My project

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CONTENTS

1. ACKNOWLEDGEMENT 7

2. INTRODUCTION 6

Introduction to stock exchange

Introduction of the company

3. COMPANY PROFILE 8

4. Comparison between different competitor 23

5. REVIEW OF LITERATURE 57

6. RESEARCH METHODOLOGY 60

Objective of study

Type of research

Sample design

Size of sample

Sources of data collection

7. COMPARATIVE ANALYSIS 66

8. FINDING & ANALYSIS 72

9. SUGGESTIONS 80

10. LIMITATIONS 81

11. CONCLUSION 82

12. APPENDIX(Questionnaire) 83

13. BIBLIOGRAPHY 85

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PREFACE

The microstructure of the stock market in which brokers work is highly

dynamic and volatile. Many stocks are available to be bought and sold,

each exhibiting its own patterns and characteristics that are highly

unpredictable. With so many options and considerations that need to

be taken into account, it is an extremely arduous task for a broker to

investigate aspects of the stock market and consistently provide

effective advice to their clients.

Thus, brokers perform their day-to-day tasks with the aid of a broker

system. Such a system should provide tools for interacting with

exchanges and performing analysis. As a consequence, these broker

systems are quite large and complicated by themselves.

This research aims is to analysis Stock broker on the basis of their

services, products, growth, and their subsidiaries. Because

Stockbrokers are one of the main participants in stock exchanges

worldwide, they often act as an agent for their clients, making trades

on their behalf. They also act as advisors, providing suggestions to their

clients on what stocks to buy and sell.

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ABSTRACT

To maintain and cope up with the growing competition from the various share

brokers , Sharekhan needs to find potential customer and also target the new

investors.

The project is being done to know the investment decision of people in share

market . the basic purpose was to do analysis of the various share broker

companies. This will help to know that service provided by the company is good

enough and are they really want to join the sharekhan. the whole procedure is to

know the customer perception about the investment decision and what kind of

product and service customer are looking for. This will help in providing the service

according to the customer willingness. The project will help in exploring the area

where there is the feasibility of acquiring more new investors. It would also help in

knowing the various competitors of the industry and exploring the areas through

which competitive advantage could be obtained.

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EXECUTIVE SUMMARY

There is growing competition between brokerage firms in post reform India. For investor it is always difficult to decide which brokerage firm to choose.

Research was carried out to find which brokerage house people prefer and to figure out what people prefer while investing in stock market.

This study suggest that people are reluctant while investing in stock and commodity market due to lack of knowledge

Main purpose of investment is returns and liquidity, commodity market is less preferred by investors due to lack of awareness. The major findings of this study are that people are interested to invest in stock market but they lack knowledge.

Through this report we were also able to understand, what are our Company’s (Sharekhan Ltd.) positive and strong points, on the basis of which we come to know what can be the basis of pitching to a potential client. We also gave suggestions to the company, what improvement can be done to our product.

Chapter 1

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INTRODUCTIONIn most industrialized countries, a substantial part of financial wealth is

not managed directly by savers, but through a financial intermediary,

which implies the existence of an agency contract between the

investor (the principal) and a broker or portfolio manager (the agent).

Therefore, delegated brokerage management is arguably one of the

most important agency relationships intervening in the economy, with

a possible impact on financial market and economic developments at a

macro level.

In most of the metros, people like to put their money in stock

options instead of dumping it in the bank-lockers. Now, this trend pick

pace in small but fast developing cities like Chandigarh, Gurgaon, Jaipur

etc. My research is based on the residents of Chandigarh and its nearby

areas.

As the per-capita-income of the city is on the higher side, so it is

quite obvious that they want to invest their money in profitable

ventures. On the other hand, a number of brokerage houses make sure

the hassle free investment in stocks. Asset management firms allow

investors to estimate both the expected risks and returns, as measured

statistically. There are mainly two types of Portfolio management

strategies.

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1. Passive Portfolio Strategy

2. Active Portfolio Strategy

1. Passive Portfolio Strategy: A strategy that involves minimal

expectation input, and instead relies on diversification to match

the performance of some market index. A passive strategy

assumes that the marketplace will reflect all available information

in the price paid for securities

2. Active Portfolio Strategy: A strategy that uses available

information and forecasting techniques to seek a better

performance than a portfolio that is simply diversified broadly.

INTRODUCTION OF THE COMPANY

Sharekhan is one of the leading retail brokerage of Citi Venture which is running successfully since 1922 in the country. Earlier it was the

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retail broking arm of the Mumbai-based SSKI Group, which has over eight decades of experience in the stock broking business. Sharekhan offers its customers a wide range of equity related services including trade execution on BSE, NSE, Derivatives, depository services, online trading, investment advice etc.

Earlier with a legacy of more than 80 years in the stock markets, the SSKI group ventured into institutional broking and corporate finance 18 years ago. SSKI is one of the leading players in institutional broking and corporate finance activities. SSKI holds a sizeable portion of the market in each of these segments. SSKI’s institutional broking arm accounts for 7% of the market for Foreign Institutional portfolio investment and 5% of all Domestic Institutional portfolio investment in the country. It has 60 institutional clients spread over India, Far East, UK and US. Foreign Institutional Investors generate about 65% of the organization’s revenue, with a daily turnover of over US$ 2 million.

The content-rich and research oriented portal has stood out among its contemporaries because of its steadfast dedication to offering customers best-of-breed technology and superior market information. The objective has been to let customers make informed decisions and to simplify the process of investing in stocks.

SSKI Group Companies-

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SSKI Investor Services Ltd (Share khan)

S.S. Kantilal Ishwarlal Securities

SSKI Corporate Finance

I dream Productions

Palm spring estates Pvt Ltd.

