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CHAPTER- 1
INTRODUCTION
1.1 OVERVIEW OF INDUSTRY AS A WHOLE
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NSE launched internet trading in early February 2000. It is the frst
stock exchange in the country to provide a webbased access to
investors to trade directly on the exchange. !he process " #og on to the
brokers site o$ your choice where you get real ti%e &uotes' place a buy
or sell order on the spot' and direct the site to debit the re&uisite
a%ount. In so%e ti%e you get confr%ation and a$ter the trade
settle%ent your bank and depository account will re(ect the changes
which you can view anywhere' anyti%e. )nline trading has beco%e
sea%less. *ll that you need is a +,' a %ode%' subscription to an
Internet Service Provider (ISP),a saving and a depository account
with any bank providing online trading $acility. *long with stocks one
can trade in %utual $unds and invest%ent instru%ents. !he advantage
with online trading that you can operate in both -SE and NSE
depending on the broking fr%.
NSE introduced $or the frst ti%e in India a $ully auto%ated screen
based trading. It uses a %odern $ully co%puteried trading syste%
designed to o/er investor across the length and breadth o$ country a
sa$e and easy way to invest. !he NSE trading syste% called National
Exchange for Automated Trading (NEAT) is a $ully auto%ated
screenbased trading syste% which adopts the principle o$ an order
driven %arket.
1ith over 20 %illion shareholders' India has the third largest investor
base in the world a$ter the S* and 3apan. )ver 4000 co%panies are
listed on stock exchanges' which are serviced by approxi%ately 5600
stockbrokers. !he Indian capital %arket is signifcant in ter%s o$ the
degree o$ develop%ent' volu%e o$ trading and its tre%endous growth
potential.
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STOCK EXCHANGE
* stock exchange' share %arket or bourse is a corporation or %utual
organiation which provides $acilities $or stock brokers and traders' to
trade co%pany stocks and other securities. Stock exchanges also
provide $acilities $or the issue and rede%ption o$ securities' as well a'
other fnancial instru%ent and capital events including the pay%ent o$
inco%e and dividends. !he securities traded on a stock exchange
include" shares issued by co%panies' unit trusts and other pooled
invest%ent products an bonds. !o be able to trade a security on a
certain stock exchange' it has to be listed there.
National Sto! E"#an$%
!he national stock exchange o$ India li%ited 7NSE8 is a 9u%baibased
stock exchange. It is the largest stock exchange in India and the third
largest in the world in ter%s o$ volu%e o$ transaction. NSE is %utually
owned by a set o$ leading fnancial institutions' banks' insurance
co%panies and other fnancial inter%ediaries in India but its ownership
and %anage%ent operate as separate entities. In 9arch 200:' the NSE
had a total %arket capitaliation o$ ;'
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secondlargest stock %arket in south *sia in ter%s o$ %arket
capitaliation.
&o'(a) Sto! E"#an$%
!he -o%bay stock exchange 7or -SE8 is there oldest stock exchange in
*sia. It is located at ?alal street' 9u%bai' India.
!he -o%bay stock exchange was established in @=56. there are around
;=00 Indian co%panies listed with the stock exchange' and has a
signifcant trading volu%e. *s o$ %ay 2005' the e&uity %arket
capitaliation o$ the co%panies listed on the -SE was about >s.;0.5
trillion 7SA444billion8.
!his topic includes the practical experience co%pany products that are
$ollowed by studying the consu%er pre$erence or interest towards
share %arket. !his is a %arketB which is uncertain so%eti%es it gives
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huge proft and also viceversaB it depends upon the invest%ent
custo%er %ade. !his is a better option to have better returns on the
invest%ents then investing in banks' %utual $und or bond et. -ut risk is
high in this case.
!his products o/ers custo%er two type o$ invest%ent option
INTRADAY and DELIVERY both has !he topic is to study the
consu%er pre$erences towards invest%ent in stock %arket.
?e%at account is a pool o$ various scripts and securities' whereas
online trading is a tool o$ purchasingCselling o$ scripts online. !hese
scripts are then trans$erred to depository account a$ter three days.
!here own benefts and li%itations but a better way to have %ore
returns on invest%ent. Intraday %eans investing in a share %arket $or
a day i.e. purchasing and selling o$ sharekhan in one day. ?elivery is
purchasing share and selling those share next day. !he charges that
co%pany charge in ter%s o$ brokerage is di/erent in both the cases.
Done are the days when you le$t orders with your broker' received
con$or%ations on the price and &uality o$ the shares at the end o$ the
day and the pay%ent %ade up$ront or received a$ter delays. our
securities settle%ent took days to re(ect in your account. Internet has
changed the way you do trading. !he entire process is speedy with
li%ited to eropaper work. NSE launched internet trading in early
February 2000. it is the frst stock exchange in the country to provide a
webbased access to investors to trade directly on the exchange. !he
process " #og on to the brokers site o$ your choice where you get real
ti%e &uotes' place a buy or sell order on the spot' and direct the site to
debit the re&uisite a%ount. In so%e ti%e you get confr%ation and
a$ter the trade settle%ent your bank and depository account will
re(ect the changes which you can view anywhere' anyti%e. )nline
trading has beco%e sea%less. *ll that you need is a +,' a %ode%'
subscription to an Internet Service Provider (ISP),a saving and a
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depository account with any bank providing online trading $acility.
*long with stocks one can trade in %utual $unds and invest%ent
instru%ents. !he advantage with online trading that you can operate in
both -SE and NSE depending on the broking fr%.
1.* Co'+an) +,ol%
S#a,% !#an is the ,%tail (,o!in$ a,' o /0'(ai-(a%2 SSKI
G,o0+' which has over eight decades o$ experience in the stockbroking business. SSI owns :6G in Share han -alance ownership is
HS-,' frst ,arlyle and Intel +acifc.
It has been into (,o!in$ in% 34 )%a,. *nd has $ocused on
providing e&uity solutions to every seg%ent. It boasts o$ largest ground
network o$ 6== share shops across 2@< cities in India.
Sharekhan o/ers its custo%ers a wide range o$ e&uity related services
including trade execution on -SE' NSE' ?erivatives' depository
services' online trading' invest%ent advice etc.
!hrough its onlin% t,a2in$ +o,tal 555.#a,%!#an.o'' it provides
%ultichannel access to the stock %arkets to its custo%ers. !he
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website was launched on Feb =' 2000. !he site gives access to superior
content and transaction $acility to retail custo%ers across the country.
nown $or its argon$ree' investor $riendly language and high &uality
research' the site has a registered base o$ over one lakh custo%ers.
!he nu%ber o$ trading %e%bers currently stands at over < #acs. 1hile
online trading currently accounts $or ust over 2 per cent o$ the daily
trading in stocks in India' Sharekhan alone accounts $or 6* +%, %nt
o t#% 7ol0'% t,a2%2 onlin%.
