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STUDY ON
Consumer Perception towards Equity Market and Business Expansion
Perspectives of Kotak
Securities ltd
submitted in partial
fulfillment of the requirement of IMBA under the curriculum
of
CENTRAL UNIVERSITY OF JHARKHAND
Under the supervision of:
Mr. Ajit Kumar
Sr.Manager, Broking East division
Kotak Securities Ltd.
By
Awadhoot Prakash Singh
Reg. No. CUJ/I/2010/IMBA/o6, Sem- VIII
Centre for Business Administratio
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DECLARATION FROM STUDENT
I hereby declare that the work incorporated in this report
entitled " Consumer Perception
towards Equity Market and Business Expansion Perspectives of
Kotak Securities ltd ".is the
outcome of original study undertaken by me under the guidance of
Mr. Ajit Kumar, Senior
Manager, Kotak Securities ltd, Ranchi.
I further declare that the matter in this report has not been
submitted by me as a whole or in
part at any other University or Institution for the award of any
Degree or Diploma.
Date- ------------------------------
Place- (Awadhoot Prakash Singh)
Integrated MBA
CUJ/I/2010/IMBA/06
Centre for Business Administration
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CERTIFICATE FROM COMPANY
This is to certify that the contents of this thesis entitled "
Consumer Perception towards
Equity Market and Business Expansion Perspectives of Kotak
Securities ltd ".by Awadhoot
Prakash Singh, submitted to Kotak Securities ltd for the Award
of Degree Integrated Master
of Business Administration (IMBA) is original research work
carried out by him under my
supervision.
This report has not been submitted either partly or fully to any
other University or Institute
for award of any degree or diploma to best of my knowledge.
Date- ------------------------------
Place- (Mr. Ajit Kumar)
Senior Manager
Kotak Securities ltd, Ranchi
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PREFACE
In this era of fast changing world, mere class room teaching is
not sufficient to attend
maturity and perfection for application of theory into practice.
The dynamic economy,
political and technological environment, in which we live
continually place demand on us
to change, improve and learn more about the changes happening
around us.
I am lucky that, I got an opportunity to do my summer internship
program in Kotak Securities
ltd, Ranchi. I have prepared my project report on the topic
Consumer Perception towards
Equity Market and Business Expansion Perspectives of Kotak
Securities ltd.
I have considered some published material on the particular
topic as well as about the
concern. This helps me in boosting up my confidence and
determination which will help me
to face the situation in coming years. This report is written
account of what I learnt and
experienced during my project. I wish, those going through it
will not only find it readable
but also get as useful Information. During this whole training I
got a lot of experience and
came to know that how it differs from those of theoretical
knowledge and the practically in
the real life.
In todays globalize world, where cutthroat competition is
prevailing in the market, theoretical
knowledge is not sufficient. Beside this one need to have
practical knowledge, which would
help an individual in his/her carrier activities and it is true
that Experience is best teacher.
Master of Business Administration is a course, which combines
both theory and its
applications as its contents of study in the field of
management. The main objective of this
report is to get the in depth knowledge regarding the Industry
and enhance students
analytical skill.
I have tried my level best to do justice with the project. And I
hope the project which was
conducted will help not only the Organization, but also me and
society too.
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ACKNOWLEDGEMENT
I express my deep and sincere thanks to my guide Ajit
Kumar(Senior Manager) and Raj
Kapoor Chowdhary(Sales Head) Kotak Securities ltd. Ranchi. who
helped me in selecting
this project. They provided me an opportunity to do this project
and gave their valuable time
and exemplary guidance during my project. Without their constant
encouragement it would
have been impossible to test my theoretical knowledge.
I would like to thank the Praneeta Kumari(Relationship Manager)
and all dealers Mr. Jitendra
Kumar, Mr. Triveni Gope and Amit Kumar Ghosh who took adequate
care & effort in
understanding the market situation. So that I could complete my
project smoothly and well in
stipulated time frame.
I also take this opportunity to express my deed gratitude to my
loving parents and friends
who are a constant source of motivation and for their never
ending support and
encouragement during this project.
I extend my gratitude to the entire staff members of Kotak
Securities ltd, Ranchi who directly
or indirectly enabled me to complete this project.
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Table of Content
Content page No.
1. Abstract 9
2. Executive summary 10
3. Introduction 11-26
3.1 group profile
3.2 Company Profile
3.3 Types of Account
3.4 Industrial Overview
3.5 History of Stock Exchange
3.6 Types of Stock Market
4. Literature Review 27
5. Objective 28
6. Research Methodology 29
7. Tasks 30-52
7.1 Task 1
7.2 Task 2
7.3 Task 3
8. Findings 53
9. Limitations 54
10. Conclusion 55
11. Bibliography 56
12. Appendix 57-58
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List of Tables
Table Title Page No. Table No.1 Consumers on the Basis of Sex
31
Table No.2 Consumers on the Basis of Age Group 32
Table No.3 Consumers on the Basis of Educational Level 33
Table No.4 Income Level 34
Table No.5 Bank Preference 35
Table No.6 Investment Level 36
Table No.7 Saving Motive 37
Table No.8 Investment Pattern 38
Table No.9 Awareness about Equity Market 39
Table No.10 Having Demat Account 40
Table No.11 Interest Level 41
Table No.12 Broking Firm Preference 42
Table No.13 Annual Investment 43
Table No.14 Source Preference 44
Table No.15 Reason for Investment 45
Table No.16 Reason for Share Purchase 46
Table No.17 Reason for Share Sale 47
Table No.18 Trend of Investment 48
Table No.19 Satisfaction Level 49
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List of Figures
Figure title Page no Figure No. 1 Consumers on the Basis of Sex
31
Figure No. 2 Consumers on the Basis of Age Group 32
Figure No. 3 Consumers on the Basis of Educational Level 33
Figure No. 4 Income Level 34
Figure No. 5 Bank Preference 35
Figure No. 6 Investment Level 36
Figure No. 7 Saving Motive 37
Figure No. 8 Investment Pattern 38
Figure No. 9 Awareness about Equity Market 39
Figure No. 10 Having Demat Account 40
Figure No. 11 Interest Level 41
Figure No. 12 Broking Firm Preference 42
Figure No. 13 Annual Investment 43
Figure No. 14 Source Preference 44
Figure No. 15 Reason for Investment 45
Figure No. 16 Reason for Share Purchase 46
Figure No. 17 Reason for Share Sale 47
Figure No. 18 Trend of Investment 48
Figure No. 19 Satisfaction Level 49
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1. Abstract
Equity market is a volatile and a multi-billion industry in
India. Traditionally known largely for its uncertainty it attracts
the people with risk taking ability. Along with the rish and
uncertainty it provides immense business opportunities.
Few years ago due to recession throughout the world the share
market also went through a tough phase but after that it has done
its recovery in a undisputed way. And now with the formation of
new, positive and business friendly government it is rising and has
touched its highest point.
As time passes it will gain more acceptances among people as
their first preference for investment motive. The current market
position is inviting people for investment with a good return
prospective.
