CHAPTER 1

INTRODUCTION TO THE STUDY

1.1 INTRODUCTION TO THE STUDY

Organizational study involves careful study about how people inside the organization interact with one another and how they can be made better to communicate their concerns. Various methods are used in organizational studies and these include multiple regression, time series analysis, meta-analysis, and non-parametric statistics, to name a few. Basically it involves the study of individual as well as group interaction inside an organization. There are many factors that come into play when people interact with each other not just as individuals but as a team as well. So we can safely say that aim to understand these important factors and model on them. Students who have undertaken it to learn about the dynamics of contemporary organizations as they function in the current time. They gain insight into various management styles, various types of communication used within an organization (such as using old or conventional methods, new methods using internet and emails), work ethics, cultural diversity, types of technology used and also politics, because no organization can work in the complete isolation as they are living in a global village. Organizational studies traces it roots to the advent of scientific management which aroused in the 1890s. The height of the scientific management movement was highlighted by Taylorism. After the First World War got over, it began to focus on how human interaction and psychology affects organizations. The Second World War led to a rationalistic approach in understanding organizational study. Today, organizational studies have become highly important because people from different backgrounds have to interact with one another. In the current scenario people from diverse cultures, backgrounds and even educational levels have come together to form a team. In fact, it is not uncommon to see people with different cultural and ethnic backgrounds interact with one another and can help to better understand human interaction in such situations. Organizational studies are "the examination of how individuals construct organizational structures, processes, and practices and how these, in turn, shape social relations and create institutions that ultimately influence people. Organizational studies comprise different areas that deal with the different aspects of the organizations, many of the approaches are functionalist but critical research also provide alternative frame for understanding in the field. The methodology consists of data collection through interview, observation and company periodicals review. The data collected from different sources are classified, analyzed and interpreted. Based on which an organizational structure, its functions and various departments are identified. The various departmental functions are clearly identified and their processes & activities carried out are recorded. An in-depthanalysis is
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made me to understand the departmental process based on which a process chart is prepared. The analysis further formed the basis for identifying the departmental.

1.2 OBJECTIVE OF THE STUDY

Scope of study: This study is been conducted in SHARE KHAN SECURITIES LTD , and this study tells an overall view of organisation and functions carried out by different departments like finance, information technology, human resource and marketing.

Area of study: This study was undertaken at SHARE KHAN SECURITIES LTD , Chennai and the respondents were the Marketing Branch Manager, Departmental heads, and employees from different departments like finance, Human resource etc.

Database: Both primary and secondary research technique used to ensure that the foundation of the business intelligence and insight is accurate, current and reliable. To conduct this both primary and secondary data have been used.

Primary objectives To be in touch with the industrial and organisational environment. To understand the actual working conditions in the organisation.

Secondary objectives To analyse various elements in stock broking. To know the organisational structure. To study various departments in the organisation. To get familiarized with the different policies and procedures of the organisation.
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To know the strength and weakness of the company. To identify the future plans of Share khan securities ltd To study the various products of the company. To know how to handle various types of customers. To know various reasons for market fluctuations. To gain practical knowledge of the market. To have a practical experience of working in a reputed organization.

CHAPTER 2

INDUSTRY & ORGANIZATION PROFILE

2.1 INDIAN SECURITIES MARKET AN OVERVIEW

Stock exchanges to some extent play an important role as indicators, reflecting the performance of the countrys economic state of health. Stock market is a place where securities are bought and sold. It is exposed to a high degree of volatility; prices fluctuate within minutes and are determined by the demand and supply of stocks at a given time. Stock brokers are the ones who buy and sell securities on behalf of individuals and institutions for some commission. There are 22 stock exchanges in India, the first being the Bombay Stock Exchange (BSE), which began formal trading in 1875, making it one of the oldest in Asia. Over the last few years, there has been a rapid change in the Indian securities market, especially in the secondary market. Advanced technology and onlinebased transactions have modernized the stock exchanges. In terms of the number of companies listed and total market capitalization, the Indian equity market is considered large relative to the count rys stage of economic development. There have been significant reforms in the regulation of the securities market since 1992 in conjunction with overall economic and financial reforms. In 1992, the SEBI Act was enacted giving SEBI statutory status as an apex regulatory body. And a series of reforms was introduced to improve investor protection, automation of stock trading, integration of national markets, and efficiency of market operations. Before 1995, markets in India used open outcry, a trading process in which traders shouted and hand signalled from within a pit. One major policy initiated by SEBI from 1993 involved the shift of all exchanges to screenbased trading, motivated primarily by the need for greater transparency. The first exchange to be based on an open electronic limit order book was the National Stock Exchange (NSE), which started trading debt instruments in June 1994 and equity in November 1994. In March 1995, BSE shifted from open outcry to a limit order book market. Currently, 17 of Indias stock exchanges have adopted open electronic limit order. Transfer of resources from those with idle resources to others who have a productive need for them is perhaps most efficiently achieved through the securities markets. Stated formally, securities markets provide channels for reallocation of savings to investments and entrepreneurship and thereby decouple these two activities. As a result, the savers and investors are not constrained by their individual abilities, but by the economys abilities t o invest and save respectively, which inevitably enhances savings and investment in the economy. Savings are linked to investments by a variety of intermediaries through a range of complex financial products called securities which is defined in the Securities Contracts (Regulation) Act, 1956.

Market segments The securities market has two interdependent and inseparable segments, the new issues and the stock market.

Primary market (new issues) The primary market provides the channel for sale of new securities. It provides opportunity to issuers of securities; government as well as corporate, to raise resources to meet their requirements of investment or discharge some obligation. They may issue the securities at face value, or at a discount or premium and these securities may take variety of forms such as equity, debt etc. They may issue the securities in domestic market or international market. The primary market issuance is done either through public issues or private placement. A public issue does not limit any entity in investing while in private placement, the issuance is done to select people. In terms of the Companies Act, 1956, an issue becomes public if it results in allotment to more than 50 persons. This means an issue resulting in allotment to less than 50 persons is private placement. There are two major types of issuers who issue securities. The corporate entities issue mainly debt and equity instruments (shares, debentures, etc.), while the governments (central and state governments) issue debt securities (dated securities, treasury bills). The price signals, which subsume all information about the issuer and his business including associated risk, generated in the secondary market, help the primary market in allocation of funds. The benefit of the company while issuing IPOs is that they can issue the shares without any interest and the benefit of the public while purchasing the IPOs is that they are entitled to a part of the profit gained by the company, the dividends, the bonus shares etc.

Secondary market (stock market) Secondary market refers to a market where securities are traded after being initially offered to the public in the primary market or listed on the Stock Exchange. Majority of the trading is done in the secondary market. Secondary market comprises of equity markets and the debt markets. It enables participants who hold securities to adjust their holdings in response to changes in their assessment of risk and return. They also sell securities for cash to meet their liquidity needs. The secondary market has further two components, namely the over-thecounter (OTC) market and the exchange-traded market. OTC is different from the market place provided by the Over The Counter Exchange of India Limited. OTC markets are essentially informal markets where trades are negotiated. Most of the trades in government securities are in the OTC market. All the spot trades where securities are traded for immediate delivery and payment take place in the OTC market. The exchanges do not provide facility for spot trades in a strict sense. Closest to spot market is the cash market where settlement takes place after some time.
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A variant of secondary market is the forward market, where securities are traded for future delivery and payment. The versions of forward in formal market are futures and options. In futures market, standardised securities are traded for future delivery and settlement. These futures can be on a basket of securities like an index or an individual security. In case of options, securities are traded for conditional future delivery. There are two types of optionsa put option permits the owner to sell a security to the writer of options at a predetermined price while a call option permits the owner to purchase a security from the writer of the option at a predetermined price. These options can also be on individual stocks or basket of stocks like index. NSE and the Bombay Stock Exchange, (BSE) provides trading of derivatives of securities.

Participants The securities market has essentially three categories of participants - the issuer of the securities, the investors in the securities, and the intermediaries. The issuers are the borrowers or deficit savers, who issue securities to raise funds. The investors, who are surplus savers, deploy their savings by subscribing to these securities. The intermediaries are the agents who match the needs of the users and the suppliers of funds for a commission. These intermediaries ,function to help both the issuers and the investors to achieve their respective goals. There are a large variety and number of intermediaries providing various services in the Indian securities market. This process of mobilizing the resources is carried out under the supervision and overview of the regulators. The regulators develop fair market practices and regulate the conduct of the issuers of securities and the intermediaries. They are also in charge of protecting the Interests of the investors. The regulator ensures a high service standard from the intermediaries, as well as the supply of quality securities and non-manipulated demand for them in the market.

Regulatory Framework The absence of conditions for perfect competition in the securities market makes the role of the regulator extremely important. The regulator ensures that the market participants behave in a certain manner so that the securities markets continue to be a major source of finance for the corporate sector and the government while protecting the interests of investors. The responsibility for regulating the securities market is shared by the Department of Economic Affairs (DEA), the Ministry of Company Affairs (MCA), the Reserve Bank of India (RBI), and SEBI. The orders of SEBI under the securities laws are appealable before a Securities Appellate Tribunal (SAT). The rules under the securities laws are framed by the government and the regulations by SEBI. All these rules are administered by SEBI. The powers under the Companies Act relating to the issue and transfer of securities and the non-payment of dividend are administered by SEBI in the case of listed public
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companies and public companies proposing to get their securities listed. The five main Acts governing the securities markets are : (a) the SEBI Act, 1992; (b) the Companies Act, 1956, which sets the code of conduct for the corporate sector in relation to issuance, allotment, and transfer of securities, and disclosures to be made in public issues; (c) the Securities Contracts (Regulation) Act, 1956, which provides for the regulation of transactions in securities through control over stock exchanges; (d) the Depositories Act, 1996 which provides for electronic maintenance and transfer of ownership of de-mat (dematerialized) shares; and (e) the Prevention of Money Laundering Act, 2002.