Share khanJs groundn%t5o,! inl02% o7%, 833 %nt%, in 193
iti% in In2ia: o$ which
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1ith a legacy o$ %ore than =0 years in the stock %arket' the SSKI
group ventured into institutional broking and corporate fnance @=
years ago. +resently SSKI is one o$ the leading players in institutional
broking and corporate fnance activities. SSKIholds a sieable portion
o$ the %arket in each o$ these seg%ents. SSKIJs institutional broking
ar% accounts $or 5G o$ the %arket $or $oreign institutional port$olio
invest%ent and 6G o$ all do%estic institutional port$olio invest%ent in
the country. It has :0 institutional clients spread over India' $a east'
and us. Sharekhan is the retail broking ar% o$SSKI' an organiation
with %ore than eight decades o$ trust and credibility in the stock
%arket.
SSKI GROUP CO/PANIES
SSKI investor services #td 7sharekhan)
S.S.kantilal ishwarlal securities
SSKIcorporate fnance
I2,%a'productions
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TECHNOLOGY USED &Y CO/PANY
Sharekhan has always believed in investing in technology to build its
business. !he co%pany has used so%e o$ the bestknown na%esin the I! industry' like sun 9icrosyste%s' oracle' 9icroso$t'
nexgenix' spider so$tware pvt. #td. to build its trading engine and
content.
SHAREKHAN &USINESS
@. -rokering house
2. white $eathering house production
VISION
!o be the best retail brokering brand in the retail business o$ stock
%arket.
/ISSION
!o educate and e%power the individual investor to %ake better
invest%ent decisions through &uality advice and superior service
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K%) Statiti a(o0t S#a,%!#an
To+ Loation
-o%bay *rea' India;1*6< ?elhi *rea' India;*1
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-ranch 9anager 9?
To+ S#ool niv. o$ 9u%bai
niv. o$ +une
?elhi niv.
Inst. o$ !ech. and9anage%ent
South Duarat niv.
18?
?
?
8?9?
/%2ian A$% 2= yearsG%n2%, 9ale
Fe%ale
34?
*4?
Ta(l%= 1.*
Co'+ani% ,%lat%2 to S#a,% !#an
+arent ,o%pany
SSI
Ca,%%, +at# o, S#a,%!#an %'+lo)%%
-e$ore"
*. *nand >athi...
*$ter" >eligare 9otilal )swal...
Sharehan.co% is an online trading $acility $ounded in @4442000 with
a $ocus on e&uities' derivatives and co%%odities brokerage execution
on the National Stock Exchange o$ India #td. 7NSE8' -o%bay Stock
Exchange #td. 7-SE8' National ,o%%odity and ?erivatives Exchange
India 7N,?E8 and 9ulti ,o%%odity Exchange o$ India #td. 79,8.
Sharekhan #i%ited o/ers online security broking and port$olio services
to institutions and large corporate houses as well as individual
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investors. Sharekhan #i%ited was $or%erly known as SSI Investor
Services +rivate #i%ited. !he co%pany is based in 9u%bai' India.
1.6 P,o(l%' o S#a,% K#an
Share khan has been strongly co%%itted not only to environ%ental
conservation progra%s but also expresses the increasingly inseparable
balance between the econo%ic concerns and the environ%ental and
social issues $aced by a business. * business %ust not grow at the
expense o$ %ankind and %anJs $uture but rather %ust serve %ankind.
Share han has $ailed to evolve into a widespread internet
broking fr% because o$ its un$ocused pro%otional strategies
7advertise%ents in electronic %edia' newspapers' etc8 across the
length and breadth o$ India. *lthough it is a well known broking
house in so%e states like 9aharashtra' Duarat' etc. it still lacks
considerable awareness in the northern parts o$ India where its
co%petitors have been building their reputation very rapidly.
!he other o$ Share han is that they give %ore attention to HNIs
7high net worth individuals8 as co%pared to retail investors.
9ost o$ the processing and clarifcations 7account opening'
pay%ents' etc8 are routed to the head oOce in 9u%bai due to
lack o$ decision P%aking powers o$ local branches which delays
the speedy execution o$ decision
1.9 Co'+%tito, Ino,'ation
8+aia.o'
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Co'+an) &a!$,o0n2
Indiain$oline was $ounded in @446 and was positioned as a research
fr%. In 2000 ebroking was started under the brand na%e o$ 6
paisa.co%. *part $ro% o/ering online trading in stock %arket the
co%pany o/ers %utual $unds online. It also acts as a distributor o$
various fnancial services i.e. D)I securities' ,o%pany Fixed ?eposits'
Insurance. #i%ited ground network' present in 20 ,ities.
Onlin% Ao0nt T)+%
QInvestor !er%inal" Investors C Students
Q!rader !er%inal" ?ay !raders C HNIJs
PRICING FOR RETAIL CLIENTS
In7%to, T%,'inal
QAo0nt O+%nin$=>s 600
QD%'at 1tY,=>s 260
QInitial /a,$in=>s 26007,o%pulsory8
Q/in /a,$in R%taina(l%=>s @000
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Q&,o!%,a$%=
!rading 0.@0G each side R S!
?elivery 0.60G each side R S!
PRICING FOR HNI CLIENTS
T,a2%, T%,'inal
QAo0nt O+%nin$=>s 600
QD%'at 1tY,=>s 260
QInitial /a,$in=>s 60007,o%pulsory8
Q/in /a,$in R%taina(l%=>s @00
Q&,o!%,a$%=
!rading 0.@0G each side R S!
?elivery 0.60G each side R S!
7Negotiable to 0.06G each side L 0.26G8
QAo0nt A% C#a,$%
9onthly >s =00' adustable against -rokerage
early >s =000' adustable against brokerage
D%al Clin#%, 7B 8 Paia
QDo5nti'%
>ecent past 6 paisa !rader !er%inal 7!.!8 is experiencing high
$re&uency downti%e between < P
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Q/an0al Ao0ntin$
!he 6 paisa accounting syste% is %anual' )nline $und trans$er through
bank is not credited instantly. #i%it is provided E)? $or shares sold
$ro% ?+' or call si%ilarly li%it released $or shares soldunder -!S! is
%anual ?elay in receiving payout o$ clear $unds $ro% trading to -ank
*ccount
Q/in Ao0nt &alan%
,oncept o$ 9in >s @'000 to be %aintained in $or% o$ cash C securities
to keep account active. !his can be withdrawn only on closure o$
account.
Kota!t,%%t
Co'+an) &a!$,o0n2
otakstreet is the retail ar% o$ kotak securities. otak Securities li%ited
is a oint venture between otak 9ahindra -ank and Dold%an Sach.
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Onlin% Ao0nt T)+%
Q!win *dvantage C Dreen ,hannel=2 ?+Js' #i%it against shares
QFree 1ay=Flat >s 444 ,over ,harge p.%' 0.0 co%petitor
,ontract Note.
