A PROJECT REPORT

ON

CUSTOMER SATISFACTION LEVEL ON SHARE MARKET

AT INDIA INFOLINE LTD.

SUBMIITTED TO

Mahamaya Technical University, Noida

In the partial fulfillment of requirements of degree of MASTER OF BUSINESS ADMINISTRATION (2010-2012)

Supervisor/ Guide: Ms. Shivi Goel. (Lecturer)

Submitted By: Satendra Singh Roll No.: 1042570015 Batch: 2010-2012

N-H 58 , Ghat Road Meerut

MEERUT INTERNATIONAL INSTITUTE OF TECHNOLOGY

CERTIFICATE

Date..

This

is

to

certify

that

this

Summer

Training

Priject

Report

entitled . is original work done Roll of by no2011-2012

Ms/Mr.. .. Student of MBA III Semester

session,Meerut International Institute Of Technology,Meerut in partial fulfillment of requirement of the award of Masters Degree in Business Administration of MTU,Noida.

Director

MEERUT INTERNATIONAL INSTITUTE OF TECHNOLOGY

GUIDE CRTIFICATE

Date.

This

is

to

certify

that

this

Summer

Training

Project

Report

entitledis original work done by Ms/Mr.. Roll no-

.. Student of MBA III Semester of 2011-2012 session, Meerut International Institute Of Technology, , in partial fulfillment of requirement of the award of Master Degree in Business Administration of MTU,NOIDA.. This work was done under the guidance of

faculty.

Meerut

Project Guide MIIT,Meerut

DECLARATION

I SATENDRA SINGH, Roll No. 1042570015 student of MBA Batch (2010-12) at Meerut International Institute Of Technology, hereby declare that the project report titled Customer satisfaction Level on Share Market AT INDIA INFOLINE Ltd. has been completed and submitted under the guidance of Mr. AMAN CHADDHA is my original work by me independently by undergoing summer training at INDIA INFOLINE Ltd and the concerned training report has not been submitted elsewhere for any purpose.

Satendra Singh M.B.A II Year ROLL NO. 1042570015

ACKNOWLEDGEMENT

Working on this project has been highly knowledgeable for me because it has provided me a complete knowledge about top most private life insurance company and its working. A project of this magnitude cannot be completed without the support of many individuals, who constantly guided, supported and critically examined the efforts put in to the making of this report. I must concede that this project would never have been completed without the support and encouragement of Sales Manager Mr. AMAN CHADDHA in India Infoline Company. I would also like to thank all the faculty members & staff of marketing area of our institute for their continuous assistance and useful guidance throughout the making of this report. I would like to heartly thanks Ms Shivi Goel and Ms. Anubha Gupta I would like to express my sincere gratitude to my parents and friends for extending their support and guidance in the making of this report.

S.No. 1.
2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. PREFACE

CONTENTS

EXECUTIVE SUMMARY INTRODUCTION INDUSTRY PROFILE COMPANY PROFILE INTRODUCTION OF THE TOPIC OBJECTIVES OF PROJECT SCOPE OF STUDY RESEARCH METHODOLOGY ANALYSIS AND INTERPRETATION FINDINGS LIMITATIONS SUGGESTIONS CONCLUSION BIBLIOGRAPHY QUESTIONNAIRE

PREFACE

The Data Collected for this purpose has been presented in a condensed form so that the deep analysis of the data can be made to draw meaningful conclusion and make the project meaningful and worthy .A good practice oriented management program include is its curriculum ,vocational training because it is an important aspect. Every student has to undergo training in an industrial commercial organization for specifically period and theoretical knowledge is imperfect and incomplete with out practical knowledge and vice-versa.To develop healthy management and administration skills in the potential managers it is very theoretical knowledge must be supported with the real business environment the training enables also yhe management students to see the working conditions under which they have to work in future. To have practical working experience in INDIA INFOLINE LTD. The training enables and helped me in giving an insight into the working process system and role and importance of Marketing in an organization to get a practical insight in the actual business environment. The training also helped me in giving an insight into the working experience process system of Marketing in an organization .

EXECUTIVE SUMMARY
The IIFL (India Infoline) group, comprising the holding company, India Infoline Ltd (NSE: INDIAINFO, BSE: 532636) and its subsidiaryes, is one of the leading players in the Indian financial services space. IIFL offers advice and execution platform for the entire range of financial services covering products ranging from Equities and derivatives, Commodities, Wealth management, Asset management, Insurance, Fixed deposits, Loans, Investment Banking, GoI bonds and other small savings instruments. IIFL recently received an in-principle approval for Securities Trading and Clearing memberships from Singapore Exchange (SGX) paving the way for IIFL to become the first Indian brokerage to get a membership of the SGX. IIFL also received membership of the Colombo Stock Exchange becoming the first foreign broker to enter Sri Lanka. IIFL owns and manages the website, www.indiainfoline.com, which is one of Indias leading online destinations for personal finance, stock markets, economy and business. IIFL has been awarded the Best Broker, India by FinanceAsia and the Most improved brokerage, India in the AsiaMoney polls. India Infoline was also adjudged as Fastest Growing Equity Broking House - Large firms by Dun & Bradstreet. A forerunner in the field of equity research, IIFLs research is acknowledged by none other than Forbes as Best of the Web and a must read for investors in Asia. Our research is available not just over the Internet but also on international wire services like Bloomberg, Thomson First Call and Internet Securities where it is amongst one of the most read Indian brokers.

CHAPTER I
INTRODUCTION

INDUSTRY PROFILE

INDUSTRY PROFILE

The Indian broking industry is one of the oldest trading industries that have been around even before the establishment of the BSE in 1875. Despite passing through number of changes in the post liberalization period, the industry has found its way onwards sustainable growth. With the purpose of gaining a deeper understanding about the role of the Indian stock broking industry in the countrys economy, we present in this section some of the industry insights gleaned from analysis of data received through primary research.

For the broking industry, we started with an initial database of over 1,800 broking firms that were contacted, from which 464 responses were received. The list was further short listed based on the number of terminals and the top 210 were selected for profiling. 394 responses, that provided more than 85% of the information sought have been included for this analysis presented here as insights. All the data for the study was collected through responses received directly from the broking firms. The insights have been arrived at through an analysis on various parameters, pertinent to the equity broking industry, such as region, terminal, market, branches, sub brokers, products and growth areas.

Some key characteristics of the sample 394 firms are:

On the basis of geographical concentration, the West region has the maximum representation of 52%. Around 24% firms are located in the North, 13% in the South and 10% in the East

3% firms started broking operations before 1950, 65% between 1950-1995 and 32% post 1995.

On the basis of terminals, 40% are located at Mumbai, 12% in Delhi, 8% in Ahmedabad, 7% in Kolkata, 4% in Chennai and 29% are from other cities

From this study, we find that almost 36% firms trade in cash and derivatives and 27% are into cash markets alone. Around 20% trade in cash, derivatives and commodities

In the cash market, around 34% firms trade at NSE, 14% at BSE and 52% trade at both exchanges. In the derivative segment, 48% trade at NSE, 7% at BSE and 45% at both, whereas in the debt market, 31% trade at NSE, 26% at BSE and 43% at both exchanges

Majority of branches are located in the North, i.e. around 40%. West has 31%, 24% are located in South and 5% in East

In terms of sub-brokers, around 55% are located in the South, 29% in West, 11% in North and 4% in East

Trading, IPOs and Mutual Funds are the top three products offered with 90% firms offering trading, 67% IPOs and 53% firms offering mutual fund transactions

In terms of various areas of growth, 84% firms have expressed interest in expanding their institutional clients, 66% firms intend to increase FII clients and 43% are interested in setting up JV in India and abroad

In terms of IT penetration, 62% firms have provided their website and around 94% firms have email facility

A BRIEF HISTORY

India Infoline was originally incorporated on October 18, 1995 as Probity Research and Services Private Limited at Mumbai under the Companies Act, 1956 with Registration No. 11 93797. India Infoline commenced operations as an independent provider of information, analysis and research covering Indian businesses, financial markets and economy, to institutional customers. India Infoline became a public limited company on April 28, 2000 and the name of the Company was changed to Probity Research and Services Limited. The name of the Company was changed to India Infoline.com Limited on May 23, 2000 and later to India Infoline Limited on March 23, 2001.

In 1999, India Infoline.com identified the potential of the Internet to cater to a mass retail segment and transformed our business model from providing information services to institutional customers to retail customers. Hence India Infoline launched Internet portal,

www.indiainfoline.com in May 1999 and started providing news and market information, independent research, interviews with business leaders and other specialized features.

