Swami Vivekanand Institute of Gurpreet

8/7/2019 Swami Vivekanand Institute of Gurpreet

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SWAMI VIVEKANAND INSTITUTE OF ENGINEERING & TECHNOLOGY

Swami Vivekanand Institute OfEngineering & Technology

FINAL REPORT

On

EQUITY

MARKET

SUBMITTED TO

SWAMIVIVEKANAND

INSTITUTE OF ENGG. &

TECHNOLOGY

A project report submitted

In partial fulfillment of the requirements for the degree of

MASTERS OF BUSINESS

ADMINISTRATION

SESSION 2007-

2009

BYGURPREET SINGH(7032221166)MBA

A STUDY ON EQUITY MARKET SUMMER INTERNSHIP PROJECT 1


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DECLARATION

I, hereby state this project report submitted by me in partial fulfillment of requirements of

the MBA in an original research work carried out by me under the guidance and

supervision of my faculty guide and this work or any part of it has not been previously

submitted for a degree of MBA.

GURPREET SINGH

PLACE: ---------------

DATE: -----------------



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TABLE OF CONTENTS

CONTENTS

Chapter 1 : Industry Profile 7 22

1.1 Introduction and History

1.2 What is a Stock market ? Its purpose & function

1.3 Securities.

1.4 Trading in India

1.5 Regulator of stock market

1.6 SEBI & its role

1.7 Primary market & its role

1.8 Secondary market function

1.9 Primary vs Secondary market

1.10 Stock Exchange

1.11 Depository & dematerialization

1.12 NSE / BSE / OTCEI.

Chapter 2 : Company Profile 23 27

2.1 History

2.2 Profile

2.3 Management

Chapter 3 : Introduction To The Project 28 31

3.1 Objectives

3.2 Methodology

3.3 Limitations

Chapter 4 : Data Analysis

A) Share khan Ltd. 34 41



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B) Religare Securities Ltd 42 45

C) ICICI DIRECT 46 48

D) Geojit Financial Services 49 51

E) India Bulls 52 54

Graphical Presentation & Comparative Conclusions 56 - 71

Chapter 5 : Bibliography 73

Chapter 6 : Annexure 74

7.1 Questionnaire for existing clients of Religare. 75 - 767.2 Survey Questionnaire. 77 78



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LIST OF GRAPHS

S.NO. GRAPH TITLE PAGE NO.

1 Frequency of trading 56

2 Online vs offline trading 57

3 Account opening charges 59

4 Intraday brokerage 60

5 Delivery brokerage 61

6 Minimum balance in trading account 62

7 Exposure limits 63

8 Annual maintenance charges 64

9 Satisfaction level of clients on diff. parameters 67 69

10 Overall satisfaction level of clients 70

11 Additional features required in online share trading 71



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CHAPTER I

INDUSTRY

PROFILE



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1.1 .AN INTRODUCTION

In India previous days Offline investors did trading. In offline tradinginvestor had to go to brokers place either by telephonic call or physicallypresence and no one had that much time to go to someone place, paperwork also etc. So, Online came into picture. Online share trading hasproved a boon for the investors.

Online share trading means any one can purchase and sell shares fromanywhere in world through Internet. The online offered different benefits toretail investors:-

Transparencymeans paperwork diminishes significantly and nomore painful trips to your broker to check if everything is in order.

Access means online trading had made it possible to universalizeaccess to investors by sitting anywhere in world.

Efficiencymeans latest financial happening like live quote,suggestion directly on your screen during access timing.

As there are hurdles in every progress or technological advancement. Thethree main technology obstacles which have prevented Internet brookingfrom taking off are :-

Lack of Internet penetration Bandwidth infrastructure Poor quality of infrastructure.



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1.1 HISTORY OF EQUITY MARKET

Market-oriented economic reforms in India began in 1991. With the removal ofAdministrative controls on bank credit and the primary market for securities, thecapital markets came to occupy a larger role in shaping resource allocation in thecountry. This led to a heightened interest amongst policy makers in theinstitutional development of securities markets. The efforts towards empoweringthe securities market regulator (SEBI), and the first efforts towards attractingforeign portfolio investment began early in the reforms process. Almostimmediately after the reforms began, there was a prominent scandal on the fixed

income and equity markets, which was exposed in April 1992.

This set the stage for an unusual policy intervention: the establishment of asecurities exchange, the National Stock Exchange (NSE), by the government.

Contrary to most expectations, NSE succeeded, becoming thelargest equity market in 1995. NSE pioneered many important innovations inmarket design in India. The most important of these included nationwideelectronic trading (1994), the clearing corporation as a central counterparty(1996) and paperless settlement at the depository (1996). NSE was a pioneeramongst securities exchanges in the world in using a demutualised structure,

where brokerage firms did not own the exchange.The demutualisedstructure helped in keeping NSE focused on theneeds of investors as opposed to the profit maximization of brokerage firms. Thecreation of the new exchange, clearing corporation and depository wereimportant accomplishments of institution building.



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From 1996 onwards, debates about policy issues on the equity marketwere dominated by questions about the role for leveraged trading. There was aproposal to have a spot market based on rolling settlement (where leverage islimited to intraday positions only).

In 2001, a major crisis broke on the equity market. It involved numerouselements: large leveraged positions which went wrong, accusations of marketmanipulation, a payments crisis at the Calcutta exchange, fraud in the bankingsystem, ethics violations at the Bombay Stock Exchange,

This crisis was valuable in breaking this fiveyear deadlock and movingon with reforms. In June 2001, trading in index options commenced &within a matter of weeks, liquidity improved sharply.

Over the 1990s, the equity market became a nationwide platform with realtimecapability for trading and settling stock transactions.

However, comparable improvements in the infrastructure for funds transferin the country have not taken place.

Beyond technical questions of market design, the most important concerns aboutthe securities markets today are questions of governance and policy formulationSecurities markets have made significant progress in terms of exploitingmodern trading technology and modern financial instruments. However,the regulatory capacity on the part of both exchange institutions and SEBI ishighly limited.

1.2 STOCK MARKET

The term 'thestock market' is a concept for the mechanism that enables the trading ofcompany stocks, othersecurities, and derivatives.

The stocks are listed and traded onstock exchanges which are entities (a corporationormutual organization) specialized in the business of bringing buyers and sellers ofstocks and securities together.

Equity/Share

Total equity capital of a company is divided into equal units of smalldenominations, each called a share. For example, in a company the total equitycapital of Rs 2,00,00,000 is divided into 20,00,000 units of Rs 10 each. Eachsuch unit of Rs 10 is called a Share. Thus, the company then is said to have20,00,000 equity shares of Rs 10 each. The holders of such shares are membersof the company and have voting rights.

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There are now stock markets in virtually every developed and mostdeveloping economies, with the world's biggest markets being in theUnited States, UK, Germany, France, India and Japan.

THE BOMBAY STOCK EXCHANGE IN INDIA

Function and purposeThe financial system performs three main tasks:

1. It handles transfer of payments;2. It channels savings to investments with a good return for future

consumption and;

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3. It spreads and reduces (local enterprise) economic risks in relation to theplayers' targeted returns.

The smooth functioning of all these activities facilitates economic growth in thatlower costs and enterprise risks promote the production of goods and services as

well as employment. In this way the financial system contributes to increasedprosperity.

The stock market is one of the most important sources forcompanies to raisemoney. Rising share prices, for instance, tend to be associated with increasedbusiness investment and vice versa. Share prices also affect the wealth ofhouseholds and their consumption. Therefore, central banks tend to keep an eyeon the control and behavior of the stock market and, in general, on the smoothoperation offinancial system functions.

