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COMPANY PROFILE
ABOUT THE COMPANY
SHAREKHAN RETAIL BROKING
Among the top 3 branded retail service providers (Rs 750 croresaverage daily volume-
Apr Dec04
No. 2 player in online business
Largest network of branded broking outlets in the country
servicing 4,00,000 clients.
MANAGEMENT TEAM
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The company has an eighty years experience in brokering business it was earlier known as SSKI
(SHANTILAL SHEWANTILAL KANTILAL ISWARNATH LIMITED] Group. The owner of
the company is Mr. SHRIPAL MORKHIYA. Sharekhan is one of the leading retail brokerage
firms in the country. It is the retail broking arm of the Mumbai-based SSKI Group, which has
over eight decades of experience in the stock broking business. Sharekhan offers its customers a
wide range of equity related services including trade execution on BSE, NSE, Derivatives,
depository services, online trading, investment advice etc. The firms online trading and
investment site -www.Sharekhan.com-was launched on Feb 8, 2000. The site gives access to
superior content and transaction facility to retail customers across the country. Known for its
jargon-free, investor friendly language and high quality research, the site has a registered base of
over 4 lakh customers. The number of trading members currently stands at over 3 Lacs. While
online trading currently accounts for just over 1 per cent of the daily trading in stocks in India,
Sharekhan alone accounts for 22 per cent of the volumes traded online.
The content-rich and research oriented portal has stood out among its contemporaries because of
its steadfast dedication to offering customers best-of-breed technology and superior market
information.
The firms online trading and investment site-www.Sharekhan.com-was launched on Feb 8,
2000. The site gives access to superior content and transaction facility to retail customers acrossthe country. Known for its jargon-free, investor friendly language and high quality research, the
site has a registered base of over 4 lakh customers. The number of trading members currently
stands at over 3 Lacs. While online trading currently accounts for just over 1 per cent of the daily
trading in stocks in India, Sharekhan alone accounts for 22 per cent of the volumes traded online.
The content-rich and research oriented portal has stood out among its contemporaries because of
its steadfast dedication to offering customers best-of-breed technology and superior market
information. The objective has been to let customers make informed decisions and to simplify
the process of investing in stocks.
On April 17, 2002 Sharekhan launched SpeedTrade, a net-based executable application that
emulates the broker terminals along with host of other information relevant to the Day Traders.
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This was for the first time that a net-based trading station of this caliber was offered to the
traders. In the last six months SpeedTrade has become a de facto standard for the Day Trading
community over the net. Sharekhans ground network includes over 250 centres in 123 cities in
India, of which 20 are fully-owned branches.
Sharekhan has always believed in investing in technology to build its business. The company has
used some of the best-known names in the IT industry, like Sun Microsystems, Oracle,
Microsoft, Cambridge Technologies, Nexgenix, Vignette, Verisign Financial Technologies India
Ltd, Spider Software Pvt Ltd. to build its trading engine and content. The Morakhia family holds
a majority stake in the company. HSBC, Intel & Carlyle are the other investors.
With a legacy of more than 80 years in the stock markets, the SSKI group ventured into
institutional broking and corporate finance 18 years ago. Presently SSKI is one of the leading
players in institutional broking and corporate finance activities. SSKI holds a sizeable portion of
the market in each of these segments. SSKIs institutional broking arm accounts for 7% of the
market for Foreign Institutional portfolio investment and 5% of all Domestic Institutional
portfolio investment in the country. It has 60 institutional clients spread over India, Far East, UK
and US. Foreign Institutional Investors generate about 65% of the organizations revenue, with a
daily turnover of over US$ 2 million. The Corporate Finance section has a list of veryprestigious clients and has many firsts to its credit, in terms of the size of deal, sector tapped
etc. The group has placed over US$ 1 billion in private equity deals. Some of the clients include
BPL Cellular Holding, Gujarat Pipavav, Essar, Hutchison, Planetasia, and Shoppers Stop.
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Sharekhan Business
1 Brokering business
2 White feathering house production
Vision
To be the best retail brokering Brand in the retail business of stock market.
Mission
To educate and empower the individual investor to make better investment decisions through
quality advice and superior service.
4
From sharekhan.com to Indias largest chainof branded retail share
Shops
750 brandedshare shops
across 280 citiesin India
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Sharekhan is the retail broking arm of SSKI, an organization with more than eight decades of
trust & credibility in the stock market.
Amongst pioneers of investment research in the Indian market
In 1984 ventured into Institutional Broking & Corporate Finance.
Leading domestic player in Indian institutional business
Over US$ 5 billion of private equity deals
SSKI Group Companies
1. SSKI Investor Services Ltd (Sharekhan)
2. S.S. Kantilal Ishwarlal Securities
3. SSKI Corporate Finance
4. I dream Productions
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SSKI Corporate Structure
6
SSKI Securities Pvt. Ltd.
Morakhia Family & Associates100%
Owns 56% of
SSKI INVESTOR SERVICES PVT. LTD.
Retail broking arm of the groupShareholding pattern:
55.5% Morakhia family (promoters)18.5% HSBC Private Equity India Fund
Ltd18.5% First Carlyle Ventures, Mauritius
7.5% Intel Pacific Inc.
Owns 50.5% of
SSKI CORPORATE FINANCE PVT. LTD.Investment Banking arm of the group
Shareholding pattern:50.5% SSKI Securities Pvt. Ltd.
