A Summer Training Report On Training Undertaken at BONANZA PORTFOLIO LTD.

Titled
E-BROKING

Submitted By JAIPURIA INSTITUTE OF MANAGEMENT, JAIPUR Student of PGDM AJIT KUMAR ROY
Roll No.-P12007 YEAR 2012-2014

Submitted To
Ms. Abhilasha Choudhary Regional HR Mr. Bablu Tank Product Head (E-Broking)

Page1

DECLARATION

I AJIT KUMAR ROY Student of PGDM, JAIPURIA INSTITUTE OF MANAGEMENT, JAIPUR (RAJASTHAN) and do the work under summer internship project on E-Broking In Partial Fulfilment of PGDM Course in Bonanza portfolio Ltd. am my Original Work.

I hereby declare that all the above mentioned information are true and correct to the best of my knowledge.

Date..................... Place: ................... (Ajit Kumar Roy)

DatePage2

CERTIFICATE OF Summer training during April June, 2013 Certified that Mr. AJIT KUMAR ROY, student of POST GRADUATE DIPLOMA IN MANGEMENT has submitted his Marketing report on E-Broking after successfully completing of 45 days the summer practical training at BONANZA PORTFOLIO LTD. From April to June 2013, towards fulfilment of the syllabus requirement prescribed by JAIPURIA INSTITUTE OF MANAGEMENT,JAIPUR(RAJASTHAN).

Ms. Abhilasha Choudhary Regional HR

Mr. Bablu Tank Product Head (E-Broking)

Page3

ACKNOWLEDGEMENT
The path to success is never so smooth and simple to achieve. However, our learnings and motivation by our close ones and our mentors helps us to reach beyond our potential. My Project would remain partial without acknowledging people who encouraged me to achieve a milestone. I would like to thank Prof. S.P Garg, my college mentor and professor of Jaipuria Institute of Management, Jaipur, for their help and cooperation throughout my project.

I express my sincere thanks to my project guides faculty for guiding me right from the inception till the successful completion of the project. I sincerely acknowledge them for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support they had provided to me with all stages of this project. I would like express my heartily thankfulness to Ms. Abhilasha Choudhary (Regional HR of Bonanza portfolio Ltd.) I am also thankful to Mr. Bablu Tank Product Head (E-Broking), Mr. Deepak Gupta (Sales Manager) and Mr. Vishnu Choudhary (RM). He has given me valuable guidance and other information for the preparation of this report.

Finally I would like to thanks to all the staff of this company for extending their helping hands whenever I needed.

Ajit kumar Roy (Signature of student)

Page4

PREFACE
The PGDM curriculum is designed in such a way that student gather maximum knowledge and get practical exposure to the corporate world in minimum possible time. The summer training is necessary for the partial fulfilment of PGDM curriculum and it provides an opportunity to the students in understanding the industry with special emphasis on the development of skills in analyzing and interpreting practical problems through the application of management theories. The summer training had conducted on: E-BROKING In this training I have worked as management trainee to increase the number of clients of The company as well as promoting the product of the company and making people aware of the services given by BONANZA PORTFOLIO LTD. Quite frequently these days people talk of practical knowledge, both in academic institutions and outside. At each and every aspect in life we require some sort of theoretical and practical knowledge too. It means only classroom lecture may not be enough to get the proper knowledge either in the business field or social life.

Keeping all this in view, the present report has been written for the promotion the brand position of BONANZA PORTFOLIO LTD. in the highly competitive environment and to study the consumer behaviour by working as a promoter at Modern Trade Centres.

I am grateful to all those who have helped me in the successful completion of this report. I hope I have tried my level best in making this Report. If there is any error, in this Report I want to apologies for that.

Page5

INDEX
S.NO.
1. 2.

Page no.
CHAPTER-1 EXECUTIVE SUMMARY...............................................................7 INTRODUCTION OF STUDY.......................10 CHAPTER-2 COMPANY PROFILE..................27 CHAPTER-3 CORPORATE TIE UPS & PEOPLE NATURE TOWARDS BONANZA..........................................................................................44 COMPETITORS ANALYSIS..........................................................48 CHAPTER-4 DATA & INTERPRETATION ANALYSIS..56 CHAPTER-5

3.

4.

5.

6. 7.

SWOT ANALYSIS64 LIMITATIONS OF THE PROJECT..................................................66 CHAPTER-6 SUGGESTIONS...................................................................................68 FACT & FINDINGS............................................................................70 CONCLUSION.....................................................................................72 BIBLIOGRAPHY.....74

8. 9. 10. 11.

Page6

CAPTER-1 EXECUTIVE SUMMARY

Page7

EXECUTIVE SUMMARY
For management career, it is important to develop managerial skills. In order to achieve positive and concrete results, along with theoretical concepts, the exposure of real life situation existing in corporate world is very much needed. To fulfill this need, this practical training is required. The following report is a part-fulfilment of the work done at BONANZA PORTFOLIO
LTD. as a management trainee. BONANZA Group is a well diversified financial services group

having businesses in stocks and commodities. Their services include equities, derivatives, portfolio management and depository services. The report is based on the project titled;

The main objective of the study:

To find out which are the fields where the people invest. Analysis of the investment options are available Where is UNICON standing in the investment market and its awareness among investors? Satisfaction level of investors. To study investor perception and investment behaviour of capital market investors. To identify the problems faced by the while on market through Brokers. To study the investors satisfaction level for the various services provided by the broker relationship. To get a brief knowledge of trading system in securities. The good news is that E-MARKETING is inexpensive, fast, and easy to carry out. And it can be more effective than any other marketing channel available today if youre smart. Being smart is to be strategic. And for email marketing for financial services to be strategic means to be sure you have everything in place so that your email message is welcome.

Page8

Data Analysis
Primary Data collection Structured questionnaire for customer. Questionnaire Observation and personal discussion. Secondary Data Collection Journals Websites Research Approach Descriptive approach Techniques to be used in Research Approach Survey Personal observation and discussion during time of questionnaire fill-up.

Page9

INTRODUCTION OF STUDY

Page10

E- Marketing:
1. Objective: Principal Objective - To make sure there is availability of a skilled and willing workforce to an organization. Individual Objectives To help employees in achieving their personal goals, this in turn, enhances the individual contribution to an organization. Organizational Objectives To assist the organization with its primary objective by bringing individual effectiveness. Functional Objectives To maintain the departments contribution at a level suitable to the organizations needs. 1.1. E- Marketing:The good news is that E-MARKETING is inexpensive, fast, and easy to carry out. And it can be more effective than any other marketing channel available today if youre smart. Being smart is to be strategic. And for email marketing for financial services to be strategic means to be sure you have everything in place so that your email message is welcome. First there were websites and we pictured them as online brochures. People found our websites mainly because they saw them printed in our adverts and on our business cards. We delighted in the immediacy of sending and receiving email. Just over ten years ago we still thought it was pretty cool marketing to have a site that could also collect the email addresses and contact details of users. We sent newsletters to our customers and prospects with great effect. As websites multiplied beyond anyones imagination, searching for them became increasingly important. Websites became the first contact many of our customers had with the company, so we added articles and content to interest and persuade them. They stopped being static brochures.
1.3. IMPORTANCE:

Improvement of productivity. Maintain the quality of the product. To have better companys climate. For the present and expected level of performance to continue. Introduction of new process. Self development and employee. Managing succession. To refresh the knowledge time to time.

Page11

1.4. SCOPE OF THE STUDY: The scope of the study depends on the the factor and resources of the researcher. Taking time factor and resources into consideration, the present study has been limited to a study of E-Broking for purpose of BONANZA PORTFOLIO LTD. Which is one the growing and sophisticated BROKERGE FARM in India has been selected. The study covers the attitude of the applicant, employee.