Fin flow Investment Pvt Ltd.

I dream Production UK Pvt Ltd.

Share khan Commodities Pvt Ltd.

Archfund Properties Pvt Ltd.

Kalsri Trading & Investment Ltd.

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SSKI – Corporate Structure –

SSKI – Corporate Structure

Owns 56% of

SSKI INVESTOR SERVICES PVT. LTD.

Retail broking arm of the group

Shareholding pattern:55.5% Morakhia family (promoters)

18.5% HSBC Private Equity India Fund Ltd

18.5% First Carlyle Ventures, Mauritius

7.5% Intel Pacific Inc.

SSKI Securities Pvt. Ltd.

Morakhia Family & Associates100%

Owns 50.5% of

SSKI CORPORATE FINANCE PVT. LTD.

Investment Banking arm of the groupShareholding pattern:

50.5% SSKI Securities Pvt. Ltd.

49.5 % Morakhia family

WORK STRUCTURE OF SHAREKHAN

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Sharekhan has always believed in investing in technology to build its business. The company has used some of the best-known names in the IT industry, like Sun Microsystems, Oracle, Microsoft, Cambridge Technologies, Nexgenix, Vignette, Verisign Financial Technologies India Ltd, Spider Software Pvt Ltd. to build its trading engine and content. The Citi Venture holds a majority stake in the company. HSBC, Intel & Carlyle are the other investors.

On April 17, 2002 Sharekhan launched Speed Trade and Trade Tiger, are net-based executable application that emulates the broker terminals along with host of other information relevant to the Day Traders. This was for the first time that a net-based trading station of this caliber was offered to the traders. In the last six months SpeedTrade has become a de facto standard for the Day Trading community over the net.

Sharekhan’s ground network includes over 1800+ Shares hops in 600 cities in India till april25 2011.

The firm’s online trading and investment site - www.sharekhan.com - was launched on Feb 8, 2000. The site gives access to superior content and transaction facility to retail customers across the country. Known for its jargon-free, investor friendly language and high quality research, the site has a registered base of over 3 Lacs customers. The number of trading members currently stands at over 7 Lacs. While online trading currently accounts for just over 5 per cent of the daily trading in stocks

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in India, Sharekhan alone accounts for 27 per cent of the volumes traded online.

The Corporate Finance section has a list of very prestigious clients and has many ‘firsts’ to its credit, in terms of the size of deal, sector tapped etc. The group has placed over US$ 5 billion in private equity deals. Some of the clients include BPL Cellular Holding, Gujarat Pipavav, Essar, Hutchison, Planetasia, and Shopper’s Stop.

Finally, Sharekhan shifted hands and Citi venture get holds on it.

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REASONS TO CHOOSE SHAREKHAN LIMITED

Experience

SSKI has more than eight decades of trust and credibility in the Indian stock market. In the Asia Money broker's poll held recently, SSKI won the 'India's best broking house for 2004' award. Ever since it launched Sharekhan as its retail broking division in February 2000, it has been providing institutional-level research and broking services to individual investors.

Technology

With their online trading account one can buy and sell shares in an instant from any PC with an internet connection. Customers get access to the powerful online trading tools that will help them to take complete control over their investment in shares.

Accessibility

Sharekhan provides ADVICE, EDUCATION, TOOLS AND EXECUTION services for investors. These services are accessible through many centers across the country (Over 650 locations in 150 cities), over the Internet (through the website www.sharekhan.com) as well as over the Voice Tool.

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Knowledge

In a business where the right information at the right time can translate into direct profits, investors get access to a wide range of information on the content-rich portal, www.sharekhan.com. Investors will also get a useful set of knowledge-based tools that will empower them to take informed decisions.

Convenience

One can call Sharekhan’s Dial-N-Trade number to get investment advice and execute his/her transactions. They have a dedicated call-center to provide this service via a Toll Free Number 1800-22-7500 & 39707500 from anywhere in India.

Customer Service

Its customer service team assist their customer for any help that they need relating to transactions, billing, demat and other queries. Their customer service can be contacted via a toll-free number, email or live chat on www.sharekhan.com.

Investment Advice

Sharekhan has dedicated research teams of more than 30 people for fundamental and technical research. Their analysts constantly track the pulse of the market and provide timely investment advice to customer in the form of daily research emails, online chat, printed reports etc.

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Benefits

Free Depository A/c

Instant Cash Tranfer

Multiple Bank Option.

Secure Order by Voice Tool Dial-n-Trade.

Automated Portfolio to keep track of the value of your actual purchases.

24x7 Voice Tool acess to your trading account.

Personalised Price and Account Alerts delivered instantly to your Mobile Phone & E-mail address.

Live Chat facility with Relationship Manager on Yahoo Messenger

Special Personal Inbox for order and trade confirmations.

On-line Customer Service via Web Chat.

Enjoy Automated Portfolio.

Buy or sell even single share

Anytime Ordering.

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Chapter 2

Product offer by the company

Sharekhan offers the following products:-

CLASSIC ACCOUNT

This is a User Friendly Product which allows the client to trade through website www.sharekhan.com and is suitable for the retail investors who is risk-averse and hence prefers to invest in stocks or who do not trade too frequently.

Features

Online trading account for investing in Equity and Derivatives via www.sharekhan.com

Live Terminal and Single terminal for NSE Cash, NSE F&O & BSE.

Integration of On-line trading, Saving Bank and Demat Account.

Instant cash transfer facility against purchase & sale of shares.

Competitive transaction charges.

Instant order and trade confirmation by E-mail.

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Streaming Quotes (Cash & Derivatives).

Personalized market watch.

Single screen interface for Cash and derivatives and more.

