A

PROJECT REPORT
ON

“Comparative Analysis of Stock

Brokers in Ajmer Region”
At
SHAREKHAN PVT. LTD.

In partial fulfillment for the degree of

Master of Business Administration

(Session 2008-2010)

Centum Learning Center, Ajmer

Submitted to: - Submitted by :-

Mr. Adrish Bosu Bharat Jain

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2
 DECLARATION

I, Bharat Jain, student of Centum Learning Center, Ajmer ( A Bharti

Associate) accredited by Annamalai University, Chennai hereby
declare that the project entitled “Comparative Analysis Of Stock
Brokers In Ajmer Region” at SHAREKHAN Ltd., is the original
work done by me and the information provided in the study is authentic
to the best of my knowledge. This study report has not been submitted to
any other institution or university for the award of any other degree.

This report is based on my personal opinion hence cannot be

referred to legal purpose.

(Bharat Jain)

Date: -

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 CONTENTS
ACKNOWLEDGEMENT 7
2. INTRODUCTION 10
 Introduction to stock exchange
 Introduction of the company
3. COMPANY PROFILE 18
4. REVIEW OF LITERATURE 37
5. OBJECTIVE OF STUDY
6. RESEARCH METHODOLOGY 40
 Type of research
 Sample design
 Size of sample
 Sources of data collection
7. COMPARATIVE ANALYSIS 46
8. FINDING & ANALYSIS 50
9. SUGGESTIONS 60
10. LIMITATIONS 61
11. CONCLUSION 62
12. APPENDIX(Questionnaire) 63
13. BIBLIOGRAPHY 67

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 PREFACE

“A good broker system must be able to cope with an extremely

complex and dynamic environment.”

The microstructure of the stock market in which brokers work is highly

dynamic and volatile. Many stocks are available to be bought and sold,
each exhibiting its own patterns and characteristics that are highly
unpredictable. With so many options and considerations that need to be
taken into account, it is an extremely arduous task for a broker to
investigate aspects of the stock market and consistently provide effective
advice to their clients.

Thus, brokers perform their day-to-day tasks with the aid of a broker
system. Such a system should provide tools for interacting with
exchanges and performing analysis. As a consequence, these broker
systems are quite large and complicated by themselves.

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This research aims is to analysis Stock broker on the basis of their
services, products, growth, and their subsidiaries. Because Stockbrokers
are one of the main participants in stock exchanges worldwide, they
often act as an agent for their clients, making trades on their behalf.
They also act as advisors, providing suggestions to their clients on what
stocks to buy and sell.

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 ACKNOWLEDGEMENT

Preservation, inspiration and motivation have always played a key role

in the success of any venture. In the present world of competition and
success, training is like a bridge between theoretical and practical
working; willingly I prepared this particular Project. First of all I would
like to thank the supreme power, the almighty god, who is the one who
has always guided me to work on the right path of my life.

I express my sincere thanks to Mr. Adrish Bosu (Center Head),

Ma’am Arpita Dakshini (Delivery Head) & others faculty members of
M.B.A. department, for the valuable suggestion and making this project
a real successful.
Last but not least, my sincere thanks to my parents and friends
who directly or indirectly helped me to bring this project into the final
shape.

BHARAT JAIN

DATE:-

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 Executive Summary
There is growing competition between brokerage firms in post reform
India. For investor it is always difficult to decide which brokerage firm
to choose.
Research was carried out to find which brokerage house people prefer
and to figure out what people prefer while investing in stock market.
This study suggest that people are reluctant while investing in stock and
commodity market due to lack of knowledge
Main purpose of investment is returns and liquidity, commodity market
is less preferred by investors due to lack of awareness. The major
findings of this study are that people are interested to invest in stock
market but they lack knowledge.
Through this report we were also able to understand, what are our
Company’s (Sharekhan Ltd.) positive and strong points, on the basis of
which we come to know what can be the basis of pitching to a potential
client. We also gave suggestions to the company, what improvement can
be done to our product.

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 INTRODUCTION
In most industrialized countries, a substantial part of financial
wealth is not managed directly by savers, but through a financial
intermediary, which implies the existence of an agency contract between
the investor (the principal) and a broker or portfolio manager (the agent).
Therefore, delegated brokerage management is arguably one of the most
important agency relationships intervening in the economy, with a
possible impact on financial market and economic developments at a
macro level.

In most of the metros, people like to put their money in stock

options instead of dumping it in the bank-lockers. Now, this trend pick
pace in small but fast developing cities like Chandigarh, Gurgaon, Jaipur
etc. My research is based on the residents of Chandigarh and its nearby
areas.