1.3 SECURITIES

"Securities" is a generic term describing a transferable certificate of ownership inan investment product. An investment product includes notes,bonds, stocks,futures, contracts and options.

A Security gives the holder an ownership interest in the assets of a company. For

example, when a company issues security in the form of stock, they give thepurchaser an interest in the company's assets in exchange for money.

There are a number of reasons why a company issues securities: meeting ashort-term cash crunch or obtaining money for an expansion is just two.

1.4 TRADING IN INDIA

NSE introduced for the first time in India, fully automated screen based trading. Ituses a modern, fully computerized trading system designed to offer investorsacross the length and breadth of the country a safe and easy way to invest.

The NSE trading system called 'National Exchange for Automated Trading'(NEAT) is a fully automated screen based trading system, which adopts theprinciple of an order driven market.

Trading

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Participants in the stock market range from small individual stock investors tolarge hedge fundtraders, who can be based anywhere.

MARKET TIMINGS

Trading on the equities segment takes place on all days of the week (exceptSaturdays and Sundays and holidays declared by the Exchange in advance).The market timings of the equities segment are:

Normal Market Open :- 09:55 hoursNormal Market Close :- 15:30 hours

LISTING

Listing means admission of securities of an issuer to trading privileges on a stockexchange through a formal agreement. The prime objective of admission todealings on the Exchange is to provide liquidity and marketability to securities.

TRADER WORKSTATION

The trader workstation is the terminal from which the member accesses thetrading system. Each trader has a unique identification by way of TradingMember ID and User ID through which he is able to log on to the system fortrading or inquiry purposes. A member can have several user IDs allotted to himby which he can have more than one employee using the system concurrently.

A Trading Member can define a hierarchy of users of the system with theCorporate Manager at the top followed by the Branch Manager and Dealers.

The Trader Workstation screen of the Trading Member is divided into several

major windows:

Title Bar Tool Bar Ticker Window Market Watch Window On line Index and Index Inquiry Inquiry Window

http://en.wikipedia.org/wiki/Stock_investorshttp://en.wikipedia.org/wiki/Hedge_fundhttp://en.wikipedia.org/wiki/Trader_(finance)http://www.nseindia.com/content/equities/eq_holidays.htmhttp://www.nseindia.com/content/equities/eq_workstation.htm#title%23titlehttp://www.nseindia.com/content/equities/eq_workstation.htm#tool%23toolhttp://www.nseindia.com/content/equities/eq_workstation.htm#ticker%23tickerhttp://www.nseindia.com/content/equities/eq_workstation.htm#mw%23mwhttp://www.nseindia.com/content/equities/eq_workstation.htm#index%23indexhttp://www.nseindia.com/content/equities/eq_workstation.htm#inq%23inqhttp://en.wikipedia.org/wiki/Stock_investorshttp://en.wikipedia.org/wiki/Hedge_fundhttp://en.wikipedia.org/wiki/Trader_(finance)http://www.nseindia.com/content/equities/eq_holidays.htmhttp://www.nseindia.com/content/equities/eq_workstation.htm#title%23titlehttp://www.nseindia.com/content/equities/eq_workstation.htm#tool%23toolhttp://www.nseindia.com/content/equities/eq_workstation.htm#ticker%23tickerhttp://www.nseindia.com/content/equities/eq_workstation.htm#mw%23mwhttp://www.nseindia.com/content/equities/eq_workstation.htm#index%23indexhttp://www.nseindia.com/content/equities/eq_workstation.htm#inq%23inq


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Order/Trade Window

Title BarThe title bar displays the current time, Trading system name and date.

Tool BarA window with different icons which provides quick access to various functionssuch as Market By Order, Market By Price, Market Movement, Market Inquiry,Auction Inquiry, Snap Quote, Market Watch, Buy order entry, Sell order entry,Order Modification, Order Cancellation, Outstanding Orders, Order Status,Activity Log, Previous Trades, Net Position, Online Backup, SupplementaryMenu, Security List and Help. All these functions are also available on thekeyboard.

Ticker WindowThe ticker displays information about a trade as and when it takes place. Theuser has the option to set-up the securities which appear in the ticker.

Market Watch WindowThe Market Watch window is the main area of focus for a Trading Member. Thepurpose of Market Watch is to view market information of pre-selected securitiesthat are of interest to the Trading Member.

To monitor various securities, the trading member can set them up by typing the

Security Descriptor consisting of a Symbol field and a Series field. Securities canalso be set up by invoking the Security List and selecting the securities from thewindow. The Symbol field incorporates the Company name and the Series fieldcaptures the segment/instrument type. A third field indicates the market type.

For example,Company (Symbol) : ACCInstrument type (Series): EQMarket Type: N

For each security in the Market Watch window, market information is dynamicallyupdated on a real time basis. The market information displayed is for the currentbest price orders available in the regular lot book. For each security, thecorporate action indicator (e.g., Ex or cum dividend, interest, rights etc.), the totalbuy order quantity for the best buy price, best sell price, total sell order quantityfor the best sell price, the Last Traded Price (LTP), the last traded price changeindicator ('+' if last traded price is better than the previous last traded price and '-'if it is worse) and the no delivery indicators are displayed. If the security issuspended, "SUSPENDED" appears in front of the security.

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On line Index and Index InquiryWith every trade in a security participating in Index, the user has the informationon the current value of the Nifty. This value is displayed at the extreme right hand

corner of the ticker window.

Index Inquiry gives information on Close, Open, High, Low and current indexvalues at the time of invoking this inquiry screen.

Inquiry WindowIn this window, the inquiries such as Market by Order, Market by Price, PreviousTrades, Outstanding Orders, Activity Log, Order Status and Market Inquiry canbe viewed.

Market By Order (MBO)The purpose of Market by Order is to enable the user to view outstandingorders in the trading books in the order of price/time priority. Theinformation is displayed for each order. Stop Loss orders, which are nottriggered will not be displayed on the window. Buy orders are displayed onthe left side of the window and Sell orders on the right side. The ordersare presented in a price/time priority with the "best priced" order at the top.

Market by Price (MBP)The purpose of Market By Price is to enable the Trading Member to viewaggregate orders waiting in the book at given prices.

Previous Trades (PT)The purpose of this window is to provide information to users for their owntrade.

Outstanding Orders (OO)The purpose of Outstanding Orders is to enable a Trading Member to viewhis/her own outstanding buy or sell orders for a security. An outstandingorder will be an order that was entered by the user, but is not yetcompletely traded or cancelled.

Activity Log (AL)

The Activity Log shows the activities that have been performed on anyorder of the Trading Member such as whether the order has been tradedagainst fully or partially, it has been modified or has been cancelled. Itdisplays information only of those orders in which some activity has takenplace. It does not display orders, which have entered the books but havenot been matched (fully or partially) or modified or cancelled.



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Order Status (OS)Order Status enables the user to look into the status of a specific order.Current status of the order and other order details are displayed. In casethe order is traded, the trade details are also displayed.

Market Inquiry (MI)Market Inquiry enables the user to view the market statistics like Open,High, Low, Previous close, Last traded price change indicator, Last tradedquantity, date and time etc. A user may find inquiry screens like MarketMovement, Most Active Securities and Net Position useful. These areavailable in the supplementary menu.

Market Movement (MM)The Market Movement screen provides information to the user regardingthe movement of a security for the current day. It gives details of themovement of the scrip for a time interval. The details include total buy andsell order quantity value, Open, High, Low, Last traded price etc.