QNo C0to'iation o o''%,ial T%,'
No Flexibility in #everage P ?ependent on !ype o$ *ccount 7 ; to :
ti%es only8 No (exibility in -rokerage' driven by slab structure
Q/an) Ot#%, C#a,$%
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>s 22.6 p.% towards ?+ *9, charges
?+ inco%ing charges extra' 0.02G
>s @'000 as retainable 9argin to keep account active
>s 26 per call a$ter 20 calls $or the %onth
INDIA&ULLS
Co'+an) &a!$,o0n2
India -ulls is a retail fnancial services co%pany present in 50 locations
covering :2 cities. It o/ers a $ull range o$ fnancial services and
products ranging $ro% E&uities to Insurance. ;60 R >elationship
9anagers who act as personal fnancial advisors
Onlin% Ao0nt T)+%
QSi$nat0,% Ao0nt=+lain Kanilla *ccount with $ocus on E&uity
*nalysis. !he e&uity analysis is a paid service even $or *Cc holders
QPo5%, In2ia (0ll=*ccount with sophisticated trading tools' low
co%%issions and priority access to >.9
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P,iin$ o I& Ao0nt
Si$nat0,% Ao0ntQAo0nt O+%nin$=>s 260
QD%'at=>s 200 i$ +)* is signed' No *9, $or this ?+
QInitial /a,$in= NI#
Q&,o!%,a$%=Negotiable
Po5%, In2ia &0ll
QAo0nt O+%nin$=>s 560
QD%'at=>s 200 i$ +)* is signed' No *9, $or this ?+
QInitial /a,$in= NI#
Q&,o!%,a$%=Negotiable
D%al Clin#%, 7B In2ia &0ll
QPOA o, Cli%nt D/AT
*ll shares held by client trading with I- are %oved to I- +ool *ccount
and the sa%e is shown as a re(ection in client ?+ account. ,harges are
levied to %ove shares $ro% I- pool *ccount to client ?+ account
QPai2 R%%a,# S%,7i%
*ccess to a research even $or an I- trading account holder is charged a%in o$ >s 600 a %onth
Q/a,$in 0n2in$ #oa"
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!he interest on $unding starts on leveraged delivery trades $ro% !R@
day itsel$ 2@G p.a' on a daily basis
QT#% ,ol% o R%lation#i+ /ana$%,
Each >9 is looked upon as a revenue generator and he gets a G on
business generated $ro% client. !his can lead to over leveraged
7Interest8 L high $re&uency 7-rokerage8 trading' which %ay not be in
the best interest o$ the client.
ICICIDi,%t
Co'+an) &a!$,o0n2
I,I,I 1eb !rade #i%ited 7I1!#8 %aintains I,I,Idirect.co%. I1!# is an
aOliate o$ I,I,I -ank #i%ited and the 1ebsite is owned by I,I,I -ank
#i%ited
Ao0nt T)+%
QICICI Di,%t %-in7%t Ao0nt= +lain Kanilla *ccount with
$ocus on < in @ advantage. ?i/erentiated in services within the account
@. ,ash on spot
2. 9argin +lus
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+re%iu% trading inter$ace o$ I,I,I?irect #ink is given to ?-, partners
and HNIJs
QAo0nt O+%nin$=>s 560
QS#%'%= For short periods >s 560 is re$undable against brokerage
generated in a &tr. !hese sche%es are introduced
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Q/o,nin$ T,a2% I0%
-eing one o$ the websites with largest no o$ a$ter hour orders which are
pushed @stthing in the %orning' creates a choking o$ orders to the
exchange' causes delay o$ confr%ations $or new order placed during
the early %orning trades.
QR%t,ition o &TST
!he sale o$ shares purchased is restricted to !R@ day and is not
per%itted on !R2 ?ay.
QNo l%7%,a$% o, D%li7%,) t,a2%
?elivery is restricted to the total %oney allocated into the trading
account.
QNo %"i(ilit) on l%7%,a$% on Int,a-2a) t,a2%
!he leverage o$ ; ti%es is available $or intra day trades.
QR%t,ition o &an! Ao0nt
!he choice o$ bank is restricted to I,I,I -ank.
QHi$#%, &,o!%,a$% ,at% 5it# la(
!he delivery brokerage is pegged at 0.56G and trading at 0.@0G each
side' this %akes is very unviable $or custo%ers dealing in large
volu%es. *lthough progressively the delivery and trading brokerage
reduce as volu%es go up.
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1.8 S.W.O.T. Anal)i o S#a,% K#an
* swot analysis $ocuses on there internal and external environ%ents.
Exa%ining strengths and weaknesses in the internal environ%ent and
opportunities and threats in the external environ%ent
STRENGTHS
S%,7i%
*s a product share khan is a extre%ely innovative product with very
less cost services like online trading $acility institutional and do%estic
broking. ,usto%ied research with al%ost =0G eOciency etc. share
khan an edge over its research provides other support services that
%ake retail investors %ore confdent and assured with their trading.
S9S alerts 7allowing traders and investors to %ake the %ost o$ the
available opportunities8. So$ter intangible $eatures like a%agers' e&uity
driving pre$erence. !hrough eOcient trading processes investors can
place their orders directly on the internet do all the in$or%ation seeking
and basically own the investing process.
Dit,i(0tion n%t5o,!
Sharekhan with al%ost 260 branches spread across @2< cities bee$ed
up by co%prehensive online research advice and transaction services.
In near $uture expect to %ake 200000retail custo%ers being serviced
through centralied call centreC web solution. :0 branches se%i
branches servicing aTuent aggressive through highly skilled fnancial
advisors. 260 independent advisory roles through $unda%ental L
technical research and new initiatives are being %ade in port$olio
%anage%ent services L co%%odities trading.
/a,!%tin$
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Sharekhan is a product o$ SSI a veteran e&uities solutions co%pany
with over decades o$ experience in the Indian stock %arkets.
Sharekhan does not clai% expertise in too %any things. ShraekhanJs
expertise lies in stocks and that what it talks about with authority. Sowhen he saves that investing in stocks should not be con$used with
trading in stocks or a port$oliobased strategy is better than betting on
a single horse. It is so%ething that is spoken with years o$ $ocused and
experience in the stock %arkets.
P,o20t
,o%panyJs product line is &uite (exible in the sense that there is a
product $or every kind o$ investors. *lso all the products cover all the
products o/ered by the other co%petitors like low cost user$riendly
online trading services etc.
WEAKNESS
#ocalied presence due to insuOcient invest%ents $or country
wide expansion.
#ack o$ awareness a%ong custo%ers because o$ nonaggressive
pro%otional strategies 7print %edia' newspapers' etc8.
#esser e%phasis on custo%er retention.
Focuses %ore on HNIs than retail investors which results in
%eager %arketshare as co%pared to close co%petitors.
OPPORTUNITIES
!he external environ%ent analysis %ay reveal certain opportunities $or
proft and growth.