1.5. Governing Laws in India:Two Acts mainly govern Securities Transactions in India at present-: 1. The Securities Contracts (Regulation) Act, 1956; and 2. The Securities & Exchange Board of India Act, 1992. The paper based ownership and transfer of securities has been a major drawback of the Indian Securities Markets since it often results in delay in settlement and transfer of securities and also lead to "bad delivery", theft, forgery etc. The Depositories Act, 1996 was therefore enacted to pave the way of smooth and free transfer of securities. The other relevant laws, which affect the capital market, are: 1. The Depositories Act, 1996; 2. The Foreign Exchange Regulations Act, 1973; 3. Arbitration and Conciliation Act, 1996; 4. Companies Act, 1956; 5. Debt Recovery Act (Bank and Financial Institutions Recovery of Dues Act, 1993); 6. Banking Regulation Act; 7. Benami Prohibition Act; 8. Indian Penal Code; 9. Indian Evidence Act, 1872 and; 10. Indian Telegraph Act, 1885.

Page12

1.6. When was online trading introduced in INDIA?

Online trading started in India in February 2000 when a couple of brokers started offering an online trading platform for their customers.

Procedure of Executing Trades on Online Trading System

CLIENT

BROKER

STOCK EXCHANGE

Places an order on the net on the brokers website through the distinctive I.D. code

Accepts the order, Checks the clients Identity and places the order with the stock exchange

Accepts the order after checking the scrip limit of the broker for the day Executes the order

The settlement of the deal (buy/sell order) gets reflected in his Demat account. The client is intimated about the execution of the deal by e-mail. Pays the broker pending physical delivery.

Pays the Exchange though his owns account and receives it from the client account.

Receives the money and completes the settlement

Page13

Procedure of Executing Trades on Online Trading System Step One: Investor approaches brokers office and sees the current quotation as displayed on the computer system (traders workstation). System always displays best buy and best sell quotation for each share/debenture. The best buy quotation (price ) from among all the buying orders in the system is the one which has highest price, on the contrary to this the best selling quotation from among all the sales orders in the system is the one which has lowest price . Step Two: Clients order is entered by the broker on the computer system, which is communicated to the mainframe of the stock exchange. Background processing in the mainframe: System allows only one data set either to enter or exit out of the mainframe; every order entering the system is given a unique time and serial no., called as order number. All the orders are indexed in the system as per the price and time preference separately for buying and selling orders, in separate files. Step Three: System (mainframe) does the automatic matching of the orders, as soon as the price quotations are matched orders get converted into a trade. Generally there is no need to match the order quantities, if an order for purchase for 100 shares is there @ 67 and a sales order for 600 shares is @ 67 then 100 shares can be bought out of 600 and remaining 500 of the sales order will still remain in the order book, similar is also possible if purchase quantity is more than the sales quantity. Step Four: Upon automatic matching, trades are communicated to respective brokers immediately on the systems of the brokers. Step Five: All the trades of a settlement are netted by the system scrip wise and broker wise and communicated to each broker on the system.

Page14

1.7. FEATURES OF ONLINE TRADING: The Online Trading is having many features which make it most suitable for the investors to go for. Some of these features are as follows: Features of information. The Internet can provide a new sense of control over your financial future. The amount of investment information available online is truly astounding. It's one of the best aspects of being a wired investor. For the first time in history, any individual with an Internet connection can: Know the price of any stock at any time Review the price history of any stock in chart format Follow market events in-depth Receive a wealth of free commentary and analysis about stock markets and the global economy Conduct extensive financial research on any company

Control of yourmoney: One of the great appeals of using an online trading account is the fact that the account belongs to you, and is under your direct control. When you want to buy or sell stock, you no longer need to call your broker on the phone; hope that he is in the office to place your order; possibly argue with the broker about the order; and hope that the transaction is executed instantly.

Access to Market: At the most basic level, an online trading account gives you more agility in buying and selling stocks. This is through sophisticated information streams, dedicated trading platforms and sophisticated tools for accessing the markets. Ensures the best price for Investor: Every broker house aims at providing the investor with the best price available. Also due to the high level of transparency with regard to display of information relating to the specific stocks and company profiles, you will be able to get the best quote for your orders.

Offers grater transparency: Online trading offers you greater transparency by providing you with an audit trail. This involves a complete integrated electronic chain starting from order placement, to clearing and settlement and finally ending with a credit into your depository account. All these stages are subject to inspection, thus bringing in transparency into the system.
Page15

Enables hassle free trading: Online trading integrates your bank account, your trading account and your demat accounts, which leads to easy and paperless trading for you.

Allow instant trade execution You as an Investment online customer will be able to execute the entire trading transaction, right from logging on to our site, to the execution and settlement of your bank account, in a very short period of time.

Provide a level playing field Trading on the net, gives even the smallest retail investor access to information that earlier was available only to the big traders. This provides a level playing field for all investors in the securities market. Reduces the settlement risk This method of trading reduces the settlement risk for the investor, as in this case all short sell orders are squared off at the specified cut-off time and not allowed to be carried forward. In the case of a demat account your demat account is checked by us before executing your sell transaction. This reduces the settlement risk for the buyer, who is assured of the delivery of the securities and for you as a seller of the securities Instant order trade confirmation Every trade is confirmed immediately and you will receive an on-screen confirmation following every trade with full details for your records. This avoids costly errors that would have been discovered when it is too late. Integrated Accounts Your Bank, Depository and online account are integrated for your convenience. Various broking houses provide access to many of the popular banks. Provide a level playing field Broking houses work hard to keep our account and personal information secure. From updated security technology to advanced fraud prevention measures, they have the people and tools in place to provide a strong defense against electronic scams and fraud.

Page16

1.8. BENEFITS OF ONLINE BROKING

1) Less Costly:
The most significant advantage of the Online broking is the cost reduction in the brokerage. Due to the power of the Internet one has the privilege of becoming the clients of really large brokerages with the benefits of enjoying the low charges hithelio before enjoyed only by the big players. As the DP account has got linked to the trading account most players do not charge a minimum transaction cost thus truly allowing one to buy a single share and achieve meaningful rupee price averaging whatever be your buying power.

2) Peace of Mind:
One can never have complete peace of mind but online investing does away with the hassles of filling up instruction slips, visits to the broker for handing over these slips and consequent costs.

3) Keeping Records:
The site one trades on keeps a record of all transactions down to unexecuted orders and cancelled orders thus keeping one abreast of all your transactions 24 hours a day. No paperwork means more time at ones disposal for research and analysis.

4) Access to Information and investment Tools:

Most online investing sites have a wealth of information for their registered members. This includes research reports, results, analysis and even gossip and the buzz in the market.

5.) Unparalleled Liquidity:

The bank account linked with the trading account invariably has an A TM free. Most partner banks offer Internet banking as well. This results in ones money becoming available to him whenever he like from his trading account. Conversely in case he spot an opportunity in the market he can immediately allocate money from his savings account to his trading account and make profits.

6.) Unparalleled Safety:

Most sites are secure using 128-bit algorithms -highest available commercially anywhere in the world. Moreover even if somebody broke in and tampered with ones account the money from the stocks he sold or the stock bought from the money in his account is in his account only.

7.) Reduces the settlement risk:

This method of trading reduces the settlement risk for the investor, as in this case no Short sale is possible i.e. the seller will not be able to sell the securities unless he has their actual possession. In the case of a demat account (required for an online transaction), when a seller wants to sell the securities, his demat account is checked by the Depository Participant before executing the sale transaction. This reduces the settlement risk for the buyer, who is assured of the delivery of the securities.
Page17

8.) Offers greater transparency:

Online trading gives greater transparency to the investors by providing them an audit trail. This involves a complete integrated electronic chain starting from order placement, to clearing and settlement and finally ending with a credit to the depository account of the investor. All these stages are subject to inspection, thus bringing in transparency into the system.

