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Project Report On

Nov 16, 2014

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PROJECT REPORT On

ANALYSIS OF CONSUMER BEHAVIOR TOWARDS SHARE TRADING AND SALES PROMOTION OF INDIABULLS SECURITIES LTD

In the partial fulfillment of the two year full time PGDBM (Equivalent to MBA)

Project Guide Faculty Guide Mr. Vijay Babbar Rashmi Sundryal Divisional Sales Head NDIM Indianbulls Securities Ltd. New Delhi Miss

New Delhi

Submitted by:

Uttam SethRoll No: 68 PGDBM (2004-06)

New Delhi Institute of Management60-61 Tughlakabad Institutional Area \ New Delhi-110062

ACKNOWLEDGEMENTSI would like to express my sincere thanks to Indiabulls Securities Ltd., Delhi for giving me the opportunity to carry out the Summer Internship Program in their organization. The whole period spent with the organization has been of immense learning

experience about the Indian Stock Market. Preparing a project of such a kind is not an easy task in itself and I am sincerely thankful to all those people who help me lot, in preparing and completing this project. I am grateful to Indiabulls Securities Ltd. who has given me this opportunity to carry out the project Analysis of Consumer Behavior Towards Share Trading and Sales Promotion of Indiabulls Securities Ltd. A study on investors perception their behavior about equities. I sincerely thank to Mr. Vijay Babbar (Divisional Sales Head, Indiabulls Securities Ltd., Delhi) for providing me this valuable learning opportunity. I would also like to thank Ms. Rashmi Sundryal Faculty Guide, NDIM- Delhi for her valuable guidance and insight amidst her busy schedule. Finally I would like to thank Mr. Vineet Chandani (Relationship Manager) my project supervisor without his help and guidance the completion of this project would have become difficult task.

INDEX OBJECTIVE HISTORY OF STOCK EXCHANGE COMPANY PROFILE a) Introduction b) Philosophy c) History and other corporate matters overview SHARE TRADING ORGANIZATION CHART PRODUCTS AND SERVICES INDIABULLS IN NEWS 2005 RESEARCH METHODOLOGY FINDINGS AND ANALYSIS RECOMMENDATIONS BIOBLIOGRAPHY

EXECUTIVE SUMMARYInvesting in equities in a market like India is speculative and involves risk that may be greater than other types of investment strategies. Before investing an Investor should be careful enough about him investment decision to avoid erosion of wealth. As seen in the recent times the volatility of market is more detrimental to the retail investors as it seems to be lucrative for speculative gains of short duration of time. Hence an investor has to evaluate his

options carefully for a prudent investment, keeping long-term horizon in mind. The report has tried to bring out the parameters those are of paramount importance to general public dealing in an equity trading on day-to day and delivery base trading. The working methodology has been discussed i.e. the data collection methods, sampling methods and the survey questionnaire methods. Thee

questionnaire prepared is designed so as to cover a wide range of customer touch points The report given a view about the investors perception that what thy think while making investments in shares. A sample of 100 people was selected randomly and survey was done as per the parameters of the questionnaire. The results of

every parameter have been included in this report and shown

graphically (Pie Charts, bar graphs etc.) A complete structure of the research design has been included. Apart from above discussed points the brief history of Indiabulls Securities Ltd, its business diversification and a brief introduction about the concept of share trading.

OBJECTIVE

To study investors behavior towards different attributes such as risk, return, liquidity etc. of investment in Equities. To study the issues and challenges that investors face while making investment in share market. To study the preferences and perceptions of investors regarding various financial products from the stable of Indiabulls Securities Ltd. so that the firm can benefit from the findings of the report in launching any new investment product in future. To study the consumers perception in respect of investment in shares Trading. To study about Risk Management with the help of equities.

