Comparative Study of IndiaBulls Securities Ltd with other Brokerage companies Submitted to: KURUKSHETRA UNIVERSITY, KURUKSHETRA In the Partial Fulfillment of the Requirement For the degree of Master of Business Administration (session 2010-2012) SUBMITTED BY: JAGJEET KAUR MBA Final year
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Comparative Study of IndiaBulls Securities Ltd with other Brokerage companies
Submitted to:
KURUKSHETRA UNIVERSITY, KURUKSHETRA In the Partial Fulfillment of the Requirement
For the degree of Master of Business Administration(session 2010-2012)
SUBMITTED BY:
JAGJEET KAUR MBA Final year
(Approved by AICTE & Affiliated to Kurukshetra University, Kurukshetra, Yamunanagar-135001)
DECLARATION
I Jagjeet Kaur, student of MBA (Final) of Guru Gobind Singh Institute of Technology and Management Studies here by declare that the project report entitled as “Comparative Study of Indiabulls with other Brokerage Companies”, for the partial fulfillment of the degree of Master of Business Administration submitted to Kurukshetra University, Kurukshetra is the original work of mine and the data provided in the study to the best of my knowledge.
This study has not been submitted to any other institution or university for award of any other degree.
Jagjeet kaur
ACKNOWLEDGEMENT
I express my sincere thanks to Mr. ASHOK PAHWA My supervisor & the
management of INDIABULLS SEC. LTD. for giving me an opportunity to
do the Summer Internship from their esteemed organization.
I am personally grateful to Dr. Mohinder Singh (Director General) to
allow me to under go to training. I give my sincere thanks to Mrs. Amit
Joshi (Assistant Professor,) for her guidance and suggestions while
selecting the topic for project till the final completion of the project.
I am also thankful to the other members of each Section of the Finance
Department for their guidance in the various issues of the “Comparative
Study of Indiabulls with other Brokerage Companies” and helping me to
understand the policies and procedures adopted for the smooth running of
the Finance Department of a company.
At last I would like to thank all the members of Finance
section for being so co-operative, helpful and approachable all the time for
sorting out my queries and problems.
Jagjeet kaur
ACKNOWLEDGEMENTS
The limited vocabulary will not fail me to express my loyal and vulnerable thanks and gratitude to Mr. Ashok Pahwa(Branch Manager) moral support an help during the course of study.
I emphatically express the regards and gratitude towards my speculative and dignified guide Mr. Puran for his expert invaluable and tireless guidance; constant encouragement; Painstaking and constructive criticism to accomplish such laborious and exhaustive work timely and perfectly.
I avail the opportunity to thanks Mr.Pankaj Jain; who helped to ease my burden of works and extended heir help without any hesitation during my study. His blessings and inspiration were the guidance force through my academic career.
Mere words won’t be able to express my endearment to all my amicable; Mamta & Jitendra ; whose love, care, warmth and patience never seems to have end. There are emotions nothing else, which I submit to them.
All the words in lexicon futile and meaningless if I fail to express my sense of regard to my parents for their scarifies, blessings and prayers; everlasting love and pain and belief in me.I solely claim all the responsibility for any shortcoming and limitation in this work.
Jagjeet kaur
PREFACE
The most motivating aspect associated with pursing a courses in management or business studies is the dynamism associated with it Dynamism of adding a new perspective to one ,s personality and vision by accumulating wider knowledge , developing analytical skill not only by traditional ways of teaching and learning but by observing “thong at works”. The project gives a considerable exposure to students and provides them with an opportunity to see the practical aspect of corporate world.
The project is an opportunity to see the application part of what we study or learn in
classroom. Management is that function of and enterprise. Which concern it self with direction, and control of the various actives to attain business objective .It is the science and art of preparing, organizing and directing human effort to control the force and utilize the materials of nature for the benefit of men .As a matter of fact, the management and the manager mixes some art to tries to shorten the gap of ignorance. It provides a chain of solution to critical problem of a manager.
I have been given by final project on the topic marketing strategies used by
INDIABULLS in Yamuna Nagar . The technology that give a person the power to invest their money any time any where.
INDEX
TOPICS PAGE NO.