Most Active SecuritiesThis screen gives a list of the securities with the highest traded valueduring the day and the quantity traded for each of them.

Net PositionThis functionality enables the user to interactively view his net position forall securities in which he has traded.

Order/Trade Window

Order entry mechanisms enable the Trading Member to place orders inthe market. The system will request re-confirmation of an order so that theuser is cautioned before the order is finally released into the market.Orders once placed on the system can be modified or cancelled till theyare matched. Once orders are matched they cannot be modified orcancelled.

There is a facility to generate online order/trade confirmation slips as soonas an order is placed or a trading is done. The order confirmation slipcontains among other things, order no., security name, price, quantity,order conditions like disclosed or minimum fill quantity etc. The trade

confirmation slip contains the order and trade no., date, trade time, priceand quantity traded, amount etc. Orders and trades are identified andlinked by unique numbers so that the investor can check his order andtrade details.



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1.5 REGULATOR

Who regulates the Securities Market?The responsibility for regulating the securities market is shared by Department ofEconomic Affairs (DEA), Department of Company Affairs (DCA), Reserve Bankof India (RBI) and Securities and Exchange Board of India (SEBI).

1.6 WHAT IS SEBI AND WHAT IS ITS ROLE!!

The Securities and Exchange Board of India (SEBI) is the regulatory authority inIndia established under Section 3 of SEBI Act, 1992. SEBI Act, 1992 provides forestablishment of Securities and Exchange Board of India (SEBI) with statutorypowers for (a) protecting the interests of investors in securities (b) promoting the

development of the securities market and (c) regulating the securities market. Itsregulatory jurisdiction extends over corporates in the issuance of capital andtransfer of securities, in addition to all intermediaries and persons associated withsecurities market. SEBI has been obligated to perform the aforesaid functions bysuch measures as it thinks fit. In particular, it has powers for:

1. Regulating the business in stock exchanges and any other securitiesmarkets

2. Registering and regulating the working of stock brokers, subbrokers etc.3. Promoting and regulating self-regulatory organizations4. Prohibiting fraudulent and unfair trade practices

5. Calling for information from, undertaking inspection, conducting inquiriesand audits of the stock exchanges, intermediaries, self regulatoryorganizations, mutual funds and other persons associated with thesecurities market.

Clearing Corporation

A Clearing Corporation is a part of an exchange or a separate entity andperforms three functions, namely, it clears and settles all transactions, i.e.completes the process of receiving and delivering shares/funds to the buyers and

sellers in the market, it provides financial guarantee for all transactions executedon the exchange and provides risk management functions. National SecuritiesClearing Corporation (NSCCL), a 100% subsidiary of NSE, performs the role of aClearing Corporation for transactions executed on the NSE.Rolling settlementall open positions at the end of the day mandatory result inpayment/ delivery n days later. Currently trades in rolling settlement are settledon T+2 basis where T is the trade day. For example, a trade executed onMonday is mandatory settled by Wednesday (considering two working days from



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the trade day). The funds and securities pay-in and pay-out are carried out onT+2 days.

1.7 PRIMARY MARKET

Securities generally have two stages in their lifespan. The first stage is when thecompany initially issues the security directly from its treasury at a predeterminedoffering price. This is a primary market offering. It is referred to as the initialpublic offering (IPO). Investment dealers frequently buy initial offerings on theprimary market and resell the securities on the secondary market.

Role of the Primary Market

The primary market provides the channel for sale of new securities. Primarymarket provides opportunity to issuers of securities; Government as well ascorporates, to raise resources to meet their requirements of investment and/or

discharge some obligation. They may issue the securities at face value, or at adiscount/premium and these securities may take a variety of forms such asequity, debt etc. They may issue the securities in domestic market and/orinternational market.

Why do companies need to issue shares to the public?

Most companies are usually started privately by their promoter(s). The way toinvite share capital from the public is through a Public Issue. Simply stated, apublic issue is an offer to the public to subscribe to the share capital of acompany.

Issue price

The price at which a company's shares are offered initially in the primary marketis called as the Issue price. When they begin to be traded, the market price maybe above or below the issue price.

Public Issue vs Private Placement

When an issue is not made to only a select set of people but is open to thegeneral public and any other investor at large, it is a public issue. But if the issueis made to a select set of people, it is called private placement. As perCompanies Act, 1956, an issue becomes public if it results in allotment to 50persons or more. This means an issue can be privately placed where anallotment is made to less than 50 persons.

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Who decides the price of an issue?

There is no price formula stipulated by SEBI. SEBI does not play any role in pricefixation. The company and merchant banker are however required to give fulldisclosures of the parameters which they had considered while deciding the

issue price. There are two types of issues, one where company and LeadMerchant Banker fix a price (called fixed price) and other, where the companyand the Lead Manager (LM) stipulate a floor price or a price band and leave it tomarket forces to determine the final price .

What is SEBIs Role in an Issue?

Any company making a public issue or a listed company making a rights issue ofvalue of more than Rs 50 lakh is required to file a draft offer document with SEBIfor its observations. The company can proceed further on the issue only aftergetting observations from SEBI. The validity period of SEBIs observation letter is

three months only i.e. the company has to open its issue within three monthsperiod.

1.8 SECONDARY MARKET

The secondary market is the financial market for trading ofsecurities that havealready been issued in an initial private or public offering. Alternatively,secondary marketcan refer to the market for any kind of used goods. The market

that exists in a new security just after the new issue is often referred to as theaftermarket. Once a newly issued stock is listed on a stock exchange, investorsand speculators can easily trade on the exchange, as market makers providebids and offers in the new stock.

Function

In the secondary market, securities are sold by and transferred from one investororspeculatorto another. It is therefore important that the secondary market behighly liquid and transparent. Before electronic means of communications, theonly way to create this liquidity was for investors and speculators to meet at a

fixed place regularly.

1.9 Primary Market vs Secondary Market

In the primary market, securities are offered to public for subscription for thepurpose of raising capital or fund. Secondary market is an equity trading venue inwhich already existing/pre-issued securities are traded among investors.Secondary market could be either auction or dealer market. While stock

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exchange is the part of an auction market, Over-the-Counter (OTC) is a part ofthe dealer market.

1.10 STOCK EXCHANGE

Role of a Stock Exchange in buying and selling shares

The stock exchanges in India, under the overall supervision of the regulatoryauthority, the Securities and Exchange Board of India (SEBI), provide a tradingplatform, where buyers and sellers can meet to transact in securities. The tradingplatform provided by NSE is an electronic one and there is no need for buyersand sellers to meet at a physical location to trade. They can trade through thecomputerized trading screens available with the NSE trading members or theinternet based trading facility provided by the trading members of NSE.

How can one acquire equity shares?

One may subscribe to issues made by corporates in the primary market. In theprimary market, resources are mobilized by the corporates through fresh publicissues (IPOs) or through private placements. To buy and sell securities one

should approach a SEBI registered trading member (broker) of a recognizedstock exchange.

Details to be mentioned on the contract note

A broker has to issue a contract note to clients for all transactions in the formspecified by the stock exchange. The contract note inter-alia should havefollowing:

Name, address and SEBI Registration number of the Member broker.

Name of partner/proprietor/Authorized Signatory. Dealing Office Address/Tel. No. /Fax no., Code number of the member given

by the Exchange.

Contract number, date of issue of contract note, settlement number and timeperiod for settlement.

Constituent (Client) name/Code Number.

Order number and order time corresponding to the trades.

Trade number and Trade time.



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Quantity and kind of Security bought/sold by the client.