9.) Ease of trade:

It is the ease of doing the trade through net, with a click of mouse; one can buy or sell any share that is dematerialized. Other than the above-mentioned advantages, Internet trading provides some additional advantages to the investors, brokers and also helps the nation to channelize the resources. Net trading would increase competition in the market hence increase in the bargaining power of the investors. The entire communication between the investor, broker and exchange would take place within milliseconds.

Page18

1.9. PROBLEMS OF ONLINE BROKING

There is a flip side to everything and online trading is no exception.

Chart Source: - www.lse.co.in

4%
More Costly Lack Of Knowledge

14%

21%

11%

Loyalty to Traditional Broker Lack of Trust

23%
27%

Slow Speed Other

27% Loyality is of traditional broker 23% people say that online trading is more costly than manual trading. 21% people not prefer online trading because of lack of knowledge. So, the main problems of online trading are as follows: 1.) "Server not found": This may appear on ones screens when he is desperately trying to get out of an unprofi table position. Some of the online sites are providing a telephone number for use in case their sites are overloaded or their server down. 2.) Connectivity of the Broker with NSE: Recently ICICI Direct had a connectivity problem with the NSE for two and halfhours during trading hours. This problem is rare but be alive to its possibility.

3.) Cyber attack: In the event of a malicious attack on the systems of ones broker he is protected only if the company is taking proper precautions against such attacks and if proper backup is regularly been taken. He may like to choose a brokerage that has a stated security policy and contingency plan in place. 4.) Non-availability of a seamless interface: As a client one will access the NSE through a server of the online brokerage and this may involve queuing delays. If a number of client access the server the server takes its own time sending the

Page19

orders to the NSE server. He must check out the seamlessness of this interface before selecting an online brokerage. The faster the orders are processed the more seamless is the interface. 5.) Non- availability of personalized advice: If one likes to ask his broker "Aaj kya achcha lag raha hai" he may not be able to do so. If he wants advice on a particular stock in his portfolio he may not even be able to get that. 6.) Margin: If Internet trading alone is not fast and furious enough; many people are trading on margin. That is where the brokerage firm lends you money by leveraging his account, allowing him to buy a large amount of securities by putting up only a small amount of money. He may have forgotten what he read in the small print of his agreement, but the brokerage firm has the right to change the maintenance margin requirements without any warning or notice to him. In fact, the firm has the right to liquidate his securities holdings (and it can pick and choose which ones) without any notice to one if he fail to meet the margin call. And there he was leveraged to the hilt, hoping to hit a home run when he discovered that he is required to make a large deposit that he cannot make. The next thing one know, the firm is selling off his securities at a point in time that is not the best for him. These are the perils of trading on margin. 7.) Little use of advisory services: The advisory services being promised by the brokers would be of little use to investors looking for an insight into the market. Many would not like to rely on research reports, which are there for all. So, net investors will have to do their own research and take their own decision, whether wild or wise.

8.) Increased charges: Some of the brokers are of the view that they would have to provide advisory services to the customers. But with increased volumes, they will have to follow the international practice of charging a little more than the normal charges from a customer looking for personal advice.

1.9. WHY PEOPLE ARE BENDING TOWARDS ONLINE TRADING

Several broking houses now offer online trading facilities. You can trade online with e-brokerages such as ICICI Direct, Kotakstreet, India bulls, India info lines 5paisa.com and HDFC securities. If you are already comfortable trading with your regular broker, here are few reasons why you may consider switching to trading online, or at least another avenue of trading. an obvious advantage of online trading is that your transaction would be virtually paperless. Your trading account would be

Page20

linked to your demat and bank account, ensuring a smooth transaction process. This is especially helpful in the extent T+2 settlement system, where you have just two days to settle your transaction. The normal process of issuing of delivery note, in case of a sale, or arranging for a payment in case of purchaser of shares, is all taken care of the minute your order is executed online. The absence of manual intervention ensures that you are completely in control of all transaction. There is also little room for error, as your order is always confirmed before it is executed. You can also make better decision as you have a clear record of all your previous transaction. When you trade offline, a demat statement is normally sent to you only on a quarterly basis .keeping track of your portfolio can be a hassle in such a case. The internet can provide a new sense of control over your financial future. The amount of investment information available online is truly astounding. Its one of the best aspect of being a wired investor for the first time in history, any individual with an internet connection can: Know the price of any stock at any time Review the price history of any stock in chart format Follow market events in-depth Receive a wealth of free commentary and analysis about stock markets and globe economy. Conduct extensive financial research on any company Talk with other investors around the world

At invest smart you can get real-time stock quotes, daily roundups of the stock market, experts commentary, and a deep community of fellow investors. Convenience is probably the greatest advantage online trading offers investors. if dont have time to trade during market hours ,perhaps you are at work, you can log on the web-trading site and place your order offline, during off market hours. Your order would join the queue and be expected the next day. You would need to enjoy a good relationship with your broker, for you to be able to reach him in the late hours. For non-resident Indians (NRI), trading online is perhaps their easiest option to invest in the Indian stock markets. What is more, the time difference, in some cases, can work to their advantage .Antony, an NRI-based in New York, places his order in the evening after work, when it is day time India and the markets are open. We also have access to considerable information online. By just logging on to ICICI direct online, for instance, we can get the latest news, market information and company research.

Page21

Moreover, if our connection is maddeningly slow and we want to get your order executed immediately, most e-brokerages also provide a facility to trade offline by placing our order via the phone.

1.10. PROCEDURE FOR ON-LINE TRADING: An Investor interesting in trading through Internet shall such as filling the account opening form of -broker, copies of identity proof have to, firstly register himself with an Internet brokerage firm. Some formalities, copy of residence proof are made to register himself with the e-trader. Secondly, the investor would be required to open a bank account with a scheduled bank and sufficient balance should be kept in the account. Thirdly he would be required to open account with a depository participant because only dematerialized shares can be traded on Internet.

The client places order via the net by logging on to his Brokers site.

The broker accepts and executes the order and places it with the exchange

The exchange accepts the order after checking the share limit for the day.

The broker makes the payment either directly via the client bank account or pays through its own account and recovers it later from the client.

The exchange receives money and completes the settlement.

The client is intimated about the settlement either through the demat or via e-mail.

Page22

So, generally following steps are followed while doing the trading through the Internet: Step-I: Those investors interested in doing the trading over Internet system, that is,NEAT - ISX (NSE), should approach the brokers and register with the Stock Broker. Step-2: After registration, the broker will provide to them a login name, password and a personal identification number (PIN). Step-3: Actual placement of an order, Using the place order window as under can then place an order: (a) First by entering the symbol and series of stock and other parameters such as quantity and price of the scrip on the place order window. (b) Second, fill in the symbol, series and the default quantity. Step-4: It is the process of review. Thus, the investor has to review the order placed by clicking the review option. He may also re-set to clear the values. Step-5: After the review has been satisfactory; the order has to be sent by clicking on the send option. Step-6: The investor will receive an "Order Confirmation" 'message along with the order number and the value of the order. Step- 7:In case the order is rejected by the Broker or the Stock Exchange for certain reasons such as invalid price limit, an appropriate message will appear at the bottom of the screen. At present, a time lag of about ten seconds is there in executing the trade. Step-8: It is regarding charging payment, for which there are different modes. Some brokers will take some advance payment from the, investors and will fix their trading limits. When the trade is executed, the broker will ask the investor for transfer of funds by the investor to his account.