Executive summary…………………………………….. 7-9
Objective…………………………………………………10
Research Methodology………………………………… 11-13
Limitations …………………………………………… 14
Company Profile …………………………………….. 15-17
Introduction To Security Market…………………… 18-25
Introduction To Share Trading Pattern……………… 26-31
Internet Based Trading………………………………. 32-35
Introduction To India bulls…………………………… 36-45
Business Strategies………………………………………46-48
Main brokerage houses of India……………………… 49-56
Comparative Study ………………………………… 57-63
SWOT Analysis………………………………………… 64-68
Data Interpretations & Analysis …………………….. 69-85
Findings …………………………………………………86
Recommendations……………………………………… 87-88
Conclusion……………………………………………… 89
Appendix ……………………………………………… 90-93
Bibliography…………………………………………… 94-95
EXECUTIVE SUMMARY
I undertook the project at Indiabulls during my summer internship period in June 2006. The following project starts with an idea regarding the stock market and the brief history of Indiabulls. The study helps us to analyse the mind of the investors & their expected charges regarding Brokerage, Return, Annual maintenance charges & also to know the attitude and preference of the prospective investors regarding capital market.The project contains the comparison chart of Indiabulls Securities Ltd. with Kotak Securities Ltd., Religare Securities & Sherkhan Ltd. The comparison is followed by the survey and its analysis and at the end the recommendations that could help to know what are the services and charges should be provided by any Brokerage houses so that investors can easily invest their money without any interference.
The report is divided into various sections:
1. The objective of project:
The main objective of working on this project is to compare the IndiaBulls with other leading brokerage houses and highlighting the SWOT Analysis of Indiabulls. For this we have compared various facilities of IndiaBulls with other competitive firms.
2. Methodology:
The method adopted to carry on this report was based on both primary and secondary sources. Initially we have collected data through primary source in the form of filling of questionnaire from public and personally talking with existing customers who are trading in stock market. Secondly information collected from internet sites, books, journals etc.
3. Introduction of Company:
This part describes the company profile. This part recognizes the achievements and rewards the company has achieved, it also gives little insights into what company offers to the Consumers. This section also describes the kind of technology used.
4. About Functional areas of IndiaBulls Securities Ltd.
Since the project leads to comparative analysis of IndiaBulls with other Brokerage houses, this section gives the details of what all areas IndiaBulls offers to the consumer.
5. SWOT Analysis of INDIABULLS
This section gives the detail of what are the strength ,weekness ,opportunity & threats of IndiaBulls .
6. Major players of stock market
This section gives the brief introduction of the different companies like Religare , Kotak Mahindera, Sharekhan which are having a share in stock market trading and are competitors of IndiaBulls in the market.
7. Comparative chart of various facilities provided by brokerage houses
This section gives the detail of the different competitors and different services provided by them. Then we have compared there services with our services.
8. Findings of the comparison done on the basis of questionnaire filled by clients
This section tells you about the findings which I got to know during my training in a premium trading company.
COMPANY PROFILE
Indiabulls is India's leading retail financial services company with over 300 locations in more than 110 cities. While our size and strong balance sheet allow us to provide you with varied products and services at very attractive prices, our over 4400 Client Relationship Managers are dedicated to servingYour unique needs.
Indiabulls is lead by a highly regarded management team that has invested crores of rupees into a world class Infrastructure that provides our clients with real-time service & 24/7 access to all information and products. Our flagship Indiabulls Professional Network offers real-time prices, detailed data and news, intelligent analytics, and electronic trading capabilities, right at your finger-tips. This powerful technology is complemented by our knowledgeable and customer focused Relationship Managers.
Innovation is the key to success- Proved by Indiabulls
Sameer Gehlaut, Rajiv Rattan and Saurabh Mittal, friends got together to start the
company. For some years they worked in the oil field services industry. The idea to start
their own outfit on a technology platform was born in 1999 when Gagan Banga joined
the three IIT-Delhi engineers who promoted the company. These first generation
entrepreneurs knew very well that nothing small works. They didn’t want to build a small
business which would get overnight success and shut down; rather they wanted to build a
sustainable profitable business
This idea was to target the huge untapped retail segment of the market. The first task of course was to work out a sound business model, which was sustainable and profitable. They soon realized the implicit strength of their model.In 1999-2000, there was dotcom boom, there were a lot of dotcoms coming into being, lot of venture capitalists were funding the dotcoms business but none of the dotcom had any revenue model so the scope of a dotcom business was immense. Indiabulls came into existence to take advantage of this. The 3 promoters got together and took over a defunct
brokerage company Orbis Securities- the whole idea was to get a brokerage license and a membership of the stock exchange. This brokerage firm was restarted and it started making miniscule amount of revenue for the company – it basically catered to the HNIs - High Networth Individuals. Immediately after this the venture capitalists were contacted. In this there were several models, which were discussed including involving a strategic investor. Initially the company was promoted as a dotcom company. The promoters chose the famous Charles Schwab model, which perfectly addressed their need to have the business on a technology platform. The idea was that since it worked in other parts of the world, it would work here also. The company thus had clear-cut revenue model. It was very clear in the minds of the promoters that revenue was very important. Profitability is the key to the entire thing. The emphasis on profitability was there from day one. Indiabulls has been profitable for every financial year beginning 2000-01 the only financial year it has not been profitable has been 1999-2000. The company focused on the retail segment and used Internet to exploit the massive scope in the retail segment. The company also enjoyed the first mover advantage, as at that time there was no company catering to the needs of retail segment through Internet.Sameer Gehlaut, took over as chairman and CEO, and now looks after sales, marketing and external relationships, while Rajiv Rattan, in the role of CFO and president, manages operations, finance and back office.