Brokerage and Purchase/Sale rate.

Service tax rates, Securities Transaction Tax and any other charges levied bythe broker.

Appropriate stamps have to be affixed on the contract note or it is mentioned

that the consolidated stamp duty is paid. Signature of the Stock broker/Authorized Signatory.

1.11 DEPOSITORY

A Depository can be compared with a bank, which holds the funds for depositors.An analogy between a bank and a depository may be drawn as follows:

Depository Participant (DP)

The Depository provides its services to investors through its agents calleddepository participants (DPs). These agents are appointed by the depository withthe approval of SEBI. According to SEBI regulations, amongst others, threecategories of entities, i.e. Banks, Financial Institutions and SEBI registeredtrading members can become DPs.



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Dematerialization

Dematerialization is the process by which physical certificates of an investor areconverted to an equivalent number of securities in electronic form and credited tothe investors account with his Depository Participant (DP).

1.12 NSE

The National Stock Exchange (NSE), located in Bombay, is India's first debtmarket. It was set up in 1993 to encourage stock exchange reform throughsystem modernization and competition. It opened for trading in mid-1994. It wasrecently accorded recognition as a stock exchange by the Department ofCompany Affairs. The instruments traded are, treasury bills, government securityand bonds issued by public sector companies.

BSE

Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a richheritage. Popularly known as "BSE", it was established as "The Native Share &Stock Brokers Association" in 1875. It is the first stock exchange in the country toobtain permanent recognition in 1956 from the Government of India under theSecurities Contracts (Regulation) Act, 1956.The Exchange's pivotal and pre-eminent role in the development of the Indian capital market is widely recognizedand its index, SENSEX, is tracked worldwide.

With demutualization, the trading rights and ownership rights have been de-linked effectively addressing concerns regarding perceived and real conflicts ofinterest. The Exchange is professionally managed under the overall direction ofthe Board of Directors. The Board comprises eminent professionals,representatives of Trading Members and the Managing Director of the Exchange.The Board is inclusive and is designed to benefit from the participation of marketintermediaries.

The Exchange has a nation-wide reach with a presence in 417 cities and townsof India. The systems and processes of the Exchange are designed to safeguardmarket integrity and enhance transparency in operations. During the year 2004-2005, the trading volumes on the Exchange showed robust growth.

The Exchange provides an efficient and transparent market for trading in equity,debt instruments and derivatives. The BSE's On Line Trading System (BOLT) is



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a proprietary system of the Exchange and is BS 7799-2-2002 certified. Thesurveillance and clearing & settlement functions of the Exchange are ISO9001:2000 certified.

OVER THE COUNTER EXCHANGE OF INDIA

OTCEI was incorporated in 1990 as a Section 25 company under the CompaniesAct 1956 and is recognized as a stock exchange under Section 4 of theSecurities Contracts Regulation Act, 1956. The Exchange was set up to aidenterprising promoters in raising finance for new projects in a cost effectivemanner and to provide investors with a transparent & efficient mode of trading.

ROLE OF OTCEI

The objective of OTCEI is to find techniques of making small cap stocksmore liquid than would be the case on the other major exchanges.

CHAPTER II

COMPANYPROFILE

CHAPTER 3 : COMPANY PROFILE

2.1 History



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2.2 Profile

2.3 Management

COMPANY HISTORY & PROFILE

Share khan is one of the leading retail brokerage ofSSKI (Swargiye Shri Kanti

Lal Ishwar Lal) Group which is running successfully since 1922 in the country.

It is the retail broking arm of the Mumbai-based SSKI Group, which has over

eight decades of experience in the stock broking business. Share khan offers its

customers a wide range of equity related services including trade execution on



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BSE, NSE, Derivatives, depository services, online trading, investment advice

etc.

The firms online trading and investment site - www.sharekhan.com - was

launched on Feb 8, 2000. The site gives access to superior content and

transaction facility to retail customers across the country. Known for its jargon-

free, investor friendly language and high quality research, the site has a

registered base of over 2 lacs customers. The number of trading members

currently stands at over 5 Lacs. While online trading currently accounts for just

over 2 per cent of the daily trading in stocks in India, Share khan alone accounts

for27 per cent of the volumes traded online.

On April 17, 2002 Share khan launched Speed Trade and Trade Tiger, are net-

based executable application that emulates the broker terminals along with host

of other information relevant to the Day Traders. This was for the first time that a

net-based trading station of this caliber was offered to the traders.

Share khans ground network includes over 700+ Share shops in 150+

cities in India.

Share khan has always believed in investing in technology to build its business.

The company has used some of the best-known names in the IT industry, like

Sun Microsystems, Oracle, Microsoft, Cambridge Technologies, Verisign

Financial Technologies India Ltd, Spider Software Pvt Ltd. to build its trading

engine and content. The Citi Venture holds a majority stake in the company.

HSBC, Intel & Carlyle are the other investors.

With a legacy of more than 80 years in the stock markets, the SSKI group

ventured into institutional broking and corporate finance 18 years ago. Presently

SSKI is one of the leading players in institutional broking and corporate finance

activities. SSKI holds a sizeable portion of the market in each of these segments.



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SSKIs institutional broking arm accounts for 7% of the market for Foreign

Institutional portfolio investment and 5% of all Domestic Institutional portfolio

investment in the country.

SHAREKHAN LIMITED is a

1. Member of National Stock Exchange of India and Bombay Stock

Exchange of India.

2. Depository Participant with National Securities Depository

Limited (NSDL) and Central Depository Services Limited

(CDSL).

3. A SEBI approved Portfolio Manager.

PRODUCT & SERVICES

OFFERED BY SHAREKHAN

Equity Trading Platform (Online/Offline).

Commodities Trading Platform (Online/Offline).

Portfolio Management Service.

Depository Services.

Mutual Fund Advisory and Distribution.

Insurance Distribution.

Equity Trading



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For the first time Share Khan brings investing community the power to beassociated with the elite dealing rooms and freedom to execute trade on theirown. That is, one may trade from their branches or trade on your own over thenet and with that expertise and assistance.

Commodity Trading

Commodities as a word originated from the French word commodity meaningbenefit, profit. Share Khan Limited is a member of both the exchanges (MCX &NCDEX) that allows trading in all the commodities traded at both the exchanges.At present, trading in commodities is restricted to futures contracts only.

Portfolio Management System

Portfolio Management Services manage clients wealth more efficiently, reducerisk by diversifying across assets, sectors and funds, and maximizing returns.Expert Portfolio Managers find best of avenues to achieve optimum returns atmanaged levels of risk. This service could also be called as transparentcollective investments.

Depository Services

Share Khan is among the few major Depository Participants holding securitiesworth more than Rs.5000 crore under its management. Share Khan providesdepository services to investors as a Depository Participant with NSDL and

CDSL.

Mutual Funds Services

Share Khan is also promoting mutual funds of all companies. You can apply toMutual Funds of Reliance, Franklin Templeton Investments, ICICI Prudential,SBI, Birla, Sundaram, HDFC, DSP Merrill Lynch, PRINCIPAL, and TATA withShare khan hassle free, paperless and time saving.

Insurance Distribution

Share Khan is also promoting insurance by joining hands with icici prudential

life insurance company. Insurance Distribution so far is mainly carried out in

metros only in Delhi & Mumbai.



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MANAGEMENT

CHAPTER III

INTRODUCTION



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TO THE

PROJECT Objectives Research Methodology

Limitations

OBJECTIVES

To study the various features of equity market.

To study the criterion of different companies for opening d-mat &trading accounts.



