Summer Trainning Report Organizational Study of Angel Broking (p) Ltdand Present and the Future Scenario of E-broking

EXECUTIVE SUMMARY

As a partial fulfillment of my MBA curriculum I have undergone six weeks

summer training at “ANGEL BROKING.” I have done my summer training project

at Jamnagar branch from 1st of May to 15th of June.

The Angel Group has emerged as one of the top 5 retail stock broking

houses in India, having memberships on BSE, NSE and the two leading

commodity exchanges in the country i.e. NCDEX and MCX. Angel Broking Ltd is

also registered as a depository participant with CDSL. Angel has exceeded

customer’s expectations by providing world-class service. I was placed under the

marketing and sales department and I have learned a lot in carrying out

marketing task for Angel Broking. I have done marketing in retail client segment.

I have also carried out a project during summer training. The title of my

project is

“Present and the Future Scenario of e-Broking in Jamnagar city area”

The questionnaire was used as data collection instrument and both open ended

and close ended type of questions were used as per the requirement. From the

survey it was found that currently the concept of e-Broking is not so prevalent in

the market, but its future can be made bright by properly conveying its benefits.

More details about the project are available in later part of this report.

1

INTRODUCTION TO ANGEL

In a shot span of 18 years since inception, the Angel Group has emerged as one

of the top five retail stock broking houses in India, having membership of BSE,

NSE and the two leading Commodity Exchanges in the country i.e. NCDEX &

MCX. Angel Broking is also registered as a Depository Participant with CDSL.

The group is promoted by Mr. Dinesh Thakkar, who started this business as a

sub-broker in 1987 with a team of 3. Today the angel group is managed by a

team of 1937 direct employees and has a nation wide network comprising of 12

Regional hubs, 64 branches and 2759 sub brokers & business associates. Angel

is 100% focused on retail stock broking business unlike any other larger national

broking house. The group currently services more than 226030 retail clients.

Angel habitually generates value added features without the cost burden being

passed on to the clients as they strongly believe that better understanding of

client’s needs and wants is their top priority. Their e-broking facility is one such

effort, which gives the client a platform to access state of the art trading facility at

the click of a button.

Angel has always strived for delivering customer delight and developing strong

long term bonds with its clients as well as channel partners. Angel thrives on a

vision to introduce new and innovative products and services constantly.

Moreover, Angel has been among the pioneers to introduce the latest

technological innovations and integrate them efficiently within its business.

2

The mainline Business Activities of Angel are :

Stock Broking

Derivatives Trading

Online Trading

Wholesale debt market operations

Depository services with CDSL

Fundamental Research Services

Technical Research Services

IPO Distribution and Advisory

Mutual Fund Distribution and Advisory

Commodities Trading

3

COMPANY’S PROFILE

NAME OF THE COMPANY: ANGEL STOCK BROKING LTD.

REGISTERED OFFICE: G-1, Akruti Trade Centre,

Road No. 7, MIDC Marol,

Andheri (E),

Mumbai – 400 093

BRANCH OFFICE: ANGEL STOCK BROKING LTD.

Indraprastha Building, 2nd Floor,

Block No : 228-229

Pancheshwar Tower Road,

Jamnagar- 361001

FORM OF ORGANISATION: Private Sector

PROMOTER: Mr. Dinesh Thakkar

ACCOUNTING YEAR: 1ST April to 31st March

4

ORGANIZATIONAL STRUCTURE

MANAGEMENT TEAM

Chairman and Managing Director : Mr. Dinesh Thakkar

Chief Investment Officer : Mr. Rajen Shah

5

Senior Research Analyst : Mr. Phani Sekhar

Table 1

ANGEL GROUP COMPANIES

  Angel Broking Ltd.   Member on the BSE Depository Participant with CDSL

  Angel Capital & Debt Market Ltd.   Membership on the NSE Cash and Futures & Options Segment

  Angel Commodities Broking Ltd.   Member on the NCDEX & MCX

  Angel Securities Ltd.   Member on the BSE

  Angel Infin Pvt. Ltd.   NBFC registered with RBI

  Mimansa Systems Pvt. Ltd.   For Software Development

(Source : www.harmony.angeltrade.com)

REGIONAL OFFICES

Ahmedabad

Bangalore

Chennai

Hyderabad

Indore

Jaipur

Kolkata

Mumbai

New Delhi

Pune

Rajkot

Surat

6

The Unique Features of Angel :

Instant Online Fund Transfer with Multiple Banks

BSE, NSE, F & O, MCX and NCDEX in a single screen

7

Efficient uptime and greater stability for high speed

Customized solutions as per client’s requirements

Personalized Advisory services for HNI clients

Call and Trade at 70 branches across the country

State of the art Technology and Infrastructure

DP with CDSL with automated pay-in facility

Instant Online technical support for clients

8

ANGEL’S LOGO

9

ANGEL’S VISION

10

ANGEL’S BUSINESS PHILOSOPHY

11

INVESTMENT PHILOSOPHY

“Given the client’s risk profile, maximize performance by adhering to disciplined

investment approach backed by quality research.”

Angel’s investment philosophy is based on two key attributes:

1. Wealth Creation :

The creation of Wealth can be categorized as :

Having money work for client

Having others work for client

Client Working for Money

2. Wealth Preservation :

As wealth grows, focus is shifted to striking a balance between asset creation

and preservation. Wealth preservation applies to day-to-day financial life which

includes managing cash flow and overall risk management.

12

OBJECTIVE OF ANGEL INVESTMENT PHILOSOPHY

Angel’s objective at all time is to protect and then grow client’s portfolio.

The primary aim is to avoid the thoughts of the declining market and not

necessarily out-perform the rapidly rising market but to consolidate both the

periods, which would result in out-performing the market along with wealth

creation.

Angel’s investment philosophy is outlined by in-depth focus on a disciplined long

term investment approach in potential multi-baggers.

The 3 important tenets that we look for in any stock are:

Consistent, steady & sustainable returns

Margin of safety

Low volatility

13

PRODUCTS AND SERVICES DETAIL

REPORTS :

Market Outlook at 9:15 a.m. :A crisp pre-market report that arms the client with sensitive

information before the opening bell. Key corporate developments, policy

announcements, geo-political news and views are analyzed for their

impact on the market.

Technical Report at 6:00 p.m. :

This report analyzes trading pattern, historical background, market

positions of key stocks and offers short term (1 to 5 days) as well as

medium term (10 to 20 days) view. Tracking individual scrips as well as

the Sensex and Nifty, its insights cut through the market maze.

Derivative Analysis Report at 9:15 a.m. :

The report provides information on FII activity in derivative

segment, change in open interest put call ratio, cost of carry of stock and

index based derivative products. The derivative analysts use the above

tools to project movements during the next trading sessions.

14

FUNDAMENTAL RESEARCH SERVICES :

The Sunday Weekly Report :

This weekly report is the ace of all reports. It offers a

comprehensive market overview and likely trends in the week ahead. It

also presents few top picks based on an in-depth analysis of technical and

fundamental factors. It gives short term and long term outlook on these

scrips, their price targets and trading strategies. Another unique feature of

this report is that it provides an updated view of about 70 prominent stocks

on an ongoing basis.

The Industry Watch :

This report provides an in-depth analysis of specific industries

which are likely to outperform others in the economy. It analyzes their

strengths and weaknesses and ascertains their future outlook. The final

view is arrived at after thorough interaction with industry experts. Also

comparative performances of various companies in the sector are

evaluated and top picks are recommended.

Stock Analysis :

Angel’s stock research has performed very well over the past few

years and the Angel Model Portfolio has consistently outperformed the

benchmark indices. The fundamentals of select scrips are thoroughly

analyzed and an actionable advice is provided along with investment

rationale for each scrip.

15

Flash News :

Key developments and significant news announcements that are

likely to have an impact on markets / scrips are flashed live on trading

terminals. Flash news keeps the market participants updated on an online

basis and helps them to reshuffle on their holdings

TECHNICAL RESEARCH SERVICE :

Nifty Tracker :

Nifty Futures is the most traded instrument with highest volumes in

F & O and excellent liquidity. The team tracks the Nifty Future and

generates calls based on unique trading system which is a result of their

focused research over the past few years. The objective is to generate

positive returns for traders who are looking for a high risk / high reward

product.

Online Chart :

An online forum to help clients, specifically day traders in judging

the directions of the market and stocks which are in the limelight.

Intraday Calls :

For day traders, Angel provides intra-day calls with entry, exit and

stop loss levels during market hours. These calls are flashed on their

terminals. Their analysts continuously track the calls and provide

recommendations according to the market movements.

Position Calls :

Angel’s “Position Trading Calls” are based on thorough analysis of

the price movement in select scrips. These calls are for a 10-15 day time

span with stop loss and target levels. These calls are flashed on their

terminals during market hours.

16

Derivative Strategies :

Their analysts take view on the Nifty and select stocks based on

the derivatives data and technical tools. Suitable “Derivative Strategies”

are devised, which are flashed on their terminals and published in their

reports.

Futures Calls :

A customized product for HNIs to help them trade with leveraged

position; wherein clients are advised on the stocks with entry, exit and

stop loss level for short term benefits. Over and above this, financial

status of the calls is monitored at all times.

INVESTMENT ADVISORY DESK :

At Angel, they have a dedicated Investment Advisory Desk :

To help manage client’s equity portfolio and create wealth

To help client understand their risk profile and define investment goals realistically

To minimize client’s risk and maximize their returns

To help client decide what to buy / sell and when to buy / sell

To help client’s understand macro-economic trends and sectoral / company developments

To help client restructure their portfolio based on sound research

17

PORTFOLIO MANAGEMENT SERVICES :

Angel offers discretionary PMS to investors in order to assist them in

managing their funds amidst continuous changing market dynamics and

increasing complexities of investing. Investing in equity market requires in-

depth knowledge and thorough analysis coupled with clear understanding of

domestic and international economies. Investors need the services of an

expert to manage their funds and deliver good returns in diverse market

conditions. Continuous wealth creation with and emphasis on capital

preservation is essential in today’s complex markets.

In order to systematically diversify the holdings of clients across varied

sectors and with and intention to give them handsome returns, Angel devised

the concept of the Model Portfolio :

Angel came out with its first Model Portfolio in August 2002

Since then it has come out with Model Portfolios which have

consistently outperformed the Sensex YOY

In fact the latest model portfolio by Angel has successfully

outperformed the Sensex by a whooping 80%

Angel’s Portfolio Advisory Team had a successful track record of

assisting its clients in managing their portfolios for over 4 years.