In May 2000, the name of India Infoline was changed to India Infoline.com Limited to reflect the transformation of our business. Over a period of time, India Infoline.com has emerged as one of the leading business and financial information services provider in India.

In the year 2000, India Infoline

leveraged its

position as a provider of financial

information and analysis by diversifying into transactional services, primarily for online trading in

shares and securities and online as well as offline distribution of personal financial products, like mutual funds and RBI Bonds. These activities were carried on by our wholly owned subsidiaries.

India Infoline broking services was launched under the brand name of 5paisa.com through our subsidiary, India Infoline Securities Private Limited and www.5paisa.com, the e-broking portal, was launched for online trading in July 2000. It combined competitive brokerage rates and research, supported by Internet technology besides investment advice from an experienced team of research analysts, India Infoline also offer real time stock quotes, market news and price charts with multiple tools for technical analysis.

Facilities India Infolines main offices are located in approximately 4,000 square feet of office space located in Mumbai, India. India Infoline Branches collectively occupy an additional 10,000 square feet of office space located throughout India, As on March 31, 2005, India Infoline has 73 branches across 36 locations in India.

Terminals

Almost 52% of the terminals in the sample are based in the Western region of India, followed by 25% in the North, 13% in the South and 10% in the East. Mumbai has got the maximum representation from the West, Chennai from the South, New Delhi from the North and Kolkata from the East.

Branches & Sub-Brokers

The maximum concentration of branches is in the North, with as many as 40% of all branches located there, followed by the Western region, with 31% branches. Around 24% branches are located in the South and East constitutes for 5% of the total branches of the total sample.

In case of sub-brokers, almost 55% of them are based in the South. West and North follow, with 30% and 11% sub-brokers respectively, whereas East has around 4% of total sub-brokers.

Financial Markets

The financial markets have been classified as cash market, derivatives market, debt market and commodities market. Cash market, also known as spot market, is the most sought after amongst investors. Majority of the sample broking firms are dealing in the cash market, followed by derivative and commodities. 27% firms are dealing only in the cash market, whereas 35% are into cash and derivatives. Almost 20% firms trade in cash, derivatives and commodities market.

Firms that are into cash, derivatives and debt are 7%. On the other hand, firms into cash and commodities are 3%, cash & debt market and commodities alone are 2%. 4% firms trade in all the markets.

In the cash market, around 34% firms trade at NSE, 14% at BSE and 52% trade at both exchanges. In the equity derivative market, 48% of the sampled broking houses are members of NSE and 7% trade at BSE, while 45% of the sample operate in both stock exchanges. Around 43% of the broking houses operating in the debt market, trade at both exchanges with 31% and 26% firms uniquely at NSE and BSE respectively.

Products

The survey also revealed that in the past couple of years, apart from trading, the firms have started offering various investment related value added services. The sustained growth of the economy in the past couple of years has resulted in broking firms offering many diversified services related to IPOs, mutual funds, company research etc. However, the core trading activity is still the predominant form of business, forming 90% of the firms in the sample. 67% firms are engaged in offering IPO related services. The broking industry seems to have capitalized on the growth of the mutual fund industry, which was pegged at 40% in 2006. More than 50% of the sample broking houses deal in mutual fund investment services. The average growth in assets under management in the last two years is almost 48%. Company research is another lucrative area where the broking firms offer their services; more than 33% of the firms are engaged in providing company research services. Additionally, a host of other value added services such as fundamental and technical analysis, investment banking, arbitrage etc are offered by the firms at different levels.

Of the total sample of broking houses providing trading services, 52% are based in the West, followed by 25% from North, 13% from South and 10% from the East. Around 50% of the firms offering IPO related services are based in the West as compared to 27% in North, 13% in South and 10% in East. In providing mutual funds services, the Western region was dominant amounting to 49% followed by 27% from North; The South and the East are almost at par with 13% and 11% respectively.

Future Plans

68% of the firms from the sample have envisaged strategies for future growth. With the middle class Indian investor as well as foreign investor willing to invest in the stock market, majority of the firms preferred expansion of institutional and the Foreign Institutional Investor clients in their areas of growth. Around 84% have shown interest in expanding their institutional

client base. Nearly 51% of such firms are located in the West, 25% in North, 15% are from South and 9% from East. Since the past couple of years, India, along with Korea and Taiwan, has been one of the preferred destinations for the FIIs. With corporate restructuring, rising market capitalization and sectoral friendly policies helping the FIIs, more than two thirds of the firms are interested in increasing their FII client base. Amongst these firms, west again has maximum representation of 53%, followed by North with 22%. South has 15% firms and East makes up for 9%.

COMPANY PROFILE

A PROFILE OF INDIA INFOLINE LIMITED

INTRODUCTION

In most industrialized countries, a substantial part of financial wealth is not managed directly by savers, but through a financial intermediary, which implies the existence of an agency contract between the investor (the principal) and a broker or portfolio manager (the agent). Therefore, delegated brokerage management is arguably one of the most important agency relationships intervening in the economy, with a possible impact on financial market and economic developments at a macro level. In most of the metros, people like to put their money in stock options instead of dumping it in the bank-lockers. Now, this trend pick pace in small but fast developing cities like . As the per-capita-income of the country is on the higher side, so it is quite obvious that they want to invest their money in profitable ventures. On the other hand, a number of brokerage houses make sure the hassle free investment in stocks. Asset management firms allow investors to estimate both the expected risks and returns, as measured statistically. There are mainly two types of Portfolio management strategies.

1 .Passive Portfolio Strategy 2. Active Portfolio Strategy

1. Passive Portfolio Strategy: A strategy that involves minimal expectation input, and instead relies on diversification to match the performance of some market index. A passive strategy assumes that the marketplace will reflect all available information in the price paid for securities 2. Active Portfolio Strategy: A strategy that uses available information and forecasting techniques to seek a better performance than a portfolio that is simply diversified broadly.

BACKGROUND OF STOCK EXCHANGE IN INDIA The emergence of stock market can be traced back to 1830. In Bombay, business passed in the shares of banks like the commercial bank, the chartered mercantile bank, the chartered bank, the oriental bank and the old bank of Bombay and shares of cotton presses. In Calcutta, Englishman reported the quotations of 4%, 5%, and 6% loans of East India Company as well as the shares of the bank of Bengal in 1836. This list was a further broadened in 1839 when the Calcutta newspaper printed the quotations of banks like union bank and Agra bank. It also quoted the prices of business ventures like the Bengal bonded warehouse, the Docking Company and the storm tug company.

Between 1840 and 1850, only half a dozen brokers existed for the limited business. But during the share mania of 1860-65, the number of brokers increased considerably. By 1860, the number of brokers was about 60 and during the exciting period of the American Civil war, their number increased to about 200 to 250. The end of American Civil war brought disillusionment and many failures and the brokers decreased in number and prosperity. It was in those troublesome times between 1868 and 1875 that brokers organized an informal association and finally as recited in the Indenture constituting the Articles of Association of the Exchange. On or about 9th day of

July,1875, a few native brokers doing brokerage business in shares and stocks resolved upon forming in Bombay an association for protecting the character, status and interest of native share and stock brokers and providing a hall or building for the use of the members of such association.

As a meeting held in the broker Hall on the 5th day of February, 1887, it was resolved to execute a formal deal of association and to constitute the first managing committee and to appoint the first trustees. Accordingly, the Articles of Association of the Exchange and the Stock Exchange was formally established in Bombay on 3rd day of December, 1887. The Association is now known as The Stock Exchange. The entrance fee for new member was Re.1 and there were 318 members on the list, when the exchange was constituted. The numbers of members increased to 333 in 1896, 362 in 1916and 478 in 1920 and the entrance fee was raised to Rs.5 in 1877, Rs.1000 in 1896, Rs.2500 in 1916 and Rs. 48,000 in 1920. At present there are 23 recognized stock exchanges with about 6000 stock brokers. Organization structure of stock exchange varies. 14 stock exchanges are organized as public limited companies, 6 as companies limited by guarantee and 3 are non-profit voluntary organization. Of the total of 23, only 9 stock exchanges have been permanent recognition. Others have to seek recognition on annual basis. These exchange do not work of its own, rather, these are run by some persons and with the help of some persons and institution. All these are down as functionaries on stock exchange. These are 1. Stockbrokers 2. sub-broker 3. market makers 4. Portfolio consultants etc.