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To study all kinds of financial services provided by SHAREKHAN to itsclients.

To make a comparative analysis of the client services of differentcompanies.

To study the satisfaction level of the existing clients ofSHAREKHAN.

RESEARCH METHODOLOGY

The objective of the present study can be accomplished by conducting asystematic market research. Market research is the systematic design, collection,analysis and reporting of data and findings that are relevant to different marketingsituations facing the company. The marketing research process that is adopted inthe present study consists of the following stages:

a. Defining the problem and the research objective :

The research objective states what information is needed to solve the problem.The objective of the research is to derive the opinion of the clients of theSHAREKHAN and use that to improve the satisfaction level of the clients. Andalso to obtain information from other competitor companies regarding their clientservices.

b. Developing the research plan :

Once the problem is identified, the next step is to prepare a plan for getting theinformation needed for the research. The present study adopted the exploratoryapproach wherein there was a need to gather large amount of information beforemaking a conclusion.

c. C ollection and Sources of data :

Market research requires two kinds of data, i.e., primary data and secondarydata.

Being a firm in the financial industry, data gathering here involved usage ofboth primary and secondary data though there was an extensive usage ofprimary data. Well-structured questionnaires were prepared for the clients.There were personal interview surveys for collecting information regarding other



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competitor companies. The questionnaires contained close-ended questions,wherein the main objective was to get an insight into how people measure thethings. Secondary data was collected from various books and web sites.

SAMPLING PLAN

Sampling Units: The respondents were the EXISTING CLIENTS ofSHAREKHAN.

Sample Size: Survey was conducted for 50 respondents.The respondents were asked to fill questionnaires about their opinion on theservices provided by SHAREKHAN.

1. Analyze the collected information :

This involves converting raw data into useful information. It involves tabulationof data, using statistical measures.

2. Report research findings :

This phase marks the culmination of the marketing research effort. Thereport with the research findings is a formal written document. The researchfindings and personal experience was used to propose recommendations todevelop the services of SHAREKHAN & develop a better image.

Sample Area: The primary data for the research work was mainly collectedfrom TRI CITY (chandigarh, Panchkula & Mohali).

LIMITATIONSThough the present study aims to achieve the above-mentioned objectives in fullearnest and accuracy, it may be hampered due to certain limitations. Some of thelimitations of this study may be summarized as follows:

Getting accurate responses from the respondents due to their inherentproblems is difficult. They may be partial or refuse to cooperate.



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The data collected is only from TRI CITY.

Respondents were hesitant to give information to some questions.

They didnt give information easily.

CHAPTER IVA STUDY ON EQUITY MARKET SUMMER INTERNSHIP PROJECT 32


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ANALYSIS &INTERPRETATION OF THE

CONTENT VARIOUS KINDS OF CLIENT SERVICES PROVIDED BY

DIFFERENT BROKERAGE COMPANIES ALONG WITH THEIRACCOUNT OPENING PROCEDURES

COMPARATIVE ANALYSIS ON DIFFERENT PARAMETERSAMONG THE COMPANIES.

SATISFACTION LEVEL OF THE EXISTING CLIENTS OFSHARE KHAN.



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VARIOUS KINDS OF CLIENT SERVICES PROVIDED

BY DIFFERENT BROKERAGE COMPANIES ALONG

WITH THEIR ACCOUNT OPENING PROCEDURES



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SHAREKHAN LTD



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PRODUCTS & SERVICE

Products



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SERVICES

Freedom from paperwork

Instant credit and money transfer

Trade from any net enabled PC

After hour orders

Online orders on the phone

Timely advice and research reports

Real-time Portfolio tracking

Information and Price alerts

REASONS TO CHOOSE SHAREKHAN LIMITED

Experience

SSKI has more than eight decades of trust and credibility in the Indian stock

market. In the Asia Money broker's poll held recently, SSKI won the 'India's best

broking house for 2004' award. Ever since it launched Share khan as its retail

broking division in February 2000, it has been providing institutional-level

research and broking services to individual investors.

Technology

With our online trading account you can buy and sell shares in an instant from

any PC with an internet connection. You will get access to our powerful online

trading tools that will help you take complete control over your investment in

shares.

Accessibility

Share khan provides ADVICE, EDUCATION, TOOLS AND EXECUTION

services for investors. These services are accessible through our centers across

the country (Over 700 locations in 150+ cities) over the Internet (through the

website www.sharekhan.com) as well as over the Voice Tool.



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Knowledge

In a business where the right information at the right time can translate into direct

profits, you get access to a wide range of information on our content-rich portal,

www.sharekhan.com.

Convenience

One can call our Dial-N-Trade number to get investment advice and execute your

transactions. We have a dedicated call-center to provide this service via a Toll

Free Number 1800-22-7500 & 39707500 from anywhere in India.

Customer Service

Our customer service team will assist you for any help that you need relating to

transactions, billing, demat and other queries. Our customer service can be

contracted via a toll-free number, email or live chat on www.sharekhan.com.

Investment Advice

Share khan has dedicated research teams of more than 30 people for

fundamental and technical research. Our analysts constantly track the pulse of

the market and provide timely investment advice to you in the form of daily

research emails, online chat, printed reports and SMS on your mobile phone.

Benefits

Free Depository A/c

Instant Cash Transfer

Multiple Bank Option.

Secure Order by Voice Tool Dial-n-Trade. Automated Portfolio to keep track of the value of your actual purchases.

Personalized Price and Account Alerts delivered instantly to your MobilePhone & E-mail address.

Live Chat facility with Relationship Manager on Yahoo Messenger

Special Personal Inbox for order and trade confirmations.

On-line Customer Service via Web Chat.

Enjoy Automated Portfolio.



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Buy or sell even single share

Anytime Ordering.

SHAREKHAN offers you the following products:-

CLASSIC ACCOUNT

This is an User Friendly Product which allows the client to trade throughwebsite www.sharekhan.com and is suitable for the retail investor who is risk-averse and hence prefers to invest in stocks or who do not trade too frequently.

Features

Online trading account for investing in Equity and Derivatives viawww.sharekhan.com

Live Terminal and Single terminal for NSE Cash, NSE F&O & BSE.

Integration of On-line trading, Saving Bank and Demat Account.

Instant cash transfer facility against purchase & sale of shares.

Competitive transaction charges.

Instant order and trade confirmation by E-mail.

Streaming Quotes (Cash & Derivatives).

Personalized market watch.

Single screen interface for Cash and derivatives and more.

Provision to enter price trigger and view the same online in market watch.

SPEEDTRADE

SPEEDTRADE is an internet-based software application that enables you tobuy and sell in an instant.

It is ideal foractive traders and jobbers who transact frequently during dayssession to capitalize on intra-day price movement.

Features

Instant order Execution and Confirmation.

Single screen trading terminal for NSE Cash, NSE F&O & BSE.

Technical Studies.

Multiple Charting.

Real-time streaming quotes, tic-by-tic charts.

Market summary (Cost traded scrip, highest value etc.)

Alerts and reminders.

Back-up facility to place trades on Direct Phone lines.

Live market debts.



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DIAL-N-TRADE

Along with enabling access for your trade online, the CLASSIC andSPEEDTRADE ACCOUNT also gives you our Dial-n-trade services. With this service, allyou have to do is dial our dedicated phone lines 1-800-22-7500, 3970-7500.

Beside this, Relationship Managers are always available on Office Phone andMobile to resolve your queries.

ShareMobile*

Now Track the Market Anywhere..! Share khan had introduced Share Mobile,mobile based software where you can watch Stock Prices, Intra Day Charts, Research &Advice and Trading Calls live on the Mobile.