GROWTH STORY
Indiabulls has emerged as one of the leading and fastest growing financial company in less than two year, since its initial public offering in September 2004. It has a market capitalization of around USD 800 million and consolidated net worth of around USD 500 million.
2000-03 Indiabulls Financial Services Ltd. established India’s one of the first trading platforms with the development of an in house team.
2003-04 Indiabulls expands its service offerings to include Equity, F&O, Wholesale Debt, Mutual fund, IPO distribution and Equity Research.
2004-05
Indiabulls ventured into Insurance distribution and commodities trading.
Company focused on brand building and franchise model.2005-06
Indiabulls came out with its initial public offer (IPO) in September
2004. Indiabulls started its consumer finance business. Indiabulls entered the Indian Real Estate market and became the first company to bring FDI in Indian Real Estate.
Indiabulls won bids for landmark properties in Mumbai.
2006-07
Indiabulls has acquired over 115 acres of land in Sonepat for residential home site development.
Merrill Lynch and Goldman sac, one of the renowned investment banks in the world have increased their shareholding in Indiabulls. Indiabulls is a market leader in securities brokerage industry, With around 31% share in online trading, Farallon Capital and its affiliates, the world’s largest hedge fund committed Rs. 2000 million for Indiabulls subsidiaries Viz. Indiabulls Credit Services Ltd. and Indiabulls Housing Finance Ltd.
Steel Tycoon Mr. LN Mittal promoted LNM India Internet venture Ltd. acquired 8.2% stake in Indiabulls Credit Services Ltd.
2007-08
Indiabulls entered in a 50/50 joint venture with DLF, Kenneth Builders & Developers (KBD). KBD has acquired 35.8 acres of land from Delhi Development Authority through a competitive bidding
process for Rs 450 crore to develop residential apartments. Indiabulls Financial Services Ltd. is included in the prestigious
Morgan Stanley Capital International Index (MSCI).
Farallon Capital has agreed to invest Rs. 6,440 million in Indiabulls Financial Services Ltd.
OBJECTIVES OF STUDY
Primary Objective
Main objective is to make the comparative evaluation of performance of
Indiabulls with other brokerage companies.
Secondary objectives
To gain information about the online trading practices in India with special
reference to services provided by Indiabulls.
To understand the Financial Market with due Focus on Online Trading in Equity
Market
To understand the features and services that influences the investor to invest.
To know the competitive brokerage houses which are market players of India?
To understand the attitude and preference of the prospective investors regarding
capital market.
RESEARCH METHODOLOGY
Achieving accuracy in my research require in depth study regarding the subject. As the prime objective of the project is to find out the marketing strategies which are used by INDIABULLS for attaching the people specially for the client in the market
Research ProblemThe first step conducting a research is to carefully define the research problem. The present study has been undertaken to analyze the various Indiabulls provide us and know the client opinion and preference towards this trend that which service provide is most liked by the client.Research design is the blue print to the study any problem. It is a plan for collection analysis and interpretation of data in a manner that relevant to the research purpose with economy in procedure
The following are the different type of research design .
1. Research design in the case of exploratory research studies
2. Research design in the case of descriptive research studies
3. Research design in the case of diagnostic research studies
4. Research design in the case of Experiment research studies
Universe or survey population :-Sample will be selected from the client of Indiabulls in the Yamuna Nagar through the questionnaire.Sample DesignThe amount of research work is limited by shortage of time and resources .Due to these limitation it is not possible together complete information .So technique of sampling is applied .The sample are so selected that they are representative of the entire population.Sampling unit : ClientType of research : AnalyticalSample size : 100 RespondentsSampling Media : Questionnaire Sampling Technique : Convenient Sampling
Source of Data:-The data is based on via which the most recent and accurate piece of first hand information could be collected. Secondary data has been used to support primary data wherever needed.
Primary data collected using the following techniques:-
1. Questionnaire Method2. Direct Interview Method3. Observation Method
The main tool was the questionnaire method. Further direct method,Where a face to face formal interview was taken. Lastly observation method has been continuous with the questionnaire method. As one continuously observes the surrounding environment he works in.