49.5 % Morakhia family
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ABOUT THE TOPIC
INTRODUCTION OF THE TOPIC
The topic is to study the consumer preference towards investment in stock market. DEMAT A/C
is a pool of various scripts and securities, where as online trading A/C is a tool of purchasing/
selling of shares or scripts online. These scripts are then transferred to DP i.e. Depository
account after three days.
This topic includes the practical experience of selling company product that is followed by
studying the consumer preference or interest towards share market. This is a market, which isuncertain some time it gives huge profit and also vice versa; it depends up on the investment
customer made. This is a better option to have better returns on the investments then investing in
banks, mutual fund or bonds et. But risk is high in this case.
This product offers customer two type of investment option INTRADAY and DELIVERY both
has their own benefits and limitation but a better way to have more returns on investment.
Intraday means investing in share market for a day i.e. purchasing and selling of the share in one
day. Delivery is purchasing share and selling those shares next day. The charges that company
charge in terms of brokerage are different in both the cases.
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LITERATURE REVIEW
GENERAL INTRODUCTION
DP (Depository Participants)
As an investor you open a securities account with a DP. DPs are attached to the depositories very
much the same way as commercial banks are attached to RBI . All interactions including account
opening, dematerialization, transactions, pledge etc are done through the DP.
Reasons to choose DP
You can select your DP to open a demat account just like you select a bank for opening a savingsaccount. Some of the important factors for selection of a DP can be:
Convenience: proximity to the office/residence, business hours.
Comfort: reputation of the DP, past association, range of services etc. Find out if the DP is in a
position to give the specific service you may need.
Cost: the service charges levied by DP and the service standard.
Dematerialization
The dematerialization system is an alternative to the physical existence of securities. In this
system securities are converted into the electronic form and deposited in a depository accounting
the investors name.
In order to dematerialize certificates, an investor will have to first open an account with a DP
and then request for the dematerialization of certificates by filling up a Dematerialization
Request Form (DRF), which is available with the DP, and submitting the same along with the
physical certificates. The investor has to ensure that before the certificates are handed over to the
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DP for demat, they are defaced by marking "Surrendered for Dematerialization" on the face of
the certificates.
Procedure for selling dematerialized securities
The procedure for selling dematerialized securities in stock exchanges is similar to the procedure
for selling physical securities. Instead of delivering physical securities to the broker, you instruct
your DP to debit your account with the number of securities sold by you and credit your broker's
clearing account. This delivery instruction has to be given to your DP using the delivery
instruction booklet received from the DP at the time of opening the account. The procedure for
selling securities is given here below:
Investor sells securities in any of the stock exchanges linked to NSDL through a broker.
Investor gives instruction to DP to debit his account and credit the broker's (clearing
member pool) account.
Before the pay-in day, investor's broker gives instruction to his DP for delivery to
clearing corporation.
The broker receives payment from the stock exchange (clearing corporation).
The investor receives payment from the broker for the sale in the same manner payment
is received for a sale in the physical mode.
NSDL
Although India had a vibrant capital market, which is more than a century old, the paper-based
settlement of trades caused substantial problems like bad delivery and delayed transfer of title till
recently. The enactment of Depositories Act in August 1996 paved the way for establishment of
NSDL, the first depository in India. This depository promoted by institutions of national stature
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responsible for economic development of the country has since established a national
infrastructure of international standard that handles most of the trading and settlement in
dematerialized form in Indian capital market. Using innovative and flexible technology systems,
NSDL works to support the investors and brokers in the capital market of the country. NSDL
aims at ensuring the safety and soundness of Indian marketplaces by developing settlement
solutions that increase efficiency, minimize risk and reduce costs. At NSDL, we play a quiet but
central role in developing products and services that will continue to nurture the growing needs
of the financial services industry.
In the depository system, securities are held in depository accounts, which is more or less similar
to holding funds in bank accounts. Transfer of ownership of securities is done through simple
account transfers. This method does away with all the risks and hassles normally associated withpaperwork. Consequently, the cost of transacting in a depository environment is considerably
lower as compared to transacting in certificates.
CDSL
A Depository facilitates holding of securities in the electronic form and enables securities
transactions to be processed by book entry by a Depository Participant (DP), who as an agent of
the depository, offers depository services to investors. According to SEBI guidelines, financial
institutions, banks, custodians, stockbrokers, etc. are eligible to act as DPs. The investor who is
known as beneficial owner (BO) has to open a demat account through any DP for
dematerialisation of his holdings and transferring securities.
The balances in the investors account recorded and maintained with CDSL can be obtained
through the DP. The DP is required to provide the investor, at regular intervals, a statement of
account which gives the details of the securities holdings and transactions. The depository
system has effectively eliminated paper-based certificates which were prone to be fake, forged,
counterfeit resulting in bad deliveries. CDSL offers an efficient and instantaneous transfer of
securities.
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CDSL was promoted by Bombay Stock Exchange Limited (BSE) jointly with leading banks
such as State Bank of India, Bank of India, Bank of Baroda, HDFC Bank, Standard Chartered
Bank, Union Bank of India and Centurion Bank.
CDSL was set up with the objective of providing convenient, dependable and secure depository
services at affordable cost to all market participants. Some of the important milestones of CDSL
system are:
CDSL received the certificate of commencement of business from SEBI in February,
1999.