The Portfolio Management Process starts with understanding each

investor’s risk appetite and return expectations. The Portfolio Management

Team not only draws support from Angel’s in-house research team for new

investment ideas but also has its own stocks picking by adopting bottom up

research.

18

Salient features of PMS schemes :

100% discretionary scheme

Time horizon : 12-18 months

Wealth Creation at minimum risk

19

PMS Schemes @ Angel

Scheme 1: Angel OYSTER

Description:

The main objective of the scheme is wealth generation by delivering

superior returns over long term through investments and equity related

instruments.

Investment Strategy:

To generate wealth on consistent basis rather than outperform by

taking higher risk.

Logic works well and thus will be given weight age along with

financials

Early identification of stocks to ride through the entire investment

cycle

Timing of investment is important to generate superior returns

Bottom –up approach

20

Parameters Driving Investment Decision:

Blend of growth and value stocks

Investments in companies regardless of market capitalizations

Keen selection of stocks based on potential for value unlocking

based on key events

Focus on companies which display

Scalable business potential

Large market opportunity

Beneficiary of favorable economic cycle

Valuation at steep discount to asset value

Sectoral Composition:

May include under- researched companies

Portfolio could invested in liquid funds

Investor Profile:

Safety of capital will be of utmost importance

The scheme would be suited for investors having medium to long

term perspective (i.e. 12-18 months)

21

Scheme 2: Angel BLUE- CHIP

Description:

The objective of the scheme is to generate capital appreciations in the

medium to long term through investments in equities and equity related

instruments comprising predominantly large cap companies.

Investment Strategy:

The scheme will seek to achieve returns through brand based

participants in equity markets by creating a diversified equity

portfolio. The portfolio will be overweight on large cap companies.

The portfolio strives at all time to achieve an 80% allocation to large

cap companies.

The allocation of sectors and stocks in the portfolio may be

dynamically structured in tune with changes in broader market

conditions

22

Parameters Driving Investment Decision :

Overweight on large cap stock. However quality mid cap stocks may

also be considered for investment.

Portfolio to comprise of a combination of growth & value stocks.

The portfolio strives to limit the exposure to any sector to less than

25% of the portfolio size

The portfolio strives to limit the exposure to any stock to less than

10% of the portfolio size

The allocation and composition of medium capitalized stocks to vary

based market conditions

Investor Profile:

The scheme would be suited for investors with low to moderate risk

appetite

The scheme would be suited for investors having medium to long

term perspective.

23

Benefits of Angel PMS :

Understanding risk : At Angel, utmost emphasis is given to understanding

the risk profile of an investor.

Periodic Evaluation : Periodic evaluation of the Model Portfolio is carried

out and market movements are cashed upon.

Administrative Convenience : Angel focuses on providing hassle free

administrative / operational support and customized services.

Transparency : Regular statements and updates as well as online access

to information required for investment.

Regular Analysis and Monitoring : Investments undergo regular monitoring

and analysis to check any deviation from the structured goal ensuring

creation of wealth over a period of time.

Professional Management : PMS is provided to professional management

by experts on equity with an aim to optimize returns.

Angel PMS – Ideal For :

24

Portfolio Management Services from Angel are essential for investor

who needed

Long term wealth generation

Personalized service

Investment opportunities in Indian equities

Fundamental research based investment decisions

In essence, all investor who have faith and belief in the Indian growth story

and robust corporate performance would find Angel PMS most suitable to

meet their objectives.

25

ANGEL GOLD:

In a volatile market it is very difficult for an investor to pick up value stocks

which will give decent returns in the long run. We at Angel Gold realize your need

for a professional financial advisor and hence are here to assist you in making

wise and profitable decisions.

We strongly believe that right decisions taken at the right time are always

beneficial and that's why our entire research team comprising of 12 sector

specialists along with our research head will understand your need, return

expectation, risk profile and time horizon to design your portfolio accordingly.

This portfolio will be tracked regularly and our efforts would be to optimize your

returns in the long run.

Features of the Angel Gold:

A premium service for clients who need professional guidance on long term

investments.

Minimum fund / portfolio of Rs. 1 lac and maximum of Rs. 4 lac eligible for

Angel Gold.

Appropriate risk profiling before taking investment decisions

Periodic group meetings and seminars in branches.

Monthly Newsletter from the desk of “Angel Gold” .

Browser based back-office software.

26

COMMODITIES SERVICES

Agro Tech Speak:

Mainly gives the investors insight into and a forecast for agro

commodities viz. pulses (urad channa etc); reports on oil complex

(soyabean castor etc.) along with spices with reports on kapas guar seed

Call Evaluation:

A report designed for evaluating the calls given by the angel

research team where the reports are classified in 3 broad categories viz.

achieved , triumph, not achieved along with the trade recommendations

Commodities Tech Speak:

This report mainly equips the investors dealing in MCX segment in

commodities like gold, silver, crude oil, copper etc with the market insight

and expert recommendation on the trading strategies

27

Angel Commodity Advantages :

Top Quality Research :

o Professionally qualified analysts with rich industry experience

o Research on 25 agro commodities, precious metals, base metals,

energy products and polymers

e-Broking :

o Single screen customized market watch for MCX / NCDEX with

BSE / NSE

o Streaming quotes and intra day calls

DP Facilities in Commodities Trading on CDSL

24x7 Online Back-office

Efficient Risk Management

Competitive Brokerage Rates

28

MUTUAL FUND DISTRIBUTION AND ADVISORY :

To enable clients to diversify their investment in the right direction, Angel

Broking has added another product in its range with mutual funds :

Customized investment solutions based on specific individual’s financial

goals aligned with client’s risk appetite.

Access to in-depth research and proper selection from diversified funds

based on client’s preferred criteria.

Customized reports at desired frequency.

Rating and Rankings of all Mutual Funds from in-house expert analysts.

Current and historical performance of different funds enabling

comparisons.

News and alerts for client’s Mutual Fund Portfolio and performance

tracking with watch lists.

Online Mutual Funds applications (NFO or existing) / Online order status

tracking / Online updation of unit holdings at latest NAV / Online dividend

pay out and re-investment facility.

Single point customer query handling.

29

IPO DISTRIBUTION AND ADVISORY :

Wide network of branches for better customer reach.

Dedicated Research Teams generating sector related reports.

Ease in investing with informed decision making.

Advisory Help Desk for all IPO related queries.

30

ONLINE TRADING :

Specially designed for the net savvy traders and investors who prefer

operating from their home or office through the internet. The investor can

access state of the art Technology with three different e-broking products and

voila trading on BSE, NSE, F & O, MCX and NCDEX.

ONLINE PRODUCTS

ANGEL DIET:

Application based product for Traders.

ANGEL ANYWHERE:

Application based product for Traders with Charts.

ANGELTRADE:

Browser based product for Active Investors.

31

Angel Diet :

o Application based ideal for traders

o User friendly and simple navigation

o Robust and speedier execution of trade

o BSE, NSE, F & O, MCX and NCDEX

32

Angel Trade :

o Browser based for investors

o No installation required

o Advantages of mobility

o Trading as simple as internet surfing

o BSE, NSE, F & O, MCX and NCDEX

33

Angel Anywhere :

o Application based ideal for traders using technical tools

o Intra day / Historical charts with various indicators

o BSE, NSE-Cash & Derivatives

34

DEPOSITORY PARTICIPANT SERVICES :

Angel Broking Ltd. is a DP Service provider through CDSL. They offer

Depository Services to create a seamless transaction platform to execute

trades through Angel Group of Companies and settle these transactions

through Angel Depository Services.

Hassle free automated pay-in of client’s sell obligations by Angel Broking

Ltd. / Angel Capital & Debt Market Ltd.

Instant disbursement of non-cash benefit like bonus and rights

Wide Branch coverage

Personalized / Attentive services of trained and dedicated staff

Centralized billing and Accounting

Acceptance and Execution of instructions on “fax”

“Zero” upfront payment and lowest transaction charges

Daily statement of transactions and holding statements on e-mail

No charges for extra transaction statement and holding statement

All in one combined Monthly “Bill-cum-Transaction-cum-Holding-cum-

Ledger” statement

35

ACHIEVEMENTS OF ANGEL

Major Volume Driver Award for 2004-2005 by BSE

Major Volume Driver Award for 2005-2006 by BSE

36

SWOT ANALYSIS

STRENGTHS:

Understanding the needs of a channel partner and retail investor very well.

Deriving inspiration from their vision of providing the best value for money

to their clients.

Strict adherence to compliance norms.

Timely research based advice to their clients.

50 member research / advisory team comprising of experienced

fundamental and technical analysis, sector specialties, derivative strategist

and commodity analysts

Strong Communication Network.

Good Image and strong back ground.

WEAKNESSES:

High Employee Turnover.

No lifetime facility for Demat A/c

No funding facility

OPPORTUNITIES:

To get into the segment of such investors who are less risky.

Marketing at rural and semi-urban areas.

THREATS:

Increasing number of local players.

Past image of Stock market

37

INDUSTRY DETAIL

THE HISTORY OF THE INDIAN CAPITAL MARKET

The history of Indian capital market back to the 18th century when east India

company securities were traded in the country. Until the end of the 19th century,

Securities trading were unorganized and the main trading centers were Bombay

and Calcutta. Of the to Bombay was the chief trading centre were in bank shares

were the major trading stock

Trading was at that time limited to a dozen brokers their trading place was under

a banyan tree in front of the Town hall Bombay. These stock brokers organized

an informal association in 1875- native shares and stock broker’s association

Bombay. The stock exchanges in Calcutta and ahemedabad also have trading

centre came up later. The Bombay stock exchange was recognized in may 1927

under the Bombay securities contract control act 1925.

The capita market was not well organized and develops during the British rule

because the British government was not interested in the economic growth of the

country. As a result many foreign companies depended on the London capital

market for funds rather then on the Indian Capital Market.

In the post independence period also the size of the capital market remained

small. During the first and the second five year plan the government emphasis

was on the development of the agricultural sector and public sector under

takings.

38

In the 1950s speculation became rampant; the stock market came to the known

as satta bazaar. Despite speculation non payment or defaults were not very

frequent. The government enacted the securities contracts act in 1956 to

regulate stock markets. The company’s act 1956 was also enacted.

In 1960 badla came in to existence. Badla provided a mechanism for carrying

forward positions as well as for borrowing funds. Financial institutions such as

LIC and GIC helped to revive the sentiment by emerging as the most important

group investors. The first Mutual Funds of India, The Unit Trust of India came into

existence in 1964.