HISTORY OF STOCK EXCHANGE

The only stock exchanges operating in the 19th century were those of Bombay set up in 1875 and Ahemadabad set up in 1894. These were organized as voluntary non-profit making organization of brokers to regulate and protect their interests. Before the control on securities trading became a central subject under the constitution in 1950, it was a state subject and the Bombay securities contract (CONTROL) Act of 1952 used to regulate trading in securities. Under this Act, the Bombay stock exchanges in 1927 and Ahemadabad in 1937. During the war boom, a number of stock exchanges were organized in Bombay, Ahemadabad and other centers, but they were not recognized. Soon after it became a central subject, central legislation was proposed and a committee headed by A.D. Gorwala went into the bill for securities regulation. On the basis of committees recommendations and public discussions the securities contracts (regulations) Act became law in 1956.

Definition of Stock ExchangeStock exchange means anybody or individuals whether

incorporated or not, constituted for the purpose of assisting, regulation or controlling the business of buying, selling or dealing in securities. It is an association of member brokers for the purpose of self

regulation and protecting the internets of its members. It can operate only if it is recognized by the Govt. under the securities contract (regulation) Act, 1956 the recognition is granted under section 3 of Act by the Central Govt. ministry of finance.

ByelawsBeside the above act, the securities contract (regulation) rules were also made in 1975 to regulate certain matter of trading on Stock Exchange. These are also byelaws of the exchanges, which are concerned with following subjects. Opening/Closing of the Stock Exchange, timing of trading,

regulation of blank transfer, regulation of Badla or carryover business, control of statement, and other activities of stock exchange, fixation of margins, fixation market price or making price, regulation of intraday (jobbing), regulation of broker trading, brokerage charges, trading rules on exchanges, attribution and settlement of disputes, settlement and clearing of the trading etc.

Regulation of stock exchangeThe securities contract (regulation) is the basis of the stock exchange in India. No exchange can operate legally without the Govt. permission or recognition. Stock exchanges are given

monopoly in certain areas under section 19 of the above Act to ensure that the control and regulation are facilitated. Recognition can be granted to a stock exchange provided certain condition are satisfied and the necessary information is supplied to the

government. Recognition can also be withdrawn, if necessary. Where there are no stock exchanges, the government can license some of the brokers to perform the function of stock exchange in its absence.

SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI)

SEBI was setup as an autonomous regulatory authority by the Government of India in 1988 to perform the interest of investors in the securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto. It is empowered by two Acts namely the SEBI act, 1992 and the securities contract (regulation) Act 1956 to perform the function of protecting investors right and regulating the capital market.

Bombay Stock ExchangeThe stock exchange, Mumbai, popularly known as BSE was established in 1875 as The Native share and stock broker association, as a voluntary non-profit making association. It has an evolved over the year into its present status as the premiere stock exchange in the country. It may be noted that the stock exchanges the oldest one in the Asia, even older than the Tokyo Stock Exchange, which was founded in 1878. The Exchange, while providing an effective and transparent market for trading in securities, uphold the interest of the investors and ensure redressed of their grievances, whether against the

companies or its own member brokers. It also strives to educate and enlighten the investors by making available necessary

informative inputs and conducting investor education programmes. A governing board comprising of 9 elected directors, 2 SEBI nominees, 7 public representatives and an executive director is the apex body, which decides the policies and regulates the affairs of the exchanges. The executive director as the chief executive officer is responsible for the day today administration of the exchange. The average

daily turnover of the exchange during the year 2000-01 (AprilMarch) was Rs. 3984.19 crores and average number of daily trades 5.69 lakhs. However the average daily turn over of the exchange during the year 2001-02 has declined to Rs. 1244.10 crores and number of average daily trades during the period to 5.17 lakhs. The average daily turn over of the exchange during the year 200203 had declined and number of average daily trades during the period is also decreased. The Ban on all deferral products like BLESS AND ALBM in the Indian capital markets by SEBI with effects from July 2, 2001, abolition of account period settlements, in all scripts traded on the exchanges with effect from Dec 31, 2001, etc., have adversely impacted the liquidity and consequently there is a considerable decline in the daily turn over at the exchange. The average daily turn over of the exchange present scenario is 110363 (laces) and number of average daily trades 1057 (laces).

BSE IndicesIn order to enable the market participants analysis