CLEARING AND SETTLEMENT Clearing Function: The clearing function of the clearing corporation is designed to work out a) what members are due to deliver and b) what members are due to receive on the settlement date. Settlement is a two way process which involves transfer of funds and securities on the settlement date. Function of the While NSE provides a platform for trading to its trading members; the
Page23

National Securities Clearing Corporation Ltd. (NSCCL) determines the funds/securities obligations of the trading members and ensures that trading members meet their obligations. The core processes involved in clearing and settlement are: (a) Trade Recording: The key details about the trades are recorded to provide basis for settlement. These details are automatically recorded in the electronic trading system of the exchanges. (b) Trade Confirmation: The parties to a trade agree upon the terms of trade like security, quantity, price, and settlement date, but not the counterparty which is the NSCCL. The electronic system automatically generates confirmation by direct participants. (c) Determination of Obligation: The next step is determination of what counter-parties owe, and what counter-parties are due to receive on the settlement date. The NSCCL interposes itself as a central counterparty between the counterparties to trades and nets the positions so that a member has security wise net obligation to receive or deliver a security and has to either pay or receive funds. (d) Pay-in of Funds and Securities: The members bring in their funds/securities to the NSCCL. They make available required securities in designated accounts with the depositories by the prescribed pay-in time. The depositories move the securities available in the accounts of members to the account of the NSCCL. Likewise members with funds obligations make available required funds in the designated accounts with clearing banks by the prescribed pay-in time. The NSCCL sends electronic instructions to the clearing banks to debit members accounts to the extent of payment obligations. The banks process these instructions, debit accounts of members and credit accounts of the NSCCL. (e) Pay-out of Funds and Securities: After processing for shortages of funds/securities and arranging for movement of funds from surplus banks to deficit banks through RBI clearing, the NSCCL sends electronic instructions to the depositories/clearing banks to release pay-out of securities/funds. The depositories and clearing banks debit accounts of the NSCCL and credit accounts of members. Settlement is complete upon release of pay-out of funds and securities to custodians/members.
Page24

1.11. MARGIN SYSTEM

In the stock market there is uncertainty in the movement of share prices. During a day price fluctuates several time moving within the range of price band specified by the stock exchange. This price fluctuation creates an element of risk. So the margin money in turn is deposited by the broker to stock exchange and it is adjustable against the final obligation. In the cash market as well as derivatives market margin system is levied by considering VaR (Value at Risk) following two margins are levied -: Initial/Exposure Margin Mark-to-Market Margin

It is the volatility of the share prices which influences the margin system; the volatility is an indicator of the movement of share prices in the past. It is different from price fluctuation, price fluctuation implies a change in the share prices, whereas volatility indicates how frequently and upto what range such price change occurs. Volatility is always referred with reference to the time period and the range of price fluctuation. A large price change in a shorter time span is interpreted as high volatility and vice-a-versa. Initial/Exposure Margin Stock exchange levies initial margin on the gross outstanding position of a broker, as broker does the transactions for his clients therefore he collects this initial margin amount from clients. Decision about the percentage of initial margin very much on the VaR calculation. This initial margin is levied to cover the amount of largest loss likely to be incurred in a time period of next one day on the gross outstanding position client id wise as well as on the transactions executed by broker in proprietor account. This initial margin is collected by the broker from his client at the time when client places an order this is done to cover most likely loss, if any at the time of confirmation of trade and non-acceptance or denial by the client.

Page25

Mark-to-Market Margin (MTM) Stock exchange calculates MTM for every broker at the end of the trading session by considering client wise open position. It is also calculated for the open position executed in proprietor account. It is calculated by comparing transaction price with the closing price of the share for the day. When we consider example of purchase of 100 shares @ 1,000 per share on 11th January, 2008, now if at the end of the trading session on the same day price falls to Rs. 800 per share as closing price of the day .Here the buyer incurs a notional loss of Rs. 200 per share and this notional loss is called MTM (Mark-to-Market) Loss. In practice this buyer is required to deposit this loss amount to his broker by the next day before the starting of the trading session on the next and likewise broker shall deposit the same amount to stock exchange. Similarly MTM is calculated for sale transaction. MTM is to be deposited in addition to the initial margin. This notional loss is calculated for open position as well as on the squared up quantity to cover up the notional loss in the event of default by the client.

Page26

CAPTER-2 COMPANY PROFILE

Page27

COMPANY PROFILE Head office (Delhi) 2/2-A, 1ST Floor, Laxmi insurance Building, Asaf Ali Road, New Delhi -110002 Corporate office (Mumbai) Bonanza House, plot no.M-2, Cama Industrial Estate Walbhat road,Behind the hub, Goregaon(east) Mumbai-400063 Registered office (Delhi) 4353/4C,Madan Mohan Street, Ansari Road, Drayman, New Delhi-110002 Regional office Raj. (Jaipur) 410-413,4th floor, Silver Square, Near Raj MandirCinema, Bhagwandas Road, Jaipur-01

Page28

2.1. OUR ORGANIZATIONAL STRUCTURE

Page29

Bonanza, a leading financial services &brokerage house working diligently since 1994 can be describe in a single word as a financial powerhouse. With acknowledged industry leadership in execution and clearing services on exchange traded derivatives and cash market products, bonanza has spread its trustworthy tentacles all over the country with more than 1050 outlets spread across 350 cities. It provides an extensive range of services in equity, commodities, currency derivatives, wealth management, distribution of third party product, etc. Being at par with the modern tech-savvy world, bonanza makes an integrated and an innovative use of technology. It also enables its clients to trade online as well as offline the strategic tie-ups with he latest technology partners has earned bonanza a prestigious place as one of the top brokerage houses in the country. Client-focused philosophy backed by membership of all principal Indian stock and commodity exchange makes bonanza stand apart from competitor as a preferred services provider in the industry for value-based services

&

Page30

Bonanza Product and Service Bonanzas service encompasses the spectrum of wealth creation, management and preservation. Bonanza offers a wide range of product and services to help client reach their financial goal.

Page31

2.2. Work segment:

Bonanza main work segment based on INVEST, SAVE, PROTECT

SAVE Saving & deposited to meet shor t ter m cash requirement for you INVEST Medium to long ter m investmen t which provides income &capital grow th

PROTECT Insurance that provides protection to your life

Prime Brokerage Services:

Equity and equity derivatives

-Trading Platform offers online Equity & Equity Derivatives trading facilities for investors. This high-end, efficiently integrated application makes trading convenient, quick and hassle free. -Added advantages - Having access to resources like research charts, advice, and live quotes online assistance - to take well-versed decisions. Trading through our branch network or phone available, by simply registering with us.

Commodity Derivatives

We offer access to future trading via multiple exchanges in wide-ranging commodities agricultural commodities, base metals, energy and precious metals. We also provide investment opportunities in gulf commodities futures and currency market.

Currency Derivatives

Known as being predecessors in contributing to unique financial products, we have now added to our stable - currency Derivative. This service, we provide both offline and online.
Page32

Asset Management:

Portfolio Management Services (PMS) Our team of portfolio managers design portfolios to suit every customers needs. Constantly scrutinizing the developments in market and moving stocks, we aim for maximum capitalization. We suggest the most appropriate product to customers, based on factors like their investment spheres, return expectation and risk tolerance. Our experience, expertise and research help us give our customers investments the best upshots. Advisory

Bonanza guides and supports its clients to re-structure and streamline their portfolios based on changing market conditions and client objectives.

Depository Services:

-Bonanza is a depository participant with NSDL and CDSL. -We provide an array of Depository Services to make share transactions quicker, easier and cheaper for both Equity and Commodity.