.

In the 1970s Badla Trading was resumed under the disguised form of “Hand

delivery contracts” this revived the market. July 6th, 1974 when the Government

promulgated the dividend restriction ordinance, restricting the payment of

dividend by companies to 12 % of the face value or 1/3 of the profits of the

companies that can be distributed as computed under section 369 of the

companies act whichever was lower. This led to a slump in market Capitalization

at the BSE by about 20 % over night and the stock market did not open for nearly

a fortnight. A little known entrepreneur, Dhirubhai Ambani, tapped the Capital

Market. The scrip, Reliance Textiles is Still a Hot favorite trading at all stock

exchanges.

The 1980s witnessed an explosive growth of the securities market in India. The

government’s liberalization process, participation by small investors, speculation,

default, Ban of Badla, and resumption of Badla continued. Convertible

debentures emerged as a popular instrument in primary market.

39

The 1990s will go down as the most important decade in the history of capital

market of India liberalization and globalization were the new terms coined and

marketed during this decade. Major capital market scams took place in the

1990s.

The securities scam of March 1992 involving Brokers as well as Bankers was

one of the biggest scam in the history of capital market. In the subsequent years

owing to free pricing, many unscrupulous promoters, who raised money from

capital market, proved to be fly-by-night operators.

The 1991-92 the Indian stock market witnessed a sea change in terms of

technology. Technology brought Radical changes in the trading mechanism. The

Bombay stock exchange was subject to nation wide competition by two new

stock exchange-National Stock Exchange set up in 1994 and over the counter

Exchange of India set up in 1992. The National securities clearing corporation

and National securities depository limited were set up in April 1995 and

November 1996 respectively for improved clearing and settlement and

dematerialized trading. Moreover, rolling settlement was introduced in January

1998 for all companies.

The Indian capital market entered the 21st century with the Ketan Parekh scam.

As a result of the scam Badla discontinued from July 2001. Trading of futures

commenced from June 2000 and Internet trading was permitted in February

2000.

It has been a long journey for the Indian capital market. Now the capital market is

organized, fairly integrate, mature more global and modernized.

40

The primary function of the system is to provide a link between savings and

investment for the creation of new wealth and to permit portfolio adjustment in

the composition of the existing wealth.

Figure 1 : Concept of Financial System

The progress of savings, finance and investment involves financial institutions,

markets instruments, and services. Above all, supervision control and regulation

are equally significant. Thus financial management is in integer part of the

financial system. On the basis of the empirical evidence we can defined inter

relationship between varied segments of the economy are illustrated below:

Figure 2 : Financial System

INVESTMENT

CAPITAL FORMATIOON

ECONOMIC GROWTH

FINANCESAVINGS

FINANCIAL

MARKET

FINANCIAL

INSTITUTION

FINANCIAL

INSTRUMENTS

FINANCIAL

SERVICES

41

FINANCIAL

SYSTEM

A financial system provides services that are essential in a modern world. The

use of a stable, widely accepted medium of exchange reduces the costs of

transaction. It facilitates trade and, therefore specialization in production.

Financial assets with attractive yield, liquidity and risk characteristics encourage

saving in financial form. By evaluating alternative investments and monitoring the

activities of borrowers, financial intermediaries increase the efficiency of resource

use. Access to a variety of financial instruments enables an economic agent to

pool, prize and exchange risk in the market.

Stock exchange is a market in which securities are bought and sold and it is an

essential component of a develop capital market. The securities contracts

(regulation) act , 1956, defines stock exchange as follows, “ it is an association,

organization or body of individuals, weather incorporated or not , established for

the purpose of assisting, regulating and controlling of business in buying, selling,

and dealing in securities”. A stock exchange, thus, imparting marketability and

liquidity to securities, encourage investments in securities and assist corporate

growth stock exchange is regarded as “an essential concomitant of the capitalist

system of economy. It is indispensable for the proper functioning of corporate

enterprise. It brings together large amounts of capital necessary for the economic

progress of a country. It is the citadel of capital and the pivot of money market. it

provides necessary mobility to capital and directs the flaw of capital into

profitable and successful enterprises .it is the barometer of general economic

progress in a country and exerts a powerful and significant influence as a

depressant or stimulate of business activity I t may be defined as the place or

market where securities of joint stock companies and of government or semi

government bodies are dealt in.”

42

STOCK EXCHANGES

India boasts of the oldest stock exchange in Asia -- the Bombay Stock Exchange

is 125 years old. There are 23 recognised exchanges spread across the country,

but a process of consolidation is now under way. Many of the regional stock

exchanges have started aligning themselves with one or both of the two large

exchanges (the Bombay Stock Exchange and the National Stock Exchange) both

of which have VSAT networks that give them a nation wide reach.

The National Stock Exchange is an unlisted for-profit company set up by some of

the leading financial institutions of India. Most of the remaining stock exchanges

are broker-owned (mutual) organisations, but the Bombay Stock Exchange is

actively considering demutualisation. The Securities and Exchange Board of

India (SEBI), the apex regulator of the capital market has regulations that

mandate a minimum number of outside directors on the governing board and

provide greater autonomy to the professional executives in the day-to-day

running of the exchange.

Trading and settlement

India’s stock exchanges are fully computerised order driven or order-cum-quote

driven systems. The country has made rapid strides towards a dematerialised

trading environment on the basis of a competing depositories model. Investors

have the choice of holding their stocks in physical or dematerialised form, but

trading in the exchanges is in mandatory dematerialised mode in most important

stocks. As of October 2000, about 98per cent of the trading in the stock

exchanges is in dematerialised mode.

India has put in place a regulatory regime for internet trading of stocks. A large

number of online brokers have started operations. More brokers are expected to

follow when the exchanges put in place an ASP (Application Service Provider)

model for online trading software. However, currently, the level of penetration of

online trading is extremely small.

43

The stock exchanges currently run two parallel settlement systems. Practically all

the trading takes place in the account period settlement system in which all

trades during a weekly account period are netted off and the net obligations are

settled five business days after the end of the period. The other unpopular

system is that of rolling settlements where trades of each day are settled on a

T+5 basis. SEBI is currently working on mandatorily shifting all stocks in a

phased manner to the rolling settlement system. Further improvements in the

settlement system to T+3 or beyond would have to wait for improvements in the

payment system.

However, account period settlement does not give rise to significant systemic

risks in India because of stringent end of day and intra-day margining systems.

Put simply, the weekly settlement is regarded as akin to a one-week futures

contract, and the systemic risk is taken care of by using futures style margining.

The exchange imposes daily mark to market and initial margins on the brokers to

eliminate settlement risk. Exchanges also have clearing houses to guarantee

settlements on the exchange. As a result, there have been no settlement failures

in the principal stock exchanges during the last five years

Table 2

Name Address

THE BOMBAY STOCK EXCHANGE

Phiroze Jeejeebhoy

Towers,

Dalal Street,

Mumbai- 400 001.

The Ahmedabad Stock Exchange Association

Ltd,.

Manek Chowk,

Ahmedabad - 380 001

BANGALORE STOCK EXCHANGE LTD,. 'M' Block, First Floor,

Unity Building,

J.C. Road, Bangalore.

44

HUBANESHWAR STOCK EXCHANGE

ASSN., LTD,.

217, Budhraja Building,

Jharpada Cuttack Road,

Bhubaneswar, Orissa - 751

006.

THE CULCUTTA STOCK EXCHANGE

ASSOCIATION LTD,.

7, Lyons Range,

Calcutta - 700 001.

COCHIN STOCK EXCHANGE LTD.,

Veekshanam Road

P.B. 3529, Ernakulam,

Cochi - 682 035.

THE DELHI STOCK EXCHANGE ASSN.

LTD.,

3&4/4B, Asaf Ali Road,

New Delhi 110 002.

THE GAUHATI STOCK EXCHANGE LTD,.

Saraf Building Annexe A.T.

Road,

Guwahati - 781 001.

THE HYDERABAD STOCK EXCHANGE

LTD,.

Bank Street,

Hyderabad - 500 001.

JAIPUR STOCK EXCHANGE LTD,.

Rajasthan Chamber

Bhawan,

M.I. Road,

Jaipur - 302 003.

KANARA STOCK EXCHANGE LTD.

4th Floor,

Rambhavan Complex,

Kodialbail,

Mangalore - 575 003.

THE LUDHIANA STOCK EXCHANGE ASSN.

LTD.

Lajpat Rai Market,

Clock Tower,

45

Ludhiana 141 008.

MADRAS STOCK EXCHNAGE LTD.

'Exchange Building',

Post Box No.183,

11, Second Line Beach,

Chennai - 600 001

MADHYA PRADESH STOCK EXCHANGE

LTD.67, Bada Sarafa,

Indore - 452 002.

THE MAGADH STOCK EXCHANGE LTD.

Bihar Industries Assn.

Premises,

Sinha Library Road,

Patna - 800 001.

PUNE STOCK EXCHANGE LTD.

1177,Budhwar Peth,

Bank of Maharashtra Bldg.,

2nd Floor,

Bajirao Road,

Pune 411 002.

SAURASHTRA KUTCH STOCK EXCHANGE

LTD.,

POPAT BHAI

Rajkot - 380 002.

THE UTTAR PRADESH STOCK EXCHANGE

ASSN. LTD.

Padam Towers,

14/113,Civil Lines,

Kanpur - 208 001

VADODARA STOCK EXCHANGE LTD.

101, Paradise Complex,

Tilak Toad,

Sayaji Gunj,

Vadodara - 390 005.

COIMBATORE STOCK EXCHANGE Chamber Tower,

46

8/732,Avvinashi Road,

Coimbatore 641 018.

MEERUT STOCK EXCHANGE LTD.

Kingsway Building,

345, Bombay Bazar,

Meerut Cantonment - 250

001.

OTC EXCHANGE OF INDIA.

Maker Towers "F" Cuffe

Parade,

Bombay - 400 005.

THE NATIONAL STOCK EXCHANGE OF

INDIA LTD.

Mahindra Towers,

A-Wing, RBC, Worli,

Mumbai 18

47

OVERVIEW ABOUT CENTRAL DEPOSITORY SERVICES (INDIA)

LIMITED (CDSL)

CDSL is the second depository set up by the Bombay Stock Exchange (BSE) in

India. It commenced its operations on March 22, 1999. It was set up BSE and

other co – sponsored with the net worth of Rs. 104 crores. In it, BSE has a 45 %

stake while others have 55 % stake. In the same year it has Five Stock

Exchanges established connectivity with it for offering trade in Demat securities

and 765 companies signed up with it to get their securities admitted for

dematerialization. It has 13 DPs in 91 cities across 168 locations covering 320

cities. Other co – sponsored are as under.

