go for 1250 plan, 27.5% of the clients go for 2000 plan,13.75% of the respondents go
for above 2000 plan and 32.5% of the respondents do not take any subscription plan.
CHART NO-13CLASSIFICATION BASED ON THE SUBSCRIPTION PLAN ADOPTED
TABLE NO-14
CLASSIFICATION BASED ON THE SATISFACTION LEVEL OF THE CLIENT
From the above table it is inferred that 23.75% of the respondents are highly satisfied, 25% of the respondents are satisfied, 13.75% of the respondents are neither satisfied nor dissatisfied and 26.25% of the respondents are dissatisfied.
CHART NO-14CLASSIFICATION BASED ON THE SATISFACTION LEVEL OF THE
At 9 degree of freedom 5% level of significance, the table value is 16.919. Since calculated value is lesser than table value, Null Hypothesis (Ho) is accepted
Therefore, it is observed that, there is significant relationship between age and Satisfaction level of the client..
CHAPTER –VI
FINDINGS
FINDINGS
Mostly the revenue is generated by client activation.
In the month of January 64.11% of the revenue was contributed
from the client activation team
Most of the clients lack knowledge in share market due to which
they remain dormant
For 3500 clients there are only 2 client activators due to which
the client activators cannot provide their maximum service.
Due to lack of client service many of the efficient clients close
their account which reduces the revenue of the company
Most of the efficient clients whose investment generates revenue
to the company are above the age group of 30 and they also very
determinately take part in the trading activity.
Client activation is a new concept which has been started as
forming a new team in Edelweiss from the month of June
This client activation has in turn increased the revenue of the
Edelweiss.
It is found from the table that42.5% of the clients have stock
holdings in other company and 57.5% of the clients have
account only in Edelweiss which means that more number of
respondents go for Edelweiss than any other company due to its
ADB plan.
It is found that 26.25% of the clients are dissatisfied with the
service rendered by the Edelweiss.
Separate training team can be formed to educate the respondents
about share markets and on online trading because it is inferred
from the table that52.5% of the clients lack knowledge about
share market.
It is studied from that 55% of the clients go for online trading
which me4ans that online trading is been implemented
effectively in Eelweiss.
It is observed from the table that 82.5% of the clients are
interested in trading and 17.5% of the clients are not interested
in trading which means that most of the clients are highly
investing in shares with the expectation of high returns.
CHAPTER -VII
SUGGESTIONS
SUGGESTIONS
1. Company can Recruit some more people for client activation which
increases the revenue of the company
2. There should be a backup office in order to look after the queries of the
clients.
3. It is highly recommended to reduce the Brokerage rate which is also very
high when compared to that of other share Broking company.
4. The training about the share market should be given to all required clients
individually as per their convienience.
CONCLUSION
CONCLUSION
The client activation is an important aspect of any company which plays a
major role in increasing the revenue of the company. This Project “A STUDY
ON THE EFFECTIVENESS OF CLIENT ACTIVATION AND ITS
FINANCIAL IMPACT AT EDELWEISS BROKING LIMITED “ aims at
determining the revenue generated by the client activation team and also to
evaluate ehe effectiveness of online trading education given to the clients.
QUESTIONNAIREMy name is R.NANGAI. I am a student of MBA from VEL SRI RANGA
SANKU COLLEGE. As a part of my summer internship training from EDELWEISS BROKING LIMITED, I am working on the Project “A STUDY ON THE EFFECTIVENESS OF CLIENT ACTIVATION AND ITS FINANCIAL IMPLICATION AT EDELWEISS BROKING LIMITED”. This questionnaire is framed to know whether the client activation done is
increasing the revenue of the company facilitate the teaching and management process in educational institutions.
NAME:-
AGE:-a) 20-30 b) 31-40 c) 41-50 d) above 50
GENDER:-
1. When did you open the demat account?a) Before March b) After March and between June c) June to December d) After December
2. Are you interested in trading?a) Yes b) no
3. Why are you remaining inactive?a) Due to financial positionb) Due to share holdings in another companyc) Due to lack of knowledge in share market d) Due to market downtrend
4. When will you start trading?a) After Budget b) After 3 months c) After 6 months d) not yet decided
5. What kind of trading are you interested in?a) Online trading b) Offline trading
6. In what type of investment are you interested?a) Equity b) commodity c) Mutual funds
7. Do you require any training for trading?a) Yes b) No8. Do you hold the shares of any other stock brokering company?a) Yes b) No
9. Have you choose any ADB subscription plan?a) 1250 plan b) 2000 plan C) above 2000 Plan d) No plan
10. Are you satisfied with the service rendered by the activators in Edelweiss Broking Limited?a) Highly satisfied b) Satisfied c) Neither satisfied nor dissatisfied d) Dissatisfied