Stockbrokers Stock brokers are the members of stock exchanges. These are the persons who buy, sell or deal in securities. A certificate of registration from SEBI is mandatory to act as a broker. SEBI can impose certain conditions while granting the certificate of registrations. It is obligatory for the person to abide by the rules, regulations and the buy-law. Stock brokers are commission broker, floor broker, arbitrageur etc. Detail of registered brokers Total no. of registered brokers as Total no. of sub-brokers as on on 31.03.2008 9000 31.03.2008 24,000

Sub-broker A sub-broker acts as agent of stock broker. He is not a member of a stock exchange. He assists the investors in buying, selling or dealing in securities through stockbroker. The broker and sub-broker should enter into an agreement in which obligations of both should be specified. Sub-broker must be registered SEBI for a dealing in securities. For getting registered with SEBI, he must fulfill certain rules and regulation.

Market Makers Market maker is a designated specialist in the specified securities. They make both bid and offer at the same time. A market maker has to abide by bye-laws, rules regulations of the concerned stock exchange. He is exempt from the margin requirements. As per the listing requirements, a company

where the paid-up capital is Rs. 3 crore but not more than Rs. 5 crore and having a commercial operation for less than 2 years should appoint a market maker at the time of issue of securities.

Portfolio consultants A combination of securities such as stocks, bonds and money market instruments is collectively called as portfolio. Whereas the portfolio consultants are the persons, firms or companies who advise, direct or undertake the management or administration of securities or funds on behalf of their clients. Partial fulfillment for degree of M.B.A. programme, we received the opportunity from India Infoline Ltd. for our summer training project report. It is basically a stock brokering company which deals in security and derivative market, Commodity market, mutual funds and Insurance etc.

The stock market plays a major role in mobilizing the savings into investment. Stock market development is positively correlated with the development of financial intermediaries and long-term growth. Stock market also provides a different bundle of financial functions from those provided by financial intermediaries. The stock market in India is more efficient than banking system on account of the enabling government policies and that stock market development has a key role to play in the reforms of system by generating competition for funds mobilization and allocation. Hence, an efficient capital market would contribute to long-term growth. According to RBI the flow of funds in the private corporate sector shows that there is growing reliance of the private corporate sector on external financing.

The equity market in developing countries until the mid-1980s generally suffered from the classical defects of bank-dominated economies, that is, shortage of equity capital, lack of liquidity, absence of foreign institutional investors, and lack of investors confidence in the stock market. Since 1986, the capital markets of the developing countries started developing with financial liberalization and the easing of legislative and administrative barriers and the adoption of tougher regulations to boost investors confidence. With the beginning of financial liberalization in the developing countries, the flow of private foreign capital from the developed to developing countries has increased significantly and such inflow of foreign capital have been mainly in the form of foreign direct investment and portfolio investment. The latter type of inflows has mainly been through their stock markets. In the history of International Finance, the year 1992- 1993 may be seen as a watershed year in which emerging markets came into their own as capital raising mechanisms and became firmly established as a distinct asset class for the words investment community with financial liberalization, the east Asian capital markets like Singapore, Honkong and Bangkok have developed over time to the extent that they are presently regarded as international financial centers of Asia. In the capital markets over the last few years that has made the markets attractive to foreign institutional investors. This history shows us that retail investors are yet to play a substantial role in the market as long-term investors. Retail participation in India is very limited considering the overall savings of households. Investors who hold shares in limited companies and mutual fund units are about 20-30 million. Those who participated in secondary markets are 2-3 million. Both SEBI and retail participants should be active in

spreading market wisdom and empowering investors in planning their finances and understanding the markets.

About them Are a one stop financial services shop, most respected for quality of its advice, are a one- stop financial services shop, most respected for quality of its advice, personalized service and cuttingedge technology.

Vision India Infoline vision is to be the most respected company in the financial services space.

India Infoline Group The India Infoline group, comprising the holding company, India Infoline Limited and its wholly-owned subsidiaries, straddle the entire financial services space offerings ranging from Equity research, Equities and derivatives trading, Commodities trading , portfolio Management Services, Mutual Funds, Life Insurance, Fixed deposits, GoI bonds and other small savings instruments to loan products and investment banking. India Infoline also owns and manages the websites www.indiainfoline.com and www.5paisa.com. The company has a network of 596 branches spared across 345 cities and towns. It has more than 500,000 customers.

India Infoline Ltd. India Infoline Limited is listed on both the leading stock exchanges in India, viz. the stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and is also a member of both the exchanges. It is engaged in the businesses of Equities broking, Wealth Advisory Services and Portfolio Management Services. It offers broking services in the Cash and Derivatives segments of the NSE as well as the Cash segment of the BSE

A SEBI authorized Portfolio Manager; it offers Portfolio Management Services to clients. These services are offered to clients as different schemes, which are based on differing investment strategies made to reflect the varied risk-return preferences of clients.

India Infoline Media and Research Services Limited.

The content services represent a strong support that drives the broking, commodities, mutual fund and portfolio management services businesses. Revenue generation is through the sale of content to financial and media houses, Indian as well as global. It undertakes equities research which is acknowledged by none other than Forbes as 'Best of the Web' and 'a must read for investors in Asia'. India Infoline research is available not just over the internet but also on international wire services like Bloomberg.

India Infoline Commodities Limited. India Infoline Commodities Pvt Limited is engaged in the business of commodities broking. Our experience in securities broking empowered us with the requisite skills and technologies to allow us offer commodities broking as a contra-cyclical alternative to equities broking. We enjoy memberships with the MCX and NCDEX, two leading Indian commodities exchanges, and recently acquired membership of DGCX.. India Infoline Marketing & Services India Infoline Marketing and Services Limited is the holding company of India Infoline Insurance Services Limited and India Infoline Insurance Brokers Limited. (a) India Infoline Insurance Services Limited is a registered Corporate Agent with the Insurance Regulatory and Development Authority (IRDA). It is the largest Corporate Agent for ICICI Prudential Life Insurance Co Limited, which is India's largest private Life Insurance Company.

(b) India Infoline Insurance Brokers Limited India Infoline Insurance Brokers Limited is a newly

formed subsidiary which will carry out the business of Insurance broking. We have applied to IRDA for the insurance broking licence and the clearance for the same is awaited. India Infoline Investment Services Limited

Consolidated shareholdings of all the subsidiary companies engaged in loans and financing activities under one subsidiary. Recently, Orient Global, a Singapore-based investment institution invested USD 76.7 million for a 22.5% stake in India Infoline Investment Services. This will help focused expansion and capital raising in the said subsidiaries for various lending businesses like loans against securities, SME financing, distribution of retail loan products, consumer finance business and housing finance business. India Infoline Investment Services Private Limited consists of the following step-down subsidiaries.

(a) India Infoline Distribution Company Limited (distribution of retail loan products)

(b) Moneyline Credit Limited (consumer finance)

(c) India Infoline Housing Finance Limited (housing finance)

IIFL (Asia) Pte Limited

IIFL (Asia) Pte Limited is wholly owned subsidiary which has been incorporated in Singapore to pursue financial sector activities in other Asian markets. Further to obtaining the necessary regulatory approvals, the company has been initially capitalized at 1 million Singapore dollars.

MILESTONES ACHIEVED

1995 Incorporated as an equity research and consulting firm with a client base that included leading FIIs, banks, consulting firms and corporates.

1999 Restructured the business model to embrace the internet; launched archives.indiainfoline.com mobilized capital from reputed private equity investors.

2000 Commenced the distribution of personal financial products, launched online equity trading; entered life insurance distribution as a corporate agent. Acknowledged by Forbes as Best of the Web and ...must read for investors.

2004 Acquired commodities broking license; launched Portfolio Management Service.

2005 Listed on the Indian stock markets.

2006 Acquired membership of DGCX; launched investment banking services.

2007 Launched a proprietary trading platform; inducted an institutional equities team; formed a Singapore subsidiary; raised over USD 300 mn in the group; launched consumer finance business under the Moneyline brand.

2008 Launched wealth management services under the IIFL Wealth brand; set up India Infoline Private Equity fund; received the Insurance broking license from IRDA; received the venture capital license; received in principle approval to sponsor a mutual fund; received Best broker- India award from Finance Asia; Most Improved Brokerage- India award from Asiamoney.

2009

Received registration for a housing finance company from the National Housing Bank; received Fastest growing Equity Broking House - Large firms in India by Dun & Bradstreet.

2010 Received in-principle approval for Securities Trading and Clearing memberships from SGX.

KEY MILESTONE OF COMPANY-

Incorporated on Oct 18, 1995 as Probity Research and Services. Lunched internet portal www.indiainfoline.com in may 1999. Commenced distribution of personal financial product like Mutual Fund and RBI Bonds in April 2000.

Lunched online trading in shares and securities branded as www.5paisa.com in July 2000. Started life insurance agency business in December 2000 as corporate agent of ICICI prudential life insurance.