State Bank of India

Bank of India

Bank of Baroda

HDFC Bank

CDSL has also attained membership of the Asia – Pacific Central Securities

Depository Group (ACG). ACG has 22 members including depositories from

Japan, Hong Kong, Singapore, Malaysia, Australia, and New Zealand.

Membership of the organization is expected to help CDSL enhancing its

knowledge base and contributing to the development of other member

organizations in the best international practices, settlement risk management,

cross-border linkage and technological development. This, in turn, would help

CDSL to secure foreign institutional investors’ business through their custodian.

48

Operations Performed by CDSL

Carrying out actually share transactions

To do PSU disinvestments

To provide Centralized system at one e-space

To secure Foreign Institutional Investors’ business

Dematerialization of the Securities

Pledge creation in against the securities

Trading and settlement on day-to-day basis

Work as a custodian of its clients

COMPETITORS DETAILS

49

STOCK HOLDING CORPORATION OF INDIA LIMITED

ICICI direct.com

SHARE KHAN

UTI SECURITIES

MARWADI GROUP

HDFC SECURITIES

KOTAK SECURITIES

KARVY STOCK BROKING LIMITED

RELIANCE MONEY

ANAGRAM SECURITIES

50

SHCIL (STOCK HOLDING CORPORATION OF INDIA LIMITED)

Stock Holding Corporation of India Limited (SHCIL) was promoted by

public financial institutions and insurance majors like IDBI, UTI, ICICI, LIC, GIC

and its subsidiaries, IFCI and IIBI. SHCIL was incorporated as a public limited

company on July 28, 1986. 

SHCIL provides depository, post trading, custodial services, securities

lending to institutional investors and retail investors.

Other auxiliary services provided by SHCIL include derivatives clearing,

PF fund accounting, SGL constituent account services, mutual funds and other

capital market instruments distribution.

ICICI direct.com

ICICI Bank is India's second-largest bank with total assets of about

Rs.1,67,659 crores at March 31, 2005 and profit after tax of Rs. 2,005 crores for

the year ended March 31, 2005 (Rs. 1,637 crores in fiscal 2004). ICICI Bank has

a network of about 560 branches and extension counters and over 1,900 ATMs.

ICICI Bank offers a wide range of banking products and financial services to

corporate and retail customers through a variety of delivery channels and through

its specialized subsidiaries and affiliates in the areas of investment banking, life

and non-life insurance, venture capital and asset management.

51

ICICI Bank set up its international banking group in fiscal 2002 to cater to

the cross border needs of clients and leverage on its domestic banking strengths

to offer products internationally. ICICI Bank currently has subsidiaries in the

United Kingdom, Canada and Russia, branches in Singapore and Bahrain and

representative offices in the United States, China, United Arab Emirates,

Bangladesh and South Africa.

SHAREKHAN

Sharekhan is an equities focused organization tracing its lineage to SSKI,

a veteran equities solutions company with over 8 decades of experience in the

Indian stock markets.

In the stock markets. Sharekhan does not claim expertise in too many

things. Sharekhan's expertise lies in stocks and that's what he 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

Sharekhan brings a user- friendly online trading facility, coupled with a

wealth of content that will help investors stalk the right shares.

52

UTI SECURITIES

UTI Bank is a registered member (Depository Participant) of NSDL. India’s

first depository. We can avail all of the depository-related services by just

opening an account with NSDL through UTI Bank.

UTI Bank provides services like dematerialization of shares,

rematerilialization, pledge-Hypothecation, freezing/ locking Of Accounts, transfer

of shares and settlements, receipt of corporate benefits, holdings & transaction

statements on email, tele depository services.

MARWADI SHARES AND FINANCE PRIVATE LIMITED

Marwadi Shares And Finance Pvt. Ltd. Was incorporated in 1992.Marwadi

Group servicing more than 75000 clients, more than 554 pin codes. The

company ranked among top 50 broking houses. It has 250 franchisee / sub-

brokers and authorized person’s network.

53

HDFC SECURITIES

HDFC Securities, a trusted financial service provider promoted by HDFC

Bank and JP Morgan Partners and their associates, is a leading stock broking

company in the country, serving a diverse customer base of institutional and

retail investors.

HDFCsec.com provides investors a robust platform to trade in Equities in

NSE and BSE , and derivatives in NSE. Our website will support you with the

highest standards of service, convenience and hassle-free trading tools.

Our research team tracks the economy, industries and companies to

provide you the latest information and analysis. Our content offers financial

information, analysis, investment guidance, news & views, and is designed to

meet the requirements of everyone from a beginner to a savvy and well-informed

trader.

KOTAK SECURITIES

Kotak Securities, an affiliate of Kotak Mahindra Bank, is the stock-broking

and distribution arm of the Kotak Mahindra Group. The institutional business

division, which brings you AKSESS, primarily covers secondary market broking.

It caters to the needs of foreign and Indian institutional investors in Indian

equities (both local shares and GDRs, Global Depository Receipts). The division

also has a comprehensive research cell with sectorial analysts covering all the

major areas of the Indian economy.

54

The group a net worth of over Rs.1, 550 crores and employs over 3,000

employees in its various businesses. With a presence in 59 cities in India and

offices in New York, London, Dubai and Mauritius, it services a customer base of

over 5, 00,000

Kotak Mahindra has partnerships with Goldman Sachs (one of the world's

largest investment banks and brokerage firms), Ford Credit (one of the world's

largest dedicated automobile financiers) and Old Mutual (a large insurance,

banking and asset management conglomerate).

KARVY STOCKBROKING LIMITED

Karvy offers a full range of financial services and products ranging from Equities

to Research to enhance your wealth and hence achieve your financial goals.

Equities & Derivatives

Comprehensive services for independent investors, active traders & Non-

Resident Indians.

Karvy Research

Premium research on all most all companies updated daily.

Depository Services

Value added services for seamless delivery.

55

RELIANCE MONEY

Reliance Money is an endeavour to change the way India trades in financial

markets and avails of various financial services. Reliance Money ensures

maximum security with a unique security token to keep your online account safe.

ANAGRAM SECURITIES

Anagram Securities is the part of the Rs. 2000 crores Lalbhai Group. It

was found in 1993 and is a member of the National Stock Exchange. Last year

their trading crossed Rs. 17000 crores with around 5000 people making. They

are dealing only in Stock Market and nothing else. Though they are doing good

research work regarding companies and market which will be the beneficial to

the investors. Gujarat state is one of the most important fields of their business.

And they have about 30 branches throughout Gujarat

56

Comparison of charges of Broking Houses :

Table 3

Parameters

Opening Fee Brokerage

Trading A/c Demat A/c Delivery Square Off

ANGEL 100 460 .30 .06SHCIL 100 400 .55 .12ICICI Direct.com NIL 750 .75 .18SHAREKHAN NIL 750 .50 .10UTI SECURITIES NIL 600 NIL NILMARWADI GROUP NIL 125 .50 .10HDFC SECURITIES 399 .50 .15KARVY STOCKBROKING LTD. 100 NIL .30 .05RELIANCE MONEY NIL 750 Rs.12/tradeANAGRAM SECURITIES 100 400 .40 .10

57

REGULATORY ENVIRONMENT DETAILS

LEGISLATION

The four main legislations governing the securities market are:

(a) The Securities Contracts (Regulation) Act, 1956, preventing transactions in

securities by regulating the business of dealing insecurities

(b) The Companies Act, 1956, which is a uniform law relating to companies

throughout India

(c) The SEBI Act, 1992 for the protection of interests of investors and for

promoting development of and regulating the securities market, and

(d) The Depositories Act, 1996 which provides for electronic maintenance and

transfer of ownership of dematerialized securities.

RULES AND REGULATIONS

The Government has framed rules under the SCRA, SEBI Act and the

Depositories Act. SEBI has framed regulations under the SEBI Act and the

depositories Act for registration and regulations of all market intermediaries, for

prevention of unfair trade practices, insider trading, etc. Under these Acts,

Government and SEBI issues notification, guidelines, and circulars which need

to be compiled with the market participants. The self-regulatory organizations

(SROs) like Stock Exchanges have also laid down their rules.

58

REGULATORS

The regulators ensure that the market participants behave in a desired manner

so that the securities market continues to be a major source of finance for

corporate and government and the interest of investors are protected. The

responsibility for regulating the securities markets shared by Department of

Economic Affairs (DEA), Department of Company Affairs (DCA), Reserve Bank

of India (RBI), Securities and Exchange Board of India (SEBI) and Securities

Appellate Tribunal (SAT).

59

OBJECTIVES OF SEBI

The promulgation of the SEBI ordinance in the parliament gave status to SEBI in

1992. According to the preamble of the SEBI, the three main objectives are:

To protect the interests of the investors in securities

To promote the development of securities market

To regulate the securities market

FUNCTIONS OF SEBI

The main functions entrusted with SEBI are:

Regulating the business in stock exchange and any other securities market

Registering and regulating the working of stock brokers, share transfer

agents, bankers to the issue, trustees of trust deed, registrars to an issue,

merchant bankers, underwriters, portfolio managers, investment advisers and

such other intermediaries who may be associated with securities market in

any manner.

Registering and regulating the working of collective investment schemes

including mutual funds

Promoting and regulating self-regulatory organizations

Prohibiting fraudulent and unfair trade practices in the securities market

Promoting investors education and training of intermediaries in securities

market

Prohibiting insiders trading in securities

Regulating substantial acquisition of shares and take over of companies

Calling for information, undertaking inspection, conducting enquiries and

audits of the stock exchanges, intermediaries and self-regulatory

organizations in the securities market.

60

REGISTRATION OF INTERMEDIARIES

The intermediaries with securities market shall buy, sell or deal in securities after

obtaining the registration from SEBI, as required by section 12:

1. Stock-broker

2. Sub-broker

3. Share transfer agent

4. Banker to an issue

5. Trustee of the trust deed

6. Registrar to an issue

7. Merchant banker

8. Underwriter

9. Portfolio manger

10. Investment advisor

11.Depository

12.Depository participant

13.Custodian of securities

14.Foreign institutional investor

15.Credit rating agency

16.Collective investment schemes

17.Venture capital funds

18.Mutual funds

19.Any other intermediary associated with the securities market

61

MARKETING DEPARTMENT STUDY

PRODUCT & SERVICE DETAILS AND PORTFOLIO

REPORTS :

Market Outlook at 9:15 a.m.