Honourable Union Finance Minister, Shri Yashwant Sinha flagged off the operations of
CDSL on July 15, 1999.
Settlement of trades in the demat mode through BOI Shareholding Limited, the clearing
house of BSE, started in July 1999.
All leading stock exchanges like the National Stock Exchange, Calcutta Stock Exchange,
Delhi Stock Exchange, The Stock Exchange, Ahmedabad, etc have established
connectivity with CDSL.
As at the end of Dec 2007, over 5000 issuers have admitted their securities (equities,bonds, debentures, commercial papers), units of mutual funds, certificate of deposits etc.
into the CDSL system.
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JOB DESCRIPTION
The company placed me as a Summer Trainee. I have been handling the following
responsibilities:
My job profile is to sale of product of the organization.
My job profile is to coordinate the team and also help them to sale the product and also
help them in field.
My job profile is to generate the lead by cold calling.
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My job profile is to understand customers needs and advising them to make a portfolio
as per their investment.
My job profile is to do sales promotion through e-mails, canopies, making cold calling,
distributing pamphlets and etc.
My job profile is to convince customer for investment in Commodity.
AREA ASSIGNED
I covered areas like Delhi, Gurgaon, Ghaziabad, Faridabad and NCR.
TARGET ASSIGNED
To sell 15 accounts per month.
TARGET MARKET
Different property dealers.
Charted accountants.
Lawyers
Travel agencies
Transport business
House wives
Businessmen
Corporate employees etc.
DAY TO DAY JOB EXPERIENCE
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Reporting time: 9.30 AM
Fixing appointment with clients.
Visit clients place.
Demonstrate the product on Internet to the client.
Completing the formalities like filling the application form and documentation.
Cold calling.
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RESEARCH METHODOLOGY
OBJECTIVE OF THE STUDY
1) Main objective
The main objective is overview of Sharekhan & comparative analysis among its competitors.
2) Specific Objective
A) Creating customer;
B) Marketing of the product;
C) Creating relationship with the customer to have their sources;
D) Motivating customer for trading;
RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically. In it we study the various
steps that are generally adopted by a researcher in studying his research problem along with
logic behind him. Why a research study has been undertaken, how a research problem has been
defined, in what way and why the hypothesis has been formulated, what data have been collected
and what particular method has been adopted, why particular technique of analyzing data has
been used and a host of similar other questions are usually answered when we talk of research
methodology concerning a research problem or study.
RESEARCH DESIGN:
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A research design is the arrangement of conditions for collection and analysis of in a manner and
aims to combine relevance to the research purpose with economy in procedure. In fact the
research design is the conceptual structure within which research I conducted. Research design is
needed because it facilitates the smooth sailing of the various research operations thereby
making research as efficient as possible yielding maximum information with minimal
expenditure of effort, time and money.
I have adopted descriptive and conclusive research design. Descriptive research is those studies,
which are concerned with describing the characteristics of a particular individual or a group.
Since the aim is to obtain the accurate information about the customer in terms of his interest
towards investment in stock sector. I have used the techniques of questioning customer in order
to know their consumer behavior, their interests, their needs and etc.
It is very important for the sales executive to study the mind of the customer so that the personal
visit would not be a waste of time, money and efforts.
DATA SOURCES:
The researcher can gather primary data, secondary data or both. Secondary data are data that
were collected for another purpose and already exist somewhere. Primary data are data specially
gathered for a specific purpose or for a specific research project. When the needed data do not
exist or are outdated, inaccurate, incomplete, or unreliable, the researcher will have to collect
primary data. Most marketing research projects involve some primary data collection.
PRIMARY DATA:
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I have collected primary data through personal references; LMS i.e. Leads management system
of the company; Customer references.
SECONDARY DATA:
The main source of information for the project was:
Weekly magazine;
Telephone directory
Used leads of the company;
Leads of the other company; i.e. telephone list for tele calling
CONTACT METHOD:
The marketing researchers have four choices to contact the respondents:
Mail,
Telephone,
Personal and
Online. I chose the above techniques to reach to the customer in almost convenient
method.
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MARKETING STRATEGIES OF SHAREKHAN
Marketing strategy?
A strategy that focuses on developing a unique long-run competitive position in the market byassessing consumer needs and the firm's potential for gaining a competitive advantage.
A business approach to marketing its products/ services expresses in broad terms, which
forms the basis for developing a marketing plan.
Marketing starts with market research, in which needs and attitudes and competitors'
products are assessed, and continues through into advertising, promotion, distribution,
and, where applicable, customer servicing and repair, packaging, and sales and
distribution.
The broad marketing thinking that will enable an organization to develop its products and
marketing mixes in the right direction, consistent with overall corporate objectives.
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MARKETING STRATEGIES OF THE COMPANY
NOT INTERESTED TAKE REFERENCES
20
TAKEREFERENCES
TELECALLING
FIX
APPOINTMENT
INTEREST
ED
COMPLETETHE
FORMALITIES
ATTENDAPPOINTMENT
INSTALLTHE
SOFTWARE
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Tele Calling: -
The company uses the tele calling/ phone calling to reach the customer, which are
interested. This is the most important technique to save time and giving demo of the
companies product through making call in order to know the customer interest towards
the product. This is the strategy with which one can motivate customer to go for the
product and etc.
