1 INDIRA SCHOOL OF CAREER STUDIES PUNE A PROJECT REPORT PROJECT REPORT PROJECT REPORT PROJECT REPORT ON ON ON ON IN PARTIAL FULFILLMENT OF THE CURRICULUM REQUIREMENT OF POST GRADUATE PROGRAMME ACADEMIC YEAR 2007 2007 2007 2007 – 2009 2009 2009 2009 Submitted By: SADAF ZAMIR KHAN PGP-DUEL + MBA
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trading in various derivative products such as index futures, index options,
stock futures, stock options and interest rate futures.
2. Bombay Stock Exchange
The Bombay Stock Exchange Limited (formerly, The Stock
Exchange, Mumbai; popularly called The Bombay Stock Exchange, or BSE)
is the oldest stock exchange in Asia. It is located at Dalal Street, Mumbai,
India.
The Bombay Stock Exchange was established in 1875. There are
around 4,800 Indian companies listed with the stock exchange and has a
significant trading volume. As of August 2007, the equity market
capitalization of the companies listed on the BSE was US $ 1.11 trillion [2].
The BSE SENSEX (SENSitive indEX), also called the "BSE 30", is a
widely used market index in India and Asia.
Singapore Exchange (SGX) acquired a strategic investment in
Bombay Stock Exchange (5%) for US$42.7m.
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The BSE SENSEX (also known as the BSE 30 index) is a value-
weighted index composed of thirty scrip’s, with the base April 1979 = 100.
The set of companies which make up the index has been changed only a few
times in the last twenty years. These companies account for around one-fifth
of the market capitalization of the BSE.
Apart from BSE SENSEX, which is the most popular stock index in
India, BSE uses other stock indices as well:
• BSE 500
• BSE 100
• BSE 200
• BSE PSU
• BSE MIDCAP
• BSE SMLCAP
• BSE BANKEX
• BSE Teck
• BSE Auto
• BSE Pharma
• BSE Fast Moving Consumer Goods (FMCG)
• [[BSE Consumer Durables (SYMBOL: Cons Dura)]]
• BSE Metal
Securities and Exchange Board of India (SEBI) is a board (corporate
body) appointed by the Government of India in 1992 with its head office at
Mumbai. Its one of the function is helping the business in stock exchanges
and any other securities markets
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For investment in equity a person must have:-
1. D-Mat Account
DEMAT (short form of Dematerialization) is the process by which
an investor can get shares (also called as physical certificates) converted into
electronic form maintained in an account with the Depository Participant
(DP).
DP could be organizations involved in the business of providing
financial services like banks, brokers, financial Institutions etc. DP’s are like
agents of Depository.
Depository is an organization responsible to maintain investor's
securities (securities can be shares or any other form of investments) in the
electronic form. In India there are two such organizations called NSDL
(National Securities Depository Ltd.) and CDSL (Central Depository
Services India Ltd.). Investor wishing to open Demat account has to go DP
and open the account. Opening the DEMAT account is as simple as opening
the bank account with any bank.
All shares what you possess will show in your DEMAT account, so
you don't have to possess any physical certificates. They are all held
electronically in your DEMAT account. As you buy and sell the shares,
accordingly your shares will get adjusted in your account.
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2. TRADING ACCOUNT:-
1. ONLINE TRADING ACCOUNT
Software is provided to the customer and trough that software they trade.
It is for those who have knowledge about market.
2. OFFLINE TRADING ACCOUNT:
A dealer has been appointed to the customer who guides the customers
“where to invest” how to invest” etc.
MUTUAL FUNDS
These are funds operated by an investment company which raises
money from the public and invests in a group of assets (shares, debentures
etc.), in accordance with a stated set of objectives.
It is a substitute for those who are unable to invest directly in equities
or debt because of resource, time or knowledge constraints. Benefits include
professional money management, buying in small amounts and
diversification.
Mutual fund units are issued and redeemed by the Fund Management
Company based on the fund's net asset value (NAV), which is determined at
the end of each trading session. NAV is calculated as the value of all the
shares held by the fund, minus expenses, divided by the number of units
Issued.
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COMPANY PROFILE
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HDFC Bank Limited. �
� The Housing Development Finance Corporation Limited (HDFC) was
amongst the first to receive an ‘in principle’ approval from the Reserve Bank
of India (RBI) to set up a bank in the private sector, as part of the RBI’s
liberalization of the Indian Banking Industry in 1994. The bank was
incorporated in August 1994 in the name of ‘HDFC Bank Limited’, with its
registered office in Mumbai, India.
HDFC is India’s premier housing finance company and enjoys an
impeccable track record in India as well as in international markets. Since its
inception in 1977, the Corporation has maintained a consistent and healthy
growth in its operations to remain the market leader in mortgages. Its
outstanding loan portfolio covers well over a million dwelling units. HDFC
has developed significant expertise in retail mortgage loans to different
market segments and also has a large corporate client base for its housing
related credit facilities. With its experience in the financial markets, a strong
market reputation, large shareholder base and unique consumer franchise,
HDFC was ideally positioned to promote a bank in the Indian environment.
