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³Estimation of market potential with

Special reference to INDIAN

INFOLINE

A report on the project undertaken at

INDIAN INFOLINE.

Submited in partial fulfilment of Bachelor of Business

Administration

Submitted to

University of Rajasthan

2011-2012

Submitted by Supervised by

Rajat Kumar Shandilya Mr. Yogesh Sharma

Enrollement no.09/20719 Asstt. Professor

Department of Management Studies

Arya College of Engineering & IT

Kukas , Jaipur

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PERFACE

The BBA curriculum has been designed to provide to the future

manager ample particular exposure to the business world. The summer training is necessary part for the fulfillment of BBA degree course. It

helps the students to gain knowledge about various aspects to the

industry, emphasizing on the development of skills as analyzing and

interpreting practical problem through application of concept and theory.

The researcher has conducted his research in INDIAN INFOLINE

ltd. At Ajmer.

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Acknowledgement:

I am very much thankful to our Dean of EIILM Mr. R.P Banarjee because he

provides me for doing the Summer Internship Programmed and its only for him I

have got the opportunity to know about the real corporate world with the help of the

company India Infoline Ltd., my internal guide Mr. Chandrajyoti Chakraborty helpedme a lot to prepare my project and I have got all the important guidelines regarding

of my projects from him and my external guide Mr .Samiran Seal he has helped me a

lot to collect all the information about the company and he is the only guy who told

me that in which area I should go actually for my field work and its only because of

him I can be able to know about market a little bit and Mr.Pratap Kr. Paul , Mr. Arvind

Bhagat these two person also helped me during my Training programmed and they

helped me to know about the practical market scenario . I end this note by taking

responsibility solely for any of the mistakes.

Thanking you

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EXECUTIVE SUMMARY

The India Info line group, comprising the holding company, India Info line

Limited and its wholly-owned subsidiaries, straddle the entire financial services

space with offerings ranging from Equity research, Equities and derivatives trading,

Commodities trading, Portfolio management Services, Mutual Funds, Life Insurance,

Fixed deposits, Govt. bonds and other small savings instruments to loan products

and Investment banking. India Info line also owns and manages the websites

www.indiainfoline. Command www.5paisa.com The Company has a network of 976

business locations (branches and sub-brokers) spread across 365 cities and towns.

It has more than 800,000 customers. In today¶s competitive world there are many

goods chasing few customers some are trying it expands their size and share of

existing market. As a result there are loser and winners. Winners are those who

carefully analyze needs identify opportunities and create aloe rich offers for target

customer. The objective of the market research to determine the demand and supply

and use of the product and competitors study so as to get the total market scenarioof the product for analyzing market problem research is needed. A firm can obtained

market research in a number of ways. It can hire market research firm or it can ask

student to design and carry out market research project. These marketing problems

and opportunities if entrust to the student of marketing.Specially when they seek the

same during the project gives opportunities to apply their theoretical knowledge and

managerial knowledge. India infoline.com/5paisa.com is related to sharemarket, it is

equity to caused organization tracing its lineage to SSKL, a veteran solution

company with over 8 decades of experience in the lead in stock market.

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CONTENTS:

S.NO TOPIC PAGE NO

1. INTRODUCTION TO THE INDUSTRY

2. INTRODUCTIOON TO THE ORGANIZATION

3. RESEARCH METHODOLOGY

4. FACTS AND FINDINGS

5. ANALYSIS AND INTERPRETATION

6. SWOT

7. CONCLUSION

8. RECOMMENDATION AND SUGGESTIONS

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9. APPENDIX

10. BIBLIOGRAPHY

INTRODUCTION TO INDUSTRY

The project attempts to estimate the market potential of De-mat and Trading

account, IPO, Mutual Fund&PMS.The project is also deals with the competitive

analysis of other companies. De-mat and Trading account offered by various

companies.

The study was undertaken for identifying potential customer who will be interested in

De-mat account, Trading a/c, PMS, IPO, Mutual Fund. Primary research has been

conducted to collect data from the respondents on the basis of questionnaire.