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2. Executive Summary
I am analyzing the consumer perception towards equity market. My
analysis of project will
include the consumers thoughts and feelings about the investment
pattern in the share market.
Along with this I will also try to find out the business
perspectives for Kotak Securities ltd in
ranchi and the comparative analysis of different broking
firms.
Kotak Securities has been serving worldwide with its excellence
in services. It has so many
product and offerings for the customers in securities. Their aim
is to provide customers with safe
investment platform backed by the quality services. The sales
Manager has to know who are his
perspective and current customer as well as his competitors.
This would help in creating a strategy
for each customer segment.
There are few documents that get the attention of product
planners and marketers the way that
a competitive analysis does. A good competitive analysis is a
scouting report of the actual
market terrain that a company must navigate in order to be
successful. And there is no person better
equipped to write one than a market-savvy technical writer.
While Kotak Securities has developed a strong corporate culture
and firm set of business
principles starting from its existence, it is focusing regarding
its current performance, but is
dedicated to continuous improvement.
With entry of so many broking firms in the security market Kotak
Securities has to face a tough
competition to sustain its position in the market.apart from
this the illegal and unethical practices
has been exercising by the other firms has also created a
problem for the company. Then also
kotak Securities is fighting with its competitors on the basis
of valuable and quality services.
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3. Introduction
3.1 Kotak Mahindra Group
Kotak Mahindra is one of India's leading banking and financial
services organizations, offering a
wide range of financial services that encompass every sphere of
life. From commercial banking, to
stock broking, to mutual funds, to life insurance, to investment
banking, the group caters to the
diverse financial needs of individuals and corporate sector.
The Group has a net worth of over Rs. 12,900 crores and has a
distribution network of branches,
franchisees, representative offices and satellite offices across
cities and towns in India. It has offices
in London, New York, California, Dubai, Abu Dhabi, Bahrain,
Mauritius, & Singapore and is
servicing around 10 million customer accounts.
Kotak Group Products & Services:
Bank
Life Insurance
Mutual Fund
Car Finance
Securities
Institutional Equities
Investment Banking
Kotak Mahindra International
Kotak Private Equity
Kotak Realty Fund
3.2 company profile:
Kotak Secutities ltd was originally established in 1994, Kotak
Securities is a subsidiary of Kotak
Mahindra Bank, which services more than 9 lakh customer
accounts. The firm has a wide network
of more than 115 branches, franchisees representative offices,
and satellite offices across 367 cities
in India and offices in New York, London, Dubai, Mauritius and
Singapore.
We process more than 400000 trades a day which is much higher
than some of the renowned
international brokers.
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The company is a corporate member of both The Bombay Stock
Exchange (BSE) and The National
Stock Exchange of India (NSE). Our operations include stock
broking services for trading in stock
markets through branches & internet and distribution of
various financial products including
investments in IPOs, Mutual Funds and Currency Derivatives.
Currently, Kotak Securities is one of
the largest broking houses in India with substantial
geographical reach to Asia Pacific, Europe,
Middle East and America.
Kotak Securities Limited has Rs 373 crores of Assets Under
Management (AUM) as of 31st Mar,
2014.
Innovators
We have been the pioneers in providing many products and
services which have now become
industry standards for stock broking in India. Some of them
include:
Mobile stock trading application to keep track of your
investments even on the go
Facility of Margin Finance to the customers for online stock
trading
Investing in IPOs and Mutual Funds on the phone
SMS alerts before execution of depository transactions
AutoInvest - A systematic investing plan in Equities and Mutual
funds
Provision of margin against securities automatically against
shares in your Demat account
Research Expertise
We specialize in Fundamental and Technical analysis backed by a
team of highly trained and
qualified individuals.
Our full-fledged research division is involved in Macro Economic
studies, Sectorial research and
Company Specific Equity Research which publishes in-depth stock
market analysis. This is
combined with a strong and well networked sales force which
helps deliver current and up to date
market information and news.
We are also a depository participant with National Securities
Depository Limited (NSDL) and
Central Depository Services Limited (CDSL). By being a stock
broker and depositary participant,
we provide dual benefit in our services wherein the investors
can avail our stock broking services for
executing the transactions and the depository services for
settling them.
Our Portfolio Management Service comes as an answer to those who
would like to grow
exponentially on the crest of the stock market, with the backing
of an expert.
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Awards
Broker of the Year (India) : The Asian Banker's Financial
Markets Infrastructure
Achievement Awards, 2014
Overall best Equity Broking House by BSE IPF - D&B Equity
Broking Awards for the
year 2013
Depository Participant of the year by BSE IPF - D&B Equity
Broking Awards for the
year 2013
Top Performer in New Accounts Opened (Non-Bank Category) - NSDL
Star Performers
Award 2013
Fastest growing Equity Broking House by BSE IPF - D&B Equity
Broking Awards for
the year 2012
The Best Equity House in India by FinanceAsia for the year
2012
Best Broker in India by FinanceAsia for 2012, 2010 &
2009
UTI MF - CNBC TV18 Financial Advisor Awards - Best Performing
Equity Broker
(National) for the year 2009
Best Brokerage Firm in India by Asiamoney in 2009, 2008, 2007
& 2006
3.2.1 Why Invest:
One should start investing to:
Earn from idle resources
Generate specified amount money to achieve a goal in life
Make a provision for an uncertain future
Let's face it. You will not be able to work forever. No matter
how healthy you are, there will come a
time when you will not be able to work, due to health problems
or simply aging. What will you do
for an income when the time comes to retire? This is why
planning your long term investments
carefully is so important.
There are many reasons to invest. You can create wealth, beat
inflation, achieve financial goals like
buying a car or paying for college, and retirement. You can
invest in Share Market Equities, IPO's,
Mutual Funds, Insurance, PMS and other several asset
classes.
We see stock market investing from your perspective, and make
stock market recommendations
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based on actually listening to you and understanding your
needs.
3.2.2 When To Start Investing:
The basic principles of investing are:
Start Investing early
Invest regularly
Invest for the long-term
The need to be financially secure is inherent in all of us.
Whether you're a student studying to be a
professional or an established businessman hoping to grow beyond
your dreams, the future needs a
foundation that's strong and dependable.
The basis of a strong financial foundation is planning. For a
student, planning could mean putting
away as little as Rs. 1000 every month and to a senior executive
it could mean the security for a
comfortable retired life. Successful money management can help
you live life on your terms, without
any compromises.
3.2.3 Why Kotak Securities:
a. Right Investment Partner-
We see investing from your perspective, and make recommendations
based on your needs. One of
our important goals is to simplify investing for you; along with
this we also provide long term values
to our customers.
We have a million reasons for you to choose us. Listed below are
a few:
Stability: We are a subsidiary of Kotak Mahindra Bank and one of
the oldest and largest stock
broking firms in the Industry. We have been the first and only
NBFC to receive the license to be
converted into a bank.
Innovators in the Industry: We have been the first in providing
many products and services which
have now become industry standards.