Role of NSE in Securities Market The National Stock Exchange of India (NSE) was recognized as a stock exchange in April 1993. NSE was set up with the objectives of (a) establishing a nationwide trading facility for all types of securities; (b) ensuring equal access to all investors across the country through an appropriate communication network; (c) providing a fair, efficient, and transparent securities market using an electronic trading system, (d) enabling shorter settlement cycles and book entry settlements; and (e) meeting the international benchmarks and standards. Within a short span of time, these objectives have been realized, and the Exchange has played a leading role in transforming the Indian Capital Market to its present form. NSE has set up an infrastructure that serves as a role model for the securities industry in terms of trading systems, and clearing and settlement practices and procedures. The standards set by NSE in terms of market practices, products, technology, and service standards have become industry benchmarks, and are being replicated by other market participants. It provides a screen-based automated trading system with a high degree of transparency and equal access to investors irrespective of geographical location. The high level of information dissemination through its online system has helped in integrating retail investors on a national basis. Role of BSE in Securities Market The Stock Exchange, Mumbai, popularly known as "BSE" was established in 1875 as "The Native Share and Stock Brokers Association". It is the oldest one in Asia, even older than the Tokyo Stock Exchange, which was established in 1878. It is a voluntary non-profit making Association of Persons (AOP) and is currently
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engaged in the process of converting itself into demutualised and corporate entity. It has evolved over the years into its present status as the premier Stock Exchange in the country. It is the first Stock Exchange in the Country to have obtained permanent recognition in 1956 from the Govt. of India under the Securities Contracts (Regulation) Act, 1956. The Exchange, while providing an efficient and transparent market for trading in securities, debt and derivatives upholds the interests of the investors and ensures redressal of their grievances whether against the companies or its own member brokers. It also strives to educate and enlighten the investors by conducting investor Education program and making available to them necessary informative inputs. A Governing Board having 20 directors is the apex body, which decides the policies and regulates the affairs of the Exchange. The Governing Board consists of 9 elected directors, who are from the broking community (one third of them retire ever year by rotation), three SEBI nominees, six public representatives and an Executive Director & Chief Executive Officer and a Chief Operating Officer.

Major Players in the Market

1. S S KANTILAL ISHWARLAL SECURITIES PVT LTD. (www.sharekhan.com) 2. ICICI WEB TRADE LTD. (www.icicidirect.com) 3. 5 PAISA.COM (www.5paisa.com) 4. KOTAK SECURITIES LTD. (www.kotakstreet.com) 5. INDIABULLS (www.indiabulls.com) 6. MOTILAL OSWAL SECURITIES LTD. 7. HDFC SECURITIES LTD. (www.hdfcsec.com) 8. UTI SECURITIES LTD. 9. IDBI CAPITAL MARKET SERIVICES LTD. 10.REFCO SIFY SECURITIES PVT LTD.

Buyers

There are various types of investors who trade through stock broking houses like SSKI, which includes investors like small investors, medium net worth investors, business partners, institutional investors and mutual fund companies. The bargaining power of stock broking houses depends on how big the investor is.
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The bargaining power of stock broking houses is high in case of small investors & HUF. The bargaining power is moderate in case of HNI (High New Worth Investors)/ MNIs (Medium Net Worth Investors) and business partners. In case of mutual fund companies and institutional investors bargaining power is less. There is competitive buzz in stock broking industry; competitors are offering low brokerage and best services with added feature. So switching cost is pretty much less. Therefore the buyer can easily switch over to competitors product

Transaction cycle

Decision to trade

Placing order

Funds or securities

Trade excecution

Settlement of trades

Clearing of trades

FIG 2. A
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A person holding assets (Securities/Funds), either to meet his liquidity needs or to reshuffle his holdings in response to changes in his perception about risk and return of the assets, decides to buy or sell the securities. He selects a broker and instructs him to place buy/sell order on an exchange. The order is converted to a trade as soon as it finds a matching sell/buy order. At the end of the trade cycle, the trades are netted to determine the obligations of the trading members securities/funds as per settlement cycle. Buyer/seller delivers funds/ securities and receives securities/funds and acquires ownership of the securities.

2.2 S. S. KANTILAL ISHWARLAL SECURITIES PVT. LTD

Sharekhan, Indias leading stock broker is the retail arm of SSKI [SHANTILAL SHEWANTILAL KANTILAL ISWARLAL LIMITED] and offers depository services and trade execution facilities for equities, derivatives and commodities backed with investment advice tempered by decades of broking experience. Sharekhan was established by Morakhia family in 1999-2000 and continues to remain the largest shareholder. SSKI which was established in 1930 is the parent company of Sharekhan ltd. Share khan is a part of the SSKI group, an Indian financial services power house with strong presence in Retail equities, Institutional equities, Investment banking. With a legacy of more than 80 years in the stock markets, the SSKI group ventured into institutional broking and corporate finance over a decade ago. Presently SSKI is one of the leading players in institutional broking and corporate finance activities. Sharekhan offers its customers a wide range of equity related services including trade execution on BSE, NSE, Derivatives ,Depository services, online trading, Investment advice, Commodities, etc. Share khan Ltd. is a brokerage firm which was established on 8th February 2000. It is first brokerage Company to go online and the online trading and investment site www.Sharekhan.com - was also launched on Feb 8, 2000. This site gives access to superior content and transaction facility to retail customers across the country. Known for its investor friendly language and high quality research, the content-rich and research oriented portal has stood out among its contemporaries because of its steadfast dedication to offering customers best-of-breed technology and superior market information. SSKI Corporate Finance Private Limited (SSKI) is a leading India-based investment bank with strong research-driven focus. Their team members are widely respected for their commitment to transactions and their specialized knowledge in their areas of strength. The team has completed over US$5 billion worth of deals in the last 5 years - making it among the most significant players raising equity in the Indian market. SSKI, a veteran equities solutions company has over 8 decades of experience in the Indian stock markets They have 14 branches, 400 franchises, 466 shops in 210 cities. The daily dealing all over India is 400 crore. Sharekhan consists of almost 4000 employees and 100000 trading customers. Share Khans trading services are designed to offer an easy, hassle free trading experience, whether trading is done daily or
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occasionally. The customer will be entitled to a host of value added services, in the investment process depending on his investing style and frequency. And offers a suite of products and services, providing the customer with a multi-channel access to the stock markets. It gives advice based on extensive research to its customers and provides them with relevant and updated information to help him make informed about his investment decisions. Sharekhan Depository Services offers de-mat services to individual and corporate investors. It has a team of professionals and the latest technological expertise dedicated exclusively to their de-mat department. A customer can avail De-mat \ Re-mat, Repurchase, Pledge, Transmission facilities at any of the Share khan branches and business partners outlets.

Profile of the company

Name of the company Known as Year of establishment Headquarters

: : : :

Shantilal Shewantilal Kantilal Iswarlal limited Share khan Ltd 1925 ShareKhan SSKIA-206 Phoenix House Phoenix Mills Compound Lower Parel Mumbai - Maharashtra, INDIA- 400013

Nature of Business Services Number of employees Tag line

: : : :

Service Provider Depositary services, online services and Technical Research Over 4000 Your guide to the Financial Jungle

SSKI group companies

SSKI Investor Services Ltd (Sharekhan) S.S. Kantilal Ishwarlal Securities SSKI Corporate Finance Idream Productions
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Vision To empower the investor with quality advice and superior service to help him take better investment decisions. We believe that our growth depends on client satisfaction.

