SEMINARSEMINARONON

(COMPARATIVE ANALYSIS OF (COMPARATIVE ANALYSIS OF STOCK BROKERS IN AMBALASTOCK BROKERS IN AMBALA))

Sanjay BhatSanjay Bhat

M.B.A 3M.B.A 3rdrd Sem Sem

J.I.M.TJ.I.M.T

ByBy:: Submitted To: Dr Surendra Gupta

H.O.D J.I.M.T

TABLE OF CONTENTS

Stock Brokers: An Introduction

An Insight to IndiaBulls.

Founders of the Company

Large Shareholders of India Bulls.

Indiabulls : Group Companies.

Services of IndiaBulls.

Competitors Overview

Growth of Indiabulls.

Geographical Area Coverage

Limitations

Comparative Analysis

Findings

Summary

Suggestions

STOCK BROKERS: STOCK BROKERS: INTRODUCTIONINTRODUCTION

““Stock brokers are the ones who buy and Stock brokers are the ones who buy and sell securities on behalf of individuals sell securities on behalf of individuals and institutions for some commissionand institutions for some commission”.”.

The work of stock brokers depends upon the The work of stock brokers depends upon the kind operations they engage themselves into. kind operations they engage themselves into. Some of the brokers like to practice with Some of the brokers like to practice with individual clients while others work for individual clients while others work for institutions.institutions.

FAMOUS STOCK BROKERS OF FAMOUS STOCK BROKERS OF INDIAINDIA

INDIA BULLS: INSIGHT

•Indiabulls is India’s leading Financial Services and Real estate Company with a Pan India presence. It offers ease, convenience and reliability in all products from securities to consumer finance, mortgage to real estate development

Indiabulls serves the financial needs of more than 4,50,000 customers with its wide range of financial services and products from securities, derivatives trading, depositary services, research & advisory services, consumer secured & unsecured credit, loan against shares and mortgage & housing finance.

With around 4000 Relationship Managers, Indiabulls helps its clients to satisfy their customized financial goals. Indiabulls through its group companies has entered Indian Real Estate business in 2005.

Indiabulls became the first company to bring FDI in Indian Real Estate through a JV with Farallon Capital Management

Indiabulls has demonstrated deep understanding and commitment to Indian Real Estate market by winning competitive bids for landmark properties in Mumbai and Delhi.”

FOUNDERS OF THE COMPANY

LARGE SHAREHOLDERS OF INDIA LARGE SHAREHOLDERS OF INDIA BULLSBULLS

INDIA BULLS : GROUP COMPANIESINDIA BULLS : GROUP COMPANIES

Indiabulls Securities LimitedIndiabulls Securities Limited

INDIABULLS REAL ESTATEINDIABULLS REAL ESTATE

INDIA BULLS POWER SERVICES INDIA BULLS POWER SERVICES LIMITEDLIMITED

SERVICESSERVICES

There are 3 mediums of using / There are 3 mediums of using / accessing our Trading Services.accessing our Trading Services.

Power Indiabulls (PIB)Power Indiabulls (PIB) Indiabulls Signature AccountIndiabulls Signature Account Relationship manager (RM) Relationship manager (RM)

Power IndiabullsPower Indiabulls

The Power Indiabulls SOFTWARE is ideally The Power Indiabulls SOFTWARE is ideally suited for the active trader. This software gets suited for the active trader. This software gets installed on the client machine and is similar to installed on the client machine and is similar to a Dealer Terminal over the Internet.a Dealer Terminal over the Internet.

The terminal has a lot of features that makes it The terminal has a lot of features that makes it extremely usable from the point of view of a extremely usable from the point of view of a trader who is active in the market. trader who is active in the market.

FEATURESFEATURES Rapid Order Entry.Rapid Order Entry.

Multiple tick by tick chartingMultiple tick by tick charting

Advanced Technical AnalysisAdvanced Technical Analysis

Single key stroke order entry.Single key stroke order entry.