Procedure of Research Methodology:-
1. To conduct this research by the help of questionnaire the target population was the investor.
2. Target geographic was Yamuna Nagar. 3. Sample size of 100 was taken.
4. To these 100 people a questionnaire was given, the questionnaire was the combination of both open ended and close ended.
5. Some dealers were also interviewed.
6. Finally the collected data and information was analyzed.
LIMITATIONS
The various Limitations are:--
Lack of awareness of Stock market: -- Since the area is not known before it takes lot of time in convincing people to start investing in shares primarily in secondary market.
Most people comfortable with traditional brokers: -- As people are doing trading from there respective brokers, they are quite comfortable to trade via phone.
Some respondents were unwilling to talk: -- Some respondents either do not have time or willing to respond as they are quite annoyed with the phone call.
Inaccurate Leads :-- Sometimes leads are provided which had error in it which varies from only 5 digit phone number to wrong phone number
Misleading concepts: -- Some people think that shares are too risky and just another name of gamble but they don’t know it’s not at all that risky for long inve
INTRODUCTION TO SECURITY MARKET
SECURITIES
The definition of ‘Securities’ as per the Securities Contracts Regulation Act (SCRA),
1956, includes instruments such as shares, bonds, scrips, stocks or other marketable
securities of similar nature in or of any incorporate company or body corporate,
government securities, derivatives of securities, units of collective investment scheme,
interest and rights in securities, security receipt or any other instruments so declared by
the Central Government.
The functions of Securities Market
Securities Markets is a place where buyers and sellers of securities can enter into
transactions to purchase and sell shares, bonds, debentures etc.
Further, it performs an important role of enabling corporate, entrepreneur to raise
resources for their companies and business ventures through public issues.
Transfer of resources from those having idle resources (investors) to others who
have a need for them (corporate) is most efficiently achieved through the
securities market.
Securities markets provide channels for reallocation of savings to investments and
entrepreneurship. Savings are linked to investments by a variety of intermediaries,
through a range of financial products, called ‘Securities’.
The securities one can invest
Shares
Government Securities
Derivative products
Units of Mutual Funds etc. are some of the securities investors in the securities
market can invest in
SEBI AND ITS ROLE
The Securities and Exchange Board of India (SEBI) is the regulatory authority in India
established under Section 3 of SEBI Act, 1992. SEBI Act, 1992 provides for
establishment of Securities and Exchange Board of India (SEBI) with statutory powers
for:
(a) Protecting the interests of investors in securities
(b) Promoting the development of the securities market
(c) Regulating the securities market.
Its regulatory jurisdiction extends over corporate in the issuance of capital and transfer of
securities, in addition to all intermediaries and persons associated with securities market.
SEBI has been obligated to perform the aforesaid functions by such measures as it thinks
fit. In particular, it has powers for:
Regulating the business in stock exchanges and any other securities markets.
Registering and regulating the working of stock brokers, sub–brokers etc
Promoting and regulating self-regulatory organizations.
Prohibiting fraudulent and unfair trade practices.
Calling for information from, undertaking inspection, conducting inquiries and
audits of the stock exchanges, intermediaries, self-regulatory organizations,
mutual funds and other persons associated with the securities market.
The participants in the Securities Market
The securities market essentially has three categories of participants, namely,
The issuers of securities
Investors in securities
The intermediaries, such as merchant bankers, brokers etc.
While the corporate and government raise resources from the securities market to meet
their obligations, it is households that invest their savings in the securities market.
The segments of Securities Market
The securities market has two interdependent segments: the primary (new issues) market
and the secondary market. The primary market provides the channel for sale of new
securities while the secondary market deals in securities previously issued. The National
Stock Exchange of India Ltd. (NSE), set up in the year 1993, is today the largest stock
exchange in India and a preferred exchange for trading in equity, debt and derivatives
instruments by investors.
NSE has set up a sophisticated electronic trading, clearing and settlement platform
and its infrastructure serves as a role model for the securities industry.
The standards set by NSE in terms of market practices; products and technology
have become industry benchmarks and are being replicated by many other market
participants
It provides a screen-based automated trading system with a high degree of
transparency and equal access to investors irrespective of geographical location.
The high level of information dissemination through the on-line system has
helped in integrating retail investors across the nation.
The exchange has a network in more than 350 cities and its trading members are
connected to the central servers of the exchange in Mumbai through a
sophisticated telecommunication network comprising of over 2500 VSATs. NSE has around 850 trading members and provides trading in over 1000 equity
shares and 2500 debt securities. Besides this, NSE provides trading in various
derivative products such as index futures, index options, stock futures, stock
options and interest rate futures.