Provision to enter price trigger and view the same online in market watch.

SPEEDTRADE

SPEEDTRADE is an internet-based software application that enables you to buy and sell in an instant.It is ideal for active traders and jobbers who transact frequently during day’s session to capitalize on intra-day price movement.

Features

Instant order Execution and Confirmation.

Single screen trading terminal for NSE Cash, NSE F&O & BSE.

Technical Studies.

Multiple Charting.

Real-time streaming quotes, tic-by-tic charts.

Market summary (Cost traded scrip, highest clue etc.)

Hot keys similar to broker’s terminal.

Alerts and reminders.

Back-up facility to place trades on Direct Phone lines.

Live market debts.

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DIAL-N-TRADE

Along with enabling access for trade online, the CLASSIC and SPEEDTRADE ACCOUNT also gives Dial-n-trade services. With this service, one can dial sharekhan’s dedicated phone lines 1-800-22-7500, 3970-7500.

Beside this, Relationship Managers are always available on Office Phone and Mobile to resolve customer queries.

ShareMobile

Sharekhan had introduced ShareMobile, A mobile based software where one can watch Stock Prices, Intra Day Charts, Reasearch & Advice and Trading Calls live on the Mobile.

PREPAID ACCOUNT

Customers pay Advance Brokerage on trading Account and enjoy uninterrupted trading in their Account. Beside this, great discount are also available (up to 50%) on brokerage.

Prepaid Classic Account : - Rs. 2000

Prepaid Speed trade Account : - Rs. 6000

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IPO ON-LINE

Customers can apply to all the forthcoming IPOs online. This is quite hassle-free, paperless and time saving. Simply allocate fund to IPO Account, Apply for the IPO and Sit Back & Relax.

Mutual Fund Online

Investors can apply to Mutual Funds of Reliance, Franklin Templeton Investments, ICICI Prudential, SBI, Birla, Sundaram, HDFC, DSP Merrill Lynch, PRINCIPAL and TATA with Sharekhan.

Zero Balance ICICI Saving Account

Sharekhan had tied-up with ICICI bank for Zero Balance Account for Sharekhan’s Clients. Now their customers can have a Zero Balance Saving Account with ICICI Bank after your demat Account creation with Sharekhan.

Charge Classic Account Speed Trade Account

Account Opening Rs. NIL Rs. NIL

Monthly

Commitment

Rs. NIL Rs. NIL

Brokerage Intra-day – 0.05 %

Delivery - 0.50 %

Intra-day - 0.05%

Delivery - 0.50%

CHARGE STRUCTURE

Fee Structure for General Individuals: -

* Taxes as per govt.

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Depository Services –

Share khan is a depository participant with the National Securities Depository

Limited and Central Depository Services (India) Limited for trading and

settlement of dematerialized shares. Share khan performs clearing services for all

securities transactions through its accounts. We offer depository services to create

a seamless transaction platform – execute trades through Share khan Securities

and settle these transactions through the India bulls Depository Services. Share

khan Depository Services is part of our value added services for our clients that

create multiple interfaces with the client and provide for a solution that takes care

of all your needs

Depository Charges

Account Opening Charges Rs. NIL

Annual Maintenance Charges Rs. NIL first year.

Rs. 300/= p.a. from second calendar year onward

EXPOSURE: 4 TO 6.7 TIMES (ON MARGIN MONEY)

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Share khan equity analysis –Building and maintaining your ideal portfolio demands objective, dependable

information. Share khan Equity Analysis helps satisfy that need by rating stocks

based on carefully selected, fact-based measures. And because we're not focused

on investment banking, we don't have the same conflicts of interest as traditional

brokerage firms. This objectivity is only one important difference in our ratings.

Type of categories-

Evergreen:- These stocks are steady compound, churning out steady growth

rates year on year. They are typically significant players in their markets, with

sound strategies that will help them achieve and sustain market dominance in the

long run. They have strong brands, management credentials and a consistent track

record of achieving super normal shareholder returns. We expect stocks in this

category to compound at between 18-20% per annum for the next five to ten

years.

Apple Green :- These are stocks that have the potential to be steady compound

and are attempting to move upwards, to turn Evergreen. They rank a shade below

the Evergreen companies, only because their potential in the five to ten years' time

is still not very clear, although they might grow at rates faster than that of the

Evergreen stocks in the next year or two. They could grow at 25-30% per annum

over the next two to three years.

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Emerging Star:- These are typically young companies, often in niche

businesses, that have the potential to grow and dominant their niches. Even better,

they might turn out to be real giants, if their niches explode into full-blown

markets in their own rights. These stocks are potential ten-baggers but you need to

be patient.

Ugly Duckling :- These are companies that are trading below their fair value or

at values which are at a significant discount to that of their peer group, due to a

combination of circumstances. But things are now starting to happen in these

companies or in their markets that are likely to cause a re-evaluation of their

prospects. These stocks could double in two to three years' time.

Vulture's Pick :- These are companies with valuable assets or brands that have

been trashed to ridiculously low prices. Buy a Vulture's Pick and wait for a

predator who finds its assets undervalued to come along. This could be a long wait

but the returns could be startlingly high.

Cannonball:- These are companies with valuable assets or brands that have been

trashed to ridiculously low prices. Buy a Vulture's Pick and wait for a predator

who finds its assets undervalued to come along. This could be a long wait but the

returns could be startlingly high.