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E7%,-in,%ain$ 'a,!%t
*$ter the NSE brought the screen based trading syste% stock %arkets
are now %ore secured which has attracted lot o$ retail investors and
the de%and is increasing day by day. !his has resulted in i%proved
li&uidity and heavy volu%es on transaction. Share khan is one o$ the
early entrants here. *s to how %uch it will roar swi$t it can swoop on
the %arket' the $uture alone can answer such &ueries. Sharekhan has
been a %ega player and is known $or being a %over o$ stocks. It is also
known $or putting big deals through and enoys good networking with
the FIIs. It has been dyna%ic enough to %ove with the ti%es and
capture the opportunities that the %arket throws up $ro% ti%e to ti%e.
I'+,o7in$ t%#nolo$)
In county like India technology is always i%proving which gives the
co%pany a chance to keep on i%proving their product with ti%e
whereas $or the s%all players like local brokers it will be diOcult tokeep the sa%e pace as the changing technology. *lso with SE-I lying
down so%e strict guidelines s%all brokers are fnding it harder to retain
custo%ers with no research depart%ent and s%all capital. !he
traditional business players %ay not have syste%s technology'
custo%er services etc capable o$ directly servicing so %any retail
custo%ers.
E20ation l%7%l
!he education level in the country is i%proving year as $ar as
technology goes. 1ith that the understanding o$ the stock %arket is
also increasing and a lot o$ retail investors are steeping in the %arkets
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which are being shown by increasing volu%es' transactions and
indices.
THREATS
*ggressive pro%otional strategies by close co%petitors %ay
ha%per Share hanJs acceptance by new clients.
#ack o$ suOcient branchoOces $or speedy delivery o$ services.
)ther players are providing %argin $unds to investors on easy
ter%s where as there is no such $acility in share khan.
9ore and %ore players are venturing into this do%ain which can
$urther reduce the earnings o$ Share han.
1. PESTLE Anal)i o S#a,% K#an
PESTLEanalysis stands $or U+olitical' Econo%ic' Social'
and !echnological analysisU and describes a $ra%ework o$ %acro
environ%ental $actors used in the environ%ental scanningco%ponent
o$ strategic %anage%ent. So%e analysts added #egal and rearranged
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the %ne%onic to S#E+!BV@Winserting Environ%ental $actors expanded
it to +ES!E# or +ES!#E
CO/POSITION
+olitical $actors are basically to what degree
the govern%entintervenes in the econo%y. Specifcally' political
$actors include areas such as tax policy' labour
law' environ%ental law' trade restrictions' tari/s' and political
stability. +olitical $actors %ay also include goods and serviceswhich the govern%ent wants to provide or be provided 7%erit
goods8 and those that the govern%ent does not want to be
provided 7de%erit goodsor %erit bads8. Further%ore'
govern%ents have great in(uence on the health' education'
andin$rastructureo$ a nation
Econo%ic $actors include econo%ic growth' interest
rates' exchange ratesand the in(ation rate. !hese $actors have%aor i%pacts on how businesses operate and %ake decisions. For
exa%ple' interest rates a/ect a fr%Xs cost o$ capitaland there$ore
to what extent a business grows and expands. Exchange rates
a/ect the costs o$ exporting goods and the supply and price o$
i%ported goods in an econo%y
Social $actors include the cultural aspects and include health
consciousness' population growth rate' age distribution' career
attitudes and e%phasis on sa$ety. !rends in social $actors a/ect thede%and $or a co%panyXs products and how that co%pany operates.
For exa%ple' an aging population %ay i%ply a s%aller and less
willing work$orce 7thus increasing the cost o$ labor8. Further%ore'
co%panies %ay change various %anage%ent strategies to adapt to
these social trends 7such as recruiting older workers8.
26
http://en.wikipedia.org/wiki/PEST_analysis#cite_note-1http://en.wikipedia.org/wiki/Governmenthttp://en.wikipedia.org/wiki/Tax_policyhttp://en.wikipedia.org/wiki/Labour_lawhttp://en.wikipedia.org/wiki/Labour_lawhttp://en.wikipedia.org/wiki/Environmental_lawhttp://en.wikipedia.org/wiki/Trade_restrictionhttp://en.wikipedia.org/wiki/Tariffshttp://en.wikipedia.org/wiki/Merit_goodhttp://en.wikipedia.org/wiki/Merit_goodhttp://en.wikipedia.org/wiki/Demerit_goodhttp://en.wikipedia.org/wiki/Healthhttp://en.wikipedia.org/wiki/Educationhttp://en.wikipedia.org/wiki/Infrastructurehttp://en.wikipedia.org/wiki/Economic_growthhttp://en.wikipedia.org/wiki/Interest_ratehttp://en.wikipedia.org/wiki/Interest_ratehttp://en.wikipedia.org/wiki/Exchange_ratehttp://en.wikipedia.org/wiki/Inflation_ratehttp://en.wikipedia.org/wiki/Cost_of_capitalhttp://en.wikipedia.org/wiki/PEST_analysis#cite_note-1http://en.wikipedia.org/wiki/Governmenthttp://en.wikipedia.org/wiki/Tax_policyhttp://en.wikipedia.org/wiki/Labour_lawhttp://en.wikipedia.org/wiki/Labour_lawhttp://en.wikipedia.org/wiki/Environmental_lawhttp://en.wikipedia.org/wiki/Trade_restrictionhttp://en.wikipedia.org/wiki/Tariffshttp://en.wikipedia.org/wiki/Merit_goodhttp://en.wikipedia.org/wiki/Merit_goodhttp://en.wikipedia.org/wiki/Demerit_goodhttp://en.wikipedia.org/wiki/Healthhttp://en.wikipedia.org/wiki/Educationhttp://en.wikipedia.org/wiki/Infrastructurehttp://en.wikipedia.org/wiki/Economic_growthhttp://en.wikipedia.org/wiki/Interest_ratehttp://en.wikipedia.org/wiki/Interest_ratehttp://en.wikipedia.org/wiki/Exchange_ratehttp://en.wikipedia.org/wiki/Inflation_ratehttp://en.wikipedia.org/wiki/Cost_of_capital8/10/2019 MBA - Operations_Project Report
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!echnological $actors include technological aspects such
as >L?activity' auto%ation' technology incentives and the rate
o$technological change. !hey can deter%ine barriers to entry'
%ini%u% eOcient production level and
in(uence outsourcingdecisions. Further%ore' technological shi$tscan a/ect costs' &uality' and lead to innovation.
Environ%ental $actors include ecological and environ%ental
aspects such as weather' cli%ate' and cli%ate change' which %ay
especially a/ect industries such as touris%' $ar%ing' and insurance.
Further%ore' growing awareness o$ the potential i%pacts o$ cli%ate
change is a/ecting how co%panies operate and the products they
o/er' both creating new %arkets and di%inishing or destroying
existing ones.
#egal $actors include discri%ination law' consu%er law' antitrust
law' e%ploy%ent law' and health and sa$ety law. !hese $actors can
a/ect how a co%pany operates' its costs' and the de%and $or its
products.
