Initial Report 1

8/6/2019 Initial Report 1

1/20

1

AN INITIAL REPORT

ON

TO OPEN 8 DEMAT ACCOUNTS WORTH OF

RS.16000/- FOR SHAREKHAN LTD.

SUBMITTEDBY

P.RAJESH

(ENROLLMENT NO: 7NBNL022)

SUBMITTED

TO

MRS. CHETHANA G KRISHNA

(FACULTY GUIDE)

ICFAI NATIONAL COLLEGE

NELLORE


2/20

2

BONAFIDE CERTIFICATE

This is to certify that the initial report of Share Khan titled AN INITIAL

REPORT ON TO OPEN 8 DEMATS ACCOUNTS OF Rs. 16000/- FOR

SHAREKHAN LTD. is being submitted as a partial fulfilment of the requirement

of completion ofSIPprogram at ICFAI for the academic year 2007-09 and has

duly completed as an authentic work.

Apart from a few suggestions given by us, the trainee has done the entire work on

her own. The report is up to the standard both in terms of content and the literary

presentation.

Submitted by:

P. Rajesh


3/20

3

ACKNOWLEDGEMENT

The way to learn to do things is to do things. The way to learn a trade is to

work at it. Success teaches how to succeed. Begin with the determination to

succeed and the work is half done already.

I take this opportunity to acknowledge all the people without whose cooperation

this project would not have happened.

I expect my heartfelt gratitude to our Faculty Guide Mrs. Chetana G Krishna who

has been a great source of inspiration to all of us. At the same time, I express my

sincere gratitude to Mr. K.P. Singh, Company Guide, who has been very

supportive throughout this venture.

P. Rajesh


4/20

4

CONTENTS

S.NO: INFORMATION PAGE NO:

1 INTRODUCTION TO THE STOCK

MARKET

5

2 AN OVERVIEW OF SIP COMPANY 8

3 3C REPORT

3.1 The Company

3.1.1. Marketing

3.1.2. Human resources

3.1.3. Operations

3.2 The Customers

3.3 The competitors

9

11

13

14

14

4 SWOT ANALYSIS 16

5 WHOS WHO 16

6 BUSINESS OBJECTIVES 17

7 CONCLUSION 18


5/20

5

INTRODUCTION TO THE STOCK MARKET:

Stock Market: A market where people buy and sell shares of various companies.

There are 2 major exchanges in India.

1. The BSE2. The NSE

: BSE it is the oldest stock exchange in Asia with heritage, now

spanning 3 centuries in its 133 years of existence. What is now popularly known as

BSE was established as the native share and stock brokers association in 1875. It

is the first stock exchange in the country which obtained permanent recognition

(regulation) act 1956. Today BSE is the worlds no: 1 exchange in terms of the no.of listed companies and the worlds 5th in transaction numbers.

The BSE index, sensex is Indias first stock market index that enjoys a iconic

stature, and is tracked worldwide. It is an index of 30 stocks representing 12 major

sectors. It is 1st exchange in India and the 2nd in the world to obtain an ISO-9001-

2000 certification. First exchange in India. It has nationwide reach with a presence

in more than 450 cities and towns of India. It is located in MUMBAI.

NSE: The National Stock Exchange of India Limited has genesis in

the report of the High Powered Study Group on Establishment of New Stock

Exchanges, which recommended promotion of a National Stock Exchange by

financial institutions (FIs) to provide access to investors from all across the country

on an equal footing. Based on the recommendations, NSE was promoted by

leading Financial Institutions at the behest of the Government of India and was

incorporated in November 1992 as a tax-paying company unlike other stock

exchanges in the country. It is an index of top 50 companies.

On its recognition as a stock exchange under the Securities Contracts (Regulation)

Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debt

Market (WDM) segment in June 1994. The Capital Market (Equities) segment

commenced operations in November 1994 and operations in Derivatives segment

commenced in June 2000.


6/20

6

How does the Sensex Move :

The BSE Sensex is the weighted average of prices of 30 select stocks listed on

the Bombay Stock Exchange. The weights are the market caps of the individual

Stocks.

Change in the Index signifies an overall change in prices and trading levels of

these 30 stocks.

Movement of the NIFTY 10 Years:

Nifty it is an index of top 50 companies.

The Bulls:

Investors who expect prices to rise and so buy now for resale later.

The Bears:

Investors who expect prices to fall and so sell now in order to buy later at a

lower price.

Players in the Stock Market:

Individuals Institutions

* Long-Term investors * FII

* Position traders * Indian companies

* Day traders * Mutual Funds

Broker:

To purchase any kind of share in the market an individual has to approach the

broker, for that broker charges some amount which is called as brokerage. Anindividual has to open a Demat account with the broker.


7/20

7

Who is a Broker?

A company or an individual who:

Is a member of the stock exchange.