Technical Report at 6:00 p.m.

Derivative Analysis Report at 9:15 a.m.

FUNDAMENTAL RESEARCH SERVICES :

The Sunday Weekly Report

The Industry Watch

Stock Analysis

Flash News

TECHNICAL RESEARCH SERVICE :

Nifty Tracker

Online Chart

Intraday Calls

Position Calls

Derivative Strategies

Futures Calls

INVESTMENT ADVISORY DESK

62

PORTFOLIO MANAGEMENT SERVICES

PMS Schemes @ Angel

Scheme 1: Angel OYSTER

Scheme 2: Angel BLUE- CHIP

ANGEL GOLD

COMMODITIES SERVICES

Agro Tech Speak

Call Evaluation

Commodities Tech Speak

MUTUAL FUND DISTRIBUTION AND ADVISORY

IPO DISTRIBUTION AND ADVISORY

ONLINE TRADING

ANGEL DIET

ANGEL ANYWHERE

ANGEL TRADE

DEPOSITORY PARTICIPANT SERVICES

The details of the products and services has been mentioned in the products

detail section of company profile.

63

5 PS FOR ANGEL PRODUCTS :

1. Product – Features of Angel Products

2. Positioning – USP, Product Segment, Target Customers

3. Packaging – Marketing Material, Client Benefits

4. Placement – Distribution Channel, Marketing Strategies

5. Promotion – Activities to be carried out

1. PRODUCT - Features of Angel Products

A premium service for clients who needs professional guidance on

short and long term investments.

Brokerage of 0.06p. for intra day and 0.30p. for delivery based trading.

50% sharing of brokerage in case of Sub-broker’s clients.

AMC – Rs. 300.

Shares can be kept in Angel pool or can be transferred to the

respective DP accounts.

Intimation regarding transaction will be given to clients by evening of

the day of transaction.

Profits can be redeemed or re-investing based on client’s wish.

64

Existing client account can be used for Angel Products. Clients can do

there own transactions in the same account as well.

Periodic meetings will be held in the branches

2. POSITIONING

Angel Products are positioned as an equity investment option for all

those investors who aims for realistic return from equity as an asset

class.

It is for the investors who wishes to seek professional advice for their

investments.

Unique selling Preposition (USP)

A strong team of 11 sector specific analysts headed by Research

director guiding the investments.

A low cost solution for investing.

Product Segment

Angel Products are for the people who fall in middle class – higher

middle class section of the society.

People who are not risk averse and can understand the return benefits

vis-à-vis calculated risk taken.

People who are new entrant to the equity markets.

65

Target Customers

Young professionals.

Middle aged professionals considering traditional ways of investing i.e.

FDs, PPF, gold, bonds, etc.

Small scale businessmen who are not risk averse and will understand

the importance of reasonable returns.

Retired people who have taken hefty VRS or has savings of which 20-

25% can be invested in equities.

3. PACKAGING

A Client of Angel Product will be regularly updated about the stocks

and there performance by Advisory department.

Monthly newsletter will be issued by the Desk and Regular meetings

also will be conducted at the branches.

A marketing kit will have Angel Products broacher, performance report

FAQs, Consent letter and KYC forms.

4. PLACEMENT

Distribution Channel

Bright marketing persons should be used for this product. Product

Training along with some investment ideas will be provided to

personnel

66

Existing B2C as well as B2B channels can be explored.

Proper data mining and segmentation should be the basis of marketing

Marketing Strategies

The primary marketing strategy for all products is low brokerage

charges. Low cost is the basis for attracting the customers.

Another marketing strategy is the corporate scheme of Angel which

does not charge any fees for opening trading account if there are more

than 10 persons opening account in a group.

5. PROMOTION

Fundamental workshops to be conducted at the branch on weekends.

Promotional activities such as stalls and exhibitions to be held at select

housing colonies, clubs and companies.

Free SMS service. Here a client will receive our fundamental calls free

of cost for a limited period.

Distribution of Angel Pamphlets to target customers

Attracting the customers through Canopy marketing

Promotional activities are also carried out through Investor Camp

67

INNOVATIVE PRACTICE EMPLOYED

68

OPERATIONS DEPARTMENT STUDY

COMPANY LOCATION

The location problem is an important strategic level decision making for an

organization. The selection of location is a key decision as large investment is

made. It is not advisable or sometimes not possible to change the location very

often. So an improper location may lead to waste of all the investments. The

location of the company is based on company’s expansion plan and policy,

changing market conditions. At present the company is situated at “Indraprasth

Complex – 228-229, Jamnagar”. In order to find a good location the company

followed three stages :

First stage – selection of a region: this refers to the selection of a particular

geographical zone taking into consideration such factors as nearness to market.

Second stage- selection of a community: this refers to the selection of the

specific locality within the region. The factors that influence the selection of

community are community attitude and service facilities.

Third stage- selection of specific site: this refers to the selection of specific site

within the community. The factors that influence the site location are the cost of

the land, availability and suitability of the land.

The factors that the Company considered while selecting location are :

Infrastructure facilities

Availability of power

Community attitude

Municipal and other Civil amenities

69

LAYOUT

Layout refers to physical arrangement of facilities. It is the configuration of

departments, work centers, etc.

The primary goal of layout is to maximize the profit by arrangement of all facilities

to the best advantage.

The Company has divisions such as :

Branch Manager’s Cabin

Conference Room

Trading Rooms

Back Office

Risk Management Desk

KYC (Know Your Client) Desk

IT Division

The Branch Manager’s Cabin and the Conference Room are near to each other

so that conference can be held immediately when required.

The two Trading Rooms are placed together so that any problem during the

trading sessions can be handled easily.

The Back Office, Risk Management Desk and KYC Desk are placed in a line so

that they can communicate whenever required and the queries of the customer

can be solved.

The IT Division is kept separately with server and all the necessary connections.

70

PLANNING AND CONTROLLING

Planning is useful for effective utilization of resources, to achieve organization

goal and objectives with respect to quality service, cost control and timely

service. Other objective is to co-ordinate with other departments to ensure

continuous quality service.

There is proper planning of how various activities would be carried out like

opening of account, dealing while trading sessions, issuing contract notes, etc.

There is also co-ordination among various divisions like back office, Risk

Management Desk, KYC Desk, etc so that proper service can be provided to

customers.

71

MAINTENANCE

Maintenance of facilities in good working condition is essential to achieve desired

levels. If the company ignores the maintenance than they have to pay heavy

price for that.

The Company has designed the Quality Assurance Policy which maintains the

service of the Company as per the desire level of the customer.

The Quality Assurance Policy helps the Company to fulfill the expectations of the

customers and retain them.

72

73

PROCUREMENT

As Angel Broking is the Service Sector Industry, so procurement of computer

machinery and other useful stationery such as stamp, papers, files and other

stationery useful for form filling is done.

Procurement of computer machinery and other stationery is done through local

distributors.

STORAGE

There are various cupboards for various files like contract notes cupboard,

account opening forms cupboard, sub brokers files cupboard and general

stationary cupboards are kept for easy availability of files and stationery

whenever required.

74

FINANCE DEPARTMENT STUDY

As the Company being Pvt. Ltd. Company, has denied to part the financial

information, so I am unable to provide the financial data.

75

HUMAN RESOURCE DEPARTMENT STUDY

Human resource management policies are vital for organizations who are serious

about resolving personnel issues and finding HR solutions. Absolute HR

solutions provides clients with professional human resource advice, human

resource policy solutions and job description writing and evaluation services.

Human Resource Management serves these key functions :

1. Hiring (Recruitment)

2. Compensation

3. Evaluation and Management (of Performance)

4. Promotions

5. Managing Relations

6. Planning

It is the responsibility of human resource managers to conduct these activities in

an effective, legal, fair and consistent manner.

The objective of Human Resource is to maximize the return on investment from

the organization’s human capital.

“Human Resource Management aims to improve the productive contribution of

individuals while simultaneously attempting to attain other societal and individual

employee objectives.” Schwind, Das and Wagar (2005)

76

RECRUITMENT

Angel takes pride in appointing dynamic individuals who would share their vision

and philosophy of 'providing the best value to all our customers. They believe

that a professional, determined and focused approach towards the task at hand

would enable all their aspirants to learn, groom and grow with them. They offer

the perfect blend of stimulus in the form of an attractive compensation package

and a stimulating work environment.

Prospective candidates being appointed will serve a probationary period of three

months. Staff appointed as trainees will be confirmed in the services, on

completion of the required training period subject to his / her performance being

satisfactory during the training period. Confirmation will be formalized only when

a confirmation letter is issued to the trainee. If considered necessary, training

period will be liable to be extended / terminated.

During the probation period employee may terminate his/her employment,

without stating any reasons, by giving one week’s notice of termination.

Employees wanting to terminate their employment, at any time after successfully

serving the probationary period, will have to give one month’s notice of

termination, stating the reasons for termination in writing.

77

The new joinee will be attending a two day Induction Programme in order to

acquaint him/her with the Angel World (Its People, Culture, Business Processes,

Products & services & New Initiatives)

INDUCTION

This program is for new members entering the organization. As new joinees, they

find themselves thrown into a new environment and a confused state This is a

very important program which helps the new member to get familiarized with

them with Angel's Vision, Business Philosophy, values, work culture, Products &

Services, Important Business Processes, Policies & Procedures etc.

TRAINING

Angel has undertaken a campaign to strengthen the staff’s Customer

Relationship Management skills across the organization, by planning highly

interactive training sessions with the aim provide effective services to the clients.

The programs will be conducted by the HR team with assistance from an

outsourced Trainer & will be held at the in house training centre at Akruti. The

training programs will have sessions like; Effective Customer Service Skills,

Effective Business Communication, Telephone Etiquette, E-Mail Etiquette, Time

Management, Interpersonal Skills, Effective Selling Skills, Handling Customer

Complaints effectively. etc.

78

They expect serious commitment and participation from the staff members for all

the training initiatives. These people development programmes are an integral

part of the performance appraisal process and those excelling in these programs

can look forward to be suitably rewarded.

e-Learning

They have initiated e-Learning for making training more accessible through video

conferences & through their Employee portal. e-learning also makes the transfer

of knowledge more effective & consistent. Along with a host of other training

programs, their Induction program too is to be delivered across Angelites through

our e-learning platform.