Mission To provide the best customer service and product innovation tuned to diverse needs of clientele Continuous up-gradation with changing technology, while maintaining human values. Respond to progressive globalization and achieving international standard. Efficiency and effectiveness built on ethical practices. Core value Customer satisfaction through Providing quality service effectively and efficiently Smile, it enhances your face value is a service quality stressed on periodic customer service Audits Maximization of stakeholder value Success through Teamwork, integrity and People

Quality policy Integrity Transparency Professionalism Information-product, news, operations Hassle free trading Enjoyable experience

Objectives 200000+ retail customers being serviced through centralized call centre / web solution 60 branches, semi branches servicing affluent/aggressive traders through highly skilled financial advisors 250 independent investment managers/franchisees servicing 50000 highly valued clients Strong advisory role through Fundamental & technical research
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New initiatives - Portfolio Management Services & Commodities trading. To ensure satisfaction through teamwork and professional management To provide good quality of services on a continuous basis to the satisfaction of clients. To extend effective guidance to brokers, to clearing house Corporation, companies and investor in E-Stock Trading. To eliminate paper work and bring in front of electronic stock market in India Dealing in mutual funds

Nature of business carried Sharekhan is a stock broking company. The company offers a complete range of pre trade, trade and post trade service on the BSE (Bombay stock exchange) and the NSE (National stock exchange).Whether the client comes in to the companys conventionally located offices and trades in a dedicated environment or issues instructions over the phone, the highly trained team and sophisticated equipment ensure smooth transactions and prompt service. The services provided are:

Investment Advisory service Facilitation services to Retail Investors, Corporate. Depository services

Investment options include: Online trading (Includes equity, derivatives) Commodities trading Mutual funds Portfolio management service

Operations: Institutional broking Investment Banking Retail Broking

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Hierarchy in Sharekhan

TRAINEES

SUPER TRAINEES

SALES EXCECUTIVES

CITY SALES MANAGER

AREA SALES MANAGER

ASSISTANT SALES MANAGER

ASSISTANT BRANCH MANAGER

BRANCH MANAGER

REGIONAL HEAD

COUNTRY HEAD

BUSINESS HEAD

CLUSTER HEAD

DIRECTOR

CEO

FIG 2. B

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Achievements Sharekhan, the retail broking arm of SSKI Group and one of the largest stock broking houses in the country, has won the prestigious Awaaz Consumer Vote Awards 2005 for the Most Preferred Stock Broking Brand in India, in the Investment Advisors category. This was Indias largest Customer Study initiated by CNBC Awaaz and conducted by AC Nielson covering 7000respondents, 21 products and services across 21 major cities. Rated among the top 20 wired companies along with Reliance , HLL and Infosys by Business Today. Sharekhans online trading and investment site www.sharekhan.com was launched in 2000. Sharekhans ground network includes over 250 centres across 123 cities in India and having around 120000 customers and an equal number of de-mat customers.

Employment conditions Share khan has employee strength of 4000 employees spread over in 14 branches, 400 franchises, and 466 share shops all over India. The employees are the nucleus of the organization.. Sharekhan focuses on building its organization in a manner that is admired and respected for its peoples policies.

Infrastructural facilities at Sharekhan Sharekhan outlets are designed to be places where retail investors can be in touch w i t h Investment opportunities in an atmosphere of convenience and comfort. The look and feel of the offices across India, projects a consistent brand image for the company. The features that enable a unique facility for retailing financial service include: Business Focus: The main focus is Customer - Customer service, Customer education, Customer support, Customer relations and last but not the least Customer acquisition. Strong Product Basket: Specific products cater to each customer segment. Training Sessions: Comprehensive 3 day training program & dedicated online platform for ongoing training requirements Multi-Channel Access:
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Sharekhan serves its customers better via multiple channels. Customized Retail Design: The office premises at all share shops have an invigorating look , synonymous with its corporate identity. Research-based Investment Advice: Access to all fundamental and technical research on a real time basis. Technology Infrastructure Support: Comprehensive and robust technological infrastructure to run an automated back-office. Pioneering Online Trading Systems: The customers can trade online, get news, research and access to special reports through the companys web portal www.sharekhan.com Support: Dedicated support for various aspects of business including Equity sales, Risk management, Business development and Operations

Area of operation of Sharekhan

The area of operations of Sharekhan is spread over two countries. They are: 1. INDIA 2. UAE

The services are available through a network of 466 Share shops spanning 170 major towns and cities in the country along with an international branch in Dubai (UAE) Growing retail network across 1120 franchisees 168 branches 325 cities

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SEVEN PS OF SHAREKHAN

Product

Product Variety Share khan offers 3 types of online trading accounts for its customers specially designed according to their volume in share trading. Those 3 varieties are: Classic- for retail investors Speed Trade: for high net worth investors with large and active equity portfolio who need to monitor and action swiftly Speed trade Plus- for high net worth investors dealing in derivative market.

Quality User friendly website.

Design The website of Share khan namely www.sharekhan.com has been specially designed to facilitate its users to buy and sell shares in an instant at anytime and from anywhere they like. The site is user friendly allowing even a layman to easily operate without any hassles. Features Share khans product comes with the following features: Trade execution in a fraction of a second. Single Screen Trading Terminal Customized Alerts based on Multiple Parameters. Back up Facility to place trades on Direct Phone Lines. Intra day charts, updated live, tick-by-tick. Instant Order\ Trade Confirmation in the same window Competitive Brokerage. Facility to customize any number of portfolios & watch lists. Facility to cancel all pending orders at one click. Facility to square off all transactions at one click. Index information; index chart, index stock information live.
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Market depth, i.e. Best 5 bids and offers, updated live for all scripts Live updated Order and Trade Book. Details of pending, executed and rejected orders. Online access to Customer Service. 128 - bit super safe encryption. Facility to place after market orders Online fund transfer facility from leading Banks Online intra-day technical calls. Exhaustive database of over 2000 companies Historical charts and technical analysis tools.

Brand Name The company as a whole in its offline business has named itself as SSKI Securities Pvt. Ltd . But in its online division which started in 1997, the company preferred to name itself as SHARE KHAN. The Brand Name SHARE KHAN suggests the business in which the company is dealing so that the consumer could

easily identify the product or service category.

Services Share khan offers its customers, depository services and trade execution facilities for equities, derivatives and commodities backed with investment advice tempered by decades of broking experience. The teams of its dedicated analysts are constantly at work to track performance and trends. Dial-n-trade is also an exclusive service available to all Sharekhan customers for trading in shares via the telephone. On dialing the toll free number 1600-22-7050 and on entering the customers TPIN number, the customer will be directed to a telebroker who will buy or sell shares for him.

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Price List Price SPEED TRADE PLUS 1500

CLASSIC ONE TIME REGISTRATION FEE MINIMUM BROKERAGE CHARGES QUATERLY 750

SPEED TRADE 1000

_ _

1000

1500

Brokerage Share khan in its online business charges brokerage as follows: In equity Market: On Trading: 0.1% On Delivery: 0.5%

In Derivative Market On Trading: 0.12% (Total brokerage) On Delivery: 0.1%

Service Tax 8% of Brokerage.

Turnover tax + Stamp duty 0.015% (Rs. 15 on every turnover of Rs. 100000)

Discounts For investors with High Net worth, there are slabs in brokerage rates.

Payment Period The transaction settlement date in the securities market is T+ 2 days i.e. the payment of the transaction taken place has to be made within two days of its occurrence.

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Credit terms Share khan allows its customers to trade up to 4 times i.e. by keeping 1/4th margin with them.

Promotion Online share trading is totally a new concept in Indian Market. Generally investor doesnt like to come out from the conventional way of share trading. Share khan has introduced this product and concept which is still new in the market. Therefore the company has undertaken extensive promotion campaign to create awareness about the product. Share khan adopts the following tools for promoting the product:

Advertising Company advertises its product through TV media on channels like CNBC, Print Media-in leading dailies and outdoors media. It advertises itself as an innovative Brand with a cartoon of tiger-called SHERU. Besides attractive and colourful brochures as well as posters are used giving full details about the product. Mails are sent to people logging on to sites like moneycontrol.com and rediff.com. Also, stalls are opened up now and then at places where prospective customers can be approached.

Sales Promotion The Company offers Rs.500 instead of Rs.750 for corporate accounts (more than 20 accounts). Also, it provides online trading accounts for just Rs.300 for IIM students.

Sales Force The Company has an aggressive sales force, which is given incentives, based on their sales. The sales force is given intensive training continuously.

Seminar The Company also arranges seminar in corporate world for creating awareness about the product. Recently, it had organized for a seminar in ONGC, IIM.

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Direct Marketing Company emphasizes more on direct marketing, as many people are still not aware of this new way of smart trading. For this, the company recruits and trains sales representatives so as to explain the product and solve customer queries related to the product. This is the most effective way to communicate the three-in-one concept which company offers. Telemarketing Another promotional tool company uses to boost up its sales is the telemarketing. For this, the company collects the database of the people belonging to different professional segments.

Place

Channels Share khan uses various channel alternatives to reach to its customers through Internet Tele Marketing Retail Share Shops Franchisee Owners Power Brokers Sales Force

Coverage Access of website from any part of the globe.

Locations Share khan has the largest chain of retail share shops in India. It has 466 share shops located in 210 cities all over India like Pune, Thane, Chennai, Kolkata, Bangalore, Luckhnow, Darjleeng, Kanpur, Baroda, Midnapore, Surat, Delhi, Ghaziabad, Hyderabad, Allahabad, etc.

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People

Employees Selection: Employees are selected on the basis of their experience and qualification as applicable to the job. Training: Intensive training is provided to the employees till a week once they join and even at times required after that. Motivation: The employees are motivated through incentives they are provided.

Research Team Share khan has a team of dedicated analysts who have years of working experience in the industries that they track, and a proven track record in using their knowledge of the investment science to deliver results.

Customers The customers is the heart of Share khan who are treated royally like the kings. The customer care, which comprises of highly trained executives, operates from 9:30 to 8:00 p.m.

Physical evidence

Locality of the office The branches are located at convenient locations and are easily accessible to the customers.

Office Environment The ambience within the office is what can make the customer feel comfortable in trading. The cordial and friendly atmosphere at office is a full time motivation for the employees.

Interiors and Infrastructure The office is well furnished and has 24 computer terminals on which tick-by-tick price movements of the securities are displayed.