Become a depository participant of NSDL, in Sept 2001. Lunched stocks messaging services in May 2003.
Acquired commodities broking license in March 2004. Lunched portfolio management services in August 2004.

Listed on NSE and BSE on May 17, 2005. Acquired NBFC license in May 2005. Acquired 75% stake holding in money tree consultancy services, which is a distribution of mortgagees and other loan products, in Oct 2005.

Acquired 100% equity of March Mont capital adviser Pvt. Ltd. In Dec 2005, through which the company has venture into Merchant Banking.

DSP Merrill Lynch Capital subscribe to convertible bonds aggregating Rs.80 crores in Dec2005.

Become a depositary participant of CDSL. In June 2007. Enter into an alliance with Bank of Baroda for E-trading in Feb 2007. IRDA license for insurance broking in April 2007. CLSA institutional equities joined us 2007. Formed Singapore subsidiary IIFL(Asia) Pvt. Ltd. In 2007. Mr. Arun Kumar Purvar joined as independent director in March 2008.

MANAGEMENT TEAM Mr. Nirmal Jain ( Chairman & MD)

Mr. R. Venkataraman ( Executive Director) Mr. Sat Pal Khattar (Non Executive Director) Mr. Nilesh Vikamsey (Independent Director)

MARKET SHARES OF COMPANY

Retail broking : IndiaInfoline has around 3 lakhs customers. It has a tie-up with Bank of Baroda for e-broking. Institutional broking : IndiaInfoline has roped in Bharat Parajia, director of sales at CLSA in Singapore, H Nemkumar, CLSA's country head for India, Aniruddha Dange, CLSA's head of research in India, and Vasudev Jagannath, CLSA's head of sales in India. While Parajia will join as head of institutional sales at India Infoline, Dange will be head of research and Nemkumar head of investment banking. Each one of them is bringing in more than 10 years of experience with a top institutional brokerage in Asia. The CLSA foursome will also pick up stakes in India Infoline through the preferential allotment route. Their collective stake would add up to around 15%. Parajia already holds a 2.88% stake in India Infoline. He will subscribe to 25 lakhs equity warrants at Rs 440 each. Nemkumar will pick up another 25 lakhs, while Jagannath and Aniruddha Dange will subscribe to 20 lakhs warrants each. The preferential allotment includes the four men buying 90 lakh equity

warrants at a price of Rs 440 each, of which 10% will be paid up front as their sign-on bonus.

The remaining will be payable at the end of eighteen months when the warrants will be convertible into shares. That is, all these guys will have to cough up about Rs 360 crore to convert their warrants into shares. Currently, the company's institutional equities team has 35 people, including research analysts and dealers.

Following are the objectives

To know different analysis made for trading of stocks. To evaluate the time of buying and selling of security. To determine the market prices of the security by the interaction of supply and demand forces. To detect the irrespective of why the security occur, shifts in demand and supply with the help of charts, graphs etc of market action. To calculate the average price of stocks To know the Support & Resistant level of a security Finally to compare different analysis made for transacting a security. How many people aware of online trading or Demat account.

 The risk tolerance of different segment of investor. Investment pattern with respect of age & sex. How many people are investing in share market (online/offline). From which source people are aware about share market.

WHERE INDIA INFOLINE STAND IN THE MARKET

INDIA INFOLINE one of the leading financial intermediaries and India's most popular website for business and investment. Its Website has been rated as 'Best of the Web' by Forbes, under the Asia Investing category.

Besides providing up-to-date and comprehensive information on business and industry, It is also a leading investment intermediary for Mutual Funds, Bonds, ICICI / IDBI Bonds, Govt. Relief Bonds, Insurance, IPOs and Fixed Deposits in India. India Infoline is direct brokers/ agents with leading financial institutions like RBI, UTI, LIC, GIC, ICICI, IDBI and other private mutual fund like HDFC, Alliance, Prudential ICICI, Templeton, TATA, HSBC, Standard & Chartered, Sun F&C, Birla, DSP Merrill Lynch, Kotak, IL&FS, Sundaram, Zurich and Reliance.

The company has more than 500 Investor points in all the leading cities across India, with a team of trained and qualified investment advisors and 1500+associates (sub brokers). Company e-

broking web site 5paisa.com, which deals in shares, provides you fast, secure and easy to use trading facilities combined with a wealth of outstanding products and features. Thus, we are uniquely placed with both online and offline presence to maximize customer satisfaction.

India Infoline is a growing organization, which is an ideal place for individuals with high ambitions. The working atmosphere is highly charged with a young and energetic team of qualified professionals.

MARKETING STRATEGY OF INDIA INFOLINE

Market Positioning: Market positioning statements of India Infoline are At India Infoline we give you single window service and We also ensure your comfort. So, India Infoline focus on the consumers who prefer almost all investment activities at same place by providing number of various financial services. At India Infoline a person can purchase or sell shares, debentures etc. and at the same place also demat it. India Infoline also provides other investment option to the same person at same place like Mutual Fund, Insurance, Fixed Deposit, and Bonds etc. and help the person in designing his portfolio. By this way India Infoline provides comfort to its customers.

Target Market: India Infoline uses demographic segmentation strategy and segment people based on their occupation. India Infoline uses selective specialization strategy for market targeting. Target person for the India Infoline Stock Broking and India Infoline Investment Service are persons who can

work as sub-broker for the companies. Companies focus on Advisors of Insurance and post office, Tax consultants and CAs for making sub-broker.

Marketing channel System: India Infoline uses one level marketing channel for investment product distribution. Subbrokers work as intermediary between consumer and company. Company has both forward and backward flow of activity through channel. Company distributes stationery, brokerage, and information forward to its sub-broker. The sub-brokers send filled forms, queries, amount of investment etc. back to the company.

Training Channel Members: India Infoline provides training to the sub-brokers because they will be viewed as the company by the investors. The executives of India Infoline explain various new schemes of investment to the sub-brokers with its objective, risk factors and expected return. Company also periodically arrange seminar to guide sub-brokers.

Advertising and Promotion: The objective of advertising of India Infoline is to create awareness about services of India Infoline among investors and sub-brokers. India Infoline also publishes its weekly Stock Market Newsletter Market Mantra.

INVESTMENT

Investment is the employment of funds on assets with the aim of earning income or capital appreciation. Investment has two attributes namely time and risk. Present consumption is sacrificed to get a return in the future. The sacrifice that has to be borne is certain but the return in the future may be uncertain. The risk is undertaken with a view to reap some return from the investment. To the economist, investment is the net addition made to the nations capital stock that consists of goods and services that are used in the production process. A net addition to the capital stock means an increase in the buildings, equipment or inventories. These capital stocks are used to produce other goods and services. Financial investment is the allocation of money to assets that are expected to yield some gain over a period of time. It is an exchange of financial claim such as stock and bonds for money. They are expected to yield returns and experience capital growth over the years.

INVESTMENT OBJECTIVE The main investment objective are increasing the ray of return and reducing the risk. Other objectives like Safety, Liquidity and hedge against inflation can be considered as subsidiary objectives. These objectives are of two types

Primary objectives Secondary objectives

PRIMARY OBJECTIVES:

(i)

RETURN:

Investors always expect a good rate of return from their investments. Rate of return could define as the total income the investors receives during the holding period stated as a percentage of the purchasing price at the beginning of the holding period. Return = End period value Beginning period value + Dividend x 100 Beginning period value

(ii)

RISK:

Risk is holding securities are related with the probability of actual return becoming less than the expected return. The word risk is synonymous with the phase variability of return. Risk is important part in investment because high risk expected high profit and low risk show

minimum profit but it is depending on time to time. So every investor likes to reduce the risk of his investment by proper combination of different securities. (iii) LIQUIDITY:

Marketability of the investment provides liquidity to the investment. The liquidity depends upon the marketing and trading facility. If a portion of the investment could be converted into cash without much loss of time, it would help the investor meet the emergencies. Stocks are liquid only if they command good market by proving adequate return through dividends and capital appreciation. HEDGE AGAINST INFLATION: Since there is inflation in almost all the economic, the rate of return should ensure a cover against inflation. The return rate should be higher than the rate of inflation; otherwise the investor will have loss in real terms. Growth stock would appreciate in their values overtime and provide a protection against inflation. The return thus earned should assure the safety of the principal amount, regular flow of income be a hedge against inflation.

(iv)

SAFETY:

The selected investment avenue should be under the legal and regulatory frame work. If it is not under the legal frame work, it is difficult to represent the grievances, if any. Approval of the law itself adds a flavor of safety. Even through approved by law, the principal differs from one mode of investment to another. (v) GROWTH OF CAPITALS:

Capital gains are entirely different from return in that they are only realized when the security is sold for a price that is higher than the price at which it was originally purchased. Selling at a lower price is referred to as a capital loss. Therefore, investors seeking capital gains are likely not those who need a fixed, ongoing source of investment returns from their portfolio, but rather those who seek the possibility of longer-term growth.