DEVELOPMENT

“Do not ask what will happen if we train people and they leave? Instead ask what

will happen if we do not train people and they stay on.” - Zig Ziegler

As they are steadily moving up in the Customer Value Chain by providing Advice

Based Broking & becoming a Knowledge Leader in the Retail Broking Business,

they encourage all Angelites to upgrade their knowledge about the Dealing and

advisory Process by obtaining NCFM Certifications. Apart from this they also

have advanced training modules in core functional areas such as marketing /

sales, corporate services, research & advisory etc. which help in creating a

career path for Angelites.

They believe in offering careers & not jobs, hence they recruit fresh graduates /

post-graduates. They develop their skills & competencies which helps them

create a niche for themselves & achieve professional development.

79

PERFORMANCE APPRAISAL SYSTEM

At ANGEL, increments will be based only on annual appraisals and will be strictly

bench marked with the relative importance of the role and specific contributions

of each employee. Annual Appraisal’s are reviewed twice in a year i.e. in July

and December. New employees who have at least completed 9 months of

service (6 months of confirmed service) by July or December will be eligible for

an annual increment, depending on their performance & contribution to the

company.

The Performance Management System

Links employees’ performance to the Corporate Goals through well

Defined Key Performance Areas (KPAs) & measurable targets, reviewed

every quarter.

Focuses on defining & rating all Managers on Key Competencies relevant

for our business.

Ensures an objective Performance Appraisal of employees through a

meaningful dialogue with them about their performance and decide on

measures to improve their contribution and rewards.

Identifies key strengths of employees & builds a Training-cum-Career

Development Plan for them.

Provides opportunity for senior employees to make a Self Appraisal of

their performance based on their KPAs and Targets, thereby minimizing

areas of differences.

80

Aligns the compensation of each employee with his performance &

successful com pletion of NCFM modules related to their job profiles

Downward revisions in compensation are also possible

Performance Related Rewards (PRR) / Bonus

The company pays bonus or Performance Linked Incentives to deserving

employees who have contributed more than their defined performance

standards & targets. The company plans to progressively increase the

variable pay component in the compensation structure to ensure greater

accountability and performance orientation.

SUCCESSION

The 'star' Angelites are change leader and helps in acting as catalysts in

driving the process improvement programs across various functional areas

and profit centers through their Management Development Program. These

change leaders (*Angel Managers) play an active role in strengthening the

professional managerial team by benefiting from this knowledge sharing

initiative.

81

PRACTICES FOLLOWED BY ANGEL

Payroll Procedure

The salaries of all employees will be directly credited by the 30th or 31st of

each month, to their individual corporate salary accounts maintained with

HDFC Bank Limited. Employees who have newly joined will be given one

months time period within which they are required to open a corporate salary

account with HDFC. The account opening form will be given along with the

appointment letter. Proof of address & photo identity and only one passport

sized photograph is required for opening the corporate salary account. In

case any employee is staying in rental premises, he/she may give the office

address as the mailing address. Salaries of new employees will be delayed,

incase accounts have not been opened even after a month of joining.

Working Hours and Attendance

1. Working Hours : Working hours are from 9:30 a.m. to 6.30 p.m. from

Monday to Saturday with a 30 minutes lunch break between 1.00 to

3.00 p.m. However the employee may be required to work such hours

as may be necessary to carry out the duties to the satisfaction of the

Company. If employee is required to work in shifts, then shift schedule

would be made available to the employee by the department head and

the same should be informed to HR in CSO for recording the same

schedule in the HRMS – Harmony.

82

2. Attendance : They have introduced Harmony to facilitate their Central

Support Office and all branches with online attendance. Attendance is

mapped for Angelites when they log into harmony homepage

(http://harmony.angeltrade.com). All Angelites are required to login to

Harmony at least twice , once on arrival and once on departure from

office. Employees on Branch/client visits may put up an online

application for OD Official Outdoor duty through Leave under Their

Angelite Profile link available on their homepage. The same gets

recorded in the online attendance after HODs approval. One passport

sized photograph will be required by the HRD for scanning the same to

put it up on their harmony homepage. Branches may maintain a

muster till all angelites regularly log in to harmony.

3. Working on Holidays : There would be a compensatory off for

working on a holiday or on a Sunday provided the employee has been

asked by his/her HOD to work on a holiday or a Sunday, the

employees will need to apply for WW (Work permit on weekly OFF)

from Leave under Their Angelite Profile link . The said employee/s and

may claim a compensatory off for a leave taken during the same month

by applying for CO from Leave under My Angelite Profile link . On

approval of HOD the CO will be set off against the WW applied for in

the same month.

83

Dress Code

The code has to be adhered to on all working days between Monday and Friday.

Common code for Men and Women

One is expected to portray an efficient, sober, sophisticated and business-like

image, in line with the corporate image of the Company. Proper cleanliness and

hygienic standards should be followed especially body odour, bad breath, long

nails and un-groomed hair.

Code for men

A formal full sleeved shirt, appropriate trouser and a tie for important

external meetings.

One is expected to be clean-shaven every day.

All accessories like briefcase, spectacles, pen, handkerchief etc. should

be business-like and should match with the dress code.

Appropriate shoes (with socks), which are well polished.

Code for women

A salwaar kameez or western formal dress, or a sari that suits the office

environment

The colour of the dress should be sober and businesses-like and should

not “be loud”.

One is expected to wear appropriate make-up, which goes with the dress

code.

Wearing of excessive jewellery and accessories should be avoided.

84

Remuneration, Compensation and Benefit

Compensation Philosophy

ANGEL strives to have a competitive and fair compensation policy aligned with

its HR philosophy of meritocracy and Pay for Performance

1. Fixed Salary : The Company offers a fixed salary and benefits package to

employees based on the nature of their job and expected contribution

towards achievement of corporate goals. The Fixed compensation

structure will normally be reviewed once every year.

2. PF : All employees are governed by the Employees Provident Fund and

Miscellaneous Provisions Act, 1952.

3. Requisite deductions : Requisite deductions structure per month will be:

Profession Tax on Salaries

Table 4

  Upto Rs.2,000   - Nil -

  Rs.2,000/- to Rs.2,500/-   Rs.30/-

  Rs.2,501/- to Rs.3,500/-   Rs.60/-

  Rs.3,501/- to Rs.5,000/-   Rs.120/-

  Rs.5,001/- to Rs.10,000/-   Rs.175/-

  Rs.10,001 onwards   Rs.200/-

(Rs.300/- in the month of February)

Employees’ Contribution towards Provident Fund contribution

85

12 % of the Basic salary of each employee

Employee State Insurance contribution

1.75% of gross earning for each employee drawing gross earning of

Rs.10000/- pm and below

Income Tax on Salaries

Employees falling under the Tax net i.e. whose Gross Salary + Bonus

exceeds Rs.75,000/- per annum, have to give a self declaration in the month

of April each year to the Company stating the amount and type of investments

that he intends to make during the year. On the basis of the declaration given

by the employee, Income Tax on his/her salary will be deducted as

applicable. During the year he/she has to give supporting documents for his

investments made, e.g. L.I.C. premium receipts, or for any deduction claims

e.g. Rent receipts etc. The employee has the option to give in the requisite

documents at the end of each month or latest by the 15th of February each

year. Any investments made by the employee after 15th of February each

year will not be considered for his/her personal tax saving purpose by the

Company. An exception can be made only in case if any due dates for

payments of premiums etc. are actually falling after 15th of February.

Compensation paid by the Company to its employees is a strictly confidential

matter and no one is expected to discuss it with their colleagues or outsiders.

Any breach of this confidence will be viewed seriously by the Management,

warranting disciplinary action including suspension from service.

4. Mobile Phone : The Company shall pay a fixed allowance for expenses

incurred by an employee in the Sales Team within the prescribed limits as

86

sanctioned by the concerned HOD. For Non-Sales staff this facility would

be made available only on a need basis on sanction by the HOD and the

Head HR.

Personal Loans and Advances against Salaries

Personal Loans :

All employees who have completed 1 year of continuous service with the

organisation are eligible to avail personal loans from the Company only in case of

dire need of finance.

Loans availed by the employees during year will have to be repaid within 10

installments and the same will be deducted from the salary each month. The loan

can be availed only if any previous loan taken is repaid wholly.

Loans shall be provided at the absolute discretion of the Management and will be

decided on a case to case basis depending on the urgency, need and criticality

of the subject.

Advances:

Advance is generally given once in 4 months against one months’ salary after

requisite deductions. The entire amount given as advance will be adjusted

against the next months’ salary.

Transfer

87

The Company may transfer any employee at it’s discretion to any of it’s

departments, functions, Regional or Branch Offices anywhere in India.

Termination of employment

During the probation period, the Company can terminate the employee with one

week notice or payment in lieu of the notice. Termination of confirmed employees

will require two months notice. The Company can, at its absolute discretion,

terminate any confirmed employee without assigning any reason whatsoever,

after giving him one months notice. If in any case the Company gives insufficient

notice, salary in lieu of the lesser period of notice will be paid to the employee.

The company reserves the right to hold employees termination incase of

unearned loans. No leave will be allowed during notice period without a Director’s

approval.

The Company reserves the right to terminate the employment without notice or

payment in lieu of notice, should the employee be guilty of misdemeanor,

misconduct, negligence, medical disability, irregular attendance and / or frequent

absence & disobedience of orders of the Superior. If the employee takes outside

employment (with or without remuneration) without permission of the Company,

he will be liable to immediate dismissal.

FACILITIES GIVEN BY THE COMPANY TO THE EMPLOYEES

1. Angel Allure (e-Newsletter) : The internal newsletter Angel Allure will be

uploaded on Harmony homepage 5th of every month . This e-newsletter is

a medium for sharing new initiatives & developments within the

organization. It also serves as a platform to enable the employee to share

their thoughts / experiences by way of articles / stories. The best article

would be reproduced in this newsletter alongwith the winners photogragh

and acknowledgement to his contribution in Allure.

88

Through this medium, important communications/issues would also be

actively addressed. The employee may e-mail thei0000r articles to post-

[email protected] or [email protected] by the 25th of

each month.

2. Visiting Cards : It will be given to employees on a need basis with the

approval of the department / functional head. An internal mail has to be

forwarded to the Administration Department.

3. e-mail Addresses : Each employee will be provided with his or her e-mail

address for internal as well as external communication.

4. Harmony Employee id : Each employee will be provided a unique

employee id and password for logging into Harmony for Attendance and

maintaining Angelite profile on HRIS- Harmony.

5. First Aid Box : A First Aid Box is maintained at the Reception.

6. Canteen Facility : Canteen facility is available at the CSO (Akruti &

Acme) Mumbai , serving lunch at a subsidized cost. Employees availing of

the subsidized lunch facility are required to sign a register maintained at

the canteen & will have to pay their monthly food bill dues to the

Administrations department. In order to attend to customers, not all

employees within departments will go for lunch at the same time.

