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Stock Market & Depository Services: Stock Market & Depository Services: A Comparative study of working A Comparative study of working

ProceduresProcedures

By: Preeti AggarwalBy: Preeti AggarwalMBA Sem-3 Sec AMBA Sem-3 Sec A

0231590390902315903909

India Infoline Ltd.India Infoline Ltd.

Vision: To be the most respected Vision: To be the most respected company in the financial services company in the financial services space space

►Founded in 1995 by Mr. Nirmal Jain Founded in 1995 by Mr. Nirmal Jain (Chairman and Managing Director). (Chairman and Managing Director).

►Has a network of over 2,500 business Has a network of over 2,500 business locations spread over more than 500 locations spread over more than 500 cities and towns across India.cities and towns across India.

India Infoline Group India Infoline Group subsidiariessubsidiaries

► India Infoline Media and Research India Infoline Media and Research Services LimitedServices Limited

► India Infoline Commodities LimitedIndia Infoline Commodities Limited► India Infoline Marketing & ServicesIndia Infoline Marketing & Services► India Infoline Investment Services India Infoline Investment Services

LimitedLimited► IIFL (Asia) Pte LimitedIIFL (Asia) Pte Limited

Company StructureCompany Structure

Function & Purpose of Stock Function & Purpose of Stock MarketMarket

► Important sources for Important sources for companiescompanies to raise to raise money. money.

► To facilitate the exchange of securities To facilitate the exchange of securities between buyers and sellers, thus, reducing between buyers and sellers, thus, reducing the risks of investing.the risks of investing.

► Price of Price of sharesshares and other assets is an and other assets is an important part of the dynamics of economic important part of the dynamics of economic activityactivity

► Exchanges also act as the clearinghouse for Exchanges also act as the clearinghouse for each transaction.each transaction.

Behaviour of Stock MarketBehaviour of Stock Market

► Excessive optimism (euphoria):-drive prices Excessive optimism (euphoria):-drive prices unduly high unduly high

► Excessive pessimism:- drive prices unduly Excessive pessimism:- drive prices unduly low.low.

► According to the According to the EEfficient Market Hypothesisfficient Market Hypothesis (EMH), only changes in fundamental (EMH), only changes in fundamental factors(profits,dividends etc), ought to affect factors(profits,dividends etc), ought to affect share pricesshare prices. .

► Share prices can fall dramaticallyShare prices can fall dramatically► Psychological factorsPsychological factors may result in may result in

exaggerated stock price movementsexaggerated stock price movements..

Investment strategiesInvestment strategies

► Fundamental analysisFundamental analysis :- analyzing :- analyzing companies by their companies by their financial statementsfinancial statements found in found in SEC FilingsSEC Filings, business trends, , business trends, general economic conditionsgeneral economic conditions . .

► Technical analysisTechnical analysis :- :- price actions in price actions in markets through the use of charts and markets through the use of charts and quantitative techniques to attempt to quantitative techniques to attempt to forecast price trends regardless of the forecast price trends regardless of the company's financial prospects.company's financial prospects.

The role of stock exchangesThe role of stock exchanges

► Raising capital for businesses Raising capital for businesses ► Mobilizing savings for investmentMobilizing savings for investment► Facilitating company growthFacilitating company growth► Redistribution of wealth Redistribution of wealth ► Creating investment opportunities for small Creating investment opportunities for small

investorsinvestors► Government capital-raising for development Government capital-raising for development

projects projects ► Barometer of the economyBarometer of the economy

What Causes Prices To What Causes Prices To ChangeChange ? ?

1. Share prices change 1. Share prices change because of because of supply and demandsupply and demand. .

► more people buy a stock (demand)- more people buy a stock (demand)- price moves up price moves up

► more people sell a stock (supply)-more people sell a stock (supply)-price would fall.price would fall.

2. Earnings 2. Earnings

Objective of StudyObjective of Study

► To impart a comparative and analytical study To impart a comparative and analytical study of the depository and online share trading of the depository and online share trading services of Depository Participants in India. services of Depository Participants in India.

► Basic understanding of the manner in which Basic understanding of the manner in which the DPs function in this competitive the DPs function in this competitive environment.environment.

► To know about the products and services To know about the products and services offered by DPs.offered by DPs.

► To know the entire process of share To know the entire process of share transactions and account openings. transactions and account openings.

► To analyse the brokerage charged by the To analyse the brokerage charged by the various DPs. various DPs.

RESEARCH METHODOLOGYRESEARCH METHODOLOGY► Research DesignResearch Design The research design used in the study is descriptive in nature.The research design used in the study is descriptive in nature.