Growth of capital is most closely associated with the purchase of common stock, particularly growth securities, which offer low yields but considerable opportunity for increase in value.

Capital gains offer potential tax advantages by virtue of their lower tax rate in most jurisdictions. Funds that are garnered through common stock offerings, for example, are often geared toward the growth plans of small companies, a process that is extremely important for the growth of the overall economy. In order to encourage investments in these areas, governments choose to tax capital gains at a lower rate than income. Such systems serve to encourage entrepreneurship and the founding of new businesses that help the economy grow.

SECONDARY OBJECTIVES:

(i) TAX MINIMISATION

An investor may pursue certain investments in order to adopt tax minimization as part of his or her investment strategy. For example a highly-paid executive may want to seek investments

with favorable tax treatment in order to reduce his or her overall income tax burden by Making contributions to an individual retirement account (IRA) or other tax-sheltered retirement plan.

(ii) HEDGE AGAINST INFLATION:

Since there is inflation in almost all the economic, the rate of return should ensure a cover against inflation. The return rate should be higher than the rate of inflation; otherwise the investor will have loss in real terms. Growth stock would appreciate in their values overtime and provide a protection against inflation. The return thus earned should assure the safety of the principal amount, regular flow of income be a hedge against inflation.

DIFFERENT INVESTMENT OPTION

Investment Option Bank FDs

Risks/Liquidity Returns

Taxation

Suitability

Very low risk and low liquidity.

Low returns, but assured. Depending on the tenure and bank, could be around 6-9%

Since returns are fully taxable, the post-tax returns will be still lower.

Good for very low risk investors and those in the nil or low tax brackets. As interest rate

scenario seems to be peaking, one could consider investing

in 3-5 year FDs.

MUTUAL Low FUND

risk

and No returns depending tenure MF, around

assured but on

MFs attract much lower taxation and

Good for low risk investors, but in high tax brackets. Good for investing the debt portion of ones portfolio.

low Liquidity.

and could

the hence give better be post-tax returns vis--vis Bank FDs.

6-9%.

(Ability to deliver the indicative

returns). Floating Rate Funds Low risk and high liquidity. Market linked. Lower taxation of MFs makes Floating Rate funds attractive. Good for investing short-term money where one needs higher liquidity.

Today could be around 5-7%.

Debt Funds

Low to Medium Returns risk. High Liquidity. market-linked.

are

Lower taxation of MFs makes such funds attractive.

Can be avoided in a rising interest

Today could be around 5-7%, but susceptible to

rate scenario but is good in a falling interest scenario. rate

interest rate risk. Post Office Low risk and MIS scheme give Since returns are

Good for very low

Schemes

low Liquidity.

8% interest. Time deposit 6.257.5%.

taxable, the posttax returns will be still lower. Interest is taxfree. Also Sec 80C benefit. Hence a good scheme.

risk investors and those in the nil or low tax brackets. Good tax saving investment option. Good for investing the debt portion of ones portfolio.

PPF

Low risk with very low liquidity (15year lock-in period. Partial withdrawal allowed after 6 years). NSC Low risk with low liquidity (6 years lock-in).

8% assured returns.

8% assured returns.

Interest fully taxable. But eligible for Sec 80C benefit.

Not very attractive vis--vis other options like 5-year Bank FDs. Needs high risk appetite. Ideal for those investors who have a good corpus, good knowledge and time to track the markets regularly. Care

Equity

High risk and high liquidity.

Market linked returns. Good potential.

Attractive tax treatment. No Long Term Capital Gain Tax and 10% Short Term Capital Gains Tax.

should be taken to invest in good profit making companies. Penny stocks should be avoided. Equity Funds High risk and high liquidity in open-ended funds. Market linked returns. Good potential. Attractive tax treatment. No Long Term Capital Gain Tax and 10% Short Term Capital Gains Tax. Ideal for small and common investors, but with high risk appetite. welldiversified portfolio with say 50-60% money in 5-7 diversified funds, 25-35% money in 3-4 mid/small-cap funds and 10-15% in 3-4 sector funds. ELSS Funds High risk with low liquidity (3 years lock-in period). Market linked returns. Good potential. Attractive tax treatment. No Long Term Capital Gain Tax and 10% Short Term Capital Good tax saving investment option. Amounts beyond Rs.1 lakh limit could be invested in open-ended funds.

Gains Tax. Also Sec 80C benefit.

SIP in ELSS would reduce the volatility risk.

Balanced Funds

Medium to High risk. High Liquidity.

Medium to high returns. Market linked.

Attractive tax treatment. No Long Term Capital Gain Tax and 10% Short Term Capital Gains Tax.

Though convenient as both debt and equity investment is covered under one fund, it may be better to invest separately in equity and debt funds for better control.

ULIPs

Low to High Risk depending on the investment option i.e. Pure Debt or Mixed or Pure Equity. (3-5 years lockin period).

Low to high depending on the investment option. Market linked returns.

Tax free returns. Also Sec 80 C benefit available.

Not an attractive option due to high charges, low flexibility and low diversification. There are other better similar investment products like MFs

Endowment/ Money back

Low risk and very low

Low returns. Generally around

Tax free returns. Also Sec 80 C

Not an attractive option due to low

Plan

liquidity.

6-6.5%.

benefit available.

returns. There are other better similar investment products.

Real Estate

Variable risk and variable liquidity depending on the type and location of property.

Market linked returns. Good potential.

No tax advantages, except attractive tax benefits on the home loans.

High initial investment required which could make ones portfolio lopsided; high transactions costs.

EQUITY INVESTMENT
Equity investment means the engagement of savings in the stock of a company for the purpose of earning income such as dividend, capital appreciation, etc. SHARES: The capital of the company divided into different units with definite and equal value called shares. Holders of these shares called shareholders. There are two types of shares which a company may issue. (i) Preference Shares (ii) Equity Shares

PREFERENCE SHARES:
Shares which enjoy the preferential rights as to dividend and repayment of capital in the event of winding up of the company over the equity shares are called preference shares. The holder of preference shares will get a fixed rate of dividend. Preference share are classified into different types, these are:

1.

Cumulative preference shares: Cumulative preference shares will accumulate any dividend that is not paid when due. Any unpaid dividend is added to the amount payable the following year and no dividends can be paid on ordinary shares until the entire backlog of unpaid dividends on cumulative preference is cleared.

2.

Non-cumulative preference shares: Non-Cumulative Preferred is preferred stock that no pay to the holder of any unpaid or omitted dividends. If the corporation chooses no pay dividends in a given year, the investor is to claim any of those forgone dividends in the future is lost.

3.

Redeemable preference share: Type of stock (shares) that is liable to be bought back by the issuing firm on a specified date or after a specified period of notice. Corporate legislation in some jurisdictions prohibits the redemption if it jeopardizes the financial health of the issuer.

4.

Participating or non-participating preference shares: Participating preference share is capital stock which provides a specific dividend that is paid before any dividends are paid to common stock holders, and which takes precedence over

common stock in the event of a liquidation. This form of financing is used by private equity investors and venture capital firms. Holders of participating preferred stock get both their money back (with interest) and the money that is distributable with respect to the percentage of common shares into which their preferred stock can convert.

EQUITY SHARES:

Equity shareholders will get dividend and repayment of capital after meeting the claims of preference share holders. There will be no fixed rate of dividend to be paid to the equity shareholders and this rate may vary from year to year. This rate of dividend is determined by the directors and in case of large profits; it may even be more than the rate attached to preference share. Such shareholders may go without any dividend if no profit is made. Equity shares are most risk bearing securities because holders of these shares will get repayment of capital after meeting the claims of preference share holders, debenture holders and other creditors. The value of these shares in the market fluctuates upward or downward with the fortunes of the company. Equity share holders enjoy voting right

in case of any decisions in the company.

SHARE MARKET:
Share market is a place where shares are issued or purchased or sold. These shares may be new issue or existing shares. There are two types of share markets:

(i) Primary Market

(ii) Secondary Market

Primary Market: This is the market where fresh issues of shares are made.

Secondary Market: In this market existing shares are traded. BSE and NSE are two major secondary markets in India. Apart these two exchanges there are twenty one exchanges in India.

SHARE MARKET PARTICIPANT: There are two basic market participants these are: (i) (ii) Investor vs. Speculator Institutional vs. Retail Investor

Investor: An investor may be people or company who make investment in securities with an objective to get return in long term.