Distribution:

Insurance

-Bonanza offers insurance products in Life and General Insurance. -Our IRDA certified advisors offer prudent advice on policy selection and assists through the claim redressal process. -Our advisory team matches the insurance products to financial profiles of customers to offer the best solution options, maintaining transparency and professionalism. Mutual Funds

-Bonanza is one of the largest distributors of mutual fund in India. -With the help of our in-depth research across categories covering 20 parameters and our expertise, we guide our clients to take appropriate investment decisions.
Page33

-Keeping in mind customers' budgets, needs and securities, our AMFI certified investment advisors offer the best deals.

Initial Public Offer (IPO)

-We offer our customers online investment access for Public offerings. -In-depth research advice for the forthcoming IPOs. Bonanzas Affiliations Equity National Stock Exchange of India Ltd. (NSEIL) The Bombay Stock Exchange Ltd. (BSE) OTC Exchange of India Ltd (OTCEIL)

Commodities Multi Commodity Exchange (MCX) National Commodity and Derivatives Exchange Ltd (NCDEX) Dubai Gold Commodities Exchange (DGCX) National Multi Commodity Exchange (NMCE)

Currency National Stock Exchange of India Ltd. The Bombay Stock Exchange Ltd. (BSE) MCX-SX Ltd. Depository participant with CDSL and NSDL Bonanzas Strengths

Bonanza has over 1050 outlets in more than 350 cities in India. (as on March 2009) Bonanza has more than 2 lakh clients comprising of Corporate Financial Institution Investors, Mutual Funds, High Net-worth Individuals and Retail Investors.

Bonanza has a young dynamic team of 1900 professionals.

Page34

Strong infrastructure supporting over 3000 trading terminal supporting more than 350 VSAT's to support geographic reach and servicing capabilities. 24x7 service and support via our federal support system.

Page35

2.3. Bonanzas Pillars: Management Team

Meet the minds behind the corporation Bonanza - the Directors who are leading this gigantic force.

S.P. Goel

The Founder Director of Bonanza who has been instrumental in chartering critical and strategic initiatives. With an experience of 25 years in the finance business, Mr. Goel has also been appointed as the director of the OTC Exchange of India. He represents NSEIL for the SEBI constituted Dr. J R Verma Advisory committee for the development of the derivatives market in India. He started his career as a CA in 1987 and soon after he embodied several prominent committees on settlement issues (COSI), a policy generating body at the NSE of India Ltd and Dispute Resolution Committee (DRC) of National Stock Exchange Clearing Corporation Limited (NSCCL) Shivkumar Goel Being the Founder Director of Bonanza, he has been handling IT & risk initiatives since inception. Formerly, designated as the CEO of SRF Finance Limited, Delhi; Mr. Shivkumar Goel had also spearheaded the IT committee of the DELHI Stock Exchange. A CA & CS with more than 30 years of experience, he recently was nominated as the executive committee member of Depository Participants Association of India. He is currently a functional member with Association of National Exchanges Members of India - NR

S.K. Goel Has been Bonanzas Founder Director and a prominent CA for more than 35 years now. Being actively involved in managing the Business initiatives and Accounting across India; Mr. S.K.Goel has been mainly heading Bonanzas northern and eastern zone. He was formerly with the Modis & OSWALS - one of the leading manufacturing companies, in addition to being empanelled with various major banks as their Internal Auditor.
Page36

Vishnu Kumar Agarwal

The Founder Director of Bonanza with over 30 years of experience; Mr. Vishnu has proficiently taken charge of Administration, Real Estate Investments and Initiatives for all the group companies of Bonanza.

Anand Prakash Goel He has been playing a pivotal role as Bonanzas Founder Director by resourcefully managing Taxation, Compliance and DP. A qualified CA with more than 30 years of experience in his stride, he has undertaken audits for leading banks across India.

Saurabh Shukla

He plays a pivotal role as the Group COO and one of the Directors of Bonanza Commodity Brokers Ltd. He has been actively involved in varied key strategic functions and management of retail business. Previously, designated as Head of Marketing for the Refco Group, he has also worked for Merchant and Investment Banking and Corporate Finance. He was also ardently involved in developing and servicing corporate / institutional customers at Blue Blends Finance Ltd. and Nat sons Pvt. Ltd.

Page37

2.4. Bonanzas Vision

To be one of the most trusted and globally reputed financial Distribution companies.

Bonanza Values

At Bonanza, customers come first. And their satisfaction is not just our top priority but also the driving force for us, every single day. Transparency Honesty is our forte. We believe in dealing on thoroughly ethical grounds, being fair and transparent with our customers. Meritocracy We recognize and appreciate efforts put in by our employees. And we, as a matter of fact, reward and distinguish each one of them, ceaselessly. Solidarity We believe in sharing a forthright and respectful relationship with our business partners and employees. We consider them both as our team associates, who work together. Succeed together.

Transparency Honesty is our forte. We believe in dealing on thoroughly ethical grounds, being fair and transparent with our customers We recognize and appreciate efforts put in by our employees. And we, as a matter of fact, reward and distinguish each one of them, ceaselessly.

Solidarity We believe in sharing a forthright and respectful relationship with our business partners and employees. We consider them both as our team associates, who work together. Succeed together. Started at zero Its biggest strength is that it started its business with a zero level, merely as sub broker then taken the self trading membership, hence it understand the needs of its clients and business partners very well. Integrated and transparent services It values integrity and transparency in clients transaction and providing the best value for money to its clients.
Page38

Value of client service Its dedicated relationship managers are trained to provide excellent services and complete satisfaction to all their clients, strongly believes that success is only the end result of clients growth. All the service is one umbrella All the memberships are in one company name, no hassle of account transfer, deliveries adjustments, and buy stock in one exchange and sale in another, get arbitrage opportunities. Accurate and timely research It is always endeavoured to provide timely research based advice to its clients, its research team comprises of experienced fundamentals and technical analysis, sector specialist and derivatives strategist, who are constantly looking for new trading and investment opportunities. Wide range of services:It is offering Sock broking, Investment Advisory Services, Depository Services, Commodities Trading, Portfolio Management, IPO & Mutual Fund Distribution etc. to its esteemed clients. 24*7 online back office software Web enabled centralized back office software installed at head office, having direct access to all branches. Business associates, sub broker and client to have online information about their transaction, account derivatives, open position and so many things live updated. Its all client can obtain up to date information online at click of a button on their desktop PC.

Page39

2.5. Bonanzas growth:

Clientele growth

After spreading our wings across varied segments, we are now growing in all direction with more than 2 lakh clients under the banner.

Bonanza Research Desk Bonanza Research desk has a dedicated team of research analysts and experts that have an indepth knowledge of the market place. They offer value perspectives, focus on opportunities for investment and growth and endeavour to reduce risk potential. Its premium advisory services are based on technical and fundamental views and strategies.

Equity - SMS alert - Daily market strategy - Weekly market strategy - Monthly market strategy - 'Equity talk' - Daily derivative strategy Commodity - SMS alert - Daily report - Weekly report - Monthly report: Commodity Review
Page40

Mutual funds - Daily Performance Sheet - Weekly Mutual Fund Report 'The Edge' - Monthly free News Letter 'The Perspective' Regular updates on products, performance and new launches.

Currency Derivatives -Daily Forex Insight report

Bonanzas Technology

Single VSAT Connectivity for NSE/BSE/F&O/NCDEX /MCX/MCX-SX through Virtual Private Network (VPN) Other Connectivity Links to Branches through Leased Lines, ISDN, Radio Frequency And Broadband.