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Process

In this service organization, the ways in which the customers receive delivery of the service constitutes the process. Here, the process involves adding value or utility so that the customers get full satisfaction for the money spent by them. Here the process begins from the step when customer wants to open e-invest account and ends when his account is actually activated. All Indian residents and NRI are eligible to avail this service. Customers can open a Share khan e-invest account by filling a single Application form. This form includes 9 agreements like:

1. Main form with customer details 2. Agreement between Share khan and client in respect of the ONLINE INVESTMENT SUPPORT service offered. 3. Agreement between the Depository Participant and the client for providing the transaction statement through Internet. 4. Irrevocable power of attorney 5. Agreement between the DP and the person seeking to open an account with the DP. 6. Maintenance of clients account on a running account bases by SSKI. 7. Agreement giving the right of lien on the credit balances of client in NSE trading. 8. Agreement giving the right of lien on the credit balances of client in BSE trading. 9. Risk disclosure document (cash segment)

SHAREKHANS STOCK CLUSTER

We categorize all the scrips that are under coverage into six clusters. Each cluster r epresents a certain profile in terms of business fundamentals as well as the kind of returns you can expect over a certain time horizons and return objectives best.

Evergreen Dominant players with strong brands, robust management credentials, supernormal shareholder returns. Will steadily compound 18-20% per year for next five to ten years.

Apple green

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Potentially steady compounders, but five to ten years graph bit unclear. Could gallop at 25-30 per year over the next two to three years.

Emerging Star Young companies likely to rule chosen niches. Even better, the niches could balloon into full-blow markets. Potentially ten-baggers if youre patient.

Ugly Duckling Trading below fair value or at huge discount to peer group. But somethings cooking. Could double in two to three years time. Vultures Pick Companies with valuable assets at throwaway prices. Buy & await predators. Startlingly high returns possible.

Cannonball Seasons favourites. Typically fast gainers in rising markets , could return 30-50% within six months. Get in, cash in and get out.

COMPETITORS OF SHARE KHAN

1. India Bulls 2. Motilal Oswal 3. Religare 4. Kotak Securities 5. ICICI Direct 6. Anand Rathi 7. India Infoline 8. Reliance Money 9. Angel Broking 10. 5 paisa.com

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India bulls India bulls is India's leading retail financial services company with 77 locations spread across 64 cities. Its size and strong balance sheet allows providing varied products and services at very attractive prices, our over 750 Client Relationship Managers are dedicated to serving your unique needs. India bulls is lead by a highly regarded management team that has invested crores of rupees into a world class Infrastructure that provides real-time service & 24/7 access to all information and products. The India bulls Professional Network offers real-time prices, detailed data and news, intelligent analytics, and electronic trading capabilities, right at your finger-tips. This powerful technology is complemented by our knowledgeable and customer focused Relationship Managers. India bulls offers a full range of financial services and products ranging from Equities, Derivatives, De-mat services and Insurance to enhance wealth and to achieve the financial goals. Motilal oswal securities ltd . (Most):

One of the top-3 stock-broking houses in India, with a dominant position in both institutional and retail broking, MOSt is amongst the best-capitalized firms in the broking industry in terms of net worth. MOSt was founded in 1987 as a small sub-broking unit, with just two people running the show. Focus on customer-first attitude, ethical and transparent business practices, respect for professionalism, research-based value investing and implementation of cutting-edge technology have enabled it to blossom into a thousand-member team. The institutional business unit has relationships with several leading foreign institutional investors (FIIs) in the US, UK, Hong Kong and Singapore. In a recent media report MOSt was rated as one of the top-10 brokers in terms of business transacted for FIIs. The retail business unit provides equity investment solutions to more than 50,000 investors through 270 outlets spanning 150 cities and 22 states. MOSt provides Advice-Based Broking, Portfolio Management Services (PMS), E-Broking Services, Depository Services, Commodities Trading, and IPO and Mutual Fund Investment Advisory Services. Its Value PMS Scheme gave a 160% post-tax return for the year ended March 2004 In Asia Money Brokers Poll 2003 MOSt has been rated as the Best Domestic Research House- Mega Funds ,while in 2000 and 2002 it has been rated as the Best Domestic Equity Research House and Second best amongst Indian Brokerage firms respectively.

Kotak securities limited (kotakstreet.com) Kotak Securities Ltd., a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25% - one of the worlds leading investment banks and brokerage firms) is Indias leading stock broking house with a market share of 5 6 %. Kotak Securities Ltd. has been the largest in IPO distribution - It was ranked number One in 2003-04 as Book Running Lead Managers in public equity offerings by PRIME Database. It has also won the Best Equity House Award from Finance Asia - April 2004. Kotak Securities Ltd is
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also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the company for executing the transactions and the depository services for settling them. The company has 42 branches servicing around 1, 00,000 customers. Kotakstreet.com the online division of Kotak Securities Limited offers Internet Broking services and also online IPO and Mutual Fund Investments. Kotak Securities Limited manages assets over 1700 crores under Portfolio Management Services (PMS) which is mainly to the high end of the market. Kotak Securities Limited has newly launched Kotak Infinity as a distinct discretionary Portfolio Management Service which looks into the middle end of the market.

ICICI web trade ltd . (icicidirect.com): ICICIdirect.com was the first entrant into e-broking. ICICdirect.com provides the 3-in-1 to the users which ties in their saving bank account and their Demat account to their brokerage account electronically. This integration ensures that money is transferred to/from their bank account and the shares are transferred from/to their De-mat account automatically without writing any cheques or transfer instructions while carrying out their trades in shares. ICICIdirect.com has the option of trading in shares in cash, margin or spot segments. An investor can also invest in 14 Mutual Funds (Prudential ICICI MF, Franklin Templeton India MF, Alliance Capital MF, JM MF, Birla Sun Life MF, Sundaram MF, IL&FS MF, Principal MF, HDFC MF, Standard Chartered MF, Reliance Capital MF, Kotak Mahindra MF, TATA MF and DSP MERRILL LYNCH MF) through their trading account.

5 Paisa . com 5paisa is the trade name of India Infoline Securities Private Limited (5paisa), member of National Stock Exchange and The Stock Exchange, Mumbai. 5paisa is a wholly owned subsidiary of India Infoline Ltd, Indias leading and most popular finance and investment portal. 5paisa has emerged as one of leading players in ebroking space in India. The companys brokerage is one of the lowest in the industry. It also provides the research on commodities. Investors can benefit from its analysis and advice available at the click of the mouse. For those who prefer to trade the traditional way, India Infoline investor points are available across the country. India Infoline was founded by a group of professionals in 1995. Its institutional investors include Intel Capital, one of the leading technology companies in the world promoted by the UK government, ICICI, TDA and Reeshanar. The company offers a slew of products such as stock and derivatives broking, commodities broking and mutual funds

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2.3 PRODUCTS AND SERVICES OF SHARE KHAN COMPANY PVT LTD

PRODUCTS

ONLINE

OFFLINE

OTHER SERVICES

SPEED TRADE A/C

CLASSIC A/C

FIG 2. C

Online

A/C Opening Charges Rs.750(onetime Charge). For 1st Year De-mat A/C is Free ,On 2nd Year AMC charge is applicable. Type with 7 banks through which one can transfer or withdraw his fund online. Which are as follows

1. HDFC Bank 2. IDBI Bank 3. UTI Bank 4. OBC Bank 5. CITY Bank 6. Indusind Bank
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7. Union Bank of India

Anyone who have A/C either of above banks they can use this facility. Otherwise one has to make fund transfer or withdraw by cheque. This account enables you to buy and sell shares through our website. You get features like: Streaming quotes (using the applet based system) Multiple watch lists Integrated Banking, de-mat and digital contracts Instant credit and transfer Real-time portfolio tracking with price alert and, of course, the assurance of secure transactions.

Classic Account Enables to invest effortlessly Online trading account for investing in Equities and Derivatives via sharekhan.com Integration of : Online trading + Bank + De-mat account Instant cash transfer facility against purchase & sale of shares Make IPO booking Instant order and trade confirmations by e-mail Streaming Quotes Personalised Market Scan with ones own customized stock ticker! Single screen interface for cash and derivatives Ones own Portfolio Tracker! System Requirements Access to a computer which has at least the following configuration: Pentium 3 PC, Minimum 128 MB RAM Windows 2000/XP Internet Connection Internet Explorer 6.0 Java enabled in IE

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 Speed trade A/C Opening Charges Rs.1000/-(onetime Charge). Monthly charges Rs.500/-(But if Client give Brokerage of Rs.1500/-in a Quarter, then Rs.1500/-that was charged of a Quarter will be Reimbursed). For 1st Year Demat A/C is Free, On 2nd Year AMC charge is applicable. Type with 7 banks through which one can transfer or withdraw his fund online. Which are as follows

1. HDFC Bank 2. IDBI Bank 3. UTI Bank 4. OBC Bank 5. CITY Bank 6. Indusind Bank 7. Union Bank of India

Anyone who have A/C either of above banks they can use this facility. Otherwise one has to make fund transfer or withdraw by cheque. Features of Speed Trade Instant order Execution & Confirmation Single screen trading terminal Real-time streaming quotes, tic-by-tic charts Market summary (most traded scrip, highest value and lots of other relevant statistics) Hot keys similar to a brokers terminal Back-up facility to place trades on Direct Phone lines Single screen interface for cash and derivatives

System Requirements Access to a computer which has at least the following configuration: Pentium 3 PC Minimum 128 MB RAM Windows 2000/XP Dial-up Modem / Cable modem Internet Connection Account
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Internet Explorer 6.0 Java enabled in IE

Offline

Offline A/c is the A/c for the investors who are not familiar with the use of computer. The A/C opening charges Rs.500(One time) For 1Year De-mat A/C is Free On 2nd Year AMC charge is applicable.