As the per-capita-income of the city is on the higher side, so it is

quite obvious that they want to invest their money in profitable ventures.
On the other hand, a number of brokerage houses make sure the hassle
free investment in stocks. Asset management firms allow investors to
estimate both the expected risks and returns, as measured statistically.
There are mainly two types of Portfolio management strategies.

1. Passive Portfolio Strategy

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 2. Active Portfolio Strategy

1. Passive Portfolio Strategy:

A strategy that involves minimal expectation input, and instead

relies on diversification to match the performance of some market
index. A passive strategy assumes that the marketplace will reflect
all available information in the price paid for securities

2. Active Portfolio Strategy:

A strategy that uses available information and forecasting techniques

to seek a better performance than a portfolio that is simply diversified
broadly.

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BACKGROUND OF STOCK EXCHANGE IN INDIA

The emergence of stock market can be traced back to 1830. In Bombay,

business passed in the shares of banks like the commercial bank, the
chartered mercantile bank, the chartered bank, the oriental bank and the
old bank of Bombay and shares of cotton presses. In Calcutta,
Englishman reported the quotations of 4%, 5%, and 6% loans of East
India Company as well as the shares of the bank of Bengal in 1836. This
list was a further broadened in 1839 when the Calcutta newspaper
printed the quotations of banks like union bank and Agra bank. It also
quoted the prices of business ventures like the Bengal bonded
warehouse, the Docking Company and the storm tug company.

Between 1840 and 1850, only half a dozen brokers existed for the
limited business. But during the share mania of 1860-65, the number of
brokers increased considerably. By 1860, the number of brokers was
about 60 and during the exciting period of the American Civil war, their
number increased to about 200 to 250. The end of American Civil war
brought disillusionment and many failures and the brokers decreased in
number and prosperity. It was in those troublesome times between 1868

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and 1875 that brokers organized an informal association and finally as
recited in the Indenture constituting the “Articles of Association of the
Exchange”. On or about 9th day of July,1875, a few native brokers doing
brokerage business in shares and stocks resolved upon forming in
Bombay an association for protecting the character, status and interest of
native share and stock brokers and providing a hall or building for the
use of the members of such association.

As a meeting held in the broker’ Hall on the 5 th day of February, 1887, it

was resolved to execute a formal deal of association and to constitute the
first managing committee and to appoint the first trustees. Accordingly,
the Articles of Association of the Exchange and the Stock Exchange was
formally established in Bombay on 3rd day of December, 1887. The
Association is now known as “The Stock Exchange”.

The entrance fee for new member was Re.1 and there were 318 members
on the list, when the exchange was constituted. The numbers of
members increased to 333 in 1896, 362 in 1916and 478 in 1920 and the
entrance fee was raised to Rs.5 in 1877, Rs.1000 in 1896, Rs.2500 in
1916 and Rs. 48,000 in 1920. At present there are 23 recognized stock
exchanges with about 6000 stock brokers. Organization structure of
stock exchange varies.

14 stock exchanges are organized as public limited companies, 6 as

companies limited by guarantee and 3 are non-profit voluntary

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organization. Of the total of 23, only 9 stock exchanges have been
permanent recognition. Others have to seek recognition on annual basis.

These exchange do not work of its own, rather, these are run by some
persons and with the help of some persons and institution. All these are
down as functionaries on stock exchange. These are

1. Stockbrokers
2. Sub-broker
3. Market makers
4. Portfolio consultants etc.

1.) Stockbrokers

Stock brokers are the members of stock exchanges.

These are the persons who buy, sell or deal in securities. A certificate of
registration from SEBI is mandatory to act as a broker. SEBI can impose
certain conditions while granting the certificate of registrations. It is
obligatory for the person to abide by the rules, regulations and the buy-
law. Stock brokers are commission broker, floor broker, arbitrageur etc.

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 Detail of registered brokers

Total no. of registered Total no. of sub-brokers as

brokers as on 31.03.2008 on 31.03.2008

9000 24,000

2.) Sub-broker

A sub-broker acts as agent of stock broker. He is not a

member of a stock exchange. He assists the investors in buying, selling
or dealing in securities through stockbroker. The broker and sub-broker
should enter into an agreement in which obligations of both should be
specified. Sub-broker must be registered SEBI for a dealing in securities.
For getting registered with SEBI, he must fulfill certain rules and
regulation.

3.) Market Makers

Market maker is a designated specialist in the

specified securities. They make both bid and offer at the same time. A
market maker has to abide by bye-laws, rules regulations of the
concerned stock exchange. He is exempt from the margin requirements.

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

4.) Portfolio consultants

A combination of securities such as stocks,

bonds and money market instruments is collectively called as portfolio.
Whereas the portfolio consultants are the persons, firms or companies
who advise, direct or undertake the management or administration of
securities or funds on behalf of their clients.

