A

PROJECT REPORT

ON

“Banking requirements of Share Brokers”

Undertaken At

“KOTAK MAHINDRA BANK”

Submitted In The Partial Fulfillment For The Award Of The Degree

Of

BACHELOR OF BUSINESS ADMINISTRATION

Submitted to: Submitted by:

Mr. Sachin Mongia Miss Vandana Chaudhary

RESEARCH OBJECTIVES

Various Objectives for conducting the research and analysis are listed as

under:

1. Study the impact of a customer centric approach being followed by the

Bank, and what is its benefit.

2. Compare the services offered by Kotak Mahindra Bank and the

customer’s satisfaction level of the same with that of other Banks in the

Private and Government sector, and to assess where the Bank has to

improve.

3. Finally to draw the various conclusion and recommendations on the

basis of the study conducted on specifically taking to consideration the

banking requirements of stock brokers.

REASEARCH METHODOLOGY

Research comprise defining and redefining problems, formulating

hypothesis or suggested solutions; collecting, organizing and evaluating

data; making deductions and reaching conclusions; and at last carefully

testing the conclusions to determine whether they fit the formulating

Hypothesis.

In short, the search for Knowledge through Objective and Systematic

method of finding solutions to a problem is Research.

METHODOLOGY:

The methodology adopted in conducting this survey was quite simple. First

there was collection of data from various sources including personal

interview. Then after scanning and properly analyzing and interpreting the

information available on hand, a final report was prepared.

1. PRIMARY DATA: Primary data was collected from the sample by a self-

administered questionnaire in presence of the interviewer.

2. SECONDARY DATA: The chief sources of secondary data was internet.

RESEARCH DESIGN

Type of Research: - Descriptive research

Descriptive research is also called Statistical Research. The main goal of

this type of research is to describe the data and characteristics about what

is being studied..

The regular interaction with the Customers revealed about the various

strategies involved in performing business activities.

Descriptive research includes Surveys and fact-finding enquiries of different

kinds. The main characteristic of this method is that the researcher has no

control over the variables; he can only report what has happened or what is

happening.

DATA SOURCES

There are two types of data:

PRIMARY DATA

The data that is collected first hand by someone specifically for the purpose

of facilitating the study is known as primary data. So in this research the

data is collected from respondents directly.

SECONDARY DATA.

For the company information I had used secondary data like brochures, web

site of the company etc.

The Method used by me is Survey Method as the research done is

Descriptive Research.

RESEARCH INSTRUMENTS

Selected instrument for Data Collection for Survey is Questionnaire.

SAMPLE SIZE:

The survey is conducted among 10 respondents of Delhi. Total market size

of stock brokers in Delhi is 50.

SCOPE OF THE STUDY

 

The study provides knowledge of various products & services offered by

Banks to stock brokers.

The study helps in finding out the satisfaction of customers of Kotak

Mahindra Bank.

The study also helps to learn about share broking industry.

The study also helps the company to know the requirements of share

brokers.

LIMITATIONS

 

The study could not be made that comprehensive due to time constraints.

Some customers feel uncomfortable to reveal some personal information

relating to amounts, etc. It might have happened that some more essential

information could have been collected.

 

Time constraint.

Biases and non-cooperation of the respondents.

Financial constraint.

Geographical selectivity in study limiting to Delhi city only.

People are not interested in giving personal opinion.

Share Broking Industry

INTRODUCTION

Stock exchanges to some extent play an important role as indicators,

reflecting the performance of the country’s economic state of health. Stock

market is a place where securities are bought and sold. It is exposed to a

high degree of volatility, prices fluctuate within minutes and are determined

by the demand and supply of stocks at a given time. Stock brokers are the

ones who buys and sells securities on behalf of individuals and institutions

for some commission.

The Securities and Exchange Board of India (SEBI) is the authorized body,

which regulates the operations of stock exchanges, banks and other

financial institutions. The past performances in the capital markets

especially the securities scam by ‘Hasrshad Mehta’ has led to tightening of

the operations by SEBI. In addition the international trading and investment

exposure has made it imperative to better operational efficiency. With the

view to improve, discipline and bring greater transparency in this sector,

constant efforts are being made and to a certain extent improvements have

been made.

HISTORY OF THE STOCK BROKING INDUSTRY

Indian Stock Markets are one of the oldest in Asia. Its history dates back to

nearly 200 years ago. The earliest records of security dealings in India are

meager and obscure.

By 1830's business on corporate stocks and shares in Bank and Cotton

presses took place in Bombay. Though the trading list was broader in 1839,

there were only half a dozen brokers recognized by banks and merchants

during 1840 and 1850. The 1850's witnessed a rapid development of

commercial enterprise and brokerage business attracted many men into the

field and by 1860 the number of brokers increased into 60.