Other Services 1. Dial-n-Trade 2. Depository Services 3. Commodity Trading 4. Derivative Trading 5. Mutual fund 6. Portfolio Management Services 7. Online IPO 8. Research Based Information Provided

1. Dial-n-trade Free with Share khan Classic Account, the Dial-n-Trade service enables to place orders for buying and selling shares through telephone. What has to be done is to dial any one of the two dedicated numbers (1-80022-7050 or 30307600), enter the given TPIN number (which is provided at the time of opening the account) and on authentication the call will be directed to a tele-broker who will buy and sell shares on behalf of the caller. Features of Dial-n-Trade TWO dedicated numbers for placing the orders with a cell phone or landline. Toll free number: 1-800-22-7050. For people with difficulty in accessing the toll-free number, 30307600 is also provided , which is charged at Rs. 1.50 per minute for STD calls. Automatic funds transfer with phone banking (for Citibank and HDFC bank customers) Simple and Secure Interactive Voice Response based system for authentication
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a Reliance number

No waiting time. Enter the TPIN to be transferred to our tele-brokers Trusted, professional advice provided by the tele-brokers Order placement facility after market hours

2. Depository Services Dematerialization and trading in the de-mat mode is the safer and faster alternative to the physical existence of securities. De-mat as a parallel solution offers freedom from delays, thefts, forgeries, settlement risks and paper work. This system works through depository participants (DPs) who offer de-mat services and hold the security in the electronic form for the investor, Share khan Depository services offers dematerialisation services to individual and corporate investors. Share khan has a team of professionals and the latest technological expertise dedicated exclusively to the de-mat department, apart from a national network of franchisee, making services quick, convenient and efficient. At Share khan, the commitment is to provide a complete de-mat solution which is simple, safe and secure. The services offered by Depository Conversion of physical holding into electronic holding (which is called "dematerialization" of securities) Custody of holdings in electronic form. Transfer the shares in the electronic form from one account to another. Facilitate pledge of the electronic securities. Electronic credits of new shares are given allotments such as public issues, bonus, rights etc. Conversion of securities") electronic holding into physical holding (which is called "dematerialization of

3. Commodity Trading Commodity trading is another form of investing, which is similar to stock trading. Instead of buying and selling shares of companies, an investor buys and sells commodities. Like stocks, commodities are traded on exchanges where buyers and sellers can work together to either get the products they need or to make a profit from the fluctuating prices. The different type of commodities that are traded are Gold, Silver, Copper, Mica, Maze etc.

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4. Derivative Trading A derivative security can be defined as a security whose value depends on the values of other underlying variables. Very often, the variables underlying the derivative securities are the prices of traded securities. A derivative is a financial instrument, which derives its value from some other financial price. This other financial price is called the underlying. The underlying asset can be equity, FOREX, commodity On any other asset. The terms derivative contract, derivative product, or derivative are used interchangeably. The most important derivatives are futures and options, and they are the most common and popular form of derivatives. Derivatives and futures are basically of 2 types: Forwards and Futures: A forward contract is the simplest mode of a derivative transaction. It is an agreement to buy or sell an asset (of a specified quantity) at a certain future time for a certain price. No cash is exchanged when the contract is entered into. Futures is an agreement between two parties to buy or sell an asset at a certain time in the future at a certain price through exchange traded contracts. A Future represents the right to buy or sell a standard quantity and quality of an asset or security at a specified date and price. Futures are similar to Forward Contracts, but are standardized and traded on an exchange, and are valued, or Marked to Market daily. Futures often are settled in cash or cash equivalents, rather than requiring physical delivery of the underlying asset. Parties to a Futures contract may buy or write Options on Futures. Options

An option is a contract, which gives the buyer the right, but not the obligation to buy or sell shares of the underlying security at a specific price on or before a specific date. There are two kinds of options: Call Options : A Call Option is an option to buy a stock at a specific price on or before a certain date. When you buy a Call option, the price you pay for it, called the option premium, secures your right to buy that certain stock at a specified price called the strike price. If you decide not to use the option to buy the stock, and you are not obligated to, your only cost is the option premium. Put Options: Put Options are options to sell a stock at a specific price on or before a certain date. In this way, Put options are like insurance policies. With a Put Option, you can "insure" a stock by fixing a selling price. If something happens which causes the stock price to fall, and thus, "damages" your asset, you can exercise your option and sell it at its "insured" price level. If the price of your stock goes up, and there is no" damage," then you do not need to use the insurance, and, once again, your only cost is the premium.
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5.

Mutual Fund A mutual fund is a pool of money that is invested according to a common investment objective by an

asset management company (AMC). The AMC offers to invest the money of hundreds of investors according to a certain objective - to keep money liquid or give a regular income or grow the money long term. Investors buy a scheme if it fits in with their investment goals, like getting a regular income now or letting the money accumulate over the long term. Investors pay a small fraction of their total funds to the AMC each year as investment management fees. There are three broad categories of funds in the Indian market - money market, debt and equity. A money market fund invests in short-term government debt paper and is good for parking money for the short term since the principal is safe, returns better than a bank deposit and liquidity high. Debt funds invest mainly in debt instruments like government securities, corporate and institutional debt paper. They are also called income funds since people buy them for their income needs. Equity funds invest in the stock market and suit long term investors who want capital appreciation. Commodity, property and gold funds are yet to come into India.

6.

Portfolio management system With the Share khan Team Managing Your Portfolio, you can be assured that your investments are in

safe hands! Share khan follows a multi-disciplined approach incorporating quantitative analysis, Fundamental analysis and technical analysis. This multi-pronged approach enables Share khan To provide risk-controlled returns. Choosing the combination of stocks most suitable based on the risk appetite of the client and monitoring their movements and discussing them with the clients at special events.

7. Online IPO: Online IPO (Initial Public Offering) is a new service started by Share khan for providing the application form of any companys issues of shares just like the TCS issue can be subscribed by filling an online form to reduce the paper work and the fund transfer facility is also provided to the clients for transferring the funds online. It is given on its web-site for helping the clients who are not able to collect the forms manually and the speed of filling and reducing the risk of misplacing of forms, not reaching in time, etc.

8.

Research based advice Every investors needs and goals are different. To meet these needs, Share khan provides a

comprehensive set of research reports, so that one can take the right investment decisions regardless of their investing preferences! The Research and Development at Share khan is done at its Head office Mumbai. The
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R&D department Head Mr. Hemang Jani forwards all the details regarding all stocks and scripts to all the branches through Internet. At the end of each trading day there is a Teleconference, through which MR. Hemang Jani talks with each Branch heads and discusses about each days closing position and shows their predictions about next days opening position. The quarries regarding stock positions and other relevant matter of the branch heads of each branch is being solved through teleconference.

Share khans product consists of a 4-in-1 concept

It integrates: D-mat Account Trading Account Bank Link Dial-N-Trade

For trading of shares, a D-mat A/C is needed. In this D-mat A/C one can keep his shares. Sharekhan also provides a Trading A/C through which a Sharekhan customer can directly transfer his funds from his savings account i.e. from bank account to his Sharekhan trading account without any paper work. He can buy and sell shares from the website and also view the market prices of the shares he trades on the terminal. After opening an account with Sharekhan, a customer will be given User id, Membership password and trading password, which will enable him to access his account and trade.

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CHAPTER 3

ANALYSIS OF ORGANISATION STRUCTURE AND FUNCTIONS

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3.1 ORGANIZATIONAL STRUCTURE WITH ORGANIZATIONAL CHART

MD & CFO

HR - GROUP HEAD

COO

HEAD IT

HEAD SALES BOARD OF DIRECTORS CEO

HEAD FINANCIAL PLANNING

PRODUCT HEAD EQUITY

PRODUCT HEAD COMMODITY

HEAD REALY BROKING

FIG 3. A
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3.2 DEPARTMENTAL ANALYSIS

Finance Department

MD & CFO

FINANCE

Sr. MANAGER CASH MANAGEMENT

WEALTH ACCOUNTS

INSURANCE ACCOUNTS

FINCORP ACCOUNTS

EQUITY ACCOUNTS

FIG 3. B

The finance department is one of the most important departments in a business, as it helps provide the financing and accounting information necessary to make various decisions. Efficient management of finance is crucial to an organisations success. This department has a role that encompasses certain duties. They are: Ensure costs are controlled Ensure adequate cash flow Establish and control profitability levels Prepare the budget
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Monitoring of funds Payments of bills and expenses Payment of wages and salary Management of financial risk

Functions of the department: Prepare the budget: It is the duty of the finance department to prepare the budget before providing any amount of money to any other departments within the company. As the main objective is to minimize the costs incurred.

Management of investments of the company: After making financial structure, finance department invests debenture holders and shareholders money in best projects for getting highest return on investment. For this finance department has to take investment decision. These investment decisions can be taken with the help of capital budgeting and investment analysis techniques.