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Chapter-4

Comparison between Different

Competitors

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The major players in online trading -

• ShareKhan.com

• 5paisa.com

• KotakStreet.com

• IndiaBulls.com

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• ICICIDirect.com

• HDFCsec.com

Company Background-

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• Share khan is the retail broking arm of SSKI Securities Pvt Ltd. SSKI owns 56% in

share khan; balance ownership is HSBC, First Carlyle, and Intel Pacific

• In to broking since 82 years

• Focused on providing equity solutions to every segment

• Largest ground network of 4800+ Branded Share shops in 600+ Cities

Online Account Types-

•Classic Account / Applet: Investor in equities

•Speed Trade: Trader in equities & derivatives

Pricing for Retail Customers-

1. Speed Trade-

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•Account Opening: Rs 1000 (Refundable against brokerage in Month + 1)

•Demat 1st Yr: Incl in Account Opening

•Initial Margin: NIL

•Min Margin Retainable: NIL

• Brokerage: Trading 0.10% each side + All Taxes

Delivery 0.50% each side + All Taxes

(Negotiable based on volume)

• Account Access Charges : Monthly Rs 500, adjustable qtrly against brokerage of Rs 9000/- for qtr

No access charges for gold customers (Above 1 lac brokerage p.a)

2. Classic A/C- Account opening: 750 (lifetime)

Demat 1st year: free a/c opening

Initial margin: NIL

Minimum margin: NIL

Brokerage:

Trading 0.10% each side + All Taxes

Delivery 0.50% each side + All Taxes

(Negotiable based on volume )

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Company Background-

India infoline was founded in 1995 and was positioned as a research firm

In 2000 e-broking was started under the brand name of 5 paisa.com.

Apart from offering online trading in stock market the company offers

Mutual funds online.

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It also acts as a distributor of various financial services i.e GOI securities,

Company Fixed Deposits, Insurance.

Limited ground network, present in 20 Cities

Online Account Types-

•Investor Terminal: Investors / Students

•Trader Terminal: Day Traders / HNI’s

PRICING FOR RETAIL CLIENTS-

1. Investor Terminal

•Account Opening: Rs 500

•Demat 1st Yr: Rs 250

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•Initial Margin : Rs 2500(Compulsory)

•Min Margin Retainable: Rs 1000

•Brokerage:

Trading 0.10% each side + ST

Delivery 0.50% each side + ST

PRICING FOR HNI CLIENTS-

2. Trader Terminal-


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•Demat 1st Yr: Rs 250

•Initial Margin: Rs 5000(Compulsory)


•Brokerage:



(Negotiable to 0.05% each side & 0.25%)

• Account Access Charges

Monthly Rs 800, adjustable against Brokerage

Yearly Rs 8000, adjustable against brokerage

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5 Paisa.com

Brokerage :



( Negotiable to 0.05% each side & 0.25%)

Brokerage : Trading 0.10% each side + STDelivery 0.50% each side + ST

Min Margin Retainable : Rs 1000

Min Margin Retainable : Rs 1000

Initial Margin : Rs 5000(Compulsory)

Initial Margin : Rs 2500(Compulsory)

Demat 1st Yr : Rs 250 Demat 1st Yr : Rs 250

Account Opening : Rs 500Account Opening : Rs 500

Trader TerminalInvestor Terminal

Types of accounts

Deal Clinchers v/s 5 Paisa

• Company Background

Not having a very positive image, relatively new in the broking arena, limited

network

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• Downtime

Recent past 5 paisa Trader Terminal (T.T) is experiencing high frequency

downtime between 3 – 3:30 p.m due to server load (as their T.T is feature heavy

compared to Speetrade charting)

• Manual Accounting

The 5 paisa accounting system is manual; online fund transfer

through bank is not credited instantly.

Limit is provided EOD for shares sold from DP, or call

Similarly limit released for shares sold under BTST is manual

Delay in receiving pay-out of clear funds from trading to Bank

Account.

• Min Account Balance

Concept of Min Rs 1,000 to be maintained in form of cash / securities to keep

account active. This can be withdrawn only on closure of account.

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Sharekhan v/s 5 Paisa.com

Specify while buying whether intraday or delivery

No need to specify whether intraday or delivery

No guidance RM facility (relationship mgt)

No research report Research reports

Trading 0.10%

Delivery 0.50%Low brokerage .1%-.5%

.05%-.25%

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Company Background

Kotakstreet is the retail arm of kotak securities. Kotak Securities

Limited is a joint venture between Kotak Mahindra Bank and

Goldman Sachs

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Online Account Types

•Twin Advantage / Green Channel: 2 DP’s, Limit against shares

•Free Way: Flat Rs 999 Cover Charge p.m, 0.03% per transaction

•High Trader: 6 Times Exposure Cash & Derivatives, Auto sq off 2:55

•Cash Expressway: Spot payment, additional 0.5% charges

For Kotak Fast Lane / Keat Lite / Keat Desktop are trading interfaces.

Keat Desktop with advanced tools comes at a charge of Rs 500 p.m,

Non-refundable

PRICING OF KOTAK


•Demat: Rs 22.5 p.m

•Initial Margin: Rs 5000(Compulsory)


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•Brokerage Slab wise: Higher the volume, lower the brokerage. Even older

customers (on 0.25% & 0.40%) have been moved to the slab wise structure wef

1/4/2004

Slab structure of Kotak

Delivery Vol p m Brokerage *

< 1 lakhs 0.65%

1 lakhs - 5 lakhs 0.60% Square Vol off p m

< 10 lakhs 0.10% Both Sides

10lakhs - 25 lakhs 0.08% Both Sides

25lakhs – 2 Cr 0.06% Both Sides

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2 Cr - 5 Cr 0.05% Both Sides

> 5 Cr 0.04% Both Sides

Brokerage is inclusive of All Taxes

** Min Brokerage of Rs 0.01 per share

Derivatives Vol off p m Brokerage

< 2 Cr 0.07% Both Sides

2 Cr - 5.5 Cr 0.05% Both Sides

5.5 Cr - 10 Cr 0.04% Both Sides

> 10 Cr 0.03% Both Sides


5 lakhs -10 lakhs 0.50%



60 lakhs – 2 Cr 0.25%

>2 Cr 0.20%

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DP Charges Extra


Min Brokerage of Rs 0.05 per share

Deal Clinchers v/s Kotakstreet

• Rigid Account Opening Terms

No Flexibility of A/c opening charges (Rs 500) + Compulsory margin Rs 5000/-

Account opening free with Rs 10,000 Margin OR competitor Contract Note.