In 1860-61 the American Civil War broke out and cotton supply from United

States of Europe was stopped; thus, the 'Share Mania' in India begun. The

number of brokers increased to about 200 to 250. However, at the end of

the American Civil War, in 1865, a disastrous slump began (for example,

Bank of Bombay Share which had touched Rs 2850 could only be sold at

Rs. 87). At the end of the American Civil War, the brokers who thrived out

of Civil War in 1874, found a place in a street (now appropriately called as

Dalal Street) where they would conveniently assemble and transact

business.

In 1887, they formally established in Bombay, the "Native Share and Stock

Brokers' Association" (which is alternatively known as "The Stock

Exchange"). In 1895, the Stock Exchange acquired a premise in the same

street and it was inaugurated in 1899. Thus, the Stock Exchange at

Bombay was consolidated.

Thus in the same way, gradually with the passage of time number of

exchanges were increased and at currently it reached to the figure of 24

stock exchanges.

Developments

An important early event in the development of the stock market in India

was the formation of the Native Share and Stock Brokers’ Association at

Bombay in 1875, the precursor of the present-day Bombay Stock

Exchange. This was followed by the formation of associations /exchanges

in Ahmedabad (1894), Calcutta (1908), and Madras (1937). IN addition, a

large number of ephemeral exchanges emerged mainly in buoyant periods

to recede into oblivion during depressing times subsequently.

In order to check such aberrations and promote a more orderly

development of the stock market, the central government introduced a

legislation called the Securities Contracts (Regulation) Act, 1956. Under

this legislation, it is mandatory on the part of a stock exchanges to seek

government recognition. As of January 2002 there were 23 stock

exchanges recognized by the central Government. They are located at

Ahemdabad, Bangalore, Baroda, Bhubaneshwar, Calcutta, Chenni,(the

Madras stock Exchanges ), Cochin, Coimbatore, Delhi, Guwahati,

Hyderbad, Indore, Jaipur, Kanpur, Ludhiana, Mangalore, Mumbai(the

National Stock Exchange or NSE), Mumbai (The Stock Exchange),

papularly called the Bombay Stock Exchange, Mumbai (OTC Exchange of

India), Mumbai (The Inter-connected Stock Exchange of India), Patna,

Pune, and Rajkot. Of course, the principle bourses are the National Stock

Exchange and The Bombay Stock Exchange , accounting for the bulk of

the business done on the Indian stock market.

While the recognized stock exchanges have been accorded a privileged

position, they are subject to governmental supervision and control. The

rules of a recognized stock exchanges relating to the managerial powers of

the governing body, admission, suspension, expulsion, and re-admission of

its members, appointment of authorized representatives and clerks, so on

and so forth have to be approved by the government. These rules can be

amended, varied or rescinded only with the prior approval of the

government.

Current Scenario

Stock Brokers are the professionals who are involved in buying and selling

of securities for individuals or institutions in stock markets. As there is

ample scope in this field, individuals can hope for a better future.

Today's progressive brokers deal in billions rather than in millions. Brokers

now have all their operations computerized and employ qualified industry

specialists to advice on buying and selling of stocks.

Stock markets in India have gone through tremendous improvements in

recent time with the introduction of various norms. These norms are for

greater transparency in operations and the international trading and

investment process.

Indian stock exchanges, today, are dealing with big numbers and big

buyers. The capital markets are undergoing transformation.

The National Stock Exchange or NSE provides nationwide facilities with

access to investors all over the country. The automated, screen-based

trading system using state-of-the-art technology makes market operations

transparent.

The Securities and Exchange Board of India (SEBI) has been empowered

by an Act of Parliament to protect the rights of investors and ensure the

promotion and regulation of the capital markets. It is the regulatory body in

charge of the country's capital markets.

Stock broking business can be done in three ways-

Institutional Broking- Institutional stock broking is the provision of stock broking services to fund managers and other financial institutions.

Clients usually get access with broking services, with the level of access dependent on how much business they give the broker.

Institutional clients are in a significantly stronger position in dealing with a broker than are private clients. Not only do they have more business to offer, they are also rarely as dependent on the broker. They will use several brokers, who are thus constantly competing to for their business.

Fund managers will often use a mixture of major brokers (those owned by the big investment banks) and smaller "boutique" brokers who are niche specialists (such as smaller companies or a particular sector).

There is a significant risk that institutional broking will be changed by regulators and clients. This may also open the way for independent research houses to take market share in research. That said, the biggest brokers are very well established as providers of research and will not be easily dislodged.

Individual Broking- The services of private client stockbrokers, whose clients are mostly private individuals, are very different from the services of institutional brokers.

The most important difference is that private client stockbrokers often manage a clients portfolio, taking investment decisions on behalf of the client when offering a discretionary broking service. This service is more like that of a fund manager (albeit dealing with smaller portfolios) than that of an institutional broker.

A broker providing an advisory broking supplies information and advice, but the client makes the investment decisions.

Private clients demand much less research than institutions do. Smaller private client stockbrokers may not even produce any research as such at all, with what little is done being ad hoc and informal.