At NSE, it has always been our endeavor to continuously upgrade the skills and
proficiency of the Indian investor. Since, financially literate investors are the backbone of
the securities market.
CAPITAL MARKET
The capital market provides financing to meet the denomination, liquidity, maturity, risk
(with respect to credit, interest rate, and market), and other characteristics desired by
those who have a surplus of funds and those who have a deficit of funds. The capital
market as a whole consists of overnight to long-term funding. The short to medium end
of the maturity spectrum is called the money market proper, and the long end is identified
as the capital market. The financial instruments range from money market instruments to
thirty-year or longer bonds in credit markets, equity instruments, insurance instruments,
foreign-exchange instruments, hybrid instruments, and derivative instruments. There has
been an explosion of innovation in the creation and development of instruments in the
money and capital markets since about 1960 in both debt and equity instruments.
Some of the important (by volume) money market instruments are Treasury bills, federal
agency securities, federal funds, negotiable certificates of deposits, commercial paper,
bankers' acceptances, repurchase agreements, euro currency deposits, euro currency
loans, futures instruments and options instruments. Similarly, some of the key capital
market instruments are U.S. securities; U.S. agency securities; corporate bonds; state and
local government bonds; mortgage instruments; financial guarantees; securitized
instruments; broker-dealer loans; foreign, international, and global bonds; and Eurobonds
PRIMARY MARKET
The primary is that part of the capital markets that deals with the issuance of new
securities. Companies, governments or public sector institutions can obtain funding
through the sale of a new stock or bond issue. This is typically done through a syndicate
of securities dealers. The process of selling new issues to investors is called underwriting.
In the case of a new stock issue, this sale is an initial public offering (IPO). Dealers earn a
commission that is built into the price of the security offering, though it can be found in
the prospectus. Features of Primary Market are:-
This is the market for new long term capital. The primary market is the market
where the securities are sold for the first time. Therefore it is also called New
clientAssigned to every client. Assigned to every client
Account Opening Charges
Account opening charges is the initial charges that is charged by each brokerage house
for opening its Demat and trading A/C And these charges varies from one brokerage
house to another. As far as opening charges are concerned:
Kotak = Rs.750 (De-mat & Trading A/C)
Sharekhan = Rs.1200 (De-mat & Trading A/C)
Indiabull=Rs 750 (de mat &trading a/c)
Brokerage
Brokerage percentage is that amount charged by brokers for their intermediary services
provided by brokerage house. Brokerage can be divided into:
Brokerage charges on delivery
Brokerage charges on intraday
Brokerage charged on delivery
Means the commission charged by brokers for forward or future trading. Future contract
is legal commitment between a buyer and seller or broker in which they agree to
exchange something at a specific price at the end of designated period of time.
India Bulls = Brokerage charged on delivery .5%
Kotak = Brokerage charges on delivery .5%
Sherkhan = Brokerage charges on delivery .2%
Brokerage charged on Intra day
On intra day means the commission charged by broker for spot trading. Spot trading
under which the investor buy or sell the share on the same day at the prevailing price.
Where as India Bulls brokerage charges are quite nominal, to get competitive advantage
that is easily available by small investors.
Indiabulls = Brokerage charged on intra day .05%
Kotak = Brokerage charges on intra day .15%
Sherkhan = Brokerage charges on intra day .05%
Exposure on cash
Exposure on cash means financing facility provided by some reputed brokerage houses
i.e. Kotak, India Bulls. e.g. - suppose investor wants to invest Rs.1, 00,000 in cash and a
brokerage house provides 3 times exposure on cash, which means an investor can invest
up to Rs.3, 00,000.
Cash exposure can also be divided into- Intraday & delivery.
Indiabulls provides = 4 times (On Delivery)
10 times (On Intraday)
Kotak provides = 4 times (On Delivery)
4 times (On Intraday)
Sherkhan provides = NIL (On Delivery)
4 times (On Intraday)
Exposure on Security
Exposure on security is another persuasive facility provided by reputed brokerage houses
like Indiabulls. Under this facility, suppose an investor wants to trade 100 shares &
market value of which is Rs.100 each. Now trade total investment amount that he wants
to invest is Rs.1, 00,000. A brokerage house provides 3 times exposure on security, now
he can trade up to Rs.3, 00,000.
Indiabulls provides = 2 times (on delivery)
2 times (on intraday)
Kotak provides = NIL (on delivery)
NIL (on intraday)
Sherkhan provides = NIL (on delivery)
NIL (on intraday)
Annual Maintenance Charges (AMC)
AMC are the extra charges by all brokerage houses from their customers from their
services. These charges are charged on annual basis. For customers it’s an unnecessary
burden. But India bulls safe its value customers from these extra burden.