• No Customization of commercial Terms

No Flexibility in Leverage – Dependent on Type of Account ( 4 to 6 times only)

No flexibility in Brokerage, driven by slab structure

• Many Other Charges

Rs 22.5 p.m towards DP AMC charges

DP incoming charges extra, 0.02%

Rs 1,000 as retainable Margin to keep account active

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Rs 25 per call after 20 calls for the month

• Restricted Access to Terminal Like product

KEAT Desktop restricted distribution on payment of Rs 500, Non refundable

KOTAK Securities

Spot payment, additional 0.5% charges

6 Times Exposure Cash & Derivatives, Auto sq off 2:55

Flat Rs 999 Cover Charge p.m, 0.03% per transaction

2 DP’s, Limit against shares

Cash Expressway

High Trader Free Way Twin Advantage /

Green Channel

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Sharekhan v/s Kotak securities

Slab wise brokerage No slab wise brokerage

More brokerage = 10 ps – 50 ps

10-50, 05-25

Minimum balance of 5000 to be maintained

No minimum balance to be maintained

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Company Background

India Bulls is a retail financial services company present in 70 locations

Covering 62 cities. It offers a full range of financial services and

Products ranging from Equities to Insurance. 450 + Relationship

Managers who act as personal financial advisors

Online Account Type

•Signature Account: Plain Vanilla Account with focus on Equity Analysis. The

equity analysis is a paid service even for A/c holders

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http://www.indiabulls.com/indiabullshomepage.asp

•Power India bulls: Account with sophisticated trading tools, low commissions

and priority access to R.M

Pricing of IB Accounts

Signature Account


•Demat: Rs 200 if POA is signed, No AMC for this DP


•Brokerage: Negotiable

Power India Bulls


•Demat: Rs 200 if POA is signed, No AMC for this DP

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•Brokerage: Negotiable

PAID Research

SCHEME FACILITY

WebBased-1-Month-500: View & Print on website

WebBased-1-Year-6000 View & Print on website

PrintReport-1-Month-750: View & Print on website + 10

Reports Delivered

PrintReport-1-Year-9000: View & Print on website + 10 Reports Delivered

Deal Clinchers v/s India Bulls

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•POA for Clients DMAT

•Paid Research Services

Access to an research even for an IB trading account holder is charged a min of Rs

500 a month

•Margin Funding hoax

The interest on funding starts on leveraged delivery trades from T+1 day itself

@21% p.a, on a daily basis

•The role of Relationship Manager

Each RM is looked upon as a revenue generator and he gets a % on business

generated from client. This can lead to over leveraged (Interest) & high

frequency(Brokerage) trading, which may not be in the best interest of the client.

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Brokerage : Negotiable Brokerage : Negotiable

Initial Margin : NIL Initial Margin : NIL

Demat: Rs 200 if POA is signed, No AMC for this DP

Demat: Rs 200 if POA is signed, No AMC for this DP

Account Opening : Rs 750 Account Opening : Rs 250

Power Indiabulls Signature Account

Types of accounts

INDIA BULLS

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No Online IPO facility Online IPO only with share khan

No NSE + BSE live terminal facility side by side

NSE + BSE live terminal facility side by side

Hidden costs No hidden costs

No magazine Monthly Magazine

No research reports Daily research reports

Rs. 18 per transaction No transaction charges

Pool level concept Direct transfer (t+2)

SHAREKHAN v/s INDIA BULLS

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Company Background

ICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is an

Affiliate of ICICI Bank Limited and the Website is owned by ICICI Bank

Limited

Account Types

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•ICICI Direct e-invest Account: Plain Vanilla Account with focus on 3 in 1

advantages. Differentiated in services within the account

1.Cash on spot

2.MarginPlus

Premium Trading interface of ICICIDirect Link is given to DBC partners and HNI’s


•Schemes: For short periods Rs 750 is refundable against brokerage

Generated in a qtr. These schemes are introduced 3-4 times a year.

•Demat: NIL, 1st year charges included in Account Opening Plus a facility to

open additional 4 DP’s without 1st yr AMC

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•Initial Margin: Nil

•Brokerage: All brokerage is inclusive of stamp duty and exclusive of other taxes.

Delivery Vol per qtr Brokerage *

< 10 lakhs 0.75%

10 lakhs - 25 lakhs 0.70%


50 lakhs – 1 Cr 0.45%

1 Cr – 2 Cr 0.35%

2 Cr – 5 Cr 0.30%

> 5 Cr 0.25%

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Deal Clinchers v/s ICICIDirect

•Poor online Interface

Slow website interface with no real-time quotes creates a dissatisfaction among

high frequency traders

•Margin trading restriction

The margin trading system is available up to 2:45 p.m, with outstanding net

positions under margin segment automatically squared off at any time between

2:45 – 3:30 p.m. Thus no control of square off price.

•Morning Trades Issue

Being one of the websites with largest no of after hour orders which are pushed

1st thing in the morning, creates a choking of orders to the exchange, causes

delay of confirmations for new order placed during the early morning trades

•Restriction of BTST

The sale of shares purchased is restricted to T+1 day and is not permitted on T+2

Day.