LMS:
21
INTRODUCTION
BROKERAGEEXPLAINATIO
N
WISH/GREETING
S
OBJECTIO
NHANDLING
NEEDGENERATI
ON
PURPOSEOF
CALLING
FIXTHE
APPOINTMENT
CLOSE THECALL
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It is leads management system which means leads are generated by the customer who
want to purchase the product of the company. Company provide facility to the customer
on online to fill the registration form through which the companies executives can
provide more information to the customer.
Yellow Pages:
Yellow pages are used to gather data for making calls so that customer who did not fine
time and are unaware of the product can know about the product. Customers are given
freedom to ask question related to the products this is the technique used to increase the
awareness of the company.
Canopies:
This is the most important technique used by Sharekhan securities to market its product
in different areas of the city, company put their canopies and customer who are willing to
know about the product come forward and provide best of their knowledge. Besides this
companies executives ask customer to fill the questionnaire that tells the company about
the levels of brand awareness. It also increases the product awareness because it isgenerally put at the crowdies places like near main markets, cinema s, hotels, ATM or etc
where people come in good numbers.
Direct Marketing
Sharekhan executives reaches to the customer by fixing appointments with the interested
customer, they describe the details of the product. Executive give demonstration of the
products so that customer can understand better.
Advertising:
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Advertising is the most important tool of increasing awareness of the product and this is
the most widely used technique by the company to tell about the new features and new
lunch by giving briefing of the product.
Sharekhan use banners, distribution of pamphlets, and advertisement in newspapers,
magazines.
References:
Sharekhans strategy is to satisfy the customer in terms of their need by providing them
timely services and knowledge about the trade in equities, mutual funs by giving tips for
investment advises through e-mails or toll free calls for this purpose customers are
provided relationship manager who give investment advise and also make transaction on
their behalf on demand. B satisfying customer executives ask their references that not
only increase the awareness but also increase the good will of the company.
Competitiveness:
The company is innovative and uses the latest technology to improve the product to
fulfill the demands of the customers. Sharekhan make it easy for the customer to make
online transaction of shares. The company is competitive in terms of the product priceand facilities it offers to the customer.
Internet:
Company provides detailed information about the products on Internet so that customer
can know about the product easily and completely.
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UNIQUE OBJECTIVE OF THE COMPANY
200000+ retail customers being serviced through centralized call centre / web solution
60 branches, semi branches servicing affluent/aggressive traders through highly skilled financial
advisors
250 independent investment managers/franchisees servicing 50000 highly valued clients
Strong advisory role through Fundamental & technical research
New initiatives - Portfolio Management Services & Commodities trading.
Dealing in mutual funds.
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TYPES OF THE PRODUCTS
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Its core services are:
Equities, and Derivatives trading on the National Stock Exchange of India Ltd. (NSE),
and Bombay Stock Exchange Ltd. (BSE),
Commodities trading on National Commodity and Derivatives Exchange India (NCDEX)
and Multi Commodity Exchange of India Ltd. (MCX),
Depository services,
Online trading services,
IPO Services,
Dial-n-Trade
Portfolio management services,
Fundamental and Technical Research services,
In addition to this they also provide advisory services and distributions for mutual
funds.
Sharekhan ValueLine (a monthly publication with reviews of recommendations, stocks to
watch out for etc.)
Daily research reports and market review (High Noon & Eagle Eye)
Pre-market Report
Daily trading calls based on Technical Analysis
Cool trading products (Daring Derivatives and Market Strategy)
Personalized Advice
Live Market Information
Sharekhan First Step
Sharekhan First Step
The Sharekhan FirstStep is a brand new program designed especially for those who are new to
investing in shares. All one have to do is open a Sharekhan FirstStep account and they guide
us through the investing process.
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Market Share
Sharekhan enjoyed about 20 per cent market share in Web business (Internet trading) in stock
markets. Three years ago, Web trading showed lot of promise but with the market witnessing a
downturn, there was not much interest among retail customers.
Profits
The share of Web trading constituted 22 per cent of the revenue. As Sharekhan's daily trading
volume was over Rs 200 crore, the share of Web trading at about Rs 40 crore a day was
substantial and a larger part of the volume was coming from day traders.
Features of Trading With Sharekhan:
1. Freedom from paperwork
2. Instant credit and money transfer
3. Trade from any net enabled PC
4. After hour orders
5. Online orders on the phone
6. Timely advice and-research reports7. Real-time Portfolio tracking
8. Information and Price alerts.
FINANCIAL CAPABILITY
Taking in to consideration all its assets and liabilities company is valued at around Rs. 750-850
crores.
HIERARCHY IN Sharekhan
There are 14 main hierarchical levels in Sharekhan:
1) Trainees
2) Super trainees
3) Sales executives
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4) Assistant sales manager
5) Area sales manager : Mr. Chirag Joshi
6) City sales manager
7) Assistant branch manager
8) Branch manager
9) Regional head
10) Cluster head
11) Business head
12) Country head
13) Directors
14) CEO
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CLASSIC ACCOUNT
This account allows the client to trade throuhg our website www.sharekhan.com and is
suitable for the retail investor who is risk-averse and hence prefers to invest in stocks or who do
not trade too frequently.