27
http://en.wikipedia.org/wiki/R%26Dhttp://en.wikipedia.org/wiki/Automationhttp://en.wikipedia.org/wiki/Technological_changehttp://en.wikipedia.org/wiki/Barrier_to_entryhttp://en.wikipedia.org/wiki/Outsourcinghttp://en.wikipedia.org/wiki/Innovationhttp://en.wikipedia.org/wiki/Climate_changehttp://en.wikipedia.org/wiki/Discrimination_lawhttp://en.wikipedia.org/wiki/Consumer_lawhttp://en.wikipedia.org/wiki/Antitrust_lawhttp://en.wikipedia.org/wiki/Antitrust_lawhttp://en.wikipedia.org/wiki/Employment_lawhttp://en.wikipedia.org/wiki/Health_and_safety_lawhttp://en.wikipedia.org/wiki/R%26Dhttp://en.wikipedia.org/wiki/Automationhttp://en.wikipedia.org/wiki/Technological_changehttp://en.wikipedia.org/wiki/Barrier_to_entryhttp://en.wikipedia.org/wiki/Outsourcinghttp://en.wikipedia.org/wiki/Innovationhttp://en.wikipedia.org/wiki/Climate_changehttp://en.wikipedia.org/wiki/Discrimination_lawhttp://en.wikipedia.org/wiki/Consumer_lawhttp://en.wikipedia.org/wiki/Antitrust_lawhttp://en.wikipedia.org/wiki/Antitrust_lawhttp://en.wikipedia.org/wiki/Employment_lawhttp://en.wikipedia.org/wiki/Health_and_safety_law8/10/2019 MBA - Operations_Project Report
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CHAPTE ! "
#$%ECTI&E AN' ETH#'##*+
*.1 SIGNIFICANCE
!his proect will acco%plish to understand the proble% $aced by the
new client with respect to online share trading and fnd ways to solve
their &ueries at %icroscopic level. !he study also ai%s to highlight the
possible hurdles that a prospective client $aces who are interested to
investing in securities but is unaware o$ the syste% o$ online share
trading. Its also ai%s at fnding out the brand i%age o$ the organiation
a%ongst the general investors and give in$or%ation to the
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%anage%ent about the new develop%ents in the %arket adopted by
the co%petitors and the areas where the co%pany needs to i%prove.
!his is a li%ited study which takes into consideration the various
operations per$or%ed by the co%pany. !his data can be exported to
take in the trends across the industry. !he signifcance $or the industry
lies in studying these trends that e%erge $ro% the study. It is a rapidly
changing and evolving sector.
*t sharekhan our goal is not only to sell a bike' but also to help you
every step o$ the way in %aking our world a better place to live in.
besides its will to provide a high &uality service to all o$ its custo%er.
Sharekhan takes a stand as a socially responsible enterprise respect$ul
o$ its environ%ent and respect$ul o$ the i%portant issues.
Sharekhan has been strongly co%%itted not only to environ%ental
conservation progra%%es but also expresses the increasingly
inseparable balance between the econo%ic concerns and theenviron%ental and social issues $aced by a business. * business %ust
not grow at the expense o$ %ankind and %anJs $uture but rather %ust
serve %ankind.
!he best is yet to co%e. SH*>EH*N is powering its way through a
%arket that is still to unleash its true potential' as barely two percent
o$ the population had been penetrated so $ar.
*.* /ANAGERIAL USEFULNESS OF THE STUDY
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!he stock %arket is one such institution whose very existence has
been challenged by the growth in in$or%ation technology. It has turned
very idea o$ a stock %arket on its head.
!echnology has i%pact the working o$ stock %arkets in every sense.
However' use$ul starting point $or this study would be the study o$
de%aterialiation' or de%at as it is popularly known as. !his is si%ply
because de%at has change the way stocks are held and traded and
there$ore has e/ect on every other $unction o$ the %arket.
?e%aterialiation in si%ple ter%s %eans the conversion o$ shares $ro%
physical to electronic $or%.
?e%at' enabled by the use o$ technology is probably is single %ost
i%portant $actor which has repercussions on every aspect o$ the stock
%arkets.
?e%at in India started with the creation o$ NS?# 7National stock
depository li%ited8 in @44:. !I was one o$ the frst institutions to use
de%at when it decided to de%aterialie 60G o$ its holdings in @445.
SE-I gave a boost to de%at' with co%pulsory trading on shares in
de%at $or% in specifed scrips by institutional investors $ro% 3an @6'
@44=.
Ta(l%"N0'(%, o ,i+ 0n2%, o'+0lo,) 2%'at an2 7al0% o
2%'at #a,%
Ti'%lin%No. o ,i+ Y%a, Val0% o 2%'at
#a,%
9ar @444
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,onse&uently' an increasing percentage o$ the share trading is done in
de%at $or%"
!he exhibit below shows the percentage o$ de%at shares in the total
value traded at NSE over a period o$ : years.
Ta(l%= +%,%nta$% o t,a2% in 2%'at o,'
Ti'%lin% P%,%nta$% o t,a2% in 2%'at o,'
*pr @44= 2.6G
?ec @444 54.
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out o$ $or de%at credit allot%ents' trading co%pulsorily in de%at $or%
within an option o$ holding shares in physical $or% $or retail investors.
-SE' the frst exchange to be set up in India' started as a (oorbased
exchange. However' NSE' setup as an alternative to -SE' was anelectronic 7co%puteried8 exchange. 1ith advance%ents in
technology' both these exchanges %oved to S-!S 7Screen -ased
!rading Syste%8 in Y445.
1hile NSE introduced NE*! 7NSEJs )nline !rading Syste%8 in 9ay
@445' -SE introduced -)#! 7-SEJs )nline !rading Syste%8 in
Septe%ber @445 in 9u%bai.
!he outco%e has pheno%enal with respect to the nu%ber o$ trades
taking place on these two exchanges.
Further' trading in stocks has reached retail investors ho%e via the
Internet in 200
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It %akes o/exchange transactions attractive due to absence o$
trading costs.
)n the other hand rapid (ow o$ in$or%ation has also %eant increased
volatility in the %arkets. In fnancial ter%s' volatility is"
!he degree to which the price o$ a security' co%%odity' or %arket rises
or $alls within a shortter% period. *n obvious reason $or %arket
volatility is technology. !his includes %ore ti%ely in$or%ation
disse%ination' i%proved technology to %ake trades and %ore kinds o$
fnancial instru%ents. !he $aster in$or%ation is disse%inated' the
&uicker %arkets can react to both negative and positive news.
I%proved trading technology %akes it easier to %ake it easier to takeadvantage o$ arbitrage opportunities' and the resulting price align%ent
arbitrage causes. Finally' %ore kinds o$ fnancial instru%ents allow
investors %ore opportunity to %ove their %oney to %ore kinds o$
invest%ents positions when conditions change.