Partial fulfillment for degree of M.B.A. programmed, we received the

opportunity from Sharekhan Ltd. for our summer training project report.
It is basically a stock brokering company which deals in security and
derivative market, Commodity market, mutual funds and Insurance etc.

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 INTRODUCTION OF THE COMPANY
Sharekhan is one of the leading retail brokerage of Citi Venture which is
running successfully since 1922 in the country. Earlier it was the retail
broking arm of the Mumbai-based SSKI Group, which has over eight
decades of experience in the stock broking business. Sharekhan offers its
customers a wide range of equity related services including trade
execution on BSE, NSE, Derivatives, depository services, online trading,
investment advice etc.
Earlier with a legacy of more than 80 years in the stock markets, the
SSKI group ventured into institutional broking and corporate finance 18
years ago. SSKI is one of the leading players in institutional broking and
corporate finance activities. SSKI holds a sizeable portion of the market
in each of these segments. SSKI’s institutional broking arm accounts for
7% of the market for Foreign Institutional portfolio investment and 5%
of all Domestic Institutional portfolio investment in the country. It has
60 institutional clients spread over India, Far East, UK and US. Foreign
Institutional Investors generate about 65% of the organization’s revenue,
with a daily turnover of over US$ 2 million.
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.
The objective has been to let customers make informed decisions and to
simplify the process of investing in stocks.

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 WORK STRUCTURE OF SHAREKHAN
Sharekhan has always believed in investing in technology to build its
business. The company has used some of the best-known names in the
IT industry, like Sun Microsystems, Oracle, Microsoft, Cambridge
Technologies, Nexgenix, Vignette, Verisign Financial Technologies
India Ltd, Spider Software Pvt Ltd. to build its trading engine and
content. The Citi Venture holds a majority stake in the company.
HSBC, Intel & Carlyle are the other investors.
On April 17, 2002 Sharekhan launched Speed Trade and Trade Tiger,
are net-based executable application that emulates the broker terminals
along with host of other information relevant to the Day Traders. This
was for the first time that a net-based trading station of this caliber was
offered to the traders. In the last six months Speed Trade has become a
de facto standard for the Day Trading community over the net.
Share khan’s ground network includes over 900+ Share shops in 130+
cities in India.
The firm’s online trading and investment site - www.sharekhan.com -
was launched on Feb 8, 2000. The site gives access to superior content
and transaction facility to retail customers across the country. Known for
its jargon-free, investor friendly language and high quality research, the
site has a registered base of over 3 Lacs customers. The number of
trading members currently stands at over 7 Lacs. While online trading
currently accounts for just over 5 per cent of the daily trading in stocks
in India, Sharekhan alone accounts for 27 per cent of the volumes traded
online.

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The Corporate Finance section has a list of very prestigious clients and
has many ‘firsts’ to its credit, in terms of the size of deal, sector tapped
etc. The group has placed over US$ 5 billion in private equity deals.
Some of the clients include BPL Cellular Holding, Gujarat Pipavav,
Essar, Hutchison, Planet Asia, and Shopper’s Stop.
Finally, Sharekhan shifted hands and Citi venture get holds on it.

PRODUCTS OFFERED BY SHAREKHAN

1- Equity Trading Platform (Online/Offline).

2- Commodities Trading Platform (Online/Offline).
3- Portfolio Management Service.
4- Mutual Fund Advisory and Distribution.
5- Insurance Distribution.

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REASONS TO CHOOSE SHAREKHAN LIMITED

Experience
SSKI has more than eight decades of trust and credibility in the Indian
stock market. In the Asia Money broker's poll held recently, SSKI won
the 'India's best broking house for 2004' award. Ever since it launched
Sharekhan as its retail broking division in February 2000, it has been
providing institutional-level research and broking services to individual
investors.

Technology
With their online trading account one can buy and sell shares in an
instant from any PC with an internet connection. Customers get access
to the powerful online trading tools that will help them to take complete
control over their investment in shares.

Accessibility
Sharekhan provides ADVICE, EDUCATION, TOOLS AND
EXECUTION services for investors. These services are accessible
through many centers across the country (Over 650 locations in 150
cities), over the Internet (through the website www.sharekhan.com) as
well as over the Voice Tool.

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Knowledge
In a business where the right information at the right time can translate
into direct profits, investors get access to a wide range of information on
the content-rich portal, www.sharekhan.com. Investors will also get a
useful set of knowledge-based tools that will empower them to take
informed decisions.

Convenience
One can call Share khan’s Dial-N-Trade number to get investment
advice and execute his/her transactions. They have a dedicated call-
center to provide this service via a Toll Free Number 1800-22-7500 &
39707500 from anywhere in India.