Features Classic screen serves hot by using SHAREKHAN TRADE TIGER , the software
developed by Share Khan for buying and selling of shares, derivatives and commodities.
Online trading account for investing in Equity and Derivatives viawww.sharekhan.com
Integration of On-line trading, Saving Bank and Demat Account.
Instant cash transfer facility against purchase & sale of shares.
Competitive transaction charges.
Instant order and trade confirmation by E-mail.
Streaming Quotes.(Cash & Derivatives)
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http://www.rediffmail.com/cgi-bin/red.cgi?red=http%3A%2F%2Fwww.rediffmail.com%2Fcgi-bin%2Fred.cgi%3Fred%3Dhttp%253A%252F%252Fwww%252Esharekhan%252Ecom%252F%26amp%3BisImage%3D0%26amp%3BBlockImage%3D0&isImage=0&BlockImage=0http://www.sharekhan.com/http://www.sharekhan.com/http://www.rediffmail.com/cgi-bin/red.cgi?red=http%3A%2F%2Fwww.rediffmail.com%2Fcgi-bin%2Fred.cgi%3Fred%3Dhttp%253A%252F%252Fwww%252Esharekhan%252Ecom%252F%26amp%3BisImage%3D0%26amp%3BBlockImage%3D0&isImage=0&BlockImage=0http://www.sharekhan.com/8/2/2019 Project Sharekhan - Sachin (20)
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Personalized market watch.
Single screen interface for Cash and derivatives and more.
Provision to enter price trigger and view the same online in market watch.
TRADE TIGER :-
TRADE TIGERis an internet-based software application that enables you to buy and sell in an
instant.It is ideal for active traders and jobbers who transact frequently during day's session to
capitalize on intra-day price movement.
Features
Instant order Execution and Confirmation.
Single screen trading terminal.(NSE)
Real-time streaming quotes, tic-by-tic charts.
Market summary (Cost traded scrip, highest calue etc.)
Hot keys similar to brokers terminal.
Alerts and reminders.
Back-up facility to place trades on Direct Phone lines.
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Customer can fasttrade then the classicproduct
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Customer can view 425scripts at a time
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PROCESS ON ACCOUNT OPENING
LEAD MANAGEMENT SYSTEM (LMS)/ REFERENCES
CONTACT
TELEPHONE AND PERSONAL VISIT
APPOINMENT
DEMONSTRATION
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Customer can viewgraphical presentation
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PROCESS ON ACCOUNT OPENING
LEAD MANAGEMENT SYSTEM (LMS)/ REFERENCES
CONTACT
TELEPHONE AND PERSONAL VISIT
APPOINMENT
DEMONSTRATION
AGREE DISAGREE
DOCUMENTATION
FILLING THE FORM
SUBMISSION THE FORM
LOGIN OF THE FORM
SENDIND ACCOUNT OPNING KIT TO CUSTOMER
TRADING
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NO
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DOCUMENTS:
1) Photo ID Proof
2)Residence Proof (Permanent)
Passport
Pan Card
Driving Licence
Voter's ID
MAPIN UIN Card
Passport (valid)
Voter's ID
Driving Licence (valid)
Bank Statement (latest)
Telephone Bill (latest)
Electricity Bill (lates)
Ration Card
Flat Maintanance Bill (latest)
Insurance Policy (latest)
Leave-Licence/Purchase Agreement
3) Residence Proof (Correspondence)
Passport (valid)
Voter's ID
Driving Licence (valid)
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Bank Statement (latest)
Telephone Bill (latest)
Electricity Bill (lates)
Ration Card
Flat Maintanance Bill (latest)
Insurance Policy (latest)
Leave-Licence/Purchase Agreement
4) Two Photographs (Passport size)
ACCOUNT OPENING CHARGES :
* Refundable in case the brokerage is more than Rs. 500/= p.m.
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Proposal for Opening of
Online Share Trading cum Demat A/C
Particulars PLAN I (Charges) PLAN II (Charges)
Account opening charges (inclusive ofdemat a/c)
10,000 /- (fullyrefundable)
250 /- + 5000 /- (5000refundable)
Brokerage : Delivery 0.25% + 0.25% 0.25% + 0.25%Intra-Day 0.05% + 0.05% 0.05% + 0.05%
Service Tax Yes Yes
Turnover Tax Yes Yes
Stamp Duty Yes Yes
Exposure/margin 4 times to 6.6 times 4 times to 6.6 times
Demat Transaction Charges Nil Nil
Research Report on email Nil Nil
AMC (Demat): 1st year Free Free
2nd Year Rs. 400 Rs. 400
No. of Calls on Toll Free Unlimited Unlimited
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*Taxes as per govt.
Sharekhan has tie up with the following banks:
HDFCAxis BankIDBICiti BankIndusInd BankUnion BankICICIOriental Bank Of Commerce
MINIMUM INVESTMENT IN MUTUAL FUND:
INVESTMENT MINIMUM AMOUNT
Mutual Fund (Any Company) 5000
Systematic Investment Plan (Any Company) 500
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CLOSURE OF ACCOUNT
1. CLOSURE ON CLIENTS REQUEST
A DP can close a depository account on receipt of an application in the prescribed format. The
application should be made by the account holder or by all the joint-holders. An account can be
closed only when there is no balance in the account. In case there is any balance in the account
sought to be closed, the following steps are necessary.