First to provide Margin Financing to the customers
First to enable investing in IPOs and Mutual Funds on the
phone
Providing SMS alerts before execution of depository
transactions
Launching of Mobile application to track portfolio
AutoInvest - A systematic investing plan in Equities and Mutual
fund
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Provision of margin against securities automatically against
shares in your Demat account
Value: Whether you are a customer with a small or large wallet
size, you can expect us to bring
value to you in every form.
Quality Research
Quick trade execution
Low brokerages
Accounts that suit your investment profile
Risk Profiler
Superior Customer Service
Service: We believe in high standards of service and that's
precisely what we offer. It's an honour to
be awarded the most customer responsive company award in the
Financial Institution sector by
AVAYA Global Connect Award both in 2006 and 2007.
Robust Technology: We have developed our own proprietary trading
platform which is robust and
among the best in the industry. We have more than 150 technology
professionals constantly working
on upgrading and speeding up all our systems.
Centralized Risk Management System: Unlike many other players we
have a centralised risk
management system. This allows us to offer the same levels of
service to customers across all
locations.
Exceptional Research: Unlike most other competitors we have our
own in house research team. Our
in house research team is among the best in the industry and
they have years of experience in the
financial markets. They scan through the plethora of stocks and
find the scrips that have a high
potential of providing you good returns.
Our investors get research Technical, Fundamental, Derivatives,
Macro-economic and mutual fund
research.
Large Presence: We are present in 386 cities with 1,255 outlets
all over the country. Our employee
strength extends beyond 3,684.
b. Multiple Share Trading Platforms-
We understand your trading needs. If youre an Online Customer,
Kotak Securities offers multiple
mechanisms to place your trade. Be it a wi fi-zone or a cybercaf
or a 3G connection or GPRS
handset or a completely aloof from internet zone, youll always
have access to trade through Kotak
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Securities. We are one of the brokers to have the highest number
of trading platforms to serve your
trading needs.
c. Share Market Education-
When it comes to online trading, lack of certainty leads to
inaction. One needs to be completely
informed about the markets, online trading applications,
processes and basics of investing. Kotak
Securities has created several programs to help you learn
everything about the stock market
investing. This initiative has helped several customers learn
stock markets and online trading and
become successful traders.
Below are few of our programs and demos under the customer
education initiative:
Kotak Securities Academy: An online initiative that depicts our
relentless commitment to educate
on the basics of investing, with a collection on Equities,
Derivatives and Mutual Funds.
Smart Start: An inspiring storyboard for young investors to
understand the importance of saving
and investing for the future.
Webinars: As a customer of Kotak Securities, you'll be invited
to all our educative webinars from
time to time. You'll get to learn online trading methods with
Kotak Securities and tactics of stock
market investing.
Horizon: A fortnightly newsletter that educates you on various
asset-classes and updates you on the
markets.
Research Reports: Be informed of every investment you make by
referring to our various detailed
reports. You'll have an access to
Industry-level reports
Company specific reports
Mutual Fund recommendation reports
Currency derivatives reports
Derivative Toolkit
Technical Reports
What we
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3.2.4 What Kotak Securities offer:
Stock Market Instrument Types:
A capital market is a market for securities (debt or equity),
where business enterprises and
government can raise long-term funds. And capital market
instruments, also known as financial
instruments, are responsible for generating these funds, which
can be used by investors to make a
profit.
Kotak Securities provides a one stop platform where you can
trade in different types of instruments
in cash as well as derivative segment. These instruments are
available for trading on NSE and BSE
and can be classified as:
Equity
Derivatives: Futures & Options, Foreign Indices
Mutual Funds
Currency Derivatives
Fixed Deposits and Bonds
Initial Public Offering (IPO)
Gold Exchange Traded Fund (ETF)
Share Trading Platforms-
Every investor has own style of investing is comfortable with
different type of trading tools.
Understanding the investor need and available technologies Kotak
Securities creates and provides
multiple platforms that would enhance trading experience of
every investor. Below are the various
platforms that our customers can use as per their
convenience:
Value Added Trading Services-
Going above and beyond your basic need of of transactions in
equities, we offer you a plethora of
Value Added Services. When you choose any of Kotak Securities
Trading accounts, the combination
of our research,trading platforms and communication channels
enable us to deliver a higher value to
you.
Our specialised services like TradeSmart,Research on SMS and
E-mail subscription constantly gives
you stock ideas that you can benefit from. Our services ensure
that your end-to-end trading needs are
satisfied.
Below are the various Value Added Services we have for you:
http://www.kotaksecurities.com/whatweoffer/easyequity.htmlhttp://www.kotaksecurities.com/whatweoffer/Derivatives.htmlhttp://www.kotaksecurities.com/whatweoffer/easymutualfund.htmlhttp://www.kotaksecurities.com/whatweoffer/kotakCurrencyDerivatives.htmlhttp://www.kotaksecurities.com/whatweoffer/tax-saving-investments/fixed-deposit-bonds.htmlhttp://www.kotaksecurities.com/whatweoffer/easyipo.htmlhttp://www.kotaksecurities.com/whatweoffer/gold-etf-investment.htmlhttp://www.kotaksecurities.com/whatweoffer/trinityaccoun.htmlhttp://www.kotaksecurities.com/whatweoffer/trading-platforms.htmlhttp://www.kotaksecurities.com/research/
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AutoInvest
Super Multiple
Twin Advantage
BNST
Portfolio Tracker
SMS Alert Subscription
TradeSmart
Security Key
3.3 Types of account
AutoInvest - Start an SIP in Equities
Now you can do more with your trading account. AutoInvest is now
offered to you as a value
added service from Kotak Securities, through which you can do
Systematic Investment
Planning in Stocks. Through this product you can invest in
stocks of your choice at regular
intervals - daily, weekly, fortnightly or monthly. You can
choose your SIP type as either
amount-based or quantity based, where you can invest a fixed
amount or buy a fixed quantity of
shares respectively.
Kotak Gateway - Stock Trading Account
Are you new to trading? Do you want to feel the waters before
you swim? If Yes, this is an
ideal stock trading account for you. As an independent Investor,
you will have access to all the
research and trading facilities to execute your trades. You can
decide what to buy, when to buy
Kotak Pearl Account
Kotak Pearl account is a unique proposition that lets the woman
of today take control of her
investments. The Pearl Account is designed with the objective of
empowering women with the
benefits of stock market investing and keeping in mind her
interests.
Kotak Private Client Group
Are you in search of the best share trading and investing
services for your individual financial
needs? You are at the right place; we offer you nothing but the
best. Understanding your
individual investing needs we at Kotak Securities make sure you
get to enjoy premium and top
http://www.kotaksecurities.com/accountsection/Autoinvest.htmlhttp://www.kotaksecurities.com/whatweoffer/SuperMultiple.htmlhttp://www.kotaksecurities.com/whatweoffer/twinadvatages.htmlhttp://www.kotaksecurities.com/bnstg/bnstg.htmlhttp://www.kotaksecurities.com/whatweoffer/portfoliotracker.htmlhttp://www.kotaksecurities.com/whatweoffer/sms-stock-alerts.htmlhttp://www.kotaksecurities.com/stock-market-research/trade-smart.htmlhttp://www.kotaksecurities.com/whatweoffer/security-key.htmlhttp://www.kotaksecurities.com/home/http://www.kotaksecurities.com/home/
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of the line trading services only with Kotak Private Client
Group.