Arbitrage Broking- Trading of similar securities in two different markets simultaneously is known as Arbitraging. This happens when there exists a difference in the price of a security between two or more markets. This is an opportunity to make profit by entering in two or more markets by trading the same security. Arbitraging is a financial transaction that has minimum or no risk. The primary cause for variance in price is due to market inefficiencies.

Arbitraging as a trading strategy can be applied to any financial instrument such as stocks, bonds, derivatives, commodities and currency. A person who engages in arbitraging is known as arbitrageur. An arbitrageur can be a bank, brokerage firm or an individual.

Arbitraging trading in stocks continues till the price difference is narrowed down. Arbitraging ensures that the prices do not deviate much from their fair value for long periods of time.

It has become increasingly difficult to profit from the price variance in the markets due to technological advancements and the global connectivity. The traders are quick enough to act on price inefficiency and therefore such opportunities do not last long. There are many types of software available in the market that helps in arbitraging. However, the cost of these softwares is very high.

Although arbitrage trading does exist in the real markets and it helps in reducing the volatility in the market. There are often few risks involved like execution risk – if the trade is not executed properly. The other risks could be counterparty risks and liquidity risk where the counterparty fails to make the payment or one does not have enough money to deposit as margin required for trading.

BSE(BOMBAY STOCK EXCHANGE)

The Stock Exchange, Mumbai, popularly known as "BSE" was established

in 1875 as "The Native Share and Stock Brokers Association". It is the

oldest one in Asia, even older than the Tokyo Stock Exchange, which was

established in 1878. It is a voluntary non-profit making Association of

Persons (AOP) and is currently engaged in the process of converting itself

into demutualised and corporate entity. It has evolved over the years into

its present status as the premier Stock Exchange in the country. It is the

first Stock Exchange in the Country to have obtained permanent

recognition in 1956 from the Govt. of India under the Securities Contracts

(Regulation) Act, 1956.

The Exchange, while providing an efficient and transparent market for

trading in securities, debt and derivatives upholds the interests of the

investors and ensures redressal of their grievances whether against the

companies or its own member-brokers. It also strives to educate and

enlighten the investors by conducting investor education program and

making available to them necessary informative inputs.

A Governing Board having 20 directors is the apex body, which decides the

policies and regulates the affairs of the Exchange. The Governing Board

consists of 9 elected directors, who are from the broking community (one

third of them retire ever year by rotation), three SEBI nominees, six public

representatives and an Executive Director & Chief Executive Officer and a

Chief Operating Officer.

NSE(NATIONAL STOCK EXCHANGE)

NSE was incorporated in 1992 and was given recognition as a stock

exchange in April 1993. It started operations in June 1994, with trading on

the Wholesale Debt Market Segment. Subsequently it launched the Capital

Market Segment in November 1994 as a trading platform for equities and

the Futures and Options Segment in June 2000 for various derivative

instruments.

NSE has been able to take the stock market to the doorsteps of the

investors. The technology has been harnessed to deliver the services to

the investors across the country at the cheapest possible cost. It provides a

nation-wide, screen-based, automated trading system, with a high degree

of transparency and equal access to investors irrespective of geographical

location. The high level of information dissemination through on-line system

has helped in integrating retail investors on a nation-wide basis. The

standards set by the exchange in terms of market practices, Products ,

technology and service standards have become industry benchmarks and

are being replicated by other market participants. Within a very short span

of time, NSE has been able to achieve all the objectives for which it was set

up. It has been playing a leading role as a change agent in transforming the

Indian Capital Markets to its present form. The Indian Capital Markets are a

far cry from what they used to be a decade ago in terms of market

practices, infrastructure, technology, risk management, clearing and

settlement and investor service.

The Indian broking industry has come a long way in the last decade and has also undergone a significant paradigm shift. The industry has shed most of its negative trappings of the past and is now being considered a preferred sector for building long term careers by professionals from all disciplines. Unprecedented growth of market volumes and growing participation by investors spread beyond the traditional geographical pockets, coupled with professionalization of work cultures and demand for value-added services like investment advisory and portfolio management, has created a huge demand for talent at all levels.

This growth story is expected to be sustained for at least a decade or even more because of the steady increase in the investor penetration and wider acceptance of stock investments as a reliable option for long term wealth creation. Robust all round economic growth and favorable demographics are other important factors which are transforming India from a nation of savers to investors. Improved quality of the Indian regulatory framework and high compliance standards, have led to greater transparency in all transactions and minimized the systemic risks.

Historically, the Indian financial services industry has been dominated by the banking sector. However, globalization & liberalization of Indian Equity Markets has led to rapid modernization and the professionalization of the financial sector. This has led to the emergence of the broking industry, as an important part of the financial services sector, competing for talent with banks, insurance companies, NBFCs etc. The Indian Broking industry has indeed come of age & is attracting huge investments from large domestic corporate houses as well as from international players. The Indian Broking industry is now in a most exciting phase and is likely to grow at a much faster rate compared with many other sectors. High quality Research & Advice, State-of-the-art Technology & Business Analytics, Progressive HR Practices and CRM/Quality Management systems, have emerged as the new drivers of competitive advantage in this business. The

scope of services provided by domestic brokerages has also moved up the value chain from mere Execution & Settlement to cover the full range of financial products to meet the diverse needs of customers, who are better educated and aware about Personal Financial Planning.