India Bulls charges = NIL
Kotak charges = Rs.260
Sherkhan charges = Rs.300
Trading with other Demat A/C
It means that if investor have Demat a/c in any brokerage house, he or she can trade in
securities with same Demat a/c & not required to open other Demat a/c in that brokerage
house from which he recently wants to invest E.g. - Investor having its Demat a/c in
ICICI & wants to invest through Indiabulls, he can trade with Indiabulls without opening
of Demat a/c in India bulls, the only thing is required on the part of customer is the
opening of trading a/c. This facility of other Demat is exclusively provided by Indiabulls.
Indiabulls = Possible
Kotak = Not Possible
Sherkhan = Not Possible
Banking Facility
Mostly all brokerage houses provide this facility for their customers for clearance &
settlement.
Indiabulls = Through All Private Banks
Kotak = Through Kotak/HDFC/CITI Bank
Sherkhan = Through IDBI/ CITI/ OBC/ UTI/ HDFC Bank
Off-line Trading
Generally offline trading is not allowed by any brokerage houses exclusively Indiabulls.
Because of the requirement of 24*7 basis connectivity with customers, Indiabulls provide
a wide range of connectivity through phone and messenger. Also provides door to door
services to its valuable customers.
Indiabulls = Through Phone & messenger
Kotak = Not Allowed
Sherkhan = Not Allowed
Relationship Manager
Indiabulls provides a relationship manager to every client to provide him investment tips
(which are provided everyday by their investment team/ expert) and follow decisions
while providing them, professional investment suggestions whereas in Kotak no
relationship manager facility to provided to their clients.
Kotak = Not Allowed
Indiabulls = Assigned to every client of Indiabulls
Sherkhan = Assigned to every client of Indiabulls
DATA INTERPRETATIONS AND ANALYSIS
Age Graph:
Age group Percentage of total traders 18-25 30%
25-45 55%
45-65 15%
% of people of different age working in share market.
30%
55%
15%18-2525-4545-65
As we can see from the above graph, people who are in the age group of 25-45yrs are the
maximum traders in share market. This segment is the one which gives maximum business to
share brokers. This segment constitutes the young executives and other office going people.
They are 55% of the total people who were interviewed. The next age group is the normal
traders about 30% in the age category of 18-25yrs. They are the students and some working
employee’s wants to be self dependent and playing for increasing their pocket money. And
the rest are in old age category of 45-65yrs who are working for securing their future and
wants to serve their family somewhat more according to their salary.
Data Analysis:The next step after every data collection is obviously data analysis. No data is perfect unless
it is analyzed because the overload of the information and the useless information also
consist in raw data. Without analyzing the data, research can affected adversely. So, reliable
result can only come after analyzing the data. Although the questionnaire is very much
according to information required. But the result is better if once analyze it also.
Q.1- Do you invest through Share Markets?Ans.
It is revealed from the table that 60% of respondents invest through Share Market. On the other hand 40% respondents do not invest through share market and are not interested in that.
People investing in share market. PercentageYes 60%No 40%
Q.2- Do you want to invest in the share market?Ans.
Most of the clients want to take benefits from investing in share market
through investing in the securities provided by different companies. So it
results that 70% of clients wants to invest and rest of 30% do not want to
invest in share market.
People want to invest in share market. PercentageYes 70%No 30%
Q.3- If not why?
Ans.Reasons for not investing Percentage
lack of knowledge 40%feel its risky 30%lack of time 20%
Don’t have extra money 10%
Table explains the reasons why few investors don’t want to invest in share market. 40%people don’t have enough knowledge of investing in shares, 30% feel it is risky for investing in shares, 20%people have no time for investing and 10%people says they have no extra money for investing.
Q.4- Do you know about the online trading?Ans.
The table investigates about the percentage of the respondents who are aware of the online trading facilities provided by different depository participants. It is explored through the study that 40% of the people are not aware about online trading but as we see the growing age of computers 60% people are trading through online terminals.
People having knowledge about online trading
Percentage
Yes 60%
No 40%
Q.5- From which brokerage house/ Depositary Participant you are investing in securities?Ans.
Company Name Percentage
Kotak 15%Indiabulls 40%
Religare 15%Sharekhan 30%
The table investigates about the percentage of the respondents who are aware about the brokerage house. As per described in the above graph maximum 40 % of people are trading through India bulls Sec. Ltd. because of the advantage of compliance policy adopted by the company& 30% are in favor of sherkhan 15 % in religare & 15 % in favor of kotak.