High Speed and Streaming live quote access via Internet for NCDEX/MCX/MCX-SX for branches and retail clients.

Internet based Depository access (Speed-e/Easiest) to offer DP services to Retail investors.

24x7 online access to a centralized support structure for all products offerings.

Page41

2.6. Bonanzas Achievement

Top Equity Broking House in terms of branch expansion for 2010 3rd in terms of Number of Trading Accounts for 2008 6th in terms of Trading terminals in for two consecutive years 2007- 2008

Milestone and journey :

5th largest in terms of no. of offices for the year 2010-2011*

Top Equity Broking House in terms of branch expansion for 2008*.

4th in terms of Trading terminals for the year 2010 - 2011*.

6th in terms of Sub Brokers for the year 2010-2011*.

Page42

Nominated among the Top 3 for the "Best Financial Advisor Awards 08" in the category of National Distributors Retail instituted by CNBC-TV18 and OptiMix.

Nominated among the Top 3 for the "Best Financial Advisor Awards 09" in the category of National Distributors Retail instituted by CNBC-TV18 and OptiMix.

Nominated among the Top 3 for the "Best Financial Advisor Awards 09" in the category of National Distributors Retail instituted by CNBC-TV18 and OptiMix.

Awarded by BSE Major Volume Driver 04-05, 06-07, 07-08.

Ranked 2nd by UTI MF & CNBC TV 18 Financial Awards 2009 in the category Best Financial Advisor- Retail

Top 4 in Commodity Segment in Bloomberg UTV

India's No. 1 Valuable Financial Advisory & Stock Broking Company as per Business Leadership Award 2012 organized by the India Leadership Conclave and Indian Affairs Magazines.

Page43

CAPTER-3 CORPORATE TIE UPS And PEOPLE NATURE TOWARDS BONANZA

Page44

3.1. CORPORATE TIE UPS

The company has Corporate Tie ups with Birla Sun life, Bajaj Allianz, ICICI Prudential, SBI, Aviva, Kotak Mahindra and Reliance for Life Insurance and General Insurance. In General Insurance, Bonanza provides Insurance for Motor, Health, Travel, Housekeeper, Shopkeeper, Marine, Personal and Group Insurance.

REASONS TO CHOOSE Bonanza Portfolio Ltd.

EXPERIENCE Bonanza Portfolio ltd has more than eight decades of trust and credibility in the Indian stock market. In the Asia Money brokers poll held recently, SSKI won the Indias best broking house for 2004 award. Ever since it launched Bonanza Portfolio Ltd. as its retail broking division in February 2000, it has been providing institutional-level research and broking services to individual investors.

TECHNOLOGY With our online trading account you can buy and sell shares in an instant from any PC with an Internet connection. You will get access to our powerful online trading tools that will help you take complete control over your investment in shares.

ACCESSIBILITY Bonanza Portfolio Ltd. provides ADVICE, EDUCATION, TOOLS AND EXECUTION services for investors. These services are accessible through our centres across the country (over 250 locations in 123 cities), over the internet (through the website http://www.bonanzaonline.com) as well as over the voice tool.

KNOWLEDGE In a business where the right information at the right time can translate into direct profits, you get access to a wide range of information on our content-rich portal, www.bonanzaonline.com. You will also get a useful set of knowledge-based tools that will empower you to take informed decisions. CONVENIENCE You can call our Dial-N-Trade number to get investment advice and execute your transactions. We have a dedicated call-centre to provide this service via a toll free number from anywhere in India.

Page45

CUSTOMER SERVICE Our customer service team will assist you for any help that you need relating to transactions, billing, Demat and other queries. Our customer service can be contracted via a toll-free number, email or live chat on www.bonanzaonline.com.

INVESTMENT ADVICE Bonanza has dedicated research teams for fundamental and technical research. Our analyst constantly track the pulse of the market and provide timely investment advice to you in the form of daily research emails, online chat, printed reports and SMS on your phone.

BENEFITS 1. Secure Order by Voice Tool Dial-n-Trade. 2. Automated Portfolio to keep track of the value of your actual purchases. 3. 24x7 Voice Tool access to your trading account. 4. Personalized Price and Account Alerts delivered instantly to your cell phone & email address. 5. Special Personal Inbox for order and trade confirmations. 6. On-line customer service via web chat. 7. Anytime Ordering

3.2. SERVICE PROVIDED BY BONANZA

1. Mutual Funds 2. Insurance 3. PMS 4. Share Broking 5. IPO 6. Currency Derivatives 7. Share Broking 8. Commodity Broking Life Insurance General Insurance

Page46

COMPETITORS

Page47

COMPETITORS ANALYSIS

Page48

3.3. COMPETITORS ANALYSIS

PRODUCTS AND SERVICES:A product for every need: ICICIdirect.com is the most comprehensive website, which allows you to invest in Shares, Mutual funds, Derivatives (Futures and Options) and other financial products. Simply they offer you a product for every investment need of yours. ICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is an affiliate of ICICI Bank Limited and the Website is owned by ICICI Bank Limited.
ICICIDIRECT.COM

TRADING IN SHARES

TRADING IN Derivative

MUTUAL FUNDS

IPO AND BOND ONLINE

PERSONAL FINANCE

1.

TRADING IN SHARES:-

ICICIdirect.com offers you various options while trading in shares: Cash Trading: - This is a delivery based trading system, which is generally done with the intention of taking delivery of shares. Margin Trading:- You can also do an intra-settlement trading up to 3 to 4 times your available funds, wherein you take long buy/ short sell positions in stocks with the intention of squaring off the position within the same day settlement cycle. (ONLY for intraday) Margin PLUS Trading:- Through Margin PLUS you can do an intra-settlement trading up to 25 times your available funds, wherein you take long buy/ short sell positions in stocks with

Page49

the intention of squaring off the position within the same day settlement cycle. Margin PLUS will give a much higher leverage in your account against your limits. Spot Trading:- When you are looking at an immediate liquidity option, 'Cash on Spot' may work the best for you, On selling shares through "cash on spot", money is credited to your bank a/c the same evening & not on the exchange payout date. This money can then be withdrawn from any of the ICICI Bank ATMs. BTST:- Buy Today Sell Tomorrow (BTST) is a facility that allows you to sell shares even on 1st and 2nd day after the buy order date, without you having to wait for the receipt of shares into your demat account. Call n Trade:- Call n Trade allows you to call on a local number in your city & trade on the telephone through our Customer Service Executives. This facility is currently available in over 11 major states across India. Trading on NSE/BSE:- Through ICICIdirect.com, you can trade on NSE as well as BSE.

2.

TRADE IN DERIVATIVES :-

Future:Through ICICIdirect.com, you can now trade in index and stock futures on the NSE. In futures trading, you take buy/sell positions in index or stock(s) contracts having a longer contract period of up to 3 months. Presently only selected stocks, which meet the criteria on liquidity and volume, have been enabled for futures trading. Calculate Index and Know your Margin are tools to help you in calculating your margin requirements and also the index & stock price movements. Option:To take the buy/sell position on index/stock options, you have to place certain % of order value as margin. With options trading, you can leverage on your trading limit by taking buy/sell

positions much more than what you could have taken in cash segment. 3.IPOs AND BONDS ONLINE :You could also invest in Initial Public Offers (IPOs) and Bonds online without going through the hassles of filling ANY application form/ paperwork.