Customer Service
Its customer service team assist their customer for any help that they
need relating to transactions, billing, demat and other queries. Their
customer service can be contacted via a toll-free number, email or live
chat on www.sharekhan.com.

Investment Advice
Sharekhan has dedicated research teams of more than 30 people for
fundamental and technical research. Their analysts constantly track the
pulse of the market and provide timely investment advice to customer in
the form of daily research emails, online chat, printed reports etc.

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Benefits
• Free Depository A/c
• Instant Cash Transfer
• Multiple Bank Option.
• Secure Order by Voice Tool Dial-n-Trade.
• Automated Portfolio to keep track of the value of your actual
purchases.
• 24x7 Voice Tool access to your trading account.
• Personalized Price and Account Alerts delivered instantly to your
Mobile Phone & E-mail address.
• Live Chat facility with Relationship Manager on Yahoo Messenger
• Special Personal Inbox for order and trade confirmations.
• On-line Customer Service via Web Chat.
• Enjoy Automated Portfolio.
• Buy or sell even single share
• Anytime Ordering.

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 Share khan offers the following products:-

CLASSIC ACCOUNT
This is a User Friendly Product which allows the client to trade through
website www.sharekhan.com and is suitable for the retail investors who
is risk-averse and hence prefers to invest in stocks or who do not trade
too frequently.

Features
• Online trading account for investing in Equity and Derivatives via
www.sharekhan.com
• Live Terminal and Single terminal for NSE Cash, NSE F&O & BSE.
• Integration of On-line trading, Saving Bank and Demat Account.
• Instant cash transfer facility against purchase & sale of shares.
• Competitive transaction charges.
• Instant order and trade confirmation by E-mail.
• Streaming Quotes (Cash & Derivatives).
• Personalized market watch.
• Single screen interface for Cash and derivatives and more.
• Provision to enter price trigger and view the same online in market
watch.

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SPEEDTRADE
SPEEDTRADE is an internet-based software application that
enables you to buy and sell in an instant.
It is ideal for active traders and jobbers who transact frequently
during day’s session to capitalize on intra-day price movement.

Features
• Instant order Execution and Confirmation.
• Single screen trading terminal for NSE Cash, NSE F&O & BSE.
• Technical Studies.
• Multiple Charting.
• Real-time streaming quotes, tic-by-tic charts.
• Market summary (Cost traded scrip, highest clue etc.)
• Hot keys similar to broker’s terminal.
• Alerts and reminders.
• Back-up facility to place trades on Direct Phone lines.
• Live market debts.

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DIAL-N-TRADE
Along with enabling access for trade online, the CLASSIC and
SPEEDTRADE ACCOUNT also gives Dial-n-trade services. With this
service, one can dial share khan’s dedicated phone lines 1-800-22-7500,
3970-7500.
Beside this, Relationship Managers are always available on Office
Phone and Mobile to resolve customer queries.

Share Mobile
Share khan had introduced Share Mobile, mobile based software
where one can watch Stock Prices, Intra Day Charts, Research & Advice
and Trading Calls live on the Mobile.
(As per SEBI regulations, buying-selling shares
through a mobile phone are not yet permitted.)

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PREPAID ACCOUNT
Customers pay Advance Brokerage on trading Account and enjoy
uninterrupted trading in their Account. Beside this, great discount are
also available (up to 50%) on brokerage.
Prepaid Classic Account : - Rs. 2000
Prepaid Speed trade Account : - Rs. 6000

IPO ON-LINE
Customers can apply to all the forthcoming IPO online. This is
quite hassle-free, paperless and time saving. Simply allocate fund to IPO
Account, Apply for the IPO and Sit Back & Relax.

Mutual Fund Online

Investors can apply to Mutual Funds of Reliance, Franklin
Templeton Investments, ICICI Prudential, SBI, Birla, Sundaram, HDFC,
DSP Merrill Lynch, PRINCIPAL, TATA and others with Sharekhan.

Zero Balance ICICI Saving Account

Sharekhan had tied-up with ICICI bank for Zero Balance Account
for Share khan’s Clients. Now their customers can have a Zero Balance
Saving Account with ICICI Bank after your demat Account creation
with Sharekhan.

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 CHARGE STRUCTURE

Fee Structure for General Individuals: -

Charge Classic Account Speed Trade Account

Account Opening Rs. NIL Rs. NIL
Monthly Commitment Rs. NIL Rs. NIL
Brokerage Intra-day – 0.04 % Intra-day - 0.05%
Delivery - 0.40 % Delivery - 0.50%
* Taxes as per govt.