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•No leverage for Delivery trades

Delivery is restricted to the total money allocated into the trading account.

•No flexibility on leverage on Intra-day trades

The leverage of 4 times is available for intraday trades.

•Restriction of Bank Account

The choice of bank is restricted to ICICI Bank.

•Higher Brokerage rates with slabs

The delivery brokerage is pegged at 0.75% and trading at 0.10% each side, this

makes is very unviable for customers dealing in large volumes. Although

progressively the delivery and trading brokerage reduce as volumes go up.

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Sharekhan v/s ICICI Direct.com

Specify while buying whether intraday or delivery

No need to specify whether intraday or delivery

No live terminal provided Live terminal provided

No guidance RM facility (relationship mgt)

No research report Research reports

High brokerage .1%-.75% Low brokerage .1%-.5%.05%-.25%

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HDFC Securities

• Promoted by the HDFC Bank, HDFC and Chase Capital Capital Partners and their associates.

• Pioneers in setting up Dial-a-share services with the largest team of Tele-brokers

Introduction

Online Account Type

HDFC Online Trading A/c: Plain Vanilla Account with focus on 3 in 1

advantage

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Pricing of HDFC Account


•Demat: NIL, 1st year charges included in Account Opening

•Initial Margin: Rs 5000/- for non HDFC Bank customers (AQB)

•Brokerage:

Trading 0.15%* each side + ST

Delivery 0.50%** each side + ST

* Rs 25 Min Brokerage per transaction

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* Rs 8 Min Brokerage per transaction

Deal Clinchers v/s HDFC Securities

•Poor online Interface

Apart from having no product to cater to Day-Traders, the hdfcsec.com website is

plagued with downtime. The same is currently being revamped.

•Lack of focus on Broking

The core business of HDFC is Housing Finance and that of HDFC Bank is banking.

Broking as a business is a small part of the portfolio of financial services and

hence the commitment to resources is limited.

•No Leverage

No leverage is available to clients even for Intra-Day trades, effectively all clients

are on cash and carry system.

•No flexibility in commercial terms

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The delivery brokerage is pegged at 0.5% and trading at 0.15% each side, this

makes it unviable for customers dealing in large volumes.

No live terminalLive terminal provided

No research reportResearch Report

NOTE:- Due to legal allegation on HDFC the new Demat accounts has been banned.

SHAREKHAN v/s HDFC Securities

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REVIEW OF LITERATURE

According to SEBI, Professional Rating of market intermediaries, as a

concept, is a matter of debate and discussions. The need for rating is

felt not only from the point of view of greater disclosure requirements

for investor’s interests, considering the important role such

intermediaries play, being an interface between investors and

exchanges but also from the point of view of measuring the adequacy

of systems and controls to meet internal as well as external compliance

requirements.

So that need for Intermediaries Rating services (Brokers), In view of the

developments that are taking place in the capital markets, the need to

constantly upgrade and improve systems and procedures in operation

as well as skill sets has gained considerable importance. Besides

compliance with regulatory requirements both in letter and spirit has

assumed significance so as to mitigate risk and ensure adequate

protection of investors’ interest.

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And Rating objectives / benefits are rated entity would be in a position

to brand its image and capitalize the same for generating more

business. In a nutshell, the product may accrue significant benefits to

all stakeholders including the investors, stock brokers themselves, the

regulator and others who will benefit from the transparency and the

consequential focus on efficiency.

According to SEBI and Intermediaries Regulation and Supervision

Department, different factors are consider for rating process

Organization structure, Policy on Investors interest, Risk Management

Policy and System, Organization process and procedures, Management

policy on compliance, Financials, History/Background, Firm’s

positioning.

According to Michal Parness, Founder

Investors don’t Make Money in the Stock Market. One reason the

institutions make so much money is that they are trading. They make

money every time you buy or sell. They make money whether you

win or lose. That means that when you’re investing, you’re basically

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just sitting there. You’re not going anywhere. You’re not making

money as an investor.

Trading the Trend: The Only Way to Make Money in the Market

If you don’t know this already, “Trend Trading” means trading trends

based on human emotions. Not lagging indicators. Not complex

statistical analysis and not Ph.D. level mathematical equations. With

trend trading, you look for market movement. That could mean stocks

that are going to move up or down during the course of a day

(intraday). You’ll play the gaps up and down, often several days a week.

The “Trend trading” means being aware and taking advantage of

trends like the run-ups that happen around earning sessions. These are

trends that have worked time and time again in the market. They

consistently yield results.

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Chapter 4

RESEARCH METHODOLOGY

Objective Of Research

Each research study has its own specific purpose. It is like to discover

to Question through the application of scientific procedure. But the

main aim of our research to find out the truth that is hidden and which

has not been discovered as yet. Our research study has two

objectives:-

PRIMARY OBJECTIVE: -How Sharekhan Ltd is best services providers as

a stock broker in the Tri-city region.

SECONDARY OBJECTIVE: -

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1. To know about the awareness towards stock brokers and share

market.

2. To study about the competitive position of Sharekhan Ltd in

Competitive Market.

3. To study about the effectiveness & efficiency of Sharekhan Ltd in

relation to its competitors

4. To study about whether people are satisfied with Sharekhan

Services & Management System or not

5. To study about the difficulties faced by persons while Trading in

Sharekhan.

6. To study about the need of improvement in existing Trading system.

TYPES OF RESEARCH

On the basis of theoretical study a research has many types. All of

these are distributed on the nature of research. Some of these are like

1. Descriptive and Analytical

2. Qualitative and Quantitative

3. Conceptual and empirical

4. Applied and fundamental

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5. One time research

Our research is based on Descriptive, Qualitative and Quantitative

research.