Is registered with the Securities and Exchange Board of Index (SEBI).

Acts as a middle man between the buyer and seller of securities in thatMarket.

A Broker charges fees for his services. This is known as brokerage.

Demat:

Short for dematerialization.

Dematerialization is the process by which your holding of physical share

certificate is converted into an electronic share.

Demat Account:

A demat account holds the records of ones shares holding just as a bank holds

ones money in a savings account.

One has to approach a depository participant (DP), who is usually a broking

account or a bank, t o open a demat account.

Just like a bank, the DP will provide a statement of holdings.

There is no restriction on the numbers of DPs one can open accounts with.

Price Fluctuations why do they occur :

Price Fluctuation occur due to demand and supply imbalances.

Such imbalances are caused by news related to the

Economy

Sector

Company

These imbalances make the investor reoccurs their expectations of the

company profitability and hence make then either buy/sell.

This in turn, creates the demand and supply imbalances.

Other factors: dollar, oil prices, FII inflows, annual budget.

Intraday: Buying and selling the shares today between 9.55 am to 3.30 pm

Delivery: Buy today shares and sell in the future.


8/20

8

BUY TODAY AND SELL TOMORROW: Buying the shares today and selling

the shares tomorrow. It is available to some companies, i.e. company(broker) will

guarantee for the shares.

MARGIN MONEY: If the customer invests 10000/- he can buy shares up to theratio given by the company. (Ex: 1:4 means if customer invests 10000/- he can buy

up to 40000/- worth of shares.

1. AN OVERVIEW OF SIP COMPANY:

The SSKI (Sripal Sravanthi Kanthilal Iswarlal) Group comprises ofInstitutional Broking and Corporate Finance. The Institutional

broking division caters to domestic and foreign institutionalinvestors, while the Corporate Finance Division focuses on nicheareas such as infrastructure, telecom and media, SSKI has beenvoted as the Top Domestic Brokerage House in the researchcategory, by the Euro Money survey and Asia Money survey.

Through the portal Sharekhan.com, theyve been providinginvestors a powerful online trading platform, the latest news,research and other knowledge-based tools for over 5years now.

Share khan is providing terms for fundamental and technicalresearch so that customer can get all the information they needto take the right investment decisions.With branches and outlets across the country, share khan groundnetwork is one of the biggest in India.

Share khan has a talent pool of experienced professionalsspecially designated to guide customers when they needassistance


9/20

9

3C REPORT:

COMPANY MISSION:

To educate and empower the individual investor to make better investment

decisions through QUALITY ADVICE, INNOVATIVE PRODUCTS &

SUPERIOR ADVICE.

2.1.1. MARKETING:

PRODUCT PORTFOLIO:

1) EQUITIES

2) IPOS( Initial Public Offer)

3) MUTUAL FUNDS

4) PORTFOLIO MANAGEMENT SERVICES.5) COMMODITIES

DISTRIBUTION NETWORK:

Share Khan ltd. Covers 640 share shops in 280 cities across INDIA and having its

Head Office in MUMBAI. Recently it opened its branch in DUBAI.

SALESFORCE:

1) Fixing the targets based on potential customers.

2) Recruiting and selecting sales people based on experience.

3) Giving training to the executives for understanding the market.

4) After training evaluating the individuals.

5) Motivating the sales persons.

TARGETS:

Territory manager: 500 accounts

Assistant Manager: 100 accounts

Executives : 27 accounts


10/20

10

PRICING:

It is based up on the customer business. Large investors get huge benefits from the

company.

Products AOC Margin

cheque

Advance

brokerage

Intraday Delivery

Classic account 750 5000 0 0.10 0.50

Classic prepaid 0 0 2000 0.07 0.40

Trade tiger

prepaid

0 0 6000 0.05 0.25

Trade tiger

prepaid

0 0 18000 0.04 0.20

Trade tiger prepaid

0 0 30000 0.03 0.18

Trade tiger

prepaid

0 0 60000 0.02 0.15

Trade tiger

prepaid

0 0 100000 0.01 0.10

PROMOTION STRATEGIES:

1) Company follows competitive parity method.

2) It also uses inoculative advertising.

3) It also participates in trade shows to create awareness about its products.

4) It mainly concentrates on franchising.

5) Direct marketing, telemarketing, publicity etc.

6) It has started newly giving advertisements in the news papers.

CUSTOMERCARE:

It offers 24*7 customer care service through the toll free no-1800227500. To help

customers at any time it has a separate back office.


11/20

11

MARKET SHARE:

Share Khan occupies 25% of Market Share according to the news paper Business

line. Its turnover is about 150 crores per month.

MARKET STRUCTURE:

It is overall covered by its Sales executives and trainees throughout the market.

COMPETITION:

It faces a lot of competition from different companies like INDIA BULLS, ICICI

DIRECT, RELIGARE , INDIA INFOLINE etc.