Products offered by banks to stock brokers

- Bank Guarantee- The Bank issues bank guarantees to brokers on both the Capital Market segment favoring the NSE/ BSE Stock Exchange to meet Security Deposit/ Base Capital and Margin requirements of the exchanges and Professional Clearing for trading members clearing their trades through them.

- Clearing and settlement account- The Bank is the leading Clearing and Settlement Bank for The National Stock Exchange of India (NSE) and The Bombay Stock Exchange (BSE), and offers a range of products and services in the capital markets. It is also a Clearing and Settlement Bank for other Exchanges in India.

- Secured Overdraft- To meet working capital requirements of the brokers on the Capital Market segment, the Bank provides after thorough credit appraisal secured overdraft in the form of overdraft against shares.

- Temporary Overdraft- Bank at its discretion provides Temporary Overdrafts to meet exchange obligations and for any temporary cash flow mismatches.

- Current accounts- Bank offers unparalleled advantages with its three Current Account offerings. Whether small/ mid size business or an enterprise spread across multiple locations in the country, would find a Current Account. These Current accounts offer attractive returns along with personalized banking services.

- Salary accounts- Salary accounts in HDFC Bank make salary payments to employees merely by uploading a file through the CMS - disbursement module, thus saving a lot of time.

-  Intra Day Funding - Intraday funding to meet pay-in obligations (against cheques deposited in clearing or pay-out to be received from exchange) and client obligation.

- Custodial services- The Bank has been appointed Custodian by the National Stock Exchange - the country's leading automated exchange in respect of the securities deposited by the trading members.

- Demat account- Demat Services offers you a secure and convenient way to keep track of your securities and investments, without the hassle of handling physical documents

- Dematerialisation of shares - At your request we arrange to convert your physical holdings into electronic form. To do this you would require opening an account with NSDL through us called "Beneficiary Account" in the name and style in which the shares are held and lodge the share certificates with us accompanied by a dematerialisation request form, separate for each scrip. You are required to only make sure that NSDL has admitted that scrip for dematerialisation. An upto date list will be provided to you which will be constantly updated.

- Rematerilialisation - You have the option to convert your electronic shares back to physical shares.

- Dial-Your-Demat- Access your Demat Account(s) through a telephone from any of the Access Centres. Just dial the Tele-Depository Services number and get all information about your account on Voice, Fax or even email. Dial-Your-Demat is available 24 hours a day, 365 days a year. This service offers you a wide range of facilities such as:

Balance inquiry Statement of Demat account by fax or phone or email Transaction details by fax or phone or email

Holding details by fax or phone or email

Overdue cum Holding details by fax or phone or email

Rejection details by fax or phone or email

Change of PIN

To register, submit application form to your closest branch.

Benefits Of Speed-e Convenience of executing instructions directly through Internet, from

wherever access to Internet is available. For NRI investors, it eliminates geographical barriers as also the

need to appoint a power of attorney (POA) to operate the account.

- E net-

Pay in of funds- funds can be transferred from clients account to settlement account instantly for meeting the exchange deadlines without sending any cheque to the bank.

Similarly for confirmation of additional capital to the exchange, funds can be transferred immediately to your settlement account using e net in very little time.

Pay out of funds- funds can be transferred to client’s account for making payments to customer having account with any of the same branches without issuing cheques.

Industries on which the research has been conducted-

1. CPR Capital Services Ltd.-

CPR Capital Services Limited. has a lots of experience in the Indian stock markets. CPR Capital Services Limited. provides Equity Broking, Commodity Trading and IPO Services. Our years of experience have taught us the value of being a reputable company that takes your investments and financial decisions as seriously as you do. Our clients include corporate, retail investors who come to us for an unbiased opinion on how to achieve their investment goals depending on each individuals risk profile. The organization finds its strength in its team of young, talented and confident individuals.

1. Customer interest is paramount.2. Ethical and transparent business practices.

3. Respect for professionals, associates and business partners.

4. Research based value investing.

5. Cutting edge technology to ensure world-class customer service.

CPR has membership of the following exchanges for equity- 1. National Stock Exchange (NSE). 2. Bombay Stock Exchange (BSE).

3. Delhi Stock Exchange (DSE).

CPR capital services ltd uses ICICI banking services.

- Bank Guarantee- Clearing and settlement account

- Secured Overdraft

- Temporary Overdraft

CPR Capital services relationship with Kotak Mahindra Bank-

They do not have any relationship with kotak Mahindra bank.

Reason-

They asked Kotak Mahindra Bank for Bank Guarantee against property but they do not provide such facility.