89

All employees should adhere to the lunch timings. Employees carrying

their own edibles should only consume it in the canteen and no other

place. No edibles will be allowed at individual work stations, excepting

offices where canteen facilities or a separate room for lunch is not

provided. In such cases ensure that the tables are left clean and tidy after

consumption of food.

7. Administrative Requirement : Administrative requirement such as

phone, stationery, computer etc. would be taken care of by the Admin

Department before hand, but in case of additional requirement for

stationery / computer hardware the employees can send their requirement

through a “Requisition Form” to the Admin Department after getting it

approved from their department head.

8. Smoke Free Office : ANGEL encourages healthy atmosphere for

employees and smoking is strictly prohibited in all areas inside the office

premises, including toilets, pantry, corridors, conference rooms etc.

Similarly consumption of tobacco, alcoholic beverages or any other

intoxicants is strictly prohibited on the premises of the Company. Visitors

on the premises are also required to observe this rule and their hosts will

ensure compliance.

9. PF Transfer : For transfer of PF accumulation from their previous

employer, they are required to fill Form -13. This form should be filled up

in duplicate and submitted to the HR department.

90

It is not possible for ANGEL to follow-up with RPFC or the Trusts of

previous employers for the transfer. Once Forms are forwarded by

ANGEL, it may be in individual interest to see that the follow up is done.

10.Housekeeping Guidelines : All are advised to follow these guidelines to

make the office a pleasant place to work in

Keep the workstation, desk and surrounding area clean and in proper

condition.

While leaving at the end of the day, keep all newspapers, files, books,

folders, papers, stationery etc. in the drawers. Cleaners have been

instructed to dispose off papers lying on the table.

Keep your storage space properly locked & ensure that one key is kept

with Admin dept.

Please ensure that visitors and guests are met in the meeting room. They

should not be allowed to enter the dealing room / other area.

Please talk softly on the phone or otherwise, so that it does not distract

others.

Please use self-service for drinking of water, tea, filing, photocopying etc.

Please use office equipment like PCs, Projectors, ACs etc. carefully and

inform Admin Dept in case of any malfunctioning.

Employees making use of the Meeting / Conference Rooms and included

facilities, for meetings with visitors/clients are required to ensure that after

the meeting is over all lights / AC / Computer / OHP switches are put off.

91

LATEST PRACTICES

'Six Sigma Way of life at Angel'

In order to strengthen the “Quality Assurance Drive the Management” at Angel is

strongly committed to improve processes through use of Six Sigma

Methodologies. The Six Sigma way of life throughout Angel is driven by a team of

2 Black Belts and 15 Green Belts certified on Six Sigma & 33 Yellow Belts. All of

the Senior Managers and Star performers are leading Six Sigma projects in their

functional areas to improve processes.

92

RESEARCH

INTRODUCTION :

This research has been conducted to find out the present and the future scenario

of e-Broking.

In the past, investors had no option but to contact their broker to get real time

access to market data. But now with the concept of e-Broking, it is possible to

get real time data online without the need of contacting broker. In e-Broking

system, the software is directly made available to the end-user and he/she can

access real time data immediately.

RESEARCH OBJECTIVE :

There must be an objective behind any research. Without objective there is no

meaning of research.

The purpose of research is to discover answers to questions through the

application of scientific procedures. The main aim of research is to find out the

truth which is hidden and which has not been discovered yet. As each research

has some or the other objectives the following are the objectives of this research:

The primary objective is to find the present and the future scenario of

e-Broking.

To find the awareness of online trading

To find the feature of online trading which can convert the offline

traders to online trading.

To identify potential customers

93

RESEARCH METHODOLOGY

RESEARCH DESIGN :

For any researcher the research methodology is the most important criteria to

decide before the actual research process starts. There are many methods for

conducting the research some of them are as under:

The design of a research is a plan or a model that helps researcher to conduct a

formal investigation and survey. It is an application of methods and procedures

for acquiring the information needs for getting a desire out come. It decides the

sources of data and methods for gathering data. A good design insures that the

information obtained is relevant to the research question and that it was collected

by objectives. Since, research design is simply the frame work or plan for a

study. It is a blue print that of a house devised by an architect. My approach to

research is descriptive and quite specific.

Out of various research methods the research method, which was most suitable

to my research, was Exploratory Research because it provides me all the

opportunities to cover the all the aspect that I require to conduct the research and

get an appropriate out come.

SAMPLING DESIGN :

The Sampling Design taken here is Non-Probability Convenience based

Sampling.

94

DATA COLLECTION :

The task of data collection begins after a research problem has been defined and

research design/plan chalked out. While designing about the method of data

collection to be used for the study, the researcher should keep in mind two types

of data.

There are 2 sources of data i.e.

1) Primary Data:

The data, which are collected for the first time, directly from the

respondents to the base of knowledge & belief of the research, are called

primary data.

The normal procedure is to interview some people individually or in a group to

get a sense of how people feel about the topic.

So far as this research is concerned, primary data is the main source of

information. The data collected is through questionnaire & information

provided by the respondent.

2) Secondary Data:

When data are collected & compiled in a published nature, it is called

secondary data. So far as this research is concerned Internet and the

Company brochures and pamphlets have been referred to.

95

Sampling Process :

It is true that it’s very difficult to do the research with the whole universe. As we

know that it is not feasible to go for population survey because of the numerous

customers and their scattered location. So for this purpose sample size has to be

determined well in advance and selection of sample also must be scientific so

that it represents the whole universe.

So far as this research is concerned, due to time constraint the sample size

taken is of 55 respondents of Jamnagar city.

Mode of data collection :

Personal visit & filling up of the questionnaire, with little bit of observation.

Table 1

Taking in to consideration that the research instrument selected by me was the

questionnaire because it gives more flexibility in terms of collection of the data

and one has a chance to meet the responder personally and have an idea of

getting an important unknown data that can be collected through their behavior.

Sample Universe Jamnagar city

Type of Sampling Non Probability Convenience

based Sampling

Sample size 55 respondents

Research Instrument A structured formatted

questionnaire

96

DATA ANALYSIS AND FINDINGS

There are lots of players in the market including number of broker and sub

brokers in the market. In this technological era each player in this industry takes

the maximum benefit of technical aspects by means of e-broking i.e. e-trading.

The study may not include the sub brokers as for the sake of convenience; I

restricted my survey taking into consideration their Name, Fame & also the

products and services they give to their customers such as trading on phone, low

brokerage, low trade charges, the funding facilities, the deposit ratios etc… This

survey is especially focused on the awareness about the e-broking and its

present and future in the potential market.

For any researcher it is important that how one has analyzed his or her data in

way that it can be clearly interpreted by him and the proper results can be

derived.

97

The following are the findings from this research

Which mode of trading alternative do you use ?

□ Online Trading □ Offline Trading

Table 2

Online Trading No.

Users 9

Non Users 46

Users16%

Non Users84%

Users

Non Users

Graph 1

The above graph shows the users and non users of online trading. The users of

online trading are very less compared to that of offline traders. Among 55

respondents only 9 respondents use online trading and the rest use offline

trading. This shows that the concept of e-Broking is not so prevalent in the

market. People still prefer to use the traditional offline method of trading.

98

FOR USERS OF ONLINE TRADING :

Age : □ 21-35 □ 36-50 □ 51-65 □ Above 66

Table 3

Age No.

21 – 35 7

36 – 50 1

51 – 65 1

Above 66 0

78%

11%11% 0%

21 - 35

36 - 50

51 - 65

Above 66

Graph 2

The Sampling technique was Random sampling so; there is no fixed number of

respondents for the specific age group. The above graph indicates the age group

of the people using online trading. It can be noted that among the 55

respondents, 7 users fall in the age group of 21-35, 1 user fall in the age group of

36-50 and 1 user fall under the age group of 51-65.

99

Occupation :

□ Profession □ Businessman □ Govt. Servant

□ Employee □ Others __________

Table 4

Occupation No.

Profession 0

Businessman 3

Govt. Servant 1

Employee 2

Others 3

0%34%

11%22%

33%

Profession

Businessman

Govt. Servant

Employee

Others

Graph 3

The above graph shows the occupation of the persons using online trading. The

highest no. of users fall under the category of businessman. This shows that

persons having their business can trade easily through online trading as they can

trade whenever they are free or whenever they wish to trade. The category of

others include mostly students.

100

Yearly Income :

□ Less than 1 lac □ 1 to 2 lacs □ 2 to 3.5 lacs

□ 3.5 to 5 lacs □ 5 lacs or more

Table 5

Income No.

Less than 1 lac 4

1 – 2 lac 3

2 – 3.5 lac 0

3.5 – 5 lac 2

5 or more lac 0

45%

33%

0%

22% 0% Less than 1 lac

1 - 2 lac

2 - 3.5 lac

3.5 - 5 lac

5 lac or more

Graph 4

The above graph shows the income range of the users of online trading. More of

them fall under the category of less than Rs. 1 lac. There are almost no users

that fall in the income range of Rs. 5 lac or more. It can be interpreted that

persons in the income range of Rs. 5 lac or more have less time to trade or look

after the markets themselves. So even if they invest, they usually prefer offline

trading.

101

In which Stock Broking House do you prefer to invest ?

□ Angel □ Marwadi □ Share Khan

□ Indiabulls □ ICICI □ India Infoline

□ Others __________

Table 6

Broking House No.

Angel 1

Marwadi 0

Sharekhan 0

India-bulls 1

ICICI 0

India Infoline 2

Others 5

11%11%

22%56%

Angel

Indiabulls

IndiaInfo

Others

Graph 5

The above graph shows the various broking houses from where the user prefers

to invest or rather whose software and tips they use. It shows that only 11% of

users of e-Broking prefers to invest from Angel Broking.

102

This shows that Angel has more market area to cover by its unique features.

The Broking House that fall under the others category are Reliance Money,

Anagram, etc. This shows the strong position of competitors in the market and

the scope for Angel to expand its business.

103

Which features of e-Broking you like the most ?

□ Instant Online Fund Transfer with Multiple Banks

□ BSE, NSE, F & O, MCX and NCDEX in a single screen

□ No installation required

□ Advantages of mobility

□ Intra day / Historical charts with various indicators

Table 7

Features No.