Stay updated with Share Mobile, Share khans new service that lets you to catchthe pulse of the stock market on your mobile phone. All you need is a Share khanaccount and a GPRS enabled Mobile handset.*As per SEBI regulations, buying-selling shares through a mobile phone are not yet permitted. So when you

place a buy-sell order on Share Mobile, our Dial-n-Trade executive will call you back and place the order onyour behalf. This service is free and has NO extra fees.

PREPAID Account

Now you can buy Prepaid Account of Share khan. Pay Advance Brokerage onyour Account and enjoy uninterrupted trading in your Account. Beside this, get greatdiscount (up to 50%) on Brokerage.

Prepaid Classic Account : - Rs. 2000Prepaid Speed trade Account: - Rs. 6000, 18000, 30000, 60000, 100000.

IPO ON-LINE

You can apply to all the forthcoming IPO online hassle free, paperless and timesaving. Simply allocate fund to IPO Account, Apply for the IPO and Sit Back & Relax.Mutual Fund Online

You can apply to Mutual Funds of Reliance, Franklin TempletonInvestments, ICICI Prudential, SBI, Birla, Sundaram, HDFC, DSP Merrill Lynch,

PRINCIPAL, and TATA with Share khan hassle free, paperless and time saving.

Zero Balance ICICI Saving Account *

Share khan had tied-up with ICICI bank for Zero Balance Account for Sharekhans Clients. Now you can have a Zero Balance Saving Account with ICICI Bank afteryour demat Account creation with Share khan. Subject to Approval of Account



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CHARGE STRUCTURE

Fee Structure for General Individuals: -

Charge Classic Account Speed Trade AccountAccount Opening NIL NILMonthlyCommitment

Rs. NIL Rs. 500/=

Brokerage Intra-day 0.05%**Delivery - 0.50 %**

Intra-day - 0.025%**Delivery - 0.25%**

* Refundable in case the brokerage is more than Rs. 500/= p.m.** Condition Apply.*** Taxes as per govt.

Depository Charges

Account Opening Charges Rs. NILAnnual Maintenance Charges Rs. NIL first year Rs. 300/= p.a. from

second calendar year onward

PRODUCT DETAILS

Online Trading:

(a) CLASSIC ACCOUNT: A/C Opening charges: Rs. NILSpecial Discount in A/c Opening Charges

Rs.300 from 2nd year onwards (Annual Maintenance charges). Trading through websitelive terminal. No brokerage commitment required. NSE and BSE online. Both Cash &F&O.

(b) SPEED TRADE: Account Opening Fee: Rs. 1000/- Both Cash & F&O.

Brokerage:

0.05 % Plus Taxes for Each leg of Intra-day trade0.50 % Plus Taxes for trades resulting in delivery

EXPOSURE: 4 TO 6.7 TIMES (ON MARGIN MONEY) MAXIMUM 8 TIMES.

Online IPO's available



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We have tie up with Twelve Banks for online fund transferring i.e. HDFC, ICICI, IDBI,CITI, Union Bank of India, Oriental Bank of Commerce, INDUSIND, Yes Bank, Bankof India, Centurion Bank of Punjab, Bank of Punjab and UTI bank for online moneytransfer.

ACCOUNT OPENING AT SHAREKHAN

A STUDY ON EQUITY MARKET SUMMER INTERNSHIP PROJECT

Documents Required

List of Documents

42

1) Proof of Identity

You can submit a photo copy of any of the following

Voter ID

Passport

PAN Card

MAPIN UID Card

Driving License

Photo I-card issued by Employer registered underMAPIN

2) Copy of Ration Card

3) Address Proof

You can submit a photo copy of any of the following

Voter ID Card

Driving License

Passport

Ration Card

Telephone Bill

Electricity Bill

Leave-License

Purchase Agreement

Bank Passbook

Latest Bank Statement

Insurance PolicyFlat Maintenance Bill

4) A copy of cancelled cheque

5) Nominee photograph, if filled

6) Two Signed colored Photographs of all holders.


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For Classic Account: - 1 cancelled cheque & 1 Margin cheque of Rs. 5000.

For Speed Trade: - 1 Account Opening Cheque of Rs. 6000/- in the favor of M/sShare khan Limited.

RELIGARE

SECURITIES

LTD.



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HISTORY

1994- The Company was incorporated on 23rd March, and received the Certificate ofCommencement of Business on April 19. The Company was promoted byRanbaxy Laboratories Ltd. and its associates. The Company is engaged inbusiness of leasing, hire purchase, merchant banking and investments in capitaland money markets.

- 19,70,700 no. of equity shares of Rs 10 each and 157,50,000 preferenceshares of Rs 10 each allotted to promoters. 10,29,300 No. of equity shares of Rs10 each and 52,50,000 - 5% Convertible Preference shares of Rs 10 each wereissued in February 1995 through a prospectus as follows:

- (i) 2,75,300 no. of equity shares on firm allotment basis to promoters and

associate companies,

- (ii) 4,000 no. of equity shares to employees of the Company (all were taken up),

- (iii) 7,50,000 no. of equity shares of Rs 10 each and 52,50,000 Convertible

preference shares to public (all were taken up).

PROFILE

RELIGARE Securities Ltd. (RSL) is a wholly owned subsidiary of

RELIGARE Financial Services Ltd. (RFSL), a Company promoted by the late Dr.

Parvinder Singh, Ex-CMD of Ranbaxy Laboratories Ltd.

The primary focus of Religare Securities Ltd. is to cater to services in Capital

Market Operations to Institutional Investors. The Company is a member of the

National Stock Exchange (NSE) and OTCEI. The growing list of financial



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institutions with whom RSL is empanelled as approved Broker is a reflection of

the high levels of services maintained by the Company.

RELIGARE financial services group comprises of Religare

Securities Limited, RELIGARE Comdex Limited and RELIGARE Finvest Limited

which provide services in Equity, Commodity and Financial Services business &

Religare Insurance Advisory Ltd.

PRODUCT & SERVICES

Equity Trading

Commodity Trading

Mutual Funds promotion

Depository Services

Portfolio Management Services.

OFFERS

RELIGARE offers four different schemes to investors according to their varyingtastes, objectives and risk tolerance.

Each benefits from professional management that aims to provide consistentreturns at a reduced level of risk.

Aims to achieve gradual growth in the portfolio value over a period of time by wayof careful and judicious investment in fundamentally strong and attractive valuedshares.

Aims to achieve higher returns by taking aggressive positions across sectors andmarket capitalization.

http://www.religare.in/general/pms_offering2.html#%23http://www.religare.in/general/pms_offering2.html#%23http://www.religare.in/general/pms_offering2.html#%23


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Aims to generate steady return over a longer period by investing in securitiesselected only from BSE 100 index.

The scheme seeks to provide medium to long term capital appreciation byinvesting in stocks across the market capitalization range

Scheme aims to achieve capital appreciation over along period of time byinvesting in a diversified portfolio.

ACCOUNT OPENING AT RELIGARE

Guidelines to be followed for opening demat account:

1. Kindly fill account opening form after going through account opening

instruction given in the account opening form.

2. Please submit your duly filled & signed account opening form with one

photograph, proof of identity and proof of address documents of account

holder(s) as may be required.

3. Kindly sign agreement with DP (agreement will state rights & obligations

of both parties) and Schedule of Charges for Depository Services. Religare will

send a copy of agreement and schedule of charge along with Welcome kit for

your records.