(a) Re-materialization of all securities standing to the credit of the account at the time of making
the application for closure; or
(b) Transferring the balance to the credit of another account opened by the same account
holder(s) either with the same participant or with a different participant. Before closing the
account the DP should ensure that all pending transactions have been settled. The request for
closure should be processed only after ensuring that there is unbalance lying in the account.
2. CONSOLIDATION OF ACCOUNT
Some clients could have opened multiple accounts to dematerialize their shares held in multiple
combination and sequence of names. However, they may not need so many accounts after they
have dematerialized their shares and may want to bring all their share holdings into one or fewer
accounts. This can be achieved by using normal off market transfer instruction.
3.CLOSURE BY DP
The DP may also initiate closure of a client's account if the client has defaulted in performing its
obligations laid out in the client-participant agreement. The participant should give sufficient
notice to the client before initiating closure of his account. The notice should clearly state the
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reasons for closure of account. The process of closing account in such a case is the same that of
client-initiated closure.
CLOSURE /SHIFTING OF CLEARING ACCOUNT
A clearing member may transfer its clearing account from one DP to another DP. For this,
simultaneously applications have to be made for closure of account to the earlier DP and for
opening of new clearing member account to the new DP. On receipt of the application, the new
DP forwards the application to the depository for approval and allotment of a new CM-BP-ID.
Once the new CM-BP-ID is allotted, the new DP opens a
New clearing account and intimates the depository about the new client-ID. On receipt of
intimation from the new participant, the depository advises the old DP to close the account. The
old DP then closes the account and intimates the clearing member. All payout of securities,
subsequent to closure of old clearing account, take place in the new account.
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COMPETITOR ANALYSIS
5PAISE.COM
Company Background
Indiainfoline was founded in 1995 and was positioned as a research firm in 2000 e-broking was
started under the brand name of 5 paisa.com. Apart from offering online trading in stock market
the company offers mutual funds online. It also acts as a distributor of various financial services
i.e GOI securities, Company Fixed Deposits, Insurance. Limited ground network, present in 20
Cities
Charges for Demat:
Demat 1st Yr: Rs 250
Pricing for HNI Clients
Demat 1st Yr: Rs 250
KOTAK STREET
Company Background
Kotakstreet is the retail arm of kotak securities. Kotak Securities limited is a joint venture
between Kotak Mahindra Bank and Goldman Sachs, Pricing For Kotak
Demat charges: Rs 22.5 p.m
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INDIABULLS
Company Background
India Bulls is a retail financial services company present in 70 locations Covering 62 cities. It
offers a full range of financial services and Products ranging from Equities to Insurance. 450 +
Relationship Managers who act as personal financial advisors
Demat Charges
: Rs 200 if POA is signed, No AMC for this DP
POA for Clients DMAT
All shares held by client trading with IB are moved to IB Pool Account and the same is shown as
a reflection in client DP account. Charges are levied to move shares from IB pool Account to
client DP account
ICICI Direct
Company Background
ICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is an Affiliate of ICICI
Bank Limited and the Website is owned by ICICI Bank Limited
Demat Charges:
NIL first years
500 per annum
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HDFC SECURITIES
Company Background
The HDFC BANK, HDFC and Chase Capital Capital Partners and their associates promote
HDFC SECURITIES LTD. Pioneers in setting up Dial-a-share services with the largest team of
Tele-brokers
DEMAT ACCOUNT WITH HDFC:-
It is conversion of physical shares into electronic form.
Dematerialization charges
Rs. 3 per share certificate
Rs. 35 per request.
Folio charges are Rs.150 per annum.
Buying and selling transaction through brokers Charges are 0.05% of transaction value
Off market transactions charges - 0.04% of transaction value
CHARGES FOR DEMAT ACCOUNT
First year: NIL,
Yearly charge: 450 per year
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SWOT ANALYSIS
A SWOT analysis focuses on the internal and external environments, examining strengths and
weaknesses in the internal environment and opportunities and threats in the external
environment.
STRENGTHS
Services
As a product Sharekhan is a extremely innovative product with very less cost. Services like
online trading facility, institutional and domestic broking, customized research reports with
almost 80% efficiency etc give Sharekhan an edge over its competitors. Sharekhan provides
other support services that make retail investors more confident and assured with their trading.
SMS alerts (allowing traders and investors to make the most of the available opportunities),
Softer, intangible features like imagery, equity driving preference. Through efficient trading
processes Investors can place their orders directly on the Internet, do all the information seeking
and basically own the investing process.
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Distribution Network
Sharekhan with almost 250 branches spread across 123 cities beefed up by comprehensive online
research, advice and transaction services. In near future expect to make 200000+ retail customers
being serviced through centralized call centre / web solution, 60 branches/semi branches
servicing affluent/aggressive traders through highly skilled financial advisors, 250 independent
investment managers/franchisees servicing 50000 highly valued clients, strong advisory role
through Fundamental & technical research and new initiatives are being made in Portfolio
Management Services & Commodities trading.
Marketing
Sharekhan is a product of SSKI, a veteran equities solutions company with over decades of
experience in the Indian stock markets. Sharekhan does not claim expertise in too many things.
Share khans expertise lies in stocks and that's what it talks about with authority. So when he
says that investing in stocks should not be confused with trading in stocks or a portfolio-based
strategy is better than betting on a single horse, it is something that is spoken with years of
focused learning and experience in the stock markets.