- Mr.Pawan Garg (011-22382555)

2. Capital Wizard Share Broking pvt Ltd-

Capital Wizard Stock Broking Pvt Ltd (Capital Wizard) is one of the premier trading companies in India. It was established in 2007. The company is promoted by P Goswami. It has membership in NSE in India with a growing client base of about 3,500 accounts that have been added in a period of 10 months since its incorporation. Of these 3,500 accounts, 200 accounts are E-broking accounts. The company carries out its trading in cash and derivatives market segments. The company operates with 200 employees and 280 terminals all located in Delhi, Punjab and Uttar Pradesh. The company generates almost 100% of its revenues from trading in equity derivatives. All series of cash transactions integrally connected to each other which have been valued below Rs 10 lakh or its equivalent in foreign currency where such series of transactions take place within one calendar month. All suspicious transactions whether or not made in cash and including, inter-alia, credits or debits into from any non monetary account such as d-mat account, security account maintained by the registered intermediary.

Capital Wizard has membership of the following exchanges for equity 1. National Stock Exchange (NSE). 2. Bombay Stock Exchange (BSE).

Capital Wizard uses ICICI banking services.

- Bank Guarantee- Current accounts- Secured Overdraft- Temporary Overdraft

Capital Wizard relationship with Kotak Mahindra Bank-

They do not have any relationship with kotak Mahindra bank.

Reason-

According to them brokers who had opted for the clearing accounts in Kotak are facing some funding problems.

- Mr.Anil Kumar Goswami (0120-2655001)

3. Globe Capital Market ltd.

Globe Capital is one of the largest growing investment solutions companies that provide a wide range of services to its vast and diversified client base.

The company has its corporate office in New Delhi with regional offices in Mumbai, Kolkata & Jaipur and growing network of more than 500+ representative offices across 150+ locations in India with overseas office in London and Dubai.

Globe Capital accounts for more than 10% of NSE clearing volumes in its F&O segment.

In 2008, Globe Capital Market Ltd. attracted US$ 42 million of equity capital in Foreign Direct Investment (FDI) from Citi Group and its representative is also on the Board of the Company.

Being a trusted name in the broking circle we are members of all the major stock exchanges in India. We also hold membership for DGCX, Dubai. We also offer Clearing Services to the Trading Member in the F&O segment and are responsible for a significant chunk of the total clearing activities as high as 10% of the total clearing process.

The Group through Globe Capital Market Limited (GCML) offers trading facilities in the Capital Market and Futures Options (F&O) segments of NSE as well as of BSE. Through our Group company, Globe Commodities Limited, we have membership and trading facilities for all major Commodities Exchanges in India: MCX, NCDEX and NCME. Globe Comex International DMCC is exclusively responsible for trading on Dubai Gold and Commodities Exchange.

Globe also holds membership of two major Depositories in the country i.e. NSDL and CDSL and are catering to over 65000 accounts.

To address varying investment preferences Globe offers Portfolio Management services (PMS). As a focused service, PMS pays attention to details, and portfolios are customized to suit the unique requirements of investors. Equities as an asset class outperform almost any other investment vehicle over a longer time period. PMS aims at providing the same by investing on behalf of clients on the basis of well-conducted research, experience and expertise of our Fund Manager, well supported by our research team.

Globe Capital Market is the # 1 clearing member for both NSE FX and MCX SX in currency trading. At Globe Capital Market we offer currency trading on both NSE FX and MCX SX and is supported by valued research. We offer expert advice on Currency Arbitrage and Hedging strategies to our individual and corporate customers.

Globe Capital has membership of the following exchanges for equity-

National Stock Exchange (NSE) Bombay Stock Exchange (BSE)

Globe Capital uses ICICI and HDFC banking services.

ICICI-

- Bank Guarantee

- Current accounts

- Secured Overdraft

- Temporary Overdraft

HDFC-

- Bank Guarantee

- Structured Products

- Settlement accounts

- Salary accounts

Globe Capital relationship with Kotak Mahindra Bank-

They do not have any relationship with kotak Mahindra bank.

Reason-

Though Kotak Mahindra Bank is a good reputated bank but it is not in terms with the stock market trade in depth.

- Mr.Pradeep Khandelwal (011-30412345)

4. D.B. (International) stock brokers ltd-

DB (International) Stock Brokers Ltd.) is one of India's leading Stock Brokers; Global in vision, rooted in Indian Values and the group is driven by a performance ethic pegged on value creation for its multiple stakeholders. The company was established on February 28, 1992. The company enjoys the honor of serving a large number of valued customers to their satisfaction. The company is active in both Primary market (engaged in mobilising resources through IPOs/Mutual Funds/Bonds etc.) and in Secondary market operations. 80% of its employee base today is NCFM qualified. Its ranking was notified as one of the first five amongst the top 500 brokers based on the amount mobilised in the Primary Market Operations in early 1996 as per Prime Data Base.

The Company is also a SEBI approved Depository Participant of CDSL.They have also taken the membership of NCDEX and MCX for trading in commodities under the name and style of Daga Commodities Pvt. Ltd. and put several trading terminals at various locations all over the country, which are functioning smoothly, and contributing commendable turn over in this segment.