Management of financial risk: Finance department takes many measures for managing the financial risks of company. For reducing loss of fund due to happening liquidity, solvency or financial disaster, finance department makes a good plan and also takes the help of debt collectors, insurance companies and other rating agencies for reducing financial risk.

Merge or Acquisition decisions For creating good brand in the market, financial department works with marketing department and both takes the steps of merge and acquisition action. Main aim of merge or acquisition is to reduce competition and spread on brand in the market. Finance department provides the money for takeover any other firm for estimating its long run return.

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Human Resource Department

HR GROUP HEAD

CORPORATE HR

REGIONAL HR

TRAINEE

FIG 3. C

Human resource management policies are vital for organizations who are serious about resolving personnel issues and finding HR solutions. HR solutions provide clients with professional human resource advice, human resource policy solutions and job description writing and evaluation services. Human Resource Management serves these key functions :

1. Hiring (Recruitment) 2. Compensation 3. Evaluation and Management (of Performance) 4. Promotions 5. Managing Relations 6. Planning

It is the responsibility of human resource managers to conduct these activities in an effective, legal, fair and consistent manner. The objective of Human Resource is to maximize the return on investment from the
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organizations human capital.Human Resource Management aims to improve the productive contribution of individuals.

Recruitment Share khan takes pride in appointing dynamic individuals who would share their vision and philosophy of 'providing the best value to all our customers. They believe that a professional, determined and focused approach towards the task at hand would enable all their aspirants to learn, groom and grow with them. They offer the perfect blend of stimulus in the form of an attractive compensation package and a stimulating work environment. Prospective candidates being appointed will serve a probationary period of three months. Staff appointed as trainees will be confirmed in the services, on completion of the required training period subject to his / her performance being satisfactory during the training period. Confirmation will be formalized only when a confirmation letter is issued to the trainee. If considered necessary, training period will be liable to be extended / terminated. During the probation period employee may terminate his/her employment, without stating any reasons, by giving one weeks notice of termination. Employees wanting to terminate their employment, at any time after successfully serving the probationary period, will have to give one months notice of termination, stating the reasons for termination in writing. The new joiner will be attending a two day Induction Programme in order to acquaint him/her with the share khan World (Its People, Culture, Business Processes, Products & services & New Initiatives)

Induction This program is for new members entering the organization. As new joiners, they find themselves thrown into a new environment and a confused state This is a very important program which helps the new member to get familiarized with them with share khans Vision, Business Philosophy, values, work culture, Products &Services, Important Business Processes, Policies & Procedures etc.

Training Share khan has undertaken a campaign to strengthen the staffs Customer Relationship Management skills across the organization, by planning highly interactive training sessions with the aim provide effective services to the clients. The programs will be conducted by the HR team with assistance from amount sourced Trainer & will be held at the in house training centre at Akruti. The training programs will have sessions like; Effective Customer Service Skills, Effective Business Communication, Telephone Etiquette, E-Mail Etiquette, Time Management, Interpersonal Skills, Effective Selling Skills, Handling Customer Complaints effectively. etc.

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They expect serious commitment and participation from the staff members for all the training initiatives. These people development programmes are an integral part of the performance appraisal process and those excelling in these program scan look forward to be suitably rewarded.

E-Learning They have initiated e-Learning for making training more accessible through videoconferences & through their Employee portal. e-learning also makes the transfer of knowledge more effective & consistent. Along with a host of other training programs, their Induction program too is to be delivered across Angelites through our elearning platform.

Development Do not ask what will happen if we train people and they leave? Instead ask what will happen if we do not train people and they stay on. - Zig Ziegler As they are steadily moving up in the Customer Value Chain by providing Advice Based Broking & becoming a Knowledge Leader in the Retail Broking Business, they encourage all share khan ns to upgrade their knowledge about the Dealing and advisory Process by obtaining NCFM Certifications. Apart from this they also have advanced training modules in core functional areas such as marketing /sales, corporate services, research & advisory etc. which help in creating a career path for share khan employees. They believe in offering careers & not jobs, hence they recruit fresh graduates /post-graduates. They develop their skills & competencies which helps them create a niche for themselves & achieve professional development

Performance appraisal system At share khan, increments will be based only on annual appraisals and will be strictly bench marked with the relative importance of the role and specific contributions of each employee. Annual Appraisals are reviewed twice in a year i.e. in July and December. New employees who have at least completed 9 months of service (6 months of confirmed service) by July or December will be eligible for an annual increment, depending on their performance & contribution to the company.

The Performance Management System Links employees performance to the Corporate Goals through well Defined Key Performance Areas (KPAs) & measurable targets, reviewed every quarter. Focuses on defining & rating all Managers on Key Competencies relevant for our business. Ensures an objective Performance Appraisal of employees through a meaningful dialogue with them about their performance and decide on measures to improve their contribution and rewards. Identifies key strengths of employees & builds a Training-cum-Career Development Plan for
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them. Provides opportunity for senior employees to make a Self Appraisal of their performance based on their KPAs and Targets, thereby minimizing areas of differences. All employees should adhere to the lunch timings. Employees carrying their own edibles should only consume it in the canteen and no other place. No edibles will be allowed at individual work stations, excepting offices where canteen facilities or a separate room for lunch is not provided. In such cases ensure that the tables are left clean and tidy after consumption of food.

Administrative Requirement Administrative requirement such as phone, stationery, computer etc. would be taken care of by the Admin Department before hand, but in case of additional requirement for stationery / computer hardware the employees can send their requirement through a Requisition Form to the Admin Department after getting it approved from their department head.

Smoke Free Office : Share khan encourages healthy atmosphere for employees and smoking is strictly prohibited in all areas inside the office premises, including toilets, pantry, corridors, conference rooms etc .Similarly consumption of tobacco, alcoholic beverages or any other intoxicants is strictly prohibited on the premises of the Company. Visitors on the premises are also required to observe this rule and their hosts will ensure compliance.

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Operations Department

COO

HEAD OPERATIONS

BILLING

CRD

KYC (know your customer)

DP (depository participant)

CUSTOMARE CARE

FIG 3. D

The Operation function acts as a back bone of any share broking firm as the work which the personnel in back office has to perform is very crucial and important for the client as well as the firm. Any mistake from the personnel might become a liability for the firm, for e.g. if there is short delivery or pay in of clients share then for those shares auction takes place for which they have to pay the price for the same. Hence the back office function calls for the full concentration level of the personnel while doing his or her work.

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If the back office section detects any error it should draw the attention of the higher authority for the corrective action. Basically the Operation function includes responsibilities like transaction processing, settlement and other administration functions. So the key result activity in a share broking firm is the Operation function which operates through different department like CRD department, Delivery department, Accounts Department, Compliance department etc.

Departments:

1. Client registration Department (CRD) : In order to trade in the market the client has to fill up the agreement between the Client-Broker-Sub broker which is know as tripartite agreement and also know your client forms with necessary requirement attached to it, has to been send to CRD. In the mean while the client or sub broker has to feed the all information in masters and has to submit it in s/w which can viewed by the client broker and sub brokers end. After receiving the forms the employees in the CRD verifies it and checks with the master, and everything is matched, it gives instructions for the activation of the client to the surveillance department. And once it get activated CRD informs to client by putting the details in the ftp site which can be viewed at their end and can start trading. And if the details do not match or any particular attachment is not there then they inform through ftp site where the client and sub broker can view the current status. If any changes has to made like change in name or address or in brokerage they have to inform to CRD and they get it changed.

2. Delivery and Accounts Department: Basically the employees in the Delivery department have to look after the pay in and pay out of shares and Accounts department has to look after the pay in and pay out of funds.

a. Pay in of shares : Now a days pay in of the shares is done automatically which is known auto delivery out. NSE/BSE has the record of how much pay in of shares is due from the seller s broker. The bank in which the broker has his account, which is only for clearing member, the download of auto delivery out is taken through the NSE s site. Then the broker gets the print out of the delivery out report which shows whether NSDL/CDSL has received the pay in correctly or not. After confirming it from the bank the shares are sent from PSE account to NSE/BSE and confirm the pay in. Suppose if they are any short delivery of shares then NSE/BSE gives debit to the PSE
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account and similarly brokers debit it to sub brokers/clients account and then NSE/BSE can charge penalty for short pay in.

b. Pay out of shares and funds: When shares are purchased by the client then he gives money to sub broker which he delivers to pse and PSE sends to NSE/BSE as funds pay in against which NSE/BSE gives payout of funds and also gives delivery of shares to PSE and in return PSE gives the pay out of shares and payout of funds to the respective sub brokers at present T+2 basis, which means the day of trade plus two days within which the pay in and pay out of shares and funds should take place simultaneously. c. Intersettlement transaction : Intersettlement transaction are the necessary adjustments between the broker and the client for which client has to give request to the broker, for e.g. if the client has sold 20 share of reliance in settlement number 154, but if the client request to broker/ sub broker to adjust this pay in against the payout in settlement number 158 then it is called as inter settlement transaction.

d. Cash management and transfer of funds

Cash/ funds is the lifeblood of any organization so management of cash and transfer of funds form a very important aspect of the accounts department. This includes constant check and reconciliation of the bank account of the sub broker.

e. Preparation of Bank Reconciliation statement: Bank reconciliation state is very important as it helps the accountant to understand the balance of cash in the respective bank account and if there is any difference between in balance as per the sub brokers book and as per our books it has to be rectified immediately and should be informed immediately. There could be many reasons because of which there can be indifference in cash and bank balances and doing bank reconciliation statement can rectify these difference.

f..Preparing the cash statement: This statement gives the details of the transactions of previous days. It shows all the debits and credits given to each and every client, margin from the sub broker, net balances, net stock payment(normal/auction) and net stock receivable(normal/auction)

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g. Checking the Daily Funds Statements: Daily funds give the details of pay in and pay out of funds and also show whether it was normal or auction. This report has to be checked by the accountant and find whether there is any short delivery, if yes then get the short delivery report from the delivery department.

h. Undertake the work of recovery as well : The job of recovery is very is very difficult and this is one of the important functions of the accounts personnel for this he has to be very shrewd person and see that the job is done.