Speculator: They involve in buying, holding, selling and short selling of securities. All above these happen due to fluctuation in the price of securities.

Institutional Investor: An institutional investor is investors such as bank, insurance company, retirement fund, hedge fund or mutual fund that is financially sophisticated and makes large investment, often held in very large portfolio management.

Retail Investor: A retail investor is an individual investor possessing shares of a given security. Retail investors can be further divided into two categories of share ownership:

1. A Beneficial Shareholder is a retail investor who holds shares of their securities in the account of a bank or broker, also known as in Street Name. The broker is in possession of the securities on behalf of the underlying shareholder.

2. A Registered Shareholder is a retail investor who holds shares of their securities directly through the issuer or its transfer agent.

DIFFERENT INVESTMENT OPTIONS IN SHARE MARKET: Equity through secondary Market Equity through IPOs/Primary Market Equity through Derivatives

Equity through secondary market: It is the investment on already existing equity shares of companies. Equity through IPOs/Primary market:
When a company raises capital by issuing shares to general investors, the process is called

a public issue of share or a primary market issue. If the company approaching the capital market with an issue of shares for the first time, the issue is called an Initial public offering.

Equity through derivatives: Derivatives are a financial instrument which value is derived from underlying assets

(commodities, shares, forex and other assets). Derivative is three types forward contract, future contract, option.

Forward contracts: These are used in the foreign exchanges markets to reduce currency risk and in the commodities market to reduce the price risk.

Future contract: Derivative contract wherein you agree to buy or sell a specified quantity of the underlying assets on a specified particular date in the future, at he price agreed upon at the time of entering into contract. In India equities future market, this price is the spot price (the price of the underlying assets in the cash market) prevailing on the date of the expiry of contract. Futures are legally binding and both parties are bound to uphold the agreement.

Option: This is a contract that gives you the right (but not the obligation or the liability) to buy or sell a specified quantity of the underlying assets at an agreed price (strike/agreed price) on or before the before the specified future date (expiration date). To acquire this right, you pay a price (option premium) to the seller of the option option writer. The potential loss for the option seller is unlimited whiles his upside or profit is limited to the premium that he

receives. On the other hand the maximum loss that the buyer could face is the option premium that he pays, put his potential profit is unlimited.

DIFFERENT ANALYSIS FOR EQUITY INVESTMENT:

There are different analysis are made by the investor for investment in equity. These are (i) (ii) Fundamental analysis Technical analysis

Fundamental analysis: Fundamental analysis is really a logical and systematic approach to estimating the future share price. It is based on the premises that share price are determined by a number of fundamental factors relating to the economy, industry, and company fundamentals. Fundamental analysis is, in other words a detailed analysis of the fundamental factors affecting the performance of the company as well its share price. Generally each share is assumed to be having an economic worth based on its presents and future earning capacity, this is called intrinsic value or fundamental value. The purpose of fundamental analysis is to compare intrinsic value of share with the prevailing market price of the share. The market price of the share is due to the supply and demand of the share in the market. This helps to the investor to make an investment decision. The market price of the share is always trying to match with its intrinsic price so that if the market price of the share is higher than its intrinsic price then the investor should sell the share because the share price will go down to match with its intrinsic price .if the market

price of the share is lower than the intrinsic price than the investor should bought the share because the share price will go up to match up with its intrinsic price. Thus fundamental analysis provides an analytical framework for rational investment decision making. This analytical framework is known as EIC framework.

(EIC FRAMEWORK) The logic behind this three tire analysis is that the share price depends upon not only its own effort but also on general industry and economic factor. A company belongs to an industry and an industry belongs to an economy. So the effective industry and economy affect the share price. Classification of factors: (i) Economic wide factor: such as growth rate of the economy, inflation rate, foreign exchange rate which affect all companies (ii) Industry wide factors: such as demand supply gap in the industry, the emergence of substitute product, change in government policy etc these factor affecting those companies which belongs to an specific industry. (iii) Company specific factor: such as the age of its plant, the quality of management, brand image of its products, its labour management relationship, etc. These are the actors which affect the performance of the company. Technical analysis: A technical analyst in technical analysis believes that the share prices are determined by the demand and supply forces operating in the market. These forces again

influenced by a number of fundamental factors as well as the emotional factors of the investors. The combined impact of all these factors is reflected in the share price movement. The technical analysis includes the past share prices to forecast the future share price. So that technical analysis is the forecasting technique to determine the future price of the stock by taking historical price of the stock. Basic principle of technical analysis: (i) The market price of the share price is related to supply and demand forces operating in the market. (ii) (iii) (iv) Security prices movement are continuous in a particular direction for some length of time. Trends in stock price shows when there is a shift in demand and supply factors. The shifts in demand and supply forces can be detected through charts prepared specially to show market action. (v) These charts can show the resistance and support level of the stock price.

ROLE OF MARKET TRENDS IN EQUITY INVESTMENT:

Trends refer to the direction of share price movement for a long period of time such as month and quarter. Trend is divided into two types. These are bullish trend and bearish trend. (i) Bullish trend: During a bull market (up word moving market) in the first phase the price would advanced with the revival of confidence in the future business. The future prospect of business should be promising .this will promote the investor to purchase share of companies .during second phase the price would advanced due to the corporate earnings. In the third phase price advances due to the inflation means

the demand of share increased. In the bullish trend the share price moves in a up word direction for a long period of time.

So during the bullish trend the investors are investing their money to gain profit from the up word movement of share price. (ii) Bearish trend: bearish trend is the opposite of the bullish trend here prices began to fall due to the lost of hope on company and investor sell their shares in first phase and in the second phase the fall in distributing dividend and causes further fall in share price So during the bearish trend the investors are selling their security to capitals. avoid the loss of

Support and resistance level of share price: Support and resistance level are those price levels at which the down trend and up trend in share price movements is reversed. Support occurs when price is falling but bounce back or reverse direction every time it reaches a particular level. When all these low points are connected through a straight line it forms the support level. Support level is the price level at which sufficient buying pressure is exerted t defend the fall in price Resistance occurs when the share price moves up word. The price fall back every time it reaches a particular price level. A straight line joining this price level forms the resistance level. Resistance level is the price level at which sufficient selling pressure is exerted to restrict the share price to move up word.

COMPETITORS DETAILS

KARVY

KARVY is a premier integrated financial services provider, and ranked among the top five in the country in all its business segments, services over 16 million individual investors in various capacities, and provides investor services to over 300 corporate, comprising the who is who of Corporate India. Karvy has a professional management team and ranks among the best in technology, operations and research of various industrial segments.

ICICI DIRECT

ICICI Web Trade Limited (IWTL) maintains www.icicidirect.com (herein after referred to as the "Website") whereas IWTL is an affiliate of ICICI Bank Limited and the Website is owned by ICICI Bank Limited. IWTL has launched and established an online trading service on the Website.

HDFC SECURITY

HDFC security is the subsidiary of HDFC (Housing Development Financial Corporation). www.hdfcsec.com would have an exclusive discretion to decide the customers who would be entitled to its online investing services. www.hdfcsec.com also reserves the right to decide on the criteria based on which customers would be chosen to participate in these services .The present web

site (www.hdfcsec.com) contains features of services that they offer/propose to offer in due course. The launch of new services is subject to the clearance of the regulators. i.e. SEBI, NSE and BSE.

INDIABULLS SECURITIES LIMITED

Indiabulls Securities Limited was incorporated as GPF Securities Private Limited on June 9, 1995. The name of the company was changed to Orbis Securities Private Limited on December 15, 1995 to change the profile of the company and subsequently due to the conversion of the company into a public limited company; the name was further changed to Orbis Securities Limited on January 5, 2004. The name of the company was again changed to Indiabulls Securities Limited on February 16, 2004 so as to capitalize on the brand image of the term Indiabulls in the company name. ISL is a corporate member of capital market & derivative segment of The National Stock Exchange of India Ltd. At present, ISL accounts for approximately 3% of the total daily turnover of the Exchange with 32,359 client relationships and 70 branches spread across the country as of April 30,2004.

INTRODUCTION OF TOPIC

Customer satisfaction is a measure of how products and services supplied by a company can meet the customers expectations. Customer satisfaction is still one of the single strongest predictors of customer retention. Its considerably more expensive to attract new customers than it is to keep old ones happy. In a climate of decreasing brand loyalties, understanding customer service and measuring customer satisfaction are very crucial.

There is obviously a strong link between customer satisfaction and customer retention. Customer's perception of Service and Quality of product will determine the success of the product or service in the market.