Page50

Get in-depth analyses of new IPOs issues (Initial Public Offerings), which are about to hit the market and analysis on these. IPO calendar, recent IPO listings, prospectus/offer documents, and IPO analysis are few of the features, which help you, keep on top of the IPO markets. 4. CUSTOMER SERVICE FEATURES :With 'ICICIdirect Customer Tools & Updates' you can trouble shoot all your problems online. The ICICI direct Advantages:A Unique 3-in-1 account that gives you: Convenience:The 3-in-1 accounts integrate your banking, broking and demat accounts. This enables you to trade in shares without going through the hassles of tracking settlement cycles, writing cheques and Transfer Instructions, chasing your broker for cheques or Transfer Instructions etc. Speed :You can now get the latest quotes of scrip on ICICIdirect.com and place an order almost instantly. Control:You can be assured that you have in fact placed an order at the price you always wanted to, but may not have been able to do so till now. Thereby giving you control over your own trades. Independence:Instead of transferring monies to a broker's pool or towards deposits, you can manage your own demat and bank accounts when you trade through ICICIdirect.com. Trust:ICICIdirect.com comes to you from ICICI, the organization trusted by millions of Indians 3.4. ICICI DIRECT.COM: A/C opening charges AMC : Rs. 750 : Rs 500 We can trade into NSE, BSE, Derivatives, Mutual funds, Personal Finance, IPOs online. Margin plus trading is provided in which customer can buy share up to 25 times of its margin

Page51

Brokerage Delivery Intraday

: 0.03% : 0.75% : 0.07%

(Exclusive of service tax for 12.24% & Service Transaction Tax) 3.5. DEAL CLINCHERS VS ICICIDIRECT.COM:1. 2. 3. 4. Brokerage is 0.75 %( Delivery) and 0.07 %( Intraday). Margin of RS 5000/- is necessary to maintain in ICICI Bank A/C. BTST facility is provided only on 127scrip. While watching applet, only one-company rates can be seen and we have to refresh it again and again to update the rates. 5. 6. Limited toll free numbers are provided, on 21st call RS 20/- are charged. Compulsion to have bank a/c with ICICIBANK and your saving A/C is attached with ICICI trading A/C. ICICIDIRECT has authority to debit your saving A/C directly without customer informing about this. 7. 8. 9. Demat transaction charges are included in brokerage. Research reports are provided at RS 450/-p.a. Poor online Interface: Slow website interface with no real-time quotes creates dissatisfaction among high frequency traders. 10. Margin trading restriction:The margin trading system is available up to 2:45 p.m. with outstanding net positions under margin segment automatically squared off at any time between 2:45 3:30 p.m.Thus no control of square off price. 11.Morning Trades Issue :-Being one of the websites with largest no. of after hour orders are pushed 1st thing in the morning, creates a choking of orders to the exchange, causes confirmations for new order placed during the early morning trades. 12. Only Intraday Margin exposure:-The margin exposure of 3 or 4 times is only provided which delay of

for intraday.

Page52

Sharekhan is online stock trading company of SSKI Group, provider of India-based investment banking and corporate finance service. Sharekhan is one of the largest stock broking houses in the country. S.S. Kantilal Ishwarlal Securities Limited (SSKI) has been among Indias leading broking houses for more than a century. Sharekhan's equity related services include trade execution on BSE, NSE, Derivatives, commodities, depository services, online trading and investment advice. Trading is available in BSE and NSE. Along with Sharekhan.com website, Sharekhan has around 510 offices (share shops) in 170 cities around the country. Share khan has one of the best state of art web portal providing fundamental and statistical information across equity, mutual funds and IPOs. You can surf across 5,500 companies for in-depth information, details about more than 1,500 mutual fund schemes and IPO data. You can also access other market related details such as board meetings, result announcements, FII transactions, buying/selling by mutual funds and much more.

3.6. Type of Account

Sharekhan Classic account Allow investor to buy and sell stocks online along with the following features like multiple watch lists, Integrated Banking, demat and digital contracts, Real-time portfolio tracking with price alerts and Instant credit & transfer. Online trading account for investing in Equities and Derivatives Free trading through Phone (Dial-n-Trade) Two dedicated numbers for placing your orders with your cellphone or landline. Automatic funds transfer with phone banking (for Citibank and HDFC bank customers) Simple and Secure Interactive Voice Response based system for authentication get the trusted, professional advice of our telebrokers After hours order placement facility between 8.00 am and 9.30 am

Page53

 Integration of: Online trading + Bank + Demat account Instant cash transfer facility against purchase & sale of shares Investments and trade confirmations by e-mail Single screen interface for cash and derivatives Sharekhan Speed Trade account This accounts for active traders who trade frequently during the day's trading session. Following are few popular features of SpeedTrade account. Single screen interface for cash and derivatives Real-time streaming quotes with Instant order Execution & Confirmation Hot keys similar to a traditional broker terminal Alerts and reminders Back-up facility to place trades on Direct Phone lines

Brokerage: Some stock trading companies charge direct percentage while others charge a fixed amount per Rs 100. Sharekhan charges 0.5% for inter day shares and 0.1% for intraday or you could say Sharekhan charges 50 paisa per Rs 100.

Advantages of Sharekhan: 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. Sharekhan has ability to transfer funds from most banks. Unlike ICICI Direct, HDFC Sec, etc., so investor not really needs to open an account with a particular bank as it can establish link with most modern banks.

Disadvantages of Sharekhan: They charge minimum brokerage of 10 paisa per stock would not let you trade stocks below 20 rs. (If you trade, you will loose majority of your money in 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.
Page54

The indiaInfoline group, comprising the holding company, India Infoline Limited and its whollyowned subsidiaries, straddle the entire financial space with offerings ranging from Equity research, Equities and derivatives trading, Commodities trading, portfolio management services, Mutual Funds, Life Insurance, Fixed Deposits, Gold Bonds and other small savings instruments to loan products and investment banking. Website of India Infoline for trading is www.5paisa.com. The company has a network of 976 business locations (branches and Sub-brokers) spread across 365 cities and towns. Today it has more than 800000 clients 3.7. Trading Platform 5Paisa offers 2 different online trading terminals to its customers:

Investor Terminal (IT) Investor Terminal is 5Paisa's equity trading terminal for low volume trader. This is web based Terminal and could access from anywhere. This product provides limited features in comparison of Trader Terminal,which is another product provided by 5Paisa.

Trader Terminal (TT) Trader Terminal is for high volume equity traders. Trader Terminal provides high volume trading with powerful interface and fast order execution.

Brokerage and Account opening fees: Account opening fees Rs 500/- onetime non refundable Brokerage Brokerage: 5 paisa offers charge only 5 paisa for Rs100 of intraday trade done, which is 0.05% brokerage. In case of in delivery trade, they charge an additional 0.20% for back office and securities handling.

Page55

CHAPTER-4

DATA ANALYSIS & INTERPRETATION

Page56

4.1. Analysis and Interpretation

For the successful summer training the manipulation of certain things, concepts, and symbols for the purpose of generalization is inevitable. Research is simply the pursuit of truth with the help of the study.

Sample size 100

Analysis and Interpretation on base of market questionnaire fill-up

1. For how long you have been trading with on line-trading? (a)1 year (b) 2 year (c) 3 year (d) 4 year

45 40 35 30 25 20 15 10 5 0 YEAR
3 year 4 year 1 year

2 year

According to this survey we find that 44% people says that we are investing the money online from one year and 26% people says that we are investing the money online from 2 years and 19% to 11% people says that we are investing money online from 3 to 4 year. so we can say that now online trading is very popular in the modern market.

Page57

2. How will you describe your experience with on-line trading till date? (a) Very easy to operate (b) Very difficult to operate (c) Not secure (d) Any other

According to this survey we find that 60% of people find very easy to operate and 15% people find difficult two operate and 10% and 15% people find no secure and any other. So we can say that online trading is very simple to operate and easy to understand.