*.6 O&>ECTIVE OF THE STUDY
,usto%er *c&uisition through sales o$ !rading C ?e%at *ccounts in
order to get a deep insight as to how the )rganiation actually
per$or%s these $unctions.
nderstanding the ,o%%odity and ?erivative %arket and the way
work is per$or%ed in these seg%ents.
Investigate the diOculties $aced by the existing clients o$ Share
han with respect to its internet trading services
!he pri%ary obective o$ this study is to gain an insight into the
basics o$ internet trading with respect to Indian capital %arket.
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!o ascertain the proble%s those are hindering the acceptance o$
internet trading a%ong the prospective investors.
!o conduct 9arket >esearch in various parts o$ the city in order to
get statistical data $or co%%enting on the $uture o$ online share
trading in India.
*.9 SCOPE OF THE STUDY
1ith growing acceptance and popularity o$ internet trading the
study ai%s at providing a deeper insight into this new feld o$
security trading in India.
*ssess the penetration o$ internet trading with respect to the
growth o$ broadband connectivity provided by various Inter
Service +roviders 7IS+s8. to help Share han in developing a
better custo%er ac&uisition retention strategy in relation to retail
as well as institutional investors.
*.8 /ETHODOLOGY
!he leads $or custo%er ac&uisition pri%arily ca%e $ro% the
&uestionnaires flled up by prospective custo%ers. *part $ro%
these custo%ers were also pitched through personal re$erences
and contacts. 9oreover the organiation takes every possible
e/ort in order to spread %ass awareness. *s a result o$ this
publicity ca%paign' in(uenced prospective custo%ers approach
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the organiation. !here are various ways to %ake people aware
about the organiation as such 9arketing >esearch' ,anopy'
+ersonal >e$erences' +opup windows having collaboration with
various portals e.g. >edi/%ail.co% etc. +erson with ade&uate
interest leaves his contact in$or%ation. #ater on these leads are
contacted personally $or $urther develop%ent.
!he organiation has eOcient sales stu/ that excels in this ob.
+art ti%e trainees are also appointed $or the sa%e. !his work
$orce been per$ectly supervised by the 9anagers. !hus all these
$actors su% up into a result oriented work $orce. !hese leadswere the contacted through tele calling and a$ter developing a
relationship' they were pitched in at the addresses provided by
the%. *$ter giving the% a presentation about the product and its
advantages over its co%petitors' they were pro%ised o$ a ?e%o
by co%pany sales $orce in case a sale had resulted. *lso
re$erences were collected $ro% such people and the sa%e
%ethodology was repeated. For each and every custo%er
personal &uarries have been entertained a$ter the sale is done.
9ethodology is a way to syste%atically solve to research
proble%. it %ay be understood as a science o$ studying how
research is done scientifcally. In it we study the various steps
that are generally adopted by a researcher in studying his
research proble% along with logic behind hi%. 1hy research
study has been undertaken' how research proble% has been
defned' in what way and why the hypothesis has been
$or%ulated' what data collected and what particular %ethod has
been adopted' why particular techni&ue o$ analying data has
been used and a host o$ si%ilar other &uestions are usually
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answered when we talk o$ research %ethodology concerning a
research proble% or study.
>esearch is a process o$ refning hu%an experience $or being
e%bodied in the stock o$ knowledge. In course o$ this refning
operation a researcher has to $ollow various specifc steps. First'
any develop%ent in the scientifc knowledge is $ounded on the
basis o$ previous knowledge in that area o$ study. Further' a
researcherJs &uest is to adopt a suitable %ethodology to pursue
his current research endeavor. !his enables hi% to get reliable
results' which are help$ul to $or% so%e concrete conclusions.
+resent research ai%s to investigate the level o$ custo%er
satis$action a%ongst di/erent product types o$ Sharekhan.
-oth type i.e. +ri%ary as well as Secondary data are used in this
report.
Zuestionnaire and )bservation as pri%ary data while >esearch
reports' pa%phlets' and sites o$ Sharekhan group are used $or
secondary data.
+resent research is descriptive in nature.
,onvenient sa%pling techni&ue is used in this report.
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CHAPTER 6
CONCEPTUAL DISCUSSION
;THEORITICAL &ACKDROP LITERATUREREVIEWealti%e +o,tolio t,a!in$with price al%,t
and' o$ course' the assurance o$ secure transactions.
T#% Dial-n-T,a2%service enables one to place orders $or buying
and selling shares through telephone by dialing any one o$ our
two nu%bers 71-344-**-J484or 6464J448' enter your TPIN
n0'(%,7which is provided at the ti%e o$ opening your account8
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and on authentication )o0ll (% 2i,%t%2 to a t%l%(,o!%,who
will buy and sell shares $or you.
*. RESEARCH
!o cater to the di/erent needs o$ each investor sherkhan provides
a co%prehensive set o$ research reports' so that you can %ake
the right invest%ent decisions regardless o$ your investing
pre$erences.
A. SHAREKHAN SHOPS
It has 814 #a,% #o+ across @50iti% in India. !here it provides a
host o$ trading related services custo%er service sta/ will also help
you with any accounts related &ueries you %ay have.
* Sharekhan outlet o/ers the $ollowing services"
)nline -SE and NSE executions 7through -)#! L NE*! ter%inals8
Free access to invest%ent advice $ro% Share khanJs >esearch tea% Sharekhan Kalue #ine 7a %onthly publication with reviews o$
reco%%endations' stocks to watch out $or etc8
?aily research reports and %arket review 7High Noon L Eagle Eye8
+re%arket >eport 79orning ,uppa8
?aily trading calls based on !echnical *nalysis
,ool trading products 7?aring ?erivatives and 9arket Strategy8
+ersonalied *dvice
#ive 9arket In$or%ation
?epository Services" ?e%at L >e%at !ransactions
?erivatives !rading 7Futures and )ptions8
,o%%odities !rading
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I+)Js L 9utual Funds ?istribution
Internetbased )nline !rading" Speed !rade
&.DE/AT
?e%aterialiation and trading in the de%at
%ode is the sa$er and $aster alternative to
the physical existence o$ securities. ?e%at
as a parallel solution o/ers $reedo% $ro%
delays' the$ts' $orgeries' settle%ent risks
and paper work. !his syste% works
through depository participants 7?+s8 who o/er de%at services and
the securities are held in the electronic $or% $or the investor directly
by the ?epository.
Sharekhan ?epository Services o/ers de%aterialiation services to
individual and corporate investors.
6. /UTUAL FUNDS
Share khanJs clients will now also be able to invest in 9utual $unds
through the%. !hey have already started this service $or a $ew %utual
$unds' and in the near $uture will be expanding our scope to include a
whole lot %ore. *pplying $or a %utual $und through us is open to
everybody' regardless o$ whether you are a Sharekhan custo%er.
!o invest in a $und' all you have to do is download the application $or%'
print it out' fll it in and send it over to the%.