With better understanding of customers' perceptions, companies can determine the actions required to meet the customers' needs. They can identify their own strengths and weaknesses, where they stand in comparison to their competitors, chart out path future progress and improvement. Customer satisfaction measurement helps to promote an increased focus on customer outcomes and stimulate improvements in the work practices and processes used within the company.

Customer expectations are the customer-defined attributes of your product or service you must meet or exceed to achieve customer satisfaction.

Customer satisfaction

Customer satisfaction can be represented as follows. Customer satisfaction=Performance Features + Behavioural Features + Price.

Performance features address the issues on Conformance to the standards and Variability and the behavioural aspects of service provider deals with the following components of service which is a major enabler for the growth of the business as indicated in the research publications.

If customer experience matches customer expectations, leads to customer satisfaction and if customer experience doesnt match Customer Expectation, leads to Customer dissatisfaction. On similar lines if it exceeds expectation leads to Customer Delight.

Purpose Many researchers have proposed a virtuous chain of effects from improved customer satisfaction to profits. In particular, satisfaction is thought to improve share-of-spending, which in turn leads to higher customer revenue and customer profitability. This paper aims to examine these proposed linkages using data from the institutional securities industry. There are many reasons why customer expectations are likely to change over time. Process improvements, advent of new technology, changes in customer's priorities, improved quality of service provided by competitors are just a few example

Functions of SEBI It is the duty of SEBI to protect the interest of investors in securities into promotes the development of, and to regulate the securities market, by such measures as it thinks fit. Prohibiting fraudulent and unfair trade practices relating to the securities market Prohibiting insider trading in securities. Regulating the business in stock exchange(s) and any other securities market(s). Registering and regulating the working of stock brokers, sub- brokers, share transfer agents, bankers to an issue, trustees of trust deeds, registrars to an issue merchant bankers, underwriters, portfolio managers, investor advisor, and such other intermediaries who may be associated with the securities market. Registering and regulating the working of ventures capital and collective investment schemes include Mutual funds. Promoting and regulating self-regulatory organizations. Promoting investors education and training of intermediaries of the securities marked. Conducting research for the above purpose. Regulating substantial acquisition of shares and takeover of companies. Calling for information and record form, undertaking inspection, conducting inquiries and audits, stock exchanges, mutual funds and other persons associated with the securities market intermediaries and self-regulatory organizations in the securities market. Performing such functions and exercises such powers under the provisions of the Securities Contract Act, as may be delegated to it by the Central Government.

The Indian broking industry is one of the oldest trading industries that have been around even before the establishment of the BSE in 1875. Despite passing through number of changes in the post liberalization period, the industry has found its way onwards sustainable growth. With the purpose of gaining a deeper understanding about the role of the Indian stock broking industry in the countrys economy, we present in this section some of the industry insights gleaned from analysis of data received through primary research.

For the broking industry, we started with an initial database of over 1,800 broking firms that were contacted, from which 464 responses were received. The list was further short listed based on the number of terminals and the top 210 were selected for profiling. 394 responses, that provided more than 85% of the information sought have been included for this analysis presented here as insights. All the data for the study was collected through responses received directly from the broking firms. The insights have been arrived at through an analysis on various parameters, pertinent to the equity broking industry, such as region, terminal, market, branches, sub brokers, products and growth areas.

Some key characteristics of the sample 394 firms are:

On the basis of geographical concentration, the West region has the maximum representation of 52%. Around 24% firms are located in the North, 13% in the South and 10% in the East

3% firms started broking operations before 1950, 65% between 1950-1995 and 32% post 1995.

On the basis of terminals, 40% are located at Mumbai, 12% in Delhi, 8% in Ahmedabad, 7% in Kolkata, 4% in Chennai and 29% are from other cities

From this study, we find that almost 36% firms trade in cash and derivatives and 27% are into cash markets alone. Around 20% trade in cash, derivatives and commodities

In the cash market, around 34% firms trade at NSE, 14% at BSE and 52% trade at both exchanges. In the derivative segment, 48% trade at NSE, 7% at BSE and 45% at both, whereas in the debt market, 31% trade at NSE, 26% at BSE and 43% at both exchanges

Majority of branches are located in the North, i.e. around 40%. West has 31%, 24% are located in South and 5% in East

In terms of sub-brokers, around 55% are located in the South, 29% in West, 11% in North and 4% in East

Trading, IPOs and Mutual Funds are the top three products offered with 90% firms offering trading, 67% IPOs and 53% firms offering mutual fund transactions

In terms of various areas of growth, 84% firms have expressed interest in expanding their institutional clients, 66% firms intend to increase FII clients and 43% are interested in setting up JV in India and abroad

In terms of IT penetration, 62% firms have provided their website and around 94% firms have email facility

A BRIEF HISTORY

India Infoline was originally incorporated on October 18, 1995 as Probity Research and Services Private Limited at Mumbai under the Companies Act, 1956 with Registration No. 11 93797. India Infoline commenced operations as an independent provider of information, analysis and research covering Indian businesses, financial markets and economy, to institutional customers. India Infoline became a public limited company on April 28, 2000 and the name of the Company was changed to Probity Research and Services Limited. The name of the Company was changed to India Infoline.com Limited on May 23, 2000 and later to India Infoline Limited on March 23, 2001.

In 1999, India Infoline.com identified the potential of the Internet to cater to a mass retail segment and transformed our business model from providing information services to institutional customers to retail customers. Hence India Infoline launched Internet portal,

www.indiainfoline.com in May 1999 and started providing news and market information, independent research, interviews with business leaders and other specialized features.

In May 2000, the name of India Infoline was changed to India Infoline.com Limited to reflect the transformation of our business. Over a period of time, India Infoline.com has emerged as one of the leading business and financial information services provider in India.

In the year 2000, India Infoline

leveraged its

position as a provider of financial

information and analysis by diversifying into transactional services, primarily for online trading in

shares and securities and online as well as offline distribution of personal financial products, like mutual funds and RBI Bonds. These activities were carried on by our wholly owned subsidiaries.

India Infoline broking services was launched under the brand name of 5paisa.com through our subsidiary, India Infoline Securities Private Limited and www.5paisa.com, the e-broking portal, was launched for online trading in July 2000. It combined competitive brokerage rates and research, supported by Internet technology besides investment advice from an experienced team of research analysts, India Infoline also offer real time stock quotes, market news and price charts with multiple tools for technical analysis.

Facilities India Infolines main offices are located in approximately 4,000 square feet of office space located in Mumbai, India. India Infoline Branches collectively occupy an additional 10,000 square feet of office space located throughout India, As on March 31, 2005, India Infoline has 73 branches across 36 locations in India.

Terminals

Almost 52% of the terminals in the sample are based in the Western region of India, followed by 25% in the North, 13% in the South and 10% in the East. Mumbai has got the maximum representation from the West, Chennai from the South, New Delhi from the North and Kolkata from the East.

Branches & Sub-Brokers

The maximum concentration of branches is in the North, with as many as 40% of all branches located there, followed by the Western region, with 31% branches. Around 24% branches are located in the South and East constitutes for 5% of the total branches of the total sample.

In case of sub-brokers, almost 55% of them are based in the South. West and North follow, with 30% and 11% sub-brokers respectively, whereas East has around 4% of total sub-brokers.

PURPOSE OF THE STUDY

The purpose of the study is to know the expectations of those customers who trading in INDIA INFOLINE LTD and the satisfaction levels of customers with the services provided by the INDIA INFOLINE LTD.

Here the main purpose of the survey is to know the various factors that are very important in satisfying the customers needs and to know how INDIA INFOLINE LTD is ensuring its customers satisfaction.

The expectations of customers are vary from one customer to the other customer. It is very difficult to any business firm to satisfy all the expectations of all customers but there are some common factors that are essential to fulfill.

RESEARCH METHODOLOGY

Type of Research Descriptive Research. Descriptive research includes surveys and fact finding enquries of different kinds. The major purpose of Descriptive research description of the state of affairs as it exists at present .In Social science & business research we quite often use the term EX POST FACTO RESEARCH for descriptive research studies.

Sample design

Sampling design The sampling method adopted for research work was Convenience sampling method. Sample size - The sample selected was 200. The data collection method was based on the following: Sampling Unit Shareholders Sampling area- Meerut

Variables of the Study Dependent Variable Overall satisfaction

Independent Variable Brokerage, Tips, Trade confirmation, Flexibility, Customer support, Speed of service, Clarity of information, Time taken to respond to telephone enquiries, staff treating as a valuable customer.

Method of Data collection The sources of the data for the study were primary data. The questionnaire was prepared and administered to collect the relevant primary data. The data collection method was based on Questionnaire and Observation.