Depository Charges

Account Opening Charges Rs. NIL

Annual Maintenance Charges Rs. NIL first year.
Rs. 300/= p.a. from second
calendar year onward

EXPOSURE: 4 TO 6.7 TIMES (ON MARGIN MONEY)

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 MAJOR PLAYERS IN THE REGION

1. Karvy

2. Indiainfoline

3. ICICI direct

4. HDFC security

5. India bulls

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

History of Karvy :- The birth of Karvy was on a modest scale in 1981.

It began with the vision and enterprise of a small group of practicing
Chartered Accountants who founded the flagship company, Karvy
Consultants Limited. They started with consulting and financial
accounting automation and carved inroads into the field of registry and
share accounting by 1985. Since then, karvy utilized its experience and
superlative expertise to go from strength to strength, to better their
services, to innovate, diversify and in the process, evolved as one of
India’s premier integrated financial service enterprise.

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 PRODUCT AND SERVICES OF KARVY GROUP

1. Karvy comtrade.

2. Karvy consultant ltd.

3. Karvy merchant banking.

4. Karvy global services ltd.

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 ICICI DIRECT

ICICI Web Trade Limited (IWTL) maintains www.icicidirect.com

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

PRODUCTS AND SERVICES OF ICICI DIRECT

1. Investing in Mutual funds

2. Personal Finance

3. Customer Service Features

4. IPO’s

5. Margin Trading

6. Margin PLUS Trading

7. Call Trade

8. Trading on NSE/BSE

9. Trade in derivatives

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 INDIAINFOLINE SECURITY PRIVATE LTD

India Infoline.com Securities Pvt. Ltd. is a wholly owned subsidiary of

India Infoline.com Ltd and is the stock broking arm of India
Infoline.com. The subsidiary was formed to comply with regulatory
guidelines. www.5paisa.com is a focused website for online stock
market trading. 5paisa.com is a trade name owned by the India
Infoline.com group. IILSPL has applied for trading membership of the
BSE under Securities and Exchange Board of India (Stock Brokers and
Sub-Brokers) Rules 1992.

IILSPL is in the business of providing broking services online via the

Internet ("E-broking Services") and has been permitted by the NSE by
way of registration permission no: NSEIL/CMO/INET/1103/2000 dated
03/July/2000, and will be applying for permission to the BSE, to
provide E-broking Services to its clients. IILSPL is a TRADING
MEMBER of the National Stock Exchange of India.

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 PRODUCT OFFERED BY IILSPL

Stock Market:-

 IILSPL deals in stock market by trading in equity and derivatives.

Personal Finance:-

 It Deals In Mutual Fund And Insurance.

Online Trading:-

 It provides services in stock and commodity trading (through

Internet).

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 HDFC SECURITIES

HDFC Securities is the subsidiary of HDFC (Housing Development

Financial Corporation). www.hdfcsec.com would have an exclusive
discretion to decide the customers who would be entitled to its online
investing services. www.hdfcsec.com also reserves the right to decide on
the criteria based on which customers would be chosen to participate in
these services .The present web site (www.hdfcsec.com) contains
features of services that they offer/propose to offer in due course. The
launch of new services is subject to the clearance of the regulators. i.e.
SEBI, NSE and BSE.

PRODUCT OFFERED BY HDFC SECURITY

• Online trading for Resident & Non Resident Indians.

• Cash-n-Carry on both NSE and BSE.
• Day trading on both NSE and BSE.
• Trade on Futures & Options on the NSE.
• Online IPO's.
• Telephone-based Broking (Equity & Derivatives).

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 INDIABULLS SECURITIES LIMITED

India bulls Securities Limited was incorporated as GPF Securities

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

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INDIABULLS CREDIT SERVICES LIMITED: -

India bulls Credit Services has been valued at Rs. 263 crore with the Rs.
87.6-crore infusion. India bulls Credit Services Ltd, the recently formed
subsidiary of broking firm, India bulls Financial Services Ltd. Farallon
Capital, a San Francisco-based private equity fund, and its affiliates have
acquired 33.3 per cent stake for Rs 87.6 crore.

INDIABULLS REAL ESTATE: -

India bulls through its group companies have entered Indian Real Estate
business in 2005. It is currently evaluating several large-scale projects
worth several hundred million dollars. India bulls became the first
company to bring FDI in Indian Real Estate through a JV with Farallon
Capital Management, a respected US based investment firm.

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 PRODUCT OFFERED BY INDIA BULLS

Equity & Debt Stock Broking

Insurance

Commodity trading

Depository Services

Derivatives Broking Services

Equity Research Services

Mutual Fund Distribution

IPO Distribution

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 REVIEW OF LITERATURE
According to SEBI, Professional Rating of market intermediaries, as a
concept, is a matter of debate and discussions. The need for rating is felt
not only from the point of view of greater disclosure requirements for
investor’s interests, considering the important role such intermediaries
play, being an interface between investors and exchanges but also from
the point of view of measuring the adequacy of systems and controls to
meet internal as well as external compliance requirements.