HDFC Bank’s mission is to be a World-Class Indian Bank. The
objective is to build sound customer franchises across distinct businesses so
as to be the preferred provider of banking services for target retail and
wholesale customer segments, and to achieve healthy growth in profitability,
consistent with the bank’s risk appetite. The bank is committed to maintain
the highest level of ethical standards, professional integrity, corporate
governance and regulatory compliance. HDFC Bank’s business philosophy
is based on four core values - Operational Excellence, Customer Focus,
Product Leadership, people
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HDFC Bank is a young and dynamic bank, with a youthful and
enthusiastic team determined to accomplish the vision of becoming a world-
class Indian bank.
Business philosophy is based on four core values - Customer Focus,
Operational Excellence, Product Leadership and People. We believe that
the ultimate identity and success of our bank will reside in the exceptional
quality of our people and their extraordinary efforts. For this reason, we are
committed to hiring, developing, motivating and retaining the best people in
the industry.
MISSION AND BUSINESS STRATEGY OF HDFC BANK
Their mission is to be "a World Class Indian Bank", benchmarking
ourselves against international standards and best practices in terms of
product offerings, technology, service levels, risk management and audit &
compliance. The objective is to build sound customer franchises across
distinct businesses so as to be a preferred provider of banking services for
target retail and wholesale customer segments, and to achieve a healthy
growth in profitability, consistent with the Bank's risk appetite. We are
committed to do this while ensuring the highest levels of ethical standards,
professional integrity, corporate governance and regulatory compliance.
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HDFC business strategy emphasizes the following:
• Increase our market share in India’s expanding banking and financial
services industry by following a disciplined growth strategy focusing
on quality and not on quantity and delivering high quality customer
service.
• Leverage our technology platform and open scaleable systems to
deliver more products to more customers and to control operating
costs.
• Maintain our current high standards for asset quality through
disciplined credit risk management.
• Develop innovative products and services that attract our targeted
customers and address inefficiencies in the Indian financial sector.
• Continue to develop products and services that reduce our cost of
funds.
• Focus on high earnings growth with low volatility
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HDFC Securities profile
HDFC Securities, a trusted financial service provider promoted by
HDFC Bank and JP Morgan Partners and their associates, is a leading stock
broking company in the country, serving a diverse customer base of
institutional and retail investors
HDFC securities provide investors a robust platform to trade in
Equities in NSE and BSE, and derivatives in NSE. Our website will support
you with the highest standards of service, convenience and hassle-free
trading tools.
Their research team tracks the economy, industries and companies to
provide you the latest information and analysis. Our content offers financial
information, analysis, investment guidance, news & views, and is designed
to meet the requirements of everyone from a beginner to a savvy and well-
informed trader. With HDFCsec.com, we get:
Speed:
Their state-of-the art technology enables to instantly trade on the BSE and
NSE.
Convenience:
We can trade with online or on the phone from the convenience of our home
or office. Use the 3-in-1 Advantage account to seamlessly move funds and
securities across our bank DEMAT and trading account. This way, we do
not have to issue cheques or delivery instructions.
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Transparency:
With their trusted pedigree, we can be assured that we get the best services
in a transparent manner. By broking with them, we are in total control of our
funds and stocks.
Expertise:
This Group has decades of experience in providing financial services to
customers in a transparent and trusted manner. They have a dedicated,
motivated and experienced team of professionals to provide us top class
service.
Timely and Relevant Information:
They realize the importance of making information available to us as it
happens. Empowered with the latest news, developments and research, we
will be able to take informed decisions.
Customer Interest:
For the customers, their interest comes first. They endeavor to provide high
quality investment services, in a simple, direct and cost-effective way to help
us achieve our financial goals.