4. Religare would intimate "Client Id" (account no.) through a welcome letter

once your depository account is opened. This 'Client Id' number along with

your 'DP Id' number forms a unique combination. Both these numbers should

be quoted in all your future dealings with Religare Securities Limited.

5. Religare will give you instruction slips for depository services viz.,dematerialization, delivery instruction for trades, etc. These instruction slips

will bear pre-printed serial numbers and your pre stamped client-id. Kindly

preserve these carefully.

http://www.religare.in/general/pms_offering2.html#%23http://www.religare.in/general/pms_offering2.html#%23


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ICICI DIRECT



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Products and Services

A product for every need: ICICIdirect.com is the most

comprehensive website, which allows you to invest in:

Shares, Mutual funds,

Derivatives (Futures and Options) and

other financial products.

1. Trading in shares:

ICICIdirect.com offers various options while trading in shares.

Cash Trading : This is a delivery based trading system, which is

generally done with the intention of taking delivery of shares ormonies.

Margin Trading : One can also do an intra-settlement trading up to3 to 4 times your available funds, wherein one takes long buy/ shortsell positions in stocks with the intention of squaring off the positionwithin the same day settlement cycle.

Margin PLUS Trading : Through Margin PLUS one can do an intra-settlement trading up to 25 times available funds, wherein onetakes long buy/ short sell positions in stocks with the intention of

squaring off the position within the same day settlement cycle.

The ICICI direct Advantages

What so unique about ICICIdirect.com?

A Unique 3-in-1 account that gives:

http://funct%28%29/http://funct2%28%29/http://marginplus%28%29/http://funct%28%29/http://funct2%28%29/http://marginplus%28%29/


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Convenience: the 3-in-1 account integrates banking, broking and demataccounts. This enables to trade in shares without going through the hassles oftracking settlement cycles, writing cheques, chasing your broker for cheques orTransfer Instructions etc.

Speed: now get the latest quotes of scrips on ICICIdirect.com and place an orderalmost instantly.

Independence: Instead of transferring monies to a broker's pool or towardsdeposits, managing own demat and bank accounts.

ACCOUNT OPENING AT ICICI DIRECT

ICICIdirect.com account can be opened for a one-time non-refundable feeof Rs 750/-.

The brokerage rates are very reasonable. The rates vary according to thevolume of trades done.

Annual Maintenance Charge: Rs.500

Brokerage: 0.75% on Delivery and 0.04% for Intraday Square off.

Fund transfer from ICICI bank only.

For bank account, a minimum quarterly average balance of Rs 5000/-needs to be maintained.

ICICI Direct provides exposure of 8 times on the balance present intrading account at the time of trade.



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GEOJIT

FINANCIAL

SERVICES

Services

The company is providing automated online trading.

Geojit also provides a Call & Trade facility to its customers wherein theycan place and track their orders through our dedicated Call Centre Deskby dialing the toll free number 1800-425-5501 or 91-484-2405822

Geojit's retail spread caters to the need of individual investors. Trading inequities is made simple, safe and interesting with smart advice from theresearch desk through daily SMS alerts, market pointers, periodical



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research reports, stock recommendations and customer meets organizedfrequently.

The online trading system allows customers to track the markets bysetting up their own market watch, receiving research tips, stock alerts,

real-time charts and news.

PRODUCTS OFFERED

Silver

Gold and Silver platforms are quite similar as they are both web-based. InSilver version the feeds are updated every minute and not real-time as in theGold platform. However, one can click the refresh button as many times toview the latest stock prices. There are no minimum brokerage charges for thisplatform. A normal investor who does not engage in speculative transactions

may find the Silver version most suited to his needs.

Gold

This platform is a web-based solution and the customer can login to thetrading platform from anywhere in the world. During market hours the stockprices are refreshed seamlessly and the delay in transmission would be a fewseconds, which is mostly dependant on the bandwidth connectivity used bythe customer. It is a web-based system; one can login from any where in theworld and take advantage of the price movements.

Platinum

The Platinum version acts as a virtual dealers terminal providing live updatesand confirmation. The executable program is downloaded on the customerscomputer so that he can trade from the comfort of his home / office. Stockprices are real-time and continuously updated once logged in.

ACCOUNT OPENING AT GEOJIT

Open a trading account and maintain initial margin with Geojit. Photocopy of address proof Photocopy of pan card. Two photographs. Account Opening Charge: They charge Rs.500/- for opening

demat/trading account Annual Maintenance Charge: They charge Rs.300/- as annual

maintenance fee.



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Brokerage: They charge 0.03% & 0.30% for online trading in intra day &delivery respectively.

For offline they charge Rs.300/month as brokerage. This is suitable forregular traders; else you end up paying Rs.300/month.

Geojit Financial Services provides exposure of 5 times.



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INDIA BULLS

http://www.indiabulls.com/default.htm


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SERVICES

1. Comprehensive financial services: India bulls provide the tools, resources& support to execute the clients trading strategies along with a range of

investment products & services.2. Dedicated support & services by the relationship managers.

ACCOUNT OPENING AT INDIA BULLS

1. A passport size photograph.2. Proof of Demat Account. For having a Depository account opened with

India bulls as well, relevant requirements are :

Proof of Bank Account - A cancelled cheque.

Photocopy of Income Tax Permanent Account Number(PAN) Card.

Address/Identity Proof - Photocopy of any of the following

Passport

PAN Card

Voter ID

Driving License

Ration Card3. Account Opening Charges: They charge Rs.500 for opening trading

account and demat account.

4. Brokerage: They charge 0.50% brokerage delivery & 0.04% intraday,

but this can be negotiated.

5. Online Fund transfer through HDFC, ICICI, Axis, IDBI bank.

6. It provides 6 times of exposure limits to its customers.

7. Annual account maintenance charges are Rs. 300/-.

8. No commitment for any minimum balance in trading account.



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GRAPHICAL

REPRESENTATIONS



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FREQUENCY OF TRADING

INTERPRETATION OF THE GRAPH

Out of 50 respondents, 35 respondents trade daily n 15 respondents trade

weekly.


DAILY, , 70%

WEEKLY, , 30%

0%

10%

20%

30%

40%

50%

60%

70%

80%

FREQUENCY OF TRADING

%AGEOFTRA

DING


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ONLINE VS OFFLINE TRADING


Out of 50 respondents, 30 respondents prefer trading online & 20 trade offline.


0%

10%

20%

30%

40%

50%

60%

ONLINE 60%

OFFLINE 40%


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COMPARATIVE

ANALYSIS ON

DIFFERENT

PARAMETERS AMONG

THE COMPANIES.



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ACCOUNT OPENING CHARGES


Among the various companies whose data has been collected, the Share

khan is the only company who is charging nothing. ICICI Direct is having

highest account opening charges.

And Religare, Geojit & India bulls have the same account opening charges

for their basic product.


0

200

400

600

800

1000

1200

1400

1600

BASIC NIL 500 750 500 500

ADVANCED 1000 NA NA NA 1450

SHARE

KHANRELIGARE

ICICI

DIRECTGEOJIT

INDIA

BULLS


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Intra day brokerage of SHAREKHAN stands highest at 0.05%.

Intra day brokerage of Religare stands stands lowest at .02%.



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Delivery brokerage of ICICI direct stands highest at 0.75%.

Delivery brokerage of Share khan stands lowest at 0.25%.


0.25%

0.30%

0.75%

0.30%

0.50%

DELIVERY DROKERAGE

SHARE KHAN

RELIGARE

ICICI

GEOJIT

INDIA BULLS


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MINIMUM BALANCE IN TRADING

ACCOUNT


It is mandatory for ICICI direct customers to have minimum average balance of

Rs. 5000/- in their account where as there is no such obligation in Share khan &

other companies taken under study.