Products
Companys product line is quite flexible in the sense that there is a product for every kind of
investors. Also all the products cover all the loopholes of all the products offered by the other
competitors like low cost, user-friendly online trading services etc.
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WEAKNESS
Customer Satisfaction
As far as customer satisfaction goes Sharekhan has to tighten their socks. Many broking house
catering to heavy investors or small segment of the market can afford to and does provide
relationship managers for their customers, who can understand the trading needs of individual
customers, and advise accordingly. However, a broking house like Sharekhan, which caters to
the mass segment, is in no position to provide relationship managers for individual customers.
Branding
Though the company has a efficient products but large part of investment interested population
does not know the company. The most basic expectation for a trader or investor when one begins
trading is that one must get timely delivery of shares and proceeds from sale of shares. Also ones
cash balances with the broker must be safe and secure. Though this confidence in the broker
comes with time and experience, good and transparent practices also play a major role in
imbibing confidence in traders.
Competition from banks
Most of the banks due to good branding have the faith of the customers of their banking
database. So they enjoy the liberty of huge database and customers find it more reliable to trade
there rather than with a unknown broker. Also banks like HDFC Bank and ICICI Bank have the
advantage of linking the trading accounts of their customers to saving accounts. This makes
trading easier, and at the same time a trader withdraws exactly as much money from his account
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as is needed to complete the trade. Similarly sales proceeds are credited directly to saving
account.
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OPPORTUNITIES
The external environment analysis may reveal certain new opportunities for profit and growth.
Ever-increasing market
After the NSE brought the screen based trading system stock markets are now more secured
which has attracted lot of retail investors and the demand is increasing day by day. This has
resulted in improved liquidity and heavy volumes on transactions. Sharekhan is one of the early
entrants here. As to how much it will roar and how swift it can swoop on the market, the future
alone can answer such queries. Sharekhan has been a mega player and is known for being a
mover of stocks. It is also known for putting big deals through and enjoys good networking with
the FIIs. It has been dynamic enough to move with the times and capture the opportunities that
the market throws up from time to time.
Improving Technology
In country like India technology is always improving which gives the company a chance to keep
on improving their product with time whereas for the small players like local brokers it will be
difficult to keep the same pace as the changing technology. Also with SEBI lying down some
strict guidelines small brokers are finding it harder to retain the customers with no research
department and small capital. The traditional business model is highly dependent on a large
network of sub-brokers, and many established players may not have systems (technology,
customer service, etc.) capable of directly servicing so many retail customers.
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Unfulfilled needs of the customers
With so many competitors offering their products in the market but no one is able to completely
satisfy the customers. Some have the problem of lack of information or some were scared of
volatility of the stock markets. Sharekhan has the opportunity to tap this unsatisfied set of
customers and to make hold in the market. The Internet serves to break all barriers to
information, as it offers an extremely hassle-free investing platform. And, Sharekhan hopes to
fully utilize and capitalize on this platform. This original idea by Sharekhan itself was born out
of the consumer's need for a more transparent, easy to understand and convenient option of
investing in stocks.
Education Level
The education level in the country is improving year after year as far as technology goes. With
that the understanding of the stock market is also increasing and a lot of retail investors are
steeping in the markets which is being shown by increasing volumes, transactions and indices.
THREATS
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New Competitors
A lot of new competitors are trying to enter the market in this bullish run to taste the flavor of
this cherry. This is creating a lot of competition for large players like Sharekhan and it is
creating little confusion in the minds of the customers about the services provided by the broker.
Also many banking firms are entering into the market with huge investment. Competitors like
icici, kotak, hdfc, 5-paisa etc. are posing a lot of threats to the company.
Technology based business
Online trading is totally based on the technology, which is quite complex. Typically, the
technology solution has to start from the Internet front-end (or the screen that you see when you
begin trading). Then it needs to get into the 'middle tier' of risk management systems that assess
data from banks and depository participants (DP), calculate client risk at that point in time, and
give the 'Go/No go' advice to the trade. So technology is a kind of threat because unless until it is
working properly it is good but Internet is not that safe. Though a lot of cyber laws are being
made but not yet executed.
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OBSERVATIONS AND ANALYSIS
DATA ANALYSIS
1. Market share of share-khan securities
COMPANY MARKET SHARE
ICICI 28.00%Sharekhan 24.00%Indiabulls 22.00%5 Paisa 20.00%Others 6.00%
Graphical representation of the above data
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The above data describes the market share of the sharekhan competitors in which share has the
second highest market share among all its competitors heaving customer base of more then or
approximate 4.5 lack.
2. COMPETITORS BROKERAGE COMPARISION
COMPETITORS
BROKERAGE INTRA DAY DILIVERY
ICICI 0.50% 0.75%HDFC 0.40% 0.75%INDIA BULLS 0.10% 0.50%SHARE KHAN 0.10% 0.50%
5 PAISA 0.05% 0.40%
The above is the detail of the companies brokerages in which sharekhan has competitive
brokerage over others in which there reduction of the brokerage depending upon the deal
between client and the customer.
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3. GROWTH RATE IN % YEAR
2.5 2002
3.1 2003
3.6 2004
4 2005
4.5 2006
The above graph shows the growth rate of the company from 2002 to 2006, which shows the
increase in the growth trend.