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6. P/S
!his is a product which allows the custo%er to be co%pletely hands o/
as all the e&uity decisions o$ the custo%er are taken y the
pro$essionals appointed by the fr%.
!he product is classifed into three categories"
+ro!ech
+ro+ri%e
+ro*rbiterage
P,oT%#
+roduct )/erings
Ni$ty !hri$ty"
Ni$ty $utures are bought and sold and the exposure does not
exceed the value o$ the
port$olio. !he advantage is
that Ni$ty allows %aking profts
even in $alling %arkets
-eta +ort$olio "
Here =0G o$ the port$olio is traded in
delivery 7cash
%arket8 and the rest 20G in the
Future and )ption seg%ent 7e.g.
-uying calls Cput etc.8!his results in
a higher and sa$er return as risk is undertaken only on the 24G o$ the
port$olio
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P,oP,i'%
+roduct )/erings
!he *ggressive Sche%e"
Ideal $or investors looking at higher returns and are ready to
take higher risks.
!he port$olio consists o$ the $ollowing stocks"
Expected growth in proftability
>elatively low valuations
9id to s%allcap co%panies
!he -alanced Sche%e"
Ideal $or investors looking at steady returns with low risk
appetite consists o$ a blend o$ consistent a blue chip stocks
ensuring a balanced growth.
P,oA,(it%,a$%
It spots risk $ree opportunities which o/er higher return than other risk
$ree instru%ents available in the %arket. )n spotting the opportunity
the stock is bought and the $uture is sold so as to lock in the spread. In
this way the sche%e %oves $ro% one opportunity to another.
ACCOUNT OPENING
!heir de%at and trading aCc opening charges 7co%bined8 are >s 460C
and it as %andatory to open both the accounts there i.e. you cannot
open ust de%at or trading aCc with the%. *nnual 9aintenance ,harges
are not charged $or frst 2 years and therea$ter levied >s. 260 p.a.
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&ROKERAGEslabs are as $ollows"
Invest%ent
*%ount
-rokerage7in G8Intraday ?elivery
6000@0'000 0.@0 0.60@0'00060'000 0.06 0.2660'000@'00'000 0.0< 0.
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2. S+%%2 t,a2% t%,'inal Speedtrade is a power$ul trading
and research plat$or% that has live strea%ing &uotes'
trading calls' advanced charting' %arket news and a single
trading screen $or -SE L NSE. It is not provide to all the
clients. )nly those clients are eligible $or it that can
generate a &uarterly brokerage o$ >s.@600. )therwise'
they are bound to pay the penalty o$ the re%ainder.
,o%paratively it has got %ore and advanced $eatures' e.g."
one can see %ore nu%ber o$ scripts at a ti%e on the
screen.
?ialntrade 7calling the dealers on phone and getting the trade
done through the%8
R./. FACILITY
>elation %anagers are the people who provide their clients with the
regular tips $or trading in e&uity %arket and thereby assist the% in
getting the %axi%u% returns.
In sherkhan' relationship %anagers are not provided to all the clients.
!his $acility is only %ade available to those clients whoJs port$olio is
above >s. 2' 00'000C.
TECHNICAL REPORTS
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!heir clients receive ; %ails per day in$or%ing the% about the %ost
probable share %arket %ove%ents $or that day.
!heir !echnical !rading calls based on the &,a7% #%a,t St,at%$)has
consistently given a strike rate o$ =5G on calls with a @2 %onths o$
price target and 46G $or calls based on
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6.6 SHAREKHAN SERVICES
Dial-n-t,a2%
*long with enabling access $or your trade online' the classic and
Speedtrade account also gives you our dialntrade services. 1ith
this service' all you have to do is dial our dedicated phone lines @
=00225600 and based syste% $ro authentication.
No wait ti%e. )n entry o$ phone id and !+IN' the call is
trans$erred.
!rusted' pro$essional advice o$ !albrokers' who o/er r
undiluted sharekhan research inputs.
IPN ON-Lin%
,an apply the entire $ollowing I+) online $or $ree.
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R%%a,# ti+= ,o%pany provide ;: e%ails to therecusto%ers per day.
P,% /a,!%t=pre%arket report covering views' events and%ore.
Da,in$ 2%,i7ati7%=covers $utures and option co%%entaryand trading calls.
Hi$# Noon=is ai%ed at traders' this technical daily newsletter
carries punters calls and s%art chart. It is released at noon to be
acted upon during the course o$ the day.
Pot-/a,!%t ,%+o,t= updates you day happening.
Ea$l% E)%= is ai%ed at traders' this technical daily newsletter
carries punters calls' hit list and s%art chart. ItJs released at the
end o$ the day to be acted on $ollowing day.
In7%to, %)%= is ai%ed at investors' this $unda%ental daily
newsletter carries %ost i%portant news report' research update
on our stock idea and other $unda%ental reports.
Sto! i2%a= ai%ed at investors and it presents our best stock
picks in todayJs %arket.
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CHAPTER 9
DATA ANALYSIS
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Anal)i
)n the basis o$ the pri%ary data collected through &uestionnaires L
personal interviews conducted with co%paniesJ e%ployees and clients
analysis was done and $ollowing are the &uestion wise results"T)+% o In7%to,
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S%all investors pre$er to invest in the stock %arket through >eligare
Securities #td.' India -ulls Financial Services #td. L I,I,I ?irect.co%.
>eliance 9oney is being pre$erred %ore by %ediu% investors.
Sharekhan is suitable $or big investors.
/%2i0' o T,a2%
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It has been observed that tradersJ inclination towards online trading is
increasing. Investors who opt $or online trading are %ore in >eligare
and Indiabulls as their so$tware ter%inal is very e/ective. )Tine
traders are %ore in Sharekhan and I,I,I ?irect.co% as their ter%inal is
very expensive as well as inaccurate. >eliance9oney o/ers only
internet based trading.
T%#nial R%+o,t
58Fi$0,%= 9.6
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>eligare send %arket tips through E%ails to the clients. 9oreover
>elationship 9anager also keeps on giving %arket tips to their
respective clients. Indiabulls provide %arket tips through e%ails and
so%eti%es through s%s. -oth these co%panies are irregular in sending
technical reports to their clients. )n the other hand' Sharekhan and
I,I,I ?irect.co% are very regular in sending technical reports to their
clients. Share khan send ; reports through %ails which include
pre%arket report be$ore 4"66' post %arket report' a$ternoon report and
evening report. I,I,I ?irect.co% sends their %arket tips through e
%ails only.
4@G o$ the respondents says that Sharekhan is nu%ber one in the
%arket.
!he co%%on reasons behind this arte as $ollows"
Dood returns
*dvisory
,usto%ied services
)nly 4G o$ the respondents fnd that Sharekhan is not nu%ber one in
the %arket.
-ut the reasons o$ this thing was not even clear to the respondents as
they fll they need %ore custo%ied services and %ore returns out o$
their invest%ent.