So that need for Intermediaries Rating services (Brokers), In view of the

developments that are taking place in the capital markets, the need to
constantly upgrade and improve systems and procedures in operation as
well as skill sets has gained considerable importance. Besides
compliance with regulatory requirements both in letter and spirit has
assumed significance so as to mitigate risk and ensure adequate
protection of investors’ interest.

37
And Rating objectives / benefits are rated entity would be in a position
to brand its image and capitalize the same for generating more business.
In a nutshell, the product may accrue significant benefits to all
stakeholders including the investors, stock brokers themselves, the
regulator and others who will benefit from the transparency and the
consequential focus on efficiency.

According to SEBI and Intermediaries Regulation and Supervision

Department, different factors are consider for rating process
Organization structure, Policy on Investors interest, Risk Management
Policy and System, Organization process and procedures, Management
policy on compliance, Financials, History/Background, Firm’s
positioning.

According to Michal Parness, Founder & CEO

Investors don’t Make Money in the Stock Market. One reason the
institutions make so much money is that they are trading. They
make money every time you buy or sell. They make money whether
you win or lose. That means that when you’re investing, you’re
basically just sitting there. You’re not going anywhere. You’re not
making money as an investor.

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Trading the Trend: The Only Way to Make Money in the Market

If you don’t know this already, “Trend Trading” means trading trends
based on human emotions. Not lagging indicators. Not complex
statistical analysis and not Ph.D. level mathematical equations. With
trend trading, you look for market movement. That could mean stocks
that are going to move up or down during the course of a day (intraday).
You’ll play the gaps up and down, often several days a week.

The “Trend trading” means being aware and taking advantage of trends
like the run-ups that happen around earning sessions. These are trends
that have worked time and time again in the market. They consistently
yield results.

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 Objective Of Research

Each research study has its own specific purpose. It is like to discover to
Question through the application of scientific procedure. But the main
aim of our research to find out the truth that is hidden and which has not
been discovered as yet. Our research study has two objectives:-

PRIMARY OBJECTIVE: -

How Share khan Ltd is best services providers as a stock broker in the
Tri-city region.

SECONDARY OBJECTIVE: -

1. To know about the awareness towards stock brokers and share

market.
2. To study about the competitive position of Sharekhan Ltd in
Competitive Market.
3. To study about the effectiveness & efficiency of Sharekhan Ltd in
relation to its competitors
4. To study about whether people are satisfied with Sharekhan Services
& Management System or not
5. To study about the difficulties faced by persons while Trading in
Sharekhan.

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 To study about the need of improvement in existing
Trading system.

RESEARCH METHODOLOGY

TYPES OF RESEARCH

On the basis of theoretical study a research has many types. All of these
are distributed on the nature of research. Some of these are like

1. Descriptive and Analytical

2. Qualitative and Quantitative

3. Conceptual and empirical

4. Applied and fundamental

5. One time research

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Our research is based on Descriptive, Qualitative and Quantitative
research.

Descriptive Research: -

Descriptive research includes surveys and fact finding enquires of

different kinds. The major purpose of descriptive research is description
of the state of affairs as it exists at present. Researcher has no control
over the variables of this type of research.

Qualitative Research: -

In our research we need comparison between different stock brokers. So

this based on all qualitative data. In short, Qualitative research is
especially important in the behavioral sciences where the aim is to
discover the underline motives of human behavior. Through such
research we can analyses various factors which motivate to people to
behave in a particular manner or which make people like or dislike a
particular thing.

Quantitative Research:-

Quantitative research is based on the measurement of quantity or

amount. It is applicable to phenomena that can be expressed in terms of
quantity. So we can use it in our research for collection of all the
numerical data.

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 SAMPLE DESIGN

“A sample design is a definite plan for obtaining a sample from a given

population. It refers to the technique or the procedure the researcher
would adopt in selecting item for the sample”

Generally Sample designs are two types

1. PROBABILITY RESEARCH DESIGN

2. NON PROBABILITY RESEARCH DESIGN

We used the probability research design.

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 SAMPLING UNITS

Sampling unit may be a geographical one, such as state, district, village

etc. The researcher will have to decide one or more of such units that he
has to select for his study.

In my research study Ajmer as a sampling unit.

SIZE OF SAMPLE

“This refers to the number of items to be selected from the universe to

constitute a sample”

In our research sample size is 100.

But we also study the 5 stock broker companies related to security &
commodity market like India-Infoline, ICICI direct, HDFC securities,
Karvy consultant ltd. for the appropriate collection of the information.