Trinity Account is a unique integrated account that helps you
enjoy the benefits of a Online Trading
Account, Bank Account, Demat Account on a single platform for
your securities transaction. This
account gives you a convenience of fund transfer and online
trading with our multiple logins.
Benefits of Trinity Account:
Single application to open three different account i.e. Bank
Account, Demat A/c & Online
Trading Account.
Demat account
A demat account is like a bank account for your securities or
investments. The only difference is that
while a bank account holds a depositor's money, the demat
account contains your stocks, debentures,
bonds, government securities (Gsecs), mutual fund units,
exchange traded fund (ETF) units etc. in an
electronic form.
The structure of the dematerialised system comprises a
depository, which is the entity that actually
holds your securities. This can be compared to a bank, which
holds your money. The depository has
dedicated agents called depository participants, more commonly
referred to as DPs. If you want to
use the services of a depository then you need to open an
account with a DP, which is similar to
opening an account with a bank branch. Kotak Securities is a DP
of National Securities Depository
Limited (NSDL) and you can approach us to open and mange a demat
account.
Once an account is opened you can use this to hold your various
investments. When you make an
investment such as buying some stocks, then the quantity of
stocks is directly credited to your demat
account. If you sell some stocks, then these will transferred
out of your demat account, which will
then show the balance remaining therein. Similarly, the demat
account can be used to deal in various
other securities so that the transactions are completed
electronically without your having to deal with
the physical documents and the related paperwork. At any time,
your demat account with us will
reflect the details of your existing holdings. So, all that you
need to do is just check your account
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from time to time to get all the individual details including
the quantity and value of each investment.
Kotak Securities' demat account is a secured and convenient way
to track your securities and
investments.
Benefits of NRI trading account:
1. You can do online delivery based trading through our NRI-
Trinity Account. This account
links your Banking, Demat andTrading account, thus providing you
a seamless platform to
trade efficiently and conveniently.
2. Avail top class research from our dedicated Research Team
that gives you valid, fact-based
and reliable research inputs on industry trends, sector news,
which company scrips to buy, sell
or hold and more. You also get detailed reports on Daily Morning
Briefs, Stock Ideas, Special
Reports (budgets, monsoon etc. and their impact on the stock
markets) and access to Kotak
Securities News Channel. These reports are comprehensive yet
simple and help you make
informed investment decisions on your own, while executing your
choices efficiently.
3. You can now avail 80% margin against your executed &
unbilled delivery marked trades.
4. You can buy IPO, MF and also have the facility to trade on
both - NSE and BSE.
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3.4 INDUSTRIAL OVERVIEW
FINANCIAL SERVICE
In general, all types of activities, which are of a financial
nature, could be brought under the
term 'financial services'. The term financial services' in a
broad, sense means "mobilizing and
allocating savings". Thus it includes all activities involved in
the transformation of savings
into investment.
Financial services can also be called 'financial inter
mediation'. Financial intermediation is a
process by which funds are mobilizing from a large number of
savers and make them
available to all those who are in need of it and particularly to
, corporate customers.
Thus, financial services sector is a key area and it is very
vital for industrial developments. A
well-developed financial services industry is absolutely
necessary to mobilize the savings and
to allocate them to various invest able channels and thereby to
promote industrial
development in a country.
Classification of Financial Services Industry
The financial intermediaries in India can be traditionally
classified into two:
1. Capital Market intermediaries: it consists of term lending
institutions and investing
institutions which mainly provide long term funds. On the other
hand,
2. Money market intermediaries: it consists commercial banks,
co-operative banks and
other agencies which supply only short term funds. Hence, the
term 'financial services
industry' includes all kinds of organizations which intermediate
.and facilitate financial
transactions of both individuals and corporate customers. Indian
financial markets, broadly
comprising of segments like asset management, banking,
insurance,
foreign direct investments (FDI) and foreign institutional
investors (FII), effectively promote
the savings of the economy by directing them towards suitable
investment options. The
Indian financial sector is well developed, competitive and
integrated to face all traumas (like
the recent financial turmoil).World Economic Forums latest
report Financial Development
Report 2012 has named India as the world's top-ranked country in
terms of life insurance
density. Life insurance density is the ratio of direct domestic
premiums for life insurance to
per capita gross domestic product (GDP) of a country. India has
been ranked 40th in terms of
overall financial development of a country, but is much ahead of
larger economies like the
US, UK, Japan and China for life insurance density.
Insurance Sector
Premium collection by general insurance companies increased by
24.7 per cent year-on-year (y-o-y)
in September 2012 at Rs 6, 059.02 crore (US$ 1.1 billion),
according to the data compiled by the
sector regulator Insurance Regulatory and Development Authority
(IRDA). The total premium stood
at Rs 34,001.09 crore (US$ 6.32 billion) for April-September
2012. In terms of premium collections
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22 | P a g e
for life insurance segment, private players collected Rs 7, 095
crore (US$ 1.32 billion) in April-
September 2012 period while state-owned Life Insurance Corp of
India (LIC) recorded a remarkable
24 per cent y-o-y growth in premium collections at Rs 15, 532.7
crore (US$ 2.88 billion) during the
period. LICs support helped the industry post a 15 per cent
y-o-y growth in premium collected in the
first half of 2012-13.
Banking Services
Key recent statistics pertaining to the Indian banking industry
are discussed below:
According to the Reserve Bank of India (RBI)s Quarterly
Statistics on Deposits and Credit
of Scheduled Commercial Banks, March 2012, Nationalised Banks
accounted for 53.0 per
cent of the aggregate deposits, while the State Bank of India
(SBI) and its Associates
accounted for 21.8 per cent. The share of New Private Sector
Banks, Old Private Sector
Banks, Foreign Banks, and Regional Rural Banks in aggregate
deposits was 13.0 per cent, 4.8
per cent, 4.4 per cent and 3.0 per cent, respectively.
Nationalised Banks accounted for the highest share of 52.0 per
cent in gross bank credit
followed by State Bank of India and its Associates (22.5 per
cent) and New Private Sector
Banks (13.5 per cent). Foreign Banks, Old Private Sector Banks
and Regional Rural Banks
had shares of around 4.8 per cent, 4.8 per cent and 2.4 per
cent, respectively.
Mutual Funds Industry in India
Indian mutual funds' average assets under management (AUM)
increased by 5.3 per cent or Rs 392
billion (US$ 7.39 billion) to Rs 7.87 trillion (US$ 146.31
billion) in the October-December 2012
quarter from Rs 7.47 trillion (US$ 139 billion) in the previous
quarter, as per the latest data released
by the Association of Mutual Funds in India (AMFI). The growth
in assets was majorly driven by
inflows into income and gilt funds.
Private Equity, Mergers & Acquisitions (M&A) in
India
Private Equity (PE) companies invested around US$ 8.85 billion
in 2012, according to
consultancy firm Price Waterhouse Coopers (PwC). Information
technology (IT) and
healthcare seemed to have witness the highest number of deals on
the PE canvas wherein
there were 162 deals worth US$ 3.25 billion in IT and healthcare
witnessed 48 deals worth
US$ 1.23 billion.