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INTRODUCTION TO THE ORGANIZATION

India Infoline Ltd. (IIL) is a financial services holding company engaged in thebrokerage and financial services business. The company provides securities related

products, broking, investment management, insurance, banking and institutionalbrokerage products to retail and institutional customers. The company operates insix business segments including Broking, Credit and Finance, Asset Management,Wealth Management, Insurance Distribution and Investment Banking through itsoperating subsidiaries. IIL provides online services through two Internet portals,indiainfoline.com and 5paisa.com, which are information resource centers with ananalysis of Indian business, finance, and investments. The company provides itsservices through a network of 758 business locations including 607 branches and151 franchisees in 346 cities in India. The company¶s key area of operations includesIndia, Singapore, New York and Dubai. The company is headquartered in Mumbai,India.

The company reported revenues of (Rupee) INR 9,624.40 million during the fiscalyear ended March 2009, a decrease of 5.97% from 2008. The operating profit of thecompany was INR 2,194.90 million during the fiscal year 2009, a decrease of 13.49% from 2008. The net profit of the company was INR 1,448.19 million duringthe fiscal year 2009, a decrease of 9.42% from 2008.

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RESEARCH METHODOLOGY

The project started by approaching India Infoline Ltd to know about the market

potential for De-mat account in Kolkata, with reference to the other companiesoperating in the same area.There after some area were according to convenience

where in survey conducted on that area to find out how much market potential of

companies product De-mat account,and also find out what other facilities and

services the target audience wants regarding products.some area was selected from

Kolkata,and the name of the area are north Kolkata, south Kolkata,central Kolkata

areas under the India Infoline Ltd branch at Vaishnue Chember, 5th floor, Room no-

502

6 Bravon Road , Kolkata- 700 001.

The study was deal with market potential of De-mat account and Trading accountoffered by company and PMS,MF,IPO of different companies sales by India Infoline

Ltd. This will be reflected from the question contained in the questionnaire discussed

later in the project report.

a) Sample:

The sample was selected for stock broker for De-mat account; I started

interviewing with stock broker for De-mat account and Trading account.

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b) Description of the sample:

The sample for De-mat account and Trading account all stock broker in north

Kolkata,south Kolkata,central Kolkata.

c) Sample size:Total sample size was restricted to 100 for all segments in thenorth Kolkata, central Kolkata south Kolkata.

d) Tools:

The tool that was used to conduct the study was questionnaire designed by

me , which was mixture of open ended and close ended question. The

questionnaire was designed in a such so as to cover the relating to De-mat

a/c.

e)Method of data collection:

All the data was collected through one to one interview. All the questiondiscussed above were explained to the respondent proper care has been

taken to see that respondent understand the question clearly and answer to in

without any hurry. All the respondent were interviewed at their convenience so

that there is no chance that the interviewer comprehends. The responses

clearly without suffering from any ambiguity.

OBJECTIVE OF STUDY

MAIN OBJECTIVE:-

To know how much potentially has India Infoline LTD of De-mat and Trading

account opening in Kolkata.

OTHER OBJECTIVES:-

To know the current market condition of De-mat and Trading account.

Competitive analysis with other company in Kolkata for this particular segment.

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COMPARITIVE STUDY BETWEEN DIFFERENT BROKERAGE

FIRMS:

A/C opening charge- 799/-

Name of the software used- Sun Java.

Software installation charge- NIL

Maintenances charge- 500/- from 2nd year.

Exposure- 5 times for intraday.

Name of the bank with the help of which customer get the facility of net

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Banking- HDFC, SB I, ICICI, Axis Bank.

Services provided- Equity,IPO,PMS,Derivatives,Mutual Funds.

Brokerage- Delivery-.50% & Intraday-.05%

Transaction Report- Through mail/courier(Free of cost)

Prepaid Scheme- not available.

Types of trading accounts provided- De-Mat a/c, Trading a/c, Margin a/c.

Network- 480 branches in 230 cities.