4. COMPANY MARKET SHARE
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No of customer in lack
ICICI 7
SHARE KHAN 4.5
INDIA BULLS 2.5
5PAISA 2.4
HDFC 1.1
The above graph shows the market share of the customer we are at position no two heaving
customer base of around 4.5 lakh customer, ICICI heaving the maximum and HDFC has the
minimum customer.
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5. Client acquisition ( During the Project of Two month)
Clint Acquisition (Approx.)
Total Data 3000Calls made 2700
Responses 1200Appointment fixed 130Appointment confirmed 45Appointments converted 26
The above graph shows the numbers of customer (appr.)That has reached through the marketing
tools and technique. Approximately out of 3000 clients finally 26 were converted.
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FINDINGS AND RECOMMENDATION
FINDINGS
According to the study of the project report and company experience of two month the analysis
the following findings:
According to graph one icici has the maximum market share and sharekhan is at position
no 2. sharekhan has a competitive product feature and services that makes it possible to
reach at this position.
According to graph two SHAREKHAN has brokerage less then ICICI and HDFC but
Same as INDIABULLS but more then other competitors. Brokerage is the main concern
for the customer thus company provide some negotiation flexibility in brokerage charges,
in terms of brokerage we are better then the ICICI and HDFC company charge less form
the customer for the same purpose and providing better service.
According to graph 3 which shows the competitors growth in terms of the customer
acquisition from 2002 to 2006, Sharekhan has a growth rate of 4% and ICICI has a
maximum Growth rate of 5%
According to Graph no 4, which shows the total no of customer, sharekhan has the
second largest customer base with 4.5lakh among its competitors.
According to the graph 5 it shows the practical work done by me. In this I have made
approximate 3000-4000 calls in two month to the customers and tried to communicate
my product. Out of all these calls I found 2700 numbers correct and rest are not in use.
Near about 1200 customer shows interests towards atleast listening to the product out of
1200 only 130 customer fixed the appointment for further process of the account opening
with sharekhan. , Then out of 130 customers only 45 appointments are confirmed and
visited by me. Out of this total 26 are finally converted and are customer of the company.
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Due to high competition the companies provide same product with different features and
services. With this regard sharekhan is at no one for services, brokerage and follow-up.
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RECOMMENDATIONS
After heaving an experience of two moths in sales of Demat account I would like to suggest the
following things:
Company has an advantage of reach tips for which Sharekhan is known for, the customer
who are new they need relationship managers who will tell them about investment so it
should be provided to al the customer on demand this will lead to customer satisfaction
and will hip to have more references from the satisfied customer.
The company also have the advantage of brokerage charges it need some revision so that
the customer who are locking for the less brokerage can open there account in are
company taking into consideration the different proposal, it can be reduced for a HNI
client.
The company has shown the growth trend and it has reached at no 2 it can move to no
one because it has an advantage of its services. As sharekhan is already tieup with 7
banks for online fund transfer that reduces the paper work for customer and ease in
trading.
The company can increase the customer base if the account opening charges it reduced
from 750 to 400, which will give, boost the competition.
The company should revise the advertising strategy to increase its brand awareness. I
suggest making advertisement on television so that maximum market can be targeted.
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CONCLUSION
After studying the project I would like to conclude that:
Company should focus on customer satisfaction at every levels of the account opening
procedure.
Brokerage can be reduced with the attractive proposals for the HNI.
Relationship manager should be given on the customer demand.
Company should use the tool of advertising for marketing the brand and the product.
Reduction in brokerage would attract the customer of Indiabulls, 5 Paisa and other
competitors heaving less brokerage then us. It would increase the market share or client
acquisition.
The account opening time should be reduce to maximum 5 days because customer losses
the opportunity of investments.
The company shows the positive trend in growth but it can be increased more if it
focuses on building the brand equity.
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RESULT
The given target is 15 clients per month, which is achieved in the specified time frame.
I have converted 20 customers in two months and some follow-ups are given to the senior
sales executives.
The secondary objective is also achieved.
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BIBLIOGRAPHY
BOOKS REFERED:
MARKETING MANAGEMENT - PHILIP KOTLER
RESEARCH METHEDOLGY - C.R KOTHARI
OFFICIAL BROCHURE OF SHAREKHAN SECURITIES PVT LTD.
1.www.nsdl.com
2.www.sharekhan.com
3.www.hdfc.com
4.www.nseindia.com
5.www.icicidirect.com
6.www.kotaksecurities.com
7.www.indiabulls.com
8.www.indiainfoline.com
9.www.google.co.in
http://www.nsdl.com/http://www.nsdl.com/http://www.sharekhan.com/http://www.sharekhan.com/http://www.hdfc.com/http://www.hdfc.com/http://www.nseindia.com/http://www.nseindia.com/http://www.icicidirect.com/http://www.icicidirect.com/http://www.kotaksecurities.com/http://www.kotaksecurities.com/http://www.indiabulls.com/http://www.indiabulls.com/http://www.indiainfoline.com/http://www.indiainfoline.com/http://www.google.co.in/http://www.google.co.in/http://www.nsdl.com/http://www.sharekhan.com/http://www.hdfc.com/http://www.nseindia.com/http://www.icicidirect.com/http://www.kotaksecurities.com/http://www.indiabulls.com/http://www.indiainfoline.com/http://www.google.co.in/