Similarly, the pace intensified on the merger and acquisition
(M&A) front. There were as
many as 268 deals (involving Indian entities) that amounted to
about US$ 36.3 billion in
2012; up 22.6 per cent over the 2011 tally, reported the global
deal tracking firm Merger
market.
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23 | P a g e
Foreign Institutional Investors in India
Investments into Indian shares through participatory notes
(PNotes) were recorded at US$
32.4 billion in November 2012, according to the latest data
released by the Securities and
Exchange Board of India (SEBI). PNotes, allow entities like
overseas High Net-worth
Individuals (HNIs), hedge funds and other foreign institutions,
to invest in Indian markets
through registered FIIs , while saving on time and costs
associated with direct registrations.
Overseas investors infused a hefty sum of Rs 4, 500 crore (US$
836.64 million) in the first
week of January 2013; wherein during January 1- 4, 2013, FIIs
were gross buyers of shares
worth Rs 8, 350 crore (US$ 1.55 billion), while they sold
equities amounting to Rs 3, 830
crore (US$ 712.09 million).
Financial Services in India: Recent Developments
The Ergo Insurance Group (part of worlds leading reinsurer
Munich Re) and the Avantha
Group, India's leading business conglomerate, have entered into
a joint venture agreement in
the space of life insurance. The new company, to be named
Avantha Ergo Life Insurance
Company Ltd, is expected to commence operations at the beginning
of 2014, subject to
regulatory approval.
The Small Industries Development Bank of India (SIDBI) has
partnered with eight regional
rural banks (RRBs) and urban co-operative banks in West Bengal.
The scope of agreements
includes training the staff of RRBs and co-operative banks in
project appraisal, monitoring
and collection as also providing free access to software on a
down-scaling methodology
developed for lending to micro enterprises.
Financial Services: Government Initiatives
The Indian Government has re-affirmed its efforts to push
economic growth by increasing the FDI
limit from 26 per cent to 49 per cent in insurance. The reform
is expected to please international
players who had been waiting to venture into India and also
encourage existing players to increase
their stakes in strategic alliances. The Indian insurance sector
needs US$ 10-12 billion capital
infusion in the next five years.
Furthermore, in a bid to attract higher foreign inflows, the
Government of India (GoI) has opened up
an opportunity for FIIs of all jurisdictions to earn tax-free
interest by investing in debt instruments of
a state-owned enterprise. Owing to this landmark move, FIIs and
non-resident Indian (NRIs) have
been allowed to invest in the public issue of tax-free bonds by
Housing and Urban Development
Corporation (Hudson) that opened up on January 9, 2013.
The GoI has also approved the establishment of a Credit Risk
Guarantee Fund Trust (CRGFT) for
low income housing, with an initial outlay of Rs.1000 crore (US$
185.92 million). The CRGFT,
registered on May 1, 2012 and launched on October 31, 2012 would
administer and operate the
Scheme, which is demand-driven, as stated by Ajay Maken, Union
Minister of Housing & Urban
Poverty Alleviation (HUPA).
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3.5 History of Stock Exchanges
It was in the year 1875 that the working of stock exchange in
India started. BSE is the oldest stock
market in India. Indian stock trading started with 318 persons
taking membership in Native Share
and Stock Brokers Association, which is now known as the Bombay
Stock Exchange or BSE in
short. In 1965, BSE got permanent recognition from the
Government of India. National Stock
Exchange (NSE) comes second to BSE in terms of popularity. BSE
and NSE represent themselves as
synonyms of Indian stock market.
The 30 stock sensitive index or Sensex was first compiled in
1986. The Sensex is compiled based
onthe performance of the stocks of 30 financially sound
benchmark companies. In 1990 the BSE
crossed the 1000 mark for the first time. It crossed 2000, 3000
and 4000 figures in 1992. The reason
for such huge surge in the stock market was the liberal
financial policies announced by the then
financial minister Dr. Man Mohan Singh. The buoyant mood of the
market was suddenly gone with
Harshad Mehta scam. It came to public knowledge that Mr. Mehta,
also known as the big-bull of
Indian stock market diverted huge funds from banks through
fraudulent means. He played with 270
million shares of about 90 companies.
Millions of small-scale investors became victims to the fraud as
the Sensex fell flat shedding 570
points. Thus, from that day it became very clear that the stock
market is not a place where you can
earn money easily without taking into considerations about your
environmental changes. It also made
it very clear that the small investors should themselves as safe
as possible because of the uncertainty
in the market.
To prevent such frauds, the Government formed The Securities and
Exchange Board of India (SEBI),
through an Act in 1992. SEBI oblige several rigid measures to
protect the interest of investors. Now
with the inception of online trading and daily settlements the
chances for a fraud is nil as the stock
broking companies had to make it very to each and every investor
bout the various issues of the stock
market. Sensex crossed the 5000 mark in 1999 and the 6000 mark
in 2000. The 7000 mark was
crossed in June and the 8000 mark on September 8 in 2005. After
the liberalization, when the gates
were open for the foreign investors the Indian stock. Market was
flooded with the FDIs (foreign
direct investments) and the market has shown tremendous amount
of volatility. And very recently
market has even touched the 21,000 mark.
3.6 Type of Stock Market
The market or place, where securities, viz. shares are exchanged
or traded or simply where buying or
selling of shares takes place, is called stock exchange or stock
market. In India there are two types of
stock exchanges:
1. National Stock Exchange (NSE)
2. Bombay Stock Exchange (BSE)
NSE is a Mumbai-based largest stock exchange in India in terms
of daily turnover and number of
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25 | P a g e
trades. Though it is mutually-owned by a set of leading
financial institutions like banks, insurance
companies but its ownership and management operate as a separate
entities. It is the second fastest
growing stock exchange in the world with a recorded growth rate
of 16.6%. It was incorporated in
November 1992 as a tax paying company. In April 1993 it was
recognized as a stock exchange under
the Securities Contracts Act, 1956. The capital market
(equities) segment of the NSE commenced its
operations in November 1994, while operations in derivatives
segment commenced in June 2000. It
is the third largest Stock Exchange in the world in terms of
number of trades in equities.
BSE is the oldest stock exchange in Asia and also the biggest in
the world in terms of listed
companies with 4800 listed companies as of August 2007. It was
established in 1875. It played a
pivotal role in the development of its index SENSEX which is
tracked worldwide. It has a PAN India
presence in 417 cities and towns.
In a nation with middle class population of above 200 million,
most of whom dream of a better,
financially comfortable tomorrow, the stock market is obviously
seen as the perfect place to invest
when you consider that stock markets can make you rich in a very
short span of time provided you
play your cards correctly. But the scams in the last centuries
have made the investors to play it safe,
if they dont know the rules of the game.
In the past few years though have seen a wave of technology
enhancements sweeping through the
Indian share markets, wiping out archaic conventions. Due to
this we have seen many changes
coming into the picture like online share trading gradually
coming to India. These technological
innovations have been brought out most proactively by NSE.