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PRODUCT PROFILE
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ABOUT PRODUCT (D-mat A/c)
(3-in-1 Product)
ALL THREE ACCOUNT LINKED WITH EACH OTHER
Online Trading Account
Saving Account DEMAT Account
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• In case of 3-in-1 A/c
New D-mat Account Opening Charge for 3-in-1 A/c (Normal)
• For Saving A/c – 5,200/-
• For Trading A/c – 799/-
• For DEMAT A/c - Free
3-in-1 A/c
Saving Account
Online Trading
A/c
DEMAT A/c
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• In case of 2-in-1 A/c
New D-mat Account Opening Charge for 2-in-1 A/c (Normal)
• For Saving A/c – Already exist
• For Trading A/c – 799/-
• For DEMAT A/c - Free
2-IN-1 A/c
DEMAT A/c ONLINE
TRADING A/c
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• In case of 1-in-1 A/c
New D-mat Account Opening Charge for 1-in-1 A/c (Normal)
• For Saving A/c – Already exist
• For Trading A/c – 799/-
• For DEMAT A/c – Already exist
1-IN-1 A/C
ONLINE TRADING A/C
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Other charges as per the condition:
NRI Indian: Rs. 2250/-
Resident Indian: Rs. 799/- (Open Market)
Rs. 399/- (HSL/HDFC/Bank Employee)
Rs. 399/- (Classic / Preferred)
Rs. 499/- (Senior Citizen / Corp Sal >25k)
Brokerage charges:
• Delivery based transactions: @ 0.50% of the transaction
value or a minimum brokerage of Rs.25/- (Rs.100/- for
NRI’s)
• Square off Trades: @ 0.05% on both legs (Minimum
transaction value is Rs. 1000/-)
• Other levies: Service Tax: 12.36% (on brokerage)
• STT (Service Transaction Tax): 0.125% (on transaction
value for delivery based) and 0.025% (for square off trades:
Only Sell Side)
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OBJECTIVES OF THE PROJECT
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OBJECTIVE & SCOPE OF the Project
OBJECTIVE
�
The objective behind conducting this project is as followed:-
Primary objective
� To find out the people who is willing to be an agent for HDFC
Securities.
� To find potential customer of HDFC Securities who involved in
trading activities and generate the business for HDFC Securities.
Secondary objective
� To know and understand the thinking and perception of different
people about D-mat account and online trading account and share
market
� To see the interest of people to be an agent for HDFC Securities.
� To create the image about HDFC Securities financial product.
� Promotion of the product.
Scope of Study:-
1. To analyze the potential for various HDFC securities products..
2. To reduce the number of walk in customers for minor inquiries.
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RESEARCH METHODOLOGY
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RESEARCH METHODOLOGY
1. Gaining the fundamental knowledge of financial terminology and the
financial product to be sold.
2. Gathering of data base related to the potential client and contacting them
to fix up the meeting.
3. Briefing the future of financial product available for promotion,
considering the personal investment need of the potential clients.
4. Follow up of the clients in order to finalization of sales of the financial
products.
5. Communication with company guide in order to get the feedback about
the methodology of convincing the potential client and asking for the
required investments.
The study is based on the primary & secondary data. The primary data
random sample survey method is followed for data collection. Respondents
were asked to fill the feedback form corporate sector was targeted here cos.
Like includes personal visit, telephonic information & guidance from the
company mentor while the secondary data includes books and magazines
related to market and the database of existing clients of HDFC Securities.
� Data collected from official website of HDFC Securities
(www.hdfcsec.com)
� Data collected by referring to the database already existing in the
company
� Data is being collected from various sources like:-
� Observation Method
� Telephonic Information
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DATA COLLECTION
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Process of Data Collection
Formulation of Objective
Selection of Sample Size
Questionnaire Preparation & filling up
Data Collection
Findings
Meeting the Prospect and Converting them
into HDFC Securities’s client.
Calling the Prospect & Generating appointments
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Research Methodology:-
PART – I
Sampling Design
Sampling Method: Non probabilistic Judgmental Technique
Geographical Area: Pune [F.C Road, Deccan, Shivaji Nagar, Aundh,
Pimpri, Wakad, Chinchwad]
Sample Size:
• 100 investors
Data Collection
Primary Sources
(i) Questionnaires to obtain the perception of investors.
(ii) Interview – from investment managers/consultants.
Secondary Sources
(i) Books.
(ii) Statistical data from magazines, newspapers, journals and internet.
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Data Analysis
Analyzing the responses from questionnaires and interviews to draw
inferences.
Comparing funds against benchmark indices to judge performance.
Statistical Tools
Tables, Charts and Data Analysis tools from MS-excel .
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PART – II
CHANNEL RECRUTIMENT
Second and major part of my summer project was to recruit the
AGENTS.
This was the new branch that is situated at F.C. Road so there was
required of Channel of Agents and Team Leaders. So recruitment of Agents
for “OPENING THE DEMAT ACCOUNT” was given to me as my second
assignment.
This was not a easy work because there are many people who is
searching a job, they could join it easily because it was without any fee but a
small interview. But to hire potential Agent who could bring the business for
company was important.
For hiring the potential agents I had prepared list of my prospect.
� Working as an agent in financial sectors.
� L.I.C. agents
� Working at junior or middle level in organization for desire to earn
some extra money.
� People who is working in different channels of HDFC Ltd.
� Student who is seeking part-time job.
I have prepared a broacher with following content by which I awarded
to my prospects about the Agent’s job profile and their payment structure.
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AGENT’S RECRUITMENT BROUCHER
Why will you join “HDFC SECURITIES”?
� Big name HDFC � You can take it as a part time job. [Can work with other job] � You can join without any fee. � Commission as well as attractive Bonus. � Future growth