Method of analysis of data

Data collected through questionnaires is analyzed using graphs and charts

CHAPTER III ANALYSIS &

INTERPRETATION

1. % Clients with different age group:

20-30 117

31-40 181

ABOVE 40 2

Out of the total clients visited, majority i.e., 60% belongs to 31 years to 40 years age group, followed by 20 years to 30 years age group which comprises of 39% of the clients visited, and the leftover clients i.e., 1% (the least %) belongs to above 40 years age group.

2. % Clients with different occupation:

Professional 220

Businessman 62

Retired 0

Student 4

others 14

Out of the total clients, majority i.e., 73% are professional. Followed by businessman, which comprises of 21%. 1% are students, 4% belongs to other category (like housewife, etc), and retired is 0 i.e., nil.

3. % Customer connected to India Infoline since:

Less then 6 months 26

6 months - 1 Year 60

1-2 year 187

More then 2 year 27

The maximum number of clients i.e., 62% of the total clients are connected to India Infoline since 1-2 years, followed by 20% connected since 6 months to 1 year and the least 9% in more than 2 years as well as less than 6 months.

4. % Customer gathering information/ awareness about trading from different sources:

TV 58

Newspaper 15

Friend 43

Financial Advisor 37

Others 147

Out of the total clients, majority i.e., 49% of clients gather information about trading from the sources like mail, some web-sites (moneycontrol.com, bloomberg, dnaindia.com),etc. Followed by 19% which gather information from television,15% from friends, 12% from financial advisor, and the rest 5% from newspaper.

5. Main objectives of investment in Equities and Mutual funds of % customer:

Risk 0

Return 263

Tax Benefit 0

Capital Appreciation 18

Safety 0

Liquidity 19

Other 0

Maximum customers invest in Equities and Mutual funds for getting a good return, which is obvious from the chart shown above.Here, we can see that mojority of the clients visited i.e., 88% invest in equities for good return.6% for liquidity and rest 6% for capital appreciation.

6. Number of clients giving more weightage to the tips coming from:

Relationship manager 66 TV 49

India Infoline TT Advance tips 152 Others 33

Out of the total number of clients visited, maximum i.e., 51% give more weightage to the tips coming from India Infoline TT Advance tips. 22% of the client goes with the tips coming from Relationship Manager, 16% goes with the tips coming from television, and rest 11% goes with the tips coming from some other sources.

7. Customer Satisfaction level on Flexibility

Criteria Highly Dissatisfied Dissatisfied Neutral Satisfied Highly satisfied

Response 2 32 60 104 2

Percentage 1 16 30 52 1

Here, we can see that maximum number of clients i.e., 52% of the clients are satisfied with the service provided by India Infoline regarding flexibility, while in the otherhand we can see that 16% of the clients are dissatisfied by the service provided.

8. Customer Satisfaction level on Customer support

Criteria Highly Dissatisfied Dissatisfied Neutral Satisfied Highly satisfied

Response 2 32 54 106 6

Percentage 1 16 27 53 3

Here, we can see that maximum number of clients i.e., 53% of the clients are satisfied with the service provided by India Infoline regarding customer support, while in the otherhand we can see that 16% of the clients are dissatisfied with the service provided.

9.

Customer Satisfaction level on Speed of service

Criteria Highly Dissatisfied Dissatisfied Neutral Satisfied Highly satisfied

Response 4 40 46 102 8

Percentage 2 20 23 51 4

Here, we can see that maximum number of clients i.e., 51% of the clients are satisfied with the service provided by India Infoline regarding speed of service, while in the otherhand we can see that 20% of the clients are dissatisfied with the service provided.

10. Customer Satisfaction level on a clarity of information Criteria Highly Dissatisfied Dissatisfied Neutral Satisfied Highly satisfied Response 6 42 64 84 4 Percentage 3 21 32 42 2

Here, we can see that maximum number of clients i.e., 125 clients are satisfied with the service provided by India Infoline regarding clearity of information, while in the othernhand we can see that 64 clients are dissatisfied with the service provided.

11. Customer Satisfaction level on time taken to respond to telephone enquiries Criteria Highly Dissatisfied Dissatisfied Neutral Satisfied Highly satisfied Response 2 32 60 102 4 Percentage 1 16 30 51 2

Here, we can see that maximum number of clients i.e., 153 clients are satisfied with the service provided by India Infoline regarding respond to telephone, while in the otherhand only 49 clients are dissatisfied with the service provided.

12. Customer Satisfactil on levon staff treating as a valuable customer Criteria Highly Dissatisfied Dissatisfied Neutral Satisfied Highly satisfied Response 0 30 60 108 2 Percentage 0 15 30 54 1

Here, we can see that maximum number of clients i.e., 162 clients are satisfied with the service provided by the staff (as a valuable customer) by India Infoline, while in the otherhand we can see that 46 clients are dissatisfied with the service provided by the staff people.

13. Customer Satisfaction level on Trade confirmation

Criteria Highly Dissatisfied Dissatisfied Neutral Satisfied Highly satisfied

Response 0 28 46 122 4

Percentage 0 14 23 61 2

Here, we can see that maximum number of clients i.e., 61% of the clients are satisfied with the service provided by India Infoline regarding trade confirmation, while in the otherhand we can see that 14% of the clients are dissatisfied with the service provided.

14. Customer Satisfaction level

Criteria Highly Dissatisfied Dissatisfied Neutral Satisfied Highly satisfied

Response 0 18 58 124 0

Percentage 0 9 29 62 0

Here, we can see that maximum number of clients i.e., 186 clients are satisfied with the service provided by India Infoline regarding brokerage charged, while in the otherhand only 26 clients are dissatisfied with the brokerage charged.

CHAPTER IV FINDINGS, LIMITATIOMNS, SUGGESTIONS & CONCLUSION

FINDINGS

There is low positive correlation between brokerage and overall satisfaction.

There is low positive correlation between tips and overall satisfaction.

There is a moderate positive correlation between customer support service and overall satisfaction.

There is low positive correlation between flexibility and overall satisfaction.

There is a moderate positive correlation between speed of service and overall satisfaction.

There is a moderate positive correlation between Clarity of information and overall satisfaction.

LIMITATIONS OF THE STUDY

As the data will be collected through questionnaire, there are chances of biased information provided by the respondent.

Heterogeneity among the respondents.

Inability to respond to the questionnaire due to lack of time.

The study is confined to the existing customers of INDIA INFOLINE LTD only.

SUGGESTIONS

The suggestion is the Small investors prefer most economical fee on trading and prefers negotiations therefore the company should offer services and fee structure keeping in mind such customers if they add significantly to bottom line.

Lack of communication and advisories happen when relationship manager moves out of the organization and this has to be checked so that the customer doesnt migrate to other brokerage companies.

CONCLUSION

The company should come up with innovative ways of service at their door steps this may be a costly affair but will surely give positive results in the long run.

The company should take the initiative of training the advisors about the trading from time to time which also makes the advisors connected to the company.

The company should focus on the advertising strategy and also the marketing of the product.

BIBLIOGRAPHY

Referred Books:

RESEARCH METHODOLOGY ( C.R.KOTHARI)

Websites:

http://www.indiainfoline.com

http://www.5paisa.com

http://www.moneycontrol.com

http://www.capitaline.com

Appendix:

A study on Customer satisfaction towards the services provided by India Infoline with special reference to Meerut zonal office

QUESTIONAIRE

Name: ..

Gender:

1. Age: a). Below 20 b). 21- 30 c). 31- 40 d). More then 50

2. Occupation: a). Businessman b). Student c). Professional d). Retired Person

e). Others (Please Specify)__________

3. Since how long you are connected to India Infoline since: a).Less than 6 Months c). 1 2 year b). 6 months 1 Year d). More than 2 year

4. From where you gather information/ awareness about trading from: a). T.V d). Financial Advisor b). Newspaper c) Friends

e) Others (Please specify) ______

5. What is the main objectives of investment in Equities and Mutual funds are: a). Risk d). Capital Appreciation b). Return e). Safety c). Tax benefit f). Liquidity

g). Others (please specify)________

7.

Which source you rely upon : (in %) a). Relationship manager _______ c). India Infoline TT Advance tips ________ b). T.V ________ d) Others (please specify) _______

8.Satisfaction level with India Infoline.

Particulars

Highly Dissatisfied

Dissatisfie d

Neither Satisfied Nor Dissatisfied

Satisfied

Highly Satisfied

Brokerage Trade Confirmation Flexibility (Fund transfer) 5paisa.com Customer Support Speed of Service / Product Delivered Clarity information advice provided Time respond taken to to of or

telephone enquiries Staff treating you as a valuable

customer Overall Satisfaction