The online share trading started way back in February 2000 with
the Geojit Securities conducting the
first online transaction where 100 shares of Reliance was traded
by SEBI Chairman D R Mehta for
Geojit Chairman A P Kurien. Since then a lot has changed in the
Stock market. Currently, online
trading volumes in India is just about 20% of the total trades.
Slow off the blocks, but online share
trading in India is poised to grow very fast in the future. From
a base of about Rs 3 crore in April
2000, online trading volume has raised to nearly In the stock
market, basically trading of shares is
done apart from commodities trading. Trading is the process of
buying at lower price and then selling
it at a higher price for earning profits. Share trading is one
of the most successful trading and it has
become simpler, fast, and secure from offline trading or phone
trading into online trading. Online
trading is done with the help of internet. One of the biggest
problems with the stock market is that
there are no guarantees. After doing a lot of research at your
home still it may be possible that the
stock which you had picked falls to oblivion.
Share trading is done in mainly two ways:
1. Online share trading: Online share trading is done with the
help of computer, internet connection
and with trading or demat account is called online share
trading, or we can say that online trading is
the trading of securities via the internet. If you would like to
do online share trading then you should
have a computer, internet connection and online trading account.
It is done via internet means that all
the transaction is settled electronically.
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2. Offline share trading: In offline trading the transactions
are done through the phone and when to
buy or sell is directed through phone. In other words trading
will be done by another person on ones
behalf based on the instructions given by one, and then the
other person can be a broker. The broker
will do buying and selling of shares on ones behalf depending on
the instructions given by one. This
type of trading was done in the past but nowadays most of the
trading is done through computers i.e.
online.
E.g. Suppose that if Mr. X wants to sell n number of shares when
the share price reaches Rs. 100,
then X will tell his broker to sell the share at Rs 100 (i.e.
when the price of Rs. 100 is reached).
Nevertheless, with all the convenience of online trading there
are still investors who prefer the old
fashion way of offline trading. Offline trading has lost some
popularity but it is still the main form of
investing.
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4. Literature Review
Investing is both Arts and Science. Every Individual has their
own specific financial need and
expectation based on their risk taking capabilities, whereas
some needs and expectation are universal.
Therefore, we find that the scenario of the Stock Market is
changing day by day hours by hours and
minute by minute. The evaluation of financial planning has been
increased through decades, which
can be best seen in customers. Now a days investments have
become very important part of income
saving. In order to keep the Investor safe from market
fluctuation and make them profitable,
Portfolio Management Services (PMS) is fast gaining Investment
Option for the High Net worth
Individual (HNI). There is growing competition between brokerage
firms in post reform India. For
investor it is always difficult to decide which brokerage firm
to choose. As the PMS services of
Share khan Limited have the best result in its field .It has
given 43.50% return in Trailing stops,
94.30%return in Nifty and 38.10% in Beta Portfolio which is the
result when the Market was not
doing well from last one year.
The stock market has been a part of people's lives throughout
the twentieth century. Millions of
people around the world have money invested in their countries
own respective markets. Since the
coming of age of online trading, more people have been investing
their money in stocks than ever
before because of the advantages it offers. Online trading
allows people to trade stocks quickly
without the help of a broker, letting the investors have more
control over their transactions. The
competition between companies has helped decrease the cost of
making the transactions. In addition
to that, ordinary people now have access to information that
could only be seen by brokers. Overall,
online trading saves time, money and gives power to the investor
rather than the broker. The
combined effects of financial services companies striving to
drop the cost of providing customer
service and the significant rise in individual investors'
interest in taking control of their own
investments continues to increase the use of online securities
trading. Further, many individual
investors rely on the internet as a means of learning as much as
they can about specific investments
before executing a stock or bond trade online, and this factor
alone is changing the landscape of
financial services. It is seen that the financial services firms
are walking a fine line between
automating transactions by putting powerful investment tools in
the hands of individual investors,
while at the same time educating them of the financial benefits
of long-term investing. With the
advancement of online trading individual investors have more
control over their funds than ever
before, yet with that freedom comes a high level of
responsibility to make sure the advice,
applications and tools they gain access from financial services
firms are in fact the best match with
their investment needs. For this industry, analysis can be
conducted in an effort to determine who has
the power, the customers or the suppliers? Competitive forces
provide buyers or suppliers with an
advantage in terms of who holds the bargaining power. Tumbling
markets, falling share prices....
make us appear the trading exercise very lucrative. But still
puzzled, where will we be able to choose
the right lot from the markets.
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5. Objective
1. To know about the consumer perception about the equity
market.
2. To know about the investment pattern of consumers,
3. To get knowledge about the other broking firms.
4. To search about the future prospects of kotak securities
ltd.
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6. Research Methodology
The research includes both primary and secondary data. The
information from the
respondents is collected through questionnaire. The primary data
was collected from the
people of Ranchi, Jharkhand and secondary data is collected from
the books,official website
of kotak securities, internet, research papers and other
sources.
Questions are framed in such a way that the answers reflect the
views and thoughts of the
respondents with regard to level of satisfaction. Respondents
are required to tick at the
appropriate box. Some facts revealed in the study are based on
the response given by the
respondents.
Research Design
Descriptive: Since it is not a new area of survey or research.
Earlier so many research works
have been done by various people about the consumer perception
towards equity market.
Qualitative: I only emphasized on objective questions related
with their mind set-up and
their perception about equity market with a reference to kotak
securities.
Primary: First hand data was collected from the people of
ranchi. The primary data collected
for this purpose was on the basis of a field survey. A
questionnaire prepared for this purpose,
were filled upon the basis of interview and free discussion with
selected respondents. In order
to conduct field survey, interview and questionnaire filled in
by the consumers itself and
taken as the study area.
Sample Size: There were 100 respondents. All these respondents
were from Ranchi,
Jharkhand.
Sampling method: For the purpose of the study, Convenience
Sampling was used.
Method of data collection: Data was collected with the help of a
questionnaire and semi-
structured interview.
Sample Area: For the survey Ranchi has been selected. Ranchi was
selected on convenience
basis.
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7. Task:
1. To know about the consumer perception regarding equity
market.
2. To do comparative analysis of different broking firms.
3. To focus on the business expansion perspectives of Kotak
Securities ltd.
a.) To meet existing clients and know about their status.
b.) To meet the new and prospective clients and make them aware
about the services of
Kotak Securities ltd.
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7.1 Task 1: Consumer Perception about the Equity Market:
(Data Analysis and Interpretation)
Consumers status on the basis of different parameters:
a.)On the basis of sex-
Table 1: consumers on basis of sex
Sex number
Male 82
Female 18
Total 100
In the survey most of the consumers were male i.e 82% and rest
are female(18%).
fig.1:consumers on basis of sex
male
female
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b.)On the basis of age:
Table no.2: Consumers on basis of age group
Age group Number
60 15
In the survey I found that most of the respondents were from
40-60 age group(46%). Then
the age group were 25-40(27%), >60(15%) and
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c.)on the basis of educational qualification:
Table no.3: consumers on the basis of educational level
Educational level Number
Matriculation 9
Intermediate and equivalent 18
Graduate and equivalent 51
Post-graduate and equivalent 22
Most of the respondents were from Graduate and
equivalent(51%)then the Post-graduate and
equivalent(22%) comes. Backed by Intermediate and
equivalent(18%) and
matriculation(9%).
fig.3:consumers on the basis of educational level
matric
intermediate
graduation
post-graduation
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34 | P a g e
Sec-A
Q1. What is your average annual income?