The company’s major assets includes Goodwill earned by performance as a leading players in the market scenario prevailing under all circumstances and the team of well-qualified and experienced professionals such as Ex-Bankers/CA/CS/MBA/Legal consultants, Marketing Executives etc. carrying on the activities of DAGABUSINESS and its associated companies.

The company is having complete modernized computerized operations connecting all the branches with state of the art network technology. Internet based client-trading services in Equities and Derivatives Segment. For internet Trading they have additional platform as per National Stock Exchange, Bombay Stock Exchange and SEBI rules and guidelines. Our groups of professionals do ensure to provide the best available services for trading, depository, Online Back office etc.

D.B. (international) stock brokers has membership of the following exchanges for equity-

1. National Stock Exchange (NSE). 2. Bombay Stock Exchange (BSE).

D.B. (International) stock brokers uses Axis and Indusind banking services.

Indusind-

Bank Guarantee Secured overdraft  Intra Day Funding

Axis-

- Transfer of shares and settlements- Dematerialisation of shares

- Rematerilialisation

D.B. (International) stock brokers relationship with Kotak Mahindra Bank

They do not have any relationship with kotak Mahindra bank.

Reason-

Kotak Mahindra Bank failed to provide third party bank guarantee services.

- Mr.Sanjiv Rawal (011-23353795)

5. Century Finvest pvt ltd

Century Finvest Pvt. ltd is an established financial and stock broking house with a vision to offer various financial services.

Century Finvest Pvt. ltd. is a member of National Stock Exchange of India (NSE). We have well experienced people who are associated with Stock Market for last several years. Our experience and professionalism has helped us to build a large base of satisfied customers and business partners.

Our years of experience have taught us the value of being a reputable company that takes your investments and financial decisions as seriously as you do. Our clients include corporate, retail investors who come to us for an unbiased opinion on how to achieve their investment goals depending on each individuals risk profile.

The organization finds its strength in its team of young, talented and confident individuals.

Century Finvest has membership of the following exchanges for equity-

1. National Stock Exchange (NSE). 2. Bombay Stock Exchange (BSE).

Century Finvest uses ICICI banking services.

Bank Guarantee

Current accounts

Secured Overdraft

Temporary Overdraft

Clearing and Settlement Accounts

Century Finvest relationship with Kotak Mahindra Bank-

They do not have any relationship with kotak Mahindra bank.

Reason-

kotak Mahindra Bank becomes more conscious when market falls and immediately initiates the risk management actions on the given facilities like loan against shares.

- Mr.Munish Bansal (011-43054444)

6. Kumar Share Brokers- Kumar Share Brokers Ltd. is a professionally managed corporate broking house providing single window convenience for all financial services. Kumar Share takes pride in offering financial services as a member of National Stock Exchange, Bombay Stock exchange, Depository Participant of Central Depository Services Ltd. (CDSL) and as SEBI approved Portfolio Manager through a network of branches and associates. We also offer currency futures trading through our membership with MCX Stock Exchange [MCX-SX] & United Stock Exchange . Through our fully owned subsidiary company, KSBL COMMODITY BROKERS PRIVATE LIMITED, we offer futures trading in commodity derivatives on Multi Commodity Exchange and National Commodities & Derivatives Exchange . We also have an Academy for financial learning – KUMAR ACADEMY OF FINANCIAL MANAGEMENT [KAFM] which offers short and long term courses with practical orientation to all segments of people.

Equity

Investing in equity (shares or stock market) has historically given higher returns to investors with longer patience and provides an effective tool to beat the inflation in our economy. It has by far been the best instrument for long-term wealth accumulation. However, short term investors swaying between greed and fear needs highly experienced and trustworthy expert due to high risk-return trade-off prevalent in the stock markets. Kumar Share fills that gap for you.

Equity Derivatives

The derivative segment is a highly lucrative market that gives investors an opportunity to earn superlative profits (or losses) by paying a nominal amount of margin. Over past few years, Future & Options segment has emerged as a popular medium for trading in financial markets. Future contracts are available on Equities, Indices, Currency and Commodities. Here again you will need an expert like Kumar Share to guide you through.

Kumar Share Brokers has membership of the following exchanges for equity-

1. National Stock Exchange (NSE). 2. Bombay Stock Exchange (BSE).

Kumar Share Brokers uses HDFC banking services.

- Bank Guarantee

- Settlement and Clearing accounts

- Temporary Overdraft

- Loan against securitiesHDFC Bank also provides Overdraft against Fixed Deposits.

- Custodial services

Kumar Share Brokers relationship with Kotak Mahindra Bank-

They have their bank guarantee of BSE and also settlement account of BSE with Kotak Mahindra Bank.