Descriptive Research:- Descriptive research includes surveys and fact

finding enquires of different kinds. The major purpose of descriptive

research is description of the state of affairs as it exists at present.

Researcher has no control over the variables of this type of research.

Qualitative Research:- In our research we need comparison between

different stock brokers. So this based on all qualitative data. In short,

Qualitative research is especially important in the behavioral sciences

where the aim is to discover the underline motives of human behavior.

Through such research we can analyses various factors which motivate

to people to behave in a particular manner or which make people like

or dislike a particular thing.

Quantitative research:- Quantitative research is based on the

measurement of quantity or amount. It is applicable to phenomena

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that can be expressed in terms of quantity. So we can use it in our

research for collection of all the numerical data.

SAMPLE DESIGN

“A sample design is a definite plan for obtaining a sample from a given

population. It refers to the technique or the procedure the researcher

would adopt in selecting item for the sample”

Generally Sample designs are two types

1. PROBABILITY RESEARCH DESIGN

2. NON PROBABILITY RESEARCH DESIGN

We used the probability research design.

SAMPLING UNITS

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Sampling unit may be a geographical one, such as state, district, village

etc. The researcher will have to decide one or more of such units that

he has to select for his study.

In my research study Chandigarh as a sampling unit.

SIZE OF SAMPLE

“This refers to the number of items to be selected from the universe to

constitute a sample”

In our research sample size is 100.

But we also study the 5 stock broker companies related to security &

commodity market like India-infoline, ICICI direct, HDFC securities,

Karvy consultant ltd. for the appropriate collection of the information.

SOURES OF DATA COLLECTION

While deciding about the method of data collection to be used for the

study the researcher should keep to types of data.

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1. Primary

2. Secondary Data.

We use in our research primary data, as well as secondary data.

Primary means collected a fresh, and the first time data and secondary

means which are already available like annual report, magazines etc.

Survey Method: - Survey refers to the method of securing information

concerning phenomena under study from all or selected number of

respondents of the concerned area. In a survey the investigator

examines those phenomena which exist in the universe independent of

his action. We used the Scheduling Method.

Scheduling: - In this method the enumerators along with schedules,

go to respondents, put to them the questions from the Performa in

the order the questions are listed and recorded the replies in the

space meant for the same in the Performa.

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Chapter 5

COMPARATIVE ANALYSIS

After the whole study, we find out the following results:

Results on the Basis of charges

There are the two type of the transaction:-

1. Intra-day based

2. Delivery based

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All the figures are in paisa/100 rupees.

Comment:- According to the survey HDFC securities charge maximum

brokerage as compare to others whereas India Infoline Ltd. charge only

0.20 paisa on maximum investment.

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Results On the basis of Account opening charges

HDFC securities ltd:- Account opening charges w.e.f. April 2005 are as follows:- Rs.749, if the customer has an existing relationship with HDFC

Sharekhan ltd:- There is no ACCOUNT OPENING CHARGES but require

margin money of Rs 5000 for trading purposes.

ICICI direct:- A one-time charge of Rs. 750 at the time of account

opening will be charged. You may later upgrade your Invest account to

an ICICI direct.com share trading account when you desire to trade in

equity.

India Infoline:- There is a nominal charge of Rs. 500 only towards

stamp duty, legal and processing fees for opening the account. This

includes the registration and account opening charges. Bank and

Depository Participant (DP) account opening charges, if applicable, are

payable separately.

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KARVY consultants ltd:- Account Opening Charges Are 452 But now

SEBI banned on opening of new demat account of Karvy.

Indiabulls:- Account opening charges are Rs. 900. There is no AMC and

no margin money is required.

Comment:- India Bulls charge maximum account opening charges but

there are no such charges in Sharekhan pvt. Ltd.

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Results on the basis of customer preferences

1. According to survey 70 % peoples are satisfied with Sharekhan Ltd

because of their RM’s facility and power of Sharekhan Ltd software.

2. According to survey, Sharekhan Ltd open new branches for

individually handle to their customer, but in ICICI direct, HDFC security

there is no separate offices for this .So people prefer Sharekhan Ltd.

Results On The Basis Of Facilities

Basis of difference

Sharekhan Ltd.

Karvy India Infoline

ICICI direct

Indiabulls HDFC

Share trading

Yes Yes Yes Yes Yes Yes

Commodity trading

Yes Yes Yes Yes Yes Yes

d-mat opening rights

Yes No Yes Yes Yes No

Karvy and HDFC securities are not providing complete range of trading

facilities.

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Chapter 6

FINDINGS & ANALYSIS

Q.1 what are your investment plan ?

Explanation:- according to our analysis there are more quantity of people who have invested in mutual fund as comparing to the other investment plan. 31% people have invested in mutual fund and 18% have invested in gold , 31% have invested in fixed deposit, 11% have invested in real estate, 6% have invested in equities, and 1% people have invested in our all investment plans.

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Q.2. Have you invested money in any company ?

Explanation:- according to are analysis 90% have invested their money in the company .and there are only 10 percent people who have not invested . this indicates that there are more growing quantity of investor and people more are engaged in investing their money in the share market.

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Q.3- In which company you have invested ?

Explanation:- this analysis shows that there are more investor of sharekhan as compare to other companies. Which indicates that people are more conscious about investing their money in sharekhan ltd. And the result is that sharekhan provides better services as comparing to other companies.

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Q.3- what percent of income you invest ?

Explanation:- people have invested more in less than 40% of their salary in share market . And there are 76% people who have instead in less than 40% of the salary.

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Q.3- when do you want to refund your maoney ?