2.1.2. HUMAN RESOURCES:

ORGANIZATION STRUCTURE

CEO

^

DIRECTOR

^

VICEPRESIDENT

^

NATIONAL HEAD

^

ZONAL HEAD

^

REGIONAL SALES MANAGER

^

TERRITORY MANAGER

^

ASSISTANT MANAGER

^

TRAINEES


12/20

12

ORGANIZATION CHART:

REGIONAL SALES MANAGER

SALES MANAGER

TERRITORY MANAGER

ASST.SALES MANAGER

SALES EXECUTIVES

TRAINEES

DEPARTMENTS AND FUNCTIONS:

Sales departments: customers are generated in this department.

Branch Office: companys revenue is generated in this department.

STAFF AND STRENGTH:

Nearly 3000 employees are working for the company.

RECRUITMENT:

1. through internal resources

2. through external resources

SENIOR MANAGEMENT:

The entire network is done by the senior management located at Mumbai.

TRAINING AND DEVELOPMENT:

Every week the sales team has to attend the training program to update their

knowledge, selling skills.


13/20

13

3.1.3. OPERATIONS:

Functions: Share khan provides the following to its customers.

1. Online trading

2. Off line trading

3. Dial n trade

Facilities: it provides service through:

1. Regional sales manager

2. Back office people

3. Executive services

3.1.4. FINANCE:

1. Daily 500 demat accounts are opened on an average across India.

2. Every day 3500 funds pay in/payouts on an average.3. 230000 transactions per day.

3.2 THE CUSTOMERS:

1) Corporate people

2) Business people

3) Housewives

4) NRIS

5) Government Employees

OF all the companies in the broking Share khan has a good image in case of

customer service, Recruitment of employees, Rules & Regulations and Ethical

values.


14/20

14

3.3. THE COMPETITORS:

OVERVIEW OF SHAREKHAN AND its MAIN COMPETITORS:

Name of the

company

A/C

openin

g

charge

s

Intrada

y

Charge

s

Deliver

y

Charge

s

Types

of

accoun

ts

BT & ST

Available or

not

Margi

n

money

for

Intrada

y

Margin

money

for

Deliver

y

SHARE

KHAN

0/- 0.07 0.50 7 Available 1:4 1:4

RELIGARE

LTD.

P.M.

30/-

0.0.3 0.30 1 NOT

AVAILBA

LE

1:4 1:1

KOTAK

SECURITI

ES

750/- 0.03 0.25 3 AVAILAB

LE

1:10 1:4

INDIA

INFOLINE

5555/- 0.05 0.50 1 NOT

AVAILAB

LE

1:5 1:0.50

INDIA

BULLS

900/- 0.03 0.30 1 NOT

AVAILAB

LE

1:8 1:1

NAME OF THE COMPANY PERCENTAGE OF CUSTOMERS

SHARE KHAN 40%

INDIA BULLS 15%

KOTAK SECURITIES 15%

RELIGARE SECURITIES 20%

INDIA INFOLINE 5%


15/20

15

OTHERS 5%


16/20

16

SWOT ANALYSIS:

STRENGTHS:

1) Excellent research team forgiving the recommendations.

2) Good customer service.

3) Having number of branches in

INDIA.

4) Customer retention is more

compared to other

competitors.

5) Highly sophisticated

Infrastructure.6) Experienced sales people.

WEAKNESS:

1) Lots of rules and regulations to

be followed.

2) Compared to other competitors

Share khan is giving less

margin for Intraday.

3) Collecting advance brokerage

charges from the clients.

OPPORTUNITIES:

1) Attracting the clients who are

ready to invest in stock market.

2) Giving seminars for attracting

more number of clients.

3) It is going to raise funds fromthe public through I.P.O.

(Initial Public Offer)

THREATS:

1) Numbers of competitors are

entering into the market.

2) Low charges by other

competitors leads to trouble

Share khan.3) Availability of Mutual Funds

and Insurance policies.

4. WHOS WHO?

C.E.O: Mr. TARUN SHAH.

MANAGING DIRECTOR: Mr. MANI SHANKER.

FACULTY GUIDE: Mr. K.P. SINGH.


17/20

17

5. BUSINESS OBJECTIVES:

The specific goals for Executive Training:

Selling 8 demat accounts for 1 month worth of 16000/-.

Targets for the SIP period:

Selling 32 demat accounts for 4 months worth of 64000/-.

My Approach:

Generated data from my brother and I achieved the month , March target.


18/20

18

CONCLUSION

Share khan is a 83 years old company established in 1935 and having a good

brand image in the stock market. It is providing an excellent service for it

customers. It has a good sales team to market their product. When compared to

other competitors it is generating revenue of 150 crores per month.


19/20

19

THANK Q


20/20

20

Initial Report 1

Documents