Margin money- 5000/-

Secrecy- password cannot be accessed through internet.HDFC Securities

Offer the highest level of security such as 128-bit encrypt on and

A/C opening charge-975/-

Name of the software used- not available one can access through net.

Maintenance charge- Rs.450/- from 2nd year.

Exposure- 5 times for margin and 25 times for margin plus.


Banking- ICICI(providing zero balance in saving account)

Services provided- Equity,IPO,Commodities,Insurance,Mutual Funds, GOI

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Bonds, Derivatives, Postal Savings.

Brokerage- intra day-.10%-.15%

Delivery- .4%-.85%

Transaction Report- through Courier(free of cost)


Types of trading accounts provided- De-Mat a/c, trading a/c , saving a/c.

Network- 2124 branches across the countries and 19 foreign branches.

Margin money- Rs.500/-

Secrecy- password provided to the customers and it can be changed by the

Customer only.


Name of the software used- Trader Terminal.

Software installation charge- Nil.

No. of scripts provided by the software- unlimited.

Maintenance charge- Nil.

Exposure- 5 times (intra day) 3 times (delivery).


Banking- HDFC Bank, Axis Bank, ICICI Bank.

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Services provided- Equity,IPO,MF,PMS,Commodities,Insurance,Wealth

Management Services, Mortgages.

DP sells charge- 15 per instruction + service tax.

Brokerage- 0.01% to.05% intraday 0.1% to 0.5% deliveries.

Transaction Report- sms, daily mail, daily courier,


Types of trading accounts provided- De-Mat a/c, Trading a/c , Margin a/c.

Network- 1145 branches and 800000 customers.

Margin money- minimum 2555/-

Secrecy- telephone logger with recorder.


Name of the software used- PIB(Power India Bulls)

Software installation charge- 750/-

No. of scripts provided by the software- unlimited

Maintenance charge- nil

Exposure- 3 times intraday and 8 times delivery.


Banking- HDFC,IDBI,ICICI and Axis Bank.

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Services provided- Equity, Housing Loan, Personal Loan, Insurance.

DP sell charge- 10/-

Brokerage- Intraday-.01% & Delivery-.5%

Transaction Report- Through mail & courier(Free of cost)


Types of trading accounts provided- Cash a/c , Intra a/c, and Margin a/c.

Network- 718 branches and 4500000 customers across the country.

Margin money- NIL

Secrecy- use logger phone so that the broker cannot go beyond their word

A/C opening charge-750/-

Name of the software used- Keats


Maintenance charge- Rs.360/-

Exposure- 4 times of intraday.


Banking- HDFC, AXIS Bank, ICICI Bank, SBI,City Bank,KOTAK.

Services provided- Equity,IPO,MF.

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Brokerage- intraday- .03%-.06% & Delivery-.59%-.98%

Transaction Report- Through mail (free of cost)


Types of trading accounts provide- De-Mat a/c ,Trading a/c, Margin a/c.

Network- 890 branches and 63500 customers across the country.


Secrecy- Log in password changes after 14 days.


Name of the software used- Java


Maintenance charge- 300/-

Exposure- 4 times( For Intraday)


Banking- HDFC, ICICI , AXIS Bank, City Bank, Standard Chartered Bank.

Services provided-

Equities,Derivatives,ebroking,PMS,IPO,Commodities,Depository Services.

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DP sells charge- included in the a/c opening.

Brokerage- intraday- .03% & Delivery-.3%

Transaction Report- Through Courier(Free of Cost)


Types of trading accounts provided- De-Mat a/c, Trading a/c ,Bank a/c.

Network-

5,30,234 customers in over 377 cities and 1200 business locations

Margin money- it is not restricted.

Secrecy- 128-bit SSL technology to ensure the highest security on online

Transactions.


Name of the software used- Java

Software installation charge-NIL

Maintenance charge-Rs.50/-p.a

Exposure- 5 times(For Intraday)


Banking- ICICI bank, AXIS bank, HDFC bank, IDBI.

Services provided- Equity Trading,Derivatives,Forex,Commodity,IPO,MF &

Insurance.