3. Compliance Department : Compliance has acquired a lot of importance these days as there are penalties if you fail to comply as per the requirement of NSE. For those purpose of compliance PSE has to submit a compliance report to nse s inspection and investigation department signed by the Managing director on the behalf of the company under the common seal. They have to inform to sub broker regarding the inspection or meetings which are duly held like AGM, has to prepare minutes of the meeting, has to inform any changes in rules, regulations and laws etc

4. Surveillance Department : As the securities transactions are prone to verity of manipulations, the NSE has instituted a strong surveillance mechanism to protect market integrity. It includesOnline monitoring - The National Securities Clearing Corporation Ltd. has in place an online monitoring and surveillance system whereby exposure of the member is monitored on a real time basis. A system of alerts has been built in so that both the member and NSCCL are altered as per pre-set levels (reaching 70, 85, 95, and 100 percent) when the members approach their allowable limits. The system enables the NSCCL to further check the micro details of members positions, if required, and take proactive action. The online surveillance mechanism also generates various alerts/ reports on any price/volume

movement of securities not in line with past trends/patterns. For this purpose, the NSE has put in place a system that generates alerts. Alerts are scrutinized and are taken up for follow up action. Open positions of securities are also analyzed. Besides this, rumours in the print media are tracked and, where they are sensitive, companies are contacted for verification. Replies are informed to the members and the public. Investigation and inspection As per regulatory requirements, a minimum of 10% of the active trading members are to be inspected every year to verify the level of compliance with various rules, byelaws and regulations of the NSE. Usually, inspection of more members than the regulatory requirement is under
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taken every year. The inspection randomly verifies if investor interests are being compromised in the conduct of business by members. The investigation is based on various alerts which require further analysis. If the analysis suggest any possible irregular activity which deviates from trends/patterns and concentration of trading at the NSE, at the member level, then a more detailed investigation is undertaken. If the detailed investigation establishes any irregular activity, then disciplinary action is initiated against the member. If the investigation suggests possible irregular activity across the exchange and/ or possible involvement of clients, then the same is informed to the SEBI.

5. Depository participant (DP) :

Once the trade is done on the stock exchange, client/sub broker gets reports of their net obligation. A clearing member (CM) has to open a clearing and settlement of trades with a DP. On opening of such account an account, the depositories allots a number identified as CM- Business partner- Id. The DP opens an account and the CM is allotted a number(Client ID). The delivery account consists of three parts :pool a/c; delivery a/c; receipt a/c, to facilitate easy book keeping. The role of the pool account in clearing of securities is two fold- a.) the selling client of the CM transfers securities from his client account to the pool a/c of the CM before pay in and b.) after payout, the CM transfers securities(to the extent of his obligation to the clearing operation) from the pool a/c to the delivery a/c , before pay in. On pay in day the depository flushes out the securities in the delivery a/c and transfers the same to CC automatically. On pay out day, the CC transfers securities to the pool a/c (to extent of the net receipt) through the receipt a/c. This account can be used to trace the details of settlementwise receipt into the clearing. On off market trades, these include trades where the seller and buyer deal directly with each other, without any intervention of the CC. The seller would give his DP a delivery instruction slip instructing him to debit his account with the transacted securities and the buyer would give his DP a receipt instruction slip to credit his account. Both the instructions would have t h e same execution date. The transaction would match at the depository, and credit and debit would be given by the DPs to their respective Client account.

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IT Department

HEAD IT

SOFTWARE

NETWORKING

FIG 3. E

The information technology department in an organization is responsible for the architecture, hardware, software and networking of computers in the company. IT professionals working in this department perform a number of duties to ensure that employees have full access to the computer systems.

Head IT: The Head IT or the IT director takes care of functions such as budgeting, strategic planning, management of the department, purchasing etc

Network Administrator: The network administrator manages the networks services and servers. Software : The software administrator takes care of the installation of all the softwares, platform and trading terminals in the company system.
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Functions of the department Programming: The IT department is responsible for creating new programs for the organization. Programmers who work for a business create programs that are specific to the needs of the organization. These programmers are not creating a product for commercial use or to be sold by the organization.

Company Website The information technology department creates and maintains the companys website. The webmaster and other professionals in the IT department design the layout of the site, write the programming code and test the site for its usability. A company website can be an informational site providing contact information for the public. The company website can also be a commercial site that sells products directly to consumers.

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Marketing Department

HEAD SALES

STATE HEAD

HEAD PARTNER CHANNEL

TM

ZONAL HEAD

BM

TM

DEALERS

RM

FIG 3. F

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Marketing strategies of Share khan Tele Calling: The company uses the tele calling/ phone calling to reach the customer, which are interested. This is the most important technique to save time and giving demo of the companies product through making call in order to know the customer interest towards the product. This is the strate with which one can motivate customer to go for the product and etc.

LMS: It is leads management system which means leads are generated by the customer who desires to purchase the product of the company. Company provide facility to the customer on online to fill the registration form through which the companys executives can provide more information to the customer.

Yellow Pages: Yellow pages are used to gather data for making calls so that customer who did not fine time and are unaware of the product can know about the product. Customers are given freedom to ask question related to the products this is the technique used to increase the awareness of the company.

Canopys: This is the most important technique used by Sharekhan securities to market its product in different areas of the city, company put their canopies and customer who are willing to know about the product come forward and provide best of their knowledge. Besides this companies executives ask customer to fill the questionnaire that tells the company about the levels of brand awareness. It also increases the product awareness because it is generally put at the crowdies places like near main markets, cinema s, hotels, ATM or etc where people come in good numbers.

Direct Marketing: Sharekhan executives reaches to the doors of the customer by fixing appointments with the interested customer, they describe the details of the product. Executive give demonstration of the products so that customer can understand better.

Advertising: Advertising is the most important tool of increasing awareness of the product and this is the most widely used technique by the company to tell about the new features and new lunch by giving briefing of the product. Sharekhan use banners, distribution of pamphlets, and advertisement in newspapers, magazines.
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References: Sharekhan strategy is to satisfy the customer in terms of their need by providing them timely services and knowledge about the trade in equities, mutual funds by giving tips for investment advises through e-mails or toll free calls for this purpose customers are provided relationship manager who give investment advice and also make transaction on their behalf on demand. Be satisfying customer executives ask their references that not only increase the awareness but also increase the good will of the company.

Competitiveness: The company is innovative and uses the latest technology to improve the product to fulfill the demands of the customers. Sharekhan make it easy for the customer to make online transaction of shares. The company is competitive in terms of the product price and facilities it offers to the customer.

Internet: Company provides detailed information about the products on Internet so that customer can know about the product easily and completely

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Tele calling

GREETINGS INTRODUCTION

CLOSE THE CALL

PURPOSE OF CALLING

FIX THE APPOINTMENT

NEED GENERATION

BROKERAGE EXPLAINATION

OBJECTION HANDLING

FIG 3. G

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CHAPTER 4

SWOT ANALYSIS

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SWOT ANALYSIS
A SWOT analysis focuses on the internal and external environments, examining strengths and weaknesses in the internal environment and opportunities and threats in the external environment.

Strengths:

Well-maintained infrastructure. Dedicated, Intelligent and Loyal staff. On-line trading products. Low brokerage and other charges with respect to Competitors. Best investment advice correct up to 70-90 % through dedicated research and reports. Wide product range to enable the clients to choose the best alternative. Positive image existing in the clients. First brokerage firm to go online. Technology Online fund transfer. Clients (average of 15,000 accounts per year) Free De-mat a/c opening. Low annual maintenance charge

Services: As a product Sharekhan is a extremely innovative product with very less cost. Services like online trading facility, institutional and domestic broking, customized research reports with almost 80% efficiency etc give Sharekhan an edge over its competitors. Sharekhan provides other support services that make retail investors more confident and assured with their trading. SMS alerts (allowing traders and investors to make the most of the available opportunities), Softer, intangible features like imagery, equity driving preference. Through efficient trading processes Investors can place their orders directly on the Internet, do all the information seeking and basically own the investing process.

Distribution Network Share khan with almost 250 branches spread across 123 cities beefed up by comprehensive online research, advice and transaction services. In near future expect to make 200000+ retail customers being serviced through centralized call centre / websolution,60 branches/semi branches servicing affluent/aggressive traders through highly skilled
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financial advisors, 250 independent investment managers/franchisees servicing 50000highly valued clients, strong advisory role through Fundamental & technical research and new initiatives are being made in Portfolio Management Services & Commodities trading.