Live news and alertsLive news and alerts

INDIABULLS SIGNATURE INDIABULLS SIGNATURE ACCOUNTACCOUNT

A multitude of ways to access your A multitude of ways to access your account either through priority access account either through priority access to Relationship Manager over phone to Relationship Manager over phone OR online access to your Account & OR online access to your Account & Research ToolsResearch Tools

FEATURES FEATURES

Priority ServicePriority Service — Enjoy priority telephone — Enjoy priority telephone access that gives you direct access to your access that gives you direct access to your Relationship Manager. Relationship Manager.

Premium ResearchPremium Research — Benefit from full — Benefit from full access to Indiabulls Equity Analysis TM, our access to Indiabulls Equity Analysis TM, our objective, fact-based approach to rating stocks.objective, fact-based approach to rating stocks.

Online AccountingOnline Accounting — Stay on the top of your — Stay on the top of your investments with a snapshot of your Account investments with a snapshot of your Account Statements. Get access to Portfolio statement Statements. Get access to Portfolio statement and access to digital contract notes.and access to digital contract notes.

COMPETITORSCOMPETITORS

OVERVIEWOVERVIEW

Indiainfoline security private ltdIndiainfoline security private ltd

India Infoline.com Securities Pvt. Ltd. is a wholly India Infoline.com Securities Pvt. Ltd. is a wholly owned subsidiary of India Infoline.com Ltd and is the owned subsidiary of India Infoline.com Ltd and is the stock broking arm of IndiaInfoline.com stock broking arm of IndiaInfoline.com

IILSPL has applied for trading membership of The IILSPL has applied for trading membership of The Stock Exchange Mumbai ("BSE") and to be Stock Exchange Mumbai ("BSE") and to be registered with Securities and Exchange Board of registered with Securities and Exchange Board of India ("SEBI") under Securities and Exchange Board India ("SEBI") under Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) Rules of India (Stock Brokers and Sub-Brokers) Rules 1992. 1992.

IILSPL is a TRADING MEMBER of IILSPL is a TRADING MEMBER of the National Stock Exchange of India the National Stock Exchange of India ("NSE") ("NSE")

ICICI DIRECTICICI DIRECT

ICICI Web Trade Limited (IWTL) ICICI Web Trade Limited (IWTL) maintains www.icicidirect.com maintains www.icicidirect.com (hereinafter referred to as the (hereinafter referred to as the "Website") Whereas IWTL is an "Website") Whereas IWTL is an Affiliate of ICICI Bank Limited and Affiliate of ICICI Bank Limited and the Website is owned by ICICI Bank the Website is owned by ICICI Bank Limited Limited

Products and ServicesProducts and Services

Cash Trading: -Cash Trading: - This is a delivery based This is a delivery based trading system, which is generally done with trading system, which is generally done with the intention of taking delivery of shares. the intention of taking delivery of shares.

BTST : BTST : Buy Today Sell Tomorrow (BTST) is a Buy Today Sell Tomorrow (BTST) is a facility that allows you to sell shares even on 1st and facility that allows you to sell shares even on 1st and 2nd day after the buy order date, without you having 2nd day after the buy order date, without you having to wait for the receipt of shares into your demat to wait for the receipt of shares into your demat account.account.

CallNTrade :-CallNTrade :- CallNTrade allows you to call CallNTrade allows you to call on a local number in your city & trade on the on a local number in your city & trade on the telephone through our Customer Service telephone through our Customer Service Executives. This facility is currently available Executives. This facility is currently available in over in over 11 major states across India11 major states across India

Trading on NSE/BSE:Trading on NSE/BSE: Through Through ICICIdirect.com, you can trade on ICICIdirect.com, you can trade on NSENSE as well as as well as BSEBSE..