Q.6- How do you invest your money?Ans.
Kind of Investments Percentage
Mutual Funds 10%I. P. O. 35%
Equity 50%Others 5%
This table show that are aware of about the investment decision . they are having the knowledge of investing their money in best places10% people are invest the money in matual fund and 35% people are invest the money in ipo and 50% people are invest the money in equity and rest of these are invest the money in other.
Q.7- Do you have a Demat account?Ans.
As per discussed with people we come to find 65% of people are having Demat A/c & 40% are not having Demat A/c .so mostly people having the demat account and rest of these not having thew demat account.
People having Demat account. Percentage
Yes 65%
No 35%
Q.8- How much account opening charges your broker charge from its customers?Ans.
Charges Percentage
900 5%750 30%
500 20%Nil 45%
5% people are paying the 900 rs for account opening charges and 30% people are paying the rs 750 for account opening charges and 20% people are paying rs 500 for account opening charges and rest of these people are not paying the money for account opening .
Q.9- What percentage of brokerage your broker charges on intraday trading transactions?Ans.
Brokerage Of Intraday Percentage0.02-0.05 50%
0.05-0.07 30%
0.07-0.10 20%
As per graph is showing 50% of people are paying 0.02-0.05 paisa for intraday brokerage charges. And rest of the people are paying more for intraday.30% of people are paying 0.05-0.07 paisa for intraday brokerage charges.20% of people are paying 0.07-0.10 paisa for intraday brokerage charges.
Q.10-What are the annual maintenance charges you expect your broker charges from you? Ans.
Charges of A.M.C Percentage Nil 50%
200-300 30%
300-500 20%
As per discussed with clients we come to find 50% of clients are not paying any annual maintenance charges. But still rests are paying for maintenance as described in the above graph.20% client paying the annual maintenance charges
Q.11-Are you fully satisfied by the services rendered and charges charged by your broker?
Ans.People satisfied by their broker Percentage
Yes 60%
No 40%
According to clients 60% of people are satisfied with their brokers but rest of 40% having some issues with their brokers.mostly people are satisfied with their broker .
Q.12- Which type of problems you are facing with your existing broker?Ans.
Problems Facing by clients PercentageBrokerage 20%Servicing 30%
Recommendations 35%Others 15%
As we asked from the Clients mostly clients are having recommendation problems brokers are not giving the right tips, not assisting properly and lack of proper compliance. And rest are having problems like brokerage and services.
Q.13- Would you like to have a facility to trade with other demat account?Ans.
People trading with other demat account. Percentage
Yes 30%
No 70%
Maximum no of clients are not interested in trading with other Demat A/c because they want to keep their money in same a/c so that they can buy more stock in same time and same a/c and also they get extra limits from the trading company.
.14- Would you like to have a facility of net banking?Ans.
People like to have a facility of net banking. Percentage
Yes 50%
No 50%
As we see according to people 50% people like to have a facility of net banking. And about other 50% are not aware of net banking and also don’t have internet facilities.
Q.15- Would you like to have a facility of relationship manager?Ans.
People like to have a facility R.M. PercentageYes 80%
No 20%
According to the survey 80% of people like to have a facility R.M. and other are not interested because they want to trade themselves without any opinion.
Q.16- Are you satisfied with the services provided by Indiabulls?Ans.
Satisfaction level of clients Percentage
Fully Satisfied 20%Partial Satisfied 30%
Dissatisfied 35%Fully Dissatisfied 15%
This figure is all about the satisfaction level of the clients towards Indiabulls Sec. Ltd., as we see 20% of the total clients are fully satisfied with services of the company, 30% are partial satisfied and rest of the clients are not satisfied due to some reasons like brokerage and other services they are not getting in time.
FINDINGS
Indiabulls sec. ltd. Is well reputed co. in security market due to
transparency in his work? It achieves its goals within a very short
period of times.
Indiabulls sec. ltd. Suffers from cash problem because head office is
not providing them sufficient cash to run day to day operation
successfully
Indiabulls provides it both on line and off line services under one roof.
Organization is utilizing their all resources very efficiently which
leads to increase in profits
Debts of co. as compared to total funds is satisfactory.
Increase in net profit shows increase in efficiency of the co.
Earning per share has shown good response in upcoming years.
RECOMMENDATIONSWorking of Back Office: There should be a person solely responsible for checking the Registration Kit to
ensure that it is complete in all respects and there are no rejections.
The policies related to Trading and DP should be consistent and in congruence with
each other.
The time lag between giving in the kits for registration and opening the account
should be reduced to ensure speedy and efficient service.