Marketing Share khan is a product of SSKI, a veteran equities solutions company with over decades of experience in the Indian stock markets. Share khan does not claim expertise in too many things. Share khans expertise lies in stocks and that's what it talks about with authority. So when he says that investing in stocks should not be confused with trading in stocks or a portfoliobased strategy is better than betting on a single horse, it is something that is spoken with years of focused learning and experience in the stock markets.

Products Companys product line is quite flexible in the sense that there is a product for every kind of investors. Also all the products cover all the loopholes of all the products offered by the other competitors like low cost, user-friendly online trading services etc.

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Weaknesses:

Less awareness in the market. Time consuming process for account opening, resolving the problems of the customers, etc. Service quality is not maintained accordingly how they are promoted. High brokerage charges but now they have overcome this by a new prepaid scheme in which brokerage is reduced to half.

Customer Satisfaction As far as customer satisfaction goes Sharekhan has to tighten their socks. Many broking house catering to heavy investors or small segment of the market can afford to and does provide relationship managers for their customers, who can understand the trading needs of individual customers, and advise accordingly. However, a broking house like Sharekhan, which caters to the mass segment, is in no position to provide relationship managers for individual customers.

Branding Though the company has a efficient products but large part of investment

interested population does not know the company. The most basic expectation for a trader or investor when one begins trading is that one must get timely delivery of shares and proceeds from sale of shares. Also ones cash balances with the broker must be safe and secure. Though this confidence in the broker comes with time and experience, good and transparent practices also play a major role in imbibing confidence in traders.

Competition from banks Most of the banks due to good branding have the faith of the customers of their banking database. So they enjoy the liberty of huge database and customers find it more reliable to trade there rather than with a unknown broker. Also banks like HDFC Bank and ICICI Bank have the advantage of linking the trading accounts of their customers to saving accounts. This makes trading easier, and at the same time a trader withdraws exactly as much money from his account as is needed to complete the trade. Similarly sales proceeds are credited directly to saving account.

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Opportunities:

The external environment analysis may reveal certain new opportunities for profit and growth. Slope of stock market towards delivery based transaction. Large potential market for delivery and intra-day transactions. Open interest of the people to enter in stock market for investing. Attract the customers who are dissatisfied with other broker & DPs. An indirect opportunity generated by the market from its bullishness. Large untapped market in the Saurashtra region of Gujarat.

Ever-increasing market After the NSE brought the screen based trading system stock markets are now more secured which has attracted lot of retail investors and the demand is increasing day by day. This has resulted in improved liquidity and heavy volumes on transactions. Share khan is one of the early entrants here. As to how much it will roar and how swift it can swoop on the market, the future alone can answer such queries. Sharekhan has been a mega player and is known for being a mover of stocks. It is also known for putting big deals through and enjoys good networking with the FIIs. It has been dynamic enough to move with the times and capture the opportunities that the market throws up from time to time.

Improving Technology In country like India technology is always improving which gives the company a chance to keep on improving their product with time whereas for the small players like local brokers it will be difficult to keep the same pace as the changing technology. Also with SEBI lying down some strict guidelines small brokers are finding it harder to retain the customers with no research department and small capital. The traditional business model is highly dependent on a large network of sub-brokers, and many established players may not have systems (technology, customer service, etc.) capable of directly servicing so many retail customers.

Unfulfil0led needs of the customers With so many competitors offering their products in the market but no one is able to completely satisfy the customers. Some have the problem of lack of information or some were scared of volatility of the stock markets. Sharekhan has the opportunity to tap this unsatisfied set of customers and to make hold in the market. The Internet serves to break all barriers
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to information, as it offers an extremely hassle-free investing platform. And, Sharekhan hopes to fully utilize and capitalize on this platform. This original idea by Sharekhan itself was born out of the consumer's need for a more transparent, easy to understand and convenient option of investing in stocks. Education Level The education level in the country is improving year after year as far as technology grows. With that the understanding of the stock market is also increasing and a lot of retail investors are steeping into the market which shows increasing volumes, transactions and indices.

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Threats:

Decreasing rates of brokerage in the market. Increasing competition against other brokers & DPs Poor marketing activities for making the company known among the customers. A threat of losing clients for any kind of weakness of the company. Losing the untapped market with the entry of the competitors. Volatility of the share market. Competitors. A lot of new competitors are trying to enter the market in this bullish run to taste the flavour of this cherry. This is creating a lot of competition for large players like Share khan and it is creating little confusion in the minds of the customers about the services provided by the broker. Also many banking firms are entering into the market with huge investment. Competitors like ICICI, Kotak, HDFC, 5-paisa etc. are posing a lot of threat to the company.

Technology based business Online trading is totally based on the technology, which is quite complex. Typically, the technology solution has to start from the Internet front-end (or the screen that you see when you begin trading). Then it needs to get into the 'middle tier' of risk management systems that assess data from banks and depository participants (DP), calculate client risk at that point in time, and give the 'Go/No go' advice to the trade. So technology is a kind of threat because unless until it is working properly it is good but Internet is not that safe. Though a lot of cyber laws are being made but not yet executed.

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CHAPTER 5 SUGGESTIONS AND CONCLUSION

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5.1 LESSONS LEARNT

Importance of information technology in the field of stock broking. The terminal through which the brokers buy and sell shares is a software that completely depends on the internet. For Share khan, this terminal has been designed by the software company Spider. Buying and selling through internet is fast. As soon as the prices of the shares goes up or comes down then they can be sold or purchased instantly within seconds. Customer Relationship is very necessary for the company to retain the customers and clients through proper service and providing solutions to their queries regarding the share market. Good relation with the employees and the co-trainees should be maintained for the smooth working of the company. Learned about various products provided by Share khan and the various products used in the share market especially De-mat accounts and Mutual Funds. Learned how to take appointments. Learned how to approach the customers. Learned how to open and close the calls. Learned to manage time properly. Got the practical knowledge of the market. Had a practical experience of working in a reputed organization.

Advantages of share khan

Online trading is very user friendly and one doesn't need any software to access. They provide good quality of services like daily SMS alerts, mail alerts, stock recommendations etc. Share khan has ability to transfer funds from most banks. Unlike ICICI Direct, HDFC Sec, etc., so investor need not open an account with a particular bank as it can establish link with most modern banks.

Disadvantages of share khan

They charge minimum brokerage of 10 paisa per stock and will not let one trade below 20 rs. (If traded, the customer will lose majority of his money through brokerage). Lots of hidden rules and charges. They do not provide facility to book limit order trades during after-hours. Classic account holders cannot trade commodities. Cannot purchase mutual funds online.
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Lack of awareness of Sharekhan and stock market: Since the area is not known before it takes lot of time in convincing people to start investing in shares primarily in IPOs. Some people are comfortable with traditional system: As people are doing trading from their respective brokers, they are quite comfortable to trade via physical form of paper, they want to trade off line, i.e. through telephone etc. Lack of Techno Savvy people and poor internet penetration: Since most of the people are quite experienced and also they are not techno savvy. Also Internet penetration is poor in India. Some respondents are unwilling to talk Inaccurate Leads Sometimes leads are provided which have error in it, which varies from only 5-digit phone number to wrong phone number, due to this some clients have registered to know about their personal queries as they are not satisfied.

Misleading concepts: Some people think that as all the shares are in electronic form and they dont have any physical proof. Sometimes this leads to a great misconception of the entire process.

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5.2 SUGGESTIONS OF THE STUDY

Company has an advantage of reach tips for which Share khan is known for. The new customers are in need of relationship managers who will inform them about investment. Therefore it should be provided to al the customer on demand. This will lead to customer satisfaction and will hip to have more references from the satisfied customer. The company should revise the advertising strategy to increase its brand awareness. I suggest making advertisement on television so that maximum market can be targeted.

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5.3 FINDINGS
The strength, opportunities, weakness and threats of the company were found which helped me to know more about the stock broking industry with its new scope and trends. This company has a good market in both inside and outside the country. Their customer service is an important aspect that is always looked upon. Share khan securities are concentrating more on providing supporting services to its customers. This practice is the reason behind their triumph. The major findings are: Brand image and quality are only factors which contributed to the popularity of the products. The company is successful in giving awareness to the employees regarding their absence in the organization. Almost every employee has the opinion that the company provides a very good working environment for them. Majority of the respondents agreed that they havent faced any serious disciplinary action against absenteeism.

5.4 LIMITATIONS OF THE STUDY

As a beginner in doing research, it was not possible for me to adopt the proper method of data collection. Non-availability of financial data. Officers were at the peak of work and busy schedule of the department heads.

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5.5 CONCLUSION
It is a universal truth that no individual will be able to fulfil his needs and desire alone as he lacks strength, ability and resources. Therefore he seeks the cooperation of other people who share his same goals. This organization study carried out at Share khan Securities ltd, Annanagar, Chennai has helped me to gain an understanding of the structure and functioning of the organization. The Organisational study based on Share khan Securities ltd has given me a deep knowledge about the organisation and Stock broking industry. The study gives information about its products, services, organisation structure of the company, department functions and gives a good knowledge about the financial position of the company.

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BIBLIOGRAPHY

1. Websites www.nseindia.com www.inditrade.com www.sebi.gov www.moneycontrol.com www.sharekhan.org www.wikipedia.com

2. Company annual report 3. Circular by SEBI & NSE

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