F1-Instant Online fund transfer with

Multiple Banks

3

F2-BSE, NSE, F & O, MCX and

NCDEX in a single screen

3

F3-No installation required 0

F4-Advantages of mobility 2

F5-Intra day / Historical charts with

various indicators

1

34%

33%0%

22%

11% F1

F2

F3

F4

F5

Graph 6

104

The above graph shows the features of online trading liked by its users. I have

taken here five features of online trading among which the features of Instant

Online Fund Transfer with Multiple Banks and BSE, NSE, F & O, MCX and

NCDEX on a single screen are liked by the users of online trading. This shows

that offline traders can be converted to online trading with the help of these

features as the feature of Online Fund Transfer saves time and the feature of all

exchanges on a single screen will create the interest of those who wish to trade

in equity as well as commodity.

105

FOR NON USERS OF ONLINE TRADING :

Age : □ 21-35 □ 36-50 □ 51-65 □ Above 66

Table 8

Age No.

21 – 35 34

36 – 50 8

51 – 65 4

Above 66 0

74%

17%9% 0% 21 - 35

36 - 50

51 - 65

Above 66

Graph 7

The above graph shows that how many persons falling under a specific age

group do not use online trading. It was found that out of 46 respondents,

maximum no. of persons fall under the age category of 21-35. Also in the case

of users of online trading, the maximum no. of users fall under the age category

of 21-35. This shows that youngsters are more risk takers than aged people.

106

Occupation :

□ Profession □ Businessman □ Govt. Servant

□ Employee □ Others __________

Table 9

Occupation No.

Profession 4

Businessman 16

Govt. Servant 7

Employee 7

Others 12

9%

35%

15%15%

26%Profession

Businessman

Govt. Servant

Employee

Others

Graph 8

The above graph shows the no. of persons falling under different occupation

category not using online trading. It is found that maximum no. of persons fall

under the category of businessman as in the case of users of online trading.

This shows that businessman are more interested in stock market.

Yearly Income :

107

□ Less than 1 lac □ 1 to 2 lacs □ 2 to 3.5 lacs

□ 3.5 to 5 lacs □ 5 lacs or more

Table 10

Income No.

Less than 1 lac 21

1 – 2 lac 15

2 – 3.5 lac 8

3.5 – 5 lac 1

5 or more lac 1

46%

33%

17%

2%

2%

Less than 1 lac

1 - 2 lac

2 - 3.5 lac

3.5 - 5 lac

5 or more lac

Graph 9

The above graph shows the income range of persons not using online trading.

Here also more no. of persons fall under the category of income of less than Rs.

1 lac as in the case of users of online trading. This shows that persons falling

under the category of income of less than Rs. 1 lac are more interested in stock

market.

In which Stock Broking House do you prefer to invest ?

□ Angel □ Marwadi □ Share Khan

108

□ Indiabulls □ ICICI □ India Infoline

□ Others __________

Table 11

Broking House No.

Angel 11

Marwadi 10

Sharekhan 7

Indiabulls 2

ICICI 1

IndiaInfo 4

Others 11

24%

22%15%

4%

2%

9%

24%

Angel

Marwadi

Sharekhan

Indiabulls

ICICI

IndiaInfo

Others

Graph 10

The above graph shows the various broking houses from where people not using

online trading prefer to invest. More no. of users prefer to invest from Angel

109

Broking House. The others category include Reliance Money, Anagram, etc.

This shows that Angel Broking has more no. of offline traders than online traders.

It can be interpreted that Angel has more scope of potential customers for online

trading compared to offline trading.

110

CONCLUSIONS

1. From the research carried out, it can be concluded that presently the concept

of e-Broking is not prevalent in the market. Still the traditional method of

offline trading is preferred by the people. As it is a new concept, it will take

time for people to change their mode of trading.

2. If properly marketed, the concept of e-Broking can be penetrated in the minds

of people. For this the benefits of e-Broking should be conveyed to those

who are not aware of it. Training should be given regarding the use of

software. People should be educated regarding the easiness of trading while

using online trading.

3. The users of online trading are mostly businessman. Other persons falling in

the category of employee, govt. servants or professionals are either not

aware or are not mentally prepared for using e-Broking concept. Such people

can be made aware about the benefits of e-Broking and it uses should be

properly conveyed so that people become ready to use this concept.

4. The two features i.e. Online Transfer of Funds through Multiple Banks and

BSE, NSE, F & O, MCX and NCDEX on a single screen are liked more

compared to other features by the users of e-Broking. These two features

can be emphasized to convert offline traders to online traders.

5. The potential customer for Angel Broking House consist of professionals,

employees and govt. servants because these persons are either not investing

or investing through other broking houses. The persons investing from other

broking houses can be converted to the customers of Angel Broking by

conveying its unique features and the low brokerage cost and the rest can be

educated about stock market.

111

LIMITATIONS OF THE STUDY

The limitations of this study are as follows:

Personal Bias:

Some respondents may have had personal bias due to which they may not

have given the correct information and due to which the right conclusion may

not have been derived at.

Area:

The area was limited only to Jamnagar city. The result may have varied, if it

was conducted somewhere else.

Sample Size:

The Sample size taken is only 55 due to time constraint; which may not result

in very accurate results.

Time Limit:

The time limit taken for conducting the research was very less which could

also be one of the limitations of the study.

112

RECOMMENDATIONS

To make the concept of e-Broking powerful, the Company must educate the

people regarding the benefits of e-Broking.

The Company can give training to the customers regarding e-Broking and

keep seminars for the customers.

A person having sound knowledge about using the software can be appointed

to solve the queries of customers.

The benefits of e-Broking must be marketed properly in order to make people

use e-Broking. Through this the Company can increase the awareness of e-

Broking.

The features of online trading can be used by the Company to convert offline

traders to online traders.

The potential customer can be identified by knowing the competitor’s

customer and they can be conveyed to trade with Angel Broking by conveying

the unique features and low brokerage provided by the Company.

113

APPENDIX

QUESTIONNAIRE :

Hello Sir / Madam

This survey aims to find out the present and the future scenario of e-Broking in

stock market. This survey is carried out purely for the academic purpose. It will

remain highly confidential.

Hope you would spend your valuable time in going through the questionnaire and

filling it up. Your kind contribution is heartily acknowledged.

In anticipation,

Thanking you for your cooperation,

( Charmy Kotecha )

1) Are you aware about stock market ?

□ Yes □ No

2) Do you invest ?

□ Yes □ No

3) If yes, then in which alternative do you invest ?

□ Gold □ Real Estate □ Stock Market

□ Mutual Fund □ Bank FD □ RBI Bonds

□ NSC etc… □ Others _______

4) Among the investment alternatives do you believe that Share

Market is one of the best options to invest in ?

□ Yes □ No

114

5) In which Stock Broking House do you prefer to invest ?

□ Angel □ Marwadi □ Share Khan

□ Indiabulls □ ICICI □ India Infoline

□ Others __________

6) Which mode of trading alternative do you use ?

□ Online Trading □ Offline Trading

7) Are you aware about e-Broking ?

□ Yes □ No

8) If yes, then which features of e-Broking you like the most ?

□ Instant Online Fund Transfer with Multiple Banks

□ BSE, NSE, F & O, MCX and NCDEX in a single screen

□ No installation required

□ Advantages of mobility

□ Intra day / Historical charts with various indicators

9) Is there any disadvantage of e-Broking ?

□ Yes □ No

10)If yes, then specify that

_____________________________________________________

_____________________________________________________

11)Give your comments on future scenario of e-Broking

_____________________________________________________

_____________________________________________________

_____________________________________________________

115

PERSONAL DETAILS :

1) Name : _______________________________________________

2) Age : □ 21-35 □ 36-50 □ 51-65 □ Above 66

3) Occupation :

□ Profession □ Businessman □ Govt. Servant

□ Employee □ Others __________

4) Yearly Income :

□ Less than 1 lac □ 1 to 2 lacs □ 2 to 3.5 lacs

□ 3.5 to 5 lacs □ 5 lacs or more

5) Address and Phone No. : _________________________________

_________________________________

_________________________________

_________________________________

_________________________________

Thank you for you kind cooperation

116

LIST OF FIGURES :

SERIAL NO.

FIGURE NO.

DETAILS PAGE NO.

1. 1 Concept of Financial System 412. 2 Financial System 41

LIST OF TABLES :

SERIAL NO.

TABLE NO.

DETAILS PAGE NO.

1. 1 Angel Group of Companies 62. 2 List of Stock Exchanges 443. 3 Comparison of charges of Broking Houses 574. 4 Profession Tax on Salaries 855. 1 Mode of Data Collection 966. 2 No. of Users and Non Users of e-Broking 987. 3 The age of the people using e-Broking

Service99

8. 4 The occupation of the people using e-Broking Service

100

9. 5 The yearly income of the people using e-Broking Service

101

10. 6 The Broking House from where people using e-Broking Service prefer to invest

102

11. 7 The features liked by people using e-Broking Service

104

12. 8 The age of the people not using e-Broking Service

106

13. 9 The occupation of the people not using e-Broking Service

107

14. 10 The yearly income of the people not using e-Broking Service

108

15. 11 The Broking House from where people not using e-Broking Service prefer to invest

109

117

LIST OF GRAPHS:

SERIAL NO.

GRAPH NO.

DETAILS PAGE NO.

1. 1 Users and Non Users of e-Broking 982. 2 The age of the people using e-Broking

Service99

3. 3 The occupation of the people using e-Broking Service

100

4. 4 The yearly income of the people using e-Broking Service

101

5. 5 The Broking House from where people using e-Broking Service prefer to invest

102

6. 6 The features liked by people using e-Broking Service

104

7. 7 The age of the people not using e-Broking Service

106

8. 8 The occupation of the people not using e-Broking Service

107

9. 9 The yearly income of the people not using e-Broking Service

108

10. 10 The Broking House from where people not using e-Broking Service prefer to invest

109

118

BIBLIOGRAPHY

BOOKS :

Ashwathappa K., Human Resource and Personnel Management,

Fourth Edition, 2005, Tata McGraw-Hill Publishing Company Ltd., New

Delhi

Chunavala & Patel, Production and Operations Management, Fifth

Edition, 2003, Himalaya Publishing House, Mumbai

Kotler Philip, Marketing Management, Eleventh Edition, 2002,

Prentice-Hall of India, New Delhi

Telsang Martand, Industrial Engineering and Production Management,

Second Edition, 2002, S. Chand & Co. Ltd.New Delhi

Angel Brochures and Pamphlets

WEBSITES :

www.angelbroking,com

www.angeltrade.com

www.harmony.angeltrade.com

www.nseindia.com

www.bse.com

www.sebi.gov.in

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