3. What amount of money you invest normally? (a) 50000 (c) 150000 to 2000000

(b) 100000 to 150000 (d)Any other amount

According to this survey we find that 35% of people invest money normally 50000 and 28% of people invest money 10000to15000 and 23% and 14% of people invest money between 15000to20000 and any other. So we can say that the people are not investing more money in the share market because there is a great risk involved while doing the trading.
Page58

4.

How often do you trade? (a)Daily (c) Monthly (b) Weekly (d) More than one month

40 35 30 25 20 15 10 5 0 Time

daily weekly monthly more than 1 month

According to this survey we find that 10% of people do trade Daily and 40% people do trade weekly and 32% and 18% people do trade month and more than month. So we can say that people are generally invested in stock market weekly basis.

5. Which trading you prefer? (a) On line trading (c) Both

(b) Manual trading

50
40 30
On line trading
Offline trading Both

20
10 0 Relationship

According to this survey we find that 20% people prefer online trading and 32% people prefer offline trading rest of 48% people prefers both. So we can say that mostly people are awareness about the on line trading and because of this reason the mostly people are optimizing offline trading.
Page59

6. Whether online trading settled in Indian investor psyche (a) Yes (b) No

70 60 50 40 30 20 10 0 Settleled

Yes No

According to this survey we find that 30% people says yes and 70% people says no. so we can find that on line trading is not settled in the Indian psyche because some people are not experience towards online trading.

7. What shortcomings do you feel in Indian On-Line trading? (a) Lack of awareness the investors about on-line trading (b) Shortage of domestic technical expertise (c) Shortage Of Infra structure (c) Any other
50 40 30 20
Lack of awareness

Shortage of expertise
Shortage Of Infra structure any other

10 0 Shortcomings

According to this survey we find that 15% of people says lack of awareness 49% says Shortage of expertise and 14% people says Shortage Of Infra structure and 22% says any other. So we can say that mostly people are shortage of experience about the Indian derivatives market or share market.

Page60

8. Which media would you prefer the most for investment? (a) T.V (b) Newspaper (c) Magazines (D) Journals

According to this survey we find that 55% people Prefer T.V and 25% people prefer newspaper and 10% people prefer magazines and 10% people prefer journals. So we can suggest that mostly people are very easily grapped the knowledge through T.V.

9. How did you come to know about bonanza portfolio Ltd.?

10. The USP of Bonanza Portfolio Ltd.

Page61

11. Biggest Competitor of Bonanza Portfolio Ltd.

12. The most preferred product at Bonanza

13. The areas of improvement for Bonanza Portfolio Ltd.

Page62

Page63

CHAPTER-5 SWOT Analysis

Page64

5.1. 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.

STRENGTH
It is works since 1994. Service @ 24x7 & support Distribution network Marketing Products Bonanza has a young dynamic team of 2200 professionals.

WEAKNESS
Customer Satisfaction Branding Competition from Banks Covering difficult process. Covering difficult process. 260cities in so 260 in cities so

planning

planning

OPPORTUNITIES
Ever increasing market Improving technology Unfulfilled needs of customers. Education level

THREATS
New competitors Technology based business Law and Order varies in different time.
Up and down in share

market indices.

A new trend acquisitions and mergers are leading to the entrance of large number of international players in the domestic market. This may lead to the stiff competition among them.

Page65

LIMITATIONS OF THE PROJECT

Page66

5.2. LIMITATIONS OF THE PROJECT:A good report tells us the results of the study. But every project has its own Limitations. These Limitations can be in terms of:

Services of competitors: - We cannot give proper comment on competitors services till we use it. But I try to collect as accurate information as possible. As we all know services are intangible and we cannot predict its quality, it is a thing to feel not to see.

No proper assurance of right information: - The main data sources are websites, telephonic information and offices visit. The data on websites might be possible, not get updated. The marketing person might be possible, is not through with all which I contacted. Sometimes, they try to hide information. concepts to

Lack of awareness of 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.

Mostly people comfortable with traditional brokers: - As people are doing trading from their respective brokers, they are quite comfortable to trade via phone.

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: - Some respondents either do not have time or willing does not respond, as they are quite annoyed with the phone call.

Inaccurate Leads:- Sometimes leads are provided which had error in it which varies from only 5 digit phone number to wrong phone number

Misleading concepts:- Some people think that Shares are too risky and just another name of gamble but they dont know its not at all that risky for long investors.

Page67

CHAPTER-6 SUGGESTIONS

Page68

6.1. SUGGESTIONS:
1. More Awareness program has to be conducted by Bonanza consultants so that already aware investor takes the challenge to invest in this commodity future market. Because since this was new to the market and also risky but gives good return. so it can be done through by giving advertisements in local channels, News papers, by sending E-mail to present customers etc 2. From survey it is found that most of the potential customers are concerned about the genuine information and moderate brokerage so Bonanza can look upon this. If it can give good information and charge moderate brokerage it will help to attract more and more customers.

Page69

FACTS AND FINDINGS:

Page70

6.2. FACTS AND FINDINGS:

Sample size: Total sample size was 100

Data were collected from different places of the Jaipur by direct asking and answering them at canopy.

Age group:
All the data were collected from those candidates who are 21 year and above age group they were decided in this format. Responses: There were very few people who agreed to give replies by requesting once. Most of them have suffered the problem of time. Rarely respondents gave their contact numbers, even if it was told to them that this is an academic research for summer training project.

6.3. Findings according to client of Bonanza Portfolio Ltd:

According to the survey most of the customers of Bonanza Portfolio Ltd. says that it is pocket friendly. 1. Coming to faith 70% satisfaction Bonanza Portfolio Ltd. Is better than others stock brokers due to customers satisfaction. 2. Main purposes of investments are returns & liquidity. 3. Investors take risk as well as returns into their mind while making the investment. 4. Businessmen are more interested in the stock market than the others. 5. Commodity market is less preferred by the investors. 6. People want to invest their money in the security market but they havent the proper knowledge. 7. People are not aware of hedging in stock market. 8. People pay more emphasis on brokerage than service provided by brokerage houses. 9. There are 59% people who invest in stock market and 21% who invest in mutual funds. 7% people in commodity. 10. There are 36% people who are doing trading from Bonanza Portfolio Ltd. 11. The current brokerage rate 65% people are lower than Bonanza Portfolio Ltd. 12. There are 46% people who prefer online trading. 13. There are 70% people who already know about Bonanza Portfolio Ltd broking firm. 14. in which 40% people having knowledge of product & services of Bonanza Portfolio Ltd

Page71

CONCLUSION

Page72

6.3. CONCLUSION:
Online trading is the new concept in the stock market. In India, online trading is still at its infancy stage. Online trading has made it easy to trade in the stock market as now people can trade while sitting at their home. Now stock market is easily accessible by the people. There are some problems while doing the trade through the internet. Major problem faced by online trader is that the investors are loyal to their traditional brokers; they rely upon the suggestions given by their brokers. Another major problem is that the people don't have full knowledge regarding online trading. They find it difficult to trade themselves, as a wrong entry made by them, can bring them huge losses.

Nevertheless to say that online trading has the bright future as the percentage of the trade done through online trading is increasing day by day.

Page73

6.4. BIBLIOGRAPHY
1. www.bonanzaonline.com 2. www.amfiindia.com 3. www.uniconindia.in 4. www.capitalmarket.com 5. www.irdaindia.org 6. www.bseindia.com 7. www.sebi.gov.in 8. www.valuenotes.com 9. www.capitalmarket.com 10. www.bbcworld.com 11. www.thehindubusinessline.com 12. www.wikipedia.com

Books Khatri Dhanesh, Security analysis and portfolio management, Vol. 1, Macmillan publishers India Ltd. Mumbai.

Page74