Explanation:- when we talk about refund of the money people who want to refund their money within 5 year are more as comparing to other year. There are 46% people who want to refund within 5 year, 38% people want to refund after 10 year, 9% after 15 year and 5% after 20 year and there are 2 % people who want to refund in other year.

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Q.5 why do you invest ?

Explanation:- In our analysis we find that people are more conscious in securing their family . the more important purpose of investment is family security. There are 74% people have selected family security in their purpose of investment, 11% have selected education, 5% pension plan, 4% children marriage, 1 percent have selected all motive of their investment.

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Q.6- which kind of service do you like the most ?

Explanation:- In our analysis people are more conscious in doing online trading as comparing to offline trading. 86% people want to do online trading , 11% people want to do offline trading, 3% people love to doing both kind of service.

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Q.7- On which company trust more ?

Explanation:- in this part our analysis shows that people have trust on sharekhan ltd. More than other companies. 41% people have trust on sharekhan which is more than other companies.

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FINDINGS

According to the survey most of the customers of “Sharekhan Ltd” says

that it is pocket friendly.

Coming to faith 70% say Sharekhan Ltd is better than others stock

brokers due to customers satisfaction.

Lack of promotional activities undertaken by Sharekhan securities Ltd.

in Chandigarh Region.

Main purposes of investments are returns & liquidity.

Investors take risk as well as returns into their mind while making the

investment.

Businessmen are more interested in the stock market than the others.

Commodity market is less preferred by the investors.

People want to invest their money in the security market but they

haven’t the proper knowledge.

People are not aware of hedging in stock market.

People pay more emphasis on brokerage than service provided by

brokerage houses.

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SUGGESTIONS

Commitment should be equalized for every person.

Provide the facility of free demonstrations for all.

Improvement in the opening of De-mat & contract notice

procedure is required.

There should be a limited number of clients under the relationship

manger. So that he can handle new as well as old customer

properly.

Some promotional activities are required for the awareness of the

customer.

People at young age should be encouraged to invest in stock

market.

Seminars should be held for providing information to prospective

and present customers.

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LIMITATION

Size of the research may not be substantial.

There was lack of time on the part of respondents.

The survey was carried through questionnaire and the questions

were based on perception.

There may be biasness in information by market participant.

Complete data was not available due to company privacy and

secrecy.

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CONCLUSION

On the basis of the study it is found that Sharekhan Ltd is better

services provider than the other stockbrokers because of their timely

research and personalized advice on what stocks to buy and sell.

Sharekhan Ltd. provide the facility of Trade tiger as well as relationship

manager facility for encouragement and protect the interest of the

investors. It also provides the information through the internet and

mobile alerts that what IPO’s are coming in the market and it also

provides its research on the future prospect of the IPO.

Study also concludes that people are not much aware of commodity

market and while it’s going to be biggest market in India.

The company should also organize seminars and similar activities to

enhance the knowledge of prospective and existing customers, so that

they feel more comfortable while investing in the stock market.

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APPENDIX

QUESTIONNAIRE

Name - Age- (a)-20-25 (b)-25-30 (c)-30-40 (d)40-above

Gender - (a) Male [ ] (b) Female [ ] Address-_________________________________

Profession - (a) service [ ] (b) business [ ] (c) job [ ] (d) house wife [ ]

Income- annual a) 1 lack b) 1-2 lack c) 3-4 lack d) 4-5 lack e) 5 lack and above ==================================================================================

1-What are your investment plan ? a- Mutual fund b - Gold

c- fixed deposit c- Real Estate

2-Have you invested money in any company?a- Yes b- No

3- In which company you have invested?a- Sharekhan b- Indiabulls

c-- ICICI direct d- Others...........

4-What percentage of Income you invest ?a- 50% b- 55%

c-- 40% d- 60%

5-Why do you invest ?a- Education b- Family security

c-- Pension plan d- Marriage

6- When do you want to refund your money ?a- After 5 years b- After 10 years

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c-- After 15 years d- After 20 years

7-Does the the companies profile matter for the investment decisions ?a- Yes b- No

8-Have you ever heard about online trading service?a- Yes b- No

9- Which kind of trading service do you like?a- Online b- offline

10- Which company’s trading service do you like the most?a- Sharekhan b- Indiabulls

c-- 5paisa.com d- Others...............

11- Which company provides better transparency in service?a- Sharekhan b- Indiabulls

c-- ICICI d- Others...................

12- Which company provides you better information for investing decision?a- Sharekhan b- Indiabulls

c-- ICICI direct d- Others............

13- On which company trust more?a- Sharekhan b- Indiabulls

c-- ICICI direct d- Others..............

Thank you signature_____________

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BIBLIOGRAPHY

Books:

RESEARCH METHODOLOG

Magazines :

VALUELINE (SHAREKHAN MONTHLY RESEARCH MAGAZINE)

CAPITAL MARKET (5PASISA.COM), NEW DELHI.

THE FINAPOILS (YOUR PERSONAL FINANCE ADVISOR FROM KARVY).

Internet:

http://WWW.MONEYCONTROL.COM

http://WWW.CAPITALINE.COM

http://WWW.SHAREKHAN LTD.COM

http://WWW.INDIAINFOLINE.COM

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http://WWW.INDIAINFOLINE.COM/

http://WWW.INDIABULLS.COM/

http://WWW.CAPITALINE.COM/

http://WWW.MONEYCONTROL.COM/

http://WWW.ICICIDIRECT.COM

http://WWW.HDFCSECURITY.COM

http://WWW.KARVY.COM

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http://WWW.HDFCSECURITY.COM/

http://WWW.ICICIDIRECT.COM/

My project

Economy & Finance

instock market

analysis stock broker

passive portfolio strategy

passive strategy

commodity market

market index

aspects ofthe stock

stock exchangeintroduction