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Brokerage- intraday-.05%-.07%& Delivery-.25%-.40%

Transaction Report- By mail(Free of Cost)


Types of trading accounts provided-

De-Mat a/c ,Trading a/c ,Commodity a/c.

Network- 10000 outlet in5000 different cities and 22 lakh customers.

Margin money- it is not restricted.

Secrecy- Extra Security Features with ³Secuerity Token´ which is the most Secure

and tested technology in the computer world.Customer¶s account is safeguarded

with a unique security number that changes every 32 Seconds.


Name of the software used- Odin


Maintenance charge- 250/- from 3rd year.

Exposure- 20 times for intraday.


Banking- AXIS bank ,ICICI bank, HDFC bank.

Services provided- Equity,Commodities,Insurance,Wealth Management

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Services,Insurance,Investment Banking.

DP sell charge- 8/-

Brokerage- intraday-.03% & Delivery-.3%

Transaction Report- Through mail(Free of Cost)

Prepaid Scheme- Not available.

Types of trading accounts provided- De-Mat a/c, Trading a/c, Margin a/c.

Network- 1837 locations more than 498 cities.

Margin money-50000/- for R-ALLY & R-ALLY Lite.

10000/-for R-ALLY Pro.

Secrecy- Password provided to the customer has to change every after 15 days.


Name of the software used- Java ssn.

Software installation charge- nil

Maintenance charge-

Exposure- 4 times for intraday and delivery both.


Banking- AXIS bank, HDFC bank, UBI, IDBI,City Bank.

Services provided- Equity,IPO,MF,Derivatives,Commodities.

DP sells charge- NIL

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Brokerage- intraday-.05%-.07% & Delivery-.25%-.40%

Transaction Report- Through mail(Free of Cost)

Prepaid Scheme- yes

Types of trading accounts provided- Classic a/c (for sudden user)

Spend Trade a/c(for frequent user)

Network- 510 centers across 170 cities 2,18,000 customers.

Margin money- Rs.5000/-

Secrecy- Security Socket Layer(SSL),a security that the information

Transmitted between customer and agent , given by Version , universally

Accepted World Wide Web. The security encripton level in Share khan is 128 bit.



Maintenances charge- NIL

Exposure- 5 times for intraday and 7 times for delivery.

Name of the bank with the help of which customer get the facility

Of net banking- HDFC Bank, SBI, ICICI Bank.

Services provided- Equity,MF,Commodities,Derivatives,IPO,PMS.

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DP sells charge- 5/-

Brokerage- Intraday-.03% , Delivery-.30%

Transaction Report- Through mail and courier (Free of Cost)

Prepaid Scheme-not available.

Types of trading accounts provided- De-Mat a/c, Trading a/c, Bank a/c.

Network- 500 branches across 85 countries and

450000customers.

Margin money- 650/-

Secrecy- telephone with recorder.


Name of the software used- Odin.


Maintenances charge- 300/-

Exposure- 4 times, and if the person can¶t return money within 5 days then

Extra 15 days he will get and 16% charge will be taken for that.


Banking- AXIS bank, ICICI bank, HDFC bank, SBI.

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Services provided- E broking, PMS, Investment advisory, Wealth

Management Services, Commodity Trading.

DP sells charge- 12/-

Brokerage- intraday-.03% & Delivery- .3%

Transaction Report- Through courier(Free of Cost)

Prepaid Scheme- Not available.

Types of trading accounts provided- De-Mat a/c, Trading a/c , Margin a/c.

Network- 120 branches across 120 cities and 31 regional offices.


Secrecy- Log in ID and Password change on a regular basis and telephone with

recorder.

Findings:

Brokerage is high.

Trading account opening charge should be reduced

Because Geojit and Religare are opening their a/c

Both de-mat and trading by giving 650/-, 450/-.

Securities are not so much reliable, RM can trade

Without taking the permission of the client.

De-mat a/c of Reliance is more flexible in nature

Compare to India Info line in jaipur.