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 SOURES OF DATA COLLECTION

While deciding about the method of data collection to be used for the
study the researcher should keep to types of data.

1. Primary

2. Secondary Data.

We use in our research primary data, as well as secondary data. Primary

means collected a fresh, and the first time data and secondary means
which are already available like annual report, magazines etc.

Survey Method: -

Survey refers to the method of securing information concerning

phenomena under study from all or selected number of respondents of
the concerned area. In a survey the investigator examines those
phenomena which exist in the universe independent of his action. We
used the Scheduling Method.

Scheduling: -

In this method the enumerators along with schedules, go to

respondents, put to them the questions from the Performa in the order
the questions are listed and recorded the replies in the space meant for
the same in the Performa.

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 COMPARATIVE ANALYSIS
After the whole study, we find out the following results:

Results on the Basis of charges

There are the two type of the transaction:-

1. Intra-day based

2. Delivery based

All the figures are in paisa/100 rupees.

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Comment: -

According to the survey HDFC securities charge maximum brokerage as

compare to others whereas India Infoline Ltd. charges only 0.20 paisa on
maximum investment.

Results On the basis of Account Opening Charges

HDFC Securities Ltd: -

Account opening charges w.e.f. April 2005 is as follows: - Rs.749, if the
customer has an existing relationship with HDFC

Share Khan Ltd: -

There is no ACCOUNT OPENING CHARGES but require margin

money of Rs 5000 for trading purposes.

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ICICI Direct:-

A one-time charge of Rs. 720 at the time of account opening will be

charged. You may later upgrade your Invest account to an ICICI
direct.com share trading account when you desire to trade in equity.

India Info line: -

There is a nominal charge of Rs. 555 only towards stamp duty, legal and
processing fees for opening the account. This includes the registration
and account opening charges. Bank and Depository Participant (DP)
account opening charges, if applicable, are payable separately.

KARVY Consultants Ltd: -

Account Opening Charges Are Rs. 452 But now SEBI banned on
opening of new Demat account of Karvy.

India bulls: -

Account opening charges are Rs. 900. There is no AMC and no margin
money is required.

Comment: -

India Bulls charge maximum account opening charges but there are no
such charges in Share khan pvt. Ltd.

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 Results on the basis of Customer Preferences

1. According to survey 70 % peoples are satisfied with Sharekhan Ltd

because of their RM’s facility and power of Sharekhan Ltd software.

2. According to survey, Sharekhan Ltd open new branches for

individually handle to their customer, but in ICICI direct, HDFC
security there is no separate offices for this .So people prefer Sharekhan
Ltd.

Results On The Basis Of Facilities

Basis of Sharekha Karv India ICIC India HDFC

difference n Ltd. y Infolin I bulls
e direct
Share Yes Yes Yes Yes Yes Yes
trading
Commodit Yes Yes Yes Yes Yes Yes
y trading

d-mat Yes No Yes Yes Yes No

opening
rights

Karvy and HDFC Securities are not providing complete range of

trading facilities.

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 FINDINGS & ANALYSIS

1) Do you know about investment options available?

KNOWLEDGE %AGE

Yes 80%

No 20%

TOTAL 100

COMMENT

Only 80% people know the exact meaning of investment. Because of

remaining 20% take his/her residential property as an investment.

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According to law purpose this is not an investment because of it is not
create any profit for the owner.

2) Most preferable investment scenario.

INVESTMENT %AGE
SCENARIO

Banks 24%

Derivatives & 28%

securities market

Insurance 4%
Bonds 20%

Real estate 20%

Others 4%

TOTAL 100

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COMMENT

Today scenario is changed so that most area covered by the derivative

and securities market. It is 28% of the total population.

3) What is the basic purpose of your investment?

INVESTMENT PURPOSE PERCENTAGE

Liquidity 30%
Returns 25%
Capital appreciation 10%
Tax benefits 20%
Risk covering 5%
Others 10%
TOTAL 100

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 COMMENT: -

75% people are interested in liquidity, returns and tax benefits. And
remaining 25% are interested in capital appreciations, risk covering, and
others.

4) Most important things you take into your mind while making
investments?

FACTOR %AGE

Risk 8%

Returns 17%
Both 75%
TOTAL 100

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COMMENT

75% people are considered the both factors risk as well as returns but,
only 25% considered the risk or returns factor.

5) Awareness related to security markets

KNOWLEDGE PERCENTAGE
Complete 8%
Partial 75%
Nil 17%
TOTAL 100

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COMMENT

On that basis, we conclude that 17% people know nothing about the
securities investments and 75% people have partial knowledge about it,
so, some promotional activities are required for increasing the awareness
about security market.

6) Do you have any de-mat & trading account?