Table No.4: Income level
Income Range Number
500000 43
Among the respondents most of the people were having income
>500000(43%) backed by
the income group of 400000-500000(25%), 200000-500000(19%)
and
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Q2. In which bank do you have your account?
Table No.5: Bank Preference
Bank Number
SBI 44
PNB 7
ICICI 14
HDFC 8
Any Other 27
In the survey 44% people have their bank account in SBI. after
that 27% in other banks,14%
in ICICI, 8% in HDFC and 7% people have their account in
PNB.
fig.5:Bank Preference
SBI
PNB
ICICI
HSFC
any other
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Q3. How much money do you invest annually?
Table No.6: Investment Level
Amount number
200000 19
The amount of investment is mostly done 200000 by 19%
people.
fig.6:Investment Level
200000
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Q4. What is your motive behind investment?
Table No.7: Saving Motive
Motive Number
Saving 24
Tax Saving 41
Future Perspective 22
Any Other 13
In this survey I came to know that 41% do investment for the
purpose of tax saving. Then 24% people for saving, 22% for future
perspective and 13% people do investment for other reasons.
fig.7:Saving Motive
saving
tax saving
future perspective
any other
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Q5. What is your investment pattern?
Table No.8: Investment Pattern
Pattern Number
Short Term 23
Long Term 77
Among all the respondents 77% people accepted that they do
investment for long term while rest
23% people do for short term.
fig.8:Investment Pattern
short term
long term
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Q6. Do you know about the equity market?
Table No.9: Awareness About Equity Market
Notion Number
Yes 82
no 18
This survey revealed that out of 100 respondents 82% people were
aware about the equity market
while rest 18% didnt know about it.
fig.9:Awareness About Equity Market
yes
no
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Q7. Do you have demit account?
Table No.10: Having Demat Account
Option Number
Yes 74
no 26
Out of those 82% people who know about the equity market 74% had
demat account while 26%
people didnt have the demat account.
fig.10:Having Demat Account
yes
no
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Q8. Are you interested in investing in the share market?
Table No.11: Interest Level
Option Number
Yes 10
No 16
When I talked to those 26% people who didnt have their demit
account 10 people shown interest
for investment in equity market while 16 people dont want to
invest.
fig.11:Interest Level
yes
no
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42 | P a g e
SEC-B
Q1. In which company do you have demit account?
Table No.12: Broking Firm Preference
Broking firm Number
Kotak securities 34
IIFL 12
HDFC Securities 9
Bonanza 5
Any Other 14
Out of 74 people 34 people had their demit account in kotak
securities while 14 people in other
agencies,12 people in IIFL, 9 people in HDFC securiries, and 5
people were having demit account in
bonanza.
fig.12:Broking Firm Preference
kotak securities
IIFL
HDFC securities
bonanza
any other
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43 | P a g e
Q2. How much money do you invest annually in equity market?
Table No.13: Annual Investment
Amount Number
150000 19
In this survey 30 people do investment of 50000-150000,19 people
>150000, 13 people 20000-
50000 and 12 do investment of
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Q3. What sources do you use to make decision on investments in
the stock market?
Table No.14: Source Preference
Source Number
Press 4
T.V 24
Broker Advice 23
Friend Advice 14
Any Other 9
Out of 74 people 24 people know about equity through T.V,23
people through Broker Advice, 14
people through Friend Advice, 9 people through other sources and
4 people know about
equity market through press.
fig.14:Source Preference
press
t.v
broker advice
friend advice
any other
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Q4. What is the main reason you consider while investing in the
stock market?
Table No.15: Reason for Investment
reason Number
Dividend 9
Low Share Price 14
Expectation of Share Price Increase 23
Expectation of Good Return 18
Any Other 10
23 people invest because of expectation of share price increase,
18 people because of
expectation of good return, 14 people because of low share
price, 10 people because of other
reason and 9 people invest because of dividend.
fig.15:Reason for Investment
dividend
lowshare price
Expectation of Share Price Increase
Expectation of Good Return
Any Other
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Q5. What aspect of company do you think are taken into account
while purchasing shares?
Table No.16: Reason for Share Purchase
Reason Number
Dividend Policy 7
company Market Image 29
Market Condition 21
level of Share Price 13
Any Other 4
In the survey 29 people purchase because of company Market
Image, 21 people because of
market condition, 13 people because of level of share price, 7
people because of dividend
policy and 4 people purchase share because of other reasons.
fig.16:Reason for Share Purchase
Dividend Policy
company Market Image
Market Condition
level of Share Price
Any Other
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Q6. What factor influences you to sell your shares of a certain
company?
Table No.17: Reason for Share Sale
Reason Number
Low or No Dividend 8
Low Share Price 14
Expectation of Share Price Decrease 25
Bad Market Condition 18
Any Other 9
Out of 74 people 25 people sell shares because of expectation of
share price decrease, 18
people because of Bad Market Condition, 14 people because of low
share price, 9 people
because of other reason and 8 people sell shares because of low
or no dividend.
fig.17:Reason for Share Sale
Low or No Dividend
Low Share Price
Expectation of Share Price Decrease
Bad Market Condition
Any Other
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Q7. Which pattern you follow while investing in the share
market?
Table No.18:Trend of Investment
Trend Number
Intraday Trading 27
Delivery 47
Out of 74 people 47 people do delivery trading and 27 people do
intraday trading.
fig.18:Trend of Investment
Intraday Trading
Delivery
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Q8. Are you satisfied with the services of your existing trading
company?
Table No.19: Satisfaction Level
Option Number
Yes 57
No 17
Out
Out of 74 respondent 57 people were satisfied with the services
of their broking firms while only 17
were dissatisfied from the services of their company.
fig.19:Satisfaction Level
yes
no
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7.2 Task: 2- Comparative Analysis of Different Broking Firms
To get more knowledge about the share market and to bring
clarity in my understanding
about the organisational work culture I moved towards different
broking firms. I visited the
other broking firms situated in ranchi and talked to the concern
person regarding their
products and service offering. In this task I preferred
interview method and asked them the
questions related to share trading process.
I visited 5 broking firms in ranchi. In this task I came to know
about the difference in
working pattern and services offered by the different firms.