0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

IN RUPEES

SAHREKHAN RELIGARE ICICI DIRECT GEOJIT INDIA BULLS


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EXPOSURE


Religare is providing maximum exposure to its clients i.e., 10 times in intraday.

Followed by Share Khan & ICICI Direct by 8 times and INDIA BULLS with 6

times & Geojit is providing exposure of 5 times in intraday which is the least

among the companies under study.


0

1

2

3

4

5

6

7

8

9

10

NO. OF TIMES

S HAREKHAN RELIGARE IC IC I GEO JIT INDIA BULLS


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ANNUAL ACCOUNT MAINTENANCE

CHARGES..


Among the companies under study, Share khan & India bulls has Rs 300

which is taken at the of 2nd year of account opening, it means that no charges

are there for 1st year & Religare has minimum account maintaining charges of

Rs 250 annually whereas ICICI direct has highest account maintenance

charges of Rs 500 taken annually.

A STUDY ON EQUITY MARKET SUMMER INTERNSHIP PROJECT

300

250

500

300

300

SHARE KHAN

RELIGARE

ICICI

Geojit

INDIA BULLS

66


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COMPARATIVE CONCLUSIONS

Most of the customers prefer online trading (60%).

Mostly people (60%) like to do online trading because they find it user

friendly.

Share khan has no account opening charges where as ICICI direct has

the highest of Rs 750.

Religare provides its customers minimum brokerage of 0.02% in

intraday & Share Khan provides 0.25% at delivery.

Highest brokerage is charged by ICICI at 0.75% at delivery.

ICICI direct has fixed Rs 5000 as minimum balance in trading account

while its not required in other companies like Share Khan.

Share Khan is providing maximum exposure to its clients i.e., 8 times in

intraday & two times at delivery after Religare at 10 times.

Share Khan has no account maintenance charges for 1st year, fee for

maintaining clients account is charged in 2nd year i.e.. Rs. 300/- & Religare has

minimum account maintaining charges of Rs.250 while ICICI direct has

maximum of Rs.500.



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SATISFACTION LEVEL OF THE

EXISTING CLIENTS OF

SHARE KHAN.

SATISFACTION LEVEL OF THE EXISTING CLIENTS OF SHARE KHAN ON

THE FOLLOWING PARAMETERS

Service effectiveness

Handling queries

Problem handling

Product diversity

Relation with customer

Product knowledge of employees

Employee behavior

Technical expertise of employees

Employee dedication

Employee motivation

Company image

Marketing strategies adopted by the co.

Sales force

Facilities provided by the co.

Promotional activities undertaken by the co.



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Respondents have given following points (out of 10) as per their satisfaction withthe company on following parameters

Service effectiveness - 6

Handling queries - 5

Problem handling - 5

Product diversity - 9

Relation with customer - 9

(Points taken on average)


0

1

2

3

4

5

6

7

8

9

POINTS OUT OF 10

6 5 5 9 9

SERVICE

EFFECTIVENES

S

RESPONSE TO

QUERRIES

PROBLEM

HANDLING

PRODUCT

DIVERSITY

RELATION

WITH

CUSTOMER


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Respondents have given following points (out of 10) as per their satisfaction with

the company on following parameters

Product knowledge of employees - 8

Employee behavior - 10

Technical expertise of employees - 8

Employee dedication - 8


0

1

2

3

4

5

6

7

8

9

10

POINTS OUT OF 10

3-D Column 2 8 10 8 8 7

EMPLOYEE

PRODUCT

KNOWLEDGE

EMPLOYEE

BEHAVIOR

EMPLOYEE

TECHNICAL

EXPERTISE

EMPLOYEE

DEDICATION

EMPLOYEE

MOTIVATION


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Employee motivation - 7

(Points taken on average)


Respondents have given following points (out of 10) as per their satisfaction withthe company on following parameters

Company image - 10

Marketing strategies adopted by the co. - 5

Sales force - 6

Facilities provided by the co. - 7

Promotional activities undertaken by the co. - 4


0

1

2

3

4

5

6

7

8

9

10

POINTS OUT OF 10

North 10 5 6 7 4

COMPANY

IMAGE

MARKETING

STRATEGIESSALES FORCE

FACILITIES

PROVIDED

PROMOTIONA

L ACTIVITIES

UNDERTAKEN


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(points taken onaverage)

OVERALL SATISFACTION OF

CLIENTS

Out of 50 respondents, 35 are satisfied with the services provided by

SHAREKHAN & 14 are convinced i.e., they find the services of SHARE KHAN

good.


70%

2%

28%

SATISFIED

UNSATISFIED

CONVINCED


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ADDITIONAL FEATURES REQUIRED IN

ONLINE SHARE TRADING

40 out of 50 respondents demanded proper assistance of Relationship

manager from time to time.

10 out of 50 respondents wanted cash based share trading by the

company.


80%

20%

R.M.

CASH BASED


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CONCLUSIONS OF THE PROJECT

Thus it can be concluded that

o SHARE KHAN has product diversity which is

a very important feature.

o SHARE KHAN provides all kinds of trading

facilities to its customers.

o The existing clients of SHARE KHAN are

satisfied with their company.

o The requirements of the existing clients of

SHARE KHAN is that some of them want cash based trading & a little more

assistance by their respective Relationship Managers.

SUGGESTIONS

RMs should take more interest in handling clients queries.

Cash based trading can fetch more customers to the company.

More emphasis should be given on the publicity of the company.



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Chapter V

BIBLIOGRAPHY

Web sites visited:

www.sharekhan.comwww.religare.in

www.icicidirect.comwww.geojit.comwww.nseindia.comwww.indiabulls.com

http://www.sharekhan.com/http://www.religare.in/http://www.icicidirect.com/http://www.geojit.com/http://www.nseindia.com/http://www.sharekhan.com/http://www.religare.in/http://www.icicidirect.com/http://www.geojit.com/http://www.nseindia.com/


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Chapter VI

ANNEXURE



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Questionnaire for the study of satisfaction level of the existing clients ofSHARE KHAN.

1. Name of the person:2. Name of the company:3. Designation of the person:4. Age:5. Phone:6. E-mail Id:7. Sex:

i. Experience in stock market ________________years

ii Names of the companies worked with ___________________

iii Working experience with SHARE KHAN Limited. _________________

iv Names of the different product lines offered by SHARE KHAN _____________

v In which of the financial instruments do you invest ina. sharesb. commoditiesc. mutual funds

vi How frequently do you trade

a. dailyb. weeklyc. monthly

vii Which type of trading do you preferd. onlinee. offline

viii Why do you prefer online / offline tradinga. time savingb. place conveniencec. user friendlyd. any other

ix What differentiates your trading co. i.e. SHARE KHAN with othersa. brokerageb. research reportsc. a/c opening chargesd. any extra facility



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x Please give points for your level of satisfaction on the (out of 10) onthe following parameters

1 Effectiveness of the services offered2 Response to your queries3 Problem/grievance handling4 Product knowledge of employees5 Behavior of employees6 Technical expertise of the employees7 Facilities provided by the company8 Image of the company

9 Marketing strategies10 Sales team11 Diversity in the products/services offered12 Promotional activities undertaken13 Employee dedication14 Company relation with customer15 Employee motivation

7. Any suggestion



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SWAMI VIVEKANAND INSTITUTE OF E

Swami Vivekanand Institute of Gurpreet

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