ACCOUNTS PERCENTAGE
Yes 60%
No 40%
TOTAL 100%

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COMMENT

Only 75% respondents have de-mat and trading account and remaining
25% says no because they don’t know why shares move up and down.

7) In which company you have d-mat and trading account?

COMPANY PERCENTAGE
SHAREKHAN 38%

INDIAINFOLINE 20%

ICICI DIRECT 14%

INDIA BULLS 12%
KARVY 9%
Others 7%

TOTAL 100

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COMMENT
In Share khan Ltd 38% respondents have de-mat & trading account
because of better services and no annual maintenance and other charges.

8) Specify the reason of satisfaction with the current broking house.

SATISFACTION PERCENTAGE
Operating expenses 18%
Services 25%
Brokerage 57%
TOTAL 100

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 FINDINGS
 According to the survey most of the customers of “Sharekhan Ltd” says
that it is pocket friendly.
 Coming to faith 70% say Sharekhan Ltd is better than others stock
brokers due to customers satisfaction.
 Lack of promotional activities undertaken by Sharekhan securities Ltd.
in Ajmer Region.
 Main purposes of investments are returns & liquidity.
 Investors take risk as well as returns into their mind while making the
investment.
 Businessmen are more interested in the stock market than the others.
 Commodity market is less preferred by the investors.
 People want to invest their money in the security market but they
haven’t the proper knowledge.
 People are not aware of hedging in stock market.
 People pay more emphasis on brokerage than service provided by
brokerage houses.

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 SUGGESTIONS

 Commitment should be equalized for every person.

 Provide the facility of free demonstrations for all.
 Improvement in the opening of De-mat & contract notice procedure
is required.
 There should be a limited number of clients under the relationship
manger. So that he can handle new as well as old customer properly.
 Some promotional activities are required for the awareness of the
customer.
 People at young age should be encouraged to invest in stock market.
 Seminars should be held for providing information to prospective
and present customers.

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 LIMITATIONS

 As only AJMER dealt in survey so it does not represent the view

of the total Indian market.

 Size of the research may not be substantial.

 There was lack of time on the part of respondents.

 The survey was carried through questionnaire and the questions

were based on perception.

 There may be biasness in information by market participant.

 Complete data was not available due to company privacy and

secrecy.

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 CONCLUSION
On the basis of the study it is found that Share khan Ltd is better services
provider than the other stockbrokers because of their timely research and
personalized advice on what stocks to buy and sell. Share khan Ltd.
provides the facility of Trade tiger as well as relationship manager
facility for encouragement and protects the interest of the investors. It
also provides the information through the internet and mobile alerts that
what IPO’s are coming in the market and it also provides its research on
the future prospect of the IPO.

Study also concludes that people are not much aware of commodity
market and while it’s going to be biggest market in India.

The company should also organize seminars and similar activities to

enhance the knowledge of prospective and existing customers, so that
they feel more comfortable while investing in the stock market.

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 APPENDIX

QUESTIONNAIRE

DATE:

NAME
OCCUPATION
AGE
CONTACT NO.

1) Do you know about Investment options available?

a) Yes b) No

2) Do you know about the different types of investment alternatives?

a) Insurance & mutual funds b) Banks

c) Real estate d) Share market

e) Commodity f) Others

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3) What is the basic purpose of your investment?

a) Liquidity b) Returns

c) Capital appreciation d) Risk covering

e) Tax benefits

4) What are the most important things you take into account, while
making any investment?

a) Risk b) Returns c) Both

5) Do you have any knowledge of share markets?

a) Partial b) Complete c) Nil

6) Do you have any D-mat & Trading account?

a) Yes b) No

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7) In which company you have D-mat & Trading account?

a) Sharekhan Ltd b) Karvy

c) Indiainfoline d) ICICI direct

e) Indiabulls f) HDFC securities

g) Others

8) Are you satisfied with you present broking company?

a) Yes b) No

9) What is the reason? Please specify.

a) Services _______________________________________

b) Brokerage _____________________________________

c) Operating expenses ______________________________

d) Others ________________________________________

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10) What is your trading exchange preference?

a) NSE b) BSE

c) MCX d) NCDEX

65
 BIBLIOGRAPHY

Magazines:

VALUELINE (SHAREKHAN MONTHLY RESEARCH

MAGAZINE)

CAPITAL MARKET (5PASISA.COM), NEW DELHI.

Internet:

http://WWW.MONEYCONTROL.COM

http://WWW.CAPITALINE.COM

http://WWW.SHAREKHAN LTD.COM

http://WWW.INDIAINFOLINE.COM

http://WWW.ICICIDIRECT.COM

http://WWW.HDFCSECURITY.COM

http://WWW.KARVY.COM

Thank You

(Bharat Jain)

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