HDFC SecurityHDFC Security

• HDFC Securities(HDFCsec) is Equity Trading Company HDFC Securities(HDFCsec) is Equity Trading Company of of

HDFC Bank. HDFC Securities provide both online trading HDFC Bank. HDFC Securities provide both online trading and trading on phone. The HDFC Securities trading account has a and trading on phone. The HDFC Securities trading account has a unique 3-in-1 feature that integrates your HDFC Securities trading unique 3-in-1 feature that integrates your HDFC Securities trading account with your existing HDFC bank savings account and account with your existing HDFC bank savings account and existing Demat account. Funds / shares are seamlessly moved existing Demat account. Funds / shares are seamlessly moved from the linked Demat/Bank account to execute the transactions. from the linked Demat/Bank account to execute the transactions.

• HDFC sec provides Cash-n-Carry on both NSE and BSE, HDFC sec provides Cash-n-Carry on both NSE and BSE, Day trading on both NSE and BSE, Trade on Futures & Options Day trading on both NSE and BSE, Trade on Futures & Options on the NSE and Online IPO Investment.on the NSE and Online IPO Investment.

FEATURESFEATURES Seamless Transactions - By integrating your Seamless Transactions - By integrating your

accounts, we ensure minimal waste of time during accounts, we ensure minimal waste of time during movement of your funds and shares. movement of your funds and shares.

SpeedSpeed - Orders are placed electronically, so proceeds - Orders are placed electronically, so proceeds are available instantly. are available instantly.

No manipulationNo manipulation - To prevent any mismanagement, we - To prevent any mismanagement, we will send you an email confirmation, the minute your will send you an email confirmation, the minute your order is executed. order is executed.

Safety and Security - HDFC Securities offer the Safety and Security - HDFC Securities offer the highest level of security such as 128-bit encryption highest level of security such as 128-bit encryption technology.technology.

GROWTH OF INDIA BULLSGROWTH OF INDIA BULLS

Indiabulls has emerged as one of the leading Indiabulls has emerged as one of the leading and fastest growing financial company in less and fastest growing financial company in less than two year, since its initial public offering than two year, since its initial public offering in September 2004. in September 2004.

It has a market capitalization of around USD It has a market capitalization of around USD 6300 million and consolidated net worth of 6300 million and consolidated net worth of around USD 905 million.around USD 905 million.

BRAND RECOGNITION &CUSTOMER SATISFACTION

Increasing Number of Customers

16,455 30,49879,932

108,324

178,800

330,000

450,000

0

100,000

200,000

300,000

400,000

500,000

Mar-03 Mar-04 Mar-05 Jun-05 Dec-05 Jun-06 Jan-08

GEOGRAPHICAL AREA GEOGRAPHICAL AREA COVERAGECOVERAGE

0

100

200

300

400

500

600

700

3-D Column 1 25 63 148 241 414 640

Mar-03 Mar-04 Mar-05 Jun-05 Jun-06 7-Jun

Indiabulls started its journey in year 2001 with a registered office in New Delhi. Year 2003 describe that it has only 25 branches in India. But now it has over 640 branches as on dec 2007.It shows it’s continuously on growth.

LIMITATIONSLIMITATIONS

As only As only AMBALAAMBALA dealt in survey so it does dealt in survey so it does not represent the view of the total Indian not represent the view of the total Indian market.market.

Size of the research may not be substantial.Size of the research may not be substantial.

The survey was carried through questionnaire The survey was carried through questionnaire and the questions were based on perception.and the questions were based on perception.

COMPARATIVE

ANALYSIS

Results on the Basis of charges Brokerage table

, 1.25

, 0.75

, 0.5

, 0.2

0

0.2

0.4

0.6

0.8

1

1.2

1.4

ICICIDIRECT HDFCSECURITY INDIABULLS INFOLINE

Company name

Bro

ke

rag

e i

n p

as

ia

ICICIDIRECT HDFCSECURITY INDIABULLS INFOLINE

Comment :-According to the survey Icicidirect charges maximum brokerage charges as compared to others. But Indiabulls charge only .50 on maximum investment

Results on the basis of Account Opening Charges

ACCOUNT OPENING CHARGES

900

750

799

500

0 200 400 600 800 1000

indiabulls

icici direct

HDFC security

infoline

CO

MP

AN

Y

CHARGES IN RUPEES

Comment :- According to this survey Indiabulls charges maximum account opening charges that is Rs. 900 but it has no yearly charges while others have yearly charges also.