During the discussion with these
broking firms the questions were related to-
Account opening charges
Annual maintenance charge(AMC)
Broking charge (for intraday and delivery)
Limit amount (the amount given by firm for trade)
Trading patterns available
Other extra charges, if any
Products and services offered by the company
Any special thing about their firm
Security facility
Any strategic investment book for customers
Kotak securities
HDFC securities
bonanza sharekhan Narnolia securities
a/c opening charge
750 999 999 500 390
Brokerage charge
Intraday 0.05 o.05 0.05 0.05 0.05
Delivery 0.50 0.40-0.50 0.50 o.50 0.50
AMC 600 500 Free 500 300
Exposer
Intraday 6 times 7 times 10 times 6 times 8 times
delivery 4 times 5 times 3 times 4 times 4 times
Research report
Available weekly available no available
commodity online online Online online offline
Money transaction
Multiple bank
Only HDFC bank
Multiple bank
Multiple bank
Multiple bank
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7.3 Task: 3 Business Expansion Perspectives:
a.)To Meet Existing Clients And Know About Their Status.
I met the existing customers of kotak securities ltd and came to
know about their feelings and
thoughts about the company itself and the stock market also.
This meeting was a interview
cum discussion session. In this I asked about their experience
with share market and the
services of the company provided to them.
The main objective behind these meetings was to know about their
satisfaction level with
company and to make improvement if there is any problem.
During these meeting customers shared their initial experience
and the ups and downs in their
investment pattern in the share market. They talked about the
present condition of share
market and predicted the future of it. some of them were very
optimistic about the market
while some were very careful during investment in this bull
phase of market.
In these meetings they raised some issues and discussed some
problems which are-
Company dont give proper information about the market.
They dont contact on regular basis.
Dealers suggest some stocks only for the sake of the
brokerage.
Company dont give any magazine or investment portal.
Company sales people dont tell about some hidden charges at the
time of account
opening.
Company add some extra charges on the transactions.
Company dont inform about the changed telephone numbers.
So many times the telephone number is not reachable.
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b.) To Meet The New And Prospective Clients And Make Them Aware
About The
Services Of Kotak Securities LTD:
This task was assigned to get some practical application of the
theoretical knowledge. In this
process I met so many people and represented my company. I
talked to them about our
company product and services and convinced them to associate
with it.
So many people didnt find themselves easy with share market and
they hesitated to invest in
this market. I talked to them patiently and tried to resolve
their doubts and suggested them to
invest in this market. Most of them were agreed to invest in the
share market.
During this period I came to know about the negative perceptions
about the share market.
Some of this are-
It is a very risky market.
It is loss making investment.
Company will take our money.
Company will invest in products from where it will earn more
commission.
Investment in share market is never going to be beneficial.
In the process of meeting new clients I had followed some steps.
So that I could easily get
appointment from them.
Prospecting:
I generated a database of contact numbers of clients and then
talked to them regarding demat
account opening.
Taking appointment:
Among those customers many of them shown interest regarding
investment in the share
market. So I fixed appointment with these clients.
Visit:
Then I visited to the prospects clients after taking the
appointment and explain them about the
products and investments process in the share market. I also
told them about the features of
investment into the market.
Follow ups:
After the account is opened by the client dealers continue to be
connected and provide new
information related to existing products or new products.
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8. Findings
Young and risky people love to invest in share market. they like
the sudden changes
in the market.
People who want to earn money in less time prefer to do intraday
trading.
People who want to earn money but with a calculated risk they go
for delivery
trading. Usually they trade according to the market condition.
These are the close
watchers of the movement of market.
Some wealthy people totally depend on dealers for the investment
and easily agreed
with their suggestions because of lack of time and their
devotion to their business and
job.
Due to its volatility people consider equity market as a very
risky investment
portfolio.
Mostly people prefer to invest in fixed deposits, insurance and
bonds rather than
equity market.
People have lack of awareness regarding equity market. They
hesitate to talk about
this market.
People considers it as a loss making market.
Women are less interested regarding investment in the share
market.
People with family burdens and other responsibilities dont want
to invest in the share
market.
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9. Limitations
The report has been prepared on the basis of information given
by the respondents which
may be biased.
Sample size is limited to 100, findings and conclusions are
based on knowledge and
experience of the respondents.
Sometime information may subject to personal problems.
This study was only restricted to the Ranchi.
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10. Conclusion
Kotak Securities is active in the share trading from a very long
time. So it understands their
need and financial requirements. Along with it its customer pro
services have made it the
customers first preference while investing in the share
market.
Due to clarity in its work culture it has maintained a good
customer base. But due to lack of
awareness about equity market Kotak Securities find it tough to
expand its business. But still
there is a huge untapped customer segment which needs some
encouragement from the
company side.
Since Kotak Securities has a good image and reach to the
customers, but to gain more
customer loyalty it will have to promote its product which makes
feel customers more
associated. Advertisement is the area where it can do creative
things to make customers
attached with its services.
Along with this it should also try to organise some conferences
on regular basis and should
invite investors to participate in it. It should also promote
some social events to get a positive
and a distinct image in customers eye.
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11. Bibliography
Text Books
Security Analysis and Portfolio Management by Punithavathy
Pandian, Vikas Publications.
Security analysis and portfolio management by V.A. Avadhani.
Websites:
www.kotaksecurities.com
www.bseindia.com
www.nseindia.com
www.sebi.gov.in
www.economictimes.com
www.moneycontrol.com
http://www.kotaksecurities.com/http://www.bseindia.com/http://www.nseindia.com/http://www.sebi.gov.in/http://www.economictimes.com/http://www.moneycontrol.com/
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12. Appendix
Questionnaire Regarding Awareness and Perception of the Share
Market
Hello, I am Awadhoot Prakash Singh, pursuing degree of Master of
Business
Administration from Central University of Jharkhand, Ranchi.
This survey
(Questionnaire) is a part of my Summer Internship Program in
Kotak Securities LTD. I
assure you that the information given by you would be kept
secret and would not be shared to
any outsider.
Name -----------------------------------
Age ----------------------------------------
Education level -----------------------------------
Occupation ------------------------------
Contact number -----------------------------------
Mail id --------------------------------------------
Section-A
Q1. What is your average annual income?
500000
Q2. In which bank do you have your account?
S.B.I P.N.B HDFC ICICI any other_____________
Q3. How much money do you invest annually?
200000
Q4. What is your motive behind investment?
Saving tax saving future perspective any other___________
Q5. What is your investment pattern?
Short term long term
Q6. Do you know about the equity market?
Yes no
Q7. Do you have demit account?
Yes no (if yes, directly go to the Section-B)
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Q8. Are you interested in investing in the share market?
Yes no
Section-B
Q1. In which company do you have demit account?
Kotak securities IIFL sherkhan bonanza any other ________
Q2. How much money do you invest annually in equity market?
150000
Q3. What sources do you use to make decision on investments in
the stock market?
Press T.V broker advice friend advice others _______________
Q4. What is the main reason you consider while investing in the
stock market?
Dividend low share price expectation of share price increase
expectation of good return
Q5. What aspect of company do you think are taken into account
while purchasing shares?
Dividend policy company market image corporate governance
standard
level of share price any other ________________________
Q6. What factor influences you to sell your shares of a certain
company?
Low or no dividend low share price expectation of share price
decrease
bad market condition any other _____________________
Q7. Which pattern you follow while investing in the share
market?
Intraday trading delivery
Q8. Are you satisfied with the services of your existing trading
company?
Yes no
______________
(Signature)
Thank you