► Data CollectionData Collection The data collected for this study is The data collected for this study is secondary datasecondary data and the sources used and the sources used

for collecting this secondary data are:for collecting this secondary data are:1.1. MagazinesMagazines2.2. Company’s websiteCompany’s website3.3. InternetInternet4.4. JournalsJournals5.5. BooksBooks

► Method of Data CollectionMethod of Data Collection The method used for collecting the data is Secondary.The method used for collecting the data is Secondary.

► LimitationsLimitations1.1. Time constraintTime constraint2.2. Company people were reluctant in giving information.Company people were reluctant in giving information.3.3. Customers were not giving much information.Customers were not giving much information.

AnalysisAnalysis

0

100

200

300

400

500

ICICI INDIA BULLS

AMC and Debit Charges

AMC

Debit charges

Dematerialisation and Rematerialisation charges

0102030405060

Dematerialisation

Rematerialisation

Pledge creation and Closure charges

050

100150200250300

Pledge Creation

Closure charges

FINDINGSFINDINGS

► India Infoline’s AMC and debit charges are competitive in India Infoline’s AMC and debit charges are competitive in nature as compared to other DPs.nature as compared to other DPs.

► The Dematerialisation and Rematerialisation charges of India The Dematerialisation and Rematerialisation charges of India Infoline are comparatively less as compared to other DPs Infoline are comparatively less as compared to other DPs which give them an advantage over its competitors.which give them an advantage over its competitors.

► The Pledge creation charges of India Infoline are The Pledge creation charges of India Infoline are comparatively same as other DPs but the pledge closure comparatively same as other DPs but the pledge closure charges are very high which is a disadvantage for India charges are very high which is a disadvantage for India Infoline.Infoline.

► All the other DPs are charging less for all the charges as All the other DPs are charging less for all the charges as compared to India Infoline.compared to India Infoline.

SUGGESTIONSSUGGESTIONS

► As India Infoline is charging very high for Pledge As India Infoline is charging very high for Pledge closure so it should decrease it upto some extent so closure so it should decrease it upto some extent so that it can increase its market share and stay that it can increase its market share and stay competitive.competitive.

► Kotak Securities and India Infoline are charging Kotak Securities and India Infoline are charging same for dematerializing and rematerializing. So in same for dematerializing and rematerializing. So in order to capture more customers, India Infoline order to capture more customers, India Infoline should decrease their price a little.should decrease their price a little.

► The DPs should keep their prices low to stay The DPs should keep their prices low to stay competitive in the market.competitive in the market.

► Few customers face problems in operating the Few customers face problems in operating the software, so timely training should be given to software, so timely training should be given to them.them.

CONCLUSIONCONCLUSION

India Infoline needs to improve on the India Infoline needs to improve on the charges that they are charging and charges that they are charging and should also increase their promotional should also increase their promotional activities so as to get an advantage activities so as to get an advantage over its competitors over its competitors

BIBLIOGRAPHYBIBLIOGRAPHY► BOOKS:-BOOKS:-1. “Kothari C.R1. “Kothari C.R” Research Methodology, Wishwa Parkashan, 2nd Edition ” Research Methodology, Wishwa Parkashan, 2nd Edition ( Page no. 39-67 & 117-157).( Page no. 39-67 & 117-157).2. “Gupta S.P” 2. “Gupta S.P” .Statistical Methods, 30th edition, “Sultan Chand & Sons” .Statistical Methods, 30th edition, “Sultan Chand & Sons” (Page no .378-418) (Page no .378-418) 3. “Hooda R.P”3. “Hooda R.P”, Statistics for Business and Economics, 10th Edition, Statistics for Business and Economics, 10th Edition

► WEBSITES:-WEBSITES:- http://www.icicibank.com/pfsuser/aboutus/overview/overview.htm http://www.icicibank.com/pfsuser/aboutus/overview/overview.htm http://www.hdfcbank.com/aboutus/general/default.htmhttp://www.hdfcbank.com/aboutus/general/default.htm http://www.utibank.com/Banking/bank.asp http://www.utibank.com/Banking/bank.asp http://www.centurionbop.co.in/site/aboutus.html http://www.centurionbop.co.in/site/aboutus.html http://www.kotak.com/Kotak_GroupSite/aboutus/default.htm http://www.kotak.com/Kotak_GroupSite/aboutus/default.htm http://www.indiainfoline.comhttp://www.indiainfoline.com http://www.5paisa.comhttp://www.5paisa.com http://www.nseindia.comhttp://www.nseindia.com ► JOURNALS & MAGAZINESJOURNALS & MAGAZINES:-:- SEBI Bulletin, August 2006, Volume 4SEBI Bulletin, August 2006, Volume 4 Economic Survey 2005-06Economic Survey 2005-06 Marketing ResearchMarketing Research RBI BulletinRBI Bulletin

► OTHER REFRENCESOTHER REFRENCES:-:- Books of NSDL (Operations Module)Books of NSDL (Operations Module)

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