- Ramesh Arora (098110121794)

7. OPG Securities pvt ltd

OPG Securities Pvt. Ltd. (OPG) is one of the leading quality stock-broker in India having one of the largest daily trading volumes on Indian bourses.  OPG is a corporate member of National Stock Exchange (NSE) on both Capital Market and Futures & Options Segment as well as member of Bombay Stock Exchange (BSE).  Our group also holds membership of Delhi Stock Exchange (DSE) & Calcutta Stock Exchange (CSE).  OPG has modeled itself as a professional and quality stock-broker providing cutting edge technological solutions to business partners.

The group is also in commodities futures trading and has membership of National Commodities and Derivatives Exchange of India (NCDEX) promoted by NSE and of Multi Commodity Exchange of India (MCX).

 OPG has been founded in 1990 by Mr. O.P. Gupta, a qualified finance professional, with decades of experience in capital market. Mr. O. P. Gupta is B.Com. (Hons.) from Shriram College of Commerce, a prestigious institution of India, LL.B. from Delhi University and a member of the Institute of Company Secretaries of India. He had a brilliant academic record. After studies, he worked in Shriram (DCM) Group at senior positions for about 27 years and was Company Secretary of a number of limited companies, one of which was listed on stock exchanges. In 1990, he took up stock broking as his career and started with DSE.    The day-to-day management of the group is looked after by  Mr. Sanjay Gupta and Mr. Rahul Gupta (sons of Mr. O.P. Gupta )who are also on Company’s Board.  They are ably assisted by a team of young professionals.

Mr. Sanjay Gupta has been instrumental in bringing the Company to its present height. He has considerable experience and expertise in arbitrage between different Segments and Exchanges. Because of his efforts, the Company could always be among the first ten Stock Brokers of India in terms of turnover in every exchange till now.              The focus of the group in the Stock Market is on market making and arbitrage.  Practically in all the IPOs  entering Indian Capital Market, OPG

contributes significantly in making the IPOs successful and thereafter in creating  liquidity in the market for the IPOs.  OPG does substantial trading in all the new IPOs and thus creates liquidity in the market.

OPG ranks in the first ten Stock Brokers of the country turnover wise, for the last more than 15 years.  The group is having no investor complaint or any adverse remarks from any of the Exchanges.

OPG functions on the strength of its own trends, with insignificant borrowings and nominal bank guarantees.

OPG has an employee strength of more than 50 Executives assisted by personnel at lower levels.

OPG Securities pvt ltd has membership of the following exchanges for equity-

1. National Stock Exchange (NSE). 2. Bombay Stock Exchange (BSE).

3. Delhi Stock Exchange(DSE).

OPG Securities uses Axis and HDFC banking services.

HDFC-

Bank Guarantee- Bank guarantees favouring various exchanges to meet:

- Base capital

- Security deposit

- Margin requirements as stipulated by Exchanges.

Axis-

- Demat account- Custodial services- Transfer of shares and settlement

8. Share India Securities India Securities Limited was incorporated on 20th July in the name of Dear Leasing and Finance Limited. It was promoted by S.L. Gupta, B. Goyal, R.K. Sanpar & associates. The Company obtained the Certificate for Commencement of Business on 27th July.

1987 - The name of the company was changed to India factors Ltd. on 1st May, and it was once again changed to India Securities Ltd. on 23rd May, 1990.

The Company's focus is on finance, corporate advisory services, project finance, intermediation services project money and foreign exchange markets.

The Company provides fund based and non fund based financial solutions to both wholesale and retail segments through clutch of five companies viz. India Securities Ltd., Indsee Share & Stock Broking Ltd., Indsect securities & finance Limited, Indusee investment Limited Indsee Holdings Ltd.

1992 - The Company as a merchant banker was associated with 27 issues, amounting to a total issue size of Rs 1269.86 crores.

-2,48,000 No. of equity shares issued, subscribed and paid up. 2,48,000 Rights equity shares and at par in prop. 1:1. During January, 1992, the company issued. 37,00,000 shares in prop. 75:100. Another 63,00,000 No. of equity shares were issued through a prospectus of which the following were reserved for allotment on a preferential basis. (1) 5,00,000 shares to employees (only 10,400 shares taken up). (2) 20,00,000 shares of NRI's (all were taken up) Balance 38,00,000 shares were issued to the public, along with 4,89,600 shares not taken up by the employees. Additional 14,83,590 shares were allotted to retain oversubscription (58,590 shares to employees; 5,55,000 shares to shareholders on Rights basis; 3,00,000 shares to NRI's & 5,70,000 shares to the public).

Share India Securities has membership of the following exchanges for equity-

1. National Stock Exchange (NSE). 2. Bombay Stock Exchange (BSE).

Share India securities uses ICICI banking services.

- Bank Guarantee- Current accounts- Secured Overdraft- Temporary Overdraft- Clearing and Settlement Accounts- Intra-day Funding

9. Net Worth Stock Broking ltd

Incorporated on December 2, 1993, Networth Stock Broking Limited (NSBL) is one of the major stock brokers in India. Networth offers premium financial services and information. NSBL is a member of the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) in the Capital Market and Derivatives (Futures & Options) segment.