Customer is not very much aware about their

Product.

HDFC, ICICI direct provide their customers three

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Types of account (de-mat a/c, trading a/c, bank a/c)

But IndiaInfoline provide only De-mat a/c and

Trading a/c.

Charged Rs.249 for providing vas sms service to the

Customers.

India info line provide life time facility by giving only

Rs.555, which is very cheap.

Limitation of the project

I have collected all the data¶s by questioning directly to the customers or to the

employee of the brokerage firms, so they may provide wrong information to me.

Most of the customers are not interested to give the answer of all the questions, so it

generally creates a huge problem at that time.

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Analysis

With the globalize economy and immense competition among countries for faster

development of their respective economies, the significance of Equity shares, Mutual

funds and Foreign investment has taken manifold. With a buoyant vibrant and

experienced stock market, India today is looking ahead to surpass China in terms of

Foreign investment and growth prospects. Stock exchange being the barometer of

the economy plays a vital role in showcasing growth of an economy and luring

investment. While studying the role of Stock Market in the context of Indian Capital

Market, I discussed with a few persons who are into stock broking business, and the

information they have provided shows that though the investment and participation of

domestic investors are rising, still, they have not been able to prove themselves to

be as influential as mutual funds and FIIs.

Through this project one can learn about the whole functoning of stock exchange

and one can know that how the shares are listed, what are the brokers,SEBI

guidelines and what is sensex,nse,bse and the way in which the trading is done and

the concept of demat.

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SWOT Analysis

Strengths-

y All India presence

y Well known Brand name

y ISO 9002 Certification

y Got the best broking house award in year 2004

Weakness-

y Lack of awareness among customers.

y Lack of Advertisements.

y Categorization of Customers.

y Technical up gradation.

Opportunities-

y Untapped Market

y Growing Economy

y Dissatisfaction from competitors

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Threats-

y Competitors

y Volatile Market

APPENDIX:

I have made two sets of questionnaires one is for customer and another is for the

employee, and I have collected all the

information on the basis of these questionnaires. These are as follows:-

Questionnaire to the Customers

Name: ___________________________________________________

Ph./Mob.: _____________________

Address:

______________________________________________________________ PIN

Gender: Male Female Email ID:

___________________________________________________

Annual Income: 1 Lakh > 1 Lakh but 3

Lakhs > 3 Lakhs but 5 Lakhs > 5 Lakhs

--------------------------------------------------------------------------------------------

--------------------------------------------------

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1.) Do you have De-mat A/c:

Yes

No

a.) If µYes¶ then which company:

________________________________________

b.) How did you come to know about the company?

News Paper

Radio

TV

Internet

Reference

c.) Why did you choose the company?

Reliable brokerage charge

Good Service

For Information

All of the above

d.) What is the rate of brokerage: Intraday _________

Delivery________

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e.)How much is the maintain charge: Rs.

_____________________

f.) How much your De-mat A/c margin: Rs.

_________________________

g.) What kind of extra facility you want from them:

_______________________________________________________

___

h.)Do you have any De-mat A/c in India Infoline Ltd:

Yes

No

i.) If µYes¶ then the instruments that you have

invested through from India Info line are ±

A) Equity

B) Mutual fund

C) Insurance

D) Commodity

j.) Do you have De-mat A/c with any

Yes

No

k.) If µYes¶, then name of the company:

___________________________________

2.) If µNo¶ then, are you interested to open a De-mat A/c:

Yes

No

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3.) If µYes¶, name of the company/Bank, where you are

interested to open a De-mat A/c:

____________________________________________________________

___

4.) Do you have any companies¶ MF/Insurance:

Yes

No

5.) If µYes¶ then from which company you have brought this thin

BIBLIOGRAPHY:

BOOKS:

1) Research Methodology, written by Uma Sekaran

2) Financial Management, written by I M Pandey.

Websites:

1) www.indiainfoline.com

2) www.google.com

3) www.nse.india.com

4) www.cdsl.com

5) www.nsdl.com

OTHERS:

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