So at last here I would like to reco%%end that i$ Sharekhan gives %ore
e%phasis on custo%ied services then %ore and %ore custo%ers get
satisfed.
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CHAPTER 8- FINDINGS AND
RECO//ENDATION S
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Int%,+,%tation" !his shows that although the %utual $unds %arket is
on the rise yet' the %ost $avored invest%ent continues to be in the
Share 9arket. So' with a %ore transparent syste%' invest%ent in the
Stock 9arket can defnitely be increased.
Int%,+,%tation" 1ith the increase in cyber education' the awareness
towards online share trading has increased by leaps and bounds. !hisawareness is expected to increase $urther with the increase in Internet
education.
O7%,all Satiation
61
Awareness of online share trading
Yes -- 91%
No-- 9%
Fi$0,%= 8.1
Fi$0,%= 8
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,usto%ers are satisfed with the services which are being provided to
>eligare. Indiabulls' I,I,I ?irect.co% and >eliance %oney have satisfed
their clients to so%e extent only. ,usto%ers are not satisfed with
Share khanJs per$or%ance.Sharekhan provide e/ective service only to
the big investors. S%all investors are not given due i%portance and
attention.
Ati7%n% o G,i%7an% %ll
>eligare clients fnd grievance cell o$ the co%pany active to so%e
extents only. Indiabulls is highly ine/ective in redressing custo%er
grievances. Share khanJs grievance cell is not e/ective and custo%ersreceive very indi/erent responses. I,I,I ?irect.co% and >eliance
%oney are particular in redressing their custo%ersJ grievances.
*$ter having an experience o$ two %onths in sales o$ de%at account I
would like to suggest the $ollowing things"
,o%pany has an advantage o$ reach tips $or which sharekhan is
known $or' the custo%er who are new they need relationship
%anagers who will tell the% about invest%ent so it should be
provided to all the custo%er on de%and this will lead to
custo%er satis$action and will hip to have %ore re$erences $ro%
the satisfed custo%er.
!he co%pany also have the advantage o$ brokerage charges it
need so%e revision so that the custo%er who are locking $or the
less brokerage can open there account in our co%pany taking
into consideration the di/erent proposal. It can reduce $or a HNI
client.
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!he co%pany has shown the growth trend and it has reached at
no.2 it can %ove to no.@ because it has an advantage o$ its
services. *s sharekhan is already tieup with @0 banks $or online$und trans$er that reduces the paper work $or custo%er and ease
in trading.
!he co%pany should revise the advertising strategy to increase
its brand awareness. I suggest %aking advertise%ent on
television so that %axi%u% %arket can be targeted.
,o%pany should $ocus on custo%er satis$action at every levels
o$ the account procedure.
-rokerage can be reduced with the attractive proposal with
HNI.
>elationship %anager should be given on the custo%er
de%and. ,o%pany should use the tool o$ advertising $or %arketing
the brand and the product.
>eduction in brokerage would attract the custo%er o$
indiabulls' 6paisa and other co%petitorJs having less
brokerage then us.It would increase the %arket share or
client ac&uisition.
!he account opening ti%e should be reduced to %axi%u%
6days because custo%er losses the opportunity o$
invest%ents.
!he co%pany shows the positive trend in growth but it can
be increased %ore i$ it $ocuses on building the brand e&uity
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Conl0ion
!alking about S#a,%!#anit is one o$ the %ost well known players in
this seg%ent and boasts is o$ high clientele because o$ its good andregular research tips' tieups with al%ost all %aor banks 7@0 banks to
be precise8 as well as co%petent >elationship 9anagers. -ut the only
stain on its na%e because o$ the $act that it doesnJt care %uch $or its
s%all custo%ers who are not even provided an >.9. *lso their ter%inal
charges are also &uiet high as co%pared to that o$ its co%petitors.
1hile there are %any $actors that need to be understood' one si%ple
$act is worthy o$ note. !he average age o$ the Indian Internet user as
cited by a recent I?, survey is 25 years. !he average age o$ the head
7and fnancial decision taker8 o$ the Indian e&uityinvestor household'
as revealed by the SE-IN,*E> study o$ Indian investors in 2000 is ;6
years. !he older' experienced e&uity investor is not online today and
the $act that older' %ature investors are not MtechpositiveJ and hence
unlikely to %ove to online trading is a %aor barrier to the growth o$ e
broking in India.
Here' the nu%bers o$ banks with a strong online presence are very $ew
again' do%inated by new private banks and $oreign banks. -oth have
lesser reach owing to a s%aller network in the country. !he relative
inability o$ large publicsector banks to o/er$acilities $or Internet
banking is a barrier in this regard. -esides' Internet penetration in India
is still very low and concerns about security also tend to predo%inate.
In %arkets like the S' online brokerages are advertised very heavily.
)nline trading in India has so $ar not seen si%ilar levels o$ aggressive
advertising' with the exception o$ I,I,I ?irect and India bulls. -esides'
only scripts that have been co%pulsorily de%aterialied can be traded
on the net here.
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ANNEXURES
UESTIONNAIRE
Name: ..... Occupation:
Pone: .....
(1) Do you invest in stock market?
Yes No
(2)You a!e a c"ient o# $ic is a !o&e!a'e ouse.
(3) What is your Experience in the market?
(ess tan a )ea! 1-4 )ea! *o!e tan 4 )ea!s
(4) What is your Trading re!erence?
+pecu"ation ,nestment ot
(5) What is your Average investment period? (ess tan 3 monts. 3 to 9 monts.
9 monts to 2 )ea!. *o!e tan 2 )ea!.
(6) Factors influencing the investment decisions?
/ice #!om !o&e! u!!ent ne$s
eie$s in inancia" *a'aines /ice #!om !iens
+e"# a"uation Ote!s
(7) How much is! are you willing to ta!e?
i' (o$ *oe!ate
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(") How much Appreciation do you e#pect from your$nvestments?
up to 15% 15%-25% 25%-35%
mo!e tan 35%
(%) How much loss are you willing to ta!e?
(ess an 5% 5-10% mo!e tan 10%
(1")Any suggestions:
........
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&I&LIOGRAPHY
&oo! an2 N%5+a+%,=
!he Econo%ic !i%es' -usiness Standard' -usiness line
Securities 9arket 7-asic8 9odule "N,F9
Econo%ic !i%es.
!raining it +rovided by the Sharekhan.
Indian fnancial syste% by 9. H*N
NS?# ?epository operations %odule "N,F9
URL=
www.indiain$oline.co%
www.econo%icsti%es.co%
http"CCwww.investopedia.co%CarticlesC
www. nseindia.co%
www.bseindia.co%
www.%oneycontrol.co%
www.sharekhan .co%
http://www.economics/http://www.investopedia.com/articles/http://www.bseindia.com/http://www.moneycontrol.com/http://www.economics/http://www.investopedia.com/articles/http://www.bseindia.com/http://www.moneycontrol.com/