NSBL provides the retail broking services all over the India, Middle East, Europe and America. NSBL has 156 branches across the India. They are growing exponentially because of their strong support; technology drives operations, research team and network of experts. Online trading is one of the important platform provided by NSDL.

NSBL has also acquired membership of the currency derivatives segment with NSE, BSE & MCX-SX. It is Depository participants with Central Depository Services India (CDSL) and National Securities Depository (India) Limited (NSDL). With a client base of over 1L loyal customers, NSBL is spread across the country though its over 230+ branches. NSBL is listed on the BSE since 1994.

Networth offers 2 different online trading platforms to its customers:

N-Easy (Website based trading)It is a powerful and user friendly browser based online stock trading platform. This website based trading platform is for delivery based low volume trader or investor who keeps moving from one place to another.

As this is a website based trading environment, there is no need to install any software and trading can be done absolutely anywhere there is internet.

N-Swift (Installable software based trading)It is an advanced and interactive online stock trading platform. This platform requires installation based application which is made available by Networth. User has to install this software application on his computer. It’s mostly suited for high volume traders.

Trader can watch market prices while they trade. The application is highly integrated which enables the user to place orders in live environment. The user screen is fully customizable by the user to display information based upon his preferences.

Services offered by the company:

Equity Derivatives

Currency Derivatives

IPO

Commodities

Depository Services

Portfolio Management Services

Wealth Management Services

Net Worth stock Broking has membership of the following exchanges for equity-

1. National Stock Exchange (NSE). 2. Bombay Stock Exchange (BSE).

Net Worth Stock Broking uses HDFC banking services.

- Bank Guarantee

- Settlement and Clearing accounts

- Salary accounts Loan against securities

Net Worth Stock Broking relationship with Kotak Mahindra Bank-

They do not have any relationship with kotak Mahindra bank.

Reason-

They negotiated for bank guarantee commission rate but it didn’t work out.

10.Credit Suisse Securities India pvt ltd

The Equity Capital Markets Group (ECM) oversees the Bank's activities in the primary equity and equity-linked markets, as well as monetizations and equity derivatives. It provides support in the origination of primary market transactions and manages their structuring, syndication, marketing and distribution.

ECM also provides clients with assistance in managing their communication with the market, both immediately after a transaction and subsequently. The group's scope of activities is designed to help our clients succeed in ever-changing financing environments, stretching from the very largest privatizations, initial public offerings and secondary placements through to smaller public transactions and private placements; it is also active in equity-related transactions.  

The group comprises professionals based in New York, San Francisco, London, Zurich, Frankfurt, Hong Kong, Tokyo and Sydney, all of whom are focused on delivering superior execution to our clients.

Credit Suisse's Equity Group engages in a broad range of activities for investors around the world, including sales, trading, financing, prime brokerage and market-making in U.S. and international equity and equity related securities, options, futures, risk management and hedging products.

Our activities cover both exchange-traded and over-the-counter traded securities, including American Depositary Receipts, restricted stocks, equity repurchases, block trade executions, program trading executions, equity derivatives and convertible securities.

Credit Suisse Securities has membership of the following exchanges for equity-

1. National Stock Exchange (NSE). 2. Bombay Stock Exchange (BSE).

Credit Suisse Securities uses Axis banking services.

No they never considered Kotak Mahindra Bank as they are satisfied with Axis Bank.

Demat account Custodial services Transfer of shares and settlements Dematerialisation of shares Rematerilialisation Dial-Your- Demat

Credit Suisse Securities relationship with Kotak Mahindra Bank

No they never considered Kotak Mahindra Bank as they are satisfied with Axis bank.

- Mr.Rahul Yadav (0120-4505200)

CONCLUSION

1.The Bank provides all the services required to share brokers.

2. The Bank has been very successful in enlarging its customer base

during the last couple of years.

3. The Number One Reason of people choosing Kotak Mahindra Bank is

the Brand Name/Reputation of the Bank. Hence the Brand name and

Goodwill, the Bank has earned is not diluted.

4. The Biggest competitors of the Bank are ICICI Bank and HDFC Bank.

5. Overall the customers appreciate the service and products offered by the Bank.

GENERAL FINDINGS

1. Customers value Efficient Service over every other aspect, this is far

more important than the number of Staff, Decor of Bank.

2. Reputation of Bank is most important when it comes to choosing

especially a Private Bank in case of stock brokers.

3. The general perception is that Private Banks provides better services

as compared to a Government Bank.

4. People realize that Private Banks are as good as Government Banks.

BIBLIOGRAPHY

1. CPR Capital Services - www.cprtrade.com

2. Capital Wizard Share Broking pvt Ltd- www.capitalwizard.in

3. Globe Capital Market ltd - www.globecapital.com

4. Century Finvest - www.centuryfinvest.com

5. D.B. (International) stock brokers - www.dagabusiness.com

6. Share India securities - www.shareindia.com

7. Kumar Share Brokers Ltd - www.kumarsharebrokers.com

8. OPG Securities pvt ltd - www.opgsecurities.com