Results on the basis of customer preferences

According to survey 70 % peoples are satisfied with Indiabulls because of their RM’s facility, power of Indiabulls software.

According to survey Indiabulls open new branches for individually handle to their customer. But in icicidirect, HDFC security there is no separate office for this .So people prefer Indiabulls.

Customer Satisfaction is of prime importance at India bulls.

According to survey services of Indiabulls are faster as compared to others.

Results On The Basis Of Ranking

• Many factors are considered in this ranking. The primary factor is market capital and secondary factors are capital employed, gross block, sales, profit after tax. Publisher of capital market, 5paisa .com, conducts this survey?

Name of company

Market capital

Capital employed

Gross Block

Sales Profit after tax

Indiabulls 112 191 500 487 387

Indiainfoline ltd.

421 495 498 495 421

ICICI 12 2 26 24 9

HDFC 16 13 92 70 44

Results On The Basis Of Facilities

Basis of difference Indiabulls Indiainfoline ICICI HDFC

Share trading Yes Yes Yes Yes

Commodity trading

Yes Yes Yes Yes

Insurance services through subsidiary

Yes No Yes Yes

Loans Yes Yes Yes Yes

Merchant banking No No No No

Real Estate Yes No No No

Business process outsourcing

No No No No

Special services* Yes Yes No No

d-mat opening rights Yes Yes Yes No

Special services*:-Relationship manager:-Indiabulls only provide relationship manager facility for building good relation with customers

Software:-Indiabulls only provide facility of power Indiabulls software for online trading

FINDINGSFINDINGS

According to the survey most of the According to the survey most of the customer of “Indiabulls” says that it is customer of “Indiabulls” says that it is pocket friendly.pocket friendly.

Coming to faith 70% say Indiabulls is Coming to faith 70% say Indiabulls is better than others stock brokers due to better than others stock brokers due to customers satisfaction. customers satisfaction.

Lack of promotional activities Lack of promotional activities undertaken by Indiabulls securities undertaken by Indiabulls securities Ltd in Ambala Region. Ltd in Ambala Region.

If some persons interested to become sub If some persons interested to become sub brokers of Indiabulls then there is no provision brokers of Indiabulls then there is no provision about this.about this.

SUMMARYSUMMARY

Stock brokers are one of the main participants in Stock brokers are one of the main participants in stock exchanges worldwide. They often act as an stock exchanges worldwide. They often act as an agent for their clients, making trades on their behalf. agent for their clients, making trades on their behalf. They also act as advisors, providing suggestions to They also act as advisors, providing suggestions to their clients on what stocks to buy and sell. their clients on what stocks to buy and sell.

With so many options and considerations that need to With so many options and considerations that need to be taken into account, it is an extremely arduous task be taken into account, it is an extremely arduous task for a broker to investigate aspects of the stock market for a broker to investigate aspects of the stock market and consistently provide effective advice to their and consistently provide effective advice to their clients clients

SUGGESTIONSSUGGESTIONS

The company should convene meeting of customers The company should convene meeting of customers to hear their grievances and also to listen their to hear their grievances and also to listen their suggestions .suggestions .

Redressal of complaints of customers at earliest is Redressal of complaints of customers at earliest is required .required .

Indiabulls should exploit all modern satellite media Indiabulls should exploit all modern satellite media for promotional activities, which will help to capture for promotional activities, which will help to capture more market share.more market share.

One of the problems with these systems is that One of the problems with these systems is that they are created as a single, large software they are created as a single, large software package. Thus, the time and costs of package. Thus, the time and costs of developing such a complex system is generally developing such a complex system is generally high, and so are the maintenance costs high, and so are the maintenance costs associated with themassociated with them. .

It would be beneficial to develop a broker It would be beneficial to develop a broker system with reusability in mind. system with reusability in mind.

Thank YouThank You