Any change in the policies of company should be given at least one month notice
before implementing it.
After getting Leads attention should be made on following points:
1. The calls made should be more informative and assertive.
2. The RM should provide an in depth demonstration of the software and client should
be assisted regularly.
3. Provision of a manual for online clients for ease of operation.
4. Time lag between the complaints put and follow up should be reduced.
5. Database should be verified properly, so that repeated entries do not occur. This will
reduce inconvenience to the clients, who complained about multiple calls received.
Analysis of Client Interaction (Already existing clients)
Client interaction and after sales services are the most crucial aspects for any business.
We carried out a study to gauge the level of satisfaction of the clients with the services of
Indiabulls. This helped us in understanding why Indiabulls has become one of the most
trusted brands within a span of five years.
1. The Relationship Managers(RM) should be made responsible to ensure that the
clients are well catered, thus, reducing switching over of A lot of time lag is there
between the follow up and the change of RM, as a result, the calls could not leave a
positive impact on the clients, so contacted. Therefore, follow up should be done fast
without any time lag.
2. Many clients did not know about the change of RM. This leaves a bad impression on
the concerned client, damaging the reputation of the firm. So, heed is taken in this regard.
3. The customers, who were satisfied with the services, appreciated this kind of follow
up. Therefore, such follow-ups are done from time to time, to gain customer confidence.
4. Many clients are not given confirmation after the trade, so they should be given due
information about it.
5. Complete net knowledge should be given to clients so that they may not find any
difficulty in login of their A/C on the Indiabulls website
6. routing, thereby reducing loss of business to the firm.
7. IndiaBulls by its distinctive feature can efficiently provides 100% satisfaction to its
various categories of investors. IndiaBulls is the only Brokerage house that provides
various privileges over Other Securities Company. On the other hand IndiaBulls provides
24*7 basis connectivity to its investors through On line &Off line facility.
CONCLUSION
IndiaBulls by its distinctive feature can efficiently provide 100% satisfaction to its
various categories of investors. IndiaBulls is the only Brokerage house that provides
various privileges over other brokerage houses. It is the only one who provides a
satisfactory redeem to both category of investors by providing them –Low brokerage
Business TodayManagement Review Vol.14 No.4 by R.T.GuptaBusiness Standard Vol.16 No.8 by Standard Group of Co. India Today Vol.17 No.6 by Time Group of Co.
QUESTIONNAIREI JAGJEET KAUR under Roll no.429 student of MBA final year in
G.G.S.I.T.M.S.Yamunanagar, researching on my project on INDIABULLS Sec.
Ltd. I sure you that the information provide by you will be kept secret.
Name. . Age . Sex .
Occupation Income Contact No. .
Q.1 Do you invest in the share market?1) Yes ( )2) No ( )
Q.2 Do you want to invest in the share market? 1) Yes ( ) 2) No ( )
Q.3 If not why?1) Lack of knowledge ( )2) Feel its risky ( )3) Lack of time ( )4) Do not have money ( )
Q.4 Do you know about the on line trading?1) Yes ( )2) No ( )
Q.5 You are trading through which brokerage house?1) Kotak ( )2) Indiabulls ( )3) Sharekhan ( )4) Religare ( )
Q.6 How do you invest your money?1) Mutual funds ( )2) IPO ( )3) Equity ( )4) Others ( )
Q.7 Do you have demat & trading A/C?1) Yes ( )2) No ( )
Q.8 How much account opening charges you have paid to your broker?1) 900 ( )2) 750 ( )3) 700 ( )4) 500 ( )
Q.9 How much brokerage charged by your broker on intraday trading?1) .02 -0.5 ( )2) 0.5 -0.7 ( )3) 0.7 -.10 ( ) Q.10 What are the annual maintenance charges you expect from your broker?1) Nil ( )2) 200 -300 ( )3) 300 -500 ( )
Q.11 Are you fully satisfied by your broker?1) Yes ( )2) No ( )
Q.12 Which type of problem you are facing with your existing broker?1) Brokerage ( )2) Servicing ( )3) Recommendation ( )4) Others ( )
Q.13 Would you like to have a facility to trade with other demat A/C?1) Yes ( )2) No ( )
Q14 Would you like to have a facility of net banking? 1) Yes ( )2) No ( )
Q.15 Would you like to have a facility of relationship manager?1) Yes ( )2) No ( )
Q.16 Are you satisfied with the services provided by the indiabulls?1) Fully Satisfied ( )2) Partial Satisfied ( )3) Dissatisfied ( )
4) Fully Dissatisfied ( )
Q.17 Any suggestion regarding INDIABULLS.
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